Document:

Official Translation of
                               Principle Agreement

The private company "Thomas Regout  International BV", according to its Articles
of  Association  with its corporate  seat in  Maastricht,  hereinafter:  "Thomas
Regout  International",  in the  present  matter  duly  represented  by Mr. W.J.
Dammers.

and

the public law entity, the municipality of Maastricht,  with seat in Maastricht,
hereinafter: "the Municipality",  in the present matter duly represented by: Mr.
Ph.J.I.M. Houben.

Whereas

Thomas Regout International is the legal owner of several parcels of land on the
"Bosscherveld" industrial estate in Maastricht;

The  Municipality  requires  the title to these  parcels  and others in order to
realize the transformation process of the west bank of the Maas;

Thomas Regout International is willing to transfer the title of these parcels to
the Municipality,  if and to the extent that it is paid a realistic market price
and is given the opportunity to relocate to an alternative  industrial property,
and if the  relocation  can be  arranged  in  such a way as not to  disrupt  its
production process.

Do hereby agree as follows:

A.   The sale of the  parcels  of land  currently  belonging  to  Thomas  Regout
     International

Article 1: The sale of the parcels of land currently  belonging to Thomas Regout
           International

     1.1  Thomas Regout International  hereby sells to the Municipality,  in the
          same way that the  Municipality  hereby  purchases  from Thomas Regout
          International,  the parcels of property  known at the Land Registry as
          Municipality  of  Maastricht,  section H,  number  2597,  measuring  2
          hectares, 89 ares and 65 centiares,  section D, number 3877, measuring
          8 ares  and 50  centiares,  both  parcels  known  locally  as no.  40,
          Industrieweg,  and section H,  number  2555,  measuring  93 ares and 9
          centiares,  known  locally  as  no.  41-43,  Sandersweg,   hereinafter
          jointly: "the property".

     1.2  The  Municipality  of  Maastricht  intends to use the property for the
          transformation  process  of the west bank of the Maas,  in  connection
          with  which the  Municipality  of  Maastricht  will enter into a joint
          venture with Stichting  Bedrijfspensioenfonds  voor de  Bouwnijverheid
          and ING Vastgoed.  Thomas Regout International does not object to this
          proposed use, to the extent it will not affect its business operations
          on its present location, or the orderly relocation of that business.

Article 2: The purchase price

     2.1  The  purchase  price of the  property is NLG  25,000,000  (twenty-five
          million Dutch  guilders) (EUR  11.344.505,40).  The costs of transfer,
          including the taxes due to the delivery and obtaining of the premises,
          will  be paid  by the  Municipality.  In  case  VAT is due  above  the
          purchase  price,  it is  expressly  agreed that the taxes due includes
          VAT.

     2.2  The Municipality will pay this purchase price on the Date of Transfer.

Article 3: The deed of delivery

     3.1  The  property  will  be  delivered  beneficially  and  legally  to the
          Municipality.  Delivery  expressly does not include the Sold machinery
          on location,  company  installations  and  inventory,  among which the
          supplementary  materials  should be included as  mentioned  in article
          3.254 Civil Code. The purchase price does not include any compensation
          for  the  Sold  machinery  on  location,   company  installations  and
          inventory.  In as far  as  the  machinery,  company  installments  and
          inventory fall under  property,  they will be expressly  excluded from
          the economic transfer.

     3.2  The deed of delivery of the property  will be executed  before a civil
          law  notary to be  designated  by the  Municipality  at the  latest on
          December 30, 2001, hereinafter: "Date of Transfer".

Article 4: The condition of the property upon transfer of the economic ownership

     4.1  The property  will be delivered on the Date of the  Transfer,  free of
          mortgages  and  attachments,  but  including any other real rights and
          qualitative obligations with which the parcels may be charged.

Article 5:  Continued  use by lease

     5.1  After the Date of Transfer,  Thomas Regout  International  will remain
          authorized to continue  using the property by lease until December 31,
          2005  or  such  later  date  as  is   necessary   for  Thomas   Regout
          International's  Alternative Parcel to be ready for occupancy,  plus a
          reasonable period for relocating its business activities.

     5.2  Thomas  Regout has to pay for the continue  use of the property  after
          the Date of  Transfer a sum of NLG 11,02  (EUR 5,00) per month,  added
          with VAT.

          Two  years  after  the  property  is ready  for  construction  work to
          commence  and the permits and  licenses  for the new  premises  become
          final, especially the building and environmental permits and licenses,
          the rent is  increased  to a sum of NLG 100,000  (EUR  45.378,02)  per
          month, added with VAT, for the continued use of the property.

          Subsequently each six months the rent per month will be increased with
          NLG 50.000,-- (EUR  22.689,01),  added with VAT, till a maximum of NLG
          250.000,-- (EUR 113.445,05) rent per month.

     5.3  As long as Thomas Regout  International  continues using the property,
          its  entire  maintenance  will be for  Thomas  Regout  International's
          account.  Thomas  Regout  International  must keep the  property  in a
          satisfactory  state  of  maintenance  until  the  date on  which it is
          vacated.

     5.4  All real charges,  taxes  (including  the property tax payable by both
          the user and the owner) and  insurance  payable  during the  continued
          use,  until the date on which the  property  is  vacated,  will be for
          account of Thomas Regout International.

