Document:

<PAGE>   1
                                                                   EXHIBIT 10(e)

                               TRANSFER AGREEMENT

     Agreement made November 15, 1999, between Recycling Centers of America,
Inc., a Colorado corporation, hereinafter called "RCAI" and Steve Madsen of
11718 South Brisbane Drive, Sandy, Utah, and John D. Ewing of 7339 Shoreham
Place, Castle Rock, Colorado, hereinafter called "Sellers."

     1.   Effective November 15, 1999. The Sellers hereby assign and transfer
          to RCAI all of their rights, duties, and obligations under that
          certain Agreement dated December __, 1999, between Sellers and Brody
          Special Projects Company ("Agreement"). RCAI hereby agrees to assume
          all duties and obligations of the Sellers under the Agreement, and
          agrees to indemnify and hold Sellers harmless from all payment
          obligations described in paragraphs 1 and 2 of the Agreement. All
          accounts receivable, contract rights, and other benefits and
          obligations arising from transactions effected by Sellers with any of
          the assets, tangible or intangible, acquired by Sellers under the
          Agreement. Prior to December 14, 1999, shall be assigned and
          delivered to RCAI on December 14, 1999 except as noted as follows;
          net fees from PallSep pilot work at West Food Farms, Safeway, Dairy
          Farmers of America, Pepsi Cola General Bottlets and Leprino Foods
          will pass directly to Steve and John. Assignment is made with all
          assets in as is condition without representation or warranty of any
          kind. RCAI acknowledges the need for consent from New Logic
          International and Pall Corporation for transfer of OEM agreements.

     2.   In consideration of the assignment provided for in paragraph 1,
          above, RCAI shall issue and pay to the Sellers the following:

     (a)  RCAI shall issue stock options in the amount of 50,000 shares each,
          to Steve Madsen and John Ewing. Said options shall be exercisable for
          a term of 5 years from the date of this agreement, at an exercise
          price of $0.40 per share. Provisions for these options shall be
          similar to the option conditions provided in the employment
          agreements for Steve and John.

     (b)  RCAI shall issue stock options in the amount of 200,000 shares each,
          at an exercise price of $0.40 per share, to Steve Madsen and John
          Ewing. Said options are to be performance based and will be issued in
          50,000 share lots for each $4,000,000 of gross sales accomplished by
          the membrane filtration division of RCAI. This provision will be in
          force for 5 years from the date of this agreement and will be subject
          to option conditions similar to those provided in the employment
          agreements for Steve and John.

     (c)  RCAI agrees to pay Steve Madsen the sum of $36,800 over a six-month
          period in six equal increments of $6,133 beginning January 15, 2000
          and on the 15th of each subsequent month until the full sum is paid.

     3.   On or before January 30, 2000, RCAI shall appoint John Ewing to the
          board of RCAI.

/s/  BRUCE SELK                              /s/  STEVE MADSEN
-------------------------------              -------------------------------
Bruce Selk/CEO RCAI                          Steve Madsen

                                              /s/  JOHN EWING
                                              -------------------------------
                                              John Ewing
<PAGE>   2
                                   AGREEMENT

December 23, 1999

In consideration for transferring the agreements between John Ewing and Steve
Madsen with Brody Special Projects Company, Recycling Centers of America, Inc.
agrees to assume the obligations of the Promissory Note dated December 30, 1999
from Brody Special Projects.

                                /s/  BRUCE SELK
                         ------------------------------
                                Bruce Selk, CEO
                          Recycling Centers of America
                                4374 Imerial Way
                               Provo, Utah 84604

<PAGE>   3

                                ESCROW AGREEMENT

     THIS ESCROW AGREEMENT is made and entered into as of January __, 2000, by
and among Steve Madsen and John D. Ewing (collectively the "Purchaser"); Brody
Special Projects Company, a Utah Corporation ("Seller"); and Lehman, Jensen &
Donahue, L.C., as escrow agent (the "Escrow Agent").

                                    RECITALS

     WHEREAS, the Purchaser and the Sellers have entered into the Agreement
dated December __, 1999, ("Purchase Agreement") pursuant to which the Purchaser
agreed to purchase from Seller; certain assets of seller used in the business
of marketing, selling and leasing V-Sep and Pall-Sep systems, including
contract rights to market such systems; and

     WHEREAS, Seller has agreed to deposit certain assets into escrow under the
terms and conditions set forth herein pending payment of the purchase price for
the assets in accordance with the Purchase Agreement;

                                   AGREEMENT

     NOW, THEREFORE, in consideration of the mutual covenants contained herein
and in the Purchase Agreement, and for good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, it is agreed as follows:

     SECTION 1. Escrow Deposit.

          (a)  The Escrow Agent acknowledges receipt of a written assignment
     from Seller to Purchaser of the OEM Agreement between Seller and Pall
     Filtron, Inc., signed by Pall Filtron, Inc., on July 9, 1999, together with
     the written consent to assignment from Pall Filtron, Inc. ("Pall
     Assignment"), and a written assignment/termination from Seller to Purchaser
     of the OEM Agreement between Seller and New Logic International, Inc.,
     dated November 5, 1998 ("New Logic Assignment") and hereby confirms that
     the Pall Assignment and New Logic Assignment (collectively the "Escrow")
     will be held by the Escrow Agent pursuant to Section 3 of this Agreement.

          (b)  The Escrow Agent agrees to hold, administer and disburse the
     Escrow, pursuant to the terms of this Agreement.

     SECTION 2. Rights, Duties and Immunities. (a) Acceptance by the Escrow
Agent of its duties under this Agreement is subject to the following terms and
conditions, which all parties to this Agreement hereby agree shall govern and
control the rights, duties and immunities of the Escrow Agent:

               (i)  The Escrow Agent undertakes to perform such duties and only
          such duties as are expressly set forth herein; the Escrow Agent shall
          not be liable.

<PAGE>   4

     except for the performance of such duties and obligations as are expressly
     set forth herein; and the Escrow Agent shall not be deemed to have any
     knowledge of or responsibility for the terms of any other agreement
     between or among the Sellers, Sellers' Representative, the Purchaser or
     any other party, including, without limitation, the Purchase Agreement.

          (ii) The Escrow Agent shall not be responsible in any manner
     whatsoever for any failure or inability of the Sellers, the Sellers'
     Representative, the Purchaser or any third party, to deliver moneys to the
     Escrow Agent or otherwise to honor any of the provisions  of this
     Agreement, the Purchase Agreement or any other agreement.

          (iii) Purchaser shall, within ten (10) days following demand,
     reimburse and indemnify the Escrow Agent for, and hold it harmless from
     and against, any loss, liability or expense, including but not limited to
     reasonable counsel fees, arising out of or in connection with its
     acceptance of, or the performance of its duties and obligations under
     this Agreement, except for losses, liabilities and expenses caused by the
     willful misconduct or gross negligence of the Escrow Agent. Such costs of
     indemnification shall be borne the Purchaser. The provisions of this
     Section 2(a)(iii) shall survive any termination of this Agreement.

          (iv) The Escrow Agent shall be fully protected in acting on and
     relying upon any written notice, direction, request, waiver, consent,
     receipt or other paper or document which the Escrow Agent believes in good
     faith to have been signed or presented by the proper party or parties as
     provided pursuant to this Agreement.

          (v) The Escrow Agent shall not be liable for any error of judgment,
     or for any act done or step taken or omitted by it in good faith or for
     any mistake of fact or law, or for anything which it may do or refrain
     from doing in connection herewith, except its own willful misconduct or
     gross negligence.

          (vi) The Escrow Agent may seek the advice of legal counsel in the
     event of any dispute or question as to the construction of any of the
     provisions of this Agreement or its duties hereunder, and it shall incur
     no liability and shall be fully protected in respect of any action taken,
     omitted or suffered by it in good faith in accordance with the opinion of
     such counsel.

          (vii) The Escrow Agent makes no representation as to the validity,
     value, genuineness or collectibility of any security, document or
     instrument held by or delivered to it.

     (b)  If a controversy or dispute arises between one or more of the parties
hereto, or between any of the parties hereto and any person not a party hereto,
as to whether or not or to whom the Escrow Agent shall deliver the Escrow or
any portion

                                       2
<PAGE>   5
     thereof or as to any other matter arising out of or relating to the Escrow
     or this Agreement, the Escrow Agent shall, in its sole discretion, have the
     right to (but shall not be obligated to), commence interpleader or similar
     actions or proceedings for determination of such controversy or dispute,
     provided, however, in no event shall the Escrow Agent commence any
     interpleader or similar action or proceeding if it shall have received
     written notice that such controversy or dispute shall have been settled
     pursuant to a written agreement among the parties to such controversy or
     dispute or by a final judgment of a court of competent jurisdiction, not
     subject to further appeal; and provided, further, that notwithstanding the
     commencement of interpleader or similar actions or proceedings, resolution
     of the underlying dispute between Purchaser and Sellers as to payment of
     the Escrow shall be made in accordance with the Purchase Agreement.

          (c)  The Escrow Agent shall also be entitled to reimbursement of any
     other reasonable fees and expenses, including out-of-pocket costs and
     expenses and reasonable attorney's fees incurred by the Escrow Agent
     hereunder. The Purchaser shall be responsible for all of such fees and
     expenses.

     SECTION 3. Release of Escrow. The Escrow Agent shall disburse the Escrow
as follows:

          (a)  If each of the cash payments are made from Purchaser to Seller
     under paragraph 2.A. of the Purchase Agreement, then upon the final payment
     the Escrow Agent shall deliver to the Purchaser all of the Escrow. Each
     such cash payment shall be deposited with the Escrow Agent not less than 10
     days prior to the due date under the Purchase Agreement and shall be paid
     by Escrow Agent to Seller on or before the due date through a check drawn
     on the Escrow Agent's trust account payable to Seller and delivered to the
     office of Thomas R. Blonquist at 40 S. 600 East, Salt Lake City, Utah
     84102.

          (b)  If any of the cash payments are not made by Purchaser to Seller
     under paragraph 2.A. of the Purchase Agreement by the date specified
     therein, then upon such default the Escrow Agent shall deliver to the
     Seller all of the Escrow.

          (c)  The Escrow Agent shall, in addition, disburse the Escrow in
     accordance with any joint written instructions of the Purchaser and the
     Seller received by the Escrow Agent.

     SECTION 4. Termination of Escrow Agreement. This Agreement shall terminate
upon the distribution of all of the Escrow held by the Escrow Agent in
accordance with the provisions hereof.

