<PAGE>




                                                                   EXHIBIT 10.9




            NORTH CAROLINA    )
                              )               EXECUTIVE EMPLOYMENT AGREEMENT
            GUILFORD COUNTY   )


     THIS  AGREEMENT,  made and entered into the 1st day of January,  1996,  and
effective as of January 1, 1996,  by and between LADD  Furniture,  Inc., a North
Carolina corporation ("Company"), and Donald L. Mitchell, an individual resident
of North Carolina ("Executive");

                                   WITNESSETH:

     WHEREAS, Company is engaged in the manufacture,  distribution,  and sale of
furniture; and

     WHEREAS,  Company  desires  to  employ  Executive  as  its  Executive  Vice
President  and  Executive  desires to accept  such  employment  on the terms and
conditions hereinafter set forth;

     NOW,  THEREFORE,  in consideration of the mutual promises contained herein,
the parties agree as follows:

     1.  Employment.  Company hereby  employs  Executive,  and Executive  hereby
accepts  employment and agrees to remain in the employ of the company during the
term of this Agreement, on the terms and conditions hereinafter set forth.

     2. Term of Employment.  Subject to the  provisions in Section 9 below,  the
term of this  Agreement  shall be for a two-year  period  beginning  on the date
hereof  and  terminating  on January 1, 1998,  unless  otherwise  terminated  as
provided herein.

     3.  Nature of  Employment.  Executive  is  employed  as Vice  President  of
Company.  Consistent  with  such  position,  Executive  shall,  subject  to  the
direction of the Chief Executive  Officer and the Board of Directors of Company,
direct and manage the affairs of the Company as assigned. Executive shall report
to and be responsible to the Chief  Executive  Officer.  During the term of this
Agreement and any extensions or renewals thereof,  Executive shall have no other
employment  of any nature  whatsoever  without  the prior  consent  of  Company.
Accordingly,  unless otherwise  approved by Company,  Executive agrees to devote
his full  working time to the business of Company;  provided,  however,  nothing
herein contained shall restrict or prevent Executive from personally and for his
own  account  owning and  dealing in stocks,  bonds,  securities,  real  estate,
commodities,  or other investment  properties for his own benefit or the benefit
of his family.  Further,  nothing  herein  contained  shall  restrict or prevent
Executive  from  serving on the Board of  Directors of any entity which does not
directly of indirectly compete with Company.

                      
<PAGE>





     4. Compensation.

     (a) Base Salary.  Compensation  to Executive  for the services  rendered on
behalf of Company  during the term of this  Agreement  shall be no less than Two
Hundred Seventy-Five  Thousand Dollars ($ 275,000.00) per year, payable in equal
monthly  installments.  From  time to time  during  the term of this  Agreement,
Executive's  compensation may be increased if approved by the Board of Directors
of  Company,  but  shall in no event be  decreased  from the  amount of the base
salary in effect at that time.  Company  shall review  Executive's  compensation
hereunder at least on an annual basis.

     (b)  Incentive  Compensation.  In  addition  to  Executive's  base  salary,
Executive shall be entitled to participate in incentive  compensation  plans and
programs  generally  available  to  executives  of the  Company,  provided  that
performance  goals and award  targets used in the  computation  of awards to the
Executive  hereunder shall be no less favorable than those which are used in the
computation of awards to other executives of the Company and shall recognize the
level of responsibility of the Executive. The annual incentive opportunity shall
have a maximum no less than eighty  hundred  percent (80%) of  Executive's  then
current base salary.

     5.  Expenses.  Executive is  authorized  to incur  reason able  expenses in
connection  with the  business of  Company,  including  expenses  for travel and
similar items.  Company will reimburse  Executive for all such expenses upon the
presentation  by  Executive,  from  time to  time,  of an  itemized  account  of
expenditures.

     6.  Vacation.  Executive  shall be entitled to paid  vacations  during each
calendar year of the term of this  Agreement at such times and for such duration
as may be determined by the Chief Executive Officer of the Company,  taking into
consideration  the needs and  requirements of Company for Executive's  services;
provided,  however,  the  minimum  paid  vacation  to which  Executive  shall be
entitled in any calendar year is four (4) weeks.

     7. Death  During  Employment.  If  Executive  dies  during the term of this
Agreement,  Company  shall pay to the estate of Executive  the  compensation  to
which he would otherwise be entitled through the end of the month in which death
occurs in  accordance  with  Section 4(a) above,  plus the sum of Five  Thousand
Dollars  ($5,000.00) as an additional  death benefit.  Company shall also pay to
the estate of Executive an amount equal to any bonus or other incentive payments
which would  otherwise have been due to Executive had Executive been employed as
of fiscal year end,  pro-rated to date of death.  This Agreement shall thereupon
terminate,  and  Company  shall  have no  further  obligation  to the  estate of
Executive.

