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| Preamble                                                      |         | 1      |
|---------------------------------------------------------------|--------------|--------|
|                                                          |         |   |
| Section I –      Definitions                            |         | 1      |
|                                                          |         |   |
| Section II –      Eligibility and Participation         |         | 6      |
|                                                          |         |   |
| Section III –      Contributions and Deferral Elections |         | 7      |
|                                                          |         |   |
| Section IV -      Accounts                                    |         | 10     |
|                                                          |         |   |
| Section V –      Vesting                                |         | 12     |
|                                                          |         |   |
| Section VI –      Distribution of Benefits              |         | 13     |
|                                                          |         |   |
| Section VII –      Funding                              |         | 16     |
|                                                          |         |   |
| Section VIII – Plan      Administration                 |         | 17     |
|                                                          |         |   |
| Section IX -      Amendment and Discontinuance                |         | 20     |
|                                                          |         |   |
| Section X – General      Provisions                     |    | 20     |

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Preamble

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Section I - Definitions

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| 1.1 | "Account" means an      account established on the books of the Company for a Participant credited      with an allocation hereunder. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | “Annual Election Period”      means the period specified by the Committee which ends no later than (a)      the last day of the calendar year prior to the Plan Year during which      Compensation to be deferred is expected to be earned and/or (b) six months      prior to the end of the performance period with respect to which Incentive      Compensation may be awarded. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    |
|--------------|
| Page      1  |

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| 1.3 | "Base Compensation" means      the Participant’s annual base salary, excluding bonus, commissions,      incentive and all other remunerations for services rendered to the Company      and prior to reduction for any salary contributions to a plan established      pursuant to §125 of the Code or qualified pursuant to §401(k) of the      Code. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | "Beneficiary" means any      person(s) designated in writing (on the form approved by the Committee) by      a Participant to receive payment under this Plan in the event of the      Participant's death.  In the event the Participant has      designated no beneficiary (or if the designated beneficiary has      predeceased the Participant), Beneficiary shall mean the Participant's      estate. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | "Board" means the Board      of Directors of La-Z-BoyIncorporated. |
|-----|--------------------------------------------------------------------|

| 1.6 | “Change in Control”      means a change in the ownership or effective control of the Company or in      the ownership of a substantial portion of the assets of the Company, as      more fully described in attached Exhibit A, which shall be interpreted in      accordance with Code §409A(a)(2)(A)(v) and regulations and other guidance      thereunder. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7 | “Code" means the Internal      Revenue Code of 1986, as amended. |
|-----|------------------------------------------------------------------------|

| 1.8 | “Committee” means the      group charged with administration of the Plan and having the powers      provided in Section VIII and shall consist of the Compensation Committee      of the Board of Directors. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9 | “Company” means La-Z-Boy      Incorporated, a Michigan Corporation, and its successors and      assigns. |
|-----|----------------------------------------------------------------------------------------------------------------------|

| 1.10 | “Company Contribution      Account” means the bookkeeping account maintained by the Company      for each Participant that is credited with an amount equal to the Company      Discretionary Contribution, the Company Matching Contribution and earnings      and losses on such amounts pursuant to Section  4.2. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.11 | “Company Discretionary      Contribution” means such discretionary amount, contributed by the      Company to a Participant’s Company Contribution Account for a Plan      Year.  Such amount shall generally represent, but may not      necessarily be, the amount of profit sharing or discretionary      contribution, which cannot be contributed to a qualified retirement plan      and may differ from Participant to Participant both in amount, (including      no contribution) and as a percentage of  Compensation. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.12 | “Company Matching      Contribution” means any addition made by the Company to a      Participant’s Company Contribution Account for a Plan Year, attributable      to a compensation deferral election made by such Participant under the      Qualified 401(k) Plan. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.13 | “Compensation” means the      Participant’s remuneration as defined in the Qualified 401(k) Plan, but      without the Code §401(a)(17)limitation. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    |
|--------------|
| Page      2  |

