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| JAMES W.      JOHNSTON Chairman of the      Board |   | 1284 N.      TELEGRAPH ROADMONROE,      MICHIGAN 48162-3390PHONE:      (734) 242-1444 |

| 1.   | Agreement to Provide      Services; Right toTerminate. |
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| (i)   | Except      as otherwise provided in paragraph (ii) below, the Company or you may      terminate your employment at any time, subject to the Company's providing      the benefits hereinafter specified in accordance with the terms      hereof. |
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| (ii)   | In      the event a tender offer or exchange offer is made by a Person (as      hereinafter defined) for more than 30% of the combined voting power of the      Company's outstanding common stock, you agree that you will not leave the      employ of the Company (other than as a result of Disability, as that term      is hereinafter defined) and will continue to render your employment      services until such tender offer or exchange offer has been abandoned or      terminated or a change in control of the Company, as defined in Section 3      hereof, has occurred. For purposes of this Agreement, the term "Person"      shall mean and include any individual, corporation, partnership, group,      association or other "person", as such term is used in Section 14(d) of      the Securities Exchange Act of 1934 (the "Exchange Act"), other than the      Company, a wholly-owned subsidiary of the Company or any employee benefit      plan(s) sponsored by the Company. |
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| 2.   | Term of      Agreement. |
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| 3.   | Change in      control. |
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| 4.   | Termination Following      change in control. |
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| (i)   | Disability.      Termination by the Company of your employment based on "Disability" shall      mean termination due to the fact that you (i) are unable to engage in any      substantial gainful activity by reason of any medically determinable      physical or mental impairment which can be expected to result in death or      can be expected to last for a continuous period of not less than 12      months, or (ii) is by reason of any medically determinable physical or      mental impairment which can be expected to result in death or can be      expected to last for a continuous period of not less than 12 months,      receiving income replacement benefits for a period of not less than 3      months under an accident and health plan covering Employees of the      Company, provided that this definition shall be interpreted in accordance      with Code §409A(a)(2)(A)(v) and regulations and other guidance      thereunder.  Notwithstanding (i) and (ii), you shall be deemed      to have a Disability when determined to be totally disabled by the Social      Security Administration. |
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| (ii)   | Cause.      Termination by the Company of your employment for "Cause" shall mean      termination upon (a) the willful and continued failure by you to perform      substantially your duties with the Company (other than any such failure      resulting from your incapacity due to physical or mental illness) after a      demand for substantial performance is delivered to you by the duly      authorized representative of the Compensation Committee of the Board which      specifically identifies the manner in which such executive believes that      you have not substantially performed your duties, or (b) the willful      engaging by you in illegal conduct which is materially and demonstrably      injurious to the Company. For purposes of this paragraph (ii), no act, or      failure to act, on your part shall be considered "willful" unless done, or      omitted to be done, by you in bad faith and without reasonable belief that      your action or omission was in, or not opposed to, the best interests of      the Company. Any act, or failure to act, based upon authority given      pursuant to a resolution duly adopted by the Board or based upon the      advice of counsel for the Company shall be conclusively presumed to be      done, or omitted to be done, by you in good faith and in the best      interests of the corporation. Notwithstanding the foregoing, you shall not      be deemed to have been terminated for Cause unless and until there shall      have been delivered to you a copy of a resolution duly adopted by the      affirmative vote of not less than three-quarters of the entire membership      of the Board at a meeting of the Board called and held for the purpose      (after reasonable notice to you and an opportunity for you, together with      your counsel, to be heard before the Board), finding that in the good      faith opinion of the Board you were guilty of the conduct set forth above      in (a) or (b) of this paragraph (ii) and specifying the particulars      thereof in detail. |
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| (iii)   | Good Reason.      Termination by you of your employment for "Good Reason" shall mean      termination based on: |
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| (A)   | an      adverse change in your status or position(s) as a corporate officer of the      Company as in effect immediately prior to the change in control,      including, without limitation, any adverse change in your status or      position as a result of a material diminution in your duties or      responsibilities (other than, if applicable, any such change directly      attributable to the fact that the Company is no longer publicly-owned) or      the assignment to you of any duties or responsibilities which, in your      reasonable judgment, are inconsistent with such status or position(s), or      any removal of you from or any failure to reappoint or reelect you to such      position(s) (except in connection with the termination of your employment      for Cause or Disability or as a result of your death or by you other than      for Good Reason); |
