CHRONOLOGY:

1. PT. Vinotindo Grahasarana (Vinotindo) a company incorporated in Republic

of Indonesia State Law and having its registered office at Graha Vivere Mezzanine, Jalan
Letjen S. Parman No.6, Jakarta 11480, Indonesia, founded with Deed of Establishment
Number 72 Date ofdated on 16 January 1989, made before by Darsono Ps, S.H, Notary
in Jalan Hayam Huruk 65 G, West Jakarta. Special in Case aAs Distributor in the form
of marketing, Vinotindo distribution distribute and sale with Carpet Tiles with brand of
Interface and Heuga in Indonesia;

2. Interface Heuga Singapore Ptd. Ltd (InterfaceFlor) a is a company

incorporated established in Republic of Singapore State Law and conducted activity in
regional South-East Asia, included in Territory of Jurisdiction Republic of Indonesia and
having its registered office at 80 Marine Parade Road, # 22-03/05 Parkway Parade,
Singapore. In case, its carry out business activity as Owner and Producer in the form
producing, marketing, distributing Interface and Heuga Carpet Tiles brand product in
South-East Asia;

3. PT. Kencana Arind Murni (Kencana) a company incorporated established in

Republic of Indonesia State Law and having its registered office at Komplek Puri
Commercial, Jalan Puri Block K7 No Gold. 3X-Y, Kembangan, West Jakarta 11610, in
Case, its carry out business activity in the economics field as Distributor in the form
marketing, sale and distribution of Carpet Tiles brand Interface and Heuga in
Indonesia;

4. At date of 2 September 1993, Vinotindo had cooperated with InterfaceFlor

through Distribution Agreement, where Vinotindo appointed as InterfaceFlor
Distributor for marketing, distribution and also purchasing of Interface and Heuga
Carpet Tiles Product in Indonesia;

5. The Distribution Cooperation relationship walked run very good since 1992, its
marked with:

a. Progressively recognizing of Interface and Heuga Carpet Tiles Product with

contractor, designer or consumer in Indonesia;

b. Interface and Heuga Carpet Tiles Product Sales always reached target every year
and lean increase, except year 1997-1999, when monetary and economic crisis
moment knock down Asia Economy;

6. In 2001, InterfaceFlor changed their personal structure in internal

management, where InterfaceFlor appointed Mr. Jim Tan as their Manager Business,
especially for Indonesia market;

7. At 1st of January 2002, Mr. Jim Tan as a new manager revised the Distribution
Agreement, date of 23rd of September 1993 between InterfaceFlor with Vinotindo,
where Vinotindo think assumed that clausal clause stated in Distribution Agreement
 harmed Vinotindo, especially in Termination Clausal Clause in Article 8 Letter b of
Distribution Agreement, date ofdated in 1st of January 2002:

8 (b) During the first year of this Agreement, termination by Interface will only be
made based on Clause 8a(i), 8a(ii), 8a(iii) and 8a(iv) above. After the first year,
Interface may terminate this Agreement for any reason or without cause by
giving Vinotindo three (3) month’s written notice.

Thereby, InterfaceFlor also have rights to terminate Distribution Agreement with

Vinotindo unilaterally gratuitously and after the first year of agreement, they will give
the termination letter during 3 (three) month;

8. Based on Vinotindo effort during the time which when Vinotindo had developed
Interface and Heuga Carpet Tiles brand product in Indonesia, so that the product had
recognized widely at in contractor, designer and consumer, but at the end Vinotindo
have to accept and sign the Distribution Agreement;

9. At the middle of 2004, PT. Gema Grahasarana, Tbk as Main Contractor at ACE
INA Project, gave information to Vinotindo about the other distributor Sub-Contractor at
the same project, that used Interface and Heuga Carpet Tiles, which is legaly sold
legally and distribute only by Vinotindo in Indonesia, according to Article 2 Letter c and
d Distribution Agreement date of 1 January 2002:
2 (c) During the term of this Agreement, Interface shall refer to Vinotindo all inquiries
and orders for the products to used in Indonesia.

