Document:

DECORIZE,
      INC.

    FOURTH
      AMENDED AND RESTATED PROMISSORY NOTE

     

    
      	
              $1,000,000

            	
              Springfield,
                Missouri

            
	 	
              April
                28, 2008

            

    

    

    FOR
      VALUE
      RECEIVED, the undersigned, Decorize, Inc., a Delaware corporation (hereinafter
      “Borrower”), hereby promises to pay to the order of James K. Parsons
      (hereinafter “Creditor”), the principal sum of One Million Dollars ($1,000,000),
      with interest thereon from the date hereof at a rate per annum that is one
      and a
      quarter percent (1.25%) in excess of the prime rate of Liberty Bank from time
      to
      time (the “Prime Rate”), said rate to change as and when said Prime Rate
      changes, on the terms set forth below.

    

    This
      Fourth Amended and Restated Promissory Note (this “Note”) is issued in
      replacement of and substitution for that Third Amended and Restated Promissory
      Note in the original principal amount of $1,000,000, issued on July 31, 2006
      (the “Existing Note”), which was issued in replacement of and substitution for
      that certain Second Amended and Restated Promissory Note in the original
      principal amount of $1,000,000, issued on August 27, 2004, which was in turn
      issued in replacement of and substitution for that certain Amended and Restated
      Line of Credit Promissory Note in the original principal amount of $1,000,000,
      issued on December 10, 2003, which was in turn issued in replacement of and
      substitution for that certain Line of Credit Promissory Note in the original
      principal amount of $800,000 issued on October 1, 2003 (the “Original Note”).
      Upon issuance of this Note, the Existing Note shall be of no further force
      or
      effect, and shall be deemed amended and restated in its entirety by this
      Note.

    

    This
      Note
      is secured by, and is entitled to the benefits of, that certain First Amended
      and Restated Subordinated Security Agreement dated as of August 27, 2004,
      executed by Borrower in favor of Creditor (the “Security Agreement”). In
      furtherance of its obligations under this Note and the Security Agreement,
      Borrower covenants and agrees that it shall not grant any liens or encumbrances
      with respect to its physical inventory located in the State of Missouri, except
      for any such liens or encumbrances that exist as of the date of this Note or
      that relate to any indebtedness described in any of subparts (i) to (vi) of
      the
      definition of “Senior Indebtedness” set forth in Section 3 of the Security
      Agreement (collectively, the “existing Liens”), including any that may exist now
      or in the future with respect to any amendments, continuations or refinancing
      of
      the debt under which any of the Existing Liens have been created.

    

    All
      payments received with respect to this Note shall first be applied to interest
      accrued on the principal balance, and the remainder shall be applied to
      principal.

    

    Accrued
      interest on the outstanding principal balance of this Note shall be due and
      payable in monthly installments on the 1st
      day of
      each calendar month during the term hereof. Subject to the foregoing sentence,
      the entire balance of unpaid principal, plus all accrued interest thereon,
      shall
      be due and payable on July 31, 2009 (the “Maturity Date”); provided, however,
      that the Borrower may elect to repay all amounts due on the Maturity Date in
      three (3) equal installments made on the first day of the first, third and
      sixth
      calendar months following the Maturity Date, together in each case with interest
      on such amount, calculated at the then effective Prime Rate.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Borrower
      hereby waives presentment, demand for payment, notice of dishonor, and all
      other
      notices and demands in connection with the delivery, acceptance, performance,
      default or endorsement of this Note.

    

    Should
      any of the following events occur (an “Event of Default”) Borrower shall be in
      default hereunder: (a) if a payment of principal of, or interest accrued on,
      this Note is not paid when same becomes due; provided, however, that an Event
      of
      Default shall not be deemed to have occurred until the expiration of a sixty
      (60) day period commencing on the date written notice is delivered to Borrower
      of such non-payment; or (b) if Borrower (i) shall voluntarily suspend the
      transaction of its business or if Borrower shall make a general assignment
      for
      the benefit of creditors, (ii) shall be adjudicated a bankrupt, or shall file
      a
      voluntary petition in bankruptcy or for a reorganization or to effect a plan
      or
      other arrangement with its creditors, or if the Borrower shall file an answer
      to
      a creditor’s petition or other petition against it (admitting the material
      allegations thereof) for an adjudication in bankruptcy or for a reorganization,
      or (iii) shall apply for or permit the appointment of a receiver, trustee,
      or
      custodian for any substantial portion of its properties or assets; or (c) if
      bankruptcy, reorganization or liquidation proceedings are instituted against
      Borrower and remain undismissed for ninety (90) days.