     5.5  As long as Thomas Regout  International  continues using the property,
          the  Municipality is authorized to obtain access in consultation  with
          Thomas Regout  International,  in order to conduct  studies to prepare
          the property for the future use proposed by the  Municipality,  to the
          extent  these  studies do not damage the  property  and do not disrupt
          Thomas Regout International's production process.

Article 6:  After  lease  termination  of the  Property  continuing  use for the
            purpose of the production and storage of curtain rails

     6.1  Thomas Regout  International  is using part of the property  measuring
          circa 5,500 sq.m.  for the  purpose of the  production  and storage of
          curtain  rails.  After  termination of the use as described in article
          5.1, Thomas Regout  International  will be entitled to continue to use
          by rent that  part of the  property  for this  purpose  until  further
          notice.

     6.2  Thomas Regout  International  has to pay for the continuing use of the
          property  measuring  5,500 sq.m.  from the date of  termination of the
          lease with respect to the whole  premises as described in article 5.1.
          a rent of NLG 11,02 (EUR 5,00), added with VAT.

     6.3  Thomas  Regout   International   must  give  one  month's   notice  of
          termination.  The  Municipality  must  give  nine  month's  notice  of
          termination. Either way notice of termination must be given in writing
          and can be done without reason.

     6.4  As long as Thomas Regout International continues using the part of the
          property of 5.500 sq.m up to the actual  hand-over of this part of the
          property,   its  entire   maintenance   will  be  for  Thomas   Regout
          International account. All real charges, taxes (including the property
          tax  payable  by both the user and the owner)  and  insurance  payable
          during the  continued  use,  until the date on which the  property  is
          vacated, will be for account of the Municipality.

Article 7: Actual hand-over of the property at the end of the continued use

     7.1  Thomas  Regout  International  will  hand  over  the  property  to the
          Municipality  empty and vacated,  and free of tenancies  and/or use at
          the end of the  continued  use,  herein:  "vacated".  If Thomas Regout
          International  opts of its right of  continued  use of the part of the
          property as described in Article 6.1. Thomas Regout  International  is
          only obliged to actual  hand-over  this part if the right of continued
          use is ended .

     7.2  Thomas  Regout  International  will  hand  over  the  property  to the
          Municipality   with   its   fixtures.   Nonetheless,   Thomas   Regout
          International will be authorized to remove from the property any items
          which it needs for its business operations at the end of the continued
          use as described in Article 5.1. and/or Article 6.1., whereupon Thomas
          Regout  International  will not be  required to adjust any costs or to
          pay the Municipality any compensation whatsoever.

Article 8: Soil contamination

     8.1  The  Municipality  declares  that it is aware of the use which  Thomas
          Regout  International  and/or any allied companies currently makes and
          has made of the  property  in the past,  and that it has taken note of
          the soil  inspection  reports,  as  mentioned  in detail in the letter
          dated December 14th, 2001 and in particular the `Nader  bodemonderzoek
          TR-1 te Maastricht' of November 20, 1998, drawn up by Tebodin B.V.

     8.2  The Municipality hereby accepts the property together with the present
          soil contamination,  and any soil contamination which may be caused by
          Thomas  Regout  International's  and/or  any allied  companies  normal
          business operations.

     8.3  Thomas Regout International and/or any allied companies is only liable
          for   contamination   and  required  to   compensate   the   resulting
          decontamination  costs,  if  there  is  question  of  a  serious  soil
          contamination  within the  meaning  of the `Wet  Bodemverontreiniging'
          [the Dutch Soil  contamination  Act] which is caused after the signing
          date of the  present  agreement  as a result  of a  deliberate  act or
          omission by Thomas  Regout  International  and/or of  violation of the
          environmental  permit and which is such that decontamination is urgent
          on the basis of the current use of the property.

     8.4  The Municipality will indemnify Thomas Regout International and/or any
          allied  companies  against  liability for existing soil  contamination
          against thirds, the Kingdom of the Netherlands included.

B.     Alternative location

Article 9: The sale

     9.1  The  Municipality  will offer Thomas Regout  International a parcel of
          land on the industrial estate on the "Eijsden-Maastricht"  zoning plan
          with a maximum of 4 hectares, as marked as a hatched area in detail on
          the site plan annexed hereto as annex 1 (hereinafter: "the Alternative
          Parcel").

     9.2  Upon first  request of Thomas  Regout the parties will fix the precise
          location of the  Alternative  Parcel by joint consent,  taking account
          not only of the expected  layout and the schedule of  requirements  of
          the new Thomas  Regout  International  premises but also the extent in
          which the remaining area can be usefully parceled out. In any case, it
          will be an unbroken parcel that will not be separated by a road.

     9.3  The Alternative  Parcel will be delivered ready for construction  work
          to commence and will also be environmentally  suited for Thomas Regout
          International proposed industrial use.

     9.4  The Alternative  Parcel will be bought in the expectation  that Thomas
          Regout   International  and/or  any  allied  companies  will  use  the
          alternative parcel for production purposes. If, for any reason, Thomas
          Regout  International  wishes to  dispose  of the  alternative  parcel
          before  construction  work commences,  it will be required to offer it
          first to the  Municipality  on the same financial  terms  specified in
          article 10 as those on which it acquired the  Alternative  Parcel from
          the Municipality.

     9.5  The  Alternative  Parcel will be  delivered  together  with the public
          utilities customary for this type of industrial estate.

