Document:

Tandus Group, Inc. Employment Agreement

 Exhibit 10.19 
 Execution Copy 
 COLLINS & AIKMAN FLOORCOVERINGS, INC. 
 EMPLOYMENT AGREEMENT 
 THIS AGREEMENT
is made as of February 2, 2007, between Collins & Aikman Floorcoverings, Inc., a Delaware corporation (the “Company”), and Glen A. Hussmann (“Executive”). 
 In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows: 
 1. Employment. The Company shall employ Executive, and Executive hereby accepts
employment with the Company, upon the terms and conditions set forth in this Agreement for the period beginning on February 19, 2007 and ending as provided in Section 5 hereof (the “Employment Period”). 

2. Position and Duties. 
 (a)
During the Employment Period, Executive shall serve as the President and Chief Executive Officer of the Company and shall have the normal duties, responsibilities, functions and authority of the President and Chief Executive Officer, subject to the
power and authority of the Board of Directors of the Company (the “Board”) to expand or limit such duties, responsibilities, functions and authority. During the Employment Period, Executive shall render such administrative,
financial and other executive and managerial services to the Company, its Subsidiaries (as defined below) and Tandus Group, Inc., the sole owner of the common stock of the Company (collectively, the “Group”), that are consistent
with Executive’s position as the Board may from time to time direct. 
 (b) During the Employment Period, Executive shall
(i) report to the Board, (ii) devote his best efforts and his full business time and attention (except for permitted vacation periods and reasonable periods of illness or other incapacity) to the business and affairs of the Group, and
(iii) reside in the region including and surrounding the cities of Chattanooga, Tennessee and Dalton, Georgia. Executive shall perform his duties, responsibilities and functions to the Group hereunder to the best of his abilities in a diligent,
trustworthy, professional and efficient manner and shall comply with the Group’s policies and procedures in all material respects. During the Employment Period, Executive shall not serve as an officer or director of, or otherwise perform
services for compensation for, any other entity without the prior written consent of the Board; provided, however, that Executive may serve as an officer or director of or otherwise participate in solely educational, welfare, social,
religious and civic organizations so long as such activities do not interfere with Executive’s duties and responsibilities with the Group. 

 (c) For purposes of this Agreement, “Subsidiaries” shall mean any corporation or other
entity of which the securities or other ownership interests having the voting power to elect a majority of the board of directors or other governing body are, at the time of determination, owned by the Company, directly or through one of more
Subsidiaries. 
 3. Compensation and Benefits. 
 (a) During the Employment Period, Executive’s base salary shall be $350,000 per annum or such higher rate as the Board may determine from time to time (as adjusted from time to time, the “Base
Salary”), which salary shall be prorated based on the number of days elapsed during any partial year and payable by the Company in regular installments in accordance with the Company’s general payroll practices in effect from time to
time. In addition, during the Employment Period, Executive shall be entitled to participate in the Company’s employee benefit programs for which senior executive employees of the Company are generally eligible, and Executive shall be entitled
to four (4) weeks of paid vacation each calendar year in accordance with the Company’s policies. 
 (b) During the Employment
Period, the Company shall reimburse Executive for reasonable business expenses incurred by him in the course of performing his duties and responsibilities under this Agreement which are consistent with the Company’s policies in effect from time
to time with respect to travel, entertainment and other business expenses. 
 (c) In addition to the Base Salary, Executive shall be eligible
for a bonus following the end of each fiscal year during the Employment Period based upon the Company’s achievement of certain financial targets for such year, as established by the Board. The target amount for each year’s bonus payment
shall equal one hundred percent (100%) of Executive’s Base Salary for such year. 
 (d) The Company shall also: 
 (i) during the Employment Period, at the Company’s election, either (A) reimburse Executive in the amount of $1,225 per month
(before appropriate tax withholding by the Company) for the cost of Executive’s personal automobile and insurance coverage thereof or (B) pay Executive an annual guaranteed bonus of $14,700, which guaranteed bonus would be provided to
Executive in addition to any bonus provided to Executive pursuant to Section 3(c) above; and 
 (ii) reimburse
Executive for reasonable expenses incurred in connection with his relocation and commencement of employment hereunder and related to: (A) the relocation of his household goods (including packing and unpacking thereof) by a moving service
approved by the Company; (B) up to three (3) trips by his spouse to search for housing; (C) up to six (6) months of temporary housing; (D) the customary real estate broker commission payable in connection with
Executive’s sale of his existing primary residence and (E) the customary closing costs incurred in connection with obtaining the mortgage financing for the purchase of Executive’s new primary residence referred to in
Section 2(b)(iii) hereof. 
  

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 (e) All amounts payable to Executive as compensation hereunder shall be subject to all required and
customary withholding by the Group. 
 (f) Any reimbursement by the Company for expenses incurred by Executive pursuant to this
Section 3 is subject to the Company’s requirements with respect to reporting and documentation of such expenses. 
 4.
Board Membership. With respect to all regular elections of directors during the Employment Period, the Company shall nominate, and use its reasonable efforts to cause the election of, Executive to serve as a member of the Board. Upon the
termination or expiration of the Employment Period, Executive shall resign as a director of the companies within the Group (each, a “Group Company”), as applicable. 
 5. Term. 
 (a) Unless expressly
renewed by the Company and Executive in writing, the Employment Period shall begin on February 19, 2007 and end on February 18, 2010 and shall automatically be renewed on the same terms and conditions set forth herein (as modified from
time to time by the parties hereto) for additional one-year periods beginning on February 19, 2010, unless the Company or Executive gives the other party written notice of the election not to renew the Employment Period at least sixty
(60) days prior to any such renewal date; provided, however, that (i) the Employment Period shall terminate prior to such date immediately upon Executive’s resignation, death or upon the date on which Executive becomes
Disabled and (ii) the Employment Period may be terminated by the Company at any time prior to such date for Cause (as defined below) or without Cause. Except as otherwise provided herein, any termination of the Employment Period by the Company
shall be effective as specified in a written notice from the Company to Executive. The date of Executive’s termination under any of the circumstances set forth in this Section 5(a) shall be referred to herein as the
“Termination Date.” 
 (b) If the Employment Period is terminated by the Company without Cause, 
 (i) Executive shall be entitled to continue to receive his Base Salary, payable in regular installments in accordance with the
Company’s payroll policies, at the same rate at which Executive received his Base Salary from the Company immediately prior to the Termination Date, and to continue to participate in employee benefit programs for senior executive employees
(other than bonus and incentive compensation plans) to the extent permitted under the terms of such programs or, if not permitted, as provided under applicable law, commencing on such date and continuing for a period of six months thereafter (the
“Severance Period”), if and only if Executive has executed and delivered to the Company within twenty-two (22) days following the Termination Date the General Release substantially in form and substance as set forth in
Exhibit A attached hereto and the General Release has become effective, and only so long as Executive has not revoked or breached the provisions of the General Release or breached the provisions of Section 6, Section 7
and Section 8 hereof and does not apply for unemployment compensation chargeable to the Group during the Severance Period (provided that if the Company is a “public company” within the meaning of Code §409A, any amounts

  

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payable to Executive during the first six months and one day following the date of termination pursuant to this Section 5(b) shall be deferred
until the date six months and one day following such termination, and if such payments are required to be so deferred, the first payment shall be in an amount equal to the total amount to which Executive would otherwise have been entitled to during
the period following the Termination Date if the deferral had not been required), and 
 (ii) Executive shall not be entitled
to any other salary, compensation or benefits after termination of the Employment Period, except as specifically provided for in the Company’s employee benefit plans or as otherwise expressly required by applicable law. 
 The amounts payable pursuant to this Section 5(b) shall be reduced by the amount of any compensation Executive receives with respect to any other employment
during the Severance Period; provided, however, that Executive shall have no duty or obligation to seek other employment during the Severance Period or otherwise mitigate damages hereunder. Notwithstanding any other provision of this
Agreement, if following the termination of his employment Executive is entitled to payments or other benefits under this Section 5(b), but the Company later determines that Cause with respect to Executive exists or existed on, prior to,
or after such termination of Executive, (i) Executive shall not be entitled to any payments or other benefits pursuant to this Section 5(b), (ii) any and all payments to be made by the Company and any and all benefits to be
provided to Executive pursuant to this Section 5(b) shall cease and (iii) any such payments previously made to Executive shall be returned immediately to the Company by Executive. 
 (c) If the Employment Period is terminated by the Company for Cause or is terminated pursuant to clause (a)(i) above, Executive shall only be entitled to
receive his Base Salary through the Termination Date and shall not be entitled to any other salary, compensation or benefits from the Group thereafter, except as otherwise specifically provided for under the Company’s employee benefit plans or
as otherwise expressly required by applicable law. 
 (d) Except as otherwise expressly provided herein, all of Executive’s rights to
salary, bonuses, employee benefits and other compensation hereunder which would have accrued or become payable after the termination or expiration of the Employment Period shall cease upon such termination or expiration, other than those expressly
required under applicable law (such as COBRA). The Company may offset any amounts Executive owes it or any other Group Company against any amounts it or any other Group Company owes Executive hereunder. 
 (e) For purposes of this Agreement, “Cause” shall mean with respect to Executive one or more of the following: (i) the commission
of a felony, a crime involving moral turpitude or any other act or omission involving dishonesty, disloyalty or fraud with respect to the Group or any customer or supplier of any Group Company, (ii) conduct that brings or is reasonably likely
to bring any Group Company into substantial public disgrace or disrepute, (iii) failure to perform any duty as reasonably directed by the Board, which failure is not cured within ten (10) days after notice thereof is provided to Executive
by the Board, (iv) any act or omission aiding or abetting a competitor, supplier or customer of any Group Company to the material disadvantage or detriment of any Group Company, (v) breach of fiduciary duty, gross negligence or willful
misconduct with respect to any Group Company, or (vi) a Contract Breach. 
  

