Document:

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

Exhibit 10.3

FIVE YEAR CREDIT AGREEMENT

dated as of

September 30, 2003

among

MOHAWK INDUSTRIES, INC.,

SUNTRUST BANK

and

WACHOVIA BANK, NATIONAL ASSOCIATION

 

	ARTICLE
    I........... DEFINITIONS	 1
	SECTION
    1.01.......... Definitions  	 1
	SECTION
    1.02.......... Accounting Terms and Determinations	 14
	SECTION
    1.03.......... References  	 14
	SECTION
    1.04.......... Use of Defined Terms	 14
	SECTION
    1.05.......... Terminology	 14
	ARTICLE
    II.......... THE CREDITS	 14
	SECTION
    2.01.......... Commitments to Lend   	 14
	SECTION
    2.02.......... Method of Borrowing Syndicated Loans and Swing Loans	 16
	SECTION
    2.03.......... Continuation and Conversion Elections	 19
	SECTION
    2.04.......... Notes	 19
	SECTION
    2.05.......... Maturity of Loans	 19
	SECTION
    2.06.......... Interest Rates	 19
	SECTION
    2.07.......... Fees	 22
	SECTION
    2.08.......... Optional Termination or Reduction of Commitments	 22
	SECTION
    2.09.......... Mandatory Reduction and Termination of Commitments	 22
	SECTION
    2.10.......... Optional Prepayments	 23
	SECTION
    2.11.......... Mandatory Prepayments	 23
	SECTION
    2.12.......... General Provisions as to Payments	 23
	SECTION
    2.13.......... Computation of Interest and Fees	 23
	SECTION
    2.14.......... Letters of
    Credit.............................................................................   
    	 23
	SECTION
    2.15.......... Guarantee of Reimbursement
    Obligations........................................   	 28
	SECTION
    2.16.......... Amendments Required as a Result of Permanent
    Facility.................   	 29
	ARTICLE
    III........ CONDITIONS TO BORROWINGS AND ISSUANCE OF NEW LETTERS OF CREDIT.	 30
	SECTION
    3.01.......... Conditions to Effective Date	 30
	SECTION
    3.02.......... Conditions to All Borrowings and Issuance of New Letters of
    Credit   	
    31
	ARTICLE
    IV........ REPRESENTATIONS AND WARRANTIES	 32
	SECTION
    4.01.......... Corporate Existence and Power	 32
	SECTION
    4.02.......... Corporate and Governmental Authorization; No Contravention	 32

	SECTION
    4.03.......... Binding Effect	 33
	SECTION
    4.04.......... Financial Information  	 33
	SECTION
    4.05.......... No Litigation	 33
	SECTION 4.06.......... Compliance with ERISA	 33
	SECTION
    4.07.......... Taxes	 33
	SECTION
    4.08.......... Subsidiaries	 34
	SECTION
    4.09.......... Not an Investment Company	 34
	SECTION
    4.10.......... Ownership of Property; Liens	 34
	SECTION
    4.11.......... No Default	 34
	SECTION
    4.12.......... Full Disclosure	 34
	SECTION
    4.13.......... Environmental Matters.	 34
	SECTION
    4.14.......... Capital Stock	 35
	SECTION
    4.15.......... Margin Stock	 35
	SECTION
    4.16.......... Insolvency	 35
	ARTICLE
    V......... COVENANTS	 35
	SECTION
    5.01.......... Information	 35
	SECTION
    5.02.......... Inspection of Property, Books and Records	 37
	SECTION
    5.03.......... Debt to Capitalization Ratio	 37
	SECTION 5.04.......... Debt to EBITDA
    Ratio	 37
	SECTION
    5.05.......... Restricted Payments	 37
	SECTION
    5.06.......... Investments	 38
	SECTION
    5.07.......... Negative Pledge	 38
	SECTION
    5.08.......... Maintenance of Existence	 39
	SECTION
    5.09.......... Dissolution	 39
	SECTION
    5.10.......... Consolidations, Mergers and Sales of Assets	 40
	SECTION
    5.11.......... Use of Proceeds	 40
	SECTION
    5.12.......... Compliance with Laws; Payment of Taxes  	 40
	SECTION
    5.13.......... Insurance	 40
	SECTION
    5.14.......... Change in Fiscal Year	 40
	SECTION
    5.15.......... Maintenance of Property   	 40
	SECTION
    5.16.......... Environmental Notices	 41

	SECTION
    5.17.......... Environmental Matters  	 41
	SECTION
    5.18.......... Environmental Release	 41
	SECTION
    5.19.......... Debt of Subsidiaries	 41
	ARTICLE
    VI........ DEFAULTS	 41
	SECTION
    6.01.......... Events of Default  	 41
	SECTION
    6.02.......... Notice of Default	 44
	ARTICLE
    VII....... THE AGENT	 44
	SECTION
    7.01.......... Appointment; Powers and Immunities	 44
	SECTION
    7.02.......... Reliance by Administrative Agent	 45
	SECTION
    7.03.......... Defaults	 45
	SECTION
    7.04.......... Rights of Administrative Agent and its Affiliates as a Bank	 45
	SECTION
    7.05.......... Indemnification	 46
	SECTION
    7.06.......... Consequential Damages	 46
	SECTION
    7.07.......... Payee of Note Treated as Owner   	 46
	SECTION
    7.08.......... Nonreliance on Administrative Agent and Other Banks   
    	 46
	SECTION
    7.09.......... Failure to Act	 47
	SECTION
    7.10.......... Resignation or Removal of Administrative Agent	 47
	ARTICLE
    VIII...... CHANGE IN CIRCUMSTANCES; COMPENSATION	 48
	SECTION
    8.01.......... Basis for Determining Interest Rate Inadequate or Unfair	 48
	SECTION
    8.02.......... Illegality	 49
	SECTION
    8.03.......... Increased Cost and Reduced Return	 49
	SECTION
    8.04.......... Base Rate Loans Substituted for Euro‐Dollar Loans  
    	 50
	SECTION
    8.05.......... Compensation  	 50
	SECTION
    8.06.......... Replacement of Banks	 51
	ARTICLE
    IX........ MISCELLANEOUS	 51
	SECTION
    9.01.......... Notices	 52
	SECTION
    9.02.......... No Waivers	 52
	SECTION
    9.03.......... Expenses; Documentary Taxes  	 52
	SECTION
    9.04.......... Indemnification	 52
	SECTION
    9.05.......... Sharing of Setoffs	 53
	SECTION
    9.06.......... Amendments and Waivers   	 53

	SECTION
    9.07.......... No Margin Stock Collateral	 54
	SECTION
    9.08.......... Successors and Assigns	 54
	SECTION
    9.09.......... Confidentiality	 56
	SECTION
    9.10.......... Representation by Banks	 56
	SECTION
    9.11.......... Obligations Several	 56
	SECTION
    9.12.......... Georgia Law	 56
	SECTION
    9.13.......... Interpretation	 56
	SECTION
    9.14.......... WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION	 57
	SECTION
    9.15.......... Counterparts	 57

EXHIBIT A-1              Form of Note
EXHIBIT A-2              Form of Swing Loan Note

EXHIBIT B                  Form of Opinion of Counsel for the Borrower

EXHIBIT C                 Form of Assignment and Acceptance

EXHIBIT D-1              Form of Notice of Borrowing

EXHIBIT D-2              Form of Notice of Continuation or
Conversion

EXHIBIT E                  Form of Compliance Certificate

EXHIBIT F                  Form of New Letter of Credit Notice

Schedule 1.01              Existing Letters of Credit

Schedule 4.05              Litigation

Schedule 4.08              Subsidiaries

CREDIT AGREEMENT

THIS CREDIT AGREEMENT dated as of September 30, 2003,
among MOHAWK INDUSTRIES, INC., SUNTRUST BANK, as Co-Lead Arranger and Agent,
WACHOVIA BANK, NATIONAL ASSOCIATION, as Co-Lead Arranger and Administrative
Agent, and the other Banks from time to time party hereto.

ARTICLE
I

DEFINITIONS

SECTION
1.01.  Definitions.  The terms as defined in this Section 1.01
shall, for all purposes of this Agreement and any amendment hereto (except as
herein otherwise expressly provided or unless the context otherwise requires),
have the meanings set forth herein:

"364 Day Revolving Credit Facility" means that
364 Day Credit Agreement dated as of even date herewith among Mohawk
Industries, Inc., SunTrust Bank, Wachovia Bank, National Association, and the
other lenders party thereto from time to time.

"Additional Issuer" means one Bank (but no more
than one Bank), in addition to the Administrative Agent, designated by the Borrower
by written notice to the Administrative Agent as an additional issuer of New
Letters of Credit.  

"Adjusted London Interbank Offered Rate" has the
meaning set forth in Section 2.06(c).

"Administrative Agent" means Wachovia Bank,
National Association, a national banking association organized under the laws
of the United States of America, in its capacity as agent for the Banks
hereunder, and its successors and permitted assigns in such capacity.

"Affected Bank" has the meaning set forth in
Section 8.06.

"Affiliate" means (i) any Person that directly,
or indirectly through one or more intermediaries, controls the Borrower (a
"Controlling Person"), (ii) any Person (other than the Borrower or a
Subsidiary) which is controlled by or is under common control with a
Controlling Person, or (iii) any Person (other than a Subsidiary) of which the
Borrower owns, directly or indirectly, 20% or more of the common stock or
equivalent equity interests.  As used
herein, the term "control" means possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of
a Person, whether through the ownership of voting securities, by contract or
otherwise.

"Agreement" means this Credit Agreement,
together with all amendments and modifications hereto.

1

"Aladdin" means Aladdin Manufacturing
Corporation, a Delaware corporation.

"Amendment Events" has the meaning set forth in
Section 2.16.

"Amortization" means for any period the sum of
all amortization expenses of the Borrower and its Consolidated Subsidiaries for
such period, as determined in accordance with GAAP.

"Applicant" means each Person which, as the
initial applicant or a Person that has assumed, pursuant to a written agreement
in a form reasonably acceptable to the Required Banks, the obligations of an
applicant, is liable for the reimbursement obligations with respect to a Letter
of Credit.

"Applicable Margin" has the meaning set forth in
Section 2.06(a).

"Approved Investment" means an Investment in
compliance with the Investment Guidelines.

"Asset Securitization" means the sale of
accounts receivable and related assets of a Person in connection with a bona
fide asset securitization program.

"Assignee" has the meaning set forth in Section
9.08(c).

"Assignment and Acceptance" means an Assignment
and Acceptance executed in accordance with Section 8.08(c) in the form of Exhibit C.

"Authority" has the meaning set forth in Section
8.02.

"Banks" collectively means SunTrust, Wachovia,
and the other banks from time to time party hereto.

"Base Rate" means that interest rate as
denominated and publicly announced by the Administrative Agent from time to
time as its "prime rate".  The
Base Rate is but one of several interest rate bases used by the Administrative
Agent. The Administrative Agent and each of the Banks lends at interest rates
above and below the Base Rate.

"Base Rate Loan" means a Loan to be made as a
Base Rate Loan pursuant to the applicable Notice of Borrowing, Section 2.02(f),
or Article VIII, as applicable.

"Borrower" means Mohawk Industries, Inc., a
Delaware corporation, and its successors and permitted assigns.

"Borrowing" means a borrowing hereunder
consisting of Loans made to the Borrower at the same time by the Banks pursuant
to Article II.  A Borrowing is a
"Base Rate Borrowing" if such Loans are Base Rate Loans or a
"Euro‐Dollar Borrowing" if such Loans are Euro‐Dollar
Loans, or a "Swing Loan Borrowing" if such Loan is made pursuant to
Section 2.01(b).

2

"Business" has the meaning set forth in Section
2.16.

"Capital Stock" means any nonredeemable capital
stock of the Borrower or any Consolidated Subsidiary (to the extent issued to a
Person other than the Borrower), whether common or preferred.

"Catoosa Co. IRB" means that issuance of certain
bonds by The Development Authority of Catoosa County, Georgia, pursuant to the
terms and conditions set forth in that certain Indenture of Trust dated as of
November 1, 1991.

"CERCLA" means the Comprehensive Environmental
Response Compensation and Liability Act, 42 U.S.C. § 9601 et. seq. and its
implementing regulations and amendments.

"CERCLIS" means the Comprehensive Environmental
Response Compensation and Liability Inventory System established pursuant to
CERCLA.

"Change of Law" shall have the meaning set forth
in Section 8.02.

"Closing Date" means September 30, 2003.

"Code" means the Internal Revenue Code of 1986,
as amended, or any successor Federal tax code.

"Commitment" means, with respect to each Bank,
the amount set forth opposite the name of such Bank in the signature pages
hereof as its Commitment, or in the Assignment and Acceptance by which such
Bank became a party hereto, as such amount may be reduced from time to time
pursuant to Sections 2.08 and 2.09.

"Compliance Certificate" has the meaning set
forth in Section 5.01(c).

"Consolidated Debt" means at any date the Debt
of the Borrower and its Consolidated Subsidiaries, determined on a consolidated
basis as of such date.

"Consolidated Interest Expense" for any period
means interest, whether expensed or capitalized, in respect of Debt of the
Borrower or any of its Consolidated Subsidiaries outstanding during such
period.

"Consolidated Net Income" means, for any period, the Net Income of the Borrower and its
Consolidated Subsidiaries for such period as determined on a consolidated basis
in accordance with GAAP, but excluding from the determination thereof (without
duplication) (a) any non-cash extraordinary or non-recurring gains or losses,
(b) non-cash losses or gains from the proposed or actual disposition of
material assets not exceeding $20,000,000 in any fiscal year (c) non-cash
goodwill and intangible asset write-downs and restructuring charges (but
deducting from the determination of Consolidated Net Income for any period,
cash payments made during such period in respect of any goodwill and intangible
asset write-downs or restructuring charges recorded after the Closing Date),
(d) non-cash charges resulting from the vesting or exercise of stock options or
stock appreciation rights granted to management of the Borrower, (e) non-cash
gains or losses under the Statement of Financial Accounting Standards number
133 and its amendments and (f) any equity interests of the Borrower or
any Subsidiary in the unremitted earnings of any Person that is not a
Subsidiary.

3

"Consolidated
Net Worth" means at any time Stockholder's Equity but excluding from the
determination thereof (without duplication) the effect of (a) any foreign
currency translation adjustments, (b) any extraordinary or non-recurring,
non-cash losses or gains, (c) non-cash losses or gains under the Statement of
Financial Accounting Standards number 133 and its amendments, (d) non-cash
intangible and material write-downs of assets (but deducting from the
determination of Consolidated Net Worth for any period, cash payments made during
such period in respect of any write-downs recorded after the Closing Date) not
exceeding $20,000,000 in any Fiscal Year and (e) non-cash charges resulting
from the vesting or exercise of stock options or stock appreciation rights
granted to management of the Borrower.

"Consolidated Subsidiary" means at any date any
Subsidiary or other entity the accounts of which, in accordance with GAAP,
would be consolidated with those of the Borrower in its consolidated financial
statements as of such date.

"Consolidated Total Assets" means, at any time,
without duplication, (x) the total assets of the Borrower and its Consolidated
Subsidiaries, determined on a consolidated basis, as set forth or reflected on
the most recent consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries, prepared in accordance with GAAP, plus (y) the accounts
receivable balance reported as of the last day of the Fiscal Quarter most
recently ended by the Borrower or a Subsidiary with respect to an Asset
Securitization.

"Consolidated Total Capital" means, at any time,
the sum of the following as of such time (i) Consolidated Net Worth, and (ii)
Consolidated Debt.

"Controlled Group" means all members of a
controlled group of corporations and all trades or businesses (whether or not
incorporated) under common control which, together with the Borrower, are
treated as a single employer under Section 414 of the Code.

"Debt" of any Person means at any date, without
duplication, all of the following as of such date (i) all obligations of such
Person for borrowed money, (ii) all obligations of such Person evidenced by
bonds, debentures, notes or other similar instruments, (iii) all obligations of
such Person to pay the deferred purchase price of property or services, except
trade accounts payable arising in the ordinary course of business, (iv) all
obligations of such Person as lessee under capital leases, (v) all obligations
of such Person to reimburse any bank or other Person in respect of amounts
payable under a banker's acceptance, (vi) all Redeemable Preferred Stock of
such Person (in the event such Person is a corporation), (vii) all obligations
of such Person to reimburse any bank or other Person in respect of amounts paid
under a letter of credit or similar instrument (provided, however, solely with
respect to commercial letters of credit, such amounts shall be included
hereunder only to the extent that they exceed $1,000,000 in the aggregate),
(viii) all Debt of others secured by a Lien on any asset of such Person,
whether or not such Debt is assumed by such Person, (ix) all obligations of
such Person with respect to interest rate protection agreements, foreign
currency exchange agreements or other hedging arrangements (valued as the
termination value thereof computed in accordance with a method approved by the
International Swap Dealers Association and agreed to by such Person in the
applicable hedging agreement, if any) (provided, however, solely with respect
to hedging arrangements entered into in the ordinary course of business for
natural gas or any other fuels used for the same purposes, such obligations
shall be included hereunder only to the extent that they exceed $50,000,000 in
the aggregate), (x) all Debt of others Guaranteed by such Person, and (xi) the
total accounts receivable reported as sold during any Fiscal Quarter as of the
last day of the Fiscal Quarter most recently ended by the Borrower or a
Subsidiary with respect to an Asset Securitization. For all purposes of this
Agreement, the amount of a Person's Debt under a loan or lease agreement
between such Person and a governmental agency that has issued industrial
development bonds or similar instruments, the repayment of which is secured by
the payment obligations of such Person under such loan or lease agreement, shall
be equal to the aggregate principal amount of such bonds or instruments
outstanding at the time of determination less the amount of proceeds of such
bonds or instruments which at such time are on deposit with a trustee or other
fiduciary in a "construction" fund, or other similar fund which would
be available to such trustee or other fiduciary to repay the bonds or other
instruments if then due and payable.

4

"Debt to Capitalization Ratio" means the ratio
of Consolidated Debt to Consolidated Total Capital.

"Default" means any condition or event which
constitutes an Event of Default or which with the giving of notice or lapse of
time or both would, unless cured or waived, become an Event of Default.

"Default Rate" means, with respect to any Loan,
on any day, the sum of 2% plus the then highest interest rate (including the
Applicable Margin) which may be applicable to any Loans hereunder, including,
without limitation, under Section 8.06, (irrespective of whether any such class
of Loans are actually outstanding hereunder).

"Depreciation" means for any period the sum of
all depreciation expenses of the Borrower and its Consolidated Subsidiaries for
such period, as determined in accordance with GAAP.

"Dividends" means for any period the sum of all
dividends paid or declared during such period in respect of any Capital Stock
and Redeemable Preferred Stock (other than dividends paid or payable in the
form of additional Capital Stock).

"Dollars" or "$" means dollars in
lawful currency of the United States of America.

"Domestic Business Day" means any day except a
Saturday, Sunday or other day on which commercial banks in Georgia are
authorized by law to close.

"Effective Date" means September 30, 2003.

"Environmental Authority" means any foreign,
federal, state, local or regional government that exercises any form of
jurisdiction or authority under any Environmental Requirement.

"Environmental Judgments and Orders" means all
judgments, decrees or orders arising from or in any way associated with any
Environmental Requirements, whether or not entered upon consent or written
agreements with an Environmental Authority or other entity arising from or in
any way associated with any Environmental Requirement, whether or not
incorporated in a judgment, decree or order.

5

"Environmental Liabilities" means any
liabilities, whether pending or, to the knowledge of the Borrower or any
Subsidiary threatened, arising from and in any way associated with any
Environmental Requirements and  which
would have or create a reasonable possibility of causing a Material Adverse
Effect.

"Environmental Notices" means notice from any
Environmental Authority or by any other person or entity, of possible or
alleged noncompliance with or liability under any Environmental Requirement,
including without limitation any complaints, citations, demands or requests
from any Environmental Authority or from any other person or entity for
correction of any, violation of any Environmental Requirement or any
investigations concerning any violation of any Environmental Requirement.

"Environmental Proceedings" means any judicial
or administrative proceedings arising from or in any way associated with any
Environmental Requirement.

"Environmental Releases" means releases as
defined in CERCLA or under any applicable state or local environmental law or
regulation.

"Environmental Requirements" means any legal
requirement relating to health, safety or the environment and applicable to any
of the Borrower, any Subsidiary, or the Properties, including but not limited
to any such requirement under CERCLA or similar state legislation and all
federal, state and local laws, ordinances, regulations, orders, writs, decrees
and common law.

"ERISA" means the Employee Retirement Income
Security Act of 1974, as amended from time to time, or any successor  law. 
Any reference to any provision of ERISA shall also be deemed to be a
reference to any successor provision or provisions thereof.

"Euro‐Dollar Business Day" means any
Domestic Business Day on which dealings in Dollar deposits are carried out in
the London interbank market.

"Euro‐Dollar Loan" means a Loan to be made
as a Euro‐Dollar Loan pursuant to the applicable Notice of Borrowing.

"Euro‐Dollar Reserve Percentage" has the
meaning set forth in Section 2.06(c).

"Event of Default" has the meaning set forth in
Section 6.01.

"Existing Letters of Credit" means the letters
of credit set forth on Schedule 1.01

"Existing Letter of Credit Issuer" means
Wachovia.

"Federal Funds Rate" means, for any day, the
rate per annum (rounded upward, if necessary, to the next higher 1/100th of 1%)
equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank of New York
on the Business Day next succeeding such day, provided that (i) if the day for
which such rate is to be determined is not a Business Day, the Federal Funds
Rate for such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (ii) if
such rate is not so published for any day, the Federal Funds Rate for such day
shall be the average rate charged to the Administrative Agent on such day on
such transactions, as determined by the Administrative Agent.

6

"Fiscal Quarter" means any fiscal quarter of the
Borrower.

"Fiscal Year" means any fiscal year of the
Borrower.

"Foreign Subsidiary" means any Subsidiary (i)
which is organized and existing under the laws of any jurisdiction other than
any state of the United States or (ii) which has all or substantially all of
its operations in any jurisdiction outside of the United States.

"GAAP" means generally accepted accounting
principles applied on a basis consistent with those which, in accordance  with Section 1.02, are to be used in making
the calculations for purposes of determining compliance with the terms of this
Agreement.

"Galaxy" means Galaxy Carpet Mills, Inc., a
Delaware corporation, which corporation was liquidated into the Borrower as
successor thereto.

"Guarantee" by any Person means any obligation,
contingent or otherwise, of such Person directly or indirectly guaranteeing any
Debt or other obligation of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of such Person (i) to secure, purchase or pay (or advance or supply
funds for the purchase or payment of) such Debt or other obligation (whether
arising by virtue of partnership arrangements, by agreement to keep‐well,
to purchase assets, goods, securities or services, to provide collateral
security, to take‐or‐pay, or to maintain financial statement
conditions or otherwise) or (ii) entered into for the purpose of assuring in
any other manner the obligee of such Debt or other obligation of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part), provided that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business.  The term "Guarantee" used as a
verb has a corresponding meaning.

"Hazardous Materials" means (a) hazardous waste,
as defined in the Resource Conservation and Recovery Act of 1980, 42 U.S.C.
§ 6901 et seq. and its implementing regulations and amendments, or in any
applicable state or local law or regulation, (b) "hazardous
substance", "pollutant", or "contaminant" as defined
in CERCLA, or in any applicable state or local law or regulation, (c) gasoline,
or any other petroleum product or by‐product, including, crude oil or any
fraction thereof (d) toxic substances, as defined in the Toxic Substances
Control Act of 1976, or in any applicable state or local law or regulation
or  (e) insecticides, fungicides, or
rodenticides, as defined in the Federal Insecticide, Fungicide, and Rodenticide
Act of 1975, or in any applicable state or local law or regulation, as each
such Act, statute or regulation may be amended from time to time.

7

"Interest Period" means: (1) with respect to
each Euro‐Dollar Borrowing, the period commencing on the date of such
Borrowing and ending on the numerically corresponding day in the first, second,
third or sixth month thereafter, as the Borrower may elect in the applicable
Notice of Borrowing; provided that:

(a)               
any Interest Period (other than an Interest Period determined
pursuant to paragraph (c) below) which would otherwise end on a day which is
not a Euro‐Dollar Business Day shall be extended to the next succeeding
Euro‐Dollar Business Day unless such Euro‐Dollar Business Day falls
in another calendar month, in which case such Interest Period shall end on the
next preceding Euro‐Dollar Business Day;

(b)              
any Interest Period which begins on the last Euro‐Dollar
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the appropriate subsequent calendar month) shall, subject
to paragraph (c) below, end on the last Euro‐Dollar Business Day of the
appropriate subsequent calendar month; and

(c)               
any Interest Period which begins before the Termination Date
and would otherwise end after the Termination Date shall end on the Termination
Date.

(2) with respect to each Base Rate Borrowing, the period
commencing on the date of such Borrowing and ending 30 days thereafter; provided
that:

(d)              
any Interest Period (other than an Interest Period determined
pursuant to paragraph (b) below) which would otherwise end on a day which is
not a Domestic Business Day shall be extended to the next succeeding Domestic
Business Day; and

(e)               
any Interest Period which begins before the Termination Date
and would otherwise end after the Termination Date shall end on the Termination
Date.

"Investment" means any investment in any Person,
whether by means of purchase or acquisition of obligations or securities of
such Person, capital contribution to such Person, loan or advance to such
Person, making of a time deposit with such Person, Guarantee or assumption of
any obligation of such Person or otherwise.

"Investment Guidelines" means the guidelines for
investment of funds of the Borrower and the Subsidiaries as approved by the
Board of Directors of the Borrower or an authorized executive committee thereof
and in effect on the Closing Date, as modified or supplemented from time to
time with the approval of the Board of Directors of the Borrower or an
authorized executive committee.

"Issuer" means the Existing Letter of Credit
Issuer solely with respect to Existing Letters of Credit or the Administrative
Agent or the Additional Issuer with respect to New Letters of Credit; provided,
however, in the event of the resignation or removal of a Bank from its
appointment as the Administrative Agent hereunder, such Bank shall continue to
be an Issuer under this Agreement solely with respect to any Letter of Credit
issued by such Bank prior to such date of resignation or removal.

8

"LC Commitment Percentage" means, with respect
to a Bank, the ratio, expressed as a percentage, of (a) the amount of such
Bank's Commitment to (b) the aggregate amount of the Commitments of all Banks
hereunder; provided, however, that if at the time of determination the
Commitments have terminated or been reduced to zero, the "LC Commitment
Percentage" of each Bank shall be the LC Commitment Percentage of such
Bank in effect immediately prior to such termination or reduction.

"Lending Office" means, as to each Bank, its
office located at its address set forth on the signature pages hereof  (or identified on the signature pages hereof
as its Lending Office) or such other office as such Bank may hereafter
designate as its Lending Office by notice to the Borrower.

"Letter of Credit" means any Existing Letter of
Credit or any New Letter of Credit.

"Letter of Credit Fee" means a letter of credit
fee in an amount equal to the Applicable Margin for Euro-Dollar Loans
multiplied times the average daily amount of the Letter of Credit Obligations,
computed for the actual number of days elapsed on the basis of a 360 day year.

"Letter of Credit Obligations" shall mean, at
any time, the aggregate unfunded amount of the outstanding Letters of Credit.

"Letters of Credit" means each Existing Letter
of Credit and each New Letter of Credit.

"Lien" means, with respect to any asset, any
mortgage, deed to secure debt, deed of trust, lien, pledge, charge, security
interest, security title, preferential arrangement, which has the practical
effect of constituting a security interest or encumbrance, or encumbrance or
servitude of any kind in respect of such asset to secure or assure payment of a
Debt or a Guarantee, whether by consensual agreement or by operation of statute
or other law.  For the purposes of this
Agreement, the Borrower or any Subsidiary shall be deemed to own subject to a
Lien any asset which it has acquired or holds subject to the interest of a
vendor or lessor under any conditional sale agreement, capital lease or other
title retention agreement relating to such asset.

"Loan" means a Base Rate Loan or a Euro‐Dollar
Loan and "Loans" means Base Rate Loans or Euro‐Dollar Loans, or
either or each of them, as the context shall require.

"Loan Documents" means this Agreement, the
Notes, and any other document evidencing, relating to or securing the Loans,
and any other document or instrument delivered in connection with this
Agreement, the Notes or the Loans, as such documents and instruments may be
amended or modified from time to time.

"London Interbank Offered Rate" has the meaning
set forth in Section 2.06(c).

"Margin Stock" means "margin stock" as
defined in Regulations T, U or X.

9

"Material Adverse Effect" means, with respect to
any event, act, condition or occurrence of whatever nature (including any
adverse determination in any litigation, arbitration, or governmental
investigation or proceeding), whether singly or in conjunction with any other
event or events, act or acts, condition or conditions, occurrence or  occurrences, whether or not related, a
material adverse change in, or a material adverse effect upon, any of (a) the
financial condition, operations, business, properties or prospects of the
Borrower and its Consolidated Subsidiaries taken as a whole, (b) the rights and
remedies of the Banks under the Loan Documents, or the ability of the Borrower
to perform its obligations under the Loan Documents to which it is a party, as
applicable, or (c) the legality, validity or enforceability of any Loan
Document.

"Material Subsidiary" means, as of the date of
any determination thereof, any Subsidiary that either: (a) owns assets having a
book value equal to or greater than 5.0% of Consolidated Total Assets, or (b)
had Net Income for any prior period of four consecutive Fiscal Quarters equal
to or greater than 5.0% of Consolidated Net Income for the same four Fiscal
Quarter period.

"More Favorable Terms" has the meaning set forth
in Section 2.16.

"Multiemployer Plan" shall have the meaning set
forth in Section 4001(a)(3) of ERISA.

"Net Cash Position" means on any day, with
respect to the Operating Account, a sum equal to the opening available balance
in the Operating Account, plus any maturing investment principal and interest
credited to the Operating Account, minus the daily presentment of checks and
Operating Account holds, minus any floor balance which has been established to
cover bank charges, minus any maturing interest debited to the Operating
Account, in each case for such day.

"Net Income" means, as applied to any Person for
any period, the aggregate amount of net income of such Person, after taxes, for
such period, as determined in accordance with GAAP.

"New Letter(s) of Credit" means each standby
letter of credit (other than the Existing Letters of Credit) issued by the
Administrative Agent or Additional Issuer for the account of the Borrower
pursuant to Section 2.13(a); provided, however, in the event that the
Additional Issuer fails to provide the notice to the Administrative Agent
required by the first proviso contained in Section 2.14(a), any letter of
credit issued by the Additional Issuer without the giving of such notice shall
not constitute a New Letter of Credit under this Agreement.

"Notes" means the promissory notes of the
Borrower, substantially in the form of Exhibit A, evidencing the
obligation of the Borrower to repay the Loans, together with all amendments,
consolidations, modifications, renewals, and supplements thereto.

"Notice of Borrowing" has the meaning set forth
in Section 2.02.

"Notice of Continuation of Conversion" has the
meaning set forth in Section 2.03.

10

"Operating Account" means the principal
operating account of the Borrower maintained with Administrative Agent.

"Original Credit Agreement" has the meaning set
forth in the preamble to this Agreement.

"Participant" has the meaning set forth in
Section 9.08(b).

"PBGC" means the Pension Benefit Guaranty
Corporation or any entity succeeding to any or all of its functions under
ERISA.

"Performance Pricing Determination Date" has the
meaning set forth in Section 2.06(a).

"Permanent Facility" has the meaning set forth
in Section 2.16.

"Permitted Acquisition" means a non-hostile
acquisition, however structured, of all or substantially all of the assets of,
or a majority of all the issued and outstanding capital stock of, a Person in a
Permitted Line of Business.

"Permitted Line of Business" means the
manufacturing, marketing and/or distribution of commercial or home furnishings
and floor coverings and other reasonably related products and any
"vertical integration" with respect thereto.

"Person" means an individual, a corporation, a
partnership, an unincorporated association, joint venture, limited liability
company, a trust or any other entity or organization, including, but not
limited to, a government or political subdivision or an agency or
instrumentality thereof.

"Plan" means at any time an employee pension
benefit plan which is covered by Title IV of ERISA or subject to the minimum
funding standards under Section 412 of the Code and is either (i) maintained by
a member of the Controlled Group for employees of any member of the Controlled
Group or (ii) maintained pursuant to a collective bargaining agreement or any
other arrangement under which more than one employer makes contributions and to
which a member of the Controlled Group is then making or accruing an obligation
to make contributions or has within the preceding five plan years made
contributions.

"Pricing Terms" has the meaning set forth in
Section 2.16.

"Properties" means all real property owned,
leased or otherwise used or occupied by the Borrower or any Subsidiary  (including, without limitation, the
Borrower), wherever located.

"Redeemable Preferred Stock" of any Person means
any preferred stock issued by such Person which is at any time prior to the
Termination Date either (i) mandatorily redeemable (by sinking fund or similar
payments or otherwise) or (ii) redeemable at the option of the holder thereof.

11

"Regulation D" means Regulation D of the Board of
Governors of the Federal Reserve System, as in effect from time to time,
together with all official rulings and interpretations issued thereunder.

"Regulation T" means Regulation T of the Board
of Governors of the Federal Reserve System, as in effect from time to time,
together with all official rulings and interpretations issued thereunder.

"Regulation U" means Regulation U of the Board
of Governors of the Federal Reserve System, as in effect from time to time,
together with all official rulings and interpretations issued thereunder.

"Regulation X" means Regulation X of the Board
of Governors of the Federal Reserve System, as in effect from time to time,
together with all official rulings and interpretations issued thereunder.

"Reimbursement Agreement" means each
reimbursement agreement executed and delivered by an Applicant with respect to
a Letter of Credit, as amended from time to time.

"Reimbursement Obligations" means the
reimbursement or repayment obligations of the Borrower to the Issuers pursuant to
Section 2.14 with respect to Letters of Credit.

"Related Fund" means, with respect to any Bank,
a special purpose entity that purchases or participates in such Bank's loans
and for which such Bank is agent, advisor or manager for such special purpose
entity.

"Replacement Bank" has the meaning set forth in
Section 8.06.

"Required Banks" means at any time Banks having
at least 66 2/3% of the aggregate amount of the Commitments, or if  the Commitments are no longer in effect,
holding at least 66 2/3% of the aggregate outstanding principal amount of the
Notes.

"Restricted Payment" means (i) any dividend or
other distribution on any shares of the Borrower's capital stock (except
dividends payable solely in shares of its capital stock) or (ii) any payment on
account of the purchase, redemption, retirement or acquisition of (a) any
shares of the Borrower's capital stock (except shares acquired upon the
conversion thereof into other shares of its capital stock) or (b) any option,
warrant or other right to acquire shares of the Borrower's capital stock.

"Revolving Credit Facilities" means this
Agreement and the 364 Day Revolving Credit Facility.

"Stockholders' Equity" means, at any time, the
stockholders' equity of the Borrower and its Consolidated Subsidiaries, as set
forth or reflected on the most recent consolidated balance sheet of the
Borrower and its Consolidated 
Subsidiaries prepared in accordance with GAAP, but excluding
any Redeemable Preferred Stock of the Borrower or any of its Consolidated
Subsidiaries.  Shareholders' equity
generally would include, but not be limited to, (i) the par or stated value of
all outstanding Capital Stock, (ii) capital surplus, (iii) retained earnings,
and (iv) various deductions such as (A) purchases of treasury stock, (B) valuation
allowances, (C) receivables due from an employee stock ownership plan, (D)
employee stock ownership plan debt guarantees, and (E) foreign currency
translation adjustments.

12

"Subsidiary" means any corporation or other
entity of which securities or other ownership interests having ordinary voting
power to elect a majority of the board of directors or other persons performing
similar functions are at the time directly or indirectly owned by the Borrower.

"Summerville City IRB" means that issuance of
certain bonds by The Development Authority of the City of Summerville, Georgia,
pursuant to the terms and conditions set forth in that certain Trust Indenture
dated as of September 1, 1997.

"SunTrust" means SunTrust Bank, a Georgia state
banking corporation, and its successors and, as the context requires, its
permitted assigns.

"Sweep Agreement" means any agreement relating
to the Sweep Plus Service Program of the Administrative Agent or any other cash
management arrangement which the Borrower and the Administrative Agent have
executed for the purposes of effecting the borrowing and repayment of Swing
Loans.

"Swing Loan" means a Loan made by the
Administrative Agent pursuant to Section 2.01(b).

"Swing Loan Note" means the promissory note of
the Borrower, substantially in the form of Exhibit A-2, evidencing
the obligation of the Borrower to repay the Swing Loans, together with all
amendments, consolidations, modifications, renewals, and supplements thereto.

"Syndicated Borrowing" means any Base Rate Loans
or Euro-Dollar Loans made to the Borrower pursuant to the terms and conditions
set forth in Section 2.01.

"Syndicated Loans" means Base Rate Loans or
Euro-Dollar Loans made pursuant to the terms and conditions set forth in
Section 2.01(a).

"Termination Date" means whichever is applicable
of (i) September 30, 2008, (ii) the date the Commitments are terminated
pursuant to Section 6.01 following the occurrence of an Event of Default, or
(iii) the date the Borrower terminates the Commitments entirely pursuant to
Section 2.09.

"Third Parties" means all lessees, sublessees,
licensees and other users of the Properties, excluding those users of the
Properties in the ordinary course of the Borrower's business and on a temporary
basis.

"Transferee" has the meaning set forth in
Section 9.08(d).

"Unused Commitments" means at any date an amount
equal to the aggregate Commitments less the aggregate outstanding principal
amount of the Syndicated Loans, but excluding the Swing Loans and the Letter of
Credit Obligations.

13

"Wachovia" means Wachovia Bank, National
Association, a national banking association, and its successors and, as the
context requires, its permitted assigns.

"Wholly Owned Subsidiary" means any Subsidiary
all of the shares of capital stock or other ownership interests of which
(except directors' qualifying shares) are at the time directly or indirectly
owned by the Borrower or a Consolidated Subsidiary.

SECTION
1.02.  Accounting Terms and
Determinations.  Unless otherwise
specified herein, all terms of an accounting character used herein shall be
interpreted, all accounting determinations hereunder shall be made, and all
financial statements required to be delivered hereunder shall be prepared in
accordance with GAAP, applied on a basis consistent (except for changes
concurred in by the Borrower's independent public accountants or otherwise
required by a change in GAAP) with the most recent audited consolidated
financial statements of the Borrower delivered to the Banks unless with respect
to any such change concurred in by the Borrower's independent public
accountants or required by GAAP, in determining compliance with  any of the provisions of any of the Loan
Documents: (i) the Borrower shall have objected to determining such compliance
on such basis at the time of delivery of such financial statements, or (ii) the
Required Banks shall so object in writing within 30 days after the delivery of
such financial statements, in either of which events the Banks and the Borrower
shall negotiate in good faith to resolve any existing disagreements regarding
such calculations, provided, that if such disagreements are not resolved within
30 days after receipt of a notice of objection, such calculations shall be made
on a basis consistent with those used in the preparation of the latest
financial statements as to which such objection shall not have been made
(which, if objection is made in respect of the first financial statements
delivered under Section 5.01 hereof, shall mean the financial statements
referred to in Section 4.04).

SECTION
1.03.  References.  Unless otherwise indicated, references in
this Agreement to "Articles", "Exhibits",
"Schedules", "Sections" and other Subdivisions are
references to articles, exhibits, schedules, sections and other subdivisions
hereof.

SECTION
1.04.  Use of Defined Terms.  All terms defined in this Agreement shall
have the same defined meanings when used in any of the other Loan Documents,
unless otherwise defined therein or unless the context shall require otherwise.

SECTION
1.05.  Terminology.  All personal pronouns used in this
Agreement, whether used in the masculine, feminine or neuter gender, shall
include all other genders; the singular shall include the plural, and the
plural shall include the singular. 
Titles of Articles and Sections in this Agreement are for convenience
only, and neither limit nor amplify the provisions of this Agreement.

ARTICLE
II

THE CREDITS

SECTION
2.01.  Commitments to Lend.

14

(a)               
Syndicated Loans. 
Each Bank severally agrees, on the terms and conditions set forth
herein, to make Syndicated Loans to the Borrower from time to time before the
Termination Date; provided that,  

(i)                 
immediately after each such Syndicated Loan is made, the
aggregate outstanding principal amount of Syndicated Loans by such Bank shall
not exceed the amount of its Commitment, and

(ii)               
the sum of (x) the aggregate outstanding principal amount of
all Syndicated Loans plus Swing Loans plus Letter of Credit Obligations shall
not exceed the aggregate amount of (y) the Commitments.

Each Syndicated Borrowing under
this Section shall be in an aggregate principal amount of $500,000 or any
larger integral multiple of $500,000 (except that any such Syndicated Borrowing
may be in the aggregate amount of the Unused Commitments) and shall be
made from the several Banks ratably in proportion to their respective
Commitments.  Within the foregoing
limits, the Borrower may borrow under this Section, repay or, subject to the
provisions of Section 2.10, prepay Syndicated Loans and reborrow under
this Section at any time before the Termination Date.

