FORM OF SUBSCRIPTION AGREEMENT ______________, 1996 Decor Group, Inc. 320 Washington Street Mt. Vernon, New York 10533 Gentlemen: 1. Subscription. Subject to the terms and conditions of this Subscription Agreement, the undersigned (the "Investor") hereby subscribes for and agrees to acquire on the Closing Date (as hereinafter defined) ________________ newly issued shares of Common Stock (the "Shares") of Decor Group, Inc. (the "Corporation"), at an aggregate purchase price of ___________________ for the Shares. 2. Acceptance. If the Investor's subscription is accepted, the Corporation will return to the Investor one executed copy of this Subscription Agreement. 3. Representations and Warranties. The Investor hereby represents and warrants to the Corporation as follows: (a) The Investor is fully aware that the Shares have not been registered under the Shares Act of 1933, as amended (the "Securities Act"), or under any applicable state securities laws. The Investor further understands that the Shares are being issued in reliance on the exemption from the registration requirements of the Shares Act provided by Section 4(2) thereof or Regulation D promulgated under the Shares Act, and in reliance on exemptions from the registration requirements of certain state Shares laws, on the grounds that the offering involved has been made to a limited number of potential investors. (b) The Investor is acquiring the Shares for his own account as a principal and not with a present view to resale or distribution. (c) The Investor is able to bear the economic risk of the investment in the Shares and has such knowledge and experience in financial and business matters, and knowledge of the business of the Corporation. (d) The Investor has received all information with respect to the Corporation he has requested. (e) The Investor has been given the opportunity to ask questions of, and receive answers from, officers of the Corporation concerning the terms and conditions of the offering and to obtain such additional information which the Corporation possesses or can acquire without unreasonable effort or expense that is necessary to verify information that was otherwise provided. (f) The Investor recognizes that investment in the Shares involves substantial risks. In deciding whether to invest in the Shares, the Investor has weighed these risks against the potential return. Considering all relevant factors in his financial and personal circumstances, the Investor is able to bear the economic risk of the investment. The Investor has adequate means of providing for his current needs and possible personal contingencies and has no need in the foreseeable future for liquidity of his investment in the Shares. (g) The Investor has sought such accounting, legal and tax advice as he has considered necessary to make an informed investment decision with respect to his investment in the Shares. (h) The Investor is aware that no Federal or state agency has (i) made any finding or determination as to the fairness of any aspect of the investment in the Shares or (ii) passed on or endorsed the merits of the offering of the Shares. (i) The Investor agrees not to sell, pledge, transfer or otherwise encumber the Shares for a period of two years following the date hereof unless the Shares are registered for sale to public or an exemption from registration is available to the holder of the Shares. (j) The Investor has not retained any broker or finder in connection with the transactions contemplated herein so as to give rise to any valid claim against the Corporation or any of its subsidiaries for any broker's or finder's fee, commission or similar compensation. (k) Any information that such Investor has heretofore furnished to the Corporation with respect to their respective financial position, and investment experience is correct and complete as of the date of this Agreement and, if there should be any material change in such information prior to the Closing, such Investor will immediately furnish such revised or corrected information to the Corporation. (l) The Investor acknowledges that the Corporation has only recently been organized and has no operating or financial history. (m) The Investor has the full legal right and power and all authority and approval required to enter into, execute and deliver this Subscription Agreement and to perform fully his obligations hereunder. This Subscription Agreement has been duly executed and delivered and is the valid and binding obligation of the Investor, enforceable in accordance with his terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization or other such laws affecting the enforcement of creditors' rights generally and by principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). The execution, delivery and performance of this Subscription Agreement by such Investor will not: (i) require the approval or consent of any Person or (ii) conflict with or result in any breach or violation of any of the terms and conditions of, or constitute (or with notice or lapse of time or both constitute) a default under, any statute, regulation, order, judgment or decree of or applicable to the Investor, or any instrument, contract or other agreement to which the Investor is a party or by or to which the Investor is bound or subject. 6. Registration of Shares. The Corporation agrees to include eighty percent (80%) of the Shares in the first registration statement filed with the Securities and Exchange Commission in connection with its initial public offering ("Initial Public Offering"). As a result, the Shares shall be registered for sale to the public. In the event that the Initial Public Offering is underwritten, the Investor agrees to comply with any restrictions on the sale or the transfer of the Shares, requested by the managing underwriter thereof. 7. Modification. This Subscription Agreement sets forth the entire understanding of the parties hereto with respect to the subject matter hereof and may not be modified, discharged or terminated except by a written instrument duly executed by each party. 8. Binding Effect. The provisions of this Subscription Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 9. Governing Law. This Subscription Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of law. IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement as of this ____ day of _________, 1996. ____________________ Accepted and Agreed to as of the date first above written: DECOR GROUP, INC. By: _______________________ Max Munn, President