FORM
                                                                            ----
                                   AGREEMENT
                                   ---------

          AGREEMENT made and entered into as of the 26th day of January, 1996
effective December 28, 1995 by and between SEAMAN FURNITURE COMPANY, INC.,
located at 300 Crossways Park Drive, Woodbury, New York  11797, a Delaware
Corporation, hereinafter referred to as the Employer or Company, and LOCAL 875
affiliated with the INTERNATIONAL BROTHERHOOD OF TEAMSTERS, hereinafter
designated as the Union or the Local.

                              W I T N E S S E T H:
                              ------------------- 
          WHEREAS, the Employer is engaged in the business of retail
sale of furniture and
          WHEREAS, the Union represents the majority of the Employees of the
Employer at Employer's Central Islip, New York Warehouse, and
          WHEREAS, the parties hereto desire to cooperate in establishing
conditions in the Employer's Central Islip, New York Warehouse, which will tend
to secure to the workers a living wage, improve the standards of labor, abolish
unfair competition insofar as labor is concerned, and provide methods for a fair
and peaceful adjustment of all disputes that may arise between the parties
hereto,
          NOW THEREFORE, in consideration of one dollar and other good and
valuable consideration to each in hand paid by the other, and in consideration
of the mutual promises and obligations herein assumed and made, the parties
hereby agree as follows:

 
ARTICLE I
- - ---------
                                   GOOD FAITH
                                   ----------

          The Employer and the Union hereby agree that they will in good faith
live up to the provisions of this Agreement, and that this Agreement is entered
into by the Union and the Employer on behalf of the employees of the Employer,
now employed or hereafter to be employed, in the bargaining unit as defined in
Article II hereof.

ARTICLE II
- - ----------
                                  RECOGNITION
                                  -----------

          The Employer agrees to and does hereby recognize the Union as the sole
and exclusive bargaining agent for all warehouse employees at the Employer's
Central Islip, New York Warehouse, excluding clerical and office employees,
guards, professional employees and supervisors as defined in the Labor
Management Relations Act of 1947.
          This Agreement shall cover all future plants within a one hundred
twenty-five (125) mile radius measured from the Company's headquarters which the
Company may operate during the term of this Agreement or any extension of this
Agreement, including all plants within the radius operated as the result of
expansion or change.  This clause shall insure the benefit of the Local herein
only, but not its successors or assigns.

ARTICLE III
- - -----------
                                 UNION SECURITY
                                 --------------

          All workers who are members of the Local Union on the effective date
of this subsection or on the date of execution of this Agreement, whichever is
the later, shall remain members of

                                       2

 
the Local Union in good standing as a condition of employment. All present
employees who are not members of this Local Union and all employees who are
hired hereafter shall become and remain members in good standing of the Local
Union as a condition of employment by the 61st day following the effective date
of this subsection or the date of their employment, whichever is the later. This
provision shall be made and become effective as of such time as it may be made
and become effective under the provisions of the National Labor Relations Act,
but not retroactively.
          The failure of any person to become a member of the Union at the
required time shall obligate the Employer, upon written notice from the Union to
such effect and to further effect that Union membership was available to such
person on the same terms and conditions generally available to other members, to
forthwith discharge such person.  Further, the failure of any person to maintain
his or her Union membership in good standing as required herein shall, upon
written notice to the Employer by the Union to such effect, obligate the
Employer to discharge such person.
          In the event of any change in the law during the term of this
Agreement, the Employer agrees that the Union will be entitled to receive the
maximum Union security which may be lawfully permissible.
          No provision of this Article shall apply in any state to the extent
that it may be prohibited by State law.  If under applicable State law,
additional requirements must be met before 

                                       3

 
any such provisions may become effective, such additional requirements shall
first be met.
          If any provisions of this Article are invalid under the law of any
state wherein this Agreement is executed, such provisions shall be modified to
comply with the requirements of State law or shall be re-negotiated for the
purpose of adequate replacement.  If such negotiations shall not result in a
mutually satisfactory agreement, the Union and Employer shall be permitted all
legal or economic recourse.

