Document:

Exhibit 4.5

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER ANY STATE SECURITIES LAWS. THESE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT
PURSUANT TO REGISTRATION UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, OR
UPON RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.

                               WARRANT CERTIFICATE

                          For Purchase of Common Stock

                                       of

                                 DECORIZE, INC.

                             _________________, 2005

         THIS CERTIFIES THAT, for value received, Quest Capital Alliance,
L.L.C., a Missouri limited liability company, whose address is 3140 East
Division, Springfield, Missouri 65802, or its registered transferees or assigns
("Holder"), is entitled, subject to the terms and conditions hereinafter set
forth, to purchase from Decorize, Inc., a Delaware corporation (the "Company"),
Seven Hundred Fifty Thousand (750,000) fully paid and nonassessable shares of
common stock, $.001 par value per share ("Common Stock"), of the Company (the
shares of Common Stock issuable under this Warrant being referred to as the
"Warrant Shares").

         This Warrant may be exercised by presentation and surrender of this
Warrant Certificate, together with (i) a completed and executed Election to
Purchase in the form attached as Annex I hereto, at any time during the Exercise
Period (as hereinafter defined), at the principal office of the Company or at
such other office as shall have been theretofore designated by the Company by
notice pursuant hereto, and (ii) payment to the Company of the applicable
purchase price, as hereinafter set forth. In certain contingencies provided for
below, the number of Warrant Shares subject to purchase hereunder or the
purchase price thereof are subject to adjustment.

         This Warrant is subject to the following terms and conditions:

         1. Exercise of Warrant.

                  (a) The purchase rights which are represented by this Warrant
are exercisable at the option of the holder hereof, in whole at any time, or in
part from time to time (but not as to a fractional share of Common Stock),
during the Exercise Period. In the case of the purchase of, or the surrender of
rights to purchase, less than all the shares purchasable under this Warrant, the
Company shall cancel this Warrant upon the surrender hereof and shall execute
and deliver a new Warrant of like tenor for the balance of the shares
purchasable hereunder.
<PAGE>

                  (b) The term "Exercise Period" shall mean and refer to a
period commencing on the date hereof and ending at midnight, central time, on
the date that is five (5) years from the date of this Warrant.

         2. Price. The purchase price of each Warrant Share purchasable pursuant
to the exercise of this Warrant (the "Exercise Price") shall be $0.40, subject
to adjustment as set forth herein, payable by bank check or wire transfer of
same day funds. Notwithstanding the foregoing, upon exercise of this Warrant,
the holder may deliver in payment of a portion or all of the Warrant Shares,
certain of the Warrant Shares issuable upon exercise of the Warrant, which shall
be valued at the Fair Market Value (as hereinafter defined) of such stock on the
date of exercise of the Warrant. For purposes of this Warrant, "Fair Market
Value" of the Warrant Shares shall mean:

                  (i) if the principal trading market for such securities is a
         national or regional securities exchange, the average closing price on
         such exchange for the twenty (20) trading days immediately prior to
         such Exercise Date;

                  (ii) if sales prices for shares of Common Stock are reported
         by the Nasdaq National Market System or Nasdaq Small Cap Market (or a
         similar system then in use), the average last reported sales price for
         the twenty (20) trading days immediately prior to such Exercise Date;
         or

                  (iii) if neither (i) nor (ii) above are applicable, and if bid
         and ask prices for shares of Common Stock are reported in the
         over-the-counter market by Nasdaq (or, if not so reported, by the
         National Quotation Bureau), the average of the high bid and low ask
         prices so reported for the twenty (20) trading days immediately prior
         to such Exercise Date.

         Notwithstanding the foregoing, if there is no reported closing price,
last reported sales price, or bid and ask prices, as the case may be, for the
period in question, then the current market price shall be determined as of the
latest twenty (20) trading day period prior to such day for which such closing
price, last reported sales price, or bid and ask prices, as the case may be, are
available, unless such securities have not been traded on an exchange or in the
over-the-counter market for thirty (30) or more days immediately prior to the
day in question, in which case the current market price shall be determined in
good faith by, and reflected in a formal resolution of, the Board of Directors
of the Company.

