MOHAWK CARPET CORPORATION

DENTAL/VISION PLAN

Summary Plan Description

1-03
INTRODUCTION

The Mohawk Carpet Dental/Vision Plan, effective January 1, 2004, is designed to provide you
dental and vision benefits you pay for with tax-free dollars.

This booklet provides the Summary Plan Description (SPD) of the Mohawk Carpet Dental/Vision
Plan, referred to in this booklet as the "Plan". It is intended to explain only the major provisions of
the Plan as of January 1, 2004. If there ever should be a conflict between this booklet and the
contracts and documents which control the Plan, the Plan contracts and documents will govern in
all cases.

The benefits described in this booklet are for eligible employees of Mohawk Carpet Corporation
(the Company). Each year, these employees may choose coverage between the Diamond Plan,
Gold Plan or the Silver Plan levels of benefit under the Plan.

Eligibility for, or participation in, the Plan does not constitute a guarantee of employment, nor does
it interfere with Mohawk's right to terminate employment.

The Company currently intends to continue the Mohawk Carpet Dental/Vision Plan as described in
this booklet, but reserves the right, in its discretion, to amend, reduce or terminate the Plan and
coverage at any time, with or without notice to participants.

The Company will update this booklet periodically to describe changes in the Plan, but there may
be a delay between the effective date of a Plan change and the date you receive a description of
the change. You should contact your Human Resources Department if you have questions about
coverage before you incur expenses.

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DENTAL/VISION BENEFITS AT A GLANCE

The chart below summarizes the Mohawk Carpet Dental/Vision Plan, based on the option you
elect. More details are provided throughout this booklet. You are encouraged to read this
booklet carefully and, if you are married, have your spouse read it, too.

Diamond Plan Gold Plan Silver Plan

100% of first $100 of covered 100% of first $100 of covered

100% of preventive services expenses expenses

75% of first $300 of all other 75% of next $300 of covered 0% of next $50 of covered
covered expenses (including expenses expenses
vision exams) (This is the $50 deductible you
pay)

70% of next $2,536 of covered 50% of next $2,350 of covered 70% of next $200 of covered
expenses expenses expenses

Up to a total benefit of $2,000 Up to a total benefit of $1,500

each calendar year including
benefits for vision exams. A
separate benefit of up to $300
will apply for purchases of
lenses and frames.
each calendar year including
benefits for vision exams. A
separate benefit of up to $200
will apply to purchases of
lenses and frames.
50% of next $720 of expenses
Up to a total benefit of $600
each calendar year including
benefits for vision exams. A
separate benefit of up to $100
will apply for purchases of
lenses and frames.

Benefits are based on a calendar year and apply separately for each covered person.

NOTE: IF YOU DECLINE COVERAGE WHEN YOU ARE FIRST ELIGIBLE TO ENROLL AND
THEN ELECT COVERAGE LATER ( OR CANCEL COVERAGE AND RE-ENROLL), YOU WILL
BE CONSIDERED A LATE APPLICANT. LATE APPLICANTS RECEIVE REDUCED BENEFITS
FOR THE FIRST CALENDAR YEAR OF COVERAGE. THE MAXIMUM BENEFIT WILL BE
REDUCED TO $250 FOR THE SILVER PLAN, $400 FOR THE GOLD PLAN, AND $600 FOR
THE DIAMOND PLAN (EXCLUDING LENSES AND FRAMES).

ENROLLMENT IN THE DENTAL/VISION PLAN IS SUBJECT TO A TWO YEAR ELECTION

LOCK – YOU MAY NOT CHANGE YOUR PLAN ELECTION DURING THE TWO YEAR
PERIOD, BUT YOU WILL BE ALLOWED TO DROP COVERAGE AT ANNUAL ENROLLMENT
OR DUE TO A CHANGE IN STATUS.

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TABLE OF CONTENTS
Page
SECTION 1. ELIGIBILITY 1
Employees 1
Dependents 1
Incapacitated Children 2
Newborn Children 2
Enrollment 2

SECTION 2. WHEN COVERAGE BEGINS 3

Annual Enrollment Period 3
Enrollment Changes During The Year 4
Dependent Coverage 4

SECTION 3. COST 5

SECTION 4. HOW THE PLAN WORKS 6

How Much The Plan Pays 6
Silver Plan 6
Gold Plan 6
Diamond Plan 6
Benefit Maximums 7
Silver Plan 7
Gold Plan 7
Diamond Plan 7
Covered Expenses 7
Expenses Not Covered By The Plan 8
Coordination With Other Plans 9

SECTION 5. HOW TO FILE A CLAIM 10

Initial Review Of Your Claim 11
How To Appeal Your Claim 12
Notice Of The Appeal Decision 13