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 (f) For purposes of this Agreement, Executive shall be deemed to be “Disabled” if
Executive is unable to perform the essential duties, responsibilities and functions of his position with the Company for a period of 90 consecutive days or for a total of 180 days during any 12-month period as a result of any mental or physical
illness, disability or incapacity, even with reasonable accommodations for such illness, disability or incapacity provided by the Company or if providing such accommodations would be unreasonable, all as determined by the Board in its reasonable
good faith judgment. Executive shall cooperate in all respects with the Company if a question arises as to whether he has become Disabled (such cooperation to include submitting to an examination by a medical doctor or other health care specialists
selected by the Company and authorizing such medical doctor or such other health care specialist to discuss Executive’s condition with the Company). 
 (g) For purposes of this Agreement, “Contract Breach” means (i) breach by Executive of any of his obligations under Section 6, Section 7 or Section 8 hereof,
(ii) breach by Executive of any other provision of this Agreement which (A) is willful, (B) is not subject to cure, or (C) arises from Executive’s gross negligence, (iii) any other breach by Executive of this Agreement
if Executive fails to cure such breach within ten (10) days following delivery to Executive of written notice describing such breach, (iv) any provision of this Agreement or, after execution and delivery of the General Release, the General
Release shall cease to be (or not be) valid and binding on Executive, or (v) Executive shall claim in writing that one or more provisions of this Agreement or, after execution and delivery of the General Release, the General Release, shall not
be valid and binding on Executive, or Executive shall have otherwise taken any action contrary to the purpose of Section 24 below. 
 6. Confidential Information. 
 (a) Executive acknowledges that the information, observations and data (including trade
secrets) to be obtained by him while employed by the Company concerning the business or affairs of the Group (“Confidential Information”) are the property of the Group. Therefore, Executive agrees that he shall not disclose to any
person or entity or use for his own purposes any Confidential Information or any confidential or proprietary information of other persons or entities in the possession of the Group (“Third Party Information”), without the prior
written consent of the Board, unless and to the extent that the Confidential Information or Third Party Information becomes generally known to and available for use by the public other than as a result of Executive’s acts or omissions.
Executive shall deliver to the Company on the Termination Date or at any other time the Company may reasonably request, all memoranda, notes, plans, records, reports, computer files, disks and tapes, printouts and software and other documents and
data (and copies thereof) embodying or relating to Third Party Information, Confidential Information, Work Product (as defined below) or the business of any Group Company that he may then possess or have under his control. 
 (b) Executive shall be prohibited from using or disclosing any confidential information or trade secrets that Executive may have learned through any
prior employment. If 

  

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at any time during the Employment Period Executive believes he is being asked to engage in work that will, or will be likely to, jeopardize any
confidentiality or other obligations Executive may have to former employers, Executive shall immediately advise the Board so that Executive’s duties can be modified appropriately. Executive represents and warrants to the Company that Executive
took nothing with him which belonged to any former employer when Executive left his prior employment positions and that Executive has nothing that contains any information that belongs to any former employer. If at any time Executive discovers this
is incorrect, Executive shall promptly return any such materials to Executive’s former employer. The Company does not want any such materials, and Executive shall not be permitted to use or refer to any such materials in the performance of
Executive’s duties hereunder. 
 7. Intellectual Property, Inventions and Patents. Executive acknowledges that all discoveries,
concepts, ideas, inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports, patent applications, copyrightable work and mask work (whether or not including any confidential information) and all registrations
or applications related thereto, all other proprietary information and all similar or related information (whether or not patentable) which relate to any Group Company’s actual or anticipated business, research and development or existing or
future products or services and which are conceived, developed or made by Executive (whether alone or jointly with others) while employed by the Company (“Work Product”), belong to such Group Company. Executive shall promptly
disclose such Work Product to the Board and, at the Company’s expense, perform all actions reasonably requested by the Board (whether during or after the Employment Period) to establish and confirm such ownership (including assignments,
consents, powers of attorney and other instruments). Executive acknowledges that all Work Product shall be deemed to constitute “works made for hire” under the U.S. Copyright Act of 1976, as amended. 
 8. Restrictive Covenants. Because among other reasons: (i) Executive’s services are unique to the Company; (ii) Executive will have
access to Confidential Information and Work Product that are proprietary to the Company; (iii) and Executive will act as the President and Chief Executive Officer of the Company and the face of the Company to its employees and customers,
Executive agrees that, in consideration of the Company’s employment of Executive and the various benefits and payments provided in conjunction therewith, he will comply with the restrictive covenants contained herein. 
 (a) Definitions. 
 (i)
The “Time Period” for purposes of this Section 8 shall be throughout the Employment Period and for a period of twelve (12) months after any Termination Date. 
 (ii) The “Geographic Area” for purposes of this Section 8 shall be any geographic location within a fifty-mile
radius of the Company’s office in Dalton, Georgia. 
 (b) Activity Restrictions. During the Time Period and in the Geographic
Area, Executive agrees that he will not, on behalf of any entity other than the Company (whether 

  

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as an employee, consultant, agent, officer, director, shareholder, partner or member of said entity), sell, supervise others who sell, or direct the sale of,
six-foot roll carpet, modular carpet tile, broadloom carpet (whether tufted or woven), or any other type of product that any Group Company sells during the Employment Period. Executive agrees and acknowledges that the Group conducts extensive
business in the Geographic Area, and that competing with the Group in the Geographic Area during the Time Period would irreparably damage the Group. 
 (c) Non-Solicitation of Customers. During the Time Period, Executive agrees that he will not, on behalf of any entity other than the Company (whether as a consultant, employee, agent, officer, director,
shareholder, partner or member of said entity), solicit any owner of a site location, customer, supplier, licensee or other business relation of any Group Company with whom Executive had contact during the last twelve (12) months of the
Employment Period (i) for the sale or purchase of six-foot roll carpet, modular carpet tile, broadloom carpet (whether tufted or woven), or any other type of product that any Group Company sells during the Employment Period or (ii) to
cease doing business with any Group Company. 
 (d) Non-Solicitation and Non-Hire of Company’s Employees. During the Time Period,
Executive agrees that he will not, on behalf of any entity other than the Company (whether as an employee, consultant, agent, officer, director, shareholder, partner or member of said entity), hire or attempt to hire any person who was employed by
any Group Company during the last twelve (12) months of the Employment Period, or otherwise solicit or induce any employee of any Group Company to leave the employ of any Group Company. 
 (e) Non-Disparagement. During the Time Period, Executive agrees that he shall not make disparaging remarks about any Group Company or any of the
officers, directors, affiliates or investors of any of the foregoing. 
 (f) Because Executive’s services are unique, because Executive
has access to Confidential Information and Work Product, and because Executive will act as the President and Chief Executive Officer of the Company and the face of the Company to its employees and customers, the parties hereto agree that in the
event of the breach or a threatened breach by Executive of any of the provisions of this Section 8, the Group would suffer irreparable harm, and in addition and supplementary to other rights and remedies existing in its favor, the Group
shall be entitled to specific performance and/or injunctive or other equitable relief from a court of competent jurisdiction in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other security). In
addition, in the event of a breach or violation by Executive of this Section 8, the Time Period shall automatically be extended by an amount of time equal to the amount of time from the initial occurrence of the breach or violation and
the time as of which such breach or violation has been duly cured. 
 9. Additional Acknowledgments. Executive agrees that in
consideration of the Company’s employment of Executive and the various benefits and payments provided in conjunction therewith, Executive will be bound by the restrictions contained in this Agreement. Executive agrees that such restrictions
(including, but not limited, to the Time Period, Geographic Area, and activities restricted in Section 8 hereof) are reasonable and necessary in 

  

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light of, among other things, the substantial compensation granted him by the Company in this Agreement, and the fact that Executive shall serve as the
President and Chief Executive Officer of the Company, thus granting him extensive access to all of the Group’s confidential and proprietary information and making him the face of the Group to the Group’s customers. Executive generally
acknowledges that the Group has legitimate business interests in its Confidential Information and Work Product, as well as in the relationships with the Group’s customers and employees, and Executive specifically acknowledges and agrees that
the restrictions in Section 8 hereof are necessary and reasonable restrictions to protect the Group’s legitimate business interests. Executive acknowledges that he has received consideration in respect of his obligations pursuant to
the provisions of Section 6, Section 7 and Section 8 hereof, including: (i) employment with the Company and (ii) additional good and valuable consideration as set forth in this Agreement. In addition,
Executive agrees and acknowledges that the restrictions contained in Section 6, Section 7 and Section 8 hereof will not preclude Executive from earning a livelihood, nor do they unreasonably impose limitations on
Executive’s ability to earn a living, following the Employment Period. Executive agrees and acknowledges that the potential harm to the Group of the non-enforcement of Section 6, Section 7 and Section 8
hereof outweighs any potential harm to Executive of its enforcement by injunction or otherwise. Executive acknowledges that he has carefully read this Agreement, has given careful consideration to the restraints imposed upon Executive by this
Agreement and is in full accord as to their necessity for the reasonable and proper protection of confidential and proprietary information of the Group now existing or to be developed in the future. Executive also acknowledges that he has had the
opportunity to review the provisions of this Agreement with his legal counsel, believes them to be enforceable, and intends to fully comply with them. Executive expressly acknowledges and agrees that each and every restraint imposed by this
Agreement is reasonable with respect to subject matter, time period and geographical area. Executive further acknowledges that nothing contained in this Agreement or otherwise shall entitle Executive to remain in the employment of the Company or
affect the rights of the Company to terminate Executive’s employment at any time for any reason. 
 10. Executive’s
Representations. Executive hereby represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by Executive do not and shall not conflict with, breach, violate or cause a default under any
contract, agreement, instrument, order, judgment, law, regulation or decree to which Executive is a party or by which he is bound, (ii) Executive is not a party to or bound by any employment agreement, noncompete agreement or confidentiality
agreement with any other person or entity and (iii) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of Executive, enforceable in accordance with its terms. Executive
hereby acknowledges and represents that he has had the opportunity to consult with independent legal counsel regarding his rights and obligations under this Agreement and that he fully understands the terms and conditions contained herein.

