<PAGE>

                                                                    Exhibit 10.5

                               TWI HOLDINGS, INC.

                             2002 STOCK OPTION PLAN

<PAGE>

                                Table of Contents

1.  Purpose                                                                    1

2.  Definitions                                                                1

3.  Term of the Plan                                                           2

4.  Stock Subject to the Plan                                                  2

5.  Administration                                                             3

6.  Eligibility:  Maximum Grant Per Individual                                 3

7.  Time of Granting Options                                                   3

8.  Option Price                                                               3

9.  Option Period                                                              4

10. Limit on Incentive Option Characterization                                 4

11. Exercise of Option                                                         4

12. Restrictions on Issue of Shares                                            5

13. Purchase for Investment; Subsequent Registration                           5

14. Withholding; Notice of Disposition of Stock
    Prior to Expiration of Specified Holding Period                            6

15. Termination of Association with the Company                                7

16. Transferability of Options                                                 7

<PAGE>

                                      -ii-

17. Adjustments for Corporate Transactions                                     7

18. Reservation of Stock                                                       8

19. Limitation of Rights in Stock;
    No Special Employment or Other Rights                                      8

20. Nonexclusivity of the Plan                                                 9

21. Termination and Amendment of the Plan                                      9

22. Notices and Other Communications                                           9

23. Governing Law                                                              9

<PAGE>

                               TWI HOLDINGS, INC.

                             2002 STOCK OPTION PLAN

1.   Purpose

     This Plan is intended to encourage ownership of Stock by employees,
directors and consultants of the Company and its Affiliates and to provide
additional incentives for them to promote the success of the Company's business.
The Plan is intended to be an incentive stock option plan within the meaning of
Section 422 of the Code but not all Options granted hereunder are required to be
Incentive Options.

2.   Definitions

     As used in this Plan the following terms shall have the following meanings:

     2.1.  Act means the Securities Act of 1933, as amended.

     2.2.  Affiliate means a parent or subsidiary corporation of the Company, as
defined in Sections 424(e) and (f), respectively, of the Code.

     2.3.  Board means the Company's Board of Directors.

     2.4.  Code means the Internal Revenue Code of 1986, as amended from time to
time, or any statute successor thereto, and any regulations issued from time to
time thereunder.

     2.5.  Committee means a committee appointed by the Board, responsible for
the administration of the Plan, as provided in Section 5 of the Plan. No member
of the Committee shall be eligible to receive an Incentive Option under the
Plan, and no individual shall be eligible for membership on the Committee within
one year of having received an Incentive Option under the Plan. For any period
during which no Committee is in existence, all authority and responsibility
assigned to the Committee under the Plan shall be exercised, if at all, by the
Board.

     2.6.  Company means TWI Holdings, Inc., a corporation organized under the
laws of the State of Delaware.

     2.7.  Employment Agreement means an agreement, if any, between the Company
and an Optionee, setting forth, inter alia, conditions and restrictions upon the
transfer of shares of Stock.

     2.8.  Fair Market Value means the value of a share of Stock on any date as
determined by the Committee.

     2.9.  Grant Date means the date as of which an Option is granted, as
determined under Section 7.

     2.10. Incentive Option means an Option which by its terms is to be treated
as an "incentive stock option" within the meaning of Section 422 of the Code.

<PAGE>


     2.11. Nonstatutory Option means any Option that is not an Incentive Option.

     2.12. Option means an option to purchase shares of Stock granted under the
Plan.

     2.13. Option Agreement means an agreement between the Company and an
Optionee, setting forth the terms and conditions of an Option.

     2.14. Option Price means the price paid by an Optionee for a share of Stock
upon exercise of an Option.

     2.15. Optionee means a person eligible to receive an Option, as provided in
Section 6, to whom an Option shall have been granted under the Plan.