         3. Anti-Dilution Provisions. The Exercise Price in effect at any time
and the number of Warrant Shares and kind of securities purchasable upon the
exercise of this Warrant shall be subject to adjustment from time to time upon
the happening of any of the following events:

                  (a) In case at any time the Company shall subdivide its
         outstanding shares of Common Stock into a greater number of shares, the
         Exercise Price in effect immediately prior to such subdivision shall be

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<PAGE>

         proportionately reduced. In case at any time the outstanding shares of
         Common Stock of the Company shall be combined into a smaller number of
         shares, the Exercise Price in effect immediately prior to such
         combination shall be proportionately increased.

                  (b) In case of any reclassification, capital reorganization or
         other change of outstanding shares of Common Stock, or in case of any
         consolidation, merger or other business combination of the Company with
         or into another corporation or other entity (other than a merger with a
         subsidiary in which merger the Company shall be the continuing
         corporation and which shall not result in any reclassification, capital
         reorganization or other change of outstanding shares of Common Stock of
         the class issuable upon conversion of this Warrant) or in case of any
         sale, lease or conveyance to another corporation or other entity of all
         or substantially all of the assets of the Company, the Company shall
         cause effective provisions to be made so that the holder of this
         Warrant, upon exercise of the Warrant Shares receivable upon the
         exercise of all Warrant Shares at any time after the consummation of
         such reclassification, change, consolidation, merger, sale, lease,
         conveyance, dividend or distribution, shall be entitled to receive for
         such shares of Common Stock the stock or other securities or property
         to which the holder of this Warrant would have been entitled upon such
         consummation if such Warrant had been exercised into shares of Common
         Stock immediately prior to such consummation. Any such provision shall
         include provisions for adjustments that shall be as nearly equivalent
         as may be practicable to the adjustments provided for in this Warrant.
         The foregoing provisions of this paragraph (b) shall similarly apply to
         successive reclassifications, capital reorganizations and changes of
         shares of Common Stock and to successive consolidations, mergers,
         sales, leases or conveyances. In the event that, in connection with any
         such capital reorganization or reclassification, consolidation, merger,
         sale, lease or conveyance, additional shares of Common Stock shall be
         issued in exchange, conversion, substitution or payment, in whole or in
         part, for a security of the Company other than Common Stock, any such
         issue shall be treated as an issue of Common Stock subject to the
         provisions of this Section 3.

                  (c) In case at any time the Company shall fix a record date
         for purposes of effecting a dividend or distribution on the Common
         Stock (whether in the form of cash, Common Stock, or other securities
         or other property), the Exercise Price to be in effect after such
         record date shall be determined by multiplying the Exercise Price in
         effect immediately prior to such record date by a fraction, the
         numerator of which shall be the current market price per share of
         Common Stock on such record date, less the amount of cash so to be
         distributed (or the fair market value (as determined in good faith by,
         and reflected in a formal resolution of, the Board of Directors of the
         Company)) of the portion of the assets, securities or evidences of
         indebtedness so to be distributed, or of such subscription rights or
         warrants, applicable to one share of Common Stock, and the denominator
         of which shall be such current market price per share of Common Stock.
         Such adjustment shall be made successively whenever such a record date
         is fixed; and in the event that such distribution is not so made, the
         Exercise Price shall again be adjusted to be the Exercise Price, which
         would then be in effect if such record date had not been fixed.