 11. Survival. Sections 5 through 24, inclusive, shall survive and continue in full force in accordance with their
terms notwithstanding the expiration or termination of the Employment Period. 
  

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 12. Notices. All notices, demands or other communications to be given or delivered under or by
reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given (i) when delivered personally to the recipient, (ii) on the business day following the date on which it is sent to the recipient by
reputable overnight courier service (charges prepaid), (iii) five (5) days after mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid, (iv) upon machine-generated acknowledgment of
receipt after transmittal by facsimile if so acknowledged to have been received before 5:00 p.m. on a business day at the location of receipt and otherwise on the next following business day, or (v) on the business day following the date on
which it is sent to the recipient by electronic mail (with hard copy to follow). Such notices, demands and other communications shall be sent to the parties at the addresses indicated below: 
  

					
	 Notices to Executive:

		
		  	 Glen A. Hussmann

		  	 4714 Piper Glen Drive

		  	 Charlotte, North Carolina 28277

		  	 Electronic mail:
	  	ghussmann@carolina.rr.com
		  	Facsimile:	  	(704) 321-9456
	
	Notices to the Company:
		
		  	Collins & Aikman Floorcoverings, Inc.
		  	311 Smith Industrial Boulevard
		  	Dalton, Georgia 30721
		  	Attention:	  	Leonard F. Ferro, Chief Financial Officer
		  	Electronic mail:	  	lferro@tandus.com
		  	Facsimile:	  	(706) 259-2125
	
	With a copy to:
		
		  	Oaktree Capital Management, LLC
		  	333 South Grand Avenue, 28th Floor
		  	Los Angeles, California 90071
		  	Attention:	  	Richard J. Goldstein
		  	Electronic mail:	  	rgoldstein@oaktreecap.com
		  	Facsimile:	  	(213) 830-6394
	
	and to:
		
		  	Kirkland & Ellis LLP
		  	777 South Figueroa Street, 34th Floor
		  	Los Angeles, California 90017
		  	Attention:	  	John A. Weissenbach
		  		  	Damon R. Fisher

  

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	 Electronic mail:
	 	jweissenbach@kirkland.com
		 	dfisher@kirkland.com
	 Facsimile:
	 	(213) 680-8500

 or such other address or to the attention of such other person as the recipient party shall have specified by
prior written notice to the sending party. 
 13. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any action in any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal
or unenforceable provision had never been contained herein. 
 14. Complete Agreement. This Agreement, those documents expressly
referred to herein and other documents of even date herewith embody the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or
oral, which may have related to the subject matter hereof in any way. 
 15. No Strict Construction. The language used in this
Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party. 
 16. Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement. 
 17. Successors and Assigns. This Agreement is intended to bind and inure to the
benefit of and be enforceable by Executive, the Company and their respective heirs, successors and assigns, except that Executive may not assign his rights or delegate his duties or obligations hereunder. 
 18. Choice of Law. All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement and the
exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of Georgia, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Georgia or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Georgia. 
 19. Amendment and
Waiver. The provisions of this Agreement may be amended or waived only with the prior written consent of the Company (as approved by the Board) and Executive, and no course of conduct or course of dealing or failure or delay by any party hereto
in enforcing or exercising any of the provisions of this Agreement (including the 

  

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Company’s right to terminate the Employment Period for Cause) shall affect the validity, binding effect or enforceability of this Agreement or be deemed
to be an implied waiver of any provision of this Agreement. 
 20. Insurance. The Company may, at its discretion, apply for and
procure in its own name and for its own benefit life and/or disability insurance on Executive in any amount or amounts considered advisable. Executive agrees to cooperate in any medical or other examination, supply any information and execute and
deliver any applications or other instruments in writing as may be reasonably necessary to obtain and constitute such insurance. Executive hereby represents that he has no reason to believe that his life is not insurable at commercially reasonable
rates. 
 21. Indemnification and Reimbursement of Payments on Behalf of Executive. Each Group Company shall be entitled to deduct or
withhold from any amounts owing from such Group Company to Executive any federal, state, local or foreign withholding taxes, excise tax, or employment taxes (“Taxes”) imposed with respect to Executive’s compensation or other
payments from such Group Company or Executive’s ownership interest in such Group Company (including wages, bonuses, dividends, the receipt or exercise of equity options and/or the receipt or vesting of restricted equity). In the event any Group
Company does not make such deductions or withholdings, Executive shall indemnify such Group Company for any amounts paid with respect to any such Taxes, together with any interest, penalties and related expenses thereto. 
 22. Waiver of Jury Trial. AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING HAD
THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY. 
 23. Executive’s Cooperation. During the Employment Period and thereafter, Executive shall participate with the Company in any internal
investigation, any administrative, regulatory or judicial investigation or proceeding or any dispute with a third party as reasonably requested by the Company (including Executive being available to the Company upon reasonable notice for interviews
and factual investigations, appearing at the Company’s request to give testimony at trial, hearings, and otherwise without requiring service of a subpoena or other legal process, and, upon the Company’s request, providing to the Company
any relevant information and documents which are or may come into Executive’s possession, all at times and on schedules that are reasonably consistent with Executive’s other permitted activities and commitments). In the event the Company
requires Executive’s participation in accordance with this Section 23, the Company shall reimburse Executive solely for reasonable travel expenses (including lodging and meals), to the extent consistent with the Company’s
policies in effect from time to time with respect to travel expenses, and subject to the Company’s requirements with respect to reporting and documentation of such expenses. 
 24. Dispute Resolution. Except with respect to any dispute or claim seeking injunctive or equitable relief (by itself or in addition to damages)
under Section 6, Section 7 or 

  

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Section 8 hereof (which may be pursued in any federal or state court in the state of Georgia as specified below and with respect to which each
party shall bear the cost of its own attorneys’ fees and expenses except as otherwise required by applicable law), each party hereto agrees that the dispute resolution procedure set forth in Exhibit B hereto shall be the sole and
exclusive method for resolving any claim or dispute (“Claim”) arising out of or relating to the rights and obligations acknowledged and agreed to in this Agreement and the employment of Executive by the Company and its affiliates
(including disputes and claims regarding employment discrimination, sexual harassment, termination and discharge), whether such Claim arose or the facts on which such Claim is based occurred prior to or after the execution and delivery of this
Agreement. The parties agree that the result of any arbitration hereunder shall be final, conclusive and binding on all of the parties hereto. Nothing in this Section 24 shall prohibit a party hereto from instituting litigation to
enforce any Final Determination (as defined in Exhibit B hereto). Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of any state or federal court of competent jurisdiction located in the State of Georgia, for the
purposes of any suit, action or other proceeding to: (a) resolve a dispute or claim seeking injunctive or equitable relief (by itself or in addition to damages) under Section 6, Section 7, or Section 8
hereof; or (b) enforce any Final Determination. Each party hereto further agrees that service of any process, summons, notice or document by U.S. registered mail to such party’s respective address set forth above shall be effective service
of process for any action, suit or proceeding in the State of Georgia with respect to any matters to which it has submitted to jurisdiction in this Section 24. Each party hereto irrevocably and unconditionally consents to jurisdiction,
and waives any objection to personal jurisdiction or the laying of venue, in any state or federal court located in the State of Georgia, for any action, suit or proceeding seeking injunctive or equitable relief under Section 6,
Section 7 or Section 8 hereof (by itself or in addition to damages). Each party hereto further agrees that each other party hereto may initiate litigation in any court of competent jurisdiction to execute any judicial
judgment enforcing a Final Determination. 
 * * * * * 
  

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

  

			
	 THE COMPANY

	
	 COLLINS & AIKMAN FLOORCOVERINGS, INC.

		
	 By:
	 	 /s/ Richard J. Goldstein

	 Name:
	 	Richard J. Goldstein
	 Title:
	 	Director
	
	 EXECUTIVE

		
		 	 /s/ Glen A. Hussmann

		 	Glen A. Hussmann

 [Signature Page to Hussmann Employment Agreement] 

 Exhibit A 
 GENERAL RELEASE 
 I, Glen A. Hussmann, in consideration of and subject to the performance by
Collins & Aikman Floorcoverings, Inc. (collectively with its subsidiaries and Tandus Group, Inc., the sole owner of its common stock, the “Company”) of its obligations under the Employment Agreement, dated as of
February 2, 2007 (the “Agreement”), do hereby release and forever discharge as of the date hereof the Company and its affiliates and all present and former directors, officers, agents, representatives, employees, successors and
assigns of the Company and its affiliates and the Company’s direct or indirect owners (collectively, the “Released Parties”) to the extent provided below. 
  

	1.	I understand that any payments or benefits paid or granted to me under Section 5(b) of the Agreement represent, in part, consideration for signing this General Release
and are not salary, wages or benefits to which I was already entitled. I understand and agree that I will not receive the payments and benefits specified in Section 5(b) of the Agreement unless I execute this General Release and do not
revoke this General Release within the time period permitted hereafter or breach this General Release. I also acknowledge and represent that I have received all payments and benefits that I am entitled to receive (as of the date hereof) by virtue of
any employment by the Company. 

  

	2.	Except as provided in paragraph 4 below and except for the provisions of the Agreement which expressly survive the termination of my employment with the Company, I knowingly and
voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes of action, cross-claims,
counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present
(through the date this General Release becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the Released Parties which I, my spouse, or any of my heirs, executors, administrators or
assigns, may have, which arise out of or are connected with my employment with, or my separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of
1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including, but not limited to, the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with
Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or
their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or
arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including without limitation
attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to herein as the “Claims”). 

  

 ExA-1 

	3.	I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by paragraph 2 above. 

  

	4.	I agree that this General Release does not waive or release any rights or claims that I may have under the Age Discrimination in Employment Act of 1967 which arise after the date I
execute this General Release. I acknowledge and agree that my separation from employment with the Company in compliance with the terms of the Agreement shall not serve as the basis for any claim or action (including, but not limited to, any claim
under the Age Discrimination in Employment Act of 1967). 

  

	5.	In signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. I expressly
consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state statute that expressly limits
the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material
term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek to
recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims. I further agree that I am not aware of any pending claim of the type described in
paragraph 2 as of the execution of this General Release. 