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| 1.14 | “Deferral Account” means      the bookkeeping account maintained by the Company for each Participant’s      Salary Deferrals, if any, and earnings and losses on such amounts pursuant      to Section 4.1. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.15 | “Disabled” means the date      when a Participant (i) is 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.  |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.16 | “Distributable Amount”      means the vested balance in the Participant’s Deferral Account and/or in      his Company Contribution Account. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.17 | “Distributable Event”      means the event that triggers a distribution under the Plan including a      Separation From Service, death, becoming Disabled or a Scheduled      Withdrawal Date. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.18 | “Effective Date” means      January 1, 2005 |
|------|---------------------------------------------------------|

| 1.19 | "Eligible Employee” means      any Employee who meets the eligibility requirements of Section II of the      Plan. |
|------|--------------------------------------------------------------------------------------------------------------------------|

| 1.20 | "Employee" means any      individual employed by the Company or any of its    subsidiaries. |
|------|---------------------------------------------------------------------------------------------|

| 1.21 | "ERISA" means the      Employee Retirement Income Security Act of 1974, as    amended. |
|------|----------------------------------------------------------------------------------------|

| 1.22 | “Fund” or “Funds” means one or more      of the investment funds selected by the Committee pursuant to Sections      3.8(b) and 8.3(1). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.23 | “Incentive Compensation”      means that portion of an executive’s bonus compensation received under the      La-Z-Boy Incorporated Bonus Program that is based on Company performance      (and does not include any portion of such bonus that is based on      individual performance criteria and/or actual individual performance) and      provided further (and to the extent) such bonus compensation is      “performance-based” within the meaning of Section 409A(a)(4)(B)(iii) of      the Code.  For purposes of this definition, “performance-based”      refers to compensation for which the amount of, or entitlement to, the      compensation is contingent on the satisfaction of preestablished Company      or business unit performance criteria relating to a period of at least 12      consecutive months and shall not include any amount that will be paid      regardless of performance, or based on a level of performance that is      substantially certain to be met at the time the criteria are      established.  Performance criteria shall be established in      writing, and communicated to employees, no later than 90 days after the      commencement of the performanceperiod. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        |
|-------------|
| Page      3 |

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| 1.24 | “Initial Election Period”      means |
|------|--------------------------------------------------|

|   | a) | for      an Eligible Employee who is eligible on the Effective Date, a period      beginning December 1, 2004 and ending March 15, 2005;  or |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | for      an Eligible Employee who becomes newly eligible after the Effective Date,      a 30-day period commencing on the first day he becomes an Eligible      Employee; provided that (i) only elective deferrals of Base Compensation      may be made, and only with respect to compensation earned subsequent to      the initial election; and (ii) such Initial Election Period shall not be      available to a former Participant unless such former Participant has      received all balances under the Plan and on and before the date of the      last payment was not eligible to continue participation in the Plan; and      (iii) such Initial Election Period shall also not be available to a former      Participant that ceased being eligible to participate in the Plan,      regardless of whether all balances under the Plan have been distributed,      unless he has not been eligible to participate in the Plan (other than the      accrual of earnings) at any time during the 24-month period ending on the      date he becomes eligible to participate in the Plan.  For      purposes of this Section 1.24, the term Plan includes all other elective      account balance plans of the Company that must be aggregated for purposes      of Treasury Regulation Section1.409A-1(c)(2). |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.25 | “Interest Rate” means,      for each Fund, an amount equal to the net gain or loss on the assets of      such Fund. |
|------|---------------------------------------------------------------------------------------------------------------------------------|

| 1.26 | "Participant" means any      individual who has elected to defer Compensation, has been allocated a      Company Contribution and/or who otherwise maintains a balance under the      Plan. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.27 | “Payment Date” means the      first March 31st      after a Distributable Event occurs, unless a Distributable Event occurs      between March 1st      and March 30th,      in which case the Payment Date is the second March 31st      after a Distributable Event occurs. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.28 | “Plan” means the 2005      La-Z-Boy Incorporated Executive Deferred Compensation  Plan. |
|------|-----------------------------------------------------------------------------------------------------|

| 1.29 | "Plan Year" means the      twelve-month period coinciding with the calendar  year. |
|------|------------------------------------------------------------------------------------|

| 1.30 | “Pre-2005 Participant”      means an Employee (including a Participant in this Plan) or former      Employee of the Company or one of its Subsidiaries who has a Company      Contribution Account balance in the Prior Plan which had not become vested      as of the Effective Date of this Plan and the balance is held in a Prior      Account. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        |
|-------------|
| Page      4 |

