Document:

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                                                                     EXHIBIT 4.6

                         REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made and
entered into as of the 17th day of January, 2002, by and among Interface, Inc.,
a Georgia corporation (the "Company"), Bentley Mills, Inc., a Delaware
corporation, Bentley Royalty Company, a Nevada corporation, Chatham, Inc., a
North Carolina corporation, Chatham Marketing Co., a North Carolina
corporation, Commercial Flooring Systems, Inc., a Pennsylvania corporation,
Flooring Consultants, Inc., an Arizona corporation, Guilford of Maine, Inc., a
Nevada corporation, Guilford of Maine Finishing Services, Inc., a Nevada
corporation, Guilford of Maine Marketing Co., a Nevada corporation, Intek,
Inc., a Georgia corporation, Intek Marketing Co., a Nevada corporation,
Interface Americas, Inc., a Georgia corporation, Interface Americas Holdings,
Inc., a Georgia corporation, Interface Americas Re:Source Technologies, Inc., a
Georgia corporation, Interface Architectural Resources, Inc., a Michigan
corporation, Interface Fabrics Group, Inc., a Delaware corporation, Interface
Flooring Systems, Inc., a Georgia corporation, Interface Licensing Company, a
Nevada corporation, Interface Overseas Holdings, Inc., a Georgia corporation,
Interface Real Estate Holdings, LLC, a Georgia limited liability company,
Interface Royalty Company, a Nevada corporation, Pandel, Inc., a Georgia
corporation, Prince Street Royalty Company, a Nevada corporation, Quaker City
International, Inc., a Pennsylvania corporation, Re:Source Americas
Enterprises, Inc., a Georgia corporation, Re:Source Massachusetts Floor
Covering, Inc., a Massachusetts corporation, Re:Source New Jersey, Inc., a New
Jersey corporation, Re:Source New York, Inc., a New York corporation, Re:Source
Washington, D.C., Inc., a Virginia corporation, Superior/Reiser Flooring
Resources, Inc., a Texas corporation, Toltec Fabrics, Inc., a Georgia
corporation (collectively, the "Guarantors") and Salomon Smith Barney, Inc. and
First Union Securities, Inc. (collectively, the "Purchasers").

         This Agreement is made pursuant to the Purchase Agreement dated
January 11, 2002, among the Company, the Guarantors, and the Purchasers (the
"Purchase Agreement"), which provides for the sale by the Company to the
Purchasers of 10.375% Senior Notes due 2010 (the "Senior Notes"). The Senior
Notes are to be issued by the Company pursuant to the provisions of an
Indenture dated as of January 17, 2002 (as amended, supplemented or otherwise
modified from time to time, the "Indenture") between the Company, certain
subsidiaries of the Company as guarantors and First Union National Bank, as
trustee (the "Trustee").

         In order to induce the Purchasers to enter into the Purchase
Agreement, the Company has agreed to provide to the Purchasers and their direct
and indirect transferees the registration rights with respect to the Senior
Notes set forth in this Agreement. The execution of this Agreement is a
condition to the closing under the Purchase Agreement.

         In consideration of the foregoing, the parties hereto agree as
follows:

         1.       Definitions.

         As used in this Agreement, the following capitalized defined terms
shall have the following meanings:

                  "1933 Act" shall mean the Securities Act of 1933, as amended
         from time to time.

                  "1934 Act" shall mean the Securities Exchange Act of 1934, as
         amended from time to time.

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                  "Closing Date" shall mean the Closing Date as defined in the
         Purchase Agreement.

                  "Company" shall have the meaning set forth in the preamble
         and shall also include the Company's successors.

                  "Exchange Date" shall have the meaning set forth in Section
         2(a)(ii).

                  "Exchange Notes" shall mean securities issued by the Company
         under the Indenture containing terms identical to the Senior Notes
         (except that (i) interest thereon shall accrue from the last date on
         which interest was paid on the Senior Notes or, if no such interest
         has been paid, from January 17, 2002 and (ii) the Exchange Notes will
         not provide for an increase in the rate of interest and will not
         contain terms with respect to transfer restrictions) and to be offered
         to Holders of Senior Notes in exchange for Senior Notes pursuant to
         the Exchange Offer.

                  "Exchange Offer" shall mean the exchange offer by the Company
         of Exchange Notes for Registrable Notes pursuant to Section 2(a)
         hereof.

                  "Exchange Offer Registration" shall mean a registration under
         the 1933 Act effected pursuant to Section 2(a) hereof.

                  "Exchange Offer Registration Statement" shall mean an
         exchange offer registration statement on Form S-4 (or, if applicable,
         on another appropriate form) and all amendments and supplements to
         such registration statement, in each case including the Prospectus
         contained therein, all exhibits thereto and all material incorporated
         by reference therein.

                  "Guarantees" shall mean the guarantee of the Senior Notes by
         each Guarantor.

                  "Holder" shall mean the Purchasers, for so long as they own
         any Registrable Notes, and each of their successors, assigns and
         direct and indirect transferees who become registered owners of
         Registrable Notes under the Indenture; provided that for purposes of
         Sections 4 and 5 of this Agreement, the term "Holder" shall include
         Participating Broker-Dealers (as defined in Section 4(a)).

                  "Holder Shelf Registration Notice" shall mean written notice
         from a Holder to the Company that such Holder (x) is prohibited by
         applicable law or SEC policy from participating in the Exchange Offer,
         (y) may not resell Exchange Notes acquired by it in the Exchange Offer
         to the public without delivering a prospectus and that the prospectus
         contained in the Exchange Offer Registration Statement is not
         appropriate or available for such resales by such Holder or (z) is a
         broker-dealer and holds Registrable Notes acquired directly from the
         Company or an "affiliate" of the Company.

                  "Indenture" shall have the meaning set forth in the preamble.

                  "Majority Holders" shall mean the Holders of a majority of
         the aggregate principal amount of outstanding Registrable Notes;
         provided that, for purposes of Section 6(b), whenever the consent or
         approval of Holders of a specified percentage of Registrable Notes is
         required hereunder, Registrable Notes held by the Company or any of
         its affiliates (as such term is defined in Rule 405 under the 1933
         Act) (other than the Purchasers or subsequent holders of Registrable
         Notes if such subsequent holders are deemed to be such affiliates
         solely by reason of their

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         holding of such Registrable Notes) shall not be counted in determining
         whether such consent or approval was given by the Holders of such
         required percentage or amount.

                  "Offer Termination Date" shall have the meaning set forth in
         Section 2(a)(iv).

                  "Participating Broker-Dealer" shall have the meaning set
         forth in Section 4(a) hereof.

                  "Person" shall mean an individual, partnership, corporation,
         trust or unincorporated organization, or a government or agency or
         political subdivision thereof.

                  "Prospectus" shall mean the prospectus included in a
         Registration Statement, including any preliminary prospectus or
         offering memorandum, and any such prospectus as amended or
         supplemented by any prospectus supplement, including a prospectus
         supplement with respect to the terms of the offering of any portion of
         the Registrable Notes covered by a Shelf Registration Statement, and
         by all other amendments and supplements to such prospectus, and in
         each case including all material incorporated by reference therein.

                  "Purchase Agreement" shall have the meaning set forth in the
         preamble.

                  "Purchasers" shall have the meaning set forth in the
         preamble.

                  "Registrable Notes" shall mean the Senior Notes; provided,
         however, that the Senior Notes shall cease to be Registrable Notes (i)
         when a Registration Statement with respect to such Senior Notes shall
         have been declared effective under the 1933 Act and such Senior Notes
         shall have been disposed of or exchanged pursuant to such Registration
         Statement, (ii) upon the expiration of the Exchange Offer period with
         respect to any Exchange Offer Registration Statement if all
         Registrable Notes validly tendered in connection with such Exchange
         Offer shall have been exchanged for Exchange Notes, (iii) when such
         Senior Notes have been sold or are eligible for sale to the public
         pursuant to Rule 144(k) (or any similar provision then in force, but
         not Rule 144A) under the 1933 Act or (iv) when such Senior Notes shall
         have ceased to be outstanding; provided, however, that if an opinion
         of counsel is delivered to the Company as provided in clause (iii) of
         Section 2(b), then Senior Notes held by the Purchasers shall not cease
         to be Registrable Notes solely by reason of clause (ii) above.

                  "Registration Expenses" shall mean any and all expenses
         incident to performance of or compliance by the Company with this
         Agreement, including without limitation: (i) all SEC, stock exchange
         or National Association of Securities Dealers, Inc. registration and
         filing fees, (ii) all fees and expenses incurred in connection with
         compliance with state securities or blue sky laws, (iii) all expenses
         of any Person in preparing or assisting in preparing, word processing,
         printing and distributing, at the request of the Company, any
         Registration Statement, any Prospectus, any amendments or supplements
         thereto, any underwriting agreements, securities sales agreements and
         other documents relating to the performance of and compliance with
         this Agreement, (iv) all fees and disbursements relating to the
         qualification of the Indenture under applicable securities laws, (v)
         the fees and disbursements of the Trustee and its counsel, (vi) the
         fees and disbursements of counsel for the Company and, in the case of
         a Shelf Registration Statement, the fees and disbursements of one
         counsel for the Holders incurred on or before the initial
         effectiveness of the Shelf Registration Statement, which counsel shall
         be counsel for the Purchasers or other counsel selected by the Company
         and not objected to by the Majority Holders ("counsel for the
         Holders") and (vii) the fees and disbursements of the independent
         public

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         accountants of the Company, including the expenses of any special
         audits or "cold comfort" letters required by or incident to such
         performance and compliance, but excluding underwriting discounts, if
         any, and commissions and transfer taxes, if any, relating to the sale
         or disposition of Registrable Notes by a Holder.

                  "Registration Statement" shall mean any registration
         statement of the Company that covers any of the Exchange Notes,
         Registrable Notes or Guarantees pursuant to the provisions of this
         Agreement and all amendments and supplements to any such Registration
         Statement, including post-effective amendments, in each case including
         the Prospectus contained therein, all exhibits thereto and all
         material incorporated by reference therein.

                  "SEC" shall mean the Securities and Exchange Commission.

                  "Shelf Registration" shall mean a registration effected
         pursuant to Section 2(b) hereof.

                  "Shelf Registration Statement" shall mean a "shelf"
         registration statement of the Company pursuant to the provisions of
         Section 2(b) of this Agreement which covers all of the Registrable
         Notes and Guarantees on an appropriate form under Rule 415 under the
         1933 Act, or any similar rule that may be adopted by the SEC, and all
         amendments and supplements to such registration statement, including
         post-effective amendments, in each case including the Prospectus
         contained therein, all exhibits thereto and all material incorporated
         by reference therein.

                  "Special Interest" shall mean the additional interest payable
         under the Registrable Notes upon the occurrence of certain conditions
         specified in Section 2(d) below.

                  "TIA" shall have the meaning set forth in Section 3(l)
         hereof.

                  "Trustee" shall have the meaning set forth in the preamble.

         2.       Registration under the 1933 Act.

                  (a)      To the extent not prohibited by any applicable law
or applicable interpretation of the Staff of the SEC, the Company and the
Guarantors shall use their best efforts to cause to be filed an Exchange Offer
Registration Statement covering the offer by the Company to the Holders to
exchange all of the Registrable Notes for Exchange Notes, to have such
Registration Statement remain effective until the closing of the Exchange Offer
and to consummate the Exchange Offer on or prior to the date that is 180 days
after the Closing Date. The Company and the Guarantors shall commence the
Exchange Offer promptly after the Exchange Offer Registration Statement has
been declared effective by the SEC and use their best efforts to have the
Exchange Offer consummated not later than 30 days after such effective date.
For purposes hereof, "consummate" shall mean that the Exchange Offer
Registration Statement shall have been declared effective, subject to Section
2(b), the period of the Exchange Offer provided in accordance with clause (ii)
below shall have expired and all Registrable Notes validly tendered in
connection with such Exchange Offer shall have been exchanged for Exchange
Notes. The Company and the Guarantors shall commence the Exchange Offer by
mailing the related exchange offer Prospectus and accompanying documents to
each Holder stating, in addition to such other disclosures as are required by
applicable law:

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                  (i)      that the Exchange Offer is being made pursuant to
         this Registration Rights Agreement and that all Registrable Notes
         validly tendered will be accepted for exchange;

                  (ii)     the dates of acceptance for exchange (which shall be
         a period of at least 25 days from the date such notice is mailed)
         (each such date being an "Exchange Date");

                  (iii)    that any Registrable Note not tendered will remain
         outstanding and continue to accrue interest, but will not retain any
         rights under this Agreement;

                  (iv)     that Holders electing to have a Registrable Note
         exchanged pursuant to the Exchange Offer will be required to surrender
         such Registrable Note, together with the enclosed letters of
         transmittal, to the institution and at the address specified in the
         notice prior to the close of business on the last Exchange Date (the
         "Offer Termination Date"); and

                  (v)      that Holders will be entitled to withdraw their
         election, not later than the close of business on the Offer
         Termination Date, by sending to the institution and at the address
         specified in the notice a telegram, telex, facsimile transmission or
         letter setting forth the name of such Holder, the principal amount of
         Registrable Notes delivered for exchange and a statement that such
         Holder is withdrawing his election to have such Registrable Notes
         exchanged.

                  As soon as practicable after the Offer Termination Date, the
         Company shall:

                  (A)      accept for exchange Registrable Notes or portions
         thereof tendered and not validly withdrawn pursuant to the Exchange
         Offer; and

                  (B)      deliver, or cause to be delivered, to the Trustee
         for cancellation all Registrable Notes or portions thereof so accepted
         for exchange by the Company and issue, and cause the Trustee to
         promptly authenticate and mail to each Holder, an Exchange Note equal
         in aggregate principal amount to the aggregate principal amount of the
         Registrable Notes surrendered by such Holder.

The Company and the Guarantors shall use their best efforts to complete the
Exchange Offer as provided above and shall comply with the applicable
requirements of the 1933 Act, the 1934 Act and other applicable laws and
regulations in connection with the Exchange Offer. The Exchange Offer shall not
be subject to any conditions, other than that the Exchange Offer does not
violate applicable law or any applicable interpretation of the Staff of the
SEC. The Company shall inform the Purchasers of the names and addresses of the
Holders to whom the Exchange Offer is made, and the Purchasers shall have the
right, subject to applicable law, to contact such Holders and otherwise
facilitate the tender of Registrable Notes in the Exchange Offer.

