EXHIBIT 10(t)
EMPLOYMENT
AGREEMENT
This
Employment Agreement is made and entered into on February 13, 2004
(the “Effective Date”) by and between Lane Furniture
Industries, Inc., a Mississippi corporation (“Lane”)
and Randall C. Spak (“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.
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a.
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“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.
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b.
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“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.
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c.
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“Employment Period”
that period beginning on the
Effective Date and ending upon Executive’s retirement or
earlier termination of employment.
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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:
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a.
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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 those held or exercised
by Executive’s predecessor in the new office to which
Executive has been assigned contemporaneously with this
Agreement,
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b.
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Executive’s services shall be performed at
the location where the Executive is employed on the Effective Date,
or at any office or location not more than thirty-five (35) miles
from such location,
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c.
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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”),
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d.
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Executive shall
continue to have an annual cash bonus potential, either pursuant to
the Lane Profit Sharing 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
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e.
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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”).
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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
