Document:

Exhibit 10.2

                              EMPLOYMENT AGREEMENT

         This Agreement  ("Agreement") effective this 31st day of July, 2001, by
and between Decorize,  Inc., a Delaware  corporation  ("Corporation"),  and John
Michael Sandel ("Employee").

         WHEREAS,  the Corporation is engaged in the manufacturing and marketing
of innovative and  fashion-forward  decorative  accessories,  accent  furniture,
lamps and wall decor; and

         WHEREAS,  in accordance  with the provisions of that certain  Agreement
and Plan of Merger dated July 31, 2001, by and among Faith Walk Designs, Inc., a
Missouri  corporation ("Faith Walk Designs"),  Step of Faith, Inc., a subsidiary
of the Corporation ("Step of Faith"), John Michael Sandel, Kitty Sandel, and the
Corporation,  of even date herewith, Faith Walk Designs has merged with and into
Step of Faith,  and  following  the  merger,  Step of Faith  shall  operate  the
business conducted by Faith Walk Designs prior to the merger; and

         WHEREAS, the Corporation desires to retain the services of the Employee
in the capacity of its Vice-President;

         NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

         Section 1.  Employment.  The Corporation  agrees to employ the Employee
and the Employee agrees to accept the employment described in this Agreement.

         Section 2. Duties.  The Employee  shall serve as Vice  President of the
Corporation,  with such duties as are customarily associated with such position.
The Employee shall be responsible for product  development,  strategic planning,
and implementation of the Corporation's business.

         Section 3. Extent of Services.  The Employee  shall devote the majority
of his working time,  attention,  and energies to the  performance of his duties
described herein.  The Employee shall at all times faithfully and to the best of
his  ability  perform  his duties  under  this  Agreement.  The duties  shall be
rendered at the Corporation's office in Springfield,  Missouri, or at such other
place or  places  and at such  times as the  needs of the  Corporation  may from
time-to-time dictate.

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         Section 4. Term.  The Term of this  Agreement  shall  begin on July 31,
2001  ("Effective  Date"),  and shall  continue  for a four (4) year period (the
"Term"). The parties presently  anticipate that the employment  relationship may
continue beyond this four (4) year term, however,  this Agreement shall not give
the Employee any enforceable right to employment beyond this Term.

         Section 5. Compensation.

         5.1 Base  Compensation.  The Employee will receive a base salary of One
Hundred Ten Thousand Dollars  ($110,000.00)  per year,  payable in equal monthly
installments during the Term of this Agreement. Bonuses will be paid, if at all,
in the sole discretion of the Board of Directors.

         5.2.  Benefits.  The Employee and his  immediate  family shall  receive
medical  insurance and other fringe benefits  provided to full time employees of
the Corporation.

         5.3  Expenses.   The  Corporation  shall  reimburse  the  Employee  for
reasonable  out-of-pocket  expenses  incurred by the Employee in fulfilling  his
duties.  The  Corporation  shall  provide  the  Employee  with  suitable  office
facilities, equipment, supplies and staff.

         5.4 Equity  Compensation.  In the event the Employee is employed by the
Corporation  pursuant  to the terms of this  Agreement  as of the  second  (2nd)
anniversary   date  of  this   Agreement   (hereinafter   referred   to  as  the
"Determination  Date"), as of the Determination Date the Corporation shall issue
to the  Employee  shares  of Common  Stock of the  Corporation,  fully  paid and
non-assessable  ("Bonus  Shares") having a market value as of the  Determination
Date of not less than the following  amounts,  based upon the cumulative pre-tax
profits of Step of Faith as of the Determination Date:

-------------------------------------    -------------------------------------
Cumulative Pre-Tax Profits of Step of    Market Value of Bonus Shares to be
Faith as of Determination Date           Issued to Employee
-------------------------------------    -------------------------------------
Less than $399,999.99                    -0-
-------------------------------------    -------------------------------------
$400,000.00 - $499,999.99                $50,000.00 in Common Stock of the
                                         Corporation
-------------------------------------    -------------------------------------
$500,000.00- $699,999.99                 $85,000.00
-------------------------------------    -------------------------------------
$700,000.00 or More                      $125,000.00
-------------------------------------    -------------------------------------

