Document:

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                                                                    Exhibit 10.2

                              CONN APPLIANCES, INC.
                  2003 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

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                                Table of Contents
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                                                                            Page
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1.  Purposes of this Plan......................................................1
2.  Establishment..............................................................1
3.  Definitions................................................................1
4.  Stock Subject to this Plan.................................................3
5.  Administration of this Plan................................................3
6.  Stock Options..............................................................3
7.  Exercise of Option.........................................................4
8.  Approval, Amendment, and Termination of this Plan..........................5
9.  Limited Transferability of Options.........................................6
10. Conditions Upon Issuance of Shares.........................................6
11. Inability to Obtain Authority..............................................6
12. Reservation of Shares......................................................6
13. Right to Continued Board Membership........................................6
14. Reliance on Reports........................................................6
15. Construction...............................................................6
16. Governing Law..............................................................7
17. Adjustments Upon Changes in Capitalization, Merger or Asset Sale...........7

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                              CONN APPLIANCES, INC.
                  2003 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

     1.   Purposes of this Plan. This Plan is established by the Company to aid
in attracting and retaining persons of outstanding competence to serve on the
Board of Directors who are not employed by the Company. This Plan is intended to
enable such persons to acquire or increase ownership interests in the Company on
a basis that will encourage them to use their best efforts to promote the growth
and profitability of the Company. Consistent with these objectives, this Plan
provides for the granting of Options to Non-Employee Directors on the terms and
subject to the conditions set forth in this Plan. Options granted under this
Plan do not qualify as "incentive stock options" within the meaning of Section
422 of the Code.

     2.   Establishment. This Plan is effective as of _______ __, 2003.

     3.   Definitions. As used herein, the following definitions shall apply:

          (a)  "Applicable Laws" means the requirements relating to the
     administration of stock option plans under U.S. state corporate laws, U.S.
     federal and state securities laws, the Code, any stock exchange or
     quotation system on which the Common Stock is listed or quoted and the
     applicable laws of any other country or jurisdiction where Options are
     granted under this Plan.

          (b)  "Board" means the Board of Directors of the Company.

          (c)  "Change of Control" means (i) the acquisition of the Company by
     another entity by means of any transaction or series of related
     transactions (including, without limitation, any reorganization, merger or
     consolidation, but excluding any merger effected primarily for the purpose
     of changing the domicile of the Company), unless the Company's shareholders
     of record as constituted immediately prior to such transaction or series of
     related transactions will, immediately after such transaction or series of
     related transactions hold at least a majority of the voting power of the
     surviving or acquiring entity or (ii) a sale of all or substantially all of
     the assets of the Company.

          (d)  "Code" means the Internal Revenue Code of 1986, as amended.

          (e)  "Common Stock" means the Company's common stock.

          (f)  "Company" means Conn Appliances, Inc., a Texas corporation, and
     any successor to the Company.

          (g)  "Date of Grant" means the date on which the granting of an Option
     is authorized pursuant to Paragraph 6 of this Plan, by the Board or such
     later date as may be specified by the Board in such authorization.

          (h)  "Director" means a member of the Board.

          (i)  "Disability" means total and permanent disability as defined in
     Section 22(e)(3) of the Code.

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          (j)  "Exchange Act" means the Securities Exchange Act of 1934, as
     amended.

          (k)  "Fair Market Value" means, as of any date, the value of Common
     Stock determined as follows:

               (i)   If the Common Stock is listed on any established stock
          exchange or a national market system, its Fair Market Value shall be
          the closing sales price for such stock (or the closing bid, if no
          sales were reported) as quoted on such exchange or system on the date
          of determination, as reported in The Wall Street Journal or such other
          source as the Board deems reliable;

               (ii)  If the Common Stock is regularly quoted by a recognized
          securities dealer but selling prices are not reported, its Fair Market
          Value shall be the mean between the high bid and low asked prices for
          the Common Stock on the date of determination; or

               (iii) In the absence of an established market for the Common
          Stock, the Fair Market Value thereof shall be determined in good faith
          by the Board.

          (l)  "Non-Employee Director" means a Director who, as of the Date of
     Grant, is not an officer or otherwise employed by the Company, a Parent, or
     a Subsidiary.

          (m)  "Option" means an option to purchase shares of Common Stock
     granted under Paragraph 6 of this Plan.

          (n)  "Option Agreement" means a written agreement between the Company
     and an Optionee substantially in the form of Exhibit A attached hereto
     evidencing the terms and conditions of an individual Option grant under
     this Plan. The Option Agreement is subject to the terms and conditions of
     this Plan.

          (o)  "Optioned Stock" means the Common Stock subject to an Option.

          (p)  "Optionee" means the holder of an outstanding Option granted
     under this Plan.

          (q)  "Paragraph" means a paragraph of this Plan.

          (r)  "Parent" means a "parent corporation," whether now or hereafter
     existing, as defined in Section 424(e) of the Code.

          (s)  "Plan" means the Conn Appliances, Inc. 2003 Non-Employee Director
     Stock Option Plan, as may be amended from time to time.

          (t)  "Share" means a share of the Common Stock, as adjusted in
     accordance with Paragraph 17.

          (u)  "Subsidiary" means a "subsidiary corporation," whether now or
     hereafter existing, as defined in Section 424(f) of the Code.

