# EXHIBIT 10(k)

Knape & VogtAnnual Incentive
Plan TermsAs Adopted June 2005

Key Objectives:

The Annual Incentive Plan is designed
to support the following objectives:

| | Reward
employees for their contributions to profitability, returns, and growth.
|- | -------------------------------------------------------------------------------

| | Focus
employees on corporate, business unit, and individual performance.
|- | ------------------------------------------------------------------------

| | Provide
competitive total compensation opportunities.
|- | -----------------------------------------------------

# Effective Date:

The Annual Incentive Plan will become
effective as of July 3, 2005.

# Plan Year:

The Plan Year will be the same as
Knape & Vogts (KVs) fiscal year.

# Administration:

The Executive Compensation Committee
of KVs Board of Directors (the Committee) will administer the Plan. The
Committee reserves the authority to amend, suspend, interpret, or terminate the plan in
whole or in part at any time. Notice of any such amendment, suspension or termination
shall be given promptly to each Participant.

# Description of the
Plan:

The Annual Consolidated Incentive
will be computed based on Return on Investment (ROI). The Committee will
establish a target ROI at the beginning of each fiscal year. The ROI will be computed by
dividing the Companys consolidated net income by the average investment. The
consolidated net income may be adjusted for unusual, non-recurring items, if approved by
the Committee. The average investment will be computed based on the average investment at
the beginning of the fiscal year and the investment at the end of the fiscal year. Average
investment is defined as the consolidated amounts on the balance sheet of capital stock,
additional paid in capital and retained earnings.

# Eligibility and
Participation:

Participants under the Plan will be
employees designated by management and approved at least annually by the Committee. The
Committee will also establish a target incentive award percentage of Base Salary for all
participants.

To receive an incentive payment for a
Plan Year, a participant must be actively employed for at least three months of the Plan
Year.

# Base Salary:

Base Salary used to determine
incentive awards will be equal to the total of all amounts paid to a participant during
the Plan Year, without regard to voluntary salary reductions, such as under the 401(k)
Plan, Flexible Benefit Spending Plan, etc. Base Salary will not include bonuses,
reimbursements or other expense allowances, cash and non-cash fringe benefits, moving
expenses and welfare benefits.

A newly hired employee will be
eligible to participate in the annual incentive plan if he/she meets the eligibility and
participation criteria and begins work at least three months prior to the end of the Plan
Year. The newly hired employees Base Salary at the end of the Plan Year will be
prorated based on the number of months worked rounded to the nearest whole month as a
proportion of the Plan Year.

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# Performance Goals:

Prior to the beginning of a new
performance period, the Board will approve threshold, target, and outstanding performance
goals proposed by the Committee and CEO for the Corporate and Business Unit metrics. A
typical approach to setting performance goals is to establish a threshold, target, and
outstanding award opportunity. Accordingly, incentives will be earned on a sliding scale
as shown below:

|Percent of Target Achieved | Incentive Award Earned
|-------------------------- | ----------------------
|120%                       | 150%                  
|100%                       | 100%                  
|80%                        | 50%                   

# Form and Timing of
Payout:

Amounts earned based on performance
and achievement of the performance measures will be paid in cash within 60 days following
the end of the Plan Year. It is anticipated that payment will be made following Board
approval at the first board meeting of the fiscal year.

# Termination of
Employment:

# Voluntary or Involuntary
Termination for Cause

Upon
an employees voluntary termination of employment or the involuntary termination for
cause of an employees employment by KV with cause during the Plan Year, any
incentive that would have been earned during the Plan Year will be forfeited.

# Retirement

Upon
a participants retirement from KV at KVs normal retirement age, a prorated
incentive payment will be made based on the number of months the participant was employed
during the Plan Year, rounded to the nearest whole month. Normal retirement age is defined
as age 57 with 10 years of service or a minimum age of 62.

# Death

Upon
a participants death, a prorated incentive payment will be made to his/her
beneficiary as designated under the Companys Annual Incentive Plan, or if no
beneficiary has been designated, to the participants estate, based on the number of
months the participant was employed during the Plan Year, rounded to the nearest whole
month.

# Disability

Upon
termination of a participants employment due to permanent disability, as defined in
the Companys retirement plans, a prorated incentive payment will be made based on
the number of months the participant was employed during the Plan Year, rounded to the
nearest whole month.

# Breach of Agreement

Notwithstanding
any other provision of the Plan or any other agreement, in the event that a Participant
shall breach any non-competition agreement with the Company or breach any agreement with
respect to the post-employment conduct of such Participant, the incentive shall be
forfeited.

# Normal Plan
Participants:

# Performance Metrics

Most
KV employees will have their incentive computed based upon the consolidated ROI
target.

