Receive an annual base salary of $370,000.

Participate in the Company’s management incentive
compensation plans (the “Plans” or “MIP I” or “MIP
II”) for 2017 to determine cash incentives to the
Company’s 2014 Long Term Incentive Plan. He will be
eligible to receive a target payout of 60% of his
annualized base salary. The MIP I Plan covers 80% of the
target payout. The MIP I sets goals of pre-tax earnings
on a quarterly and annual basis. Participants will begin
to earn the incentive pay once at least 80% of a goal is
met increasing up to 125% of the pre-tax goal. There is a
3% change in the incentive pay earned for every 1%
increase or decrease in actual pre-tax earnings versus
the goal with the incentive pay potential ranging from
40% to 175% of the earnings target payout amount. Pre-tax
earnings for comparison to the goal will be that amount
reported in the annual Form 10-K, adjusted to eliminate
the effects of asset impairments, restructurings,
acquisitions, divestitures, other unusual or
non-recurring items, store closing costs, and the
cumulative effect of accounting changes, as determined in
accordance with generally accepted accounting principles,
as applicable. The MIP II Plan, which does not provide
for above target payouts, covers the remaining 20% of the
potential target payout. The MIP II Plan is earned for
achieving additional performance criteria or specific
projects or initiatives tailored to each person as
approved by the Compensation Committee. The Compensation
Committee has discretion in the administration of the
Plans.

Participate in Havertys annual long-term incentive equity
program, and for 2017 will receive:

a grant of restricted stock units on his start date, the
number of which will be determined by dividing $111,000
by the closing price of the stock on his start date (not
to exceed 5,250) vesting 25% per year beginning May 2018,
subject to continued employment (see form of notice of
grant letter attached as Exhibit 10.1 to our Current
Report on Form 8-K dated February 3, 2017); and

a grant of performance restricted stock units on his
start date, the target number of which will be determined
by dividing $111,000 by the closing price of Havertys
common stock on his start date (not to exceed 5,250
shares), vesting on February 2020, subject to continuing
employment, with the actual number of shares to be earned
based on the Company’s EBITDA (see form of notice of
grant letter attached as Exhibit 10.2 to Current Report
on Form 8-K dated February 3, 2017).

Receive reimbursement for customary relocation expenses.

Receive a Change of Control Agreement consistent with
Havertys’ other executive vice presidents (see form of
Agreement attached as Exhibit 10.6 to our 2011 Form
10-K).

Receive the same perquisites provided to other senior
executives of Havertys, including certain company paid
insurance and annual physical program.

Participate in the Havertys 401(k) Plan and Deferred
Compensation Plan in accordance with the respective terms
of such plans.