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     4.   Stock Subject to this Plan. Subject to the provisions of Paragraph 17,
the maximum aggregate number of Shares that may be subject to Options and sold
under this Plan is 300,000 Shares. The Shares may be authorized but unissued, or
reacquired Common Stock.

     If an Option expires or becomes unexercisable without having been exercised
in full, the unpurchased Shares which were subject thereto shall become
available for future grant under this Plan (unless this Plan has terminated).
However, Shares that have actually been issued under this Plan upon exercise of
an Option shall not be returned to this Plan and shall not become available for
future distribution under this Plan.

     5.   Administration of this Plan. This Plan shall be administered by the
Board. Subject to the provisions of this Plan, the Board shall have the
authority to prescribe, amend and rescind rules and regulations relating to this
Plan, including rules and regulations relating to sub-plans, if any, established
for the purpose of satisfying applicable foreign laws and to construe and
interpret the terms of this Plan and Options granted pursuant to this Plan. All
decisions, determinations and interpretations of the Board shall be final and
binding on all Optionees.

     6.   Stock Options.

          (a)  Grant of Options by the Board.

               (i)   As of the effective date of the Company's initial public
          offering of Common Stock, each Non-Employee Director shall be granted
          an Option to purchase 40,000 Shares. Individuals who become
          Non-Employee Directors after the effective date of the Company's
          initial public offering of Common Stock shall be granted an Option to
          purchase 40,000 Shares on their first day of service as a Non-Employee
          Director.

               (ii)  Subject to Section 6(a)(iv) and provided that the
          Non-Employee Director is then continuing in office, each Non-Employee
          Director shall be granted an Option to purchase 10,000 Shares
          immediately following each annual stockholders meeting during the term
          of this Plan commencing in the year in which the fourth anniversary of
          the Non-Employee Director's initial election or appointment to the
          Board occurs.

               (iii) Each Option granted under this Plan shall be subject to the
          terms, conditions, restrictions and/or limitations, if any, applicable
          to the Options as set forth in the respective Option Agreements in
          addition to those set forth in this Plan and the administrative rules
          and regulations issued by the Board.

               (iv)  Options granted pursuant to this Paragraph that would
          otherwise exceed the maximum number of Shares authorized in Paragraph
          4 of this Plan shall be prorated within such limitation.

          (b)  Vesting. Unless stated otherwise in the Option Agreement, Options
     granted under this Plan shall vest and become exercisable, subject to the
     other terms of this Plan, at the rate of 25% per annum on each anniversary
     of the Date of Grant.

          (c)  Option Exercise Price and Consideration. The Option Agreement for
     each Option shall state the price at which the Option may be exercised, and
     the consideration

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     to be paid for the Shares to be issued upon exercise of an Option. Such
     consideration may consist of cash or check.

     7.   Exercise of Option.

          (a)  Procedure for Exercise; Rights as a Shareholder. Any Option
     granted hereunder shall be exercisable according to the terms of the Plan
     at such times and under such conditions as determined by the Board and set
     forth in the Option Agreement. An Option may not be exercised for a
     fraction of a Share.

          An Option shall be exercised when, and only when, the Company
     receives: (i) written notice of exercise (in accordance with the Option
     Agreement) from the person entitled to exercise the Option, and (ii) full
     payment for the Shares with respect to which the Option is exercised. Full
     payment may consist of any consideration and method of payment permitted by
     the Option Agreement and this Plan. Shares issued upon exercise of an
     Option shall be issued in the name of the Optionee or, if requested by the
     Optionee, in the name of the Optionee and his spouse. Until the Shares are
     issued (as evidenced by the appropriate entry on the books of the Company
     or of a duly authorized transfer agent of the Company), no right to vote or
     receive dividends or any other rights as a shareholder shall exist with
     respect to the Shares, notwithstanding the exercise of the Option. The
     Company shall issue (or cause to be issued) such Shares promptly after the
     Option is exercised. No adjustment will be made for a dividend or other
     right for which the record date is prior to the date the Shares are issued,
     except as provided in Paragraph 17.

          Exercise of an Option in any manner shall result in a decrease in the
     number of Shares thereafter available, both for purposes of this Plan and
     for sale under the Option, by the number of Shares as to which the Option
     is exercised.

          (b)  Exercise of Options After a Participant's Termination. Options
     granted to an Optionee whose service as a Director terminates during the
     Option period for any reason may be exercised, to the extent exercisable,
     until the earlier of (i) three (3) years after termination of the
     Optionee's service on the Board or (ii) the expiration of the Option. In
     the event an Optionee's membership on the Board is terminated by death, the
     personal representative of the deceased Optionee may so exercise any
     unexercised vested Option granted to the Optionee under this Plan.

          (c)  Withholding. Optionees may satisfy withholding tax obligations by
     electing to have the Company withhold from the Shares to be issued upon
     exercise of an Option that number of Shares having a Fair Market Value
     equal to the minimum amount required to be withheld. The Fair Market Value
     of the Shares to be withheld shall be determined as of the date the amount
     of tax to be withheld is to be determined. Any and all elections by
     Optionees to have Shares withheld for this purpose shall be made in such
     form and under such conditions as the Board may deem necessary or
     advisable.

          (d)  Other Terms and Conditions. In addition to the terms and
     conditions provided elsewhere in this Plan, Options granted under this Plan
     are subject to the following:

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               (i)   Options may not be exercised until this Plan has been
          approved by the shareholders pursuant to Paragraph 8.