# Incentive Award
Calculation

At
the end of fiscal year, the consolidated ROI will be compared to the target established at
the beginning of the plan year by the Committee and CEO to determine the percent of target
achieved and the related incentive award earned. The incentive award earned percentage is
then multiplied by the participants target incentive award, which is a pre-approved
percentage of their Base Salary, as defined for purposes of the Plan, to calculate the
amount of the participants incentive award.

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# Determination and
Communication of Performance Measures and Goals

The
target consolidated ROI for each Plan Year will be determined as soon as practicable after
the Return on Investment results from the previous year are finalized. All goals will be
finalized and communicated to incentive plan participants as close as possible to the
beginning of the Plan Year.

# Communication of
Performance Achievement

Progress
towards the achievement of the consolidated ROI will be communicated periodically during
the Plan Year. A final communication of achievement against the goal will be issued as
soon as possible after results are available following the end of the Plan Year.

# Key Plan
Participants:

# Performance Metrics

For
certain key personnel, the Committee and the CEO will determine an appropriate mix of
business unit metrics and individual objectives. Business unit metrics will include
business unit level ROI, volume of sales transactions, and profitability of sales.
Individual objectives will be set at the beginning of each performance period.
Awards for these individuals will be based on achievement against the predetermined
corporate, business unit, and individual performance metrics.

# Promotions and Transfers

Eligible
participants who are promoted or transfer between functional areas during the Plan Year
will receive a prorated incentive payment based on:

| |  | The number of months worked in each position, rounded to the nearest whole month, as a
fraction of the number of months worked during the Plan Year, and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | The
participant's previous and new rates of base salary and incentive opportunities, and
| | - | ----------------------------------------------------------------------------------------

| |  | If applicable, performance goals and actual performance applicable to the
participants previous and new positions.
| | - | -------------------------------------------------------------------------------------------------------------------

Exceptions
may be made in the event that a participant is transferred late in the Plan Year and does
not serve a minimum number of months in his or her new position. In this case, his/her
incentive may be based fully on the results of the pre-transfer location.

# Incentive Opportunity
Weighting and Allocation

The
percentage of incentive opportunity that will be determined by the achievement of
corporate, business unit and individual performance varies by each employee. These
weightings may be revised annually based on the Committees and CEOs discretion
and KVs business objectives. See Attachment A for incentive
opportunity weighting for the key employees.

# Key Employees Weighting
by Performance Measure

Target
incentive awards will be earned if relevant corporate and business unit targets are
achieved. In addition, certain employees will have a portion of their incentive
opportunity based on the achievement of individual goals.

See
Attachment B for a listing of target incentive opportunities for the
key employees.

# Incentive Award
Calculation

At
the end of fiscal year corporate, business unit and individual performance will be
compared to the achievement levels established at the beginning of the plan year by the
Committee and CEO to determine the percentage of target incentives earned.

The
incentive earned as a percentage of salary is then calculated by multiplying the
percentage of target award earned by the participants target award expressed as a
percentage of salary. This percentage is then multiplied by the participants Base
Salary, as defined for purposes of the Plan, to calculate the amount of the
participants incentive award.

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# Determination and
Communication of Performance Measures and Goals

Target
performance for each Plan Year will be determined for the Corporation and each Business
Unit as soon as practicable after the Return on Investment results from the previous year
are finalized. Individual performance measures and goals will be determined by the CEO and
the Committee. All goals will be finalized and communicated to incentive plan participants
as close as possible to the beginning of the Plan Year.

# Communication of
Performance Achievement

Progress
towards the achievement of corporate, business unit and individual goals will be
communicated periodically during the Plan Year. A final communication of achievement
against goals will be issued as soon as possible after results are available following the
end of the Plan Year.

# GENERAL PLAN
PROVISIONS

No
Guarantee:

Participation
in the Plan provides no guarantee that a payment under the Plan will be paid. Selection as
a Participant is no guarantee that payments under the Plan will be paid or the selection
as a Participant will be made in the subsequent Plan Year.

General
Provisions:

Withholding
of Taxes

The
Company shall have the right to withhold the amount of taxes, which in the determination
of the Company, are required to be withheld under the law.

Expenses

All
expenses and costs in connection with the adoption and administration of the Plan shall be
borne by the Company.

No
Prior Right of Offer

Except
and until expressly granted pursuant to the Plan, nothing in the Plan shall be deemed to
give any employee any contractual or other right to participate in the benefits of the
Plan.

Claims
for Benefits

In
the event a Participant ( a claimant) desires to make a claim with respect to
any of the benefits provided hereunder, the claimant shall submit evidence satisfactory to
the Committee of facts establishing his entitlement to a payment under the Plan. Any claim
with respect to any of the benefits provided under the Plan shall be made in writing
within ninety (90) days of the event, which the claimant asserts entitles him/her to
benefits. Failure by the claimant to submit his/her claim within such ninety (90) day
period shall bar the claimant from any claim for benefits under the Plan.