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| (B)   | a      reduction by the Company in your compensation as in effect immediately      prior to the change in control; |
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| (C)   | the      failure by the Company to continue in effect any Plan (as hereinafter      defined) in which you are participating at the time of the change in      control of the Company (or Plans providing you with at least substantially      similar benefits) other than as a result of the normal expiration of any      such Plan in accordance with its terms as in effect at the time of the      change in control, or the taking of any action, or the failure to act, by      the Company which would adversely affect your continued participation in      any of such Plans on at least as favorable a basis to you as is the case      on the date of the change in control or which would materially reduce your      benefits in the future under any of such Plans or deprive you of any      material benefit enjoyed by you at the time of the change in      control; |
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| (D)   | the      failure by the Company to provide and credit you with the number of paid      vacation days to which you are then entitled in accordance with the      Company's normal vacation policy as in effect immediately prior to the      change in control; |
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| (E)   | the      Company's requiring you to be based anywhere other than where your office      is located immediately prior to the change in control except for required      travel on the Company's business to an extent substantially consistent      with the business travel obligations which you undertook on behalf of the      Company prior to the change incontrol; |
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| (F)   | the      failure by the Company to obtain from any Successor (as hereinafter      defined) the assent to this Agreement contemplated by Section 6      hereof; |
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| (G)   | any      purported termination by the Company of your employment which is not      effected pursuant to a Notice of Termination satisfying the requirements      of paragraph (iv) below (and, if applicable, paragraph (ii) above); and      for purposes of this Agreement, no such purported termination shall be      effective or |
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| (H)   | any      refusal by the Company to continue to allow you to attend to matters or      engage in activities not directly related to the business of the Company      which, prior to the change in control, you were permitted by the Board to      attend to or engage in, including without limiting the foregoing, serving      on the Boards of Directors of other companies or  entities. |
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| (iv)   | Notice of      Termination. Any purported termination by the Company or by you      following a change in control shall be communicated by written Notice of      Termination to the other party hereto. For purposes of this Agreement, a      "Notice of Termination" shall mean a notice which shall indicate the      specific termination provision in this Agreement relied upon. |
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| (v)   | Date of      Termination. "Date of Termination" following a change in control      shall mean (a) if your employment is to be terminated for Disability,      thirty (30) days after Notice of Termination is given (provided that you      shall not have returned to the performance of your duties on a full-time      basis during such thirty (30) day period), (b) if your employment is to be      terminated by the Company for Cause or by you pursuant to Sections      4(iii)(F) and 6 hereof or for any other Good Reason, the date specified in      the Notice of Termination, or (c) if your employment is to be terminated      by the Company for any reason other than Cause, the date specified in the      Notice of Termination, which is no event shall be a date earlier than      ninety (90) days after the date on which a Notice of Termination is given,      unless an earlier date has been expressly agreed to by you in writing      either in advance of, or after, receiving such Notice of Termination. In      the case of termination by the Company of your employment for Cause, if      you have not previously expressly agreed in writing to the termination,      then within thirty (30) days after receipt by you of the Notice of      Termination with respect thereto, you may notify the Company that a      dispute exists concerning the termination, in which event the Date of      Termination shall be the date set either by mutual written agreement of      the parties or by the arbitrators in a proceeding as provided in Section      15 hereof. During the pendency of any such dispute, the Company will      continue to pay you your full compensation in effect just prior to the      time the Notice of Termination is given and until the dispute is resolved      in accordance with Section 15. |
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| 5.   | Compensation Upon      Termination or During Disability; Other  Agreements. |