     2.16. Plan means this 2002 Stock Option Plan of the Company, as amended
from time to time.

     2.17. Stock means Class B Common Stock, par value $.01 per share, of the
Company.

     2.18. Stock Restriction Agreement means an agreement between the Company
and the Optionee in such form as the Committee may prescribe in connection with
the grant of any Option, setting forth certain restrictions upon the transfer of
shares of Stock.

     2.19. Ten Percent Owner means a person who owns, or is deemed within the
meaning of Section 422(b)(6) of the Code to own, stock possessing more than 10%
of the total combined voting power of all classes of stock of the Company (or
any Affiliate). Whether a person is a Ten Percent Owner shall be determined with
respect to each Option based on the facts existing immediately prior to the
Grant Date of such Option.

3.   Term of the Plan

     Options may be granted hereunder at any time in the period commencing on
the adoption of the Plan by the Board and ending immediately prior to the tenth
anniversary of the earlier of the adoption of the Plan by the Board or approval
of the Plan by the Company's shareholders. Options granted prior to shareholder
approval of the Plan are hereby expressly conditioned upon such approval, and
shall be void ab initio in the event the shareholders of the Company shall fail
to approve the Plan within twelve (12) months of the Board's approval of the
Plan.

4.   Stock Subject to the Plan

     At no time shall the number of shares of Stock then outstanding which are
attributable to the exercise of Options granted under the Plan, plus the number
of shares then issuable upon exercise of outstanding Options granted under the
Plan, exceed 18,871.14 shares, subject, however, to the provisions of Section 17
of the Plan. Shares to be issued upon the exercise of Options granted under the
Plan may be either authorized but unissued shares or shares held by the Company
in its treasury. If any Option expires, terminates, or is canceled for any
reason without having been exercised in full, the shares not purchased
thereunder shall again be available for Options thereafter to be granted.

                                       -2-

<PAGE>

5.   Administration

     The Plan shall be administered by the Committee. Subject to the provisions
of the Plan, the Committee shall have complete authority, in its discretion, to
make or to select the manner of making the following determinations with respect
to each Option to be granted by the Company in addition to any other
determination allowed the Committee under the Plan: (a) the employee, director
or consultant to receive the Option; (b) whether the Option (if granted to an
employee) will be an Incentive Option or Nonstatutory Option; (c) the Grant Date
of the Option; (d) the number of shares subject to the Option; (e) the Option
Price; (f) the Option period; (g) the Option exercise date or dates; (h) any
provisions for the loan of all or part of the Option Price; and (i) the effect
of termination of employment or other association with the Company and its
Affiliates on the subsequent exercisability of the Option. In making such
determinations, the Committee may take into account the nature of the services
rendered by the respective employees and consultants, their present and
potential contributions to the success of the Company and its subsidiaries, and
such other factors as the Committee in its discretion shall deem relevant.
Subject to the provisions of the Plan, the Committee shall also have complete
authority to interpret the Plan, to prescribe, amend and rescind rules and
regulations relating to it, to determine the terms and provisions of the
respective Option Agreements (which need not be identical), and to make all
other determinations necessary or advisable for the administration of the Plan.
The Committee's determinations made in good faith on matters referred to in this
Plan shall be conclusive.

6.   Eligibility: Maximum Grant Per Individual

     An Option shall be granted only to an employee, director or consultant of
one or more of the Company or an Affiliate. A director of one or more of the
Company or any Affiliate who is not also an employee of one or more of the
Company or an Affiliate shall not be eligible to receive an Incentive Option. In
no event shall the number of shares with respect to which Options may be granted
hereunder to any one individual exceed sixty-six and two-thirds percent (66
2/3%) of the number of shares of Stock subject to the Plan as set forth in
Section 4, as the same may be adjusted from time to time in accordance with
Section 17.

7.   Time of Granting Options

     The granting of an Option shall take place at the time specified in the
Option Agreement. Only if expressly so provided in the Option Agreement shall
the Grant Date be the date on which an Option Agreement shall have been duly
executed and delivered by the Company and the Optionee.