2 (d) Interface will make reasonable effort to ensure that Interface’s dealers from
ather territories/ countries donot sell the products into Indonesia. However,
such efforts will be limeted to persuasion and Interface will not be bound to take
any legal action to prevent sale of the products in Indonesia by parties orther
than Vinotindo.

10. After confirmed to InterfaceFlor, InterfaceFlor always denied to refrain that possibility of
their product which come from InterfaceFlor and they always said assumed that the
product maybe may directly imported from the other party in Singapore and Thailand or
maybe the product had was quite similar looked like with Interface and Heuga Carpet
Tiles Product;

11. According to InterfaceFlor respond, Vinotindo think assumed that InterfaceFlor had
illegal cooperation in Interface and Heuga Carpet Tiles Product Distribution and Sale in
Indonesia (Parallel Illegal Import) with Kencana, without Vinotindo permission.
According to email communication, InterfaceFlor implicitly confessed that they already
known about Kencana had also marketed and selled the product in Indonesia, besides
Vinotindo;

12. At 6 May 2004, InterfaceFlor unilaterally terminated the cooperation agreement with
Vinotindo, based on there was unreason degradation Vinotindo sale. Although there
 was degradation Vinotindo sale also related with illegal distributor (Kencana) in
Indonesia;

13. Based on Termination of Distribution Agreement unilaterally, at on 19th of May 2004,

Vinotindo sent Complaint Letter to InterfaceFlor;

14. After communication by email and phone, InterfaceFlor offered Vinotindo to revise
Distribution Agreement, date ofdated on 1st of January 2002 with Vinotindo, that
InterfaceFlor appointed Vinotindo and Kencana as Distributor for Interface and Heuga
Carpet Tiles Product and also still kept Article 8 Letter b about Termination Clause in
Distribution Agreement;

15. At 1 July 2004, with the same consideration and reason to sign Distribution Agreement
date ofdated in 1st of January 2002, Vinotindo accepted and signed Distribution
Agreement date ofdated in 1st of July 2004, with repair business performance in future
expectation;

16. In the implementation of Distribution Agreement implementation, InterfaceFlor always

acted discriminatively and also harmed Vinotindo and always profited Kencana. This
Matter had has proven in some “Global Coorporation Account” InterfaceFlor Project
which had has already as former Vinotindo represent client and InterfaceFlor unilaterally
asked Vinotindo to retreat (Stay-Out) and also supported Kencana through InterfaceFlor
Supporting Letter;

17. Unfair and discrimation discrimate attitude by InterfaceFlor to Vinotindo,

18. That attitude of diskriminatif REPORTED [BY] the I clear proportional and inequitable
( Unfair Competition), where REPORTED [BY] II which [do] not [release] expense (Big
Cost) in enlarging product of Carpet Tiles of brand of Interface and Heuga own
REPORTED [BY] I, [is] always permitted to follow each;every existing tender, while
RAPPORTEUR which is during 12 ( Twelve) year enlarge name of product of Carpet Tiles
with brand of Interface and Heuga [is] always commanded to retreat ( Stay Out);

19. That in execution of Distribution Agreement between REPORTED [BY] I with

RAPPORTEUR, REPORTED [BY] I behave diskriminatif and harm RAPPORTEUR and
always profit REPORTED [BY] II. This Matter [is] proven [at] some project " Global [of]
Coorporation Account" REPORTED [BY] I which former semenjak represent client and
subscribe RAPPORTEUR, REPORTED [BY] I unilaterally and without considering
commanding RAPPORTEUR to retreat ( Stay-Out) and show and also support through
Supporting Letter to BE REPORTED [BY] II

20. That attitude of diskriminatif REPORTED [BY] the I clear proportional and inequitable
( Unfair Competition), where REPORTED [BY] II which [do] not [release] expense ( Big
Cost) in enlarging product of Carpet Tiles of brand of Interface and Heuga own
REPORTED [BY] I, [is] always permitted to follow each;every existing tender, while
RAPPORTEUR which is during 12 ( Twelve) year enlarge name of product of Carpet Tiles
with brand of Interface and Heuga [is] always commanded to retreat ( Stay Out);