     8. Permanent Disability During Employment. If Executive becomes permanently
disabled during the term of this  Agreement,  Company shall pay to Executive the
compensation, in accordance with Section 4(a) above, to which he would otherwise
be entitled to the end of the month in which such permanent  disability  occurs.
Thereafter,  the Executive shall continue to receive his then base salary, minus
any  payments  provided by the  Company's  benefit  plans and by any  government
sponsored program, for a twenty-four (24) month period from the

                                        2

<PAGE>

     date of permanent disability.  This Agreement shall thereupon terminate and
Company shall have no further  obligation to Executive except as may be provided
under  Company's  short-term and long-term  disability  plans during the term of
such  disability  and any  prorata  portion  of any  bonus  or  incentive  plan.
Permanent  disability  for purposes of this  Agreement  shall mean a physical or
mental condition of Executive that renders Executive incapable of performing the
essential duties of his job and which condition shall be medically determined to
be of permanent duration as same is construed under Company's disability plans.

     9. Renewal.  Executive's term of employment shall be automatically extended
upon the same terms and  conditions  contained  herein for  successive  one-year
periods unless a written notice of termination is given by either party at least
90 days before the end of the term of  employment  or any renewals or extensions
thereof.  In the  event the  Company  gives  timely  notice  to  terminate  this
Agreement,  the  severance  provision of Section 11  pertaining  to  termination
without cause shall become effective.

     10. Termination for Cause. Company may terminate Executive's  employment at
any time "for cause".  The term "for cause" shall mean (i) a material default or
other breach by Executive of his obligations under this Agreement, (ii) material
failure by Executive to diligently and competently perform his duties under this
Agreement,  which shall be  determined  by  Company's  Board of Directors in its
reasonable  discretion,  (iii) insubordination or other act or acts by Executive
detrimental to Company or damaging to Company's  relationships  with  customers,
suppliers or employees or (iv) fraud, dishonesty,  misappropriation of Company's
assets,  or  conviction of a felony.  Upon the  occurrence of (i), (ii) or (iii)
above,  Company  shall be  entitled to  terminate  the  employment  relationship
hereunder upon thirty (30) days prior written notice to Executive,  which notice
shall  state the reason for such  termination  and shall  provide  Executive  an
opportunity  to remedy or cure such cause during such  period.  If such cause is
not  remedied or cured  during such period,  Company may  terminate  Executive's
employment  immediately.  In the event of a termination for cause, Company shall
have no obligation or liability to Executive under this Agreement except for the
compensation to which he is entitled through the end of the month of termination
in accordance with Section 4(a) above.

     11. Termination  Without Cause.  Company shall be entitled to terminate the
employment  relationship  hereunder  without  cause at any time upon thirty (30)
days prior written notice to Executive.  In such event,  Executive, if requested
by Company,  shall continue to render his services up to the date of termination
and shall be paid the  compensation  to which he is entitled  through the end of
the month of termination in accordance with Section 4(a) above. In addition,  if
Company  terminates  this  Agreement  for any reason  other  than for cause,  as
specified  in Section 10 above,  the  Executive  shall be entitled to receive in
twenty-four  (24) equal monthly payments in an amount equal to two times the sum
of (i) his then  current base salary in  accordance  with Section 4(a) above and
(ii) the average annual incentive payments to the Executive during the preceding
three (3) years  less  earned  income  received  during the  24-month  severance
period.The  Company shall  thereafter  have no other  obligation or liability to
Executive under this Agreement.


                                       3

<PAGE>



     
     12.  Termination  upon  Change of  Control.  In the  event of a "change  in
control" of the Company (as  hereinafter  defined),  the Executive may terminate
his employment for Good Reason.  For purposes of this  Agreement,  "Good Reason"
shall mean the occurrence of any of the following  events during the twelve (12)
months  immediately  preceding or following  the  effective  date of a change in
control of the Company:

     (a) a material change in the scope of the  Executive's  assigned duties and
responsibilities  from those in effect  immediately prior to a change in control
of the  Company  or the  assignment  of  duties  or  responsibilities  that  are
inconsistent with the Executive's status in the Company;

     (b) a reduction by the Company in the Executive's  base salary or incentive
compensation as in effect on the date of a change in control;

     (c) the Company's  requirement  that the Executive be based  anywhere other
than the  Company's  office at which he was based prior to the change in control
of the Company; or

     (d) the failure by the Company to  continue to provide the  Executive  with
benefits  substantially  similar  to  those  specified  in  Section  14 of  this
Agreement.