ARTICLE IV
- - ----------
                                   CHECK-OFF
                                   ---------

          The Employer agrees to deduct, on the first pay day of each month,
from the salary or wages of the employees covered by this Agreement such Union
dues and initiation fees as the Union, by written notice, advises the Employer
are regularly due as such from the employees, and will turn such monies over to
the Union on or before the TENTH DAY of each month, covering the prior month,
together with its listing of the employees and amount, from whom such monies
have been deducted, provided, however, that the Employer will make such
deduction only from wages of those employees who submit individual written
authorization to the Employer directing and authorizing the Employer to make
such deductions.
          Any monies deducted from the employees are to remain the property of
the Union and in no event shall the Employer be permitted to use said monies for
any other purpose.

                                       4

 
ARTICLE V
- - ---------
                                 HOURS OF WORK
                                 -------------

          Each regular shift shall consist of not more than eight (8) hours per
day, and shall constitute a regular work day.  The regular work week shall
consist of five (5) days and shall commence on Monday and terminate on Saturday
of each week.  Employees who regularly work a particular shift must receive at
least one (1) week's notice before working a different shift.  Employees
switching to the different shift must remain on that shift for at least two (2)
weeks unless mutually waived by the Employer and Union.

ARTICLE VI
- - ----------
                                    OVERTIME
                                    --------

          Work performed in excess of eight (8) hours per day and/or forty (40)
hours per week shall be considered as overtime work and shall be paid for at the
rate of time and one-half the regular rate of pay.  Work performed on holidays
shall be paid for at the rate of time and one-half, in addition to the holiday
pay.  Work performed on Sunday will be paid for at the rate of double time.  In
any week during which a holiday occurs, the holiday shall be regarded as a
regular day worked, and overtime shall commence after thirty-two (32) hours of
work that week.

ARTICLE VII
- - -----------
                                    HOLIDAYS
                                    --------

          The Employer shall not require its employees to work on the
foregoing holidays, and shall pay them for such holidays.
                 New Year's Day                   July 4th
                 Martin Luther King's Birthday    Labor Day
                 Washington's Birthday            Thanksgiving Day
                 Memorial Day                     Christmas Day
                                                  Employee's Birthday*

                                       5

 
One (1) floating holiday to be determined by management with four (4) weeks'
notice.
          To be eligible for holiday pay, the employee must work the full
scheduled day before and the full scheduled day after the said holiday, unless
that employee is on lay-off or absent due to a verifiable illness or emergency.
Employees with legitimate illnesses during the work day who are required to
leave early will not forfeit the holiday.
          Holiday pay for the employees who do not work on the foregoing holiday
shall be eight (8) hours pay.
          *  For those employees hired after the effective date of the
Agreement, there will be a one-year waiting period before becoming eligible for
the Employee Birthday holiday.
          A.  If any of said holidays fall on Saturday, then even though no work
shall be performed, the employees shall be paid at straight time for that day.
          B.  If any of said holidays shall fall on Sunday, then the Monday
following shall be considered the holiday, and even though no work shall have
been performed on such Monday, the employees shall be paid for that day.
          C.  If any of the above holidays shall fall within the employee's
vacation period, his or her vacation shall be extended one (1) day with pay.
          D.  Employees absent because of a compensable illness or injury shall
be entitled to full holiday pay, provided illness is temporary and does not
exceed six (6) weeks' duration.

                                       6

 
          E.  If any of said holidays shall fall on Monday, employees working
the Tuesday through Saturday workweek, shall celebrate the holiday on Tuesday of
that week.

ARTICLE VIII
- - ------------
                                 PERSONAL DAYS
                                 -------------

          Employees hired prior to the effective date of the Agreement, December
28, 1995, will be eligible for three (3) Personal Days per calendar year.
Personal Days are to be scheduled in advance and require Management's approval.
Personal Days must be used by the end of the calendar year.  Carry over from one
year to the next is not permitted nor will there be a pay out of the cash
equivalent of any or all of the unused entitlement.
          For those hired after the effective date of the Agreement, the
following applies:
          1.  if the employee is hired after the start of the calendar year but
prior to August 1, the employee will be eligible for three (3) Personal Days
after completing his or her probationary period;
          2.  if the employee is hired after August 1, the employee will be
eligible for three (3) Personal Days at the beginning of the calendar year after
completing one year of service.

