Document:

EXTENSION
      AND MODIFICATION AGREEMENT

    

    THIS
      AGREEMENT,
      dated
      effective as of the 15th
      day of
      March, 2008, by and among DECORIZE, INC. (“Borrower”) and QUEST CAPITAL ALLIANCE
      II, L.L.C. (“Lender”)

    

    WHEREAS,
      on or
      about September 11, 2006, Borrower executed and delivered to Lender a Promissory
      Note in the principal sum of Seven Hundred Fifty Thousand Dollars ($750,000.00)
      (the “Note”), which Note is secured by a Security Agreement, dated September 11,
      2006 (the “Security Agreement”), securing repayment of the Note;

    

    WHEREAS,
      the
      Note was modified pursuant to a Modification Agreement dated March 15,
      2007;

    

    WHEREAS,
      the
      Note is due and payable in full on March 15, 2008;

    

    WHEREAS,
      the
      parties desire to extend the Note so that the principal sum shall be due and
      payable in full on March 15, 2009; and

    

    WHEREAS,
      the
      parties desire to amend the Note so that the interest payable on the Note shall
      accrue at the rate of 9 3⁄4% per annum.

    

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

    

    
      	 	
              1.

            	
              Extension.
                The parties hereby agree that the Note shall be extended so that
                the
                outstanding principal of the Note and all other amounts then owing
                by
                reason of this Note or the Security Agreement or any other agreement
                given
                in connection with or as security for the Note shall be due and payable
                in
                full on March 15, 2009. The parties hereby agree that the accrued
                interest
                on the principal sum outstanding from time to time shall continue
                to be
                due and payable on the last day of each calendar month during the
                term of
                the Note.

            

    

    

    
      	 	
              2.

            	
              Modification
                of Interest Rate.
                Effective March 15, 2008, the Note shall accrue interest at the rate
                of
                Nine and three-quarters percent (9.75%) per
                annum.

            

    

     

    
      	 	
              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.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              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.

    

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

     

    
      	
              DECORIZE,
                INC.

            	 	
              QUEST
                CAPITAL ALLIANCE II, L.L.C.

            
	 	 	 
	 	 	 
	
              By:

            	
              /s/
                Steve Crowder

            	 	
              By:

            	
              /s/
                Steve Fox

            	 
	
              Name:
                Steve Crowder
	 	
              Name:
                Steve Fox

            
	
              Title:
                President

            	 	
              Title:
                General ManagerSTOCK
      EXCHANGE AGREEMENT

    

    THIS
      STOCK EXCHANGE AGREEMENT (the “Agreement”), dated as of the 1st
      day of
      April, 2008, is by and between Decorize, Inc., a Delaware corporation (the
      “Company”), and Quest Capital Alliance II, L.L.C., a Missouri limited liability
      company (“Quest”).

    

    WHEREAS,
      on September 11, 2006, the Company issued to Quest that certain Promissory
      Note
      in the original principal amount of $750,000.00, which was amended by that
      certain Extension and Modification Agreement (collectively, the “Note”);
      and

    

    WHEREAS,
      the Company desires to issue and sell to Quest, and Quest desires to purchase
      from the Company, 500,000 shares (the “Shares”) of the common stock, $0.001 par
      value per share, of the Company (“Common Stock”), in exchange for a reduction of
      the principal balance of the Note, as further set forth below;

    

    NOW,
      THERFORE, in consideration of the premises and the mutual covenants and
      agreements herein contained, the parties hereto agree as follows:

    

    1.  
       PURCHASE
      AND SALE

    

    1.1.    Sale
      of Shares.
      Upon
      the terms and subject to the conditions set forth in this Agreement, the Company
      hereby agrees to issue the Shares to Quest upon the receipt of the consideration
      described herein, and Quest hereby agrees to purchase from the Company, all
      right, title and interest in and to all of the Shares, free of all liens, claims
      and encumbrances.

    

    1.2.    Consideration.
      The
      aggregate purchase price for the Shares is the sum of $100,000.00 (the “Purchase
      Price”), at a price of $0.20 per share, which shall be paid by applying the
      Purchase Price against the outstanding principal balance of the Note. The
      reduction in the outstanding principal balance of the Note shall be evidenced
      by
      the issuance of an Amended and Restated Promissory Note, in the form of Exhibit
      A to this Agreement (the “New Note”), which shall be issued in full replacement
      and substitution for the Note. Upon issuance of the New Note and the Shares,
      the
      Note shall cease to be of any further force or effect.