    

    In
      the
      event of default, Borrower agrees to pay all costs of collection, including
      a
      reasonable attorney fee, if this Note is placed in the hands of an attorney
      for
      collection or if suit is filed hereon.

    

    Borrower
      shall have the privilege of making cash payments in addition to those called
      for
      in this Note at any time without penalty.

    

    Payments
      on this Note shall be paid to Creditor at 1938 E. Phelps, Springfield, Missouri
      65802, or such other address as he or any other holder of this Note may direct
      in writing.

    

    Pursuant
      to RSMo. § 432.045, the Creditor hereby gives the following notice to the
      Borrower:

    

    “Oral
      agreements or commitments to loan money, extend credit or to forbear from
      enforcing repayment of a debt including promises to extend or renew such debt
      are not enforceable. To protect you (borrower) and me (creditor) from
      misunderstanding or disappointment, any agreements we reach covering such
      matters are contained in this writing, which is the complete and exclusive
      statement of the agreement between us, except as we may later agree in writing
      to modify it.”

    

    IN
      WITNESS WHEREOF, the Borrower, by its duly authorized officer, and the Creditor
      have executed this Note as of the date first set forth above.

    

    
      	Borrower	 	
              Creditor

            
	Decorize,
              Inc.	 	
              James
                K. Parsons

            
	 	 	 	 
	
              By:

            	
              /s/
                Steve Crowder

            	 	
              /s/
                James K. Parsons

            
	Name:
              Steve Crowder	 	 
	Title:
              PresidentMODIFICATION
      AGREEMENT

    

    THIS
      AGREEMENT,
      dated
      effective as of the 1st
      day of
      April, 2008, by and among DECORIZE, INC., a Delaware corporation (“Borrower”)
      and QUEST COMMERCIAL FINANCE, L.L.C., a Missouri limited liability company
      (“Lender”)

    

    WHEREAS,
      on or
      about May 5, 2006, Borrower executed and delivered to Lender a Revolving Line
      of
      Credit Promissory Note in the principal sum of Seven Hundred Fifty Thousand
      Dollars ($750,000.00) (the “Note”), which Note is secured by a Commercial
      Security Agreement, dated May 5, 2006 (the “Security Agreement”), securing
      repayment of the Note;

    

    WHEREAS,
      the
      Note was modified pursuant to a Modification Agreement dated September 26,
      2007;

    

    WHEREAS,
      the
      parties desire to amend the Note so that the interest payable on the Note shall
      accrue at the prime rate per annum as from time to time published by the Wall
      Street Journal; and

    

    WHEREAS,
      the
      parties desire to amend the Note so that the accrued interest on the unpaid
      principal balance from time to time outstanding during the period from the
      effective date of this Note through and including December 31, 2008 shall be
      due
      and payable on January 1, 2009; and

    

    WHEREAS,
      the
      parties desire to amend the Note so that the accrued interest on the unpaid
      principal balance from time to time outstanding after December 31, 2008 shall
      be
      due and payable on the first day of each month commencing February 1,
      2009.

    

    NOW,
      THEREFORE,
      inconsideration of the premises and mutual covenants herein contained and agreed
      to be kept, the parties hereto do agree as follows:

    

    
      	 	
              1.

            	
              Modification
                of Interest Rate.
                Effective April 1, 2008, the Note shall accrue interest at the prime
                rate
                per annum as from time to time published by the Wall Street
                Journal.

            

    

    

    
      	 	
              2.

            	
              Modification
                of Payment Terms.
                On January 1, 2009, Borrower shall pay lender all accrued unpaid
                interest
                on the outstanding principal balance through December 31, 2008. On
                the
                first day of each calendar month thereafter, Borrower shall pay Lender
                all
                accrued unpaid interest on the outstanding principal balance as of
                the
                last day of the immediately preceding calendar
                month.

            

    

    

    
      	 	
              3.

            	
              No
                Other Modification.
                The modification and amendments to the Note set forth in this Extension
                and Modification Agreement shall only modify and amend the Note to
                the
                extent necessary to give effect to such modification and amendment,
                and,
                except as otherwise provided in this Agreement, the Note and Security
                Agreement shall continue to bind the parties to such documents and
                be in
                full force and effect in accordance with their original terms as
                of their
                effective dates.