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<PAGE>

                  (d) Concurrent with the delivery of this Warrant by the
         Company to Holder, and in consideration thereof, SRC Holdings
         Corporation ("SRC") has agreed to provide a limited guaranty of the
         Company's obligations in connection with a credit facility to be
         obtained by the Company from Bank of America, N.A. ("Bank"), in the
         form acceptable to Bank (the "Guaranty"). Holder has agreed to
         indemnify or otherwise pay a portion of the Guaranty if it is
         foreclosed upon by Bank. In case at any time Bank exercises its rights
         to payment with respect to the Guaranty, and as a result SRC pays Bank
         certain amounts in satisfaction of its obligations under the Guaranty,
         then the Exercise Price in effect immediately prior to such action
         taken by the Bank shall be reduced to an amount equal to the lesser of
         (i) the product of (A) 0.50 and (B) the Fair Market Value of the Common
         Stock as of the date on which such foreclosure action was taken, or
         (ii) $0.20 per share (such Exercise Price being the "Adjusted Price").

                  (e) If SRC is still required to provide the Guaranty or a
         similar guaranty under the Loan Agreement as of June 30, 2006, and SRC
         continues to do so after such date in accordance with the Bank's
         requirements, then the Exercise Price in effect immediately prior to
         such date shall be reduced to an amount equal to the Adjusted Price.

                  (f) In each case of any event described above that may require
         any adjustment or readjustment in the shares of Common Stock issuable
         on the exercise of this Warrant, the Company at its expense will
         promptly cause its independent certified public accountants, or in the
         event of any conflict such independent certified public accountants as
         are selected by the Board of Directors, to compute the adjustment or
         readjustment, if any, in accordance with this Warrant and prepare a
         certificate setting forth the adjustment or readjustment, or stating
         the reasons why no adjustment or readjustment is being made, and
         showing, in reasonable detail, the analysis of the facts, as separately
         certified by the Company, upon which any such adjustment or
         readjustment is based, including a statement of:

                           (i) the number of shares of Common Stock then
                  outstanding on a fully diluted basis, and

                           (ii) the number of shares of Common Stock to be
                  received upon exercise of this Warrant, in effect immediately
                  before the adjustment or readjustment and as adjusted and
                  readjusted on account thereof.

         The Company will promptly mail a copy of each such certificate to each
         Holder, and will, on the written request at any time of any Holder,
         furnish to Holder a copy of the foregoing certificate setting forth the
         calculations used to determine the adjustment or readjustment.

         4. Representations of Holder. In consideration of the issuance of the
Warrants, Holder represents, warrants and covenants, to the Company as follows:

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<PAGE>

                  (a) Authorization. Holder is duly organized, validly existing
         and in good standing under the laws of its jurisdiction. Holder has the
         necessary power and authority to execute and deliver this Warrant and
         to perform its obligations hereunder. The execution and delivery of,
         and the performance under, this Warrant by Holder will not conflict
         with any rule, regulation, judgment or agreement applicable to Holder.

                  (b) Investment Purpose. Holder was not formed for the purpose
         of acquiring the Warrants or the Warrant Shares. Holder is purchasing
         the Warrants (and will, upon exercise hereof, purchase the Warrant
         Shares) for investment purposes and not with a present view to, or for
         sale in connection with, a distribution thereof within the meaning of
         the Securities Act of 1933, as amended (the "Securities Act"). Holder
         understands that it may not be able to sell or otherwise dispose of the
         Warrants or the Warrant Shares, and accordingly it must bear the
         economic risk of this investment indefinitely.

                  (c) Reliance On Exemptions. Holder understands that neither
         the Warrants nor the Warrant Shares have been registered under the
         Securities Act or any state securities laws and are being offered and
         sold in reliance upon specific exemptions from the registration
         requirements of federal and state securities laws, and that the Company
         is relying upon the truth and accuracy of the representations and
         warranties of Holder set forth herein in order to determine the
         availability of such exemptions and the eligibility of Holder to
         acquire the Warrants and the Warrant Shares.

                  (d) Information. Holder has been furnished all documents
         relating to the business, finances and operations of the Company that
         Holder requested from the Company and has evaluated the risks and
         merits associated with an investment in the Warrants and the Warrant
         Shares to its satisfaction. Holder has been afforded the opportunity to
         ask questions of the Company's representatives concerning the Company
         in making the decision to purchase and acquire the Warrants and the
         Warrant Shares, and such questions have been answered to its
         satisfaction.