  

	6.	I agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed at any time to be an admission by the
Company, any Released Party or myself of any improper or unlawful conduct. 

  

	7.	I agree that I will forfeit all amounts payable by the Company pursuant to the Agreement if I challenge the validity of this General Release. I also agree that if I violate this
General Release by suing the Company or the other Released Parties, I will pay all costs and expenses of defending against the suit incurred by the Released Parties, including without limitation reasonable attorneys’ fees, and return all
payments received by me pursuant to the Agreement. 

  

	8.	I agree that this General Release and the Agreement are confidential and agree not to disclose any information regarding the terms of this General Release or the Agreement, except
to my immediate family and any tax, legal or other counsel I have consulted regarding the meaning or effect hereof or as required by law, and I will instruct each of the foregoing not to disclose the same to anyone. 

  

 ExA-2 

	9.	Any non-disclosure provision in this General Release does not prohibit or restrict me (or my attorney) from responding to any inquiry about this General Release or its underlying
facts and circumstances by the Securities and Exchange Commission (SEC), the National Association of Securities Dealers, Inc. (NASD), any other self-regulatory organization or governmental entity. 

  

	10.	I agree to participate as may reasonably be necessary with the Company in any internal investigation, any administrative, regulatory, or judicial proceeding or any dispute with a
third party. I understand and agree that my participation may include, but not be limited to, making myself available to the Company upon reasonable notice for interviews and factual investigations; appearing at the Company’s request to give
testimony at trial, hearing, and otherwise without requiring service of a subpoena or other legal process; upon request of the Company, providing to the Company any relevant information and documents which are or may come into my possession all at
times and on schedules that are reasonably consistent with my other permitted activities and commitments. I understand that in the event the Company asks for my participation in accordance with this provision, I will not be entitled to any
additional compensation in connection therewith but the Company will reimburse me solely for reasonable travel expenses, (including lodging and meals), to the extent consistent with the Company’s policies in effect from time to time with
respect to travel expenses, and subject to the Company’s requirements with respect to reporting and documentation of such expenses. 

  

	11.	I agree not to disparage the Company, its past and present investors, officers, directors or employees or its affiliates and to keep all confidential and proprietary information
about the past or present business affairs of the Company and its affiliates confidential unless a prior written release from the Company is obtained. I further agree that as of the date hereof, I have returned to the Company any and all property,
tangible or intangible, relating to its business, which I possessed or had control over at any time (including, but not limited to, company-provided credit cards, building or office access cards, keys, computer equipment, manuals, files, documents,
records, software, customer data base and other data) and that I shall not retain any copies, compilations, extracts, excerpts, summaries or other notes of any such manuals, files, documents, records, software, customer data base or other data.

  

	12.	Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way affect any rights or claims arising out of any
breach by the Company or by any Released Party of the Agreement after the date hereof. 

  

	13.	Whenever possible, each provision of this General Release shall be interpreted in such manner as to be effective and valid under applicable law. If any provision of this General
Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this
General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 

  

 ExA-3 

 BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT: 
  

	(a)	I HAVE READ IT CAREFULLY; 

  

	(b)	I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED,
TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED; 

  

	(c)	I VOLUNTARILY CONSENT TO EVERYTHING IN IT; 

  

	(d)	I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

  

	(e)	I HAVE BEEN GIVEN ALL TIME PERIODS REQUIRED BY LAW TO CONSIDER THIS GENERAL RELEASE, INCLUDING THE 21-DAY PERIOD REQUIRED BY THE ADEA. I UNDERSTAND THAT I MAY EXECUTE THIS GENERAL
RELEASE LESS THAN 21 DAYS FROM ITS RECEIPT FROM THE COMPANY, BUT AGREE THAT SUCH EXECUTION WILL REPRESENT MY KNOWING WAIVER OF SUCH 21-DAY CONSIDERATION PERIOD; 

  

	(f)	I UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS
EXPIRED; 

  

	(g)	I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND 

  

	(h)	I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE
COMPANY AND BY ME. 

  

					
	 DATE:
	 	 February 2, 2007
	 	 /s/ Glen A. Hussmann

		 		 	Glen A. Hussmann

  

 ExA-4 

 Exhibit B 
 DISPUTE RESOLUTION PROCEDURE 
 1. Notice of Claim. A party asserting a Claim (the
“Claimant”) shall deliver written notice to each party against whom the Claim is asserted (collectively, the “Opposing Party”), with a copy to the persons required to receive copies of notices under the Agreement
(the “Additional Notice Parties”), specifying the nature of the Claim and requesting mediation to resolve same. The Additional Notice Parties shall be given reasonable notice of and invited and permitted to attend any such
mediation. Executive and the Board shall attempt to agree on a mediator to hear and decide the Claim. If Executive and the Board cannot agree on a mediator within ten business days, they shall promptly and jointly request that JAMS (previously known
as the Judicial Arbitration & Mediation Service) appoint a mediator to assist the parties in attempting to resolve the Claim. If a mutually acceptable resolution is not reached pursuant to mediation within 60 days of the delivery of the
notice of Claim, the Claimant or the Opposing Party may invoke the arbitration procedure provided herein by delivering to each Opposing Party and the Additional Notice Parties a Notice of Arbitration, which shall specify the Claim as to which
arbitration is sought, the nature of the Claim, the basis for the Claim, and the nature and amount of any damages or other compensation or relief sought (a “Notice of Arbitration”). Each party agrees that no punitive damages may be
sought or recovered in any arbitration, judicial proceeding or otherwise. Failure to file a Notice of Arbitration within 90 days of delivery of the notice of Claim shall constitute a waiver of any right to relief for the matters asserted in the
notice of Claim. Any Claim shall be forever barred, and no relief may be sought therefor, if written notice of such Claim is not made as provided above within one year of the date such Claim accrues. 
 2. Selection of Arbitrator. Within 20 business days after receipt of the Notice of Arbitration, Executive and the Board shall meet and attempt to
agree on an arbitrator to hear and decide the Claim. If Executive and the Board cannot agree on an arbitrator within five business days, then they shall each appoint a representative for purposes of negotiating the appropriate arbitrator within 30
days after receipt of the Notice of Arbitration. Executive’s representative shall meet with the Board’s representative within five business days of their appointment, and shall mutually agree on an arbitrator. If Executive’s
representative and the Board’s representative fail to agree to an arbitrator within ten business days of their appointment, the Parties shall promptly and jointly request that JAMS appoint an arbitrator experienced in the area of dispute who
does not have an ongoing business relationship with any of the parties to the dispute and who was not chosen as the mediator pursuant to paragraph 1 of this Dispute Resolution Procedure. If the arbitrator selected informs the parties he cannot hear
and resolve the Claim within the time-frame specified below, Executive and the Board shall request the appointment of another arbitrator by the same procedure described above. 
 3. Arbitration Procedure. The following procedures shall govern the conduct of any arbitration under this section. All procedural matters relating
to the conduct of the arbitration other than those specified below shall be discussed among counsel for the parties and the arbitrator. Subject to any agreement of the parties, the arbitrator shall determine all procedural matters not specified
herein. 
  

 ExB-1 

 (a) Within 30 days after the delivery of a Notice of Arbitration, each party shall afford the other, or
its counsel, with reasonable access to documents relating directly to the issues raised in the Notice of Arbitration. All documents produced and all copies thereof shall be maintained as strictly confidential, shall be used for no purpose other than
the arbitration hereunder, and shall be returned to the producing party upon completion of the arbitration. There shall be no other discovery except that, if a reasonable need is demonstrated to the arbitrator or agreed to by the parties, the
parties may each be allowed to take a single deposition of no longer than five hours, it being the expressed intention and agreement of each party to have the arbitration proceedings conducted and resolved as expeditiously, economically and fairly
as reasonably practicable, and with the maximum degree of confidentiality. 
 (b) All written communications regarding the proceeding sent to
the arbitrator shall be sent simultaneously to each party or its counsel, with a copy to the Additional Notice Parties. Oral communications between any of the parties or their counsel and the arbitrator shall be conducted only when all parties or
their counsel are present and participating in the conversation. 
 (c) Within 20 days after selection of the arbitrator, the Claimant shall
submit to the arbitrator a copy of the Notice of Arbitration, along with a supporting memorandum and any exhibits or other documents supporting the Claim. 
 (d) Within 20 days after receipt of the Claimant’s submission, the Opposing Party shall submit to the arbitrator a memorandum supporting its position and any exhibits or other supporting documents. 
 (e) Within 20 days after receipt of the Opposing Party’s response, the Claimant may submit to the arbitrator a reply to the Opposing Party’s
response, or notification that no reply is forthcoming. 
 (f) Within 10 days after the last submission as provided above, the arbitrator
shall notify the parties and the Additional Notice Parties of the date of the hearing on the issues raised by the Claim. Scheduling of the hearing shall be within the sole discretion of the arbitrator, but in no event more than 60 days after the
last submission by the parties, and shall take place at a place selected by the arbitrator or such other place as is mutually agreed. Both parties shall be granted substantially equal time to present evidence at the hearing. 
 (g) Within 30 days after the conclusion of the hearing, the arbitrator shall issue a written decision to be delivered to both parties and the Additional
Notice Parties (the “Final Determination”). The Final Determination shall address each issue disputed by the parties, state the arbitrator’s findings and reasons therefor, and state the nature and amount of any damages,
compensation or other relief awarded. 
  

