Document:

<PAGE>

EXHIBIT 10.14

                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

         AMENDED AND RESTATED EMPLOYMENT AGREEMENT dated as of December 14,
2000, by and between Dal-Tile International Inc., a Delaware corporation (the
"Company"), and W. Christopher Wellborn (the "Executive").

         The Company is engaged in the business of the manufacture,
distribution and marketing of glazed and unglazed tile. The Company desires
to employ the Executive and the Executive desires to accept such employment
on the terms and conditions of this Agreement.

         NOW, THEREFORE, in consideration of the mutual premises and
agreements herein contained, and other good and valuable consideration, the
receipt and adequacy of which is acknowledged, the parties hereby agree as
follows:

         1.   TERM OF EMPLOYMENT. The term of the Executive's employment
under this Agreement (the "Term") shall commence on August 25, 1997 and
continue through and expire on December 31, 2004 unless earlier terminated as
herein provided. The Term of this Agreement shall automatically be renewed
for successive one-year periods unless Company shall have given Executive
notice of non-renewal at least six months prior to December 31, 2004 (or such
subsequent December 31st to which the Term has been extended).

         2.   DUTIES OF EMPLOYMENT. The Executive hereby agrees for the Term
to render his exclusive services to the Company as its Chief Financial
Officer and, in connection therewith, to perform such duties commensurate
with his office as he shall reasonably be directed by the Chief Executive
Officer of the Company (the "CEO") to perform. The Executive shall devote
during the Term all of his business time, energy and skill to his executive
duties hereunder and perform

<PAGE>

such duties faithfully and efficiently, except for reasonable vacations and
except for periods of illness or incapacity. When and if requested to do so by
the Board of Directors of the Company (the "Board"), the Executive shall, for no
additional compensation, serve as a director of the Company and a director and
officer of any subsidiary or affiliate of the Company, provided that the
Executive shall be indemnified for liabilities incurred by him in his capacity
as a director or an officer in accordance with an Indemnification Agreement in
the form attached hereto as Exhibit A and as provided in the Company's
Certificate of Incorporation and By-Laws as in effect from time to time.

         3.   COMPENSATION AND OTHER BENEFITS.

              3.1   SALARY. As compensation for all services to be rendered
by the Executive during the Term, the Company shall pay to the Executive a
salary at the rate of $360,000 per year (which may be increased from time to
time by the Board (the "Annual Salary")), payable in accordance with the
Company's usual payroll practices for executives. The Executive shall be
eligible to receive annual salary reviews and salary increases as authorized
by the Board.

              3.2   BONUS. In addition to his Annual Salary, the Executive shall
be eligible to be paid a bonus in respect of each fiscal year of the Company
(the "Annual Bonus") in accordance with the Company's bonus plan (the "Plan"),
which Annual Bonus shall be determined by the Compensation Committee of the
Board. The amount of the Annual Bonus shall range from (i) no payment if
performance goals are not attained as established under the Plan as determined
by the Compensation Committee of the Board and the Board, (ii) a maximum of 50%
of the amount of the Annual Salary upon attainment of the "target" performance
goal established under the Plan and (iii) a maximum of 100% of the amount of the
Annual Salary upon attainment of the "maximum" performance goal established
under the Plan. The Annual

                                     -2-
<PAGE>

Bonus may be paid on a pro rata basis upon attainment of performance goals as
determined by the Compensation Committee of the Board.

              3.3   STOCK OPTION AGREEMENT. Concurrent with the execution of
this Agreement, the Company shall subject to approval by its shareholders of
the Dal-Tile International, Inc. 1998 Amended and Restated Stock Option Plan in
accordance with Section 162(m) of the Code (the "Option Plan"), grant options
(the "Options") to purchase 120,000 shares of its Common Stock at an exercise
price per share equal to the fair market value of the Common Stock on the date
hereof on the terms and conditions set forth in the Option Plan and a Stock
Option Agreement to be entered into (the "Stock Option Agreement") in the form
attached hereto as Exhibit B. If Executive's employment with the Company is
terminated by the Company without Cause (as defined herein) or upon the
occurrence of a Transaction (as defined in the Stock Option Plan), the Options
shall be 100% vested and shall remain exercisable through the term of the Stock
Option Agreement.

              3.4   TREATMENT OF PREVIOUSLY-GRANTED STOCK OPTIONS.

       3.4.1  IN GENERAL. Except as otherwise provided for herein, all Stock
Options granted by the Company to Executive prior to the date hereof shall
remain in full force and effect in accordance with their terms and such Options
shall be referred to herein as the "Existing Options."

       3.4.2  DECEMBER 10, 1998 STOCK OPTION. Section 4 of the Nonqualified
Stock Option Agreement dated December 10, 1998 between Executive and Company is
hereby amended by deleting the third sentence thereof and replacing such
sentence with the following language:

                                     -3-
<PAGE>

              "Notwithstanding any provision of this Option to the contrary, if
Optionee remains employed by Company through December 31, 2001, the Option shall
be 100% vested and shall remain exercisable until December 10, 2008."

       3.4.3  JULY 17, 1998 STOCK OPTION. Section 4 of the Nonqualified Stock
Option Agreement dated July 17, 1998 between Executive and Company is hereby
amended by deleting the third sentence thereof and replacing such sentence with
the following language:

              "Notwithstanding any provision of this Option to the contrary,
if Optionee remains employed by Company through December 31, 2001, the Option
shall be 100% vested and shall remain exercisable through July 17, 2008."

       3.4.4  February 20, 1998 Stock Option. Section 4 of the Amended and
Restated Nonqualified Stock Option Agreement dated as of February 20, 1998
between Executive and Company is hereby amended by deleting the third sentence
thereof and replacing such sentence with the following language:

              "Notwithstanding any provision of this Option to the contrary, if
Optionee remains employed by Company through August 25, 2000, the Option shall
be 100% vested and shall remain exercisable through August 25, 2007."

              3.5   PARTICIPATION IN EMPLOYEE BENEFIT PLANS. Commencing on the
respective eligibility dates of the employee benefit plans, during the Term, the
Executive shall be permitted to participate in any group life, hospitalization
or disability insurance plan, health program, pension plan, similar benefit plan
or other so-called "fringe benefit programs" of the Company as now existing or
as may hereafter be revised or adopted.

              3.6   VACATION. The Executive shall be entitled to three (3) weeks
vacation per annum.

                                     -4-
<PAGE>

         4.   COVENANTS AGAINST COMPETITION. In order to induce the Company to
enter this Agreement and the Stock Option Agreement, the Executive hereby agrees
as follows:

              4.1  ACKNOWLEDGMENTS OF EXECUTIVE. The Executive acknowledges that
(i) the Company and any affiliates or subsidiaries thereof that are currently
existing or are acquired or formed during the Restricted Period, as hereinafter
defined (collectively, the "Companies"), are and will be engaged primarily in
the business of the manufacture of glazed and unglazed tile, for which marketing
and distribution is a primary business (the "Company Business")' (ii) his work
for the Companies will give him access to trade secrets of and confidential
information concerning the Companies, including, without limitation, information
concerning its organization, business, affairs, operations, "know-how", customer
lists, details of client or consultant contracts, pricing policies, financial
information, operational methods, marketing plans or strategies, business
acquisition plans, new personnel acquisition plans, technical processes,
projects of the Companies, financing projections, budget information and
procedures, marketing plans or strategies, and research products (collectively,
the "Trade Secrets"); and (iii) the agreements and covenants contained in this
Section 4 are essential to protect the Company Business and goodwill of the
Companies.