               (ii)  Any Option not exercised within ten (10) years from the
          Date of Grant shall expire.

               (iii) Shares acquired from the exercise of an Option must be held
          for at least one year before their sale or transfer shall be
          permitted.

               (iv)  Options may not be exercised for fewer than 1,000 Shares.

               (v)   Optionees may not exercise Options more than once per
          calendar quarter.

          (e)  Application of Funds. The proceeds received by the Company from
     the sale of Common Stock issued upon the exercise of Options will be used
     for general corporate purposes.

     8.   Approval, Amendment, and Termination of this Plan.

          (a)  Shareholder Approval. This Plan must be approved by a majority of
     the votes cast at a duly held shareholders' meeting at which a quorum
     representing a majority of all outstanding voting Shares is, either in
     person or by proxy, present and voting on the Plan within twelve (12)
     months after the date this Plan is adopted. The Board shall obtain similar
     shareholder approval of any Plan amendment to the extent necessary and
     desirable to comply with Applicable Laws, which shall include:

               (i)   an increase in the number of Shares subject to Option under
          this Plan;

               (ii)  a change in the definition of Employee affecting
          eligibility; or

               (iii) a change in the manner in which Options are issued or may
          be exercised.

          (b)  NASD Rules. In addition to the foregoing, the Board shall obtain
     similar shareholder approval for any Plan amendment which requires such
     approval under the rules of the National Association of Securities Dealers.

          (c)  Amendment and Termination. The Board may at any time amend,
     alter, suspend or terminate this Plan.

          (d)  Effect of Amendment or Termination. No amendment, alteration,
     suspension or termination of this Plan shall impair the rights of any
     Optionee, unless mutually agreed otherwise between the Optionee and the
     Board, which agreement must be in writing and signed by the Optionee and
     the Company. Termination of this Plan shall not affect the Board's ability
     to exercise the powers granted to it hereunder with respect to Options
     granted under this Plan prior to the date of such termination.

          (e)  Effect of Failure to Obtain Shareholder Approval.

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               (i)   If the shareholders fail to approve the adoption of this
          Plan as set forth in this Paragraph 8, all Options granted under the
          Plan shall expire and the Plan shall terminate.

               (ii)  If the shareholders fail to approve a Plan amendment as set
          forth in this Paragraph 8, the Plan amendment shall be disregarded.

     9.   Limited Transferability of Options. Unless determined otherwise by the
Board, Options may not be sold, pledged, assigned, hypothecated, transferred, or
disposed of in any manner other than by will or by the laws of descent or
distribution and may be exercised, during the lifetime of the Optionee, only by
the Optionee.

     10.  Conditions Upon Issuance of Shares.

          (a)  Legal Compliance. Shares shall not be issued pursuant to the
     exercise of an Option unless the exercise of such Option and the issuance
     and delivery of such Shares complies with Applicable Laws and shall be
     further subject to the approval of legal counsel to the Company with
     respect to such compliance.

          (b)  Investment Representations. As a condition to the exercise of an
     Option, the Board may require the Optionee to represent and warrant at the
     time of any such exercise that the Shares are being purchased only for
     investment and without any present intention to sell or distribute such
     Shares if, in the opinion of legal counsel to the Company, such a
     representation is necessary or appropriate.

     11.  Inability to Obtain Authority. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's legal counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

     12.  Reservation of Shares. The Company, during the term of this Plan,
shall at all times reserve and keep  available such number of Shares as shall be
sufficient to satisfy the requirements of this Plan.

     13.  Right to Continued Board Membership. Participation in this Plan shall
not give any Optionee any right to remain on the Board.

     14.  Reliance on Reports. Each member of the Board shall be fully justified
in relying or acting in good faith upon any report made by the independent
public accountants of the Company, its Parents, and Subsidiaries and upon any
other information furnished in connection with this Plan by any person or
persons other than the Board or Board member. In no event shall any person who
is or shall have been a member of the Board or of the Board be liable for any
determination made or other action taken or any failure to act in reliance upon
any such report or information or for any action taken, including the furnishing
of information, or failure to act, if in good faith.

     15.  Construction. The titles and headings of the sections in this Plan are
for the convenience of reference only, and in the event of any conflict, the
text of this Plan, rather than such titles or headings, shall control.

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     16.  Governing Law. This Plan shall be governed by and construed in
accordance with the laws of the State of Delaware, except as superseded by
applicable federal law.

     17.  Adjustments Upon Changes in Capitalization, Merger or Asset Sale.

          (a)  Changes in Capitalization. Subject to any required action by the
     shareholders of the Company, the number and type of Shares which have been
     authorized for issuance under this Plan but as to which no Options have yet
     been granted or which have been returned to this Plan, upon cancellation or
     expiration of an Option, and the number and type of Shares covered by each
     outstanding Option, as well as the price per Share covered by each such
     outstanding Option, shall be proportionately adjusted for any increase or
     decrease in the number or type of issued Shares resulting from a stock
     split, reverse stock split, stock dividend, combination or reclassification
     of the Common Stock, or any other increase or decrease in the number of
     issued shares of Common Stock effected without receipt of consideration by
     the Company. The conversion of any convertible securities of the Company
     shall not be deemed to have been "effected without receipt of
     consideration." Such adjustment shall be made by the Board, whose
     determination in that respect shall be final, binding and conclusive.
     Except as expressly provided herein, no issuance by the Company of shares
     of stock of any class, or securities convertible into shares of stock of
     any class, shall affect, and no adjustment by reason thereof shall be made
     with respect to, the number, type or price of Shares subject to an Option.

