Upcycling a Vintage Rug?

I took a bunch of stuff over to HousingWorks yesterday afternoon and, as usual, I had to do a full walkthrough to see what new and splendid things they had.  Nothing really caught my eye until, just as I was about to leave, I noticed the tiniest corner of a folded up red persian rug hidden underneath another piece of furniture with a pillow blocking it.  I checked the price and it said $175.  Even though I wasn't going to spend that kind of bank, I asked my favorite HW employee to help me open it up.  

We found a little space and flopped it open (oh, the dust!).  First thing we both noticed was that there was a hole with a 6-inch tear leading to it right in the middle of the rug and another small hole at the other end.  But other than that, it was actually very pretty.  

I asked him if they knew about the hole when they priced it and he said they didn't and that they would need to re-price it.  Since they were closing in 5 mins and I knew I wouldn't make it back over there today, I encouraged him to re-price it on the spot.  

Long story short (if it's not already too late for that), I walked out with the rug for $50.  More than I wanted to spend but still a bargain.  It is 9'6" x 7'9" so, there should be plenty of choices.

Here it is:

My thought is that it would make great upholstery for a big ottoman.  Here are some examples.  They're kind of a cliche I guess, but I have always liked these - there is something so boho comfortable about them.  They look old but new and very durable.

This one above is my favorite - both for size/shape and for the upholstery lay-out.

Anybody got any good ideas for me?