(b)              
Swing Loans.  In
addition to the foregoing, the Administrative Agent shall from time to time,
upon the request of the Borrower, if the applicable conditions precedent in
Article III have been satisfied or waived in accordance with Section 9.06, make
Swing Loans to the Borrower in an aggregate principal amount at any time
outstanding not exceeding $50,000,000; provided that, immediately after
such Swing Loan is made, the conditions set forth in clauses (i) and
(ii) of Section 2.01(a) shall have been satisfied.  Except as set forth below in this Section
2.01(b) under the Sweep Agreement, each Swing Loan Borrowing under this
Section 2.01(b) shall be in an aggregate principal amount of $100,000
or any larger multiple of $25,000. 
Within the foregoing limits, the Borrower may borrow under this
Section 2.01(b), prepay and reborrow under this
Section 2.01(b) at any time before the Termination Date.  Swing Loans shall not be considered a
utilization of the Commitment of the Administrative Agent or any other Bank
hereunder.  All Swing Loans shall bear
interest at the per annum rate or rates agreed to by the Borrower and the
Administrative Agent from time to time, or, if no agreement is reached, at the
Base Rate plus the Applicable Margin. 
At any time, upon the request of the Administrative Agent, each Bank
other than the Administrative Agent shall, on the third Domestic Business Day
after such request is made, purchase a participating interest in Swing Loans in
an amount equal to its ratable share (based upon its respective
Commitment) of such Swing Loans. 
On such third Domestic Business Day, each Bank will immediately transfer
to the Administrative Agent, in immediately available funds, the amount of its
participation.  Whenever, at any time
after the Administrative Agent has received from any such Bank its
participating interest in a Swing Loan, the Administrative Agent receives any
payment on account thereof, the Administrative Agent will distribute to such
Bank its participating interest in such amount (appropriately adjusted, in the
case of interest payments, to reflect the period of time during which such
Bank's participating interest was outstanding and funded); provided, however,
that in the event that such payment received by the Administrative Agent is
required to be returned, such Bank will return to the Administrative Agent any
portion thereof previously distributed by the Administrative Agent to it.  Each Bank's obligation to purchase such
participating interests shall be absolute and unconditional and shall not be
affected by any circumstance, including, without limitation:  (i) any set-off, counterclaim,
recoupment, defense or other right which such Bank or any other Person may have
against the Administrative Agent requesting such purchase or any other Person
for any reason whatsoever; (ii) the occurrence or continuance of a Default
or an Event of Default or the termination of the Commitments; (iii) any
adverse change in the condition (financial or otherwise) of the Borrower
or any other Person; (iv) any breach of this Agreement by the Borrower or
any other Bank; or (v) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing.

15

At any time during which the
Sweep Agreement is in effect, on each Domestic Business Day, the Administrative
Agent shall calculate the Net Cash Position in accordance with the terms of the
Sweep Agreement.  If the Net Cash
Position is less than zero, and so long as no Default or Event of Default has
occurred and is continuing, then the Borrower shall be deemed to have irrevocably
requested that the Administrative Agent make a Swing Loan to the Borrower in an
amount equal to the lesser of (i) an amount equal to the amount of the deficit
Net Cash Position, rounded up to the nearest $1,000 and (ii) an amount, which
when added to the aggregate principal amount of all outstanding Swing Loans
(after giving effect to any amount requested), shall not exceed the lesser of
(A) the aggregate Commitment less the sum of all outstanding Loans and the
Letter of Credit Obligations and (B) $50,000,000.  Principal and interest on Swing Loans deemed requested pursuant
to this Section shall be paid pursuant to the terms and conditions of the Sweep
Agreement without any deduction, setoff or counterclaim whatsoever.  Unless sooner paid pursuant to the
provisions hereof or the provisions of the Sweep Agreement, the principal
amount of the Swing Loans shall be paid in full, together with accrued interest
thereon, on the Termination Date.

SECTION
2.02.  Method of Borrowing
Syndicated Loans and Swing Loans.

(a)               
The Borrower shall give the Administrative Agent notice (a
"Notice of Borrowing"), which shall be substantially in the form of
Exhibit D-1, prior to (i) 11:00 A.M. (Charlotte, North Carolina
time) on the same Domestic Business Day of each Base Rate Borrowing or a
Swing Loan Borrowing (except as provided under the Sweep Agreement), and (ii)
11:00 A.M. (Charlotte, North Carolina time) and at least 3 Euro‐Dollar
Business Days before each Euro‐Dollar Borrowing, specifying:

(i)                 
the date of such Borrowing, which shall be a Domestic Business
Day in the case of a Base Rate Borrowing and of each Swing Loan Borrowing or a
Euro‐Dollar Business Day in the case of a Euro‐Dollar Borrowing,

(ii)               
the aggregate amount of such Borrowing,

(iii)              
whether the Syndicated Loans comprising such Borrowing are to
be Base Rate Loans or Euro‐Dollar Loans, or stating that such Borrowing
is to be a Swing Loan Borrowing,

16

(iv)             
in the case of a Euro-Dollar Borrowing, the duration of the
Interest Period applicable thereto, subject to the provisions of the definition
of Interest Period, and

(v)               
how the proceeds of such Borrowing are to be made available to
the Borrower.

(b)              
Upon receipt of a Notice of Borrowing, the Administrative
Agent shall promptly notify each Bank of the contents thereof and unless such
Borrowing is a Swing Loan Borrowing of such Bank's ratable share of such
Syndicated Borrowing and such Notice of Borrowing, once received by the
Administrative Agent, shall not thereafter be revocable by the Borrower (except
as otherwise provided in Section 8.01).

(c)               
Not later than 1:00 P.M. (Charlotte, North Carolina time) on
the date of each Syndicated Borrowing, each Bank shall (except as provided in
paragraph (d) of this Section) make available its ratable share of
such Syndicated Borrowing, in Federal or other funds immediately available in
Charlotte, North Carolina, to the Administrative Agent at its address
determined pursuant to Section 9.01. 
Unless the Administrative Agent determines that any applicable condition
specified in Article III has not been satisfied or waived in accordance with
Section 9.06, the Administrative Agent will make the funds so received from the
Banks available to the Borrower in the manner provided for in the applicable
Notice of Borrowing no later than 2:00 P.M. 
Unless the Administrative Agent receives notice from a Bank, at the
Administrative Agent's address referred to in or specified pursuant to
Section 9.01, no later than 4:00 P.M. (local time at such address) on
the Domestic Business Day before the date of a Syndicated Borrowing with
respect to a Euro-Dollar Loan, or no later than 1:00 P.M. on the date of a
Syndicated Borrowing with respect to a Base Rate Loan, stating that such Bank
will not make a Syndicated Loan in connection with such Syndicated Borrowing,
the Administrative Agent shall be entitled to assume that such Bank will make a
Syndicated Loan in connection with such Syndicated Borrowing and, in reliance
on such assumption, the Administrative Agent may (but shall not be obligated
to) make available such Bank's ratable share of such Syndicated Borrowing
to the Borrower for the account of such Bank. 
If the Administrative Agent makes such Bank's ratable share available to
the Borrower and such Bank does not in fact make its ratable share of such
Syndicated Borrowing available on such date, the Administrative Agent shall be
entitled to recover such Bank's ratable share from such Bank or the Borrower
(and for such purpose shall be entitled to charge such amount to any account of
the Borrower maintained with the Administrative Agent), together with interest
thereon for each day during the period from the date of such Syndicated
Borrowing until such sum shall be paid in full at a rate per annum equal to the
rate at which the Administrative Agent determines that it obtained (or could
have obtained) overnight Federal funds to cover such amount for each such
day during such period, provided that (i) any such payment by the Borrower
of such Bank's ratable share and interest thereon shall be without prejudice to
any rights that the Borrower may have against such Bank and (ii) until
such Bank has paid its ratable share of such Syndicated Borrowing, together
with interest pursuant to the foregoing, it will have no interest in or rights
with respect to such Syndicated Borrowing for any purpose hereunder.  If the Administrative Agent does not exercise
its option to advance funds for the account of such Bank, it shall forthwith
notify the Borrower of such decision. 
Unless the Administrative Agent determines that any applicable condition
specified in Article III has not been satisfied or waived in accordance with
Section 9.06, the Administrative Agent will make available to the Borrower at
the Administrative Agent's Lending Office (or as otherwise agreed by the
Administrative Agent) the amount of any such Borrowing which is a Swing Loan
Borrowing no later than 2:00 P.M (except as provided under the Sweep
Agreement).

17

(d)              
If any Bank makes a new Syndicated Loan hereunder on a day on
which the Borrower is to repay all or any part of an outstanding Syndicated
Loan from such Bank, such Bank shall apply the proceeds of its new Syndicated
Loan to make such repayment and only an amount equal to the difference (if
any) between the amount being borrowed and the amount being repaid shall
be made available by such Bank to the Administrative Agent as provided in paragraph
(c) of this Section.

(e)               
Notwithstanding anything to the contrary contained in this
Agreement, no Euro-Dollar Borrowing may be made if there shall have occurred a
Default or an Event of Default, which Default or Event of Default shall not
have been cured or waived.

(f)                
In the event that a Notice of Borrowing fails to specify
whether the Syndicated Loans comprising such Syndicated Borrowing are to be
Base Rate Loans or Euro‐Dollar Loans, such Syndicated Loans shall be made
as Base Rate Loans.  If the Borrower is
otherwise entitled under this Agreement to repay any Syndicated Loans maturing
at the end of an Interest Period applicable thereto with the proceeds of a new
Borrowing, and the Borrower fails to repay such Syndicated Loans using its own
moneys and fails to give a Notice of Borrowing in connection with such new
Syndicated Borrowing, a new Syndicated Borrowing shall be deemed to be made on
the date such Syndicated Loans mature in an amount equal to the principal
amount of the Syndicated Loans so maturing, and the Syndicated Loans comprising
such new Syndicated Borrowing shall be Base Rate Loans.

(g)               
Notwithstanding anything to the contrary contained herein,
there shall not be more than 6 Interest Periods outstanding at any given time.

SECTION
2.03.  Continuation and
Conversion Elections.  By delivering
a notice (a "Notice of Continuation or Conversion"), which shall be
substantially in the form of Exhibit D-2, to the Administrative Agent on
or before 12:00 P.M., Charlotte, North Carolina time, on a Domestic Business
Day (or Euro-Dollar Business Day, in the case of Euro-Dollar Loans
outstanding), the Borrower may from time to time irrevocably elect, by notice
on the same Domestic Business Day, in the case of Base Rate Loans, or 3
Euro-Dollar Business Days, in the case of Euro-Dollar Loans, that all, or any
portion in an aggregate principal amount of $500,000 or any larger integral
multiple of $500,000 be, (i) in the case of Base Rate Loans, converted
into or Euro-Dollar Loans or, or (ii) in the case of Euro-Dollar Loans,
converted into Base Rate Loans or continued as Euro-Dollar Loans (in the
absence of delivery of a Notice of Continuation or Conversion with respect to
any Euro-Dollar Loan at least 3 Euro-Dollar Business Days before the last day
of the then current Interest Period with respect thereto, such Euro-Dollar Loan
shall, on such last day, automatically convert to a Base Rate Loan); provided,
however, that (x) each such conversion or
continuation shall be pro rated among the Banks that have made such Loans, and
(y) no portion of the outstanding principal amount of any Loans may be
continued as, or be converted into, any Euro-Dollar Loan when any Event of  Default has occurred and is continuing.

18

SECTION
2.04.  Notes.   (a)  The
Syndicated Loans of each Bank shall be evidenced by a single Note made by the
Borrower payable to the order of such Bank for the account of its Lending
Office in an amount equal to the original principal amount of such Bank's  Commitment. 
The Swing Loans shall be evidenced by a single Swing Loan Note payable
to the order of the Administrative Agent in the original principal amount of
$50,000,000.

(b)              
Upon receipt of each Bank's Notes pursuant to Section 3.01,
the Administrative Agent shall deliver such Notes to such Bank.  Each Bank shall record, and prior to any
transfer of its Note shall endorse on the schedule forming a part thereof
appropriate notations to evidence the date, amount and maturity of each Loan
made by it, the date and amount of each payment of principal made by the
Borrower with respect thereto and whether such Loan is a Base Rate Loan or Euro‐Dollar
Loan, and such schedule shall constitute rebuttable presumptive evidence of the
principal amount owing and unpaid on such Bank's Note; provided that the
failure of any Bank to make any such recordation or endorsement shall not
affect the obligation of the Borrower hereunder or under the Notes.  Each Bank is hereby irrevocably authorized
by the Borrower so to endorse its Note and to attach to and make a part of its
Note a continuation of any such schedule as and when required.

SECTION
2.05.  Maturity of Loans.

(a)               
Each Euro-Dollar Loan included in any Borrowing shall mature,
and the principal amount thereof shall be due and payable, on the last day of
the Interest Period applicable to such Borrowing.

(b)              
Notwithstanding the foregoing, the outstanding principal
amount of the Loans, if any, together with all accrued but unpaid interest
thereon, if any, shall be due and payable on September 30, 2008.

SECTION
2.06.  Interest Rates.   (a) 
"Applicable Margin" means at all times:

(i)                 
for the period commencing on the Closing Date to and including
the first Performance Pricing Determination Date, for each Base Rate Loan 0.0%,
and for each Euro-Dollar Loan 0.6%; and

(ii)               
from and after the first Performance Pricing Determination
Date, for each Base Rate Loan and for each Euro-Dollar Loan, the percentage
determined on each Performance Pricing Determination Date by reference to the
table set forth below as to such type of Loan and the Debt to Capitalization
Ratio for the quarterly or annual period ending immediately prior to such
Performance Pricing Determination Date.

19

	
  Debt to 

  
  Capitalization Ratio

  	
  Base Rate Loan

  	
  Euro-Dollar Loan

  
	
  >
  0.55 to 1.0

  	
  0.600%

  	
  1.500%

  
	
  >
  0.50 to 1.0 but 

  < 0.55 to 1.0

  	
  0.350%

  	
  1.250%

  
	
  > 0.40 to 1.0 but

  <0.50 to 1.0

  	
  0.000%

  	
  1.000%

  
	
  >0.30 to 1.0 but

  <0.40 to 1.0

  	
  0.000%

  	
  0.750%

  
	
  >0.20 to 1.0 but

  <0.30 to 1.0

  	
  0.000%

  	
  0.600%

  
	
  < 0.20 to 1.0

  	
  0.000%

  	
  0.500%

  

In determining interest for purposes of this Section 2.06
and fees for purposes of Section 2.07, the Borrower and the Banks shall refer
to the Borrower's most recent consolidated quarterly and annual (as the case
may be) financial statements delivered pursuant to Section 5.01(a) or (b), as
the case may be.  The "Performance
Pricing Determination Date" is the date which is the last date on which
such financial statements are permitted to be delivered pursuant to Section
5.01(a) or (b), as applicable.  Any such
required change in interest and fees shall become effective on such Performance
Pricing Determination Date, and shall be in effect until the next Performance
Pricing Determination Date, provided that no fees or interest shall be
decreased pursuant to this Section 2.06 or Section 2.07 if an Event of Default
is in existence on the Performance Pricing Determination Date.

(b)              
Each Base Rate Loan shall bear interest on the outstanding
principal amount thereof, for each day from the date such Loan is made until it
becomes due, at a rate per annum equal to the Base Rate for such day plus (or
minus) the Applicable Margin.  Such
interest shall be payable for each Interest Period on the last day
thereof.  Any overdue principal of and,
to the extent permitted by applicable law, overdue interest on any Base Rate
Loan shall bear interest, payable on demand, for each day until paid at a rate
per annum equal to the Default Rate.

(c)               
Each Euro‐Dollar Loan shall bear interest on the
outstanding principal amount thereof, for the Interest Period  applicable thereto, at a rate per annum
equal to the sum of the Applicable Margin plus the applicable Adjusted London
Interbank Offered Rate for such Interest Period; provided that if any
Euro‐Dollar Loan shall, as a result of paragraph (1)(c) of the definition
of Interest Period, have an Interest Period of less than one month, such Euro‐Dollar
Loan shall bear interest during such Interest Period at the rate applicable to
Base Rate Loans during such period. 
Such interest shall be payable for each Interest Period on the last day
thereof and, if such Interest Period is longer than 3 months, at intervals of 3
months after the first day thereof.  Any
overdue principal of and, to the extent permitted by law, overdue interest on
any Euro‐Dollar Loan shall bear interest, payable on demand, for each day
until paid at a rate per annum equal to the Default Rate.

20

The "Adjusted London Interbank Offered Rate"
applicable to any Interest Period means a rate per annum equal to the quotient
obtained (rounded upwards, if necessary, to the next higher 1/100th of 1%) by
dividing (i) the applicable London Interbank Offered Rate for such Interest
Period by (ii) 1.00 minus the Euro‐Dollar Reserve Percentage.

The "London Interbank Offered Rate" applicable
to any Euro‐Dollar Loan means for the Interest Period of such Euro‐Dollar
Loan, the rate per annum determined on the basis of the offered rate for
deposits in Dollars of amounts equal or comparable to the principal amount of
such Euro‐Dollar Loan offered for a term comparable to such Interest
Period, which rates appear on Telerate Page 3750 effective as of 11:00 A.M.,
London time, 2 Euro‐Dollar Business Days prior to the first day of such
Interest Period, provided that (i) if more than one such offered rate appears
on Telerate Page 3750, the "London Interbank Offered Rate" will be
the arithmetic average (rounded upward, if necessary, to the next higher
1/100th of 1%) of such offered rates; (ii) if no such offered rates appear on
such page, the "London Interbank Offered Rate" for such Interest
Period will be the arithmetic average (rounded upward, if necessary, to the
next higher 1/100th of 1%) of rates quoted by not less than two major banks in
New York City, selected by the Administrative Agent, at approximately 10:00
A.M., New York City time, 2 Euro‐Dollar Business Days prior to the first
day of such Interest Period, for deposits in Dollars offered to leading
European banks for a period comparable to such Interest Period in an amount
comparable to the principal amount of such Euro‐Dollar Loan.

"Euro‐Dollar Reserve Percentage" means,
with respect to a given Bank, for any day that percentage (expressed as a
decimal) which is in effect on such day, as prescribed by the Board of
Governors of the Federal Reserve System (or any successor) for determining the
actual reserve requirement for such Bank in respect of "Eurocurrency
liabilities" (or in respect of any other category of liabilities which
includes deposits by reference to which the interest rate on Euro‐Dollar
Loans is determined or any category of extensions of credit or other assets
which includes loans by a non‐United States office of any Bank to United
States residents).  The Adjusted London
Interbank Offered Rate shall be adjusted automatically on and as of the
effective date of any change in the Euro‐Dollar Reserve Percentage.

(d)              
The Administrative Agent shall determine the interest rates
applicable to the Loans hereunder (other than Swing Loans, which shall be
determined in accordance with Section 2.01(b)).  The Administrative Agent shall give prompt notice to the Borrower
and the other Banks (by telephone or facsimile transmission) of each rate of
interest so determined, and its determination thereof shall be conclusive in
the absence of manifest error.

SECTION
2.07.  Fees.   (a)  The
Borrower shall pay to the Administrative Agent, for the ratable account of each
Bank, a facility fee, calculated in the manner provided in the last paragraph
of Section 2.07(a)(iii), on the aggregate amount of such Bank's Commitment
(without taking into account the amount of the outstanding Loans made by such
Bank), at a rate per  annum equal to: (i) for the
period commencing on the Closing Date to and including the first Performance
Pricing Determination Date, 0.15%; and (ii) from and after the first
Performance Pricing Determination Date, the percentage determined on each
Performance Pricing Determination Date by reference to the table set forth
below and the Debt to Capitalization Ratio for the quarterly or annual period
ending immediately prior to such Performance Pricing Determination Date:

21

	
  Debt to 

  
  Capitalization Ratio

  	

  	
  Facility Fee

  
	
  >
  0.55 to 1.0

  	

  	
  0.500%

  
	
  >
  0.50 to 1.0 but 

  < 0.55 to 1.0

  	

  	
  0.250%

  
	
  > 0.40 to 1.0 but

  <0.50 to 1.0

  	

  	
  0.150%

  
	
  >0.30 to 1.0 but

  <0.40 to 1.0

  	

  	
  0.150%

  
	
  >0.20 to 1.0 but

  <0.30 to 1.0

  	

  	
  0.150%

  
	
  < 0.20 to 1.0

  	

  	
  0.150%

  

Such facility fees shall accrue from and including the
Closing Date to (but excluding the Termination Date) and shall be payable on
each December 31, March 31, June 30, and September 30 and on the Termination
Date.

(b)              
The Borrower shall pay to the Administrative Agent, for the
account and sole benefit of the Administrative Agent, such fees and other
amounts at such times as mutually agreed in writing as of the Closing Date.

SECTION
2.08.  Optional Termination
or Reduction of Commitments.  The
Borrower may, upon at least 3 Domestic Business Days' notice to the
Administrative Agent, terminate at any time, or proportionately reduce the
Unused Commitments from time to time by an aggregate amount of at least
$10,000,000.  Upon a reduction of the
Unused Commitments, each Bank's Commitments shall be permanently and ratably reduced.

SECTION
2.09.  Mandatory Reduction
and Termination of Commitments. 
The  Commitments shall terminate
on the Termination Date and any Loans then outstanding (together with accrued
interest thereon) shall be due and payable by the Borrower on such date.

22

SECTION
2.10.  Optional Prepayments.   (a)  The
Borrower may, upon notice to the Administrative Agent on the same day, prepay
any Base Rate Borrowing in whole at any time, or from time to time in part in
amounts aggregating at least $100,000 or any larger amount, by paying the
principal amount to be prepaid together with accrued interest thereon to the
date of prepayment.

(b)              
Subject to Section 8.05, the Borrower may, upon at least 2
Euro‐Dollar Business Days' notice to the Administrative Agent, prepay any
Euro‐Dollar Loan in whole at any time, or from time to time in part,
prior to the maturity thereof, in amounts aggregating at least $1,000,000 or
any larger multiple of $100,000, by paying the principal amount to be prepaid
together with accrued interest thereon to the date of the prepayment.

(c)               
Upon any Administrative Agent's receipt of a notice of
prepayment pursuant to this Section, such notice shall not thereafter be
revocable by the Borrower.

SECTION
2.11.  Mandatory
Prepayments.  On each date on which
the Commitments are reduced pursuant to Section 2.08 or Section 2.09, the Borrower
shall repay or prepay such principal amount of the outstanding Loans, if any
(together with interest accrued thereon), as may be necessary so that after
such payment the aggregate unpaid principal amount of the Loans does not exceed
the aggregate amount of the Commitments as then reduced.

SECTION
2.12.  General Provisions
as to Payments.   (a) The Borrower shall make each payment of
principal of, and interest on, each Bank's Loans and of each Bank's fees
hereunder, not later than 11:00 A.M. (Charlotte, North Carolina time) on
the date when due, in Federal or other funds immediately available at the place
where payment is due, to such Bank at its address set forth on the signature
pages hereof or at such other address as such Bank may notify the Borrower in
writing from time to time.

(b)              
Whenever any payment of principal of, or interest on, the Base
Rate Loans or of fees shall be due on a day which is not a Domestic Business
Day, the date for payment thereof shall be extended to the next succeeding
Domestic Business Day.  Whenever any
payment of principal of or interest on, the Euro‐Dollar Loans shall be
due on a day which is not a Euro‐Dollar Business Day, the date for
payment thereof shall be extended to the next succeeding Euro‐Dollar
Business Day unless such Euro‐Dollar Business Day falls in another
calendar month, in which case the date for payment thereof shall be the next
preceding Euro‐Dollar Business Day.

SECTION
2.13.  Computation of
Interest and Fees.  Interest on Base
Rate Loans shall be computed on the basis of a year of 360 days and paid for
the actual number of days elapsed (including the first day but excluding the
last day).  Interest on Euro‐Dollar
Loans shall be computed on the basis of a year of 360 days and paid for the
actual number of days elapsed, calculated as to each Interest Period from and
including the first day thereof to but excluding the last day thereof.  Any fees payable hereunder shall be computed
on the basis of a year of 360 days and paid for the actual number of days
elapsed (including the first day but excluding the last day).

SECTION
2.14.  Letters of Credit.

23

(a)               
New Letters of Credit. Subject to the terms and
conditions of this Agreement, and in reliance upon the representations and
warranties of the Borrower herein set forth, the Administrative Agent and the
Additional Issuer shall issue for the account of Borrower, one or more New
Letters of Credit denominated in Dollars, in accordance with this Section
2.14(a), from time to time during the period commencing on the Closing Date and
ending on the Business Day prior to the Termination Date; provided, however,
the Additional Issuer may only issue New Letters of Credit under this Section
2.14(a) after prior written notice has been sent to the Administrative Agent.

(i)                 
An Issuer shall have no obligation to issue any New Letter of
Credit at any time:  (A) if the
Administrative Agent has determined that the aggregate maximum amount then
available for drawing under all Letters of Credit, after giving effect to the
issuance of the requested New Letter of Credit, would exceed any limit imposed
by law or regulation upon the Issuer; (B) if the Administrative Agent has
determined that, after giving effect to the issuance of the requested New
Letter of Credit, (1) the aggregate Letter of Credit Obligations would exceed
$100,000,000, or (2) the conditions set forth in this Agreement as to the
advancing of Loans or issuance of New Letters of Credit Section which have not
been waived in accordance with Section 9.06 would not be satisfied; and (C)
which has an expiration date (1) more than 364 days after the date of issuance
(except in the case of any New Letter of Credit which contains an
"evergreen" extension function, so long as any such extension does
not extend beyond the Termination Date) or (2) after the Termination Date.  The obligation of an Issuer to issue any New
Letter of Credit is subject to the satisfaction in full of the following
conditions: (A) the Borrower shall have delivered to the applicable Issuer at
such times and in such manner as the applicable Issuer may prescribe, a
Reimbursement Agreement as to New Letters of Credit and such other documents
and materials as may be required pursuant to the terms thereof all satisfactory
in form and substance to the applicable Issuer and the terms of the proposed
New Letter of Credit shall be satisfactory in form and substance to such
applicable Issuer; (B) as of the date of issuance no order, judgment or decree
of any court, arbitrator or Authority shall purport by its terms to enjoin or
restrain the applicable Issuer from issuing the New Letter of Credit and no
law, rule or regulation applicable to the applicable Issuer and no request or
directive (whether or not having the force of law) from any Authority with
jurisdiction over the applicable Issuer shall prohibit or request that the
applicable Issuer refrain from the issuance of letters of credit generally or
the issuance of that New Letter of Credit; and (C) after the issuance of the
requested New Letter of Credit, the conditions set forth in this Section shall
be satisfied.  

(ii)               
At least two Business Days before the effective date for any
New Letter of Credit, the Borrower shall give the applicable Issuer and the
Administrative Agent notice by telecopier containing the signature of an
authorized officer or employee of such Borrower.  Such notice shall be irrevocable and shall specify the original
face amount of the New Letter of Credit requested, the effective date (which
day shall be a Business Day) of issuance of such requested New Letter of
Credit, the date on which such requested New Letter of Credit is to expire, the
amount of then outstanding aggregate Letter of Credit Obligations, the purpose
for which such New Letter of Credit is to be issued, whether such New Letter of
Credit may be drawn in single or partial draws and the person for whose benefit
the requested New Letter of Credit is to be issued and the identity of the
proposed Issuer.

24

(iii)              
If the conditions set forth above are satisfied, the
applicable Issuer shall issue the requested New Letter of Credit.  The Administrative Agent shall give each
Bank written or telex notice in substantially the form of Exhibit F, or
telephonic notice confirmed promptly thereafter in writing, of the issuance of
a New Letter of Credit and shall deliver to each Bank in connection with such notice
a copy of the New Letter of Credit issued by the applicable Issuer, provided
that the Administrative Agent shall be obligated to deliver the foregoing with
respect to a New Letter of Credit issued by the Additional Issuer only after
receipt by the Administrative Agent of all notices required to be delivered to
the Administrative Agent with respect thereto.  

(iv)             
The Borrower shall pay to the applicable Issuer, solely for
its own account, the standard charges and fees (including, without limitation,
fronting fees) assessed by the applicable Issuer in connection with the
issuance, administration, amendment and payment or cancellation of New Letters
of Credit issued hereunder, which charges and fees shall be those typically
charged by the applicable Issuer to its customers generally having credit and
other characteristics similar to the Borrower, as determined in good faith by
the applicable Issuer.

(b)              
Letters of Credit Payments; Duties of the Administrative
Agent.

(i)                 
Subject to the terms and conditions contained in this
Agreement, with respect to the Letters of Credit, the Borrower shall pay to the
order of the Administrative Agent the amount of the Letter of Credit Fee
payable with respect to each Letter of Credit (and the Administrative Agent
shall pay to each other Bank such Bank's respective pro rata share thereof) (A)
on the first day of each Fiscal Quarter, (B) on the Termination Date and (C) if
there are any Letter of Credit Obligations on the Termination Date, on the
first date thereafter on which there are no Letter of Credit Obligations, in
each case for the previous period.

(ii)               
Upon receipt by an Issuer from the beneficiary of a Letter of
Credit of any demand for payment under such Letter of Credit, such Issuer shall
promptly notify the Borrower and the Administrative Agent of the amount to be
paid by such Issuer as a result of such demand and the date on which payment is
to be made by such Issuer to such beneficiary in respect of such demand.  The Borrower shall reimburse the Issuer for
drawings under a Letter of Credit issued by it no later than the earlier of (A)
the time specified in the Reimbursement Agreement, or (B) 1 Domestic Business
Day after the payment by the Issuer. 
Upon its receipt of a notice referred to in the first sentence of this
Subsection (ii), the Borrower shall advise the Administrative Agent whether or
not the Borrower intends to borrow hereunder to finance its obligation to
reimburse the applicable Issuer for the amount of the related demand for
payment and, if it does, the Borrower shall submit a timely request for such
borrowing as provided in the applicable provisions of this Agreement.  If the Borrower fails to so advise the
Administrative Agent, or if the Borrower fails to reimburse an Issuer for a
demand for payment under a Letter of Credit by the date required to do so, then
(i) if the applicable conditions contained in Article III would permit the
making of Syndicated Loans, the Borrower shall be deemed to have requested a
borrowing of Syndicated Loans (which shall be Base Rate Loans) in an amount
equal to the unpaid Reimbursement Obligation and the Administrative Agent shall
give each Lender notice of the amount of the Syndicated Loan to be made
available in accordance with Section 2.02(c), and (ii) if such conditions would
not permit the making of Loans, the provisions of Subsection (d) of this
Section shall apply.  The $500,000
limitations set forth in Section 2.01(a) shall not apply to any borrowing of
Base Rate Loans under this subsection.

25

(iii)              
Any Reimbursement Obligation with respect to any Letter of
Credit shall bear interest from the date of the relevant drawing under the
pertinent Letter of Credit until the date of payment in full thereof at a rate
per annum equal to (A) prior to the date that is 3 Domestic Business Days after
the date of the related payment by the Issuer, the Base Rate and (B)
thereafter, the Default Rate.

(iv)             
Any action taken or omitted to be taken by an Issuer in
connection with any Letter of Credit issued by it, if taken or omitted in the
absence of willful misconduct or gross negligence, shall not put such Issuer
under any resulting liability to any Bank, or assuming that such Issuer has
complied with the procedures specified in Subsection (iii), relieve that Bank
of its obligations hereunder to such Issuer. 
In determining whether to pay under any Letter of Credit, the Issuer
thereof shall have no obligation relative to the Banks other than to confirm
that any documents required to have been delivered under such Letter of Credit
appear to comply on their face, with the requirements of such Letter of Credit.

(v)               
After the occurrence and during the continuation of an Event
of Default, or upon the termination of this Agreement, to the extent of any
Letter of Credit Obligations, the Issuers may, as separate collateral security
to be held by the Banks for reimbursement of amounts of the Letter of Credit
Obligations which are subsequently funded by an Issuer (and for which the other
Banks have purchased a participation therein as set forth below), either (x)
immediately advance the principal amount thereof as Loans, and set aside the
amounts so advanced as such collateral security, or (y) demand from the
Borrower cash collateral in an amount equal to 100% of such Letter of Credit
Obligations with respect to each Letter of Credit as such collateral security.
The Borrower hereby agrees that the Banks shall have a right of setoff against
and security interest in such collateral reserve.  After a Letter of Credit has been canceled and all Letter of
Credit Obligations with respect to such Letter of Credit have been satisfied,
and the applicable Issuer (or participant) has been reimbursed all amounts
funded by such Issuer with respect thereto, any balance remaining in said
collateral reserve with respect to such Letter of Credit may be applied to
other unpaid obligations of the Borrower hereunder, and, if none, shall be
remitted to the Borrower.

26

(c)               
Purchase of Participations.  Each Bank hereby irrevocably and unconditionally purchases and
receives from each Issuer, without recourse or warranty, an undivided interest
and participation, equal to the amount of such Bank's LC Commitment Percentage
in each Letter of Credit issued by such Issuer.  Each Bank acknowledges receipt of a copy of each Existing Letter
of Credit as of the Closing Date.

(d)              
Sharing of Letters of Credit Payments.  In the event that an Issuer makes any
payment under a Letter of Credit issued by it for which the Borrower shall not
have repaid such amount to such Issuer pursuant to this Section, such Issuer
shall promptly notify the other Banks of such failure, and each other Bank
shall promptly and unconditionally pay to such Issuer the LC Commitment
Percentage of the amount of such payment in Dollars and in same day funds. If
an Issuer so notifies the other Banks prior to 10:00 A.M. (Charlotte, North
Carolina time) on any Domestic Business Day, such other Banks shall make
available to such Issuer the LC Commitment Percentage of the amount of such
payment on such Domestic Business Day in same day funds.  If and to the extent any of such other Banks
shall not have so made its LC Commitment Percentage of the amount of such
payment available to such Issuer, such other Bank agrees to pay to such Issuer
forthwith on demand such amount together with interest thereon, for each day
from the date such payment was first due until the date such amount is paid to
such Issuer at the Federal Funds Rate.

(e)               
Sharing of Reimbursement Obligation Payments. Whenever
an Issuer receives a payment from the Borrower or any guarantor on account of
Letter of Credit Obligations owing in respect of a Letter of Credit issued by
such Issuer including any interest thereon, as to which such Issuer has
received any payments from the other Banks pursuant to this Section, such
Issuer shall promptly pay to each other Bank its participating interest
therein, in Dollars and in the kind of funds so received, an amount equal to
such other Bank's LC Commitment Percentage thereof.  Each such payment shall be made by such Issuer on the Domestic
Business Day on which the funds are paid to such Person, if received prior to
10:00 a.m. (Charlotte, North Carolina time) on such Domestic Business Day, and
otherwise on the next succeeding Domestic Business Day. Each Bank agrees that
letter of credit fees (other than the Letter of Credit Fee) payable under an
Issuer's Reimbursement Agreement are solely for the account of such Issuer,
notwithstanding any provision contained herein to the contrary.

(f)                
Obligations Irrevocable.  The obligations of each Bank to make payments to an Issuer with
respect to a Letter of Credit shall be irrevocable, not subject to any
qualification or exception whatsoever and shall be made in accordance with, but
not subject to, the terms and conditions of this Agreement under all
circumstances, including, without limitation, any of the following
circumstances:

(i)                 
any lack of validity or enforceability of this Agreement or
any of the other Loan Documents;

(ii)               
the existence of any claim, set-off, defense or other right
which the Borrower may have at any time against a beneficiary named in the
Letters of Credit or any transferee of the Letters of Credit (or any Person for
whom any such transferee may be acting), an Issuer, any Bank or any other
Person, whether in connection with this Agreement, any Letter of Credit, the
transactions contemplated herein or any unrelated transactions;

27

(iii)              
any draft, certificate or any other document presented under a
Letter of Credit proves to be forged, fraudulent, invalid or insufficient in
any respect or any statement therein being untrue or inaccurate in any respect;

(iv)             
the surrender or impairment of any security for the
performance or observance of any of the terms of any of the Loan Documents;

(v)               
payment by an Issuer under a Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect;

(vi)             
payment by an Issuer under a Letter of Credit against
presentation of any draft or certificate that does not comply with the terms of
such Letter of Credit, except payment resulting from the gross negligence or
willful misconduct of an Issuer; or

(vii)            
any other circumstances or happenings whatsoever, whether or
not similar to any of the foregoing, except circumstances or happenings
resulting from the gross negligence or willful misconduct of the Issuer.

(g)               
Amendments to Letters of Credit and Reimbursement
Agreements.  No Issuer shall agree
to an amendment or modification to its Reimbursement Agreement or any Letter of
Credit issued by it unless the Required Banks have granted their prior written consent
thereto, which consent shall not be unreasonably withheld or delayed; provided,
however, an Issuer of a Letter of Credit may amend or otherwise modify such
Letter of Credit without the need to obtain consent of the Required Banks if
the respective Letter of Credit affected thereby could have been issued under
this Agreement in such amended or modified form, but if the undrawn available
amount under such Letter of Credit is increased thereby, only so long as a
notice is sent by the Borrower under Section 3.02(a) and the Additional Issuer
under the first proviso contained in Section 2.14(a).  In the case of any conflict between provisions of any
Reimbursement Agreement or this Agreement, the provisions of this Agreement
shall govern, but only for so long as this Agreement is in effect.

SECTION
2.15.  Guarantee of
Reimbursement Obligations.  The
following provisions of this Section 2.15 shall apply solely to each
Reimbursement Agreement for which the Borrower is not the Applicant.

(a)               
The Borrower hereby absolutely and unconditionally, guarantees
the due and punctual payment and performance of the Letter of Credit
Obligations.  Upon failure by an
Applicant to pay any such amount in accordance with the terms of its
Reimbursement Agreement, the Borrower agrees that it shall forthwith on demand
pay the amount not so paid at the place and in the manner specified in the
Reimbursement Agreement.

28

(b)              
The obligations of the Borrower under this Section 2.15 shall
be unconditional and absolute and, without limiting the generality of the foregoing,
shall not be released, discharged or otherwise affected by: (i) any extension,
renewal, settlement, compromise, waiver or release in respect of any obligation
of an Applicant under the Reimbursement Agreement, by operation of law or
otherwise or any obligation of any other guarantor of any of the Letter of
Credit Obligations; (ii) any modification or amendment of or supplement to the
Reimbursement Agreement; (iii) any release, nonperfection or invalidity of any
direct or indirect security for any obligation of an Applicant under the
Reimbursement Agreement, or any obligations of any other guarantor of any of
the Letter of Credit Obligations; (iv) any change in the corporate existence,
structure or ownership of an Applicant or any other guarantor of any of the
Letter of Credit Obligations, or any insolvency, bankruptcy, reorganization or
other similar proceeding affecting an Applicant, or any other guarantor of the
Letter of Credit Obligations, or its assets or any resulting release or
discharge of any obligation of an Applicant, or any other guarantor of any of
the Letter of Credit Obligations; (v) the existence of any claim, setoff or
other rights which the Borrower may have at any time against an Applicant, any
other guarantor of any of the Letter of Credit Obligations, any Bank or any
other Person, whether in connection herewith or any unrelated transactions,
provided that nothing herein shall prevent the assertion of any such claim by
separate suit or compulsory counterclaim; (vi) any invalidity or
unenforceability relating to or against an Applicant, or any other guarantor of
any of the Letter of Credit Obligations, for any reason related to the
Reimbursement Agreement, or any other Guaranty, or any provision of applicable
law or regulation purporting to prohibit the payment of the Letter of Credit
Obligations by an Applicant, or any other guarantor of the Letter of Credit
Obligations; and (vii) any other act or omission to act or delay of any kind by
an Applicant, any other guarantor of the Letter of Credit Obligations, any Bank
or any other Person or any other circumstance whatsoever which might, but for
the provisions of this paragraph, constitute a legal or equitable discharge of
the Borrower's obligations hereunder, including without limitation, any
failure, omission, delay or inability on the part of any Bank to enforce,
assert or exercise any right power or remedy conferred on any Bank under the
Reimbursement Agreement or any other Loan Documents.

(c)               
The Borrower's obligations hereunder shall remain in full
force and effect until all Letter of Credit Obligations shall have been paid in
full and the relevant Reimbursement Agreement shall have terminated or
expired.  If at any time any  amount payable by an Applicant under a
Reimbursement Agreement or any other Loan Document is rescinded or must be
otherwise restored or returned upon the insolvency, bankruptcy or
reorganization of an Applicant or otherwise, the Borrower's obligations
hereunder with respect to such payment shall be reinstated as though such
payment had been due but not made at such time.

(d)              
The Borrower irrevocably waives any requirement that at any
time any action be taken by any Person against an Applicant, any other
guarantor of the Letter of Credit Obligations, or any other Person.

