HOUSE OF CARPETS INC. 401(K) PLAN

Profit-sharing plan.

This plan or any part of it is intended to meet the conditions of 29 CFR 2550.404c-1 (shifting investment responsibility to participants).

Participants have the opportunity to direct the investment of all of the assets allocated to their individual accounts regardless of whether 29 CFR 2550.404c-1 is intended to be met.

Cash or deferred arrangement described in Code section 401(k) that is part of a qualified defined contribution plan under which employees may elect to defer part of their compensation or receive these amounts in cash.

Participant-directed brokerage accounts provided as an investment option under the plan.

A master prototype or volume submitter plan that is the subject of a favorable opinion or advisory letter from the IRS.

Plan sponsor(s) is (are) a member(s) of a controlled group (Code sections 414(b) (c) or (m)).