Document:

DECORIZE,
      INC.

    AMENDED
      AND RESTATED PROMISSORY NOTE

     

    
      	
              $650,000

            	
              Springfield,
                Missouri

            
	 	
              April
                1, 2008

            

    

     

    FOR
      VALUE
      RECEIVED, the undersigned, Decorize, Inc., a Delaware corporation (hereinafter
      “Borrower”), hereby promises to pay to the order of Quest Capital Alliance II,
      L.L.C., a Missouri limited liability company (hereinafter “Creditor”), the
      principal sum of Six Hundred Fifty Thousand Dollars ($650,000), together with
      interest on the unpaid principal balance thereof as hereinafter set forth in
      his
      Note. Both principal and interest are payable as herein provided in lawful
      money
      of the Untied States of America at the address provided by the 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
      Amended and Restated Promissory Note (this “Note”) is issued in replacement of
      and substitution for that certain Promissory Note in the original principal
      amount of $750,000, which was issued on September 11, 2006 (the “Existing
      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.

    

    The
      Existing Note was executed and delivered in conjunction with that certain
      Commercial Security Agreement dated September 11, 2006 (the “Existing Security
      Agreement”). Upon issuance of this Note the Existing Security Agreement shall be
      of no further force or effect.

    

    Interest
      shall accrue on the unpaid principal balance of this Note at the prime rate
      per
      annum as published by the Wall Street Journal.

    

    The
      entire balance of unpaid principal, plus all unpaid accrued interest thereon
      shall be due and payable on March 15, 2009.

    

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

    

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

    

    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.

    

    Payments
      on this Note shall be paid to Creditor at 3140 E. Division Street, 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.

            	
              Quest
                Capital Alliance II, L.L.C.

            
	
              a
                Delaware corporation

            	
              a
                Missouri limited liability company

            
	 	 
	 	 
	
              By:

            	
              /s/
                Steve Crowder

            	 	
              By:

            	
              /s/
                Steve Fox

            	 
	 	
              Steve
                Crowder

            	 	 	
              Steven
                Fox

            	 
	 	
              President

            	 	 	
              General
                ManagerSUBORDINATED
      PROMISSORY NOTE PAYOFF AGREEMENT

    

    THIS
      PAYOFF AGREEMENT
      (the
“Agreement”), dated effective as of the 21st
      day of
      April, 2008, by and among DECORIZE, INC. (“Borrower”) and JON T. BAKER
      (“Creditor”).

    

    WHEREAS,
      on or
      about January 30, 2004, Borrower executed and delivered to Creditor a
      Subordinated Promissory Note (the “Note”) in the principal sum of Fifty-Six
      Thousand Four Hundred Fifty-One Dollars ($56,451.00);

    

    WHEREAS,
      the
      Note matured on December 31, 2004 and, pursuant to the terms of the Note, the
      Company is indebted to the Creditor in the principal amount of $56,451.00 plus
      accrued unpaid interest (the “Outstanding Debt”);

    

    WHEREAS,
      in
      connection with certain financing transactions and debt modifications now being
      contemplated by the Company, the Company has requested the Creditor to accept,
      and the Creditor has agreed to accept, the Payoff Consideration (as defined
      below) in full and complete satisfaction of the Outstanding Debt, on the terms
      and subject to the conditions set forth in this Agreement.

    

    NOW,
      THEREFORE,
      in
      consideration of the payment of the Payoff Consideration, the terms and
      conditions contained in this Agreement, and other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereby covenant and agree as follows:

    

    
      	 	
              1.

            	
              Payoff.
                On, or prior to, April 30, 2008 (the “Payment Date”), the Borrower shall
                pay Creditor Twenty Thousand Dollars ($20,000.00) (the “Payoff
                Consideration”) in full satisfaction of the Outstanding
                Debt.

            

    

    

    
      	 	
              2.

