Document:

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                        SEPARATION AND RELEASE AGREEMENT

     This Separation and Release Agreement ("Agreement") is made by and between
Ventas, Inc. ("Company") and Steven T. Downey ("Employee"). Employee has been
employed by Company as its Executive Vice President and Chief Financial Officer.
The parties hereby agree to the separation from that employment and from any
office or position held in any affiliates of Company upon the following terms:

     1. TERMINATION DATE. Employee's separation from the Company's employment
will be effective February 9, 2000 (the "Termination Date"). As of the
Termination Date, Employee shall be relieved of all duties. Employee hereby
resigns from any and all capacities and positions with the Company and all its
affiliates effective as of February 9, 2000, and the Company hereby accepts such
resignation effective as of such date, on behalf of the Company and all of its
affiliates.

     2. CONSIDERATION. In exchange for the mutual promises and releases set out
in this Agreement, Company agrees that unless the Agreement is revoked pursuant
to Paragraph 6, it will:

     (a) pay Employee the gross amount of four hundred twenty thousand dollars
($420,000), minus all applicable taxes and withholding, two hundred thousand
dollars ($200,000) of which includes 1999 bonus and all accrued vacation.
Company will pay this severance pay in a lump sum no later than ten business
days following Company's receipt of this Agreement executed by Employee.
Employee agrees this amount includes all vacation pay he has accrued;

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     (b) continue to provide, at Company expense, for one year following the
Termination Date, health insurance to Employee with the same coverage as other
Company executives. When this coverage ends, employee will be entitled to COBRA;

     (c) continue to provide, at Company expense for one year following the
Termination Date, Employee's life insurance being provided by the Company as of
Termination Date;

     (d) continue to provide, at Company expense for one year following the
Termination Date, long-term disability insurance benefits to Employee equivalent
to the coverage that the Employee would have had he remained employed by the
Company;

     (e) credit Employee with one additional year of vesting for purposes of the
restricted stock awards granted as of September 21, 1998 and January 13, 1999.
The parties acknowledge that (i) the granting of such additional vesting results
in a total of 12,500 shares of the restricted stock award granted as of
September 21, 1998 being vested and 12,500 shares of such restricted stock award
being forfeited and reconveyed to the Company by Employee without additional
consideration and (ii) the granting of such additional vesting results in a
total of 10,000 shares of the restricted stock award granted as of January 13,
1999 being vested and 10,000 shares of such restricted stock award being
forfeited and reconveyed to the Company by Employee without additional
consideration. Notwithstanding the preceding sentences, no additional shares
shall be treated as vested until Employee has provided the Company with or
reimbursed the Company for applicable tax withholding on the vesting, including
prior vesting, of all shares of restricted stock. The parties acknowledge that
Employee made an 83(b) election on the September 21, 1998 grant of stock and
that the Company withheld taxes on that grant of stock;

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     (f) subject to the terms of the Ventas, Inc. 1997 Incentive Compensation
Plan, Employee shall have the right to exercise options for up to 18,750 shares
through May 9, 2001 pursuant to the nonqualified stock option agreement dated
September 21, 1998. The parties acknowledge that options for the remaining
56,250 shares pursuant to the nonqualified stock option agreement dated
September 21, 1998 as well as options for the full 50,000 shares pursuant to the
nonqualified stock option agreement dated May 13, 1999 are forfeited and
canceled;

     (g) extinguish the promissory note dated October 22, 1998 in the aggregate
principal sum of one hundred thirty six thousand eight hundred fifty five
dollars and sixty-eight cents ($136,855.68) and forgive the unpaid principal
balance. The amount of said forgiveness will be included in Employee's February
2000 wage and earnings statement as compensation. The Company will withhold and
pay to the appropriate taxing authorities at the highest applicable rate an
amount equal to all taxes required on the amount of forgiveness and will, in
addition, include the taxes required on the gross-up and will withhold and pay
to the appropriate taxing authorities at the highest applicable rate an amount
equal to all taxes required on the gross-up such that all income and withholding
equals two hundred seventy-two thousand one hundred seventy-eight dollars and
sixteen cents ($272,178.16); and

     (h) any reimburseable business expenses incurred by Employee in the regular
course of his duties, provided that Employee submits documentation acceptable to
the Company of the amount and purpose of the expenses.

     3. OFFSET. The Company may offset any amounts otherwise due to Employee
pursuant to Paragraph 2 to the extent that Employees owes Company any money,
including, for example only, and not as a limit to such monies owed, personal
expenses of Employee paid by the Company or any taxes due on vested restricted
stock.

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     4. INDEMNIFICATION. Employee shall indemnify Company and hold it harmless
for and from any liability, claim, demand, cost, penalties, interest, expenses,
or attorneys' fees incurred by it as a result of any assertion by the Internal
Revenue Service or any state or local taxation authority that the payments made
to Employee under this Agreement are subject to withholding tax under the
provisions of federal, state or local law. Upon receipt of any notice, inquiry,
demand, or threat of assertion of liability with respect to the settlement
payment made to Employee, Company will give Employee written notice within
fifteen (15) days by mailing such notice to his last known address.

     5. RELEASE. In consideration for the promises made by the parties and the
payments to be made by Company under this Agreement, the receipt and sufficiency
of which are hereby acknowledged:

     (a) Employee hereby releases and forever discharges the Company and its
affiliates and their respective shareholders, directors, officers, agents,
representatives, and employees, past and present, from any and all claims,
demands, causes of action or liabilities, which Employee ever had or now has
against the Company or its officers or directors, including, without limitation,
any such claim, demand, cause of action or liability arising out of or in any
way connected with his employment by and/or separation from the Company
(exclusive of this Agreement). Without limiting the generality of the foregoing,
this release applies to all contracts and agreements (exclusive of this
Agreement) between Employee and Company, including without limitation, the
Change of Control and Severance Agreement and the Employment Agreement, both
entered into between Company and Employee on or about September 28, 1998, and to
any right which Employee has or may have to commence or maintain a charge or
action alleging discrimination under any federal, state or local statute
(whether before a court or an

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administrative agency), including, but not limited to, the Age Discrimination in
Employment Act of 1967, Title VII of the Civil Rights Act of 1964, the Employee
Retirement Income Security Act of 1974, the Americans with Disabilities Act, the
Family and Medical Leave Act, the Fair Labor Standards Act, the Kentucky Civil
Rights Act, all as amended from time to time, and to any right which Employee
has or may have to commence or maintain a claim for attorneys' fees, wrongful
discharge, estoppel, breach of contract, damage to personal or professional
reputation, misrepresentation, and/or intentional or negligent infliction of
emotional distress.

     Employee warrants and represents he has not directly or indirectly
transferred or assigned rights or causes of action against Company. Employee
agrees not to make, assert or maintain any charge, claim, demand or action which
would be covered by this release.

     Employee further agrees that this Agreement replaces the Change of Control
Agreement and the Employment Agreement, each entered into between Company and
Employee on or about September 21, 1998, and terminates any rights or
obligations either Company or Employee had under the Change of Control Agreement
and the Employment Agreement.

     (b) The Company has no knowledge at this time of any claims it may have
against Employee.

     (c) The parties agree that Employee will be covered by the Company's
Directors and Officers Liability Insurance for acts he undertook as an employee
of the Company prior to the Termination Date to the extent that other officers
of the Company are covered.

     6. ADEA WAIVER. Employee acknowledges that this Agreement includes a waiver
of any rights and claims arising under the Age Discrimination in Employment Act.
Employee understands he is not waiving rights or claims that may arise after the
date this Agreement is executed. Employee acknowledges that the consideration he
is receiving in

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exchange for his waiver of the rights and claims specified herein exceeds
anything of value to which he already is entitled. Employee acknowledges that he
was advised in writing to consult with an attorney prior to executing this
Agreement. Employee represents and agrees that he fully understands his right to
discuss all aspects of this Agreement with legal counsel and, to the extent he
deems appropriate, he has fully availed himself of this right. Employee
acknowledges that he has entered into this Agreement knowingly and voluntarily
with full understanding of its terms and after having had the opportunity to
seek and receive advice and counsel from his attorney. Employee acknowledges
that he has been given a period of at least twenty-one (21) days within which to
consider this Agreement. Employee understands that he may revoke this Agreement
during the seven (7) days following the execution of this Agreement and that
this paragraph of the Agreement will not become effective until that seven-day
revocation period has expired.