In
the event that a claim which made by a claimant is wholly or partially denied the claimant
will receive from the Committee a written explanation of the reason for denial and the
claimant or his/her duly authorized representative may appeal the denial of the claim to
the Committee at any time within ninety (90) days after the receipt by the claimant of
written notice from the Committee of the denial of the claim. In connection therewith, the
claimant or his/her duly authorized representative may request a review of the denied
claim; may review pertinent documents; and may submit issues and comments in writing. Upon
receipt of an appeal, the Committee shall make a decision with respect to the appeal and,
not later than sixty (60) days after receipt of a request for review, shall furnish the
claimant with a decision on review in writing, including the specific reasons for the
decision written in a manner calculated to be understood by the claimant, as well as
specific reference to the pertinent provisions of the Plan upon which the decision is
based. In reaching its decision, the Committee shall have complete discretionary authority
to determine all questions arising in the interpretation and administration of the Plan,
and to construe the terms of the Plan, including any doubtful or disputed terms and the
eligibility of a Participant for benefits.

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Action
Taken in Good Faith; Indemnification

The Committee
may employ attorneys, consultants, accountants or other persons and the Companys
directors and officers shall be entitled to rely upon the advice, opinions or valuations
of any such persons. All actions taken and all interpretations and determinations made by
the Committee in good faith shall be final and binding upon all employees who have
received awards, the Company and all other interested parties. No member of the Committee,
nor any officer, director, employee or representative of the Company, or any of its
affiliates acting on behalf of or in conjunction with the Committee, shall be personally
liable for any action, determination, or interpretation, whether of commission or
omission, taken or made with respect to the Plan, except in circumstances involving actual
bad faith or willful misconduct. In addition to such other rights of indemnification as
they may have as member of the Board, as members of the Committee or as officers or
employees of the Company, all members of the committee and any officer, employee or
representative of the Company or any of its subsidiaries acting on their behalf shall be
fully indemnified and protected by the Company with respect to any such action,
determination or interpretation against the reasonable expenses, including attorneys
fees actually and necessarily incurred, in connections with the defense of any civil or
criminal action, suit or proceeding, or in connection with any appeal therein, to which
they or any of them may be a party by reason of any action taken or failure to act under
or in connection with the Plan or an award granted thereunder, and against all amounts
paid by them in settlement thereof (provided such settlement is approved by independent
legal counsel selected by the Company) or paid by them in satisfaction of a judgment in
any action, suit or proceeding. Expenses (including attorneys fees) incurred in
defending a civil or criminal action, suit or proceeding shall be paid by the Company in
advance of the final disposition of such action, suit or proceeding if such person
claiming indemnification is entitled to indemnification as provided in this Section.

Rights
Personal to Employee

Any rights
provided to an employee under the Plan shall be personal to such employee, shall not be
transferable (except by will or pursuant to the laws of decent or distribution), and shall
be exercisable, during his lifetime, only by such employee.

Non-Allocation
of Award

In
the event of a suspension of the plan in any Plan Year, the incentive for the subject Plan
year shall be deemed forfeited and no portion thereof shall be allocated to Participants.
Any such forfeiture shall not affect the calculation of the awards in any subsequent year.

Limitations:

No
Continued Employment

Nothing
contained herein shall provide any employee with any right to continued employment or in
any way abridge the rights of the Company to determine the terms and conditions of
employment and whether to terminate employment of any employee.

No
Vested Rights

Except
as otherwise provided herein, no employee or other person shall have any claim of right
(legal, equitable, or otherwise) to any award. No officer or employee of the Company or
any other person shall any authority to make representations or agreements to the
contrary. No interest conferred herein to a Participant shall be assignable or subject to
claim by a Participants creditors. The right of the Participant to receive a
distribution hereunder shall be an unsecured claim against the general assets of the
Company and the Participant shall have no rights in or against any specific assets of the
Company as the result of participation hereunder.

Not
Part of Other Benefits

The
benefits provided in this Plan shall not be deemed a part of any other benefit provided by
the Company to its employees. The Company assumes no obligation to Plan Participants
except as specified herein.

Limitations

Neither
the establishment of the Plan or the grant of an award hereunder shall be deemed to
constitute an express or implied contract of employment for any period of time or in any
way abridge the rights of the Company to determine the terms and conditions of employment
or to terminate the employment of any employee with or without cause at any time.

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Unfunded
Plan

This
Plan is unfunded. Nothing herein shall create or be construed to create a trust or any
kind, or a fiduciary relationship between the Company and any Participant.

Notice:

Any
notice to be given pursuant to the provisions of the Plan shall be in writing and directed
to the Legal Services department or the Human Resources department of KV.

Applicable
Law:

This
Plan shall be construed in accordance with the provisions of the laws of the State of
Michigan.

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