    

    1.3.    Closing
      Procedure.
      Concurrent with the execution of this Agreement, the Company shall deliver
      to
      Quest stock certificate(s) representing the Shares, issued in the name of Quest
      and this Agreement (the “Closing Documents”). All actions taken on the date
      hereof with respect to the transactions contemplated hereunder shall be deemed
      to have been taken simultaneously at the time the last of any such actions
      is
      taken or completed.

     

    1.4.    Removal
      of Restrictive Legends.
      In
      connection with any proposed sale of the Shares, any legend endorsed on a
      certificate pursuant to Section 3.2(d) and any related stop transfer
      instructions with respect to any Shares shall be removed, and the Company shall
      within ten (10) business days request its transfer agent to issue promptly
      a
      certificate without such legend to the holder thereof, if (i) such Shares shall
      be registered under the Securities Act of 1933, as amended (the “Securities
      Act”), (ii) such legend may be properly removed under the terms of Rule 144
      under the Securities Act or (iii) such holder shall provide the Company with
      an
      opinion of counsel, satisfactory to the Company, to the effect that a sale,
      transfer or assignment of such Shares may be made pursuant to Rule 144(k) under
      the Securities Act.

    
      
        
        

      

      
        Page
          1 of 6

        
          

        

      

      
        
        

      

    

     

    2.   
      REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY.
      The
      Company hereby represents and warrants to Quest as follows:

    

    2.1.    Organization
      and Good Standing.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware, and has all necessary corporate power
      and authority to own or lease its assets and to carry on its business as now
      being conducted and presently proposed to be conducted. The Company is duly
      qualified to do business as a foreign corporation and is in good standing in
      each jurisdiction in which its ownership or leasing of assets, or the conduct
      of
      its business, makes such qualification necessary, except where the failure
      to be
      so qualified would not result in a material and adverse change in the business,
      assets, financial condition, results of operations, affairs or prospects of
      the
      Company and its subsidiaries, taken as a whole (“Material Adverse Change”).
      Except for any subsidiaries disclosed in its SEC Documents (as defined in
      Section 2.3), the Company has no subsidiaries and no equity interests in any
      corporation, partnership, joint venture or other entity.

    

    2.2.    Requisite
      Power and Authorization.
      The
      Company has all necessary corporate power and authority to execute and deliver
      the Closing Documents and to perform its obligations under each of the Closing
      Documents, including without limitation the issuance of the Shares hereunder.
      All corporate actions of the Company required for the execution and delivery
      of
      the Closing Documents and the issuance and delivery of the Shares has been
      duly
      and effectively taken, and no further actions, authorizations or consents,
      including, without limitation, any consents of the stockholders of the Company,
      are required. Each of the Closing Documents constitutes the valid and binding
      obligation of the Company, enforceable against the Company in accordance with
      its terms, except (i) as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or other laws of general application affecting
      enforcement of creditor’s rights, and (ii) as limited by general principles of
      equity that restrict the availability of equitable remedies.

     

    2.3.    SEC
      Documents.
      The
      Company has filed with the Securities and Exchange Commission (the “SEC”) all
      reports, statements, schedules and other documents (collectively, the “SEC
      Documents”) required to be filed by it pursuant to the Securities Act and the
      Securities Exchange Act of 1934 (the “Exchange Act”). As of their respective
      dates, the SEC Documents complied in all material respects with the requirements
      of the Securities Act or the Exchange Act, as the case may be, and the rules
      and
      regulations of the SEC promulgated thereunder, and none of the SEC Documents,
      at
      the time they were filed with the SEC, contained any untrue statement of a
      material fact or omitted to state a material fact required to be stated therein
      or necessary in order to make the statements therein, in light of the
      circumstances under which they were made, not misleading. As of their respective
      dates, the financial statements included in the SEC Documents (the “Financial
      Statements”) complied as to form in all material respects with applicable
      accounting requirements and the published rules and regulations of the SEC
      with
      respect thereto. Except (i) as may be indicated in the notes to the Financial
      Statements or (ii) in the case of the unaudited interim statements, as permitted
      by Form 10-QSB under the Exchange Act, the Financial Statements have been
      prepared in accordance with generally accepted accounting principles
      consistently applied and fairly present in all material respects the financial
      position of the Company and its subsidiaries as of the dates thereof and the
      results of its operations and cash flows for the periods then ended (subject,
      in
      the case of unaudited statements, to normal recurring year-end adjustments
      and
      footnotes). Except as set forth in the Financial Statements filed with the
      SEC
      prior to the date hereof, neither the Company nor any of its subsidiaries has
      any liabilities, whether absolute, contingent or otherwise, other than (i)
      liabilities incurred in the ordinary course of business subsequent to the date
      of such Financial Statements, (ii) obligations under contracts and commitments
      incurred in the ordinary course of business and not required under generally
      accepted accounting principles to be reflected in such Financial Statements,
      which liabilities and obligations referred to in clauses (i) and (ii),
      individually or in the aggregate, are not material to the financial condition
      or
      operating results of the Company or any of its subsidiaries and (iii)
      liabilities and obligations incurred in connection with the Closing Documents
      and the transactions contemplated thereby.