              4.2  RESTRICTIONS ON COMPETITION. During the Term, and for a
two-year period after the end of the Term (the "Restricted Period") unless this
Agreement is terminated in accordance with the provisions of Section 5.4, the
Executive shall not, in any place where the Company Business is now or hereafter
conducted by any of the Companies while the Executive is an employee, agent,
officer, director or shareholder of the Companies, directly or indirectly (a)
engage in the Company Business for his own account; (b) enter the employ of, or
render any services to any person or entity engaged in the Company Business; or
(c) become interested in

                                     -5-
<PAGE>

any such person or entity in any capacity, including, without limitation, as
an individual, partner, shareholder, officer, director, principal, agent,
trustee or consultant; provided, however, that the Executive may own,
directly or indirectly, solely as an investment, securities of any entity
traded on any national securities exchange or registered pursuant to Section
12(g) of the Securities Exchange Act of 1934 if the Executive is not a
controlling person of, or a member of a group which controls, such entity and
does not, directly or indirectly, own 3% or more of any class securities of
such entity. The Company shall notify the Executive of any additional entities
which may hereafter become "Companies" within the meaning of this Agreement.

              4.3. CONFIDENTIAL INFORMATION; PERSONAL RELATIONSHIPS. During the
Restricted Period, the Executive shall keep secret and retain in strictest
confidence, and shall not use for the benefit of himself or others, all
confidential matters and Trade Secrets of the Companies. 4.4 Property of the
Companies. All memoranda, notes, lists, records and other documents or papers,
(and all copies thereof), including such items stored in computer memories, on
microfiche or by any means, made or controlled by or on behalf of the Executive,
or made available to the Executive relating to the Companies are and shall be
the Companies' property and shall be delivered to the Companies upon the
expiration of the Term unless requested earlier by the Companies.

              4.5  EMPLOYEES OF THE COMPANIES. The Executive acknowledges that
any attempt on the part of the Executive to induce any employee of any of the
Companies to leave any of the Companies' employ, or any efforts by the Executive
to interfere with the Companies' relationship with any other employee, would be
harmful and damaging to the Companies. During the Restricted Period, the
Executive will not without the prior agreement of the Companies, in any way,
directly or indirectly: (i) induce or attempt to induce any employee to

                                     -6-
<PAGE>

terminate employment with the Companies; (ii) interfere with or disrupt the
Companies' relationship with any employee; or (iii) solicit or entice any person
employed by the Companies.

              4.6  BUSINESS OPPORTUNITIES. The Executive acknowledges that the
Companies have been considering, and during the Term may consider, the
acquisition of various entities engaged in the Company Business and that it
would be harmful and damaging to the Companies if he were to become interested
in any such entity without the Company's prior consent. During the Restricted
Period, the Executive will not, without the Company's prior consent, become
interested in any such entity in any capacity, including, without limitation, as
an individual, partner, shareholder, officer, director, principal, agent,
trustee or consultant, if the Executive was aware at any time during the Term
that the Companies had been considering the acquisition of such entity.

              4.7  RESTRICTIVE COVENANTS. For the purposes of this Agreement all
matters discussed in Sections 4.1, 4.2, 4.3, 4.4, 4.5 and 4.6 of this Agreement
shall be referred to a the "Restrictive Covenants."

              4.8  RIGHTS AND REMEDIES UPON BREACH. If the Executive breaches,
or threatens to commit a breach of, any of the provisions of the Restrictive
Covenants, the Company shall have the following rights and remedies with respect
to the Executive, each of which rights and remedies shall be independent of the
others and severally enforceable, and each of which is in addition to, and not
in lieu of, any rights and remedies available to the Company under law or in
equity.

                   4.8.1  SPECIFIC PERFORMANCE. The right and remedy to have the
Restrictive Covenants specifically enforced, it being agreed that any breach or
threatened breach

                                     -7-
<PAGE>

of the Restrictive Covenants would cause irreparable injury to the Company
and money damages will not provide an adequate remedy to the Company.

                   4.8.2  ACCOUNTING. The right and remedy to require the
Executive to account for and pay over to the Company all compensation,
profits, monies, accruals, increments or other benefits derived or received
by him as a result of any transactions constituting a breach of the
Restrictive Covenants.

                   4.8.3  SEVERABILITY OF COVENANTS. The Executive
acknowledges and agrees that the Restrictive Covenants are reasonable and
valid in geographical and moral scope and in all other respects. If any court
determines that any of the Restrictive Covenants, or any part thereof, are
invalid or unenforceable, the remainder of the Restrictive Covenants shall
not thereby be affected and shall be given full effect, without regard to the
invalid portions.

                   4.8.4  BLUE-PENCILLING. If it is determined that any of the
Restrictive Covenants, or any part thereof, is unenforceable because of the
duration or geographic scope of such provision, the duration or scope of such
provision, as the case may be, shall be reduced so that such provisions becomes
enforceable and, in its reduced form, such provision shall then be enforceable.

              4.9  ENFORCEABILITY IN JURISDICTION. The Company and the Executive
intend to and hereby confer jurisdiction to enforce the Restrictive Covenants
upon the courts of any jurisdiction within the states or county which the
Company does business. If the courts of any one or more of such jurisdictions
hold the Restrictive Covenants unenforceable by reason of the breadth of such
scope or otherwise, it is the intention of the Company and the Executive that
such determination not bar or in any way affect the Company's right to relief
provided above in the courts of any other jurisdiction within the geographical
scope of the Restrictive Covenants, as

                                     -8-
<PAGE>

to breaches of such Restrictive Covenants in such other respective
jurisdictions, such Restrictive Covenants as they relate to each jurisdiction
being, for this purpose, severable into diverse and independent covenants.

       5.     TERMINATION.

              5.1  TERMINATION UPON DEATH. If the Executive dies during the
Term, this Employment Agreement shall terminate immediately, except that the
Executive's legal representatives shall be entitled to receive any Annual
Salary to the extent such Annual Salary has accrued and remains payable up to
the date of the Executive's death (to be paid in a lump sum within 10 days of
the termination), plus a portion of the Executive's Annual Bonus, as set
forth in Section 3.2 computed on a pro rata basis based on the performance of
the Company from the beginning of such bonus period to the date of
Executive's death (to be paid as promptly as practicable but no later than 10
days after the determination thereof), and any benefits to which the
Executive, his heirs or legal representatives may be entitled under and in
accordance with the terms of any employee benefits plan or program maintained
by the Company.

