Document:

Schedule B
                         CONSOLIDATED PROMISSORY NOTE

$2,504,000                                                  New York, New York
                                                              November 1, 2000

      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 two million five
hundred and four thousand dollars ($2,504,000) in lawful money of the United
States of America and in immediately available funds, on November 1, 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 on the Maturity Date on the unpaid principal
balance hereof at a rate, prior to a Default, of six and one-half percent (6.5%)
per annum, and at a rate, upon the occurrence and during the continuance of and
after a Default, of eight percent (8.5%) per annum (the "Default Rate"). In
addition, Borrower further promises to pay on the Maturity Date previously
accrued interest of four hundred ten thousand nine hundred seventy-six dollars
and four cents ($410,976.04) relating to the obligations of which this Note
consolidates under the Pledge Agreement.

      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

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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 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 MunnSchedule A
                                PLEDGE AGREEMENT

            This PLEDGE AGREEMENT (this "Agreement") dated as of November 1,
2000 is made by and among Laurie Munn ("Pledgor") with an address for notice
purposes at 320 Washington St. Mount Vernon, NY 10553, in favor of Interiors,
Inc., a Delaware corporation ("Secured Party") with an address for notice
purposes at 320 Washington St., Mount Vernon, NY 10553.

                             R E C I T A L S

            WHEREAS, Pledgor is the legal and beneficial owner of 2,455,000
shares of Class B Common Stock, par value $.001 per share ("Class B Common
Stock"), of Secured Party (the "Pledged Shares");

            WHEREAS, Pledgor has granted a security interest in the Pledged
Shares to Donald Landis to secure a $200,000 obligation of Pledgor and Pledgor's
guaranty of a $2,000,000 promissory note of the Secured Party dated July 27,
2000 (together, the "Landis Notes").

            WHEREAS, Pledgor is currently indebted to Secured Party in the
amount of $437,500, $1,606,500 and $460,000 under separate obligations ("Current
Obligations") relating to the issuance of the Pledged Shares and, as of November
1, 2000, there is $410,976.04 of accrued interest on the Current Obligations;

            WHEREAS, Pledgor and Secured Party desire to consolidate all of the
Current Obligations, including interest, into one definitive promissory note
secured by all of the Pledged Shares;

            WHEREAS, as of the date hereof, Pledgor has executed the
Consolidated Promissory Note (the "Note"), in the aggregate principal amount of
$2,504,000, plus $410,976.04 in accrued interest, in favor of Secured Party, and
Pledgor has directly benefited and received consideration for the execution of
the Note.

            WHEREAS, Pledgor has previously granted a security interest in the
Pledged Shares to Secured Party in order to secure the Notes, the parties hereto
desire formalize the pledge of the Pledged Shares as security for the Notes.

                                    AGREEMENT

            NOW, THEREFORE, in consideration of the premises and to formalize
the pledge of the Pledged Shares as security for the Notes, Pledgor hereby
agrees as follows:

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            SECTION 1. Pledge. Pledgor hereby pledges to Secured Party, and
grants to Secured Party a security interest in, the following (the "Pledged
Collateral"): (a) the Pledged Shares and the certificate(s) representing the
Pledged Shares; (b) all dividends or other distributions on or in respect of the
Pledged Shares; (c) all proceeds of any and all of the Pledged Shares; and (d)
all shares of Class A Common Stock, par value $.001 per share, of Secured Party
("Class A Common Stock") into which the Pledged Shares are convertible.

            SECTION 2. Security for Obligations. Subject to Section 13 hereof,
this Agreement secures the payment of all obligations of Pledgor now or
hereafter existing under the Note and all obligations of Pledgor now or
hereafter existing under this Agreement (collectively, the "Pledgor
Obligations").

            SECTION 3. Delivery of Pledged Collateral. Upon satisfaction of the
Landis Notes, the Pledged Shares shall be delivered to and held by the Secretary
of Secured Party pursuant hereto and shall be in suitable form for transfer,
either duly endorsed in blank or accompanied by assignments or stock powers duly
executed authorizing transfer thereof pursuant to the terms of this Agreement
reasonably satisfactory to Secured Party. Upon satisfaction of the Landis Notes,
all other certificates or instruments representing or evidencing the Pledged
Collateral shall (in the case of the Pledged Shares delivered herewith, upon the
execution hereof) be delivered to and held by the Secretary of Secured Party
pursuant hereto and shall be in suitable form for transfer, either duly endorsed
in blank or accompanied by assignments or stock powers duly executed authorizing
transfer thereof pursuant to the terms of this Agreement reasonably satisfactory
to Secured Party. Secured Party shall have the right, at any time after Pledgor
shall have failed to fully perform or pay any of the Pledgor Obligations (a
"Default") and such Default shall be continuing, to transfer to or to register
in the name of Secured Party or any of its nominees any or all of the Pledged
Collateral.

            SECTION 4. Representations and Warranties. Pledgor represents and
warrants to Secured Party as follows:

            (a) Pledgor is the sole legal and beneficial owner of the Pledged
Collateral, free and clear of any lien, security interest, option, charge or
other encumbrance or claims except for the security interest created by this
Agreement and to secure the Landis Note.