    
      
        
        

      

      
        Page
          2 of 6

        
          

        

      

      
        
        

      

    

    

    2.4.    No
      Conflicts.
      Neither
      the execution, delivery and performance by the Company of this Agreement, the
      other Closing Documents, and all instruments and documents to be delivered
      by
      the Company, nor the consummation of the transactions contemplated by any of
      the
      foregoing (i) has constituted or resulted in, or will constitute or result
      in, a
      default under or breach or violation of any term or provision of the Certificate
      of Incorporation or bylaws of the Company, as amended, or material contracts
      or
      instruments to which the Company or any of its subsidiaries is a party or
      federal, state or local laws, rules or regulations, writs, orders, judgments
      or
      decrees which are applicable to the Company, any of its subsidiaries or their
      assets, (ii) will result in the acceleration or termination of any rights under
      any contract or instrument to which the Company or any of its subsidiaries
      is a
      party or (iii) will result in the creation or imposition of any liens, charges
      or encumbrances upon any assets of the Company or any of its
      subsidiaries.

     

    2.5.    Consents.
      No
      approval, consent, order, authorization or other action by, or notice to or
      filing with, any governmental authority or regulatory agency or any other person
      or entity, and no lapse of a waiting period, is required in connection with
      the
      execution, delivery or performance by the Company of this Agreement, any other
      Closing Document, the issuance and delivery of any of the Shares or any other
      transactions contemplated by any of the Closing Documents except for filings
      required under applicable state “blue sky” laws (which shall be duly filed and
      effective prior to the issuance of the Shares if so required under such
      laws).

     

    2.6.    No
      Material Adverse Change.
      Since
      the date of the most recent SEC Documents, the business of the Company and
      each
      subsidiary has been operated in the ordinary course and substantially consistent
      with past practice and there has not been any Material Adverse
      Change.

     

    2.7.    Litigation.
      There
      is no claim, action, suit, proceeding or investigation pending or to the
      Company’s knowledge, currently threatened against the Company or any of its
      subsidiaries, or any of their respective directors or officers, in their
      capacities as such, (i) that questions the validity of this Agreement or any
      other Closing Document or the issuance of the Shares, or the right of the
      Company to enter into this Agreement or any other Closing Document or to
      consummate the transactions contemplated by any Closing Document or (ii) that
      might result, either individually or in the aggregate, in any Material Adverse
      Change or in any change in the current equity ownership of the
      Company.

    
      
        
        

      

      
        Page
          3 of 6

        
          

        

      

      
        
        

      

    

     

    2.8.    Validity
      of Shares.
      The
      Shares, when issued by the Company to Quest upon payment in full of the Purchase
      Price, will be validly issued, fully paid and non-assessable.

    

    3.   
      REPRESENTATIONS
      AND WARRANTIES OF QUEST.
      Quest
      represents and warrants to the Company as follows:

    

    3.1.    Due
      Authorization.
      Quest
      has full capacity to enter into this Agreement and to carry out its obligations
      hereunder. This Agreement has been duly executed and delivered by Quest and
      constitutes the legal, valid and binding obligations of Quest, enforceable
      against it in accordance with its terms.

    

    3.2.    Investment
      Representations.
      Quest
      further represents and warrants as follows:

    

    
      	
            	3.2.1.	
              Quest
                is purchasing the Shares for their own account and not with a view
                to
                resale or redistribution in a manner which would require registration
                under the Securities Act, or any state securities laws, or for sale
                in
                connection with a “distribution” as that term is used in Section 2(11) of
                the Securities Act, of the shares.