8.   Option Price

     The Option Price under each Incentive Option shall be not less than 100% of
the Fair Market Value of Stock on the Grant Date, or not less than 110% of the
Fair Market Value of Stock on the Grant Date if the Optionee is a Ten Percent
Owner. The Option Price under each Nonstatutory Option shall not be so limited
solely by reason of this Section 8.

                                       -3-

<PAGE>

9.   Option Period

     No Incentive Option may be exercised on or after the tenth anniversary of
the Grant Date, or on or after the fifth anniversary of the Grant Date, if the
Optionee is a Ten Percent Owner. The Option period under each Nonstatutory
Option shall not be so limited solely by reason of this Section 9. An Option may
be immediately exercisable or become exercisable in such installments,
cumulative or non-cumulative, as the Committee may determine. In the case of an
Option not otherwise immediately exercisable in full, the Committee may
accelerate the exercisability of such Option in whole or in part at any time,
provided the acceleration of the exercisability of any Incentive Option would
not cause the Option to fail to comply with the provisions of Section 422 of the
Code.

10.  Limit on Incentive Option Characterization

     An Incentive Option shall be considered to be an Incentive Option only to
the extent that the number of shares of Stock for which the Option first becomes
exercisable in a calendar year do not have an aggregate Fair Market Value (as of
the date of the grant of the Option) in excess of the "current limit". The
current limit for any Optionee for any calendar year shall be $100,000 minus the
aggregate Fair Market Value at the Grant Date of the number of shares of Stock
available for purchase for the first time in the same year under each other
Incentive Option previously granted to the Optionee under the Plan, and under
each other incentive stock option previously granted to the Optionee under any
other incentive stock option plan of the Company and its Affiliates, after
December 31, 1986. Any shares of Stock which would cause the foregoing limit to
be violated shall be deemed to have been granted under a separate Nonstatutory
Option, otherwise identical in its terms to those of the Incentive Option.

11.  Exercise of Option

     An Option may be exercised by the Optionee giving written notice, in the
manner provided in Section 22, specifying the number of shares with respect to
which the Option is then being exercised. The notice shall be accompanied by
payment in the form of cash, or certified or bank check payable to the order of
the Company in an amount equal to the Option Price of the shares to be purchased
or, if the Committee had so authorized on the grant of any particular Option
hereunder (and subject to such conditions, if any, as the Committee may deem
necessary to avoid adverse accounting effects to the Company) by delivery of
that number of shares of Stock having a Fair Market Value equal to the Option
Price of the shares to be purchased. Receipt by the Company of such notice and
payment shall constitute the exercise of the Option. Within 30 days thereafter
but subject to the remaining provisions of the Plan, the Company shall deliver
or cause to be delivered to the Optionee or his agent a certificate or
certificates for the number of shares then being purchased. Such shares shall be
fully paid and nonassessable. Nothing herein shall be construed to preclude the
Company from participating in a so-called "cashless exercise", provided the
Optionee or other person exercising the Option and each other party involved in
any such exercise shall comply with such procedures, and enter into such
agreements, of indemnity or otherwise, as the Company shall specify.

                                       -4-

<PAGE>

12.  Restrictions on Issue of Shares

     12.1. Violation of Law. Notwithstanding any other provision of the Plan,
if, at any time, in the reasonable opinion of the Company the issuance of shares
of Stock covered by the exercise of any Option may constitute a violation of
law, then the Company may delay such issuance and the delivery of a certificate
for such shares until (i) approval shall have been obtained from such
governmental agencies, other than the Securities and Exchange Commission, as may
be required under any applicable law, rule, or regulation; and (ii) in the case
where such issuance would constitute a violation of a law administered by or a
regulation of the Securities and Exchange Commission, one of the following
conditions shall have been satisfied:

           (a)  the shares with respect to which such Option has been exercised
are at the time of the issuance of such shares effectively registered under the
Act; or

           (b)  the Company shall have received an opinion, in form and
substance satisfactory to the Company, from the Company's legal counsel to the
effect that the sale, transfer, assignment, pledge, encumbrance or other
disposition of such Shares or such beneficial interest, as the case may be, does
not require registration under the Act or any applicable state securities laws.