SECTION
2.16.  Amendments Required
as a Result of Permanent Facility. 
In the event that:

(a)               
the Borrower obtains senior bank debt financing in addition to
the Revolving Credit Facilities in an amount greater than $300 million,
including without limitation, in connection with any (i) acquisition (whether
of assets or stock) of a business operation, unit, division or entity (each, a
"Business"), or (ii) merger or other transaction having the effect of
acquiring a Business;  

29

(b)              
such senior bank debt financing (or any commitment with
respect thereto) remains outstanding with the original lender (whether alone or
as a part of syndicate of lenders) in whole or in part for a period greater
than 180 days (each, a "Permanent Facility");

(c)               
the Permanent Facility contains any provisions more favorable
to the lenders party thereto than the provisions of the Revolving Credit
Facilities (the "More Favorable Terms"), including, without
limitation, interest rates (including, without limitation, margins), fees or
other pricing terms (collectively, the "Pricing Terms") in amounts
greater than any comparable Pricing Terms with respect to the 364 Day Revolving
Credit Facility (as reasonably determined by the Banks); and

(d)              
after giving effect to a fully funded commitment under the
Permanent Facility the Debt to Capitalization Ratio shall be greater than 0.40
to 1.00 at the end of any Fiscal Quarter;

then, upon the written request by the Banks after the
occurrence of all such events described in the immediately preceding clauses
(a), (b), (c) and (d) (the "Amendment Events"), the Borrower agrees
to promptly amend the Revolving Credit Facilities effective for so long as the
Debt to Capitalization Ratio is greater than 0.40 to 1.00 as follows:

1.                 
to give the Banks the benefit of any such More Favorable
Terms, and  

2.                 
 to increase (but not
decrease) any such Pricing Terms of the Revolving Credit Facilities as follows:

(i)                 
in amounts mutually agreed between the Borrower and the Banks,
or  

(ii)               
in the event such an amendment by mutual agreement is not
executed and delivered within 30 days after the Amendment Events, then the
Revolving Credit Facilities will be amended such that the Pricing Terms of the
Revolving Credit Facilities will be identical to the Pricing Terms of the
Permanent Facility.

ARTICLE
III

CONDITIONS TO BORROWINGS AND ISSUANCE OF NEW LETTERS OF CREDIT

SECTION
3.01.  Conditions to
Effective Date.  The obligations of
each Bank under this Agreement are subject to the satisfaction of the
conditions set forth in Section 3.02 and receipt by the Administrative Agent of
the following (in sufficient number of counterparts (except as to the Notes)
for delivery of a counterpart to each Bank and retention of one counterpart by
the Administrative Agent):

30

(a)               
a written letter agreement evidencing the termination of the
Fifth Amended and Restated Credit Agreement dated as of November 23, 1999 among
Mohawk Industries, Inc., SunTrust Bank, and Wachovia Bank, National
Association, and any other lenders party thereto;

(b)              
from each of the parties hereto a duly executed counterpart of
this Agreement;

(c)               
a duly executed Note by the Borrower for the account of each
Bank complying with the provisions of Section 2.04;

(d)              
an opinion of Alston & Bird LLP, counsel for the Borrower,
dated as of the Effective Date, substantially in the form of Exhibit B;

(e)               
the Borrower's most recent audited consolidated financial
statements, including, without limitation, a balance sheet and income statement
and its most recent 10-K filed with the Securities and Exchange Commission, in
such form and substance satisfactory to the Banks in their sole discretion;

(f)                
a certificate, dated as of the Effective Date, signed by a
principal financial officer of the Borrower, certifying (i) that no Default has
occurred and is continuing on the Effective Date, (ii) that the representations
and warranties of the Borrower contained in Article IV are true on and as
of the Effective Date, and (iii) in detail satisfactory to the Administrative
Agent, the amount of all outstanding Debt as of the Effective Date;

(g)               
all documents which the Administrative Agent or any Bank may
reasonably request relating to the existence of the Borrower, the corporate
authority for and the validity of the Loan Documents to which the Borrower is a
party, and any other matters relevant thereto, all in form and substance
satisfactory to the Administrative Agent, including, without limitation, a
certificate of incumbency of the Borrower, signed by the Secretary or an
Assistant Secretary of the Borrower, certifying as to the names, true
signatures and incumbency of the officer or officers of the Borrower, authorized
to execute and deliver the Loan Documents, and certified copies of the
following items as to the Borrower:  (i)
its Certificate of Incorporation, (ii) its Bylaws, (iii) a certificate of the
Secretary of State of the State of Delaware as to the good standing of the
Borrower as a Delaware corporation, and (iv) the action taken by its Board of
Directors (or a duly authorized committee thereof) authorizing its execution,
delivery and performance of the Loan Documents to which it is a party; and

(h)               
a Notice of Borrowing, if necessary.

SECTION
3.02.  Conditions to All
Borrowings and Issuance of New Letters of Credit.  The obligation of each Bank to make a Loan on the occasion of
each Borrowing or an Issuer to issue a New Letter of Credit is subject to the
satisfaction of the following conditions:

(a)               
in the case of a Loan, receipt by the Administrative Agent of
a Notice of Borrowing, or in the case of a New Letter of Credit (or increase to
the undrawn amount available under a Letter of Credit), receipt by the
Administrative Agent and the applicable Issuer of a request for such Letter of
Credit (or request as to such increase);

31

(b)              
the fact that, immediately after such Borrowing or issuance of
such Letter of Credit, no Default shall have occurred and be continuing;

(c)               
the fact that the representations and warranties contained in
Article IV of this Agreement shall be true on and as of the date of such
Borrowing or issuance of such Letter of Credit except for changes permitted by
this Agreement and except to the extent they relate solely to an earlier date;
and

(d)              
the fact that, immediately after such Borrowing or issuance of
such Letter of Credit, the sum of (x) the aggregate outstanding principal
amount of the  Loans plus the Letter of
Credit Obligations of the Banks will not exceed (y) the amount of the aggregate
Commitments.

Each Borrowing and issuance of a New Letter of Credit
hereunder shall be deemed to be a representation and warranty by the Borrower
on the date thereof as to the facts specified in paragraphs (b), (c) and (d) of
this Section.

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants that:

SECTION
4.01.  Corporate Existence
and Power.  The Borrower is a
corporation duly organized, validly existing and in good standing under the
laws of the jurisdiction of its incorporation, is duly qualified to transact
business in every jurisdiction where, by the nature of its business, such
qualification is necessary and where failure to be so qualified could have or
create a reasonable possibility of causing a Material Adverse Effect, and has
all corporate powers and all material governmental licenses, authorizations,
consents and approvals required to carry on its business as now conducted.

SECTION
4.02.  Corporate and
Governmental Authorization; No Contravention.  The execution, delivery and performance by the Borrower of this
Agreement, the Notes and the other Loan Documents to which it is a party (i)
are within its corporate powers, (ii) have been duly authorized by all
necessary corporate action, (iii) require no action by or in respect of or filing
with, any governmental body, agency or official (other than routine filings
with the Securities and Exchange Commission), (iv) do not contravene, or
constitute a default under, any provision of applicable law or regulation or of
the certificate of incorporation or by‐laws of the Borrower or of any
agreement, judgment, injunction, order, decree or other instrument binding upon
the Borrower or any of its Subsidiaries, and (v) do not result in the creation
or imposition of any Lien on any asset of the Borrower or any of its
Subsidiaries.

SECTION
4.03.  Binding Effect.  This Agreement constitutes a valid and
binding agreement of the Borrower enforceable in accordance with its terms, and
the Notes and the other Loan Documents, when executed and delivered in
accordance with this Agreement, will constitute
valid and binding obligations of the Borrower (provided that the Borrower is a
party to any such Loan Document) enforceable in accordance with their
respective terms, provided that the enforceability hereof and thereof is
subject in each case to general principles of equity and to bankruptcy,
insolvency and similar laws affecting the enforcement of creditors' rights
generally.

32

SECTION
4.04.  Financial
Information.   (a)  The
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as
of December 31, 2002, and the related consolidated statements of income,
shareholders' equity and cash flows for the Fiscal Year then ended, reported on
by KPMG LLP, copies of which have been delivered to each of the Banks, and the
unaudited consolidated financial statements of the Borrower for the interim
period ended June 30, 2003, copies of which have been delivered to each of the
Banks, fairly present in all material respects, in conformity with GAAP, the
consolidated financial position of the Borrower and its Consolidated
Subsidiaries as of such dates and their consolidated results of operations and
cash flows for such periods stated.

(b)              
Since December 31, 2002, there has been no event, act,
condition or occurrence having, or which could reasonably be expected to have a
Material Adverse Effect.

SECTION
4.05.  No Litigation.  Except as set forth on Schedule 4.05, as of
the date hereof, there is no action, suit or proceeding pending, or to the
knowledge of the Borrower threatened in writing, against or affecting the
Borrower or any of its Subsidiaries before any court or arbitrator or any
governmental body, agency or official which could reasonably be expected to
have a Material Adverse Effect.

SECTION
4.06.  Compliance with
ERISA.   (a)  The
Borrower and each member of the Controlled Group have fulfilled their
obligations under the minimum funding standards of ERISA and the Code with
respect to each Plan and are in compliance with the presently applicable
provisions of ERISA and the Code (except where such noncompliance could not
reasonably be expected to have a Material Adverse Effect), and have not
incurred any liability to the PBGC under Title IV of ERISA.

(b)              
Neither the Borrower nor any member of the Controlled Group is
or ever has been obligated to contribute to any Multiemployer Plan.

SECTION
4.07.  Taxes.  There have been filed on behalf of the
Borrower and its Subsidiaries all Federal, state and local income, excise,
property and other tax returns which are required to be filed by them and all
taxes due pursuant to such returns or pursuant to any assessment received by or
on behalf of the Borrower or any Subsidiary have been paid or valid and
effective extensions therefor have been obtained.  The charges, accruals and reserves on the books of the Borrower
and its Subsidiaries in respect of taxes or other governmental charges are, in
the opinion of the Borrower, adequate. 
United States income tax returns of the Borrower and its Subsidiaries'
have been examined and closed through the Fiscal Year ended 1994.

SECTION
4.08.  Subsidiaries.  Each of the Borrower's Subsidiaries is duly
organized or formed, validly existing and in good standing under the laws of
the jurisdiction of its creation and organization, and has all powers (by
virtue of its creation and organization) and all material governmental
licenses, authorizations, consents and approvals required to carry on its business as now conducted. 
As of the date hereof, the Borrower has no Subsidiaries except for those
Subsidiaries listed on Schedule 4.08, which accurately sets forth each such
Subsidiary's complete name and jurisdiction of creation and organization.
Schedule 4.08 also sets forth the amount of the Borrower's and each of its
Subsidiaries' Investments in the Foreign Subsidiaries as of the Closing Date.

33

SECTION
4.09.  Not an Investment
Company.  The Borrower is not an
"investment company" within the meaning of the Investment Company Act
of 1940, as amended.

SECTION
4.10.  Ownership of
Property; Liens.  Each of the
Borrower and its Consolidated Subsidiaries has title to its properties
sufficient for the conduct of its business, and none of such property is
subject to any Lien except as permitted in Section 5.07.

SECTION
4.11.  No Default.  Neither the Borrower nor any of its
Consolidated Subsidiaries is in default under or with respect to any agreement,
instrument or undertaking to which it is a party or by which it or any of its
property is bound which could reasonably be expected to have or cause a
Material Adverse Effect.  No Default or
Event of Default has occurred and is continuing.

SECTION
4.12.  Full Disclosure.  All information heretofore furnished by the
Borrower to any Bank for purposes of or in connection with this Agreement or
any transaction contemplated hereby is, and all such information hereafter
furnished by the Borrower to any Bank will be, true, accurate and complete in
every material respect or based on reasonable estimates on the date as of which
such information is stated or certified. 
The Borrower has disclosed to the Banks in writing any and all facts
which would have or create a reasonable possibility of causing a Material
Adverse Effect.

SECTION
4.13.  Environmental
Matters.   (a) To the best knowledge of the Borrower, after
due inquiry (which does not necessarily mean the performance of a phase I
environmental audit), (a) neither the Borrower nor any Subsidiary is subject to
any Environmental Liability and (b) neither the Borrower nor any Subsidiary has
been designated as a potentially responsible party under CERCLA or under any
state statute similar to CERCLA in respect of any matters that could reasonably
be expected to have a Material Adverse Effect. 
To the best knowledge of the Borrower, after due inquiry (which does not
necessarily mean the performance of a phase I environmental audit), none of the
Properties has been identified on any current or proposed (i) National
Priorities List under 40 C.F.R. Section 300, (ii) CERCLIS list or (iii) any
list arising from a state statute similar to CERCLA, in each case, in respect
of any matters that could reasonably be expected to have a Material Adverse
Effect.

(b)              
To the best knowledge of the Borrower, after due inquiry
(which does not necessarily mean the performance of a phase I environmental
audit), no Hazardous Materials have been or are being used, produced,
manufactured, processed, treated, recycled, generated, stored, disposed of,
managed or otherwise handled at, or shipped or transported to or from the
Properties or are otherwise present at, on, in or under the Properties, or, to
the best of the knowledge of the Borrower, at or from any adjacent site or
facility, except for (i) Hazardous Materials, such as cleaning solvents,
combustion enhancers, pesticides and other materials used, produced,
manufactured, processed, treated, recycled, generated, stored, disposed of,
managed, or otherwise handled in the ordinary course of business in compliance
with all applicable Environmental Requirements, and (ii) Hazardous Materials
with respect to which the presence thereof, any required remediation with
respect thereto, or the expenses, fines, penalties and other costs relating thereto
could not reasonably be expected to have a Material Adverse Effect.

34

(c)               
Except for non-compliance which could not reasonably be
expected to have a Material Adverse Effect, the Borrower, and each of its
Subsidiaries is in compliance with all Environmental Requirements in connection
with the operation of the Properties and each of the Borrower's and its
Subsidiary's respective businesses.

SECTION
4.14.  Capital Stock.  All Capital Stock, debentures, bonds, notes
and all other securities of the Borrower and its Subsidiaries presently issued
and outstanding are validly and properly issued in accordance with all
applicable laws, including but not limited to, the "Blue Sky" laws of
all applicable states and the federal securities laws.  At least a majority of the issued shares of
capital stock of each of the Borrower's other Subsidiaries, if any, (other than
Wholly Owned Subsidiaries) is owned by the Borrower free and clear of any Lien
or adverse claim.

SECTION
4.15.  Margin Stock.  Neither the Borrower nor any of its
Subsidiaries is engaged principally, or as one of its important activities, in
the business of purchasing or carrying any Margin Stock, and no part of the
proceeds of any Loan will be used, except as permitted by Section 5.11, (a) to
purchase or carry any Margin Stock or (b) to extend credit to others for the
purpose of purchasing or carrying any Margin Stock.

SECTION
4.16.  Insolvency.  After giving effect to the execution and
delivery of the Loan Documents and the making of  the Loans under this Agreement, the Borrower will not be
"insolvent," within the meaning of such term as used in O.C.G.A.
§ 18‐2‐22 or as defined in § 101 of Title 11 of the
United States Code, as amended from time to time, or be unable to pay its debts
generally as such debts become due, or have an unreasonably small capital to
engage in any business or transaction, whether current or contemplated.

ARTICLE
V

COVENANTS

The Borrower agrees that, so long as any Commitment shall
remain in effect, any Letter of Credit Obligations are outstanding or any
amount payable hereunder or under any Note remains unpaid:

SECTION
5.01.  Information.  The Borrower will deliver to each of the
Banks:

(a)               
as soon as available and in any event within 90 days after the
end of each Fiscal Year, a consolidated balance sheet of the Borrower and its
Consolidated Subsidiaries as of the end of such Fiscal Year and the related
consolidated statements of earnings, stockholders' equity and cash flows for
such Fiscal Year, setting forth in each case in comparative form the figures
for the previous Fiscal Year, including the related unqualified audit opinion
issued by KPMG LLP or other independent public accountants of nationally
recognized standing, with such certification to be free of exceptions and
qualifications not acceptable to the Required Banks;

35

(b)              
as soon as available and in any event within 45 days after the
end of each Fiscal Quarter (other than the fourth Fiscal Quarter), a
consolidated  balance sheet of the
Borrower and its Consolidated Subsidiaries as of the end of such Fiscal Quarter
and the related consolidated statements of earnings and statements of cash
flows for such quarter and for the portion of the Fiscal Year ended at the end
of such quarter, setting forth in each case in comparative form the figures for
the corresponding quarter and the corresponding portion of the previous Fiscal
Year, all certified (subject to normal year‐end adjustments) as to
fairness of presentation, GAAP (except for the failure to provide footnotes
thereto) and consistency by the chief financial officer or the corporate
controller of the Borrower;

(c)               
simultaneously with the delivery of each set of financial
statements referred to in paragraphs (a) and (b) above, a certificate,
substantially in the form of Exhibit E (a "Compliance
Certificate"), of the chief financial officer, treasurer or the corporate
controller of the Borrower (i) setting forth in reasonable detail the
calculations required to establish whether the Borrower was in compliance with
the requirements of Sections 5.03, 5.04, and Section 5.07, on the date of such
financial statements and (ii) stating whether any Default exists on the date of
such certificate and, if any Default then exists, setting forth the details
thereof and the action which the Borrower is taking or proposes to take with
respect thereto;

(d)              
simultaneously with the delivery of each set of annual
financial statements referred to in paragraph (a) above, operations and cash
flow projections (indicating projected earnings and significant cash sources
and uses) prepared by the Borrower for the Fiscal Year following the Fiscal Year
reported on in such statements referred to in paragraph (a), in such form and
substance as is acceptable to the Required Banks, in their sole discretion;

(e)               
within 1 Domestic Business Day after the Borrower becomes
aware of the occurrence of any Default, telephonic notice to each of the Banks
of the occurrence of a Default (which telephonic notice shall set forth the
details thereof), followed, within 10 Domestic Business Days after the date of
such telephonic notice, with a certificate of the chief financial officer or
the treasurer of the Borrower setting forth the details thereof and the action
which the Borrower is taking or proposes to take with respect thereto;

(f)                
promptly upon the mailing thereof to the shareholders of the
Borrower generally, copies of all financial statements, reports and proxy
statements so mailed;

(g)               
promptly upon the filing thereof, copies of all registration
statements (other than the exhibits thereto and any registration statements on
Form S‐8 or its equivalent) and annual, quarterly or monthly reports
which the Borrower shall have filed with the Securities and Exchange
Commission;

36

(h)               
if and when any member of the Controlled Group (i) gives or is
required to give notice to the PBGC of any "reportable event" (as
defined in Section 4043 of ERISA) with respect to any Plan which might
constitute grounds for a termination of such Plan under Title IV of ERISA, or
knows that the plan administrator of any Plan has given or is required to give
notice of any such reportable event, a copy of the notice of such reportable
event given or required to be given to the PBGC; (ii) receives notice of
complete or partial withdrawal liability under Title IV of ERISA, a copy of
such notice; or (iii) receives notice from the PBGC under Title IV of ERISA of
an intent to terminate or appoint a trustee to administer any Plan, a copy of
such notice; and

(i)                 
from time to time such additional information regarding the
financial position or business of the Borrower and its Subsidiaries as any Bank
may reasonably request, including, without limitation, consolidating balance
sheets and statements of earnings of the Borrower and the Borrower's
Subsidiaries, in existence at such time, as at the end of any fiscal period.

SECTION
5.02.  Inspection of
Property, Books and Records.  The
Borrower will (i) keep, and cause each Subsidiary to keep, proper books of
record and account in which full, true and correct entries in conformity with
GAAP shall be made of all dealings and transactions in relation to its business
and activities; and (ii) permit, and cause each Subsidiary to permit,
representatives of any Bank at such Bank's expense prior to the occurrence of a
Default and at the Borrower's expense after the occurrence of a Default to
visit and inspect any of their respective properties, to examine and make
abstracts from any of their respective books and records and to discuss their
respective affairs, finances and accounts with their respective officers,
employees and independent public accountants. 
The Borrower agrees to cooperate and assist in such visits and
inspections, in each case upon reasonable notice, at such reasonable times and
as often as may reasonably be desired.

SECTION
5.03.  Debt to
Capitalization Ratio.  The Debt to
Capitalization Ratio shall be less than 0.60 to 1.0 at the end of each Fiscal
Quarter.

SECTION
5.04.  Debt to EBITDA Ratio.  The ratio of the Borrower's (a) Consolidated
Debt to (b) the sum of (i) Consolidated Net Income, (ii) Consolidated Interest
Expense, (iii) taxes on the Borrower's consolidated pre-tax income, and (iv)
Depreciation and Amortization shall not be greater than 3.5 to 1.0 at the end
of each Fiscal Quarter.  Clause (b) in
this Section 5.04 shall be calculated on a trailing 4 quarter basis as at the
end of each such Fiscal Quarter.

SECTION
5.05.  Restricted Payments.  The Borrower shall not declare or make any
Restricted Payment unless, after giving effect thereto, no Default shall exist.

SECTION
5.06.  Investments.  The Borrower will not, and will not permit
any of its Subsidiaries to, make or maintain any Investments except (a)
Investments in the Borrower or any Subsidiary, including without limitation,
advances or loans between or among the Borrower or any Subsidiary and loans and
advances to officers and employees of the Borrower or any Subsidiary in the
ordinary course of business, provided, however, in no event will Investments
made by the Borrower or any Subsidiary in Foreign Subsidiaries after the
Closing Date exceed, in the aggregate, 20% of
Consolidated Total Assets calculated immediately after giving effect thereto;
(b) Investments in Persons engaged in a Permitted Line of Business (whether or
not such Person is, or after giving effect to any such Investment becomes, a
Subsidiary); (c) Investments in Persons in connection with Permitted
Acquisitions; and (d) Investments in Approved Investments; provided, however,
during the existence of an Event of Default, neither the Borrower nor any of
its Subsidiaries may make any new Investments without the prior written consent
of the Required Banks.

37

SECTION
5.07.  Negative Pledge.  Neither the Borrower nor any of its
Subsidiaries will  create, assume or
suffer to exist any Lien on any asset now owned or hereafter acquired by it,
except:

(a)               
Liens existing on the date of this Agreement securing Debt
outstanding on the date of this Agreement in an aggregate principal amount not
exceeding $5,000,000;

(b)              
any Lien existing on any asset of any Person at the time such
Person becomes a Consolidated Subsidiary and not created in contemplation of
such event;

(c)               
any Lien on any asset securing Debt incurred or assumed for
the purpose of financing all or any part of the cost of acquiring or
constructing such asset, provided that such Lien attaches to such asset
concurrently with or within 18 months after the acquisition or completion of
construction thereof;

(d)              
any Lien on any asset of any Person existing at the time such
Person is merged or consolidated with or into the Borrower or a Consolidated
Subsidiary and not created in contemplation of such event;

(e)               
any Lien existing on any asset prior to the acquisition
thereof by the Borrower or a Consolidated Subsidiary and not created in
contemplation of such acquisition;

(f)                
Liens securing Debt owing by any Subsidiary to the Borrower;

(g)               
any Lien arising out of the refinancing, extension, renewal or
refunding of any Debt secured by any Lien permitted by any of the foregoing paragraphs
of this Section, provided that (i) such Debt is not secured by any
additional assets, and (ii) the amount of such Debt secured by any such Lien is
not increased;

(h)               
Liens incidental to the conduct of its business or the
ownership of its assets which (i) do not secure Debt and (ii) do not in the
aggregate materially detract from the value of its assets or materially impair
the use thereof in the operation of its business;

(i)                 
any Lien on Margin Stock;

(j)                
Liens in connection with an Asset Securitization permitted
under Section 5.10;

38

(k)              
Liens involuntarily imposed and being contested in good faith,
subject to the Borrower or such Subsidiary having established reasonable
reserves therefor to the extent required under GAAP;

(l)                 
Liens against the assets of Aladdin (formerly owned by Galaxy)
under the Catoosa Co. IRB solely to the extent existing as of the date hereof;
and

(m)             
Liens against the assets of Aladdin (formerly owned by Image
Industries, Inc.) under the Summerville City IRB solely to the extent existing
as of the date of the Image Acquisition.

provided that Liens permitted by the foregoing
paragraphs (a) through (i) shall at no time secure Debt in an aggregate amount
exceeding the greater of (x) $90,000,000 or (y) 15% of Consolidated Net Worth.

SECTION
5.08.  Maintenance of
Existence.  Other than as permitted
by Section 5.09 or 5.10, the Borrower shall, and shall cause each Subsidiary
to, maintain its corporate existence and carry on its business in a Permitted
Line of Business.

SECTION
5.09.  Dissolution.  Neither the Borrower nor any of its Subsidiaries
shall suffer or permit dissolution or liquidation either in whole or in part or
redeem or retire any shares of its own stock or that of any Subsidiary, except
through corporate reorganization to the extent permitted by Section 5.10 or in
connection with a Restricted Payment which is permitted pursuant to Section
5.05.

SECTION
5.10.  Consolidations,
Mergers and Sales of Assets.  The
Borrower will not, nor will the Borrower permit any Subsidiary to, consolidate
or merge with or into, or sell, lease or otherwise transfer all or any
substantial part of its assets to, any other Person, provided that (a)
the Borrower may merge with another Person if (i) such Person was organized
under the laws of the United States of America or one of its states, (ii) the
Borrower is the corporation surviving such merger and (iii) immediately after
giving effect to such merger, no Default shall have occurred and be continuing,
(b) Subsidiaries of the Borrower may merge with and into the Borrower, any
other Subsidiary, or any other Person if after giving effect thereto such other
Person would be a Subsidiary, (c) assets may be transferred from a Subsidiary
to the Borrower or another Subsidiary, (d) any Wholly-Owned Subsidiary may
dissolve or liquidate so long as the assets of such Subsidiary at the time of
such dissolution or liquidation are transferred to such Subsidiary's
shareholder and such shareholder assumes all of the liabilities of such
Subsidiary at the time of such dissolution or liquidation, (e) the Borrower and
its Subsidiaries may factor receivables, 
(f) the Borrower and its Subsidiaries may effect Asset Securitizations,
and (g) the foregoing limitation on the sale, lease or other transfer of assets
shall not prohibit, during any Fiscal Quarter, a transfer of assets by the
Borrower or any Subsidiary (in a single transaction or in a series of related
transactions) unless (x) the proceeds thereof are not reinvested within 180
days thereafter in a Permitted Line of Business owned by the Borrower or such
Subsidiary or (y) the aggregate assets to be so transferred or utilized in a
business line or segment to be so discontinued, when combined with all other
assets transferred, and all other assets utilized in all other business lines
or segments discontinued, during such Fiscal Quarter and the immediately preceding three Fiscal Quarters, constituted more than 20%
of Consolidated Total Assets at the end of the fourth Fiscal Quarter
immediately preceding such Fiscal Quarter.

39

SECTION
5.11.  Use of Proceeds.  The proceeds of the Loans shall be used by
the Borrower to provide for working capital, to finance capital expenditures,
to finance Investments permitted under Section 5.06, and for the other general
corporate purposes of the Borrower and its Subsidiaries.  In no event shall any portion of the
proceeds of the Loans  be used by the
Borrower (i) except for Permitted Acquisitions, in connection with any tender
offer for, or other acquisition of, stock of any corporation with a view
towards obtaining control of such other corporation, (ii) directly or indirectly,
for the purpose, whether immediate, incidental or ultimate, of purchasing or
carrying any Margin Stock other than the common stock or other capital stock of
the Borrower, or (iii) for any purpose in violation of any applicable law or
regulation.

SECTION
5.12.  Compliance with
Laws; Payment of Taxes.  The
Borrower will, and will cause each of its Subsidiaries to, comply in all
material respects with applicable laws (including but not limited to ERISA),
regulations and similar requirements of governmental authorities (including but
not limited to PBGC), except where the necessity of such compliance is being
contested in good faith through appropriate proceedings or where noncompliance
would not have or create a reasonable possibility of causing a Material Adverse
Effect.  The Borrower will, and will
cause each of its Subsidiaries to, pay promptly when due, giving regard for
any  extensions obtained, all taxes,
assessments, governmental charges, claims for labor, supplies, rent and other
obligations which, if unpaid, might become a lien against the property of
either the Borrower or any Subsidiary, except liabilities being contested in
good faith and against which, if requested by the Banks, either the Borrower or
such Subsidiary will set up reserves in accordance with GAAP.

SECTION
5.13.  Insurance.  The Borrower will maintain, and will cause
each of its Subsidiaries to maintain (either in the name of the Borrower or in
such Subsidiary's own name), with financially sound and reputable insurance
companies, insurance on all its property in at least such amounts and against
at least such risks as are usually insured against in the same general area by
companies of established repute engaged in the same or similar business,
subject to the Borrower's right to self‐insure with respect to loss or
damage to property in an amount reasonably acceptable to the Banks.

SECTION
5.14.  Change in Fiscal
Year.  The Borrower shall give the
Banks at least 30 day's prior written notice of any change in the determination
of its Fiscal Year.

SECTION
5.15.  Maintenance of
Property.  Subject to the rights of
the Borrower or any Subsidiary to discontinue certain operations under
Section 5.09 or 5.10, the Borrower shall, and shall cause each Subsidiary
to, maintain all of its properties and assets in good working order, ordinary
wear and tear and obsolescence excepted (excluding losses due to fully insured,
subject to commercially reasonable deductibles, casualties).

SECTION
5.16.  Environmental
Notices.  The Borrower shall furnish
to the Banks prompt written notice of all Environmental Liabilities, pending, threatened
or anticipated Environmental Proceedings, Environmental Notices, Environmental
Judgments and Orders, and Environmental Releases at, on, in, under or in any
way affecting the Properties or any adjacent property
which would have a Material Adverse Effect, and all relevant facts, events, or
conditions relating thereto.

40

SECTION
5.17.  Environmental
Matters.  The Borrower will not, nor
will it permit any Third Party to, use, produce, manufacture, process, treat,
recycle, generate, store, dispose of, manage at, or otherwise handle, or ship
or transport to or from the Properties any Hazardous Materials except for
Hazardous Materials such as cleaning solvents, combustion enhancers, pesticides
and other materials used, produced, manufactured, processed, treated, recycled,
generated, stored, disposed, managed, or otherwise handled in the ordinary
course of business in compliance with all applicable Environmental
Requirements.

SECTION
5.18.  Environmental
Release.  The Borrower agrees that
upon the occurrence of an Environmental Release which would have a Material
Adverse Effect and which violates any Environmental Requirement it will
promptly investigate the extent of, and take appropriate action to remediate
such Environmental Release, whether or not ordered or otherwise directed to do so
by any Environmental Authority.

SECTION
5.19.  Debt of Subsidiaries.  The Borrower shall not permit any Subsidiary
to incur any Debt except for (i) Debt owed by a Subsidiary to the Borrower or
another Subsidiary, (ii) Debt deemed incurred in connection with an Asset Securitization
permitted under Section 5.10; (iii) (A) Debt of Subsidiaries arising in
connection with the Summerville City IRB and the Catoosa Co. IRB and incurrence
of reimbursement obligations with respect to the Letters of Credit and (B)
other Debt of Subsidiaries arising in connection with the issuance of bonds by
governmental authorities so long as such Debt is supported by a letter of
credit issued by a financial institution for the benefit of the Borrower and
the Borrower is obligated to such financial institution under a reimbursement
agreement for the reimbursement of amounts drawn under such letter of credit;
and (iv) in addition to Debt incurred under clauses (i) through (iii) of this
Section, other Debt of Subsidiaries not exceeding in the aggregate amount
outstanding at any time 15% of Consolidated Net Worth.

ARTICLE
VI

DEFAULTS

SECTION
6.01.  Events of Default.  If one or more of the following events
("Events of Default") shall have occurred and be continuing:

(a)               
the Borrower shall fail to pay when due any principal or any interest
on any Loan or any fee or other amount payable hereunder within 5 Domestic
Business Days after such principal, interest, fee or other amount shall become
due (except at maturity on the applicable Termination Date); or

(b)              
the Borrower shall fail to observe or perform any covenant
contained in Sections 5.02(ii), 5.03 through 5.11, inclusive, or 5.19; or

(c)               
the Borrower shall fail to observe or perform any covenant or
agreement contained or incorporated by reference in this Agreement (other than
those covered by paragraph (a) or (b) above) and such failure shall not have
been cured within 30 days after the earlier to occur of (i) written notice
thereof has been given to the Borrower by the Administrative Agent at the
request of any Bank or (ii) the Borrower otherwise becomes aware of any such
failure; or

41

(d)              
any representation, warranty, certification or statement made
by the Borrower in Article IV of this Agreement or in any certificate,
financial statement or other document delivered pursuant to this Agreement or
any of the other Loan Documents shall prove to have been incorrect or
misleading in any material respect when made (or deemed made); or

(e)               
the Borrower or any Subsidiary shall fail to make any payment
in respect of Debt in excess of $25,000,000 in the aggregate outstanding (other
than the Notes or pursuant to any of the other Loan Documents) when due, and
such failure shall continue following any applicable grace period; or

(f)                
any event or condition shall occur which results in the
acceleration of the maturity of Debt in excess of $25,000,000 in the aggregate
outstanding of the Borrower or any Subsidiary (including, without limitation,
any "put" of such Debt to the Borrower or any Subsidiary) or enables
or, with the giving of notice or lapse of time or both, would enable, the
holders of such Debt or any Person acting on such holders' behalf to accelerate
the maturity thereof (including, without limitation, any "put" of
such Debt to the Borrower or any Subsidiary); or

(g)               
the Borrower or any Material Subsidiary shall commence a
voluntary case or other proceeding seeking liquidation, reorganization or other
relief with respect to itself or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, or shall consent to any such relief or to the
appointment of or taking possession by any such official in an involuntary case
or other proceeding commenced against it, or shall make a general assignment
for the benefit of creditors, or shall fail generally to pay its debts as they
become due, or shall take any corporate action to authorize any of the
foregoing; or

(h)               
an involuntary case or other proceeding shall be commenced
against the Borrower or any Material Subsidiary seeking liquidation,
reorganization or other relief with respect to it or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of it or any substantial part of its property, and such
involuntary case or other proceeding shall remain undismissed and unstayed for
a period of 60 days; or an order for relief shall be entered against the
Borrower or any Material Subsidiary under the federal bankruptcy laws as now or
hereafter in effect; or

(i)                 
the Borrower or any member of the Controlled Group shall fail
to pay when due any material amount which it shall have become liable to pay to
the PBGC or to a Plan under Title IV of ERISA; or notice of intent to
terminate a Plan or Plans (other than pursuant to a standard termination) shall
be filed under Title IV of ERISA by the Borrower, any member of the Controlled
Group, any plan administrator or any combination of the foregoing; or the PBGC
shall institute proceedings under Title IV of ERISA to terminate or to cause a
trustee to be appointed to administer any such Plan or Plans or a proceeding
shall be instituted by a fiduciary of any such Plan or Plans to enforce Section
515 or 4219(c)(5) of ERISA and such proceeding shall not have been dismissed
within 30 days thereafter; or a condition shall exist by reason of which the
PBGC would be entitled to obtain a decree adjudicating that any such Plan or
Plans must be terminated; or

42

(j)                
one or more judgments or orders for the payment of money in an
aggregate amount in excess of $25,000,000 (exclusive of insurance coverage if
any insurer shall have acknowledged such coverage in writing) shall be rendered
against the Borrower or any Material Subsidiary and such judgment or order
shall continue unsatisfied and unstayed for a period of 30 days; or

(k)              
one or more federal tax liens securing an aggregate amount in
excess of $5,000,000 shall be filed against the Borrower or any Material
Subsidiary under Section 6323 of the Code or a lien of the PBGC shall be filed
against the Borrower or any Material Subsidiary under Section 4068 of ERISA and
in either case such lien shall remain undischarged for a period of 25 days
after the date of filing; or

(l)                 
(i) any Person or two or more Persons acting in concert shall
have acquired, after the Closing Date, beneficial ownership (within the meaning
of Rule 13d‐3 of the Securities and Exchange Commission under the Securities
Exchange Act of 1934) of 30% or more of the outstanding shares of the voting
stock of the Borrower; or (ii) as of any date following the Closing Date a
majority of the Board of Directors of the Borrower consists of individuals who
were not either (A) directors of the Borrower, as appropriate, as of the
corresponding date of the previous year, (B) selected or nominated to become
directors by the Board of Directors of the Borrower of which a majority
consisted of individuals described in clause (A), or (C) selected or nominated
to become directors by the Board of Directors of the Borrower of which a
majority consisted of individuals described in clause (A) and individuals
described in clause (B); or

(m)             
an "Event of Default" shall occur under any of the
other Loan Documents; or

(n)               
(i) any of the Loan Documents shall cease to be enforceable,
or (ii) the Borrower shall assert that any Loan Document shall cease to be
enforceable.

43

then, and in every such event,
(i) the Administrative Agent shall, if requested by the Required Banks by
notice to the Borrower terminate the Commitments and they shall thereupon
terminate, and (ii) the Administrative Agent shall, if requested by the
Required Banks by notice to the Borrower declare the Notes (together with
accrued interest thereon) to be, and the Notes shall thereupon become,
immediately due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by the Borrower together
with interest at the Default Rate accruing on the principal amount thereof from
and after the date of such Event of Default; provided that if any Event
of Default specified in paragraph (g) or (h) above occurs with respect to the
Borrower, without any notice to the Borrower or any other act by the Administrative
Agent or the Banks, the Commitments shall thereupon terminate and the Notes
(together with accrued interest thereon) shall become immediately due and
payable without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Borrower together with interest thereon at
the Default Rate accruing on the principal amount thereof from and after the
date of such Event of Default. 
Notwithstanding the foregoing, each of the Banks shall have available to
it all other remedies at law or equity.

SECTION
6.02.  Notice of Default.

The Administrative Agent shall give notice to the Borrower
of any Default under Section 6.01(c) promptly upon being requested to do so by
any Bank and shall thereupon notify all Banks thereof.

ARTICLE
VII

THE AGENT

SECTION
7.01.  Appointment; Powers
and Immunities.

Each Bank hereby irrevocably appoints and
authorizes the Administrative Agent to act as its agent hereunder and under the
other Loan Documents with such powers as are specifically delegated to the
Administrative Agent by the terms hereof and thereof, together with such other
powers as are reasonably incidental thereto. 
The Administrative Agent: (a) shall have no duties or responsibilities
except as expressly set forth in this Agreement and the other Loan Documents,
and shall not by reason of this Agreement or any other Loan Document be a
trustee for any Bank; (b) shall not be responsible to the Banks for any
recitals, statements, representations or warranties contained in this Agreement
or any other Loan Document, or in any certificate or other document referred to
or provided for in, or received by any Bank under, this Agreement or any other
Loan Document, or for the validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document or any other
document referred to or provided for herein or therein or for any failure by
the Borrower to perform any of its obligations hereunder or thereunder;
(c) shall not be required to initiate or conduct any litigation or
collection proceedings hereunder or under any other Loan Document except to the
extent requested by the Required Banks, and then only on terms and conditions
satisfactory to the Administrative Agent, and (d) shall not be responsible
for any action taken or omitted to be taken by it hereunder or under any other
Loan Document or any other document or instrument referred to or provided for
herein or therein or in connection herewith or therewith, except for its own
gross negligence or willful misconduct. 
The Administrative Agent may employ agents and attorneys‐in‐fact
and shall not be responsible for the negligence or misconduct of any such
agents  or attorneys‐in‐fact
selected by it with reasonable care. 
The provisions of this Article VII are solely for the benefit of the
Administrative Agent and the Banks, and the Borrower shall not have any rights
as a third party beneficiary of any of the provisions hereof (other than
Section 7.10).  In performing its
functions and duties under this Agreement and under the other Loan Documents,
the Administrative Agent shall act solely as agent of the Banks and does not
assume and shall not be deemed to have assumed any obligation towards or
relationship of agency or trust with or for the Borrower.  The duties of the Administrative Agent shall
be ministerial and administrative in nature, and the Administrative Agent shall
not have by reason of this Agreement or any other Loan Document a fiduciary
relationship in respect of any Bank.

44

SECTION
7.02.  Reliance by
Administrative Agent.

The Administrative Agent shall be entitled to
rely upon any certification, notice or other communication (including any
thereof by telephone, telecopier, telegram or cable) believed by it to be
genuine and correct and to have been signed or sent by or on behalf of the
proper Person or Persons, and upon advice and statements of legal counsel,
independent accountants or other experts selected by the Administrative
Agent.  As to any matters not expressly
provided for by this Agreement or any other Loan Document, the Administrative
Agent shall in all cases be fully protected in acting, or in refraining from
acting, hereunder and thereunder in accordance with instructions signed by the
Required Banks, and such instructions of the Required Banks in any action taken
or failure to act pursuant thereto shall be binding on all of the Banks.

SECTION
7.03.  Defaults.