Article 10: The Purchase price

     10.1 The purchase  price of the  Alternative  Parcel is NLG 110 (EUR 49,92)
          per m2,  excluding  VAT,  price level as of December 31, 2002.  At the
          time of the legal  transfer of the  Alternative  Parcel,  the purchase
          price  will be fixed on the basis of the  actual  surface  area  being
          offered.

     10.2 The purchase price of the Alternative  Parcel must be paid at the date
          of the Deed of Transfer of the Alternative  Parcel. The purchase price
          will be increased  with  interest at a rate of 7% per annum as soon as
          Thomas  Regout   International   acquires   irrevocable  building  and
          environmental permits and licenses,  but no earlier than as of January
          1, 2003.

Article 11: The transfer of the legal ownership

     11.1 The deed of delivery  for the  transfer of the legal  ownership of the
          Alternative   Parcel  will  be  executed  before  a  civil-law  notary
          designated by Thomas Regout  International 6 weeks after Thomas Regout
          International  acquires valid building and  environmental  permits and
          licenses  and the parcel  for the  alternative  location  is ready for
          construction work to commence.

Article 12: The development of the new Thomas Regout International premises

     12.1 Thomas  Regout  International  will  realize  its new  premises on the
          alternative parcel on the industrial estate after the notarial deed of
          delivery is executed for the property.

     12.2 Thomas Regout  International  will form a construction team to develop
          the construction  plan,  which will include a representative  from the
          Municipality.  The construction  team may not adopt resolutions on the
          development  of the  plan  and the new  premises,  and  Thomas  Regout
          International will have sole and exclusive control at all times.

          The  construction  team will discuss,  `inter alia',  which public law
          procedures   will  need  to  be  followed  for  the   development  and
          realization, and for the operation and preservation of the permits and
          licenses   necessary  for  Thomas  Regout   International's   business
          operations. This team will also discuss which planning procedures must
          be  followed  in order  to  realize  the new  premises.  The  point of
          departure for scheduling the  construction of the new premises is that
          these  premises  must have an  irrevocable  zoning  scheme,  necessary
          permits and  licenses  and  production  must be able to commence on or
          around June 30 2005.

     12.3 Thomas Regout  International will develop a plan for new construction,
          for which building and environmental  permits and licenses before July
          1, 2003. Thomas Regout  International is obliged to render without any
          delay  all  necessary  information  for the  permits  asked for to the
          Municipality upon request by the responsible civil-servant.

C.     Final provisions

Article 13: Further agreements

     13.1 The  Municipality  and Thomas Regout  International  will enter into a
          deed of delivery for the property  with due  observance of the present
          agreement.

     13.2 The  Municipality  and Thomas Regout  International  will enter into a
          deed of legal transfer for the Alternative  Parcel with due observance
          of the present agreement.

Article 14: Reservation

     14.1 Thomas Regout  International  enters into the present agreement on the
          condition  that it obtains  the  approval of its  shareholder  and the
          shareholder of Thomas Regout International Holding B.V.

     14.2 The parties are required to submit to each other the present agreement
          for approval as soon as possible after signing and to notify the other
          party of the outcome.  If either  party fails to obtain the  necessary
          approval,  the  present  agreement  will  become  ineffective  and the
          parties will jointly negotiate the new situation.

Thus done...EX-4.1

                         EMPLOYEE STOCK INCENTIVE PLAN

                         THE MAJESTIC COMPANIES, LTD.
              EMPLOYEE STOCK INCENTIVE PLAN FOR THE YEAR 2002

     1.  GENERAL PROVISIONS

     1.1  Purpose.

     The Employee Stock Incentive Plan for the Year 2002 (the "Plan") is
intended to allow designated officers, employees  and certain non-
employees (all of whom are sometimes collectively referred to herein as
"Employees") The Majestic Companies, Ltd., a Nevada corporation
("Majestic") and its Subsidiaries (as that term is defined below) which
it may have from time to time (Majestic and such Subsidiaries are
referred to herein as the "Company") to receive certain options ("Stock
Options") to purchase  Majestic common stock, one tenth of one cent
($0.001) par value ("Common Stock"), and to receive grants of Common
Stock subject to certain restrictions ("Awards").  As used in this Plan,
the term "Subsidiary" shall mean each corporation which is a "subsidiary
corporation" of Majestic within the meaning of Section 424(f) of the
Internal Revenue Code of 1986, as amended (the "Code").  The purpose of
this Plan is to provide Employees with equity-based compensation
incentives to make significant and extraordinary contributions to the
long-term growth and performance of the Company, and to attract and
retain Employees.

     1.2  Administration.

     1.2.1  The Plan shall be administered by the Compensation Committee
(the "Committee") of, or appointed by, the Board of Directors of Majestic
(the "Board").   The Committee shall select one of its members as Chair-
man and shall act by vote of a majority of a quorum, or by unanimous
written consent.  A majority of its members shall constitute a quorum.
The Committee shall be governed by the provisions of  Majestic Bylaws and
of Nevada law applicable to the Board, except as otherwise provided
herein or determined by the Board.