     SECTION 5. Successor Escrow Agent

          (a)  The Escrow Agent (and any successor escrow agent) may at any time
     resign as such by delivering the Escrow to any successor escrow agent
     jointly designated

                                       3

<PAGE>   6
     in writing by the Purchaser and the Seller or to the court in connection
     with an interpleader or similar action brought pursuant to Section 2(b)
     above, whereupon the Escrow Agent shall be discharged of and from any and
     all further obligations arising in connection with this Agreement. The
     resignation of the Escrow Agent shall take effect on the earlier of the
     appointment of a successor escrow agent or the day which is 30 days after
     the date of delivery of the Escrow Agent's written notice of resignation
     to the other parties hereto. In the event that a successor escrow agent
     has not been appointed at the expiration of such 30-day period, the Escrow
     Agent's sole responsibility hereunder shall be the safekeeping of the
     Escrow and to disburse such Escrow in accordance with either the
     instructions signed by the Purchaser and the Seller or the order of any
     court of competent jurisdiction.

          (b)  If the Escrow Agent receives a written notice signed by the
     Seller and the Purchaser stating that they have selected another escrow
     agent, the Escrow Agent shall deliver the Escrow to the successor escrow
     agent named in the aforesaid notice within 10 days of its receipt of such
     notice.

     SECTION 6. Governing Law. Subject to the provisions of Section 2(b)
hereof, the Agreement shall be construed under and governed by and enforced in
accordance with the laws of the State of Utah.

     SECTION 7. Notice. All notices, requests, consents and other
communications under this Agreement shall be in writing and shall be mailed by
first class, registered or certified mail, postage prepaid, or sent via
overnight courier service, or delivered personally:

     If to the Escrow Agent:       Lehman, Jensen & Donahue, L.C.
                                   8 East Broadway, Suite 620
                                   Salt Lake City, UT 84111
                                   Attention: Mark Lehman

     If to Purchaser:              Steve Madsen
                                   11718 South Brisbane Drive
                                   Sandy, UT 8409__

     If to the Seller:             Brody Special Projects Company
                                   c/o Thomas R. Blonquist
                                   40 South 600 East
                                   Salt Lake City, UT 84102

or to such other address of which the addressee shall have notified the sender
in writing. Notices delivered personally shall be effective upon delivery.
Notices delivered by overnight mail shall be effective one day following the
date deposited with the overnight mail service. Notices delivered by registered
or certified mail shall be effective on the date set forth on the receipt of
registered or certified mail, or three days following the date deposited in the
U.S. mail, whichever is earlier.

                                       4

<PAGE>   7
     SECTION 8.   Headings. The headings of the paragraphs of this Agreement are
inserted as a matter of convenience and for reference purposes only, are of no
binding effect, and in no respect define, limit or describe the scope of this
Agreement or the intent of any paragraph.

     SECTION 9.   Counterparts; Facsimile Signatures. This Agreement may be
executed in any number of counterparts hereof, and by the different parties
hereto on separate counterparts hereof, each of which shall be deemed to be
an original and all of which together constitute one and the same agreement.
Facsimile signatures on this Agreement shall be deemed original signatures.

     SECTION 10.  Entire Agreement. This Agreement represents the entire
understanding and agreement among the parties hereto with respect to the subject
matter hereof, supersedes all prior negotiations between the parties, and can
be amended, modified, supplemented, extended, terminated, discharged or changed
only by an agreement in writing which makes specific reference to this
Agreement and which is signed by the party intended to be bound thereby.

     SECTION 11. Severability. If any provision of this Agreement or the
application thereof to any person or circumstance shall be invalid or
unenforceable to any extent the remainder of this Agreement and the application
of such provision to other persons or circumstances shall not be affected
thereby and shall be enforced to the greatest extent permitted by law, but only
as long as the continued validity, legality and enforceability of such
provision or application does not materially (a) alter the terms of this
Agreement, (b) diminish the benefits of this Agreement or (c) increase the
burdens of this Agreement, for any person.

     SECTION 12. Joint Instructions. Notwithstanding any provision contained
herein to the contrary, the Escrow Agent shall at any time and from time to
time take such action hereunder with respect to the Escrow as shall be directed
in writing by both the Purchaser and Seller.

     SECTION 13. Conflict Waiver. Seller and Purchaser are advised that the
Escrow Agent has represented the Purchaser in connection with this transaction,
and that the performance by the Escrow Agent of its duties hereunder may give
rise to a conflict of interest. The Escrow Agent may perform its duties
hereunder calling for the delivery of the Escrow to the Purchaser contrary to
the wishes of the Seller or act in some other way that the Seller considers
contrary to its interest, and the Escrow Agent may perform its duties hereunder
calling for the delivery of Escrow to the Seller contrary to the wishes of the
Purchaser or act in some other way that the Purchaser considers contrary to its
interest. Each of the Seller and Purchaser waive such conflicts, consent to the
Escrow Agent acting under this Agreement and representing the Purchaser in the
transactions contemplated by the Purchase Agreement, and release and hold the
Purchaser in the transactions contemplated by the Purchase Agreement, and
release and hold the Escrow Agent harmless from and against any claim that the
Purchaser or Seller may have against the Escrow Agent on the basis of the
performance of its duties under this Agreement, except the Escrow Agent's
willful misconduct or gross negligence.

                                       5
<PAGE>   8

      IN WITNESS WHEREOF, the undersigned have executed this Escrow Agreement
as of the date first written above.

BRODY SPECIAL PROJECTS COMPANY            PURCHASERS

By: /s/ [SIGNATURE ILLEGIBLE]             By: /s/ STEVE MADSEN
   -------------------------------           -------------------------------
   Name:                                     Steve Madsen
   Title:

LEHMAN, JENSEN & DONAHUE, L.C.

By:                                           /s/ JOHN D. EWING
   -------------------------------           -------------------------------
   Name: Mark E. Lehman                      John D. Ewing
   Title: Managing Member

                                       6
<PAGE>   9
                                   AGREEMENT

     AGREEMENT made December __, 1999, between Brody Special Projects Company,
a Utah corporation, hereinafter called "Brody" and Steven Madsen of 11718 South
Brisbane Drive, Sandy Utah, and John D. Ewing of 7339 Shoreham Place,
Castlerock Colorado, hereinafter called "Buyers".

     WHEREAS, the parties have reached an understanding with regard to the sale
by Brody and the purchase by Buyers of (a) certain assets of Brody and the
purchase by Buyers of (a) certain assets of Brody, which are utilized in the
business of marketing, selling and leasing V-Sep and Pall-Sep systems and (b)
the right to market, sell and lease V-Sep and Pall-Sep units under Brody's OEM
agreements with New Logic International and Pall Filtron, Inc.

     IT IS THEREFORE AGREED:

     1.   Sale of Assets and Projects.  Brody and Buyers agree that, at the
closing, Brody will sell, transfer and deliver to Buyers, for the consideration
hereinafter provided, all of the assets set forth on Exhibit "A" attached
hereto and the projects developed by Brody over the past eighteen months listed
at Exhibit "B" attached hereto, "Brody's projects" herein. Such sale shall be
made free and clear of all liabilities, obligations, security interests and
incumbrances, except only those liabilities and obligations which are to be
assumed by Buyers as hereinafter provided. Subject to the terms of this
agreement and in reliance upon the representations and warranties of Brody
contained herein,
<PAGE>   10
the Buyers shall purchase said assets and Brody's projects and, in full
consideration therefor, pay Brody $300,000 cash, as described at paragraph 2.A.
below, and $300,000 out of future sales, as described at paragraph 2.B. below,
and Buyers agree to pay or discharge Brody's liabilities and obligations only
to the extent provided at paragraph 6 below.

     2.   Payment of Purchase Price.

          A.   The $300,000 cash purchase price for the assets set forth at
Exhibit "A" and Brody's projects shown on Exhibit "B" shall be paid to Brody as
follows:

               $100,000 in cash or by certified check on the execution of this
agreement, receipt of which is hereby acknowledged;

               $50,000 in cash or by certified check at closing hereinafter
provided for and the balance at the rate of $50,000 on or before March 30,
2000, June 30, 2000, and September 30, 2000.

          B.   The Buyers agree to pay commissions to Brody on each Pall-Sep or
V-Sep unit sold from the projects listed in Exhibit "B" not to exceed a total of
$300,000 over five years from the date of this agreement. The rate of
commission will be 25% of net profit per unit or $6,250 per unit, whichever is
greater. Buyers agree to use their best efforts relative to each Brody project.

     3.   Granting of Rights.

          A.   As additional consideration for the receipt of the $300,000
described in paragraph 2.A. above, Brody agrees to grant to Buyers the right to
market and sell V-Sep and Pall-Sep units

                                       2

<PAGE>   11
under and pursuant to Brody's OEM Agreements with New Logic International, as
to V-Sep units, and Pall Filtron, Inc., as to Pall-Sep units.

          B.  Nothing in this agreement shall prohibit Buyers from negotiating
OEM Agreements for themselves directly with New Logic International and/or Pall
Filtron., Inc.

          C.  Brody agrees to transfer its OEM agreements with New Logic
International and Pall Filtron, Inc. to Buyers when all payments described in
paragraph 2.A. above have been timely paid. The documents of transfer shall be
placed with an escrow agent under mutually agreeably escrow instructions with
the cost thereof to be borne by the Buyers.

          D.  Brody agrees to not transfer or grant rights under the said OEM
agreements to others so long as Buyers' payments under paragraph 2.A. above are
current.

     4.  Closing. The closing of the sale transaction shall take place at 40
South Sixth East, Salt Lake City Utah, at 11:00 a.m. on December 31, 1999. At
the closing, Brody shall deliver to the Buyers a) good and sufficient
instruments of transfer and conveyance as, in the option of Buyers, shall be
effective to vest in the Buyers good and marketable title to the assets to be
sold as provided in this agreement, b) transfer and conveyance of Brody's
projects to Buyers and c) written approval by Pall Filtron, Inc. to the transfer
of Brody's OEM Agreement to Buyers. The Buyers shall deliver to Brody a
certified check or bank cashier check for $50,000 and execute and deliver to
Brody an undertaking wherein the

                                       3
<PAGE>   12

Buyers shall assume and agree to pay or discharge the Brody's liabilities and
obligations only to the extent provided in paragraph 5 below.

     5.   Representations and Warranties of Brody. Brody represents and
warrants as follows:

          A.   Brody's Authority. The execution and delivery of this agreement
to the Buyers and the sale of assets and granting of rights contemplated hereby
have been authorized by Brody's Board of Directors and Brody has delivered to
Buyers copies of the minutes of the meeting of its Board of Directors at which
such authority was granted, such copies having been certified by the Company's
secretary.

          B.   Title to Properties. Brody has good and marketable title to all
of the assets set forth on Exhibit "A" attached hereto, subject to no mortgage,
pledge, lien, incumbrance, security interest or charge whatsoever, except the
Pall equipment and the CAD software.