SECTION 6. WHEN COVERAGE ENDS 14

Termination Of Coverage 14
If You Become Disabled 15
If You Are Laid Off 15
Personal Leaves Of Absence 15
When You Die 16
COBRA Coverage 16

SECTION 7. HIPAA PRIVACY 21

SECTION 8. OTHER IMPORTANT INFORMATION 22

Funding 22
Name And Type Of Plan 22
Plan Administrator 22
Plan Administration 22
Expenses For Which Others Are Liable 23
Legal Service 23
Plan Records 23
Plan Identification Numbers 23
Plan Continuance And Amendment Process 23
Plan Documents 24
Your Rights As A Plan Participant 24

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SECTION 1. ELIGIBILITY

Employees You are an eligible employee for the benefits described in this booklet if
you are employed by the Company and you are a:

• full-time employee, or
• part-time employee regularly scheduled to work at least 20 hours a
week.

Dependents Your eligible dependents may also be covered. Eligible dependents are:

• your spouse if legally married and not legally separated;

• each unmarried child under age 19 (under age 25 if a full-time
student) who is dependent upon you for support and either lives with
you in a regular parent-child relationship or for whom you have a
legal responsibility to pay medical expenses.

To be a full-time student, your child must be enrolled for 12 credit hours in

a state accredited institution or anticipate beginning or resuming full-time
studies at the start of the next term according to that school.

Adopted children meeting the age requirement of an eligible dependent

may be covered upon “placement”.

A child who is eligible for coverage as an employee under any other

health care plan, is not eligible for coverage as a dependent under this
Plan.

Once a dependent ceases to be eligible as defined above, it is your

responsibility to notify the Company immediately.

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Incapacitated Once an incapacitated child's coverage is in effect, it may continue
Children past the age limitations noted above if your request is made within 31
days before your child's coverage would otherwise end.To continue
coverage, the child must be mentally or physically incapacitated and the
Company must approve the continuation of coverage.

Newborn Late applicant penalties will not apply to the following:

Children
iDependent child added within 31 days from the date of birth, or
iAny dependent child added during Open Enrollment up to the Open
rd
Enrollment following the child’s 3 birthday.

Enrollment When you enroll, you need to indicate:

• which option you are electing — the Silver Plan, the Gold Plan, or the
Diamond Plan, and
• what level of coverage you are electing -- employee only; employee
and one dependent (spouse or one child); or employee and family
(spouse and children).

Enrollment forms are available from your Human Resources Department.

2
SECTION 2. WHEN COVERAGE BEGINS

Your coverage will begin once you have been an eligible employee (as
explained on page 1) and you have:

• 90 days of employment as an eligible employee,

provided your Human Resources Department has received your

completed enrollment form.

However, if you do not enroll within 31 days of the date that your
coverage may first begin, you must wait to enroll until an annual
enrollment period or you have a change in your family status, as
explained on the next page.

Annual Toward the end of each calendar year, there will be an annual
Enrollment enrollment period. During the annual enrollment period, you may change
Period your previous enrollment decisions. For example, if you did not enroll
when you first became an eligible employee, you may enroll at this time.
Or, if you enrolled for coverage for yourself only but you want to add your
dependents, you may do so during an annual enrollment period. The late
applicant provision will apply.

Annual Enrollment changes also include dropping dependent coverage

and changing from one option to the other. You cannot change your plan
design option during the calendar year, or within a 2 year period of your
initial election.

Enrollment decisions made during an annual enrollment period become

effective on the following January 1.

Once your coverage begins, you may not change your coverage
decisions until the next annual enrollment period unless you have a
change in family status as explained below.

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Enrollment During the year, you may change your enrollment decisions within
Changes 31 days of a change in your family status.
During The A change in family status is:
Year
• the birth, adoption or guardianship of a child;
• marriage, divorce, or legal separation;
• when a dependent no longer satisfies the Plan's definition of a
dependent;
• death of a spouse or a dependent;
• your spouse's termination or commencement of employment; or
• changes of employment status for you or your spouse from full-time
to part-time or part-time to full-time;
• the receipt of a qualified medical child support order;
• a special “enrollment period,” as required under the Internal
Revenue Code.

Enrollment changes will be effective on the date your family status

changed.

Dependent Dependent coverage will begin on the same date as your coverage,
Coverage provided you have enrolled your dependents.

Transfers After July 1, 1995, employees who transfer to Mohawk Carpet

of Employment Corporation from a Mohawk subsidiary or affiliate will receive credit for
employment towards satisfaction of the waiting period for eligibility.

4
SECTION 3. COST

How much you pay depends on whether you elect the Silver Plan, the
Gold Plan, or the Diamond Plan and whether you cover:

• yourself only;
• yourself and one dependent; or
• yourself and two or more dependents.