ARTICLE IX
- - ----------
                                   VACATIONS
                                   ---------

          The Employer shall grant vacation with pay for all its employees in
accordance with the provisions of this paragraph as set forth below:

                                       7

 
          All employees shall receive not less than his or her prorated vacation
as follows:
          One (1) week of vacation for all employees with one (1) year or more
but less than two (2) years in the employ of the Employer.
          Two (2) weeks of vacation with pay for all employees with two (2)
years or more in the employ of the Employer.
          Three (3) weeks of vacation with pay for all employees with six (6)
years or more in the employ of the Employer.
          Four (4) weeks of vacation with pay for all employees with fourteen
(14) years or more in the employ of the Employer.
          The Employer shall pay to all its employees their vacation pay prior
to the employee going on his or her vacation.
          There will be no vacations between November 1 through and including
December 24, in any year.  For those employees hired after the effective date
with an anniversary date during the period between November 1 and December 24,
for their first vacation earned only, they will be permitted to carry it over to
the next calendar year, but it must be taken by June 1.
          Employees who have been employed for one year or more, who are
discharged, leave their employment or who are laid off at any time during the
term of this Agreement, shall be paid pro-rata vacation at the time of their job
severance.  Such pro-rata vacation shall be based upon the vacation provisions
above set forth.

                                       8

 
ARTICLE X
- - ---------
                            WAGES AND WAGE INCREASES
                            ------------------------

          A.  Effective as of December 28, 1995, there shall be a general wage
increase of seventy-five cents per hour for all employees covered by this
Agreement who by such date have completed their probationary period.
          B.  Effective as of December 30, 1996, there shall be a general wage
increase of fifty (50) cents per hour for all employees covered by this
Agreement who by such date have completed their probationary period.
          C.  Effective as of December 29, 1997, there shall be a general wage
increase of fifty (50) cents per hour for all employees covered by this
Agreement who by such date have completed their probationary period.

ARTICLE XI
- - ----------
                      MEDICAL AND LIFE INSURANCE BENEFITS
                      -----------------------------------

          A.  In order to protect and promote the health and welfare of the
employees, the Employer will make available U.S. Healthcare Medical Plan ("U.S.
Healthcare") coverage, subject to the terms and conditions of that plan, from
March 1, 1996 through the expiration date of this Agreement.  Those employees
who decide to enroll in U.S. Healthcare may choose the coverage of either (i)
U.S. Healthcare's Value Plus or (ii) U.S. Healthcare's Quality Point of Service
or (iii) decline U.S. Healthcare coverage.
          Those employees who enroll in U.S. Healthcare's Value Plus will pay,
each pay period, $6.92 for Individual Coverage or $18.46 for Family coverage.
Those employees who enroll in U.S. 

                                       9

 
Healthcare's Quality Point of Service will pay, each pay period, $11.54 for
Individual Coverage or $27.69 for Family Coverage. The employee's contribution
will not increase during the term of this Agreement (i.e. until December 28,
1998).
          B.  The employer will make available to eligible members, life
insurance, subject to the terms and conditions of that plan, from March 1, 1996
through the expiration date of this Agreement. Those employees with two (2)
years or less in the employ of the Employer will be provided with life insurance
in the amount of $1,500.00 and accidental death and dismemberment benefits in
the amount of $1,500.00.
          Those employees with three, four or five (3, 4, or 5) years in the
employ of the Employer will be provided with life insurance in the amount of
$2,500.00 and accidental death and dismemberment benefits in the amount of
$1,500.00
          Those employees with five (5) years or more in the employ of the
Employer will be provided with life insurance in the amount of $5,000.00 and
accidental death and dismemberment benefits in the amount of $1,500.00.
          C.  Until March 1, 1996, the employees will continue to be covered by
the Local 875 Louis Hirsch Memorial Welfare Fund and the Employer will pay the
monthly contribution for each employee for the months of January and February
1996.
          Employer shall continue to make any other payment required to be made
by the Employer such as New York Disability payments, New York Unemployment
Insurance, Social Security, Workers' Compensation, etc.

                                       10

 
ARTICLE XII
- - -----------
                                  PENSION FUND
                                  ------------

          In order to protect and promote security for employees in the
industry, the Union has established a PENSION FUND, which is administered under
a Declaration of Trust adopted by its members.
          The Employer will not make any payments to the Pension Fund until the
Union demonstrates, to the satisfaction of the Employer, that the Pension Fund
is not overfunded.  If the Pension Fund is overfunded either presently or in the
future, the Employer shall have no obligation to make any further contributions
to the fund.  If at any time thereafter, the Union demonstrates to the
satisfaction of the Employer that the Pension Fund is not overfunded, the
Employer will make such contributions as are necessary to maintain the same
level of benefits available on the date of this Agreement, up to a maximum of
eight percent (8%) of the gross earnings for each Employee covered by this
Agreement.