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         The issuance of the Bonus  Shares to the Employee  shall be governed by
the following general terms and conditions:

                  5.4.1 Bonus  Shares  shall be promptly  issued to the Employee
         after the Determination  Date and a certificate or certificates for the
         Bonus Shares shall be issued in the Employee's name. The Employee shall
         thereupon be a  shareholder  of all of the shares  represented  by said
         certificate or certificates. As such, the Employee will have all of the
         rights of a  shareholder  with  respect to such shares,  including  the
         right to vote them and to receive all dividends and other distributions
         with respect to them.

                  5.4.2  In the  event  that as of the  Determination  Date  the
         shares of the same  class as the  Bonus  Shares  are then  listed on an
         exchange,  the Corporation shall take such action as shall be necessary
         to cause any Bonus Shares  issued  pursuant to this  Agreement  and not
         previously  listed on said exchange to be listed on said exchange.  The
         Corporation  may require  that,  in  acquiring  any Bonus  Shares,  the
         Employee  agree  with,  and  represent  to,  the  Corporation  that the
         Employee is acquiring  such Bonus Shares for the purpose of  investment
         and with no present  intent to transfer,  sell or otherwise  dispose of
         such shares except for such  distribution by a legal  representative as
         shall be required by will or the laws of any jurisdiction in winding up
         the  estate  of  the  Employee.   Such  shares  shall  be  transferable
         thereafter   only  if,  in  the  opinion  of  counsel   (who  shall  be
         satisfactory to the  Corporation),  such transfer at such time complies
         with applicable securities laws.

                  5.4.3 The  cumulative  pre-tax  profits of Step of Faith means
         the non-consolidated  gross income of Step of Faith through all periods
         commencing  as of the merger of Faith Walk  Designs into Step of Faith,
         and  ending  as of the  Determination  Date,  less all  administrative,
         selling and operating expenses of every character  allocable to Step of
         Faith as determined in accordance  with generally  accepted  accounting
         principals,  consistently  applied.  The determination of the certified
         public  accountants of the  Corporation  as to the  cumulative  pre-tax
         profits  Step of  Faith  shall  be  conclusive  and  binding  upon  the
         Corporation and the Employee.

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                  5.4.4  In the  event  that as of the  Determination  Date  the
         shares of the same  class as the  Bonus  Shares  are then  listed on an
         exchange,  the "market  value" of the Bonus  Shares to be issued to the
         employee shall be the average  purchase price on the NASDAQ for the ten
         (10) days  preceding the  Determination  Date, or if not then traded or
         listed  on that  system,  on the  securities  trading  system  or stock
         exchange on which the stock is then primarily  traded or listed;  or if
         the stock is not  traded or listed on an  exchange  the  average of the
         reported high and low price on the Determination Date.

                  5.4.5 If the  Employee  dies prior to the  Determination  Date
         while in the employ of the Corporation,  the Corporation shall issue to
         his estate (or  designated  beneficiary  as provided  in Section  5.4.6
         hereof) following the Determination Date a prorata portion of the Bonus
         Shares  which would have been issued to the  Employee  had the Employee
         remained employed by the Corporation until the Determination  Date. The
         prorata  portion shall be  determined  by a fraction,  the numerator of
         which shall be the number of months the  Employee  was  employed by the
         Corporation between the date hereof and the Determination Date, and the
         denominator  of which  shall be the number of months  between  the date
         hereof and the Determination Date.

                  5.4.6 The Employee may file with the Corporation a designation
         of a  beneficiary  or  beneficiaries  on a form to be  provided  by the
         Corporation,  which  designation  may  be  changed  or  revoked  by the
         Employee's sole action, provided that the change or revocation is filed
         with the  Corporation  on a form  provided  by it. In the  event  Bonus
         Shares  are  issuable  to  the  Employee  pursuant  to  the  terms  and
         conditions  of this  Agreement,  but the  Employee  dies  prior  to the
         issuance  of the Bonus  Shares,  any  Bonus  Shares to be issued to the
         Employee  may be  delivered  to the  beneficiary  or  beneficiaries  so
         designated by the Employee or, if no beneficiary has been designated or
         survives the Employee, shall be delivered to, or in accordance with the
         directions of, the surviving spouse of the Employee, or, if there is no
         surviving spouse, the personal representative of the Employee's estate.