The Administrative Agent shall not be deemed to
have knowledge of the occurrence of a Default or an Event of Default (other
than the nonpayment of principal of or interest on the Loans) unless the
Administrative Agent has received notice from a Bank or the Borrower specifying
such Default or Event of Default and stating that such notice is a "Notice
of Default".  In the event that the
Administrative Agent receives such a notice of the occurrence of a Default or
an Event of Default, the Administrative Agent shall give prompt notice thereof
to the Banks.  The Administrative Agent shall (subject to
Section 9.06) take such action hereunder with respect to such Default
or Event of Default as shall be directed by the Required Banks, provided
that, unless and until the Administrative Agent shall have received such
directions, the Administrative Agent may (but shall not be obligated
to) take such action, or refrain from taking such action, with respect to
such Default or Event of Default as it shall deem advisable in the best
interests of the Banks.

SECTION
7.04.  Rights of
Administrative Agent and its Affiliates as a Bank.

With respect to the Loans made by the
Administrative Agent and any Affiliate of the Administrative Agent, Wachovia in
its capacity as a Bank hereunder and any Affiliate of the Administrative Agent
or such Affiliate in its capacity as a Bank hereunder shall have the same
rights and powers hereunder as any other Bank and may exercise the same as
though Wachovia were not acting as the Administrative Agent, and the term
"Bank" or "Banks" shall, unless the context otherwise
indicates, include Wachovia in its individual capacity and any Affiliate of the
Administrative Agent in its individual capacity.  The Administrative Agent and any Affiliate of the Administrative
Agent may (without having to account therefor to any Bank) accept deposits
from, lend money to and generally engage in any kind of banking, trust or other
business with the Borrower (and any of the Borrower's Affiliates) as if
Wachovia were not acting as the Administrative Agent, and the Administrative
Agent and any Affiliate of the Administrative Agent may accept fees and other
consideration from the Borrower (and any of the Borrower's Affiliates) (in addition
to any agency fees and arrangement fees heretofore agreed to between the
Borrower and the Administrative Agent) for services in connection with
this Agreement or any other Loan Document or otherwise without having to
account for the same to the Banks.

45

SECTION
7.05.  Indemnification.

Each Bank severally agrees to indemnify the
Administrative Agent, to the extent the Administrative Agent shall not have
been reimbursed by the Borrower, ratably in accordance with its Commitment, for
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses (including, without limitation, counsel fees
and disbursements) or disbursements of any kind and nature whatsoever
which may be imposed on, incurred by or asserted against the Administrative
Agent in any way relating to or arising out of this Agreement or any other Loan
Document or any other documents contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby (excluding, unless
an Event of Default has occurred and is continuing, the normal administrative
costs and expenses incident to the performance of its agency duties
hereunder) or the enforcement of any of the terms hereof or thereof or any
such other documents; provided that no Bank shall be liable for any of
the foregoing to the extent they arise from the gross negligence or willful
misconduct of the Administrative Agent.  If any indemnity furnished to the
Administrative Agent for any purpose shall, in the opinion of the
Administrative Agent, be insufficient or become impaired, the Administrative
Agent may call for additional indemnity and cease, or not commence, to do the
acts indemnified against until such additional indemnity is furnished. 
 

SECTION
7.06.  Consequential
Damages.

THE AGENT SHALL NOT BE RESPONSIBLE OR LIABLE TO
ANY BANK, THE BORROWER OR ANY OTHER PERSON OR ENTITY FOR ANY PUNITIVE,
EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF THIS
AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.

SECTION
7.07.  Payee of Note
Treated as Owner.

The Administrative Agent may deem and treat
each Person in whose name a Loan is registered as the owner thereof for all
purposes hereof unless and until a written notice of the assignment or transfer
thereof shall have been filed with the Administrative Agent and the provisions
of Section 9.08(c) have been satisfied.  Any requests, authority or consent of any Person who at the time
of making such request or giving such authority or consent is the holder of any
Note shall be  conclusive and binding on
any subsequent holder, transferee or assignee of that Note or of any Note or
Notes issued in exchange therefor or replacement thereof.

SECTION
7.08.  Nonreliance on
Administrative Agent and Other Banks.

Each Bank agrees that it has, independently and
without reliance on the Administrative Agent or any other Bank, and based on
such documents and information as it has deemed appropriate, made its own
credit analysis of the Borrower and decision to enter into this Agreement and
that it will, independently and without reliance upon the Administrative Agent
or any other Bank, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own analysis and decisions in
taking or not taking action under this Agreement or any of the other Loan
Documents.  The Administrative Agent
shall not be required to keep itself (or any Bank) informed as to the
performance or observance by the Borrower of this Agreement or any of the other
Loan Documents or any other document referred to or provided for herein or
therein or to inspect the properties or books of the Borrower or any other
Person.  Except for notices, reports and
other documents and information expressly required to be furnished to the Banks
by the Administrative Agent hereunder or under the other Loan Documents, the
Administrative Agent shall not have any duty or responsibility to provide any
Bank with any credit or other information concerning the affairs, financial
condition or business of the Borrower or any other Person (or any of their
Affiliates) which may come into the possession of the Administrative
Agent.

46

SECTION
7.09.  Failure to Act.

Except for action expressly required of the
Administrative Agent hereunder or under the other Loan Documents, the
Administrative Agent shall in all cases be fully justified in failing or
refusing to act hereunder and thereunder unless it shall receive further
assurances to its satisfaction by the Banks of their indemnification
obligations under Section 7.05 against any and all liability and expense
which may be incurred by the Administrative Agent by reason of taking,
continuing to take, or failing to take any such action.

SECTION
7.10.  Resignation or
Removal of Administrative Agent.

Subject to the appointment and acceptance of a
successor Administrative Agent as provided below, the Administrative Agent may
resign at any time by giving notice thereof to the Banks and the Borrower and
the Administrative Agent may be removed at any time with or without cause by
the Required Banks.  Upon any such
resignation or removal, the Required Banks shall have the right to appoint a
successor Administrative Agent.  If no
successor Administrative Agent shall have been so appointed by the Required
Banks and shall have accepted such appointment within 30 days after the retiring
Administrative Agent's notice of resignation or the Required Banks' removal of
the retiring Administrative Agent, then the retiring Administrative Agent may,
on behalf of the Banks, appoint a successor Administrative Agent.  Any successor Administrative Agent shall be
a lender which has a combined capital and surplus of at least
$500,000,000.  Upon the acceptance of
any appointment as Administrative Agent hereunder by a successor Administrative
Agent, such successor Administrative Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder.  After any retiring Administrative Agent's resignation or removal
hereunder as Administrative Agent, the provisions of this Article VII shall
continue in effect for its benefit in respect of any actions taken or omitted
to be taken by it while it was acting as the Administrative Agent hereunder.  The appointment of any successor
Administrative Agent shall, provided no Default of Event of Default exists, be
subject to the Borrower's prior written approval.

47

ARTICLE
VIII

CHANGE IN CIRCUMSTANCES; COMPENSATION

SECTION
8.01.  Basis for
Determining Interest Rate Inadequate or Unfair.  If on or prior to the first day of any Interest Period:

(a)               
the Administrative Agent determines that deposits in Dollars
(in the applicable amounts) are not being offered in the relevant market for
such Interest Period, or

(b)              
the Required Banks advise the Administrative Agent that the
London Interbank Offered Rate as determined by the Administrative Agent will
not adequately and fairly reflect the cost to such Banks of funding the
relevant Euro‐Dollar Loans for such Interest Period,

the Administrative Agent shall forthwith give notice
thereof to the Borrower and the Banks, whereupon until the Administrative Agent
notifies the Borrower that the circumstances giving rise to such suspension no
longer exist (which the Administrative Agent agrees to do promptly upon such
circumstances ceasing to exist), the obligations of the Banks to make any Euro‐Dollar
Loan specified in such notice shall be suspended.  Unless the Borrower notifies the Administrative Agent at least 2
Domestic Business Days before the date of any Borrowing of such Euro‐Dollar
Loan for which a Notice of Borrowing has previously been given that it elects
not to borrow on such date, such Borrowing shall instead be made as a Base Rate
Borrowing.

SECTION
8.02.  Illegality.  If, after the date hereof, the adoption of
any applicable law, rule or regulation, or any change therein, or any change in
the interpretation or administration thereof by any governmental authority,
central bank or comparable agency charged with the interpretation or
administration thereof (any such agency being referred to as an
"Authority" and any such event being referred to as a "Change of
Law"), or compliance by any Bank (or its Lending Office) with any request
or directive (whether or not having the force of law) of any Authority shall make
it unlawful or impossible for any Bank (or its Lending Office) to make,
maintain or fund its Euro‐Dollar Loans, and such Bank shall so notify the
Administrative Agent, the Administrative Agent shall forthwith give notice
thereof to the other Banks and the Borrower, whereupon until such Bank notifies
the Borrower and the Administrative Agent that the circumstances giving rise to
such suspension no longer exist (which the Administrative Agent agrees to do
promptly upon such circumstances ceasing to exist), the obligation of such Bank
to make Euro‐Dollar Loans, shall be suspended.  Before giving any notice to the Administrative Agent pursuant to
this Section, such Bank shall designate a different Lending Office if such
designation will avoid the need for giving such notice and will not, in the
judgment of such Bank, be otherwise materially disadvantageous to such
Bank.  If such Bank shall determine that
it may not lawfully continue to maintain and fund any of its outstanding Euro‐Dollar
Loans to maturity and shall so specify in such notice, the Borrower shall
immediately prepay in full the then outstanding principal amount of each Euro‐Dollar
Loan of such Bank, together with accrued interest thereon and any amount due
such Bank pursuant to Section 8.05(a).  Concurrently
with prepaying each such Euro‐Dollar Loan, the Borrower shall borrow a
Base Rate Loan in an equal principal amount from such Bank (on which interest
and principal shall be payable contemporaneously
with the related Euro‐Dollar Loans of the other Banks), and such Bank
shall make such a Base Rate Loan.

48

SECTION
8.03.  Increased Cost and
Reduced Return.   (a)  If
after the date hereof, a Change of Law or compliance by any Bank (or its
Lending Office) with any request or directive (whether or not having the force
of law) of any Authority:

(i)                 
shall subject any Bank (or its Lending Office) to any tax,
duty or other charge with respect to its Euro‐Dollar Loans, its Note or
its obligation to make Euro‐Dollar Loans, or shall change the basis of
taxation of payments to any Bank (or its Lending Office) of the principal of or
interest on its Euro‐Dollar Loans or any other amounts due under this
Agreement in respect of its Euro‐Dollar Loans or its obligation to make
Euro‐Dollar Loans (except for changes in the rate of tax on the overall
net income of such Bank or its Lending Office imposed by the jurisdiction in
which such Bank's principal executive office or Lending Office is located); or

(ii)               
shall impose, modify or deem applicable any reserve, special
deposit or similar requirement (including, without limitation, any such
requirement imposed by the Board of Governors of the Federal Reserve System,
but excluding with respect to any Euro‐Dollar Loan any such requirement
included in an applicable Euro‐Dollar Reserve Percentage) against assets
of, deposits with or for the account of, or credit extended by, any Bank (or
its Lending Office); or

(iii)              
shall impose on any Bank (or its Lending Office) or on the
United States market for certificates of deposit or the London interbank market
any other condition affecting its Euro‐Dollar Loans, its Note or its
obligation to make Euro‐Dollar Loans;

and the result of any of the foregoing is to increase the
cost to such Bank (or its Lending Office) of making or maintaining any Euro‐Dollar
Rate Loan, or to reduce the amount of any sum received or receivable by such
Bank (or its Lending Office) under this Agreement or under its Notes with
respect thereto, by an amount deemed by such Bank to be material, then, within
15 days after demand by such Bank (with a copy to the Administrative Agent),
the Borrower shall pay to such Bank such additional amount or amounts as will
compensate such Bank for such increased cost or reduction.

(b)              
If any Bank shall have determined that after the date hereof
the adoption of any applicable law, rule or regulation regarding capital
adequacy, or any change therein, or any change in the interpretation or
administration thereof, or compliance by any Bank (or its Lending Office) with
any request or directive regarding capital adequacy (whether or not having the
force of law) of any Authority, has or would have the effect of reducing the
rate of return on such Bank's capital as a consequence of its obligations
hereunder to a level below that which such Bank could have achieved but for
such adoption, change or compliance (taking into consideration such Bank's
policies with respect to capital adequacy) by an amount deemed by such Bank to
be material, then from time to time, within 15 days after demand by such Bank,
the Borrower shall pay to such Bank such additional amount or amounts as will
compensate such Bank for such reduction.

49

(c)               
Each Bank will promptly notify the Borrower and the
Administrative Agent of any event of which it has knowledge, occurring after
the date hereof, which will entitle such Bank to compensation pursuant to this
Section and will designate a different Lending Office if such designation will
avoid the need for, or reduce the amount of, such compensation and will not, in
the judgment of such Bank, be otherwise materially disadvantageous to such
Bank.  A certificate of any Bank
claiming compensation under this Section and setting forth the additional
amount or amounts to be paid to it hereunder shall be conclusive in the absence
of manifest error.  In determining such
amount, such Bank may use any reasonable averaging and attribution methods.

(d)              
The provisions of this Section 8.03 shall be applicable with
respect to any Participant, Assignee or other Transferee (unless the date of
any such assignment or transfer, a condition listed under Section 8.02 or
8.03 existed with respect to any such Participant, Assignee or other
Transferee), and any calculations required by such provisions shall be made
based upon the circumstances of such Participant, Assignee or other Transferee.

SECTION
8.04.  Base Rate Loans
Substituted for Euro‐Dollar Loans. 
If (i) the obligation of any Bank to make or maintain Euro‐Dollar
Loans has been suspended pursuant to Section 8.02 or (ii) any Bank has demanded
compensation under Section 8.03, and the Borrower shall, by at least 5 Euro‐Dollar
Business Days' prior notice to such Bank through the Administrative Agent, have
elected that the provisions of this Section shall apply to such Bank, then,
unless and until such Bank notifies the Borrower that the circumstances giving
rise to such suspension or demand for compensation no longer apply:

(a)               
all Loans which would otherwise be made by such Bank as Euro‐Dollar
Loans, as the case may be, shall be made instead as Base Rate Loans; provided,
that interest and principal on such Loans shall be payable contemporaneously
with the related Euro‐Dollar Loans of the other Bank), and

(b)              
after each of its Euro‐Dollar Loan, has been repaid, all
payments of principal which would otherwise be applied to repay such Euro‐Dollar
Loans shall be applied to repay its Base Rate Loans instead.

SECTION
8.05.  Compensation.  Upon the request of any Bank, delivered to
the Borrower and the Administrative Agent, the Borrower shall pay to such Bank
such amount or amounts as shall compensate such Bank for any loss, cost or
expense actually incurred by such Bank and not compensated pursuant to
Section 8.03 as a result of:

(a)               
any payment or prepayment (pursuant to Section 2.09(b),
Section 8.02 or otherwise) of a Euro‐Dollar Loan on a date other than the
last day of an Interest Period for such Euro‐Dollar Loan; or

(b)              
any failure by the Borrower to prepay a Euro‐Dollar Loan
on the date for such prepayment specified in the relevant notice of prepayment
hereunder; or

50

(c)               
any failure by the Borrower to borrow a Euro‐Dollar Loan
on the date for the Euro‐Dollar Borrowing of which such Euro‐Dollar
Loan is a part specified in the applicable Notice of Borrowing delivered
pursuant to Section 2.02;

such compensation to include, without limitation, an
amount equal to the excess, if any, of (x) the amount of interest which would
have accrued on the amount so paid or prepaid or not prepaid or borrowed for
the period from the date of such payment, prepayment or failure to prepay or
borrow to the last day of the then current Interest Period for such Euro‐Dollar
Loan (or, in the case of a failure to prepay or borrow, the Interest Period for
such Euro‐Dollar Loan which would have commenced on the date of such
failure to prepay or borrow) at the applicable rate of interest for such Euro‐Dollar
Loan provided for herein over (y) the amount of interest (as reasonably
determined by such Bank) such Bank would have paid on deposits in Dollars of
comparable amounts having terms comparable to such period placed with it by
leading banks in the London interbank market.

SECTION
8.06.  Replacement of Banks.  If any Bank (an "Affected Bank")
makes demand for amounts owed under Section 8.03 (other than due to any change
in the Eurodollar Reserve Percentage), or gives notice under Section 8.01 or
8.02 that it can no longer participate in Euro-Dollar Loans, then in each case
the Borrower shall have the right, if no Default or Event of Default exists,
and subject to the terms and conditions set forth in Section 9.08(c) with
respect to assignments of Loans, to designate an Assignee (a "Replacement
Bank") to purchase the Affected Bank's share of outstanding Loans and all
other obligations hereunder and to assume the Affected Bank's obligations to
the Borrower under this Agreement; provided, that, any
Replacement Bank (and, in any event, may not be an Affiliate of the
Borrower).  Subject to the foregoing,
the Affected Bank agrees to assign without recourse to the Replacement Bank its
share of outstanding Loans and its Commitment, and to delegate to the Replacement
Bank its obligations to the Borrower under this Agreement.  Upon such sale and delegation by the
Affected Bank and the purchase and assumption by the Replacement Bank, and
compliance with the provisions of Section 9.08(c), the Affected Bank shall
cease to be a "Bank" hereunder and the Replacement Bank shall become
a "Bank" under this Agreement; provided, however, that
any Affected Bank shall continue to be entitled to the indemnification
provisions contained elsewhere herein.

ARTICLE
IX

MISCELLANEOUS

SECTION
9.01.  Notices.  All notices, requests and other communications
to any party hereunder shall be in writing (including bank wire, telecopier or
similar writing) and shall be given to such party at its address or telecopier
number set forth on the signature pages hereof or such other address or
telecopier number as such party may hereafter specify for the purpose by notice
to each other party.  Each such notice,
request or other communication shall be effective (i) if given by telecopier,
when such telecopy is transmitted to the telecopier number specified in this
Section and the appropriate confirmation is received, (ii) if given by mail, 72
hours after such communication is deposited in the mails, certified or
registered mail, with first class postage prepaid, addressed as aforesaid or
(iii) if given by any other means, when delivered at the address specified in this Section; provided, that notices to the
Administrative Agent under Article II or Article VIII shall not be
effective until received.

51

SECTION
9.02.  No Waivers.  No failure or delay by the Administrative
Agent or any Bank in exercising any right, power or privilege hereunder or
under any Note or other Loan Document shall operate as a waiver thereof nor
shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies herein provided
shall be cumulative and not exclusive of any rights or remedies provided by
law.

SECTION
9.03.  Expenses;
Documentary Taxes.  The Borrower
shall pay (i) all out‐of‐pocket expenses of the Administrative
Agent, including reasonable fees and disbursements actually incurred of special
counsel for the Administrative Agent, in connection with the preparation of
this Agreement and the other Loan Documents, any waiver or consent hereunder or
thereunder or any amendment hereof or thereof and (ii) if a Default or an Event
of Default occurs, all out‐of‐pocket expenses incurred by the
Administrative Agent and the Banks, including reasonable fees and disbursements
of counsel, actually incurred in connection with such Default and collection
and other enforcement proceedings resulting therefrom, including out‐of‐pocket
expenses incurred in enforcing this Agreement and the other Loan
Documents.  The Borrower shall indemnify
the Administrative Agent and each Bank against any transfer taxes, documentary
taxes, assessments or charges made by any Authority by reason of the execution
and delivery of this Agreement or the other Loan Documents but not by reason of
any participation or assignment by the Banks, their successors or assigns.

SECTION
9.04.  Indemnification.  The Borrower shall indemnify the
Administrative Agent, the Banks and each Affiliate thereof and their respective
directors, officers, employees and agents (each, an "Indemnified
Party") from, and hold each of them harmless against, any and all losses,
liabilities, claims or damages to which any of them may become subject, insofar
as such losses, liabilities, claims or damages arise out of or result from any
actual or proposed use by the Borrower of the proceeds of any extension of
credit by any Bank hereunder or breach by the Borrower of this Agreement or any
other Loan Document or from any investigation, litigation (including, without
limitation, any actions taken by the Administrative Agent or any of the Banks
to enforce this Agreement or any of the other Loan Documents) or other
proceeding (including, without limitation, any threatened investigation or
proceeding) relating to the foregoing, and the Borrower shall reimburse the
Administrative Agent and each Bank, and each Affiliate thereof and their
respective directors, officers, employees and agents, upon demand for any
expenses (including, without limitation, legal fees) incurred in connection
with any such investigation or proceeding; but excluding any such losses, liabilities,
claims, damages or expenses (i) incurred by reason of the gross negligence or
willful misconduct of the Person to be indemnified or (ii) to the extent
arising directly out of or resulting directly from claims of one or more
Indemnified Parties against another Indemnified Party.

SECTION
9.05.  Sharing of Setoffs.  Each Bank agrees that if it shall, by
exercising any right of setoff or counterclaim or otherwise, receive payment of
a proportion of  the aggregate amount of
principal and interest owing with respect to the Note held by it which is
greater than the proportion received by any other Bank in respect of the
aggregate amount of all principal and interest owing with respect to the Note
held by such other Bank, the Bank receiving such
proportionately greater payment shall purchase such participations in the Notes
held by the other Banks owing to such other Banks, and such other adjustments
shall be made, as may be required so that all such payments of principal and
interest with respect to the Note held by the Bank owing to such other Banks
shall be shared by the Banks pro rata; provided that (i) nothing in this
Section shall impair the right of any Bank to exercise any right of setoff or
counterclaim it may have and to apply the amount subject to such exercise to the
payment of indebtedness of the Borrower other than its indebtedness under the
Notes, and (ii) if all or any portion of such payment received by the
purchasing Bank is thereafter recovered from such purchasing Bank, such
purchase from such other Banks shall be rescinded and such other Bank shall
repay to the purchasing Bank the purchase price of such participation to the
extent of such recovery together with an amount equal to such other Banks'
ratable share (according to the proportion of (x) the amount of such other
Banks' required repayment to (y) the total amount so recovered from the
purchasing Bank) of any interest or other amount paid or payable by the
purchasing Bank in respect of the total amount so recovered.  The Borrower agrees, to the fullest extent
it may effectively do so under applicable law, that any holder of a
participation in a Note, whether or not acquired pursuant to the foregoing
arrangements, may exercise rights of setoff or counterclaim and other rights
with respect to such participation as fully as if such holder of a
participation were a direct creditor of the Borrower in the amount of such
participation.

52

SECTION
9.06.  Amendments and
Waivers.   (a)  Any
provision of this Agreement, the Notes or any other Loan Documents may be
amended or waived if, but only if, such amendment or waiver is in writing and
is signed by the Borrower and the Required Banks (and, if the rights or duties
of the Administrative Agent are affected thereby, by the Administrative Agent);
provided that, no such amendment or waiver shall, unless signed by all
Banks, (i) change the Commitments of any Bank or subject any Bank to any
additional obligation, (ii) change the principal of or decrease the rate of
interest on any Loan or decrease any fees (other than fees payable to the
Administrative Agent) hereunder, (iii) extend the date fixed for any payment of
principal of or interest on any Loan or any fees hereunder, (iv) change the
amount of principal, interest or fees due on any date fixed for the payment
thereof, (v) change the percentage of the Commitments or of the aggregate
unpaid principal amount of the Notes, or the number of Banks, which shall be
required for the  Banks or any of them
to take any action under this Section or any other provision of this Agreement,
(vi) change the manner of application of any payments made under this Agreement
or the Notes, (vii) release or substitute all or any substantial part of the
collateral (if any) held as security for the Loans, or (viii) release any
Guarantee (if any) given to support payment of the Loans.

(b)              
The Borrower will not solicit, request or negotiate for or
with respect to any proposed waiver or amendment of any of the provisions of
this Agreement unless each Bank shall be informed thereof by the Borrower and
shall be afforded an opportunity of considering the same and shall be supplied
by the Borrower with sufficient information to enable it to make an informed
decision with respect thereto.  Executed
or true and correct copies of any waiver or consent effected pursuant to the
provisions of this Agreement shall be delivered by the Borrower to each Bank
forthwith following the date on which the same shall have been executed and
delivered by the requisite percentage of Banks.  The Borrower will not, directly or indirectly, pay or cause to be
paid any remuneration, whether by way of supplemental or additional interest,
fee or otherwise, to any Bank (in its capacity as such) as consideration for or
as an inducement to the entering into by such Bank of any waiver or amendment
of any of the terms and provisions of this Agreement unless such remuneration
is concurrently paid, on the same terms, ratably to each of the Banks.

53

SECTION
9.07.  No Margin Stock
Collateral.  Each of the Banks
represents to the Administrative Agent and each of the other Banks that it in
good faith is not, directly or indirectly (by negative pledge or otherwise),
relying upon any Margin Stock as collateral in the extension or maintenance of
the credit provided for in this Agreement.

SECTION
9.08.  Successors and
Assigns.   (a)  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns; provided that
the Borrower may not assign or otherwise transfer any of its rights under this
Agreement.

(b)              
Any Bank may at any time sell to one or more Persons (each a
"Participant") participating interests in any Loan owing to such
Bank, its Note, its Commitment hereunder or any other interest of such Bank
hereunder.  In the event of any such
sale by a Bank of a participating interest to a Participant, such Bank's
obligations under this Agreement shall remain unchanged, such Bank shall remain
solely responsible for the performance 
thereof, such Bank shall remain the holder of any such Note for all
purposes under this Agreement, and the Borrower and the Administrative Agent
shall continue to deal solely and directly with such Bank in connection with
such Bank's rights and obligations under this Agreement.  In no event shall a Bank that sells a
participation be obligated to the Participant to take or refrain from taking
any action hereunder except that such Bank may agree that it will not (except
as provided below), without the consent of the Participant, agree to (i) extend
any date fixed for the payment of principal of or interest on the related loan
or loans, (ii) the change of the amount of any principal, interest or fees due
on any date fixed for the payment thereof with respect to the related loan or
loans, (iii) the change of the principal of the related loan or loans, (iv) any
decrease in the rate at which either interest is payable thereon or (if the
Participant is entitled to any part thereof) commitment fee is payable
hereunder from the rate at which the Participant is entitled to receive
interest or commitment fee (as the case may be) in respect of such
participation, (v) the release or substitution of all or any substantial part
of the collateral (if any) held as security for the Loans, or (vi) the release
of any Guarantee (if any) given to support payment of the Loans.  Unless such Participant is a Related Fund
with respect to such Bank, each Bank selling a participating interest in any
Loan, Note, Commitment or other interest under this Agreement shall, within 10
Domestic Business Days of such sale, provide the Borrower and the
Administrative Agent with written notification stating that such sale has
occurred and identifying the Participant and the interest purchased by such
Participant.  The Borrower agrees that
each Participant shall be entitled to the benefits of Article VIII with respect
to its participation in Loans outstanding from time to time.

(c)               
Any Bank may at any time assign to one or more banks or
financial institutions (each an "Assignee") all, or a proportionate
part of all, of its rights and obligations under this Agreement and the Notes,
and such Assignee shall assume all such rights and obligations, pursuant to an
Assignment and Acceptance in the form attached hereto as Exhibit C,
executed by such Assignee and such transferor Bank and the Administrative
Agent; provided that (i) no interest may be sold by a Bank pursuant to this
paragraph (c) unless the Assignee shall agree to assume ratably equivalent
portions of the transferor Bank's Commitment, (ii) the amount of the Commitment
of the assigning Bank subject to such assignment (determined as of the
effective date of the assignment) shall be equal to $10,000,000 (or any larger
multiple of $1,000,000), and (iii) no interest may be sold by a Bank pursuant
to this paragraph (c) to any Assignee that is not then a Bank without the
consent of the Borrower and the Administrative Agent, which consent shall not
be unreasonably withheld or delayed, and (iv) a Bank may not have more than 2
Assignees that are not then Banks at any one time.  Each Bank agrees to notify the Agent who will notify the other
Banks of any assignment hereunder. Upon (A) execution of the Assignment and
Acceptance by such transferor Bank, such Assignee, the Administrative Agent (if
applicable) and the Borrower, (B) delivery of an executed copy of the
Assignment and Acceptance to the Borrower, and the Administrative Agent, and
(C) payment by such Assignee to such transferor Bank of an amount equal to the
purchase price agreed between such transferor Bank and such Assignee, such Assignee
shall for all purposes be a Bank party to this Agreement and shall have all the
rights and obligations of a Bank under this Agreement to the same extent as if
it were an original party hereto with a Commitment as set forth in such
instrument of assumption, and the transferor Bank shall be released from its
obligations hereunder to a corresponding extent, and no further consent or
action by the Borrower, the Banks or the Administrative Agent shall be
required.  Upon the consummation of any
transfer to an Assignee pursuant to this paragraph (c), the transferor Bank,
the Administrative Agent and the Borrower shall make appropriate arrangements
so that, if required, a new Note is issued to each of such Assignee and such
transferor Bank.

54

(d)              
Subject to the provisions of Section 9.09, the Borrower
authorizes each Bank to disclose to any Participant, Assignee or other
transferee (each a "Transferee") and any prospective Transferee any
and all financial information in such Bank's possession concerning the Borrower
which has been delivered to such Bank by the Borrower pursuant to this
Agreement or which has been delivered to such Bank by the Borrower in
connection with such Bank's credit evaluation prior to entering into this
Agreement.

(e)               
No Transferee shall be entitled to receive any greater payment
under Section 8.03 than the transferor Bank would have been entitled to receive
with respect to the rights transferred, unless such transfer is made with the
Borrower's prior written consent or by reason of the provisions of Section 8.02
or 8.03 requiring such Bank to designate a different Lending Office under
certain circumstances or at a time when the circumstances giving rise to such
greater payment did not exist.

SECTION
9.09.  Confidentiality.  Each Bank agrees to exercise its best efforts
to keep any information delivered or made available by the Borrower to it which
is clearly indicated to be confidential information, confidential from any one
other than persons employed or retained by such Bank who are or are expected to
become engaged in evaluating, approving, structuring or administering the
Loans; provided, however that nothing herein shall prevent any
Bank from disclosing such information (i) to any other Bank, (ii) upon the
order of any court or administrative agency, (iii) upon the request or demand
of any regulatory agency or authority having jurisdiction over such Bank, (iv)
which has been publicly disclosed, (v) to the extent reasonably required in
connection with any litigation to which the Administrative Agent, any Bank or their
respective Affiliates may be a party, (vi) to the extent reasonably required in
connection with the exercise of any remedy hereunder, (vii) to such Bank's
legal counsel and independent auditors and (viii) to any actual or proposed
Participant, Assignee or other Transferee of all or
part of its rights hereunder which has agreed in writing to be bound by the
provisions of this Section 9.09. 
Notwithstanding anything herein to the contrary, "Information"
shall not include, and each Bank may disclose to any and all persons, without
limitation of any kind, any information with respect to the U.S. federal income
tax treatment and U.S. federal income tax structure of the transactions
contemplated hereby and all materials of any kind (including opinions or other
tax analysis) that are provided to such Bank relating to such tax treatment and
tax structure.

55

SECTION
9.10.  Representation by
Banks.  Each Bank hereby represents
that it is a commercial lender or financial institution which makes loans in
the ordinary course of its business and that it will make its Loans hereunder
for its own account in the ordinary course of such business; provided,
however that, subject to Section 9.08, the disposition of the Note or Notes
held by that Bank shall at all times be within its exclusive control.

SECTION
9.11.  Obligations Several.  The obligations of each Bank hereunder are
several, and no Bank shall be responsible for the obligations or commitment of
any other Bank hereunder.  Nothing
contained in this Agreement and no action taken by Banks pursuant hereto shall
be deemed to constitute the Banks to be a partnership, an association, a joint
venture or any other kind of entity. 
The amounts payable at any time hereunder to each Bank shall be a
separate and independent debt, and each Bank shall be entitled to protect and
enforce its rights arising out of this Agreement or any other Loan Document,
subject to any restrictions requiring actions to be taken upon the consent of
the Required Banks, and it shall not be necessary for any other Bank to be
joined as an additional party in any proceeding for such purpose.

SECTION
9.12.  Georgia Law.  This Agreement and each Note shall be
construed in accordance with and governed by the law of the State of Georgia.

SECTION
9.13.  Interpretation.  No provision of this Agreement or any of the
other Loan Documents shall be construed against or interpreted to the
disadvantage of any party hereto by any court or other governmental or judicial
authority by reason of such party having or being deemed to have structured or
dictated such provision.

SECTION
9.14.  WAIVER OF JURY
TRIAL; CONSENT TO JURISDICTION.  TO
THE FULLEST EXTENT PERMITTED BY LAW, THE BORROWER (A) THE AGENT AND EACH OF THE
BANKS IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS, OR
ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, (B) SUBMITS TO THE
NONEXCLUSIVE PERSONAL JURISDICTION IN THE STATE OF GEORGIA, THE COURTS THEREOF
AND THE UNITED STATES DISTRICT COURTS SITTING THEREIN, FOR THE ENFORCEMENT OF
THIS AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS, (C) WAIVES ANY AND ALL
PERSONAL RIGHTS UNDER THE LAW OF ANY JURISDICTION TO OBJECT ON ANY BASIS
(INCLUDING, WITHOUT LIMITATION, INCONVENIENCE OF FORUM) TO JURISDICTION OR
VENUE WITHIN THE STATE OF GEORGIA FOR THE PURPOSE OF LITIGATION TO ENFORCE THIS
AGREEMENT, THE NOTES OR THE OTHER LOAN DOCUMENTS, AND (D) AGREES THAT SERVICE
OF PROCESS MAY BE MADE UPON IT IN THE MANNER PRESCRIBED
IN SECTION 9.01 FOR THE GIVING OF NOTICE TO THE BORROWER.  NOTHING HEREIN CONTAINED, HOWEVER, SHALL
PREVENT THE BANKS FROM BRINGING ANY ACTION OR EXERCISING ANY RIGHTS AGAINST ANY
SECURITY AND AGAINST THE BORROWER PERSONALLY, AND AGAINST ANY ASSETS OF THE
BORROWER WITHIN ANY OTHER STATE OR JURISDICTION.

56

SECTION
9.15.  Counterparts.  This Agreement may be signed in any number
of counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.  
 

[signatures on the following pages]

57

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

MOHAWK INDUSTRIES, INC.              (SEAL)

By:____________________________________ 

Title:

160 South Industrial Boulevard

Calhoun, Georgia  30703-7002

Attention:  Chief Financial Officer or
Treasurer

Telecopier number:  706-624-2052

Confirmation number:  706-624-2103

58

	
  COMMITMENTS:

  	
  WACHOVIA BANK, NATIONAL
  ASSOCIATION, as Administrative Agent and as a Bank                                         
   

  
	
  $100,000,000

  	
  By:
 Title:

  
	

  	
  Lending Office

  
  

  301 South College Street

  Charlotte, North Carolina 28288

  Attention:  ____________

  Telecopier number:  _______________

  Confirmation number:  ______________

  

59

 

	

   
	

  	
  SUNTRUST BANK

  
	
  $100,000,000

  	
  By:
 Title:

  
	

  	
  Lending Office

  

  
  SunTrust Bank,

  303 Peachtree Street, 3rd Floor

  Atlanta, Georgia 30308

  Telecopier number:  404-575-2594

  Confirmation number:  404-588-7033

  Attention:  Ken Bauchle, Vice
  President

  
	
  ____________

  TOTAL COMMITMENTS:

  	

  
	
  $200,000,000

  	

  

60

 

Exhibit A-1

NOTE

Atlanta, Georgia

As of _____________, 20__

For value received, MOHAWK INDUSTRIES, INC., a Delaware
corporation (the "Borrower"), promises to pay to the order of
________________________, (the "Bank"), for the account of its
Lending Office, the principal sum of ____________________________________
MILLION DOLLARS ($____________), or such lesser amount as shall equal the
unpaid principal amount of each  Loan
made by the Bank to the Borrower pursuant to the Credit Agreement referred to
below, on the dates and in the amounts provided in the Credit Agreement.  The Borrower promises to pay interest on the
unpaid principal amount of this Note on the dates and at the rate or rates
provided for in the Credit Agreement referred to below.  Interest on any overdue principal of and, to
the extent permitted by law, overdue interest on the principal amount hereof
shall bear interest at the Default Rate, as provided for in the Credit
Agreement.  All such payments of
principal and interest shall be made in lawful money of the United States in Federal
or other immediately available funds at the office of the Bank located at
________________, or such other address as may be specified from time to time
pursuant to the Credit Agreement.

All Loans made by the Bank, the respective maturities
thereof, the interest rates from time to time applicable thereto, and all
repayments of the principal thereof shall be recorded by the Bank and, prior to
any transfer hereof, endorsed by the Bank on the schedule attached hereto, or
on a continuation of such schedule attached to and made a part hereof; provided
that the failure of the Bank to make any such recordation or endorsement shall
not affect the obligations of the Borrower hereunder or under the Credit
Agreement.

This Note is one of the "Notes" referred to in
the Credit Agreement dated as of September 30, 2003 among the Borrower,
SunTrust Bank, Wachovia Bank, National Association, and the other Banks from
time to time party thereto (as the same may be amended and modified from time
to time, the "Credit Agreement"). 
Terms defined in the Credit Agreement are used herein with the same
meanings.  Reference is made to the
Credit Agreement for provisions for the optional and mandatory  prepayment and the repayment hereof and the
acceleration of the maturity hereof.

61

IN WITNESS WHEREOF, the Borrower has caused this Note to
be duly executed, under seal, by its duly authorized officer as of the day and
year first above written.

MOHAWK INDUSTRIES, INC.           (SEAL)

By:____________________________________ 

Title:

62

Note (cont'd)

	
   LOANS AND
   PAYMENTS OF PRINCIPAL

   
	
  Date

  	
  Base Rate or Euro-Dollar Loan

  	
  Amount of Loan

  	
  Amount of Principal Repaid

  	
  Maturity 

  Date

  	
  Notation Made By

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  

63

Exhibit A-2

SWING LOAN NOTE

Atlanta, Georgia

September 30, 2003

For value received, MOHAWK INDUSTRIES, INC., a
Delaware corporation (the "Borrower"), promises to pay to the order
of Wachovia Bank, National Association (the "Bank"), for the account
of its Lending Office, the principal sum of Fifty Million and No/100 Dollars
($50,000,000), or such lesser amount as shall equal the unpaid principal amount
of each Swing Loan made by the Bank to the Borrower pursuant to the Credit
Agreement referred to below, on the dates and in the amounts provided in the
Credit Agreement.  The Borrower promises
to pay interest on the unpaid principal amount of this Swing Loan Note at the
rates and on the dates provided for in the Credit Agreement.  Interest on any overdue principal of and, to
the extent permitted by law, overdue interest on the principal amount hereof
shall bear interest at the Default Rate, as provided for in the Credit
Agreement.  All such payments of
principal and interest shall be made in lawful money of the United States in
Federal or other immediately available funds at the office of Wachovia Bank,
National Association, or such other address as may be specified from time to
time pursuant to the Credit Agreement.

All Swing Loans made by the Bank,
the respective maturities thereof, and all repayments of the principal thereof
shall be recorded by the Bank and, prior to any transfer hereof, endorsed by
the Bank on the schedule attached hereto, or on a continuation of such schedule
attached to and made a part hereof; provided that the failure of the
Bank to make any such recordation or endorsement shall not affect the
obligations of the Borrower hereunder or under the Credit Agreement.

This Swing Loan Note is the Swing Loan Note
referred to in the Credit Agreement dated as of even date herewith among the
Borrower, SunTrust Bank, Wachovia Bank, National Association, and the other
Banks from time to time party thereto (as the same may be amended and modified
from time to time, the "Credit Agreement").  Terms defined in the Credit Agreement are used herein with the same
meanings.  Reference is made to the
Credit Agreement for provisions for the optional and mandatory prepayment and
the repayment hereof and the acceleration of the maturity hereof.

64

IN WITNESS WHEREOF, the Borrower has caused
this Swing Loan Note to be duly executed, under seal, by its duly authorized officer
as of the day and year first above written.

                                                                        MOHAWK
INDUSTRIES, INC.                
 

 

                                                                        By:_______________________________________
 

                                                                              Title:
 

           
65

Swing Loan Note (continued)

	
  LOANS AND PAYMENTS OF
  PRINCIPAL

  
	
  Date

  	
  Amount of

  Loan

  	
  Amount of

  Principal

  Repaid

  	
  Maturity

  Date

  	
  Notation

  Made By

  
	
   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

  

66

Exhibit B

OPINION OF

COUNSEL FOR THE BORROWER

To be dated as of the Effective Date and in the form
attached hereto.

67

Exhibit C

ASSIGNMENT AND ACCEPTANCE

Dated __________ ___, ________

Reference is made to the Credit Agreement dated as of
September 30, 2003 (together with all amendments and modifications thereto, the
"Credit Agreement") among Mohawk Industries, Inc., a Delaware
corporation (the "Borrower"), SunTrust Bank, Wachovia Bank, National
Association, and the other banks from time to time party thereto (collectively,
the "Banks").  Terms defined
in the Credit Agreement are used herein with the same meaning.

