AMENDMENT AGREEMENT NO. 1


                 AMENDMENT AGREEMENT NO. 1 dated as of June 7, 1995
                 amending Exhibit A-1 to the Equipment Leasing Agreement
                 dated as of December 15, 1994 between Unionbanc Leasing
                 Corporation ("Lessor") and LADD Furniture, Inc.
                 ("Lessee") (said Equipment Leasing Agreement as amended
                 and supplemented from time to time herein called the
                 "Agreement").  All capitalized terms which are not
                 otherwise defined herein shall have the meaning given
                 to such terms in the Agreement.

                          WHEREAS, Lessee and Lessor desire to fix the
                 Basic Rent percentage and Interim Rent Percentage
                 pertaining to Equipment being accepted on or after June
                 7, 1995 and through and including June 30, 1995.

                          NOW THEREFORE, in consideration of the
                 foregoing, and of the mutual covenants herein
                 contained, Lessee and Lessor do hereby agree as
                 follows:

                          1.      The section titled Basic Rent
                 Percentage is hereby amended by adding after the words
                 "January 1, 1995" appearing on the second line thereof,
                 the words "and prior to June 30, 1995, a factor equal
                 to 1.477829%, and on or after July 1, 1995".

                          2.      The section titled Interim Rent
                 Percentage is hereby amended by adding after the words
                 "January 1, 1995" appearing in the second line thereof,
                 the words "and prior to June 30, 1995, a factor equal
                 to .049261%, and on or after July 1, 1995".

                          3.      The first full paragraph on the second
                 page is inapplicable to Equipment accepted between June
                 7, 1995 through and including June 30, 1995.

                          4.      The section titled Certain Values is
                          hereby replaced with the following Certain
                          Values:




                                           Estimated            Maximum              Maximum
                                           Residual             Lessee               Lessor
                                           Value                Risk                 Risk
                 Expiration of:              Percentage:*        Percentage:*         Percentage:*
                                                                            
                 Basic Term                55.197300            41.004026            14.193274

                 Renewal Term 1            30.000000            23.670111             6.329889
                 (if any)







                          The words "this Agreement", "hereby" and other
                 like words in the Agreement from and after the
                 effective date of this Amendment Agreement No. 1 shall
                 mean and include the Agreement as amended and each
                 amendment and supplement thereto.  The Agreement as
                 amended shall continue in full force and effect,
                 strictly in accordance with its terms, and is in all
                 respects ratified and confirmed.

                          IN WITNESS WHEREOF, the parties hereto have
                 caused this Amendment Agreement No. 1 to be duly
                 executed by their duly authorized representatives as of
                 the date first written above.

                                                  LADD FURNITURE, INC.
                                                  (LESSEE)



                                                  BY:
                                                  TITLE:


                                                  UNIONBANC LEASING
                                                  CORPORATION (LESSOR)

                                                  BY:
                                                  TITLE: