Document:

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                                                                   Exhibit 10.9

                            THIRD AMENDMENT TO LEASE
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THIS THIRD AMENDMENT TO LEASE ("Third Amendment") is dated this 6th day of
January 2003 by and between CDR Presidential, L.L.C., a Limited Liability
Company organized under the State of Florida ("Landlord") and Concord Camera
Corp., a New Jersey corporation ("Tenant")

                                   BACKGROUND

1.  Landlord as successor in interest to CarrAmerica Realty Corp. (the "Original
    Landlord") and Tenant entered into a certain lease dated as of August 12,
    1998 (the "Original Lease") pursuant to which Tenant leases from Landlord
    suite 650-N (the "Original Premises") located in the building commonly known
    as Presidential Circle (the "Building") at 4000 Hollywood Boulevard,
    Hollywood, Florida, 33021.

2.  By the First Amendment to Lease dated October 12, 1999 Tenant expanded the
    Original Premises to include suite 630-N (the "Expansion Space").

3.  By the Second Amendment to Lease dated January 3, 2000 Tenant expanded the
    Original Premises and the Expansion Space to include suite 610-N ("Second
    Expansion Space"). The Original Premises, Expansion Space and Second
    Expansion Space shall hereinafter be collectively referred to as the
    Premises. The Original Lease, First Amendment to Lease and Second Amendment
    to Lease shall hereinafter be collectively referred to as the "Lease".

AT THIS TIME, Tenant and Landlord wish to expand the Premises, extend the Term
of the Lease and modify other sections of the Lease.

                                    AGREEMENT

1. THIRD EXPANSION SPACE: Suite 620-N consisting of 4,821 rentable square feet
using a common area add-on factor of 15.86% (the "Third Expansion Space").
Landlord shall obtain a letter from a licensed architect certifying the useable
square feet of the Third Expansion Space. In the event such certification
indicates a variance of .05%+/-, then the rentable square feet shall be
adjusted accordingly.

2. THIRD EXPANSION SPACE COMMENCEMENT DATE: The latter of March 1, 2003 or the
day following the termination date of the existing leasehold interest.

3. TERMINATION DATE: The Termination Date of the Premises and Third Expansion
Space shall be January 31, 2014 subject to early termination in accordance with
section 8 of this Third Amendment to Lease.

4. BASE RENT: Beginning with the first full month following the execution of
this Third Amendment to Lease the Base Rent shall be as follows:

                                                                Monthly Base
  Period In Months     Per Square Foot    Monthly Base Rent      Rent (Third
  ----------------       Per Annum          (Premises)          Expansion Space)
                         ---------          ----------          ----------------

  January 1, 2003-48       $15.50          $19,610.08            $6,227.13
       49-84               $15.80          $19,989.63            $6,347.65
      85-120               $16.20          $20,495.70            $6,508.35
121-Termination Date       $16.60          $21,001.77            $6,669.05

The monthly Base Rent for the Third Expansion Space indicated above is subject
to an initial adjustment based upon the determination of the useable square feet
from the licensed architect as described in section 1 above.

5. OPERATING COST SHARE RENT: Tenant shall pay Operating Cost Share Rent
according to the terms of the Lease for the Premises and Third Expansion Space.

6. TENANT'S PROPORTIONATE SHARE: 5.44% and 1.71% for the Premises and Third
Expansion Space respectively.

        The proportionate share percentage for the Third Expansion Space
indicated above is subject to an initial adjustment based upon the determination
of the useable square feet from the licensed architect as described in section 1
above.

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THIS THIRD AMENDMENT TO LEASE by and between CDR Presidential, L.L.C., a Limited
Liability Company organized under the State of Florida ("Landlord") and Concord
Camera Corp., a New Jersey corporation ("Tenant").

7. PARKING: Subject to the terms described in Section 31 of the Lease, Tenant
shall have the use of parking based upon the following allocation:

             Total Parking Spaces        One hundred twenty (120)

             Surface Parking Spaces      Eighty (80)

             Garage Parking Spaces       Forty (40)

         Notwithstanding anything to the contrary, Tenant shall only be charged
for the use of eighteen (18) garage parking spaces at a rate of $45.00 per space
per month throughout the Term of the Lease.