            	
              Note
                Termination.
                Upon delivery of the Payoff Consideration, the Creditor shall deliver
                to
                the Borrower the executed original Note (or, if not available, a
                lost note
                affidavit) and the Note shall be terminated effective as of the Payment
                Date, and the parties shall have no further obligations with respect
                to
                the Note or liabilities related thereto. Any further rights, interests
                or
                claims related to the Note are waived and released effective upon
                receipt
                by Creditor of the Payoff
                Consideration.

            

    

    

    
      	 	
              3.

            	
              Representations
                and Warranties of the Borrower.
                The Borrower hereby represents and warrants to the Creditor that
                on and as
                of the date hereof:

            

    

    

    
      	 	
              a.

            	
              The
                Borrower has been duly incorporated and is validly existing and in
                good
                standing under the laws of Delaware, and has full power and authority
                to
                enter into and perform its obligations under this
                Agreement.

            

    

    

    
      	 	
              b.

            	
              The
                Borrower is not in violation of its certificate of incorporation
                or bylaws
                or in default under any agreement, indenture, document or instrument,
                the
                effect of which or default would have a material adverse effect on
                the
                ability of the Borrower to perform its obligations under this
                Agreement.

            

    

    

    
      	 	
              c.

            	
              No
                authorization, consent or approval of, or filing with, any court
                or any
                public body or authority and no consent or approval of any third
                party or
                parties is necessary on the part of the Borrower for the execution,
                delivery and performance of this Agreement, other than those consents,
                approvals or filings, if any, which have already been
                obtained.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              4.

            	
              Representations
                and Warranties of the Creditor.
                The Creditor hereby represents and warrants to the Borrower as
                follows:

            

    

    

    
      	 	
              a.

            	
              The
                Creditor has full power and authority to enter into and perform its
                obligations under this Agreement.

            

    

    

    
      	 	
              b.

            	
              This
                Agreement has been duly authorized and validly executed by the Creditor.
                This Agreement constitutes a legal, valid, binding and enforceable
                agreement of the Creditor.

            

    

    

    
      	 	
              c.

            	
              The
                Creditor has not transferred the Note or any part of its interest
                in the
                Note, and the Creditor is the holder of the Note free and clear of
                all
                liens, pledges and security
                interests.

            

    

    

    
      	 	
              5.

            	
              Indemnification.
                The Borrower agrees to indemnify and hold harmless the Creditor from
                and
                against any and all actions, causes of action, suits, losses, liabilities
                and damages, and all expenses in connection therewith, as incurred,
                including without limitation, reasonable attorneys’ fees and
                disbursements, incurred in the investigation and defense of claims
                and
                actions, incurred by the Creditor as a result of any matter arising
                out of
                or relating to this Agreement. The Creditor agrees to indemnify and
                hold
                harmless the Borrower from and against any and all actions, causes
                of
                action, suits losses, liabilities and damages, and all expenses in
                connection therewith, as incurred, including without limitation,
                reasonable attorneys’ fees and disbursements, incurred in the
                investigation and defense of claims and actions incurred by the Borrower
                as a result of any matter arising out of or relating to this
                Agreement.

            

    

    

    
      	 	
              6.

            	
              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.

            

    

    

    
      	 	
              7.

            	
              General
                Provisions.

            

    

    

    
      	 	
              a.

            	
              Headings.
                The heading, 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.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              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.

            

    

    

    
      	 	
              8.

            	
              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.

            

    

    

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

    

    
      	
              DECORIZE,
                INC.

            	 	
              JON
                T. BAKER

            	 
	
              (“Borrower”)

            	 	
              (“Creditor”)

            	 
	 	 	 	 	 	 
	
              By:

            	
              /s/
                Steve Crowder

            	 	
              By:

            	
              /s/
                Jon T. Baker

            	 
	
              Name:
                Steve Crowder

            	 	
              Name:
                Jon T. Baker

            	 
	
              Title:
                President

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