Document:

<PAGE>
                                                                     EXHIBIT 4.5

                             SUPPLEMENTAL INDENTURE

                  This Supplemental Indenture (this "SUPPLEMENTAL INDENTURE"),
dated as of the 31st day of December 2002, among Interface Fabrics Group
Marketing, Inc., a Nevada corporation and Strategic Flooring Services, Inc., a
Georgia corporation (each a "GUARANTEEING SUBSIDIARY"), both of which are
Subsidiaries of Interface, Inc. (or its permitted successor), a Georgia
corporation (the "COMPANY"), the Company, the Guarantors (as defined in the
Indenture referred to herein) and Wachovia Bank, National Association (formerly
known as First Union National Bank), as trustee under the Indenture referred to
below (the "TRUSTEE").

                                  WITNESSETH

                  WHEREAS, the Company and the Guarantors party thereto
heretofore executed and delivered to the Trustee an indenture (the
"INDENTURE"), dated as of January 17, 2002 providing for the issuance of
10.375% Senior Notes due 2010 (the "NOTES");

                  WHEREAS, the Indenture provides that under certain
circumstances a Material U.S. Subsidiary shall, and other Subsidiaries may,
execute and deliver to the Trustee a supplemental indenture pursuant to which
the Guaranteeing Subsidiary shall unconditionally guarantee all of the
Company's Obligations under the Notes and the Indenture on the terms and
conditions set forth herein (the "GUARANTEE"); and

                  WHEREAS, pursuant to Section 9.01 of the Indenture, the
Trustee is authorized to execute and deliver this Supplemental Indenture.

                  NOW THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt of which is hereby
acknowledged, each Guaranteeing Subsidiary and the Trustee mutually covenant
and agree for the equal and ratable benefit of the Holders of the Notes as
follows:

Section 1.        Capitalized Terms.

         Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture.

Section 2.        Agreement to Guarantee.

         Each Guaranteeing Subsidiary signatory hereto hereby agrees as
follows:

                  (a)      Along with all other Guarantors, to jointly and
severally Guarantee to each Holder of a Note authenticated and delivered by the
Trustee and to the Trustee and its successors

<PAGE>
and assigns, irrespective of the validity and enforceability of the Indenture,
the Notes or the obligations of the Company hereunder or thereunder, that:

                           (i)      the principal of, premium, if any, and
                  interest (including any Special Interest), on the Notes will
                  be promptly paid in full when due, whether at maturity, by
                  acceleration, redemption or otherwise, and interest on the
                  overdue principal, premium, if any, of and interest on the
                  Notes, if any, if lawful, and all other obligations of the
                  Company to the Holders or the Trustee hereunder or thereunder
                  will be promptly paid in full or performed, all in accordance
                  with the terms hereof and thereof; and

                           (ii)     in case of any extension of time of payment
                  or renewal of any Notes or any of such other obligations,
                  that same will be promptly paid in full when due or performed
                  in accordance with the terms of the extension or renewal,
                  whether at stated maturity, by acceleration or otherwise.
                  Failing payment when due of any amount so guaranteed or any
                  performance so guaranteed for whatever reason, the Guarantors
                  shall be jointly and severally obligated to pay the same
                  immediately.

                  (b)      The obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes or the
Indenture, the absence of any action to enforce the same, any waiver or consent
by any Holder of the Notes with respect to any provisions hereof or thereof,
the recovery of any judgment against the Company, any action to enforce the
same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor.

                  (c)      The following is hereby waived: diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding
first against the Company, protest, notice and all demands whatsoever.

                  (d)      This Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes and the
Indenture.

                  (e)      If any Holder or the Trustee is required by any
court or otherwise to return to the Company, the Guarantors, or any custodian,
Trustee, liquidator or other similar official acting in relation to either the
Company or the Guarantors, any amount paid by either to the Trustee or such
Holder, this Guarantee, to the extent theretofore discharged, shall be
reinstated in full force and effect.

                  (f)      None of the Guaranteeing Subsidiaries signatory
hereto shall not be entitled to any right of subrogation in relation to the
Holders in respect of any obligations guaranteed hereby until payment in full
of all obligations guaranteed hereby.

                  (g)      As between the Guarantors, including each Guarantor
Subsidiary signatory hereto, on the one hand, and the Holders and the Trustee,
on the other hand, (x) the maturity of

                                       2
<PAGE>
the obligations guaranteed hereby may be accelerated as provided in Article 6
of the Indenture for the purposes of this Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (y) in the event of any declaration of
acceleration of such obligations as provided in Article 6 of the Indenture,
such obligations (whether or not due and payable) shall forthwith become due
and payable by each Guaranteeing Subsidiary for the purpose of this Guarantee.

                  (h)      Each Guaranteeing Subsidiary shall have the right to
seek contribution from any non-paying Guarantor (including any other
Guaranteeing Subsidiary) so long as the exercise of such right does not impair
the rights of the Holders under the Guarantee.