                  (e) Governmental Review. Holder understands that no federal or
         state agency or any other government or governmental agency has passed
         upon or made any recommendation or endorsement of the Warrants or the
         Warrant Shares.

                  (f) Holder's Qualifications. Holder is an "accredited
         investor" as defined in Rule 501 under Regulation D of the Securities
         Act. Holder is capable of evaluating the merits and risks of an
         investment in the Warrants and the Warrant Shares.

                  (g) Restrictions on Transfer. Holder covenants and agrees that
         it shall not transfer any of the Warrants or the Warrant Shares unless
         such Securities are registered under the Securities Act or unless an
         exemption from registration and qualification requirements is available
         under the Securities Act and applicable state securities laws and the
         Company has received an opinion of counsel satisfactory to it stating
         that such registration and qualification is not required. Holder
         understands that certificates representing the Warrants and the Warrant
         Shares shall bear the following, or a substantially similar, legend
         until such time as they have been registered under the Securities Act

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<PAGE>

         or otherwise may be sold without volume or other limitations under Rule
         144 promulgated under the Securities Act:

                  THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
                  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
                  UNDER ANY STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE
                  OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT
                  PURSUANT TO REGISTRATION UNDER THE ACT AND APPLICABLE STATE
                  SECURITIES LAWS, OR UPON RECEIPT BY THE COMPANY OF AN OPINION
                  OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
                  IS NOT REQUIRED.

                  (h) Residence. Holder is domiciled within the jurisdiction set
         forth under its name on the signature pages hereto.

                  (i) Compliance with Laws. Holder further represents to the
         Company that:

                           (i) it will not act, or fail to act, in any way that
                  might make unavailable to the Company, any of the exemptions
                  from registration under both state and federal securities law
                  that it is relying upon in connection with issuing this
                  Warrant; and

                           (ii) Holder will at all times comply with all
                  applicable laws relating to its activities under this Warrant,
                  including without limitation all applicable federal and state
                  securities laws and regulations.

         5. Elimination of Fractional Interests. The Company shall not be
required to issue certificates representing fractions of Warrant Shares, but
will make a payment in cash based on the Exercise Price in effect at that time.

         6. Exchange and Replacement of Warrant. This Warrant is exchangeable,
upon the surrender hereof by the registered holder at the principal office of
the Company, for new Warrants of like tenor and date representing the right to
purchase the number of shares purchasable hereunder, registered in such names as
requested by such holder (subject to the approval and consent of the Company),
each of such new Warrants to represent the right to purchase such number of
shares as shall be designated by said registered holder at the time of such
surrender. Upon receipt by the Company of (a) evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant and, in case
of loss, theft or destruction, and (b) indemnity or security reasonably
satisfactory to it, and upon surrender and cancellation of this Warrant, if
mutilated, the Company will make and deliver a new Warrant or Warrants of like
tenor, in lieu of this Warrant.

         7. Rights Prior to Exercise of Warrant. Prior to the exercise of this
Warrant, the holder of this Warrant shall not, by reason of this Warrant or the
shares underlying this Warrant, be entitled to any rights of a stockholder of
the Company, including without limitation the right to vote, to receive

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<PAGE>

dividends or other distributions or to exercise any preemptive rights and shall
not thereby be entitled to receive any notice of any proceedings of the Company,
except as specifically provided herein.

         8. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be mailed by first class registered or
certified mail, postage prepaid, at such address as may have been furnished to
the Company in writing by such holder or, until any such holder furnishes to the
Company an address, then to, and at the address of, the last holder of this
Warrant who has so furnished an address to the Company.

9. Transferability; Successors. No transfer of a Warrant for less than 100,000
shares shall be valid unless made by the registered holder with the prior
written consent of the Company, which shall not be unreasonably withheld. The
terms of this Warrant shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, executors, personal representatives,
successors and assigns and shall be binding upon any person, firm, corporation
or other entity to whom this Warrant and any shares of Common Stock issuable
upon exercise hereof are assigned or transferred (even if in violation of the
provisions of this Warrant) and the heirs, executors, personal representatives,
successors and assigns of such person, firm, corporation or other entity.