     1.2.2  The Committee shall have full and complete authority, in its
discretion, but subject to the express provisions of the Plan:  to
approve the Employees nominated by the management of the Company to be
granted Awards or Stock Options; to determine the number of Awards or
Stock Options to be granted to an Employee; to determine the time or
times at which Awards or Stock Options shall be granted; to establish the
terms and conditions upon which Awards or Stock Options may be exercised;
to remove or adjust any restrictions and conditions upon Awards or Stock
Options; to specify, at the time of grant, provisions relating to
exercisability of Stock Options and to accelerate or otherwise modify the
exercisability of any Stock Options; and to adopt such rules and regulations
and to make all other determinations deemed necessary or desirable for the
administration of the Plan.  All interpretations and constructions of the Plan
by the Committee, and all of its actions hereunder, shall be binding and
conclusive on all persons for all purposes.

     1.2.3  The Company hereby agrees to indemnify and hold harmless each
Committee member and each employee of the Company, and the estate and
heirs of such Committee member or employee, against all claims,
liabilities, expenses, penalties, damages or other pecuniary losses,
including legal fees, which such Committee member or employee, his or her
estate or heirs may suffer as a result of his or her responsibilities,
obligations or duties in connection with the Plan, to the extent that
insurance, if any, does not cover the payment of such items.  No member
of the Committee or the Board shall be liable for any action or
determination made in good faith with respect to the Plan or any Award or
Stock Option granted pursuant to the Plan.

     1.3  Eligibility and Participation.

     Employees eligible under the Plan shall be approved by the Committee
from those Employees who, in the opinion of the management of the
Company, are in positions which enable them to make significant contri-
butions to the long-term performance and growth of the Company.  In
selecting Employees to whom Stock Options or Awards may be granted,
consideration shall be given to factors such as employment position,
duties and responsibilities, ability, productivity, length of service,
morale, interest in the Company and recommendations of supervisors.

     1.4  Shares Subject to the Plan.

     The maximum number of shares of Common Stock that may be issued
pursuant to the Plan shall be Twenty-Five Million (25,000,000) subject to
adjustment pursuant to the provisions of paragraph 4.1.  If shares of
Common Stock awarded or issued under the Plan are reacquired by the
Company due to a forfeiture or for any other reason, such shares shall be
cancelled and thereafter shall again be available for purposes of the
Plan.  If a Stock Option expires, terminates or is cancelled for any
reason without having been exercised in full, the shares of Common Stock
not purchased thereunder shall again be available for purposes of the Plan.

     2.  PROVISIONS RELATING TO STOCK OPTIONS

     2.1  Grants of Stock Options.

     The Committee may grant Stock Options in such amounts, at such
times, and to such Employees nominated by the management of the Company
as the Committee, in its discretion, may determine.   Stock Options
granted under the Plan shall constitute "incentive stock options" within
the meaning of Section 422 of the Code, if so designated by the Committee
on the date of grant.  The Committee shall also have the discretion to
grant Stock Options which do not constitute incentive stock options, and
any such Stock Options shall be designated non-statutory stock options by
the Committee on the date of grant.  The aggregate fair market value
(determined as of the time an incentive stock option is granted) of the
Common Stock with respect to which incentive stock options are exercis-
able for the first time by any Employee during any one calendar year
(under all plans of the Company and any parent or subsidiary of the
Company) may not exceed the maximum amount permitted under Section 422 of
the Code (currently one hundred thousand dollars ($100,000.00)).  Non-
statutory stock options shall not be subject to the limitations relating
to incentive stock options contained in the preceding sentence.  Each
Stock Option shall be evidenced by a written agreement (the "Option
Agreement") in a form approved by the Committee, which shall be executed
on behalf of the Company and by the Employee to whom the Stock Option is
granted, and which shall be subject to the terms and conditions of this
Plan.  In the discretion of the Committee, Stock Options may include
provisions (which need not be uniform), authorized by the Committee in
its discretion, that accelerate an Employee's rights to exercise Stock
Options following a "Change in Control," upon termination of such
Employee employment by the Company without "Cause" or by the Employee for
"Good Reason," as such terms are defined in paragraph 3.1 hereof.  The
holder of a Stock Option shall not be entitled to the privileges of stock
ownership as to any shares of Common Stock not actually issued to such holder.

     2.2  Purchase Price.

     The purchase price ("Exercise Price") of shares of Common Stock
subject to each Stock Option ("Option Shares") shall be seventy-five
percent (75%) of the fair market value of the Common Stock on the date of
exercise.  For an employee holding greater than ten percent (10%) of the
total voting power of all stock of the Company, either Common or
Preferred, the Exercise Price of an incentive stock option shall be at
least one hundred and ten percent (110%) of the fair market value of the
Common Stock on the date of the grant of the option.

     2.3  Option Period.

     The Stock Option period (the "Term") shall commence on the date of
grant of the Stock Option and shall be ten (10) years or such shorter
period as is determined by the Committee.    Each Stock Option shall
provide that it is exercisable over its term in such periodic
installments as the Committee in its sole discretion may determine.  Such
provisions need not be uniform.  Section 16(b) of the Exchange Act
exempts persons normally subject to the reporting requirements of Section
16(a) of the Exchange Act ("Section 16 Reporting Persons") pursuant to a
qualified employee stock option plan from the normal requirement of not
selling until at least six (6) months and one day from the date the Stock
Option is granted.