                  (i)      Pursuant to Section 10.02 of the Indenture, after
giving effect to any maximum amount and any other contingent and fixed
liabilities that are relevant under any applicable Bankruptcy or fraudulent
conveyance laws, and after giving effect to any collections from the Company
and any of the other Guarantors, the rights of each Guaranteeing Subsidiary
signatory hereto to receive contribution from or payments made by or on behalf
of any other Guarantor (including any other Guaranteeing Subsidiary) in respect
of the obligations of such other Guarantor under Article 10 of the Indenture
shall result in the obligations of each Guaranteeing Subsidiary under its
Guarantee not constituting a fraudulent transfer or conveyance.

3.       Execution and Delivery.

         Each Guaranteeing Subsidiary agrees that the Guarantees shall remain
in full force and effect notwithstanding any failure to endorse on each Note a
notation of such Guarantee.

4.       Guarantors May Consolidate, Etc. on Certain Terms.

                  (a)      No Guarantor may merge or consolidate with or into
(whether or not such Guarantor is the surviving Person), sell, assign, convey,
transfer, lease or otherwise dispose of all or substantially all of its
properties and assets, as an entirety, to any Person or Persons, other than the
Company or another Guarantor, unless:

                           (i)      immediately after giving effect to that
                  transaction, no Default or Event of Default exists; and

                           (ii)     either:

                                    (A)      the Person acquiring the property
                           in any such sale or disposition or the Person formed
                           by or surviving any such consolidation or merger
                           assumes all the obligations of that Guarantor under
                           this Indenture, its Guarantee and the Registration
                           Rights Agreement pursuant to a supplemental
                           indenture satisfactory to the Trustee, or

                                       3

<PAGE>
                                    (B)      the Guarantor is released pursuant
                           to Section 11.07 and such sale or other disposition
                           complies with Section 4.12 of the Indenture,
                           including the application of the Excess Proceeds
                           therefrom.

                  (b)      In case of any such consolidation, merger, sale or
conveyance and upon the assumption by the successor corporation, by
supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the Guarantee endorsed upon the Notes and the due
and punctual performance of all of the covenants and conditions of this
Indenture to be performed by the Guarantor, such successor corporation shall
succeed to and be substituted for the Guarantor with the same effect as if it
had been named herein as a Guarantor. Such successor corporation thereupon may
cause to be signed any or all of the Guarantees to be endorsed upon all of the
Notes issuable hereunder which theretofore shall not have been signed by the
Company and delivered to the Trustee. All the Guarantees so issued shall in all
respects have the same legal rank and benefit under the Indenture as the
Guarantees theretofore and thereafter issued in accordance with the terms of
this Indenture as though all of such Guarantees had been issued at the date of
the execution hereof.

                  (c)      Except as set forth in Article 4 and Article 5 of
the Indenture, and notwithstanding clauses (a) and (b) above, nothing contained
in this Indenture or in any of the Notes shall prevent any consolidation or
merger of a Guarantor with or into the Company or another Guarantor, or shall
prevent any sale or conveyance of the property of a Guarantor as an entirety or
substantially as an entirety to the Company or another Guarantor.

5.       Release of a Guarantor.

                  (a)      Upon the sale or disposition of all of the Capital
Stock of a Guarantor by the Company or a Subsidiary of the Company, or upon the
consolidation or merger of a Guarantor with or into any Person (in each case,
other than to, with or into, as the case may be, the Company or an Affiliate of
the Company), such Guarantor shall be deemed automatically and unconditionally
released and discharged from all obligations under Article 11 of the Indenture
without any further action required on the part of the Trustee or any Holder;
provided, however, that each such Guarantor is sold or disposed of in a
transaction which does not violate Section 4.12 and Section 11.06 of the
Indenture;

                  (b)      The Trustee shall deliver an appropriate instrument
evidencing the release of a Guarantor upon receipt of a request of the Company
accompanied by an Officers' Certificate certifying as to the compliance with
Section 11.06 of the Indenture. Any Guarantor not so released or the entity
surviving such Guarantor, as applicable, will remain or be liable under its
Guarantee as provided in Article 11 of the Indenture.

                  The Trustee shall execute any documents reasonably requested
by the Company or a Guarantor in order to evidence the release of such
Guarantor from its obligations under its Guarantee endorsed on the Securities
and under Article 11 of the Indenture.

                                       4
<PAGE>
6.       No Recourse Against Others.

         No past, present or future director, officer, employee, incorporator,
stockholder or agent of the Guaranteeing Subsidiary, as such, shall have any
liability for any obligations of the Company or any Guaranteeing Subsidiary
under the Notes, any Guarantees, the Indenture or this Supplemental Indenture
or for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder of the Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. Such waiver may not be effective to
waive liabilities under the federal securities laws and it is the view of the
SEC that such a waiver is against public policy.