     7. NON-LIABILITY. This Agreement is not intended to constitute and should
not be construed as constituting an admission of fault, wrongdoing or liability
by either party, but rather reflects the desire of the parties to resolve fairly
and amicably any past, present, or future disputes or claims.

     8. NON-DISPARAGEMENT. The parties agree that they will not, directly or
indirectly, individually or in concert with others, engage in any conduct or
make any statement that is calculated or likely to have the effect of
undermining, disparaging or otherwise reflecting poorly upon the other,
including upon the reputation of the Company or its good will, products,
officers, directors, or business opportunities or that is in any manner
detrimental to Company and/or its officers, directors, agents, representatives,
or employees, past or present. Employee specifically agrees that he will not at
any time speak with the press or any other media about his

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employment with Company, the separation of that employment, his duties with the
Company, or the Company's business or affairs.

     9. COOPERATION. Employee agrees to make himself available at reasonable
times to Company and its accountants, counsel, officers and employees for the
purpose of assisting the Company with the transition of his duties, answering
any questions, signing any documents, and resolving any problems. Employee
agrees to cooperate with Company as reasonably directed by it by responding to
questions, depositions, administrative proceedings and court hearings, executing
documents, and cooperating with Company and its accountants and legal counsel
with respect to business or financial issues, and/or claims and litigation of
which he has personal or corporate knowledge. Employee also shall make himself
available at reasonable times to answer questions or provide other information
within his possession and requested by Company relating to Company or its
operations in order to facilitate the smooth transition of Employee's duties to
his successor. Company will pay Employee one hundred fifty dollars ($150) per
hour for time he spends on such matters.

     Employee specifically agrees that he will cooperate fully with the Company
to transfer his responsibility for bank accounts and investments to
Company-designated representatives and that he will take no action after the
Termination Date with respect to any Company bank account or investment.

     10. CONFIDENTIALITY OF TERMS OF AGREEMENT. The parties agree that the terms
of this Agreement are confidential, and they promise not to disclose any of the
terms hereof to any third party, except that they may disclose it to their
respective financial and/or legal counsel, as required by the terms of a court
order or other legal process, or, in the Company's case, as required by business
necessity or as may be required by applicable law. If

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any party is required to reveal this information pursuant to a court order or
other legal process, that party agrees to provide the other party with written
notice of the requirement and a copy of the court order or legal process within
two business days of receipt of the court order or legal process and prior to
any disclosure pursuant to such requirement and agrees to cooperate with the
other party in any efforts by that party to limit the scope of disclosure of the
information and to obtain confidential treatment of any material disclosed.
Company hereby notifies Employee that it will disclose the terms of this
Agreement with its filings of Form 10-K statements with the United States
Securities and Exchange Commission. Employee agrees that Company may issue a
press release announcing his departure from the Company to pursue other
opportunities and that such press release will not breach the provisions of this
Paragraph.

     11. COMPANY PROPERTY. Employee agrees that he will return to the Company
(in its current form and substance) no later than 2 business days after the
Termination Date any and all property of the Company and the Company's
Confidential Information (as defined below) which came into his possession, or
which he prepared or helped prepare, in connection with or during his employment
with the Company (including, but not limited to any and all copies of financial
statements, auditors reports and letters, records, ledgers, spreadsheets,
writings, materials, memoranda and other tangible manifestations of and/or
pertaining to such Confidential Information, regardless of for whom the same
were prepared). Employee further agrees that he has not retained and will not
retain any copies, duplicates, reproductions, or excerpts thereof. This
obligation specifically applies to any Company computer files Employee may have
in any other location other than at the Company, including in his home and the
laptop computer Employee was allowed to use in the performance of his duties.
Employee specifically

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agrees that effective immediately, he will not use and will immediately return
all Company keys, credit cards, calling cards, limousine cards and vouchers,
computers, and the like.

     12. CONFIDENTIAL COMPANY INFORMATION. The Company's Confidential
Information (as defined below) is the property of the Company, and its use,
misappropriation or disclosure will constitute a breach of trust and cause
irreparable injury or harm to the Company and to its strategic and competitive
position. It is essential to the protection of the Company's business and good
will and to the maintenance of the Company's strategic and competitive position
that the Confidential Information be kept secret and confidential and that
Employee not disclose the Confidential Information to any other person or entity
or use the Confidential Information to his own advantage or the advantage to
others.

     Employee agrees that he will not, without the prior written consent of the
Board, disclose or make available to anyone for use outside the Company's
organization at any time any of the Company's Confidential Information, whether
or not developed by the him, except to the extent that such information (i) is
or becomes generally available to the public other than as a result of a
disclosure by Employee in violation of this Agreement, (ii) was available to
Employee on a non-confidential basis prior to the date hereof, or (iii) is
required to be disclosed pursuant to a court order or other legal process
(provided Employee gives the Company notice of such obligation when he receives
notice of such obligation and prior to any disclosure pursuant to such
obligation affords the Company the opportunity and cooperates with the Company
in any efforts by the Company to limit the scope of such obligation and/or to
obtain confidential treatment of any material disclosed pursuant to such
obligation).

     For purposes of this Agreement, the term "Confidential Information"
includes information of any nature and in any form which at the time or times
concerned is not generally

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known to those persons engaged in a business similar to that conducted or
contemplated by the Company and which relates to any one or more of the aspects
of the Company's business, actual or potential products of the Company, or the
Company's strategies or potential liabilities, including, but not limited to,
information protected by the Company's attorney/client, work product, or tax
advisor/audit privilege; tax matters and information; negotiations with third
parties; methods, policies, processes, formulas, techniques, know-how and other
knowledge; trade practices, trade secrets, or financial matters; customers,
lists of customers or customers' purchases; lists of suppliers, manufacturers,
representatives, or other distributors; requirements for systems, programs,
machines, or other equipment; information regarding Company's bank accounts,
credit agreement, or financial projections information; and information
regarding its directors or officers or their personal affairs.

     13. NON-COMPETE. Employee agrees that, for a period of two years following
the Termination Date (the "Restricted Period"), he shall not directly or
indirectly become employed by or engage or participate in Vencor, Inc. or any of
its parent, sister, subsidiary, or affiliated entities in any manner, including,
without limitation, as an owner, principal, partner, officer, director,
stockholder, employee, consultant, contractor, agent, broker, representative or
otherwise. The parties agree that Employee will not be in breach of this
Paragraph if, as part of a restructuring of Vencor in which Ventas stock holders
receive Vencor stock, he becomes a shareholder in Vencor.

     14. NO SOLICITATION OF EMPLOYEES. Employee agrees that, during the
Restricted Period, he will not, either directly or indirectly, on his own or in
the service or on behalf of others solicit, divert or hire, any person employed
by the Company at any time from the Termination Date through the expiration of
the Restricted Period.

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     15. INJUNCTIVE RELIEF. Employee agrees that it would be difficult to
compensate the Company fully for damages for any violation of the provisions of
this Agreement, including without limitation the provisions of Paragraphs 10
through 14. Accordingly, Employee specifically agrees that the Company shall be
entitled to temporary and permanent injunctive relief for violations of the
provisions of this Agreement.

     16. BREACH OF THE AGREEMENT. In the event Employee is in material breach of
any provision of this Agreement, it shall be deemed to constitute a failure of
consideration and the Company shall be relieved of all its obligations
hereunder. Employee agrees to indemnify the Company from and against all
liability, costs and expenses, including reasonable attorneys' fees, arising out
of a breach of this Agreement.

     17. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties concerning the subject matter hereof and supersedes all
prior and contemporaneous agreements, if any, between the parties relating to
the subject matter hereof. The Agreement may be modified or amended only by a
supplemental written agreement signed by Employee and the Company.