The Company shall make all  reasonable  efforts to bring about the occurrence of
said events.

     12.2. Execution of Stock Restriction Agreement; Interpretation. Whenever
shares are to be issued pursuant to an Option, the Company shall be under no
obligation to issue such shares until such time, if ever, as the person who
exercises such Option, in whole or in part, shall have executed and delivered to
the Company the Stock Restriction Agreement specified by the Committee in
connection with the grant of such Option, if any. In the event of any conflict
between the provisions of this Plan and provisions of a Stock Restriction
Agreement or Employment Agreement, the provisions of the Stock Restriction
Agreement or Employment Agreement shall control, but insofar as possible the
provisions of the Plan and any such Stock Restriction Agreement or Employment
Agreement shall be construed so as to give full force and effect to all such
provisions.

     12.3. Placement of Legends. Each certificate representing shares issued
upon the exercise of an Option will bear restrictive legends which may refer to
applicable restrictions under the Stock Restriction Agreement and Employment
Agreement, if any.

13.  Purchase for Investment; Subsequent Registration

     13.1. Investment Representation. Unless the shares to be issued upon
exercise of an Option granted under the Plan have been effectively registered
under the Act, the Company shall be under no obligation to issue any shares
covered by any Option unless the person who exercises such Option, in whole or
in part, shall give a written representation to the Company which is
satisfactory in form and substance to its counsel and upon which the Company may
reasonably rely, that he or she is acquiring the shares issued pursuant to such
exercise of the Option on his or her own account for the purpose of investment
and not with a view to, or for sale in connection with, the distribution of any
such shares.

                                       -5-

<PAGE>

     13.2. Registration. If the Company shall deem it necessary or desirable to
register under the Act or other applicable statutes any shares with respect to
which an Option shall have been granted, or to qualify any such shares for
exemption from the Act or other applicable statutes, then the Company shall take
such action at its own expense. The Company may require from each Option holder,
or each holder of shares of Stock acquired pursuant to the Plan, such
information in writing for use in any registration statement, prospectus,
preliminary prospectus or offering circular as is reasonably necessary for such
purpose and may require reasonable indemnity to the Company and its officers and
directors from such holder against all losses, claims, damage and liabilities
arising from such use of the information so furnished and caused by any untrue
statement of any material fact therein or caused by the omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances under which they were
made. In addition, the Company may require of any such person that he or she
agree that, without the prior written consent of the Company or such managing
underwriter, he or she will not sell, make any short sale of, loan, grant any
option for the purchase of, pledge or otherwise encumber, or otherwise dispose
of, any shares of Stock during the 180 day period commencing on the effective
date of the registration statement relating to such underwritten public offering
of securities.

     13.3. Placement of Legends; Stop Orders; etc. Each share of Stock issued
pursuant to an Option granted under this Plan may bear a reference to the
investment representation made in accordance with Section 13.1 in addition to
any other applicable restriction under the Plan and the terms of the Option and
to the fact that no registration statement has been filed with the Securities
and Exchange Commission in respect to said Stock. All certificates for shares of
Stock or other securities delivered under the Plan shall be subject to such
stock-transfer orders and other restrictions as the Committee may deem advisable
under the rules, regulations, and other requirements of any stock exchange upon
which the Stock is then listed, and any applicable federal or state securities
law, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

14.  Withholding; Notice of Disposition of Stock
     Prior to Expiration of Specified Holding Period

     14.1. Tax Withholding. Whenever shares are to be issued in satisfaction of
an Option granted hereunder, the Company shall have the right to require the
Optionee to remit to the Company an amount sufficient to satisfy federal, state,
local or other withholding tax requirements if and to the extent required by law
(whether so required to secure for the Company an otherwise available tax
deduction or otherwise) prior to the delivery of any certificate or certificates
for such shares.