         Section 6. Termination.

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         6.1 For Cause. The Corporation may terminate the Employee's  employment
at any time "for cause" with immediate effect upon delivering  written notice to
the Employee.  For purposes of this  Agreement,  "for cause" shall include:  (a)
embezzlement,  theft, larceny, material fraud, or other acts of dishonesty;  (b)
conviction of or entrance of a plea of guilty or nolo  contendere to a felony or
other crime which has or may have a material  adverse  effect on the  Employee's
ability to carry out his duties under this  Agreement or upon the  reputation of
the  Corporation;  and  (c)  any  material  breach  of  any  of  the  Employee's
obligations  hereunder not cured within  fifteen (15) days after written  notice
thereof to Employee.  Upon  termination for cause,  the  Corporation's  sole and
exclusive obligation will be to pay the Employee his compensation earned through
the  date  of  termination,  and  the  Employee  shall  not be  entitled  to any
compensation after the date of termination.

         6.2 Upon Death. In the event of the Employee's death during the Term of
this  Agreement,  the  Corporation  shall be obligated to pay to the  Employee's
spouse, if living, or their beneficiary as directed in writing by Employee,  the
full  amount  of  compensation  earned  to the  date of  death.  Payment  of any
compensation  due in the event of death shall be paid within ninety (90) days of
Employee's death.

         6.3 Upon  Disability.  The  Corporation  may terminate  the  Employee's
employment upon the Employee's total disability. The Employee shall be deemed to
be totally  disabled if he is unable to perform his duties under this  Agreement
by reason of mental or physical  illness or  accident  for a period of three (3)
consecutive months. Upon termination by reason of the Employee's disability, the
Corporation  shall be  obligated  to pay to  Employee  the  compensation  earned
through the date of termination.

         6.4  Without  Cause.  The  Corporation  may  terminate  the  Employee's
employment  without cause at any time during the term of this Agreement,  and in
such event,  Corporation  shall be obligated  to pay to Employee  all  remaining
compensation due to Employee over the full Term of this Agreement whether earned
or not earned, within ninety (90) days from Termination.

         6.5  Voluntary   Termination   by  Employee.   In  the  event  Employee
voluntarily  terminates his employment with Corporation  during the Term of this
Agreement,  the Corporation's  sole and exclusive  obligation will be to pay the
Employee his compensation earned through the date of Termination.

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         Section 7. Covenant Not to Compete.

         7.1 Covenant.  During Employee's employment with Corporation and in the
event Employee  voluntarily  terminates his  employment  with  Corporation or is
terminated for Cause during the Term of this Agreement,  for a period of two (2)
years after the termination date, the Employee shall not:

                  7.1.1  directly or  indirectly,  either  individually  or as a
         principal,  partner, agent, employee, employer, joint venturer, or as a
         director or officer of any corporation or association,  or in any other
         manner or  capacity  whatsoever,  engage in,  assist or have any active
         interest in a business located anywhere in the United States of America
         that  engages in the  manufacturing  or  importing  of  innovative  and
         fashion-forward  decorative  accessories,  accent furniture,  lamps and
         wall decor, or that otherwise competes with or is substantially similar
         in concept,  design,  format, or otherwise to the business conducted by
         Corporation  on the date  hereof or at any time during the term of this
         covenant,  or that provides goods or services,  purchases from, or does
         business in any manner with Corporation.

                  7.1.2  directly or  indirectly,  either  individually  or as a
         principal,  partner, agent, employee, employer, joint venturer, or as a
         director or officer of any corporation or association,  or in any other
         manner or  capacity  whatsoever,  (a) divert or attempt to divert  from
         Corporation  any  business  with any  customer  or  account  with which
         Employee  had  any  contact  or   association,   which  was  under  the
         supervision  of  Employee,  or the  identity  of which was  learned  by
         Employee as a result of Employee's employment with the Corporation;  or
         (b)   induce   any   salesperson,    distributor,   supplier,   vendor,
         manufacturer,  representative, agent jobber or other person transacting
         business  with the  Corporation,  or to  represent,  distribute or sell
         services or products in  competition  with  services or products of the
         Corporation;  or (c) induce or cause any employee of the Corporation to
         leave the employ of the Corporation.