     18. ASSIGNMENT. This Agreement shall inure to the benefit of the Company
and its successors and assigns. In view of the personal nature of Employee's
obligations under this Agreement, he shall not have the right to assign or
transfer any of his rights, obligations, or benefits under this Agreement
without first obtaining the written consent of the Company.

     19. ACKNOWLEDGMENT. EMPLOYEE REPRESENTS AND AGREES THAT HE FULLY
UNDERSTANDS HIS RIGHT TO DISCUSS ALL ASPECTS OF THIS AGREEMENT WITH LEGAL
COUNSEL AND, TO THE EXTENT HE DEEMS APPROPRIATE, HE HAS FULLY AVAILED HIMSELF OF
THIS RIGHT, AND HE HAS

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CAREFULLY READ AND FULLY UNDERSTANDS ALL THE PROVISIONS OF THIS AGREEMENT AND IS
VOLUNTARILY ENTERING INTO THEM.

     20. CHOICE OF LAWS. The provisions of this Agreement shall be construed in
accordance with the internal laws, but not the laws of conflicts, applicable to
agreements made in the Commonwealth of Kentucky.

     21. COUNTERPARTS. This Agreement may be signed in single or separate
counterparts, each of which shall constitute an original.

VENTAS, INC.                            STEVEN T. DOWNEY

By: /s/ Debra A. Cafaro                 /s/ Steven T. Downey
    ------------------------------      ------------------------------
    Debra A. Cafaro
    President

Dated: 2/29/00                          Dated: 2/29/00<PAGE>

                                SUPPLY AGREEMENT

       THIS SUPPLY AGREEMENT ("Supply Agreement"), entered into this 29th day of
December, 1999, is made by and between Dal-Tile Corporation, a Pennsylvania
corporation ("Dal-Tile"), and Wold Talc Company, Inc., a Wyoming corporation
("Wold").

                                  INTRODUCTION

       WHEREAS, Wold desires to sell to Dal-Tile talc for use in products
manufactured by Dal-Tile or any of its affiliates or subsidiaries.

       WHEREAS, Dal-Tile desires to purchase from Wold talc for use in products
manufactured by Dal-Tile or any of its affiliates or subsidiaries.

       NOW, THEREFORE, in consideration of the premises and covenants contained
herein, the receipt and sufficiency of which is acknowledged by the parties,
Wold and Dal-Tile hereby agree as follows:

       1.     DEFINITIONS.

       (a) As used in this Supply Agreement, the terms "Wold," "Dal-Tile,"
"Agreement," and "Effective Date" shall have the meanings indicated above.

       (b) As used in this Supply Agreement, all other capitalized terms shall
have the meanings assigned such terms below:

              (i)    "Additional Supply Requirement" shall mean that Product
                     needed and ordered by Dal-Tile during each Annual Period of
                     the Term in excess of the Minimum Supply Requirements.

              (ii)   "Annual Period" shall mean the period from January 1
                     through December 31 of the specified year of the Term.

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              (iii)  "Annual Shortfall" shall refer to that portion of the
                     Minimum Supply Requirement that Dal-Tile has not ordered or
                     paid for in a specified Annual Period.

              (iv)   "Average Monthly Consumption" shall mean Dal-Tile's monthly
                     average purchase of Product during the immediately
                     preceding 12 months but not to exceed Dal-Tile's projected
                     supply requirements for the next 12 months.  For the first
                     12 month period of the Term, Dal-Tile's Average Monthly
                     Consumption shall be based on Dal-Tile's consumption of the
                     Product for the 12-month period prior to the Effective Date
                     of this Supply Agreement that Dal-Tile represents is 13,000
                     tons of Product per month.

              (v)    "Confidential Information" shall have the meaning assigned
                     to such term in Section 10 below.

              (vi)   "Effective Date" shall be January 1, 2000.

              (vii)  "Inventory Reports" shall mean the monthly reports made by
                     Wold pertaining to Wold's inventory of Product in
                     stockpiles at Wold's facilities, including the Premises.

              (viii) "Minimum Supply Requirement" shall mean no less than
                     125,000 tons of the Product during each Annual Period.

              (ix)   "New Plant" shall mean a tile plant that was not operated
                     by Dal-Tile or any affiliate or division thereof prior to
                     the Effective Date.

              (x)    "Plants" shall refer to the three tile plants presently
                     owned or operated by Dal-Tile located at Monterrey, Mexico;
                     El Paso, Texas; and Dallas, Texas.

              (xi)   "Premises" shall refer to the mining operations (including
                     all mineral leases, real property rights and interests,
                     plant and equipment used in the mining operation) in
                     Hudspeth County, Texas, that were purchased by Wold from
                     Dal-Tile concurrently herewith and that are more
                     particularly described in Exhibit C hereto.

              (xii)  "Product" will mean talc meeting the Specifications.

              (xiii) "Specifications" will mean the specifications and
                     requirements for the Product described in Exhibit A, as
                     amended, supplemented, or modified from time to time, in
                     writing, by mutual agreement of Wold and Dal-Tile. The
                     Specifications have been initially determined and agreed to
                     by Frank A. Alsobrook, consultant to Dal-Tile.

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              (xiv)  "Supply Requirement Notification" shall mean the forecasted
                     supply of Product needed and anticipated to be ordered by
                     Dal-Tile for the specified Annual Period, both in annual
                     aggregate and on a monthly basis.

              (xv)   "Term" will have the meaning assigned to such term in
                     Section 2 hereof.

       2.     TERM.

       The initial term of this Supply Agreement (the "Initial Term") will run
from the Effective Date for a period of ten (10) years through December 31,
2009. The Initial Term shall renew automatically for four (4) successive five
(5) year terms upon the same terms and conditions of this Supply Agreement
(except as otherwise provided herein) unless written notice of intention not to
renew is provided by Dal-Tile at least one year prior to the end of any Term.
Unless otherwise indicated, all references herein to the "Term" shall include
the Initial Term and each renewal thereof that becomes effective pursuant to
this section 2.

       3.     SUPPLY AND PRODUCTION.

       (a)    SUPPLY REQUIREMENTS AND OPTIONS:   Subject to the provisions of
Section 7(a) of this Supply Agreement, Wold and Dal-Tile agree as follows:

              (i)    MINIMUM SUPPLY AND PURCHASE REQUIREMENTS: Wold will
       guarantee that it will sell and deliver to Dal-Tile as provided in this
       Supply Agreement the Minimum Supply Requirement for each Annual Period of
       the Term.  Dal-Tile guarantees that it shall purchase and/or accept
       delivery from Wold of the Minimum Supply Requirement during each Annual
       Period of the Term.

              (ii)   ADDITIONAL SUPPLY AND PURCHASE REQUIREMENTS FOR THE PLANTS:
       For each Annual Period, Dal-Tile agrees that it shall purchase from Wold
       all Product needs that it has for the Plants, including those supply
       requirements created by any expansion of such Plants. Wold agrees that it
       shall supply and sell to Dal-Tile such additional Product requirements
       provided that (1) Dal-Tile shall not be entitled to resell, transfer or
       trade

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       additional Product without Wold's written consent, (2) Wold's obligations
       to supply additional Product under this Section 3(a)(ii) shall not exceed
       125,000 tons for each Annual Period (in addition to the Minimum Supply
       Requirement for such Annual Period), and (3) additional requirements for
       any Annual Period do not exceed by more than 25% the annual amount of
       Product specified in Supply Requirement Notification for such Annual
       Period unless waived by Wold. On or before October 1st of the year before
       the next Annual Period, Dal-Tile shall provide Wold with its Supply
       Requirement Notification; provided, for the initial Annual Period,
       Dal-Tile shall provide its Supply Requirement Notification on or before
       January 31, 2000. Dal-Tile agrees to use its best efforts to inform Wold
       of any changes in the Supply Requirement Notification, and, upon receipt
       thereof by Wold, such revised Supply Requirement Notification shall be
       the Supply Requirement Notification for the Annual Period covered
       thereby.