                  (b)      In the event that (i) the Company determines that
the Exchange Offer Registration provided for in Section 2(a) above is not
available or may not be consummated as soon as practicable after the Offer
Termination Date because it would violate applicable law or the applicable
interpretations of the Staff of the SEC, (ii) the Exchange Offer is not for any
other reason consummated within 180 days after the Closing Date or (iii) in the
event that at any time prior to the 20-day anniversary of the consummation of
the Exchange Offer, any holder of Registrable Notes shall provide a Holder
Shelf Registration Notice to the Company, the Company and the Guarantors shall
use their best efforts to cause to be filed as soon as practicable after such
determination, or date or notice, as the case may be, a Shelf Registration
Statement providing for the sale by the Holders of all of the Registrable Notes
and to have

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such Shelf Registration Statement declared effective by the SEC. In the event
the Company and the Guarantors are required to file a Shelf Registration
Statement solely as a result of the matters referred to in clause (iii) of the
preceding sentence, the Company and the Guarantors shall file and have declared
effective by the SEC both an Exchange Offer Registration Statement pursuant to
Section 2(a) with respect to all Registrable Notes and a Shelf Registration
Statement (which may be a combined Registration Statement with the Exchange
Offer Registration Statement) with respect to offers and sales of Registrable
Notes held by the Purchasers after completion of the Exchange Offer. The
Company and the Guarantors agree to use their best efforts to keep the Shelf
Registration Statement continuously effective until the third anniversary of
the Closing Date or such shorter period that will terminate when all of the
Registrable Notes covered by the Shelf Registration Statement have been sold
pursuant to the Shelf Registration Statement. The Company and the Guarantors
further agree to supplement or amend the Shelf Registration Statement if
required by the rules, regulations or instructions applicable to the
registration form used by the Company and the Guarantors for such Shelf
Registration Statement or by the 1933 Act or by any other rules and regulations
thereunder for shelf registration or if reasonably requested by a Holder with
respect to information relating to such Holder, and to use their best efforts
to cause any such amendment to become effective and such Shelf Registration
Statement to become usable as soon as thereafter practicable. The Company
agrees to furnish to the Holders of Registrable Notes copies of any such
supplement or amendment promptly after its being used or filed with the SEC.

                  (c)      The Company and the Guarantors shall pay all
Registration Expenses in connection with the registration pursuant to Section
2(a) or Section 2(b). Each Holder shall pay all underwriting discounts, if any,
and commissions and transfer taxes, if any, relating to the sale or disposition
of such Holder's Registrable Notes pursuant to the Shelf Registration
Statement.

                  (d)      An Exchange Offer Registration Statement pursuant to
Section 2(a) hereof or a Shelf Registration Statement pursuant to Section 2(b)
hereof will not be deemed to have become effective unless it has been declared
effective by the SEC; provided, however, that, if, after it has been declared
effective, the offering of Registrable Notes pursuant to a Shelf Registration
Statement is interfered with by any stop order, injunction or other order or
requirement of the SEC or any other governmental agency or court, such
Registration Statement will be deemed not to have become effective during the
period of such interference until the offering of Registrable Notes pursuant to
such Registration Statement may legally resume. As provided for in the
Indenture, liquidated damages in the form of Special Interest (in addition to
the interest otherwise due on the Notes after such date) shall be accrued on
the Registrable Notes as follows:

                  (i)      (A) if an Exchange Offer Registration Statement or,
         in the event that due to current interpretations by the SEC the
         Company is not permitted to effect the Exchange Offer, a Shelf
         Registration Statement is not filed within 120 days following the
         Closing Date or (B) in the event that at any time prior to the 20-day
         anniversary of the consummation of the Exchange Offer, any holder of
         Registrable Notes shall provide a Holder Shelf Registration Notice to
         the Company, and a Shelf Registration Statement is not filed within
         120 days thereafter, then commencing on the 121st day after the
         Closing Date or the receipt of such notice, as the case may be,
         Special Interest shall be accrued on the Notes over and above the
         accrued interest at a rate of .50% per annum for the first 90 days
         immediately following the 121st day after the Closing Date or the
         receipt of such notice, as the case may be, such Special Interest rate
         increasing by an additional .25% per annum at the beginning of each
         subsequent 90-day period;

                  (ii)     if an Exchange Offer Registration Statement or a
         Shelf Registration Statement is filed pursuant to Section 2(d)(i)
         hereof and is not declared effective within 150 days following

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         the Closing Date or the receipt of the Holder Shelf Registration
         Notice, as the case may be, then commencing on the 151st day after the
         Closing Date or the receipt of such notice, as the case may be,
         Special Interest shall be accrued on the Registrable Notes over and
         above the accrued interest at a rate of .50% per annum for the first
         90 days immediately following the 151st day after the Closing Date or
         the receipt of such notice, as the case may be, such Special Interest
         rate increased by an additional .25% per annum at the beginning of
         each subsequent 90-day period; and

                  (iii)    if either (A) the Company has not exchanged Exchange
         Notes for all Registrable Notes validly tendered in accordance with
         the terms of the Exchange Offer on or prior to 180 days after the date
         on which the Exchange Offer Registration Statement was declared
         effective, or (B) if applicable, a Shelf Registration Statement has
         been declared effective and such Shelf Registration Statement ceases
         to be effective prior to two years from its original effective date,
         then, subject to certain exceptions, Special Interest shall be accrued
         on the Registrable Notes over and above the accrued interest at a rate
         of .50% per annum for the first 90 days immediately following the (x)
         181st day after such effective date, in the case of (A) above, or (y)
         the day such Shelf Registration Statement ceases to be effective in
         the case of (B) above, such Special Interest rate increasing by an
         additional .25% per annum at the beginning of each subsequent 90-day
         period;

provided, however, that the Special Interest rate on the Registrable Notes may
not exceed 1.5% per annum; and provided further that (1) upon the filing of the
Exchange Offer Registration Statement or a Shelf Registration Statement (in the
case of (d)(i) above), (2) upon the effectiveness of the Exchange Offer
Registration Statement or a Shelf Registration Statement (in the case of
(d)(ii) above), or (3) upon the exchange of Exchange Notes for all Registrable
Notes tendered in the Exchange Offer or upon the effectiveness of the Shelf
Registration Statement which had ceased to remain effective prior to two years
from its original effective date (in the case of (d)(iii) above), Special
Interest on the Registrable Notes as a result of such clause (i), (ii) or (iii)
shall cease to accrue.

         Any amounts of Special Interest due pursuant to clause (i), (ii) or
(iii) above will be payable in cash on the interest payment dates of the
Registrable Notes. The amount of Special Interest will be determined by
multiplying the applicable Special Interest rate by the principal amount of the
Registrable Notes, multiplied by a fraction, the numerator of which is the
number of days such Special Interest rate was applicable during such period
(determined on the basis of a 360-day year composed of twelve 30-day months),
and the denominator of which is 360. If the Company effects the Exchange Offer,
the Company will be entitled to close the Exchange Offer provided that it has
accepted all Registrable Notes theretofore validly tendered in accordance with
the terms of the Exchange Offer. Registrable Notes not tendered in the Exchange
Offer shall bear interest at the same rate as in effect at the time of issuance
of the Registrable Notes.

                  (e)      Without limiting the remedies available to the
Purchasers and the Holders, the Company and the Guarantors acknowledge that any
failure by the Company and the Guarantors to comply with their obligations
under Section 2(a) and Section 2(b) hereof may result in material irreparable
injury to the Purchasers or the Holders for which there is no adequate remedy
at law, that it will not be possible to measure damages for such injuries
precisely and that, in the event of any such failure, the Purchasers or any
Holder may obtain such relief as may be required to specifically enforce the
Company's and the Guarantors' obligations under Section 2(a) and Section 2(b)
hereof.

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         3.       Registration Procedures.

         In connection with the obligations of the Company and the Guarantors
with respect to the Registration Statements pursuant to Section 2(a) and
Section 2(b) hereof, the Company and the Guarantors shall reasonably promptly:

                  (a)      prepare and file with the SEC a Registration
Statement on the appropriate form under the 1933 Act, which form shall (x) be
selected by the Company, (y) in the case of a Shelf Registration, be available
for the sale of the Registrable Notes by the selling Holders thereof and (z)
comply as to form in all material respects with the requirements of the
applicable form and include all financial statements required by the SEC to be
filed therewith, and use their best efforts to cause such Registration
Statement to become effective and remain effective in accordance with Section 2
hereof;

                  (b)      prepare and file with the SEC such amendments and
post-effective amendments to each Registration Statement as may be necessary to
keep such Registration Statement effective for the applicable period and cause
each Prospectus to be supplemented by any required prospectus supplement and,
as so supplemented, to be filed pursuant to Rule 424 under the 1933 Act; and
keep each Prospectus current during the period described under Section 4(3) and
Rule 174 under the 1933 Act that is applicable to transactions by brokers or
dealers with respect to the Registrable Notes or Exchange Notes;

                  (c)      in the case of a Shelf Registration, furnish to each
Holder of Registrable Notes, to counsel for the Purchasers and to counsel for
the Holders, without charge, as many copies of each Prospectus, including each
preliminary Prospectus and any amendment or supplement thereto and such other
documents as such Holder may reasonably request, in order to facilitate the
public sale or other disposition of the Registrable Notes; and the Company and
the Guarantors consent to the use of such Prospectus and any amendment or
supplement thereto in accordance with applicable law by each of the selling
Holders of Registrable Notes in connection with the offering and sale of the
Registrable Notes covered by and in the manner described in such Prospectus or
any amendment or supplement thereto in accordance with applicable law;

                  (d)      use their best efforts (i) to register or qualify
the Registrable Notes and the Guarantees under all applicable state securities
or blue sky laws of such jurisdictions as any Holder of Registrable Notes
covered by a Registration Statement shall reasonably request in writing by the
time the applicable Registration Statement is declared effective by the SEC and
(ii) to cooperate with such Holders in connection with any filings required to
be made with the National Association of Securities Dealers, Inc. and do any
and all other acts and things which may be reasonably necessary or advisable to
enable such Holder to consummate the disposition in each such jurisdiction of
such Registrable Notes owned by such Holder; provided, however, that the
Company and the Guarantors shall not be required to (A) qualify as a foreign
corporation or as a dealer in securities in any jurisdiction where they would
not otherwise be required to qualify but for this Section 3(d), (B) file any
general consent to service of process or (C) subject themselves to taxation in
any such jurisdiction if they are not so subject;

                  (e)      in the case of a Shelf Registration, notify each
Holder of Registrable Notes, counsel for the Holders and counsel for the
Purchasers promptly and, if requested by any such Holder, counsel for the
Holders or counsel for the Purchasers, confirm such advice in writing (i) when
a Registration Statement has become effective and when any post-effective
amendment thereto has been filed and becomes effective, (ii) of any request by
the SEC or any state securities authority for amendments and supplements to a
Registration Statement and Prospectus or for additional information after the
Registration Statement has become effective, (iii) of the issuance by the SEC
or any state securities authority of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings
for that purpose, (iv) if, between the effective date of a Registration

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Statement and the closing of any sale of Registrable Notes covered thereby, the
representations and warranties of the Company contained in any securities sales
agreement or other similar agreement, if any, relating to the offering cease to
be true and correct in all material respects or if the Company receives any
notification with respect to the suspension of the qualification of the
Registrable Notes for sale in any jurisdiction or the initiation of any
proceeding for such purpose, (v) of the happening of any event during the
period a Shelf Registration Statement is effective which makes any statement
made in such Registration Statement or the related Prospectus untrue in any
material respect or which requires the making of any changes in such
Registration Statement or Prospectus in order to make the statements therein
not misleading and (vi) of any determination by the Company that a
post-effective amendment to a Registration Statement would be appropriate;

                  (f)      make every reasonable effort to obtain the
withdrawal of any order suspending the effectiveness of a Registration
Statement at the earliest possible moment and provide immediate notice to each
Holder of the withdrawal of any such order;

                  (g)      in the case of a Shelf Registration, furnish to each
Holder of Registrable Notes, without charge, at least one conformed copy of
each Registration Statement and any post-effective amendment thereto (without
documents incorporated therein by reference or exhibits thereto, unless
requested);

                  (h)      in the case of a Shelf Registration, cooperate with
the selling Holders of Registrable Notes to facilitate the timely preparation
and delivery of certificates representing Registrable Notes to be sold and not
bearing any restrictive legends and enable such Registrable Notes to be in such
denominations (consistent with the provisions of the Indenture) and registered
in such names as the selling Holders may reasonably request at least two
business days prior to the closing of any sale of Registrable Notes;

                  (i)      in the case of a Shelf Registration, upon the
occurrence of any event contemplated by Section 3(e)(v) hereof, use their best
efforts promptly to prepare a supplement or post-effective amendment to a
Registration Statement or the related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Notes, such Prospectus will not
contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading. The Company agrees to notify the
Holders to suspend use of the Prospectus as promptly as practicable after the
occurrence of such an event, and the Holders hereby agree to suspend use of the
Prospectus until the Company has amended or supplemented the Prospectus to
correct such misstatement or omission;

                  (j)      a reasonable time prior to the filing of any
Registration Statement, any Prospectus, any amendment to a Registration
Statement or amendment or supplement to a Prospectus, provide copies of such
document to the Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, counsel for the Holders) and make such of the
representatives of the Company as shall be reasonably requested by the
Purchasers or its counsel (and, in the case of a Shelf Registration Statement,
counsel for the Holders), available for discussion of such document, and shall
not at any time file or make any amendment to the Registration Statement, any
Prospectus or any amendment of or supplement to a Registration Statement or a
Prospectus, of which the Purchasers and their counsel (and, in the case of a
Shelf Registration Statement, counsel for the Holders) shall not have
previously been advised and furnished a copy or to which the Purchasers or
their counsel (and, in the case of a Shelf

                                       9
<PAGE>

Registration Statement, counsel for the Holders) shall object reasonably
promptly in light of the circumstances;

                  (k)      obtain a CUSIP number for all Exchange Notes or
Registrable Notes (if applicable), as the case may be, not later than the
effective date of a Registration Statement;

