EXHIBIT
10.1
CONSULTING
AGREEMENT
THIS CONSULTING
AGREEMENT (the "
Agreement ") is entered by and between Clarence Ridley
(“ Consultant ”) and Haverty Furniture Company,
Inc. (" Havertys ") as of March 16, 2009 to be effective as
of May 13, 2009 (the “ Effective Date
”).
WHEREAS , Consultant is a former executive and is a current
non-employee director of Havertys who has specialized knowledge and
expertise regarding the retail furniture industry and the
strategic, tactical, legal and financial issues facing the industry
and Havertys, and Havertys desires to have Consultant provide
consulting Services (as defined below) to it pursuant to the terms
and conditions of this Agreement;
NOW,
THEREFORE , for and in
consideration of the mutual agreements contained herein, and for
other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, Havertys and Consultant agree as
follows:
1.
Services; Consulting Period. During the Consulting
Period, Consultant agrees to provide advisory services to the
President and CEO for strategic, tactical and financial matters and
to the General Counsel for certain real estate and litigation
matters, as reasonably requested by Havertys (the “
Services ”). In addition, the Services may include, if
requested by the President and CEO, acting as the Havertys liaison
for communication with stockholders, serving as a resource to
recommend independent outside advisors on business issues or
projects, and providing advisory services in matters of
organizational structure or succession planning. The Services shall
be performed at the times and places chosen by Consultant in
consultation with Havertys; however, Consultant agrees that it may
be necessary to perform Services at specific business locations
specified by Havertys from time-to-time. Unless earlier terminated
pursuant to paragraph 6 of this Agreement, the initial term of this
Agreement shall run from the Effective Date until the first
anniversary of the Effective Date; provided, however, that the term
shall be automatically extended for an additional one year period
on each anniversary of the Effective Date unless one party gives
written notice to the other party of its intent not to extend the
term of the Agreement at least thirty (30) days prior the
applicable anniversary of the Effective Date (the term, as extended
or terminated, is referred to as the “ Consulting
Period ”).
2.
Contract Fee. Havertys agrees to pay to Consultant
One Hundred Fifty-Five Dollars ($155,000) per year for the Services
(the “ Service Fee ”). Approximately one-twelfth
of the Service Fee shall be paid to Consultant on the 1
st day of each month during the Consulting Period.
Havertys shall also reimburse Consultant, in accor
