THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into this 20th day of November, 2002, by and between THE DIXIE GROUP, INC., a Corporation having its principal place of business at 185 South Industrial Boulevard, S.W., Calhoun, Georgia 30703-7010 (hereinafter referred to as the "Employer") and DAVID POLLEY, an individual residing at West Brow Road, Lookout Mountain, Tennessee (hereinafter referred to as the "Employee").

W I T N E S S E T H:

WHEREAS, Employer is engaged in the carpet and rug business and is a supplier to higher-end residential and commercial customers serviced by Masland Carpets and Fabrica International, to consumers through major retailers under the Bretlin, Globaltex and Alliance Mills brands and to the factory-built housing and recreational vehicle markets through Carriage Carpets.

WHEREAS, the Employee is experienced in floor covering and carpet sales;

WHEREAS, the Employer desires to employ the Employee and the Employee desires to be employed by the Employer; and

WHEREAS, the Employee and the Employer desire to have their respective employment rights, obligations and duties agreed upon and specified in writing herein.

NOW, THEREFORE, in consideration of the mutual promises, covenants herein contained, and other good and valuable considerations, the receipt, sufficiency and adequacy of which are hereby expressly acknowledged, the parties hereto, intending to be legally bound, do hereby mutually agree as follows:

1. Employment. The Employer hereby employees the Employee and the Employee agrees to be employed in accordance with the terms and conditions set forth herein. The Employee's employment with Employer shall commence on November 20, 2002, and continue thereafter until terminated pursuant to Section 8 hereof.

2. Term. The term of this Agreement shall commence on November 20, 2002, and end on November 19, 2005 (the "Term").

3. Duties and Responsibilities of Employee.