                  (l)      cause the Indenture to be qualified under the Trust
Indenture Act of 1939, as amended (the "TIA"), in connection with the
registration of the Exchange Notes or Registrable Notes, as the case may be,
cooperate with the Trustee and the Holders to effect such changes to the
Indenture as may be required for the Indenture to be so qualified in accordance
with the terms of the TIA and execute, and use their best efforts to cause the
Trustee to execute, all documents as may be required to effect such changes and
all other forms and documents required to be filed with the SEC to enable the
Indenture to be so qualified in a timely manner;

                  (m)      in the case of a Shelf Registration, make available
for inspection by a representative of the Holders of the Registrable Notes, and
attorneys and accountants designated by the Holders and reasonably acceptable
to the Company, at reasonable times and in a reasonable manner and subject to
the execution of appropriate confidentiality agreements, all financial and
other records, pertinent documents and properties of the Company and the
Guarantors, and cause the respective officers, directors and employees of the
Company and the Guarantors to supply all information reasonably requested by
any such representative, attorney or accountant in connection with a Shelf
Registration Statement;

                  (n)      if reasonably requested by any Holder of Registrable
Notes covered by a Registration Statement, (i) promptly incorporate in a
Prospectus supplement or post-effective amendment such information as such
Holder reasonably requests to be included therein and (ii) make all required
filings of such Prospectus supplement or such post-effective amendment as soon
as the Company has received notification of the matters to be incorporated in
such filing; and

                  (o)      In the case of any Shelf Registration Statement, the
Company shall (i) make reasonably available for inspection by the Holders of
securities to be registered thereunder, any underwriter participating in any
disposition pursuant to such Registration Statement, and any attorney,
accountant or other agent retained by the Holders or any such underwriter all
relevant financial and other records, pertinent corporate documents and
properties of the Company and its subsidiaries; (ii) cause the Company's
officers, directors and employees to supply all relevant information reasonably
requested by the Holders or any such underwriter, attorney, accountant or agent
in connection with any such Registration Statement as is customary for similar
due diligence examinations; provided, however, that any information that is
designated in writing by the Company, in good faith, as confidential at the
time of delivery of such information shall be kept confidential by the Holders
or any such underwriter, attorney, accountant or agent, unless such disclosure
is made in connection with a court proceeding or required by law, or such
information becomes available to the public generally or through a third party
without an accompanying obligation of confidentiality; (iii) make such
representations and warranties to the Holders of securities registered
thereunder and the underwriters, if any, in form, substance and scope as are
customarily made by issuers to underwriters in primary underwritten offerings
and covering matters including, but not limited to, those set forth in the
Purchase Agreement; (iv) obtain opinions of counsel to the Company and updates
thereof (which counsel and opinions (in form, scope and substance) shall be
reasonably satisfactory to the Purchasers, if any) addressed to each selling
Holder and the underwriters, if any, covering such matters as are customarily
covered in opinions requested in primary underwritten offerings and such other
matters as may be reasonably requested by such Holders and underwriters; (v)

                                      10
<PAGE>

obtain "cold comfort" letters and updates thereof from the independent
certified public accountants of the Company (and, if necessary, any other
independent certified public accountants of any subsidiary of the Company or of
any business acquired by the Company for which financial statements and
financial data are, or are required to be, included in the Registration
Statement), addressed to each selling Holder of securities registered
thereunder and the underwriters, if any, in customary form and covering matters
of the type customarily covered in "cold comfort" letters in connection with
primary underwritten offerings; and (vi) deliver such documents and
certificates as may be reasonably requested by the Majority Holders and the
Purchasers, if any, including those to evidence compliance with any customary
conditions contained in the underwriting agreement or other agreement entered
into by the Company. The foregoing actions set forth in clauses (iii), (iv),
(v) and (vi) of this Section 3(o) shall be performed at (A) the effectiveness
of such Registration Statement and each post-effective amendment thereto and
(B) each closing under any underwriting or similar agreement as and to the
extent required thereunder.

         In the case of a Shelf Registration Statement, the Company may require
each Holder of Registrable Notes to promptly furnish to the Company such
information regarding the Holder and the proposed distribution by such Holder
of such Registrable Notes as the Company may from time to time reasonably
request in writing. Any Holder of Registrable Notes who fails to provide such
information reasonably requested by the Company shall not be entitled to
receive any Special Interest that the Company otherwise becomes obligated to
pay as a result of such failure.

         In the case of a Shelf Registration Statement, each Holder agrees
that, upon receipt of any notice from the Company of the happening of any event
of the kind described in Section 3(e)(v) hereof, such Holder will forthwith
discontinue disposition of Registrable Notes pursuant to a Registration
Statement until such Holder's receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 3(i) hereof, and, if so directed by
the Company, such Holder will deliver to the Company (at its expense) all
copies in its possession, other than permanent file copies then in such
Holder's possession, of the Prospectus covering such Registrable Notes current
at the time of receipt of such notice. Each Holder agrees to indemnify the
Company, the Guarantors, the Purchasers and the other selling Holders and each
of their respective officers and directors who sign the Registration Statement
and each person, if any, who controls any such person for any losses, claims,
damages and liabilities caused by the failure of such Holder to discontinue
disposition of Registrable Notes after receipt of the notice referred to in the
preceding sentence or the failure of such Holder to comply with applicable
prospectus delivery requirements with respect to any Prospectus (including, but
not limited to, any amended or supplemented Prospectus) provided by the Company
for such use.

         4.       Participation of Broker-Dealers in Exchange Offer.

                  (a)      The Company understands that the Staff of the SEC
has taken the position that any broker-dealer that receives Exchange Notes for
its own account in the Exchange Offer in exchange for Senior Notes that were
acquired by such broker-dealer as a result of market-making or other trading
activities (a "Participating Broker-Dealer"), may be deemed to be an
"underwriter" within the meaning of the 1933 Act and must deliver a prospectus
meeting the requirements of the 1933 Act in connection with any resale of such
Exchange Notes.

         The Company understands that it is the Staff's position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a
plan of distribution containing a statement to the above effect and the means
by which Participating Broker-Dealers may resell the Exchange Notes, without
naming the Participating Broker-Dealers or specifying the amount of Exchange
Notes owned by them, such Prospectus may be delivered by Participating
Broker-Dealers to satisfy their prospectus delivery

                                      11
<PAGE>

obligation under the 1933 Act in connection with resales of Exchange Notes for
their own accounts, so long as the Prospectus otherwise meets the requirements
of the 1933 Act.

                  (b)      In light of the above, notwithstanding the other
provisions of this Agreement, the Company agrees that the provisions of this
Agreement as they relate to a Shelf Registration shall also apply to an
Exchange Offer Registration to the extent, and with such reasonable
modifications thereto as may be, reasonably requested by the Purchasers or by
one or more Participating Broker-Dealers, in each case as provided in clause
(ii) below, in order to expedite or facilitate the disposition of any Exchange
Notes by Participating Broker-Dealers consistent with the positions of the
Staff recited in Section 4(a) above; provided that:

                  (i)      the Company shall not be required to amend or
         supplement the Prospectus contained in the Exchange Offer Registration
         Statement, as would otherwise be contemplated by Section 3(i), for a
         period exceeding one year after the Offer Termination Date and
         Participating Broker-Dealers shall not be authorized by the Company to
         deliver and shall not deliver such Prospectus after such period in
         connection with the resales contemplated by this Section 4; and

                  (ii)     the application of the Shelf Registration procedures
         set forth in Section 3 of this Agreement to an Exchange Offer
         Registration, to the extent not required by the positions of the Staff
         of the SEC or the 1933 Act and the rules and regulations thereunder,
         will be in conformity with the reasonable request to the Company by
         the Purchasers or with the reasonable request in writing to the
         Company by one or more broker-dealers who certify to the Purchasers
         and the Company in writing that they anticipate that they will be
         Participating Broker-Dealers; and provided further that, in connection
         with such application of the Shelf Registration procedures set forth
         in Section 3 to an Exchange Offer Registration, the Company shall be
         obligated (x) to deal only with one entity representing the
         Participating Broker-Dealers, which shall be Salomon Smith Barney,
         Inc. unless it elects not to act as such representative, (y) to pay
         the fees and expenses of only one counsel representing the
         Participating Broker-Dealers, which shall be counsel to the Purchasers
         unless such counsel elects not to so act and (z) to cause to be
         delivered only one, if any, "cold comfort" letter with respect to the
         Prospectus in the form existing on the Offer Termination Date and with
         respect to each subsequent amendment or supplement, if any, effected
         during the period specified in clause (i) above.

                  (iii)    The Purchasers shall have no liability to the
         Company or any Holder for costs and expenses of the Exchange Offer
         Registration with respect to any request that they may make pursuant
         to Section 4(b) above.

         5.       Indemnification and Contribution.

                  (a)      The Company and the Guarantors agree to indemnify
and hold harmless the Purchasers, each Holder and each person, if any, who
controls the Purchasers or any Holder within the meaning of either Section 15
of the 1933 Act or Section 20 of the 1934 Act, or is under common control with,
or is controlled by, the Purchasers or any Holder, from and against all losses,
claims, damages and liabilities (including, without limitation, any legal or
other expenses reasonably incurred by the Purchasers, any Holder or any such
controlling or affiliated person in connection with defending or investigating
any such action or claim) caused by any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement (or any
amendment thereto) pursuant to which Exchange Notes or Registrable Notes were
registered under the 1933 Act, including all documents incorporated therein by
reference, or caused by any omission or alleged omission to state therein a

                                      12
<PAGE>

material fact required to be stated therein or necessary to make the statements
therein not misleading, or caused by any untrue statement or alleged untrue
statement of a material fact contained in any Prospectus (as amended or
supplemented if the Company shall have furnished any amendments or supplements
thereto), or caused by any omission or alleged omission to state therein a
material fact necessary to make the statements therein in light of the
circumstances under which they were made not misleading, except insofar as such
losses, claims, damages or liabilities are caused by any such untrue statement
or omission or alleged untrue statement or omission based upon information
relating to the Purchasers or any Holder furnished to the Company in writing by
the Purchasers or any selling Holder expressly for use therein and, in the case
of a Shelf Registration including a plan of distribution section, such plan of
distribution section; provided, however, that the indemnification contained in
this paragraph (a) with respect to such Registration Statement or Prospectus
shall not inure to the benefit of any Purchaser, any Holder or any such
controlling or affiliated person on account of any such loss, claim, damages or
liabilities caused by the failure of such person to discontinue disposition of
Registrable Notes after receipt of the notice referred to in the final
paragraph of Section 3 hereof.

                  (b)      Each Holder agrees, severally and not jointly, to
indemnify and hold harmless the Company, the Guarantors, the Purchasers and the
other selling Holders, and each of their respective directors and officers who
sign the Registration Statement and each Person, if any, who controls the
Company, the Guarantors, the Purchasers and any other selling Holder within the
meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act to
the same extent as the foregoing indemnity from the Company and the Guarantor
to the Purchasers and the Holders, but only with reference to information
relating to such Holder furnished to the Company in writing by such Holder
expressly for use in any Registration Statement (or any amendment thereto) or
any Prospectus (or any amendment or supplement thereto).

                  (c)      In case any proceeding (including any governmental
investigation) shall be instituted involving any person in respect of which
indemnity may be sought pursuant to either paragraph (a) or paragraph (b)
above, such person (the "indemnified party") shall promptly notify the person
against whom such indemnity may be sought (the "indemnifying party") in writing
and the indemnifying party, upon request of the indemnified party, shall retain
counsel reasonably satisfactory to the indemnified party to represent the
indemnified party and any others the indemnifying party may designate in such
proceeding and shall pay the fees and disbursements of such counsel related to
such proceeding. In any such proceeding, any indemnified party shall have the
right to retain its own counsel, but the fees and expenses of such counsel
shall be at the expense of such indemnified party unless (i) the indemnifying
party and the indemnified party shall have mutually agreed to the retention of
such counsel or (ii) the named parties to any such proceeding (including any
impleaded parties) include both the indemnifying party and the indemnified
party and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. It
is understood that the indemnifying party shall not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for (a)
the fees and expenses of more than one separate firm (in addition to any local
counsel) for the Purchasers and all persons, if any, who control the Purchasers
within the meaning of either Section 15 of the 1933 Act or Section 20 of the
1934 Act, (b) the fees and expenses of more than one separate firm (in addition
to any local counsel) for the Company and the Guarantors, their directors,
their officers who sign the Registration Statement and each person, if any, who
controls the Company and the Guarantors within the meaning of either such
Section and (c) the fees and expenses of more than one separate firm (in
addition to any local counsel) for all Holders and all persons, if any, who
control any Holders within the meaning of either such Section, and that all
such fees and expenses shall be reimbursed as they are incurred. In such case
involving the Purchasers and persons who control the Purchasers, such firm
shall be designated in writing by the Purchasers. In such case involving the

                                      13
<PAGE>

Holders and such persons who control Holders, such firm shall be designated in
writing by the Majority Holders. In all other cases, such firm shall be
designated by the Company. The indemnifying party shall not be liable for any
settlement of any proceeding effected without its written consent but, if
settled with such consent or if there be a final judgment for the plaintiff,
the indemnifying party agrees to indemnify the indemnified party from and
against any loss or liability by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an indemnified party
shall have properly requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel as contemplated by the
second and third sentences of this paragraph, the indemnifying party agrees
that it shall be liable for any good faith settlement of any proceeding
effected without its written consent if (i) such settlement is entered into
more than 30 days after receipt by such indemnifying party of the aforesaid
request and (ii) such indemnifying party shall not have reimbursed the
indemnified party for such fees and expenses of counsel in accordance with such
request prior to the date of such settlement. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened proceeding in respect of which such
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.

                  (d)      If the indemnification provided for in paragraph (a)
or paragraph (b) of this Section 4 is unavailable to an indemnified party or
insufficient in respect of any losses, claims, damages or liabilities, then
each indemnifying party under such paragraph, in lieu of indemnifying such
indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities in such proportion as is appropriate to reflect the relative fault
of the indemnifying party or parties on the one hand and of the indemnified
party or parties on the other hand in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities, as well
as any other relevant equitable considerations. The relative fault of the
Company, the Guarantors and the Holders shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company and the Guarantors or by the
Holders and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Holders'
respective obligations to contribute pursuant to this Section 5(d) are several
in proportion to the respective principal amount of Registrable Notes of such
Holder that were registered pursuant to a Registration Statement.