              5.2  TERMINATION UPON DISABILITY. If the Executive becomes
disabled during his employment hereunder so that he is unable substantially
to perform his services hereunder for 180 consecutive days, then the term of
this Agreement may be terminated by resolution of the Board sixty days after
the expiration of such 180 days, such termination to be effective upon
delivery of written notice to the Executive of the adoption of such
resolution; provided, that the Executive shall be entitled to receive any
accrued and unpaid Annual Salary through such effective date of termination
(to be paid in a lump sum within 10 days of the termination), plus a portion
of the Executive's Annual Bonus, as set forth in Section 3.2 computed on a
pro rata basis based on the performance of the Company from the beginning of

                                     -9-
<PAGE>

such bonus period to the date of termination (to be paid as promptly as
practicable but no later than 10 days after the determination thereof; it
being understood that the Executive shall make the determination whether the
calculation and payment of the bonus shall be made immediately after the
effective date of the termination or after the end of the fiscal year of the
termination), and any benefit to which the Executive may be entitled under
and in accordance with the terms of any employee benefits plan or program
maintained by the Company.

              5.3  TERMINATION FOR CAUSE. The Company has the right, at any time
during the Term, subject to all of the provisions hereof, exercisable by serving
notice, effective in accordance with its terms, to terminate the Executive's
employment under this Agreement and discharge the Executive for "Cause" (as
defined below). If such right is exercised, the Executive shall be entitled to
receive unpaid and accrued base salary prorated through the date of such
termination, any benefits vested as of the date of such termination and any
other compensation or benefits otherwise required to be paid under applicable
law. Except for such payments, the Company shall be under no further obligation
to the Executive. As used in this Section 5, the term "Cause" shall mean and
include (i) the conviction of or plea of guilty by the Executive of any felony
or other serious crime involving the Company, or (ii) gross or willful
misconduct by the Executive in the performance of his duties hereunder; provided
however, that no act shall be considered gross or willful misconduct if the
Executive believes he was acting in good faith or in a manner not opposed to the
interests of the Company. The Company shall be entitled to terminate the
Executive for Cause only upon approval of a resolution adopted by the
affirmative vote of not less than two-thirds of the membership of the Board
(excluding Executive). The Company agrees to provide to the Executive prior
written notice (the "Notice") of its intention to terminate Executive's
employment for Cause, such notice to state in detail the particular acts or

                                     -10-
<PAGE>

failure to act which constitute grounds for the termination. The Executive shall
be entitled to a hearing before the Board to contest the Board's findings, and
to be accompanied by counsel. Such hearing shall be held with 15 days of the
request thereof to the Company by the Executive, provided that such request must
be made within 15 days of delivery of the Notice. If, following any such
hearing, the Board maintains its determination to terminate the Executive's
employment for Cause, the effective date of such termination shall be as
specified in the Notice.

              5.4  TERMINATION WITHOUT CAUSE OR FOR GOOD REASON. The Company
shall have the right at any time during the Term to terminate the Executive's
employment hereunder without Cause. Upon such a termination, or the termination
by the Executive for Good Reason, the Company's sole obligation hereunder,
except as otherwise provided in Section 3.3, shall be to pay to the Executive
(i) an amount equal to any Annual Salary accrued and due and payable to the
Executive hereunder on the date of termination (to be paid in a lump sum within
10 days of the termination), (ii) thereafter all Annual Salary for the remainder
of the Term, to be paid in a lump sum within 10 days of the termination, (iii)
in a lump sum payment (to be paid as promptly as practicable, but no later than
10 days after the determination thereof; it being understood that the Executive
shall make the determination whether the calculation and payment of the bonus
shall be made immediately after the effective date of the termination or after
the end of the fiscal year of the termination), the greater of (A) a portion of
the Executive's Annual Bonus as set forth in Section 3.2 computed on a pro-rated
basis, based on the performance of the Company from the beginning of the bonus
period to the date of termination and (B) an amount equal to the amount of the
Annual Bonus for the fiscal year preceding the fiscal year in which the date of
termination occurs, pro-rated based on the number of days elapsed in the year of
termination, and (iv) in a lump sum payment (to be paid as promptly as
practicable, but no later than 10 days after

                                     -11-
<PAGE>

the determination thereof; it being understood that the Executive shall make
the determination whether the bonus payment shall be made immediately after
the effective date of the termination or after the end of the fiscal year of
the termination) a portion of any other bonus plan(s) in which the Executive
is a participant computed and determined in accordance with its terms, on a
pro-rated basis based on the performance of the Company from the beginning of
the bonus period through the date of termination. For purposes of this
Agreement, "Good Reason" shall mean (i) a reduction in the Annual Salary or
maximum bonus opportunity as specified in Section 3.1 or 3.2, (ii) a
relocation of the Company's headquarters or required relocation of the
Executive more than 100 miles outside of the Dallas/Fort Worth Metropolitan
area, (iii) a material diminution in the Executive's duties or
responsibilities, (iv) an adverse change in the Executive's title, or (v)
assignment to Executive of duties and responsibilities that are inconsistent
with his position in any material respect. Notwithstanding the foregoing
provisions of this Section 5.4, in no event shall Annual Salary be provided
for less than one (1) year from the date of such termination.

              5.5  TERMINATION IN CONNECTION WITH CHANGE OF CONTROL. In the
event Executive's employment is terminated in connection with a Change of
Control (as such term is defined in a Change of Control Agreement between
Executive and Company dated as of October 1, 2000 (the "Change of Control
Agreement")) under circumstances pursuant to which Executive is entitled to
payments under the Change of Control Agreement, Executive shall be entitled
to such payments as are provided under such agreement in lieu of the payments
provided in this Section 5. It is the intent of both Company and Executive
that this Agreement in no way shall impair Executive's rights and
obligations, and Company's rights and obligations, under such Change of
Control Agreement. However, to the extent that this

                                     -12-
<PAGE>

Agreement and the Change of Control Agreement shall conflict, it is the
intent of the Company and the Executive that such agreements shall be
interpreted in a manner such that Executive receives the greater of (i) the
payment or benefit provided under this Agreement or (ii) the payment or
benefit provided under the Change of Control Agreement, but that in no event
shall Executive be entitled to receive payments or benefits under both
agreements to the extent such payments or benefits are duplicative.

              5.6  NON-RENEWAL OF EMPLOYMENT AGREEMENT. If the Company shall
not renew this Agreement at the end of the Term, the Company's sole obligation
hereunder shall be to (i) pay to the Executive an amount equal to any Annual
Salary accrued and due and payable to the Executive hereunder through the last
date of the Term of this Agreement, as set forth in Section 1 hereof (to be paid
in accordance with the Company's usual payroll practices for executives), (ii)
thereafter, pay to the Executive an amount equal to the Annual Salary (as set
forth in Section 3.1) payable for one year to be paid in accordance with the
Company's usual payroll practices for executives and (iii) provide to the
Executive for a period of one year commencing on the day after the last date of
the Term of this Agreement any benefits to which the Executive may be entitled
under and in accordance with the terms of any employee benefits plan or program
maintained by the Company. As of the last date of the Term of this Agreement,
accrual of vacation time shall be discontinued. Upon acceptance by Executive of
an employment opportunity other than the Company, payments by the Company
pursuant to clauses (ii) and (iii) of this Section 5.6 shall terminate.