     If the Executive shall  terminate his employment for Good Reason,  then the
Company  shall pay him a lump sum  severance  payment in an amount  equal to two
times the sum of (i) his then  current  base salary and (ii) the average  annual
incentive  payments  to the  Executive  during  the  preceding  three (3) years.
Further,  upon termination for Good Reason,  all outstanding stock options shall
become immediately exercisable.

     For purposes of this  Agreement,  a "change in control"  shall be deemed to
have occurred when (i) any person,  corporation, or group of associated persons,
excluding  affiliates  of the  Company,  acquires a  beneficial  ownership of an
aggregate of more than fifty  percent  (50%) of the then  outstanding  shares of
voting  stock of the  Company  or (ii) a merger  or  consolidation  to which the
Company is a party and where the Company is not a surviving or continuing entity
has been  completed.

     13.  Property of Company.  Executive  agrees that upon the termination  
of his  employment  he will turn over to Company  all  property  of
Company which has come into his possession while an Executive of Company.

     14. Additional Benefits. During the term of this Agreement and any renewals
or  extensions  thereof,  Company  shall keep and  maintain,  for the benefit of
Executive, life insurance having a death benefit of not less one hundred percent
(100%) of base pay (not to
        
                                        4

<PAGE>


     exceed  $300,000) and disability  insurance  that will provide  Executive a
benefit of not less than  sixty-percent  (60%) of base pay per month  during the
term of any disability.  Executive and, as applicable,  the  Executive's  family
shall also have the right to participate in any Executive benefit plans or other
fringe benefits  adopted by Company for its officers and/or other key management
employees  or as a part of  Company's  regular  compensation  structure  for its
employees,  including any group  hospitalization,  medical,  dental,  accidental
death and disability and long-term disability income replacement insurance plans
and any  retirement  income and capital  accumulation  plans.  All such benefits
shall be in addition to the compensation payments provided by this Agreement.

     15. Covenants by Executive.

     (a)  Non-competition.  During the term of employment  under this  Agreement
including any renewals or extensions thereof,  and for a period of two (2) years
thereafter,  Executive shall not, without the prior written approval of Company,
directly or  indirectly,  as employer,  employee,  partner,  stockholder,  joint
venturer or otherwise,  enter into or in any manner take part in any business or
other  endeavor which would be in  competition  with Company in the  continental
United States as such business is conducted at the time of termination.

     (b) Respect for Economic Relationships. Executive will not, during the term
of his  employment  under this  Agreement  including  any renewals or extensions
thereof, and for a period of two (2) years thereafter,  in any fashion, form, or
manner, either directly or indirectly,  solicit,  interfere with, or endeavor to
entice away from Company any customer or person, firm or corporation,  regularly
dealing with Company or directly or indirectly  interfere with,  entice away, or
cause any other entity to employ any other employee of Company.

     (c) Validity of Covenants. Executive agrees that the covenants contained in
this Section are  reasonably  necessary to protect the  legitimate  interests of
Company,  are reasonable with respect to time,  territory and scope,  and do not
interfere  with the interests of the public.  Executive  further agrees that the
descriptions  of the  covenants  contained  in  this  Section  are  sufficiently
accurate  and  definite  to inform  Executive  of the  scope of such  covenants.
Executive  acknowledges  that  prior to  entering  into  this  Agreement  he was
employed  "at will",  and agrees  that the term of  employment  and  termination
provisions contained in Sections 2, 9, 10 and 11 above constitute fully adequate
and sufficient  consideration for the covenants  contained in Sections 15 and 17
of this Agreement.

     (d) Specific Performance.  Executive agrees that a breach or violation  
of any of the  covenants  under this Section will result in immediate and  
irreparable  harm to  Company  in an amount  which  will be  impossible  to
ascertain at the time of the breach or violation  and that the award of monetary
damages will not be adequate  relief to Company.  Therefore,  the failure on the
part of Executive to perform all of the  covenants  established  by this Section
shall give rise to a right
         

                                        5

<PAGE>

     to Company to obtain  enforcement of this Section in a court of equity by a
decree of specific performance or other injunctive relief. This remedy, however,
shall be cumulative and in addition to any other remedy Company may have.

     16. Patent, Trade Dress and Trademark Assignment.  Executive agrees without
additional  compensation  to assign promptly to Company all rights,  title,  and
interest  in and to any and  all  trade  secrets,  inventions,  letters  patent,
applications  for letters  patent,  trade dress,  and trademarks  whether or not
subject to state or federal trademark during the term of employment hereunder if
related to the then current products and activities of Company,  such activities
to include, without limitation,  product development by Company, or if developed
or made with the use of its  facilities,  equipment,  materials,  personnel,  or
trade  secrets,  or result  directly  from any work  performed by Executive  for
Company. Executive further agrees to disclose promptly to Company any such trade
secrets,  inventions,  letters patent,  applications  for letters patent,  trade
dress, and trademarks,  and, at the request and expense of Company, to apply for
letters  patent or  registration  thereon in every  jurisdiction  designated  by
Company.