                  (e)      The Company, the Guarantors and each Holder agree
that it would not be just or equitable if contribution pursuant to this Section
5 were determined by pro rata allocation or by any other method of allocation
that does not take account of the equitable considerations referred to in
paragraph (d) above. The amount paid or payable by an indemnified party as a
result of the losses, claims, damages and liabilities referred to in paragraph
(d) above shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 5, no Holder shall be required
to indemnify or contribute any amount in excess of the amount by which the
total price at which Registrable Notes were sold by such Holder exceeds the
amount of any damages that such Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the 1933 Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. The remedies
provided for in this Section 5 are not exclusive and shall not limit any rights
or remedies which may otherwise be available to any indemnified party at law or
in equity.

                                      14
<PAGE>

         The indemnity and contribution provisions contained in this Section 5
shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of
the Purchasers, any Holder or any person controlling the Purchasers or any
Holder, or by or on behalf of the Company and the Guarantors, their officers or
directors or any person controlling the Company and the Guarantors, (iii)
acceptance of any of the Exchange Notes and (iv) any sale of Registrable Notes
pursuant to a Shelf Registration Statement.

         6.       Miscellaneous.

                  (a)      No Inconsistent Agreements. The Company and the
Guarantors have not entered into, and on or after the date of this Agreement
will not enter into, any agreement which is inconsistent with the rights
granted to the Holders of Registrable Notes in this Agreement or otherwise
conflicts with the provisions hereof. The rights granted to the Holders
hereunder do not in any way conflict with and are not inconsistent with the
rights granted to the holders of the Company's or the Guarantors' other issued
and outstanding securities under any such agreements.

                  (b)      Amendments and Waivers. The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given unless the Company has obtained the written
consent of Holders of at least a majority in aggregate principal amount of the
outstanding Registrable Notes affected by such amendment, modification,
supplement, waiver or consent; provided, however, that no amendment,
modification, supplement, waiver or consents to any departure from the
provisions of Section 5 hereof shall be effective as against any Holder of
Registrable Notes unless consented to in writing by such Holder.

                  (c)      Notices. All notices and other communications
provided for or permitted hereunder shall be made in writing by hand-delivery,
registered first-class mail, telex, telecopier, or any courier guaranteeing
overnight delivery (i) if to a Holder, at the most current address given by
such Holder to the Company by means of a notice given in accordance with the
provisions of this Section 6(c), which address initially is, with respect to
the Purchasers, the address set forth in the Purchase Agreement; and (ii) if to
the Company and the Guarantors, initially at the Company's address set forth in
the Purchase Agreement and thereafter at such other address, notice of which is
given in accordance with the provisions of this Section 6(c).

         All such notices and communications shall be deemed to have been duly
given at the time delivered by hand, if personally delivered; five business
days after being deposited in the mail, postage prepaid, if mailed; when
answered back, if telexed; when receipt is acknowledged, if telecopied; and on
the next business day if timely delivered to an air courier guaranteeing
overnight delivery.

         Copies of all such notices, demands, or other communications shall be
concurrently delivered by the person giving the same to the Trustee, at the
address specified in the Indenture.

                  (d)      Successors and Assigns. This Agreement shall inure
to the benefit of and be binding upon the successors, assigns and transferees
of each of the parties, including, without limitation and without the need for
an express assignment or assumption, subsequent Holders; provided that nothing
herein shall be deemed to permit any assignment, transfer or other disposition
of Registrable Notes in violation of the terms of the Purchase Agreement. If
any transferee of any Holder shall acquire Registrable Notes, in any manner,
whether by operation of law or otherwise, such Registrable Notes shall be held
subject to all of the terms of this Agreement, and by taking and holding such
Registrable Notes

                                      15
<PAGE>

such person shall be conclusively deemed to have agreed to be bound by and to
perform all of the terms and provisions of this Agreement and such person shall
be entitled to receive the benefits hereof. The Purchasers shall have no
liability or obligation to the Company with respect to any failure by a Holder
to comply with, or any breach by any Holder of, any of the obligations of such
Holder under this Agreement.

                  (e)      Purchases and Sales of Notes. The Company shall not,
and shall use best efforts to cause its affiliates (as defined in Rule 405
under the 1933 Act) not to, purchase and then resell or otherwise transfer any
Senior Notes.

                  (f)      Third Party Beneficiary. The Holders shall be third
party beneficiaries to the agreements made hereunder between the Company and
the Guarantors, on the one hand, and the Purchasers, on the other hand, and
shall have the right to enforce such agreements directly to the extent it deems
such enforcement necessary or advisable to protect its rights or the rights of
Holders hereunder.

                  (g)      Counterparts. This Agreement may be executed in any
number of counterparts and by the parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement.

                  (h)      Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                  (i)      Governing Law. This Agreement shall be governed by
laws of the State of New York.

                  (j)      Severability. In the event that any one or more of
the provisions contained herein, or the application thereof in any
circumstance, is held invalid, illegal or unenforceable the validity, legality
and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired
thereby.

                                      16
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

                                    INTERFACE, INC.

                                    By:  /s/ Patrick C. Lynch
                                       ----------------------------------------
                                       Patrick C. Lynch
                                       Vice President and Chief Financial
                                       Officer

                                    Bentley Mills, Inc.
                                    Bentley Royalty Company
                                    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 Real Estate Holdings, LLC
                                    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.

                                    By:  /s/ Patrick C. Lynch
                                       ----------------------------------------
                                       Patrick C. Lynch
                                       Vice President
                                       (As to Interface Real Estate
                                       Holdings, LLC, on behalf of Bentley
                                       Mills, Inc., its sole member)

Confirmed and accepted as
of the date first
above written:

                                    SALOMON SMITH BARNEY, INC.
                                    FIRST UNION SECURITIES, INC.

                                    By  SALOMON SMITH BARNEY, INC.

                                    By  /s/ Gregory Y. Pearlman
                                      -----------------------------------------
                                    Name:   Gregory Y. Pearlman
                                         --------------------------------------
                                    Title:  Managing Director
                                          -------------------------------------<PAGE>

<PAGE>
                                                                    EXHIBIT 10.4

                                INTERFACE, INC.

                           NONQUALIFIED SAVINGS PLAN

         Effective as of the 1st day of January, 2002, Interface, Inc. (the
"Controlling Company") hereby amends and restates the Interface, Inc.
Nonqualified Savings Plan (the "Plan").

                             BACKGROUND AND PURPOSE

         A.       BACKGROUND. The Plan was initially adopted effective January
1, 1997. The Plan, as set forth in this plan document, is an amendment and
restatement and continuation of the Plan as previously set forth. This
restatement generally is effective as of January 1, 2002.

         B.       GOAL. The Controlling Company desires to provide its
designated key management and highly compensated employees (and those of its
affiliated companies that participate in the Plan) with an opportunity (i) to
defer the receipt and income taxation of a portion of such employees' annual
compensation, and (ii) to receive, on a deferred basis, matching contributions
made with respect to at least a portion of such employees' own deferrals.

         C.       COORDINATION WITH 401(K) PLAN. The Plan is intended to allow
eligible employees to maximize the retirement benefits they otherwise would be
able to attain under the Controlling Company's 401(k) plan (or the 401(k) plan
of a participating affiliate company), but for the limits on contributions and
benefits applicable to such plan under the Internal Revenue Code of 1986, as
amended (the "Code"); including, without limitation, the maximum limits on
compensation, employee deferrals and allocations (under Code Sections
401(a)(17), 402(g) and 415, respectively); and the discrimination testing
limits (under Code Sections 401(k) and 401(m)).

         D.       PURPOSE OF THIS RESTATEMENT. The purpose of this amendment
and restatement of the Plan document is to incorporate amendments made to the
Plan since its adoption, and to provide employees with the ability to select
deemed investments for the investment of their deferred amounts.

         E.       TYPE OF PLAN. The Plan constitutes an unfunded, nonqualified
deferred compensation plan that benefits certain designated employees who are
within a select group of key management or highly compensated employees.

                             STATEMENT OF AGREEMENT

         To amend and restate the Plan with the purposes and goals as
hereinabove described, the Controlling Company hereby sets forth the terms and
provisions as follows:

<PAGE>

                                INTERFACE, INC.
                           NONQUALIFIED SAVINGS PLAN

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                PAGE
<S>                                                                                                             <C>
ARTICLE I DEFINITIONS.............................................................................................1

   1.1      ACCOUNT...............................................................................................1
   1.2      ADMINISTRATIVE COMMITTEE..............................................................................1
   1.3      BENEFICIARY...........................................................................................1
   1.4      BOARD.................................................................................................1
   1.5      CAUSE.................................................................................................1
   1.6      CHANGE IN CONTROL.....................................................................................1
   1.7      CODE..................................................................................................2
   1.8      COMPENSATION..........................................................................................2
   1.9      CONTROLLED GROUP......................................................................................2
   1.10     CONTROLLING COMPANY...................................................................................2
   1.11     DEFERRAL CONTRIBUTIONS................................................................................2
   1.12     DEFERRAL ELECTION.....................................................................................2
   1.13     DISABILITY OR DISABLED................................................................................3
   1.14     DISCRETIONARY CONTRIBUTIONS...........................................................................3
   1.15     EFFECTIVE DATE........................................................................................3
   1.16     ELIGIBLE EMPLOYEE.....................................................................................3
   1.17     ERISA.................................................................................................3
   1.18     FINANCIAL HARDSHIP....................................................................................3
   1.19     INVESTMENT ELECTION...................................................................................4
   1.20     INVESTMENT FUNDS......................................................................................4
   1.21     INVOLUNTARY TERMINATION...............................................................................4
   1.22     MATCHING CONTRIBUTIONS................................................................................4
   1.23     PARTICIPANT...........................................................................................4
   1.24     PARTICIPATING COMPANY.................................................................................4
   1.25     PERMITTED HOLDERS.....................................................................................4
   1.26     PLAN..................................................................................................4
   1.27     PLAN YEAR.............................................................................................4
   1.28     SAVINGS AND INVESTMENT PLAN...........................................................................4
   1.29     SURVIVING SPOUSE......................................................................................4
   1.30     TRUST OR TRUST AGREEMENT..............................................................................5
   1.31     TRUSTEE...............................................................................................5
   1.32     TRUST FUND............................................................................................5
   1.33     VALUATION DATE........................................................................................5
   1.34     VOLUNTARY TERMINATION.................................................................................5
   1.35     VOTING STOCK..........................................................................................5
   1.36     YEAR OF SERVICE.......................................................................................5
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                              <C>
ARTICLE II ELIGIBILITY AND PARTICIPATION..........................................................................6

   2.1      ELIGIBILITY...........................................................................................6
      (a)      Annual Participation...............................................................................6
      (b)      Interim Plan Year Participation....................................................................6
   2.2      PROCEDURE FOR ADMISSION...............................................................................6
   2.3      CESSATION OF ELIGIBILITY..............................................................................7
      (a)      Decrease in 401(k) Plan Contributions..............................................................7
      (b)      Cessation of Eligible Status.......................................................................7
      (c)      Inactive Participant Status........................................................................7

ARTICLE III PARTICIPANTS' ACCOUNTS; DEFERRALS AND CREDITING.......................................................8

   3.1      PARTICIPANTS' ACCOUNTS................................................................................8
      (a)      Establishment of Accounts..........................................................................8
      (b)      Nature of Contributions and Accounts...............................................................8
      (c)      Several Liabilities................................................................................8
      (d)      General Creditors..................................................................................8
   3.2      DEFERRAL CONTRIBUTIONS................................................................................8
      (a)      Effective Date.....................................................................................9
         (i)   Initial Deferral Election..........................................................................9
         (ii)     Subsequent Deferral Election....................................................................9
      (b)      Term...............................................................................................9
      (c)      Amount.............................................................................................9
      (d)      Revocation.........................................................................................9
      (e)      Crediting of Deferred Compensation................................................................10
   3.3      MATCHING CONTRIBUTIONS...............................................................................10
      (a)      Amount............................................................................................10
      (b)      Time of Crediting.................................................................................10
   3.4      DISCRETIONARY CONTRIBUTIONS..........................................................................10
   3.5      DEBITING OF DISTRIBUTIONS............................................................................11
   3.6      CREDITING OF EARNINGS................................................................................11
      (a)      Rate of Return....................................................................................11
      (b)      Amount Invested...................................................................................11
      (c)      Determination of Amount...........................................................................11
   3.7      VESTING..............................................................................................11
      (a)      General...........................................................................................11
      (b)      Change in Control.................................................................................12
   3.8      NOTICE TO PARTICIPANTS OF ACCOUNT BALANCES...........................................................12
   3.9      GOOD FAITH VALUATION BINDING.........................................................................12
   3.10     ERRORS AND OMISSIONS IN ACCOUNTS.....................................................................12

ARTICLE IV INVESTMENT FUNDS......................................................................................13

   4.1      SELECTION BY ADMINISTRATIVE COMMITTEE................................................................13
   4.2      PARTICIPANT DIRECTION OF DEEMED INVESTMENTS..........................................................13
      (a)      Nature of Participant Direction...................................................................13
      (b)      Investment of Contributions.......................................................................13
      (c)      Administrative Committee Discretion...............................................................14
</TABLE>

                                      ii
<PAGE>

<TABLE>
<S>                                                                                                              <C>
ARTICLE V PAYMENT OF ACCOUNT BALANCES............................................................................15

   5.1      BENEFIT PAYMENTS UPON TERMINATION OF SERVICE FOR REASONS OTHER THAN DEATH............................15
      (a)      General Rule Concerning Benefit Payments..........................................................15
      (b)      Timing of Distribution............................................................................15
   5.2      FORM OF DISTRIBUTION.................................................................................16
      (a)      Single-Sum Payment................................................................................16
      (b)      Annual Installments...............................................................................16
   5.3      DEATH BENEFITS.......................................................................................17
   5.4      IN-SERVICE DISTRIBUTIONS.............................................................................17
      (a)      Hardship Distributions............................................................................17
      (b)      Distributions with Forfeiture.....................................................................17
   5.5      BENEFICIARY DESIGNATION..............................................................................18
      (a)      General...........................................................................................18
      (b)      No Designation or Designee Dead or Missing........................................................18
   5.6      TAXES................................................................................................18

ARTICLE VI CLAIMS................................................................................................20

   6.1      CLAIMS...............................................................................................20
      (a)      Initial Claim.....................................................................................20
      (b)      Appeal............................................................................................20
      (c)      Satisfaction of Claims............................................................................20

ARTICLE VII SOURCE OF FUNDS; TRUST...............................................................................21

   7.1      SOURCE OF FUNDS......................................................................................21
   7.2      TRUST................................................................................................21
      (a)      Establishment.....................................................................................21
      (b)      Distributions.....................................................................................21
      (c)      Status of the Trust...............................................................................21
      (d)      Change in Control.................................................................................21

ARTICLE VIII ADMINISTRATIVE COMMITTEE............................................................................23

   8.1      ACTION...............................................................................................23
   8.2      RIGHTS AND DUTIES....................................................................................23
   8.3      COMPENSATION, INDEMNITY AND LIABILITY................................................................24

ARTICLE IX AMENDMENT AND TERMINATION.............................................................................25

   9.1      AMENDMENTS...........................................................................................25
   9.2      TERMINATION OF PLAN..................................................................................25

ARTICLE X MISCELLANEOUS..........................................................................................26

   10.1     TAXATION.............................................................................................26
   10.2     NO EMPLOYMENT CONTRACT...............................................................................26
   10.3     HEADINGS.............................................................................................26
   10.4     GENDER AND NUMBER....................................................................................26
   10.5     ASSIGNMENT OF BENEFITS...............................................................................26
   10.6     LEGALLY INCOMPETENT..................................................................................26
   10.7     GOVERNING LAW........................................................................................27
</TABLE>

                                      iii
<PAGE>

                                   ARTICLE I
                                  DEFINITIONS

         For purposes of the Plan, the following terms, when used with an
initial capital letter, shall have the meaning set forth below unless a
different meaning plainly is required by the context.