                  7.1.3  Notwithstanding  the above  provisions  of this current
         Section 7, the parties  agree and  acknowledge  that the conduct of the
         current  activities  of  Employee  and his  spouse,  Kitty  Sandel,  in
         connection  with PVI,  shall not constitute a violation of this Section
         7.

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         Section 8. Waiver.  The waiver by the  Corporation of the breach of any
provision of this Agreement by the Employee shall not operate or be construed as
a waiver of any subsequent breach by the Employee.

         Section 9.  Notices.  Any  notices  permitted  or  required  under this
Agreement  shall  be  deemed  given  upon  the  date  of  personal  delivery  or
forty-eight  (48) hours after deposit in the United  States mail,  postage fully
prepaid, return receipt requested, addressed to the Corporation at:

                  Decorize, Inc.
                  211 South Union Street, Suite F
                  Springfield, Missouri  65802

and addressed to the Employee at:

                  John Michael Sandel
                  10825 Barley Lane, Suite D
                  Houston, TX  77070

or at any other address as any party may, from time to time, designate by notice
given in compliance with this Section.

         Section  10. Law  Governing.  This  Agreement  shall be governed by and
construed in accordance with the laws of the State of Missouri.

         Section  11.  Titles  and  Captions.  All  section  titles or  captions
contained in this  Agreement  are for  convenience  only and shall not be deemed
part of the context nor effect the interpretation of this Agreement.

         Section  12.  Entire  Agreement.  This  Agreement  contains  the entire
understanding   between  and  among  the  parties  and   supersedes   any  prior
understandings  and agreements  among them respecting the subject matter of this
Agreement.

         Section 13. Agreement Binding. This Agreement shall be binding upon the
heirs, executors, administrators, successors and assigns of the parties hereto.

         Section 14. Attorney Fees. In the event an arbitration,  suit or action
is brought by any party under this Agreement to enforce any of its terms,  or in
any appeal  therefrom,  it is agreed that the

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prevailing  party shall be entitled to reasonable  attorneys fees to be fixed by
the arbitrator, trial court, and/or appellate court.

         Section  15.  Computation  of Time.  In  computing  any  period of time
pursuant to this Agreement,  the day of the act, event or default from which the
designated  period  of time  begins  to run  shall be  included,  unless it is a
Saturday, Sunday, or legal holiday, in which event the period shall begin to run
on the next day which is not a Saturday, Sunday or legal holiday, in which event
the  period  shall run until the end of the next day  thereafter  which is not a
Saturday, Sunday, or legal holiday.

         Section 16.  Pronouns  and Plurals.  All  pronouns  and any  variations
thereof shall be deemed to refer to the masculine,  feminine,  neuter, singular,
or plural as the identity of the person or persons may require.

         Section 17.  Presumption.  This Agreement or any section  thereof shall
not be  construed  against any party due to the fact that said  Agreement or any
section thereof was drafted by said party.

         Section 18.  Further  Action.  The  parties  hereto  shall  execute and
deliver all documents, provide all information and take or forbear from all such
action as may be  necessary  or  appropriate  to achieve  the  purposes  of this
Agreement.

         Section 19.  Parties in Interest.  Nothing herein shall be construed to
be the benefit of any third party,  nor is it intended that any provision  shall
be for the benefit of any third party.

         Section 20. Savings Clause. If any provision of this Agreement,  or the
application  of such  provision  of any  person or  circumstance,  shall be held
invalid,  the remainder of this Agreement,  or the application of such provision
to persons  or  circumstances  other than those as to which it is held  invalid,
shall not be affected thereby.

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         IN WITNESS WHEREOF, the parties have executed this Employment Agreement
as of the day and year first above written.

                                          DECORIZE, INC.

                                          By:  /s/ Jon Baker
                                              ------------------------------
                                               Jon Baker, President

                                          "Corporation"

                                           /s/ John Michael Sandel
                                          ----------------------------------
                                          John Michael Sandel

                                           "Employee"

                                       9Exhibit 10.3

                                 DECORIZE, INC.

              THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE
               UPON THE EXERCISE OF THIS WARRANT ARE TRANSFERABLE
                  ONLY IN ACCORDANCE WITH PARAGRAPH H HEREOF.

              Void after 5:00 P.M., New York Time, on June 30, 2003
                               Warrant to Purchase
                                __________ Shares
                                 of Common Stock

                        WARRANT TO PURCHASE COMMON STOCK

This is to Certify That, FOR VALUE RECEIVED, __________________________________,
a ____________________________________________________________, having an office
at _____________________________________________________________________________
(the  "Holder")  is  entitled to  purchase,  subject to the  provisions  of this
Warrant, from Decorize, Inc., a company organized under the laws of the State of
Delaware,  having  an  office  at 211 S.  Union  Street,  Suite F,  Springfield,
Missouri  65802  (the  "Company"),  the  number of shares  set forth  above (the
"Warrant  Shares")  of the  Company's  Common  Stock,  $.001 par value  ("Common
Stock") at a price of $2.00 per share (or such other price  computed by applying
all  adjustments  made on or before June 30, 2003, in accordance  with Section F
hereof,  to $2.00  as if it had  been  the  initial  Exercise  Price  per  share
hereunder)  at any time on or after July 1, 2001 until 5:00 P.M.  New York Time,
on June 30, 2003.  The number of shares of Common Stock to be received  upon the
exercise of this  Warrant  and the price to be paid for a share of Common  Stock
may be adjusted from time to time as hereinafter set forth. The shares of Common
Stock  deliverable  upon such  exercise,  and as adjusted from time to time, are
hereinafter  sometimes referred to as "Warrant Shares" and the exercise price of
a share of Common Stock in effect at any time and as adjusted  from time to time
is hereinafter sometimes referred to as the "Exercise Price."

The Warrants  represented by the Certificate are part of an authorized  class of
500,000 Warrants.

A.       EXERCISE OF WARRANT.  Subject to the following conditions precedent and
         the  provisions  of Section H hereof,  this Warrant may be exercised in
         whole or in part at any time or from  time to time on or after  July 1,
         2001,  and  before  5:00 P.M.  New York Time on June 30,  2003,  or, if
         either such day is a day on which banking  institutions  are authorized
         by law to close,  then on the next  succeeding  day which  shall not be
         such a day, by presentation  and surrender hereof to the Company at any
         office maintained by it in Springfield,  Missouri,  or at the office of
         its Warrant  Agent,  if any, with the Purchase Form annexed hereto duly
         executed  and  accompanied  by  payment of the  Exercise  Price for the
         number of shares  specified  in such form.  If this  Warrant  should be
         exercised  in part only,  the Company  shall,  upon  surrender  of this
         Warrant for cancellation,  execute

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         and deliver a new Warrant evidencing the rights of the Holder hereof to
         purchase the balance of the shares purchasable hereunder.  Upon receipt
         by the Company of this Warrant at its office,  or by the Warrant  Agent
         of the Company at its office,  in proper form for exercise,  the Holder
         shall be  deemed to be the  holder  of  record of the  shares of Common
         Stock  issuable  upon  such  exercise,  notwithstanding  that the stock
         transfer books of the Company shall then be closed or that  certificate
         representing  such  shares of Common  Stock  shall not then be actually
         delivered to the Holder.

B.       RESERVATION  OF SHARES.  The  Company  hereby  agrees that at all times
         there shall be reserved for issuance  and/or  delivery upon exercise of
         this  Warrant  such  number of shares of its  Common  Stock as shall be
         required for issuance of delivery upon exercise of this Warrant.

C.       FRACTIONAL   SHARES.  No  fractional   shares  or  scrip   representing
         fractional  shares shall be issued upon the  exercise of this  Warrant.
         With  respect  to any  fraction  of a share  called  for upon  exercise
         hereof, the Company shall issue to the Holder the next whole share.