     14.2. Notification of Disposition. Each person exercising any Incentive
Option granted under the Plan shall be deemed to have covenanted with the
Company to report to the Company any disposition of such shares prior to the
expiration of the holding periods specified by Section 422(a)(1) of the Code
and, if and to the extent that the realization of income in such a disposition
imposes upon the Company federal, state, local or other withholding tax
requirements, or any such withholding is required to secure for the Company an
otherwise available tax deduction, to remit to the Company an amount in cash
sufficient to satisfy those requirements.

                                       -6-

<PAGE>

15.  Termination of Association with the Company

     Unless the Committee shall specify otherwise in the grant of a particular
Option under the Option Agreement, if the Optionee's employment or other
association with the Company is terminated, whether voluntarily or otherwise,
the Option shall immediately cease to be exercisable in any respect. Military or
sick leave shall not be deemed a termination of employment or other association,
provided that it does not exceed the longer of 90 days or the period during
which the absent Optionee's reemployment rights, if any, are guaranteed by
statute or by contract.

16.  Transferability of Options

     Options shall not be transferable, other than by will or the laws of
descent and distribution, and may be exercised during the life of the Optionee
only by the Optionee.

17.  Adjustments for Corporate Transactions

     17.1. Stock Dividend, Etc. In the event of any stock dividend payable in
Stock or any split-up or contraction in the number of shares of Stock after the
date of the Option Agreement and prior to the exercise in full of the Option,
the number of shares subject to such Option Agreement and the price to be paid
for each share subject to the Option shall be proportionately adjusted.

     17.2. Stock Reclassification. In the event of any reclassification or
change of outstanding shares of Stock, shares of stock or other securities
equivalent in kind and value to those shares an Optionee would have received if
he or she had held the full number of shares of Stock subject to the Option
immediately prior to such reclassification or change and had continued to hold
those shares (together with all other shares, stock and securities thereafter
issued in respect thereof) to the time of the exercise of the Option shall
thereupon be subject to the Option.

     17.3. Consolidation or Merger. Subject to the remainder of this Section
17.3, in the event of any consolidation or merger of the Company with or into
another company or in case of any sale or conveyance to another company or
entity of the property of the Company as a whole or substantially as a whole,
shares of stock or other securities equivalent in kind and value to those shares
and other securities an Optionee would have received if he or she had held the
full number of shares of Stock remaining subject to the Option immediately prior
to such consolidation, merger, sale or conveyance and had continued to hold
those shares (together with all other shares, stock and securities thereafter
issued in respect thereof) to the time of the exercise of the Option shall
thereupon be subject to the Option. However, unless any Option Agreement shall
provide different or additional terms, in any such transaction the Committee, in
its discretion, may provide instead that any outstanding Option shall terminate,
to the extent not exercised by the Optionee prior to termination, either (a) at
the close of a period of not less than ten (10) days specified by the Committee
and commencing on the Committee's delivery of written notice to the Optionee of
its decision to terminate such Option without payment of consideration as
provided in the following clause or (b) as of the date of the transaction, in
consideration of the Company's payment to the Optionee of an amount of cash
equal to the difference between the aggregate Fair Market Value of the shares of
Stock for which the Option is then exercisable and the aggregate exercise price
for such shares under the Option.

                                       -7-

<PAGE>

     17.4. Dissolution or Liquidation. Upon dissolution or liquidation of the
Company, the Option shall terminate, but the Optionee (if at the time in the
employ of or otherwise associated with the Company or any of its Affiliates)
shall have the right, immediately prior to such dissolution or liquidation, to
exercise the Option to the extent exercisable on the date of such dissolution or
liquidation.

