EXHIBIT 10.14




                              LADD FURNITURE, INC.

                         1996 MANAGEMENT INCENTIVE PLAN

                                 PLAN HIGHLIGHTS


     1.  Incentive  payments  based  on  financial  performance  and  individual
performance as follows:

              For Corporate Participants

                      achievement of PAT target
                      achievement of ROAE target (selected management)
                      achievement of individual objectives

              For Operating Company Participants
                      achievement of PBT targets
                      achievement of ROIC targets (presidents only)
                      achievement of individual objectives

     2. No incentive  payments  will be made to any  individual if the operating
unit to which the  individual  is assigned  does not achieve  minimum PBT or PAT
targets. Incentive payment expense will be accrued in results before calculation
of profit.

     3.  Total of 172  officers  and key  managers  to  participate  in the plan
(Exhibit I). Maximum  incentives  range from 10% to 100% of January 1, 1996 base
salary.   Incentive  payments  are  based  on  achieving   performance  criteria
established by senior management.

     4. Program includes $50,000 discretionary  incentive pool for extraordinary
performance by LADD employees not covered by the Management Incentive Plan.

     5.  Estimated  incentive  payout  at  planned  performance  levels  is $1.4
million.

     6.  Incentives  earned in 1996  will be paid in cash  after  completion  of
annual audit (not later than March 31, 1997).

     7. In the event of a transfer of a participant during the fiscal year to an
operating unit other than the unit in which  originally a Plan  participant,  an
appropriate  adjustment will be made in Incentive Plan eligibility  pro-rata for
the time worked in each unit.

     8. In the event of a promotion of a participant  within the same  operating
unit,  an  appropriate  adjustment  will be made in Incentive  Plan  eligibility
pro-rata.  In the  event of a  demotion  which  would  place  participants  in a
position  substantially  different  from that in which they were  nominated as a
participant, an appropriate adjustment may be made as to the amount of incentive
payment for




     which they are eligible as determined by the Compensation  Committee of the
Board of Directors.

     9.  Participants  will  forfeit  all  income  from  plan if  employment  is
terminated prior to January 1, 1997 for any reason other than death,  disability
or retirement (over 55).

     10. The 1996 Management Incentive Plan only applies to fiscal year 1996.