8. TERMINATION OPTION: Section 33 of the Lease is hereby deleted and replaced by
the following language:

        Tenant may at its option terminate the Lease in its entirety (the
"Termination Option") effective January 31, 2009 (the "Early Termination Date")
by delivering notice of its intent to terminate this Lease (the "Termination
Notice") to Landlord on or before February 1, 2008. If Tenant fails to deliver
its Termination Notice timely, Tenant will be deemed to have waived such
Termination Option. If there are any uncured monetary or material defaults by
Tenant under this Lease as of the date Tenant delivers the Termination Notice or
as of the Early Termination Date, the Termination Option shall be void, and the
Lease shall remain in effect. If Tenant properly exercises its Termination
Option, this Lease shall terminate as of the Early Termination Date.
        The "Termination Fee" shall be $180,000.00. Tenant shall pay the
Termination Fee in the last full calendar month prior to the Early Termination
Date. Such amount includes the amortization of $40,000.00 which the Landlord may
contribute. To the extent this amount or a lesser amount is contributed by
Landlord, the Termination Fee shall be adjusted accordingly.

9. AFTER HOURS AIR CONDITIONING: Tenant agrees to pay on a monthly basis as
Additional Rent an amount of $830.00 as usage of six hundred (600) hours of
after hours air conditioning per calendar year. Any additional hours will be
billed to Tenant at a current charge of $16.60 per hour and will be payable to
Landlord within twenty (20) days upon receipt of a reconciliation invoice. Such
reconciliation invoice can be remitted by Landlord whenever Tenant's usage
exceeds fifty (50) hours in any calendar month on a cumulative basis for any
calendar year. In the event Tenant's usage exceeds more than six hundred (600)
hours in any calendar year Tenant agrees to pay on a monthly basis beginning
January of the subsequent year as Additional Rent an amount equal to the total
hours used times the current charge divided by twelve. The current charge of
$16.60 is subject to increases based upon costs directly associated with such
usage.

10. SIGNAGE: Subject to any state and/or local authorities' approval, Tenant
shall be permitted to install building signage as approved by Landlord on the
north tower on the building facade facing east. The cost to install and maintain
such signage shall be at Tenant's sole cost and expense. Landlord shall use best
efforts to assist Tenant in obtaining the required approvals.

11. INTERRUPTION OF SERVICES: Section 4.F. of the Lease is hereby amended by
deleting the text "ten (10)" in the last sentence of the first paragraph and
substituting with the text of "four (4)" in lieu thereof.

12. TAXES: The Taxes that are included as Operating Costs shall be the amount
based upon the maximum discount available to Landlord whether or not Landlord
decides to take such discount.

13. BOOKS AND RECORDS: Section 2.D.(4). of the Lease is hereby amended by
deleting the last sentence and substituting "Tenant shall pay the cost of such
certification unless Landlord's original determination of annual Operating Costs
for the Building are overstated by more than two percent (2%)" in lieu
thereof.

14. RIGHT OF FIRST REFUSAL: Subject to Subsection B below, and subject to any
expansion or renewal options of any current tenant in the Building (a "Prior
Tenant"), Landlord hereby grants to Tenant for the term of the Lease a right of
first refusal for space on the fifth and seventh floors of the north tower of
the Building (collectively, the "ROFR Space"), to be exercised in accordance
with Subsection A below.
        A. If Landlord receives a bona fide letter of intent on any ROFR Space
(see attached Exhibit "A"), Landlord shall so notify Tenant ("Landlord's ROFR
Notice") identifying the available ROFR Space (the "Subject ROFR Space"). Tenant
shall notify Landlord within ten (10) business days of receipt of Landlord's
ROFR Notice whether it desires to lease the Subject ROFR Space. Such ROFR Space
shall be leased at the lesser of the Base Rent terms set forth in Landlord's
ROFR Notice or the same Base Rent terms of the Lease and the Landlord's
Contribution of any ROFR Space shall be $0.22 per rentable square foot for each
full month of the term of the ROFR Space. If Tenant does not notify Landlord
within said 10-business day period that it will lease the Subject ROFR Space,
Tenant shall be deemed to have refused the Subject ROFR Space. After any
refusal, Tenant shall have no further right of