D.       EXCHANGE,  ASSIGNMENT OR LOSS OF WARRANT. This Warrant is exchangeable,
         without  expense,  at the option of the Holder,  upon  presentation and
         surrender  hereof to the Company or at the office of the Warrant  Agent
         for other  Warrants of  different  denominations  entitling  the holder
         thereof to  purchase in  aggregate  the same number of shares of Common
         Stock purchasable  hereunder.  The term Warrant as used herein includes
         any Warrants into which this Warrant may be divided or exchanged.  Upon
         receipt by the Company of evidence reasonably satisfactory to it of the
         loss, theft,  destruction,  or mutilation of this Warrant,  and (in the
         case  of  loss,  theft  or  destruction)  of  reasonably   satisfactory
         indemnification,  and upon surrender and  cancellation of this Warrant,
         if  mutilated,  the Company  will  execute and deliver a new Warrant of
         like tenor and date. Any such new warrant  executed and delivered shall
         constitute  an  additional  contractual  obligation  on the part of the
         Company,  whether or not this  Warrant so lost  stolen,  destroyed,  or
         mutilated shall be at any time enforceable by anyone.

E.       RIGHTS OF THE  HOLDER.  The  Holder  shall not,  by virtue  here of, be
         entitled to any rights of a shareholder  in the Company,  either at law
         or equity,  and the rights of the Holder are limited to those expressed
         in the Warrant and are not  enforceable  against the Company  except to
         the extent set forth herein.

F.       STOCK  DIVIDENDS,   RECLASSIFICATION,   REORGANIZATION,   ANTI-DILUTION
         PROVISIONS,  ETC.  This  Warrant is subject  to the  following  further
         provisions:

         1.       In case,  prior to the  expiration of this Warrant by exercise
                  or by its terms,  the  Company  shall  issue any shares of its
                  Common Stock as a stock  dividend or  subdivide  the number of
                  outstanding  shares of Common  Stock into a greater  number of
                  shares,  then, in either of such cases, the Exercise Price per
                  share  of the  Warrant  Shares  purchasable  pursuant  to this
                  Warrant  in  effect  at the  time  of  such

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                  action  shall be  proportionately  reduced  and the  number of
                  Warrant  Shares  at that  time  purchasable  pursuant  to this
                  Warrant shall be proportionately increased; and conversely, in
                  the event the Company shall contract the number of outstanding
                  shares of Common Stock by combining such shares into a smaller
                  number of shares,  then, in such case,  the Exercise Price per
                  share  of the  Warrant  Shares  purchasable  pursuant  to this
                  Warrant  in  effect  at the  time  of  such  action  shall  be
                  proportionately  increased and the number of Warrant Shares at
                  that  time  purchasable  pursuant  to this  Warrant  shall  be
                  proportionately  decreased.  Any dividend paid or  distributed
                  upon  the  Common  Stock  in  stock  of  any  other  class  of
                  securities  convertible  into shares of Common  Stock shall be
                  treated as a dividend  paid in Common Stock to the extent that
                  shares  of  Common  Stock  are  issuable  upon the  conversion
                  thereof.

         2.       In case,  prior to the  expiration of this Warrant by exercise
                  or by  its  terms,  the  Company  shall  be  recapitalized  by
                  reclassifying its outstanding  Common Stock,  $.001 par value,
                  into  stock  with a  different  par value or by  changing  its
                  outstanding  Common Stock with par value to stock without par,
                  the Company or a successor  corporation  shall be consolidated
                  or merge with or convey all or substantially  all of its or of
                  any successor  corporation's  property and assets to any other
                  corporation  or  corporations   (any  such  corporation  being
                  included within the meaning of the term successor  corporation
                  in the  event  of any  consolidation  or  merger  of any  such
                  corporation  with, or the sale of all or substantially  all of
                  the property of any such  corporation to, another  corporation
                  or  corporations),  in exchange for stock or  securities  of a
                  successor  corporation,  the  holder  of  this  Warrant  shall
                  thereafter  have the  right to  purchase  upon the  terms  and
                  conditions and during the time  specified in this Warrant,  in
                  lieu of the Warrant Shares  theretofore  purchasable  upon the
                  exercise  of this  Warrant,  the kind and  amount of shares of
                  stock   and   other    securities    receivable    upon   such
                  recapitalization  or consolidation,  merger or conveyance by a
                  holder of the  number of  shares  of  Common  Stock  which the
                  holder of this Warrant might have purchased  immediately prior
                  to  such   recapitalization   or   consolidation,   merger  or
                  conveyance.