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| 1.31 | “Prior Account” means the      non-vested balance of the bookkeeping account maintained under the Prior      Plan for each Pre-2005 Participant as of the Effective Date of this      Plan. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.32 | “Prior Plan” means the      La-Z-Boy Incorporated Executive Deferred Compensation Plan, last amended      and restated effective August 1,2002. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.33 | “Qualified 401(k) Plan”      means the La-Z-Boy Incorporated Retirement Savings Plan or the qualified      plan of the Company or Subsidiary having §401(k) and or §401(m) features      applicable to the Participant. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.34 | “Qualified Profit Sharing      Plan” means the La-Z-Boy Incorporated Retirement Contribution and      Profit Sharing Plan (formerly known as the “La-Z-Boy Incorporated      Employees’ Amended Profit Sharing Plan”) or the qualified plan of the      Company or Subsidiary having employer profit sharing allocations      applicable to the Participant. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.35 | “Rabbi Trust” or “Trust” means the 2005      La-Z-Boy Incorporated Executive Deferred Compensation Plan Trust, a      grantor trust established by the Company to hold funds equal to the      liability of the Plan, in accordance with Section  VII. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.36 | “Salary Deferral” means      the amount deferred by the Participant from his Base and/or Incentive      Compensation pursuant to Section3.4. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.37 | “Scheduled Withdrawal      Date” means the distribution date selected by the Participant for a      withdrawal of amounts from a Participant’s Deferral Account, including      earnings and losses attributable thereto, pursuant to Section      3.6(b). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.38 | “Separation From      Service” means the date upon which a Participant is no longer an      Employee of the Company, determined under the rules and procedures      described in attached Exhibit B. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.39 | “Subsidiary” means a      corporation, domestic or foreign, the majority of whose voting stock is      owned directly or indirectly by theCompany. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.40 | “Trustee” means Wachovia      Bank, NA, and its successors andassigns. |
|------|------------------------------------------------------------------------------------|

| 1.41 | “Unforeseeable      Emergency” means a severe financial hardship to the Participant      resulting from an illness or accident of the Participant, the      Participant's spouse, or a dependent (as defined in Treasury Regulation      Section 1.409A-3(i)(3)(i)) of the Participant, loss of the Participant's      property due to casualty (including the need to rebuild a home following      damage to a home not otherwise covered by insurance, for example, not as a      result of a natural disaster), or other similar extraordinary and      unforeseeable circumstances arising as a result of events beyond the      control of the Participant.  Some examples may include the      imminent foreclosure of or eviction from the Participant’s primary      residence, the need to pay for medical expenses, including nonrefundable      deductibles, as well as for the costs of prescription drug medication and      finally, the need to pay for the funeral expenses of a spouse, a      beneficiary or a dependent (as defined in Treasury Regulation Section      1.409A-3(i)(3)(i)).  Except as otherwise provided in this      Section 1.41, the purchase of a home and the payment of college tuition      are not unforeseeable emergencies.  The foregoing requirements      shall be met only if, as determined under regulations of the U.S.      Secretary of the Treasury, the amounts distributed with respect to such an      emergency do not exceed the amounts necessary to satisfy such emergency      plus amounts necessary to pay taxes reasonably anticipated as a result of      the distribution, after taking into account the extent to which such      emergency is or may be relieved through reimbursement or compensation by      insurance or otherwise or by liquidation of the Participant's assets (to      the extent the liquidation of such assets would not itself cause severe      financial hardship). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        |
|-------------|
| Page      5 |

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| 1.42 | "Vested" means the      nonforfeitable portion of a Participant’s  Account. |
|------|-----------------------------------------------------------------------------------|

| 1.43 | "Year of Service" means      the period that is measured on an elapsed time basis from a Participant’s      initial date of employment with the Company until the date his employment      with the Company terminates.  A Participant will be credited      with a full Year of Service for each completed Year of      Service.  No fractional Years of Service will be      credited.  In the event of a break in service, a Participant’s      rehire date will be treated as an initial date of employment with the      Company. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Section II – Eligibility and Participation

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| 2.1 | Eligibility |
|-----|-------------|

| 2.2 | Participation |
|-----|---------------|

|        |
|-------------|
| Page      6 |

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Section III – CONTRIBUTIONS AND DEFERRAL ELECTIONS