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THIS THIRD AMENDMENT To LEASE by and between CDR Presidential, L.L.C., a Limited
Liability Company organized under the State of Florida ("Landlord") and Concord
Camera Corp., a New Jersey corporation ("Tenant").

first refusal (unless and until such subject ROFR Space again becomes available,
in which case Tenant shall have a new right of first refusal with respect to
such Subject ROFR Space) for such Subject ROFR Space and Landlord shall be free
to lease such space to any party for any term and upon any terms it desires. If
Tenant exercises its right of first refusal with respect to the Subject ROFR
Space, such space shall be added to the Premises the sooner of occupancy or one
hundred twenty (120) days after Tenant exercises its rights, subject to
adjustment due to Landlord delay. Such space shall be added to the Premises for
the remaining Term of the Lease (but in no event less than three (3) years) on
the same terms of this Lease, except that the terms of Landlord's ROFR Notice
shall not apply during any Renewal Term, and instead, the terms of the Lease
applying to the remainder of the Premises during the Renewal Term shall also
apply to the Subject ROFR Space.
         B. Tenant's right of first refusal is subject to the conditions that:
(i) on the date that Tenant delivers its notice exercising its right of first
refusal, Tenant is not in monetary or material default under this Lease after
the expiration of any applicable notice and cure periods, and (ii) Tenant shall
not have assigned the Lease, or sublet any portion of the Premises (exclusive of
any sublease agreement between Tenant and the existing tenant occupying the
Third Expansion Space) under a sublease which is in effect at any time during
the period commencing with Tenant's delivery of its notice and ending on the
date the ROFR Space is added to the Premises.
         C. Promptly after Tenant's exercise of its right of first refusal,
Landlord shall execute and deliver to Tenant an amendment to the Lease to
reflect changes in the Premises, Base Rent, Tenant's Proportionate Share and any
other appropriate terms changed by the addition of the ROFR Space. Within 15
days thereafter, Tenant shall execute and return the amendment.
         D. Notwithstanding anything to the contrary contained herein, in the
event any of the ROFR Space that does not presently contain a renewal option
expires, and the current tenant wants to extend the term of the lease, Landlord
agrees to offer such space to Tenant in accordance with Sections A, B and C
above, except the Base Rent shall be ninety-five percent (95%) of the Base Rent
being offered in Landlord's ROFR Notice.