              (iii)  ADDITIONAL SUPPLY AND PURCHASE REQUIREMENTS FOR NEW PLANTS:
       During the Term of this Supply Agreement, Dal-Tile and Wold agree they
       shall cooperate in anticipating Dal-Tile's needed supply for any New
       Plant ("New Plant Supply Needs") and providing such supply at market
       prices by Wold. The provisions of this section are intended to provide a
       formal mechanism for determining and providing supply under those
       conditions. However, nothing in this section prohibits Wold and Dal-Tile
       from voluntarily utilizing other methods to accomplish those ends in a
       more efficient manner.

              For any New Plant, Dal-Tile and Wold agree that they shall attempt
       to determine if New Plant Supply Needs can be furnished at the price as
       provided in section 5.b or at some other selected price ("New Plant
       Contract Price").  If Dal-Tile and Wold agree that the New Plant Contract
       Price shall be used, this Supply Agreement shall be amended to provide
       the New Plant Supply Needs shall be part of this Supply Agreement at the
       New Plant Contract Price.

              If Dal-Tile and Wold cannot agree upon a New Plant Contract Price
       for New Plant Supply Needs, Dal-Tile agrees that it shall grant to Wold
       an irrevocable, exclusive

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       right of first refusal to supply all Product needs for the New Plant in
       question upon the following terms and conditions. If Dal-Tile receives a
       bona fide third party offer to sell talc to a New Plant (each, a "New
       Plant Proposed Transaction"), Dal-Tile shall first deliver to Wold
       written notice (a "New Plant First Refusal Notice") specifying (i) the
       aggregate amount of consideration and the form of such consideration,
       which consideration shall include freight costs (the "New Plant Offer
       Price"), and (ii) all other material terms of the Proposed Transaction,
       along with a true and correct copy of the written offer from the third
       party (the "New Plant Sale Document"). Wold shall have a period of
       fifteen (15) days following receipt of the First Refusal Notice (the "New
       Plant Notice Period") to elect to exercise its right to supply Dal-Tile's
       Product needs for the New Plant upon the same terms and conditions as are
       set forth in the New Plant Sale Document by delivering written notice of
       such election (the "New Plant Exercise Notice") to Dal-Tile.

              If Wold does not timely exercise its right to supply Product to a
       New Plant under this Section 3(a)(iii) or fails to provide the Product,
       Wold's rights under this Section 3(a)(iii) shall conditionally terminate
       as to the specified Proposed Transaction for the New Plant, and Dal-Tile
       may purchase Product for such New Plant for the specified order according
       to the New Plant Offer Price.  In that case, Dal-Tile shall be free to
       conclude the New Plant Proposed Transaction with the third party
       purchaser who entered into the New Plant Sale Document (but not to any
       other party or person) on substantially the same material terms and
       conditions as are contained in the New Plant Sale Document, provided such
       New Plant Proposed Transaction is consummated within 30 days following
       the expiration of the New Plant Notice Period.  If Dal-Tile does not
       consummate the New Plant Proposed Transaction within such 30-day period
       on substantially the same material terms and conditions as are contained
       in the New Plant Sale Document, Wold's rights pursuant to the right of
       first refusal under this Section 3 (a)(iii) shall be revived as to the
       New Plant Proposed Transaction

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              (iv)   WOLD'S INVENTORY UNDERTAKINGS:    During the Term of this
       Supply Agreement, Wold shall use its best efforts to maintain at least
       four (4) months inventory but in any event shall maintain not less than
       three (3) months of Product based upon Dal-Tile's Average Monthly
       Consumption.  On or before the first day of each month during the term of
       this Supply Agreement and as part of Wold's Inventory Reports, Wold shall
       provide written verification to Dal-Tile of the amount of inventory of
       Product available at the Premises.

       (b)     DAL-TILE'S PLACEMENT OF ORDERS:   No later than fifteen (15) days
prior to the beginning of any month during the Term of this Supply Agreement (or
no later than five (5) days after the Effective Date for the first month of the
Term), Dal-Tile shall place orders for the Product with Wold for the deliveries
to be made on a weekly basis during the following month. In all orders by
Dal-Tile for the Product, Dal-Tile will specify the quantity ordered and the
required delivery date.

       (c)    DELIVERY OF PRODUCT:        Wold will deliver Product in amounts
necessary to fill all of Dal-Tile's orders as provided above.  All deliveries
will be FOB loaded on the railcar in Allamore, Texas, via common carriers
acceptable to Dal-Tile, or as otherwise specified by Dal-Tile.  Wold shall be
responsible for the cleaning of all railcars used under this Supply Agreement;
provided, that if any railcar supplied by the rail carrier is damaged or
requires unreasonable efforts to clean, Wold shall notify Dal-Tile of the
condition of such railcar and the extra costs associated with its cleaning.
With Dal-Tile's prior consent, Wold may accomplish additional cleaning and shall
be reimbursed for such cleaning expenses by Dal-Tile.  In that case, Wold shall
cooperate in Dal-Tile's efforts to seek reimbursement of the additional cleaning
expense from the responsible railcar supplier.

       (d)    TITLE AND RISK OF LOSS:     Title to Product and risk of loss
shall pass to Dal-Tile upon completion of loading of each railcar or truck and
placement in readiness for haulage.

                                       6

<PAGE>

       4.     PRODUCT SPECIFICATIONS.

       (a)    SUBMISSION OF MINING PLAN BY WOLD: All Product will be produced
and delivered in conformance with (1) the Specifications and (2) the terms and
conditions of this Supply Agreement.  Prior to each Annual Period during the
Term of this Supply Agreement, Wold shall submit to Dal-Tile, for Dal-Tile's
reference, Wold's mining plan sufficient to meet Dal-Tile's supply needs for the
Annual Period as projected in the Supply Requirement Notification; provided,
however, Wold shall submit its mining plan on or before March 31, 2000 for the
initial year of the Term.

       (b)    DAL-TILE'S RIGHT OF INSPECTION:    Wold will provide Dal-Tile with
Inventory Reports.  Wold shall provide Dal-Tile with reasonable opportunity to
inspect the Product for which Inventory Reports are provided.  In its Mining
Plan, Wold shall prepare blended stockpiles of talc that shall meet
Specifications.  The stockpiles will be sampled according to sampling procedures
in the Specifications. Stockpile samples and results of Wold's testing of those
samples will be forwarded to Dal-Tile for evaluation and approval.  If Dal-Tile
wishes, it may further test the samples at its own cost. If the Specifications
are not met, additional talc will be added so as to assure conformance with
Specifications at Wold's sole expense.  Thereafter, Wold may load talc from the
approved stockpiles into railcars or trucks provided by Dal-Tile as required to
meet Dal-Tile's supply orders.

       If Wold does not load talc from approved stockpiles and the talc from
unapproved stockpiles does not conform to the Specifications, Wold shall
promptly take steps necessary to meet Specifications.  In order to remedy such
non-conformance, Wold shall ship at Dal-Tile's election and instructions such
replacement Product (i) for blending to enable non-conforming talc to meet
Specifications or (ii) for replacement of the non-conforming talc. Such
additional or replacement Product shall be at Wold's cost.

       (c)    QUALITY DISPUTE:     In the event that a dispute arises between
the parties hereto with respect to any matter concerning whether the Product
conforms to the Specifications, either

                                       7

<PAGE>

party hereto may refer the matter in issue for final determination by the agreed
expert who shall be Frank A. Alsobrook. In the event such expert is unavailable
to make such final determination or unwilling to do so, the parties shall
mutually agree as to another expert to be used. The parties shall use their best
efforts to assist the expert, as necessary. Such expert shall make the
determination within thirty (30) days after the issue is referred to the expert
for final determination, and such determination shall be binding upon the
parties. If either or both of the parties elect to use this provision, the costs
of the expert shall be shared equally.