10. Amendment and Waiver. Any changes in or additions to this Warrant may be
made, and compliance with any covenant or provision herein set forth may be
waived, only if the Company shall obtain consent thereto in writing from the
holder of this Warrant. Any waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

11. Governing Law; Venue. This Warrant shall be construed in accordance with and
be governed by the laws of the State of Delaware without regard to its conflict
of laws provisions. The parties irrevocably submit to the non-exclusive
jurisdiction of the state and federal courts located in Greene County, Missouri
for the purpose of any suit, action or other proceeding arising out of or based
on this Warrant or its subject matter. Each party, to the extent applicable law
permits, waives, and will not assert by way of motion, as a defense or
otherwise, in any suit, action or proceeding brought in the above-named courts,
any claim that (a) it is not subject personally to the jurisdiction of those
courts, (b) the suit, action or proceeding is brought in an inconvenient forum,
(c) the venue of the suit, action or proceeding is improper, or (d) this Warrant
or its subject matter may not be enforced in or by these courts.

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<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
and delivered as an instrument under seal and as of the date first above
written.

                                  DECORIZE, INC.,
                                  a Delaware corporation

                                  By:
                                      ------------------------------------------
                                  Name:    Steve Crowder
                                  Title:   President and Chief Executive Officer

                                       8
<PAGE>

                                                                         ANNEX I

                              ELECTION TO PURCHASE

TO: DECORIZE, INC.

                  The undersigned owner of the accompanying Warrant hereby
irrevocably exercises the option to purchase _______________ Warrant Shares in
accordance with the terms of such Warrant, directs that the Warrant Shares
issuable and deliverable upon such purchase (together with any check for a
fractional interest) be issued in the name of and delivered to the undersigned,
and makes payment in full therefor at the Exercise Price provided in such
Warrant.

COMPLETE FOR REGISTRATION OF WARRANT SHARES ON THE STOCK TRANSFER RECORDS
MAINTAINED BY THE COMPANY:

                                            QUEST CAPITAL ALLIANCE L.L.C.,
                                            a Missouri limited liability company

                                  By:
                                     -------------------------------------------
                                  Name:  Steven W. Fox
                                  Title:   General Manager
                                  Address: 3140 East Division
                                           Springfield, Missouri  65802
                                           Attn:  General Manager

                                  ----------------------------------------------
                                  Social Security or Other Identifying Number

                                  Date:                               , 20
                                       -------------------------------    ----Exhibit 4.6

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER ANY STATE SECURITIES LAWS. THESE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT
PURSUANT TO REGISTRATION UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, OR
UPON RECEIPT BY BORROWER OF AN OPINION OF COUNSEL SATISFACTORY TO BORROWER THAT
SUCH REGISTRATION IS NOT REQUIRED.

                                 DECORIZE, INC.
               SECOND AMENDED AND RESTATED SECURED PROMISSORY NOTE

$750,000.00                             Springfield, Missouri ____________, 2005

         FOR VALUE RECEIVED, the undersigned, Decorize, Inc., a Delaware
corporation (herein called "Borrower"), hereby promises to pay to the order of
SRC Holdings Corporation, a Missouri corporation (herein called "Lender"), the
principal sum of Seven Hundred Fifty Thousand and NO/100 Dollars ($750,000.00),
together with interest on the unpaid principal balance thereof as hereinafter
set forth in this Note. Both principal and interest are payable as herein
provided in lawful money of the United States of America at the address provided
by Lender for purposes of payment, or at such other place as from time to time
may be designated by the holder of this Note.