          (b)  Dissolution or Liquidation. In the event of the proposed
     dissolution or liquidation of the Company, the Board shall notify each
     Optionee as soon as practicable prior to the effective date of such
     proposed transaction. The Optionee shall fully vest in and have the right
     to exercise the Option as to all of the Optioned Stock, including Shares as
     to which such Option would not otherwise be vested or exercisable. The
     Board shall notify the Optionee in writing that the Option shall be fully
     exercisable until fifteen (15) days prior to the proposed transaction. In
     addition, the Board may provide that any of the Company's rights to
     repurchase any Shares purchased upon exercise of an Option shall lapse as
     to all such Shares, provided the proposed dissolution or liquidation takes
     place at the time and in the manner contemplated. To the extent an Option
     has not been exercised, it will terminate immediately prior to the
     consummation of such proposed transaction.

          (c)  Merger or Asset Sale. In the event of (i) a merger of the Company
     with or into another entity or (ii) the sale of all or substantially all of
     the assets of the Company (either, a "Merger Transaction"), each
     outstanding Option shall be assumed or an equivalent option or right
     substituted by the successor entity or a Parent or Subsidiary of the
     successor entity. In the event that the successor entity refuses to assume
     or substitute for the Option, the Optionee shall fully vest in and have the
     right to exercise the Option as to all of the Optioned Stock, including
     Shares as to which such Option would not otherwise be vested or
     exercisable. If an Option becomes fully vested and exercisable in lieu of
     assumption or substitution in the event of a Merger Transaction, the Board
     shall notify the Optionee in writing that the Option shall be fully
     exercisable for a period of fifteen (15) days from the date of such notice,
     and the Option shall terminate upon the expiration of such period. For the
     purposes of this Paragraph 17, the Option shall be considered assumed if,
     following the Merger Transaction, the option or right confers the

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     right to purchase or receive, for each Share of Optioned Stock subject to
     the Option immediately prior to the Merger Transaction, the consideration
     (whether stock, cash, or other securities or property) received in the
     Merger Transaction by holders of Common Stock for each Share held on the
     effective date of the Merger Transaction (and if holders were offered a
     choice of consideration, the type of consideration chosen by the holders of
     a majority of the outstanding Shares); provided, however, that if such
     consideration received in the Merger Transaction is not solely common stock
     of the successor entity or its Parent, the Board may, with the consent of
     the successor entity, provide for the consideration to be received upon the
     exercise of the Option, for each Share of Optioned Stock subject to the
     Option, to be solely common stock of the successor entity or its Parent
     equal in fair market value to the per share consideration received by
     holders of Common Stock in the Merger Transaction.

          (d)  Accelerated Vesting. Following either an assumption of or
     substitution for Options in connection with a Merger Transaction that
     constitutes a Change of Control and in the event of the termination of an
     Optionee of service on the Board ("Involuntary Termination"), upon or
     during the one (1) year period after the effective date of such Change of
     Control, each Optionee's rights to purchase Optioned Stock shall become
     automatically vested in their entirety on an accelerated basis and be fully
     exercisable as of the date immediately preceding any such Involuntary
     Termination.

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                                   Exhibit A
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                  Form of Non-Qualified Stock Option Agreement<PAGE>

                                                                    Exhibit 10.3

                              CONN APPLIANCES, INC.
                          EMPLOYEE STOCK PURCHASE PLAN

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                                Table of Contents
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1.   Purposes of the Plan......................................................1
2.   Definitions...............................................................1
3.   Shares Offered............................................................2
4.   Administration............................................................2
5.   Offerings.................................................................3
6.   Eligibility...............................................................3
7.   Offering Rights...........................................................3
8.   Participation.............................................................3
9.   Method of Payment.........................................................4
10.  Deduction Changes.........................................................4
11.  Interest..................................................................4
12.  Purchase Price and Purchase of Shares.....................................4
13.  Prepayment of Offering....................................................5
14.  Withdrawal from Offering..................................................5
15.  Shareholder Rights........................................................5
16.  Rights upon Retirement or Death...........................................5
17.  Rights not Transferable...................................................6
18.  Application of Funds......................................................6
19.  Adjustments upon Changes in Capitalization................................6
20.  Amendments to the Plan....................................................6
21.  Termination of the Plan...................................................6
22.  Allotment of Shares.......................................................7
23.  Governmental and Other Regulations........................................7
24.  Shareholder Approval......................................................7
25.  Stock Ownership...........................................................7
26.  Purchase of Stock or Payment Upon a Change of Control.....................7
27.  Indemnification of the Committee..........................................9

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                              CONN APPLIANCES, INC.
                          EMPLOYEE STOCK PURCHASE PLAN

     1.   Purposes of the Plan. The Plan is intended to advance the long-range
interests of the Company by encouraging the acquisition and ownership of Company
Common Stock upon the terms herein set forth by Employees of the Company, its
Parents and Subsidiaries. By providing Employees with an opportunity to acquire
an ownership interest in the Company, the Plan will enhance both their efforts
to promote the Company's long-term performance and their continuance as
Employees with the Company. This Plan is meant to qualify as an "employee stock
purchase plan" under Section 423 of the Code. The provisions of this Plan shall
be construed so as to extend and limit participation in a manner consistent with
the requirements of that section of the Code.