       (d)    WOLD'S NON-PERFORMANCE:     Subject to the provisions of Section
7(a) of this Supply Agreement, Wold agrees to the following remedies upon its
non-performance to provide Product as specified in this Paragraph:

              (i)    WOLD'S AGREEMENT TO COVER:         In the event that Wold
       is unable to deliver the Product in conformance with the Specifications
       and the terms and conditions of this Supply Agreement, and such
       non-performance continues for a period in excess of fourteen (14)
       consecutive days after Dal-Tile's notice of non-performance, Dal-Tile
       may, at its option, procure the Product from an alternative source. In
       such event, Wold shall pay Dal-Tile, within ten (10) days after receipt
       of an invoice, the difference between the commercially reasonable
       replacement price (plus freight) paid by Dal-Tile and the Price (as set
       forth in Exhibit B) plus freight.

              (ii)   DAL-TILE'S RIGHT TO REPURCHASE:    Dal-Tile shall have the
       further remedy for non-performance as provided in this section 4(d)(ii).
       In the event that Wold is unable to deliver the Minimum Supply
       Requirement of the Product in conformance with the Specifications and
       such non-performance continues for a period in excess of sixty (60) days
       after Dal-Tile's notice of non-performance and further provided Wold has
       not furnished alternative supplies of the Product to fulfill the Minimum
       Supply Requirements, Dal-Tile may, at its option, exercisable by written
       notice to Wold within thirty (30) days after the expiration of the
       foregoing 60-day period, terminate its

                                       8

<PAGE>

       obligations under this Supply Agreement and/or purchase the Premises upon
       the following terms and conditions:

              (1)    If Dal-Tile elects to purchase the Premises under this
                     section 4(c), the purchase price to be paid shall be an
                     amount equal to the purchase price paid for the Premises by
                     Wold to Dal-Tile pursuant to the Purchase and Sale
                     Agreement dated December 21, 1999 (the "Purchase
                     Agreement"), LESS an amount equal to (i) the percentage of
                     talc reserves produced and taken from the Premises (except
                     the Loyce Nos. 1 and 2 Mining Claims) by Wold from and
                     after the Effective Date through the time of Dal-Tile's
                     purchase pursuant to the terms of this section, and (ii)
                     the percentage of talc reserves located on or under any
                     part of the Leases and the Mining Claims (as such terms are
                     defined in Exhibit C hereto) that Dal-Tile acquires (or
                     that Dal-Tile does not elect to acquire) in accordance with
                     section 12(l) (except the Loyce Nos. 1 and 2 Mining Claims)
                     from and after the Effective Date through the time of
                     Dal-Tile's purchase pursuant to the terms of this section.
                     For the sole purpose of the foregoing provisions, the
                     parties hereby agree that the proven talc reserves as of
                     the Effective Date are nine million (9,000,000) tons for
                     all of the Premises except the Loyce Nos. 1 and 2 Mining
                     Claims.

              (2)    The closing of the purchase of the Premises by Dal-Tile
                     shall be held at the offices of Dal-Tile, 7834 C.F. Hawn
                     Freeway, Dallas, Texas 75217, on the date that is
                     forty-five (45) days after the date of Dal-Tile's election
                     to purchase the Premises hereunder, or on such earlier date
                     or at such other place as Dal-Tile may designate by written
                     notice to Wold. At the closing, (i) Wold shall convey the
                     Premises to Dal-Tile by general warranty deed (or, in the
                     case of mineral leases, by assignment with covenants of
                     general

                                       9

<PAGE>

                     warranty, and in the case of equipment and other personal
                     property, by bill of sale with covenants of general
                     warranty), subject only to the same title exceptions to
                     which the Premises were subject when they were sold by
                     Dal-Tile to Wold, (ii) Dal-Tile shall pay the purchase
                     price to Wold in cash, and (iii) Wold and Dal-Tile shall
                     execute and deliver such other instruments and take such
                     other actions as are reasonably necessary to consummate the
                     sale and purchase of the Premises and vest title to the
                     Premises in Dal-Tile.

              (3)    At any time and from time to time prior to the closing of
                     Dal-Tile's repurchase of the Premises, Dal-Tile shall have
                     the right and license to enter reasonably upon the Premises
                     and commence the operation and production of the Product to
                     assure production and delivery of the Product to Dal-Tile
                     in conformance with the Specifications.

              (4)    Dal-Tile shall be entitled to recover all damages incurred
                     by Dal-Tile due to the loss of production and/or defective
                     Product delivered by Wold before Dal-Tile's election to
                     repurchase the Premises; provided that if Dal-Tile
                     exercises its election to repurchase the Premises, Wold
                     shall have no further obligations under this Supply
                     Agreement except such claims for damages.

       5.     INVOICE AND PAYMENT.

       (a)    WOLD'S INVOICE AND PAYMENT: During the Term, Wold shall invoice
Dal-Tile monthly (or, at Wold's option, semi-monthly) for the Product delivered
during such month, or semi-monthly period, as applicable. The invoice shall set
forth the quantities of Product delivered in accordance with this Supply
Agreement, the Price for such Product (determined in accordance with Exhibit B
hereto), and the destination of such Product.  Each invoice will be due

                                       10

<PAGE>

and payable by wire transfer within thirty (30) days after Dal-Tile's receipt of
such invoice. In the event Dal-Tile disputes any portion of the billed amount,
the disputed portion need not be paid until the parties resolve the dispute, at
which time Dal-Tile shall pay the determined amount, together with interest at 1
% per each month that the disputed portion was not paid.

       (b)    PRICE DETERMINATION: Wold shall invoice Dal-Tile at the price
("Price") for the Product calculated in accordance with Exhibit B.

       (c)    PAYMENT FOR MINIMUM SUPPLY REQUIREMENT NOT TAKEN :      Following
the end of each Annual Period, Wold shall invoice Dal-Tile for the Annual
Shortfall at the Price as determined in section 5(b).  Dal-Tile shall pay the
invoice as provided in section 5(a).  Wold shall not be required to provide
Product for the Annual Shortfall.

       6.     INSPECTION, QUALITY CONTROL, COST CONTROL AND INFORMATION

       (a)    WOLD'S MAINTENANCE OF RECORDS:     Throughout the Term and for
three years after the termination or expiration of this Supply Agreement for any
reason, Wold shall keep and maintain full, complete, and detailed records of its
operations under this Supply Agreement.  Subject to Section 10 below, Wold will
provide Dal-Tile and its representatives from time to time, as reasonably
requested by Dal-Tile, access during normal working hours to all books, records
and documentation relevant to quality control processes and checks in order for
Dal-Tile or its representatives to audit and verify records regarding, and to
inspect the operations related to, the production and delivery of Product in
accordance with this Supply Agreement.  Such access will be exercised in such a
manner as to avoid unreasonable interference with operations.  Each party in an
audit shall be responsible for its own costs.  In the event of quality disputes,
Wold shall have the right to audit Dal-Tile's quality control process, records
and documentation related to delivery of the Product.

                                       11

<PAGE>

       (b)    SAMPLE SUBMISSIONS:  As reasonably requested by Dal-Tile, Wold
will submit samples of Product (in quantities reasonably acceptable to Dal-Tile
to allow it to test the Product) to Dal-Tile at no cost to Dal-Tile. The samples
of the Product shall be submitted in the form to be delivered to Dal-Tile
pursuant to the terms of sections 3 and 4 of this Supply Agreement.

       7.     FORCE MAJEURE; DEFAULT.

       (a)    FORCE MAJEURE:       Non-performance or delays by either party in
the performance of its obligations under this Supply Agreement will be excused
if due to any cause beyond that party's reasonable control, including by way of
example only and not limitation, acts of God, governmental laws, rules, or
regulations, wars, fires, or the elements; provided, however, that such party
will be excused from its obligations under this Supply Agreement only (i) to the
extent and for the period in which such cause delays or prevents performance,
(ii) if such party immediately notifies the other party of any such actual or
anticipated nonperformance, and (iii) if such party, in cases where the
non-performance is curable or its adverse impact on the other party could be
reduced under any reasonable available means (such as, by way of example only
and not limitation, shifting or using additional sources of production or
arranging for alternative transportation), immediately uses its best efforts,
including taking all economically reasonable action necessary, to rectify such
barrier to its performance and permit such party to fully perform as soon as
possible. Upon Dal-Tile's approval, Wold shall be permitted to make up Product
not produced pursuant to this section 7 provided Dal-Tile has not procured
Product from an alternative source in the interim.