     2.4  Exercise of Options.

     2.4.1  Each Stock Option may be exercised in whole or in part (but not
as to fractional shares) by delivering it for surrender or endorsement to
the Company, attention of the Corporate Secretary, at the principal
office of the Company, together with payment of the Exercise Price and an
executed Notice and Agreement of Exercise in the form prescribed by
paragraph 2.4.2.  Payment may be made (i) in cash, (ii) by cashier's or
certified check, (iii) by surrender of previously owned shares of the
Company's Common Stock valued pursuant to paragraph 2.2 (if the Committee
authorizes payment in stock in its discretion), (iv) by withholding from
the Option Shares which would otherwise be issuable upon the exercise of
the Stock Option that number of Option Shares equal to the exercise price
of the Stock Option, if such withholding is authorized by the Committee
in its discretion, or (v) in the discretion of the Committee, by the
delivery to the Company of the optionee's promissory note secured by the
Option Shares, bearing interest at a rate sufficient to prevent the
imputation of interest under Sections 483 or 1274 of the Code, and having
such other terms and conditions as may be satisfactory to the Committee.

     2.4.2  Exercise of each Stock Option is conditioned upon the agreement
of the Employee to the terms and conditions of this Plan and of such
Stock Option as evidenced by the Employee's execution and delivery of a
Notice and Agreement of Exercise in a form to be determined by the
Committee in its discretion.  Such Notice and Agreement of Exercise shall
set forth the agreement of the Employee that:  (a) no Option Shares will
be sold or otherwise distributed in violation of the Securities Act of
1933 (the "Securities Act") or any other applicable federal or state
securities laws, (b) each Option Share certificate may be imprinted with
legends reflecting any applicable federal and state securities law
restrictions and conditions, (c) the Company may comply with said
securities law restrictions and issue "stop transfer" instructions to its
Transfer Agent and Registrar without liability, (d) if the Employee is a
Section 16 Reporting Person, the Employee will furnish to the Company a
copy of each Form 4 or Form 5 filed by said Employee and will timely file
all reports required under federal securities laws, and (e) the Employee
will report all sales of Option Shares to the Company in writing on a
form prescribed by the Company.

     2.4.3  No Stock Option shall be exercisable unless and until any
applicable registration or qualification requirements of federal and
state securities laws, and all other legal requirements, have been fully
complied with.  The Company will use reasonable efforts to maintain the
effectiveness of a Registration Statement under the Securities Act for
the issuance of Stock Options and shares acquired thereunder, but there
may be times when no such Registration Statement will be currently
effective.  The exercise of Stock Options may be temporarily suspended
without liability to the Company during times when no such Registration
Statement is currently effective, or during times when, in the reasonable
opinion of the Committee, such suspension is necessary to preclude
violation of any requirements of applicable law or regulatory bodies
having jurisdiction over the Company.  If any Stock Option would expire
for any reason except the end of its term during such a suspension, then
if exercise of such Stock Option is duly tendered before its expiration,
such Stock Option shall be exercisable and exercised (unless the
attempted exercise is withdrawn) as of the first day after the end of
such suspension.  The Company shall have no obligation to file any
Registration Statement covering resales of Option Shares.

     2.5  Continuous Employment.

     Except as provided in paragraph 2.7 below, an Employee may not
exercise a Stock Option unless from the date of grant to the date of
exercise such Employee remains continuously in the employ of the Company.
For purposes of this paragraph 2.5, the period of continuous employment
of an Employee with the Company shall be deemed to include (without
extending the term of the Stock Option) any period during which such
Employee is on leave of absence with the consent of the Company, provided
that such leave of absence shall not exceed three (3) months and that
such Employee returns to the employ of the Company at the expiration of
such leave of absence.  If such Employee fails to return to the employ of
the Company at the expiration of such leave of absence, such Employee's
employment with the Company shall be deemed terminated as of the date
such leave of absence commenced.  The continuous employment of an
Employee with the Company shall also be deemed to include any period
during which such Employee is a member of the Armed Forces of the United
States, provided that such Employee returns to the employ of the Company
within ninety (90) days (or such longer period as may be prescribed by
law) from the date such Employee first becomes entitled to discharge.  If
an Employee does not return to the employ of the Company within ninety
(90) days (or such longer period as may be prescribed by law) from the
date such Employee first becomes entitled to discharge, such Employee's
employment with the Company shall be deemed to have terminated as of the
date such Employee's military service ended.

     2.6  Restrictions on Transfer.

     Each Stock Option granted under this Plan shall be transferable only
by will or the laws of descent and distribution.  No interest of any
Employee under the Plan shall be subject to attachment, execution,
garnishment, sequestration, the laws of bankruptcy or any other legal or
equitable process.  Each Stock Option granted under this Plan shall be
exercisable during an Employee's lifetime only by such Employee or by
such Employee's legal representative.

     2.7  Termination of Employment.

     2.7.1  Upon an Employee's Retirement, Disability (both terms being
defined below) or death, (a) all Stock Options to the extent then
presently exercisable shall remain in full force and effect and may be
exercised pursuant to the provisions thereof, including expiration at the
end of the fixed term thereof, and (b) unless otherwise provided by the
Committee, all Stock Options to the extent not then presently exercisable
by such Employee shall terminate as of the date of such termination of
employment and shall not be exercisable thereafter.

     2.7.2  Upon the termination of the employment of an Employee with the
Company for any reason other than the reasons set forth in paragraph
2.7.1 hereof, (a) all Stock Options to the extent then presently
exercisable by such Employee shall remain exercisable only for a period
of ninety (90) days after the date of such termination of employment
(except that the ninety (90) day period shall be extended to twelve (12)
months if the Employee shall die during such ninety (90) day period), and
may be exercised pursuant to the provisions thereof, including expiration
at the end of the fixed term thereof, and (b) unless otherwise provided
by the Committee, all Stock Options to the extent not then presently
exercisable by such Employee shall terminate as of the date of such
termination of employment and shall not be exercisable thereafter.