Your benefits administrator will tell you the cost of your coverage when
you enroll. Your cost will be paid on a before-tax basis. This means your
cost of the coverage will be deducted from your gross pay before federal
and, in most cases, state and city taxes are withheld. Your income taxes
and Social Security taxes will be determined on the remaining pay.
Therefore, you will be lowering your taxes by paying for coverage this
way.

If your contributions for coverage change, your benefits administrator will

notify you, in advance.

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SECTION 4. HOW THE PLAN WORKS

This Plan is a dental and vision expense reimbursement plan that will
provide payment of services to either you or your provider. This means
that you may pay the provider for supplies and services you or a covered
family member receives, then request reimbursement from the plan; or
you may assign the payment directly to the provider.

You are not restricted to specific providers – you may use the dental or
vision provider of your choice. For vision services, there are discounts
available if you choose a provider through Cole Managed Vision. To find a
participating provider near you, call 1-800-804-4384.

How Much How much the Plan covers depends on which option you
The Plan Pays elect — the Silver Plan, the Gold Plan or the Diamond Plan.

Silver Plan The Silver Plan will cover expenses incurred in the same calendar year as
follows:
First: The Plan pays 100% of the first $100 of covered dental or
vision exam expenses.
Second: You pay the next $50 of covered expenses - this will be
applied toward the calendar–year deductible. (You will not be
reimbursed for this $50 of covered expenses.)
Third: The Plan will then pay 70% of the next $200 of covered
expenses.
Fourth: The Plan will pay 50% of the next $720 of covered expenses
up to a total benefit of $600 each calendar year including
benefits for vision exams.
Fifth: The Plan pays 100% of up to $100 for lenses and frames.

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Gold Plan The Gold Plan will cover expenses incurred in the same calendar year as
follows:
First: The Plan pays 100% of the first $100 of covered dental or
vision exam expenses.
Second: The Plan will then pay 75% of the next $300 of covered
expenses.
Third: The Plan will then pay 50% of the next $2,350 of covered
expenses up to a total benefit of $1,500 each calendar year
including benefits for vision exams.
Fourth: The Plan pays 100% of up to $200 for lenses and frames.

Diamond Plan The Diamond Plan will cover expenses incurred in the same calendar year
as follows:
First: The Plan pays 100% of preventive services including vision
exams.
Second: The Plan will then pay 75% of the next $300 of covered
expenses.
Third: The Plan will then pay 70% of the next $2,536 of covered
expenses up to a total benefit of $2,000 each calendar year
including benefits for vision exams.
Fourth: The Plan pays 100% of up to $300 for lenses and frames.

Benefit The Silver Plan, the Gold Plan and the Diamond Plan have a calendar
Maximums year benefit maximum. This maximum is the most the Plan will pay for
expenses incurred during the same calendar year.

Silver Plan For the Silver Plan, the benefit maximum is $600 with the prescription
eyewear maximum of $100 considered separately. However, if you decline
coverage when you are first eligible and then elect coverage later (or
cancel coverage and re-enroll), this maximum will be reduced to $250
during the first calendar year of coverage, excluding the lenses and
frames benefits.

7
Gold Plan For the Gold Plan, the benefit maximum is $1,500 with the prescription
eyewear maximum of $200 considered separately. However, if you decline
coverage when you are first eligible and then elect coverage later (or
cancel coverage and re-enroll), this maximum will be reduced to $400
during the first calendar year of coverage, excluding the lenses and
frames benefits.

Diamond Plan For the Diamond Plan, the benefit maximum is $2,000 with the
prescription eyewear maximum of $400 considered separately. However,
if you decline coverage when you are first eligible and then elect coverage
later (or cancel coverage and re-enroll), this maximum will be reduced to
$600 during the first calendar year of coverage, excluding the lenses and
frames benefits.

Covered The following are typical dental and vision expenses covered by the
Expenses Plan:
• Preventive - oral exams, x-rays, sealants and fluoride treatments
• fluoride applications done in the office (take-home applications not
covered)
• fillings
• regular extractions (erupted and visible)
• root canal
• crowns, bridges, dentures
• routine eye exams
• prescription eyewear (glasses or contact lenses)
• orthodontics
Payment for orthodontic treatment is made in installments.
The first payment (downpayment) is payable on the date your
treatment begins and may be up to a maximum of 25% of the
estimated total treatment charge.
The balance of the estimated total treatment charge is prorated
and paid on a monthly basis during the anticipated duration of the
treatment
an orthodontic treatment questionnaire must be completed by
the orthodontist and submitted with your first claim

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Expenses Services and supplies not covered by the Plan are:
Not Covered
By The Plan • expenses due to injuries or conditions payable through workers'
compensation;
• services payable or provided through a governmental agency;
• services covered or considered for payment by any company
sponsored health plan; (i.e. extractions of fully impacted wisdom teeth,
anesthesiologist charges); or
• elective cosmetic dentistry
• non-prescription eyewear
• vision materials or services considered cosmetic in nature.
• eye care clubs/warranties.