          C.   Pilot Expenses. All pilot expenses incurred prior to November 1,
1999, shall be reimbursed to Brody by Buyers. Pilot tests conducted are set
forth at Exhibit "C" attached hereto.

          D.   Reliance. The foregoing representations and warranties are made
by Brody with the knowledge and expectation that the Buyers are placing
complete reliance thereupon.

     6.   Buyers' Assumption of Liabilities. At the closing, the Buyers shall
execute and deliver to Brody an undertaking wherein

                                       4

<PAGE>   13
the Buyers shall assume and agree to pay or discharge the following:

          A.   The liability owed to Pall Filtron in the sum of $204,000 for
the Pall-Sep units and $2,700 for filter packs.

          B.   The debt owed to Avatech Solutions of Colorado, Inc. in the sum
of $4,899.36.

     7.   Security. Brody's security for the receipt of $150,000 to be paid
during the year 2000, see paragraph 2.A., shall be all or such part of the
assets set forth at Exhibit "A" sufficient to cover the unpaid amount.

     8.   Indemnification. Brody shall indemnify and hold harmless the Buyers
against and in respect of all liabilities and obligations of or claims against
all of the assets set forth in Exhibit "A" except the Pall equipment and the
CAD software.

     9.   Representations and Warranties of Buyers. Buyers represent and
warrant as follows:

          A.   Intent to Perform. The execution and delivery of this agreement
constitutes evidence of Buyers' intent to comply with and perform each of their
responsibilities and duties described herein.

          B.   Back Salaries. Buyers waive any claim against Brody for salaries
due them prior to the date this agreement bears.

     10.  Benefit. This agreement shall be binding upon an inure to the benefit
of the parties hereto and their legal representatives, successors and assigns,
and this agreement is assignable by the Buyers without the prior written
consent of Brody.

                                       5

<PAGE>   14
     IN WITNESS WHEREOF the parties have executed this agreement on the day and
year first hereinabove written.

                                    Brody Special Projects Company

Attest:

/s/ COLLETTE JACOBSON               by  /s/ JON LIDDIARD
----------------------------           ----------------------------------
Secretary                              Jon Liddiard

/s/  STEVE MADSEN                       /s/  JOHN D. EWING
----------------------------        -------------------------------------
Steve Madsen                        John D. Ewing

                                       6
<PAGE>   15
                             1-Pall Industrial Unit
                                2-Pall Lab Units
                              1-NLI series L unit
                              1-NLI series P unit
                             NLI membrane inventory
                        Wet Chemistry Kit, Meters Probes
                             Barrel Heating system
                               Desk Top Computer
                              Lap Top Computer (2)
                                 Color Printer
                                   Fax/Copier
                                  MS software
                                Portable Printer
                                 Palm Pilot (2)
                                Cell Phones (2)
                                  Office Setup
                                 Digital Camera
                                  CAD Software
                                  Misc. office

                                  EXHIBIT "A"
<PAGE>   16
<TABLE>
<CAPTION>
Company                       Location                      Application
-------                       --------                      -----------
<S>                      <C>                           <C>
BP/Amoco                 Salt Lake City, Ut.           Boiler Feedwater
Compaq                   Salt Lake City, Ut.           Wastewater
Nestle                   Springville, Ut.              Blancher water
American Linen           Portland, Or.                 Wastewater
Oil ReRefining           Portland, Or.                 Process Stream
Borg Warner              Ithaca, NY                    Wastewater
Ralston Purina           Denver, Co.                   Wastewater
Colorado Gold            Denver, Co.                   Wastewater
Keebler                  Denver, Co.                   Wastewater
Bluffdale City           Bluffdale, Ut.                Drinking water
G&K Linen                Salt Lake City, Ut.           Wastewater
Con Agra                 Fort Morgan, Co.              Wastewater
Daisy Brand              Denver, Co.                   Wastewater
Safeway                  Denver, Co.                   Wastewater
Tyson Foods              Nashville, Tn.                Wastewater
Cargil                   Denver, Co.                   Wastewater
Jerome Cheese            Jerome, Id.                   Wastewater
Valtron                  Salt Lake City, Ut.           Wastewater
Environmental Eng.       Salt Lake City, Ut.           Snowbird Project
Frito Lay                Salt Lake City, Ut.           Wastewater
Camp Dressor McKee       Los Angeles, Ca.              Drinking Water
Commonwealth             Salt Lake City. Ut.           Africa Project
Dairygold                Caldwell, Ut.                 Wastewater
Pepsi                    Cleveland, Oh.                Wastewater
DFA                      Fort Morgan, Co.              Wastewater
Redi Foods               Burley, Id.                   Wastewater
Leprino Foods            Denver, Co.                   Wastewater
RCAI                     Provo, Ut.                    Light Environmental
Lithium Inc.             Magna, Ut.                    Lithium Separation
</TABLE>

                                  EXHIBIT "B"

<PAGE>   17

<TABLE>
<CAPTION>
Company             Location                 Application
-------             --------                 -----------
<S>                 <C>                      <C>
Safeway             Denver, Co.              Wastewater

Dairygold           Caldwell, Id.            Wastewater

Pepsi               Cleveland, Oh.           Wastewater

DFA                 Fort Morgan, Co.         Wastewater

Lithium, Inc.       Magna, Ut.               Lithium Separation
</TABLE>

                                  EXHIBIT "C"

<PAGE>   18
                                PROMISSORY NOTE

                                                               December 30, 1999

     The undersigned, jointly and severally, promise to pay to the order of
Brody Special Projects at 40 South 600 East in Salt Lake City, Utah, or at
other places as the holder hereof may designate in writing, the sum of One
hundred fifty thousand Dollars ($150,000.00), payable as follows:

     $50,000 on or before March 30, 2000
     $50,000 on or before June 30, 2000
     $50,000 on or before September 30, 2000

together both before and after judgment on the unpaid balance thereof from date
until paid at the rate of ten per cent (10%) per annum.

     This note is secured by the personal property attached hereto as Exhibit
"A".

     Prepayment of this note with interest to date of payment may be made at
any time without penalty.

     If the holder deemed itself insecure or if default be made in payment of
the whole or any part of any installment at the time when or the place where
the same becomes due and payable as aforesaid, then the entire unpaid balance,
with interest as aforesaid, shall, at the election of the holder hereof and
without notice of said election at once become due and payable. In event of any
such default or acceleration, the undersigned, jointly and severally, agree to
pay to the holder hereof reasonable attorney's fees, legal expenses and lawful
collection costs in addition to all other sums due hereunder.

     Presentment, demand, protest, notice of discharge and extension of time
without notice are hereby waived and the undersigned consent to the release of
any security, or any part thereof, with or without substitution.

Address:                                     /s/  STEVE MADSEN
11718 South Brisbane Drive                   --------------------------
Sandy, Utah                                  Steve Madsen

Address:                                     /s/  JOHN EWING
7339 Shoreham Place                          --------------------------
Castlerock, Colorado                         John Ewing

<PAGE>   19
                                  BILL OF SALE
                 (With Warranties and Corporate Acknowledgment)

KNOW ALL MEN BY THESE PRESENTS:

     That Brody Special Projects Company, a Utah corporation, the SELLER, for
and in consideration of Ten DOLLARS ($10.00) in hand paid by Steve Madsen and
John D. Ewing, the BUYERS, the receipt whereof is hereby acknowledged, has
bargained, sold, assigned and transferred, and by these presents does bargain,
sell, assign and transfer unto said BUYERS, in an "as is" condition, that
certain personal property listed in Exhibit "A" attached hereto.

     And the SELLER, upon the consideration recited above, warrants ownership
of said property and the right to sell the same, subject to the indebtedness
existing thereupon in the amounts described to BUYERS by SELLER.

     IN WITNESS WHEREOF, SELLER, by and through its president, Jon Liddiard,
executes this document on this 13th day of December, 1999.

                                   Brody Special Projects Company

Attest:

by  /s/ [Signature Illegible]      by  /s/ Jon Liddiard
  ----------------------------       -----------------------------------
    Assistant Secretary                President

<PAGE>   20

STATE OF UTAH        )
                     )  ss
COUNTY OF SALT LAKE  )

     On the 13th day of December, 1999, personally appeared before me Jon
Liddiard and John Vigil who being duly sworn did say that Jon Liddiard is the
president of Brody Special Projects Company and that the foregoing bill of sale
was signed on behalf of said corporation by authority of a resolution of its
Board of Directors and said Jon Liddiard and John Vigil each duly acknowledged
to me that said corporation executed the same.

[SEAL]                                  /s/ DELMA O. SANDERS
                                        ---------------------------------------
                                        Notary Public
                                        Residing in Salt Lake County

                                       2
<PAGE>   21
                             1-Pall Industrial Unit

                                2-Pall Lab Units

                              1-NLI series L unit

                              1 NLI series P unit

                             NLI membrane inventory

                        Wet Chemistry Kit, Meters Probes

                             Barrel Heating system

                               Desk Top Computer

                              Lap Top Computer(2)

                                 Color Printer

                                   Fax/Copier

                                  MS software

                                Portable Printer

                                 Palm Pilot(2)

                                 Cell Phones(2)

                                  Office Setup

                                 Digital Camera

                                  CAD Software

                                  Misc. office

                                  EXHIBIT "A"
<PAGE>   22
              Equipment Not Paid For by BSPC but assumed by Buyer.

<TABLE>
<CAPTION>
Item                   Serial Number     Description
----                   -------------     -----------
      Amount
      ------
<S>                    <C>               <C>
1. Pall Unit           PS10-98           Test Unit, Pump, Tank          $ 30,000
2. Pall Unit           PF139             Test unit only                 $ 14,000
3. Pall Unit           VM1749910         Industrial Unit, no stack      $160,000
4. Auto Cad            2000              CAD Software                   $  4,900
5. NLI Membrane        na                Stack DS-5DL                   $  1,997
                                                                        --------
                                               Total                    $210,897
                                                                        --------
</TABLE><PAGE>   1
                                                                  EXHIBIT 10.1.3

                                  ROBERDS, INC.

                        AMENDED 1993 STOCK INCENTIVE PLAN

                                 April 30, 1999

1.  PURPOSE. The purpose of this 1993 Stock Incentive Plan (the "Plan") is to
advance the interests of Roberds, Inc. ("the Company") and its shareholders by
offering to those employees of the Company and its subsidiaries who will be
responsible for the long-term growth of the Company's earnings the opportunity
to acquire or increase their equity interests in the Company or to enjoy
performance-based stock and/or cash incentives, thereby achieving a greater
commonality of interest between shareholders and employees, enhancing the
Company's ability to retain and attract highly qualified employees and providing
an additional incentive to such employees to achieve the Company's long-term
business plans and objectives.