         1.1      ACCOUNT SHALL MEAN, WITH RESPECT TO A PARTICIPANT OR
BENEFICIARY, THE TOTAL DOLLAR AMOUNT OR VALUE EVIDENCED BY THE LAST BALANCE
POSTED IN ACCORDANCE WITH THE TERMS OF THE PLAN TO THE ACCOUNT RECORD
ESTABLISHED FOR SUCH PARTICIPANT OR BENEFICIARY.

         1.2      ADMINISTRATIVE COMMITTEE shall mean the administrative
committee of the Savings and Investment Plan, or such other committee as shall
be appointed by the Board, which shall act on behalf of the Controlling Company
to administer the Plan, all as provided in Article VIII.

         1.3      BENEFICIARY shall mean, with respect to a Participant, the
person(s) designated in accordance with Section 5.5 to receive any death
benefits that may be payable under the Plan upon the death of the Participant.

         1.4      BOARD shall mean the Board of Directors of the Controlling
Company.

         1.5      CAUSE shall mean (i) an act that constitutes, on the part of
a Participant, (A) fraud, dishonesty, gross negligence, or willful misconduct
and (B) that directly results in material injury to the Controlling Company or
any member of the Controlled Group, or (ii) the Participant's conviction of a
felony or other crime involving moral turpitude. A termination of the
Participant shall not be considered a termination for Cause based on clause (i)
of the preceding sentence unless, at least 30 days before such termination is
effective, the Participating Company gives written notice of such termination
to the Participant specifying the conduct deemed to qualify as Cause, and the
Participating Company gives the Participant at least 30 days to remedy the
events or circumstances constituting Cause to the reasonable satisfaction of
the Controlling Company. A termination for Cause based on clause (ii) above
shall take effect immediately upon the Controlling Company's delivery of the
termination notice.

         1.6      CHANGE IN CONTROL shall mean and be deemed to occur on the
earliest of, and upon any subsequent occurrence of, the following:

                  (a)      During such period as the holders of the Controlling
Company's Class B common stock are entitled to elect a majority of the
Controlling Company's Board of Directors, the Permitted Holders shall at any
time fail to be the "beneficial owners" (as defined in Rules 13d-3 and 13d-5
under the Securities Exchange Act of 1934) of a majority of the issued and
outstanding shares of the Controlling Company's Class B common stock;

<PAGE>

                  (b)      At any time during which the holders of the
Controlling Company's Class B common stock have ceased to be entitled to elect
a majority of the Controlling Company's Board of Directors, the acquisition by
any "person", "entity", or "group" of "beneficial ownership" (as such terms are
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, and
rules promulgated thereunder) of more than 30 percent of the Voting Stock;

                  (c)      The effective time of (i) a merger, consolidation or
other business combination of the Controlling Company with one or more
corporations as a result of which the holders of the outstanding Voting Stock
of the Controlling Company immediately prior to such merger or consolidation
hold less than 51 percent of the Voting Stock of the surviving or resulting
corporation, or (ii) a transfer of all or substantially all of the property or
assets of the Controlling Company other than to an entity of which the
Controlling Company owns at least 51 percent of the Voting Stock, or (iii) a
plan of complete liquidation of the Controlling Company; and

                  (d)      The election to the Board of Directors of the
Controlling Company, without the recommendation or approval of Ray C. Anderson
if he is then serving on the Board of Directors, or if he is not then serving,
of the incumbent Board of Directors of the Controlling Company, of the lesser
of (i) four directors, or (ii) directors constituting a majority of the number
of directors of the Controlling Company then in office.

         1.7      CODE shall mean the Internal Revenue Code of 1986, as
amended, and any succeeding federal tax provisions.

         1.8      COMPENSATION shall mean, for a Participant for any Plan Year,
the total of such Participant's compensation that would be used under the
Savings and Investment Plan, for purposes of determining the amount of his
before-tax and matching contributions thereunder, if he were an active
participant in the Savings and Investment Plan during the portion of such Plan
Year that he is an active Participant herein, plus his Deferral Contributions
for such Plan Year; provided, for purposes of calculating a Participant's
Compensation hereunder, the maximum compensation limit under Code Section
401(a)(17) shall be disregarded.

         1.9      CONTROLLED GROUP shall mean all of the companies that are
either (i) members of the same controlled group of corporations (within the
meaning of Code Section 414(b)), or (ii) under common control (within the
meaning of Code Section 414(c)), with the Controlling Company.

         1.10     CONTROLLING COMPANY shall mean Interface, Inc., a corporation
with its principal place of business in Atlanta, Georgia.

         1.11     DEFERRAL CONTRIBUTIONS shall mean, for each Plan Year, that
portion of a Participant's Compensation deferred under the Plan pursuant to
Section 3.2.

         1.12     DEFERRAL ELECTION shall mean a written election form (or
election in any other format permitted by the Administrative Committee) on
which a Participant may elect to defer under the Plan a portion of his
Compensation.

                                       2
<PAGE>

         1.13     DISABILITY OR DISABLED shall mean a Participant's inability,
as a result of physical or mental incapacity, to substantially perform his
duties for the Controlling Company or any member of the Controlled Group on a
full-time basis for a period of 6 months.

         1.14     DISCRETIONARY CONTRIBUTIONS shall mean, for each Plan Year,
the amount credited to a Participant's Account pursuant to Section 3.4.

         1.15     EFFECTIVE DATE shall mean January 1, 2002, the date that this
amendment and restatement shall generally be effective. The Plan was initially
effective November 1, 1997.

         1.16     ELIGIBLE EMPLOYEE shall mean, for a Plan Year or portion of a
Plan Year, an individual:

                  (a)      Who is a member of a select group of highly
compensated or key management employees who the Administrative Committee, in
its sole discretion, determines is eligible to participate in the Plan; and

                  (b)      Who has satisfied the minimum compensation and/or
other classification requirements, if any, established from time to time by the
Administrative Committee.

         1.17     ERISA shall mean the Employee Retirement Income Security Act
of 1974, as amended.

         1.18     FINANCIAL HARDSHIP shall mean a severe financial hardship to
the Participant resulting from a sudden and unexpected illness or accident of
the Participant or of the Participant's dependent [as defined in Code Section
152(a)], loss of the Participant's property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant. Financial Hardship shall be determined
by the Administrative Committee on the basis of the facts of each case,
including information supplied by the Participant in accordance with uniform
guidelines prescribed from time to time by the Administrative Committee;
provided, the Participant will be deemed not to have a Financial Hardship to
the extent that such hardship is or may be relieved:

                  (a)      Through reimbursement or compensation by insurance
or otherwise;

                  (b)      By liquidation of the Participant's assets, to the
extent the liquidation of assets would not itself cause severe financial
hardship; or

                  (c)      By cessation of deferrals under the Plan.

Examples of what are not considered to be unforeseeable emergencies include the
need to send a Participant's child to college or the desire to purchase a home.

                                       3
<PAGE>

         1.19     INVESTMENT ELECTION shall mean an election, made in such form
as the Administrative Committee may direct, pursuant to which a Participant may
elect the Investment Funds in which the amounts credited to his Account shall
be deemed to be invested.

         1.20     INVESTMENT FUNDS shall mean the investment funds selected
from time to time by the Administrative Committee for purposes of determining
the rate of return on amounts deemed invested pursuant to the terms of the
Plan.

         1.21     INVOLUNTARY TERMINATION shall mean termination of employment
with the Controlling Company and all other members of the Controlled Group that
is involuntary on the part of a Participant and that occurs for reasons other
than for (i) Cause, (ii) Disability, or (iii) the Participant's death .

         1.22     MATCHING CONTRIBUTIONS shall mean, for each Plan Year, the
amount credited to a Participant's Account pursuant to Section 3.3.

         1.23     PARTICIPANT shall mean any person who has been admitted to,
and has not been removed from, participation in the Plan pursuant to the
provisions of Article II.

         1.24     PARTICIPATING COMPANY shall mean the Controlling Company and
the participating companies as listed on Schedule A in the Savings and
Investment Plan.

         1.25     PERMITTED HOLDERS shall mean the individuals listed on
Schedule 10.11 to the Second Amended and Restated Credit Agreement dated as of
June 25, 1997, by and among the Controlling Company, certain of its
subsidiaries, SunTrust Bank and the other banks parties thereto (regardless of
whether said agreement is terminated or continues in force and effect);
provided that, for purposes of this definition, the reference to each such
individual shall be deemed to include the members of such individual's
immediate family, such individual's estate, and any trusts created by such
individual for the benefit of members of such individual's immediate family.

         1.26     PLAN shall mean the Interface, Inc. Nonqualified Savings
Plan, as contained herein and all amendments hereto. For tax purposes and
purposes of Title I of ERISA, the Plan is intended to be an unfunded,
nonqualified deferred compensation plan covering certain designated employees
who are within a select group of key management or highly compensated
employees.

         1.27     PLAN YEAR shall mean the 12-consecutive-month period ending
on December 31 of each year.

         1.28     SAVINGS AND INVESTMENT PLAN shall mean the Interface, Inc.
Savings and Investment Plan, and any successor plan thereto.

         1.29     SURVIVING SPOUSE shall mean, with respect to a Participant,
the person who is treated as married to such Participant under the laws of the
state in which the Participant resides.

                                       4
<PAGE>

The determination of a Participant's Surviving Spouse shall be made as of the
date of such Participant's death.

         1.30     TRUST OR TRUST AGREEMENT shall mean the separate agreement or
agreements between the Controlling Company and the Trustee governing the
creation of the Trust Fund, and all amendments thereto.

         1.31     TRUSTEE shall mean the party or parties so designated from
time to time pursuant to the terms of the Trust Agreement.

         1.32     TRUST FUND shall mean the total amount of cash and other
property held by the Trustee (or any nominee thereof) at any time under the
Trust Agreement.

         1.33     VALUATION DATE shall mean any business day during the Plan
Year on which the value of a Participant's Account must be determined for any
reason under the Plan.

         1.34     VOLUNTARY TERMINATION shall mean termination of employment
with the Controlling Company and all other members of the Controlled Group that
is voluntary on the part of the Participant, and, in the judgment of the
Participant, is due to (i) a reduction of the Participant's responsibilities,
title or status resulting from a formal change in such title or status, or from
the assignment to the Participant of any duties inconsistent with his title,
duties or responsibilities in effect within the year prior to a Change in
Control; (ii) a reduction in the Participant's compensation or benefits, or
(iii) an employer-required involuntary relocation of the Participant's place of
residence or a significant increase in the Participant's travel requirements. A
termination shall not be considered voluntary if such termination is the result
of Cause, Disability or the Participant's death.

         1.35     VOTING STOCK shall mean the Controlling Company's outstanding
capital stock entitled to vote for the election of directors.

         1.36     YEAR OF SERVICE shall mean, with respect to a Participant,
the number of whole 12-month periods of service the Participant has with the
Controlling Company and the members of the Controlled Group. In determining a
Participant's number of whole 12-month periods of service for purposes of the
Plan, nonsuccessive periods of service shall be aggregated on the basis of days
of service, with 365 days (366 days in a leap year) of service equal to one
Year of Service. Periods of service of less than 365 days (366 days in a leap
year) shall be disregarded. To the extent determined by the Administrative
Committee, set forth on a schedule hereto, and not otherwise counted hereunder,
a Participant's periods of employment with one or more companies or enterprises
acquired by or merged into, or all or a portion of the assets or business of
which are acquired by, the Controlling Company or any member of the Controlled
Group, shall be taken into account in determining his Years of Service.

                                       5
<PAGE>

                                   ARTICLE II
                         ELIGIBILITY AND PARTICIPATION

         2.1      ELIGIBILITY.

                  (a)      ANNUAL PARTICIPATION. Each individual who is both an
Eligible Employee and eligible to participate in the Savings and Investment
Plan as of the first day of a Plan Year shall be eligible to participate in the
Plan for the entire Plan Year. Such individual's participation shall become
effective as of the first day of such Plan Year (assuming he satisfies the
procedures for admission described below).

                  (b)      INTERIM PLAN YEAR PARTICIPATION.

                           (i)      Each individual who is both an Eligible
Employee and eligible to participate in the Savings and Investment Plan as of
the Effective Date shall be eligible to participate in the Plan. Such
individual's participation shall become effective as of the Effective Date
(assuming he satisfies the procedures for admission described below).