ARTICLE XIII
- - ------------
                                   LEGAL FUND
                                   ----------

          The Union has established the Local 875 Pre-Paid Legal Plan (the
"Legal Plan"), which is administered under a Trust Indenture adopted by its
members.  Effective as of December 28, 1995, the Employer shall contribute to
the Legal Plan $12.50 per month per employee, which sum shall be utilized by the
Trustees of the Legal Plan in accordance with the Trust Indenture.

                                       11

 
ARTICLE XIV
- - -----------
                              GRIEVANCE PROCEDURE
                              -------------------

          A grievance is hereby jointly defined to be any controversy,
complaint, misunderstanding, or dispute.
          Any grievance arising between the Company and the Union shall be
settled in the following manner:
          A.  The aggrieved employee or employees must present the grievance to
the Shop Steward within five (5) working days after the reason for the grievance
has occurred, except that no time limit shall apply in case of violation of wage
provisions of this Agreement.  If a satisfactory settlement is not effected with
the Director of Distribution within three (3) working days, the Shop Steward and
employee shall submit such grievance in writing to the Union's Business
Representative.
          B.  The Business Representative shall then take the matter up with a
representative of the Company with authority to act upon such grievance.  A
decision must be made within five (5) working days.
          C.  If the Company fails to comply with any settlement of the
grievance or fails to comply with the procedures of this Article, the Union has
the right to take all legal and economic action to enforce its demands.

Section 2:
- - --------- 
          Any Shop Steward shall be permitted to leave his or her work to
investigate and adjust the grievance of any employee within his or her
jurisdiction, after notification to his or her Supervisor.  Employees shall have
the Shop Steward or a 

                                       12

 
representative of the Union present during the discussion of any grievance with
representatives of the Company.

Section 3:
- - --------- 

          A.  The dispute shall then be submitted to arbitration.  An Arbitrator
shall be selected from a list provided by the Federal Mediation Conciliation
Service or an otherwise mutually agreed upon Arbitrator.
          B.  Expense of the Arbitrator selected or appointed shall be borne
equally by the Company and the Union, unless Arbitration is requested because of
the Employer's failure to make remittances as required by this Agreement, in
which event the Employer shall pay the total cost.

Section 4:
- - --------- 
          The Arbitrator shall not have the authority to amend or modify this
Agreement or establish new terms or conditions under this Agreement.  The
Arbitrator shall determine any question or arbitrability.  In the event the
position of the Union is sustained, the aggrieved party shall be entitled to all
the benefits of this Agreement which should have accrued to him or her had there
been no grievance.

Section 5:
- - --------- 
          Both parties agree to accept the decision of the Arbitrator as final
and binding.  If the Company fails to comply with the award of the Arbitrator or
with the procedures of this Article, the Union has a right to take all legal and
economic action to enforce compliance.

                                       13

 
ARTICLE XV
- - ----------
                                   SENIORITY
                                   ---------

          A.  The Employer recognizes the principle of seniority.  For the
purpose of lay-off and rehiring, seniority shall be on a plant-wide basis, in
that the last employee hired in the plant-wide basis shall be the first employee
laid off and the last employee laid off shall be the first employee rehired
provided said employee has the skill and the ability to perform the job.
          B.  It is agreed by the Company and the Union that all Shop Stewards
and officers of the Union have seniority over all employees in the plant
providing they can do the work that is to be done.
          C.  Any employee who is laid off six (6) consecutive months shall lose
his or her seniority.  However, if he or she is rehired thereafter, such
employee shall return with his or her original seniority.
          D.  The right of seniority in re-employment shall be accorded to a
laid off employee prior to new employees being hired, provided such said off
employees responded to a call to report for work not more than three (3) working
days after notice has been sent to him or her by registered mail, return receipt
requested, to his or her last-known post office address.
          E.  Preference in assignment to shift work and choice of newly-created
jobs shall be given to employees having seniority provided said employees have
the skill and ability to perform the job.  An employee does not have the right
to "bump" into any 

                                       14

 
other job function. The Employer shall not be required to train employees for
any job including those which are newly created.
          F.  Seniority right to a laid off employee will continue to accumulate
while he or she is laid off.
          G.  It is agreed between the parties that seniority by department will
prevail for temporary daily work assignments.

