PROMISSORY NOTE

$500,000                                                    New York, New York
                                                              January 16, 2001

      For value received, LAURIE MUNN ("Borrower") hereby unconditionally
promises to pay to the order of INTERIORS, INC., a Delaware corporation
(hereinafter, the "Payee"), at the offices of Payee at 320 Washington St, Mt.
Vernon, New York 10553, or at such other place as the Payee or any other holder
hereof may from time to time designate, the principal sum of five hundred
thousand dollars ($500,000) in lawful money of the United States of America and
in immediately available funds, on January ___, 2005 (the "Maturity Date").

      This Note is issued pursuant to the terms and provisions of the Pledge
Agreement entered into and executed of even date herewith by and among Borrower
and Payee (as the same now exists or may hereafter be amended, modified,
supplemented, renewed, extended, restated or replaced, the "Pledge Agreement").
This Note is secured by all of the Collateral (as defined in the Pledge
Agreement) and is entitled to all of the benefits and rights set forth in the
Pledge Agreement. Initially capitalized terms used herein, unless otherwise
defined herein, shall have the meanings ascribed thereto in the Pledge
Agreement.

      Borrower hereby further promises to pay interest to the order of Payee in
like money at said office or place quarterly on the first business day of each
fiscal quarter on the unpaid principal balance hereof at a rate, prior to a
Default, of eleven percent (11%) per annum, and at a rate, upon the occurrence
and during the continuance of and after a Default, of thirteen percent (13%) per
annum (the "Default Rate").

      The interest rate payable hereunder shall be calculated on the basis of a
three hundred sixty-five (365) day year and actual days elapsed. In no event
shall the interest charged hereunder exceed the maximum permitted under the laws
of the State of New York or other applicable law.

      If any principal or interest payment is not made when due hereunder or if
any other Default shall occur for any reason, then and in any such event, in
addition to all rights and remedies of Payee under the Pledge Agreement,
applicable law or otherwise, all such rights and remedies being cumulative, not
exclusive and enforceable alternatively, successively and concurrently, Payee
may, at its option, declare any or all of Borrower's obligations, liabilities
and indebtedness owing to Payee hereunder (the "Obligations") to be due and
payable, whereupon the then unpaid balance hereof together with all interest
accrued thereon, shall forthwith become due and payable, together with interest
accruing thereafter at the then applicable rate stated above until the
indebtedness evidenced by this Note is paid in full, plus the costs and expenses
of collection hereof, including, but not limited to, reasonable attorneys' fees.

      Borrower (i) waives diligence, demand, presentment, protest and notice of
any kind, (ii) agrees that it will not be necessary for any holder hereof to
first institute suit in order to enforce payment of this Note and (iii) consents
to any one or more extensions or postponements of time of payment of this Note
and/or any other Obligations, any release, surrender or substitution of
collateral security for this Note and/or any other Obligations, or forbearance
or other indulgence with respect


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to this Note and/or any other Obligations, without notice or consent. The
pleading of any statute of limitations as a defense to any demand against
Borrower is expressly hereby waived. Upon any Default or termination, Payee
shall have the right, but not the obligation, to setoff against this Note all
money owed by Payee to Borrower.

      Payee shall not be required to resort to any Collateral for payment, but
may proceed against Borrower, and any guarantors or endorsers hereof in such
order and manner as Payee may choose. None of the rights of Payee shall be
waived or diminished by any failure or delay in the exercise thereof.

      BORROWER HEREBY WAIVES THE RIGHT TO A TRIAL BY JURY AND ALL RIGHTS OF
SETOFF. BORROWER FURTHER WAIVES ANY RIGHTS TO INTERPOSE COUNTERCLAIMS (EXCEPT
COMPULSORY COUNTERCLAIMS) AND CROSS-CLAIMS IN ANY LITIGATION OR PROCEEDING
BROUGHT BY PAYEE BASED UPON OR ARISING OUT OF THIS NOTE, THE PLEDGE AGREEMENT,
THE OBLIGATIONS OR THE COLLATERAL. BORROWER HEREBY IRREVOCABLY CONSENTS TO THE
NON-EXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK AND OF
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR ALL
PURPOSES IN CONNECTION WITH ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS NOTE, THE PLEDGE AGREEMENT, THE OBLIGATIONS OR THE COLLATERAL.

      Borrower further agrees that any process or notice of motion or other
application to said Courts or judge thereof, or any notice in connection with
any proceeding hereunder may be served (i) inside or outside the State of New
York by registered or certified mail, return receipt requested, and service or
notice so served shall be deemed complete five (5) days after the same shall
have been posted or (ii) in such other manner as may be permissible under the
rules of said Courts. Within thirty (30) days after such mailing, Borrower shall
appear and answer to such process or notice of motion or other application to
said Courts, failing which Borrower shall be deemed in default and judgment may
be entered by Payee against Borrower for the amount of the claim and other
relief requested therein.

      This Note, the Obligations and the Collateral shall be governed by and
construed in accordance with the laws of the State of New York and shall be
binding upon the successors and assigns of Borrower and inure to the benefit of
Payee and its successors, endorsees and assigns. If any term or provision of
this Note shall be held invalid, illegal or unenforceable, the validity of all
other terms and provisions hereof shall in no way be affected thereby.

      This Note may not be changed, modified or terminated orally, but only by
an agreement in writing signed by Borrower and the Payee or any successor holder
hereof. Whenever used herein, the terms "Borrower" and "Payee" shall be deemed
to include their respective successors and assigns.

                                        BORROWER


                                        /s/ Laurie Munn
                                        ----------------------------------------
                                        Laurie Munn