SEVERANCE AGREEMENT AND GENERAL RELEASE
This AGREEMENT is made between BASSETT FURNITURE INDUSTRIES, INC., and its affiliates,
subsidiaries and predecessors (referred to herein, collectively and individually, as "Company") and JOHN S.
LUPO ("Mr. Lupo").
A. REASONS FOR AGREEMENT
1. Mr. Lupo is being separated from his employment with the Company effective November 27, 1999.
2. The Company has agreed to provide certain additional benefits to Mr. Lupo for the consideration from Mr.
Lupo specified below.
For and in consideration of the mutual promises and commitments specified herein, the parties agree as follows:
1. Special Severance Package. The Company agrees to provide Mr. Lupo with the following benefits, which are
referred to as the "Special Severance Package." The Special Severance Package includes, but also contains
benefits over and above, those benefits, if any, normally provided by Company policy. Notwithstanding the
Special Severance Package, Mr. Lupo shall be deemed to have become separated from his employment with
and to have ceased to be an employee of Company on November 27, 1999.
(a) Mr. Lupo shall receive payment at his current salary for the full seven months of November, 1999 through
and including May, 2000 (i.e., $19,583.33 per month, less pre-tax deductions for health insurance coverage and
deductions or withholdings for state and federal taxes, social security, etc., on or about the last day of November,
1999 and each month thereafter until and including the last day of May, 2000). During the severance period, the
Company shall permit Mr. Lupo to receive health insurance coverage at Mr. Lupo's expense for himself and any
of his dependents as are currently covered at the same premium rates as are charged to employees. The
Company also agrees that the executive supplemental health insurance plan shall remain in effect for Mr. Lupo
during the severance period (i.e., through May, 2000).
(b) The qualifying event concerning Mr. Lupo's rights