ARTICLE XVI
- - -----------
                          NOTICE TO AND FROM THE UNION
                          ----------------------------

          A.  A seniority list, including name, category, rate of pay, and
starting date, shall be submitted every other month.
          B.  Remittance sheets, including names, new employees' starting date,
old employees' termination date, gross wages earned for the preceding month for
each employee, the amounts of dues and initiation checked-off, contributions to
fringe benefit funds, and for what monthly periods, shall be remitted once a
month, within ten (10) days after the first day of each month, together with
checks made payable to the proper fringe benefit fund and dues and initiation to
Local 875, I.B.T.
          C.  All necessary cards, properly signed, to the fringe benefit funds,
from a new employee, must be submitted with the remittance sheet.
          D.  For failure to submit the remittance sheet within ten (10) days
after it is due, then in such event, the Union at its option, may take economic
action until it is submitted, and the Employer shall pay to employees for all
time out on strike or work stoppage their regular rate of pay.

                                       15

 
          E.  If the Employer fails to notify the Union of the hiring of a new
employee and/or the rehiring of employee, then in such event, the Employer shall
be responsible from the first day due, for all monies as if he or she collected
same to the Union for dues, initiations and contributions to all fringe benefit
funds as described herein.
          F.  For failure to remit monies due to the Union for dues, initiations
and any fringe benefit fund before the sixty-first (61st) day of accrual, the
Union, at its option, may charge a bookkeeping fee of two (2%) percent per month
or any part thereof until it is remitted, provided that not less than ten (10)
days written notice of the proposed charge is given to the Employer and the
Employer fails to remit within ten (10) days.
          G.  If the Employer fails to notify the Union of the termination of an
employee, for any reason, then in such event, the Employer shall be responsible
for all monies, as if he or she collected same, to the Union for dues,
initiation and contributions to all fringe benefit funds, if any, as described
herein.
          H.  The Trustees of the Legal Plan and, if the Employer is then making
contributions to the Pension Fund the Trustees of the Pension Fund, may audit
the Employer's payroll books and records after giving reasonable notice to the
Employer, and if contributions are incorrect, the Employer shall pay the cost of
such audit and all legal fees necessary and incident to collect the same.

                                       16

 
          I.  In the event of default by the Employer in the payment of
contributions to the Funds mentioned in this Agreement, the Trustees may take
legal action to obtain payment, including but not limited to, the commencement
of arbitration proceedings for such purposes before an Arbitrator, selected by
the appropriate Trustees.  All expenses thereto, including but not limited to,
the fee and expenses of the Arbitration and any filing or other administrative
fee plus reasonable attorney's fees fixed at twenty (20%) percent of the
indebtedness, together with interest at a reasonable rate on any monies
determined to be due, shall be chargeable to and an obligation of, the
contributing Employer against whom such suit is brought or such arbitration
proceedings is commenced.  The Arbitrator may schedule a hearing on twenty-four
(24) hours notice by regular or certified mail.

ARTICLE XVII
- - ------------
                                 BULLETIN BOARD
                                 --------------

          The Employer will provide the Union with a Bulletin Board in an
appropriate location in the plant to be used by the Union for posting of all
Union notices and literature.

ARTICLE XVIII
- - -------------
                               NON-DISCRIMINATION
                               ------------------

          No employee shall be discriminated against, directly or indirectly,
because of his or her membership in or activity on behalf of the Union, nor will
the Employer, directly or indirectly discourage membership in the Union, and the
provisions of this Agreement shall apply to all employees without discrimination
as to gender, color, race, creed, age or national origin, or disability.

                                       17

 
ARTICLE XIX
- - -----------
                         SAFETY AND SANITARY CONDITIONS
                         ------------------------------

          The Company shall furnish and maintain safe and healthful sanitary
conditions, including clean and adequate locker accommodations, washing
facilities and toilets.

ARTICLE XX
- - ----------
                                   VISITATION
                                   ----------

          Union representatives shall be given the right to enter the plant
premises at all reasonable times for the purpose of investigating grievances and
to secure the enforcement of the contract and for such other purposes as may be
necessary; provided, however, that prior to entering the plant property they
shall first advise the front office of their presence and intention to enter the
plant property.