2.  AWARD OPPORTUNITIES. Awards under the Plan may be granted in the form of (a)
incentive stock options as provided in Section 412 of the Internal Revenue Code
of 1986, as amended (the "Code"), (b) nonqualified stock options, (c) shares of
common stock of the Company which are restricted and must be purchased by the
employee ("Restricted Stock"), (d) stock appreciation rights ("SARs"), (e)
limited stock appreciation rights ("LSARs"), (f) performance units, or (g) stock
units (all of which shall hereinafter be collectively referred to as "Awards").

         Incentive and non-qualified stock options shall hereinafter be referred
to individually as an "option" and collectively as "Options" in this Plan.

3.       ADMINISTRATION.

         (A)  COMMITTEE. The Plan shall be administered by the Company's Board
         of Directors (the "Board") or by a committee (the "Committee") of the
         Board, as determined from time to time by the Board. The Committee
         shall consist of no fewer than three directors of the Company who
         shall be appointed, from time to time, by the Board. At any time that
         the Company has a class of equity securities registered under Section
         12 of the Securities Exchange Act of 1934, as amended (the "Exchange
         Act"), only directors who, at the time of service, qualify as
         "non-employee directors" within the meaning of Rule 16b-3 or its
         successor under the Exchange Act shall be members of the Committee.
         All references in this Plan to the Board shall be understood to refer
         either to the full Board or to the Committee, to the extent
         administration of the Plan has been delegated by the Board to the
         Committee.

         (B)  AUTHORITY. The Board, or the Committee, to the extent the Board
         has delegated such authority to the Committee, shall have full and
         final authority with respect to the Plan (i) to interpret all
         provisions of the Plan consistent with law; (ii) to determine the
         employees who will receive Awards; (iii) to determine the frequency of
         grant of Awards; (iv) to determine the number and type of Options to
         be granted to each employee and the price at which they may be
         exercised; (v) to determine the number of shares of Restricted Stock
         to be granted to each employee and the purchase price of such shares;
         (vi) to specify the number of shares subject to each Option; (vii) to
         prescribe the form and terms of instruments evidencing any Award
         granted under the Plan; (viii) to determine when Options or SARs may
         be exercised or; (ix) to determine the term of the

                 ---------------------------------------------

                 ROBERDS, INC. 1999 ANNUAL REPORT ON FORM 10-K
                                 Page 64 of 128

<PAGE>   2

         restricted period and other conditions applicable to Restricted Stock;
         (x) to adopt, amend and rescind general and special rules and
         regulations for the Plan's administration; and (xi) to make all other
         determinations necessary or advisable for the administration of the
         Plan. The Board may, with the consent of the person or persons who has
         been granted an Award under the Plan, amend the instrument regarding
         such Award consistent with the provisions of the Plan.

         (C)  INDEMNIFICATION. No member of the Board or the Committee shall be
         liable for any action taken or determination made in good faith. The
         members of the Board and the Committee shall be indemnified by the
         Company for any acts or omissions in connection with the Plan to the
         full extent permitted by Ohio and Federal law.

4.  ELIGIBILITY. Participation in the Plan shall be determined by the Board and
shall be limited to employees of the Company and its subsidiaries.

5.  STOCK SUBJECT TO PLAN. Subject to adjustments as provided in Section 12(A)
hereof, the aggregate number of shares of common stock, without par value, of
the Company ("Shares") as to which Awards may be granted under the Plan shall
not exceed 3,000,000 Shares. Such Shares may be authorized but unissued Shares
or treasury Shares.

         The Board shall maintain records showing the cumulative total of all
Shares subject to Options outstanding, the number of Shares purchased as
Restricted Stock and their applicable restricted period under this Plan and the
number of Shares delivered in settlement of any other Award under the Plan.

         If an Option granted hereunder shall expire or terminate for any reason
without having been fully exercised or if any Shares of Restricted Stock granted
under this Plan is forfeited to the Company or if any Shares to be issued
pursuant to an Award are not issued for any reason, then the Shares covered by
the unexercised portion of such Option, the forfeited Restricted Stock Shares
and the Shares not issued upon settlement of an Award shall be available for the
purposes of this Plan. In addition, any Shares which are used as full or partial
payment by a Participant of the exercise price upon exercise of an Option shall
be available for Awards under the Plan as shall any Shares which are withheld in
payment of tax withholding obligations of a Participant (as provided in Section
12 (F)).

6.       OPTIONS.

         (A)  ALLOTMENT OF SHARES. The Board may, in its sole discretion and
         subject to the provisions of the Plan, grant to eligible employees at
         such times as it deems appropriate following adoption of the Plan by
         the Board, Options to purchase Shares, subject to approval of the Plan
         by the Company Shareholders.

                  Options may be allotted to participants in such amounts,
         subject to the limitations specified in this Section, as the Board, in
         its sole discretion, may from time to time determine.

         (B)  OPTION PRICE. The price per Share at which each non-qualified or
         incentive stock option granted under the Plan may be exercised shall
         not, as to any particular option, be less than one hundred percent
         (100%) of the fair market value of a Share at the time such option is
         granted. In the case of a participant who owns stock representing more
         than ten percent (10%) of the total combined voting power of all
         classes of stock of the Company or of its parent or any subsidiary (as
         determined under Section 425(d) of the Code) at the time the incentive
         stock Option is granted, the Option price shall not be less than 110%
         of the fair market value of the Shares at the time the incentive stock
         option is granted. The foregoing rule shall not apply to a nonqualified
         stock option.

                 ---------------------------------------------

                 ROBERDS, INC. 1999 ANNUAL REPORT ON FORM 10-K
                                 Page 65 of 128

<PAGE>   3

                  For purposes of Options granted hereunder, "fair market value"
         of a Share shall mean the average of the high and low prices reported
         in the consolidated reporting system (for exchange traded securities
         and last sale reported over-the-counter securities) or the average of
         the bid and asked prices (for other over-the-counter securities), on
         the date the Option is granted, or, if no such prices are available,
         the fair market value on such date of a Share as the Board shall
         determine. Unless another date is specified by the Board, the date on
         which the Board approves the granting of an Option shall be deemed the
         date on which the Option is granted.

         (C)  OPTION PERIOD. An Option granted under the Plan shall terminate,
         and the right of the participant (or the participant's estate, personal
         representative, or beneficiary) to purchase Shares upon exercise of the
         Option shall expire, on the date determined by the Board at the time
         the Option is granted (the "Termination Date"). No incentive stock
         option shall be exercisable more than ten (10) years after the date on
         which it was granted, and no nonqualified stock option shall be
         exercisable more than ten (10) years and one (1) day after the date on
         which it was granted. In the case of a participant who owns stock
         representing more than ten percent (10%) of the total combined voting
         power of all classes of the Company's stock, no incentive stock option
         shall be exercisable more than five (5) years after the date on which
         it is granted.

         (D)  EXERCISE OF OPTIONS.

                  (1)        By a Participant During Continuous Employment.

                             Unless otherwise determined by the Board at the
                             time of grant, an Option will be exercisable in
                             four (4) equal annual installments commencing on
                             the first anniversary of the date the Option was
                             granted and within the guidelines established by
                             Section 6(F) applicable to incentive stock options.
                             In its discretion, the Board may at any time
                             accelerate the exercisability of an Option. During
                             the lifetime of a participant to whom an Option is
                             granted, the Option may be exercised only by the
                             participant or by the participant's
                             attorney-in-fact or legal guardian as hereinafter
                             provided (unless such exercise would disqualify an
                             Option as an incentive stock option).

                             A participant who has been continuously employed by
                  the Company or a subsidiary since the date of Option grant is
                  eligible to exercise all Options which are then exercisable up
                  to the Termination Date of such Options and within the
                  guidelines established by Section (F). The Board will decide
                  in each case, subject to the limitations set forth in Section
                  422 of the Code applicable to incentive stock options, to what
                  extent leaves of absence for government or military service,
                  illness, temporary disability, or other reasons shall not for
                  this purpose be deemed interruptions of continuous employment.

                  (2)        By a Former Employee.

                             A participant who terminates employment with the
                  Company and its subsidiaries for reasons other than
                  retirement, permanent and total disability or death, must
                  exercise all Options previously awarded on or prior to the
                  date of his termination of employment (but no later than the
                  Termination Date of the Options). The exercise of such Options
                  must be within the guidelines established by Section 6(F). An
                  Option may be exercised on or prior to the date of such
                  termination of employment only for the number of Shares for
                  which it could have been exercised at the time the participant
                  terminated employment with the Company and its subsidiaries.
                  The failure to exercise all Options by a participant on or
                  prior to the date of his termination of employment will result
                  in the forfeiture of all unexercised Options.

                 ---------------------------------------------

                 ROBERDS, INC. 1999 ANNUAL REPORT ON FORM 10-K
                                 Page 66 of 128

<PAGE>   4

                  (3)      In Case of Retirement.

                           Upon retirement (as hereafter defined), the
                  non-qualified stock options of a participant must be exercised
                  within three (3) years of such retirement and the incentive
                  stock Options must be exercised within three (3) months of
                  such retirement and within the guidelines established by
                  Section 6(F) (but no later than the Termination Date of such
                  Option). For purposes of the Plan, "retirement" shall mean
                  that the participant on the date of termination of employment
                  has attained age 60 with 10 years of continuous employment
                  with the Company and its subsidiaries. If the participant
                  should die within the three (3) year or three (3) month period
                  following retirement, as applicable, the provisions contained
                  in Section 6(D), Paragraph 5 hereof shall apply. The
                  exercisability of all Options granted to such a Participant
                  shall be accelerated and the Options shall become immediately
                  exercisable without regard to the number of Shares for which
                  it otherwise could have been exercised on the date of
                  retirement.

                  (4)      In Case of Permanent and Total Disability.

                           If a participant who was granted an Option terminates
                  employment with the Company and its subsidiaries because of
                  permanent and total disability and is eligible for benefits
                  under the Company disability plan, or successor plan, upon
                  termination of employment, all non-qualified stock Options
                  previously awarded must be exercised within three (3) years of
                  such termination of employment and all incentive stock Options
                  must be exercised within one (1) year of such termination of
                  employment subject to the guidelines established by Section 6
                  (F) (but no later than the Termination Date of such Option).
                  If the participant should die during such three (3) year or
                  one (1) year period, as applicable, the provisions contained
                  in Section 6(D), Paragraph 5 hereof shall apply. The
                  exercisability of all Options granted to such a Participant
                  shall be accelerated and the Options shall become immediately
                  exercisable without regard to the number of Shares for which
                  it could otherwise have been exercised on the date of
                  termination of employment.

