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                                                                  EXHIBIT 10.11




                              LADD FURNITURE, INC.

                          1994 LONG-TERM INCENTIVE PLAN

                                 PLAN HIGHLIGHTS


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

          - Incentive Stock Options

          - Restricted Stock Grants

          -  Performance  Units  convertible  to  cash  at the  end of a  3-year
     planning period; par value is $100 per unit

     2. Award levels are based on a percentage of the participant's  base salary
in effect at the beginning of the planning period as follows:

          a) Chairman, Vice Chairman and Executive Vice President

                                                % of Salary

          Incentive   Stock   Options             30.0%
          Restricted   Stock  Grants              18.8%
          Performance Units                       18.7% 
                      Total                       67.5%

          b) Division  Presidents,  Chief Financial Officer, VP Human Resources,
     VP Market Development

                                                % of Salary

            Incentive Stock Options               12.5%
            Restricted Stock Grants               12.5%
            Performance Units                     25.0%
                        Total                     50.0%


           
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          c) Selected Division & Corporate Key Management

                                                 % of Salary

             Incentive Stock Options               10.0%
             Restricted Stock Grants               10.0%
             Performance Units                     20.0%
                         Total                     40.0%

     3.  Performance  Unit  payments will be based on the  achievement  of sales
growth and return on investment goals as follows:

          a) For Corporate Participants

                          LADD 3-Year Average ROE            55%
                          LADD 3-Year Sales Growth           45%
                                    Total                   100%

          b) For Division Participants

                          Divisional 3-Year Average ROIC     55%
                          Divisional 3-Year Sales Growth     45%
                                    Total                   100%


     4. Valuation of Performance  Units at the end of the 3-year planning period
will be based on the following performance levels:

                                  ROE   ROIC    Sales Growth

          Minimum Incentive        8%   12%     Industry Growth Rate*

          Target Incentive        12%   16%     Industry Growth Rate* + 1.5%

          Maximum Incentive       15%   20%     Industry Growth Rate* + 3%

          *Industry Growth Rate defined to be U.S. Commerce Department Furniture
     Growth Index. The Board reserves the right to change or modify the index if
     experience  shows  the  index not to be a good  measure  of the  Industry's
     performance.

        

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     5. Payout per Performance Unit will be on a graduated scale with a value of
$50 to $150 per unit.  Minimum  performance  levels are  required to receive any
payment.

        -  Minimum incentive    -     $50 per unit

        -  Target incentive     -     $100 per unit

        -  Maximum incentive    -     $150 per unit

        Payments of  Performance  Units  earned for 1994 - 1996 will be
        made by June 1, 1997.

     6.  Incentive  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%

     7.  Restricted  Stock  Grants will permit a  participant  to purchase  LADD
shares for $.10 per share.  The  shares may be  repurchased  by LADD at the same
price if the  participant  ceases to be an  employee of LADD before 5 years have
elapsed.

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

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

     10.  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
units earned and the amount of stock to be repurchased.



                                                             February 24, 1994






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