ARTICLE XXI
- - -----------
                                LEAVE OF ABSENCE
                                ----------------

          A.  In accordance with the Family and Medical Leave Act of 1993 (the
"FMLA"), an employee who has been employed by the Employer for at least twelve
(12) months (at the time the leave commences) and has worked at least 1,250
compensable hours during the twelve (12) months prior to the leave is entitled
to a total of twelve (12) weeks of unpaid leave during any twelve (12) month
period for the reasons listed in the FMLA.  An employee who takes a leave of
absence under FMLA is required to use his or her accrued vacation, sick or
personal days during the leave period.  For example, when two weeks of accrued
paid leave is used by an employee for FMLA purposes, the Employer will provide
ten (10) weeks unpaid leave to total twelve (12) weeks.  A leave of 

                                       18

 
absence under FMLA will be granted in accordance with Employer's then existing
procedures. The FMLA and the regulations promulgated thereunder will govern the
procedures for a leave of absence unless state law provides greater family and
medical leave rights in which case the state law will govern.
          B.  Any employee upon application in writing may be granted a leave of
absence without pay not to exceed one (1) month because of official Union
business.  No more than five (5%) percent of the work force may be out on leave
of absence at any one time.  This leave of absence must be authorized by the
Distribution Manager.

ARTICLE XXII
- - ------------
                               EXISTING PRACTICES
                               ------------------

          All benefits of employment in existence at the effective date of this
Agreement and not modified by the Agreement shall be continued without
modification.

ARTICLE XXIII
- - -------------
                             NO STRIKE - NO LOCKOUT
                             ----------------------

          During the term of this Agreement the Employer agrees that they will
not declare or authorize a lockout unless the Union fails to comply with an
arbitration award within forty-eight (48) hours after the award has been made.
Neither the Union nor its officers, agent or representative shall be liable for
any acts of any person or any workers participating in any strike or work
stoppage unless such act or strike or work stoppage has been expressly
authorized by the Union and in conformance with the 

                                       19

 
provisions of the Constitution of the Union and the provisions of the
International Union Constitution.
          The parties further agree that any strike, slowdown or stoppage not
authorized as herein specified shall not be deemed a violation of this
Agreement.
          In the event of an unauthorized slowdown or work stoppage, the Union
agrees within twenty-four (24) hours after receipt of notice thereof from the
Employer solely to endeavor in good faith to bring about a return to work of its
members who have stopped work.  Upon failure of the employees to return to work
within the said twenty-four (24) hours, the Employer may take appropriate action
with respect to such employee or employees.  Compliance by the Union in good
faith herewith shall be deemed full compliance with the Union's obligation
hereunder.

ARTICLE XXIV
- - ------------
                                GUARANTEED WORK
                                ---------------

          Employees regularly scheduled for full-shift work shall be given eight
(8) hours work or the monetary equivalent thereof unless notified on the
previous day not to report, except in cases of power failure, Acts of God or
other such circumstances beyond the Employer's control.  This clause shall not
apply to part time or premium work except that employees called in as opposed to
being scheduled for their regular shift shall be guaranteed at least four (4)
hours work or the monetary equivalent thereof.

                                       20

 
ARTICLE XXV
- - -----------
                                   TRANSFERS
                                   ---------

          Employees performing work in one classification and transferred to
perform work in a classification for which the wage rate is lower than that of
the original classification, shall receive pay at the rate set forth in their
original classification.  Employees required to do work in a classification for
which there is a higher rate of pay shall train in that classification for a
maximum of sixty (60) days.  Should an employee pass his or her training period,
he or she shall retroactively receive fifty (50%) percent of the higher rate for
time trained.  Upon passing his or her training period, he or she shall
thereafter receive the higher rate.  It is agreed that the furniture refinishing
training period shall be a maximum of four (4) months.

ARTICLE XXVI
- - ------------
                                   DISCHARGE
                                   ---------

          No employee shall be discharged except for just and sufficient cause.
Any employee, if he or she is discharged shall be granted an interview with his
or her Shop Steward.
          Whenever the Union disputes and/or disagrees with the justification
for the discharge of any employee, the Union shall provide the Employer with a
written notice of its dispute and/or disagreement within one (1) working day of
the time that the individual is required to leave the plant premises or the
chief steward receives official notification of the Employer's intention to
discharge the said employee, whichever occurs later.  The dispute and/or
disagreement shall thereupon be adjusted 

                                       21

 
between the parties in the manner provided for in Article XIV of this Agreement.
Any employee who has been discharged and subsequently reinstated as a result of
invoking the machinery for resolving dispute as set forth in Article XIV may be
reinstated to his or her former job with full pay.
          New employees shall have a sixty (60) day probationary period during
which time the Employer reserves the right to discharge, and such discharge
shall not be subject to the grievance procedure.  This sixty (60) day period
shall consist of sixty (60) days on the job, working at the warehouse.