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| 3.1 | In    General |
|-----|---------------|

| 3.2 | Company Discretionary      Contribution |
|-----|-----------------------------------------|

| 3.3 | Company Matching      Contribution |
|-----|------------------------------------|

| 3.4 | Salary Deferrals and Incentive      Compensation |
|-----|--------------------------------------------------|

|        |
|-------------|
| Page      7 |

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|   | a) | An      Employee must elect during the Annual Election Period (or an Initial      Election Period, if applicable) to have Base Compensation      deferred; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | An      Employee must elect during the Annual Election Period (and under no      circumstances during an Initial Election Period), provided such period      ends no later than six months prior to the end of a 12-month performance      measurement period, and in no event after such Incentive Compensation has      become both substantially certain to be paid and readily ascertainable in      amount, and shall only be valid if the Participant performs services      continuously from the date the performance criteria are established      through the date the election to defer Incentive Compensation is made      pursuant to Section 3.6; and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | A      deferral election must be expressed as a percentage which shall not exceed      100% of the Employee’s Base Compensation and/or Incentive Compensation (as      applicable), provided that the total amount deferred by a Participant      shall be limited in any calendar year, if necessary, to satisfy Social      Security Tax (including Medicare), income tax and employee benefit plan      withholding requirements.  The minimum elective deferral which      may be made in any Plan Year by a Participant shall not be less than 5% of      such Participant’s Base Compensation, and/or 5% of such Participant’s      Incentive Compensation. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.5 | Deferral Elections for Company      Contribution Accounts |
|-----|-----------------------------------------------------------|

|   | a. | Substantially      equal annual installments over a period of time not to exceed fifteen (15)      years, commencing on the Participant's Payment  Date; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Substantially      equal annual installments over a period of time not to exceed fifteen (15)      years, commencing on an anniversary of the Participant’s Payment Date, but      in no event shall be an anniversary date that is more than five (5) years      after the Participant’s Separation From Service;  OR |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | A      lump sum payment on an anniversary of the Participant’s Payment Date, but      in no event an anniversary date that is more than five (5) years after the      Participant’s Separation FromService. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        |
|-------------|
| Page      8 |

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| 3.6 | Deferral Elections for Deferral      Accounts |
|-----|-----------------------------------------------|

|   | a. | Upon Separation of      Service.  A Participant may elect to have the applicable      annual deferrals in his Deferral Account paid upon Separation From Service      according to one of the three options listed in 3.5(a), (b) and (c)      above. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Scheduled Withdrawal      Date Distributions.  A Participant may elect to have the      applicable annual deferrals in his Deferral Account distributed      in: |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | a      lump sum commencing on a Scheduled Withdrawal Date;  or |
|--------|----|----------------------------------------------------------------|

|   | ii. | two      (2) to fifteen (15) substantially equal annual installments commencing on      a Scheduled Withdrawal Date, subject to Section  6.1(e). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.7 | Election      Changes |
|-----|-----------------------|

|   | i. | an      election change will not take effect until at least 12 months after the      date on which the election is filed pursuant to procedures established by      the Committee (i.e., the election change will be void if a Participant      dies or has a Separation From Service within 12 months of the election      change); |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | the      payment (or first installment) with respect to which such election is made      must be postponed for a period of at least 5 years from the date such      payment (or first installment) would otherwise have been made, and, in the      case of installments, payment of each installment after the first      installment shall also be deferred for a period of at least 5 years      (except in the case of death or Unforeseeable Emergency);    and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        |
|-------------|
| Page      9 |

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|   | iii. | With      respect to payments upon a Scheduled Withdrawal Date, an election change      must be filed pursuant to procedures established by the Committee at least      12 months prior to the applicable PaymentDate. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.8 | Investment      Elections |
|-----|---------------------------|

|   | a) | At      the time of initial participation in the Plan under Section II and upon      making annual deferral elections described in Sections 3.4 and 3.6, the      Participant shall designate, pursuant to procedures established by the      Committee, the types of investment funds in which the Participant’s      Account will be deemed to be invested for purposes of determining the      amount of earnings to be credited to that Account.  In making      the designation pursuant to this Section 3.8(a), the Participant may      specify that all or any multiple of his Account be deemed to be invested,      in whole percentage increments, in one or more of the types of investment      funds provided under the Plan as communicated from time to time by the      Committee.  Effective as of the end of any business day, a      Participant may change the designation made under this Section 3.8(a)      pursuant to procedures established by the Committee.  If a      Participant fails to elect a type of fund under this Section 3.8(a), he      shall be deemed to have elected the Money Market type of investment      fund. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Although      the Participant may designate the type of investments as described in      Section 3.8(a) above, the Committee shall not be bound by such      designation.  The Committee shall select from time to time, in      its sole and absolute discretion, commercially available investments for      each of the types of Funds communicated by the Committee to the      Participant pursuant to Section 3.8(a) above to be the      Funds.  The Interest Rate of each such commercially available      investment fund shall be used to determine the amount of earnings or      losses to be credited to the Participant’s Account under Section      IV. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

SECTION IV - ACCOUNTS

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| 4.1 | Deferral      Accounts |
|-----|------------------------|

|         |
|--------------|
| Page      10 |

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|   | a) | On      the third business day after amounts are deferred, and withheld from a      Participant's Compensation, the Committee shall credit the investment fund      sub accounts of the Participant's Deferral Account with an amount equal to      Compensation deferred by the Participant in accordance with the      Participant's election under Section 3.8(a); that is, the portion of the      Participant's deferred Compensation that the Participant has elected to be      deemed to be invested in a certain type of investment fund shall be      credited to the investment fund sub account corresponding to that      investment fund.  Effective May 1, 2008, amounts will be      credited in the manner described above, on the same day that amounts are      deferred and withheld from a Participant’s Compensation (as opposed to the      third business day). |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Each      business day, each investment fund sub account of a Participant's Deferral      Account shall be credited with earnings or losses in an amount equal to      that determined by multiplying the balance credited to such investment      fund sub account as of the prior day plus contributions credited that day      to the investment fund sub account by the Interest Rate for the      corresponding fund selected by the Company pursuant to Section      3.8(b). |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | In      the event that a Participant elects for a given Plan Year's deferral of      Compensation to have a Scheduled Withdrawal Date pursuant to Section      3.6(b), all amounts attributed to the deferral of Compensation for such      Plan Year shall be accounted for in a manner which allows separate      accounting for the deferral of Compensation and investment gains and      losses associated with such Plan Year's deferral of      Compensation. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Company Contribution      Account |
|-----|-----------------------------------|

|   | a) | The      Committee shall establish and maintain a Company Contribution Account for      each Participant under the Plan.  Each Participant's Company      Contribution Account shall be further divided into separate investment      fund sub accounts corresponding to the investment fund(s) elected by the      Participant pursuant to Section 3.8(a).  Effective the third      business day after a Company Discretionary Contribution amount and/or      Company Matching Contribution amount is calculated and approved, the      Committee shall credit the investment fund sub accounts of the      Participant's Company Contribution Account with an amount equal to the      Company Discretionary Contribution amount, if any, applicable to that      Participant, that is, the proportion of the Company Discretionary      Contribution amount, if any, and/or Company Matching Contribution amount,      if any, which the Participant elected to be deemed to be invested in a      certain type of investment fund shall be credited to the corresponding      investment fund sub account.  Effective May 1, 2008, amounts      will be credited in the manner described above, on the same day that      amounts are calculated and approved (as opposed to the third business      day). |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |
|--------------|
| Page      11 |

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|   | b) | Each      business day, each investment fund sub account of a Participant's Company      Contribution Account shall be credited with earnings or losses in an      amount equal to that determined by multiplying the balance credited to      such investment fund sub account as of the prior day plus contributions      credited that day to the investment fund sub account by the Interest Rate      for the corresponding Fund selected by the Company pursuant to Section      3.8(b). |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | Prior      Account |
|-----|--------------------|

SECTION V – VESTING

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| 5.1 | Vesting In      General |
|-----|-------------------------|

|   | a) | Deferral      Account - A Participant shall have a 100% nonforfeitable interest      in benefits payable from his DeferralAccount. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Company Contribution      Account - A Participant shall have a nonforfeitable percentage      interest in his Company Matching Contribution and the profit sharing      portion of the Company Discretionary Contribution at a rate of 25% vesting      for each Year of Service.  All of a Participant’s Years of      Service, including service accrued under the Prior Plan, shall be counted      toward vesting under this Plan.  The Company shall determine the      vesting schedule of any other Company Discretionary Contributions (i.e.,      not profit sharing related) credited to the Participant’s Company      Contribution Account. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Prior Account -      A Pre-2005 Participant shall vest at a rate of 25% per Year of Service in      benefits payable under the Plan from his Prior Account which are      attributable to prior contributions made by the Company and any interest      thereon.  Service accrued under the Prior Plan shall be counted      toward vesting under this Plan. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Vesting upon Plan Termination      or Change in Control |
|-----|---------------------------------------------------------|

|         |
|--------------|
| Page      12 |

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| 5.3 | Vesting upon Sale of      Company-Owned Retail Store |
|-----|------------------------------------------------------|

| 5.4 | Vesting upon Death or      Disability of a Participant |
|-----|--------------------------------------------------------|

SECTION VI – DISTRIBUTION OF BENEFITS

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| 6.1 | Distribution      Rules |
|-----|-------------------------|

|   | a) | Company Contribution      Accounts.  Subject to 6.1(d), (e) and (f) below, vested      balances in a Participant’s Company Contribution Account shall be paid to      him in a lump sum on the Participant's Payment Date following the      Participant’s Separation From Service; provided, however, that if a      Participant elected to receive payment at an alternative time or in      installments, pursuant to Section 3.5(a), (b) or (c), payment shall be      made in accordance with suchelection. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Deferral Account      Distributions Upon Separation From Service.  Subject to      6.1(d), (e) and (f) below, all balances in a Participant’s Deferral      Account for which a Participant elected to receive upon Separation From      Service pursuant to Section 3.6(a) shall be paid to the Participant in      accordance with each such election he has on  file. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Deferral Account      Distributions Upon Scheduled Withdrawal Date.  All      balances in a Participant’s Deferral Account which a Participant elected      to receive upon a Scheduled Withdrawal Date pursuant to Section 3.6(b)      shall be paid to the Participant upon such Scheduled Withdrawal Dates,      notwithstanding whether the Participant Separates From Service, either      prior or subsequent to such dates. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | Distributions Upon      Separation From Service.  Notwithstanding the foregoing      provisions of this Section 6.1, to the extent a distribution (or      commencement of annual installments) from any and all Accounts is to be      made upon Separation From Service, and the applicable Payment Date is less      than six months after the Separation from Service, then payment shall be      delayed until the first date of the seventh month following the date of      Separation From Service (or until death, if earlier).  In the      case of installments, the second installment shall be paid on the next      Payment Date, and each subsequent installment shall be paid on each      Payment Date thereafter.  Payments made pursuant to a Scheduled      Withdrawal Date as described in Section 6.1(c) are not subject to the      delay described herein. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |
|--------------|
| Page      13 |

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|   | e) | Cash-out.  Notwithstanding      previous installment elections under Sections 3.5 and/or 3.6, in the case      of a Participant who, at the time of his Separation From Service, has a      balance of $25,000 or less in any of his Accounts (i.e., his      Company Contribution Account or his Deferral Account, or both), the      Distributable Amount for such Account(s) shall be paid to the Participant      (or after his death to his Beneficiary) in a lump sum distribution on the      Participant's Payment Date, subject to any delay required by Section      6.1(d). |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | Distribution upon      Separation From Service due to Death.  In the event a      Participant dies while in the employ of the Company, any unvested portion      of the Participant’s Company Contribution Account shall become immediately      vested pursuant to Section 5.4, and the Company shall distribute the      Participant’s undistributed Account to the Participant’s Beneficiary in a      lump sum payment within 90 days of the Participant’s death, or by the end      of the calendar year, whichever islater. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g) | Death Benefit after      Separation From Service.  In the event a Participant dies      after his Separation From Service and still has a vested balance in his      Account, the vested balance of such Account shall be paid to the      Participant’s Beneficiary in a lump sum payment within 90 days of the      Participant’s death, or by the end of the calendar year, whichever is      later. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h) | Distribution upon      becoming Disabled.  In the event a Participant becomes      Disabled while in the employ of the Company, any unvested portion of the      Participant’s Company Contribution Account shall become immediately vested      pursuant to Section 5.4, and distributions shall commence pursuant to      Sections 6.1(a), 6.1(b) and/or 6.1(c)above. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | Unforeseeable Emergency      Distribution |
|-----|-------------------------------------------|

|   | a) | General      Rule.  A Participant may request a distribution from his      Deferral Account, prior to a scheduled Payment Date, in the event of an      Unforeseeable Emergency.  The request to take a distribution      shall be made by completing a form provided by and filed with the      Committee.  The Committee will first require that the      Participant cancel all outstanding elective deferrals, deferred pursuant      to Section 3.6.  If the Committee determines that the requested      distribution is for the purpose of meeting an Unforeseeable Emergency in      accordance with Section 1.41 of the Plan, and that the requested      distribution is necessary to relieve the Unforeseeable Emergency even      after the cancellation of outstanding deferral election(s), then the      amount determined by the Committee, sufficient to meet the Unforeseeable      Emergency in accordance with Section 1.41 of the Plan, shall be paid in a      single cash lump sum as soon aspracticable. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |
|--------------|
| Page      14 |