                  (5)      In Case of Death.

                           If a participant who was granted an Option dies while
                  employed by the Company or a subsidiary, or during the three
                  (3) year or three (3) month period following retirement or
                  during the three (3) year or one (1) year period following
                  termination of employment due to permanent and total
                  disability, as applicable, all Options previously awarded must
                  be exercised no later than the Termination Date of such Option
                  by the participant's estate, or by a person who acquired the
                  right to exercise the Option by bequest or inheritance and
                  within the guidelines established by Section 6(F). The
                  exercisability of all Options granted to such a Participant
                  shall be accelerated and the Options shall become immediately
                  exercisable without regard to the number of Shares for which
                  it otherwise could have been exercised on the date of death.

                  (6)      Termination of Options.

                           An Option granted under the Plan shall be considered
                  terminated in whole or in part, to the extent that, in
                  accordance with the provisions of the Plan, it can no longer
                  be exercised for Shares originally subject to the Option.

         (E)      MANNER OF EXERCISE AND PAYMENT.

                  (1)      Exercise

                           Each option granted under this Plan shall be deemed
                  exercised to the extent that the participant shall deliver to
                  the Company written notice of the number of full Shares with
                  respect to which

                 ---------------------------------------------

                 ROBERDS, INC. 1999 ANNUAL REPORT ON FORM 10-K
                                 Page 67 of 128

<PAGE>   5

                  the Option is being exercised. The participant shall at the
                  same time tender to the Company payment in full for the
                  Shares for which the Option is exercised, which may be in
                  cash or, subject to Section 6(E), Paragraph 2 hereof, in
                  previously issued Shares or partly in cash and partly in
                  Shares, and shall comply with such other reasonable
                  requirements as the Board may establish, pursuant to Section
                  12(D) of the Plan. These provisions shall not preclude
                  exercise of an Option, or payment for Shares, by any other
                  proper legal method specifically approved by the Board.

                           No person, estate or other entity shall have any of
                  the rights of a shareholder with reference to Shares subject
                  to an Option until a certificate for the Shares has been
                  delivered.

                           An Option granted under this Plan may be exercised
                  for any lesser number of whole Shares than the full amount for
                  which it could then be exercised, provided, however, that the
                  Board may require, in the agreement evidencing an Option, any
                  partial exercise to be with respect to a specified minimum
                  number of Shares. Such a partial exercise of an Option shall
                  not affect the right to exercise the Option from time to time
                  in accordance with the Plan for the remaining Shares subject
                  to the Option.

                  (2)      Payment in Shares

                           The value of Shares delivered for payment of the
                  exercise price shall be the fair market value of the Shares
                  determined as provided in Section 6(B) on the date the Option
                  is exercised. If certificates representing Shares are used to
                  pay all or part of the exercise price of an Option, separate
                  certificates shall be delivered to the Company representing
                  the number of Shares so used, and an additional certificate or
                  certificates shall be delivered representing the additional
                  Shares to which the Option holder is entitled as a result of
                  exercise of the Option. Notwithstanding the foregoing and the
                  provisions of Section 6(E), paragraph (1), the Board, in its
                  sole discretion, may refuse to accept Shares delivered for
                  payment of the exercise price, in which event any certificates
                  representing Shares that were actually received by the Company
                  with the written notice of exercise shall be returned to the
                  person exercising such Option together with notice by the
                  Company of the refusal of the Company to accept such Shares.

                           In the event Shares are delivered for payment of the
                  option price as herein provided, then, at the discretion of
                  the Board, the participant may be granted an Option to
                  purchase a number of Shares equal to the number of Shares
                  delivered in payment of the exercise price, with an exercise
                  price equal to the current fair market value of such Shares,
                  and with a term of such Option extending to the expiration
                  date of the Option which was exercised with respect to which
                  Shares were delivered as payment of all or a portion of the
                  exercise price.

                  (3)      Loans

                           The Company may make loans to such holders of Options
                  as the Board, in its discretion, may determine (including a
                  holder who is a director or officer of the Company) in
                  connection with the exercise of Options granted under the
                  Plan; provided, however, that the Board shall not authorize
                  the making of any loan where the possession of such discretion
                  or the making of such a loan would result in a "modification"
                  (as defined in Section 425 of the Code) of any incentive stock
                  option. Such loans shall be subject to the following terms and
                  conditions and such other terms and conditions as the Board
                  shall determine at the time the loan is made which are not
                  inconsistent with the Plan. Such loans shall bear interest at
                  such rates as the Board shall determine from time to time,
                  which rates shall be the then current market rates. In no
                  event may any such loan exceed the fair market value, at the
                  date of exercise, of the Shares covered by the Option, or
                  portion thereof, exercised by the holder. No loan shall have
                  an initial term exceeding five years, but any such loan may be
                  renewable at the discretion of the Board. At the time a loan
                  is made, Shares having a fair market value at least equal to

                 ---------------------------------------------

                 ROBERDS, INC. 1999 ANNUAL REPORT ON FORM 10-K
                                 Page 68 of 128

<PAGE>   6

                  the principal amount of the loan shall be pledged by the
                  holder to the Company as security for payment of the unpaid
                  balance of the loan. Every loan shall comply with all
                  applicable laws, regulations and rules of the Board of
                  Governors of the Federal Reserve System and any other
                  governmental agency having jurisdiction.

                  (4)      Award of Cash or Shares in Lieu of Exercise

                           The Board may elect, in lieu of accepting payment of
                  the option price and delivering any or all Shares as to which
                  an Option has been exercised, to pay the holder of such Option
                  an amount in cash or Shares, or a combination of cash and
                  Shares, equal to the amount by which the fair market value
                  (determined as provided in Section 6(B)) on the date of
                  exercise of the Shares as to which such Option has been
                  exercised exceeds the option price that would otherwise be
                  payable by the holder of such Option for such Shares. The
                  Board may also permit a Participant to simultaneously exercise
                  an Option and sell the Shares acquired upon exercise, pursuant
                  to a brokerage arrangement, approved in advance by the Board,
                  and use the proceeds from such a sale as payment of the option
                  price of such Shares.

                  (5)      Persons Subject to Section 16 of the Exchange Act

                           Participants who are subject to Section 16 of the
                  Exchange Act are hereby advised that reliance on Rule 16b-3
                  may require that any equity security of the Company acquired
                  upon exercise of an option by such person be held at least
                  until the date six months after the date of grant of the
                  option.

         (F)  LIMITATIONS ON EXERCISE. In the case of Options intended to be
         incentive stock options, the aggregate fair market value, determined as
         of the date of grant, of the Shares as to which such Options are
         exercisable for the first time by a participant shall be limited to
         $100,000 per calendar year.

                  Non-qualified stock options may be exercised by a participant
         without regard to the foregoing limitation.

7.       STOCK APPRECIATION RIGHTS.

         (A)  GRANTING OF STOCK APPRECIATION RIGHTS. The Board may, in its sole
         discretion and subject to the provisions of the Plan, grant to eligible
         employees at such times as it deems appropriate following adoption of
         the Plan by the Board, Stock Appreciation Rights, subject to approval
         of the Plan by the Company Shareholders.

         (B)  STOCK APPRECIATION RIGHTS. A Stock Appreciation Right is a right
         to receive the following amount of appreciation -- an amount equal to
         the excess of the fair market value of a Share on the exercise date
         over the fair market value of a Share on the date of grant of the Stock
         Appreciation Right, multiplied by the number of Shares with respect to
         which the Stock Appreciation Right shall have been exercised.

         (C)  TERMS OF GRANTS. A Stock Appreciation Right may be granted in
         tandem with, in addition to or completely independent of an Option or
         any other Award under the Plan.

         (D)  MANNER OF EXERCISE. A Stock Appreciation Right may be exercised by
         a Participant in accordance with procedures established by the Board,
         and a Stock Appreciation Right shall be exercisable as provided by the
         Board on the date of grant. The Board may also provide that a Stock
         Appreciation Right shall be automatically exercised on one or more
         specified dates. Notwithstanding the foregoing, all Stock Appreciation
         Rights shall be automatically exercised as of the end of the month in
         which the participant's employment terminates due to death, permanent
         and total disability or retirement.

                 ---------------------------------------------

                 ROBERDS, INC. 1999 ANNUAL REPORT ON FORM 10-K
                                 Page 69 of 128

<PAGE>   7

         (E)  FORM OF PAYMENT. Payment upon exercise of a Stock Appreciation
         Right may be made in cash or in Shares, or any combination thereof, as
         the Board shall determine; provided, however, that any Stock
         Appreciation Right exercised upon or subsequent to the occurrence of a
         Change of Control (as defined in Section 12(B)) shall be paid in cash.

         (F)  PERSONS SUBJECT TO SECTION 16 OF THE EXCHANGE ACT. Participants
         who are subject to Section 16 of the Exchange Act are hereby advised
         that, unless the date of exercise of a Stock Appreciation Right is
         automatic or fixed in advance under this Plan and is outside the
         control of the Participant, reliance on Rule 16b-3 with respect to cash
         settlements of Stock Appreciation Rights requires that (1) the Company
         on a regular basis publicly releases for publication quarterly and
         annual summary statements of sales and earnings and (2) exercises of
         Stock Appreciation Rights resulting in full or partial cash settlements
         must occur only during the period beginning with the third business day
         and ending on the twelfth business day following release of such
         information.

8.       LIMITED STOCK APPRECIATION RIGHTS

         (A)  GRANTING OF LIMITED STOCK APPRECIATION RIGHTS. The Board may, in
         its sole discretion and subject to the provisions of the Plan, grant to
         officers at such times as it deems appropriate following adoption of
         the Plan by the Board, subject to approval of the Plan by the Company
         Shareholders, rights to receive cash to Officers who are Option holders
         equal to the fair market value of a Share of stock on the exercise date
         over the exercise price of the related option ("Limited Stock
         Appreciation Rights") which rights, however, are conditioned upon and
         may be exercised only if each of the following three conditions are
         satisfied:

                  (1)      The Company has equity securities registered under
                           the Exchange Act;

                  (2)      The option holder is an Officer subject to Section
                           16(b) of the Exchange Act; and

                  (3)      There has been an event of Change of Control as
                           defined in Section 12(B).

                  Such Limited Stock Appreciation Rights shall be evidenced by
         agreements in such form and containing such additional terms not
         inconsistent with the Plan as the Board shall from time to time
         approve.