7.       Governing Law.

         NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK
SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

8.       Counterparts.

         The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement.

9.       Effect of Headings.

         The Section headings herein are for convenience only and shall not
affect the construction hereof.

10.      The Trustee.

         The Trustee shall not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or for
or in respect of the recitals contained herein, all of which recitals are made
solely by each Guarantor signatory thereto and the Company.

                         [signatures on following page]

                                       5
<PAGE>
                  IN WITNESS WHEREOF, the parties hereto have caused this
Supplemental Indenture to be duly executed, and their respective corporate
seals to be hereunto affixed and attested, all as of the day and year first
above written.

                                    GUARANTEEING SUBSIDIARIES:

                                    Interface Fabrics Group Marketing, Inc., as
                                    a Guarantor

                                    By: /s/ Patrick C. Lynch
                                       ----------------------------------------
                                       Patrick C. Lynch, Vice President

                                    Strategic Flooring Services, Inc., as a
                                    Guarantor

                                    By: /s/ Kevin C. Gallagher
                                       ----------------------------------------
                                       Kevin C. Gallagher, Vice President

                                    TRUSTEE:

                                    Wachovia Bank, National Association

                                    By: /s/ Eric J. Knoll
                                       ----------------------------------------
                                       Name: Eric J. Knoll
                                       Title:  Assistant Vice President

                                       6<PAGE>

                                                                    EXHIBIT 10.7

                       FIRST AMENDMENT TO CREDIT AGREEMENT
                         AND LETTER OF CREDIT AGREEMENT

         THIS FIRST AMENDMENT TO CREDIT AGREEMENT AND LETTER OF CREDIT AGREEMENT
(this "Amendment") is made and entered into as of this 12th day of December,
2002 by and among INTERFACE, INC., a Georgia corporation, INTERFACE EUROPE B.V.,
a "besloten vennootschap met beperkte aansprakelijkheid" (private company with
limited liability) incorporated and existing under the laws of The Netherlands
with its registered seat in Scherpenzeel, Gld., The Netherlands, INTERFACE
EUROPE LTD., a private company limited by shares organized and existing under
the laws of England and Wales (collectively, the "Borrowers"), INTERFACE
FLOORING SYSTEMS, INC., a Georgia corporation, INTERFACE FABRICS GROUP, INC., a
Delaware corporation, INTERFACE ARCHITECTURAL RESOURCES, INC., a Michigan
corporation (collectively, with the Borrowers, the "L/C Account Parties"), the
parties listed on the signature pages hereto as "Guarantors" (the "Guarantors"),
the banks and lending institutions party to the Credit Agreement referred to
below (the "Lenders"), WACHOVIA BANK, NATIONAL ASSOCIATION (formerly known as
First Union National Bank), a national banking association, in its capacity as
letter of credit issuer as provided in the Letter of Credit Agreement referred
to below (the "L/C Issuer"), as domestic agent for the Lenders (the "Domestic
Agent") and as multicurrency agent for the Lenders (the "Multicurrency Agent"
and, together with the Domestic Agent, the "Co-Agents"), SUNTRUST BANK, in its
capacity as existing letter of credit issuer as provided in the Letter of Credit
Agreement referred to below (the "Existing L/C Issuer") and as collateral agent
for the Co-Agents and Lenders (the "Collateral Agent"), and CITICORP NORTH
AMERICA, INC., in its capacity as syndication agent for the Co-Agents and
Lenders (the "Syndication Agent").

                              Statement of Purpose

         The Lenders have extended certain credit facilities to the Borrowers
and the L/C Account Parties pursuant to (i) the Fourth Amended and Restated
Credit Agreement dated as of January 17, 2002, by and among the Borrowers, the
Lenders, the Co-Agents, the Collateral Agent and the Syndication Agent (as
amended, restated, supplemented or otherwise modified from time to time, the
"Credit Agreement") and (ii) the Fourth Amended and Restated Letter of Credit
Agreement dated as of January 17, 2002, by and among the L/C Account Parties,
the Lenders, the L/C Issuer, the Existing L/C Issuer, the Co-Agents and the
Collateral Agent (as amended, restated, supplemented or otherwise modified from
time to time, the "Letter of Credit Agreement").

         The parties now desire to amend certain provisions of the Credit
Agreement and the Letter of Credit Agreement in certain respects subject to the
terms and conditions set forth below.

         NOW THEREFORE, for good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the parties hereto agree as follows:

<PAGE>

         1.       Capitalized Terms. All capitalized undefined terms used in
this Amendment shall have the meanings assigned thereto in the Credit Agreement
or the Letter of Credit Agreement, as applicable.

         2.       Amendments to Credit Agreement.

                  (a)      Amendment to Section 1.01. Section 1.01 of the Credit
Agreement (Definitions) is hereby amended by:

                           (i)      deleting the phrase "Fifteen Million Dollars
($15,000,000)" in the definition of "Domestic L/C Subcommitment" and
substituting in its place the phrase "Twenty Million Dollars ($20,000,000)."