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| (i)   | If      your employment shall be terminated for Cause following a change in      control of the Company, the Company shall pay you your salary through the      Date of Termination at the rate in effect just prior to the time a Notice      of Termination is given plus any benefits or awards (including both the      cash and stock components) which pursuant to the terms of any Plans have      been earned or become payable, but which have not yet been paid to you.      Thereupon the Company shall have no further obligations to you under this      Agreement. |
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| (ii)   | Subject      to Section 8 hereof, if, within thirty-six (36) months after a change in      control of the Company shall have occurred as defined in Section 3 above,      your employment by the Company shall be terminated (a) by the Company      other than for Cause, Disability, or death or (b) by you for Good Reason,      then, by no later than the fifth day following the Date of Termination      (except as otherwise provided), you shall be entitled, without regard to      any contrary provision of any Plan, to the benefits provided      below: |
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| (A)   | the Company shall pay your      salary through the Date of Termination at the rate in effect just prior to      the time a Notice of Termination is given plus any benefits or awards      (including both the cash and stock components) which pursuant to the terms      of any Plans have been earned or become payable, but which have not yet      been paid by you; and |
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| (B)   | as severance pay and in lieu of      any further salary for periods subsequent to the Date of Termination, the      Company shall pay to you an amount in cash equal to three (3) times the      sum of (i) your annualized salary at the rate in effect at the Date of      Termination and (ii) an amount equal to the average bonus paid you in the      previous three (3) years. |
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| (iii)   | Following      a change in control of the Company, unless you are terminated for Cause,      Disability, or death or you terminate your employment other than for Good      Reason, the Company shall maintain in full force and effect, for the      continued benefit of you and your dependents for a period terminating on      the earliest of (a) thirty-six (36) months after the Date of Termination,      (b) the commencement date of equivalent benefits from a new employer or      (c) your normal retirement date under the terms of the La-Z-Boy      Incorporated Retirement Contribution and Profit Sharing Plan (or any      successor or substitute plan or plans of the Company put into effect prior      to a change in control), all insured and self-insured employee welfare      benefits plans in which you were entitled to participate immediately prior      to the Date of Termination, provided that your continued participation is      possible under the general terms and provisions of such Plans (and any      applicable funding media) and you continue to pay an amount equal to your      regular contribution under such Plans for such      participation.  If permitted by applicable law, right to      continuation coverage pursuant to COBRA will run concurrently with such      continued participation provided by the Company.  If the terms      of the Company’s medical and dental plans do not permit your continued      participation after the termination of your employment and you elect to      continue medical or dental coverage as provided for by COBRA, the Company      will, for the lesser of 36 months or the period during which you maintain      such COBRA continuation coverage, pay the difference between the cost of      your COBRA premiums for medical and dental insurance and the normal      employee contribution for such coverage.  Such payments will be      made by the Company in accordance with its normal schedule for premium      payments in accordance with the applicable plan.  (You may      thereafter have the right under COBRA to continue such insurance at your      expense for the remaining months of your eligibility.)  You will      be responsible for any tax on such benefits or payments made by the      Company. If, at the end of thirty-six (36) months after the Termination      Date, you have not reached your normal retirement date and you have not      previously received or are not then receiving equivalent benefits from a      new employer, the Company shall arrange to enable you to convert your and      your dependents' coverage under such Plans to individual policies or      programs upon the same terms as employees of the Company may apply for      such conversions. |
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| (iv)   | Except      as specifically provided herein, the amount of any payment provided for in      this Section 5 shall not be reduced, offset or subject to recovery by the      Company by reason of any compensation earned by you as the result of      employment by another employer after the Date of Termination, or      otherwise. |
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| 6.   | Successors; Binding      Agreement. |