         This Note is issued in replacement of and substitution for that certain
First Amended and Restated Secured Promissory Note in the original principal
amount of $750,000, which was issued on September 30, 2004 (the "First Amended
Note"), which in turn was issued in replacement and substitution for that
certain Secured Line of Credit Promissory Note in the original principal amount
of up to $500,000, which was issued on April 29, 2004 (the "Original Note").
Upon issuance of this Note, the First Amended Note shall be of no further force
or effect, and shall be deemed amended and restated in its entirety by this
Note. Accordingly, this Note is entitled to the benefits of and restrictions
imposed upon the First Amended Note, and this Note (a) shall be deemed issued
and delivered in conjunction with that certain Security Agreement dated April
29, 2004, entered into by and between Borrower and Lender in connection with the
issuance of the Original Note (as from time to time supplemented, amended or
restated, the "Security Agreement"), and is the "Note" as defined therein, and
(b) shall be secured by all of the Collateral (as such term is defined in the
Security Agreement) of Borrower. Reference is hereby made to the Security
Agreement for a description of certain rights, limitations of rights,
obligations and duties of the parties hereto and for a description of the nature
and extent of the security thereby provided and the rights of the parties
thereto.

         This Note (exclusive of any past due principal or interest) from time
to time outstanding shall bear interest on each day outstanding at the Base Rate
(as defined below) in effect on such day. The "Base Rate" of this Note shall be
equal to the prime rate per annum, as published by the Wall Street Journal for
any given day, plus one-half percent (.5%). Each change in the Base Rate shall
become effective without prior notice to Borrower automatically as of the
<PAGE>

opening of business on the date of such change in the Base Rate. Upon the
occurrence of an Event of Default, all past due principal of and past due
interest under this Note shall bear interest on each day outstanding at a rate
per annum equal to the Base Rate plus three percent (3%) (the "Default Rate").
If any Event of Default is cured by Borrower or waived by Lender, the Default
Rate shall not apply for any period following such cure or waiver, as
applicable. Notwithstanding anything to the contrary in this paragraph, in no
event shall the Base Rate or the Default Rate exceed the Highest Lawful Rate (as
defined below), and if at any time either of those rates exceed the Highest
Lawful Rate, then such rate shall be deemed modified to equal the Highest Lawful
Rate, for so long as such rate exceeds the Highest Lawful Rate.

         Interest payments on the unpaid principal balance of this Note shall be
made in monthly installments over the term of this Note on the 1st day of each
calendar month, commencing on February 1, 2005. All payments made under this
Note shall be applied first to costs of enforcement or collection of this Note
(if any), second, to accrued but unpaid interest, and third, to outstanding
principal. The outstanding principal amount of this Note, together with all
accrued but unpaid interest thereon, shall be due and payable in full upon
demand by Lender at any time after issuance of this Note.

         It is the intention of the parties to comply with all applicable laws.
Accordingly, it is agreed that, notwithstanding any provisions to the contrary
in this Note, interest on the debt evidenced by this Note shall not at any time
exceed the maximum amount of non-usurious interest that may be contracted for,
taken, reserved, charged or received under applicable law (the "Highest Lawful
Rate"). Any interest in excess of that maximum amount shall be credited on the
principal of the debt or, if that has been paid, refunded. It is further agreed
that, without limitation of the foregoing, all calculations of the rate of
interest contracted for, charged, or received under this Note that are made for
the purpose of determining whether such rate exceeds the Highest Lawful Rate
shall be made, to the extent permitted by applicable law, by amortizing,
prorating, allocating, and spreading in equal parts during the period of the
full term of the indebtedness evidenced hereby, all interest at any time
contracted for, charged, or received from Borrower or otherwise by the holder or
holders hereof in connection with such indebtedness.

