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 DOUGLAS
W. MILLER ("Miller").
A. REASONS FOR AGREEMENT
1. Miller is being separated from his employment with the Company effective January 31, 1999.
2. The Company has agreed to provide certain additional benefits to Miller for the consideration from Miller
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 Miller 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, Miller shall be deemed to have become separated from his employment with and to
have ceased to be an employee of Company on January 31, 1999.
(a) Miller shall receive payment at his current salary for the full twelve months of February, 1999 through and
including January, 2000 (i.e., $9,750.00, 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 February, 1999 and each
month thereafter until and including the last day of January, 2000). During the severance period, the Company
shall permit Miller to receive health insurance coverage at Miller's expense for himself and any of Miller's
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 Miller during the severance
period (i.e., through January, 2000).
(b) The qualifying event concerning Miller's rights under the Co