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| (i)   | Upon      your written request, the Company will seek to have any Successor (as      hereinafter defined), by agreement in form and substance satisfactory to      you, assent to the fulfillment by the Company of its obligations under      this Agreement. Failure of the Company to obtain such assent at least      three (3) business days prior to the time a Person becomes a Successor (or      where the Company does not have at least three (3) business days advance      notice that a Person may become a Successor, within one (1) business day      after having notice that such Person may become or has become a Successor)      shall constitute Good Reason for termination by you of your employment      and, if a change in control of the Company has occurred, shall entitle you      immediately to the applicable benefits provided in Section 5 hereof upon      delivery by you of a Notice of Termination. For purposes of this      Agreement, "Successor" shall mean any Person that succeeds to, or has the      practical ability to control (either immediately or with the passage of      time), the Company's business directly, by merger or consolidation, or      indirectly, by purchase of the Company's Voting Securities, all or      substantially all of its assets orotherwise. |
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| (ii)   | This      Agreement shall inure to the benefit of and be enforceable by your      personal or legal representatives, executors, administrators, successors,      heirs, distributees, devisees and legatees. If you should die while any      amount would still be payable to you hereunder if you had continued to      live, all such amounts, unless otherwise provided herein, shall be paid in      accordance with the terms of this Agreement to your devisee, legatee or      other designee or, if there be no such designee, to your      estate. |
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| (iii)   | For      purposes of this Agreement, the "Company" shall include any corporation or      other entity which is the surviving or continuing entity in respect of any      merger, consolidation or form of business combination in which the Company      ceases to exist. |
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| 7.   | Fees and Expenses;      Mitigation. |
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| (i)   | The      Company shall pay all reasonable legal fees and related expenses incurred      by you in connection with this Agreement following a change in control of      the Company, including, without limitation, (a) all such fees and      expenses, if any, incurred in contesting or disputing any such termination      or incurred by you in seeking advice with respect to the matters set forth      in Section 8 hereof or (b) your seeking to obtain or enforce any right or      benefit provided by this Agreement. |
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| (ii)   | You      shall not be required to mitigate the amount of any payment the Company      becomes obligated to make to you in connection with this Agreement, by      seeking other employment orotherwise. |
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| 8.   | Taxes. |
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| (i)   | All      payments to be made to you under this Agreement will be subject to      required withholding of federal, state and local income and employment      taxes. |
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| (ii)   | Notwithstanding      any other provision of this Agreement, if any of the payments or benefits      received or to be received by you pursuant to this Agreement, when taken      together with payments and benefits provided to you under any other plans,      contracts, or arrangements with the Company or its subsidiaries (the      “Total Payments”), will be subject to any excise tax imposed under Code      Section 4999 (together with any interest or penalties, the “Excise Tax”),      then such Total Payments shall be reduced to the extent necessary so that      no portion thereof will be subject to the Excise Tax; provided, however,      that if you would receive in the aggregate greater value (as determined      under Code Section 280G and the regulations thereunder) on an after tax      basis if the Total Payments were not subject to such reduction, then no      such reduction shall be made.  In effectuating the reduction      described above, if applicable, the Company will first reduce or eliminate      the payments and benefits provided under this Agreement.  All      calculations required to be made under this Section will be made by the      Company’s independent public accountants, subject to the right of your      representative to review the same.  If the Company’s independent      public accountants refuse to make the required determinations, then such      determinations will be made by an independent accounting firm with      national reputation reasonably selected by the Company.  As a      result of the uncertainty in the application of the Internal Revenue Code,      it is possible that the Company will in good faith make payments to you      that it should not make.  In the event of such overpayment, the      Company shall have no further liability or obligation to you for any      resulting excise taxes, interest, or penalty that you are required to      pay. |
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| 9.   | Survival. |
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| 10.   | Notice. |
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| 11.   | Miscellaneous. |
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| 12.   | Full      Settlement. |
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| 13.   | Confidential      Information. |
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| 14.   | Validity. |
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| 15.   | Arbitration. |
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| (i)   | The      Company's termination of your employment;and/or |
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| (ii)   | Any      dispute or claim concerning or arising out of whether your termination was      for “Cause” or for      “Good Reason.” |
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