                           (ii)     Each individual who is an Eligible Employee
and who becomes eligible to participate in the Savings and Investment Plan
during a Plan Year shall be eligible to participate in the Plan for a portion
of such Plan Year. Such individual's participation shall become effective as of
the first day of the calendar month coinciding with or next following the date
he becomes eligible to participate in the Savings and Investment Plan (assuming
he satisfies the procedures for admission described below).

                           (iii)    Each individual who is an Eligible
Employee, but who is not yet eligible to participate in the Savings and
Investment Plan, in the sole discretion of the Administrative Committee (which
may make such a determination on an individual-by-individual basis), may be
eligible to participate in the Plan for a portion of any Plan Year before he
otherwise becomes eligible to participate pursuant to this Section 2.1. Such
individual's participation shall become effective as of the date specified by
the Administrative Committee (assuming he satisfies the procedures for
admission described below).

         2.2      PROCEDURE FOR ADMISSION.

                  Each Eligible Employee shall become a Participant (i) for
Eligible Employees eligible to participate in the Savings and Investment Plan,
by electing to make to such plan the maximum percentage before-tax
contributions permitted thereunder; and (ii) by completing such forms and
providing such data in a timely manner, as are required by the Administrative
Committee as a precondition of participation in the Plan. Such forms and data
may include, without limitation, a Deferral Election, the Eligible Employee's
acceptance of the terms and conditions of the Plan, and the designation of a
Beneficiary to receive any death benefits payable hereunder.

                                       6
<PAGE>

         2.3      CESSATION OF ELIGIBILITY.

                  (a)      DECREASE IN 401(K) PLAN CONTRIBUTIONS. An Eligible
Employee's participation in the Plan for any Plan Year shall cease immediately
as of the time he elects to reduce his before-tax contributions to the Savings
and Investment Plan below the maximum percentage permitted thereunder or if,
for any reason, the level of such before-tax contributions are or decrease
below such amount; and such Eligible Employee shall be deemed to have revoked
his Deferral Election for such Plan Year pursuant to the terms of Section
3.2(d).

                  (b)      CESSATION OF ELIGIBLE STATUS. The Administrative
Committee may remove an employee from active participation in the Plan if, as
of any day during a Plan Year, he ceases to satisfy the criteria which
qualified him as an Eligible Employee, in which case his deferrals under the
Plan shall cease.

                  (c)      INACTIVE PARTICIPANT STATUS. Even if his active
participation in the Plan ends, an employee shall remain an inactive
Participant in the Plan until the earlier of (i) the date the full amount of
his vested Account (if any) is distributed from the Plan, or (ii) the date he
again becomes an Eligible Employee and recommences participation in the Plan.
During the period of time that an employee is an inactive Participant in the
Plan, his vested Account shall continue to be credited with earnings as
provided for in Section 3.6.

                                       7
<PAGE>

                                  ARTICLE III
                PARTICIPANTS' ACCOUNTS; DEFERRALS AND CREDITING

         3.1      PARTICIPANTS' ACCOUNTS.

                  (a)      ESTABLISHMENT OF ACCOUNTS. The Administrative
Committee shall establish and maintain, on behalf of each Participant, an
Account. Each Account shall be credited with (i) Deferral Contributions, (ii)
Matching Contributions, (iii) Discretionary Contributions, and (iv) earnings
attributable to such Account, and shall be debited by distributions. Each
Account of a Participant shall be maintained until the vested value thereof has
been distributed to or on behalf of such Participant or his Beneficiary.

                  (b)      NATURE OF CONTRIBUTIONS AND ACCOUNTS. The amounts
credited to a Participant's Account shall be represented solely by bookkeeping
entries. Except as provided in Article VII, no monies or other assets shall
actually be set aside for such Participant, and all payments to a Participant
under the Plan shall be made from the general assets of the Participating
Companies.

                  (c)      SEVERAL LIABILITIES. Each Participating Company
shall be severally (and not jointly) liable for the payment of benefits under
the Plan in an amount equal to the total of (i) all undistributed Deferral
Contributions withheld from Participants' Compensation paid or payable by each
such Participating Company, (ii) all undistributed Matching Contributions
attributable to Deferral Contributions described in clause (i) hereof, (iii)
all undistributed Discretionary Contributions attributable to such
contributions made for periods while the benefiting Participants were employed
by such Participating Company, and (iv) all undistributed earnings attributable
thereto. The Administrative Committee shall allocate the total liability to pay
benefits under the Plan among the Participating Companies pursuant to this
formula, and the Administrative Committee's determination shall be final and
binding.

                  (d)      GENERAL CREDITORS. Any assets which may be acquired
by a Participating Company in anticipation of its obligations under the Plan
shall be part of the general assets of such Participating Company. A
Participating Company's obligation to pay benefits under the Plan constitutes a
mere promise of such Participating Company to pay such benefits, and a
Participant or Beneficiary shall be and remain no more than an unsecured,
general creditor of such Participating Company.

         3.2      DEFERRAL CONTRIBUTIONS.

                  Each Eligible Employee who is or becomes eligible to
participate in the Plan for all or any portion of a Plan Year may elect to have
Deferral Contributions made on his behalf for such Plan Year by completing and
delivering to the Administrative Committee (or its designee) a Deferral
Election setting forth the terms of his election. Subject to the terms and
conditions set forth below, a Deferral Election may provide for the reduction
of an Eligible Employee's Compensation payable in each paycheck (including any
bonus checks) earned during the Plan

                                       8
<PAGE>

Year for which the Deferral Election is in effect. Subject to any
modifications, additions or exceptions that the Administrative Committee, in
its sole discretion, deems necessary, appropriate or helpful, the following
terms shall apply to such elections:

                  (a)      EFFECTIVE DATE.

                           (i)      INITIAL DEFERRAL ELECTION. A Participant's
initial Deferral Election with respect to his Compensation for any Plan Year
shall be effective for the first paycheck earned after the date the Deferral
Election becomes effective. To be effective, a Participant's initial Deferral
Election must be made within the time period prescribed by the Administrative
Committee (generally, before the first day of the Plan Year for which Deferral
Contributions will be made, or, if later, before the date on which his
participation becomes effective pursuant to Plan Section 2.1(b)). If an
Eligible Employee fails to submit a Deferral Election in a timely manner, he
shall be deemed to have elected not to participate in the Plan for that Plan
Year.

                           (ii)     SUBSEQUENT DEFERRAL ELECTION. A
Participant's subsequent Deferral Election with respect to his Compensation for
any Plan Year must be made on or before the last day of the Plan Year
immediately preceding the Plan Year for which he desires to participate and in
which the Compensation to be deferred is earned.

                  (b)      TERM. Each Participant's Deferral Election shall
remain in effect for all such Compensation earned during a Plan Year and
subsequent Plan Years until the earliest of (i) the date the Participant ceases
to be an active Participant for such Plan Year, (ii) the date the Participant
makes a subsequent Deferral Election applicable for a subsequent Plan Year, or
(iii) the date the Participant revokes such Deferral Election. If a Participant
is transferred from the employment of one Participating Company to the
employment of another Participating Company, his Deferral Election with the
first Participating Company will remain in effect and will apply to his
Compensation from the second Participating Company until the earliest of those
events set forth in the preceding sentence.

                  (c)      AMOUNT. A Participant may elect to defer his
Compensation payable in each paycheck in 1 percent increments, up to a maximum
of 15 percent, minus the maximum percentage before-tax contributions permitted
under the Savings and Investment Plan (or such other maximum percentage and/or
amount, if any, established by the Administrative Committee from time-to-time).
Because Code Section 401(a)(17) limits the amount of compensation that may be
taken into account in determining the amount of a participant's before-tax
contributions to the Savings and Investment Plan, the percentage of
Compensation that a Participant elects to defer under the Plan for a Plan Year
will not be reduced by the maximum percentage before-tax contributions
permitted under those plans once the Participant's compensation exceeds the
Code Section 401(a)(17) limit for the Plan Year.

                  (d)      REVOCATION. A Participant may revoke his Deferral
Election by delivering a written notice of revocation to the Administrative
Committee, and such revocation shall be effective as soon as practicable after
the date on which it is received by the Administrative Committee. (See also
Section 2.3(a)). A Participant who revokes a Deferral Election may enter into a
new Deferral Election with respect to his Compensation for any subsequent Plan
Year by

                                       9
<PAGE>

making such Deferral Election on or before the last day of the Plan Year
immediately preceding the Plan Year for which he desires to participate and in
which the Compensation to be deferred is earned.

                  (e)      CREDITING OF DEFERRED COMPENSATION. For each Plan
Year that a Participant has a Deferral Election in effect, the Administrative
Committee shall credit the amount of such Participant's Deferral Contributions
to his Account on, or as soon as practicable after, the Valuation Date on which
such amount would have been paid to him but for his Deferral Election.

         3.3      MATCHING CONTRIBUTIONS.

                  (a)      AMOUNT. The Administrative Committee shall credit to
each Participant's Account for each Plan Year a Matching Contribution equal to
the difference between:

                           (i)      50 percent multiplied by the lesser of (A)
the sum of the Participant's deferrals to the Savings and Investment Plan for
such Plan Year, plus the Participant's deferrals to the Plan for such Plan
Year, or (B) 4 percent of the Participant's Compensation for such Plan Year;
and

                           (ii)     The total amount of matching contributions
made to the Participant's account under the Savings and Investment Plan for
such Plan Year.

                  (b)      TIME OF CREDITING. A Participant's matching
contributions for a Plan Year will be credited to his Account as of the earlier
of (i) the date a Participant's employment with the Controlling Company and all
other members of the Controlled Group terminates during that Plan Year, or (ii)
the first day of the immediately following Plan Year (or such other date or
time as the Administrative Committee, in its sole discretion, determines from
time-to-time).

         3.4      DISCRETIONARY CONTRIBUTIONS.

                  The Administrative Committee may, but shall not be required
to, credit to a Participant's Account for any Plan Year a Discretionary
Contribution. The amount and timing of any such Discretionary Contribution
shall be determined in the discretion of the Administrative Committee.

                                      10
<PAGE>

         3.5      DEBITING OF DISTRIBUTIONS.

                  As of each Valuation Date, the Administrative Committee shall
debit each Participant's Account for any amount distributed from such Account
since the immediately preceding Valuation Date.

         3.6      CREDITING OF EARNINGS.

                  As of each Valuation Date, the Administrative Committee shall
credit to each Participant's Account the amount of earnings and/or losses
applicable thereto for the period since the immediately preceding Valuation
Date. Such crediting of earnings and/or losses shall be effected as of each
Valuation Date, as follows:

                  (a)      RATE OF RETURN. The Administrative Committee shall
first determine a rate of return for the period since the immediately preceding
Valuation Date for each of the Investment Funds;

                  (b)      AMOUNT INVESTED. The Administrative Committee next
shall determine the amount of (i) each Participant's Account that was deemed
invested in each Investment Fund as of the immediately preceding Valuation
Date; plus (ii) the amount of Deferral Contributions and Company Contributions
credited to his Account since the immediately preceding Valuation Date; minus
(iii) the amount of any distributions debited from the amount determined in
clause (A) and (B) since the immediately preceding Valuation Date; and

                  (c)      DETERMINATION OF AMOUNT. The Administrative
Committee shall then apply the rate of return for each Investment Fund for such
Valuation Date (as determined in subsection (a) hereof) to the amount of the
Participant's Account deemed invested in such Investment Fund for such
Valuation Date (as determined in subsection (b) hereof), and the total amount
of earnings and/or losses resulting therefrom shall be credited to such
Participant's Account as of the applicable Valuation Date.

         3.7      VESTING.

                  (a)      GENERAL. A Participant shall at all times be fully
vested in his Deferral Contributions, and the earnings credited to his Account
with respect to such Deferral Contributions. The Matching and Discretionary
Contributions credited to a Participant's Account and the earnings credited
with respect thereto shall vest in accordance with the following vesting
schedule based on the Participant's Years of Service:

                                      11
<PAGE>

<TABLE>
<CAPTION>
    Years of Service                            Vested Percentage of Participant's
Completed by Participant                    Matching and Discretionary Contributions
------------------------                    ----------------------------------------
<S>                                         <C>
Less than 1 year                                              0%
1 year or more                                               20%
2 years or more                                              40%
3 years or more                                              60%
4 years or more                                             80%
5 years or more                                            100%
</TABLE>

Notwithstanding the foregoing, a Participant shall become 100 percent vested in
the Matching and Discretionary Contributions credited to his Account and the
earnings credited with respect thereto upon the occurrence of any of the
following events: (i) the Participant's attainment of age 65, (ii) the
Participant's Disability, or (iii) the Participant's death.

                  (b)      CHANGE IN CONTROL. If a Change in Control occurs
with respect to the Controlling Company and a Participant's employment with the
Controlling Company and all other members of the Controlled Group is terminated
(i) within 24 months following the date of the Change in Control, or (ii)
within 6 months prior to the date of the Change in Control and is related to
such Change in Control, and in the case of either (i) or (ii) such termination
is a result of Involuntary Termination or Voluntary Termination, then the
Participant shall be immediately 100 percent vested in the Matching and
Discretionary Contributions credited to his Account and the earnings credited
with respect thereto as of the later of the date of such Change in Control or
the date of such termination. Matching and Discretionary Contributions credited
to a Participant's Account after the date of a Change in Control and the
earnings credited with respect thereto shall continue to vest in accordance
with the vesting schedule.

         3.8      NOTICE TO PARTICIPANTS OF ACCOUNT BALANCES.

                  At least once for each Plan Year, the Administrative
Committee shall cause a written statement of a Participant's Account balance to
be distributed to the Participant.

         3.9      GOOD FAITH VALUATION BINDING.

                  In determining the value of the Accounts, the Administrative
Committee shall exercise its best judgment, and all such determinations of
value (in the absence of bad faith) shall be binding upon all Participants and
their Beneficiaries.

         3.10     ERRORS AND OMISSIONS IN ACCOUNTS.

                  If an error or omission is discovered in the Account of a
Participant or in the amount of a Participant's deferrals, the Administrative
Committee, in its sole discretion, shall cause appropriate, equitable
adjustments to be made as soon as administratively practicable following the
discovery of such error or omission.