9
Coordination If you or any covered dependent are reimbursed by another Plan for
With Other Plans dental or vision expenses, those reimbursements are not eligible for
consideration under this Plan. Only the balance of expenses not
reimbursed by the other Plan will be considered.

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SECTION 5. HOW TO FILE A CLAIM

Once you have paid for covered dental or vision services and supplies,
you may file a claim for benefits from the Plan. To file a claim, ask your
dentist, eye specialist or other provider for an itemized receipt. Then,
attach the receipt to a completed claim form available from your Human
Resources Department and submit your claim to:

Direct Reimbursement Benefit Plans

P.O. Box 71519
Newnan, GA 30271-1519

The claim form must have the following information:

• the name of the dentist or eye specialist;
• the patient's name and date of birth;
• your name (the employee);
• your identification number;
• the date of service;
• the name of the service; and
• the charge for the service.

You should be aware that at all steps of the claims process, you or your
dependent may be represented by another person, who may be, but is
not required to be, a lawyer. However, you are responsible for paying the
fees and expenses of your representative. Also, Direct Reimbursement
Benefit Plans may require evidence that it considers reasonable to
establish that an individual is actually your or your dependent’s authorized
representative.

Although claims are initially determined by Direct Reimbursement Benefit

Plans as Claims Administrator, the Company as the Plan Administrator
retains the right and authority to interpret the Plan’s Provisions and to
determine final benefits and appeals under the Plan. The Company’s
determinations and interpretations are final and conclusive.

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_____________________________________________________________________________
Initial Review From the date a claim is filed, Direct Reimbursement Benefit Plans will
Of Your Claim have a reasonable period of time, up to 30 days, in which to review the
claim and to notify you of its decision on the claim. If an extension of the
30-day period is required due to matters beyond the control of the Plan,
Direct Reimbursement Benefit Plans will notify you in writing, prior to the
end of the 30-day period, of the circumstances requiring the extension
and the date that Direct Reimbursement Benefit Plans expects to make a
decision. The extension period will be no longer than 15 days. If such an
extension is necessary due to your failure to submit the information
necessary to decide the claim, the notice of extension will specifically
describe the required information, and you will have at least 45 days from
the receipt of the notice within which to provide the necessary
information.

If you or your dependent’s claim is partly or entirely denied, you will

receive written notice from Direct Reimbursement Benefit Plans. The
notice will explain the reason for the denial, specify the Plan provisions on
which the denial is based, describe the appeals procedure and the time
limits to appeal the claim, and inform you of your right to bring a civil
action under Section 502(a) of the Employee Retirement Income Security
Act of 1974 (“ERISA”). The notice will also inform you if Direct
Reimbursement Benefit Plans relied on any internal rule or guideline
when it made its decision and that a copy of the rule or guideline will be
provided to you free of charge upon request.

If Direct Reimbursement Benefit Plans denied the claim because it

determines that the claim is not medically necessary or that the treatment
used was experimental or investigational, the notice will also specify what
Plan provision(s) the decision is based on as well as explain any scientific
judgments Direct Reimbursement Benefit Plans made.

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How To Appeal It's important you understand the reason your claim was denied.
Your Claim If your request for benefits is denied in whole or in part, and you or your
dependent feel you have been treated unfairly with respect to the Plan,
you or your dependent or other duly authorized person may appeal the
denial or other action in writing with 190 days after your receipt of
notification of the decision. Written request for review of any denied
benefit payment or other disputed matter should be sent to the Plan
Administrator, which is Mohawk Carpet Corporation. Appeals should be
mailed to “Plan Administrator, Dental/Vision Plan, c/o Mohawk, P.O. Box
1448, Dalton, GA 30721.” Any request should be accompanied by
documents or records in support of the appeal. In the letter, ask that your
claim be reviewed, and state why you think it should be reviewed. You
should also send any additional information or documents you think have
a bearing on your claim.

You will be provided, upon request and free of charge, with copies and/or
reasonable access to all documents, records and other information
relevant to your appeal. The Plan Administrator’s review must take into
account all comments, documents, records, and other information you
submitted relating to the claim, regardless of whether the information was
submitted or considered in the initial benefit determination. The review
must not give any deference to the initial benefit determination, nor a
subordinate of anyone who took part in the initial benefit determination,
may participate in the appeal decision.

If an appeal is based in whole or in part on a medical judgment, including

a determination with regard to whether a treatment, drug or other item is
experimental, investigation, or not medically necessary or appropriate,
the Administrator will consult with a dental or eye specialist who has
appropriate training and experience in the particular field of medicine
involved in the judgment. This professional may not be an individual who
was consulted in connection with the initial benefit determination, nor the
subordinate of anyone consulted in connection with the initial benefit
determination.