         3.       Upon the  occurrence of each event  requiring an adjustment of
                  the  Exercise  Price  and  of the  number  of  Warrant  Shares
                  purchasable at such adjusted  Exercise Price by reason of such
                  event in accordance with the provisions of this Section F, the
                  Company  shall  compute the  adjusted  Exercise  Price and the
                  adjusted number of Warrant Shares purchasable at such adjusted
                  Exercise Price by reason of such event in accordance  with the
                  provisions  of this Section F and shall  prepare a certificate
                  setting  forth such adjusted  Exercise  Price and the adjusted
                  number of Warrant  Shares and showing in detail the facts upon
                  which such  conclusions  are  based.  The  Company  shall mail
                  forthwith  to  each  holder  of  this  Warrant  a copy of such
                  certificate,   and  thereafter  said   certificate   shall  be
                  conclusive  and  shall be  binding  upon  such  holder  unless
                  contested  by such  holder by  written  notice to the  Company
                  within  thirty (30) days after receipt of the  certificate  by
                  such holder.

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<PAGE>

         4.       In case:

                  (a)      the Company shall take a record of the holders of its
                           Common  Stock for the  purpose of  entitling  them to
                           receive  a  dividend  or any  other  distribution  in
                           respect  of  the  Common  Stock   (including   cash),
                           pursuant  to  without   limitation,   any   spin-off,
                           split-off or distribution of the Company's assets; or

                  (b)      the Company shall take a record of the holders of its
                           Common  Stock for the  purpose of  entitling  them to
                           subscribe  for or purchase any shares of stock of any
                           class or to receive any other rights; or

                  (c)      of  any  classification,  reclassification  or  other
                           reorganization  of the capital  stock of the Company,
                           consolidation  or merger of the Company  with or into
                           another   corporation,   or   conveyance  of  all  or
                           substantially all of the assets of the Company; or

                  (d)      of  the   voluntary   or   involuntary   dissolution,
                           liquidation or winding up of the Company;

                  then,  and in any such  case,  the  Company  shall mail to the
                  Holder,  at least  twenty  (20) days prior  thereto,  a notice
                  stating the date or  expected  date on which a record is to be
                  taken for the  purpose of such  dividend  or  distribution  of
                  rights,   or  the   date   on   which   such   classification,
                  reclassification,   reorganization,   consolidation,   merger,
                  conveyance, dissolution, liquidation, or winding up is to take
                  place,  as the case may be. Such notice shall also specify the
                  date or  expected  date,  if any is to be  fixed,  as of which
                  holders  of  Common  Stock  of  record  shall be  entitled  to
                  participate  in said dividend or  distribution  of rights,  or
                  shall be entitled to exchange their shares of Common stock for
                  securities   or   other   property   deliverable   upon   such
                  classification,       reclassification,        reorganization,
                  consolidation,  merger, conveyance, dissolution,  liquidation,
                  or winding  up, as the case may be.  The  failure to give such
                  notice shall not affect the validity of any such proceeding or
                  transaction  and shall not  affect  the right of the holder of
                  this Warrant to participate in said dividend,  distribution of
                  rights,  or any such  exchange and acquire the kind and amount
                  of cash, securities or other property as the Holder would have
                  been  entitled  to acquire if it was the record  holder of the
                  Warrant  Shares  which could be obtained  upon the exercise of
                  the   Warrants   immediately   before   such   proceeding   or
                  transaction;  provided that, the Holder exercises the Warrants
                  within 30 days after  discovery that such action or proceeding
                  has taken place.