 ExB-2 

 (h) The award rendered by the arbitrator shall be final and non-appealable, except as otherwise provided
by applicable law, and judgment may be entered upon it in accordance with applicable law in such court as has jurisdiction thereof. 
 4.
Costs of Arbitration. As part of the Final Determination, the arbitrator shall determine the allocation of the costs and expenses of the arbitration, including the arbitrator’s fee and both parties’ attorneys’ fees and
expenses, based upon the extent to which each party prevailed in the arbitration. In the event that any relief which is awarded is non-monetary, then such costs and expenses shall be allocated by the arbitrator. 
 5. Satisfaction of Award. If any party fails to pay the amount of the award, if any, assessed against it within 30 days after the delivery to such
party of the Final Determination, the unpaid amount shall bear interest from the date of such delivery at the lesser of (i) prime lending rate announced by Citibank N.A. plus three hundred basis points and (ii) the maximum rate permitted
by applicable usury laws. In addition, such party shall promptly reimburse the other party for any and all costs or expenses of any nature or kind whatsoever (including attorneys’ fees) reasonably incurred in seeking to collect such award or to
enforce any Final Determination. 
 6. Confidentiality of Proceedings. The parties hereto agree that all of the arbitration
proceedings provided for herein, including any notice of Claim, the Notice of Arbitration, the submissions of the parties, and the Final Determination issued by the arbitrator, shall be confidential and shall not be disclosed at any time to any
person other than the parties, their representatives, the arbitrator and the Additional Notice Parties; provided, however, that this provision shall not prevent the party prevailing in the arbitration from submitting the Final Determination to a
court for the purpose of enforcing the award, subject to comparable confidentiality protections if the court agrees; and further provided that the foregoing shall not prohibit disclosure to the minimum extent reasonably necessary to comply with
(i) applicable law (or requirement having the force of law), court order, judgment or decree, including disclosures which may be required pursuant to applicable securities laws, and (ii) the terms of contractual arrangements (such as
financing arrangements) to which any Group Company or any Additional Notice Party may be subject so long as such contractual arrangements were not entered into for the primary purpose of permitting disclosure which would otherwise be prohibited
hereunder. 
  

 ExB-3Share Purchase Agreement

 Exhibit 10.20 
 Dated 05 February 2007 
 Interior Projects Solutions Limited 
 (as the Purchaser) 
 Collins &
Aikman Floorcoverings Inc 
 (as the Vendor) 
  

 Share Purchase Deed 
 relating to the shares in 
 Tandus Europe Limited 
  

 

 
 99 Bishopsgate 
 London EC2M 3XF 
 +44 (0)20 7710 1000 (Tel) 
 +44 (0)20 7374 4460 (Fax) 
 www.lw.com 
 Contact: Rory Negus / John Houghton 

 CONTENTS 
  

					
	Clause	 	 	  	Page
	  1.	 	Interpretation	  	1
			
	  2.	 	Sale of shares	  	3
			
	  3.	 	Consideration	  	3
			
	  4.	 	Completion	  	3
			
	  5.	 	Stamping and share rights	  	4
			
	  6.	 	Warranties	  	5
			
	  7.	 	Post Completion Obligations	  	6
			
	  8.	 	Employees	  	7
			
	  9.	 	Confidentiality	  	7
			
	10.	 	Announcements	  	8
			
	11.	 	Provisions relating to this Agreement	  	9
			
	12.	 	Law and Jurisdiction	  	11
		
	schedule 1 : Adjustment of Consideration	  	12
		
	schedule 2 : Former employees	  	16

  

 i 

 THIS AGREEMENT is made as a deed on 05 February 2007 
 BETWEEN 
  

	(1)	INTERIOR PROJECTS SOLUTIONS LIMITED (the “PURCHASER”) a company registered in England and Wales under company number 04110449 with its registered office at
Unit B6, The Seedbed Centre Wyncolls Road, Severalls Business Park, Colchester Essex, CO4 9HT; and 

  

	(2)	COLLINS & AIKMAN FLOORCOVERINGS INC (the “VENDOR”) a company registered in the United States with its registered office at 311 Smith Industrial
Blvd, Dalton, GA 30722-1447, USA. 

  
 BACKGROUND: 
  

	(A)	The Vendor wishes to sell and the Purchaser wishes to acquire the entire issued share capital of Tandus Europe Limited on and subject to the terms of this Agreement.

 NOW IT IS AGREED as follows: 
  

	1.	Interpretation 

  

	1.1	Definitions 

 In this Agreement where the context
admits: 
 “Affiliate” means, in relation to a body corporate, any subsidiary or holding company of such body corporate, and
any subsidiary of any such holding company for the time being; 
 “Agreed Form” means, in relation to any document, a
document in the terms signed or initialled by or on behalf of the parties for identification; 
 “Audited Accounts” means the
audited consolidated balance sheet of the Company and the Subsidiaries made up as at the Balance Sheet Date and the audited consolidated profit and loss account of the Company and the Subsidiaries in respect of the period ended on the Balance Sheet
Date including, in each case, the notes thereto and the directors’ report and auditors’ report; 
 “Balance Sheet
Date” means 29 January 2006; 
 “Business Day” means a day (other than a Saturday or Sunday) on which banks are
open for ordinary banking business in London; 
 “Company” means Tandus Europe Limited a company registered in England and
Wales under company number 02186099 with its registered office at Unit 8/9 Rising Sun Estate, Blaina, Abertillery, Gwent NP13 3JW; 
 “Companies Acts” means statutes from time to time in force concerning companies including (without limitation) the Companies Act 1985, the Companies Act 1989, Part V of the Criminal Justice Act 1993 and the Companies
Consolidation (Consequential Provisions) Act 1985; 
 “Completion” means completion of the sale and purchase of the Sale
Shares in accordance with clause 4; 
 “Completion Date” means the day on which Completion takes place; 
 “Compromise Agreements” means the compromise agreements between the Company and each of David Nuttall and Ian Wolstenholme in the Agreed
Form; 
  

 1 

 “Consideration” means the consideration to be paid for the Sale Shares in accordance
with clause 3.1; 
 “Debenture” means the debenture in the Agreed Form given by the Company as security for, inter alia, the
Loan Notes; 
 “Directors” means in relation to the Company or any of the Subsidiaries, its directors; 
 “Encumbrance” means any mortgage, charge, pledge, lien, assignment, hypothecation, security interest (including any created by law), or
other security agreement or arrangement but does not include any retention of title provision; 
 “Guarantee” means any
guarantee, suretyship, indemnity, bonding liability or similar contingent liability given or undertaken by a person to secure or support the obligations of any third party but does not include any Guarantee given to National Westminster Bank plc by
the Vendor in respect of the overdraft facility of the Company; 
 “Loan Notes” means the US$4,090,200 Floating Rate Secured
Loan Notes due 2009 to 2014 in the Agreed Form to be issued by the Purchaser to the Vendor on Completion; 
 “London Stock
Exchange” means London Stock Exchange plc; 
 “Provisional Consideration” has the meaning given in schedule 1;

 “Purchaser Documents” has the meaning set out in clause 6.1(A); 
 “Purchaser’s Group” means the Purchaser and each of its Affiliates including, after Completion, the Company and each of the
Subsidiaries; 
 “Recognised Investment Exchange” has the meaning given to it by s.285 Financial Services and Markets Act
2000; 
 “Sale Shares” means the shares to be bought and sold pursuant to clause 2.1 being all the issued shares in the
capital of the Company; 
 “Subsidiaries” means each of Tandus Manufacturing Limited and Tandus BV; 
 “Supply Agreement” means the distribution agreement in the Agreed Form to be entered into between a member of the Vendor’s Group and
the Company on Completion; 
 “Vendor’s Group” means the Vendor and each of its Affiliates other than the Company and
the Subsidiaries; and 
 “Vendor’s Solicitors” means Latham & Watkins of 99 Bishopsgate, London, EC2M 3XF.

  

	1.2	Construction of certain references 

 In this
Agreement, where the context admits: 
  

	 	(A)	words and phrases the definitions of which are contained or referred to in Part XXVI Companies Act 1985 shall be construed as having the meanings thereby attributed to them;

  

	 	(B)	references to clauses and schedules are references to clauses of and schedules to this Agreement, references to paragraphs are, unless otherwise stated, references to paragraphs of
the schedule in which the reference appears, and references to this Agreement include the schedules; 

  

 2 

	 	(C)	references to the singular shall include the plural and vice versa and references to the masculine, the feminine and the neuter shall include all such genders;

  

	 	(D)	“person” includes any individual, partnership, body corporate, corporation sole or aggregate, state or agency of a state, and any unincorporated association or
organisation, in each case whether or not having separate legal personality; and 

  

	 	(E)	“company” includes any body corporate; and 

  

	 	(F)	references to “indemnify” and “indemnifying” any person against any liability or circumstance include indemnifying him and keeping him harmless from all actions,
claims, demands and proceedings from time to time made against that person and all losses, damages, payments, costs and expenses (including legal costs and expenses on a full indemnity basis) made, suffered or incurred by that person as a
consequence of or which would not have arisen but for that liability or circumstance. 

  

	1.3	Headings 

 The headings and sub-headings are
inserted for convenience only and shall not affect the construction of this Agreement. 
  

	1.4	Schedules 

 Each of the schedules shall have effect
as if set out herein. 
  

	2.	Sale of shares 

  

	2.1	Sale and purchase 

 Subject to the terms of this
Agreement, the Vendor shall sell with full title guarantee and the Purchaser shall purchase, free from all Encumbrances (whether known about or not) and together with all rights now or hereafter attaching thereto the entire issued share capital of
the Company comprising 3,436,555 ordinary shares of £1.00 each. 
  

	2.2	No sale of part only and waiver of pre-emption rights 

 Neither the Vendor nor the Purchaser shall be obliged to complete the sale and purchase of any of the Sale Shares unless the sale and purchase of all the Sale Shares is completed simultaneously. The Vendor waives all pre-emption rights in
respect of the transfer of the Sale Shares and any other rights which it may have which restrict the transfer of the Sale Shares, howsoever conferred on them. 
  

	3.	Consideration 

  

	3.1	Amount 

 The total consideration for the Sale Shares
shall be the sum of US$4,090,200 but subject to adjustment as provided in this Agreement. Such consideration shall be satisfied by the issue of the Loan Notes on Completion. 
  

	4.	Completion 

  

	4.1	Date and place of Completion 

 Completion shall take
place at the offices of the Vendor’s Solicitors immediately following the signing of this Agreement. 
  

