EMPLOYMENT AGREEMENT

          This Employment Agreement is made and entered into on August 1,
     1996 (the "Effective Date") by and between The Lane Company,
     Incorporated, a Virginia corporation ("Lane") and K. Scott Tyler, Jr.
     ("Executive").

          WHEREAS, Executive is now and has been employed by Lane in senior
     management executive positions and is broadly experienced in all
     facets of Lane's operations; and

          WHEREAS, it is in the best interests of Lane to assure that it
     will have the continued dedication of Executive;

          NOW THEREFORE, for good and valuable consideration and in order
     to induce Executive to remain in the employ of Lane, the parties
     covenant and agree as follows:

          1.     Definitions.  The following terms shall have the following
     meanings for purposes of this Agreement.

          a.     "Cause" means (i) an act or acts of personal dishonesty
          taken by Executive and intended to result in substantial personal
          enrichment of Executive at the expense of Lane, (ii) violations
          by Executive of this Agreement or Executive's employment
          obligations to Lane which are demonstrably willful on Executive's
          part and which are not remedied within a reasonable period of
          time after receipt of written notice from Lane, or (iii) the
          conviction of Executive of a felony involving moral turpitude.

          b.     "Disability" means the incapacity to attend to and perform
          effectively one's duties and responsibilities which continues for
          at least 26 weeks after its commencement, as determined by a
          physician selected by Lane.

          c.     "Employment Period" that period beginning on the Effective
          Date and ending upon Executive's retirement or earlier
          termination of employment.

          2.     Employment.  Lane agrees to employ Executive, and
     Executive agrees to serve Lane in an executive, managerial and
     supervisory capacity, subject to the direction and control of the
     Board of Directors of Lane, all upon the terms and conditions
     hereinafter set forth.  During the Employment Period:

          a.     Executive's position (including, without limitation,
          status, offices, titles and reporting requirements), authority,
          duties and responsibilities shall be at least commensurate in all
          material respects with the most significant of those held,
          exercised and assigned at any time during the 90-day period
          immediately preceding the Effective Date,

          b.     Executive's services shall be performed at the location
          where the Executive is employed on the Effective Date, or at any<PAGE>





          office or location not more than thirty-five (35) miles from such
          location,

          c.     Executive shall continue to receive an annual base salary
          at least equal to the annual base salary payable to the Executive
          by Lane on the Effective Date  ("Base Salary"),

          d.     Executive shall continue to have an annual cash bonus
          potential, either pursuant to the Lane Executive Incentive Plan
          in effect on the Effective Date or pursuant to a similar
          incentive compensation plan of Lane, at least equal to the level
          in existence on the Effective Date ("Annual Bonus"), and

          e.     Executive shall be entitled to participate in all
          incentive, savings and retirement plans, practices, policies and
          programs applicable  to other key executive employees of Lane
          ("Benefit Plans").

     The failure of Lane, without Executive's consent, to comply with the
     terms and conditions of employment as set forth in this Section 2
     shall constitute "Good Reason" for Executive's termination of his
     employment with Lane.

          3.     Best Efforts.  Executive agrees during the Employment
     Period to devote his best efforts and substantially all of his
     business time and attention to the business of Lane, it being agreed
     that the Executive will have complied with this obligation if he
     devotes to the business of Lane his same best efforts and the same
     time and attention to the business of Lane that he has devoted to the
     business of Lane during the twelve months next preceding the Effective
     Date.  Executive agrees that he will perform such other executive
     duties for Lane and for Lane's subsidiaries relating to its business
     as the Board of Directors of Lane may reasonably direct.

          4.     Term.  Subject to the provisions of Sections 4 and 5 of
     this Agreement, either party shall have the right to terminate the
     Employment Period at any time.  If Executive's employment with Lane is
     terminated by Lane, other than for Cause or as a result of his death
     or Disability, or if Executive terminates his employment with Lane for
     Good Reason, then Lane will, for the greater of (a) the period ending
     three years after the Effective Date or (b) a period of one year after
     the termination date (or, if shorter, until Executive reaches "Normal
     Retirement Age" (as such concept is used in the primary retirement
     plan in which Executive is a participant on the Effective Date)), (i)
     pay to Executive as and when normally payable his Base Salary as in
     effect on the date of termination and an amount equal to the average
     Annual Bonus received by such Executive for the past three years prior
     to termination (or a pro-rated portion of such average Annual Bonus)
     and (ii) subject to program eligibility requirements and continuation
     of programs by Lane, continue his participation in the Benefit Plans
     in which he was participating on the date of termination of
     employment.

