On January 24, 2013, the Executive Compensation and Employee Benefits Committee (the "Compensation Committee") of the Board of Directors of Haverty Furniture Companies, Inc. (the "Company" or "Havertys") pursuant to the Company's 2004 Long Term Incentive Plan authorized the grants of Restricted Stock Units ("RSUs") and Stock-Settled Appreciation Rights ("SARs"). The grants were made to individuals subject to the Securities Exchange Commission Section 16 reporting requirements (the "executive officers"), including the following individuals who will be listed as Named Executive Officers ("NEOs") in the Company's proxy statement for the year ended December 31, 2012.

Named Executive Officer   Number of RSUs      Number of SARs
Clarence H. Smith                  12,000              22,000
Dennis L. Fink                      7,500              14,000
Steven G. Burdette                  7,000              12,500
J. Edward Clary                     7,000              12,500
Richard D. Gallagher                7,000              12,500

Each RSU is equivalent to one share of common stock upon vesting. The RSUs vest in accordance with the schedule set forth in the notice of grant letter attached hereto as Exhibit 10.1, and incorporated herein by reference. The SARs vest in accordance with the schedule set forth in the notice of grant letter attached hereto as Exhibit 10.2 and incorporated herein by reference.

On January 24, 2013, the Compensation Committee also approved a new management incentive plan (the "Plan") to determine 2013 cash incentives for the Company's executive officers pursuant to the Company's 2004 Long Term Incentive Plan. The NEOs are eligible to receive a target payout from 50% to 85% of their 2013 annual base salary. The Plan allocates 80% of the target payout for Havertys achieving dollar amount goals of pre-tax earnings on a quarterly and annual basis. Participants will begin to earn a like percentage of their pre-tax earnings incentive once at least 80% of a goal is met with the percentage earned increasing pro rata up to 130% of target attainment. The Plan allocates the remaining 20% of the target payout for achieving additional performance criteria or specific projects or initiatives tailored to each person as established by the Compensation Committee. The Compensation Committee has discretion in the administration of the Plan.