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|   | b) | New Deferral      Election.  Once a Participant’s deferral election(s) is      cancelled pursuant to Section 6.2(a), notwithstanding that a distribution      might be granted, a Participant may not elect to again defer, pursuant to      Section 3.6 of the Plan for at least 12 months from the date that the      distribution under this Section isrequested. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3 | Tax      Withholding |
|-----|----------------------|

| 6.4 | Other |
|-----|-------|

| 6.5 | Inability to Locate      Participant |
|-----|--------------------------------------|

|         |
|--------------|
| Page      15 |

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Section VII - Funding

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| 7.1 | Unfunded      Plan |
|-----|--------------------|

| 7.2 | Rabbi    Trust |
|-----|----------------|

|         |
|--------------|
| Page      16 |

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SECTION VIII – PLAN ADMINISTRATION

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| 8.1 | General    Duty |
|-----|-----------------|

| 8.2 | Committee      Action |
|-----|-----------------------|

| 8.3 | General Powers, Rights and      Duties of the Committee |
|-----|---------------------------------------------------------|

|   | (1) | To      select the Funds in accordance with Section 3.8(b)  hereof; |
|--------|-----|---------------------------------------------------------------------|

|   | (2) | To      construe and interpret the terms and provisions of this Plan, and make      findings of fact in connectiontherewith; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | To      compute and certify to the amount and kind of benefits payable to      Participants and theirBeneficiaries; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

|   | (4) | To      maintain all records that may be necessary for the administration of the      Plan; |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (5) | To      provide for the disclosure of all information and the filing or provision      of all reports and statements to Participants, Beneficiaries or      governmental agencies as shall be required by  law; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Page      17 |

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|   | (6) | To      make and publish such rules for the regulation of the Plan and procedures      for the administration of the Plan as are not inconsistent with the terms      hereof; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | To      appoint a Plan administrator or any other agent, and to delegate to them      such powers and duties in connection with the administration of the Plan      as the Committee may from time to time prescribe;  and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | To      take all actions necessary for the administration of the Plan, including      determining whether to hold or discontinue its  policies. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | Construction and      Interpretation |
|-----|--------------------------------------|

| 8.5 | Information |
|-----|-------------|

| 8.6 | Compensation, Expenses and      Indemnity |
|-----|-------------------------------------------|

|   | a) | The      members of the Committee shall serve without compensation for their      services hereunder. |
|--------|----|-------------------------------------------------------------------------------------------------------|

|   | b) | The      Committee is authorized at the expense of the Company to employ such legal      counsel as it may deem advisable to assist in the performance of its      duties hereunder.  Expenses and fees in connection with the      administration of the Plan shall be paid by the  Company. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | To      the extent permitted by applicable state law, the Company shall indemnify      and hold harmless the Committee and each member thereof, the Board of      Directors and any delegate of the Committee who is an employee of the      Company against any and all expenses, liabilities and claims, including      legal fees to defend against such liabilities and claims arising out of      their discharge in good faith of responsibilities under or incident to the      Plan, other than expenses and liabilities arising out of willful      misconduct.  This indemnity shall not preclude such further      indemnities as may be available under insurance purchased by the Company      or provided by the Company under any bylaw, agreement or otherwise, as      such indemnities are permitted under statelaw. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |
|--------------|
| Page      18 |