15. EXTENSION OPTION. Subject to Subsections B and C below, Tenant may at its
option extend the Term of this Lease for the entire Premises for one (1) period
of five (5) years (the "Renewal Term") upon the same terms contained in this
Lease, excluding the provisions of Appendix C of the Lease and any other
applicable provisions pertaining to Initial Improvements and/or Landlord's
Contribution, and except for the amount of Base Rent and parking charges payable
during the Renewal Term. Tenant shall have no additional extension option.
         A. The Base Rent during the Renewal Term shall be the then prevailing
market rate for a comparable term, market concessions, and Tenant Improvements
subject to adjustments based upon quality of building, size, and credit
worthiness of Tenant, commencing on the first day of the Renewal Term for
tenants renewing space in the Building and other comparable office buildings
(the "Prevailing Market Rate").
         B. To exercise its option, Tenant must deliver an initial non-binding
notice to Landlord not less than twelve (12) months prior to the proposed
commencement of the Renewal Term. At some point within sixty (60) days after
receipt of such non-binding notice, Landlord shall calculate and inform Tenant
of the Prevailing Market Rate for the Premises. Tenant shall give Landlord final
binding notice of intent to exercise its option to extend within thirty (30)
days after receiving Landlord's determination of Prevailing Market Rate. If
Tenant fails to give either its initial non-binding notice or its final binding
notice timely, Tenant will be deemed to have waived its option to extend. If
Tenant disputes Landlord's determination of Prevailing Market Rate, Tenant's
final binding notice shall set forth Tenant's determination of the Prevailing
Market Rate. If Tenant fails to set forth its determination of Prevailing Market
Rate in its final binding notice, then Tenant shall be deemed to have accepted
Landlord's determination of Prevailing Market Rate.
         If Tenant timely within thirty (30) days disputes Landlord's
determination and Landlord and Tenant fail to agree as to the Prevailing Market
Rate within 20 days after the giving of Tenant's final binding notice, then the
Prevailing Market Rate shall be determined as follows: Such dispute shall be
resolved by arbitration conducted in accordance with the Real Estate Valuation
Arbitration Rules (Expedited Procedures) of the AAA, except that the provisions
of this Article shall supersede any conflicting or inconsistent provisions of
said rules. The party requesting arbitration shall do so by giving notice to
that effect to the other party, specifying in said notice the nature of the
dispute, and that said dispute shall be determined in Broward County, Florida,
by a panel of 3 arbitrators in accordance with this Article. Landlord and Tenant
shall each appoint their own arbitrator within 7 days after the giving of notice
by either party. If either Landlord or Tenant shall fail timely to appoint an
arbitrator, the appointed arbitrator shall select the second arbitrator, who
shall be impartial, within 7 days after such party's failure to appoint. Such
two arbitrators shall have 7 days to appoint a third arbitrator who shall be
impartial. If such arbitrators fail to do so, then either Landlord or Tenant may
request the AAA to appoint an arbitrator who shall be impartial within 14 days
of such request and both parties shall be bound by any appointment so made
within such 14-day period. If no such third arbitrator shall have been appointed
within such 14 days, either Landlord or Tenant may apply to any court having
jurisdiction to make such appointment. The three arbitrators shall proceed with
all reasonable dispatch to determine the Prevailing Market Rate and under all
circumstances shall be bound by the terms of this Lease and shall not add to,
subtract from or otherwise modify such provisions. The arbitrators' sole
discretion in determining the question submitted shall be limited to selecting
one of Tenant's or Landlord's Determination. The decision of the

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THIS THIRD AMENDMENT To LEASE by and between CDR Presidential, L.L.C., a Limited
Liability Company organized under the State of Florida ("Landlord") and Concord
Camera Corp., a New Jersey corporation ("Tenant").

arbitrators shall be rendered within 14 days after the third arbitrator has been
appointed and shall be in writing and delivered to each of Landlord and Tenant.
It is hereby agreed that a decision of the majority of the arbitrators shall be
binding, final and conclusive upon Landlord and Tenant. The fees and expenses of
any arbitration and of the third arbitrator pursuant to this Paragraph shall be
borne by the parties equally, but each party shall bear the expense of its own
arbitrator, attorneys and experts and the additional expenses of presenting its
own proof. Each arbitrator shall have at least 10 years' experience in leasing
and valuation of properties that are similar in character to the Building. After
a determination has been made of the Prevailing Market Rate, the parties shall
execute and deliver an instrument setting forth the Prevailing Market Rate, but
the failure to so execute and deliver any such instrument shall not effect the
determination of Prevailing Market Rate.
            If Tenant disputes Landlord's determination and if the final
determination of Prevailing Market Rate shall not be made on or before the first
day of the applicable Renewal Term, then, pending such final determination,
Tenant shall pay, as rent for the Renewal Term, an amount equal to Landlord's
determination of the Prevailing Market Rate.
        C. Tenant's option to extend this Lease is subject to the conditions
that: (i) that on the date that Tenant delivers its initial non-binding notice
or its final binding notice exercising its option to extend, Tenant is not in
monetary or material default beyond any applicable cure period under this Lease
after the expiration of any applicable notice and cure periods, and (ii) Tenant
shall not have assigned this Lease, or sublet any portion of the Premises under
a sublease except to the extent permissible under Section 17.