13
 The Administrator will identify and disclose to you any medical or
vocational expert whose advice was obtained on behalf of the Plan in
connection with the benefit determination, regardless of whether the
advice was relied upon in making the determination.

Notice of the The Plan Administrator will notify you of its decision on appeal in writing
Appeal within a reasonable period of time, which will not exceed 60 days after
Decision the date upon which the Administrator received the request for appeal, if
your claim is partially or wholly denied. The notification will contain the
specific reason or reasons for the denial; reference to the specific Plan
provisions upon which the denial was based; a statement that you are
entitled to receive, upon request and free of charge, reasonable access
to and copies of, all documents, records and other information relevant to
the claim for benefits; a statement covering voluntary dispute resolution
options; and a statement informing you of your right to bring an action
under Section 502(a) of ERISA.

If an internal rule, guideline, protocol or other similar criterion was relied

upon in denying an appeal, the Administrator will either furnish you with a
copy of the specific rule, guideline, protocol or other criterion, or provide
you with a statement that the rule, guideline, protocol or criterion was
relied upon in making the decision, and that copy of these materials will
be provided to you free of charge.

If the denial is based on medical necessity, experimental treatment or a

similar exclusion or limit, the Administrator will either furnish you with an
explanation on the scientific or clinical judgment upon which the decision
was based, applying the terms of the Plan to your case, or a statement
that this explanation will be provided free of charge upon request.

Any denial of an appeal must contain the following statement: “You and
your plan may have other voluntary alternative dispute resolution options,
such as mediation. One way to find out what may be available is to
contact your local U.S. Department of Labor Office and your State
insurance regulatory agency.”

14
SECTION 6. WHEN COVERAGE ENDS

There are several circumstances in which the coverage you have as an

active employee can end as explained in this section. However, when
coverage through the Company ends, you or your dependents may be
eligible for COBRA Coverage (page 13).

Termination When your active employment ends for reasons other than disability,
Of Coverage layoff, a leave of absence, or death, your coverage under the Plan will
end on the date:

• your active employment with the Company ends.

Your Coverage may also end on the date of the following events:

• the Plan is terminated or amended to exclude you or your

dependents from the class of employees or dependents, as
applicable, eligible for coverage;
• a required payment for coverage is not made; or
• you are no longer an eligible employee (page 1).
• you are no longer a participant in the plan

If your coverage ends, your dependents' coverage will end on that same
date. In addition, a dependent's coverage may also end on the date:

• a required payment for dependent coverage is not made, or

• a dependent no longer meets the Plan's definition of a dependent
(page 1).(Once a dependent no longer meets the Plan’s definition of
a dependent, it is your responsibility to notify the Company
immediately.)

15
 When coverage ends, you or your dependents may be eligible for
COBRA Coverage (page 13).

If You Become Your coverage may continue while you are on an approved disability
Disabled leave.

Contact your Human Resources Department concerning the premium

payment for this benefit.

If You Are If you are laid off, you can continue your coverage until the end of
Laid Off the month following the month in which your layoff began. Before your
layoff begins, contact your Human Resources Department on how to pay
for this coverage.

To continue coverage for a longer period of time, you or your dependents

may be eligible to elect COBRA Coverage (page 13).

If you are rehired as an "eligible employee" (page 1 ) within one year of

the date you were laid off, coverage may begin on your date of rehire.

Personal Leaves If you take a leave of absence pursuant to the Family and Medical Leave
Act, (“FMLA”), your elected coverage will be continued by the Company
for the authorized period of leave. Before your approved leave begins,
contact your Human Resources Department on how to pay for this
coverage.

16
When You Die If you die while covered under this Plan as an employee, your
dependents' coverage will end on the later of:

• the last day of the month following the month of your death, or
• the date your salary stops.

Then, when this coverage ends, your dependents may be eligible for
COBRA Coverage as explained below.

COBRA In 1986, a federal law — the Consolidated Omnibus Budget

Coverage Reconciliation Act (COBRA) — was enacted. COBRA requires that most
employers sponsoring group health plans offer employees and their
dependents (Qualified Beneficiaries) the opportunity for a temporary
extension of health coverage (called "COBRA Coverage") in certain
instances where coverage would otherwise end or change.

The following information is intended to inform you, in a summary

fashion, of your rights and obligations under COBRA. You, your spouse
and your other covered dependents should read this information
carefully.

As an employee or retiree covered by the Mohawk Carpet Dental/Vision

Plan, you have a right to choose COBRA Coverage for yourself and your
covered dependents if you lose your coverage or if your coverage
changes because of the termination of your employment (for reasons
other than gross misconduct on your part) or a reduction in hours.