              5.7  OTHER. Except as otherwise provided herein, upon the
expiration or other termination of this Agreement, including the resignation of
Executive, all obligations of the

                                     -13-
<PAGE>

Company shall forthwith terminate, except as to any stock option rights as
provided in the Stock Option Agreement and the Existing Options and except as
otherwise required by applicable law.

       6.     EXPENSES.

              6.1  GENERAL. During the Term, the Executive will be reimbursed
for his reasonable expenses incurred for the benefits of the Company in
accordance with the general policy of the Company or directives and
guidelines established by management of the Company and upon submission of
documentation satisfactory to the Company. With respect to any expenses which
are to be reimbursed by the Company to the Executive, the Executive shall be
reimbursed upon his presenting to the Company an itemized expense voucher.

       7.     PROVISIONS.

              7.1  NOTICES. Any notice or other communication required or
permitted hereunder shall be in writing and shall be delivered personally,
telegraphed, telexed, sent by facsimile transmission, or sent by certified,
registered or express mail, postage prepaid. Any such notice shall be deemed
given when so delivered personally, telegraphed, telexed, or sent by facsimile
transmission or, if mailed, five days after the date of deposit in the United
States mail, as follows:

              (i)      if to the Company, to:

                       Dal-Tile International Inc.
                       7834 Hawn Freeway
                       Dallas, Texas 75217
                       Attention:  Mark A. Solls

              (ii)     if to the Executive, to:

                       W. Christopher Wellborn
                       908 Suffolk Court
                       Southlake, Texas  76092

Any party may change its address for notice hereunder by notice to the other
parties hereto.

                                     -14-
<PAGE>

              7.2  ENTIRE AGREEMENT. This Agreement, the Stock Option Agreement,
the Existing Options, and the Change of Control Agreement contain the entire
agreement between the parties with respect to the subject matter hereof and
supersede all prior agreements, written or oral, with respect thereto.

              7.3  WAIVERS AND AGREEMENTS. This Agreement may be amended,
modified, superseded, cancelled, renewed or extended, and the terms and
conditions hereof may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance. No delay
on the part of any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any waiver on the part of any
right, power or privilege hereunder, nor any single or partial exercise of any
right, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, power, or privilege hereunder.

              7.4  GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware applicable to
agreements made and to be performed entirely within such State.

              7.5  ASSIGNMENT. Executive may not delegate the performance of any
of his duties hereunder. Neither party hereto may assign any rights hereunder
without the written consent of the other party hereto.

              7.6  COUNTERPARTS. This Agreement may be executed in two
counterparts, each of which shall be deemed an original but both of which
together shall constitute one and the same instrument.

              7.7  HEADINGS. The headings in this Agreement are for reference
purposes only and shall not in any way affect the meaning or interpretation of
this Agreement.

                                     -15-
<PAGE>

       8.     ARBITRATION. Any and all disputes arising out of or relating to
this Agreement or the breach, termination or validity thereof shall be settled
by arbitration before a sole arbitrator in accordance with the then current CPR
Rules for Non-Administered Arbitration. The arbitration shall be governed by the
Federal Arbitration Act, 9 U.S.C. Section 116, and judgment upon the award
rendered by the arbitrator may be entered by any court having jurisdiction
thereof. The arbitration shall be held in Dallas, Texas and, unless the parties
agree otherwise, the arbitrator shall be selected from CPR's panel of neutrals.

       Either party may demand arbitration by sending to the other party by
certified mail a written notice of demand for arbitration, setting forth the
matters to be arbitrated. The arbitrator shall have the authority to award only
compensatory damages, and neither party shall be entitled to written or
deposition discovery from the other. The Company will pay the fees and expenses
of the arbitrator, as well as any attorneys' fees, expert witness fees, and
other expenses to the extent provided in Section 18 hereof. The arbitrator shall
have no authority to alter, amend or modify any of the terms and conditions of
this Agreement.

       Before arbitrating the dispute, the parties, if they so agree, may
endeavor to settle the dispute by mediation under the then current CPR Mediation
Procedure. Unless otherwise agreed, the parties will select a mediator from the
CPR panel of neutrals. If the mediation is not successfully concluded within
thirty (30) days, the dispute will proceed to arbitration as set forth above.

                                     -16-
<PAGE>

       Notwithstanding the pendency of any dispute or controversy concerning
termination or the effects thereof, the Company will continue to pay the
Executive his full compensation in effect immediately before any notice of
termination giving rise to the dispute was given and continue him as a
participant in all compensation, benefit and insurance plans in which he was
then participating, until an award has been entered by the arbitrator. Any
amounts paid hereunder shall be set off against or reduced by any other amounts
due under this Agreement.

       9.     PIGGYBACK RIGHTS.

              (a)  If the Company proposes to effect an underwritten secondary
registration on behalf of DTI Investors LLC or its members, the Company will
provide prompt notice to the Executive thereof and will permit the Executive to
include in such registration shares of Common Stock owned by him with respect to
which the Company has received written request for inclusion therein within 20
days after the receipt of the Company's notice. Common Stock requested by the
Executive to be included in such registration will be included pro rata on the
basis of the number of shares of Common Stock held by the Executive and the
other participants in such registration, subject to reduction, if necessary, if
the managing underwriter for the offering advises the Company that such
reduction is advisable in order to avoid an adverse effect on the proposed
offering. The Company shall bear all expenses in connection with such
registration, other than underwriting discounts and commissions and transfer
taxes, if any, and fees and expenses of the Executive's legal and other
advisers, attributable to the inclusion in such registration of Common Stock
owned by Executive.

              (b)  The obligations of the Company contained in this Section 9
are subject to (i) requirements of applicable law, (ii) restrictions that may be
imposed by the Company's

                                     -17-
<PAGE>

underwriters, and (iii) Executive cooperating and providing any needed
consents, agreements (including any required "lock up" or customary indemnity
agreements, to the extent such arrangements are requested of members of
Company management or significant shareholders, generally) and information.
Executive agrees that he will discontinue any exercise of Options or sale of
shares of Common Stock upon notice from the Company that an event or
development makes amendment or supplement of any Registration Statement of
the Company (or suspension of effectiveness thereof) necessary, and will not
resume such exercise or sale until the Company informs Executive he may do so
(provided that the Company shall not require such discontinuance for more
than 90 days in any 360-day period). Executive specifically agrees that, in
connection with a Filing Event described in clause (i) of the definition
thereof, he will not sell, transfer or otherwise dispose of any shares of
Common Stock, for a period of 180 days following such event, unless the
underwriters for the relevant public offering determine a shorter period to
be appropriate.

       IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date first above written.

