To: Mullican Flooring Partners

Due to your efforts Mullican Flooring has experienced a tremendous growth in retailers displaying and advertising our products. With this growth our presence on the internet has also increased. The internet has continued to become a bigger factor as consumers research products before making a purchase. In conjunction with this research more consumers have found it easier to purchase products from the comfort of their own homes rather than visit a retailers shop.

Mullican Flooring embraces the internet as an educational tool and we enjoy the benefits of many sites recommending and selling our products. The sale of Mullican Flooring on the internet has and is having a negative impact on our brand and our retail partners. Many of whom have invested in displays promoting our products and our brand. These retail locations offer customers qualified installers and knowledgeable sales staff that promote our brand and products in a positive manner. Consumers who purchase our products only on the basis of the lowest price are not necessarily getting what they bargained for. Products are often sold that will not work for the consumer and they are then left with no one to handle their issues.

In order to eliminate price as the deciding factor in the purchase of a Mullican Flooring brand hardwood floor we have decided to implement a price list that is the minimum advertised price for all of our products. By doing this we hope to give the consumer the best overall experience in buying a Mullican Flooring product and an experience that takes into consideration design, installation, subfloor, species and customer service before, during and after the sale. Price should never be the deciding factor when choosing a hardwood floor for your home.

This new price list will go into affect Sept.15, 2010 and any retailer promoting Mullican Flooring products using our trade names and logos or other intellectual properties must adhere to this pricing policy.

Mullican Flooring Retail Policies

The following policies apply to all Mullican Flooring dealer partners.

1. Advertised Pricing

Mullican Flooring reserves the right to establish minimum advertised selling prices. Mullican Flooring products may not be advertised for sale at levels below the minimum advertised pricing set. This policy covers communication in the form of print or broadcast media. This includes posters, print, handbills, flyers, Internet web sites and any signage visible outside the dealer’s location. All prices are subject to change and dealers will be notified of any changes

2. Use of Trademarks and images

Mullican Flooring is pleased to grant authorized dealers a limited, nonexclusive license to the to use Mullican Flooring trademarks, trade names, logos, and images in advertising Mullican Flooring products for sale. Mullican Flooring retains control over the use of all protected trademarks and reserves the right to deny, limit or withdraw approval of the use of these trademarks at any time for any reason. Authorized dealers may request the use of Mullican Flooring trademarks, trade names, logos and images by filling out the attached form.

3. Internet Policy

Prices advertised on the internet must comply with Mullican Flooring advertised pricing policy. Prices mentioned anywhere on a website must be equal to or greater than the minimum advertised pricing as set by Mullican Flooring. NO price discounts may be advertised even during a special promotion. An internet retailer is free to sell at prices lower than the minimum advertised price but are limited in communicating these prices to individual consumers either via telephone or individual email only after the consumer has submitted at request for an individual product in writing to the internet retailer. No mass emails or links are allowed. A complete price list is not to be sent under any circumstances.

4. Retail pricing

While Mullican Flooring reserves the right to determine what prices appear in advertising and on any Internet web sites featuring Mullican Flooring products, Mullican Flooring does not require dealers to sell at any particular price. Dealers are free to determine their own retail prices and make sales at levels competitive in their markets even if those prices are below the minimum advertised price level.

5. Enforcement

In the event of a violation of this policy, the dealer will be asked to comply with Mullican Flooring policy. If the dealer continues to ignore the policy then Mullican Flooring will have no alternative other than to terminate the relationship with the offending dealer.

The above policies are in affect to protect the Mullican Flooring brand and our dealer partners who have also invested in our brand. Predatory pricing has an adverse effect on our brand and diminishes its value. All policies are subject to change and up to date policies can be found in the dealer section of our website.