     2.   Definitions. As used herein, the following definitions shall apply:

          (a)  "Board" means the Company's board of directors.

          (b)  "Code" means the Internal Revenue Code of 1986, as amended.

          (c)  "Committee" means a committee of Directors appointed by the Board
     in accordance with Paragraph 4 hereof. All members of the Committee shall
     be Directors who are not at the time they exercise discretion in
     administering the Plan eligible, and have not at any time within one year
     been eligible, to purchase Common Stock under the Plan.

          (d)  "Common Stock" means the Company's common stock.

          (e)  "Company" means Conn Appliances, Inc., a Texas corporation, and
     any successor to the Company.

          (f)  "Director" means a member of the Board.

          (g)  "Employee" means any person, including officers, employed by the
     Company or a Parent or Subsidiary of the Company. A person shall not cease
     to be an Employee in the case of (i) any leave of absence approved by the
     Company or (ii) transfers between locations of the Company or between the
     Company, its Parent, any Subsidiary or any successor. Neither service as a
     Director nor payment of a director's fee by the Company shall be sufficient
     to constitute "employment" by the Company.

          (h)  "Exchange Act" means the Securities Exchange Act of 1934, as
     amended.

          (i)  "Highly Compensated Employee" means a "highly compensated
     employee" within the meaning of Section 414(q) of the Code.

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          (j)  "Offering" means an offer to eligible Employees to purchase
     Common Stock under the Plan.

          (k)  "Offering Date" means the first day of the Offering Period.

          (l)  "Offering Period" means the calendar quarter for which a specific
     Offering is made.

          (m)  "Paragraph" means a paragraph of this Plan.

          (n)  "Parent" means a "parent corporation," whether now or hereafter
     existing, as defined in Section 424(e) of the Code.

          (o)  "Participant" means an eligible Employee who elects Payroll
     Deductions for the purpose of purchasing Common Stock under the Plan.

          (p)  "Payroll Deduction" means an amount, as determined by the
     Participant, to be withheld from each paycheck for the purpose of
     purchasing Common Stock under the Plan.

          (q)  "Payroll Deduction Authorization Form" means an authorization
     form provided by the Company with which the Participant may elect Payroll
     Deductions.

          (r)  "Plan" means the Conn Appliances, Inc. Employee Stock Purchase
     Plan, as may be amended from time to time.

          (s)  "Plan Account" means an account maintained by the Company on its
     books for this Plan to record a Participant's Payroll Deductions.

          (t)  "Purchase Date" means the last day of an Offering Period, or such
     other date as required by administrative operational requirements.

          (u)  "Subsidiary" means a "subsidiary corporation," whether now or
     hereafter existing, as defined in Section 424(f) of the Code.

     3.   Shares Offered. The total number of shares of Common Stock available
under the Plan is 1,267,085 shares, which are authorized but unissued shares of
Common Stock. If any Offering shall expire without the rights under such
Offering having been exercised in full, such unpurchased shares covered thereby
shall be added to the shares otherwise available for future Offerings.

     4.   Administration. This Plan shall be administered by the Committee. No
member of the Board or the Committee shall be liable for any action or
determination made in good faith with respect to the Plan. Subject to the
express provisions of the Plan contained herein, the Committee shall have the
authority to make rules and regulations for the administration of the Plan. The
Committee may correct any defect or supply an omission or reconcile any
inconsistency in the Plan in the manner and to the extent it shall deem
necessary to carry it into

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effect. All determinations reached by the Committee on matters referred to in
this Paragraph 4 shall be binding and conclusive.

     5.   Offerings. The Company may make periodic Offerings to purchase Common
Stock under the Plan, which Offerings shall not be made more often than once
every calendar quarter. With respect to each Offering, the Committee, at its
discretion, shall specify the Offering Period, and the maximum number of shares
of Common Stock that may be purchased under such Offering. Unless otherwise
specified by the Committee, the number of shares of Common Stock which may be
purchased under each successive Offering shall be the balance of the 1,267,085
shares authorized, but not yet purchased, under the terms of this Plan.

     6.   Eligibility. The Committee shall designate the Parents and
Subsidiaries of the Company whose employees are eligible to participate in the
Plan. The Committee may, in its sole discretion, attach an addendum to this Plan
listing such Parents and Subsidiaries participating under the Plan. Any person
who is actively employed by the Company or one of the designated Parents or
Subsidiaries on the first day of the calendar quarter prior to an Offering
Period, shall be eligible to participate in the Plan, except that the Committee
may exclude Employees who fall into one or more of the following categories: (i)
Employees who customarily work twenty (20) or fewer hours per week; (ii)
Employees who have been employed for less than one (1) year; (iii) Employees
subject to the restriction of Section 16 of the Exchange Act; and/or (iv)
Employees who are members of a collective bargaining agreement which has refused
to participate in this Plan. A person shall be considered to be actively
employed with the Company if the person is presently performing his regular
duties with the Company or one of the designated Parents or Subsidiaries. The
duration of employment with a business entity acquired by the Company or one of
its Parents or Subsidiaries shall be included in determining an Employee's
length of employment for the purpose of this Paragraph 6, provided that such
acquired business entity is a Subsidiary on the Offering Date.