16. ESTOPPEL CERTIFICATE: Each party shall, within ten (10) days of receiving a
request from the other party, execute, acknowledge in recordable form, and
deliver to the other party or its designee a certificate stating, subject to a
specific statement of any applicable exceptions, that the Lease as amended to
date is in full force and effect, that the Tenant is paying Rent and other
charges on a current basis, and that to the best of the knowledge of the
certifying party, the other party has committed no uncured defaults and has no
offsets or claims. The certifying party may also be required to state the date
of commencement of payment of Rent, the Commencement Date, the Termination Date,
the Base Rent, the current Operating Cost Share Rent and Tax Share Rent
estimates, the status of any improvements required to be completed by Landlord,
the amount of any security deposit, and such other matters as may be reasonably
requested. Failure to deliver such statement within the time required and
failure continues ten (10) days after Tenant's receipt of a second request shall
be conclusive evidence against the non-certifying party that this Lease, with
any amendments identified by the requesting party, is in full force and effect,
that there are no uncured defaults by the requesting party, and that the
non-certifying party has no claims or offsets against the requesting party.

17. REAL ESTATE BROKER: Tenant and Landlord represent to each other that they
have not dealt with any real estate brokers with respect to this Third Amendment
to Lease except for Trammell Crow Company (Tenant's broker). Tenant and
Landlord shall indemnify and defend each other against any claims by any other
broker or third party for any payment of any kind in connection with this Lease.

18. TENANT IMPROVEMENTS FOR THE THIRD EXPANSION SPACE:

        A. INITIAL IMPROVEMENTS. Landlord shall cause to be performed the
improvements (the "Initial Improvements") in the Premises in accordance with
plans and specifications approved by Tenant and Landlord (the "Plans"), which
approvals shall not be unreasonably withheld. The Initial Improvements shall be
performed at the Tenant's cost, subject to the Landlord's Contribution
(hereinafter defined).
        Tenant shall cause the Plans to be prepared by a registered professional
architect, and mechanical and electrical engineer(s). Such engineer(s) shall be
approved in advance by the Landlord. Tenant shall furnish the initial draft of
the Plans to Landlord for Landlord's review and approval. Landlord shall within
two (2) weeks after receipt either provide comments to such Plans or approve the
same. Landlord shall be deemed to have approved such Plans if it does not timely
provide comments on such Plans. If Landlord provides Tenant with comments to the
initial draft of the Plans, Tenant shall provide revised Plans to Landlord
incorporating Landlord's comments within one week after receipt of Landlord's
comments. Landlord shall within one week after receipt then either provide
comments to such revised Plans or approve such Plans. Landlord shall be deemed
to have approved such revised Plans if Landlord does not timely provide comments
on such Plans. The process described above shall be repeated, if necessary,
until the Plans have been finally approved by Landlord. Tenant hereby agrees
that the Plans for the Initial Improvements shall comply with all applicable
Governmental Requirements. Landlord's approval of any of the Plans (or any
modifications or changes thereto) shall not impose upon Landlord or its agents
or representatives any obligation with respect to the design of the Initial
Improvements or the compliance of such Initial Improvements or the Plans with
applicable Governmental Requirements.
        Landlord, with consultation of Tenant, shall select a contractor to
perform the construction of the Initial Improvements. Such contractor shall be
selected by a competitive bid process between at least three (3) contractors of
which two (2) shall be selected by Landlord and at least one (1) by Tenant.
        Landlord, or an agent of Landlord, shall provide project management
services in connection with the construction of the Initial Improvements and the
Change Orders (hereinafter defined). Such project management services shall be
performed, at Tenant's cost, for a fee of $2,500.00.

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THIS THIRD AMENDMENT To LEASE by and between CDR Presidential, L.L.C., a Limited
Liability Company organized under the State of Florida ("Landlord") and Concord
Camera Corp., a New Jersey corporation ("Tenant").