                                       DAL-TILE INTERNATIONAL INC.

                                       By:
                                           ----------------------------

                                       Name:
                                             --------------------------

                                       Title:
                                             --------------------------

                                       --------------------------------
                                       W. Christopher Wellborn

                                     -18-<PAGE>

EXHIBIT 10.15

                           CHANGE OF CONTROL AGREEMENT

1.  RECITALS

         (a) This Change of Control Agreement ("Agreement") is between Dal-Tile
International Inc. (the "Company") and Jacques R. Sardas (the "Executive") and
is effective as of October 1, 2000.

         (b) The address of the Company is 7834 C.F. Hawn Freeway, PO Box
170130, Dallas, Texas 75217. The address of the Executive is 6031 Orchid Lane,
Dallas, Texas 75230.

         (c) The Executive is currently employed by the Company in the capacity
of President and Chief Executive Officer and the Executive is one of the key
executives of the Company.

         (d) In consideration of the mutual promises contained herein and other
good and valuable consideration, the Executive and the Company have entered into
this Agreement.

         (e) This Agreement is in addition to, and supplements the provisions
of, the Amended and Restated Employment Agreement dated as of July 17, 1998,
between the Company and the Executive (the "Employment Agreement").

2.  TERM OF THIS AGREEMENT

         This Agreement shall remain in effect until December 31, 2005 (the
"Agreement Termination Date"), provided that on January 1, 2004 (and each
January 1st thereafter), the Agreement Termination Date shall be extended by one
year, unless the Company shall have notified the Executive at least six months
prior to such January 1st that the Agreement Termination Date shall not be
extended.

<PAGE>

3.  CHANGE OF CONTROL

         Notwithstanding the other provisions of this Agreement, no benefit
shall be payable under this Agreement (and Sections 5 through 9, and Section 16,
shall not apply) unless (i) a Change of Control of the Company shall be deemed
to have occurred, (ii) the Executive shall be employed by the Company at the
time of such Change of Control (except to the extent Section 3(g) is
applicable), and (iii) the Executive's employment by the Company shall have been
terminated by the Executive more than ninety (90) days after such Change of
Control (but within one year after the date of such Change of Control), or by
the Company for any reason within two (2) years after such Change of Control.
For purposes of this Agreement, a "Change of Control of the Company" shall be
deemed to have occurred if:

         (a) The Company is merged, consolidated or reorganized into or with
another corporation or other legal person, and immediately after such merger,
consolidation or reorganization less than fifty percent (50%) of the combined
voting power of the then-outstanding securities of such corporation or person
immediately after such transaction are held in the aggregate by the holders of
voting stock of the Company immediately prior to such transaction;

         (b) The Company sells all or substantially all of its assets to any
other corporation or other legal person, and less than fifty percent (50%) of
the combined voting power of the then-outstanding securities of such corporation
or person immediately after such sale are held in the aggregate by the holders
of voting stock of the Company immediately prior to such sale;

         (c) Any person or group of persons (as the term "person" is used in
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act), other than DTI
Investors LLC or its members, or any affiliate or successor of DTI Investors LLC
or its members, becomes the beneficial owner (as the term "beneficial owner" is
defined under Rule 13d-3 or any successor rule or regulation promulgated under
the Exchange Act) of securities (i) representing 40% or more of the issued and
outstanding common stock of the Company or (ii) possessing the power to elect a
majority of the Board of Directors of the Company, provided that a Change of
Control under this Section 3(c) shall only be deemed to occur if such person or
persons shall own at such time a greater number of shares of common stock than
are owned at such time by DTI Investors LLC, or its members, or its former
members (taken as a group);

         (d) The Company files a report or proxy statement with the Securities
and Exchange Commission pursuant to the Exchange Act disclosing in response to
Form 8-K or Schedule 14A (or any successor schedule, form or report or item
therein) that a Change of Control of the Company has occurred;

         (e) The shareholders of the Company approve the liquidation or
dissolution

                                     -2-

<PAGE>

of the Company;

         (f) If during any period of two consecutive years, individuals who at
the beginning of any such period constitute the Board of Directors of the
Company (the "Board") cease for any reason to constitute at least a majority
thereof, provided, however, that for purposes of this Section 3(f), each
Director who is first elected, or first nominated for election by the Company's
stockholders, by a vote of at least two thirds of the Directors of the Company
(or a committee thereof) then still in office who were Directors of the Company
at the beginning of any such period will be deemed to have been a Director of
the Company at the beginning of such period; or

         (g) At the time of determination, the Company is actively engaged in
negotiations or other activities for the purpose of effecting a transaction of
the type referred to in Section 3 (a), (b), (c), or (e) of this Agreement and,
in the case of this Section 3(g) only, the Executive's employment is terminated
by the Company.

4.  NOTICE OF TERMINATION; DATE OF TERMINATION

         (a) Any termination of the Executive's employment by the Company or the
Executive shall be communicated by written Notice of Termination to the other
party thereto. For purposes of this Agreement, a "Notice of Termination" shall
mean a notice which shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of employment under the
provision so indicated.

         (b) "Date of Termination" shall mean:

                  (i)         If the Agreement is terminated for Disability,
                              thirty (30) days after Notice of Termination is
                              given (provided that the Executive shall not have
                              returned to the performance of his duties on a
                              full-time basis during such thirty (30) day
                              period), or

                  (ii)        If the Executive's employment is terminated for
                              any other reason, the date on which a Notice of
                              Termination is given.

5.  COMPENSATION AFTER CHANGE OF CONTROL

         Immediately after any Change of Control of the Company shall be deemed
to have occurred, the Executive shall be entitled to receive for the remainder
of the Term of this Agreement (as extended from time to time) (i) an annual base
salary (the "Base Salary"), payable in installments in accordance with the
current practice of the Company, at an annual rate at least equal to the
aggregate annual base

                                     -3-

<PAGE>

salary payable to the Executive as of the date of the Change of Control of the
Company and (ii) an award under a Company incentive bonus plan offering the
Executive the opportunity to earn a target bonus at least comparable to the
target bonus opportunity offered under the Company's Annual Incentive Plan
immediately prior to the Change of Control. Subsequent to such Change of
Control, the Base Salary may be increased (but may not be decreased) at any
time and from time to time by action of the Board, any committee thereof, or
any individual having authority to take such action, in accordance with the
Company's regular practices, and, if so increased, such increased Base Salary
shall thereafter be the Base Salary for the purposes of this Agreement. Any
increase in the Base Salary shall not serve to limit or reduce any other
obligation of the Company hereunder.