ARTICLE XXVII
- - -------------
                             COLLECTIVE BARGAINING
                             ---------------------

          The Company agrees that it will negotiate with Union during the term
of this Agreement concerning any matter involving wages, hours and working
conditions of the employees, which is not specifically provided for in this
Agreement and which is not a subject of any grievance.

ARTICLE XXVIII
- - --------------
                                 SUBCONTRACTING
                                 --------------

          The Company will not, so long as equipment and personnel are
available, subcontract work which is customarily performed by employees in the
bargaining unit, to any other company.

ARTICLE XXIX
- - ------------
                              PROTECTION OF RIGHTS
                              --------------------

          Picket Line:  It shall not be a violation of this Agreement, and shall
          -----------                                                           
not be cause for discharge or disciplinary action, in the event an employee:
(1) refuses to enter upon any property of his or her Employer involved in a
lawful primary 

                                       22

 
labor dispute or refuses to go through or work behind any lawful primary picket
lines at his or her Employer's place of business, including primary picket lines
of Union's parties to this Agreement.

ARTICLE XXX
- - -----------
                                 ASSIGNABILITY
                                 -------------

          This Agreement shall be binding upon the parties hereto, their
successors and assigns.

ARTICLE XXXI
- - ------------
                                 EFFECTIVE DATE
                                 --------------

          All the terms and conditions of this Agreement shall be effective as
of December 28, 1995, except as otherwise indicated.

ARTICLE XXXII
- - -------------
                                  SEPARABILITY
                                  ------------

          It is understood and agreed that if any provision of the Agreement or
the application of such provision to any person or circumstances shall be held
invalid, the remainder of this Agreement or the application of such provision to
other person or circumstances shall not be affected thereby.

ARTICLE XXXIII
- - --------------
                             MINIMUM STARTING WAGES
                             ----------------------

          The Employer agrees that in no event shall it pay its employees less
than the minimum wages decreed by the New York State and/or Federal Agencies
having jurisdiction thereof during the term of this Agreement.
          Upon completion of the sixty (60) day probationary period, employees
shall receive thirty (30) cents per hour.

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ARTICLE XXXIV
- - -------------
                                   SICK LEAVE
                                   ----------

          The Employer agrees to grant to all of its eligible employees covered
by this Agreement, six (6) days per calendar year for sick leave.  Should any
sick days not be used, the monetary equivalent of the unused portion shall be
paid to the employees by Christmas of each calendar year.
          A new employee must work six (6) months to be eligible for sick leave.

ARTICLE XXXV
- - ------------
                                BEREAVEMENT PAY
                                ---------------

          Employees shall be able to receive up to three (3) days mourning leave
with pay in the event of the death of an employee's spouse, mother, father,
brother, sister, child, grandparent, grandchild, current mother-in-law or
current father-in-law.  This shall be a make-whole provision.  If death occurs
over a weekend, vacation, etc., an employee shall receive bereavement pay for
actual work days lost only.  Proof of relationship and proof of death will be
required.

ARTICLE XXXVI
- - -------------
                                 SEVERANCE PAY
                                 -------------

          If the Employer goes out of business, each employee who has six (6)
months of seniority or more, shall receive one (1) week's severance pay.

ARTICLE XXXVII
- - --------------
                                 MISCELLANEOUS
                                 -------------

          The Employer will use its best efforts to secure checks for the night
shift only, the evening prior to the normal 

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distribution of checks. Checks must not be cashed until the following day.

ARTICLE XXXVIII
- - ---------------
                                    DURATION
                                    --------

          The foregoing Agreement between the Employer and the Union shall
continue in full force and effect from December 28, 1995 to December 29, 1998
and shall be automatically renewed from year to year thereafter unless at least
sixty (60) days prior to any expiration date either party desiring to terminate
or modify Agreement shall so notify the other party in writing.

          IN WITNESS WHEREOF the Employer has caused these present to be signed.

SEAMAN FURNITURE COMPANY, INC.             LOCAL 875, AFFILIATED WITH
                                           INTERNATIONAL BROTHERHOOD OF
                                           TEAMSTERS



BY:                                        BY:
   ---------------------------                ---------------------------

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