                           (ii)     deleting the grid in the definition of
"Applicable Commitment Fee Rate" and substituting in its place the following:

<TABLE>
<CAPTION>
                                                                                                    Applicable Commitment
  Level                               Funded Debt Coverage Ratio                                          Fee Rate
--------         -----------------------------------------------------------------                  ---------------------
<S>              <C>                                                                                <C>
I                Greater than or equal to 6.00 to 1.00                                                      0.750%
II               Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00                           0.625%
III              Greater than or equal to 4.75 to 1.00 but less than 5.50 to 1.00                           0.500%
IV               Greater than or equal to 4.00 to 1.00 but less than 4.75 to 1.00                           0.500%
V                Greater than or equal to 3.25 to 1.00 but less than 4.00 to 1.00                           0.500%
VI               Greater than or equal to 2.50 to 1.00 but less than 3.25 to 1.00                           0.500%
VII              Less than 2.50 to 1.00                                                                     0.375%
</TABLE>

                           (iii)    deleting the grid in the definition of
"Applicable Margin" and substituting in its place the following:

<TABLE>
<CAPTION>
                                                                                 Applicable Margin for      Applicable Margin for
  Level                          Funded Debt Coverage Ratio                          LIBOR Advances           Base Rate Advances
--------    ----------------------------------------------------------------     ---------------------      ---------------------
<S>         <C>                                                                  <C>                        <C>
I           Greater than or equal to 6.00 to 1.00                                         3.50%                     1.50%
II          Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00              3.00%                     1.25%
III         Greater than or equal to 4.75 to 1.00 but less than 5.50 to 1.00              2.75%                     1.00%
IV          Greater than or equal to 4.00 to 1.00 but less than 4.75 to 1.00              2.50%                     0.75%
V           Greater than or equal to 3.25 to 1.00 but less than 4.00 to 1.00              2.25%                     0.50%
VI          Greater than or equal to 2.50 to 1.00 but less than 3.25 to 1.00              2.00%                     0.25%
VII         Less than 2.50 to 1.00                                                        1.75%                     0.00%
</TABLE>

                                       2
<PAGE>

                           (iv)     adding the following new defined terms in
appropriate alphabetical order:

                  "`Consolidated Cash Interest Expense' shall mean, for any
         fiscal period of Interface, the sum of all payments of Consolidated
         Interest Expense that are paid in cash during such period."

                  `Consolidated Cash Tax Expense' shall mean, for any fiscal
         period of Interface, the sum of all federal, state or local income
         taxes paid in cash by the Consolidated Companies during such period
         (without adjustment for tax refunds received during such period).

                  `Consolidated Restricted Payments' shall mean, for any fiscal
         period of Interface, the sum of (a) all payments (other than regularly
         scheduled payments of principal and interest) made by the Consolidated
         Companies with respect to the Senior Subordinated Notes and Senior
         Notes during such period, plus (b) any purchases of Capital Stock of
         Interface by any Consolidated Company during such period, plus (c)
         dividends made by the Consolidated Companies in respect of the Capital
         Stock of such Consolidated Company during such period (excluding
         dividends made in such Capital Stock and dividends paid to Interface or
         any Subsidiary of Interface).

                  `Fixed Charge Coverage Ratio' shall mean the ratio of
         Consolidated EBITDA to Total Fixed Charges.

                  `Total Fixed Charges' shall mean, for any fiscal period of
         Interface, the sum of (a) Consolidated Cash Interest Expense plus (b)
         Consolidated Cash Tax Expense plus (c) Capital Expenditures plus (d)
         Consolidated Restricted Payments."

                           (v)      amending and restating the defined terms
"Borrowing Base", "Consolidated EBITDA" and "Consolidated Net Income (Loss)" as
follows:

                  "`Borrowing Base' shall mean, as of any date of determination,
         an amount equal to the sum of (a) twenty percent (20%) of the face
         amount of Eligible Domestic Accounts, plus (b) fifty percent (50%) of
         the net book value of Eligible Domestic Inventory, plus (c) fifteen
         percent (15%) of the net book value of Eligible Domestic PP&E, in each
         case as set forth in the most recent Borrowing

                                       3
<PAGE>

         Base Certificate delivered to the Lender in accordance with the terms
         of Section 7.07(d).