            

    

    

    3.2.2. 
      Quest
      understands that the Shares are not registered under the Securities Act or
      the
      securities laws of any state and may not be disposed of in whole or in part
      in
      the absence of registration under the Securities Act or any state securities
      laws, unless an exemption from registration is available.

    

    3.2.3. 
      Quest
      understands that there is a very limited public market for the Shares and it
      may
      not be possible for Quest to readily liquidate its investment. As a consequence,
      Quest may never be able to sell or dispose of such Shares and may thus have
      to
      bear the risk of investment in such Shares for a substantial period of time.
      Quest has adequate means of providing for its current and future contingencies
      and has no need for liquidity with regard to its investment in the
      Shares.

    

    3.2.4. 
      Quest
      has
      been informed and understands that the Shares, upon issue, will have such
      restrictive legends as are required by law or as the Company may otherwise
      determine.

    

    3.2.5. 
      Quest
      has
      such knowledge and experience in financial and business matters that it is
      capable of evaluating the merits and risks of an investment in the Shares and
      making an informed decision with respect to the purchase of the Shares. Quest
      is
      not relying upon any representation or warranty by the Company with respect
      to
      the value of the Shares, and accordingly no such representations or warranties
      are made.

    

    3.2.6. 
      Quest
      has
      had an opportunity to ask questions of and receive satisfactory answers from
      the
      Company, or any person or persons acing on the Company’s behalf, concerning the
      terms and conditions of this investment and all such questions have been
      answered to the full satisfaction of Quest.

    
      
        
        

      

      
        Page
          4 of 6

        
          

        

      

      
        
        

      

    

     

    4.   
      MISCELLANEOUS
      PROVISIONS

    

    4.1.    Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors, heirs and assigns.

    

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

     

    4.3.    Entire
      Agreement.
      This
      Agreement and the documents referred to herein contain the entire understanding
      of the parties hereto in respect of the subject matter contained herein. There
      are no restrictions, promises, warranties, conveyances or undertakings other
      than those expressly set forth herein. This Agreement supersedes any prior
      agreements and understandings between the parties with respect to the subject
      matter of this Agreement.

     

    4.4.    Modification.
      No
      change or modification of this Agreement shall be valid or binding upon the
      parties hereto, nor shall any waiver of any term or condition in the future
      be
      so binding, unless such change or modification or waiver shall be in writing
      and
      signed by the parties hereto.

     

    4.5.    GOVERNING
      LAW; VENUE.
      NOTWITHSTANDING THE PLACE WHERE THIS AGREEMENT MAY BE EXECUTED BY ANY OF THE
      PARTIES HERETO, THE PARTIES EXPRESSLY AGREE THAT THIS AGREEMENT SHALL BE
      GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF DELAWARE AS APPLIED
      TO
      AGREEMENTS AMONG DELAWARE RESIDENTS ENTERED INTO AND TO BE PERFORMED ENTIRELY
      WITHIN DELAWARE, WITHOUT REGARD TO THE CONFLICT OF LAW PROVISIONS OF SUCH
      JURISDICTION. VENUE FOR ANY ACTION TO ENFORCE, INTERPRET OR RESOLVE ANY DISPUTE
      WITH RESPECT TO ANY PROVISION OF THIS AGREEMENT SHALL BE EXCLUSIVELY IN GREENE
      COUNTY, MISSOURI, AND ALL PARTIES HERETO AGREE THAT ANY LITIGATION DIRECTLY
      OR
      INDIRECTLY RELATING TO THIS AGREEMENT MUST BE BROUGHT BEFORE AND DETERMINED
      BY A
      COURT OF COMPETENT JURISDICTION WITHIN SUCH COUNTY AND STATE. EACH OF THE
      PARTIES FURTHER ACKNOWLEDGE THAT SUCH VENUE IS APPROPRIATE AND AGREE NOT TO
      RAISE ANY ARGUMENT THAT SUCH VENUE IS IN ANY WAY UNDULY INCONVENIENT FOR ANY
      OF
      THEM, WITH THEIR EXECUTION HEREOF BEING EVIDENCE OF THEIR AGREEMENT TO SUBMIT
      TO
      THE JURISDICTION OF SUCH COURTS.

    
      
        
        

      

      
        Page
          5 of 6

        
          

        

      

      
        
        

      

    

     

    IN
      WITNES
      WHEREOF, the parties hereto have executed this Agreement as of the date first
      written above.

     

    
      

        
          	
                  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 Manager

                

        
  

    

    
      
        
        

      

      
        Page
          6 of 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]