 3 

	4.2	Vendor’s obligations 

 On Completion the Vendor
shall subject to the due performance by the Purchaser of its obligations under clause 4.3: 
  

	 	(A)	deliver to the Purchaser transfers of the Sale Shares duly executed by the registered holders thereof in favour of the Purchaser or its nominees together with the related share
certificates or an indemnity in respect of any missing certificates; 

  

	 	(B)	procure that the Directors of the Company and the Subsidiaries retire from all their offices and employments with the Company and the Subsidiaries; 

  

	 	(C)	save in respect of any Encumbrance in respect of National Westinster Bank plc, the Vendor will forthwith procure the release of the Company and the Subsidiaries from any contract,
arrangement, commitment, Guarantee or security given by the Company and the Subsidiaries in respect of any indebtedness, liabilities or obligations of any member of the Vendor’s Group and shall indemnify the Purchaser against all liabilities
arising after Completion in pending such release; 

  

	 	(D)	to the extent not already held by or to the order of the Company or any Subsidiary, deliver to the Purchaser as agent for the Company and the Subsidiaries: 

 

	 	(1)	all the statutory and other books of the Company and each of the Subsidiaries and its/their certificate(s) of incorporation, any certificates of incorporation on change of name and
common seal(s); 

  

	 	(2)	certificates in respect of all issued shares in the capital of each of the Subsidiaries; 

  

	 	(E)	procure board meetings of the Company and of each of the Subsidiaries to be held at which there shall be: 

  

	 	(1)	passed a resolution to approve, in the case of the Company, the transfers of the Sale Shares and (subject only to due stamping) to register, in the register of members, each
transferee as the holder of the shares concerned; 

  

	 	(2)	appointed as directors and/or secretary such persons as the Purchaser may nominate; 

  

	 	(3)	tendered and accepted the resignations and acknowledgements of the directors and secretary referred to in clause 4.2(B); and 

  

	 	(F)	deliver to the Purchaser, duly signed by the Vendor, the Supply Agreement. 

  

	4.3	Purchaser’s obligations 

 On Completion the
Purchaser shall: 
  

	 	(A)	deliver the Loan Notes duly signed by the Purchaser together with the related loan note certificates issuable thereunder in the name of the Vendor (or its nominee);

  

	 	(B)	deliver duly signed by the Purchaser the Debenture; and 

  

	 	(C)	deliver duly signed by the Purchaser, the Supply Agreement. 

  

	5.	Stamping and share rights 

  

	5.1	As soon as reasonably practicable, and in any event within 28 days following Completion, the Purchaser shall procure delivery of the stock transfer form in respect of the Shares to
the stamp office for stamping and following their return, procure the registration of the Purchaser as the legal holder of all of the Shares transferred to it under this Agreement. 

  

 4 

	5.2	The Vendor declares that for as long as it remains the registered holder of any of the Shares after Completion (and without prejudice to the Vendor’s right in respect of the
Consideration) it will: 

  

	 	(A)	hold such Shares and the dividends and any other moneys paid or distributed in respect of them after Completion and all rights arising out of or in connection with them in trust for
the Purchaser; and 

  

	 	(B)	deal with such Shares and all such dividends, distributions and rights as the Purchaser may direct for the period between Completion and the day on which the Purchaser or its
nominee is entered in the register of members of the Company as the holder of such Shares. 

  

	5.3	With effect from Completion the Vendor irrevocably appoints the Purchaser as its attorney for the purpose of exercising any rights, privileges or duties attaching to the Shares
including receiving notices of and attending and voting at all meetings of the members of the Company from Completion to the day on which the Purchaser or its nominee is entered in the register of members of the Company as the holder of such Shares.

  

	5.4	For the purpose of clause 5.3, the Vendor authorises: 

  

	 	(A)	the Company to send any notices in respect of its Shares to the Purchaser; and 

  

	 	(B)	the Purchaser to complete and return proxy cards, consents to short notice and any other document required to be signed by the Vendor as a member of the Company.

  

	6.	Warranties 

  

	6.1	Warranties 

 The Purchaser warrants to the Vendor as
follows: 
  

	 	(A)	the Purchaser has the requisite power and authority to enter into and perform this Agreement and any other agreement referred to herein to which it is or has agreed to become a
party (the “Purchaser Documents”); 

  

	 	(B)	this Agreement constitutes and the Purchaser Documents will, when executed, constitute binding obligations of the Purchaser in accordance with their respective terms;

  

	 	(C)	no order has been made and no resolution has been passed for the winding up of the Purchaser or for a provisional liquidator to be appointed in respect of it and no petition has
been presented and no meeting has been convened for the purposes of winding up the Purchaser; 

  

	 	(D)	no administration order has been made and no petition for such an order has been presented in respect of the Purchaser; 

  

	 	(E)	no receiver (which expression shall include an administrative receiver) has been appointed in respect of the Purchaser; 

  

	 	(F)	the Purchaser is not insolvent or unable to pay its debts within the meaning of s.123 Insolvency Act 1986 and has not stopped paying its debts as they fall due;

  

	 	(G)	no voluntary arrangement has been proposed under s.1 of the Insolvency Act 1986 in respect of the Purchaser; 

  

 5 

	 	(H)	no event analogous to any of the foregoing has occurred in or outside England with respect to the Purchaser; 

  

	 	(I)	the Purchaser has obtained all necessary shareholder and board approvals in respect of the entry into of this Agreement and the Purchaser Documents; and 

  

	 	(J)	the execution and delivery of, and the performance by the Purchaser of its obligations under, this Agreement and the Purchaser Documents will not: 

  

	 	(1)	be or result in a breach of any provision of the memorandum or articles of association of the Purchaser; 

  

	 	(2)	be or result in a breach of, or constitute a default under, any instrument to which the Purchaser is a party or by which the Purchaser is bound and which is material in the context
of the transactions contemplated by this Agreement; 

  

	 	(3)	be or result in a breach of any order, judgment or decree of any court or governmental agency to which the Purchaser is a party or by which the Purchaser is bound and which is
material in the context of the transactions contemplated by this Agreement; or 

  

	 	(4)	require the Purchaser to obtain any consent or approval of, or give any notice to or make any registration with, any governmental or other authority which has not been obtained or
made at the date hereof both on an unconditional basis and on a basis which cannot be revoked (save pursuant to any legal or regulatory entitlement to revoke the same other than by reason of any misrepresentation or misstatement).

  

	6.2	Undertaking by Purchaser 

 The Purchaser agrees and
undertakes that (in the absence of fraud or dishonesty) it has no rights against and shall not make any claim against any member of the Vendor’s Group (other than the Vendor) or any present or former employee, director, agent or officer of any
member of the Vendor’s Group in connection with this Agreement or its subject matter. The rights of the said persons are intended to be enforceable under the Contracts (Rights of Third Parties) Act 1999 but subject to clauses 11.8 and 12 and
the parties to this Agreement may rescind or vary this Agreement without the consent of any of such persons. 
  

	7.	Post Completion Obligations 

  

	7.1	Changes of Name 

 The Purchaser shall procure that
forthwith after Completion the Company and each of the Subsidiaries shall change their respective corporate names to names that do not include the name “Tandus” or any name intended or likely to be confused or associated with it, and the
Purchaser shall supply a copy of the Certificate of Incorporation on Change of Name (or equivalent official confirmation in the case of any subsidiary incorporated outside the United Kingdom) to the Vendor when each such change is effected.

  

	7.2	Books and Records 

 The Purchaser shall procure
that: 
  

	 	(A)	the Company and the Subsidiaries shall preserve until the sixth anniversary of Completion all books, records and documents of the Company and the Subsidiaries which are at
Completion in the possession under the control of each of them or insofar as the same record matters occurring on or before Completion; and 

  

 6 

	 	(B)	until the sixth anniversary of Completion, the Vendor and its agents, accountants, solicitors and other professional advisers shall be allowed the right to inspect and take copies
of the books, records and documents referred to in clause 7.2(A) (but only in relation to matters recorded therein which occurred on or before Completion) at all reasonable times upon the Vendor giving reasonable written notice of such requirement
to the Company or the relevant Subsidiary. 

  

	7.3	Guarantees etc. 

 The Purchaser shall use its best
endeavours to secure on or as soon as reasonably practicable following Completion the release of the Vendor and any other member of the Vendor’s Group from all the guarantees, indemnities and other contingent liabilities given in respect of or
otherwise relating to any obligations or liabilities of any of the Company and the Subsidiaries (other than in respect of goods manufactured or sold which were, at the time they were manufactured or sold, were faulty or defective or did not comply
with warranties or representations expressly made or implied by or on behalf of the Company or the Subsidiaries) (a “Vendor’s Guarantee”) (offering its own covenant and appropriate security in substitution if requested by the
Vendor). The Purchaser shall in the meantime with effect from Completion indemnify the Vendor and every other member of the Vendor’s Group against any liability incurred in relation thereto and pay to the Vendor (on behalf of itself and every
other member of the Vendor’s Group) an amount equal to every such liability so incurred within 40 days of written notification from the Vendor or any other member of the Vendor’s Group that such a liability has arisen, such payment to be
made into a bank account specified by the Vendor. Until such time as all the Vendor’s Guarantees have ceased to have any effect, the Purchaser shall not sell, transfer or otherwise dispose of a controlling shareholding in the Company or the
Subsidiary in respect of the obligations of which any such Vendor’s Guarantee was given (the “relevant company”) without (i) each such Vendor’s Guarantee being released or (ii) the consent in writing of the
Vendor, not to be unreasonably withheld, and if every such Vendor’s Guarantee is not so released on or before such sale, transfer or other disposal being effected the Purchaser shall procure (without prejudice to the rights of the Vendor as to
the giving or withholding of its consent) that the person acquiring such controlling shareholding shall enter into a direct undertaking with the Vendor in the terms set out in this clause 7.3 in relation to each such Vendors’ Guarantee and any
sale, transfer or other disposal of a controlling interest in the relevant company by such person. Save as to any payment in respect of monies owed to National Westminster Bank plc, any payment by the Purchaser pursuant to this clause 7.3 shall be
deemed a reduction in the Consideration and shall be effected by a reduction in the principal outstanding under the Loan Notes in accordance with paragraph 5.2 of schedule 1. 
  