                  `Consolidated EBITDA' shall mean, for any fiscal period of
         Interface, an amount equal to (i) the sum for such fiscal period of
         Consolidated Net Income (Loss) plus, to the extent subtracted in
         determining such Consolidated Net Income (Loss) for such period, (A)
         provisions for taxes based on income (or minus tax benefits in respect
         of such taxes as reflected in the financial statements for such fiscal
         period), (B) Consolidated Interest Expense, (C) amortization of
         goodwill and deferred financing costs and (D) depreciation expense in
         conformity with GAAP, minus (ii) any non-recurring gains (or plus any
         non-recurring losses; provided that, for purposes of calculating
         Consolidated EBITDA, cash non-recurring losses shall not exceed
         $10,000,000 in the aggregate during any consecutive four fiscal quarter
         period) for such period and minus (iii) the gain (or plus the loss) for
         such period attributable to the sale of any assets outside the ordinary
         course of business.

                  `Consolidated Net Income (Loss)' shall mean, for any fiscal
         period of Interface, the sum of: (A) net income (or loss) of the
         Consolidated Companies on a consolidated basis for such period (taken
         as a single accounting period) determined in conformity with GAAP, but
         excluding therefrom (to the extent otherwise included therein) (i) any
         gains or losses, together with any related provision for taxes,
         realized upon any sale of assets other than in the ordinary course of
         business, (ii) any income or loss of any Acquired Entity accrued prior
         to the date of the acquisition thereof, and (iii) the income of any
         Consolidated Company to the extent that the declaration or payment of
         dividends or similar distributions by such Consolidated Company of that
         income is not at the time permitted by operation of the terms of its
         charter or any agreement, instrument, judgment, decree, order, statute,
         rule or governmental regulation, plus (B) solely with respect to the
         calculation in Section 8.04(iv) hereof, the effects of goodwill
         adjustments under FASB-142, to the extent deducted in the determination
         of Consolidated Net Income (Loss), in an aggregate amount not to exceed
         $55,380,000."

                  (b)      Amendment to Section 7.07(d). Section 7.07(d) of the
Credit Agreement (Borrowing Base Certificate) is hereby amended by deleting the
words "fiscal quarter" in the second line thereof and replacing such words with
the words "calendar month".

                  (c)      Amendment to Section 7.09(a). Section 7.09 of the
Credit Agreement (Financial Covenants) is hereby amended by:

                           (i)      deleting clause (a) (Interest Coverage) in
its entirety and substituting in its place the following:

                                       4
<PAGE>

                  "(a)     Interest Coverage. Maintain as of the last day of
         each fiscal quarter, calculated with respect to the immediately
         preceding four fiscal quarters, an Interest Coverage Ratio of not less
         than the corresponding ratio set forth below:

<TABLE>
<CAPTION>
                  Period                                                                     Ratio
                  ------                                                                     -----
                  <S>                                                                     <C>
                  October 1, 2002 through
                  March 31, 2003                                                          1.55 to 1.00

                  April 1, 2003 through
                  June 30, 2003                                                           1.60 to 1.00

                  July 1, 2003 through
                  September 30, 2003                                                      1.80 to 1.00

                  Thereafter                                                              2.00 to 1.00"
</TABLE>

                           (ii)     adding a new clause (d) (Fixed Charge
         Coverage Ratio) as follows:

                  "(d)     Fixed Charge Coverage Ratio. Maintain as of the last
         day of each fiscal quarter, beginning with the fiscal quarter ended
         December 29, 2002, calculated with respect to the immediately preceding
         four fiscal quarters, a Fixed Charge Coverage Ratio of not less than
         1.10 to 1.00."

                  (d)      Amendment to Section 8.01(h). Section 8.01 of the
Credit Agreement (Indebtedness) is hereby amended by deleting clause (h) in its
entirety and substituting in its place the following:

                  "(h)     the Intercompany Loans described on Schedule 6.18 and
         any other loans between Consolidated Companies; provided that:

                           (i)      each loan or other extension of credit made
         by Interface or a Guarantor to another Consolidated Company that is not
         a Guarantor hereunder shall be made payable on demand and shall not be
         subordinated to other obligations of such Consolidated Company and all
         such loans and extensions of credit shall not exceed $35,000,000 in the
         aggregate at any one time outstanding (excluding (A) Intercompany Loans
         listed on Schedule 6.18, (B) the Intercompany Loans made pursuant to
         clause (i) of the definition of European Intercompany Loans and
         Investments to the extent that the European Intercompany Loans and
         Investments are made pursuant to the terms of the definition thereof
         and (C) other Intercompany Loans made for the purpose of and used
         reasonably concurrently for acquisitions permitted by Section 8.03)
         unless otherwise agreed in writing by the Required Lenders;

                           (ii)     each loan or other extension of credit made
         to Interface or a Guarantor by another Consolidated Company that is not
         Interface or a Guarantor

                                       5
<PAGE>

         hereunder shall be made on a subordinated basis consistent with the
         subordinated Intercompany Loans in existence on the date of this
         Agreement and no portion of the principal amount thereof shall be
         payable prior to the Maturity Date; and

                           (iii)    no such loans or other extensions of credit
         may be made at any time that a Default or Event of Default has occurred
         and is continuing or would exist as a result of such loan or other
         extension of credit;"