         5.       In case the  Company  at any time  while  this  Warrant  shall
                  remain unexpired and unexercised,  shall dissolve,  liquidate,
                  or  wind up its  affairs,  the  holder  of  this  Warrant  may
                  thereafter  receive upon exercise hereof in lieu of each share
                  of

                                       4
<PAGE>

                  Common Stock of the Company  which it would have been entitled
                  to  receive,  the same kind and  amount of any  securities  or
                  assets as may be issuable,  distributable  or payable upon any
                  such  dissolution,  liquidation  or winding up with respect to
                  each share of Common Stock of the Company.

G.       OFFICER'S CERTIFICATE. Whenever the Exercise Price shall be adjusted as
         required by the provisions of the foregoing Section,  the Company shall
         forthwith file in the custody of its Secretary at its principal  office
         and with the Warrant Agent,  if any, an officer's  certificate  showing
         the adjusted  Exercise Price  determined as therein  provided,  setting
         forth  in  reasonable  detail  the  facts  requiring  such  adjustment,
         including  a  statement  of the number of  additional  shares of Common
         Stock,  if any,  the  consideration  for  such  shares,  determined  as
         provided in such  Section F, and such other facts as shall be necessary
         to show the  reason for and the manner of  computing  such  adjustment.
         Each  such  officer's  certificate  shall  be  made  available  at  all
         reasonable  times for  inspection by the holder and the Company  shall,
         forthwith after each such  adjustment,  mail a copy of such certificate
         to the holder.

H.       TRANSFER  TO  COMPLY  WITH THE  SECURITIES  ACT OF 1933.  Neither  this
         Warrant,  the Warrant Shares, nor any other security issued or issuable
         upon  exercise  of this  Warrant may be sold or  otherwise  disposed or
         except as follows:

         1.       to  a  person  who,  in  the  opinion  of  counsel  reasonably
                  satisfactory  to the Company,  is a person to whom the Warrant
                  or  Warrant   Shares  may  legally  be   transferred   without
                  registration and without the delivery of a current  prospectus
                  under the  Securities Act of 1933, as amended (the "Act") with
                  respect  thereto and then only against receipt of an agreement
                  of such person to comply with the provisions of this Section H
                  with  respect  to any  resale  or  other  disposition  of such
                  securities; or

         2.       to any person upon  delivery of a prospectus  then meeting the
                  requirements  of the Act relating to such  securities  and the
                  offering thereof for such sale or disposition.

I.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         The Company represents and warrants to the holder as follows:

         1.       The  Company  is duly  organized  and,  as of the  date of the
                  original  issuance  hereof,   validly  existing  and  in  good
                  standing under the laws of the State of Delaware.

         2.       The Company shall at all times reserve and keep  available out
                  of its  authorized  shares of  Common  Stock,  solely  for the
                  purpose of issuing  Warrant  Shares upon the  exercise of this
                  Warrant,  such  shares as may be  issuable  upon the  exercise
                  hereof.

                                       5
<PAGE>

         3.       Warrant  Shares,  when issued and paid for in accordance  with
                  the  terms  of  this  Warrant,  will  be  fully  paid  and not
                  assessable.

         4.       This  Warrant  has been duly  authorized  and  approved by all
                  required  corporate action by the Company and does not violate
                  the certificate of incorporation or by-laws of the Company.

                                             DECORIZE, INC.

[CORPORATE SEAL]

                                             By: ______________________________
                                                          Jon Baker, CEO

Dated:

ATTEST:

___________________________
                , Secretary

                                       6
<PAGE>

                                  PURCHASE FORM
                                 TO BE EXECUTED
                            UPON EXERCISE OF WARRANTS

TO:      Decorize, Inc.
         211 S. Union Street, Suite F
         Springfield, Missouri  65802

         The undersigned hereby exercises, according to the terms and conditions
thereof, the right to purchase  _____________ Shares of Common Stock,  evidenced
by the within  Warrant  Certificate,  and herewith makes payment of the purchase
price in full.

         Dated:______________________________________________________

         Name:_______________________________________________________

         Address: ___________________________________________________

         Signature: _________________________________________________

         UPON  EXERCISE OF THIS WARRANT  PAYMENT  SHOULD BE MADE TO THE ORDER OF
DECORIZE, INC.

                                       7

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