	8.	Employees 

  

	8.1	Termination costs under Compromise Agreements 

 The
Vendor shall indemnify the Purchaser against any sum due or action, award, claim or other legal recourse, debt, expense, fine, liability or other costs incurred by the Company or the Purchaser as a result of the termination of employment of those
former employees of the Company listed in schedule 2. Any payment made by the Purchaser under this clause, shall be deemed a reduction in the Consideration and shall be effected by a reduction in the principal outstanding under the Loan Notes in
accordance with paragraph 5.2 of schedule 1. 
  

	9.	Confidentiality 

  

	9.1	Confidentiality 

 Subject to clause 9.2 and to
clause 10, each party: 
  

	 	(A)	shall treat as strictly confidential the provisions of this Agreement and the process of their negotiation and all information about the other party obtained or received by it as a
result of negotiating, entering into or performing its obligations under this Agreement (“Confidential Information”); and 

  

 7 

	 	(B)	shall not, except with the prior written consent of the other party (which shall not be unreasonably withheld or delayed), make use of (save for the purposes of performing its
obligations under this Agreement) or disclose to any person any Confidential Information. 

  

	9.2	Permitted disclosure or use 

 Clause 9.1 shall not
apply if and to the extent that the party using or disclosing Confidential Information can demonstrate that: 
  

	 	(A)	such disclosure is required by law or by any supervisory, regulatory or governmental body having jurisdiction over it (including but not limited to the Financial Services Authority,
the London Stock Exchange, the Panel on Take-overs and Mergers, the Serious Fraud Office, the US Securities and Exchange Commission or the New York Stock Exchange) and whether or not the requirement has the force of law; or 

 

	 	(B)	such disclosure is to its professional advisers in relation to the negotiation entry into or performance of this Agreement or any matter arising out of the same;

  

	 	(C)	in the case of disclosure or use, the Confidential Information concerned was lawfully in its possession (as evidenced by written records) prior to its being obtained or received as
described in clause 9.1(A); or 

  

	 	(D)	in the case of disclosure or use, the Confidential Information concerned has come into the public domain other than through its fault or the fault of any person to whom such
Confidential Information has been disclosed in accordance with clause 9.1(B). 

  

	9.3	Continuance of restrictions 

 The restrictions
contained in this clause 9 shall survive Completion and shall continue without limit of time. 
  

	10.	Announcements 

  

	10.1	Restrictions 

 Subject to clauses 10.2 and 10.4, and
whether or not any restriction contained in clause 9 applies, no party to this Agreement shall make any announcement, (including, without limitation any communication to the public, to any customers or suppliers of the Company, or to all or any of
the employees of the Company) concerning the provisions or subject matter of this Agreement or containing any information about the other party without the prior written approval of the other (which shall not be unreasonably withheld or delayed).

  

	10.2	Permitted announcements 

 Clause 10.1 shall not
apply if and to the extent that such announcement is required by law or by any supervisory, regulatory or governmental body having jurisdiction over it (including but not limited to the Financial Services Authority, the London Stock Exchange, The
Panel on Take-overs and Mergers, the Serious Fraud Office, the US Securities and Exchange Commission or the New York Stock Exchange ) and whether or not the requirement has the force of law and provided that any such announcement shall be made only
after consultation with the other party. 
  

 8 

	10.3	Continuance of restrictions 

 The restrictions
contained in this clause 10 shall survive Completion and shall continue without limit of time. 
  

	10.4	Announcements to customers and suppliers 

 The
Vendor and the Purchaser shall as soon as practicable after Completion, and in any event within 10 Business Days of Completion, procure that a joint announcement of the sale and purchase of the Sale Shares is made to the customers and suppliers of
the Company and each Subsidiary in the Agreed Form. 
  

	11.	Provisions relating to this Agreement 

  

	11.1	Successors and assigns 

 This Agreement shall be
binding upon and enure for the benefit of the successors of the parties but shall not be assignable. Any purported assignment shall be void. 
  

	11.2	Whole agreement and variations 

  

	 	(A)	This Agreement, together with any documents referred to in it, constitutes the whole agreement between the parties relating to its subject matter and supersedes and extinguishes any
prior drafts, agreements, and undertakings, whether in writing or oral, relating to such subject matter. 

  

	 	(B)	No variation of this Agreement shall be effective unless made in writing and signed by each of the parties. 

  

	11.3	Rights etc cumulative and other matters 

  

	 	(A)	The rights, powers, privileges and remedies provided in this Agreement are cumulative and are not exclusive of any rights, powers, privileges or remedies provided by law or
otherwise. 

  

	 	(B)	No failure to exercise nor any delay in exercising any right, power, privilege or remedy under this Agreement shall in any way impair or affect the exercise thereof or operate as a
waiver thereof in whole or in part. 

  

	 	(C)	No single or partial exercise of any right, power, privilege or remedy under this Agreement shall prevent any further or other exercise thereof or the exercise of any other right,
power, privilege or remedy. 

  

	11.4	Invalidity 

 If any provision of this Agreement
shall be held to be illegal, void, invalid or unenforceable under the laws of any jurisdiction, the legality, validity and enforceability of the remainder of this Agreement in that jurisdiction shall not be affected, and the legality, validity and
enforceability of the whole of this Agreement in any other jurisdiction shall not be affected. 
  

	11.5	Counterparts 

 This Agreement may be executed in any
number of counterparts, which shall together constitute one Agreement. Any party may enter into this Agreement by signing any such counterpart. 
  

	11.6	Costs 

 Save as otherwise expressly provided herein,
each party shall bear its own costs arising out of or in connection with the preparation, negotiation and implementation of this Agreement. 
  

 9 

	11.7	Further assurance 

 After Completion the parties
shall execute such documents and take such steps as either party may reasonably require: 
  

	 	(A)	to vest the full title to the Shares in the Purchaser; and 

  

	 	(B)	to give the parties the full benefit of this Agreement. 

  

	11.8	Notices 

  

	 	(A)	Any notice or other communication required to be given under this Agreement or in connection with the matters contemplated by it shall, except where otherwise specifically provided,
be in writing in the English language and shall be addressed as provided in clause 11.8(B) and may be: 

  

	 	(1)	personally delivered, in which case it shall be deemed to have been given upon delivery at the relevant address; or 

  

	 	(2)	if within the United Kingdom, sent by first class pre-paid post, in which case it shall be deemed to have been given two Business Days after the date of posting; or

  

	 	(3)	if from or to any place outside the United Kingdom, sent by pre-paid priority airmail, in which case it shall be deemed to have been given seven Business Days after the date of
posting; or 

  

	 	(4)	sent by fax, in which case it shall be deemed to have been given when despatched, subject to confirmation of uninterrupted transmission by a transmission report provided that any
notice despatched by fax after 17:00 hours (at the place where such fax is to be received) on any day shall be deemed to have been received at 09:00 on the next Business Day. 

  

	 	(B)	The addresses and other details of the parties referred to in clause 11.8(A) are, subject to clause 11.8(C): 

  

			
	 Name:
	  	Collins & Aikman Floorcoverings Inc
		
	 For the attention of:
	  	Len Ferro
		
	 Address:
	  	311 Smith Industrial Blvd, Dalton, GA 30722-1447, USA
		
	 Fax number:
	  	+1 706 259 2125
		
	 Name: 
	  	Interior Projects Solutions Limited
		
	 For the attention of:
	  	Eric Roelandt
		
	 Address:
	  	42 Rayne Road, Braintree, Essex, CM7 2QP
		
	 Fax number:
	  	+44 (0)1376 552491

  

	 	(C)	Any party to this Agreement may notify the other parties of any change to its address or other details specified in clause 11.8(B), provided that such notification shall only be
effective on the date specified in such notice or five Business Days after the notice is given, whichever is later. 

  

 10 

	12.	Law and Jurisdiction 

  

	12.1	English Law 

 This Agreement shall be governed by,
and construed in accordance with, English law. 
  

	12.2	Jurisdiction 

 In relation to any legal action or
proceedings to enforce this Agreement or arising out of or in connection with this Agreement (“Proceedings”) each of the parties submits to the non-exclusive jurisdiction of the English courts and waives any objection to Proceedings
in such courts on the grounds of venue or on the grounds that the Proceedings have been brought in an inappropriate forum. 
  

	12.3	Contracts (Rights of Third Parties) Act 1999 

 Except pursuant to clause 6.2, no person who is not a party to this Agreement other than any other member of the Vendor’s Group shall have any right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
Agreement. 
 AS WITNESS the hands of the duly authorised representatives of the parties on the date first before written have executed this
Agreement as a Deed. 
  

 11 

 SCHEDULE 1: ADJUSTMENT OF CONSIDERATION 
  

	1.	Interpretation 

 In this schedule, where the
context admits: 
 “2006 EBIT” means the earnings before interest and taxation of the Company and the Subsidiaries for the
period from the Balance Sheet Date to the Completion Date, as shown by the Completion Accounts; 
 “Completion Accounts”
means the accounts prepared in accordance with paragraph 2 and agreed or determined in accordance with paragraph 4 ; 
 “FRS”
means a Financial Reporting Standard published by the Accounting Standards Board in force at the date of this Agreement; 
 “Net
Tangible Assets” means the aggregate value of all fixed and current assets minus the aggregate value of all liabilities and provisions (in accordance with paragraph 89 of Schedule 4 of the Companies Act 1985) of the Company and the
Subsidiaries as shown by the Completion Accounts; 
 “Provisional Consideration” means the consideration for the Sale Shares
of US$4,090,200 stated in clause 3.1; 
 “Purchaser’s Accountants” means such firm of accountants as the Purchaser may
nominate from time to time; and 
 “Vendor’s Accountants” means such firm of accountants as the Vendor may nominate from
time to time. 
  