As the spouse of an employee or retiree covered by the Plan, you have

the right to choose COBRA Coverage for yourself and your covered
dependents if your coverage ends or changes for any of the following four
events:

17
1. the death of your spouse;
2. a termination of your spouse's employment (for reasons other than
gross misconduct) or reduction in your spouse's hours of
employment; or
3. divorce or legal separation from your spouse.
4. your spouse becomes entitled to benefits under Medicare

In the case of a covered dependent child, he or she has the right to elect
COBRA Coverage for himself or herself if coverage ends or changes for
any of the following five events:

1. the death of a covered employee or former employee;

2. the termination of the covered employee's employment (for reasons
other than gross misconduct) or a reduction in the covered
employee's hours;
3. divorce or legal separation;
4. the dependent ceases to be a dependent under the provisions of the
Plan; or
5. a parent becomes entitled to benefits under Medicare

Effective January 1, 1997 if a child is born to a covered employee, or if a

child is, before age 18, adopted by or placed for adoption with a covered
employee during a period of COBRA continuation coverage, the newborn
or adopted child is also a Qualified Beneficiary. These new dependents
can be added to COBRA coverage if you notify the Plan Administrator
within 30 days of the birth or adoption.

Under the law, the employee or a family member has the responsibility to
inform the benefits administrator within 60 days after losing coverage
because of a divorce, or legal separation or dependent losing dependent
status as defined in Section 1. If this notice is not received within 60
days, the dependent will permanently lose eligibility for COBRA
continuation coverage. The Company has the responsibility to notify the
appropriate benefits administrator of the employee's death or termination
of employment.

18
When the benefits administrator is notified that one of these events has
happened, you will be notified that you have the right to choose COBRA
Coverage. Under the law, you have 60 days from the later of the following
two dates to inform the benefits administrator you want COBRA
Coverage:

1. the date you would lose coverage or coverage would change

because of one of the events described above, or
2. the date the COBRA election form is sent to you.

If you do not choose COBRA Coverage, your coverage will end or

change in accordance with the Plan's provisions, and you will not have
another opportunity to elect COBRA coverage under the Plan.

If you choose COBRA Coverage, the Company is required to give you

coverage which, as of the time coverage is being provided, is identical to
the coverage provided under the Plan to similarly situated active
employees. The law requires that you be afforded the opportunity to
maintain COBRA Coverage for 3 years (36 months) unless you lost
coverage or coverage changed because of a termination of employment
or reduction in hours. In those cases, the required COBRA Coverage
period is 18 months. This 18 months may be extended to 36 months if
other events (such as death, divorce, or the employee's Medicare
entitlement) occur during the 18 month period. If the covered employee
became entitled to Medicare less than 18 months before a qualifying
event, which is termination of employment or reduction of hours, then
Qualified Beneficiaries other than the covered employee may receive
continuation coverage for up to 36 months measured from the covered
employee's Medicare entitlement.

The 18-month coverage period applicable to termination (except for

gross misconduct) or to reduction of hours may be extended to up to 29
months if you are determined by the Social Security Administration to
have been disabled at any time within the first 60 days of COBRA

19
coverage. In order to extend the 18-month period, you must notify the
Plan Administrator by providing a copy of the disability award (within 60
days of a determination by the Social Security Administration and before
the end of the 18-month continuation period) of such determination by the
Social Security Administration. If you satisfy the above-stated
requirements, your coverage may be continued for up to an additional 11
months beyond the end of the initial 18-month period by your electing
such additional coverage and paying a higher monthly premium (150% of
the applicable premium used to determine regular COBRA rates) for
coverage after the end of the initial 18 months. You are also responsible
for notifying the Plan Administrator within 30 days after the date of any
final determination of the Social Security Administration that you are no
longer disabled, if such a determination is made before the 29-month
continuation coverage period expires. If you qualify for the 11-month
extension, non-disabled family members who are entitled to COBRA
continuation coverage will also be entitled to the 11-month extension.

Continuation coverage will be cut short for any of the following five
reasons:

1. The Plan is terminated in its entirety and neither the Company nor its
Participating Companies maintain any type of group plan;
2. The premium for your continuation coverage is not paid on time,
defined initially as within 45 days of the date of the election and
thereafter within 30 days of each due date;
3. You become covered under another group health plan which does
not contain any exclusion or limitation with respect to any pre-existing
condition you have;
4. You become entitled to Medicare; or
5. In the case of the 29-month continuation of coverage period for the
disabled, your ceasing to be disabled.

If COBRA coverage terminates it cannot be reinstated.

20
You do not have to show that you are insurable to choose COBRA
coverage. However, continuation coverage under COBRA is provided
subject to your eligibility for coverage; the Plan Administrator reserves the
right to terminate your COBRA coverage retroactively if you are
determined to be ineligible.

Under the law, you may have to pay all or part of the premium, plus a 2%
administration fee, for your continuation coverage. As explained above,
higher rates apply to the 11-month extension due to disability. There is a
grace period of 30 days for payment of the regularly scheduled premium.