         (B)  TERMS OF GRANTS. Each Limited Stock Appreciation Right shall
         relate to a specific Option under the Plan. The number of Limited
         Stock Appreciation Rights granted to a Participant shall be no more
         than the number of Shares that the Participant is entitled to receive
         pursuant to the related Option. The number of Limited Stock
         Appreciation Rights held by a Participant shall be reduced by:

                           (i)  the number of Limited Stock Appreciation Rights
                           exercised for cash under the Stock Appreciation
                           Rights agreement; and

                           (ii)  the number of Shares of stock purchased by such
                           participant pursuant to the related Option.

         (C)  MANNER OF EXERCISE. In no event shall a Limited Stock Appreciation
         Right be exercisable within the first six (6) months after the date of
         the grant. If an event of Change of Control occurs and is outside the
         control of the Participant, all Limited Stock Appreciation Rights held
         by such Participant (other than any Limited Stock Appreciation Rights
         granted within the prior six months or in response to the event of
         Change of Control) shall be automatically exercised as of the date of
         the Change of Control without any election by the Participant.
         Determination of whether the Change of Control is within the control of
         the Participant shall be

                 ---------------------------------------------

                 ROBERDS, INC. 1999 ANNUAL REPORT ON FORM 10-K
                                 Page 70 of 128

<PAGE>   8

         made based upon the interpretations by the Securities and Exchange
         Commission or its staff as then available and in effect. If the event
         of Change of Control is outside the control of the Participant, then
         the Limited Stock Appreciation Rights held by such Participant shall
         become immediately exercisable but shall not be automatically
         exercised. A Participant described in the immediately preceding
         sentence may exercise Limited Stock Appreciation Rights by giving
         written notice of such exercise to the Company, and the date upon
         which such notice is received by the Company shall be the exercise
         date for the Limited Stock Appreciation Right. See Section 7 (F). All
         Limited Stock Appreciation Rights shall be automatically exercised as
         of the end of the month in which the Participant's employment
         terminates due to death, permanent and total disability or retirement.

         (D)  APPRECIATION AVAILABLE. Each Limited Stock Appreciation Right
         shall entitle a Participant to the following amount of appreciation --
         the excess of the fair market value of a Share on the exercise date
         over the option price of the related Option. The total appreciation
         available to a Participant from any exercise of Limited Stock
         Appreciation Rights shall be equal to the number of Limited Stock
         Appreciation Rights being exercised, multiplied by the amount of
         appreciation per Right determined under the preceding sentence.

         (E)  PAYMENT OF APPRECIATION. The total appreciation available to the
         Participant from an exercise of Limited Stock Appreciation Rights shall
         be paid to the Participant in cash. The amount thereof shall be the
         amount of appreciation determined under Paragraph D above. Payment
         shall be made within 10 days of the exercise of the Limited Stock
         Appreciation Rights.

         (F)  LIMITATIONS UNDER EXERCISE OF LIMITED STOCK APPRECIATION RIGHTS. A
         Participant may exercise a Limited Stock Appreciation Right for cash,
         only after a Change of Control and only in conjunction with the Option
         to which the Limited Stock Appreciation Right relates. Limited Stock
         Appreciation Rights may be exercised only by such persons as may
         exercise the related Options under the Plan. Adjustment to the number
         of Shares in the Plan and the price per Share pursuant to Section 12
         (A) shall also be made in a similar manner to any Limited Stock
         Appreciation Rights held by each Participant.

9.       RESTRICTED STOCK.

         (A)  GRANTING OF RESTRICTED STOCK. The Board may, in its sole
         discretion and subject to the provisions of the Plan, grant to
         eligible employees at such times as it deems appropriate following
         adoption of the Plan by the Board, the right to purchase Shares of
         Restricted Stock, subject to approval of the Plan by the Company
         Shareholders.

         (B)  RESTRICTED STOCK PRICE. The price at which Restricted Stock may be
         purchased by a Participant under the Plan shall be determined by the
         Board and shall not be less than the fair market value of a Share. Fair
         market value shall be determined as provided in Section 6(B) hereof.
         The purchase price per Share as to any particular Restricted Stock
         grant shall also be known as the "Initial Price Per Share."

         (C)  TERMS OF RESTRICTED STOCK. At the time of a Restricted Stock
         grant, the Board shall establish a period of time (the "Restricted
         Period") applicable to the Restricted Stock, which shall not be more
         than ten (10) years from the date of grant. Each grant of Restricted
         Stock may have a different Restricted Period. The Board may in its sole
         discretion, at the time of the grant of Restricted Stock is made,
         prescribe conditions for the incremental lapse of restrictions during
         the Restricted Period and for the lapse of termination of restrictions
         upon the satisfaction of other conditions with respect to all or any
         portion of the Restricted Stock. The Board may also, in its sole
         discretion, at any time shorten or terminate the Restricted Period or
         waive any conditions for the lapse or termination of restrictions with
         respect to all or any portion of the Shares of Restricted Stock.

                  Unless another date is specified, the date on which the Board
         approves the grant of Restricted Stock shall be deemed the date on
         which the Restricted Stock is granted.

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<PAGE>   9

                  In order for a Participant to exercise his right to purchase
         Shares of Restricted Stock under a grant (unless that payment date is
         further extended by the Board), within thirty (30) days after the date
         of grant, such Participant shall execute, retroactive to the date of
         such grant, an agreement reflecting the number of Shares he is
         purchasing and the conditions imposed upon the purchase of such Shares
         as determined by the Board.

                  As payment for the purchase price of the Restricted Stock, the
         Participant may tender to the Company payment in cash, in previously
         issued Shares (taken at their fair market value on the date the
         Restricted Stock is granted determined as provided in Section 6(B)) or
         partly in cash and partly in previously issued Shares and shall comply
         with such other reasonable requirements as the Board may establish,
         pursuant to this Section 9(C). Notwithstanding the foregoing, the
         Board, in its sole discretion, may refuse to accept Shares in payment
         of the purchase price.

                  A stock certificate representing the number of Shares of
         Restricted Stock granted to and purchased by a Participant shall be
         registered in the Participant's name but shall be held in custody by
         the Company for the Participant's account. The Participant shall have
         the rights and privileges of a shareholder as to such Shares of
         Restricted Stock, including the right to vote such Shares, except that
         (i) the Participant shall not be entitled to delivery of the
         certificate until the expiration or termination of the Restricted
         Period and the satisfaction of any other conditions prescribed by the
         Board, (ii) none of the Shares may be sold, transferred, assigned,
         pledged, or otherwise encumbered or disposed of during the Restricted
         Period and until the satisfaction of any other conditions prescribed by
         the Board, and (iii) all of the Restricted Stock shall be forfeited and
         all rights of the Participant to such Restricted Stock Shares shall
         terminate without further obligation on the part of the Company (except
         for the obligation of the Company to purchase the Restricted Stock from
         the Participant at the Initial Price Per Share) in the event the
         Participant has not remained in the continuous employment of the
         Company or a subsidiary until the expiration or termination of the
         Restricted Period and the satisfaction of any other conditions
         prescribed by the Board applicable to such Restricted Stock. The Board
         shall decide in each case to what extent leaves of absence for
         government or military service, illness, temporary disability or other
         reasons shall not, for this purpose, be deemed interruption of
         continuous employment. If the Participant's continuous employment
         should be terminated because of death, permanent and total disability
         or retirement, the provisions contained in Section 9(D) shall apply.

                  At the discretion of the Board, cash and stock dividends may
         be either currently paid or withheld by the Company for the
         Participant's account, and interest may be paid on the amount of cash
         dividends withheld at a rate and subject to such terms as determined by
         the Board.

                  Each Certificate evidencing Shares of Restricted Stock shall
         be inscribed with a legend substantially as follows:

                  "The Shares of common stock of Roberds, Inc. evidenced by this
                  certificate are subject to the terms and restrictions of the
                  Roberds, Inc. 1993 Stock Incentive Plan. Such Shares are
                  subject to forfeiture or cancellation under the terms of said
                  Plan and shall not be sold, transferred, assigned, pledged,
                  encumbered or otherwise alienated or hypothecated except
                  pursuant to the provisions of said Plan, a copy of which is
                  available from Roberds, Inc. upon request."

                  Upon the expiration or termination of the Restricted Period
         and the satisfaction of any other conditions prescribed by the Board or
         at such earlier time as provided for in Section 9(D), the restrictions
         applicable to the Restricted Stock Shares shall lapse and a stock
         certificate for the number of Restricted Stock Shares with respect to
         which the restrictions have lapsed shall be delivered, free of all such
         restrictions, except any that may be imposed by law, to the Participant
         or the Participant's beneficiary or estate, as the case may be. The
         Company shall not be required to deliver any fractional Shares but will
         pay, in lieu thereof, the fair market value (determined in accordance
         with Section 6(B) as of the date the restrictions lapse) of such
         fractional Shares to the Participant or the Participant's beneficiary
         or estate, as the case may be.

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<PAGE>   10

         (D)  TERMINATION OF EMPLOYMENT. All rights to the Restricted Stock
         Shares shall be forfeited if the Participant terminates employment
         with the Company and its subsidiaries for any reason except for death,
         permanent and total disability or retirement prior to the expiration
         of the restrictions on such Shares and such forfeited Shares shall be
         purchased by the Company at the Initial Price Per Share within a
         reasonable time period established by the Board. Any attempt to
         dispose of any such Shares in contravention of the foregoing
         restrictions shall be null and void and without effect.

                  If a Participant who has been in the continuous employ of the
         Company or a subsidiary since the date on which the Restricted Stock
         was granted dies, becomes permanently and totally disabled or retires
         while in such employment and prior to the lapse of the restrictions on
         the Restricted Stock, all such restrictions shall lapse and cease to be
         effective as of the end of the month in which the Participant's
         employment terminates due to death, permanent and total disability or
         retirement.

         (E)  PERSONS SUBJECT TO SECTION 16 OF THE EXCHANGE ACT. Participants
         who are subject to Section 16 of the Exchange Act are hereby advised
         that reliance on Rule 16b-3 may require that any equity security of
         the Company acquired upon exercise of Restricted Stock by such person
         be held at least until the date six months after the date of grant of
         the Restricted Stock.

10.      PERFORMANCE UNITS.

         (A)  GRANTING PERFORMANCE UNITS. The Board may, in its sole discretion
         and subject to the provisions of the Plan, grant to eligible employees
         at such times as it deems appropriate following adoption of the Plan by
         the Board, Performance Units, subject to approval of the Plan by the
         Company Shareholders. Each Performance Unit shall represent the right
         of a Participant to receive an amount equal to a Payment Value, which
         Payment Value shall be determined by the Board and shall be based upon
         the performance of the Participant, the Company, or a division of the
         Company over a Performance Period or such other measure of performance
         as may be determined by the Board. A Participant to whom an award of
         Performance Units has been made shall not be required to provide any
         consideration for a Performance Unit other than the rendering of
         services or the payment of any minimum amount required by applicable
         law, unless otherwise determined by the Board. Each Performance Unit
         granted under the Plan shall be evidenced by a written Performance Unit
         Agreement between the Company and the Participant. The Performance Unit
         Agreement shall be in such form and shall contain such terms and
         conditions as the Board shall determine.

