Item 1.02 Termination of a Material Definitive Agreement.

Effective June 3, 2009, Mohawk Factoring, Inc. ("Factoring"), a subsidiary of Mohawk Industries, Inc., ("Company") terminated the Second Amended and Restated Credit and Security Agreement, dated as of July 28, 2008 (the "Securitization Facility"), by and among Factoring, Mohawk Servicing, Inc., Victory Receivables Corporation, Three Pillars Funding, LLC, SunTrust Bank, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch and SunTrust Robinson Humphrey, Inc., as Administrative Agent. The Securitization Facility allowed Factoring to borrow up to $250.0 million based on available accounts receivable and was originally set to mature on July 27, 2009. No early termination penalties will be incurred as a result of the termination.

Certain of the parties to the Securitization Facility have from time to time provided financing and other services to the Company and its affiliates. Mohawk Servicing, Inc. is an affiliate of Factoring and the Company.

Factoring elected to terminate the Securitization Facility early because it had determined not to renew the Securitization Facility upon its scheduled expiration on July 27, 2009 and did not believe the liquidity provided by the Securitization Facility during the remaining term was necessary.

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