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SECTION 7. HIPAA PRIVACY

A federal law, the Health Insurance Portability and Accountability Act of

1996 (HIPAA), requires that health plans protect the confidentiality of your
private health information. A complete description of your rights under
HIPAA can be found in the Plan’s privacy notice, which was distributed to
you and is available from the Human Resources Department. HIPAA’s
privacy rules (and all provision of the Plan relating to those privacy rules)
were effective beginning April 14, 2003.

This Plan, and the Employer or Plan Sponsor, will not use or further
disclose information that is protected by HIPAA (“protected health
information”) except as necessary for treatment, payment, health plan
operations and plan administration, or as permitted or required by law or
the Plan. By law, the Plan has required (or as of the effective date of the
HIPAA privacy rules will require) all of its business associates to also
observe HIPAA’s privacy rules. In particular, the Plan will not, without
authorization, use or disclose protected health information for
employment-related actions and decisions or in connection with any other
benefit or employee benefit plan of the Employer or Plan Sponsor.

Under HIPAA, you have certain rights with respect to your protected
health information, including certain rights to see and copy information,
receive an accounting of certain disclosures of the information and, under
certain circumstances, amend, the information. You also have the right
to file a complaint with the Plan or with the Secretary of the U.S.
Department of Health and Human Services if you believe your rights
under HIPAA have been violated.

This Plan maintains a privacy notice, which describes your rights under
HIPAA’s privacy rules. For a copy of the notice, please contact the
Privacy Official or other benefits official of your Plan. If you have any
questions about the privacy of your health information, please also
contact the Privacy Official. If you want to file a complaint under HIPAA,
please contact the Human Resources Department of your Employer.

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SECTION 8. OTHER IMPORTANT INFORMATION

In 1974, Congress enacted the Employee Retirement Income Security

Act (ERISA) to safeguard your interests and those of your beneficiaries
under your employee benefit plans. As ERISA requires, this section
provides additional information about your benefits as well as a statement
of your rights and protections under this law.

Funding Mohawk and participant contributions fund the benefits and the
administration of the Mohawk Carpet Dental/Vision Plan. All employee
contributions to the Plan shall be withheld from the employee’s paycheck
on a pre-tax basis.

Name And The name of this Plan is the Mohawk Carpet Dental/Vision Plan. The
Type Of Plan Plan is classified under the Employee Retirement Income Security Act of
1974 as a "welfare plan" because it provides dental/vision benefits.

Plan The Plan Administrator is Mohawk Carpet Corporation;

Administrator P.O. Box 12069; Calhoun, Georgia 30703 706-629-7721.

The Plan Administrator has the exclusive power and discretionary

authority to interpret the Plan. The Plan Administrator is the “Named
Fiduciary” under ERISA.

Plan Mohawk has delegated to Direct Reimbursement Benefit Plans the

Administration duty to administer all claims for Plan benefits, and has designated Direct
Reimbursement Benefit Plans as the Plan’s Claims Administrator. The
Administrative Service Agreement between Mohawk Carpet Corporation
and Direct Reimbursement Benefit Plans governs the operation of the
Plan at all times.

23
Plan Year January 1 – December 31

Expenses For If you or a covered dependent receive Plan benefits for dental care
Which Others for which another person is liable, this Plan can recover those
Are Liable expenses from the other person or their insurance company, including
auto insurance and no fault auto insurance.

Legal Service Service of legal process concerning the Plan may be made by serving the
following:

Vice President & Corporate Secretary

Mohawk Carpet Corporation
P.O. Box 12069
Calhoun, Georgia 30703

Plan Records The Plan and all of its records are kept on a calendar-year basis.

Plan The Plan is identified by the following numbers under Internal

Identification Revenue Service (IRS) rules:
Numbers
Employer Identification Number assigned to Mohawk
by the IRS: 58-2185429

Plan Number assigned by the Company: 520

Plan The Company currently intends to continue the Mohawk Carpet

Continuance Dental/Vision Plan for active employees and retirees, under the terms
And Amendment of the Plan, but reserves the right to amend or terminate it at any
Process time with or without notice to participants.

The Company’s Board of Directors is ultimately responsible for any

amendments and the amended process itself.

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Plan This booklet is a summary of the Mohawk Carpet Dental/Vision Plan
Documents and does not attempt to cover all details. Specific details are contained in
the Administrative Service Agreement between Direct Reimbursement
Benefit Plans and Mohawk Carpet Corporation, which legally governs the
operation of the Plan.

Plan participants are entitled to examine, without charge, Plan contracts

and documents, including the Administrative Service Agreement, the
annual report of Plan operations, and such other documents and reports
that are maintained by the Plan or filed with a federal government
agency.