       (b)    DEFAULT NOT EXCUSED BY PARAGRAPH 7(a):    If either party defaults
in the performance of its obligations under this Supply Agreement and such
default is not excused under Paragraph 7(a), the non-defaulting party
immediately will notify the defaulting party of such default and the time to
cure such default, which time will be 30 days (except a default, in the
production and delivery of Product in accordance with the Specifications, which
shall be as

                                       12

<PAGE>

set forth in section 4 herein), after the defaulting party receives such notice
of the default. If the default continues uncorrected beyond the specified time
period, the non-defaulting party will be entitled to give written notice of its
intent to terminate this Supply Agreement if the default is not cured within
three days after such second notice. If the default is not cured within three
days after such second notice, this Supply Agreement may be terminated at the
option of the non-defaulting party. The termination of this Supply Agreement in
whole or in part pursuant to this Section 7(b) will not relieve either party
from the obligations in this Supply Agreement which survive termination and will
not preclude any party from recovering damages resulting from the breach of this
Supply Agreement by the other party, and no pursuit or exercise of any right or
remedy by any party shall preclude pursuit or exercise of any other right or
remedy available to such party; provided, however, that if Dal-Tile exercises
its right under sections 4(d)(ii), 11(c) and 12(l) of this Supply Agreement, it
shall have the right to specifically enforce the provisions of sections
4(d)(ii), 11(c) and 12(l) but shall have no other remedy available to it for any
breach of the Supply Agreement except as provided in such sections.

       (c)    NO ESTOPPEL OR WAIVER:No failure by any party to exercise any
right given in this Supply Agreement or to insist on strict compliance by the
other party of any obligation under this Supply Agreement will constitute a
waiver of the party's right to later demand exact compliance with the terms of
this Supply Agreement.

       (d)    LIMITED SURVIVAL OF RIGHTS, OBLIGATIONS AND CAUSES OF ACTION:
Upon termination of this Supply Agreement except pursuant to sections 4(d)(ii)
of this Supply Agreement, all right, obligations, and causes of action accruing
hereunder prior to such termination shall survive, and the provisions of this
Supply Agreement shall continue to be controlling for the purpose of determining
the rights of the party hereto with respect to the subject matter thereof.

       8.     INDEMNIFICATION/LIABILITY.

       (a)    Wold agrees to indemnify and hold harmless Dal-Tile from and
against all loss, cost, and expense (including reasonable attorney's fees, but
specifically excluding consequential

                                       13

<PAGE>

damages) arising out of claims, actions or judgments by third parties against
Dal-Tile to the extent caused by the negligence or willful misconduct of Wold.

       (b)    Dal-Tile agrees to indemnify and hold harmless Wold from and
against all loss, cost, and expense (including reasonable attorney's fees, but
specifically excluding consequential damages) arising out of claims, actions or
judgments by third parties against Wold to the extent caused by the negligence
or willful misconduct of Dal-Tile.

       (c)    The parties agree that (i) Dal-Tile shall remain responsible for
any liability resulting from its actions as the former operator of the Premises
prior to the Effective Date, and (ii) Wold shall be responsible for its actions
from and after the Effective Date.  The parties agree to cooperate with each
other and any local, state or federal agency to minimize any environmental
liability or other liability.

       (d)    Wold agrees to defend and indemnify Dal-Tile for any environmental
liability created by Wold's operations of the Premises.  Dal-Tile agrees to
defend and indemnify Wold for any environmental liability created by Dal-Tile's
operations of the Premises.

       (e)    If Wold has not transferred ownership of the Premises, Wold and
Dal-Tile agree that work for which Dal-Tile is responsible that is necessary for
environmental remediation or reclamation at the Premises shall be billed to
Dal-Tile at the same rate at which Wold charges itself internally for such work
if the work is performed by or on behalf of Wold.

       (f)    The indemnities and liabilities under this Section 8 shall survive
any termination or expiration of this Supply Agreement.

       9.     NOTICES.

       Unless otherwise provided herein, all notices and other communications
hereunder shall be in writing and shall be deemed to have been sufficiently
given or served for all purposes:
(a)  when deposited in the mail, if sent by registered or certified mail (return
receipt requested); or
(b)  when delivered, if delivered personally or if sent by overnight mail or
overnight courier, in

                                       14

<PAGE>

each case to the parties at the following addresses, or at such other addresses
as shall be specified by like notice given at least ten (10) days prior to the
effective date of such change of address:

If to Wold:     Wold Talc Company, Inc.
                Mineral Resource Center, Suite 200
                139 West Second Street
                Casper, Wyoming 82601-2462
                Facsimile: (307) 265-7336
                Attention: John S. Wold, Chairman

With a copy to:

                James A. Herickhoff, Chief Operating Officer
                5123 East County Road 52
                Fort Collins, CO 80524
                Facsimile: (970) 498-9849

If to Dal-Tile: Dal-Tile Corporation
                7834 C.F. Hawn Freeway
                Dallas, Texas 75217
                Facsimile: (214) 309-4300
                Attention: Mark A. Solls, Vice President

With a copy to:

                William R. Hanks, Vice-President
                Dal-Tile Corporation
                7834 C.F. Hawn Freeway
                Dallas, Texas 75217
                Facsimile: (214) 309-4300

The Parties agree that any notice shall also be sent by facsimile to the number
indicated above or as later changed by written notice; provided that notice
shall be effective if served, mailed or sent by overnight courier as provided
above.

       10.    CONFIDENTIALITY.

       The parties have executed a Confidentiality Agreement of even date, that
by this reference, shall become part of this Supply Agreement.

                                       15

<PAGE>

       11.    BENEFICIARIES; ASSIGNMENT; RIGHT OF FIRST REFUSAL.

       (a)    RIGHTS OF ASSIGNMENT:       The rights, benefits, duties and
obligations under this Supply Agreement may be assigned by either party with
prior written consent of the other Party which will not be unreasonably
withheld.  However, such assignment shall not relieve the assigning Party of its
duties and obligations under the Supply Agreement should any subsequent assignee
default under the Supply Agreement.  Subject to the foregoing, this Supply
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective heirs, legal representatives, successors and
assigns; provided that such assignee agrees to be bound by the terms of this
Supply Agreement.  By way of illustration, but not limitation, any subsequent
assignee of Wold shall assume the obligations found in Sections 4(d)(ii), 11(c)
and 12(l) of this Supply Agreement.

       (b)    INSOLVENCY AND BANKRUPTCY:  No person, firm, or corporation will
succeed to any of the rights of a party under this Supply Agreement by virtue of
any voluntary or involuntary proceeding in bankruptcy, receivership, attachment,
execution, or assignment for the benefit of creditors, or other legal process.

       (c)    DAL-TILE'S RIGHT OF FIRST REFUSAL: Wold hereby grants to Dal-Tile
an irrevocable, exclusive right of first refusal to purchase Wold's assets that
would include the Premises or the stock of Wold upon the following terms and
conditions.  If there is a bona fide third party offer to purchase (1) a
controlling interest in Wold, (2) the Premises or (3) all or substantially all
of Wold's assets that would include the Premises (each, a "Proposed
Transaction"), Wold shall first deliver to Dal-Tile a written notice (a "First
Refusal Notice") specifying (i) the aggregate amount of consideration and the
form of such consideration (the "Offer Price"), and (ii) all other material
terms of the Proposed Transaction, along with a true and correct copy of the
written offer from the third party (the "Sale Document").

