|                                                    |   | Base Salary |    |
|---------------------------------------------------------|--------|-------------|---------|
| Paul B. Toms, Jr., Chairman, President and CEO          |   | $           | 309,325 |   |
| E. Larry Ryder, EVP – Finance and Admin., and CFO |   |        | 274,562 |   |
| Alan D. Cole, President and CEO – Upholstery      |   |        | 300,000 |   |
| Bruce R. Cohenour, EVP – Marketing                |   |        | 252,000 |  1 |
| Raymond T. Harm, SVP – Sales                      |   |        | 222,780 |   |
| Michael P. Spece, SVP – Merchandising and Design  |   |        | 215,000 |   |
|   1 - Effective December 1, 2009         |   |        |    |   |

| ·   | A base incentive, which is based on income before income taxes (and before the executive bonus accruals) of the Company or one of its divisions based on the Company’s audited year-end financial statements for fiscal 2011; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Plus or minus an individual performance factor based on the executive’s performance with respect to individual performance goals, determined at the Compensation Committee’s discretion, which is expressed as a percentage of the executive’s base incentive. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Named Executive Officer | Base Annual Cash Incentive                                                                                                                                                                             | Individual Performance Factor |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|
| Paul B. Toms, Jr.            | 0.75% of the Company’s consolidated pre-tax income in excess of a specified threshold amount                                                                                                     | Plus or minus 25.0%           |
| E. Larry Ryder               | 0.65% of the Company’s consolidated pre-tax income in excess of a specified threshold amount                                                                                                     | Plus or minus 12.5%           |
| Alan D. Cole                 | 5.0% of pretax operating income for the Company’s Sam Moore upholstered furniture division; plus4.0% of operating income for the Company’s Bradington-Young upholstered furniture division | Plus or minus 12.5%           |
| Bruce R. Cohenour            | 0.60% of the pre-tax income of the Company’s wood and metal furniture division in excess of a specified threshold amount                                                                         | Plus or minus 12.5%           |
| Raymond T. Harm              | 0.50% of the pre-tax income of the Company’s wood and metal furniture division in excess of a specified threshold amount                                                                         | Plus or minus 12.5%           |
| Michael P. Spece             | 0.50% of the pre-tax income of the Company’s wood and metal furniture division in excess of a specified threshold amount                                                                         | Plus or minus 12.5%           |