            (b) This Agreement has been duly executed and delivered by Pledgor
and constitutes a legal, valid and binding obligation of Pledgor, enforceable
against Pledgor in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, or other similar laws affecting the rights of
creditors generally or by the application of general principles of equity.

            (c) No authorization, approval, or other action by, and no notice to
or filing with, any governmental authority or regulatory body is required either
(i) for the

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pledge by Pledgor of the Pledged Collateral pursuant to this Agreement or for
the execution, delivery or performance of this Agreement by Pledgor, or (ii) for
the exercise by Secured Party of the voting or other rights provided for in this
Agreement or the remedies in respect of the Pledged Collateral pursuant to this
Agreement (except as may be required in connection with the disposition of the
Pledged Collateral by laws affecting the offering and sale of securities
generally).

            SECTION 5. Further Assurances. Pledgor agrees that, from time to
time, at its expense, it will promptly execute and deliver all further
instruments and documents and take all further action that may be necessary or
desirable, or that Secured Party may request, in order to perfect and protect
any security interest granted or purported to be granted hereby or to enable
Secured Party to exercise and enforce the rights and remedies of Secured Party
hereunder with respect to any Pledged Collateral or to carry out the provisions
and purposes hereof.

            SECTION 6. Voting Rights.

                  (a) So long as no Default shall have occurred and be
continuing, Pledgor shall be entitled to exercise any and all voting and other
consensual rights pertaining to the Pledged Collateral or any part thereof for
any purpose not inconsistent with the terms of this Agreement.

                  (b) Upon the occurrence and during the continuance of a
Default, all rights of Pledgor to exercise the voting and other consensual
rights which it would otherwise be entitled to exercise pursuant to Section 6(a)
shall cease, and all such rights shall thereupon become vested in Secured Party,
which shall thereupon have the sole right to exercise such voting and other
consensual rights.

                  (c) During the term of this Agreement, Pledgor shall have the
right to convert the Pledged Shares into shares of Class A Common Stock.
Pursuant to Section 1 hereof, any shares of Class A Common Stock issued upon
conversion of the Pledged Shares shall remain subject to this Agreement.

            SECTION 7. Transfers and Other Liens. Pledgor agrees that it will
not (i) sell or otherwise dispose of, or grant any option with respect to, any
of the Pledged Collateral owned by it, or (ii) create or permit to exist any
lien or other encumbrance upon or with respect to any such Pledged Collateral,
except with respect to the Landis Notes.

            SECTION 8. Secured Party Appointed Attorney-in-Fact. Pledgor hereby
appoints Secured Party as its attorney-in-fact, with full authority in the place
and stead of Pledgor and in the name of Pledgor or otherwise, at any time, upon
the occurrence and during the continuance of any Default, to take any action and
to execute any instrument which Secured Party may deem necessary or advisable to
accomplish the purposes of this Agreement.

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            SECTION 9. Secured Party May Perform. If Pledgor fails to perform
any agreement contained herein, Secured Party may itself perform, or cause
performance of, such agreement.

            SECTION 10. Remedies upon Default. If any Default shall have
occurred and be continuing, Secured Party may exercise in respect of the Pledged
Collateral, in addition to other rights and remedies provided for herein or
otherwise available to it, all the rights of a secured party on default under
the Delaware Uniform Commercial Code in effect at that time, and Secured Party
may also sell the Pledged Collateral or any part thereof in accordance with the
provisions thereof.

            SECTION 11. Amendments, Etc. No amendment or waiver of any provision
of this Agreement shall be effective unless the same shall be in writing and
signed by Pledgor and Secured Party, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

            SECTION 12. Notices. Any notice or other communication required or
which may be given hereunder shall be in writing and shall be delivered to the
address set forth in the first paragraph.

            SECTION 13. Continuing Security Interest; Transfer of Notes. This
Agreement shall create a continuing security interest in the Pledged Collateral
and shall (i) remain in full force and effect until performance or payment in
full of the Pledgor Obligations, (ii) be binding upon Pledgor, its successors
and assigns, and (iii) inure, together with the rights and remedies of Secured
Party hereunder, to the benefit of Secured Party and its successors, transferees
and assigns (including assignees of the Notes or rights to payments thereunder).

            SECTION 14. Reinstatement. This Agreement shall continue to be
effective or be reinstated, as the case may be, if at any time any amount
received by Secured Party in respect of the Pledgor Obligations is rescinded or
must otherwise be restored or returned by Secured Party upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of Pledgor or upon the
appointment of any intervenor or conservator of, or trustee, receiver, manager
or similar official for, Pledgor, all as though such payments had not been made.

            SECTION 15. Governing Law; Terms. This Agreement shall be governed
by and construed in accordance with, the internal laws (and not the law of
conflicts) of the State of Delaware.

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            IN WITNESS WHEREOF, Pledgor and Secured Party have executed, or
caused this Agreement to be duly executed and delivered on its behalf, as of the
date first above written.

                                        PLEDGOR:

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

                                        SECURED PARTY:

                                        INTERIORS, INC., a
                                        Delaware corporation

                                        By: /s/ Max Munn
                                           -------------------------------------
                                           Name:  Max Munn
                                           Title: CEO

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