     2.7.3  For purposes of this Plan:

     (a)  "Retirement" shall mean an Employee's retirement from the
employ of the Company on or after the date on which such Employee attains
the age of sixty-five (65) years; and

     (b)  "Disability" shall mean total and permanent incapacity of an
Employee, due to physical impairment or legally established mental
incompetence, to perform the usual duties of such Employee's employment
with the Company, which disability shall be determined: (i) on medical
evidence by a licensed physician designated by the Committee, or (ii) on
evidence that the Employee has become entitled to receive primary
benefits as a disabled employee under the Social Security Act in effect
on the date of such disability.

     3.  PROVISIONS RELATING TO AWARDS

     3.1  Grant of Awards.

     Subject to the provisions of the Plan, the Committee shall have full
and complete authority, in its discretion, but subject to the express
provisions of this Plan, to (i) grant Awards pursuant to the Plan, (ii)
determine the number of shares of Common Stock subject to each Award
("Award Shares"), (iii) determine the terms and conditions (which need
not be identical) of each Award, including the consideration (if any) to
be paid by the Employee for such Common Stock, which may, in the
Committee's discretion, consist of the delivery of the Employee's
promissory note meeting the requirements of paragraph 2.4.1, (iv)
establish and modify performance criteria for Awards, and (v) make all of
the determinations necessary or advisable with respect to Awards under
the Plan.  Each award under the Plan shall consist of a grant of shares
of Common Stock subject to a restriction period (after which the
restrictions shall lapse), which shall be a period commencing on the date
the award is granted and ending on such date as the Committee shall
determine (the "Restriction Period").  The Committee may provide for the
lapse of restrictions in installments, for acceleration of the lapse of
restrictions upon the satisfaction of such performance or other criteria
or upon the occurrence of such events as the Committee shall determine,
and for the early expiration of the Restriction Period upon an Employee's
death, Disability or Retirement as defined in paragraph 2.7.3, or,
following a Change of Control, upon termination of an Employee's
employment by the Company without "Cause" or by the Employee for "Good
Reason," as those terms are defined herein.  For purposes of this Plan:

     "Change of Control" shall be deemed to occur (a) on the date the
Company first has actual knowledge that any person (as such term is used
in Sections 13(d) and 14(d) (2) of the Exchange Act) has become the
beneficial owner (as defined in Rule 13(d)-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing forty
percent (40%) or more of the combined voting power of the Company's then
outstanding securities, or (b) on the date the shareholders of the
Company approve (i) a merger of the Company with or into any other
corporation in which the Company is not the surviving corporation or in
which the Company survives as a subsidiary of another corporation, (ii) a
consolidation of the Company with any other corporation, or (iii) the
sale or disposition of all or substantially all of the Company's assets
or a plan of complete liquidation.

     "Cause," when used with reference to termination of the employment
of an Employee by the Company for "Cause," shall mean:

     (a)  the Employee's continuing willful and material breach of his or
her duties to the Company after he or she receives a demand from the
Chief Executive of the Company specifying the manner in which he or she
has willfully and materially breached such duties, other than any such
failure resulting from Disability of the Employee or his or her
resignation for "Good Reason," as defined herein; or

     (b)  the conviction of the Employee of a felony; or

     (c)  the Employee's commission of fraud in the course of his or her
employment with the Company, such as embezzlement or other material and
intentional violation of law against the Company; or

     (d)  the Employee's gross misconduct causing material harm to the
Company.

     "Good Reason" shall mean any one or more of the following, occurring
following or in connection with a Change of Control and within ninety
(90) days prior to the Employee's resignation, unless the Employee shall
have consented thereto in writing:

     (a)  the assignment to the Employee of duties inconsistent with his
or her executive status prior to the Change of Control or a substantive
change in the officer or officers to whom he or she reports from the
officer or officers to whom he or she reported immediately prior to the
Change of Control; or

     (b)  the elimination or reassignment of a majority of the duties and
responsibilities that were assigned to the Employee immediately prior to
the Change of Control; or

     (c)  a reduction by the Company in the Employee's annual base salary
as in effect immediately prior to the Change of Control; or

     (d)  the Company's requiring the Employee to be based anywhere
outside a 35-mile radius from his or her place of employment immediately
prior to the Change of Control, except for required travel on the
Company's business to an extent substantially consistent with the
Employee's business travel obligations immediately prior to the Change of
Control; or

     (e)  the failure of the Company to grant the Employee a performance
bonus reasonably equivalent to the same percentage of salary the Employee
normally received prior to the Change of Control, given comparable
performance by the Company and the Employee; or

     (f)  the failure of the Company to obtain a satisfactory Assumption
Agreement (as defined in paragraph 4.12 of the Plan) from a successor, or
the failure of such successor to perform such Assumption Agreement.

     3.2  Incentive Agreements.

     Each Award granted under the Plan shall be evidenced by a written
agreement (an "Incentive Agreement") in a form approved by the Committee
and executed by the Company and the Employee to whom the Award is
granted.  Each Incentive Agreement shall be subject to the terms and
conditions of the Plan and other such terms and conditions as the
Committee may specify.

     3.3  Waiver of Restrictions.

     The Committee may modify or amend any Award under the Plan or waive
any restrictions or conditions applicable to such Awards; provided,
however, that the Committee may not undertake any such modifications,
amendments or waivers if the effect thereof materially increases the
benefits to any Employee, or adversely affects the rights of any Employee
without his or her consent.

     3.4  Terms and Conditions of Awards.

     3.4.1  Upon receipt of an Award of shares of Common Stock under the
Plan, even during the Restriction Period, an Employee shall be the holder
of record of the shares and shall have all the rights of a shareholder
with respect to such shares, subject to the terms and conditions of the
Plan and the Award.

     3.4.2  Except as otherwise provided in this paragraph 3.4, no shares
of Common Stock received pursuant to the Plan shall be sold, exchanged,
transferred, pledged, hypothecated or otherwise disposed of during the
Restriction Period applicable to such shares.  Any purported disposition
of such Common Stock in violation of this paragraph 3.4.2 shall be null
and void.

     3.4.3  If an Employee's employment with the Company terminates prior
to the expiration of the Restriction Period for an Award, subject to any
provisions of the Award with respect to the Employee's death, Disability
or Retirement, or Change of Control, all shares of Common Stock subject
to the Award shall be immediately forfeited by the Employee and
reacquired by the Company, and the Employee shall have no further rights
with respect to the Award.  In the discretion of the Committee, an
Incentive Agreement may provide that, upon the forfeiture by an Employee
of Award Shares, the Company shall repay to the Employee the
consideration (if any) which the Employee paid for the Award Shares on
the grant of the Award.  In the discretion of the Committee, an Incentive
Agreement may also provide that such repayment shall include an interest
factor on such consideration from the date of the grant of the Award to
the date of such repayment.

     3.4.4  The Committee may require under such terms and conditions as it
deems appropriate or desirable that (i) the certificates for Common Stock
delivered under the Plan are to be held in custody by the Company or a
person or institution designated by the Company until the Restriction
Period expires, (ii) such certificates shall bear a legend referring to
the restrictions on the Common Stock pursuant to the Plan, and (iii) the
Employee shall have delivered to the Company a stock power endorsed in
blank relating to the Common Stock.

     4.  MISCELLANEOUS PROVISIONS

     4.1  Adjustments Upon Change in Capitalization.

     4.1.  The number and class of shares subject to each outstanding
Stock Option, the Exercise Price thereof (but not the total price), the
maximum number of Stock Options that may be granted under the Plan, the
minimum number of shares as to which a Stock Option may be exercised at
any one time, and the number and class of shares subject to each
outstanding Award, shall be proportionately adjusted in the event of any
increase or decrease in the number of the issued shares of Common Stock
which results from a split-up or consolidation of shares, payment of a
stock dividend or dividends exceeding a total of five percent (5%) for
which the record dates occur in any one fiscal year, a recapitalization
(other than the conversion of convertible securities according to their
terms), a combination of shares or other like capital adjustment, so that
(i) upon exercise of the Stock Option, the Employee shall receive the
number and class of shares such Employee would have received had such
Employee been the holder of the number of shares of Common Stock for
which the Stock Option is being exercised upon the date of such change or
increase or decrease in the number of issued shares of the Company, and
(ii) upon the lapse of restrictions of the Award Shares, the Employee
shall receive the number and class of shares such Employee would have
received if the restrictions on the Award Shares had lapsed on the date
of such change or increase or decrease in the number of issued shares of
the Company.

     4.1.2  Upon a reorganization, merger or consolidation of the Company
with one or more corporations as a result of which Majestic is not the
surviving corporation or in which Majestic survives as a wholly-owned
subsidiary of another corporation, or upon a sale of all or substantially
all of the property of the Company to another corporation, or any
dividend or distribution to shareholders of more than ten percent (10%)
of the Company's assets, adequate adjustment or other provisions shall be
made by the Company or other party to such transaction so that there
shall remain and/or be substituted for the Option Shares and Award Shares
provided for herein, the shares, securities or assets which would have
been issuable or payable in respect of or in exchange for such Option
Shares and Award Shares then remaining, as if the Employee had been the
owner of such shares as of the applicable date.  Any securities so
substituted shall be subject to similar successive adjustments.

     4.2  Withholding Taxes.

     The Company shall have the right at the time of exercise of any
Stock Option, the grant of an Award, or the lapse of restrictions on
Award Shares, to make adequate provision for any federal, state, local or
foreign taxes which it believes are or may be required by law to be
withheld with respect to such exercise ("Tax Liability"), to ensure the
payment of any such Tax Liability.  The Company may provide for the
payment of any Tax Liability by any of the following means or a
combination of such means, as determined by the Committee in its sole and
absolute discretion in the particular case:  (i) by requiring the
Employee to tender a cash payment to the Company, (ii) by withholding
from the Employee's salary, (iii) by withholding from the Option Shares
which would otherwise be issuable upon exercise of the Stock Option, or
from the Award Shares on their grant or date of lapse of restrictions,
that number of Option Shares or Award Shares having an aggregate fair
market value (determined in the manner prescribed by paragraph 2.2) as of
the date the withholding tax obligation arises in an amount which is
equal to the Employee's Tax Liability or (iv) by any other method deemed
appropriate by the Committee.  Satisfaction of the Tax Liability of a
Section 16 Reporting Person may be made by the method of payment
specified in clause (iii) above only if the following two conditions are
satisfied:

     (a)  the withholding of Option Shares or Award Shares and the
exercise of the related Stock Option occur at least six months and one
day following the date of grant of such Stock Option or Award; and

     (b)  the withholding of Option Shares or Award Shares is made either
(i) pursuant to an irrevocable election ("Withholding Election") made by
such Employee at least six months in advance of the withholding of
Options Shares or Award Shares, or (ii) on a day within a ten-day "window
period" beginning on the third business day following the date of release
of the Company's quarterly or annual summary statement of sales and earnings.