         For purposes of this Note, the following events shall constitute an
"Event of Default":

                  (a) the default by Borrower in any required payment of
         principal of or interest on this Note; or

                  (b) Borrower breaches or otherwise fails to perform or observe
         any covenant or agreement that is set forth in this Note or in the
         Security Agreement; or

                  (c) the entry of a decree or order for relief by a court
         having jurisdiction in respect of Borrower in an involuntary case under
         the federal bankruptcy laws, as now or hereafter constituted, or any
         other applicable federal or state bankruptcy, insolvency or other
         similar law, which is not vacated or dismissed within sixty (60) days,
         or appointing a receiver, liquidator, assignee, custodian, trustee,
         sequestrator (or other similar official) of Borrower or for any
         substantial part of its property, or ordering the winding up or
         liquidation of its affairs; or

                  (d) the commencement by Borrower or any affiliate thereof of a
         voluntary case under the federal bankruptcy laws, as now constituted or
         hereafter amended, or any other applicable federal or state bankruptcy,

                                       2
<PAGE>

         insolvency or other similar law, or the consent by it to the
         appointment to or taking possession by a receiver, liquidator,
         assignee, trustee, custodian, sequestrator (or other similar official)
         of Borrower or for any substantial part of its property, or the making
         by it of any assignment for the benefit of creditors, or the admission
         by it in writing of its inability to pay its debts generally as they
         become due; or

(e) if Borrower is liquidated or winds up its affairs; or

(f)      the sale or liquidation of all or substantially all of the assets of
         Borrower; or
(g)      if there is an event of default by Borrower, which is not cured within
         any applicable grace periods, under the Loan Agreement dated as of
         January 12, 2005, between Bank of America, N.A. ("Bank") and the
         Borrower (as amended, restated, substituted or replaced, the "Loan
         Agreement") or any security agreement, certificate, instrument or other
         agreement entered into by Borrower in connection with the Loan
         Agreement, including any of the foregoing entered into by any successor
         or substitute lender providing a facility in replacement or
         confirmation of that set forth in the Loan Agreement; or

(h)      if Lender is still required to guaranty Borrower's performance of its
         obligations under the Loan Agreement as of June 30, 2006, and Lender
         continues to do so after such date in accordance with Bank's
         requirements (a "Guaranty Extension").

         Upon the occurrence of an Event of Default, then, and in every such
case, the holder of this Note may declare the principal of this Note, together
with all accrued and unpaid interest thereon to be due and payable immediately,
and the same shall become and be due and payable, without presentment, demand,
protest, notice of intent to accelerate or other notice of any kind all of which
are expressly waived, and Lender may exercise all remedies available at law, in
equity or hereunder.

         If this Note is placed in the hands of an attorney for collection after
default, or if all or any part of the indebtedness represented hereby is proved,
established or collected in any court or in any bankruptcy, receivership, debtor
relief, probate or other court proceedings, Borrower and all endorsers, sureties
and guarantors of this Note, jointly and severally, agree to pay reasonable
attorneys' fees and collection costs to the holder hereof in addition to the
principal and interest payable hereunder.

         Borrower and all endorsers, sureties and guarantors of this Note hereby
severally waive demand, presentment, notice of demand and of dishonor and
nonpayment of this Note, protest, notice of protest, notice of intention to
accelerate the maturity of this Note, declaration or notice of acceleration of
the maturity of this Note, diligence in collecting, the bringing of any suit
against any party and any notice of or defense on account of any extensions,
renewals, partial payments or changes in any manner of or in this Note or in any
of its terms, provisions and covenants, or any releases or substitutions of any
security, or any delay, indulgence or other act of any trustee or any holder
hereof, whether before or after maturity.

         THIS NOTE AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF DELAWARE (WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW), EXCEPT TO THE EXTENT THE SAME ARE GOVERNED BY APPLICABLE
FEDERAL LAW. The parties irrevocably submit to the exclusive jurisdiction of the
state and federal courts located in Greene County, Missouri for the purpose of

                                       3
<PAGE>

any suit, action or other proceeding arising out of or based on this Note. Each
party, to the extent applicable law permits, waives, and will not assert by way
of motion, as a defense or otherwise, in any suit, action or proceeding brought
in the above-named courts, any claim that (a) it is not subject personally to
the jurisdiction of those courts, (b) the suit, action or proceeding is brought
in an inconvenient forum, (c) the venue of the suit, action or proceeding is
improper, or (d) any of these agreements and instruments, or their respective
subject matter, may not be enforced in or by these courts.

