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                          SUBORDINATED PROMISSORY NOTE
                                          
$272,752.00                                                  March 23, 1998
                                                    Los Angeles, California



                      FOR VALUE RECEIVED, Interiors, Inc., a Delaware
corporation ("Obligor"), hereby promises to pay to the order of Robert M.
Perkowitz ("Holder"), as trustee for each of the persons listed on Attachment A
hereto (the "Creditors"), the principal sum of TWO HUNDRED SEVENTY-TWO THOUSAND
SEVEN HUNDRED FIFTY-TWO DOLLARS ($272,752.00), together with interest thereon,
without offset or deduction of any kind or nature (whether pertaining to this
Note or to any other agreement by or among the parties hereto), on March 31,
1999, at which time the unpaid principal amount hereof and all accrued and
unpaid interest thereon shall become due and payable.

                      If any payment of principal or interest on this
Note is due on a Saturday, Sunday or legal holiday under the laws of the State
of California, such payment shall be made on the next succeeding business day.
Interest accrued on the unpaid principal balance of this Note shall be payable
on the date set forth above. Upon the payment in full of all unpaid principal
of this Note, all accrued and unpaid interest shall be due and payable
forthwith.

                      Interest on the unpaid balance of this Note shall
accrue at the rate of ten percent (10%) per annum from the date hereof through
the date that the principal of this Note is paid in full (subject to increase
upon the failure of Obligor to make the Prepayment, as provided below), and
such interest shall accrue on the basis of actual days based on a 365-day year.

                                                                                
                      Obligor may, at its election, on or prior to July 31, 
1998, prepay to Holder the full principal amount of this Note together with all
accrued and unpaid interest on such prepaid principal amount (the
"Prepayment"). If Obligor fails to make the Prepayment, then interest on the
unpaid balance of this Note shall accrue at the rate of fifteen percent (15%)
per annum from July 31, 1998 through the date that the principal of this Note
is paid in full.

                      Each payment made pursuant to this Note shall be credited
first on interest then due and the remainder on principal; and interest shall 
thereupon cease to accrue upon



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the principal so credited. Obligor reserves the right to prepay all or any part
of the principal of this Note at any time without penalty.

                      "Event of Default" shall mean the failure of Obligor to 
make any payment of interest or principal on this Note within five (5) days
after the due date (unless cured within ten (10) days after Obligor's receipt
of written notice of the occurrence thereof). Any notice required to be given
to Obligor hereunder must be delivered in accordance with the provisions of
Section 12.01 of that certain Agreement and Plan of Merger dated as of the date
hereof among Obligor, Holder and others. Upon the occurrence of an Event of
Default, the unpaid principal amount of and accrued interest on this Note shall
automatically become immediately due and payable, without presentment, demand,
protest or other requirements of any kind, all of which are hereby expressly
waived by the Obligor.

                      Principal and interest shall be paid in lawful money of
the United States and shall be made at 3817 Bonwood Drive, Charlotte, North
Carolina 28211, or at such other place as Holder shall have designated to
Obligor in writing for such purpose.

                      This Note and the indebtedness evidenced hereby shall be 
subordinate in the manner and to the extent as may be set forth in a
Subordination Agreement between the Holder and Obligor's bank lender.

                      This Note may not be sold, transferred, assigned, pledged
or otherwise disposed of by Holder without the prior written consent of 
Obligor.

                      This Note is being delivered and is intended to be
performed in the State of California, and shall be governed by and construed
and enforced in accordance with the internal laws of the State of California.

                                                 INTERIORS, INC.,
                                                 a Delaware corporation

                                                 By: /s/ Max Munn             
                                                    ---------------------
                                                    An Authorized Officer



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                                  Attachment A

Sienna Limited Partnership II
Robert M. Perkowitz
Barrington Associates



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