            

    

    

    
      	 	
              4.

            	
              Representations
                and Warranties.
                When Borrower signs this Agreement, Borrower represents and warrants
                to
                Lender that: (a) there is no event which is, or with notice or lapse
                of
                time or both would be, a default under the Note or Security Agreement
                (collectively, the “Loan Documents”) except those events, if any, that
                have been disclosed in writing to Lender or waived in writing by
                Lender,
                (b) the representations and warranties in the Agreement are true
                as of the
                date of this Agreement as if made on the date of this Agreement,
                (c) this
                Agreement does not conflict with any law, agreement, or obligation
                by
                which Borrower is bound, and (d) this Agreement is within Borrower’s
                powers, has been duly authorized, and does not conflict with any
                of
                Borrower’s organizational papers.

            

    

     

    
      
        
        

      

      
        Page 1 of 3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              5.

            	
              Counterparts.
                This Agreement may be executed in counterparts, each of which when
                so
                executed shall be deemed an original, but all such counterparts together
                shall constitute but one and the same
                instrument.

            

    

    

    
      	 	
              6.

            	
              General
                Provisions.
                

            

    

    

    
      	 	
              a.

            	
              Headings.
                The headings, captions and arrangements used in this Agreement are,
                unless
                specified otherwise, for convenience only and shall not be deemed
                to
                limit, amplify or modify the terms of the Agreement, nor effect the
                meaning hereof.

            

    

    

    
      	 	
              b.

            	
              Survival.
                All agreements, covenants, undertakings, representations and warranties
                made in this Agreement shall survive the execution
                hereof.

            

    

    

    
      	 	
              c.

            	
              Governing
                Law. This Agreement is being executed and delivered and is intended
                to be
                performed in the State of Missouri, and the substantive laws of such
                state
                shall govern the validity, construction, enforcement and interpretation
                of
                the Agreement and any related documents, unless otherwise specified
                therein.

            

    

    

    
      	 	
              d.

            	
              Attorney’s
                Fees and Costs. In the event that any dispute arises between the
                parties
                hereto relating to the interpretation, enforcement or performance
                of this
                Agreement, and such matter is referred to an attorney for resolution,
                the
                prevailing party shall be entitled to collect from the losing party
                any
                attorney’s fees together with any costs and expenses in the event of
                litigation.

            

    

    

    
      	 	
              e.

            	
              Assignment.
                This Agreement shall be binding upon and inure to the benefit of
                each
                party hereto, and its respective successors and
                assigns.

            

    

    

    
      	 	
              7.

            	
              Final
                Agreement.
                By signing this document each party represents and agrees that: (a)
                this
                document represents the final agreement between the parties with
                respect
                to the subject matter hereof, (b) this document supersedes any term
                sheet
                or other written outline of the terms and conditions relating to
                the
                subject matter hereof, unless such term sheet or other written outline
                of
                terms and conditions expressly provides to the contrary, (c) there
                are no
                unwritten oral agreements between the parties, and (d) this document
                may
                not be contradicted by evidence of any prior, contemporaneous, or
                subsequent oral agreements or understandings of the
                parties.

            

    

    

    ORAL
      AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM
      ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT
      ARE NOT ENFORCEABLE. TO PROTECT YOU (BORROWER) AND US (CREDITOR) FROM
      MISUNDERSTANIDNG OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH
      MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE
      STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING
      TO MODIFY IT.

     

    
      
        
        

      

      
        Page 2 of 3

        
          

        

      

      
        
        

      

    

     

    This
      Agreement is executed as of the date stated at the beginning of this
      Agreement.

     

    
      	
              DECORIZE,
                INC.

            	 	
              QUEST
                COMMERCIAL FINANCE, L.L.C.

            	 
	
              a
                Delaware corporation

            	 	
              a
                Missouri limited liability company

            	 
	 	 	 	 	 	 
	
              By:

            	
              /s/
                Steve Crowder

            	 	
              By:

            	
              /s/
                Steve Fox

            	 
	
              Name:
                Steve Crowder

            	 	Name:
              Steve Fox	 
	
              Title:
                President

            	 	Title:
              General Manager	 

    

     

    
      
        
        

      

      
        Page 3 of 3

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