                                      12
<PAGE>

                                   ARTICLE IV
                                INVESTMENT FUNDS

         4.1      SELECTION BY ADMINISTRATIVE COMMITTEE.

         The Administrative Committee may change, add or remove Investment
Funds on a prospective basis at any time(s) and in any manner it deems
appropriate.

         4.2      PARTICIPANT DIRECTION OF DEEMED INVESTMENTS.

                  Each Participant generally may direct the manner in which his
Account shall be deemed invested in and among the Investment Funds. Any
Participant investment directions permitted hereunder shall be made in
accordance with the following terms:

                  (a)      NATURE OF PARTICIPANT DIRECTION. The selection of
Investment Funds by a Participant shall be for the sole purpose of determining
the rate of return to be credited to his Account, and shall not be treated or
interpreted in any manner whatsoever as a requirement or direction to actually
invest assets in any Investment Fund or any other investment media. The Plan,
as an unfunded, nonqualified deferred compensation plan, at no time shall have
any actual investment of assets relative to the benefits or Accounts hereunder.
However, the Controlling Company may, under Section 7.2, require a
Participating Company to transfer assets to the Trust sufficient to satisfy
such Participating Company's obligations under the Plan, and, at the direction
of the Controlling Company, such assets may be invested in a manner intended to
mirror the performance of the Investment Funds.

                  (b)      INVESTMENT OF CONTRIBUTIONS. Each Participant may
make an Investment Election prescribing the percentage of his future
contributions thereto that will be deemed invested in each Investment Fund. An
initial Investment Election of a Participant shall be made as of the date the
Participant commences participation in the Plan and shall apply to all
contributions credited to such Participant's Account after such date. Such
Participant may make subsequent Investment Elections as of any Valuation Date,
and each such election shall apply to all future contributions credited to such
Participant's Account after the Administrative Committee (or its designee) has
a reasonable opportunity to process such election pursuant to such procedures
as the Administrative Committee may determine from time to time. Any Investment
Election made pursuant to this subsection with respect to future contributions
shall remain effective until changed by the Participant.

                  (c)      INVESTMENT OF EXISTING ACCOUNT BALANCES. Each
Participant may make an Investment Election prescribing the percentage of his
existing Account balance that will be deemed invested in each Investment Fund.
Such Participant may make such Investment Elections as of any Valuation Date,
and each such election shall be effective after the Administrative Committee
(or its designee) has a reasonable opportunity to process such election. Each
such election shall remain in effect until changed by such Participant.

                  (d)      ADMINISTRATIVE COMMITTEE DISCRETION. The
Administrative Committee shall have complete discretion to adopt and revise
procedures to be followed in making such Investment Elections. Such procedures
may include, but are not limited to, the process of making elections, the
permitted frequency of making elections, the incremental size of elections, the
contribution types to which such elections apply, the deadline for making
elections and the effective date of such elections. Any procedures adopted by
the Administrative Committee that are inconsistent with the deadlines or
procedures specified in this Section shall supersede such provisions of this
Section without the necessity of a Plan amendment.

                                      13
<PAGE>

                                   ARTICLE V
                          PAYMENT OF ACCOUNT BALANCES

         5.1      BENEFIT PAYMENTS UPON TERMINATION OF SERVICE FOR REASONS
OTHER THAN DEATH.

                  (a)      GENERAL RULE CONCERNING BENEFIT PAYMENTS. In
accordance with the terms of subsection (b) hereof, if a Participant terminates
his employment with the Controlling Company and all other members of the
Controlled Group for any reason other than death, he (or his Beneficiary, if he
dies after such termination of employment but before distribution of his
Account) shall be entitled to receive or begin receiving a distribution of the
total of: (i) the entire vested amount credited to his Account, determined as
of the Valuation Date on which such distribution is processed; plus (ii) the
vested amount of Deferral, Matching and Discretionary Contributions made since
such Valuation Date; and minus (iii) the amount of any distributions made to
the Participant since such Valuation Date. For purposes of this subsection, the
"Valuation Date on which such distribution is processed" refers to the
Valuation Date established for such purpose by administrative practice, even if
actual payment is made or commenced at a later date due to delays in valuation,
administration or any other procedure.

                  (b)      TIMING OF DISTRIBUTION.

                           (i)      General Rule. Except as provided in
subsections (b)(ii), (iii), or (iv) hereof, the vested benefit payable to a
Participant under this Section shall be made or commenced as soon as
administratively feasible after the date the Participant terminates his
employment with the Controlling Company and all other members of the Controlled
Group for any reason other than death.

                           (ii)     Benefit Commencement Date Election. A
Participant may elect, at the time he makes a Deferral Election for each Plan
Year, to have his vested Account balance attributable to Deferral, Matching and
Discretionary Contributions (including earnings) for a Plan Year (his "Annual
Account Balance") paid (or commenced) (A) on any date specified in such
Deferral Election (whether before or after the date his employment terminates)
but not earlier than 1 year after the end of the Plan Year for which the
Deferral Election applies, or (B) on the earlier of the date elected under (A)
above or the date his employment terminates. A Participant's election hereunder
will apply to all subsequent years' Annual Account Balances until he changes
it. If a Participant does not make an election hereunder, he shall be deemed to
have elected the date described in subsection (b)(i) hereof as the benefit
commencement date for his vested Account balance.

                           (iii)    Modifications of Benefit Commencement Date.
With respect to any initially scheduled benefit commencement date (as
determined in accordance with subsections (b)(i) or (b)(ii) hereof), a
Participant who has not yet reached such initially scheduled benefit
commencement date may elect at least 1 year before such date to delay the
payment (or commencement) of his Annual Account Balance payable on such date to
a later date, or to accelerate an initially scheduled benefit commencement date
to an earlier date, and such Annual

                                      14
<PAGE>

Account Balance shall be paid (or commenced) as soon as administratively
feasible after such delayed or accelerated date; provided, any election to
delay or accelerate payment will be effective only if the rescheduled benefit
commencement date occurs no earlier than the first day of the second Plan Year
that begins after the date the election to defer or accelerate, as applicable,
is made. A Participant may, with respect to each Annual Account Balance, make
no more than 5 elections to delay, and no more than 2 elections to accelerate,
his scheduled benefit commencement date, subject to the timing restrictions set
forth above.

                           (iv)     Administrative Committee Control.
Notwithstanding a Participant's election in subsection (b)(ii) or (iii), the
Administrative Committee, in its sole discretion, may accelerate the date for
payment (or commencement) of a Participant's benefit.

                           (v)      Number of Benefit Commencement Dates. A
Participant may elect a different benefit commencement date with respect to
each Annual Account Balance. The Administrative Committee shall pay (or
commence the payment of) the Participant's benefit as soon as administratively
feasible after the time(s) specified in such Deferral Election(s).

         5.2      FORM OF DISTRIBUTION.

                  (a)      SINGLE-SUM PAYMENT. Except as provided in subsection
(b) hereof, the benefit payable to a Participant under Section 5.1 shall be
distributed in the form of a single-sum payment.

                  (b)      ANNUAL INSTALLMENTS. A Participant may elect, at the
time he makes a Deferral Election for each Plan Year, to have his Annual
Account Balance payable under Section 5.1 paid in the form of annual
installment payments. To the extent a Participant elects multiple benefit
commencement dates in accordance with Section 5.1(b)(v), such Participant may
elect at the time of such subsequent Deferral Elections, to have the Annual
Account Balance attributable to such election paid in the form of annual
installments beginning as of such benefit commencement dates. If a Participant
does not elect the installment form of distribution with respect to a benefit
commencement date, his Annual Account Balance corresponding to such benefit
commencement date shall be paid in the form of a single-sum payment unless, at
least 1 year before such benefit commencement date, the Participant makes an
election in writing to receive such Annual Account Balance in the form of
installment payments (in accordance with the terms of this subsection). The
following terms and conditions shall apply to installment payments made under
the Plan:

                           (i)      The installment payments shall be made in
substantially equal annual installments over a period of either 5 or 10 years
(adjusted for earnings between payments in the manner described in Section
3.6). The initial value of the obligation for the installment payments shall be
equal to the amount of the Participant's Account balance calculated in
accordance with the terms of Section 5.1(a).

                           (ii)     If a Participant dies after payment of his
benefit from the Plan has begun, but before his entire benefit has been
distributed, the remaining amount of his Account

                                      15
<PAGE>

balance shall be distributed to the Participant's designated Beneficiary in the
form of a single-sum payment.

                           (iii)    Notwithstanding a Participant's election of
installment payments under this subsection (b), if the Participant's employment
with the Controlling Company and all other members of the Controlled Group
terminates before he has participated in the Plan for at least 5 full Plan
Years, his benefit shall be paid in the form of a single-sum payment.

                           (iv)     Notwithstanding a Participant's election of
installment payments under this subsection (b), the Administrative Committee,
in its sole discretion, may cause the Participant's benefit to be paid in the
form of a single-sum payment.

         5.3      DEATH BENEFITS.

                  If a Participant dies before payment of his benefit from the
Plan is made or commenced, the Beneficiary or Beneficiaries designated by such
Participant in his latest beneficiary designation form filed with the
Administrative Committee shall be entitled to receive a distribution of the
total of (i) the entire vested amount credited to such Participant's Account,
determined as of the Valuation Date on which such distribution is processed;
plus (ii) the vested amount of Deferral, Matching and Discretionary
Contributions made since such Valuation Date; and minus (iii) the amount of any
distributions made to the Participant since such Valuation Date. For purposes
of this Section, the "Valuation Date on which such distribution is processed"
refers to the Valuation Date established for such purpose by administrative
practice, even if actual payment is made at a later date due to delays in
valuation, administration or any other procedure. The benefit shall be
distributed to such Beneficiary or Beneficiaries, as soon as administratively
feasible after the date of the Participant's death, in the form of a single-sum
payment.

         5.4      IN-SERVICE DISTRIBUTIONS.

                  (a)      HARDSHIP DISTRIBUTIONS. Upon receipt of an
application for an in-service hardship distribution and the Administrative
Committee's decision, made in its sole discretion, that a Participant has
suffered a Financial Hardship, such Participant shall be entitled to receive an
in-service distribution. Such distribution shall be paid in a single-sum
payment as soon as administratively feasible after the Administrative Committee
determines that the Participant has incurred a Financial Hardship. The amount
of such single-sum payment shall be limited to the amount that the
Administrative Committee determines is reasonably necessary to meet the
Participant's requirements resulting from the Financial Hardship. The amount of
such distribution shall reduce the Participant's Account balance as provided in
Section 3.5.

                  (b)      DISTRIBUTIONS WITH FORFEITURE. Notwithstanding any
other provision of this Article V to the contrary, a Participant may elect, at
any time prior to the distribution of his entire Account, to withdraw all or
any portion of his remaining vested Account balance; provided, each Participant
may make only two such elections under this Section 5.4(b). Such distribution
shall be made in the form of a single-sum payment in cash as soon as
administratively feasible after the date of the Participant's election under
this Section 5.4(b). At

                                      16
<PAGE>

the time such distribution is made, an amount equal to 8% of the amount
distributed shall be permanently and irrevocably forfeited (and, if the
distribution request is for more than 92% of such Participant's Account, the
forfeiture amount shall be deducted from his distribution amount to the extent
there otherwise will be an insufficient remaining Account balance from which to
deduct this forfeiture). In addition, the Deferral Election of an active
Participant receiving such distribution shall immediately be revoked and the
Participant shall not be eligible to enter into a new Deferral Election for a
period of 1 year after such distribution. Such Participant may enter into a new
Deferral Election effective on the first day of the calendar year coincident
with or next following the 1-year anniversary of such distribution by
completing a new Deferral Election and satisfying any other procedures for
admission hereunder. If such Participant fails to make a Deferral Election on a
timely basis, he shall be deemed to have elected not to participate in the Plan
at that time.

         5.5      BENEFICIARY DESIGNATION.

                  (a)      GENERAL. Participants shall designate and from time
to time may redesignate their Beneficiaries in such form and manner as the
Administrative Committee may determine.

                  (b)      NO DESIGNATION OR DESIGNEE DEAD OR MISSING. In the
event that:

                           (1)      a Participant dies without designating a
Beneficiary;

                           (2)      the Beneficiary designated by a Participant
is not surviving when a payment is to be made to such person under the Plan,
and no contingent Beneficiary has been designated; or

                           (3)      the Beneficiary designated by a Participant
cannot be located by the Administrative Committee within 1 year from the date
benefits are to be paid to such person;

then, in any of such events, the Beneficiary of such Participant with respect
to any benefits that remain payable under the Plan shall be the Participant's
Surviving Spouse, if any, and if not, the estate of the Participant.

         5.6      TAXES.

                  If the whole or any part of any Participant's or
Beneficiary's benefit hereunder shall become subject to any estate,
inheritance, income or other tax which the Participating Companies shall be
required to pay or withhold, the Participating Companies shall have the full
power and authority to withhold and pay such tax out of any monies or other
property in its hand for the account of the Participant or Beneficiary whose
interests hereunder are so affected. Prior to making any payment, the
Participating Companies may require such releases or other documents from any
lawful taxing authority as it shall deem necessary. Notwithstanding anything in
the Plan to the contrary, the distribution of a Participant's benefit hereunder
prior to his termination of employment with the Company shall be limited such
that, to the extent the distribution causes the Participant's compensation to
exceed the amount that the Administrative Committee determines would be
deductible under Code Section 162(m), such excess does not exceed $500,000.

                                      17
<PAGE>

                                   ARTICLE VI
                                     CLAIMS

         6.1      CLAIMS.

                  (a)      INITIAL CLAIM. Claims for benefits under the Plan
may be filed with the Administrative Committee on forms or in such other
written documents, as the Administrative Committee may prescribe. The
Administrative Committee shall furnish to the claimant written notice of the
disposition of a claim within 90 days after the application therefor is filed.
In the event the claim is denied, the notice of the disposition of the claim
shall provide the specific reasons for the denial, citations of the pertinent
provisions of the Plan, and, where appropriate, an explanation as to how the
claimant can perfect the claim and/or submit the claim for review.