6.  BENEFIT PLANS

         After a Change of Control of the Company shall be deemed to have
occurred,

         (a) The Company agrees to continue in effect those perquisites, and
benefit or compensation plans, identified on Exhibit A hereto in which the
Executive is currently participating or, with continued service or retirement
would be eligible for participation (collectively referred to as the "Benefit
Plans"); or to maintain plans providing substantially similar benefits;
provided, however, that the Company may make modifications in such plans so long
as such modifications (i) are generally applicable to all salaried employees of
the Company and (ii) do not discriminate against highly-paid employees of the
Company;

         (b) Except as permitted in the proviso contained in paragraph (a)
above, the Company agrees not to take any action that would adversely affect the
Executive's participation in, or materially reduce the benefits under, any of
the Benefit Plans or deprive the Executive of any material fringe benefit
currently enjoyed;

         (c) The Company agrees to provide the Executive with the number of paid
vacation days to which he is entitled on the basis of years of service with the
Company in accordance with the Company's normal vacation policy in effect on the
date of the Change of Control of the Company or in accordance with the
Executive's individual employment agreement; and

         (d) Except as provided in Section 19 hereof, benefits herein provided
are in lieu of any severance payment benefit otherwise provided under any other
Agreement, policy or practice provided by the Company except that Executive
shall retain any rights that he has with respect to accumulated and unused
vacation or vacation pay. The Executive waives all rights to any other severance
payments under any such agreement, policy or practice provided, however, that
this waiver shall not extend to any retirement plan, excess benefit plan,
applicable supplemental pension plan, or Executive's rights under the Employment
Agreement.

                                     -4-

<PAGE>

7.  TERMINATION FOR DEATH OR DISABILITY

         (a) The Executive's employment shall terminate in the event of
Executive's death.

         (b) The Company may terminate Executive's employment for "Disability"
if the Executive is "Disabled." For purposes of this Agreement, the Executive
shall be considered Disabled only if, as a result of his incapacity due to
physical or mental illness, he shall have been absent from his duties with the
Company on a full-time basis for a period of one year and a physician selected
by him is of the opinion that (i) he is suffering from "Total Disability" as
defined in the Company's qualified pension plan as of the date hereof, or any
successor plan or program and (ii) he will qualify for Social Security
Disability Payment and (iii) within thirty (30) days after written notice of
termination is given, he shall not have returned to the full-time performance of
his duties.

         (c) If, subsequent to a Change of Control, the Executive's employment
terminates on account of the Executive's death or because the Executive is
Disabled, the Company shall pay to the Executive (or his successors) the
amounts, and provide to the Executive the benefits, set forth in Section 8
hereof.

8.  COMPENSATION UPON CERTAIN TERMINATIONS

         (a) If, subsequent to a Change of Control, (i) the Company shall
terminate the Executive's employment within two (2) years after such Change of
Control or (ii) the Executive shall terminate his employment more than ninety
(90) days after such Change of Control (but within one year after such Change of
Control), then the Company shall pay to the Executive in a lump sum on the
fifteenth business day following the Date of Termination, the following amounts:

                  (i)         The Executive's Base Salary through the Date of
                              Termination at the rate in effect at the time
                              Notice of Termination is given;

                  (ii)        A pro-rata portion of the Executive's target bonus
                              for the year in which the Date of Termination
                              occurs, based upon the number of days that have
                              elapsed during the year in question prior to the
                              Date of Termination.

                  (iii)       In lieu of any further salary and bonus payments
                              for periods subsequent to the Date of Termination,
                              an amount equal to 3

                                     -5-

<PAGE>

                              multiplied by the sum of (i) the Executive's
                              current Base Salary at such time and (ii) the
                              greater of (I) the average of the bonuses
                              actually received by the Executive with respect
                              to the two calendar years immediately preceding
                              the year in which the Date of Termination occurs
                              or (II) the Executive's target bonus for the
                              year in which the Date of Termination occurs.

                  (iv)        All legal fees and expenses incurred as a result
                              of such termination (including all such fees and
                              expenses, if any, incurred in contesting or
                              disputing any such termination, in seeking to
                              obtain or enforce any right or benefit provided by
                              this Agreement, or in interpreting this
                              Agreement).

         (b) If, subsequent to a Change of Control, (i) the Company shall
terminate the Executive's employment within two (2) years after such Change of
Control or (ii) the Executive shall terminate his employment more than ninety
(90) days after such Change of Control (but within one year after such Change of
Control), the Company shall maintain in full force and effect, for the
Executive's continued benefit for thirty-six (36) months after the Date of
Termination, all medical and dental employee benefit plans, programs, or
arrangements in which he was entitled to participate immediately prior to the
Date of Termination, provided that continued participation is possible under the
general terms and provisions of such plans and programs. In the event that
participation in any such plan or program is barred, the Company shall arrange
to provide him with benefits substantially similar in coverage and cost to those
which he is entitled to receive under such plans and programs.

         (c) If, subsequent to a Change of Control, (i) the Company shall
terminate the Executive's employment within two (2) years after such Change of
Control or (ii) the Executive shall terminate his employment more than ninety
(90) days after such Change of Control (but within one year after such Change of
Control), the Company shall allow the Executive, at Company expense, to utilize
the services of the public accounting firm used by the Company to audit its
books and records (or such other firm as shall be designated by the Company) for
assistance in preparation of his tax returns relating to the taxable year in
which the Executive's employment was terminated (and for any other taxable year
that is affected by the Change of Control).

9.       TREATMENT OF STOCK OPTIONS

         Notwithstanding any provision to the contrary in any stock option plan
or any agreement relating to the Executive that provides for less favorable
treatment of any stock option or stock appreciation right, in the event of the
consummation of a Change of Control of the Company (excluding for this purpose
the application of

                                     -6-

<PAGE>

Section 3(g) hereof), all stock options and stock appreciation rights granted
prior to the Change of Control by the Company to the Executive with respect to
the stock of the Company shall immediately vest and become immediately
exercisable, and shall remain exercisable for the original maximum period set
forth in such stock option or stock appreciation right agreement.

10.  SUCCESSORS, BINDING AGREEMENT

         The Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company, by agreement in form and substance
satisfactory to the Executive, to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. Failure of the
Company to obtain such agreement prior to the effectiveness of any such
succession shall be a breach of this Agreement and shall entitle the Executive
to compensation from the Company in the same amount and on the same terms as
would apply if the Executive terminated his employment pursuant to Section 8
hereof, except that for purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Date of
Termination. As used in this Agreement, "Company" shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid that executes and delivers the agreement provided for in this section
or which otherwise becomes bound by all the terms and provisions of this
Agreement by operation of law. This Agreement shall inure to the benefit of and
be enforceable by the Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If the
Executive should die while any amount would still be payable hereunder had the
Executive continued to live, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of this Agreement to his devisee,
legatee, or other designee or, if there be no such designee, to his estate.

11.  NOTICE

         Notices and all other communications provided for in this Agreement
shall be in writing and shall be deemed to have been duly given when delivered
or mailed by facsimile, overnight delivery service, or United States registered
mail, return receipt requested, postage prepaid, addressed to the respective
addresses set forth on the first page of this Agreement, provided that all
notices to the Company shall be directed to the attention of the Secretary of
the Company, or to such other address as either party may have furnished to the
other in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt.

