INTERNET ADVERTISING POLICY

Oriental Weavers, USA, Inc. (“OW”) and its affiliated brands have established a strong reputation in the marketplace for providing our retailers with high value and high quality products. OW understands the value of a Website and the Internet as an advertising and product promotion vehicle for OW products, and OW is committed to protecting its upscale brand image for superior product quality, design, value, and service. OW is pleased to license the use of its copyrighted images and trademarks to its retailers upon the terms and conditions stated below which it believes will best promote the successful distribution of OW products against competing brands.

In order to maintain our company’s high quality brand image and reputation for product quality we have revised our Internet Advertising Policy (“Policy”). This Policy supersedes and replaces all previous policies and requirements pertaining to the use of OW copyrighted images and trademarks on the Internet and in any form of electronic media.

This Policy, which has been adopted unilaterally by OW, shall be effective February 1, 2010.

OW values your business and appreciates the efforts undertaken by each of its retailers in promoting OW products. It is believed that this Internet Advertising Policy will ensure the integrity of the use of the copyrighted images and trademarks for the benefit of OW and for its licensed retailers. Any questions regarding this Policy should be directed to license@owrugs.com.

GENERAL GUIDELINES

The Internet Advertising Policy applies to all online advertising of OW products. This includes all solicitations and advertisements through the Internet and other electronic media including but not limited to – websites, chat rooms, online auctions, and email newsletters, electronic advertising communication, discount coupons and/or offers (collectively referred to and included herein as the “Internet”).

In order to ensure the OW brand and its products are represented appropriately, it is necessary to receive written approval from OW via the “Oriental Weavers Advertising Approval and License Form” prior to displaying any OW-related advertising and marketing information on the Internet and any electronic media. OW reserves the right to withdraw such approval at any time for any reason in its sole discretion. Upon notice of the change in approval status, all information and images related to the OW brand and its products must be immediately removed by the retailer from any Internet and electronic media usage. The “Oriental Weavers Advertising Approval and License Form” can be found in the retailer section of the OW’s website at www.owrugs.net. Requests for approval should be directed to license@owrugs.com.

The copyrighted images and the trademarks will be used by retailers only in connection with those goods produced, purchased and supplied by OW. The Internet advertising will use only the approved copyrighted images and trademark graphics and trademarks in connection with the advertising materials displayed on the Internet. No retailer shall have any right in or to any of the copyrighted images or associated trademarks and shall not make any statement or take any position to the contrary. All goodwill from the use of such copyrighted images and trademarks shall inure to the benefit of OW. A retailer will do nothing in its advertising or otherwise to indicate that such copyrighted images or marks are the property of such retailer. Upon request, each retailer will provide to OW examples showing all such uses by such retailer of the OW copyrighted images and trademarks. In addition, no retailer may register or seek to register any domain names incorporating OW or Oriental Weavers’ trademarks, or any variant thereof, with Network Solutions, Inc. or any other Internet domain name registration service in the United States or internationally.

INTERNET MINIMUM ADVERTISED PRICE

We have established an Internet Minimum Advertised Price (“IMAP”) and certain advertising requirements for all branded OW products offered by a retailer through the Internet. The IMAP for each collection is listed on the Internet Minimum Advertised Price List which will be updated periodically as changes are made to the OW product line. To obtain a current copy of the IMAP list please refer to the retailer section of our website at www.owrugs.net.

If an advertisement offers a gift with the purchase of an OW product, the value of the gift may be stated, but may not be subtracted from the OW product advertised price to show a net advertised price that is below the stated IMAP.

There can be no promotion of any price matching or similar Policy located on any OW product page.

Not all OW collections have an IMAP. If an OW collection is not listed on the IMAP list, then the retailer is free to advertise the collection at any price. If a collection does not have an IMAP, it can be advertised at any price, but must not use the OW collection or design names.

Every OW product with a listed IMAP shown on a retailer’s website must be shown with an advertised price that is at or above the listed IMAP. However, Retailers are authorized to advertise a discount on all OW products up to a maximum of 15% off the listed IMAP. This discount can be shown in any form as long as the final advertised price is not below 15% off the listed IMAP.

At times, OW may discontinue certain designs within a product collection which has a listed IMAP. In such cases there is no applicable IMAP for the discontinued design but, when shown and advertised, it must be identified as a discontinued item.

There will be nothing displayed or conveyed in Internet advertising in connection with the OW name, brand, or products via wording, banners, pop-ups, etc. indicating that an advertised price below the listed IMAP exists except as provided herein.

OW Rug pad collection names cannot be used by a retailer on the Internet or any electronic advertising communication but may be advertised and sold over the Internet as private label products.

OW Broadloom may not be displayed on, sold or distributed through or by means of the Internet or any other electronic communication. The fabricated custom rugs are permissible as listed on the IMAP.

While OW reserves the right by this license and Policy to require that the minimum advertised prices in any Internet advertising for its products comply with this Policy, OW is not attempting to control the actual resale price of any OW product by a retailer. Each retailer may sell OW rug products at any price it chooses, including a price below or above such minimum advertised prices. The IMAP applies only to advertised prices on the Internet and does not apply to the price at which the products are sold, offered or advertised for sale to an individual consumer within the retailer’s location, in print, on radio or television, over the telephone or in a live, manual email exchange.

FAILURE TO COMPLY

OW reserves the right to select and choose the retailers with which it will do business and the right to reject in its sole discretion, any purchase order from any retailer at any time for any or no reason. In addition, if any retailer fails to comply with the terms of this Policy, OW may, at its option, immediately terminate sales to such retailer. This Policy, which has been adopted unilaterally by OW, shall be effective February 1, 2010.

OTHER DETAILS

No employee or sales representative of OW has any authority to verbally modify this Policy. Any modification or changes to this Policy must be made in writing to this Policy as found on the OW website at www.owrugs.net.

This Internet Advertising Policy and the IMAP on OW products are subject to unilateral modification or discontinuance by OW in its discretion at any time.

This license, the rights granted hereby, issues arising under this Policy and/or arising from the sale of OW products to and by retailer shall be governed by Georgia law, without reference to Georgia’s choice of law rules. By accepting this license and the rights granted hereby, a retailer advertising and selling OW products accepts such choice of law, agrees that any and all disputes, claims and causes of action arising in connection with this Policy, license and sales thereunder shall be resolved exclusively by state and federal courts located in Dalton and Rome, Georgia, respectively and specifically consents to the jurisdiction of same.