Anything herein to the contrary notwithstanding, a Withholding Election
may be disapproved by the Committee at any time.

     4.3  Relationship to Other Employee Benefit Plans.

     Stock Options and Awards granted hereunder shall not be deemed to be
salary or other compensation to any Employee for purposes of any pension,
thrift, profit-sharing, stock purchase or any other employee benefit plan
now maintained or hereafter adopted by the Company.

     4.4  Amendments and Termination.

     The Board of Directors may at any time suspend, amend or terminate
this Plan.  No amendment, except as provided in paragraph 2.8, or
modification of this Plan may be adopted, except subject to stockholder
approval, which would: (a) materially increase the benefits accruing to
Employees under this Plan, (b) materially increase the number of
securities which may be issued under this Plan (except for adjustments
pursuant to paragraph 4.1 hereof), or (c) materially modify the
requirements as to eligibility for participation in the Plan.

     4.5  Successors in Interest.

     The provisions of this Plan and the actions of the Committee shall
be binding upon all heirs, successors and assigns of the Company and of
Employees.

     4.6  Other Documents.

     All documents prepared, executed or delivered in connection with
this Plan (including, without limitation, Option Agreements and Incentive
Agreements) shall be, in substance and form, as established and modified
by the Committee; provided, however, that all such documents shall be
subject in every respect to the provisions of this Plan, and in the event
of any conflict between the terms of any such document and this Plan, the
provisions of this Plan shall prevail.

     4.7  No Obligation to Continue Employment.

     This Plan and grants hereunder shall not impose any obligation on
the Company to continue to employ any Employee.  Moreover, no provision
of this Plan or any document executed or delivered pursuant to this Plan
shall be deemed modified in any way by any employment contract between an
Employee (or other employee) and the Company.

     4.8  Misconduct of an Employee.

     Notwithstanding any other provision of this Plan, if an Employee
commits fraud or dishonesty toward the Company or wrongfully uses or
discloses any trade secret, confidential data or other information
proprietary to the Company, or intentionally takes any other action
materially inimical to the best interests of the Company, as determined
by the Committee, in its sole and absolute discretion, such Employee
shall forfeit all rights and benefits under this Plan.

     4.9  Term of Plan.

     This Plan was adopted by the Board effective March 20, 2002.  No
Stock Options or Awards may be granted under this Plan after March 20, 2012.

     4.10  Governing Law.

     This Plan shall be construed in accordance with, and governed by,
the laws of the State of Nevada.

     4.11  Approval.

     No Stock Option shall be exercisable, or Award granted, unless and
until the Directors of the Company have approved this Plan and all other
legal requirements have been fully complied with.

     4.12  Assumption Agreements.

     The Company will require each successor, (direct or indirect,
whether by purchase, merger, consolidation or otherwise), to all or
substantially all of the business or assets of the Company, prior to the
consummation of each such transaction, to assume and agree to perform the
terms and provisions remaining to be performed by the Company under each
Incentive Agreement and Stock Option and to preserve the benefits to the
Employees thereunder.  Such assumption and agreement shall be set forth
in a written agreement in form and substance satisfactory to the
Committee (an "Assumption Agreement"), and shall include such
adjustments, if any, in the application of the provisions of the
Incentive Agreements and Stock Options and such additional provisions, if
any, as the Committee shall require and approve, in order to preserve
such benefits to the Employees.  Without limiting the generality of the
foregoing, the Committee may require an Assumption Agreement to include
satisfactory undertakings by a successor:

     (a)  to provide liquidity to the Employees at the end of the
Restriction Period applicable to Common Stock awarded to them under the
Plan, or on the exercise of Stock Options;

     (b)  if the succession occurs before the expiration of any period
specified in the Incentive Agreements for satisfaction of performance
criteria applicable to the Common Stock awarded thereunder, to refrain
from interfering with the Company's ability to satisfy such performance
criteria or to agree to modify such performance criteria and/or waive any
criteria that cannot be satisfied as a result of the succession;

     (c)  to require any future successor to enter into an Assumption
Agreement; and

     (d)  to take or refrain from taking such other actions as the
Committee may require and approve, in its discretion.

     The Committee referred to in this paragraph 4.12 is the Committee
appointed by a Board of Directors in office prior to the succession then
under consideration.

     4.13  Compliance With Rule 16b-3.

     Transactions under the Plan are intended to comply with all
applicable conditions of Rule 16b-3.  To the extent that any provision of
the Plan or action by the Committee fails to so comply, it shall be
deemed null and void, to the extent permitted by law and deemed advisable
by the Committee.

     IN WITNESS WHEREOF, this Plan has been executed effective as of the
20th day of March, 2002.

                                            The Majestic Companies, Ltd.

                                            By: /s/  Francis A. Zubrowski
                                            Francis A. Zubrowski,
                                            Chief Executive Officer

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