       Dal-Tile shall have a period of fifteen (15) days following receipt of
the First Refusal Notice (the "Notice Period") to elect to exercise its right to
purchase Wold's shares or the assets

                                       16

<PAGE>

being sold upon the same terms and conditions as are set forth in the Sale
Document by delivering written notice of such election (the "Exercise Notice")
to Wold and simultaneously depositing with Wold earnest money in the amount of
$100,000, which shall be applied to the purchase price. In the event that
Dal-Tile exercises its right of first refusal pursuant to this section, then
within ten (10) days after Dal-Tile's election, Dal-Tile and Wold shall enter
into a purchase and sale agreement upon the terms set forth in the Sale Document
(except as otherwise provided herein). Any study or diligence period under such
purchase and sale agreement shall be limited to thirty (30) days from the date
of the Exercise Notice in order to allow Dal-Tile to update title and conduct
diligence related to matters such as environmental compliance; provided that
Dal-Tile shall not require more marketable title than that conveyed to Wold as
part of the Purchase Agreement. Nor shall Dal-Tile require any more specific or
broader representations, warranties or indemnification concerning environmental
mattes than Wold required of Dal-Tile in the Purchase Agreement.

       If Dal-Tile exercises its right of first refusal under this Supply
Agreement, the purchase and sale agreement shall provide for a closing date of
not more than sixty (60) days following the date of the Exercise Notice.  If
Dal-Tile either fails to timely exercise its right of first refusal or does not
timely conclude the sale with Wold, Wold shall be free to conclude the Proposed
Transaction with the third party purchaser who entered into the Sale Document
(but not to any other party or person) on substantially the same material terms
and conditions as are contained in the Sale Document, provided such Proposed
Transaction is concluded within 180 days following the expiration of the Notice
Period and if concluded, Dal-Tile shall be deemed to have consented to the
assignment of this Supply Agreement to such third-party purchaser.  In the case
of assignment, the transferee shall assume all of the transferor's obligations
under this Supply Agreement and Dal-Tile's right of first refusal under this
section shall be continuing and remain

                                       17

<PAGE>

in effect as to each Proposed Transaction arising during the Term of this Supply
Agreement. If a Proposed Transaction is not consummated within such 180-day
period on substantially the same material terms and conditions as are contained
in the Sale Document, Dal-Tile's rights pursuant to the right of first refusal
shall be revived. For purposes of this Section 1l(c), a bona fide third party
offer for Wold to sell, indirectly or directly, controlling interest in Wold
shall be deemed a "Proposed Transaction" hereunder and shall trigger Dal-Tile's
right of first refusal under this Section 1l(c).

       12.    MISCELLANEOUS.

       (a)    SEVERABLE CONDITIONS.       If any provision of this Supply
Agreement is held to be void, invalid, or unenforceable, such provision will
be construed as severable and will not in any way affect or render void,
invalid, or unenforceable any other provision of this Supply Agreement, and
this Supply Agreement will be carried out as if such void, invalid, or
unenforceable provision was not a part of this Supply Agreement.

       (b)    WAIVER AND MODIFICATION.    The terms of this Supply Agreement may
not be amended, altered, waived, modified, or discharged except by an express
declaration in writing on behalf of the parties by duly authorized officers and
referring specifically to this Supply Agreement, and no separate oral or other
written agreement which may be made between any of the parties' employees will
in any way modify this Supply Agreement. Furthermore, any waiver of the
requirements of this Section 12(b) likewise must be explicit and in a writing
signed by a duly authorized representative of each party.

       (c)    SURVIVAL.     All of party's rights and privileges provided under
this Supply Agreement, to the extent they are fairly attributable to events or
conditions occurring or existing on or prior to the expiration or termination of
this Supply Agreement, will survive the expiration or termination and be
enforceable by the party and its successors and assigns.

       (d)    GOVERNING LAW.       THIS SUPPLY AGREEMENT SHALL BE GOVERNED BY
 AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE

                                       18

<PAGE>

STATE OF TEXAS, EXCLUDING PROVISONS OF SUCH LAW REFERRING SUCH MATTERS TO THE
LAW OF ANOTHER JURISDICTION.

       (e)    BINDING ARBITRATION.

              (i)    GENERAL.      Any dispute between Seller and Purchaser as
                     to the interpretation of any provision of this Purchase and
                     Sale Agreement or the rights and obligations of any party
                     hereunder shall be resolved through binding arbitration as
                     hereinafter provided in Dallas, Texas. The parties agree to
                     seek amicable resolution before submission to arbitration.

              (ii)   SELECTION OF ARBITRATOR.    If arbitration is required to
                     resolve a dispute between Seller and Purchaser, either
                     Seller or Purchaser will notify the Dallas office of the
                     American Arbitration Association ("AAA") and request AAA to
                     select one person to act as the arbitrator for resolution
                     of this dispute.

              (iii)  RULES OF ARBITRATION.       The arbitrator selected
                     pursuant to Section 12(e)(ii) will establish the rules for
                     proceeding with the arbitration of the dispute, which will
                     be binding upon all parties to the arbitration proceeding.
                     The arbitrator may use the rules of AAA for commercial
                     arbitration but is encouraged to adopt the rules the
                     arbitrator deems appropriate to accomplish the arbitration
                     in the quickest and least expensive manner possible.
                     Accordingly, the arbitrator may (1) dispense with any
                     formal rules of evidence and allow hearsay testimony so as
                     to limit the number of witnesses required, (2) accept
                     evidence of property values without formal appraisals and
                     upon such information provided by Seller and Purchaser or
                     other persons and otherwise minimize discovery procedures
                     as the arbitrator deems appropriate, (3) act upon his or
                     her understanding or interpretation of the law on any issue
                     without the obligation to research the issue or accept or
                     act upon briefs of the issue

                                       19

<PAGE>

                     prepared by any party, (4) limit the time for presentation
                     of any party's case as well as the amount of information or
                     number of witnesses to be presented in connection with any
                     hearing, and (5) impose any other rules that the arbitrator
                     believes appropriate to effect a resolution of the dispute
                     as quickly and inexpensively as possible. In any event, the
                     arbitrator (A) shall permit each side no more than two
                     depositions (including any deposition of experts), which
                     depositions may not exceed four hours each, one set of ten
                     interrogatories (inclusive of sub-parts) and one set of
                     five document requests (inclusive of sub-parts), (B) shall
                     not permit any requests for admissions, (C) shall limit the
                     hearing, if any, to two days, and (D) shall render his or
                     her decision within 60 days of the filing of the
                     arbitration.

              (iv)   COSTS OF ARBITRATION. The arbitrator will have the
                     exclusive authority to determine and award costs of
                     arbitration and the costs incurred by any party for its
                     attorneys, advisors and consultants.

              (v)    AWARD OF ARBITRATOR. Any award made by the arbitrator shall
                     be binding on Seller, Purchaser and all parties to the
                     arbitration and shall be enforceable to the fullest extent
                     of the law.

              (vi)   GOVERNING LAW; ACTUAL DAMAGES; ETC. In reaching any
                     determination or award, the arbitrator will apply the laws
                     of the State of Texas, excluding provisions of such law
                     referring such matters to the law of another jurisdiction.
                     The arbitrator's award will be limited to actual damages
                     and will not include punitive or exemplary damages. Nothing
                     contained in this Purchase and Sale Agreement will be
                     deemed to give the arbitrator any authority, power or right
                     to alter, change, amend, modify, add to or subtract from
                     any of the provisions of this Purchase and Sale Agreement.
                     All privileges under state and federal law, including,
                     without limitation,

                                       20

<PAGE>

                     attorney-client, work product and party communication
                     privileges, shall be preserved and protected. All experts
                     engaged by a party must be disclosed to the other party
                     within 14 days after the date of notice and demand for
                     arbitration is given.

       (f)    DESCRIPTIVE HEADINGS.       The descriptive headings of the
Sections in this Supply Agreement are inserted for convenience only and do not
constitute a part of this Supply Agreement.

       (g)    COUNTERPARTS. This Supply Agreement may be executed in two
original counterparts, each of which will be deemed an original, but all of
which together will constitute one and the same instrument representing the
agreement of the parties.