         (B)  TERMS OF GRANTS. The Performance Period for each Performance Unit
         granted under the Plan shall be of such duration as the Board shall
         establish at the time of the award. The performance criteria for each
         Performance Unit awarded under the Plan shall be determined by the
         Board. More than one award of Performance Units may be granted to any
         individual Participant under the Plan, and the terms and conditions of
         Performance Units, such as the Performance Periods and performance
         criteria, may differ. If during a Performance Period there should
         occur, in the opinion of the Board, significant changes in economic
         conditions or in the nature of the operations of the Company which the
         Board did not foresee in establishing the performance criteria for such
         Performance Period, and which in the Board's sole judgment, have, or
         are expected to have, a substantial effect on the Participant's or the
         Company's ability to meet the performance criteria, the Board may
         revise the performance criteria formerly determined by it in such a
         manner as the Board, in its sole judgment, may deem appropriate.

         (C)  TERMINATION OF EMPLOYMENT. A grant of Performance Units to a
         Participant shall be forfeited if the Participant terminates employment
         with the Company and its subsidiaries, during the Performance Period,
         except for death, permanent and total disability or retirement prior to
         the expiration of the Performance Period.

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<PAGE>   11

                  If a Participant who has been in the continuous employ of the
         Company or a subsidiary since the date on which the Performance Unit
         was granted dies, becomes permanently and totally disabled or retires
         while in such employment and prior to the expiration of the Performance
         Period, all Performance Units shall be deemed to be earned in such
         amount as of the end of the month in which the Participant's employment
         terminates due to death, permanent and total disability or retirement
         as provided in the Performance Unit Agreement at the time of grant.

         (D)  MANNER OF SETTLEMENT. The Payment Value of a Performance Unit
         shall be paid to a Participant in cash, in Shares, or in a combination
         of cash and Shares as determined by the Board in its sole discretion.
         The Payment Value of a Performance Unit shall be paid to the
         Participant on such date following the conclusion of the Performance
         Period as the Board shall designate at the time of grant.

         (E)  All other terms and conditions of a grant of Performance Units
         shall be determined by the Board.

         (F)  PERSONS SUBJECT TO SECTION 16 OF THE EXCHANGE ACT. Participants
         who are subject to Section 16 of the Exchange Act are hereby advised
         that the Staff of the Securities and Exchange Commission has taken the
         position that rights similar to Performance Units may be considered
         Stock Appreciation Rights for purposes of Section 16, depending upon
         the performance criteria for the particular Performance Units. See
         Section 7(F).

11.      STOCK UNITS

         (A)  GRANTING STOCK UNITS. The Board may, in its sole discretion and
         subject to the provisions of the Plan, grant to eligible employees at
         such times as it deems appropriate following adoption of the Plan by
         the Board, either alone or in addition to other Awards made under the
         Plan, units that are valued in whole or in part by reference to or
         otherwise based on Shares ("Stock Units"), subject to the approval of
         the Plan by the Company Shareholders. Each Stock Unit granted under
         this Plan shall be evidenced by a written Stock Unit Agreement between
         the Company and the Participant. The Stock Unit Agreement shall be in
         such form and shall contain such terms and conditions as the Board may
         determine.

         (B)  TERMS OF GRANTS. The Board shall determine the Participants to
         whom Stock Units are to be granted, the times at which such awards are
         to be made, the number of Shares to be granted pursuant to such awards
         and all other terms and conditions regarding such awards. More than
         one Stock Unit Award may be granted to an individual Participant under
         the Plan, and the terms and conditions of Stock Unit Awards may
         differ. A Participant to whom an award of Shares has been made
         pursuant to a Stock Unit Award shall not be required to provide any
         consideration for the Shares, other than the rendering of services or
         the payment of any minimum amount required by applicable law, unless
         otherwise determined by the Board.

         (C)  TERMINATION OF EMPLOYMENT. All rights to Stock Units shall be
         forfeited if the Participant terminates employment with the Company and
         its subsidiaries for any reason except for death, permanent and total
         disability or retirement prior to the expiration of the applicable
         measurement period for such Stock Units.

                  If a Participant who has been in the continuous employ of the
         Company or a subsidiary since the date on which the Stock Unit was
         granted dies, becomes permanently and totally disabled or retires while
         in such employment and prior to the expiration of the measurement
         period for such Stock Unit, the Stock Unit shall be deemed to be earned
         in such amount as of the end of the month in which the participant's
         employment terminates due to death, permanent and total disability or
         retirement as provided in the Stock Unit Agreement at the time of
         grant.

         (D)  MANNER OF SETTLEMENT. The amount due a Participant for Stock Units
         which were granted may be paid in case in Shares, or in a combination
         of cash and Shares, as determined by the Board in its sole discretion.

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<PAGE>   12

         (E)  All other terms and conditions of a grant of Stock Units shall be
         determined by the Board.

         (F)  PERSONS SUBJECT TO SECTION 16 OF THE EXCHANGE ACT. Participants
         who are subject to Section 16 of the Exchange Act are hereby advised
         that the Staff of the Securities and Exchange Commission has taken the
         position that rights similar to Stock Units may be considered Stock
         Appreciation Rights for purposes of Section 16, depending upon the
         performance criteria for the particular Stock Unit. See Section 7(F).

12.      OTHER PROVISIONS

         (A)  ADJUSTMENT OF SHARES. In the event that the outstanding Shares are
         changed into or exchanged for a different number or kind of shares of
         the Company or other securities of the Company by reason of merger,
         consolidation, recapitalization, reclassification, stock split-up,
         stock dividend or combination of Shares, or issuance or exercise of
         warrants or rights, the Board shall make an appropriate and equitable
         adjustment in the number and kind of Shares subject to outstanding
         Awards, or portions thereof then unexercised, and the number and kind
         of Shares subject to the Plan to the end that after such event the
         Shares subject to the Plan and the Participant's right to a
         proportionate interest in the Company shall be maintained as before the
         occurrence of such event. Such adjustment in an outstanding Award shall
         be made without change in the total price applicable to the Award or
         the unexercised portion of any Award (except for any change in the
         total price resulting from rounding off Share quantities or prices) and
         with any necessary corresponding adjustment in option price per Share.
         Any such adjustment made by the Board shall be final and binding upon
         all Participants, the Company and all other interested persons. Any
         adjustment of an incentive stock option under this paragraph shall be
         made in such manner so as not to constitute a "modification" within the
         meaning of Section 425(h)(3) of the Code. The Board, in its sole
         discretion may at any time make or provide for such adjustments to the
         Plan or any Award granted thereunder as it shall deem appropriate to
         prevent the reduction or enlargement of rights, including adjustments
         in the event of changes in the outstanding common stock by reason of
         mergers, consolidations, combinations, exchanges of Shares,
         separations, reorganizations, liquidations, issuance or exercise of
         warrants or rights and the like in which the Company is not the sole
         surviving successor to the assets or business of the Company
         immediately prior thereto. In the event of any offer to holders of
         common stock generally relating to the acquisition of their Shares, the
         Board may make such adjustments as it deems equitable in respect of
         outstanding Awards. Any such determination of the Board shall be
         conclusive.

         (B)  CHANGE OF CONTROL. In the event the Company experiences a Change
         of Control (as hereafter defined), all Options shall become
         exercisable immediately prior to the Change of Control, provided that
         any portion of such Option which is an incentive stock option shall be
         exercisable up to the maximum amount allowed by Section 6(F)
         applicable to incentive stock options and the balance shall become a
         non-qualified stock option, all Restricted Stock restrictions shall
         lapse immediately prior to such event, all Limited Stock Appreciation
         Rights and Stock Appreciation Rights shall become exercisable
         immediately prior to the Change of Control and all grants of
         Performance Units and Stock Units shall be deemed to have been fully
         earned immediately prior to the Change of Control, subject to the
         limitation that any Award which has been outstanding less than six (6)
         months on the date of Change of Control shall not be afforded such
         treatment.

                  For purposes of these provisions, the term "Persons" shall
         mean any individual, firm, corporation, partnership, joint venture,
         association, trust, or other entity and any "Affiliate" or "Associate"
         thereof (as such terms are defined in Rule 12b-2 promulgated under the
         1934 Act).

                  For purposes of this Plan, the term "Change of Control" of the
         Company shall mean and shall be deemed to have occurred if:

                  (a)  The "acquisition" after the date hereof by any "Person"
                  (as such term is defined below) of "Beneficial Ownership"
                  (within the meaning of Rule 13d-3 promulgated under the
                  Securities Exchange Act of 1934, as amended (the "1934 Act"),
                  as in effect on the date hereof) of any securities

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<PAGE>   13

                  of the Company which generally entitles the holder thereof to
                  vote generally for the election of directors of the Company
                  (the "Voting Securities") which, when added to the Voting
                  Securities then "Beneficially Owned" by such person, would
                  result in such Person "Beneficially Owning" twenty percent
                  (20%) or more of the combined voting power of the Company's
                  then outstanding Voting Securities; provided. however, that
                  for purposes of this paragraph (a), a Person shall not be
                  deemed to have made an acquisition of Voting Securities if
                  such Person: (i) acquires Voting Securities as a result of a
                  stock split, stock dividend or other corporate restructuring
                  in which all shareholders of the class of such Voting
                  Securities are treated on a pro rata basis; (ii) is generally
                  engaged in the business of underwriting securities and
                  acquires the Voting Securities ("Underwriting Securities")
                  (x) pursuant to the terms of an underwriting agreement (an
                  "Underwriting Agreement") to which the Company and such
                  underwriter are parties and which Underwriting Agreement is
                  on terms customarily used by that underwriter for primary or
                  secondary public offerings of equity securities or (y)
                  pursuant to stabilizing transactions to facilitate a
                  distribution contemplated by an Underwriting Agreement in
                  accordance with Rule 10b-7 promulgated under the 1934 Act; or
                  (z) to cover over allotments created in connection with a
                  distribution of Voting Securities pursuant to an Underwriting
                  Agreement; (iii) acquires the Voting Securities directly from
                  the Company; (iv) becomes the Beneficial Owner of more than
                  the permitted percentage of Voting Securities solely as a
                  result of the acquisition of Voting Securities by the Company
                  which, by reducing the number of Voting Securities
                  outstanding, increases the proportional number of Shares
                  Beneficially Owned by such Person; (v) is the Company or any
                  corporation or other Person of which a majority of its voting
                  power or its equity securities or equity interest is owned
                  directly or indirectly by the Company (a "Subsidiary") or
                  (vi) acquires Voting Securities in connection with a
                  "Non-Control Transaction" (as defined in paragraph (c)
                  below); or