_____________________ (the "Assignor") and
____________ (the "Assignee") agree as follows:

1.                 
The Assignor hereby sells and assigns to the Assignee, and the
Assignee hereby purchases and assumes from the Assignor, a _____% interest in
and to all of the Assignor's rights and obligations under the Credit Agreement
as of the Effective Date (as defined below) (including, without limitation, a
____% interest (which on the Effective Date hereof is $____________) in the
aggregate principal amount of the Assignor's Commitment) and a ______ interest
(which on the Effective Date hereof is $____________) in the Loans owing to the
Assignor and a __________ interest (which on the Effective Date hereof is
$__________) in the Note held by the Assignor (which on the Effective Date
hereof is $____________).

2.                 
The Assignor (i) makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with the Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Credit Agreement or any other Loan Documents furnished pursuant
thereto, other than that it is the legal and beneficial owner of the interest
being assigned by it hereunder, that such interest is free and clear of any
adverse claim and that as of the date hereof the aggregate principal amount of
the Assignor's Commitments (without giving effect to assignments thereof which
have not yet become effective) is $____________ and the aggregate outstanding
principal amount of all Loans owing to it (without giving effect to assignments
thereof which have not  yet become
effective) is $____________; (ii) makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the
Borrower or the performance or observance by the Borrower of any of its
obligations under the Credit Agreement or any other instrument or document
furnished pursuant thereto; and (iii) requests that the Borrower execute a new
Note dated ____________, ____ in the principal amount of $____________ payable
to the order of the Assignee.

3.                 
The Assignee (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial statements referred to
in Section 4.04(a) thereof (or any more recent financial statements of the
Borrower delivered pursuant to Section 5.01(a) or (b) thereof) and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and Acceptance; (ii) agrees
that it will, independently and without reliance upon the Assignor or any other
Bank and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Credit Agreement; (iii) confirms that it is a bank or
financial institution; (iv) agrees that it will perform in accordance with
their terms all of the obligations which by the terms of the Credit Agreement
are required to be performed by it as a Bank; (v) specifies as its Lending
Office (and address for notices) the office set forth beneath its name on the
signature pages hereof, (vi) represents and warrants that the execution,
delivery and performance of this Assignment and Acceptance are within its
corporate powers and have been duly authorized by all necessary corporate action[,
and (vii) attaches the forms prescribed by the Internal Revenue Service of the
United States certifying as to the Assignee's status for purposes of
determining exemption from United States withholding taxes with respect to all
payments to be made to the Assignee under the Credit Agreement and the Notes or
such other documents as are necessary to indicate that all such payments are
subject to such taxes at a rate reduced by an applicable tax treaty].

68

4.                 
The Effective Date for this Assignment and Acceptance shall be
_______________ (the "Effective Date").

5.                 
From and after the Effective Date, (i) the Assignee shall be a
party to the Credit Agreement and, to the 
extent rights and obligations have been transferred to it by this
Assignment and Acceptance, have the rights and obligations of a Bank thereunder
and (ii) the Assignor shall, to the extent its rights and obligations have been
transferred to the Assignee by this Assignment and Acceptance, relinquish its
rights (other than under Section 9.04 of the Credit Agreement) and be released
from its obligations under the Credit Agreement.

6.                 
From and after the Effective Date, the Borrower shall make all
payments in respect of the interest assigned hereby to the Assignee.  The Assignor and Assignee shall make all
appropriate adjustments in payments for periods prior to such acceptance by the
Borrower directly between themselves.

69

7.                 
This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of Georgia.

[NAME OF ASSIGNOR]

By:____________________________________ 

Title:

[NAME OF ASSIGNEE]

By:____________________________________ 

Title:

Lending Office:

[Address]

CONSENTED AND AGREED TO:

MOHAWK INDUSTRIES, INC.

By:___________________________ 

Title:

70

Exhibit D-1

NOTICE OF BORROWING

___________, _______

Wachovia Bank, National Association,

as Administrative Agent

301 South College Street

Charlotte, North Carolina 28288

Re:       Credit
Agreement (as amended and modified from time to time, the "Credit
Agreement") dated as of September 30, 2003 by and among MOHAWK INDUSTRIES,
INC., SUNTRUST BANK, WACHOVIA BANK, NATIONAL ASSOCIATION, and the other Banks
from time to time party thereto.

Ladies and Gentlemen:

Unless otherwise defined herein, capitalized
terms used herein shall have the meanings attributable thereto in the Credit
Agreement.

This Notice of Borrowing is delivered to you pursuant to
Section 2.02 of the Credit Agreement.

The Borrower hereby requests a [Euro-Dollar
Borrowing][Base Rate Borrowing][Swing Loan] in the aggregate principal amount
of $__________ to be made on ______________, 20____, and for interest to accrue
thereon at the rate established by the Credit Agreement for [Euro-Dollar
Loans][Base Rate Loans][Swing Loans]. 
[The duration of the Interest Period with respect thereto shall be [1
month] [2 months] [3 months] [6 months]].

The Borrower has caused this Notice of Borrowing to be
executed and delivered by its duly authorized officer this _________ day of
______________, 20____.

MOHAWK INDUSTRIES, INC.

By:____________________________________ 

Title:

71

Exhibit D-2

NOTICE OF CONTINUATION OR CONVERSION

_____________________, 20____

Wachovia Bank, National Association,

as Administrative Agent

301 South College Street

Charlotte, North Carolina 28288

Re:       Credit
Agreement (as amended and modified from time to time, the "Credit        Agreement") dated as of September
30, 2003 by and among MOHAWK           INDUSTRIES,
INC., SUNTRUST BANK,             WACHOVIA
BANK, NATIONAL    ASSOCIATION, and the
other Banks from     time to time party
thereto.

Gentlemen:

Unless otherwise defined herein, capitalized
terms used herein shall have the       meanings
attributable thereto in the Credit Agreement.

This Notice of Continuation or Conversion is
delivered to you pursuant to Section 2.03 of the Credit Agreement.

With respect to the [Base Rate Loans][Euro-Dollar
Loans] in the aggregate amount of $___________ each of which has an Interest
Period ending on _____________, the Borrower hereby requests that such Loans be
[converted to] [Base Rate Loans][Euro-Dollar Loans] [continued as][Euro-Dollar
Loans] in the aggregate principal amount of $__________ to be made on such
date, and for interest to accrue thereon at the rate established by the Credit
Agreement for [Base Rate Loans] [Euro-Dollar Loans].  [The duration of the Interest Period with respect thereto shall
be [1 month] [2 months] [3 months] [6 months]].

The Borrower has caused this Notice of Continuation
or Conversion to be         executed and
delivered by its duly authorized officer this ______ day of ____________,   20___.

                                                                       
 MOHAWK INDUSTRIES, INC.

                                                                        By:______________________________________

Title:__________________________________

72

Exhibit E

COMPLIANCE CERTIFICATE

Reference is made to the Credit Agreement dated as of
September 30, 2003 (as modified and supplemented and in effect from time to
time, the "Credit Agreement") among Mohawk Industries, Inc., SunTrust
Bank, Wachovia Bank, National Association, and the other Banks from time to
time party thereto.  Capitalized terms
used herein shall have the meanings ascribed thereto in the Credit Agreement.

Pursuant to Section 5.01(c) of the Credit Agreement,
____________, the duly authorized _____________________ of Mohawk Industries,
Inc. hereby certifies, on behalf of the Borrower, to the Banks that the
information contained in the Compliance Check List attached hereto is true,
accurate and complete as of ____________, _____, and that no Defaults or Events
of Default exist.

By:____________________________________ 

Title:

73

COMPLIANCE CHECK LIST

(Mohawk Industries, Inc.)

____________

____________, _____

(i)                 
Debt to Capitalization Ratio (Section 5.03)

The Debt to Capitalization Ratio shall be less than 0.60 to 1.0
at the end of each Fiscal Quarter.

(a)               
Consolidated Debt                                                                    $_______

(b)              
Consolidated Total Capital                                                        $_______

Actual Ratio of (a) to (b)                                                                       ________

Maximum Ratio                                                                                    <0.60
to 1.0

Applicable Margin                                                                                ______%

Facility Fee                                                                                          
______%

(ii)               
Debt to EBITDA Ratio (Section 5.04)

The ratio of the Borrower's (a) Consolidated Debt to (b) the sum
of (i) Consolidated Net Income, (ii) Consolidated Interest Expense, (iii) taxes
on the Borrower's consolidated pre‐tax income, and (iv) Depreciation and
Amortization shall not be greater than 3.5 to 1.0 at the end of each Fiscal
Quarter.  Clause (b) in this Section
5.04 shall be calculated on a trailing 4 quarter basis as at the end of each
such Fiscal Quarter.

(a)               
Consolidated Debt                                                                    $_______

(b)              
Consolidated Net Income                                                         $_______

(c)               
Consolidated Interest Expense                                                  $_______

(d)              
Taxes on the Borrower's consolidated pre-tax income               $_______

(e)               
Depreciation                                                                             $_______

(f)                
Amortization                                                                             $_______

74

(g)               
(The sum of (b) plus (c) plus (d) plus
(e) plus (f))                       $_______

Actual Ratio of (a) to (g)                                                                       ________

Maximum Ratio                                                                                    <3.5
to 1.0

(iii)              
Investments (Section 5.06)

Investments made in Foreign Subsidiaries after the Closing Date            $_______

Limitation - 20% of Consolidated Total Assets                                   $_______

(iv)             
Negative Pledge (Section 5.08)

Liens permitted under paragraphs (a) through (i)                                    $_______

Limitation - greater of (x) $90,000,000 or 

(y) 15% of Consolidated Net Worth                                                     $_______

(v)               
Calculations with respect to Asset Securitizations:

Accounts receivable balance reported as of the last day of the
Fiscal Quarter most recently ended in such Fiscal Quarter by the Borrower or a
Subsidiary with respect to an Asset Securitization                                                                                                       $_______

75

Exhibit F

FORM OF NOTICE

IN RESPECT OF ISSUANCE OF LETTERS OF CREDIT

TO:      The
Banks parties to the Credit Agreement, dated as of September 30, 2003 (the
"Credit Agreement"), among Mohawk Industries, Inc., SunTrust Bank,
and Wachovia Bank, National Association, and the other Banks party thereto from
time to time (the "Banks").

Pursuant to Section 2.14 of the Credit
Agreement, the Administrative Agent hereby certifies to the Banks that [it]
[the Additional Issuer] has issued the following New Letters of Credit pursuant
to Section 2.14(a) of the Credit Agreement:

	
  Number

  	
  Face Amount

  	
  Date of Issuance/

  Expiration

  	
  Beneficiary

  	
  Purpose

  
	

  	

  	

  	

  	

  
	

  	

  	

  	

  	

  
	

  	

  	

  	

  	

  
	

  	

  	

  	

  	

  
	

  	

  	

  	

  	

  

A copy of each of the New Letters of Credit
listed above has been attached hereto.

Unless otherwise defined herein, terms defined
in the Credit Agreement shall have the same meaning in this notice.

                        Date:  ______________, ____.

                                    [WACHOVIA
BANK, NATIONAL ASSOCIATION]  

                                    By:
                                                                              
 

                                            Name: 
                                                Title:

76

 

Schedule 1.01

Existing Letters
of Credit

77

Schedule
4.08

Subsidiaries

	
   

  Name of Subsidiary

  	
  Jurisdiction of Formation

  	
  Amount of Investment

  	
  Holders of Equity Interest

  
	
  Mohawk Carpet Corporation

  	
  Delaware

  	

  	
  Borrower

  
	
  World International, Inc.

  	
  Barbados

  	
  $71,744,956

  	
  Mohawk Carpet Corporation

  
	
  Mohawk Servicing, Inc.

  	
  Delaware

  	

  	
  Mohawk Carpet Corporation

  
	
  Mohawk Factoring, Inc.

  	
  Delaware

  	

  	
  Mohawk Carpet Corporation (79.3%)

  World International, Inc. (20.7%)

  
	
  Aladdin Manufacturing
  Corporation

  	
  Delaware

  	

  	
  Mohawk Carpet Corporation

  
	
  Mohawk International FSC,
  Inc.

  	
  Barbados

  	
  $0

  	
  Mohawk Carpet Corporation

  
	
  Horizon Europe, Inc.

  	
  Georgia

  	

  	
  Aladdin Manufacturing Corporation

  
	
  Mohawk Mills, Inc.

  	
  Delaware

  	

  	
  Aladdin Manufacturing Corporation

  
	
  Mohawk Brands, Inc.

  	
  Delaware

  	

  	
  Aladdin Manufacturing Corporation

  
	
  Mohawk Brands USA, Inc.

  	
  Delaware

  	

  	
  Mohawk Carpet Corporation

  
	
  Mohawk Resources, Inc.

  	
  Delaware

  	

  	
  Mohawk Carpet Corporation

  
	
  Mohawk Canada Corporation

  	
  Nova Scotia

  	
  $0

  	
  Mohawk Carpet Corporation

  
	
  Aladdin of Texas Holdings,
  LLC

  	
  Delaware

  	

  	
  Mohawk Mills, Inc.

  
	
  Mohawk Carpet Distribution,
  L.P.

  	
  Delaware

  	

  	
  Mohawk Mills, Inc.
  (99%)

  Aladdin of Texas
  Holdings, LLC (1%)

  
	
  Mohawk Carpet
  Transportation of Georgia, LLC

  	
  Delaware

  	

  	
  Mohawk Carpet Distribution, L.P.

  
	
  Mohawk Holdings, LLC

  	
  Delaware

  	

  	
  Mohawk Carpet Corporation

  
	
  Mohawk Carpet of Texas,
  L.P.

  	
  Delaware

  	

  	
  Mohawk Holdings,
  LLC (99%)

  Mohawk Carpet
  Corporation (1%)

  
	
  Dal-Tile International Inc.

  	
  Delaware

  	

  	
  Borrower

  
	
  Dal-Tile Group Inc.

  	
  Delaware

  	

  	
  Dal-Tile International Inc.

  
	
  Dal-Tile Corporation

  	
  Pennsylvania

  	

  	
  Dal-Tile Group Inc.

  
	
  DTM/CM Holdings Inc.

  	
  Delaware

  	

  	
  Dal-Tile Group Inc.

  
	
  Dal-Tile Canada Inc.

  	
  Ontario, Canada

  	
  $3,138,513

  	
  Dal-Tile Group Inc.

  
	
  Dal-Tile Mexico S.A. de
  C.V.

  	
  Mexico

  	
  $70,472,915

  	
  Dal-Tile Group Inc.
  (99.985%)

  DTM/CM Holdings
  Inc. (0.004%)

  Dal-Tile
  Corporation (0.011%)

  
	
  Tileways, Inc.

  	
  Delaware

  	

  	
  Dal-Tile Corporation

  
	
  Dal-Tile Puerto Rico Inc.

  	
  Puerto Rico

  	

  	
  Dal-Tile Corporation

  
	
  DTG Tile Corp.

  	
  Delaware

  	

  	
  Dal-Tile Corporation

  
	
  DTL Tile Corp.

  	
  Delaware

  	

  	
  Dal-Tile Corporation

  
	
  Dal-Tile I LLC

  	
  Delaware

  	

  	
  Dal-Tile Corporation

  
	
  Dal-Elite L.P.

  	
  Texas

  	

  	
  DTL Tile Corp.
  (99%)

  DTG Tile Corp. (1%)

  
	
  Dal-Italia LLC (80%)

  	
  Delaware

  	

  	
  Dal-Tile I LLC
  (80%)

  EMILAMERICA, Inc.
  (unrelated) (20%)

  

 

Subject to verification by the Banks.

78FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

Exhibit 10.4

364-DAY CREDIT AGREEMENT

dated as of

September 30, 2003

among

MOHAWK INDUSTRIES, INC.,

SUNTRUST BANK

and

WACHOVIA BANK, NATIONAL ASSOCIATION

	ARTICLE
    I..... DEFINITIONS	 1
	SECTION
    1.01............ Definitions	 1
	SECTION
    1.02............ Accounting Terms and Determinations	 12
	SECTION
    1.03............ References	 13
	SECTION
    1.04............ Use of Defined Terms  	 13
	SECTION
    1.05............ Terminology	 13
	ARTICLE
    II..... THE CREDITS	 13
	SECTION
    2.01............ Commitments to Lend	 13
	SECTION
    2.02............ Method of Borrowing Syndicated Loans	 13
	SECTION
    2.03............ Continuation and Conversion Elections  	 16
	SECTION 2.04............ Notes...........   
    	 16
	SECTION
    2.05............ Maturity of Loans	 16
	SECTION
    2.06............ Interest Rates	 16
	SECTION
    2.07............ Fees	 19
	SECTION
    2.08............ Optional Termination or Reduction of Commitments	 19
	SECTION
    2.09............ Mandatory Reduction and Termination of Commitments  
    	 19
	SECTION
    2.10............ Optional Prepayments	 20
	SECTION
    2.11............ Mandatory Prepayments	 20
	SECTION
    2.12............ General Provisions as to Payments	 20
	SECTION
    2.13............ Computation of Interest and Fees	 20
	SECTION
    2.14............ Amendments Required as a Result of Permanent Facility	 21
	ARTICLE
    III..... CONDITIONS TO BORROWINGS	 22
	SECTION
    3.01............ Conditions to Effective Date	 22
	SECTION
    3.02............ Conditions to All Borrowings	 23
	ARTICLE
    IV..... REPRESENTATIONS AND WARRANTIES  	 23
	SECTION
    4.01............ Corporate Existence and Power  	 24
	SECTION
    4.02............ Corporate and Governmental Authorization; No Contravention	 24
	SECTION
    4.03............ Binding Effect   	 24
	SECTION
    4.04............ Financial Information	 24
	SECTION
    4.05............ No Litigation	 24

	SECTION 4.06............ Compliance with ERISA	 24
	SECTION
    4.07............ Taxes	 25
	SECTION
    4.08............ Subsidiaries	 25
	SECTION
    4.09............ Not an Investment Company	 25
	SECTION
    4.10............ Ownership of Property; Liens	 25
	SECTION
    4.11............ No Default	 25
	SECTION
    4.12............ Full Disclosure	 25
	SECTION
    4.13............ Environmental Matters	 26
	SECTION
    4.14............ Capital Stock	 26
	SECTION
    4.15............ Margin Stock	 26
	SECTION
    4.16............ Insolvency	 26
	ARTICLE
    V..... COVENANTS	 27
	SECTION
    5.01............ Information	 27
	SECTION
    5.02............ Inspection of Property, Books and Records	 28
	SECTION
    5.03............ Debt to Capitalization Ratio	 28
	SECTION 5.04............ Debt to EBITDA
    Ratio	 29
	SECTION
    5.05............ Restricted Payments	 29
	SECTION
    5.06............ Investments	 29
	SECTION
    5.07............ Negative Pledge	 29
	SECTION
    5.08............ Maintenance of Existence	 30
	SECTION
    5.09............ Dissolution	 30
	SECTION
    5.10............ Consolidations, Mergers and Sales of Assets	 31
	SECTION
    5.11............ Use of Proceeds  	 31
	SECTION
    5.12............ Compliance with Laws; Payment of Taxes	
    31
	SECTION
    5.13............ Insurance	 31
	SECTION
    5.14............ Change in Fiscal Year	 32
	SECTION
    5.15............ Maintenance of Property	 32
	
    SECTION 5.16............ Environmental Notices	 32
	
    SECTION 5.17............ Environmental Matters	 32
	
    SECTION 5.18............ Environmental Release	 32
	
    SECTION 5.19............ Debt of Subsidiaries	 32

	ARTICLE VI..... DEFAULTS.....   
    	 33
	
    SECTION 6.01............ Events of Default	 33
	
    SECTION 6.02............ Notice of Default	 35
	
    ARTICLE VII..... THE AGENT	 35
	
    SECTION 7.01............ Appointment; Powers and Immunities.	 35
	
    SECTION 7.02............ Reliance by Administrative Agent	 36
	
    SECTION 7.03............ Defaults	 36
	
    SECTION 7.04............ Rights of Administrative Agent and its Affiliates
    as a Bank	 37
	
    SECTION 7.05............ Indemnification	 37
	
    SECTION 7.06............ Consequential Damages	 37
	
    SECTION 7.07............ Payee of Note Treated as Owner	 38
	SECTION 7.08............ Nonreliance
    on Administrative Agent and Other Banks	 38
	
    SECTION 7.09............ Failure to Act	 38
	
    SECTION 7.10............ Resignation or Removal of Administrative Agent	 38
	
    ARTICLE VIII..... CHANGE IN CIRCUMSTANCES; COMPENSATION	 39
	
    SECTION 8.01............ Basis for Determining Interest Rate Inadequate or
    Unfair	 39
	
    SECTION 8.02............ Illegality	 40
	
    SECTION 8.03............ Increased Cost and Reduced Return	 40
	
    SECTION 8.04............ Base Rate Loans Substituted for Euro‐Dollar Loans	 41
	
    SECTION 8.05............ Compensation	 42
	
    SECTION 8.06............ Replacement of Banks	 43
	
    ARTICLE IX..... MISCELLANEOUS	 43
	
    SECTION 9.01............ Notices	 43
	
    SECTION 9.02............ No Waivers	 43
	
    SECTION 9.03............ Expenses; Documentary Taxes	 43
	
    SECTION 9.04............ Indemnification  	 44
	
    SECTION 9.05............ Sharing of Setoffs	 44
	
    SECTION 9.06............ Amendments and Waivers	 45
	
    SECTION 9.07............ No Margin Stock Collateral	 45
	
    SECTION 9.08............ Successors and Assigns	 45
	
    SECTION 9.09............ Confidentiality	 47

	SECTION
    9.10............ Representation by Banks	 47
	SECTION
    9.11............ Obligations Several	 47
	SECTION
    9.12............ Georgia Law	 47
	SECTION
    9.13............ Interpretation  	 47
	SECTION
    9.14............ WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION	 48
	SECTION
    9.15............ Counterparts	 48

EXHIBIT A                        Form of Note

EXHIBIT B                        Form of Opinion of Counsel for the Borrower

EXHIBIT C                        Form of Assignment and Acceptance

EXHIBIT D-1                        Form of Notice of
Borrowing

EXHIBIT D-2                        Form of Notice of
Continuation or Conversion

EXHIBIT E                        Form of Compliance Certificate

Schedule 4.05                        Litigation

Schedule 4.08                        Subsidiaries

CREDIT AGREEMENT

THIS CREDIT AGREEMENT dated as of September 30, 2003,
among MOHAWK INDUSTRIES, INC., SUNTRUST BANK, as Co-Lead Arranger and Agent,
WACHOVIA BANK, NATIONAL ASSOCIATION, as Co-Lead Arranger and Administrative
Agent, and the other Banks from time to time party hereto.

ARTICLE
I

DEFINITIONS

SECTION
1.01.  Definitions.  The terms as defined in this Section 1.01
shall, for all purposes of this Agreement and any amendment hereto (except as
herein otherwise expressly provided or unless the context otherwise requires),
have the meanings set forth herein:

"5 Year Revolving Credit Facility" means that
certain Five Year Credit Agreement dated as of even date herewith among Mohawk
Industries, Inc., SunTrust Bank, Wachovia Bank, National Association, and the
other lenders party thereto from time to time.

"Adjusted London Interbank Offered Rate" has the
meaning set forth in Section 2.06(c).

"Administrative Agent" means Wachovia Bank,
National Association, a national banking association organized under the laws
of the United States of America, in its capacity as agent for the Banks
hereunder, and its successors and permitted assigns in such capacity.

"Affected Bank" has the meaning set forth in
Section 8.06.

"Affiliate" means (i) any Person that directly,
or indirectly through one or more intermediaries, controls the Borrower (a
"Controlling Person"), (ii) any Person (other than the Borrower or a
Subsidiary) which is controlled by or is under common control with a
Controlling Person, or (iii) any Person (other than a Subsidiary) of which the
Borrower owns, directly or indirectly, 20% or more of the common stock or
equivalent equity interests.  As used
herein, the term "control" means possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of
a Person, whether through the ownership of voting securities, by contract or
otherwise.

"Agreement" means this Credit Agreement,
together with all amendments and modifications hereto.

"Aladdin" means Aladdin Manufacturing
Corporation, a Delaware corporation.

"Amendment Events" has the meaning set forth in
Section 2.14.

1

"Amortization" means for any period the sum of
all amortization expenses of the Borrower and its Consolidated Subsidiaries for
such period, as determined in accordance with GAAP.

"Applicable Margin" has the meaning set forth in
Section 2.06(a).

"Approved Investment" means an Investment in
compliance with the Investment Guidelines.

"Asset Securitization" means the sale of accounts
receivable and related assets of a Person in connection with a bona fide asset
securitization program.

"Assignee" has the meaning set forth in Section
9.08(c).

"Assignment and Acceptance" means an Assignment
and Acceptance executed in accordance with Section 8.08(c) in the form of Exhibit C.

"Authority" has the meaning set forth in Section
8.02.

"Banks" collectively means SunTrust, Wachovia,
and the other banks from time to time party hereto.

"Base Rate" means that interest rate as
denominated and publicly announced by the Administrative Agent from time to
time as its "prime rate".  The
Base Rate is but one of several interest rate bases used by the Administrative
Agent. The Administrative Agent and each of the Banks lends at interest rates
above and below the Base Rate.

"Base Rate Loan" means a Loan to be made as a
Base Rate Loan pursuant to the applicable Notice of Borrowing, Section 2.02(f),
or Article VIII, as applicable.

"Borrower" means Mohawk Industries, Inc., a
Delaware corporation, and its successors and permitted assigns.

"Borrowing" means a borrowing hereunder
consisting of Loans made to the Borrower at the same time by the Banks pursuant
to Article II.  A Borrowing is a
"Base Rate Borrowing" if such Loans are Base Rate Loans or a
"Euro‐Dollar Borrowing" if such Loans are Euro‐Dollar
Loans.

"Business" has the meaning set forth in Section
2.14.

"Capital Stock" means any nonredeemable capital
stock of the Borrower or any Consolidated Subsidiary (to the extent issued to a
Person other than the Borrower), whether common or preferred.

"Catoosa Co. IRB" means that issuance of certain
bonds by The Development Authority of Catoosa County, Georgia, pursuant to the
terms and conditions set forth in that certain Indenture of Trust dated as of
November 1, 1991.

2

"CERCLA" means the Comprehensive Environmental
Response Compensation and Liability Act, 42 U.S.C. § 9601 et. seq. and its
implementing regulations and amendments.

"CERCLIS" means the Comprehensive Environmental
Response Compensation and Liability Inventory System established pursuant to
CERCLA.

"Change of Law" shall have the meaning set forth
in Section 8.02.

"Closing Date" means September 30, 2003.

"Code" means the Internal Revenue Code of 1986,
as amended, or any successor Federal tax code.

"Commitment" means, with respect to each Bank,
the amount set forth opposite the name of such Bank in the signature pages
hereof as its Commitment, or in the Assignment and Acceptance by which such
Bank became a party hereto, as such amount may be reduced from time to time
pursuant to Sections 2.08 and 2.09.

"Compliance Certificate" has the meaning set
forth in Section 5.01(c).

"Consolidated Debt" means at any date the Debt
of the Borrower and its Consolidated Subsidiaries, determined on a consolidated
basis as of such date.

"Consolidated Interest Expense" for any period
means interest, whether expensed or capitalized, in respect of Debt of the
Borrower or any of its Consolidated Subsidiaries outstanding during such
period.

"Consolidated Net Income" means, for any period, the Net Income of the Borrower and its
Consolidated Subsidiaries for such period as determined on a consolidated basis
in accordance with GAAP, but excluding from the determination thereof (without
duplication) (a) any non-cash extraordinary or non-recurring gains or losses,
(b) non-cash losses or gains from the proposed or actual disposition of
material assets not exceeding $20,000,000 in any fiscal year (c) non-cash
goodwill and intangible asset write-downs and restructuring charges (but
deducting from the determination of Consolidated Net Income for any period,
cash payments made during such period in respect of any goodwill and intangible
asset write-downs or restructuring charges recorded after the Closing Date),
(d) non-cash charges resulting from the vesting or exercise of stock options or
stock appreciation rights granted to management of the Borrower, (e) non-cash
gains or losses under the Statement of Financial Accounting Standards number
133 and its amendments and (f) any equity interests of the Borrower or
any Subsidiary in the unremitted earnings of any Person that is not a
Subsidiary.

3

"Consolidated
Net Worth" means at any time Stockholder's Equity but excluding from the
determination thereof (without duplication) the effect of (a) any foreign
currency translation adjustments, (b) any extraordinary or non-recurring,
non-cash losses or gains, (c) non-cash losses or gains under the Statement of
Financial Accounting Standards number 133 and its amendments, (d) non-cash
intangible and material write-downs of assets (but deducting from the
determination of Consolidated Net Worth for any period, cash payments made
during such period in respect of any write-downs recorded after the Closing
Date) not exceeding $20,000,000 in any Fiscal Year and (e) non-cash charges
resulting from the vesting or exercise of stock options or stock appreciation
rights granted to management of the Borrower.

"Consolidated Subsidiary" means at any date any
Subsidiary or other entity the accounts of which, in accordance with GAAP,
would be consolidated with those of the Borrower in its consolidated financial
statements as of such date.

"Consolidated Total Assets" means, at any time,
without duplication, (x) the total assets of the Borrower and its Consolidated
Subsidiaries, determined on a consolidated basis, as set forth or reflected on
the most recent consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries, prepared in accordance with GAAP, plus (y) the accounts
receivable balance reported as of the last day of the Fiscal Quarter most
recently ended by the Borrower or a Subsidiary with respect to an Asset
Securitization.

"Consolidated Total Capital" means, at any time,
the sum of the following as of such time (i) Consolidated Net Worth, and (ii)
Consolidated Debt.

"Controlled Group" means all members of a
controlled group of corporations and all trades or businesses (whether or not
incorporated) under common control which, together with the Borrower, are
treated as a single employer under Section 414 of the Code.

"Debt" of any Person means at any date, without
duplication, all of the following as of such date (i) all obligations of such
Person for borrowed money, (ii) all obligations of such Person evidenced by
bonds, debentures, notes or other similar instruments, (iii) all obligations of
such Person to pay the deferred purchase price of property or services, except
trade accounts payable arising in the ordinary course of business, (iv) all
obligations of such Person as lessee under capital leases, (v) all obligations
of such Person to reimburse any bank or other Person in respect of amounts
payable under a banker's acceptance, (vi) all Redeemable Preferred Stock of
such Person (in the event such Person is a corporation), (vii) all obligations
of such Person to reimburse any bank or other Person in respect of amounts paid
under a letter of credit or similar instrument (provided, however, solely with
respect to commercial letters of credit, such amounts shall be included
hereunder only to the extent that they exceed $1,000,000 in the aggregate),
(viii) all Debt of others secured by a Lien on any asset of such Person,
whether or not such Debt is assumed by such Person, (ix) all obligations of
such Person with respect to interest rate protection agreements, foreign
currency exchange agreements or other hedging arrangements (valued as the
termination value thereof computed in accordance with a method approved by the
International Swap Dealers Association and agreed to by such Person in the
applicable hedging agreement, if any) (provided, however, solely with respect
to hedging arrangements entered into in the ordinary course of business for
natural gas or any other fuels used for the same purposes, such obligations
shall be included hereunder only to the extent that they exceed $50,000,000 in
the aggregate), (x) all Debt of others Guaranteed by such Person, and (xi) the
total accounts receivable reported as sold during any Fiscal Quarter as of the
last day of the Fiscal Quarter most recently ended by the Borrower or a
Subsidiary with respect to an Asset Securitization. For all purposes of this
Agreement, the amount of a Person's Debt under a loan or lease agreement
between such Person and a governmental agency that has issued industrial
development bonds or similar instruments, the repayment of which is secured by
the payment obligations of such Person under such loan or lease agreement,
shall be equal to the aggregate principal amount of such bonds or instruments
outstanding at the time of determination less the amount of proceeds of such
bonds or instruments which at such time are on deposit with a trustee or other
fiduciary in a "construction" fund, or other similar fund which would
be available to such trustee or other fiduciary to repay the bonds or other
instruments if then due and payable.

4

"Debt to Capitalization Ratio" means the ratio
of Consolidated Debt to Consolidated Total Capital.

"Default" means any condition or event which
constitutes an Event of Default or which with the giving of notice or lapse of
time or both would, unless cured or waived, become an Event of Default.

"Default Rate" means, with respect to any Loan,
on any day, the sum of 2% plus the then highest interest rate (including the
Applicable Margin) which may be applicable to any Loans hereunder, including,
without limitation, under Section 8.06, (irrespective of whether any such class
of Loans are actually outstanding hereunder).

"Depreciation" means for any period the sum of
all depreciation expenses of the Borrower and its Consolidated Subsidiaries for
such period, as determined in accordance with GAAP.

"Dividends" means for any period the sum of all
dividends paid or declared during such period in respect of any Capital Stock
and Redeemable Preferred Stock (other than dividends paid or payable in the
form of additional Capital Stock).

"Dollars" or "$" means dollars in
lawful currency of the United States of America.

"Domestic Business Day" means any day except a
Saturday, Sunday or other day on which commercial banks in Georgia are
authorized by law to close.

"Effective Date" means September 30, 2003.

"Environmental Authority" means any foreign,
federal, state, local or regional government that exercises any form of
jurisdiction or authority under any Environmental Requirement.

"Environmental Judgments and Orders" means all
judgments, decrees or orders arising from or in any way associated with any
Environmental Requirements, whether or not entered upon consent or written
agreements with an Environmental Authority or other entity arising from or in
any way associated with any Environmental Requirement, whether or not
incorporated in a judgment, decree or order.

"Environmental Liabilities" means any
liabilities, whether pending or, to the knowledge of the Borrower or any
Subsidiary threatened, arising from and in any way associated with any
Environmental Requirements and  which
would have or create a reasonable possibility of causing a Material Adverse
Effect.

5

"Environmental Notices" means notice from any
Environmental Authority or by any other person or entity, of possible or
alleged noncompliance with or liability under any Environmental Requirement,
including without limitation any complaints, citations, demands or requests
from any Environmental Authority or from any other person or entity for correction
of any, violation of any Environmental Requirement or any investigations
concerning any violation of any Environmental Requirement.

"Environmental Proceedings" means any judicial
or administrative proceedings arising from or in any way associated with any
Environmental Requirement.

"Environmental Releases" means releases as
defined in CERCLA or under any applicable state or local environmental law or
regulation.

"Environmental Requirements" means any legal
requirement relating to health, safety or the environment and applicable to any
of the Borrower, any Subsidiary, or the Properties, including but not limited
to any such requirement under CERCLA or similar state legislation and all
federal, state and local laws, ordinances, regulations, orders, writs, decrees
and common law.

"ERISA" means the Employee Retirement Income
Security Act of 1974, as amended from time to time, or any successor  law. 
Any reference to any provision of ERISA shall also be deemed to be a
reference to any successor provision or provisions thereof.

"Euro‐Dollar Business Day" means any
Domestic Business Day on which dealings in Dollar deposits are carried out in
the London interbank market.

"Euro‐Dollar Loan" means a Loan to be made
as a Euro‐Dollar Loan pursuant to the applicable Notice of Borrowing.

"Euro‐Dollar Reserve Percentage" has the
meaning set forth in Section 2.06(c).

"Event of Default" has the meaning set forth in
Section 6.01.

"Federal Funds Rate" means, for any day, the
rate per annum (rounded upward, if necessary, to the next higher 1/100th of 1%)
equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank of New York
on the Business Day next succeeding such day, provided that (i) if the day for
which such rate is to be determined is not a Business Day, the Federal Funds
Rate for such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (ii) if
such rate is not so published for any day, the Federal Funds Rate for such day
shall be the average rate charged to the Administrative Agent on such day on
such transactions, as determined by the Administrative Agent.

"Fiscal Quarter" means any fiscal quarter of the
Borrower.

"Fiscal Year" means any fiscal year of the
Borrower.

6

"Foreign Subsidiary" means any Subsidiary (i)
which is organized and existing under the laws of any jurisdiction other than
any state of the United States or (ii) which has all or substantially all of
its operations in any jurisdiction outside of the United States.

"GAAP" means generally accepted accounting
principles applied on a basis consistent with those which, in accordance  with Section 1.02, are to be used in making
the calculations for purposes of determining compliance with the terms of this
Agreement.

"Galaxy" means Galaxy Carpet Mills, Inc., a
Delaware corporation, which corporation was liquidated into the Borrower as
successor thereto.

"Guarantee" by any Person means any obligation,
contingent or otherwise, of such Person directly or indirectly guaranteeing any
Debt or other obligation of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of such Person (i) to secure, purchase or pay (or advance or supply
funds for the purchase or payment of) such Debt or other obligation (whether
arising by virtue of partnership arrangements, by agreement to keep‐well,
to purchase assets, goods, securities or services, to provide collateral
security, to take‐or‐pay, or to maintain financial statement
conditions or otherwise) or (ii) entered into for the purpose of assuring in
any other manner the obligee of such Debt or other obligation of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part), provided that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business.  The term "Guarantee" used as a
verb has a corresponding meaning.

"Hazardous Materials" means (a) hazardous waste,
as defined in the Resource Conservation and Recovery Act of 1980, 42 U.S.C.
§ 6901 et seq. and its implementing regulations and amendments, or in any
applicable state or local law or regulation, (b) "hazardous
substance", "pollutant", or "contaminant" as defined
in CERCLA, or in any applicable state or local law or regulation, (c) gasoline,
or any other petroleum product or by‐product, including, crude oil or any
fraction thereof (d) toxic substances, as defined in the Toxic Substances
Control Act of 1976, or in any applicable state or local law or regulation
or  (e) insecticides, fungicides, or
rodenticides, as defined in the Federal Insecticide, Fungicide, and Rodenticide
Act of 1975, or in any applicable state or local law or regulation, as each
such Act, statute or regulation may be amended from time to time.

"Interest Period" means: (1) with respect to
each Euro‐Dollar Borrowing, the period commencing on the date of such
Borrowing and ending on the numerically corresponding day in the first, second,
third or sixth month thereafter, as the Borrower may elect in the applicable
Notice of Borrowing; provided that:

(a)               
any Interest Period (other than an Interest Period determined
pursuant to paragraph (c) below) which would otherwise end on a day which is
not a Euro‐Dollar Business Day shall be extended to the next succeeding
Euro‐Dollar Business Day unless such Euro‐Dollar Business Day falls
in another calendar month, in which case such Interest Period shall end on the
next preceding Euro‐Dollar Business Day;

7

(b)              
any Interest Period which begins on the last Euro‐Dollar
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the appropriate subsequent calendar month) shall, subject
to paragraph (c) below, end on the last Euro‐Dollar Business Day of the
appropriate subsequent calendar month; and

(c)               
any Interest Period which begins before the Termination Date
and would otherwise end after the Termination Date shall end on the Termination
Date.

(2) with respect to each Base Rate Borrowing, the period
commencing on the date of such Borrowing and ending 30 days thereafter; provided
that:

(d)              
any Interest Period (other than an Interest Period determined
pursuant to paragraph (b) below) which would otherwise end on a day which is
not a Domestic Business Day shall be extended to the next succeeding Domestic
Business Day; and

(e)               
any Interest Period which begins before the Termination Date
and would otherwise end after the Termination Date shall end on the Termination
Date.

"Investment" means any investment in any Person,
whether by means of purchase or acquisition of obligations or securities of
such Person, capital contribution to such Person, loan or advance to such
Person, making of a time deposit with such Person, Guarantee or assumption of
any obligation of such Person or otherwise.

"Investment Guidelines" means the guidelines for
investment of funds of the Borrower and the Subsidiaries as approved by the
Board of Directors of the Borrower or an authorized executive committee thereof
and in effect on the Closing Date, as modified or supplemented from time to
time with the approval of the Board of Directors of the Borrower or an
authorized executive committee.

"Lending Office" means, as to each Bank, its
office located at its address set forth on the signature pages hereof  (or identified on the signature pages hereof
as its Lending Office) or such other office as such Bank may hereafter
designate as its Lending Office by notice to the Borrower.

"Lien" means, with respect to any asset, any
mortgage, deed to secure debt, deed of trust, lien, pledge, charge, security
interest, security title, preferential arrangement, which has the practical
effect of constituting a security interest or encumbrance, or encumbrance or
servitude of any kind in respect of such asset to secure or assure payment of a
Debt or a Guarantee, whether by consensual agreement or by operation of statute
or other law.  For the purposes of this
Agreement, the Borrower or any Subsidiary shall be deemed to own subject to a
Lien any asset which it has acquired or holds subject to the interest of a
vendor or lessor under any conditional sale agreement, capital lease or other
title retention agreement relating to such asset.

"Loan" means a Base Rate Loan or a Euro‐Dollar
Loan and "Loans" means Base Rate Loans or Euro‐Dollar Loans, or
either or each of them, as the context shall require.

