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                                 EXHIBIT 10(A)


                                                                  July 12, 1999



Robert Kevin Caldwell
Post Office Box 128
Florence AL  35631

Dear  Kevin:

         I am very pleased that you have agreed to join Martin Industries, Inc.
(the "Company") as Vice President of Manufacturing. In order to provide you
with a degree of financial stability, I am authorized on behalf of the Company
to extend to you a continuation of your salary in the event of the "Termination
of Your Employment" during the "Protection Period," as those terms are defined
below.

         I.       Protection Period. The "Protection Period" shall be that
period of time from the date of this letter through and including July 11,
2000.

         2.       Salary Continuation. If there is a Termination of Your
Employment during the Protection Period, you will continue to receive your then
current salary for the 6-month period following the date of the Termination of
Your Employment, which will be paid on a semi-monthly basis and shall be
subject to all required withholding taxes.

         3.       Additional Severance Pay. If your semi-monthly "earned income
" as defined below, during the second 6-month period following the Termination
of Your Employment is less than the semi-monthly salary continuation received
by you pursuant to paragraph 2 above, the Company will pay you the difference
between that semi-monthly salary continuation and the amount of earned income
which you actually receive or are entitled to receive during each semi-monthly
period in that second 6-month period. Those payments will be made on a
semi-monthly basis and shall be subject to all required withholding taxes.

         4.       Definition of Termination of Your Employment. "Termination of
Your Employment" for purposes of this letter is defined to mean the termination
of your full-time employment with the Company for any reason other than (i)
your death, (ii) your permanent disability (as defined in any disability plan
maintained by the Company or, in the event there is no such plan or definition,
your inability to perform your full-time duties for a period of 60 consecutive
days due to a physical or mental illness or incapacity), (iii) your voluntary
termination of employment with the Company, or (iv) the termination of your
employment by the Company for cause as determined in the Company's reasonable
judgment (which shall include your conviction for a felony, your gross or
willful misconduct which is not in the Company's best interest, and any act or
omission on your part which results in your receiving an improper benefit at
the Company's expense).


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Robert Kevin Caldwell
July 12, 1999
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         5.       Computation of Earned Income. For purposes of this letter,
"earned income" shall mean any income either received by you or available to
you as a result of (i) your employment with another employer, (ii) income
earned by you as a sole proprietor or partner, or (iii) income earned by you as
an independent contractor. In order for you to be entitled to any additional
severance pay as provided in paragraph 3 above, you will need to certify in
writing to the Company on the 15th and 30th of each month during the second
6-month period following the Termination of Your Employment as to whether or
not you have earned income or are entitled to earned income and, if so, the
source and amount of that income.

         6.       Agreement Not to Compete. No additional severance payments
shall be paid to you at any time that you are employed by, or otherwise
associated with, a company or person that is in competition with the Company.

         7.       Employment Status. Notwithstanding any provisions in this
letter, you will remain an at-will employee of the Company, whose employment
may be terminated by the Company at any time subject to your rights to receive
the salary continuation and additional severance payments as specified in
paragraphs 2 and 3 above, respectively.

         I hope that this letter and the benefits extended hereunder address
your need for financial security. I look forward to your continued employment
with the Company and thank you for your ongoing efforts.

                               Very truly yours,

                               MARTIN INDUSTRIES, INC.



                               By:     /s/ Robert L. Goucher
                                     Robert L. Goucher
                                     President and Chief Executive Officer

RLG/dm