	2.	Completion Accounts 

  

	2.1	Preparation 

 The Purchaser shall as soon as
practicable, and in any event within 60 Business Days after Completion, procure that accounts for the Company and the Subsidiaries shall be prepared in accordance with this schedule and the parties shall use all reasonable endeavours to secure
compliance with this schedule by their respective accountants. The Purchaser shall promptly supply all such information and provide access to all such records and personnel as the Vendor and the Vendor’s Accountants and any independent firm of
accountants appointed under paragraph 4.3 shall reasonably require for the purposes of preparing, reviewing and/or agreeing the Completion Accounts. 
  

	2.2	Description 

 The Completion Accounts shall consist
of a consolidated balance sheet of the Company and the Subsidiaries as at the close of business on the Completion Date and a consolidated profit and loss account of the Company and the Subsidiaries in respect of the period from the day following the
Balance Sheet Date to the Completion Date (both dates inclusive). 
  

	2.3	General requirements 

 Subject to the specific
requirements of paragraph 2.4 which shall take priority over the general requirements set out below, the Completion Accounts shall: 
  

	 	(A)	apply and adopt the same policies, bases, methods, practices and procedures of accounting as were applied or adopted for the purposes of the December 2006 management accounts;

  

 12 

	 	(B)	be prepared as if the Completion Date was the end of an accounting reference period. 

  

	2.4	Specific requirements 

 In preparing the Completion
Accounts: 
  

	 	(A)	stock shall be determined in accordance with paragraph 3 and valued at the lower of cost and net realisable value; 

  

	 	(B)	no provision shall be made for any liability arising as a result of the entry into this Agreement or any change of control of the Company occurring on or after the date of this
Agreement; 

  

	 	(C)	no provision shall be made in respect of the cost of making good dilapidations and/or wants of repair on or to any premises occupied by the Company or the Subsidiaries;

  

	 	(D)	no provision shall be made for any deferred tax liability of the Company or any Subsidiary; 

  

	 	(E)	no provision shall be made in respect of audit fees; 

  

	 	(F)	no account shall be taken of any change in the value of any asset or liability arising (directly or indirectly) as a result of the transaction contemplated by this Agreement or any
other agreement entered into in connection with the sale of the Sale Shares; 

  

	 	(G)	no general provisions in respect of potential or unquantified tax liabilities shall be made; 

  

	 	(H)	no provision shall be made in respect of loyalty bonuses or long-service awards which any Company or Subsidiary is contractually obliged to pay to any Employee;

  

	 	(I)	the release of any amounts owing to creditors shall be treated as income to the amount of the release in the profit and loss statement; and 

  

	 	(J)	no information relating to the state of affairs of the Company and the Subsidiaries as at the Completion Date which comes to the knowledge of any of them at any time and is obtained
as the result of an event occurring after the Completion Date shall be reflected in the Completion Accounts to the extent that such event is attributable to any change in the commercial policy or the nature or manner of operation of any business of
the Company or any of the Subsidiaries occurring after the Completion Date. 

  

	3.	Stock valuation 

 For the purposes of the
preparation of the Completion Accounts, the value of stock shall be ascertained in accordance with the provisions of this paragraph 3: 
  

	 	(A)	the Vendor and the Purchaser shall cause a stocktaking to be made on the Completion Date of all the stock then belonging to the Company and the Subsidiaries;

  

	 	(B)	unless otherwise agreed by the parties such stocktaking shall consist of a physical check of the amount, quality and condition of all such stock situated on the Premises at the
Completion Date and an inspection of the books and records and contractual documentation (of the Company and the Subsidiaries) for all such stock not so situated together with confirmation from the person or persons having physical possession of
such stock of the extent of any interest in or Encumbrance claimed over such stock (if any); and 

  

	 	(C)	when such stocktaking has been completed the stock shall be valued by the Purchaser in accordance with paragraph 2.4(A) and included in the Completion Accounts.

  

 13 

	4.	Procedure  

  

	4.1	Submission of draft 

  

	 	(A)	As soon as the draft Completion Accounts shall have been prepared, the Purchaser shall send a draft copy to the Vendor and shall procure that the Vendor is permitted access to such
working papers used in connection with the preparation of the same as the Vendor considers necessary or appropriate to understand and agree the Completion Accounts and shall in addition, at the same time, send to the Vendor its calculation of the
Net Tangible Assets and 2006 EBIT. 

  

	 	(B)	Unless the Vendor shall within 30 Business Days after receipt of the draft Completion Accounts and calculation as provided in paragraph 4.1(A) serve a notice in writing on the
Purchaser that it objects to the draft Completion Accounts (identifying the reason for any objection and the amount(s) or item(s) in the draft Completion Accounts and/or calculation which is/are in dispute) (such notification being, for the purposes
of this paragraph 4, an “Objection Notice”) the Vendor shall be deemed to have irrevocably agreed to the Completion Accounts in the form of the draft and the Purchaser’s calculation of the Net Tangible Assets for all purposes
of this Agreement. 

  

	 	(C)	If the Purchaser shall not send the Completion Accounts to the Vendor within the period specified in paragraph 2.1, the Completion Accounts shall no longer be required, and
notwithstanding any other provision of this schedule, no adjustment to the Consideration shall be made, other than pursuant to clause 8.1. 

  

	4.2	Agreement of draft 

 If, within the period referred
to in paragraph 4.1(B), the Vendor shall serve upon the Purchaser an Objection Notice then the Purchaser and the Vendor shall use their reasonable endeavours to reach agreement upon adjustments to the draft Completion Accounts and the value of the
Net Tangible Assets. Neither the Vendor nor the Purchaser shall be entitled to propose any adjustments to the draft Completion Accounts except (i) in the case of the Vendor an adjustment referred to in its Objection Notice and (ii) in the
case of either of them, an adjustment by way of a counter-proposal to an adjustment proposed by the other of them, being in each case a revision of an adjustment referred to in the Objection Notice. 
  

	4.3	Independent accountant 

 In the event that the
Vendor and the Purchaser fail to reach agreement within 20 Business Days following service of the Objection Notice, either the Vendor or the Purchaser shall be entitled to refer the matter or matters in dispute to an independent firm of chartered
accountants (the “Firm”) agreed upon between them or (failing agreement) to be selected (at the instance of either party) by the President for the time being of the Institute of Chartered Accountants in England and Wales. The Firm
shall act as experts not as arbitrators and shall determine the matter or matters in dispute (which may include any dispute concerning the interpretation of any provision of this Agreement affecting the Completion Accounts or their jurisdiction to
determine the dispute or the content or interpretation of their terms of reference) and their decision shall be final and binding. The Firm may (so far as is reasonable) instruct valuers, solicitors and other professional advisers to the extent they
consider necessary to reach their determination. The fees and expenses of the Firm (including the fees of any professional advisers appointed by them as aforesaid) shall be borne by the Vendor and the Purchaser in such proportions as the said
accountants shall direct and any professional fees incurred by the Vendor or the Purchaser in relation to the dispute shall be borne by the party incurring them. 
  

 14 

	4.4	Accounts final and binding 

 If within the period
referred to in paragraph 4.1(B) the Vendor shall not have served an Objection Notice on the Purchaser, or if such notice is served and the Vendor and the Purchaser shall subsequently agree the draft Completion Accounts or the matters in dispute are
referred to the Firm under paragraph 4.3, the draft Completion Accounts, as adjusted (where applicable) so as to be in accordance with the agreement of the Vendor and the Purchaser or the determination of the Firm, shall be the Completion Accounts
for the purposes of this Agreement and shall be final and binding on the parties. 
  

	4.5	Information and explanations 

 The Purchaser and the
Purchaser’s Accountants shall provide such information and explanations relating to the draft Completion Accounts and their preparation as the Vendor’s Accountants, or the Firm shall reasonably require. 
  

	5.	Adjustment of Consideration  

  

	5.1	Increase or reduction 

 When the Completion Accounts
have become final and binding, the Provisional Consideration shall forthwith: 
  

	 	(A)	be reduced by the amount (if any) by which the Net Tangible Assets of the Company and the Subsidiaries as at the date of Completion as shown by the Completion Accounts are less than
£2,076,000; and 

  

	 	(B)	be reduced by the amount (if any) by which the 2006 EBIT of the Company and the Subsidiaries, for the period from the Balance Sheet Date to the date of Completion, as shown by the
Completion Accounts, is less than £6,397. 

  

	5.2	Payment 

 Any reduction in the Provisional
Consideration shall be effected by a reduction in the principal outstanding under the Loan Notes, and the Vendor shall deliver such of the certificates issued un the Loan Notes, and which are the latest in time due for payment back to the Purchaser
for cancellation to satisfy on a £ for £ basis any reduction in the Consideration made pursuant to paragraph 5.2 above. The Purchaser shall issue any balancing certificate to the Vendor if the amount of Loan Notes tendered by the
Purchaser exceeds the amount of any Consideration reduction made pursuant to paragraph 5.2 above, which shall be the repayable as the final instalment under the Loan Notes. In order to calculate the reduction in the amount outstanding under the Loan
Notes in US$, the exchange rate as shown in the Financial Times on the first Business Day following the day on which Completion Accounts become final and binding will be used. For the avoidance of doubt, no interest will be payable in respect any
certificates delivered by the Vendor to the Purchaser pursuant to this paragraph 5.2. 
  

 15 

 SCHEDULE 2: FORMER EMPLOYEES 
 Thomas Price 
 David Daniels 
 Alison Thomas 
 John Wilson 
 Wyndham Lewis

 Sean Goode 
 Ian Wolstenholme 
 David Nuttall 
 Kath Samuel 
 Han Nooijen 
  

 16 

					
	 Executed as a deed by
	 	)                                	 	 /s/ Eric Roelandt

	 Interior Projects
	 	)                                	 	Director
	 Solutions Limited acting by
	 	)                                	 	
	 2 directors or a director and
	 	)                                	 	
	 secretary
	 	)                                	 	 /s/ Julie Chapman

		 	)                                	 	Director/Secretary
			
	 Executed as a deed by
	 	)                                	 	
	 Collins & Aikman
	 	)                                	 	 /s/ Leonard F. Ferro

	 Floorcoverings Inc
	 	)                                	 	Duly authorised signatory

  

 17

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