       (h)    ENTIRE AGREEMENT; EXHIBITS. This Supply Agreement, together with
the Purchase and Sales Agreement and Confidentiality Agreement, supersede all
former agreements, understandings, communication, and negotiations between the
parties relating to any and all of the matters for which provision is made under
this Supply Agreement.  The following Exhibits are incorporated by reference;
Exhibit A - Product; Exhibit B - Price; and Exhibit C - Premises.

       (i)    INDEPENDENT CONTRACTORS. The parties hereto agree that each is
acting as an independent contractor and not in an employer-employee or agency
relationship with one another.

       (j)    ATTORNEYS' FEES.     In the event of arbitration between the
parties in connection with this Supply Agreement, the prevailing party shall be
entitled to recover its reasonable attorneys' fees and costs from the non-
prevailing party.

       (k)    MEMORANDUM OF AGREEMENT.    Concurrently with the full execution
and delivery of this Supply Agreement, the parties hereto shall execute,
acknowledge, and record in the Real Property Records of Hudspeth County, Texas,
a memorandum of this Supply Agreement containing the terms of Dal-Tile's
purchase option under section 4(c), Dal-Tile's right of first refusal under
section 11(c), Dal-Tile's right to acquire portions of the Premises

                                       21

<PAGE>

under section 12(l), and such other terms of this Supply Agreement as Dal-Tile
shall deem necessary to give third parties notice of Dal-Tile's purchase rights
and other remedies hereunder.

       (l) MAINTENANCE OF AGREEMENTS; ENCUMBRANCES.  Except as otherwise
provided in this Section, Wold (i) shall timely comply with the terms and
conditions of, and timely pay and perform all obligations of the lessee
under, all mineral leases, easements or surface use agreements that are part
of the Premises as assumed by Wold under the Purchase Agreement, (ii) shall
maintain all such mineral leases, easements or surface use agreements that
are part of the Premises as assumed by Wold under the Purchase Agreement in
full force and effect, (iii) without the prior written consent of Dal-Tile,
shall not modify or amend such mineral leases that would adversely affect the
interests of Dal-Tile under this Supply Agreement or increase the obligations
of the lessee or owner of the Premises, and (iv) shall not encumber the
Premises or grant any person or entity any right, interest or estate in the
Premises or any part thereof; provided, that Wold may grant a deed of trust
and security agreement in favor of its senior lender as long as the lien
thereof and the rights of the secured party thereunder are subordinate to
Dal-Tile's purchase option under section 4(d) (ii), Dal-Tile's right of first
refusal under section 11 (c), and Dal-Tile's right to acquire portions of the
Premises under this section 12(l), and further provided that all funds due
under such sections shall be paid jointly to Wold and the senior lender, if
any, provided Dal-Tile has received written notice from Wold of the name and
address of such senior lender. If Wold determines that the continued
maintenance of a lease, easement or surface use agreement is not economically
feasible, Wold shall provide notice to Dal-Tile of its determination.
Dal-Tile shall have the right to have assigned to it such lease, easement or
surface use agreement for which notice has been given. Dal-Tile's election to
require assignment shall be made by notice to Wold within thirty (30) days
after Wold provides notice of its determination and Wold shall provide
executed documents assigning or conveying its interests to Dal-Tile (with the
same warranties of title and subject to the same exceptions to title as were
contained in the documents under which Dal-Tile conveyed such interests to
Wold pursuant to the Purchase Agreement) within thirty (30) days of such
notice. Until executed

                                       22

<PAGE>

conveyance documents are delivered by Wold to Dal-Tile, Wold shall maintain and
keep the lease, easement or surface use agreement in full force and effect.
After Wold delivers appropriate conveyance documents to Dal-Tile or if Dal-Tile
does not give notification to Wold of Dal-Tile's election to have the lease,
easement or surface use agreement re-assigned to Dal-Tile, Wold shall have no
further duty to maintain such leases or timely pay or perform the obligations
under such lease, easement or surface use agreement under this section 12(l);
provided, that nothing in this section 12(l) shall release Wold from (i) Wold's
obligations to supply Product to Dal-Tile and to comply with all other terms and
provisions of this Supply Agreement, or (ii) Wold's obligations under any
document evidencing the conveyance or assignment of such lease, easement or
surface use agreement by Dal-Tile to Wold pursuant to the Purchase Agreement
(provided, that nothing is this clause (ii) is intended to prevent Wold from
terminating easements or surface use agreements pursuant to their terms).

       (m)    DAL-TILE'S TERMINATION OPTION.     Dal-Tile shall have the option
to terminate this Supply Agreement at any time upon one hundred eighty (180)
days prior written notice to Wold, provided that the effective termination date
(the "Early Termination Date") shall not be earlier than January 1, 2005.  If
Dal-Tile exercises its right to terminate this Supply Agreement under this
section 12(m), Dal-Tile shall pay Wold the Termination Fee (as defined below) on
the Early Termination Date, and the Term shall end on the Early Termination Date
(without automatic renewal under section 2).  As used in this Section, the
"Termination Fee" shall mean:

       (i)    Three million dollars ($3,000,000.00) if the Early Termination
              Date occurs before January 1, 2006;

       (ii)   Two Million Five Hundred Thousand Dollars ($2,500,000.00) if the
              Early Termination Date occurs on or after January 1, 2006 but
              before January 1, 2007;

       (iii)  Two Million Dollars ($2,000,000.00) if the Early Termination Date
              occurs on or after January 1, 2007 but on or before December 31,
              2009; or

       (iv)   No dollars ($0.00) after December 31, 2009.

                                       23

<PAGE>

       (n)    INDEMNIFICATION PROCEDURE.  Any claim for indemnity under any
provision in this Supply Agreement shall be made by written notice from the
party seeking indemnification (the "Indemnified Party") to the party required to
provide same (the "Indemnifying Party"), together with a written description of
any third-party claim against the Indemnified Party, stating the nature and
basis of such claim and, if ascertainable, the amount thereof.  The Indemnifying
Party shall have a period of thirty (30) days after receipt of such notice
within which to respond thereto or, in the case of a third-party claim which
requires a shorter time for response, then within such shorter period as
specified by the Indemnified Party in such notice (the "Notice Period").  If the
Indemnifying Party denies liability or fails to respond to the notice within the
Notice Period, the Indemnified Party may defend or compromise the claim as it
deems appropriate without prejudice to any of the Indemnified Party's rights
hereunder, with no further obligation to inform the Indemnifying Party of the
status of the claim and no right of the Indemnifying Party to approve or
disapprove any actions taken in connection therewith by the Indemnified Party.
If the Indemnifying Party accepts liability, it shall so notify the Indemnified
Party within the Notice Period and elect either (a) to undertake the defense or
compromise of such third-party claim with counsel selected by the Indemnifying
Party and reasonably approved by the Indemnified Party or (b) to instruct the
Indemnified Party to defend or compromise such claim.  If the Indemnifying Party
undertakes the defense or compromise of such third-party claim, the Indemnified
Party shall be entitled, at its own expense, to participate in such defense.  No
compromise or settlement of any third-party claim shall be made without
reasonable notice to the Indemnified Party and, unless such compromise or
settlement includes a general release of the Indemnified Party in respect of the
matter with no admission of liability on the part of the Indemnified Party and
no constraints on the future conduct of its business, without the prior written
approval of the Indemnified Party.

                                       24

<PAGE>

       (o)    NO THIRD-PARTY BENEFICIARIES.  This Supply Agreement is solely for
the benefit of the parties hereto, their respective successors and assigns
permitted under this Supply Agreement, and no provisions of this Supply
Agreement shall be deemed to confer upon any other person or entity (including,
without limitation, any subsequent owner of the Premises) any remedy, claim,
liability, reimbursement, cause of action or other right.

       IN WITNESS WHEREOF, this Supply Agreement has been duly executed by the
parties by their duly authorized respective officers as of the date noted above.

DAL-TILE CORPORATION

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

WOLD TALC COMPANY, INC.

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

                                       25

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