These contracts and documents are available for review during normal
working hours at the Corporate Human Resources Department. Copies
of such contracts and documents will be made available for examination
at that work location within 10 days of the date the request was received.

At any time, participants may request copies of any Plan contracts and
documents by writing to the Plan Administrator. They will be charged a
reasonable fee for copies of the contracts and documents requested.

Your Rights The benefits provided by the Mohawk Carpet Dental/Vision Plan are
As A Plan covered by the Employee Retirement Income Security Act of 1974
Participant (ERISA), as amended from time to time. ERISA was signed into law for
the purpose of protecting your rights under employee benefits plans. The
law does not require a company to provide benefits, but ERISA does set
standards for any benefits a company wishes to offer — and it requires
that you be given an opportunity to learn what these benefits are and your
rights to them under the law.

It is your right to know as much as possible about your benefits. This

Summary Plan Description is one way to help keep you informed.

25
As a participant in the Mohawk Carpet Dental/Vision Plan, you are
entitled to certain rights and protections under ERISA. ERISA provides
that all Plan participants shall be entitled to:

1. Examine, without charge, at the Plan Administrator's office and at

other specified locations, such as selected worksites, all Plan
documents, including contracts and copies of all documents filed by
the Plan with the U.S. Department of Labor, such as detailed annual
reports and Plan descriptions.

2. Obtain copies of all Plan documents and other Plan information upon
written request to the Plan Administrator. A reasonable charge may
be made for such copies.

3. Receive a summary of the Plan’s annual financial report. The Plan

Administrator is required by law to furnish each participant with a
copy of this summary annual report.

You may continue Plan coverage for yourself, or for your spouse or
dependents, if there is a loss of coverage under the Plan as a result of a
qualifying event. You or your dependents may have to pay for such
coverage. You should review this summary plan description and the
documents governing your COBRA continuation coverage rights to learn
more.

You may receive a reduction or elimination of exclusionary periods of

coverage for preexisting conditions under the Plan, if you have creditable
coverage from another plan. You should be provided a certificate of
creditable coverage free of charge, from the Plan when you lose
coverage under the Plan, when you become entitled to elect COBRA
continuation coverage, when your COBRA continuation coverage ceases,
if you request it before losing coverage, or if you request it up to 24
months after losing coverage. Without evidence of creditable coverage,
you may be subject to a pre-existing condition exclusion for 12 months
(18 months for late enrollees) after your enrollment date in your
coverage.

26
In addition to creating rights for Plan participants, ERISA imposes duties
upon the people who are responsible for the operation of the employee
benefit plan. The people who operate your Plan, called "fiduciaries" of the
Plan, have a duty to do so prudently and in the interest of you and other
Plan participants according to the Plan's provisions. No one, including
your employer or any other person, may fire you or otherwise discriminate
against you in any way to prevent you from obtaining a welfare benefit or
exercising your rights under ERISA.

If your request for a benefit under this Plan is denied, in whole or in part,
you must receive a written explanation of the reasons for the denial. You
have the right to formally appeal a denial for review and reconsideration
as set forth in "Denial Of Benefit Requests And Appeal Procedures" on
page 19.

Under ERISA, there are steps you can take to enforce the rights outlined
above. For instance, if you request materials from the Plan Administrator
and do not receive them within 30 days, you may file suit in a federal
court. In such case, the court may require the Plan Administrator to
provide the materials and pay you up to $110 a day until you receive the
materials, unless the materials were not sent because of reasons beyond
the control of the Plan Administrator. No action at law or in equity may be
brought to recover under this Plan document until the appeal rights herein
provided have been exercised and the Plan benefits requested in such
appeal have been denied in whole or in part.

If you have a request for benefits which is denied or ignored, in whole or

in part, you may file suit in a state or federal court. If it should happen
that Plan fiduciaries misuse the Plan's money, or if you are
discriminated against for asserting your rights, you may seek assistance
from the U.S. Department of Labor, or you may file suit in a federal
court. The court will decide who will pay court costs and legal fees.
If you are successful, the court may order the person you have sued to

27
pay these costs and fees. If you lose, the court may order you to pay
these costs and fees if, for example, it finds your request is frivolous.

If you have any questions about the Plan, you should contact the Plan
Administrator. If you have any questions about this statement or your
rights under ERISA, you should contact your Plan Administrator the
nearest Area Office of the Employee Benefits Security Administration
(formally known as the Pension and Welfare Benefits Administration),
U.S. Department of Labor, listed in your telephone directory, or the
Division of Technical Assistance and Inquiries, Employee Benefits
Security Administration, U.S. Department of Labor, 200 Constitution
Avenue N.W., Washington, D.C. 20210. You may obtain certain
publications about your rights and responsibilities under ERISA by calling
the publications hotline of the Employee Benefits Security Administration.

28