     17.5. Related Matters. Any adjustment required by this Section 17 shall be
determined and made by the Committee. No fraction of a share shall be
purchasable or deliverable upon exercise, but in the event any adjustment
hereunder of the number of shares covered by the Option shall cause such number
to include a fraction of a share, such number of shares shall be adjusted to the
nearest smaller whole number of shares. In the event of changes in the
outstanding Stock by reason of any stock dividend, split-up, contraction,
reclassification, or change of outstanding shares of Stock of the nature
contemplated by this Section 17, the number of shares of Stock available for the
purposes of the Plan as stated in Section 4 shall be correspondingly adjusted.

18.  Reservation of Stock

     The Company shall at all times during the term of the Plan and any
outstanding Options granted hereunder reserve or otherwise keep available such
number of shares of Stock as will be sufficient to satisfy the requirements of
the Plan (if then in effect) and such Options and shall pay all fees and
expenses necessarily incurred by the Company in connection therewith.

19.  Limitation of Rights in Stock;
     No Special Employment or Other Rights

     The Optionee shall not be deemed for any purpose to be a stockholder of the
Company with respect to any of the shares of Stock covered by an Option, except
to the extent that the Option shall have been exercised with respect thereto
and, in addition, a certificate shall have been issued therefor and delivered to
the Optionee or his agent. Any Stock issued pursuant to the Option shall be
subject to all restrictions upon the transfer thereof which may be now or
hereafter imposed by the Certificate of Incorporation, the By-laws of the
Company, the Stock Restriction Agreement and the Employment Agreement. Nothing
contained in the Plan or in any Option shall confer upon any Optionee any right
with respect to the continuation of his or her employment or other association
with the Company (or any Affiliate), or interfere in any way with the right of
the Company (or any Affiliate), subject to the terms of any separate employment
or consulting agreement or provision of law or corporate articles or by-laws to
the contrary, at any time to terminate such employment or consulting agreement
or to increase or decrease the compensation of the Optionee from the rate in
existence at the time of the grant of an Option.

20.  Nonexclusivity of the Plan

     Neither the adoption of the Plan by the Board nor the submission of the
Plan to the shareholders of the Company shall be construed as creating any
limitations on the power of the Board to adopt such other incentive arrangements
as it may deem desirable, including without limitation, the granting of stock
options other than under the Plan, and such arrangements may be either
applicable generally or only in specific cases.

                                       -8-

<PAGE>

21.  Termination and Amendment of the Plan

     The Board may at any time terminate the Plan or make such modifications of
the Plan as it shall deem advisable. No termination or amendment of the Plan
may, without the consent of the Optionee to whom any Option shall theretofore
have been granted, adversely affect the rights of such Optionee under such
Option.

22.  Notices and Other Communications

     Any notice, demand, request or other communication hereunder to any party
shall be deemed to be sufficient if contained in a written instrument delivered
in person or duly sent by first class registered, certified or overnight mail,
postage prepaid, or telecopied with a confirmation copy by regular, certified or
overnight mail, addressed or telecopied, as the case may be, (i) if to the
Optionee, at his or her residence address last filed with the Company and (ii)
if to the Company, 1713 Jaggie Fox Way, Lexington, KY 40511, Attention:
President, or to such other address or telecopier number, as the case may be, as
the addressee may have designated by notice to the addressor. All such notices,
requests, demands and other communications shall be deemed to have been
received: (i) in the case of personal delivery, on the date of such delivery;
(ii) in the case of mailing, when received by the addressee; and (iii) in the
case of facsimile transmission, when confirmed by facsimile machine report.

23.  Governing Law

     The Plan and all Options and actions taken thereunder shall be governed,
interpreted and enforced in accordance with the laws of the State of Delaware,
without regard to the conflict of laws principles thereof.

                     * ---------------- * ---------------- *

The following does not form part of this Plan but is included solely for
informational purposes:

           Date of Board Approval:     November 1, 2002
     Date of Shareholder Approval:     November 1, 2002

                                       -9-