          5.     Split Dollar Insurance Policy.  If Executive's employment<PAGE>





     with Lane is terminated by Lane other than for Cause or as a result of
     his death or Disability, or if during such period Executive terminates
     his employment with Lane for Good Reason, then Lane will continue to
     make premium payments for so long as Lane is making payments to
     Executive under Section 4 hereof under any and all split dollar life
     insurance programs in effect on the life of the Executive as of the
     Effective Date, after which the Executive will be entitled to
     ownership of the policy and Lane will be entitled to premium
     retrieval, all in accordance with the terms of the program, but only
     to the extent of the cash value of the policy, and without recourse to
     the Executive for the balance of any such premium retrieval.

           6.    Non-Competition.  During the three-year period commencing
     on the Effective Date and, if longer, while employed by Lane, and for
     a period of one year after termination of employment, Executive shall
     not, without the prior written consent of Lane, directly or
     indirectly, own, control, finance, manage, operate, join or
     participate in the ownership, control, financing, management or
     operation of, or be connected as an employee, consultant or in any
     other capacity with, any business engaged in the manufacture or
     distribution of residential furniture in the United States.  Nothing
     in this Section 6 shall, however, restrict Executive from making
     investments in other ventures which are not competitive with Lane, or
     restrict Executive from owning less than one percent (1%) of the
     outstanding securities of companies listed on a national stock
     exchange or actively traded in the "over-the-counter" market.  In
     addition, if the Employment Period is terminated by Lane (other than
     for Cause) and the Executive elects to forego the payments called for
     in Sections 4 and 5 hereof, the provisions of this Section 6 shall not
     apply.  Should any of the terms of this Section 6 be found to be
     unenforceable because they are over-broad in any respects then they
     shall be deemed amended to the extent, and only to the extent,
     necessary to render them enforceable.  Both parties stipulate that
     money damages would be inadequate to compensate for any breaches of
     the terms of this Section 6, and that such terms shall be enforceable
     through appropriate equitable relief, without the necessity of proving
     actual damages and to an equitable accounting of all earnings,
     profits, and other benefits arising from such violation, which rights
     shall be cumulative and in addition to any other rights and remedies
     to which Lane may be entitled.

          7.     Confidentiality.  During the Employment Period and at all
     times thereafter, Executive shall maintain the confidentiality of, and
     shall not disclose to any person (except as his duties as an employee
     of Lane may require) any non-public information concerning Lane or its
     business.

          8     Miscellaneous.  This Employment Agreement shall be binding
     upon and shall inure to the benefit of Executive's heirs, executors,
     administrators and legal representatives, and shall be binding upon
     and inure to the benefit of Lane and its successors and assigns.  This
     Agreement shall supersede and stand in place of any and all other
     agreements between Executive and Lane regarding severance pay and/or
     any and all severance pay benefits pursuant to any plan or practice of<PAGE>





     Lane.  This Employment Agreement shall take effect as of the day and
     year first above set forth, and its validity, interpretation,
     construction and performance shall be governed by the laws of the
     Commonwealth of Virginia.

          9.     Indemnification.  In the event that either party hereto is
     required to pursue litigation against the other party to enforce his
     or its rights hereunder, the prevailing party in any such litigation
     shall be entitled to reimbursement of the costs and expenses of such
     litigation, including attorney's fees.

          10.     Waivers.  In consideration of the undertakings of Lane
     set forth in this Agreement, Executive hereby irrevocably waives and
     forever releases any and all claims and causes of action of any nature
     whatsoever that Executive has or may have against Lane or any of its
     officers, directors, employees or agents arising out of the
     negotiation, execution, delivery or terms of this Agreement,
     including, without limitation, any claims arising under the Age
     Discrimination in Employment Act, 29 U.S.C. Section 21 et seq., and
     any state or local law relating to age discrimination.

          11.     Entire Agreement.  This Agreement contains the entire
     agreement of the parties with respect to its subject matter, and no
     waiver, modification or change of any of its provisions shall be valid
     unless in writing and signed by the party against whom such claimed
     waiver, modification or change is sought to be enforced.

          IN WITNESS WHEREOF, the parties hereto have each executed this
     Agreement the date set forth below.




                                        THE LANE COMPANY, INCORPORATED


                                        By:  David P. Howard
                                           -----------------------------
                                             Vice President
     Vice-President
     Agreed to and Approved:

     FURNITURE BRANDS                   K. SCOTT TYLER, JR.
     INTERNATIONAL, INC.     


     By: R.B. Loynd                     By: K. Scott Tyler, Jr.
        -----------------------            -----------------------------
         Chairman of the Board<PAGE>