     7.   Offering Rights. With respect to each Offering, each eligible Employee
shall be offered the opportunity to elect Payroll Deductions which shall be
withheld by the Company for the purchase on behalf of such Participant the
number of whole shares of the Company's Common Stock that can be purchased with
the amount deducted for such purpose, but in no event may the number of whole
shares which may be purchased by any Participant exceed the number of whole
shares available during the Offering Period. Rights to purchase the shares of
Common Stock from Payroll Deduction shall be exercisable in the manner and to
the extent as hereinafter provided.

     8.   Participation. An eligible Employee may participate in an Offering by
completing and submitting an authorization for Payroll Deduction on the Payroll
Deduction Authorization Form to the Chief Financial Officer of the Company prior
to the Offering Date of an Offering Period and in accordance with the rules
developed by the Committee and communicated to eligible Employees. Upon filing
the Payroll Deduction Authorization Form, a Participant shall elect to have
deductions made for each payroll period which may be any whole percentage from
1% to a maximum of 25% of base pay in effect at the beginning of the Offering
Period. A Participant who elects to participate for an Offering Period through
Payroll Deductions shall be deemed to have elected to participate in the Plan on
the same basis for each successive Offering

                                       3

<PAGE>

Period until such time as the Participant submits a Payroll Deduction
Authorization Form changing their election or elects to withdraw from the Plan
as provided in Paragraph 14.

     9.   Method of Payment. The Company shall maintain, or cause to have
maintained, a Plan Account in the name of each Participant. For each payroll
period, the amount deducted pursuant to the Payroll Deduction shall be credited
to such Participant's Plan Account. As of the Purchase Date, the amount then in
each Participant's Plan Account shall be applied to the purchase of shares of
Common Stock. The purchase of shares may be made solely from the Participant's
Plan Account, except that, upon the cessation of active employment for reasons
other than short-term disability, or, if the Participant is on an approved leave
of absence or a layoff with recall rights from the Company, either of which
period has not exceeded ninety (90) days, the Participant may make a cash
payment, in one lump sum, to the Plan to the extent that amounts payable by the
Company to such Participant are insufficient to meet such Participant's
authorized Plan deductions for the Offering Period. The prepayment shall be made
pursuant to Paragraph 13. Should any such cash payment not be paid to the
Company within fifteen (15) days after the Participant is notified such payment
is required, such payment may not be made thereafter, without Committee
approval.

     10.  Deduction Changes. A Participant may not decrease or increase their
Payroll Deduction election during an Offering Period. A Participant may,
however, decrease or increase their Payroll Deduction election prior to the
commencement of the next Offering Period by filing a new Payroll Deduction
Authorization Form with the Chief Financial Officer of the Company, within the
time specified by the Committee.

     11.  Interest. The Company shall not credit a Participant's Plan Account
with interest on any Payroll Deduction.

     12.  Purchase Price and Purchase of Shares. Subject to the other provisions
of this Plan, the purchase price for a share of Common Stock under any Offering
will be the lesser of:

          (a)  85% of the mean between the highest and lowest sale price for
     shares of Common Stock as reported by the composite transaction reporting
     system for securities listed on the NASDAQ Exchange on the Offering Date
     for such Offering or on the most recently preceding date on which there was
     such a sale (the "Initial Offering Price"); or

          (b)  85% of the mean between the highest and lowest sales price for
     shares of Common Stock as reported by the composite transaction reporting
     system for securities listed on the NASDAQ Exchange on the last day of the
     Offering Period or on the most recently preceding date on which there was
     such a sale (the "Alternate Offering Price").

     As of the Purchase Date, the Alternate Offering Price shall be ascertained
and each Participant's Plan Account shall be totaled. Shares of Common Stock
subject to an Offering will be purchased with funds accumulated in each
Participant's Plan Account, pursuant to the provisions of this Plan. Unless the
Offering has been cancelled pursuant to Paragraph 14, and subject to the
provisions of Paragraph 26, a Participant shall be deemed to have elected to
purchase the shares subject to the Offering as of the Purchase Date at the lower
of the Initial Offering Price or the Alternate Offering Price. Purchased shares
shall be registered in the name

                                       4

<PAGE>

of the Plan, or its designee, and held on behalf of and in the name of the
Participant. Stock certificates shall not be issued to Participants for the
stock held on their behalf, but all rights accruing to an owner of record of
such stock, including, without limitation, voting and tendering rights, shall
belong to the Participant for whose account such stock is held. Notwithstanding
the foregoing, a Participant may elect, at the Participant's cost, to receive a
stock certificate after the purchase price for the shares has been paid in full.

     13.  Prepayment of Offering. In the event of a Participant's death,
retirement, or, in the event the Participant is on an approved leave of absence
or a layoff with recall rights from the Company which period has not exceeded
ninety (90) days, during an Offering Period, prepayment may be made pursuant to
Paragraph 16. The prepayment required shall be determined by multiplying the
amount which would otherwise be withheld from each paycheck, by the number of
remaining payroll periods in the Offering Period. No partial prepayments will be
permitted.