8

"Loan Documents" means this Agreement, the
Notes, and any other document evidencing, relating to or securing the Loans,
and any other document or instrument delivered in connection with this
Agreement, the Notes or the Loans, as such documents and instruments may be
amended or modified from time to time.

"London Interbank Offered Rate" has the meaning
set forth in Section 2.06(c).

"Margin Stock" means "margin stock" as
defined in Regulations T, U or X.

"Material Adverse Effect" means, with respect to
any event, act, condition or occurrence of whatever nature (including any
adverse determination in any litigation, arbitration, or governmental
investigation or proceeding), whether singly or in conjunction with any other
event or events, act or acts, condition or conditions, occurrence or  occurrences, whether or not related, a
material adverse change in, or a material adverse effect upon, any of (a) the
financial condition, operations, business, properties or prospects of the
Borrower and its Consolidated Subsidiaries taken as a whole, (b) the rights and
remedies of the Banks under the Loan Documents, or the ability of the Borrower
to perform its obligations under the Loan Documents to which it is a party, as
applicable, or (c) the legality, validity or enforceability of any Loan Document.

"Material Subsidiary" means, as of the date of
any determination thereof, any Subsidiary that either: (a) owns assets having a
book value equal to or greater than 5.0% of Consolidated Total Assets, or (b)
had Net Income for any prior period of four consecutive Fiscal Quarters equal
to or greater than 5.0% of Consolidated Net Income for the same four Fiscal
Quarter period.

"More Favorable Terms" has the meaning set forth
in Section 2.14.

"Multiemployer Plan" shall have the meaning set
forth in Section 4001(a)(3) of ERISA.

"Net Income" means, as applied to any Person for
any period, the aggregate amount of net income of such Person, after taxes, for
such period, as determined in accordance with GAAP.

"Notes" means the promissory notes of the
Borrower, substantially in the form of Exhibit A, evidencing the
obligation of the Borrower to repay the Loans, together with all amendments,
consolidations, modifications, renewals, and supplements thereto.

"Notice of Borrowing" has the meaning set forth
in Section 2.02.

"Notice of Continuation of Conversion" has the
meaning set forth in Section 2.03.

"Participant" has the meaning set forth in
Section 9.08(b).

"PBGC" means the Pension Benefit Guaranty
Corporation or any entity succeeding to any or all of its functions under
ERISA.

9

"Performance Pricing Determination Date" has the
meaning set forth in Section 2.06(a).

"Permanent Facility" has the meaning set forth
in Section 2.14.

"Permitted Acquisition" means a non-hostile
acquisition, however structured, of all or substantially all of the assets of,
or a majority of all the issued and outstanding capital stock of, a Person in a
Permitted Line of Business.

"Permitted Line of Business" means the
manufacturing, marketing and/or distribution of commercial or home furnishings
and floor coverings and other reasonably related products and any
"vertical integration" with respect thereto.

"Person" means an individual, a corporation, a
partnership, an unincorporated association, joint venture, limited liability
company, a trust or any other entity or organization, including, but not
limited to, a government or political subdivision or an agency or
instrumentality thereof.

"Plan" means at any time an employee pension
benefit plan which is covered by Title IV of ERISA or subject to the minimum
funding standards under Section 412 of the Code and is either (i) maintained by
a member of the Controlled Group for employees of any member of the Controlled
Group or (ii) maintained pursuant to a collective bargaining agreement or any
other arrangement under which more than one employer makes contributions and to
which a member of the Controlled Group is then making or accruing an obligation
to make contributions or has within the preceding five plan years made
contributions.

"Pricing Terms" has the meaning set forth in
Section 2.14.

"Properties" means all real property owned,
leased or otherwise used or occupied by the Borrower or any Subsidiary  (including, without limitation, the
Borrower), wherever located.

"Redeemable Preferred Stock" of any Person means
any preferred stock issued by such Person which is at any time prior to the
Termination Date either (i) mandatorily redeemable (by sinking fund or similar
payments or otherwise) or (ii) redeemable at the option of the holder thereof.

"Regulation D" means Regulation D of the Board
of Governors of the Federal Reserve System, as in effect from time to time,
together with all official rulings and interpretations issued thereunder.

"Regulation T" means Regulation T of the Board
of Governors of the Federal Reserve System, as in effect from time to time,
together with all official rulings and interpretations issued thereunder.

"Regulation U" means Regulation U of the Board
of Governors of the Federal Reserve System, as in effect from time to time,
together with all official rulings and interpretations issued thereunder.

10

"Regulation X" means Regulation X of the Board
of Governors of the Federal Reserve System, as in effect from time to time,
together with all official rulings and interpretations issued thereunder.

"Related Fund" means, with respect to any Bank,
a special purpose entity that purchases or participates in such Bank's loans
and for which such Bank is agent, advisor or manager for such special purpose
entity.

"Replacement Bank" has the meaning set forth in
Section 8.06.

"Required Banks" means at any time Banks having
at least 66 2/3% of the aggregate amount of the Commitments, or if  the Commitments are no longer in effect,
holding at least 66 2/3% of the aggregate outstanding principal amount of the
Notes.

"Restricted Payment" means (i) any dividend or
other distribution on any shares of the Borrower's capital stock (except
dividends payable solely in shares of its capital stock) or (ii) any payment on
account of the purchase, redemption, retirement or acquisition of (a) any
shares of the Borrower's capital stock (except shares acquired upon the
conversion thereof into other shares of its capital stock) or (b) any option,
warrant or other right to acquire shares of the Borrower's capital stock.

"Revolving Credit Facilities" means this
Agreement and the 5 Year Revolving Credit Facility.

"Stockholders' Equity" means, at any time, the
stockholders' equity of the Borrower and its Consolidated Subsidiaries, as set
forth or reflected on the most recent consolidated balance sheet of the
Borrower and its Consolidated Subsidiaries prepared in accordance with GAAP, but
excluding any Redeemable Preferred Stock of the Borrower or any of its
Consolidated Subsidiaries. 
Shareholders' equity generally would include, but not be limited to, (i)
the par or stated value of all outstanding Capital Stock, (ii) capital surplus,
(iii) retained earnings, and (iv) various deductions such as (A) purchases of
treasury stock, (B) valuation allowances, (C) receivables due from an employee
stock ownership plan, (D) employee stock ownership plan debt guarantees, and
(E) foreign currency translation adjustments.

"Subsidiary" means any corporation or other
entity of which securities or other ownership interests having ordinary voting
power to elect a majority of the board of directors or other persons performing
similar functions are at the time directly or indirectly owned by the Borrower.

"Summerville City IRB" means that issuance of
certain bonds by The Development Authority of the City of Summerville, Georgia,
pursuant to the terms and conditions set forth in that certain Trust Indenture
dated as of September 1, 1997.

"SunTrust" means SunTrust Bank, a Georgia state
banking corporation, and its successors and, as the context requires, its
permitted assigns.

"Syndicated Borrowing" means any Base Rate Loans
or Euro-Dollar Loans made to the Borrower pursuant to the terms and conditions
set forth in Section 2.01.

11

"Syndicated Loans" means Base Rate Loans or
Euro-Dollar Loans made pursuant to the terms and conditions set forth in
Section 2.01(a).

"Termination Date" means whichever is applicable
of (i) September 29, 2004, (ii) the date the Commitments are terminated
pursuant to Section 6.01 following the occurrence of an Event of Default, or
(iii) the date the Borrower terminates the Commitments entirely pursuant to
Section 2.09.

"Third Parties" means all lessees, sublessees,
licensees and other users of the Properties, excluding those users of the
Properties in the ordinary course of the Borrower's business and on a temporary
basis.

"Transferee" has the meaning set forth in
Section 9.08(d).

"Unused Commitments" means at any date an amount
equal to the aggregate Commitments less the aggregate outstanding principal
amount of the Syndicated Loans.

"Wachovia" means Wachovia Bank, National
Association, a national banking association, and its successors and, as the
context requires, its permitted assigns.

"Wholly Owned Subsidiary" means any Subsidiary
all of the shares of capital stock or other ownership interests of which
(except directors' qualifying shares) are at the time directly or indirectly
owned by the Borrower or a Consolidated Subsidiary.

SECTION
1.02.  Accounting Terms and
Determinations.  Unless otherwise
specified herein, all terms of an accounting character used herein shall be
interpreted, all accounting determinations hereunder shall be made, and all
financial statements required to be delivered hereunder shall be prepared in
accordance with GAAP, applied on a basis consistent (except for changes concurred
in by the Borrower's independent public accountants or otherwise required by a
change in GAAP) with the most recent audited consolidated financial statements
of the Borrower delivered to the Banks unless with respect to any such change
concurred in by the Borrower's independent public accountants or required by
GAAP, in determining compliance with any of the provisions of any of the Loan
Documents: (i) the Borrower shall have objected to determining such compliance
on such basis at the time of delivery of such financial statements, or (ii) the
Required Banks shall so object in writing within 30 days after the delivery of
such financial statements, in either of which events the Banks and the Borrower
shall negotiate in good faith to resolve any existing disagreements regarding
such calculations, provided, that if such disagreements are not resolved within
30 days after receipt of a notice of objection, such calculations shall be made
on a basis consistent with those used in the preparation of the latest
financial statements as to which such objection shall not have been made
(which, if objection is made in respect of the first financial statements
delivered under Section 5.01 hereof, shall mean the financial statements
referred to in Section 4.04).

SECTION
1.03.  References.  Unless otherwise indicated, references in
this Agreement to "Articles", "Exhibits",
"Schedules", "Sections" and other Subdivisions are
references to articles, exhibits, schedules, sections and other subdivisions
hereof.

12

SECTION
1.04.  Use of Defined Terms.  All terms defined in this Agreement shall
have the same defined meanings when used in any of the other Loan Documents,
unless otherwise defined therein or unless the context shall require otherwise.

SECTION
1.05.  Terminology.  All personal pronouns used in this
Agreement, whether used in the masculine, feminine or neuter gender, shall
include all other genders; the singular shall include the plural, and the
plural shall include the singular. 
Titles of Articles and Sections in this Agreement are for convenience
only, and neither limit nor amplify the provisions of this Agreement.

ARTICLE
II

THE CREDITS

SECTION
2.01.  Commitments to Lend.

Each Bank severally agrees, on the terms and conditions set forth
herein, to make Syndicated Loans to the Borrower from time to time before the
Termination Date; provided that,  

(i)                 
immediately after each such Syndicated Loan is made, the
aggregate outstanding principal amount of Syndicated Loans by such Bank shall
not exceed the amount of its Commitment, and

(ii)               
the aggregate outstanding principal amount of all Syndicated Loans
shall not exceed the aggregate amount of the Commitments.

Each Syndicated Borrowing under
this Section shall be in an aggregate principal amount of $500,000 or any
larger integral multiple of $500,000 (except that any such Syndicated Borrowing
may be in the aggregate amount of the Unused Commitments) and shall be
made from the several Banks ratably in proportion to their respective
Commitments.  Within the foregoing
limits, the Borrower may borrow under this Section, repay or, subject to the
provisions of Section 2.10, prepay Syndicated Loans and reborrow under
this Section at any time before the Termination Date.

SECTION
2.02.  Method of Borrowing
Syndicated Loans.

(a)               
The Borrower shall give the Administrative Agent notice (a
"Notice of Borrowing"), which shall be substantially in the form of
Exhibit D-1, prior to (i) 11:00 A.M. (Charlotte, North Carolina
time) on the same Domestic Business Day of each Base Rate Borrowing, and
(ii) 11:00 A.M. (Charlotte, North Carolina time) and at least 3 Euro‐Dollar
Business Days before each Euro‐Dollar Borrowing, specifying:

(i)                 
the date of such Borrowing, which shall be a Domestic Business
Day in the case of a Base Rate Borrowing or a Euro‐Dollar Business Day in
the case of a Euro‐Dollar Borrowing,

(ii)               
the aggregate amount of such Borrowing,

13

(iii)              
whether the Syndicated Loans comprising such Borrowing are to
be Base Rate Loans or Euro‐Dollar Loans,

(iv)             
in the case of a Euro-Dollar Borrowing, the duration of the
Interest Period applicable thereto, subject to the provisions of the definition
of Interest Period, and

(v)               
how the proceeds of such Borrowing are to be made available to
the Borrower.

(b)              
Upon receipt of a Notice of Borrowing, the Administrative
Agent shall promptly notify each Bank of the contents thereof and of such
Bank's ratable share of such Syndicated Borrowing and such Notice of Borrowing,
once received by the Administrative Agent, shall not thereafter be revocable by
the Borrower (except as otherwise provided in Section 8.01).

(c)               
Not later than 1:00 P.M. (Charlotte, North Carolina
time) on the date of each Syndicated Borrowing, each Bank shall (except as
provided in paragraph (d) of this Section) make available its ratable
share of such Syndicated Borrowing, in Federal or other funds immediately
available in Charlotte, North Carolina, to the Administrative Agent at its
address determined pursuant to Section 9.01.  Unless the Administrative Agent determines that any applicable
condition specified in Article III has not been satisfied or waived in
accordance with Section 9.06, the Administrative Agent will make the funds so
received from the Banks available to the Borrower in the manner provided for in
the applicable Notice of Borrowing no later than 2:00 P.M.  Unless the Administrative Agent receives
notice from a Bank, at the Administrative Agent's address referred to in or
specified pursuant to Section 9.01, no later than 4:00 P.M. (local time at
such address) on the Domestic Business Day before the date of a Syndicated
Borrowing with respect to a Euro-Dollar Loan, or no later than 1:00 P.M. on the
date of a Syndicated Borrowing with respect to a Base Rate Loan, stating that
such Bank will not make a Syndicated Loan in connection with such Syndicated
Borrowing, the Administrative Agent shall be entitled to assume that such Bank
will make a Syndicated Loan in connection with such Syndicated Borrowing and,
in reliance on such assumption, the Administrative Agent may (but shall not be
obligated to) make available such Bank's ratable share of such Syndicated
Borrowing to the Borrower for the account of such Bank.  If the Administrative Agent makes such
Bank's ratable share available to the Borrower and such Bank does not in fact
make its ratable share of such Syndicated Borrowing available on such date, the
Administrative Agent shall be entitled to recover such Bank's ratable share
from such Bank or the Borrower (and for such purpose shall be entitled to
charge such amount to any account of the Borrower maintained with the
Administrative Agent), together with interest thereon for each day during the
period from the date of such Syndicated Borrowing until such sum shall be paid
in full at a rate per annum equal to the rate at which the Administrative Agent
determines that it obtained (or could have obtained) overnight Federal
funds to cover such amount for each such day during such period, provided that
(i) any such payment by the Borrower of such Bank's ratable share and
interest thereon shall be without prejudice to any rights that the Borrower may
have against such Bank and (ii) until such Bank has paid its ratable share
of such Syndicated Borrowing, together with interest pursuant to the foregoing,
it will have no interest in or rights with respect to such Syndicated Borrowing
for any purpose hereunder.  If the
Administrative Agent does not exercise its option to advance funds for the
account of such Bank, it shall forthwith notify the Borrower of such decision.

14

(d)              
If any Bank makes a new Syndicated Loan hereunder on a day on
which the Borrower is to repay all or any part of an outstanding Syndicated
Loan from such Bank, such Bank shall apply the proceeds of its new Syndicated
Loan to make such repayment and only an amount equal to the difference (if
any) between the amount being borrowed and the amount being repaid shall
be made available by such Bank to the Administrative Agent as provided in
paragraph (c) of this Section.

(e)               
Notwithstanding anything to the contrary contained in this
Agreement, no Euro-Dollar Borrowing may be made if there shall have occurred a
Default or an Event of Default, which Default or Event of Default shall not
have been cured or waived.

(f)                
In the event that a Notice of Borrowing fails to specify
whether the Syndicated Loans comprising such Syndicated Borrowing are to be
Base Rate Loans or Euro‐Dollar Loans, such Syndicated Loans shall be made
as Base Rate Loans.  If the Borrower is
otherwise entitled under this Agreement to repay any Syndicated Loans maturing
at the end of an Interest Period applicable thereto with the proceeds of a new
Borrowing, and the Borrower fails to repay such Syndicated Loans using its own
moneys and fails to give a Notice of Borrowing in connection with such new
Syndicated Borrowing, a new Syndicated Borrowing shall be deemed to be made on
the date such Syndicated Loans mature in an amount equal to the principal
amount of the Syndicated Loans so maturing, and the Syndicated Loans comprising
such new Syndicated Borrowing shall be Base Rate Loans.

(g)               
Notwithstanding anything to the contrary contained herein,
there shall not be more than 6 Interest Periods outstanding at any given time.

SECTION
2.03.  Continuation and
Conversion Elections.  By delivering
a notice (a "Notice of Continuation or Conversion"), which shall be
substantially in the form of Exhibit D-2, to the Administrative Agent on
or before 12:00 P.M., Charlotte, North Carolina time, on a Domestic Business
Day (or Euro-Dollar Business Day, in the case of Euro-Dollar Loans
outstanding), the Borrower may from time to time irrevocably elect, by notice
on the same Domestic Business Day, in the case of Base Rate Loans, or 3
Euro-Dollar Business Days, in the case of Euro-Dollar Loans, that all, or any
portion in an aggregate principal amount of $500,000 or any larger integral
multiple of $500,000 be, (i) in the case of Base Rate Loans, converted
into or Euro-Dollar Loans or, or (ii) in the case of Euro-Dollar Loans,
converted into Base Rate Loans or continued as Euro-Dollar Loans (in the
absence of delivery of a Notice of Continuation or
Conversion with respect to any Euro-Dollar Loan at least 3 Euro-Dollar Business
Days before the last day of the then current Interest Period with respect
thereto, such Euro-Dollar Loan shall, on such last day, automatically convert
to a Base Rate Loan); provided, however, that (x) each such conversion or
continuation shall be pro rated among the Banks that have made such Loans, and
(y) no portion of the outstanding principal amount of any Loans may be
continued as, or be converted into, any Euro-Dollar Loan when any Event of
Default has occurred and is continuing.

15

SECTION
2.04.  Notes.   (a)  The
Syndicated Loans of each Bank shall be evidenced by a single Note made by the
Borrower payable to the order of such Bank for the account of its Lending
Office in an amount equal to the original principal amount of such Bank's
Commitment.

(b)              
Upon receipt of each Bank's Notes pursuant to Section 3.01,
the Administrative Agent shall deliver such Notes to such Bank.  Each Bank shall record, and prior to any
transfer of its Note shall endorse on the schedule forming a part thereof
appropriate notations to evidence the date, amount and maturity of each Loan
made by it, the date and amount of each payment of principal made by the
Borrower with respect thereto and whether such Loan is a Base Rate Loan or Euro‐Dollar
Loan, and such schedule shall constitute rebuttable presumptive evidence of the
principal amount owing and unpaid on such Bank's Note; provided that the
failure of any Bank to make any such recordation or endorsement shall not
affect the obligation of the Borrower hereunder or under the Notes.  Each Bank is hereby irrevocably authorized
by the Borrower so to endorse its Note and to attach to and make a part of its
Note a continuation of any such schedule as and when required.

SECTION
2.05.  Maturity of Loans.

(a)               
Each Euro-Dollar Loan included in any Borrowing shall mature,
and the principal amount thereof shall be due and payable, on the last day of
the Interest Period applicable to such Borrowing.

(b)              
Notwithstanding the foregoing, the outstanding principal
amount of the Loans, if any, together with all accrued but unpaid interest
thereon, if any, shall be due and payable on September 29, 2004.

SECTION
2.06.  Interest Rates.   (a) 
"Applicable Margin" means at all times:

(i)                 
for the period commencing on the Closing Date to and including
the first Performance Pricing Determination Date, for each Base Rate Loan 0.0%,
and for each Euro-Dollar Loan 0.5%; and

(ii)               
from and after the first Performance Pricing Determination
Date, for each Base Rate Loan and for each Euro-Dollar Loan, the percentage
determined on each Performance Pricing Determination Date by reference to the
table set forth below as to such type of Loan and the Debt to Capitalization
Ratio for the quarterly or annual period ending immediately prior to such
Performance Pricing Determination Date.

16

	
  Debt to 

  
  Capitalization Ratio

  	
  Base Rate Loan

  	
  Euro-Dollar Loan

  
	
  >
  0.55 to 1.0

  	
  0.500%

  	
  1.400%

  
	
  >
  0.50 to 1.0 but 

  < 0.55 to 1.0

  	
  0.250%

  	
  1.150%

  
	
  > 0.40 to 1.0 but

  <0.50 to 1.0

  	
  0.000%

  	
  0.900%

  
	
  >0.30 to 1.0 but

  <0.40 to 1.0

  	
  0.000%

  	
  0.650%

  
	
  >0.20 to 1.0 but

  <0.30 to 1.0

  	
  0.000%

  	
  0.500%

  
	
  < 0.20 to 1.0

  	
  0.000%

  	
  0.400%

  

In determining interest for purposes of this Section 2.06
and fees for purposes of Section 2.07, the Borrower and the Banks shall refer
to the Borrower's most recent consolidated quarterly and annual (as the case
may be) financial statements delivered pursuant to Section 5.01(a) or (b), as
the case may be.  The "Performance
Pricing Determination Date" is the date which is the last date on which
such financial statements are permitted to be delivered pursuant to Section
5.01(a) or (b), as applicable.  Any such
required change in interest and fees shall become effective on such Performance
Pricing Determination Date, and shall be in effect until the next Performance
Pricing Determination Date, provided that no fees or interest shall be
decreased pursuant to this Section 2.06 or Section 2.07 if an Event of Default
is in existence on the Performance Pricing Determination Date.

(b)              
Each Base Rate Loan shall bear interest on the outstanding
principal amount thereof, for each day from the date such Loan is made until it
becomes due, at a rate per annum equal to the Base Rate for such day plus (or
minus) the Applicable Margin.  Such
interest shall be payable for each Interest Period on the last day thereof.  Any overdue principal of and, to the extent
permitted by applicable law, overdue interest on any Base Rate Loan shall bear
interest, payable on demand, for each day until paid at a rate per annum equal
to the Default Rate.

(c)               
Each Euro‐Dollar Loan shall bear interest on the
outstanding principal amount thereof, for the Interest Period  applicable thereto, at a rate per annum
equal to the sum of the Applicable Margin plus the applicable Adjusted London
Interbank Offered Rate for such Interest Period; provided that if any
Euro‐Dollar Loan shall, as a result of paragraph (1)(c) of the definition
of Interest Period, have an Interest Period of less than one month, such Euro‐Dollar
Loan shall bear interest during such Interest Period at the rate applicable to
Base Rate Loans during such period. 
Such interest shall be payable for each Interest Period on the last day
thereof and, if such Interest Period is longer than 3 months, at intervals of 3
months after the first day thereof.  Any
overdue principal of and, to the extent permitted by law, overdue interest on
any Euro‐Dollar Loan shall bear interest, payable on demand, for each day
until paid at a rate per annum equal to the Default Rate.

17

The "Adjusted London Interbank Offered Rate"
applicable to any Interest Period means a rate per annum equal to the quotient
obtained (rounded upwards, if necessary, to the next higher 1/100th of 1%) by
dividing (i) the applicable London Interbank Offered Rate for such Interest
Period by (ii) 1.00 minus the Euro‐Dollar Reserve Percentage.

The "London Interbank Offered Rate" applicable
to any Euro‐Dollar Loan means for the Interest Period of such Euro‐Dollar
Loan, the rate per annum determined on the basis of the offered rate for
deposits in Dollars of amounts equal or comparable to the principal amount of
such Euro‐Dollar Loan offered for a term comparable to such Interest
Period, which rates appear on Telerate Page 3750 effective as of 11:00 A.M.,
London time, 2 Euro‐Dollar Business Days prior to the first day of such
Interest Period, provided that (i) if more than one such offered rate appears
on Telerate Page 3750, the "London Interbank Offered Rate" will be
the arithmetic average (rounded upward, if necessary, to the next higher
1/100th of 1%) of such offered rates; (ii) if no such offered rates appear on
such page, the "London Interbank Offered Rate" for such Interest
Period will be the arithmetic average (rounded upward, if necessary, to the
next higher 1/100th of 1%) of rates quoted by not less than two major banks in
New York City, selected by the Administrative Agent, at approximately 10:00
A.M., New York City time, 2 Euro‐Dollar Business Days prior to the first
day of such Interest Period, for deposits in Dollars offered to leading
European banks for a period comparable to such Interest Period in an amount
comparable to the principal amount of such Euro‐Dollar Loan.

"Euro‐Dollar Reserve Percentage" means,
with respect to a given Bank, for any day that percentage (expressed as a
decimal) which is in effect on such day, as prescribed by the Board of
Governors of the Federal Reserve System (or any successor) for determining the
actual reserve requirement for such Bank in respect of "Eurocurrency
liabilities" (or in respect of any other category of liabilities which
includes deposits by reference to which the interest rate on Euro‐Dollar
Loans is determined or any category of extensions of credit or other assets
which includes loans by a non‐United States office of any Bank to United
States residents).  The Adjusted London
Interbank Offered Rate shall be adjusted automatically on and as of the
effective date of any change in the Euro‐Dollar Reserve Percentage.

(d)              
The Administrative Agent shall determine the interest rates
applicable to the Loans hereunder.  The
Administrative Agent shall give prompt notice to the Borrower and the other
Banks (by telephone or facsimile transmission) of each rate of interest so
determined, and its determination thereof shall be conclusive in the absence of
manifest error.

SECTION
2.07.  Fees.   (a)  The
Borrower shall pay to the Administrative Agent, for the ratable account of each
Bank, a facility fee, calculated in the manner provided in the last paragraph
of Section 2.07(a)(iii), on the aggregate amount of such Bank's Commitment
(without taking into account the amount of the outstanding Loans made by such
Bank), at a rate per annum equal to: (i) for the period commencing on the
Closing Date to and including the first  Performance
Pricing Determination Date, 0.15%; and (ii) from and after the first
Performance Pricing Determination Date, the percentage determined on each
Performance Pricing Determination Date by reference to the table set forth
below and the Debt to Capitalization Ratio for the quarterly or annual period
ending immediately prior to such Performance Pricing Determination Date:

18

	
  Debt to 

  
  Capitalization Ratio

  	

  	
  Facility Fee

  
	
  >
  0.55 to 1.0

  	

  	
  0.500%

  
	
  >
  0.50 to 1.0 but 

  < 0.55 to 1.0

  	

  	
  0.250%

  
	
  > 0.40 to 1.0 but

  <0.50 to 1.0

  	

  	
  0.150%

  
	
  >0.30 to 1.0 but

  <0.40 to 1.0

  	

  	
  0.150%

  
	
  >0.20 to 1.0 but

  <0.30 to 1.0

  	

  	
  0.150%

  
	
  < 0.20 to 1.0

  	

  	
  0.150%

  

Such facility fees shall accrue from and including the
Closing Date to (but excluding the Termination Date) and shall be payable on
December 31, March 31, June 30 and on the Termination Date.

(b)              
The Borrower shall pay to the Administrative Agent, for the
account and sole benefit of the Administrative Agent, such fees and other
amounts at such times as mutually agreed in writing as of the Closing Date.

SECTION
2.08.  Optional Termination
or Reduction of Commitments.  The
Borrower may, upon at least 3 Domestic Business Days' notice to the
Administrative Agent, terminate at any time, or proportionately reduce the
Unused Commitments from time to time by an aggregate amount of at least
$10,000,000.  Upon a reduction of the
Unused Commitments, each Bank's Commitments shall be permanently and ratably
reduced.

SECTION
2.09.  Mandatory Reduction
and Termination of Commitments.  The
Commitments shall terminate on the Termination Date and any Loans then
outstanding (together with accrued interest thereon) shall be due and payable
by the Borrower on such date.

19

SECTION
2.10.  Optional Prepayments.   (a)  The
Borrower may, upon notice to the Administrative Agent on the same day, prepay
any Base Rate Borrowing in whole at any time, or from time to time in part in
amounts aggregating at least $100,000 or any larger amount, by paying the
principal amount to be prepaid together with accrued interest thereon to the
date of prepayment.

(b)              
Subject to Section 8.05, the Borrower may, upon at least 2
Euro‐Dollar Business Days' notice to the Administrative Agent, prepay any
Euro‐Dollar Loan in whole at any time, or from time to time in part,
prior to the maturity thereof, in amounts aggregating at least $1,000,000 or
any larger multiple of $100,000, by paying the principal amount to be prepaid
together with accrued interest thereon to the date of the prepayment.

(c)               
Upon any Administrative Agent's receipt of a notice of
prepayment pursuant to this Section, such notice shall not thereafter be
revocable by the Borrower.

SECTION
2.11.  Mandatory
Prepayments.  On each date on which
the Commitments are reduced pursuant to Section 2.08 or Section 2.09, the
Borrower shall repay or prepay such principal amount of the outstanding Loans,
if any (together with interest accrued thereon), as may be necessary so that
after such payment the aggregate unpaid principal amount of the Loans does not
exceed the aggregate amount of the Commitments as then reduced.

SECTION
2.12.  General Provisions
as to Payments.   (a) The Borrower shall make each payment of
principal of, and interest on, each Bank's Loans and of each Bank's fees
hereunder, not later than 11:00 A.M. (Charlotte, North Carolina time) on
the date when due, in Federal or other funds immediately available at the place
where payment is due, to such Bank at its address set forth on the signature
pages hereof or at such other address as such Bank may notify the Borrower in
writing from time to time.

(b)              
Whenever any payment of principal of, or interest on, the Base
Rate Loans or of fees shall be due on a day which is not a Domestic Business
Day, the date for payment thereof shall be extended to the next succeeding
Domestic Business Day.  Whenever any
payment of principal of or interest on, the Euro‐Dollar Loans shall be
due on a day which is not a Euro‐Dollar Business Day, the date for
payment thereof shall be extended to the next succeeding Euro‐Dollar
Business Day unless such Euro‐Dollar Business Day falls in another
calendar month, in which case the date for payment thereof shall be the next
preceding Euro‐Dollar Business Day.

SECTION
2.13.  Computation of
Interest and Fees.  Interest on Base
Rate Loans shall be computed on the basis of a year of 360 days and paid for
the actual number of days elapsed (including the first day but excluding the
last day).  Interest on Euro‐Dollar
Loans shall be computed on the basis of a year of 360 days and paid for the
actual number of days elapsed, calculated as to each Interest Period from and
including the first day thereof to but excluding the last day thereof.  Any fees payable hereunder shall be computed
on the basis of a year of 360 days and paid for the actual number of days
elapsed (including the first day but excluding the last day).

20

SECTION
2.14.  Amendments Required
as a Result of Permanent Facility. 
In the event that:

(a)               
the Borrower obtains senior bank debt financing in addition to
the Revolving Credit Facilities in an amount greater than $300 million,
including without limitation, in connection with any (i) acquisition (whether
of assets or stock) of a business operation, unit, division or entity (each, a
"Business"), or (ii) merger or other transaction having the effect of
acquiring a Business;  

(b)              
such senior bank debt financing (or any commitment with
respect thereto) remains outstanding with the original lender (whether alone or
as a part of syndicate of lenders) in whole or in part for a period greater
than 180 days (each, a "Permanent Facility");

(c)               
the Permanent Facility contains any provisions more favorable
to the lenders party thereto than the provisions of the Revolving Credit
Facilities (the "More Favorable Terms"), including, without
limitation, interest rates (including, without limitation, margins), fees or
other pricing terms (collectively, the "Pricing Terms") in amounts
greater than any comparable Pricing Terms with respect to this Agreement (as
reasonably determined by the Banks); and

(d)              
after giving effect to a fully funded commitment under the
Permanent Facility the Debt to Capitalization Ratio shall be greater than 0.40
to 1.00 at the end of any Fiscal Quarter;

then, upon the written request by the Banks after the
occurrence of all such events described in the immediately preceding clauses
(a), (b), (c) and (d) (the "Amendment Events"), the Borrower agrees
to promptly amend the Revolving Credit Facilities effective for so long as the
Debt to Capitalization Ratio is greater than 0.40 to 1.00 as follows:

1.                 
to give the Banks the benefit of any such More Favorable
Terms, and  

2.                 
 to increase (but not
decrease) any such Pricing Terms of the Revolving Credit Facilities as follows:

21

(i)                 
in amounts mutually agreed between the Borrower and the Banks,
or  

(ii)               
in the event such an amendment by mutual agreement is not
executed and delivered within 30 days after the Amendment Events, then the
Revolving Credit Facilities will be amended such that the Pricing Terms of the
Revolving Credit Facilities will be identical to the Pricing Terms of the
Permanent Facility.

ARTICLE
III

CONDITIONS TO BORROWINGS

SECTION
3.01.  Conditions to
Effective Date.  The obligations of
each Bank under this Agreement are subject to the satisfaction of the
conditions set forth in Section 3.02 and receipt by the Administrative Agent of
the following (in sufficient number of counterparts (except as to the Notes)
for delivery of a counterpart to each Bank and retention of one counterpart by
the Administrative Agent):

(a)               
a written letter agreement evidencing the termination of the
Fifth Amended and Restated Credit Agreement dated as of November 23, 1999 among
Mohawk Industries, Inc., SunTrust Bank, and Wachovia Bank, National
Association, and any other lenders party thereto;

(b)              
from each of the parties hereto a duly executed counterpart of
this Agreement;

(c)               
a duly executed Note by the Borrower for the account of each
Bank complying with the provisions of Section 2.04;

(d)              
an opinion of Alston & Bird LLP, counsel for the Borrower,
dated as of the Effective Date, substantially in the form of Exhibit B;

(e)               
the Borrower's most recent audited consolidated financial
statements, including, without limitation, a balance sheet and income statement
and its most recent 10-K filed with the Securities and Exchange Commission, in
such form and substance satisfactory to the Banks in their sole discretion;

(f)                
a certificate, dated as of the Effective Date, signed by a
principal financial officer of the Borrower, certifying (i) that no Default has
occurred and is continuing on the Effective Date, (ii) that the representations
and warranties of the Borrower contained in Article IV are true on and as
of the Effective Date, and (iii) in detail satisfactory to the Administrative
Agent, the amount of all outstanding Debt as of the Effective Date;

(g)               
all documents which the Administrative Agent or any Bank may
reasonably request relating to the existence of the Borrower, the corporate
authority for and the validity of the Loan Documents to which the Borrower is a
party, and any other matters relevant thereto, all in form and substance
satisfactory to the Administrative Agent, including, without limitation, a
certificate of incumbency of the Borrower, signed by the Secretary or an
Assistant Secretary of the Borrower, certifying as to the names, true
signatures and incumbency of the officer or officers of the Borrower, authorized
to execute and deliver the Loan Documents, and certified copies of the
following items as to the Borrower:  (i)
its Certificate of Incorporation, (ii) its Bylaws, (iii) a certificate of the
Secretary of State of the State of Delaware as to the good standing of the
Borrower as a Delaware corporation, and (iv) the action taken by its Board of
Directors (or a duly authorized committee thereof) authorizing its execution,
delivery and performance of the Loan Documents to which it is a party; and

22

(h)               
a Notice of Borrowing, if necessary.

SECTION
3.02.  Conditions to All
Borrowings.  The obligation of each
Bank to make a Loan on the occasion of each Borrowing is subject to the
satisfaction of the following conditions:

(a)               
receipt by the Administrative Agent of a Notice of Borrowing;

(b)              
the fact that, immediately after such Borrowing, no Default
shall have occurred and be continuing;

(c)               
the fact that the representations and warranties contained in
Article IV of this Agreement shall be true on and as of the date of such
Borrowing except for changes permitted by this Agreement and except to the
extent they relate solely to an earlier date; and

(d)              
the fact that, immediately after such Borrowing, the aggregate
outstanding principal amount of the Loans will not exceed the amount of the
aggregate Commitments.

Each Borrowing hereunder shall be deemed to be a
representation and warranty by the Borrower on the date thereof as to the facts
specified in paragraphs (b), (c) and (d) of this Section.

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants that:

SECTION
4.01.  Corporate Existence
and Power.  The Borrower is a
corporation duly organized, validly existing and in good standing under the
laws of the jurisdiction of its incorporation, is duly qualified to transact
business in every jurisdiction where, by the nature of its business, such
qualification is necessary and where failure to be so qualified could have or
create a reasonable possibility of causing a Material Adverse Effect, and has
all corporate powers and all material governmental
licenses, authorizations, consents and approvals required to carry on its
business as now conducted.

23

SECTION
4.02.  Corporate and
Governmental Authorization; No Contravention.  The execution, delivery and performance by the Borrower of this
Agreement, the Notes and the other Loan Documents to which it is a party (i)
are within its corporate powers, (ii) have been duly authorized by all
necessary corporate action, (iii) require no action by or in respect of or
filing with, any governmental body, agency or official (other than routine filings
with the Securities and Exchange Commission), (iv) do not contravene, or
constitute a default under, any provision of applicable law or regulation or of
the certificate of incorporation or by‐laws of the Borrower or of any
agreement, judgment, injunction, order, decree or other instrument binding upon
the Borrower or any of its Subsidiaries, and (v) do not result in the creation
or imposition of any Lien on any asset of the Borrower or any of its
Subsidiaries.

SECTION
4.03.  Binding Effect.  This Agreement constitutes a valid and
binding agreement of the Borrower enforceable in accordance with its terms, and
the Notes and the other Loan Documents, when executed and delivered in
accordance with this Agreement, will constitute valid and binding obligations
of the Borrower (provided that the Borrower is a party to any such Loan
Document) enforceable in accordance with their respective terms, provided
that the enforceability hereof and thereof is subject in each case to general
principles of equity and to bankruptcy, insolvency and similar laws affecting
the enforcement of creditors' rights generally.

SECTION
4.04.  Financial
Information.   (a)  The
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as
of December 31, 2002, and the related consolidated statements of income,
shareholders' equity and cash flows for the Fiscal Year then ended, reported on
by KPMG LLP, copies of which have been delivered to each of the Banks, and the
unaudited consolidated financial statements of the Borrower for the interim
period ended June 30, 2003, copies of which have been delivered to each of the
Banks, fairly present in all material respects, in conformity with GAAP, the
consolidated financial position of the Borrower and its Consolidated
Subsidiaries as of such dates and their consolidated results of operations and
cash flows for such periods stated.

(b)              
Since December 31, 2002, there has been no event, act,
condition or occurrence having, or which could reasonably be expected to have a
Material Adverse Effect.

SECTION
4.05.  No Litigation.  Except as set forth on Schedule 4.05, as of
the date hereof, there is no action, suit or proceeding pending, or to the
knowledge of the Borrower threatened in writing, against or affecting the
Borrower or any of its Subsidiaries before any court or arbitrator or any
governmental body, agency or official which could reasonably be expected to
have a Material Adverse Effect.

SECTION
4.06.  Compliance with
ERISA.   (a)  The
Borrower and each member of the Controlled Group have fulfilled their
obligations under the minimum funding standards of ERISA and the Code with
respect to each Plan and are in compliance with the presently applicable
provisions of ERISA and the Code (except where such noncompliance could not
reasonably be expected to have a Material Adverse Effect), and have not
incurred any liability to the PBGC under Title IV of ERISA.

24

(b)              
Neither the Borrower nor any member of the Controlled Group is
or ever has been obligated to contribute to any Multiemployer Plan.

SECTION
4.07.  Taxes.  There have been filed on behalf of the
Borrower and its Subsidiaries all Federal, state and local income, excise,
property and other tax returns which are required to be filed by them and all
taxes due pursuant to such returns or pursuant to any assessment received by or
on behalf of the Borrower or any Subsidiary have been paid or valid and
effective extensions therefor have been obtained.  The charges, accruals and reserves on the books of the Borrower
and its Subsidiaries in respect of taxes or other governmental charges are, in
the opinion of the Borrower, adequate. 
United States income tax returns of the Borrower and its Subsidiaries'
have been examined and closed through the Fiscal Year ended 1994.

SECTION
4.08.  Subsidiaries.  Each of the Borrower's Subsidiaries is duly
organized or formed, validly existing and in good standing under the laws of
the jurisdiction of its creation and organization, and has all powers (by
virtue of its creation and organization) and all material governmental
licenses, authorizations, consents and approvals required to carry on its
business as now conducted.  As of the
date hereof, the Borrower has no Subsidiaries except for those Subsidiaries
listed on Schedule 4.08, which accurately sets forth each such Subsidiary's
complete name and jurisdiction of creation and organization. Schedule 4.08 also
sets forth the amount of the Borrower's and each of its Subsidiaries'
Investments in the Foreign Subsidiaries as of the Closing Date.

SECTION
4.09.  Not an Investment
Company.  The Borrower is not an
"investment company" within the meaning of the Investment Company Act
of 1940, as amended.

SECTION
4.10.  Ownership of
Property; Liens.  Each of the
Borrower and its Consolidated Subsidiaries has title to its properties
sufficient for the conduct of its business, and none of such property is
subject to any Lien except as permitted in Section 5.07.