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| 8.7 | Claims and Review      Procedures |
|-----|-----------------------------------|

|   | a) | Claim - A      person who believes that he is being denied a benefit to which he is      entitled under this Plan (hereinafter referred to as "Claimant") must file      a written request for such benefit with the Company, setting forth his      claim.  The request must be addressed to the President of the      Company at its then principal place ofbusiness. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Claim Decision      - Upon receipt of a claim, the Company shall advise the Claimant that a      reply will be forthcoming within ninety (90) days, and shall, in fact,      deliver such reply within such period.  The Company may,      however, extend the reply period for an additional ninety (90) days for      special circumstances. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Request For      Review - Within sixty (60) days after the receipt by the Claimant      of the written opinion described above, the Claimant may request in      writing that the Committee review the determination of the      Company.  Such request must be addressed to the President of the      Company, at its then principal place of business.  The Claimant      or his duly authorized representative may, but need not, review the      pertinent documents and submit issues and comments in writing for      consideration by the Committee.  If the Claimant does not      request a review within the applicable period, he shall be barred and      estopped from challenging the Company's  determination. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | Review of      Decision - Within sixty (60) days after the Committee's receipt of      a request for review, after considering all materials presented by the      Claimant, the Committee will inform the Participant in writing, in a      manner calculated to be understood by the Claimant, the decision setting      forth the specific reasons for the decision containing specific references      to the pertinent provisions of this  Plan on which the decision      is based.  If special circumstances require that the applicable      time period be extended, the Committee will so notify the Claimant and      will render the decision as soon as possible, but no later than one      hundred twenty (120) days after receipt of the request for      review. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |
|--------------|
| Page      19 |

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| 8.8 | Furnishing Information or      Providing Other Reports |
|-----|--------------------------------------------------------|

Section IX - Amendment and Discontinuance

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| 9.1 | In    General |
|-----|---------------|

SECTION X – GENERAL PROVISIONS

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| 10.1 | Unsecured General      Creditor |
|------|---------------------------------|

|         |
|--------------|
| Page      20 |

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| 10.2 | Restriction Against      Assignment |
|------|-------------------------------------|

|         |
|--------------|
| Page      21 |

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| 10.3 | Receipt or      Release |
|------|-------------------------|

| 10.4 | Payments on Behalf of Persons      Under Incapacity |
|------|-----------------------------------------------------|

| 10.5 | Limitation of Rights and      Employment Relationship |
|------|-------------------------------------------------------|

| 10.6 | Governing      Law |
|------|--------------------|

| 10.7 | Statutory      References |
|------|---------------------------|

|         |
|--------------|
| Page      22 |

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| 10.8 | Severability |
|------|--------------|

| 10.9 | Headings |
|------|----------|

| 10.10 | Action by the      Company |
|-------|----------------------------|

| LA-Z-BOY      INCORPORATED                |
|-------------------------------------------|
|                                      |   |
| By:                                       |   |
| President      and Chief ExecutiveOfficer |

|         |
|--------------|
| Page      23 |

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| a. | A      change in ownership of the Company in which any one person, or more than      one person acting as a group acquires beneficial ownership of stock of the      Company that, together with stock held by such person or group,      constitutes more than 50 percent of the total fair market value or total      voting power of the stock of the Company; provided, however, that for      purposes of this subsection (a), the following acquisitions shall not      constitute a Change in Control: (i) any acquisition by the Company, or      (ii) any acquisition by any employee benefit plan (or related trust)      sponsored or maintained by the Company or by any corporation controlled by      the Company. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b. | A      change in the effective control of the Company, pursuant to which      either: |
|----|---------------------------------------------------------------------------------------|

|   | (i) | Any      one person, or more than one person acting as a group acquires (or has      acquired during the 12-month period ending on the date of the most recent      acquisition by such person or persons) beneficial ownership of stock of      the Company possessing 30 percent or more of the total voting power of the      stock of the Company. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | A      majority of members of the Company’s board of directors is replaced during      any 12-month period by directors whose appointment or election is not      endorsed by a majority of the members of the Company’s board of directors      before the date of the appointment orelection. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c. | A      change in the ownership of a substantial portion of the Company’s assets      pursuant to which any one person, or more than one person acting as a      group acquires (or has acquired during the 12-month period ending on the      date of the most recent acquisition by such person or persons) assets from      the Company that have a total gross fair market value equal to or more      than 40 percent of the total gross fair market value of all of the assets      of the Company immediately before such acquisition or      acquisitions.  As used herein, gross fair market value means the      value of the assets of the Company, or the value of the assets being      disposed of, determined without regard to any liabilities associated with      such assets.  However, there is no change in control event under      this paragraph  when there is a transfer to a related person as      described in Reg.§1.409A-3(i)(5)(vii)(B) |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Page      24 |

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|         |
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