     14.  Withdrawal from Offering. Each Participant shall have the right, at
any time prior to the Purchase Date, to withdraw from the Offering by providing
fifteen (15) days' prior written notice to the Chief Financial Officer of the
Company revoking his Payroll Deduction. A Participant who elects to cease
participation in the Plan by revoking his Payroll Deduction, may not resume
participation in the Plan until after the expiration of one full Offering Period
following the Offering Period in which he ceases participation. As promptly as
is practicable following the result of a revocation notice, all Payroll
Deductions credited to such Participant's Plan Account shall be returned to such
Participant in cash, without interest. In the event of a Participant's
termination of employment other than by reason of death or retirement, the
Offering shall be cancelled without notice to the Participant (or upon fifteen
(15) days written notice to the Participant if the termination is subsequent to
a Change of Control). A Participant of a company included as a participating
Subsidiary in this Plan which ceases to be a Subsidiary shall be deemed to have
terminated employment for purposes of this Paragraph 14 as of the date such
company ceases to be a Subsidiary unless, as of such date, the Participant shall
become an Employee of the Company or of any Subsidiary then included in the
Plan.

     15.  Shareholder Rights. None of the rights or privileges of a shareholder
of the Company shall exist with respect to shares of Common Stock purchased
under this Plan until the date as of which shares are: (i) registered in the
name of the Plan or its designee; (ii) registered in the Participant's name; or
(iii) certificates representing such shares are issued to the Participant or the
Participant's designee.

     16.  Rights upon Retirement or Death. In the event of a Participant's
retirement or death, Payroll Deductions shall be taken from any compensation due
and owing to the Participant at such time. The amount in the Participant's Plan
Account, without interest, shall at the written election of the Participant, or
in the event of death, the person or persons to whom such right under the
Offering passes by will, the laws of descent and distribution (including the
estate during the period of administration) or by the Participant's designation
pursuant to Paragraph 17, either (i) be refunded by the earlier of the Purchase
Date or sixty (60) days after the occurrence of such event; or (ii) be used to
purchase the shares subject to the Offering by payment of the required amount to
the Participant's Plan Account in full at least fifteen (15) days prior to the
Purchase Date. In the event that no such written notice of election shall be
duly

                                       5

<PAGE>

received by the Chief Financial Officer, shares will be automatically purchased.
The required amount shall be determined by multiplying the amount which would
otherwise be withheld from each paycheck, by the number of remaining payroll
periods in the Offering Period. No partial prepayments will be permitted. The
purchase price of the shares of Common Stock subject to the Offering shall be
determined in accordance with Paragraph 12.

     17.  Rights not Transferable. Except as hereinafter set forth and unless
otherwise provided by law, no Participant shall have the right to sell, assign,
transfer, pledge, or otherwise dispose of or encumber either the right to
participate in the Plan or the interest in the fund accumulated for the
Participant's benefit, and such right and interest shall not be liable for or
subject to the debts, contracts, or liabilities of such Participant. If any such
action is taken by the Participant, or any claim asserted by another party in
respect of such right and interest, such action or claim will be treated as a
notice of cancellation, and except as may otherwise be required by law, a refund
will be made to such Participant as provided in Paragraph 14.

     A Participant may designate in writing the person who shall have the right
to purchase the shares subject to the Offering in the event of the Employee's
death.

     18.  Application of Funds. All funds received or otherwise held by the
Company pursuant to this Plan may be used for any general corporate purpose
without restriction.

     19.  Adjustments upon Changes in Capitalization. Notwithstanding any other
provision of the Plan, in the event of any change in the outstanding Common
Stock by reason of a stock dividend, recapitalization, consolidation, split-up,
combination or exchange of shares, or the like, the aggregate number and class
of shares available under the Plan and the number and class of shares subject to
outstanding Offerings and the maximum number of shares for which an individual
employee may purchase and the Initial Offering Price shall be proportionately
adjusted, and such other adjustments shall be made as may be deemed equitable,
by the Board.

     20.  Amendments to the Plan. To the extent permitted by law, the Board or
the Committee may at any time, and from time to time, make such changes in and
additions to the Plan as the Board or Committee deem advisable, provided,
however, that except as provided in this Paragraph 20, and except with respect
to changes or additions in order to make the Plan comply with Section 423 of the
Code, as it may be amended from time to time, neither the Board, the President
of the Company, nor the Committee may, without approval by the holders of a
majority of the shares of Common Stock (i) increase the maximum number of shares
which may be purchased under the Plan; (ii) reduce the purchase price per share;
or (iii) make any change or addition which does not meet the requirements of
Section 423 of the Code, and no amendment of the Plan may, without the consent
of the holder of any outstanding Offering, materially and adversely affect the
Employee's rights in respect to such Offering.

     21.  Termination of the Plan. This Plan shall terminate at the earlier of:

          (a)  the date that all of the shares authorized for sale under the
     Plan have been purchased, except as otherwise extended by authorizing
     additional shares; or

          (b)  at any time, at the discretion of the Board, provided, however,
     that no termination shall affect outstanding Offerings.

                                       6

<PAGE>

     Upon termination of the Plan and the exercise or lapse of all Offering
rights hereunder, all amounts remaining in the Plan Accounts of participating
Employees, without interest, shall be promptly refunded.