                  (b)      APPEAL. Any Participant or Beneficiary who has been
denied a benefit shall be entitled, upon request to the Administrative
Committee, to appeal the denial of his claim. The claimant (or his duly
authorized representative) may review pertinent documents related to the Plan
and in the Administrative Committee's possession in order to prepare the
appeal. The request for review, together with written statement of the
claimant's position, must be filed with the Administrative Committee no later
than 60 days after receipt of the written notification of denial of a claim
provided for in subsection (a). The Administrative Committee's decision shall
be made within 60 days following the filing of the request for review. If
unfavorable, the notice of the decision shall explain the reasons for denial
and indicate the provisions of the Plan or other documents used to arrive at
the decision.

                  (c)      SATISFACTION OF CLAIMS. Any payment to a Participant
or Beneficiary shall to the extent thereof be in full satisfaction of all
claims hereunder against the Administrative Committee and the Participating
Companies, any of whom may require such Participant or Beneficiary, as a
condition to such payment, to execute a receipt and release therefor in such
form as shall be determined by the Administrative Committee or the
Participating Companies. If receipt and release is required but the Participant
or Beneficiary (as applicable) does not provide such receipt and release in a
timely enough manner to permit a timely distribution in accordance with the
general timing of distribution provisions in the Plan, the payment of any
affected distribution may be delayed until the Administrative Committee or the
Participating Companies receive a proper receipt and release.

                                      18
<PAGE>

                                  ARTICLE VII
                             SOURCE OF FUNDS; TRUST

         7.1      SOURCE OF FUNDS.

                  Except as provided in this Section and Section 7.2 (relating
to the Trust), each Participating Company shall provide the benefits described
in the Plan from its general assets. However, to the extent that funds in such
Trust allocable to the benefits payable under the Plan are sufficient, the
Trust assets may be used to pay benefits under the Plan. If such Trust assets
are not sufficient to pay all benefits due under the Plan, then the appropriate
Participating Company shall have the obligation, and the Participant or
Beneficiary who is due such benefits shall look to such Participating Company,
to provide the remaining portion of such benefits.

         7.2      TRUST.

                  (a)      ESTABLISHMENT. To the extent determined by the
Controlling Company, the Participating Companies shall transfer the funds
necessary to fund benefits accrued hereunder to the Trustee to be held and
administered by the Trustee pursuant to the terms of the Trust Agreement.
Except as otherwise provided in the Trust Agreement, each transfer into the
Trust Fund shall be irrevocable as long as a Participating Company has any
liability or obligations under the Plan to pay benefits, such that the Trust
property is in no way subject to use by the Participating Company; provided, it
is the intent of the Controlling Company that the assets held by the Trust are
and shall remain at all times subject to the claims of the general creditors of
the Participating Companies.

                  (b)      DISTRIBUTIONS. Pursuant to the Trust Agreement, the
Trustee shall make payments to Plan Participants and Beneficiaries in
accordance with the terms of the Plan. The Participating Company shall make
provisions for the reporting and withholding of any federal, state or local
taxes that may be required to be withheld with respect to the payment of
benefits pursuant to the terms of the Plan and shall pay amounts withheld to
the appropriate taxing authorities or determine that such amounts have been
reported, withheld and paid by the Participating Company.

                  (c)      STATUS OF THE TRUST. No Participant or Beneficiary
shall have any interest in the assets held by the Trust or in the general
assets of the Participating Companies other than as a general, unsecured
creditor. Accordingly, a Participating Company shall not grant a security
interest in the assets held by the Trust in favor of the Participants,
Beneficiaries or any creditor.

                  (d)      CHANGE IN CONTROL. As soon as possible but in no
event longer than 30 days after the Change in Control, the Participating
Companies shall make an irrevocable transfer to the Trustee of an amount that
is sufficient to pay each Plan Participant or Beneficiary the benefits to which
Plan Participants or their Beneficiaries would be entitled pursuant to the
terms of the Plan as of the date on which the Change in Control occurred. In
such event, an independent bank or financial institution shall serve as
Trustee. The terms of the Trust Agreement shall require the Trustee to make
payments in accordance with the terms of the Plan and shall prohibit the
Trustee from permitting a reversion to the Controlling Company or any member of
the Controlled Group of any Trust assets until the Participating Companies'
obligations under the Plan shall be satisfied in full. The terms of the Trust
Agreement also shall prohibit the investment in any equity interests of the
Controlling Company or any member of the Controlled Group with any cash (or
investment earnings attributable thereto) contributed with respect to the
obligations hereunder. Notwithstanding this mandatory funding of the Trust, if
the Trust Fund is insufficient or the Trustee for any reason is unable or
unwilling to make the payments required hereunder, the Participating Companies
shall make such payments.

                                      19
<PAGE>

                                  ARTICLE VIII
                            ADMINISTRATIVE COMMITTEE

         8.1      ACTION.

                  Action of the Administrative Committee may be taken with or
without a meeting of committee members; provided, action shall be taken only
upon the vote or other affirmative expression of a majority of the committee
members qualified to vote with respect to such action. If a member of the
committee is a Participant or Beneficiary, he shall not participate in any
decision which solely affects his own benefit under the Plan. For purposes of
administering the Plan, the Administrative Committee shall choose a secretary
who shall keep minutes of the committee's proceedings and all records and
documents pertaining to the administration of the Plan. The secretary may
execute any certificate or any other written direction on behalf of the
Administrative Committee.

         8.2      RIGHTS AND DUTIES.

                  The Administrative Committee shall administer the Plan and
shall have all powers necessary to accomplish that purpose, including (but not
limited to) the following:

                  (a)      To construe, interpret and administer the Plan;

                  (b)      To make determinations required by the Plan, and to
maintain records regarding Participants' and Beneficiaries' benefits hereunder;

                  (c)      To compute and certify to the Participating
Companies the amount and kinds of benefits payable to Participants and
Beneficiaries, and to determine the time and manner in which such benefits are
to be paid;

                  (d)      To authorize all disbursements by the Participating
Companies pursuant to the Plan;

                  (e)      To maintain all the necessary records of the
administration of the Plan;

                  (f)      To make and publish such rules for the regulation of
the Plan as are not inconsistent with the terms hereof;

                  (g)      To delegate to other individuals or entities from
time to time the performance of any of its duties or responsibilities
hereunder;

                  (h)      To hire agents, accountants, actuaries, consultants
and legal counsel to assist in operating and administering the Plan.

                                      20
<PAGE>

The Administrative Committee shall have the exclusive right to construe and
interpret the Plan, to decide all questions of eligibility for benefits and to
determine the amount of such benefits, and its decisions on such matters shall
be final and conclusive on all parties.

         8.3      COMPENSATION, INDEMNITY AND LIABILITY.

                  The Administrative Committee and its members shall serve as
such without bond and without compensation for services hereunder. All expenses
of the Administrative Committee shall be paid by the Participating Companies.
No member of the committee shall be liable for any act or omission of any other
member of the committee, nor for any act or omission on his own part, excepting
his own willful misconduct. The Participating Companies shall indemnify and
hold harmless the Administrative Committee and each member thereof against any
and all expenses and liabilities, including reasonable legal fees and expenses,
arising out of his membership on the committee.

                                      21
<PAGE>

                                   ARTICLE IX
                           AMENDMENT AND TERMINATION

         9.1      AMENDMENTS.

                  The Administrative Committee shall have the right, in its
sole discretion, to amend the Plan in whole or in part at any time and from
time to time. Any amendment shall be in writing and executed by a duly
authorized officer of the Controlling Company. An amendment to the Plan may
modify its terms in any respect whatsoever, and may include, without
limitation, a permanent or temporary freezing of the Plan such that the Plan
shall remain in effect with respect to existing Account balances without
permitting any new contributions; provided, no such action may reduce the
amount already credited to a Participant's Account without the affected
Participant's written consent. All Participants and Beneficiaries shall be
bound by such amendment.

         9.2      TERMINATION OF PLAN.

The Controlling Company reserves the right to discontinue and terminate the
Plan at any time, for any reason. Any action to terminate the Plan shall be
taken by the Administrative Committee in the form of a written Plan amendment
executed by either the President, Chief Financial Officer or General Counsel of
the Controlling Company. If the Plan is terminated, each Participant shall
become 100 percent vested in his Account which shall be distributed in a
single-sum as soon as practicable after the date the Plan is terminated. The
amount of any such distribution shall be determined as of the Valuation Date
such termination distribution is to be processed. Such termination shall be
binding on all Participants and Beneficiaries.

                                      22
<PAGE>

                                   ARTICLE X
                                 MISCELLANEOUS

         10.1     TAXATION.

                  It is the intention of the Controlling Companies that the
benefits payable hereunder shall not be deductible by the Participating
Companies nor taxable for federal income tax purposes to Participants or
Beneficiaries until such benefits are paid by the Participating Companies, or
the Trust, as the case may be, to such Participants or Beneficiaries. Subject
to Section 5.6, it is the intention of the Participating Companies that
benefits paid under the Plan shall be deductible by the Participating Companies
under Code Section 162.

         10.2     NO EMPLOYMENT CONTRACT.

                  Nothing herein contained is intended to be nor shall be
construed as constituting a contract or other arrangement between a
Participating Company and any Participant to the effect that the Participant
will be employed by the Participating Company for any specific period of time.

         10.3     HEADINGS.

                  The headings of the various articles and sections in the Plan
are solely for convenience and shall not be relied upon in construing any
provisions hereof. Any reference to a section shall refer to a section of the
Plan unless specified otherwise.

         10.4     GENDER AND NUMBER.

                  Use of any gender in the Plan will be deemed to include all
genders when appropriate, and use of the singular number will be deemed to
include the plural when appropriate, and vice versa in each instance.

         10.5     ASSIGNMENT OF BENEFITS.

                  The right of a Participant or his Beneficiary to receive
payments under the Plan may not be anticipated, alienated, sold, assigned,
transferred, pledged, encumbered, attached or garnished by creditors of such
Participant or Beneficiary, except by will or by the laws of descent and
distribution and then only to the extent permitted under the terms of the Plan.

         10.6     LEGALLY INCOMPETENT.

                  The Administrative Committee, in its sole discretion, may
direct that payment be made to an incompetent or disabled person, whether
because of minority or mental or physical disability, to the guardian of such
person or to the person having custody of such person, without further
liability on the part of a Participating Company for the amount of such payment
to the person on whose account such payment is made.

                                      23
<PAGE>

         10.7     GOVERNING LAW.

                  The Plan shall be construed, administered and governed in all
respects in accordance with applicable federal law (including ERISA) and, to
the extent not preempted by federal law, in accordance with the laws of the
State of Georgia. If any provisions of this instrument shall be held by a court
of competent jurisdiction to be invalid or unenforceable, the remaining
provisions hereof shall continue to be fully effective.

         IN WITNESS WHEREOF, the Controlling Company has caused the Plan to be
executed by its duly authorized officer on the 10 day of December, 2001.

                                    INTERFACE, INC.

                                    By: /s/ Raymond S. Willoch
                                       ----------------------------------------

                                    Title: Senior Vice President
                                          -------------------------------------

                                      24
<PAGE>

                                   EXHIBIT A

                            PARTICIPATING COMPANIES
                                 (See ss. 1.24)

COMPANY NAMES                                                 EFFECTIVE DATE
-------------                                                 --------------

Architectural Floors, Inc.                                    November 1, 1997
Bentley Mills, Inc.                                           November 1, 1997
C-TEC, Inc.                                                   November 1, 1997
Guilford of Maine, Inc.                                       November 1, 1997
Guilford of Maine Decorative Fabrics, Inc.                    November 1, 1997
Guilford of Maine Finishing Services, Inc.                    November 1, 1997
Guilford of Maine Marketing Co.                               November 1, 1997
Interface, Inc.                                               November 1, 1997
Interface Architectural Resources, Inc.                       November 1, 1997
Interface Flooring Systems, Inc.                              November 1, 1997
Interface Interior Fabrics, Inc.                              November 1, 1997
Interface Research Corporation                                November 1, 1997
Pandel, Inc.                                                  November 1, 1997
Prince Street Technologies, Ltd.                              November 1, 1997
Renovisions, Inc.                                             November 1, 1997
Re:Source Americas Enterprises, Inc.                          November 1, 1997
Rockland React-Rite, Inc.                                     November 1, 1997
A & F Installations, Inc.                                     January 1, 1998
B. Shehadi & Sons, Inc.                                       January 1, 1998
Canaan Corporation                                            January 1, 1998
Carpet Services of Tampa, Inc.                                January 1, 1998
Congress Flooring Corporation                                 January 1, 1998
Earl W. Bentley Operating Company, Inc.                       January 1, 1998
Facilities Resource Group, Inc.                               January 1, 1998
Floor Concepts, Inc.                                          January 1, 1998
Flooring Consultants, Inc.                                    January 1, 1998
Lasher/White Carpet Company, Inc.                             January 1, 1998
Oldtown Carpet Center, Inc.                                   January 1, 1998
Parcom, Inc.                                                  January 1, 1998
Quaker City International, Inc.                               January 1, 1998
Re:Source Oregon, Inc.                                        January 1, 1998
Re:Source Southern California, Inc.                           January 1, 1998
Re:Source Minnesota, Inc.                                     January 1, 1998
Southern Contract Systems, Inc.                               January 1, 1998
Superior/Rieser Flooring Resources, Inc.                      January 1, 1998
Corporate Floor Works, Inc.                                   May 5, 1998
Atlanta Access, Inc.                                          June 10, 1998
J. Graham, Inc.                                               July 13, 1998

                                      A-1
<PAGE>
Kustom Karpet Services, Inc.                                  September 11, 1998
Carpet Workshop, Inc.                                         September 14, 1998
Carpet Maintenance Systems, Inc.                              October 22, 1998
Guilford of Maine, Inc.                                       January 1, 1999
Guilford of Maine Decorative Fabrics, Inc.                    January 1, 1999
Guilford of Maine Finishing Services, Inc.                    January 1, 1999
Guilford of Maine Marketing Co.                               January 1, 1999
Intek, Inc.                                                   January 1, 1999
Intek Marketing Company                                       January 1, 1999
Toltec Fabrics, Inc.                                          January 1, 1999
Premier Floors, Inc.                                          February 5, 1999
All Hours Flooring Services, Inc.                             July 1, 1999
Interface Americas, Dyehouse Operations, LLC                  October 23, 2000
Interface Americas, Inc.                                      January 1, 2001

                                      A-2

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