                  (b)  The individuals who, as of July 31, 1993, are members of
                  the Board of Directors of the Company (the "Incumbent Board"),
                  cease for any reason (other than a voluntary resignation by
                  any such member) to constitute at least two-thirds of the
                  Board of Directors of the Company; PROVIDED, HOWEVER, that if
                  either the election of any new director or the nomination for
                  election of any new director by the Company's shareholders was
                  approved by a vote of at least two-thirds of the Incumbent
                  Board, such new director shall be considered as a member of
                  the Incumbent Board; PROVIDED, FURTHER, HOWEVER, that no
                  individual shall be considered a member of the Incumbent Board
                  if such individual initially assumed office as a result of
                  either an actual or threatened "Election Contest" (as
                  described in Rule 14a-11 promulgated under the 1934 Act as in
                  effect on the date hereof) or other actual or threatened
                  solicitation of proxies or consents by or on behalf of a
                  Person other than the Board of Directors (a "Proxy Contest")
                  including by reason of any agreement intended to avoid or
                  settle any Election Contest or Proxy Contest; or

                  (c)  Approval of shareholders of the Company of:

                           (1) A merger, consolidation or reorganization
                  involving the Company (a "Business Combination"), unless

                                    (i) the shareholders of the Company,
                  immediately before the Business Combination, own, directly or
                  indirectly immediately following the Business Combination, at
                  least 75% of the combined voting power for the election of
                  directors generally of the outstanding securities of the
                  Corporation resulting from the Business Combination (the
                  "Surviving Corporation") in substantially the same proportion
                  as their ownership of the Voting Securities immediately before
                  the Business Combination, and

                                    (ii) the individuals who were members of the
                  Incumbent Board immediately prior to the execution of the
                  agreement providing for the Business Combination constitute at
                  least two-thirds of the members of the Board of Directors of
                  the Surviving Corporation, and

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<PAGE>   14

                                    (iii) no Person (other than the Company or
                  any Subsidiary, a trustee or other fiduciary holding
                  securities under one or more employee benefit plans or
                  arrangements (or any trust forming a part thereof) maintained
                  by the Company, the Surviving Corporation or any Subsidiary,
                  or any Person who, immediately prior to the Business
                  Combination, had Beneficial Ownership of twenty percent (20%)
                  or more of the then outstanding Voting Securities) upon
                  confirmation of the Business Combination is the Beneficial
                  Owner of twenty percent (20%) or more of the combined voting
                  power for the election of directors generally of the Surviving
                  Corporation's then outstanding securities (a transaction
                  described in clauses (i) through (iii) shall be referred to as
                  a "Non-Control Transaction");

                  (2) A complete liquidation or dissolution of the Company; or

                  (3) An agreement for the sale or other disposition of all or
         substantially all of the assets of the Company to any Person (other
         than a transfer to a Subsidiary).

              Voting Securities acquired by a Person that is not deemed to
         constitute an "acquisition" of such Voting Securities by such Person by
         reason of either of the proviso to paragraph (a) above shall, except in
         the case of Underwriting Securities nevertheless be deemed to be
         Beneficially Owned by such Person for purposes of determining whether
         the "acquisition" of any additional Voting Securities by such Person
         (which subsequent "acquisition" is not covered by either proviso to
         paragraph (a) and, therefore, is considered to be an "acquisition" of
         Voting Securities for purposes of paragraph (a)) would result in such
         Person exceeding the twenty percent (20%) or more threshold or the more
         than 30% threshold, as the case may be, established therein.

                  Notwithstanding the foregoing, a change shall not be deemed to
         occur solely because twenty (20%) or more of the then outstanding
         Voting Securities is Beneficially Owned by (i) a trustee or other
         fiduciary holding securities under one or more employee benefit plans
         or arrangements (or any trust forming a part thereof) maintained by the
         Company or any Subsidiary or (ii) any corporation which, immediately
         prior to its acquisition of such interest, is owned directly or
         indirectly by the shareholders of the Company in the same proportion as
         their ownership of stock in the Company immediately prior to such
         acquisition; furthermore, if an employee's employment is terminated and
         the employee reasonably demonstrates that such termination (i) was at
         the request of a third party who has indicated an intention or taken
         steps reasonably calculated to effect a Change Control and who
         effectuates a Change of Control or (ii) otherwise occurred in
         connection with, or in anticipation of, a Change Control which actually
         occurs, then for all purposes hereof, a Changed Control shall be deemed
         to have occurred and the date of a Change of Control with respect to
         the employment shall mean the date immediately prior to the date of
         such termination of employment.

         (C)  NON-TRANSFERABILITY. No Award granted to a Participant under this
         Plan shall be transferable other than by will or the laws of descent
         and distribution or pursuant to a qualified domestic relations order as
         defined in the Code, provided that transfer pursuant to a qualified
         domestic relations order shall not be permitted with respect to
         incentive stock options or in circumstances where such transfer would
         cause a lapse of restriction for purposes of Section 83 of the Code.
         Any attempt to transfer, assign, pledge, hypothecate or otherwise
         dispose of, or to subject to execution, attachment or similar process,
         any Award other than as permitted in the preceding sentence shall give
         no right to the purported transferee.

         (D)  COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES. No Option
         shall be exercisable and no Shares shall be delivered in settlement of
         any Award and no unrestricted Shares shall be issued for Restricted
         Stock under this Plan except in compliance with all applicable Federal
         and state laws and regulations including, without limitation,
         compliance with the rules of all domestic stock exchanges on which the
         Company's Shares may be listed. Any Share certificate issued to
         evidence Shares for which an Award is exercised or with respect to
         which Restricted Stock restrictions lapse, shall bear such legends and
         statements as the Board deems advisable in order to assure compliance
         with Federal and state laws and regulations. No Award shall be
         exercisable and no Shares shall be delivered and no Shares shall be
         issued for Restricted Stock under this Plan until the

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<PAGE>   15

         Company has obtained consent or approval from such regulatory bodies,
         Federal or state, having jurisdiction over such matters as the Board
         may deem advisable.

                  In the case of the exercise of an Award by a person or estate
         acquiring the right to exercise such Award by bequest or inheritance or
         in the case of a person or estate acquiring by bequest or inheritance
         the right to receive Shares for Restricted Stock because of the lapse
         of the restrictions, the right to the Payment Value of a Performance
         Unit, or the right to receive settlement of a Stock Unit, the Board may
         require reasonable evidence as to the ownership of the Award, and may
         require such consents and releases of taxing authorities as it may deem
         advisable.

         (E)  NO RIGHT TO EMPLOYMENT. Neither the adoption of the Plan nor its
         operation, nor any document describing or referring to the Plan, or any
         part thereof, shall confer upon any Participant under the Plan any
         right to continue in the employ of the Company or a subsidiary or shall
         in any way affect the right and power of the Company or a subsidiary to
         terminate the employment of any participant under the Plan at any time
         with or without assigning a reason therefor.

         (F)  TAX WITHHOLDING. The Board shall have the right to deduct from any
         settlement of an Award, including without limitation the delivery or
         vesting of Shares, made under the Plan any Federal, state or local
         taxes of any kind required by law to be withheld with respect to such
         payments or to take any such other action as may be necessary in the
         opinion of the Board to satisfy all obligations for payment of such
         taxes. If Shares which would otherwise be delivered in settlement of
         the Award are used to satisfy tax withholding, such Shares shall be
         valued based on their Fair Market Value determined in accordance with
         section 6(B) when the tax withholding is required to be made.
         Participants who are subject to Section 16 of the Exchange Act are
         hereby advised that pursuant to Rule 16b-3 thereunder the use of Shares
         to satisfy tax withholding will be treated as the exercise of a Stock
         Appreciation Right. See Section 7(F).

         (G)  AMENDMENT AND TERMINATION. The Board may at any time suspend,
         amend or terminate the Plan, and, without limiting the foregoing, the
         Board shall have the express authority to amend the Plan from time to
         time, with or without approval by the shareholders, in the manner and
         to the extent that the Board believes is necessary or appropriate in
         order to cause the Plan to conform to provisions of Rule 16b-3 under
         the Exchange Act and any other rules under Section 16 of the Exchange
         Act, as any of such rules may be amended, supplemented or superseded
         from time to time. Except for adjustments made in accordance with
         Section 12(A), the Board may not, without the consent of the grantee
         of the Award, alter or impair any Award previously granted under the
         Plan. No Award may be granted during any suspension of the Plan or
         after termination thereof.

                  In addition to Board approval of an amendment, if the
         amendment would: (i) materially increase the benefits accruing to
         Participants; (ii) increase the number of Shares deliverable under the
         Plan (other than in accordance with the provisions of Section 12(A) or,
         (iii) materially modify the requirements as to eligibility for
         participation in the Plan, then such amendment shall be approved by the
         holders of a majority of the Company's outstanding capital stock
         represented and entitled to vote at a meeting held for the purpose of
         approving such amendment to the extent required by Rule 16b-3 of the
         Exchange Act.

         (H)  EFFECTIVE DATE OF THE PLAN. This Plan was adopted by the Board on
         September 24, 1993 and by the Shareholders on September 24, 1993. The
         Plan shall become effective on the date the Registration Statement
         filed by the Company under the Securities Act of 1933 becomes effective
         with respect to Shares to be issued pursuant to the Plan. Awards may be
         granted under this Plan prior to the date the Plan becomes effective,
         but all such Awards shall be subject to the Plan becoming effective, as
         provided above.

                 ---------------------------------------------

                 ROBERDS, INC. 1999 ANNUAL REPORT ON FORM 10-K
                                 Page 78 of 128

<PAGE>   16

         (I)  DURATION OF THE PLAN. Unless previously terminated by the Board,
         this Plan shall terminate at the close of business on September 23,
         2003, and no Award shall be granted under it thereafter, but such
         termination shall not affect any Award theretofore granted.

         (J)  USE OF CERTAIN TERMS. The terms "parent" and "subsidiary" shall
         have the meanings ascribed to them in Section 425 of the Code and
         unless the context otherwise requires, the other terms defined in
         Section 421, 422 and 425, inclusive, of the Code and regulations and
         revenue rulings applicable thereto, shall have the meanings attributed
         to them therein.

APPROVED BY BOARD 2/16/99
APPROVED BY SHAREHOLDERS 4/30/99

                 ---------------------------------------------

                 ROBERDS, INC. 1999 ANNUAL REPORT ON FORM 10-K
                                 Page 79 of 128

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