     22.  Allotment of Shares. If the total number of shares to be purchased by
Participants through Payroll Deduction under any Offering exceeds the shares
available for purchase under the Offering, the Committee may make allotments of
shares among the Participants on any basis consistent with the provisions of
this Plan and Offerings for any additional shares in excess of the shares so
allotted shall be deemed to have lapsed.

     23.  Governmental and Other Regulations. The obligation of the Company to
issue or transfer and deliver shares under this Plan shall be subject to (i)
compliance with all applicable laws, governmental rules and regulations, and
administrative action; (ii) the effectiveness of a Registration Statement under
the Securities Act of 1933, as amended, with respect to such issue or transfer,
if deemed necessary or appropriate by counsel for the Company; and (iii) the
condition that the shares of Common Stock reserved for issuance upon the
purchase of shares subject to Offering under the Plan shall have been listed (or
authorized for listing upon official notice of issuance) upon each stock
exchange on which outstanding shares of the same class may then be listed.

     24.  Shareholder Approval. The Plan was submitted to the shareholders of
the Company at a meeting of shareholders held on ______ __, 2003, and was
approved by vote of the holders of a majority of shares of Common Stock voted at
such meeting.

     25.  Stock Ownership. Notwithstanding anything herein to the contrary, no
Employee shall be permitted to purchase any Common Stock under the Plan if such
Employee, immediately after such purchase, owns stock (including all Common
Stock which may be purchased under outstanding Offerings under the Plan or
outstanding options under any stock plan of the Company) possessing 5% or more
of the total combined voting power or value of all classes of Common Stock of
the Company or of its Subsidiary corporations or if such Employee, on the
Offering Date, is eligible to participate in the Conn Appliances, Inc. Amended
and Restated 2003 Incentive Stock Option Plan and is a Highly Compensated
Employee. For the foregoing purposes, the rules of Section 425(d) of the Code
shall apply in determining stock ownership. No Employee shall be included in an
Offering which permits his right to purchase Common Stock under all employee
stock purchase plans of the Company and its Subsidiaries to accrue (within the
meaning of Section 423(b)(8) of the Code) at a rate which exceeds $25,000 of
fair market value of such stock (determined at the Offering Date) for each
calendar year in which such Offering is outstanding at any time.

     26.  Purchase of Stock or Payment Upon a Change of Control.

          (a)  Change of Control. For purposes of this Plan, a Change of Control
     of the Company shall mean:

               (i)   the acquisition of the Company by another entity by means
          of any transaction or series of related transactions (including,
          without limitation, any reorganization, merger or consolidation, but
          excluding any merger effected

                                       7

<PAGE>

          primarily for the purpose of changing the domicile of the Company),
          unless the Company's shareholders of record as constituted immediately
          prior to such transaction or series of related transactions will,
          immediately after such transaction or series of related transactions
          hold at least a majority of the voting power of the surviving or
          acquiring entity;

               (ii)  a sale of all or substantially all of the assets of the
          Company; or

               (iii) a liquidation or dissolution of the Company.

          (b)  Upon the occurrence of a Change of Control, unless otherwise
     determined by the Committee prior to such Change of Control:

               (i)   for purposes of the definition set forth in Paragraph 12
          for determining the purchase price for shares of Common Stock under an
          Offering and the purchase of such stock under such Offering, the
          Purchase Date shall be the date on which the Change of Control occurs,
          the Purchase Period shall terminate thirty (30) days following such
          Purchase Date, the Alternate Offering Price shall be ascertained as of
          such Purchase Date, and the each Participant's Plan Account shall be
          totaled as of such Purchase Date; and

               (ii)  each Participant who is actively employed, as defined in
          Paragraph 6, shall have the right, for a period of thirty (30) days
          following the Change of Control, to prepay the Payroll Deductions
          equal to a dollar amount. The required amount shall be determined by
          multiplying the amount which would otherwise be withheld from each
          paycheck, by the number of remaining payroll periods in the Offering
          Period. Partial prepayments will not be permitted. Each such
          Participant may elect by submitting a notice thereof in writing to the
          Chief Financial Officer of the Company, or if a Participant does not
          make the election described in Paragraph 26(c)(i), shall be deemed to
          have elected, to purchase, as of the Purchase Date, the number of
          shares which may be purchased with funds accumulated in the
          Participant's Plan Account plus any funds paid on or before the end of
          the Purchase Period, at the lower of the Initial Offering Price or the
          Alternate Offering Price, all as defined in Paragraph 12. A stock
          certificate representing such shares shall be issued to the
          Participant no later than fifteen (15) days following such election.

          (c)  If the Committee so determines prior to or during the thirty (30)
     day period following the occurrence of a Change of Control:

               (i)   Participants shall have the right to require the Company to
          refund to the Participant the balance of the Participant's Plan
          Account within sixty (60) days following the occurrence of a Change of
          Control.

               (ii)  If a Participant requires the Company to refund the
          Participant's Plan Account pursuant to Paragraph 26(c)(i), the Company
          shall refund to such employee the balance of the Participant's Plan
          Account, as soon as administratively practical following such notice
          of refund.

                                       8

<PAGE>

     27.  Indemnification of the Committee. Service on the Committee shall
constitute service as a member of the Board and members of the Committee shall
be entitled to indemnification, advancement of expenses and reimbursements as
directors of the Company pursuant to its Articles of Incorporation, Bylaws,
resolutions of the Board, agreement with the Company or otherwise.

                                       9

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