                  (e)      Amendment to Section 8.04. Section 8.04 of the Credit
Agreement (Payments or Refinancings in Respect of Subordinated Debt or Equity
Securities; Dividends and Other Distributions) is hereby amended by:

                           (i)      adding the follow parenthetical after the
         term "Consolidated Net Income of Interface" in clause (iv)(B) thereof:

                  "(provided that, for purposes of this Section 8.04(iv),
Interface shall be permitted to add back to Consolidated Net Income the
approximately $55,380,000 negative adjustment taken by Interface due to the
effects of goodwill adjustments under FASB-142)"

                           (ii)     adding an additional clause (vi) thereto as
         follows:

                  "(vi)    repurchases of the common stock of Interface from its
         employees, in connection with awards, the vesting of awards or the
         exercise of awards under its stock incentive plan(s), in an aggregate
         amount not to exceed $500,000 in any fiscal year (provided, however,
         that if the actual aggregate amount of such repurchases of the common
         stock made during any such fiscal year (the "Repurchase Amount") is
         less than $500,000 (the "Repurchase Limit"), then the applicable limit
         for the immediately succeeding fiscal year shall be increased by an
         amount equal to the difference between the Repurchase Limit and the
         Repurchase Amount)."

                  (f)      Amendment to Section 8.05. Section 8.05 of the Credit
Agreement (Investments, Loans, Etc.) is hereby amended by deleting clauses (a)
and (c) in their entirety and substituting in their place the following:

                  "(a)     Investments (including Investments in the form of
         Intercompany Loans permitted pursuant to Section 8.01(h)) in
         Subsidiaries that are Guarantors under this Agreement and Investments
         by Interface in Interface SPC in the form of the Receivables
         Subordinated Notes;

                                      * * *

                  (c)      (i)      Investments (including Investments in the
         form of Intercompany Loans permitted pursuant to Section 8.01(h)) in
         Subsidiaries that are not Guarantors hereunder which exist as of the
         Closing Date; and

                                       6
<PAGE>

                           (ii)     Investments (including Investments in the
         form of Intercompany Loans permitted pursuant to Section 8.01(h)) in
         Subsidiaries that are not Guarantors hereunder which are made after the
         Closing Date; provided that

                                    (A)      (1) all such Investments (including
                  Investments in the form of Intercompany Loans permitted
                  pursuant to Section 8.01(h)) made pursuant to this subsection
                  (c)(ii) shall not exceed $35,000,000 in the aggregate at any
                  one time outstanding (excluding (I) Investments in the form of
                  Intercompany Loans listed on Schedule 6.18, (II) Investments
                  in the form of Intercompany Loans made pursuant to clause (i)
                  of the definition of European Intercompany Loans and
                  Investments to the extent that the European Intercompany Loans
                  and Investments are made pursuant to the terms of the
                  definition thereof, (III) Investments in the form of
                  Intercompany Loans made for the purpose of and used reasonably
                  concurrently for acquisitions permitted by Section 8.03 and
                  (IV) Investments in Subsidiaries made pursuant to clauses (ii)
                  and (iii) of the definition of European Intercompany Loans and
                  Investments to the extent that the European Intercompany Loans
                  and Investments are made pursuant to the terms of the
                  definition thereof) unless otherwise consented to in writing
                  by the Required Lenders; and

                                             (2)      all such Investments
                  (other than Investments in the form of Intercompany Loans)
                  made pursuant to this subsection (c)(ii) shall not exceed
                  $25,000,000 in the aggregate at any one time outstanding
                  (excluding Investments in Subsidiaries made pursuant to
                  clauses (ii) and (iii) of the definition of European
                  Intercompany Loans and Investments to the extent that the
                  European Intercompany Loans and Investments are made pursuant
                  to the terms of the definition thereof) unless otherwise
                  consented to in writing by the Required Lenders;

                                    (B)      no Investment made pursuant to this
                  subsection (c)(ii) may be made at any time that a Default or
                  Event of Default has occurred and is continuing or would exist
                  as a result of such Investment; and

                                    (C)      all such Investments made pursuant
                  to this subsection (c)(ii) (other than (1) Investments in the
                  form of Intercompany Loans permitted pursuant to Section
                  8.01(h)), (2) the European Intercompany Loans and Investments
                  and (3) Investments made for the purpose of and used
                  reasonably concurrently for acquisitions permitted by Section
                  8.03) shall be made solely to achieve greater tax efficiencies
                  of the Consolidated Companies;"

                                       7
<PAGE>

                  (g)      Amendment to Exhibit I. Exhibit I to the Credit
Agreement (Borrowing Base Certificate) is hereby amended by deleting such
exhibit in its entirety and substituting in its place Exhibit I hereto.

         3.       Amendments to Letter of Credit Agreement.

                  (a)      Amendment to Statement of Purpose. Paragraph B of the
Statement of Purpose of the Letter of Credit Agreement is hereby amended by
deleting the amount "$15,000,000" and substituting in its place the amount
"$20,000,000."

                  (b)      Amendment to Section 1.1. Section 1.1 of the Letter
of Credit Agreement (Certain Definitions) is hereby amended by deleting the
phrase "Fifteen Million Dollars ($15,000,000)" in the definition of "Domestic
L/C Subcommitment" and substituting in its place the phrase "Twenty Million
Dollars ($20,000,000)."

         4.       Effectiveness. This Amendment shall become effective on the
date that each of the following conditions has been satisfied:

                  (a)      Amendment Documents. The Co-Agents shall have
received this Amendment executed by each of the Co-Agents, each of the Lenders,
the L/C Issuer, the Existing L/C Issuer and the Borrowers.

                  (b)      Fee Letter. The Co-Agents shall have received an
executed copy of the Fee Letter between the Co-Agents and the Borrowers and all
fees under the Fee Letter shall have been paid.

                  (c)      Other Fees and Expenses. The Co-Agents shall have
been reimbursed for all fees and out of pocket charges and other expenses
incurred in connection with this Amendment (including, without limitation, the
costs and expenses referred to in Section 8 hereof, the Credit Agreement and the
Letter of Credit Agreement) and the transactions contemplated thereby.

                  (d)      Field Exam. The Domestic Agent shall have received
the results of a field exam conducted by Interface (at its sole expense) on the
Eligible Domestic Accounts and Eligible Domestic Inventory of the Borrowers, in
form and substance satisfactory to the Domestic Agent in its sole discretion.

                  (e)      Other Documents. The Co-Agents shall have received
any other documents, certificates or instruments reasonably requested thereby in
connection with the execution of this Amendment.

         5.       Effect of the Amendment. Except as expressly modified hereby,
the Credit Agreement, the Letter of Credit Agreement and the other Credit
Documents shall be and remain in full force and effect. This Amendment shall not
be deemed (a) to be a waiver of, or consent to, a modification or amendment of,
any other term or condition of the Credit Agreement, the Letter of Credit
Agreement or any other Credit Document or (b) to prejudice any other right or
rights which

                                       8
<PAGE>

the Domestic Agent, the Multicurrency Agent, the Collateral Agent, the
Syndication Agent, the L/C Issuer, the Existing L/C Issuer or the Lenders may
now have or may have in the future under or in connection with the Credit
Agreement, the Letter of Credit Agreement or the other Credit Documents or any
of the instruments or agreements referred to therein, as the same may be amended
or modified from time to time.

         6.       Representations and Warranties/No Default.

                  (a)      By their execution hereof, the Borrowers hereby
certify that each of the representations and warranties set forth in the Credit
Agreement, the Letter of Credit Agreement and the other Credit Documents is true
and correct as of the date hereof as if fully set forth herein (except to the
extent that such representations and warranties relate to a specific date, in
which case such representations and warranties shall be true and correct as of
such specific date) and no Default or Event of Default has occurred and is
continuing as of the date hereof.

                  (b)      By their execution hereof, the Borrowers represent
and warrant that as of the date hereof there are no claims or offsets against or
defenses or counterclaims to any of the obligations of any Borrower or any
Guarantor under the Credit Agreement, the Letter of Credit Agreement or any
other Credit Document.

                  (c)      By their execution hereof, the Borrowers hereby
represent and warrant that each Borrower and each Guarantor has the right, power
and authority and has taken all necessary corporate and other action to
authorize the execution, delivery and performance of this Amendment and each
other document executed in connection herewith to which it is a party in
accordance with their respective terms. This Amendment and each other document
executed in connection herewith has been duly executed and delivered by the duly
authorized officers of each Borrower and each Guarantor, and each such document
constitutes the legal, valid and binding obligation of each Borrower and each
Guarantor, enforceable in accordance with its terms.

         7.       Acknowledgement by Guarantors. By their execution hereof, each
of the Guarantors hereby expressly (a) consents to the modifications and
amendments set forth in this Amendment, (b) reaffirms all of its respective
covenants, representations, warranties and other obligations set forth in the
Guaranty Agreements and the other Credit Documents to which it is a party and
(c) acknowledges, represents and agrees that its respective covenants,
representations, warranties and other obligations set forth in the Guaranty
Agreements and the other Credit Documents to which it is a party remain in full
force and effect.

         8.       Costs and Expenses. The Borrowers shall pay all reasonable
out-of-pocket costs and expenses of the Co-Agents in connection with the
preparation, execution and delivery of this Amendment, including, without
limitation, the reasonable fees and disbursements of counsel for the Co-Agents.

         9.       Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED
BY THE LAW (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF) OF
THE STATE OF GEORGIA.

                                       9
<PAGE>

         10.      Counterparts. This Amendment may be executed in separate
counterparts, each of which when executed and delivered is an original but all
of which taken together constitute one and the same instrument.