                                     -7-

<PAGE>

12.  MISCELLANEOUS

         No provisions of this Agreement may be modified, waived or discharged
unless such modification, waiver or discharge is agreed to in writing signed by
the Executive and such officer as may be specifically designated by the Board of
Directors of the Company. No waiver by either party hereto at any time of any
breach by the other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreement or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof have been made by
either party that are not set forth expressly in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Texas.

13.  VALIDITY

         The invalidity or unenforceability of any one or more provisions of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

14.  COUNTERPARTS

         This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

15.  ALTERNATIVE DISPUTE RESOLUTION

         Any and all disputes arising out of or relating to this Agreement or
the breach, termination or validity thereof shall be settled by arbitration
before a sole arbitrator in accordance with the then current CPR Rules for
Non-Administered Arbitration. The arbitration shall be governed by the Federal
Arbitration Act, 9 U.S.C. Section 116, and judgment upon the award rendered by
the arbitrator may be entered by any court having jurisdiction thereof. The
arbitration shall be held in Dallas, Texas and, unless the parties agree
otherwise, the arbitrator shall be selected from CPR's panel of neutrals.

         Either party may demand arbitration by sending to the other party by
certified mail a written notice of demand for arbitration, setting forth the
matters to be arbitrated. The arbitrator shall have the authority to award only
compensatory damages, and neither party shall be entitled to written or
deposition discovery from the other. The Company will pay the fees and expenses
of the arbitrator, as well as any attorneys' fees, expert witness fees, and
other expenses to the extent

                                     -8-

<PAGE>

provided in Section 18 hereof. The arbitrator shall have no authority to
alter, amend or modify any of the terms and conditions of this Agreement.

         Before arbitrating the dispute, the parties, if they so agree, may
endeavor to settle the dispute by mediation under the then current CPR Mediation
Procedure. Unless otherwise agreed, the parties will select a mediator from the
CPR panel of neutrals. If the mediation is not successfully concluded within
thirty (30) days, the dispute will proceed to arbitration as set forth above.

         Notwithstanding the pendency of any dispute or controversy concerning
termination or the effects thereof, the Company will continue to pay the
Executive his full compensation in effect immediately before any notice of
termination giving rise to the dispute was given and continue him as a
participant in all compensation, benefit and insurance plans in which he was
then participating, until an award has been entered by the arbitrator. Any
amounts paid hereunder shall be set off against or reduced by any other amounts
due under this Agreement.

16.      CERTAIN TAX MATTERS

         (a) ADDITIONAL PAYMENTS

                    (i)       Anything in this Agreement to the contrary
                              notwithstanding (other than as provided in Section
                              16(b) hereof), in the event it shall be determined
                              (as hereafter provided) that any payment or
                              distribution to or for the Executive's benefit,
                              whether paid or payable or distributed or
                              distributable pursuant to the terms of this
                              Agreement or otherwise pursuant to or by reason of
                              any other agreement, policy, plan, program or
                              arrangement (including without limitation any
                              stock option agreement), or similar right (a
                              "Payment"), would be subject to the excise tax
                              imposed by Section 4999 of the Internal Revenue
                              Code of 1986 (the "Code") (or any successor
                              provision thereto), or any interest or penalties
                              with respect to such excise tax (such excise tax,
                              together with any such interest and penalties, are
                              hereafter collectively referred to as the "Excise
                              Tax"), then the Executive shall be entitled to
                              receive an additional payment or payments (a
                              "Gross-Up Payment") in an amount such that, after
                              payment by the Executive of all taxes (including
                              any interest or penalties imposed with respect to
                              such taxes), including any Excise Tax, imposed
                              upon the Gross-Up Payment, the Executive retains
                              an amount of the Gross-Up Payment equal to the
                              Excise Tax imposed upon the Payments.

                    (ii)      Subject to the provisions of Section 16(a)(v), all
                              determinations

                                     -9-

<PAGE>

                              required to be made under this Section 16(a),
                              including whether an Excise Tax is payable by
                              the Executive, the amount of such Excise Tax,
                              whether a Gross-Up Payment is required, and the
                              amount of such Gross-Up Payment, shall be made
                              by a nationally-recognized legal or accounting
                              firm (the "Firm") selected by the Company in the
                              Company's sole discretion. The Executive agrees
                              to direct the Firm to submit its determination
                              and detailed supporting calculations to both the
                              Executive and the Company as promptly as
                              practicable. If the Firm determines that any
                              Excise Tax is payable by the Executive and that
                              a Gross-Up Payment is required, the Company
                              shall pay the Executive the required Gross-Up
                              Payment within fifteen business days after
                              receipt of such determination and calculations.
                              If the Firm determines that no Excise Tax is
                              payable by the Executive, it shall, at the same
                              time as it makes such determination, furnish the
                              Executive with an opinion that the Executive has
                              substantial authority not to report any Excise
                              Tax on the Executive's federal income tax
                              return. Any determination by the Firm as to the
                              amount of the Gross-Up Payment shall be binding
                              upon the Executive and the Company. As a result
                              of the uncertainty in the application of Section
                              4999 of the Code (or any successor provision
                              thereto) at the time of the initial
                              determination by the Firm hereunder, it is
                              possible that Gross-Up Payments which will not
                              have been made by the Company should have been
                              made (an "Underpayment"). In the event that the
                              Company exhausts its remedies pursuant to
                              Section 16(a)(v) hereof and the Executive
                              thereafter is required to make a payment of any
                              Excise Tax, the Executive may direct the Firm to
                              determine the amount of the Underpayment (if
                              any) that has occurred and to submit its
                              determination and detailed supporting
                              calculations to both the Executive and the
                              Company as promptly as possible. Any such
                              Underpayment shall be promptly paid by the
                              Company to the Executive, or for the Executive's
                              benefit, within ten business days after receipt
                              of such determination and calculations.

                  (iii)       The Executive and the Company shall each provide
                              the Firm access to and copies of any books,
                              records and documents in the possession of the
                              Company or the Executive, as the case may be,
                              reasonably requested by the Firm, and otherwise
                              cooperate with the Firm in connection with the
                              preparation and issuance of the determination
                              contemplated by Section 16(a)(ii) hereof.

                                    -10-

<PAGE>

                  (iv)        The fees and expenses of the Firm for its services
                              in connection with the determinations and
                              calculations contemplated by Section 16(a)(ii)
                              hereof shall be borne by the Company. If such fees
                              and expenses are initially paid by the Executive,
                              the Company shall reimburse the Executive the full
                              amount of such fees and expenses within ten
                              business days after receipt from the Executive of
                              a statement therefor and reasonable evidence of
                              the Executive's payment thereof.

