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                                                                EXHIBIT 10.13




                                    PROPOSED

                              LADD FURNITURE, INC.

                        1996 LONG-TERM INCENTIVE PROGRAM

                                 PLAN HIGHLIGHTS


     1. The  Long-Term  Incentive  Program  consists  of an annual  award of the
following two elements:

                  -      Stock Option Grants

                  -      Performance Bonus payable in cash and stock at the
                         end of a 3- year planning period (1996-1998).

     2. Award levels are based on a percentage of the participant's  base salary
in effect when the award is granted as follows:

               a) LADD President (CEO) and Executive Vice Presidents

                                                 % of Salary

                  Stock Options                        40.0%
                  Performance Bonus                    25.0%
                              Total                    65.0%

               b) Operating Company  Presidents,  VP  Human  Resources,  VP
                  Market Development

                                                  % of Salary

                  Stock Options                         25.0%
                  Performance Bonus                     25.0%
                              Total                     50.0%

     3. Valuation of Performance  Bonus at the end of the 3-year planning period
will be based on the following  performance criteria achieved by LADD Furniture,
Inc.

                
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        AGGREGATE EPS FOR 1997 AND 1998

        Minimum Incentive          $ 1.80

        Target Incentive           $ 2.45

        Maximum Incentive          $ 2.90


     4. The  Performance  Bonus  will be  valued  at the end of the  performance
period using a graduated  scale ranging  between 12.5% and 37.5% of base salary.
Minimum performance levels are required to receive any payment.

        Minimum Incentive  -    12.5% of Base Salary

        Target Incentive   -    25.0% of Base Salary

        Maximum incentive  -    37.5% of Base Salary

          Payments  for  Performance  Bonus  earned will be made by June 1,
          1999. Payments will be made 50% in cash and 50% in shares of LADD
          stock.

     5. Stock  Options  will be granted at market price on the day of the grant,
and, as long as the  participant  remains an employee of LADD, will be vested as
follows:

                              After 1 Year   25%
                              After 2 Years  50%
                              After 3 Years  75%
                              After 4 Years 100%

     6. The participant must be an employee at the end of the planning period to
receive any payment for the Performance  Bonus. If the participant  changes LADD
business  units  during the  planning  period,  a  pro-rata  share of the earned
Performance Bonus will be granted for the period the individual  participated in
the Long-Term Incentive Program in the respective business units.

     7.  Participants  who enter the plan  other  than at the  beginning  of the
planning period will receive stock options and performance  bonus as recommended
by  management  and  approved  by the  Compensation  Committee  and the Board of
Directors.

   
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     8.  When a plan  participant  retires  (minimum  age 55),  dies or  becomes
disabled during a three-year  plan period,  the  Compensation  Committee and the
Board of Directors will determine the amount and terms of payment of performance
bonus earned.

     9. The company has the sole right to exclude from the operating  profits of
each organizational unit items such as, but not limited to, extraordinary income
from the sale of assets, litigation recoveries,  income or expenses attributable
to changes in accounting methods,  bad debt charges and inventory valuations and
similar items. Such determinations will be made without recourse by an Incentive
Plan participant as to the effect, if any, on the incentive payment amount.


     10. The earned  performance  bonus paid in stock will be  restricted  from
sale for a period of 2 years from issue date.


     March 4, 1996



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