         11.      Fax Transmission. A facsimile, telecopy or other reproduction
of this Amendment may be executed by one or more parties hereto, and an executed
copy of this Amendment may be delivered by one or more parties hereto by
facsimile or similar instantaneous electronic transmission device pursuant to
which the signature of or on behalf of such party can be seen, and such
execution and delivery shall be considered valid, binding and effective for all
purposes. At the request of any party hereto, all parties hereto agree to
execute an original of this Amendment as well as any facsimile, telecopy or
other reproduction hereof.

                            [Signatures Pages Follow]

                                       10
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the date and year first above written.

                               BORROWERS AND L/C ACCOUNT PARTIES:

                               INTERFACE, INC., as Borrower and L/C Account
                               Party

                               By: /s/ Patrick C. Lynch
                                  ---------------------------------------------
                               Name:  Patrick C. Lynch
                               Title: Vice President

                               INTERFACE EUROPE B.V.
                               INTERFACE EUROPE LTD.

                               each as Borrower and L/C Account Party

                               By: /s/ Daniel T. Hendrix
                                  ---------------------------------------------
                               Name:  Daniel T. Hendrix
                               Title: Director

                               Interface Flooring Systems, Inc.
                               Interface Fabrics Group, Inc.
                               Interface Architectural Resources, Inc.

                               each as L/C Account Parties

                               By: /s/ Patrick C. Lynch
                                  ---------------------------------------------
                               Name:  Patrick C. Lynch
                               Title: Vice President

                           [Signature Pages Continue]

<PAGE>

                               GUARANTORS:

                               INTERFACE, INC.
                               BENTLEY PRINCE STREET, INC.
                               BENTLEY MILLS, INC.
                               CHATHAM, INC.
                               CHATHAM MARKETING CO.
                               COMMERCIAL FLOORING SYSTEMS, INC.
                               FLOORING CONSULTANTS, INC.
                               GUILFORD OF MAINE, INC.
                               GUILFORD OF MAINE FINISHING SERVICES, INC.
                               GUILFORD OF MAINE MARKETING CO.
                               INTEK, INC.
                               INTEK MARKETING CO.
                               INTERFACE AMERICAS, INC.
                               INTERFACE AMERICAS HOLDINGS, INC.
                               INTERFACE AMERICAS RE:SOURCE TECHNOLOGIES, INC.
                               INTERFACE ARCHITECTURAL RESOURCES, INC.
                               INTERFACE FABRICS GROUP, INC.
                               INTERFACE FLOORING SYSTEMS, INC.
                               INTERFACE LICENSING COMPANY
                               INTERFACE OVERSEAS HOLDINGS, INC.
                               INTERFACE ROYALTY COMPANY
                               PANDEL, INC.
                               PRINCE STREET ROYALTY COMPANY
                               QUAKER CITY INTERNATIONAL, INC.
                               RE:SOURCE AMERICAS ENTERPRISES, INC.
                               RE:SOURCE MASSACHUSETTS FLOOR COVERING, INC.
                               RE:SOURCE NEW JERSEY, INC.
                               RE:SOURCE NEW YORK, INC.
                               RE:SOURCE WASHINGTON, D.C., INC.
                               SUPERIOR/REISER FLOORING RESOURCES, INC.
                               TOLTEC FABRICS, INC.

                               each as Guarantors

                               By: /s/ Patrick C. Lynch
                                  ---------------------------------------------
                               Name:  Patrick C. Lynch
                               Title: Vice President

<PAGE>

                               GUARANTORS (CONT.):

                               Interface Real Estate Holdings, LLC, as Guarantor

                               By: BENTLEY PRINCE STREET, INC., its sole member

                                   By: /s/ Patrick C. Lynch
                                      -----------------------------------------
                                   Name:  Patrick C. Lynch
                                   Title: Vice President

                           [Signature Pages Continue]

<PAGE>

                               AGENTS AND LENDERS:

                               WACHOVIA BANK, NATIONAL ASSOCIATION,
                               as Domestic Agent, Multicurrency Agent, L/C
                               Issuer and Lender

                               By: /s/ George M. Scott
                                  ----------------------------------------
                               Name: George M. Scott
                               Title: Vice President

                               SUNTRUST BANK, as Collateral Agent, Existing L/C
                               Issuer and Lender

                               By: /s/ Ken Bauchle
                                  ---------------------------------------------
                               Name: Ken Bauchle
                               Title: Vice President

                               CITICORP NORTH AMERICA, INC., as Syndication
                               Agent and Lender

                               By: /s/ Mark Floyd
                                  ---------------------------------------------
                               Name: Mark Floyd
                               Title: Vice President

                               FLEET NATIONAL BANK, as Lender

                               By: /s/ Susan A. Robinson
                                  ---------------------------------------------
                               Name: Susan A. Robinson
                               Title: Vice President

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