                    (v)       The Executive agrees to notify the Company in
                              writing of any claim by the Internal Revenue
                              Service that, if successful, would require the
                              payment by the Company of a Gross-Up Payment. Such
                              notification shall be given as promptly as
                              practicable but no later than 10 business days
                              after the Executive actually receives notice of
                              such claim. The Executive agrees to further
                              apprise the Company of the nature of such claim
                              and the date on which such claim is requested to
                              be paid (in each case, to the extent known by the
                              Executive). The Executive agrees not to pay such
                              claim prior to the earlier of (a) the expiration
                              of the 30-calendar-day period following the date
                              on which the Executive gives such notice to the
                              Company and (b) the date that any payment with
                              respect to such claim is due. If the Company
                              notifies the Executive in writing at least five
                              business days prior to the expiration of such
                              period that it desires to contest such claim, the
                              Executive agrees to:

                              (a)   provide the Company with any written records
                                    or documents in the Executive's possession
                                    relating to such claim reasonably requested
                                    by the Company;

                              (b)   take such action in connection with
                                    contesting such claim as the Company shall
                                    reasonably request in writing from time to
                                    time, including without limitation accepting
                                    legal representation with respect to such
                                    claim by an attorney competent in respect of
                                    the subject matter and reasonably selected
                                    by the Company;

                              (c)   cooperate with the Company in good faith in
                                    order effectively to contest such claim; and

                                    -11-

<PAGE>

                              (d)   permit the Company to participate in any
                                    proceedings relating to such claim;

                  provided, however, that the Company shall bear and pay
                  directly all costs and expenses (including interest and
                  penalties) incurred in connection with such contest and shall
                  indemnify and hold the Executive harmless, on an after-tax
                  basis, from and against any Excise Tax or income tax,
                  including interest and penalties with respect thereto, imposed
                  as a result of such representation and payment of costs and
                  expenses. Without limiting the foregoing provisions of this
                  Section 16(a)(v), the Company shall control all proceedings
                  taken in connection with the contest of any claim contemplated
                  by this Section 16(a)(v) and, at its sole option, may pursue
                  or forego any and all administrative appeals, proceedings,
                  hearings and conferences with the taxing authority in respect
                  of such claim (provided, however, that the Executive may
                  participate therein at the Executive's own cost and expense)
                  and may, at its option, either direct the Executive to pay the
                  tax claimed and sue for a refund or contest the claim in any
                  permissible manner, and the Executive agrees to prosecute such
                  contest to a determination before any administrative tribunal,
                  in a court of initial jurisdiction and in one or more
                  appellate courts, as the Company shall determine; provided,
                  however, that if the Company directs the Executive to pay the
                  tax claimed and sue for a refund, the Company shall advance
                  the amount of such payment to the Executive on an
                  interest-free basis and shall indemnify and hold the Executive
                  harmless, on an after-tax basis, from any Excise Tax or income
                  tax, including interest or penalties with respect thereto,
                  imposed with respect to such advance; and provided further,
                  however, that any extension of the statute of limitations
                  relating to payment of taxes for the Executive's taxable year
                  with respect to which the contested amount is claimed to be
                  due is limited solely to such contested amount. Furthermore,
                  the Company's control of any such contested claim shall be
                  limited to issues with respect to which a Gross-Up Payment
                  would be payable hereunder and the Executive shall be entitled
                  to settle or contest, as the case may be, any other issue
                  raised by the Internal Revenue Service or any other taxing
                  authority.

                    (vi)      If, after the receipt by the Executive of an
                              amount advanced by the Company pursuant to Section
                              16(a)(v) hereof, the Executive receives any refund
                              with respect to such claim, the Executive agrees
                              (subject to the Company's complying with the
                              requirements of Section 16(a)(v) hereof) to
                              promptly pay to the Company the amount of such
                              refund (together with any

                                    -12-

<PAGE>

                              interest paid or credited thereon after any
                              taxes applicable thereto). If, after the
                              Executive's receipt of an amount advanced by the
                              Company pursuant to Section 16(a)(v) hereof, a
                              determination is made that the Executive is not
                              entitled to any refund with respect to such
                              claim and the Company does not notify the
                              Executive in writing of its intent to contest
                              such denial of refund prior to the expiration of
                              30 calendar days after such determination, then
                              such advance shall be forgiven and shall not be
                              required to be repaid and the amount of such
                              advance shall offset, to the extent thereof, the
                              amount of Gross-Up Payment required to be paid
                              pursuant to this Section 16(a).

          (b) Notwithstanding Section 16(a), in the event that the excess of
              (i) the amount of "parachute payments" (as defined in Section
              280G of the Code) received by the Executive pursuant to this
              Agreement (or any other agreement between the Company and the
              Executive) over (ii) 2.99 times the Executive's "base amount"
              (as defined in Section 280G of the Code), is less than $50,000,
              the Executive agrees to waive such payments and benefits as he
              may choose so as to reduce the payments and benefits that he
              shall receive to an amount that will not result in any loss of
              a deduction to the Company for such payments and benefits pursuant
              to Section 280G nor the imposition of an excise tax on the
              Executive for such payments and benefits pursuant to Section 4999.

17.  WITHHOLDING OF TAXES

         The Company may withhold from any amounts payable under this Agreement
all federal, state, city or other taxes as shall be required pursuant to any law
or government regulation or ruling.

18.  LEGAL FEES AND EXPENSES

         It is the intent of the Company that the Executive not be required to
incur the legal expenses associated with (i) the obtaining of any right or
benefit under, this Agreement or (ii) the enforcement of his rights under this
Agreement by litigation or other legal action, because the cost and expense
thereof would substantially detract from the benefits intended to be extended to
the Executive hereunder. Accordingly, the Company irrevocably authorizes the
Executive from time to time to retain counsel of his choice, at the expense of
the Company as hereafter provided, to represent the Executive in connection with
the interpretation or enforcement of this Agreement,

                                    -13-

<PAGE>

including the initiation or defense of any litigation or other legal action,
whether by or against the Company or any Director, officer, stockholder or
other person affiliated with the Company, in any jurisdiction. Notwithstanding
any existing or prior attorney-client relationship between the Company and
such counsel, the Company irrevocably consents to the Executive's entering
into an attorney-client relationship with such counsel, and in that connection
the Company and the Executive agree that a confidential relationship shall
exist between the Executive and such counsel. The Company shall pay or cause
to be paid and shall be solely responsible for any and all attorneys' and
related fees and expenses incurred by the Executive under this Section 18.

19.      INTEGRATION WITH AMENDED AND RESTATED EMPLOYMENT AGREEMENT

         The Company has previously entered into the Employment Agreement with
Executive. It is the intent of both Company and Executive that such Employment
Agreement remain in full force and effect and that this Agreement in no way
shall impair Executive's rights and obligations, and Company's rights and
obligations, under such Employment Agreement. However, to the extent that this
Agreement and the Employment Agreement shall conflict, it is the intent of the
Company and the Executive that such agreements shall be interpreted in a manner
such that Executive receives the greater of (i) the payment or benefit provided
under this Agreement or (ii) the payment or benefit provided under the
Employment Agreement, but that in no event shall Executive be entitled to
receive payments or benefits under both agreements to the extent such payments
or benefits are duplicative.

                           Dal-Tile International Inc.

                           BY:
                                ------------------------------------------------
                                Title:

                           -----------------------------------------------------
                           Jacques R. Sardas

                                    -14-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]