SECTION
4.11.  No Default.  Neither the Borrower nor any of its
Consolidated Subsidiaries is in default under or with respect to any agreement,
instrument or undertaking to which it is a party or by which it or any of its
property is bound which could reasonably be expected to have or cause a
Material Adverse Effect.  No Default or
Event of Default has occurred and is continuing.

SECTION
4.12.  Full Disclosure.  All information heretofore furnished by the
Borrower to any Bank for purposes of or in connection with this Agreement or
any transaction contemplated hereby is, and all such information hereafter
furnished by the Borrower to any Bank will be, true, accurate and complete in
every material respect or based on reasonable estimates on the date as of which
such information is stated or certified. 
The Borrower has disclosed to the Banks in writing any and all facts
which would have or create a reasonable possibility of causing a Material
Adverse Effect.

SECTION
4.13.  Environmental
Matters.   (a) To the best knowledge of the Borrower, after
due inquiry (which does not necessarily mean the performance of a phase I
environmental audit), (a) neither the Borrower nor any Subsidiary is subject to
any Environmental Liability and (b) neither the Borrower nor any Subsidiary has
been designated as  a potentially responsible
party under CERCLA or under any state statute similar to CERCLA in respect of
any matters that could reasonably be expected to have a Material Adverse
Effect.  To the best knowledge of the Borrower,
after due inquiry (which does not necessarily mean the performance of a phase I
environmental audit), none of the Properties has been identified on any current
or proposed (i) National Priorities List under 40 C.F.R. Section 300, (ii)
CERCLIS list or (iii) any list arising from a state statute similar to CERCLA,
in each case, in respect of any matters that could reasonably be expected to
have a Material Adverse Effect.

25

(b)              
To the best knowledge of the Borrower, after due inquiry
(which does not necessarily mean the performance of a phase I environmental
audit), no Hazardous Materials have been or are being used, produced,
manufactured, processed, treated, recycled, generated, stored, disposed of,
managed or otherwise handled at, or shipped or transported to or from the
Properties or are otherwise present at, on, in or under the Properties, or, to
the best of the knowledge of the Borrower, at or from any adjacent site or
facility, except for (i) Hazardous Materials, such as cleaning solvents,
combustion enhancers, pesticides and other materials used, produced,
manufactured, processed, treated, recycled, generated, stored, disposed of,
managed, or otherwise handled in the ordinary course of business in compliance
with all applicable Environmental Requirements, and (ii) Hazardous Materials
with respect to which the presence thereof, any required remediation with
respect thereto, or the expenses, fines, penalties and other costs relating
thereto could not reasonably be expected to have a Material Adverse Effect.

(c)               
Except for non-compliance which could not reasonably be
expected to have a Material Adverse Effect, the Borrower, and each of its
Subsidiaries is in compliance with all Environmental Requirements in connection
with the operation of the Properties and each of the Borrower's and its
Subsidiary's respective businesses.

SECTION
4.14.  Capital Stock.  All Capital Stock, debentures, bonds, notes
and all other securities of the Borrower and its Subsidiaries presently issued
and outstanding are validly and properly issued in accordance with all
applicable laws, including but not limited to, the "Blue Sky" laws of
all applicable states and the federal securities laws.  At least a majority of the issued shares of
capital stock of each of the Borrower's other Subsidiaries, if any, (other than
Wholly Owned Subsidiaries) is owned by the Borrower free and clear of any Lien
or adverse claim.

SECTION
4.15.  Margin Stock.  Neither the Borrower nor any of its
Subsidiaries is engaged principally, or as one of its important activities, in
the business of purchasing or carrying any Margin Stock, and no part of the
proceeds of any Loan will be used, except as permitted by Section 5.11, (a) to
purchase or carry any Margin Stock or (b) to extend credit to others for the
purpose of purchasing or carrying any Margin Stock.

SECTION
4.16.  Insolvency.  After giving effect to the execution and
delivery of the Loan Documents and the making of  the Loans under this Agreement, the Borrower will not be
"insolvent," within the meaning of such term as used in O.C.G.A.
§ 18‐2‐22 or as defined in § 101 of Title 11 of the
United States Code, as amended from time to time, or be unable to pay its debts
generally as such debts become due, or have an unreasonably small capital to
engage in any business or transaction, whether current or contemplated.

26

ARTICLE
V

COVENANTS

The Borrower agrees that, so long as any Commitment shall
remain in effect or any amount payable hereunder or under any Note remains
unpaid:

SECTION
5.01.  Information.  The Borrower will deliver to each of the
Banks:

(a)               
as soon as available and in any event within 90 days after the
end of each Fiscal Year, a consolidated balance sheet of the Borrower and its
Consolidated Subsidiaries as of the end of such Fiscal Year and the related
consolidated statements of earnings, stockholders' equity and cash flows for
such Fiscal Year, setting forth in each case in comparative form the figures
for the previous Fiscal Year, including the related unqualified audit opinion
issued by KPMG LLP or other independent public accountants of nationally
recognized standing, with such certification to be free of exceptions and
qualifications not acceptable to the Required Banks;

(b)              
as soon as available and in any event within 45 days after the
end of each Fiscal Quarter (other than the fourth Fiscal Quarter), a
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as
of the end of such Fiscal Quarter and the related consolidated statements of
earnings and statements of cash flows for such quarter and for the portion of
the Fiscal Year ended at the end of such quarter, setting forth in each case in
comparative form the figures for the corresponding quarter and the
corresponding portion of the previous Fiscal Year, all certified (subject to
normal year‐end adjustments) as to fairness of presentation, GAAP (except
for the failure to provide footnotes thereto) and consistency by the chief
financial officer or the corporate controller of the Borrower;

(c)               
simultaneously with the delivery of each set of financial
statements referred to in paragraphs (a) and (b) above, a certificate,
substantially in the form of Exhibit E (a "Compliance
Certificate"), of the chief financial officer, treasurer or the corporate
controller of the Borrower (i) setting forth in reasonable detail the
calculations required to establish whether the Borrower was in compliance with
the requirements of Sections 5.03, 5.04, and Section 5.07, on the date of such
financial statements and (ii) stating whether any Default exists on the date of
such certificate and, if any Default then exists, setting forth the details
thereof and the action which the Borrower is taking or proposes to take with
respect thereto;

(d)              
simultaneously with the delivery of each set of annual
financial statements referred to in paragraph (a) above, operations and cash
flow projections (indicating projected earnings and significant cash sources
and uses) prepared by the Borrower for the Fiscal Year following the Fiscal
Year reported on in such statements referred to in paragraph (a), in such form
and substance as is acceptable to the Required Banks, in their sole discretion;

27

(e)               
within 1 Domestic Business Day after the Borrower becomes
aware of the occurrence of any Default, telephonic notice to each of the Banks
of the occurrence of a Default (which telephonic notice shall set forth the
details thereof), followed, within 10 Domestic Business Days after the date of
such telephonic notice, with a certificate of the chief financial officer or
the treasurer of the Borrower setting forth the details thereof and the action
which the Borrower is taking or proposes to take with respect thereto;

(f)                
promptly upon the mailing thereof to the shareholders of the
Borrower generally, copies of all financial statements, reports and proxy
statements so mailed;

(g)               
promptly upon the filing thereof, copies of all registration
statements (other than the exhibits thereto and any registration statements on
Form S‐8 or its equivalent) and annual, quarterly or monthly reports
which the Borrower shall have filed with the Securities and Exchange
Commission;

(h)               
if and when any member of the Controlled Group (i) gives or is
required to give notice to the PBGC of any "reportable event" (as
defined in Section 4043 of ERISA) with respect to any Plan which might
constitute grounds for a termination of such Plan under Title IV of ERISA, or
knows that the plan administrator of any Plan has given or is required to give
notice of any such reportable event, a copy of the notice of such reportable
event given or required to be given to the PBGC; (ii) receives notice of
complete or partial withdrawal liability under Title IV of ERISA, a copy of
such notice; or (iii) receives notice from the PBGC under Title IV of ERISA of
an intent to terminate or appoint a trustee to administer any Plan, a copy of
such notice; and

(i)                 
from time to time such additional information regarding the
financial position or business of the Borrower and its Subsidiaries as any Bank
may reasonably request, including, without limitation, consolidating balance
sheets and statements of earnings of the Borrower and the Borrower's Subsidiaries,
in existence at such time, as at the end of any fiscal period.

SECTION
5.02.  Inspection of
Property, Books and Records.  The
Borrower will (i) keep, and cause each Subsidiary to keep, proper books of
record and account in which full, true and correct entries in conformity with
GAAP shall be made of all dealings and transactions in relation to its business
and activities; and (ii) permit, and cause each Subsidiary to permit,
representatives of any Bank at such Bank's expense prior to the occurrence of a
Default and at the Borrower's expense after the occurrence of a Default to
visit and inspect any of their respective properties, to examine and make
abstracts from any of their respective books and records and to discuss their
respective affairs, finances and accounts with their respective officers,
employees and independent public accountants. 
The Borrower agrees to cooperate and assist in such visits and
inspections, in each case upon reasonable notice, at such reasonable times and
as often as may reasonably be desired.

SECTION
5.03.  Debt to
Capitalization Ratio.  The Debt to
Capitalization Ratio shall be less than 0.60 to 1.0 at the end of each Fiscal
Quarter.

28

SECTION
5.04.  Debt to EBITDA Ratio.  The ratio of the Borrower's (a) Consolidated
Debt to (b) the sum of (i) Consolidated Net Income, (ii) Consolidated Interest
Expense, (iii) taxes on the Borrower's consolidated pre-tax income, and (iv)
Depreciation and Amortization shall not be greater than 3.5 to 1.0 at the end
of each Fiscal Quarter.  Clause (b) in
this Section 5.04 shall be calculated on a trailing 4 quarter basis as at the
end of each such Fiscal Quarter.

SECTION
5.05.  Restricted Payments.  The Borrower shall not declare or make any
Restricted Payment unless, after giving effect thereto, no Default shall exist.

SECTION
5.06.  Investments.  The Borrower will not, and will not permit
any of its Subsidiaries to, make or maintain any Investments except (a)
Investments in the Borrower or any Subsidiary, including without limitation,
advances or loans between or among the Borrower or any Subsidiary and loans and
advances to officers and employees of the Borrower or any Subsidiary in the
ordinary course of business, provided, however, in no event will Investments
made by the Borrower or any Subsidiary in Foreign Subsidiaries after the
Closing Date exceed, in the aggregate, 20% of Consolidated Total Assets
calculated immediately after giving effect thereto; (b) Investments in Persons
engaged in a Permitted Line of Business (whether or not such Person is, or
after giving effect to any such Investment becomes, a Subsidiary); (c)
Investments in Persons in connection with Permitted Acquisitions; and (d)
Investments in Approved Investments; provided, however, during the existence of
an Event of Default, neither the Borrower nor any of its Subsidiaries may make
any new Investments without the prior written consent of the Required Banks.

SECTION
5.07.  Negative Pledge.  Neither the Borrower nor any of its
Subsidiaries will  create, assume or
suffer to exist any Lien on any asset now owned or hereafter acquired by it,
except:

(a)               
Liens existing on the date of this Agreement securing Debt
outstanding on the date of this Agreement in an aggregate principal amount not
exceeding $5,000,000;

(b)              
any Lien existing on any asset of any Person at the time such
Person becomes a Consolidated Subsidiary and not created in contemplation of
such event;

(c)               
any Lien on any asset securing Debt incurred or assumed for
the purpose of financing all or any part of the cost of acquiring or
constructing such asset, provided that such Lien attaches to such asset
concurrently with or within 18 months after the acquisition or completion of
construction thereof;

(d)              
any Lien on any asset of any Person existing at the time such
Person is merged or consolidated with or into the Borrower or a Consolidated
Subsidiary and not created in contemplation of such event;

(e)               
any Lien existing on any asset prior to the acquisition
thereof by the Borrower or a Consolidated Subsidiary and not created in
contemplation of such acquisition;

(f)                
Liens securing Debt owing by any Subsidiary to the Borrower;

29

(g)               
any Lien arising out of the refinancing, extension, renewal or
refunding of any Debt secured by any Lien permitted by any of the foregoing
paragraphs of this Section, provided that (i) such Debt is not secured
by any additional assets, and (ii) the amount of such Debt secured by any such
Lien is not increased;

(h)               
Liens incidental to the conduct of its business or the
ownership of its assets which (i) do not secure Debt and (ii) do not in the
aggregate materially detract from the value of its assets or materially impair
the use thereof in the operation of its business;

(i)                 
any Lien on Margin Stock;

(j)                
Liens in connection with an Asset Securitization permitted
under Section 5.10;

(k)              
Liens involuntarily imposed and being contested in good faith,
subject to the Borrower or such Subsidiary having established reasonable
reserves therefor to the extent required under GAAP;

(l)                 
Liens against the assets of Aladdin (formerly owned by Galaxy)
under the Catoosa Co. IRB solely to the extent existing as of the date hereof;
and

(m)             
Liens against the assets of Aladdin (formerly owned by Image
Industries, Inc.) under the Summerville City IRB solely to the extent existing
as of the date of the Image Acquisition.

provided that Liens permitted by the foregoing
paragraphs (a) through (i) shall at no time secure Debt in an aggregate amount
exceeding the greater of (x) $90,000,000 or (y) 15% of Consolidated Net Worth.

SECTION
5.08.  Maintenance of
Existence.  Other than as permitted
by Section 5.09 or 5.10, the Borrower shall, and shall cause each Subsidiary
to, maintain its corporate existence and carry on its business in a Permitted
Line of Business.

SECTION
5.09.  Dissolution.  Neither the Borrower nor any of its
Subsidiaries shall suffer or permit dissolution or liquidation either in whole
or in part or redeem or retire any shares of its own stock or that of any
Subsidiary, except through corporate reorganization to the extent permitted by
Section 5.10 or in connection with a Restricted Payment which is permitted
pursuant to Section 5.05.

SECTION
5.10.  Consolidations,
Mergers and Sales of Assets.  The
Borrower will not, nor will the Borrower permit any Subsidiary to, consolidate
or merge with or into, or sell, lease or otherwise transfer all or any
substantial part of its assets to, any other Person, provided that (a)
the Borrower may merge with another Person if (i) such Person was organized
under the laws of the United States of America or one of its states, (ii) the
Borrower is the corporation surviving such merger and (iii) immediately after
giving effect to such merger, no Default shall have occurred and be continuing,
(b) Subsidiaries of the Borrower may merge with and into the Borrower, any
other Subsidiary, or any other Person if after giving effect thereto such other Person would be a Subsidiary, (c) assets may be
transferred from a Subsidiary to the Borrower or another Subsidiary, (d) any
Wholly-Owned Subsidiary may dissolve or liquidate so long as the assets of such
Subsidiary at the time of such dissolution or liquidation are transferred to
such Subsidiary's shareholder and such shareholder assumes all of the
liabilities of such Subsidiary at the time of such dissolution or liquidation,
(e) the Borrower and its Subsidiaries may factor receivables, (f) the Borrower
and its Subsidiaries may effect Asset Securitizations, and (g) the foregoing limitation
on the sale, lease or other transfer of assets shall not prohibit, during any
Fiscal Quarter, a transfer of assets by the Borrower or any Subsidiary (in a
single transaction or in a series of related transactions) unless (x) the
proceeds thereof are not reinvested within 180 days thereafter in a Permitted
Line of Business owned by the Borrower or such Subsidiary or (y) the aggregate
assets to be so transferred or utilized in a business line or segment to be so
discontinued, when combined with all other assets transferred, and all other
assets utilized in all other business lines or segments discontinued, during
such Fiscal Quarter and the immediately preceding three Fiscal Quarters,
constituted more than 20% of Consolidated Total Assets at the end of the fourth
Fiscal Quarter immediately preceding such Fiscal Quarter.

30

SECTION
5.11.  Use of Proceeds.  The proceeds of the Loans shall be used by
the Borrower to provide for working capital, to finance capital expenditures,
to finance Investments permitted under Section 5.06, and for the other general
corporate purposes of the Borrower and its Subsidiaries.  In no event shall any portion of the
proceeds of the Loans be used by the Borrower (i) except for Permitted
Acquisitions, in connection with any tender offer for, or other acquisition of,
stock of any corporation with a view towards obtaining control of such other
corporation, (ii) directly or indirectly, for the purpose, whether immediate,
incidental or ultimate, of purchasing or carrying any Margin Stock other than the
common stock or other capital stock of the Borrower, or (iii) for any purpose
in violation of any applicable law or regulation.

SECTION
5.12.  Compliance with
Laws; Payment of Taxes.  The
Borrower will, and will cause each of its Subsidiaries to, comply in all
material respects with applicable laws (including but not limited to ERISA),
regulations and similar requirements of governmental authorities (including but
not limited to PBGC), except where the necessity of such compliance is being
contested in good faith through appropriate proceedings or where noncompliance
would not have or create a reasonable possibility of causing a Material Adverse
Effect.  The Borrower will, and will
cause each of its Subsidiaries to, pay promptly when due, giving regard for
any  extensions obtained, all taxes,
assessments, governmental charges, claims for labor, supplies, rent and other
obligations which, if unpaid, might become a lien against the property of
either the Borrower or any Subsidiary, except liabilities being contested in good
faith and against which, if requested by the Banks, either the Borrower or such
Subsidiary will set up reserves in accordance with GAAP.

SECTION
5.13.  Insurance.  The Borrower will maintain, and will cause
each of its Subsidiaries to maintain (either in the name of the Borrower or in
such Subsidiary's own name), with financially sound and reputable insurance
companies, insurance on all its property in at least such amounts and against
at least such risks as are usually insured against in the same general area by
companies of established repute engaged in the same or similar business,
subject to the Borrower's right to self‐insure with respect to loss or
damage to property in an amount reasonably acceptable to the Banks.

31

SECTION
5.14.  Change in Fiscal
Year.  The Borrower shall give the
Banks at least 30 day's prior written notice of any change in the determination
of its Fiscal Year.

SECTION
5.15.  Maintenance of
Property.  Subject to the rights of
the Borrower or any Subsidiary to discontinue certain operations under
Section 5.09 or 5.10, the Borrower shall, and shall cause each Subsidiary
to, maintain all of its properties and assets in good working order, ordinary
wear and tear and obsolescence excepted (excluding losses due to fully insured,
subject to commercially reasonable deductibles, casualties).

SECTION
5.16.  Environmental
Notices.  The Borrower shall furnish
to the Banks prompt written notice of all Environmental Liabilities, pending,
threatened or anticipated Environmental Proceedings, Environmental Notices,
Environmental Judgments and Orders, and Environmental Releases at, on, in,
under or in any way affecting the Properties or any adjacent property which
would have a Material Adverse Effect, and all relevant facts, events, or
conditions relating thereto.

SECTION
5.17.  Environmental
Matters.  The Borrower will not, nor
will it permit any Third Party to, use, produce, manufacture, process, treat,
recycle, generate, store, dispose of, manage at, or otherwise handle, or ship
or transport to or from the Properties any Hazardous Materials except for
Hazardous Materials such as cleaning solvents, combustion enhancers, pesticides
and other materials used, produced, manufactured, processed, treated, recycled,
generated, stored, disposed, managed, or otherwise handled in the ordinary
course of business in compliance with all applicable Environmental
Requirements.

SECTION
5.18.  Environmental
Release.  The Borrower agrees that
upon the occurrence of an Environmental Release which would have a Material
Adverse Effect and which violates any Environmental Requirement it will
promptly investigate the extent of, and take appropriate action to remediate
such Environmental Release, whether or not ordered or otherwise directed to do
so by any Environmental Authority.

SECTION
5.19.  Debt of Subsidiaries.  The Borrower shall not permit any Subsidiary
to incur any Debt except for (i) Debt owed by a Subsidiary to the Borrower or
another Subsidiary, (ii) Debt deemed incurred in connection with an Asset
Securitization permitted under Section 5.10; (iii) (A) Debt of Subsidiaries
arising in connection with the Summerville City IRB and the Catoosa Co. IRB and
incurrence of reimbursement obligations with respect to the letters of credit
relating thereto and (B) other Debt of Subsidiaries arising in connection with
the issuance of bonds by governmental authorities so long as such Debt is
supported by a letter of credit issued by a financial institution for the
benefit of the Borrower and the Borrower is obligated to such financial
institution under a reimbursement agreement for the reimbursement of amounts
drawn under such letter of credit; and (iv) in addition to Debt incurred under
clauses (i) through (iii) of this Section, other Debt of Subsidiaries not
exceeding in the aggregate amount outstanding at any time 15% of Consolidated
Net Worth.

32

ARTICLE
VI

DEFAULTS

SECTION
6.01.  Events of Default.  If one or more of the following events
("Events of Default") shall have occurred and be continuing:

(a)               
the Borrower shall fail to pay when due any principal or any
interest on any Loan or any fee or other amount payable hereunder within 5
Domestic Business Days after such principal, interest, fee or other amount
shall become due (except at maturity on the applicable Termination Date); or

(b)              
the Borrower shall fail to observe or perform any covenant
contained in Sections 5.02(ii), 5.03 through 5.11, inclusive, or 5.19; or

(c)               
the Borrower shall fail to observe or perform any covenant or
agreement contained or incorporated by reference in this Agreement (other than
those covered by paragraph (a) or (b) above) and such failure shall not have
been cured within 30 days after the earlier to occur of (i) written notice
thereof has been given to the Borrower by the Administrative Agent at the
request of any Bank or (ii) the Borrower otherwise becomes aware of any such
failure; or

(d)              
any representation, warranty, certification or statement made
by the Borrower in Article IV of this Agreement or in any certificate,
financial statement or other document delivered pursuant to this Agreement or
any of the other Loan Documents shall prove to have been incorrect or
misleading in any material respect when made (or deemed made); or

(e)               
the Borrower or any Subsidiary shall fail to make any payment
in respect of Debt in excess of $25,000,000 in the aggregate outstanding (other
than the Notes or pursuant to any of the other Loan Documents) when due, and
such failure shall continue following any applicable grace period; or

(f)                
any event or condition shall occur which results in the
acceleration of the maturity of Debt in excess of $25,000,000 in the aggregate
outstanding of the Borrower or any Subsidiary (including, without limitation,
any "put" of such Debt to the Borrower or any Subsidiary) or enables
or, with the giving of notice or lapse of time or both, would enable, the
holders of such Debt or any Person acting on such holders' behalf to accelerate
the maturity thereof (including, without limitation, any "put" of
such Debt to the Borrower or any Subsidiary); or

(g)               
the Borrower or any Material Subsidiary shall commence a
voluntary case or other proceeding seeking liquidation, reorganization or other
relief with respect to itself or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, or shall consent to any such relief or to the
appointment of or taking possession by any such official in an involuntary case
or other proceeding commenced against it, or shall make a general assignment
for the benefit of creditors, or shall fail generally to pay its debts as they
become due, or shall take any corporate action to authorize any of the
foregoing; or

33

(h)               
an involuntary case or other proceeding shall be commenced
against the Borrower or any Material Subsidiary seeking liquidation,
reorganization or other relief with respect to it or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of it or any substantial part of its property, and such
involuntary case or other proceeding shall remain undismissed and unstayed for
a period of 60 days; or an order for relief shall be entered against the
Borrower or any Material Subsidiary under the federal bankruptcy laws as now or
hereafter in effect; or

(i)                 
the Borrower or any member of the Controlled Group shall fail
to pay when due any material amount which it shall have become liable to pay to
the PBGC or to a Plan under Title IV of ERISA; or notice of intent to
terminate a Plan or Plans (other than pursuant to a standard termination) shall
be filed under Title IV of ERISA by the Borrower, any member of the Controlled
Group, any plan administrator or any combination of the foregoing; or the PBGC
shall institute proceedings under Title IV of ERISA to terminate or to cause a
trustee to be appointed to administer any such Plan or Plans or a proceeding
shall be instituted by a fiduciary of any such Plan or Plans to enforce Section
515 or 4219(c)(5) of ERISA and such proceeding shall not have been dismissed
within 30 days thereafter; or a condition shall exist by reason of which the
PBGC would be entitled to obtain a decree adjudicating that any such Plan or
Plans must be terminated; or

(j)                
one or more judgments or orders for the payment of money in an
aggregate amount in excess of $25,000,000 (exclusive of insurance coverage if
any insurer shall have acknowledged such coverage in writing) shall be rendered
against the Borrower or any Material Subsidiary and such judgment or order
shall continue unsatisfied and unstayed for a period of 30 days; or

(k)              
one or more federal tax liens securing an aggregate amount in
excess of $5,000,000 shall be filed against the Borrower or any Material
Subsidiary under Section 6323 of the Code or a lien of the PBGC shall be filed
against the Borrower or any Material Subsidiary under Section 4068 of ERISA and
in either case such lien shall remain undischarged for a period of 25 days
after the date of filing; or

(l)                 
(i) any Person or two or more Persons acting in concert shall
have acquired, after the Closing Date, beneficial ownership (within the meaning
of Rule 13d‐3 of the Securities and Exchange Commission under the
Securities Exchange Act of 1934) of 30% or more of the outstanding shares of
the voting stock of the Borrower; or (ii) as of any date following the Closing
Date a majority of the Board of Directors of the Borrower consists of
individuals who were not either (A) directors of the Borrower, as appropriate,
as of the corresponding date of the previous year, (B) selected or nominated to
become directors by the Board of Directors of the Borrower of which a majority
consisted of individuals described in clause (A), or (C) selected or nominated
to become directors by the Board of Directors of the Borrower of which a majority
consisted of individuals described in clause (A) and individuals described in
clause (B); or

34

(m)             
an "Event of Default" shall occur under any of the
other Loan Documents; or

(n)               
(i) any of the Loan Documents shall cease to be enforceable,
or (ii) the Borrower shall assert that any Loan Document shall cease to be
enforceable.

then, and in every such event,
(i) the Administrative Agent shall, if requested by the Required Banks by
notice to the Borrower terminate the Commitments and they shall thereupon
terminate, and (ii) the Administrative Agent shall, if requested by the
Required Banks by notice to the Borrower declare the Notes (together with
accrued interest thereon) to be, and the Notes shall thereupon become,
immediately due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by the Borrower together
with interest at the Default Rate accruing on the principal amount thereof from
and after the date of such Event of Default; provided that if any Event of
Default specified in paragraph (g) or (h) above occurs with respect to the
Borrower, without any notice to the Borrower or any other act by the
Administrative Agent or the Banks, the Commitments shall thereupon terminate
and the Notes (together with accrued interest thereon) shall become immediately
due and payable without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrower together with interest
thereon at the Default Rate accruing on the principal amount thereof from and
after the date of such Event of Default. 
Notwithstanding the foregoing, each of the Banks shall have available to
it all other remedies at law or equity.

SECTION
6.02.  Notice of Default.

The Administrative Agent shall give notice to the Borrower
of any Default under Section 6.01(c) promptly upon being requested to do so by
any Bank and shall thereupon notify all Banks thereof.

ARTICLE
VII

THE AGENT

SECTION
7.01.  Appointment; Powers
and Immunities.

Each Bank hereby irrevocably appoints and
authorizes the Administrative Agent to act as its agent hereunder and under the
other Loan Documents with such powers as are specifically delegated to the
Administrative Agent by the terms hereof and thereof, together with such other
powers as are reasonably incidental thereto. 
The Administrative Agent: (a) shall have no duties or responsibilities
except as expressly set forth in this Agreement and the other Loan Documents,
and shall not by reason of this Agreement or any other Loan Document be a
trustee for any Bank; (b) shall not be responsible to the Banks for any
recitals, statements, representations or warranties contained in this Agreement
or any other Loan Document, or in any certificate or other document referred to
or provided for in, or received by any Bank under, this Agreement or any other
Loan Document, or for the validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document or any other
document referred to or provided for herein or therein or for any failure by
the Borrower to perform any of its obligations hereunder or thereunder;
(c) shall not be required to initiate or conduct any litigation or
collection proceedings hereunder or under any other Loan Document except to the
extent requested by the Required Banks, and then only on terms and conditions
satisfactory to the Administrative Agent, and (d) shall not be responsible
for any action taken or omitted to be taken by it hereunder or under any other
Loan Document or any other document or instrument referred to or provided for
herein or therein or in connection herewith or therewith, except for its own
gross negligence or willful misconduct. 
The Administrative Agent may employ agents and attorneys‐in‐fact
and shall not be responsible for the negligence or misconduct of any such
agents  or attorneys‐in‐fact
selected by it with reasonable care. 
The provisions of this Article VII are solely for the benefit of the
Administrative Agent and the Banks, and the Borrower shall not have any rights
as a third party beneficiary of any of the provisions hereof (other than
Section 7.10).  In performing its
functions and duties under this Agreement and under the other Loan Documents,
the Administrative Agent shall act solely as agent of the Banks and does not
assume and shall not be deemed to have assumed any obligation towards or
relationship of agency or trust with or for the Borrower.  The duties of the Administrative Agent shall
be ministerial and administrative in nature, and the Administrative Agent shall
not have by reason of this Agreement or any other Loan Document a fiduciary
relationship in respect of any Bank.

35

SECTION
7.02.  Reliance by
Administrative Agent.

The Administrative Agent shall be entitled to
rely upon any certification, notice or other communication (including any
thereof by telephone, telecopier, telegram or cable) believed by it to be
genuine and correct and to have been signed or sent by or on behalf of the
proper Person or Persons, and upon advice and statements of legal counsel,
independent accountants or other experts selected by the Administrative
Agent.  As to any matters not expressly
provided for by this Agreement or any other Loan Document, the Administrative
Agent shall in all cases be fully protected in acting, or in refraining from acting,
hereunder and thereunder in accordance with instructions signed by the Required
Banks, and such instructions of the Required Banks in any action taken or
failure to act pursuant thereto shall be binding on all of the Banks.

SECTION
7.03.  Defaults.

The Administrative Agent shall not be deemed to
have knowledge of the occurrence of a Default or an Event of Default (other
than the nonpayment of principal of or interest on the Loans) unless the
Administrative Agent has received notice from a Bank or the Borrower specifying
such Default or Event of Default and stating that such notice is a "Notice
of Default".  In the event that the
Administrative Agent receives such a notice of the occurrence of a Default or
an Event of Default, the Administrative Agent shall give prompt notice thereof
to the Banks.  The Administrative Agent shall (subject to
Section 9.06) take such action hereunder with respect to such Default
or Event of Default as shall be directed by the Required Banks, provided
that, unless and until the Administrative Agent shall have received such directions,
the Administrative Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default or
Event of Default as it shall deem advisable in the best interests of the Banks.

36

SECTION
7.04.  Rights of
Administrative Agent and its Affiliates as a Bank.

With respect to the Loans made by the
Administrative Agent and any Affiliate of the Administrative Agent, Wachovia in
its capacity as a Bank hereunder and any Affiliate of the Administrative Agent
or such Affiliate in its capacity as a Bank hereunder shall have the same
rights and powers hereunder as any other Bank and may exercise the same as
though Wachovia were not acting as the Administrative Agent, and the term
"Bank" or "Banks" shall, unless the context otherwise
indicates, include Wachovia in its individual capacity and any Affiliate of the
Administrative Agent in its individual capacity.  The Administrative Agent and any Affiliate of the Administrative
Agent may (without having to account therefor to any Bank) accept deposits
from, lend money to and generally engage in any kind of banking, trust or other
business with the Borrower (and any of the Borrower's Affiliates) as if
Wachovia were not acting as the Administrative Agent, and the Administrative
Agent and any Affiliate of the Administrative Agent may accept fees and other
consideration from the Borrower (and any of the Borrower's Affiliates) (in
addition to any agency fees and arrangement fees heretofore agreed to between
the Borrower and the Administrative Agent) for services in connection with
this Agreement or any other Loan Document or otherwise without having to
account for the same to the Banks.

SECTION
7.05.  Indemnification.

Each Bank severally agrees to indemnify the
Administrative Agent, to the extent the Administrative Agent shall not have
been reimbursed by the Borrower, ratably in accordance with its Commitment, for
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses (including, without limitation, counsel fees
and disbursements) or disbursements of any kind and nature whatsoever
which may be imposed on, incurred by or asserted against the Administrative
Agent in any way relating to or arising out of this Agreement or any other Loan
Document or any other documents contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby (excluding, unless
an Event of Default has occurred and is continuing, the normal administrative
costs and expenses incident to the performance of its agency duties
hereunder) or the enforcement of any of the terms hereof or thereof or any
such other documents; provided that no Bank shall be liable for any of
the foregoing to the extent they arise from the gross negligence or willful
misconduct of the Administrative Agent.  If any indemnity furnished to the
Administrative Agent for any purpose shall, in the opinion of the
Administrative Agent, be insufficient or become impaired, the Administrative
Agent may call for additional indemnity and cease, or not commence, to do the
acts indemnified against until such additional indemnity is furnished. 
 

SECTION
7.06.  Consequential
Damages.

THE AGENT SHALL NOT BE RESPONSIBLE OR LIABLE TO
ANY BANK, THE BORROWER OR ANY OTHER PERSON OR ENTITY FOR ANY PUNITIVE,
EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF THIS
AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.

37

SECTION
7.07.  Payee of Note
Treated as Owner.

The Administrative Agent may deem and treat
each Person in whose name a Loan is registered as the owner thereof for all
purposes hereof unless and until a written notice of the assignment or transfer
thereof shall have been filed with the Administrative Agent and the provisions
of Section 9.08(c) have been satisfied.  Any requests, authority or consent of any Person who at the time
of making such request or giving such authority or consent is the holder of any
Note shall be conclusive and binding on any subsequent holder, transferee or
assignee of that Note or of any Note or Notes issued in exchange therefor or
replacement thereof.

SECTION
7.08.  Nonreliance on
Administrative Agent and Other Banks.

Each Bank agrees that it has, independently and
without reliance on the Administrative Agent or any other Bank, and based on
such documents and information as it has deemed appropriate, made its own
credit analysis of the Borrower and decision to enter into this Agreement and
that it will, independently and without reliance upon the Administrative Agent
or any other Bank, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own analysis and decisions in
taking or not taking action under this Agreement or any of the other Loan
Documents.  The Administrative Agent
shall not be required to keep itself (or any Bank) informed as to the
performance or observance by the Borrower of this Agreement or any of the other
Loan Documents or any other document referred to or provided for herein or
therein or to inspect the properties or books of the Borrower or any other
Person.  Except for notices, reports and
other documents and information expressly required to be furnished to the Banks
by the Administrative Agent hereunder or under the other Loan Documents, the
Administrative Agent shall not have any duty or responsibility to provide any
Bank with any credit or other information concerning the affairs, financial
condition or business of the Borrower or any other Person (or any of their
Affiliates) which may come into the possession of the Administrative Agent.

SECTION
7.09.  Failure to Act.

Except for action expressly required of the
Administrative Agent hereunder or under the other Loan Documents, the
Administrative Agent shall in all cases be fully justified in failing or
refusing to act hereunder and thereunder unless it shall receive further
assurances to its satisfaction by the Banks of their indemnification
obligations under Section 7.05 against any and all liability and expense
which may be incurred by the Administrative Agent by reason of taking,
continuing to take, or failing to take any such action.

SECTION
7.10.  Resignation or
Removal of Administrative Agent.

Subject to the appointment and acceptance of a
successor Administrative Agent as provided below, the Administrative Agent may
resign at any time by giving notice thereof to the Banks and the Borrower and
the Administrative Agent may be removed at any time with or without cause by
the Required Banks.  Upon any such
resignation or removal, the Required Banks shall have the right to appoint a
successor Administrative Agent.  If no
successor Administrative Agent shall have been so appointed by the Required
Banks and shall have accepted such appointment within 30 days after the
retiring Administrative Agent's notice of resignation or the Required Banks'
removal of the retiring Administrative Agent, then the retiring Administrative
Agent may, on behalf of the Banks, appoint a successor Administrative
Agent.  Any successor Administrative
Agent shall be a lender which has a combined capital and surplus of at least
$500,000,000.  Upon the acceptance of
any appointment as Administrative Agent hereunder by a successor Administrative
Agent, such successor Administrative Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder.  After any retiring Administrative Agent's resignation or removal
hereunder as Administrative Agent, the provisions of this Article VII shall
continue in effect for its benefit in respect of any actions taken or omitted
to be taken by it while it was acting as the Administrative Agent
hereunder.  The appointment of any
successor Administrative Agent shall, provided no Default of Event of Default
exists, be subject to the Borrower's prior written approval.

38

ARTICLE
VIII

CHANGE IN CIRCUMSTANCES; COMPENSATION

SECTION
8.01.  Basis for
Determining Interest Rate Inadequate or Unfair.  If on or prior to the first day of any Interest Period:

(a)               
the Administrative Agent determines that deposits in Dollars
(in the applicable amounts) are not being offered in the relevant market for
such Interest Period, or

(b)              
the Required Banks advise the Administrative Agent that the
London Interbank Offered Rate as determined by the Administrative Agent will
not adequately and fairly reflect the cost to such Banks of funding the
relevant Euro‐Dollar Loans for such Interest Period,

the Administrative Agent shall forthwith give notice
thereof to the Borrower and the Banks, whereupon until the Administrative Agent
notifies the Borrower that the circumstances giving rise to such suspension no
longer exist (which the Administrative Agent agrees to do promptly upon such
circumstances ceasing to exist), the obligations of the Banks to make any Euro‐Dollar
Loan specified in such notice shall be suspended.  Unless the Borrower notifies the Administrative Agent at least 2
Domestic Business Days before the date of any Borrowing of such Euro‐Dollar
Loan for which a Notice of Borrowing has previously been given that it elects
not to borrow on such date, such Borrowing shall instead be made as a Base Rate
Borrowing.

SECTION
8.02.  Illegality.  If, after the date hereof, the adoption of
any applicable law, rule or regulation, or any change therein, or any change in
the interpretation or administration thereof by any governmental authority,
central bank or comparable agency charged with the interpretation or
administration thereof (any such agency being referred to as an
"Authority" and any such event being referred to as a "Change of
Law"), or compliance by any Bank (or its Lending Office) with any request
or directive (whether or not having the force of law) of any Authority shall
make it unlawful or impossible for any Bank (or its Lending Office) to make,
maintain or fund its Euro‐Dollar Loans, and such Bank shall so notify the Administrative Agent, the Administrative Agent shall
forthwith give notice thereof to the other Banks and the Borrower, whereupon
until such Bank notifies the Borrower and the Administrative Agent that the
circumstances giving rise to such suspension no longer exist (which the
Administrative Agent agrees to do promptly upon such circumstances ceasing to
exist), the obligation of such Bank to make Euro‐Dollar Loans, shall be
suspended.  Before giving any notice to
the Administrative Agent pursuant to this Section, such Bank shall designate a
different Lending Office if such designation will avoid the need for giving
such notice and will not, in the judgment of such Bank, be otherwise materially
disadvantageous to such Bank.  If such
Bank shall determine that it may not lawfully continue to maintain and fund any
of its outstanding Euro‐Dollar Loans to maturity and shall so specify in
such notice, the Borrower shall immediately prepay in full the then outstanding
principal amount of each Euro‐Dollar Loan of such Bank, together with
accrued interest thereon and any amount due such Bank pursuant to Section
8.05(a).  Concurrently with prepaying
each such Euro‐Dollar Loan, the Borrower shall borrow a Base Rate Loan in
an equal principal amount from such Bank (on which interest and principal shall
be payable contemporaneously with the related Euro‐Dollar Loans of the
other Banks), and such Bank shall make such a Base Rate Loan.

39

SECTION
8.03.  Increased Cost and
Reduced Return.   (a)  If
after the date hereof, a Change of Law or compliance by any Bank (or its
Lending Office) with any request or directive (whether or not having the force
of law) of any Authority:

(i)                 
shall subject any Bank (or its Lending Office) to any tax,
duty or other charge with respect to its Euro‐Dollar Loans, its Note or
its obligation to make Euro‐Dollar Loans, or shall change the basis of
taxation of payments to any Bank (or its Lending Office) of the principal of or
interest on its Euro‐Dollar Loans or any other amounts due under this
Agreement in respect of its Euro‐Dollar Loans or its obligation to make
Euro‐Dollar Loans (except for changes in the rate of tax on the overall
net income of such Bank or its Lending Office imposed by the jurisdiction in
which such Bank's principal executive office or Lending Office is located); or

(ii)               
shall impose, modify or deem applicable any reserve, special
deposit or similar requirement (including, without limitation, any such
requirement imposed by the Board of Governors of the Federal Reserve System,
but excluding with respect to any Euro‐Dollar Loan any such requirement
included in an applicable Euro‐Dollar Reserve Percentage) against assets
of, deposits with or for the account of, or credit extended by, any Bank (or
its Lending Office); or

(iii)              
shall impose on any Bank (or its Lending Office) or on the
United States market for certificates of deposit or the London interbank market
any other condition affecting its Euro‐Dollar Loans, its Note or its
obligation to make Euro‐Dollar Loans;

and the result of any of the foregoing is to increase the
cost to such Bank (or its Lending Office) of making or maintaining any Euro‐Dollar
Rate Loan, or to reduce the amount of any sum received or receivable by such
Bank (or its Lending Office) under this Agreement or under its Notes with
respect thereto, by an amount deemed by such Bank to be material, then, within
15 days after demand by such Bank (with a copy to the Administrative Agent),
the Borrower shall pay to such Bank such additional amount or amounts as will
compensate such Bank for such increased cost or reduction.