         At any time upon three (3) days written notice to Borrower, Lender may
in its sole discretion convert all or any portion of the outstanding balance of
this Note, including accrued but unpaid interest hereon, into shares of common
stock, $.001 par value, of Borrower (the "Common Stock") at a conversion price
equal to $0.40 per share, subject to adjustment as set forth herein (the
"Conversion Price"). Lender covenants and agrees that it shall not transfer this
Note or any shares of Common Stock issued upon conversion of this Note
("Conversion Shares"), unless such securities are registered under the Act or
unless an exemption from registration and qualification requirements is
available under the Act and applicable state securities laws and Borrower has
received an opinion of counsel satisfactory to it stating that such registration
and qualification is not required. Lender understands that certificates
representing the Conversion Shares shall bear the following legend, or a
substantially similar legend, until such time as they have been registered under
the Act or otherwise may be sold without volume or other limitations under Rule
144 promulgated under the Act:

         THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER ANY STATE
         SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,
         TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO REGISTRATION UNDER THE ACT
         AND APPLICABLE STATE SECURITIES LAWS, OR UPON RECEIPT BY THE COMPANY OF
         AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
         REGISTRATION IS NOT REQUIRED.

         If at any time after issuance of this Note (a) Bank exercises its
rights to payment with respect to the guaranty made by Lender in connection with
the Loan Agreement (the "Guaranty"), and as a result Lender pays Bank certain
amounts in satisfaction of its obligations under the Guaranty, or (b) Lender
makes a Guaranty Extension, then the Conversion Price shall automatically be
reduced to an amount equal to the lesser of (i) the product of (A) 0.50 and (B)
the Fair Market Value (defined below) of the Common Stock as of the date on
which such default occurred, or (ii) $0.20 per share. For purposes of this Note,
"Fair Market Value" of the shares of Common Stock as of a particular date shall
mean:

                  (i) if the principal trading market for such securities is a
         national or regional securities exchange, the average closing price on
         such exchange for the twenty (20) trading days immediately prior to
         such date;

                                       4
<PAGE>

                  (ii) if sales prices for shares of Common Stock are reported
         by the Nasdaq National Market System or Nasdaq Small Cap Market (or a
         similar system then in use), the average last reported sales price for
         the twenty (20) trading days immediately prior to such date; or

                  (iii) if neither (i) nor (ii) above are applicable, and if bid
         and ask prices for shares of Common Stock are reported in the
         over-the-counter market by Nasdaq (or, if not so reported, by the
         National Quotation Bureau), the average of the high bid and low ask
         prices so reported for the twenty (20) trading days immediately prior
         to such date.

         Notwithstanding the foregoing, if there is no reported closing price,
last reported sales price, or bid and ask prices, as the case may be, for the
period in question, then the current market price shall be determined as of the
latest twenty (20) trading day period prior to such day for which such closing
price, last reported sales price, or bid and ask prices, as the case may be, are
available, unless such securities have not been traded on an exchange or in the
over-the-counter market for thirty (30) or more days immediately prior to the
day in question, in which case the current market price shall be determined in
good faith by, and reflected in a formal resolution of, the Board of Directors
of Borrower.

         Notwithstanding anything to the contrary contained in this Note or any
other agreement, document or instrument evidencing the indebtedness evidenced by
this Note, this Note and the indebtedness evidenced hereby shall be subordinate
in right of payment and otherwise to all amounts due under the Loan Agreement,
in accordance with the terms of that certain Subordination Agreement entered
into by Bank, Borrower and Lender on or about the date of execution of the Loan
Agreement.

         Executed as of the date first written above.

                                  BORROWER:

                                  DECORIZE, INC.
                                  a Delaware corporation

                                  By:
                                       -----------------------------------------
                                       Steve Crowder
                                  Its: President and Chief Executive Officer

                                       5

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