     17. Confidential Information. Executive agrees both during the term of this
Agreement and thereafter to keep secret and confidential all information labeled
confidential  or not generally  known which is heretofore or hereafter  acquired
concerning the business and affairs of Company,  including  without  limitation,
information  regarding  trade  secrets,  trade  dress,   proprietary  processes,
confidential  business  plans,  market  research  data and financial  data,  and
further  agrees not to disclose any such  information  to any person,  firm,  or
corporation  or use the same in any  manner  other  than in  furtherance  of the
business or affairs of Company or unless such  information  shall become  public
knowledge by other means.  Executive agrees that such information is a valuable,
special,  and unique  asset of  Company.  Upon the  termination  of  Executive's
employment  with  Company,  Executive  shall  immediately  return to Company all
documents,  records, notebooks, and similar repositories of information relating
to confidential information of Company and/or the development of any inventions.

     18. Waiver of Breach. The waiver by Company or Executive of any breach of a
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach by the parties.

     19.  Notice.   All  notices,   requests,   demands,   payments,   or  other
communications  hereunder  shall be deemed to have been duly given if in writing
and hand  delivered or sent by  certified or  registered  mail,  return  receipt
requested,  to the appropriate  address indicated below or to such other address
as may be given in a notice sent to all parties hereto:



                                        6

<PAGE>



     (a)   If to Company, to:
           LADD Furniture, Inc.
           One Plaza Center
           P. O. Box HP-3
           High Point, NC  27261
           Attn:  Chief Executive Officer

     b)    If to Executive, to:

           Donald L. Mitchell
           2228 Setliff Dr.
           High Point, NC  27265

     20.  Entire  Agreement.   This  Agreement  supersedes  any  and  all  other
understandings  and agreements,  either oral or in writing,  between the parties
hereto with respect to the subject  matter hereof and  constitutes  the sole and
only  agreement  between the parties with respect to said subject  matter.  Each
party  to this  Agreement  acknowledges  that no  representations,  inducements,
promises,  or agreements,  oral or otherwise,  have been made by any party or by
anyone acting on behalf of any party, which are not embodied herein, and that no
agreement,  statement, or promise not contained in this Agreement shall be valid
or  binding  or of any  force or  effect.  No  change  or  modification  of this
Agreement  shall be valid or binding upon the parties  hereto unless such change
or modification is in writing and is signed by the parties hereto.

     21.  Severability.  If any one or more of the provisions  contained in this
Agreement  shall be held by a court of  competent  jurisdiction  to be  invalid,
illegal,  or  unenforceable  in any  respect for any  reason,  that  invalidity,
illegality,  or  unenforceability  shall not affect any other provisions hereof,
and  this  Agreement  shall  be  construed  as  if  that  invalid,  illegal,  or
unenforceable provision had never been contained herein.

     22. Parties Bound. The terms, promises, covenants, and agreements contained
in this  Agreement  shall apply to, be binding upon, and inure to the benefit of
the  parties  hereto and their  respective  successors  and  assigns;  provided,
however, that this Agreement may not be assigned by Company or Executive without
the prior written consent of the other party.

     23.  Consolidation,  Merger or Sale of Assets.  Nothing  in this  Agreement
shall  preclude the Company from  consolidating  or merging  into,  or with,  or
transferring all or substantially all of its assets to another corporation which
assumes this  Agreement  and all  obligations  and  undertakings  of the Company
hereunder.  Upon such a consolidation  or merger,  the use of the word "Company"
herein shall mean such other  corporation,  and this Agreement shall continue in
full force and effect.

    

                                        7

<PAGE>


     24. Survival.  The provisions of Sections 15 and 17 of this Agreement shall
survive the  termination  of this Agreement and shall continue for the terms set
forth in Sections 15 and 17.


     25.  Captions.  Captions to the  Sections of this  Agreement  are  inserted
solely for the convenience of the parties, are not a part of this Agreement, and
in no way define,  limit,  extend or describe the scope thereof or the intent of
any of the provisions.

     26.  Applicable  Law.  This  Agreement  shall be  construed  and the  legal
relationship  between the parties  determined in accordance with the laws of the
State of North Carolina.

     IN WITNESS  WHEREOF,  the parties  hereto have hereunto set their hands and
seals as of the day and year first above  written,  the  corporate  party acting
through duly authorized officers.


ATTEST:                                 LADD Furniture, Inc.



___________________________             By:_______________________________
Secretary                                  President

(Corporate Seal)



___________________________             ____________________________(SEAL)
(Witness)                               Donald L. Mitchell


                                        8