40

(b)              
If any Bank shall have determined that after the date hereof
the adoption of any applicable law, rule or regulation regarding capital
adequacy, or any change therein, or any change in the interpretation or
administration thereof, or compliance by any Bank (or its Lending Office) with
any request or directive regarding capital adequacy (whether or not having the
force of law) of any Authority, has or would have the effect of reducing the
rate of return on such Bank's capital as a consequence of its obligations
hereunder to a level below that which such Bank could have achieved but for
such adoption, change or compliance (taking into consideration such Bank's
policies with respect to capital adequacy) by an amount deemed by such Bank to
be material, then from time to time, within 15 days after demand by such Bank,
the Borrower shall pay to such Bank such additional amount or amounts as will
compensate such Bank for such reduction.

(c)               
Each Bank will promptly notify the Borrower and the
Administrative Agent of any event of which it has knowledge, occurring after
the date hereof, which will entitle such Bank to compensation pursuant to this
Section and will designate a different Lending Office if such designation will
avoid the need for, or reduce the amount of, such compensation and will not, in
the judgment of such Bank, be otherwise materially disadvantageous to such
Bank.  A certificate of any Bank
claiming compensation under this Section and setting forth the additional
amount or amounts to be paid to it hereunder shall be conclusive in the absence
of manifest error.  In determining such
amount, such Bank may use any reasonable averaging and attribution methods.

(d)              
The provisions of this Section 8.03 shall be applicable with
respect to any Participant, Assignee or other Transferee (unless the date of
any such assignment or transfer, a condition listed under Section 8.02 or
8.03 existed with respect to any such Participant, Assignee or other Transferee),
and any calculations required by such provisions shall be made based upon the
circumstances of such Participant, Assignee or other Transferee.

SECTION
8.04.  Base Rate Loans
Substituted for Euro‐Dollar Loans. 
If (i) the obligation of any Bank to make or maintain Euro‐Dollar
Loans has been suspended pursuant to Section 8.02 or (ii) any Bank has demanded
compensation under Section 8.03, and the Borrower shall, by at least 5 Euro‐Dollar
Business Days' prior notice to such Bank through the Administrative Agent, have
elected that the provisions of this Section shall apply to such Bank, then,
unless and until such Bank notifies the Borrower that the circumstances giving
rise to such suspension or demand for compensation no longer apply:

(a)               
all Loans which would otherwise be made by such Bank as Euro‐Dollar
Loans, as the case may be, shall be made instead as Base Rate Loans; provided,
that interest and principal on such Loans shall be payable contemporaneously
with the related Euro‐Dollar Loans of the other Bank), and

41

(b)              
after each of its Euro‐Dollar Loan, has been repaid, all
payments of principal which would otherwise be applied to repay such Euro‐Dollar
Loans shall be applied to repay its Base Rate Loans instead.

SECTION
8.05.  Compensation.  Upon the request of any Bank, delivered to the
Borrower and the Administrative Agent, the Borrower shall pay to such Bank such
amount or amounts as shall compensate such Bank for any loss, cost or expense
actually incurred by such Bank and not compensated pursuant to
Section 8.03 as a result of:

(a)               
any payment or prepayment (pursuant to Section 2.09(b),
Section 8.02 or otherwise) of a Euro‐Dollar Loan on a date other than the
last day of an Interest Period for such Euro‐Dollar Loan; or

(b)              
any failure by the Borrower to prepay a Euro‐Dollar Loan
on the date for such prepayment specified in the relevant notice of prepayment
hereunder; or

(c)               
any failure by the Borrower to borrow a Euro‐Dollar Loan
on the date for the Euro‐Dollar Borrowing of which such Euro‐Dollar
Loan is a part specified in the applicable Notice of Borrowing delivered
pursuant to Section 2.02;

such compensation to include, without limitation, an
amount equal to the excess, if any, of (x) the amount of interest which would
have accrued on the amount so paid or prepaid or not prepaid or borrowed for
the period from the date of such payment, prepayment or failure to prepay or
borrow to the last day of the then current Interest Period for such Euro‐Dollar
Loan (or, in the case of a failure to prepay or borrow, the Interest Period for
such Euro‐Dollar Loan which would have commenced on the date of such
failure to prepay or borrow) at the applicable rate of interest for such Euro‐Dollar
Loan provided for herein over (y) the amount of interest (as reasonably
determined by such Bank) such Bank would have paid on deposits in Dollars of
comparable amounts having terms comparable to such period placed with it by
leading banks in the London interbank market.

SECTION
8.06.  Replacement of Banks.  If any Bank (an "Affected Bank")
makes demand for amounts owed under Section 8.03 (other than due to any change
in the Eurodollar Reserve Percentage), or gives notice under Section 8.01 or
8.02 that it can no longer participate in Euro-Dollar Loans, then in each case
the Borrower shall have the right, if no Default or Event of Default exists,
and subject to the terms and conditions set forth in Section 9.08(c) with
respect to assignments of Loans, to designate an Assignee (a "Replacement
Bank") to purchase the Affected Bank's share of outstanding Loans and all
other obligations hereunder and to assume the Affected Bank's obligations to
the Borrower under this Agreement; provided, that, any
Replacement Bank (and, in any event, may not be an Affiliate of the
Borrower).  Subject to the foregoing,
the Affected Bank agrees to assign without recourse to the Replacement Bank its
share of outstanding Loans and its Commitment, and to delegate to the
Replacement Bank its obligations to the Borrower under this Agreement.  Upon such sale and delegation by the
Affected Bank and the purchase and assumption by the Replacement Bank, and
compliance with the provisions of Section 9.08(c), the Affected Bank shall
cease to be a "Bank" hereunder and the Replacement Bank shall become
a "Bank" under this Agreement; provided, however, that any Affected Bank shall continue to be entitled to the
indemnification provisions contained elsewhere herein.

42

ARTICLE
IX

MISCELLANEOUS

SECTION
9.01.  Notices.  All notices, requests and other
communications to any party hereunder shall be in writing (including bank wire,
telecopier or similar writing) and shall be given to such party at its address
or telecopier number set forth on the signature pages hereof or such other
address or telecopier number as such party may hereafter specify for the
purpose by notice to each other party. 
Each such notice, request or other communication shall be effective (i)
if given by telecopier, when such telecopy is transmitted to the telecopier
number specified in this Section and the appropriate confirmation is received,
(ii) if given by mail, 72 hours after such communication is deposited in the
mails, certified or registered mail, with first class postage prepaid,
addressed as aforesaid or (iii) if given by any other means, when delivered at
the address specified in this Section; provided, that notices to the Administrative
Agent under Article II or Article VIII shall not be effective until
received.

SECTION
9.02.  No Waivers.  No failure or delay by the Administrative
Agent or any Bank in exercising any right, power or privilege hereunder or
under any Note or other Loan Document shall operate as a waiver thereof nor
shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies herein provided
shall be cumulative and not exclusive of any rights or remedies provided by
law.

SECTION
9.03.  Expenses;
Documentary Taxes.  The Borrower
shall pay (i) all out‐of‐pocket expenses of the Administrative
Agent, including reasonable fees and disbursements actually incurred of special
counsel for the Administrative Agent, in connection with the preparation of
this Agreement and the other Loan Documents, any waiver or consent hereunder or
thereunder or any amendment hereof or thereof and (ii) if a Default or an Event
of Default occurs, all out‐of‐pocket expenses incurred by the
Administrative Agent and the Banks, including reasonable fees and disbursements
of counsel, actually incurred in connection with such Default and collection
and other enforcement proceedings resulting therefrom, including out‐of‐pocket
expenses incurred in enforcing this Agreement and the other Loan
Documents.  The Borrower shall indemnify
the Administrative Agent and each Bank against any transfer taxes, documentary
taxes, assessments or charges made by any Authority by reason of the execution
and delivery of this Agreement or the other Loan Documents but not by reason of
any participation or assignment by the Banks, their successors or assigns.

SECTION
9.04.  Indemnification.  The Borrower shall indemnify the
Administrative Agent, the Banks and each Affiliate thereof and their respective
directors, officers, employees and agents (each, an "Indemnified
Party") from, and hold each of them harmless against, any and all losses,
liabilities, claims or damages to which any of them may become subject, insofar
as such losses, liabilities, claims or damages arise out of or result from any
actual or proposed use by the Borrower of the proceeds of any extension of
credit by any Bank hereunder or breach by the Borrower of this Agreement or any
other Loan Document or from any investigation,
litigation (including, without limitation, any actions taken by the
Administrative Agent or any of the Banks to enforce this Agreement or any of
the other Loan Documents) or other proceeding (including, without limitation,
any threatened investigation or proceeding) relating to the foregoing, and the
Borrower shall reimburse the Administrative Agent and each Bank, and each
Affiliate thereof and their respective directors, officers, employees and
agents, upon demand for any expenses (including, without limitation, legal
fees) incurred in connection with any such investigation or proceeding; but
excluding any such losses, liabilities, claims, damages or expenses (i)
incurred by reason of the gross negligence or willful misconduct of the Person
to be indemnified or (ii) to the extent arising directly out of or resulting
directly from claims of one or more Indemnified Parties against another
Indemnified Party.

43

SECTION
9.05.  Sharing of Setoffs.  Each Bank agrees that if it shall, by
exercising any right of setoff or counterclaim or otherwise, receive payment of
a proportion of  the aggregate amount of
principal and interest owing with respect to the Note held by it which is
greater than the proportion received by any other Bank in respect of the aggregate
amount of all principal and interest owing with respect to the Note held by
such other Bank, the Bank receiving such proportionately greater payment shall
purchase such participations in the Notes held by the other Banks owing to such
other Banks, and such other adjustments shall be made, as may be required so
that all such payments of principal and interest with respect to the Note held
by the Bank owing to such other Banks shall be shared by the Banks pro rata; provided
that (i) nothing in this Section shall impair the right of any Bank to exercise
any right of setoff or counterclaim it may have and to apply the amount subject
to such exercise to the payment of indebtedness of the Borrower other than its
indebtedness under the Notes, and (ii) if all or any portion of such payment
received by the purchasing Bank is thereafter recovered from such purchasing
Bank, such purchase from such other Banks shall be rescinded and such other
Bank shall repay to the purchasing Bank the purchase price of such participation
to the extent of such recovery together with an amount equal to such other
Banks' ratable share (according to the proportion of (x) the amount of such
other Banks' required repayment to (y) the total amount so recovered from the
purchasing Bank) of any interest or other amount paid or payable by the
purchasing Bank in respect of the total amount so recovered.  The Borrower agrees, to the fullest extent
it may effectively do so under applicable law, that any holder of a
participation in a Note, whether or not acquired pursuant to the foregoing
arrangements, may exercise rights of setoff or counterclaim and other rights
with respect to such participation as fully as if such holder of a
participation were a direct creditor of the Borrower in the amount of such
participation.

SECTION
9.06.  Amendments and
Waivers.   (a)  Any
provision of this Agreement, the Notes or any other Loan Documents may be
amended or waived if, but only if, such amendment or waiver is in writing and
is signed by the Borrower and the Required Banks (and, if the rights or duties
of the Administrative Agent are affected thereby, by the Administrative Agent);
provided that, no such amendment or waiver shall, unless signed by all
Banks, (i) change the Commitments of any Bank or subject any Bank to any
additional obligation, (ii) change the principal of or decrease the rate of
interest on any Loan or decrease any fees (other than fees payable to the
Administrative Agent) hereunder, (iii) extend the date fixed for any payment of
principal of or interest on any Loan or any fees hereunder, (iv) change the
amount of principal, interest or fees due on any date fixed for the payment
thereof, (v) change the percentage of the Commitments or of the aggregate
unpaid principal amount of the Notes, or the number of Banks, which shall be
required for the Banks or any of them to take any  action
under this Section or any other provision of this Agreement, (vi) change the
manner of application of any payments made under this Agreement or the Notes,
(vii) release or substitute all or any substantial part of the collateral (if
any) held as security for the Loans, or (viii) release any Guarantee (if any)
given to support payment of the Loans.

44

(b)              
The Borrower will not solicit, request or negotiate for or
with respect to any proposed waiver or amendment of any of the provisions of
this Agreement unless each Bank shall be informed thereof by the Borrower and
shall be afforded an opportunity of considering the same and shall be supplied
by the Borrower with sufficient information to enable it to make an informed
decision with respect thereto.  Executed
or true and correct copies of any waiver or consent effected pursuant to the
provisions of this Agreement shall be delivered by the Borrower to each Bank
forthwith following the date on which the same shall have been executed and
delivered by the requisite percentage of Banks.  The Borrower will not, directly or indirectly, pay or cause to be
paid any remuneration, whether by way of supplemental or additional interest,
fee or otherwise, to any Bank (in its capacity as such) as consideration for or
as an inducement to the entering into by such Bank of any waiver or amendment
of any of the terms and provisions of this Agreement unless such remuneration
is concurrently paid, on the same terms, ratably to each of the Banks.

SECTION
9.07.  No Margin Stock
Collateral.  Each of the Banks
represents to the Administrative Agent and each of the other Banks that it in
good faith is not, directly or indirectly (by negative pledge or otherwise),
relying upon any Margin Stock as collateral in the extension or maintenance of
the credit provided for in this Agreement.

SECTION
9.08.  Successors and
Assigns.   (a)  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns; provided that
the Borrower may not assign or otherwise transfer any of its rights under this
Agreement.

(b)              
Any Bank may at any time sell to one or more Persons (each a
"Participant") participating interests in any Loan owing to such
Bank, its Note, its Commitment hereunder or any other interest of such Bank
hereunder.  In the event of any such
sale by a Bank of a participating interest to a Participant, such Bank's
obligations under this Agreement shall remain unchanged, such Bank shall remain
solely responsible for the performance thereof, such Bank shall remain the
holder of any such Note for all purposes under this Agreement, and the Borrower
and the Administrative Agent shall continue to deal solely and directly with
such Bank in connection with such Bank's rights and obligations under this
Agreement.  In no event shall a Bank
that sells a participation be obligated to the Participant to take or refrain
from taking any action hereunder except that such Bank may agree that it will
not (except as provided below), without the consent of the Participant, agree
to (i) extend any date fixed for the payment of principal of or interest on the
related loan or loans, (ii) the change of the amount of any principal, interest
or fees due on any date fixed for the payment thereof with respect to the
related loan or loans, (iii) the change of the principal of the related loan or
loans, (iv) any decrease in the rate at which either interest is payable
thereon or (if the Participant is entitled to any part thereof) commitment fee
is payable hereunder from the rate at which the Participant is entitled to
receive interest or commitment fee (as the case may be) in respect of such
participation, (v) the release or substitution of all or any substantial part
of the collateral (if any) held as security for the Loans, or (vi) the release
of any Guarantee (if any) given to support payment of the Loans.  Unless such Participant is a Related Fund
with respect to such Bank, each Bank selling a participating interest in any
Loan, Note, Commitment or other interest under this Agreement shall, within 10
Domestic Business Days of such sale, provide the Borrower and the
Administrative Agent with written notification stating that such sale has occurred
and identifying the Participant and the interest purchased by such
Participant.  The Borrower agrees that
each Participant shall be entitled to the benefits of Article VIII with respect
to its participation in Loans outstanding from time to time.

45

(c)               
Any Bank may at any time assign to one or more banks or
financial institutions (each an "Assignee") all, or a proportionate
part of all, of its rights and obligations under this Agreement and the Notes,
and such Assignee shall assume all such rights and obligations, pursuant to an
Assignment and Acceptance in the form attached hereto as Exhibit C,
executed by such Assignee and such transferor Bank and the Administrative
Agent; provided that (i) no interest may be sold by a Bank pursuant to this
paragraph (c) unless the Assignee shall agree to assume ratably equivalent
portions of the transferor Bank's Commitment, (ii) the amount of the Commitment
of the assigning Bank subject to such assignment (determined as of the
effective date of the assignment) shall be equal to $10,000,000 (or any larger
multiple of $1,000,000), and (iii) no interest may be sold by a Bank pursuant
to this paragraph (c) to any Assignee that is not then a Bank without the
consent of the Borrower and the Administrative Agent, which consent shall not
be unreasonably withheld or delayed, and (iv) a Bank may not have more than 2
Assignees that are not then Banks at any one time.  Each Bank agrees to notify the Agent who will notify the other
Banks of any assignment hereunder. Upon (A) execution of the Assignment and
Acceptance by such transferor Bank, such Assignee, the Administrative Agent (if
applicable) and the Borrower, (B) delivery of an executed copy of the
Assignment and Acceptance to the Borrower, and the Administrative Agent, and
(C) payment by such Assignee to such transferor Bank of an amount equal to the
purchase price agreed between such transferor Bank and such Assignee, such
Assignee shall for all purposes be a Bank party to this Agreement and shall
have all the rights and obligations of a Bank under this Agreement to the same
extent as if it were an original party hereto with a Commitment as set forth in
such instrument of assumption, and the transferor Bank shall be released from
its obligations hereunder to a corresponding extent, and no further consent or
action by the Borrower, the Banks or the Administrative Agent shall be
required.  Upon the consummation of any
transfer to an Assignee pursuant to this paragraph (c), the transferor Bank,
the Administrative Agent and the Borrower shall make appropriate arrangements
so that, if required, a new Note is issued to each of such Assignee and such
transferor Bank.

(d)              
Subject to the provisions of Section 9.09, the Borrower
authorizes each Bank to disclose to any Participant, Assignee or other transferee
(each a "Transferee") and any prospective Transferee any and all
financial information in such Bank's possession concerning the Borrower which
has been delivered to such Bank by the Borrower pursuant to this Agreement or
which has been delivered to such Bank by the Borrower in connection with such
Bank's credit evaluation prior to entering into this Agreement.

(e)               
No Transferee shall be entitled to receive any greater payment
under Section 8.03 than the transferor Bank would have been entitled to receive
with respect to the rights transferred, unless such transfer is made with the
Borrower's prior written consent or by reason of the provisions of Section 8.02
or 8.03 requiring such Bank to designate a different Lending Office under
certain circumstances or at a time when the circumstances giving rise to such
greater payment did not exist.

46

SECTION
9.09.  Confidentiality.  Each Bank agrees to exercise its best
efforts to keep any information delivered or made available by the Borrower to
it which is clearly indicated to be confidential information, confidential from
any one other than persons employed or retained by such Bank who are or are
expected to become engaged in evaluating, approving, structuring or
administering the Loans; provided, however that nothing herein shall
prevent any Bank from disclosing such information (i) to any other Bank, (ii)
upon the order of any court or administrative agency, (iii) upon the request or
demand of any regulatory agency or authority having jurisdiction over such
Bank, (iv) which has been publicly disclosed, (v) to the extent reasonably
required in connection with any litigation to which the Administrative Agent,
any Bank or their respective Affiliates may be a party, (vi) to the extent
reasonably required in connection with the exercise of any remedy hereunder,
(vii) to such Bank's legal counsel and independent auditors and (viii) to any
actual or proposed Participant, Assignee or other Transferee of all or part of
its rights hereunder which has agreed in writing to be bound by the provisions
of this Section 9.09.  Notwithstanding
anything herein to the contrary, "Information" shall not include, and
each Bank may disclose to any and all persons, without limitation of any kind,
any information with respect to the U.S. federal income tax treatment and U.S.
federal income tax structure of the transactions contemplated hereby and all
materials of any kind (including opinions or other tax analysis) that are
provided to such Bank relating to such tax treatment and tax structure.

SECTION
9.10.  Representation by
Banks.  Each Bank hereby represents
that it is a commercial lender or financial institution which makes loans in
the ordinary course of its business and that it will make its Loans hereunder
for its own account in the ordinary course of such business; provided,
however that, subject to Section 9.08, the disposition of the Note or Notes
held by that Bank shall at all times be within its exclusive control.

SECTION
9.11.  Obligations Several.  The obligations of each Bank hereunder are
several, and no Bank shall be responsible for the obligations or commitment of
any other Bank hereunder.  Nothing
contained in this Agreement and no action taken by Banks pursuant hereto shall
be deemed to constitute the Banks to be a partnership, an association, a joint
venture or any other kind of entity. 
The amounts payable at any time hereunder to each Bank shall be a
separate and independent debt, and each Bank shall be entitled to protect and
enforce its rights arising out of this Agreement or any other Loan Document,
subject to any restrictions requiring actions to be taken upon the consent of
the Required Banks, and it shall not be necessary for any other Bank to be
joined as an additional party in any proceeding for such purpose.

SECTION
9.12.  Georgia Law.  This Agreement and each Note shall be
construed in accordance with and governed by the law of the State of Georgia.

SECTION
9.13.  Interpretation.  No provision of this Agreement or any of the
other Loan Documents shall be construed against or interpreted to the
disadvantage of any party hereto by any court or other governmental or judicial
authority by reason of such party having or being deemed to have structured or
dictated such provision.

47

SECTION
9.14.  WAIVER OF JURY
TRIAL; CONSENT TO JURISDICTION.  TO
THE FULLEST EXTENT PERMITTED BY LAW, THE BORROWER (A) THE AGENT AND EACH OF THE
BANKS IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS, OR
ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, (B) SUBMITS TO THE
NONEXCLUSIVE PERSONAL JURISDICTION IN THE STATE OF GEORGIA, THE COURTS THEREOF
AND THE UNITED STATES DISTRICT COURTS SITTING THEREIN, FOR THE ENFORCEMENT OF
THIS AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS, (C) WAIVES ANY AND ALL
PERSONAL RIGHTS UNDER THE LAW OF ANY JURISDICTION TO OBJECT ON ANY BASIS
(INCLUDING, WITHOUT LIMITATION, INCONVENIENCE OF FORUM) TO JURISDICTION OR
VENUE WITHIN THE STATE OF GEORGIA FOR THE PURPOSE OF LITIGATION TO ENFORCE THIS
AGREEMENT, THE NOTES OR THE OTHER LOAN DOCUMENTS, AND (D) AGREES THAT SERVICE
OF PROCESS MAY BE MADE UPON IT IN THE MANNER PRESCRIBED IN SECTION 9.01 FOR THE
GIVING OF NOTICE TO THE BORROWER. 
NOTHING HEREIN CONTAINED, HOWEVER, SHALL PREVENT THE BANKS FROM BRINGING
ANY ACTION OR EXERCISING ANY RIGHTS AGAINST ANY SECURITY AND AGAINST THE
BORROWER PERSONALLY, AND AGAINST ANY ASSETS OF THE BORROWER WITHIN ANY OTHER
STATE OR JURISDICTION.

 

[signatures on the following pages]

48

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

MOHAWK INDUSTRIES, INC.      (SEAL)

By:______ ______ 

Title:

160 South Industrial Boulevard

Calhoun, Georgia  30703-7002

Attention:  Chief Financial Officer or
Treasurer

Telecopier number:  706-624-2052

Confirmation number:  706-624-2103

49

	
  COMMITMENTS:

  	
  WACHOVIA BANK, NATIONAL
  ASSOCIATION, as Administrative Agent and as a Bank                                         
   

  
	
  $50,000,000

  	
  By:
 Title:

  
	

  	
  Lending Office

  
  

  301 South College Street

  Charlotte, North Carolina 28288

  Attention:  ____________

  Telecopier number:  _______________

  Confirmation number:  ______________

  

50

	

   
	

  	
  SUNTRUST BANK

  
	
  $50,000,000

  	
  By:
 Title:

  
	

  	
  Lending Office

  

  
  SunTrust Bank,

  303 Peachtree Street, 3rd Floor

  Atlanta, Georgia 30308

  Telecopier number:  404-575-2594

  Confirmation number:  404-588-7033

  Attention:  Ken Bauchle, Vice
  President

  
	
  ____________

  TOTAL COMMITMENTS:

  	

  
	
  $100,000,000

  	

  

51

Exhibit A

NOTE

Atlanta, Georgia

As of _____________, 20__

For value received, MOHAWK INDUSTRIES, INC., a Delaware
corporation (the "Borrower"), promises to pay to the order of
________________________, (the "Bank"), for the account of its
Lending Office, the principal sum of ____________________________________
MILLION DOLLARS ($____________), or such lesser amount as shall equal the
unpaid principal amount of each  Loan
made by the Bank to the Borrower pursuant to the Credit Agreement referred to
below, on the dates and in the amounts provided in the Credit Agreement.  The Borrower promises to pay interest on the
unpaid principal amount of this Note on the dates and at the rate or rates provided
for in the Credit Agreement referred to below. 
Interest on any overdue principal of and, to the extent permitted by
law, overdue interest on the principal amount hereof shall bear interest at the
Default Rate, as provided for in the Credit Agreement.  All such payments of principal and interest
shall be made in lawful money of the United States in Federal or other
immediately available funds at the office of the Bank located at
________________, or such other address as may be specified from time to time
pursuant to the Credit Agreement.

All Loans made by the Bank, the respective maturities
thereof, the interest rates from time to time applicable thereto, and all
repayments of the principal thereof shall be recorded by the Bank and, prior to
any transfer hereof, endorsed by the Bank on the schedule attached hereto, or
on a continuation of such schedule attached to and made a part hereof; provided
that the failure of the Bank to make any such recordation or endorsement shall
not affect the obligations of the Borrower hereunder or under the Credit
Agreement.

This Note is one of the "Notes" referred to in
the Credit Agreement dated as of September 30, 2003 among the Borrower,
SunTrust Bank, Wachovia Bank, National Association, and the other Banks from
time to time party thereto (as the same may be amended and modified from time
to time, the "Credit Agreement"). 
Terms defined in the Credit Agreement are used herein with the same
meanings.  Reference is made to the
Credit Agreement for provisions for the optional and mandatory  prepayment and the repayment hereof and the
acceleration of the maturity hereof.

52

IN WITNESS WHEREOF, the Borrower has caused this Note to
be duly executed, under seal, by its duly authorized officer as of the day and
year first above written.

MOHAWK INDUSTRIES, INC.      (SEAL)

By:______ ______ 

Title:

53

Note (cont'd)

	
   LOANS AND
   PAYMENTS OF PRINCIPAL

   
	
  Date

  	
  Base Rate or Euro-Dollar Loan

  	
  Amount of Loan

  	
  Amount of Principal Repaid

  	
  Maturity 

  Date

  	
  Notation Made By

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  
	
                                                                                                                                                               
   

  

54

Exhibit B

OPINION OF

COUNSEL FOR THE BORROWER

To be dated as of the Effective Date and in the form
attached hereto.

56

Exhibit C

ASSIGNMENT AND ACCEPTANCE

Dated __________ ___, ________

Reference is made to the Credit Agreement dated as of
September 30, 2003 (together with all amendments and modifications thereto, the
"Credit Agreement") among Mohawk Industries, Inc., a Delaware
corporation (the "Borrower"), SunTrust Bank, Wachovia Bank, National
Association, and the other banks from time to time party thereto (collectively,
the "Banks").  Terms defined
in the Credit Agreement are used herein with the same meaning.

_____________________ (the "Assignor") and
____________ (the "Assignee") agree as follows:

1.                 
The Assignor hereby sells and assigns to the Assignee, and the
Assignee hereby purchases and assumes from the Assignor, a _____% interest in
and to all of the Assignor's rights and obligations under the Credit Agreement
as of the Effective Date (as defined below) (including, without limitation, a
____% interest (which on the Effective Date hereof is $____________) in the
aggregate principal amount of the Assignor's Commitment) and a ______ interest
(which on the Effective Date hereof is $____________) in the Loans owing to the
Assignor and a __________ interest (which on the Effective Date hereof is
$__________) in the Note held by the Assignor (which on the Effective Date
hereof is $____________).

2.                 
The Assignor (i) makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with the Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Credit Agreement or any other Loan Documents furnished pursuant
thereto, other than that it is the legal and beneficial owner of the interest
being assigned by it hereunder, that such interest is free and clear of any
adverse claim and that as of the date hereof the aggregate principal amount of
the Assignor's Commitments (without giving effect to assignments thereof which
have not yet become effective) is $____________ and the aggregate outstanding
principal amount of all Loans owing to it (without giving effect to assignments
thereof which have not  yet become
effective) is $____________; (ii) makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the
Borrower or the performance or observance by the Borrower of any of its
obligations under the Credit Agreement or any other instrument or document
furnished pursuant thereto; and (iii) requests that the Borrower execute a new
Note dated ____________, ____ in the principal amount of $____________ payable
to the order of the Assignee.

3.                 
The Assignee (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial statements referred to
in Section 4.04(a) thereof (or any more recent financial statements of the
Borrower delivered pursuant to Section 5.01(a) or (b) thereof) and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and Acceptance; (ii) agrees
that it will, independently and without reliance upon the Assignor or any other
Bank and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Credit Agreement; (iii) confirms that it is a bank or
financial institution; (iv) agrees that it will perform in accordance with
their terms all of the obligations which by the terms of the Credit Agreement
are required to be performed by it as a Bank; (v) specifies as its Lending
Office (and address for notices) the office set forth beneath its name on the
signature pages hereof, (vi) represents and warrants that the execution,
delivery and performance of this Assignment and Acceptance are within its
corporate powers and have been duly authorized by all necessary corporate action[,
and (vii) attaches the forms prescribed by the Internal Revenue Service of the
United States certifying as to the Assignee's status for purposes of
determining exemption from United States withholding taxes with respect to all
payments to be made to the Assignee under the Credit Agreement and the Notes or
such other documents as are necessary to indicate that all such payments are
subject to such taxes at a rate reduced by an applicable tax treaty].

57

4.                 
The Effective Date for this Assignment and Acceptance shall be
_______________ (the "Effective Date").

5.                 
From and after the Effective Date, (i) the Assignee shall be a
party to the Credit Agreement and, to the 
extent rights and obligations have been transferred to it by this
Assignment and Acceptance, have the rights and obligations of a Bank thereunder
and (ii) the Assignor shall, to the extent its rights and obligations have been
transferred to the Assignee by this Assignment and Acceptance, relinquish its
rights (other than under Section 9.04 of the Credit Agreement) and be released
from its obligations under the Credit Agreement.

6.                 
From and after the Effective Date, the Borrower shall make all
payments in respect of the interest assigned hereby to the Assignee.  The Assignor and Assignee shall make all
appropriate adjustments in payments for periods prior to such acceptance by the
Borrower directly between themselves.

58

7.                 
This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of Georgia.

[NAME OF ASSIGNOR]

By:______ ______ 

Title:

[NAME OF ASSIGNEE]

By:______ ______ 

Title:

Lending Office:

[Address]

CONSENTED AND AGREED TO:

MOHAWK INDUSTRIES, INC.

By:________ 

Title:

59

Exhibit D-1

NOTICE OF BORROWING

___________, _______

Wachovia Bank, National Association,

as Administrative Agent

301 South College Street

Charlotte, North Carolina 28288

Re:            Credit
Agreement (as amended and modified from time to time, the "Credit
Agreement") dated as of September 30, 2003 by and among MOHAWK INDUSTRIES,
INC., SUNTRUST BANK, WACHOVIA BANK, NATIONAL ASSOCIATION, and the other Banks
from time to time party thereto.

Ladies and Gentlemen:

Unless otherwise defined herein, capitalized
terms used herein shall have the meanings attributable thereto in the Credit
Agreement.

This Notice of Borrowing is delivered to you pursuant to
Section 2.02 of the Credit Agreement.

The Borrower hereby requests a [Euro-Dollar
Borrowing][Base Rate Borrowing] in the aggregate principal amount of
$__________ to be made on ______________, 20____, and for interest to accrue
thereon at the rate established by the Credit Agreement for [Euro-Dollar
Loans][Base Rate Loans].  [The duration
of the Interest Period with respect thereto shall be [1 month] [2 months] [3
months] [6 months]].

The Borrower has caused this Notice of Borrowing to be executed
and delivered by its duly authorized officer this _________ day of
______________, 20____.

MOHAWK INDUSTRIES, INC.

By:______ ______ 

Title:

60

Exhibit D-2

NOTICE OF CONTINUATION OR CONVERSION

_____________________, 20____

Wachovia Bank, National Association,

as Administrative Agent

301 South College Street

Charlotte, North Carolina 28288

Re:            Credit
Agreement (as amended and modified from time to time, the "Credit             Agreement") dated as of
September 30, 2003 by and among MOHAWK             INDUSTRIES,
INC., SUNTRUST BANK,             WACHOVIA
BANK, NATIONAL             ASSOCIATION,
and the other Banks from             time
to time party thereto.

Gentlemen:

Unless otherwise defined herein, capitalized
terms used herein shall have the             meanings
attributable thereto in the Credit Agreement.

This Notice of Continuation or Conversion is
delivered to you pursuant to Section 2.03 of the Credit Agreement.

With respect to the [Base Rate Loans][Euro-Dollar
Loans] in the aggregate amount of $___________ each of which has an Interest
Period ending on _____________, the Borrower hereby requests that such Loans be
[converted to] [Base Rate Loans][Euro-Dollar Loans] [continued as][Euro-Dollar
Loans] in the aggregate principal amount of $__________ to be made on such
date, and for interest to accrue thereon at the rate established by the Credit
Agreement for [Base Rate Loans] [Euro-Dollar Loans].  [The duration of the Interest Period with respect thereto shall
be [1 month] [2 months] [3 months] [6 months]].

The Borrower has caused this Notice of
Continuation or Conversion to be             executed
and delivered by its duly authorized officer this ______ day of ____________,           20___.

                       
 MOHAWK INDUSTRIES, INC.

                        By:______________________________________

Title:__________________________________

61

Exhibit E

COMPLIANCE CERTIFICATE

Reference is made to the Credit Agreement dated as of
September 30, 2003 (as modified and supplemented and in effect from time to
time, the "Credit Agreement") among Mohawk Industries, Inc., SunTrust
Bank, Wachovia Bank, National Association, and the other Banks from time to
time party thereto.  Capitalized terms
used herein shall have the meanings ascribed thereto in the Credit Agreement.

Pursuant to Section 5.01(c) of the Credit Agreement,
____________, the duly authorized _____________________ of Mohawk Industries,
Inc. hereby certifies, on behalf of the Borrower, to the Banks that the
information contained in the Compliance Check List attached hereto is true,
accurate and complete as of ____________, _____, and that no Defaults or Events
of Default exist.

By:______ ______ 

Title:

62

COMPLIANCE CHECK LIST

(Mohawk Industries, Inc.)

____________

____________, _____

(i)                 
Debt to Capitalization Ratio (Section 5.03)

The Debt to Capitalization Ratio shall be less than 0.60 to 1.0
at the end of each Fiscal Quarter.

(a)              
Consolidated Debt            $_______

(b)              
Consolidated Total Capital            $_______

Actual Ratio of (a) to (b)            ________

Maximum Ratio            <0.60
to 1.0

Applicable Margin           
______

Facility Fee           
______%

(ii)               
Debt to EBITDA Ratio (Section 5.04)

The ratio of the Borrower's (a) Consolidated Debt to (b) the sum
of (i) Consolidated Net Income, (ii) Consolidated Interest Expense, (iii) taxes
on the Borrower's consolidated pre‐tax income, and (iv) Depreciation and
Amortization shall not be greater than 3.5 to 1.0 at the end of each Fiscal
Quarter.  Clause (b) in this Section
5.04 shall be calculated on a trailing 4 quarter basis as at the end of each
such Fiscal Quarter.

(a)              
Consolidated Debt            $_______

(b)              
Consolidated Net Income            $_______

(c)              
Consolidated Interest Expense            $_______

(d)              
Taxes on the Borrower's consolidated pre-tax income            $_______

(e)              
Depreciation            $_______

(f)                
Amortization            $_______

63

(g)              
(The sum of (b) plus (c) plus (d) plus
(e) plus (f ))            $_______

Actual Ratio of (a) to (g)            ________

Maximum Ratio            <3.5
to 1.0

(iii)              
Investments (Section 5.06)

Investments made in Foreign Subsidiaries after the Closing Date            $_______

Limitation - 20% of Consolidated Total Assets            $_______

(iv)             
Negative Pledge (Section 5.08)

Liens permitted under paragraphs (a) through (i)             $_______

Limitation - greater of (x) $90,000,000 or 

(y) 15% of Consolidated Net Worth            $_______

(v)               
Calculations with respect to Asset Securitizations:

Accounts receivable balance reported as of the last day of the
Fiscal Quarter most recently ended in such Fiscal Quarter by the Borrower or a
Subsidiary with respect to an Asset Securitization            $_______

64

Schedule
4.08

Subsidiaries

	
   

  Name of Subsidiary

  	
  Jurisdiction of Formation

  	
  Amount of Investment

  	
  Holders of Equity Interest

  
	
  Mohawk Carpet Corporation

  	
  Delaware

  	

  	
  Borrower

  
	
  World International, Inc.

  	
  Barbados

  	
  $71,744,956

  	
  Mohawk Carpet Corporation

  
	
  Mohawk Servicing, Inc.

  	
  Delaware

  	

  	
  Mohawk Carpet Corporation

  
	
  Mohawk Factoring, Inc.

  	
  Delaware

  	

  	
  Mohawk Carpet Corporation (79.3%)

  World International, Inc. (20.7%)

  
	
  Aladdin Manufacturing
  Corporation

  	
  Delaware

  	

  	
  Mohawk Carpet Corporation

  
	
  Mohawk International FSC,
  Inc.

  	
  Barbados

  	
  $0

  	
  Mohawk Carpet Corporation

  
	
  Horizon Europe, Inc.

  	
  Georgia

  	

  	
  Aladdin Manufacturing Corporation

  
	
  Mohawk Mills, Inc.

  	
  Delaware

  	

  	
  Aladdin Manufacturing Corporation

  
	
  Mohawk Brands, Inc.

  	
  Delaware

  	

  	
  Aladdin Manufacturing Corporation

  
	
  Mohawk Brands USA, Inc.

  	
  Delaware

  	

  	
  Mohawk Carpet Corporation

  
	
  Mohawk Resources, Inc.

  	
  Delaware

  	

  	
  Mohawk Carpet Corporation

  
	
  Mohawk Canada Corporation

  	
  Nova Scotia

  	
  $0

  	
  Mohawk Carpet Corporation

  
	
  Aladdin of Texas Holdings,
  LLC

  	
  Delaware

  	

  	
  Mohawk Mills, Inc.

  
	
  Mohawk Carpet Distribution,
  L.P.

  	
  Delaware

  	

  	
  Mohawk Mills, Inc.
  (99%)

  Aladdin of Texas
  Holdings, LLC (1%)

  
	
  Mohawk Carpet
  Transportation of Georgia, LLC

  	
  Delaware

  	

  	
  Mohawk Carpet Distribution, L.P.

  
	
  Mohawk Holdings, LLC

  	
  Delaware

  	

  	
  Mohawk Carpet Corporation

  
	
  Mohawk Carpet of Texas,
  L.P.

  	
  Delaware

  	

  	
  Mohawk Holdings,
  LLC (99%)

  Mohawk Carpet
  Corporation (1%)

  
	
  Dal-Tile International Inc.

  	
  Delaware

  	

  	
  Borrower

  
	
  Dal-Tile Group Inc.

  	
  Delaware

  	

  	
  Dal-Tile International Inc.

  
	
  Dal-Tile Corporation

  	
  Pennsylvania

  	

  	
  Dal-Tile Group Inc.

  
	
  DTM/CM Holdings Inc.

  	
  Delaware

  	

  	
  Dal-Tile Group Inc.

  
	
  Dal-Tile Canada Inc.

  	
  Ontario, Canada

  	
  $3,138,513

  	
  Dal-Tile Group Inc.

  
	
  Dal-Tile Mexico S.A. de
  C.V.

  	
  Mexico

  	
  $70,472,915

  	
  Dal-Tile Group Inc.
  (99.985%)

  DTM/CM Holdings
  Inc. (0.004%)

  Dal-Tile
  Corporation (0.011%)

  
	
  Tileways, Inc.

  	
  Delaware

  	

  	
  Dal-Tile Corporation

  
	
  Dal-Tile Puerto Rico Inc.

  	
  Puerto Rico

  	

  	
  Dal-Tile Corporation

  
	
  DTG Tile Corp.

  	
  Delaware

  	

  	
  Dal-Tile Corporation

  
	
  DTL Tile Corp.

  	
  Delaware

  	

  	
  Dal-Tile Corporation

  
	
  Dal-Tile I LLC

  	
  Delaware

  	

  	
  Dal-Tile Corporation

  
	
  Dal-Elite L.P.

  	
  Texas

  	

  	
  DTL Tile Corp.
  (99%)

  DTG Tile Corp. (1%)

  
	
  Dal-Italia LLC (80%)

  	
  Delaware

  	

  	
  Dal-Tile I LLC
  (80%)

  EMILAMERICA, Inc.
  (unrelated) (20%)

  

65

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