        B. CHANGE ORDERS. If, prior to the Commencement Date, Tenant shall
require improvements or changes (individually or collectively, "Change Orders")
to the Premises in addition to, revision of, or substitution for the Initial
Improvements, Tenant shall deliver to Landlord for its approval plans and
specifications for such Change Orders. If Landlord does not approve of the plans
for Change Orders, Landlord shall advise Tenant of the revisions required.
Tenant shall revise and redeliver the plans and specifications to Landlord
within five (5) business days of Landlord's advice or Tenant shall be deemed to
have abandoned its request for such Change Orders. Tenant shall pay for all
preparations and revisions of plans and specifications, and the construction of
all Change Orders, subject to Landlord's Contribution.
        C. LANDLORD'S CONTRIBUTION. Landlord shall contribute an amount not to
exceed $26.40 per rentable square foot of the Third Expansion Space
($127,274.40) ("Landlord's Contribution") toward the costs incurred for the
Initial Improvements and Change Orders. Landlord has no obligation to pay for
costs of the Initial Improvements or Change Orders in excess of Landlord's
Contribution. If the cost of the Initial Improvements and/or Change Orders
exceeds the Landlord's Contribution, Tenant shall pay such overage to Landlord
within ten (10) days of receipt of an invoice. Such invoice will be billed based
upon the percentage of improvements in place, and final payment being due upon
substantial completion of the improvements. In addition to the Landlord's
Contribution above, at Tenant's election, Landlord shall contribute up to
$40,000.00 towards the reconfiguration or modification to the existing common
area of the floor.
        D. ACCESS BY TENANT PRIOR TO COMMENCEMENT OF TERM. Landlord at its
discretion may permit Tenant and its agents to enter the Premises prior to the
Commencement Date to prepare the Premises for Tenant's use and occupancy. Any
such permission shall constitute a license only, conditioned upon Tenant's:
        (1) working in harmony with Landlord and Landlord's agents, contractors,
workmen, mechanics and suppliers and with other tenants and occupants of the
Building;
        (2) obtaining in advance Landlord's approval of the contractors proposed
to be used by Tenant and depositing with Landlord in advance of any work (i)
security satisfactory to Landlord for the completion thereof, and (ii) the
contractor's affidavit for the proposed work and the waivers of lien from the
contractor and all subcontractors and suppliers of material; and
        (3) furnishing Landlord with such insurance as Landlord may require
against liabilities which may arise out of such entry.
        Landlord shall have the right to withdraw such license for any reason
upon twenty-four (24) hours' written notice to Tenant. Landlord shall not be
liable in any way for any injury, loss or damage which may occur to any of
Tenant's property or installations in the Premises prior to the Commencement
Date. Tenant shall protect, defend, indemnify and save harmless Landlord from
all liabilities, costs, damages, fees and expenses arising out of the activities
of Tenant or its agents, contractors, suppliers or workmen in the Premises or
the Building. Any entry and occupation permitted under this Section shall be
governed by Section 5 and all other terms of the Lease.
        E. MISCELLANEOUS.
        Terms used in this Appendix C shall have the meanings assigned to them
in the Lease. The terms of this Appendix C are subject to the terms of the
Lease.

19. Section 2.A. of the Lease is hereby amended by substituting the following in
lieu of the name, address and wire transfer information for the payment of Rent
to the Original Landlord:

        CDR Presidential, L.L.C.
        c/o CDR Realty, L.L.C.
        2424 North Federal Highway, Suite 159
        Boca Raton, Florida 33431
        Telephone: 561-395-7588
or by wire transfer as follows:
        Bank Name: Bank of America
        Account Name: CDR Presidential, L.L.C.
        ABA Number: 063100277
        Account Number: 003446259519

20.   Section 16.A. of the Lease is hereby amended as follows:

16. SUBORDINATION TO GROUND LEASES AND MORTGAGES.

         A. Subordination. This Lease shall be subordinate to any present or
future ground lease or mortgage respecting the Project, and any amendments to
such ground lease or mortgage, at the election of the ground lessor or mortgagee
as the case may be. The subordination shall be self-operative and no further
instrument of subordination shall be required, but at the request of Landlord or
ground lessor or mortgagee, Tenant shall within ten (10) business days of the
request, execute and deliver to the requesting party any reasonable documents
provided to evidence the subordination. Any mortgagee has the right, at its
option, to subordinate its mortgage to the terms of this Lease, without notice
to, nor the consent of, Tenant.

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THIS THIRD AMENDMENT TO LEASE by and between CDR Presidential, L.L.C., a Limited
Liability Company organized under the State of Florida ("Landlord") and Concord
Camera Corp., a New Jersey corporation ("Tenant").

21. Section 23A of the Lease is hereby amended by substituting the following in
lieu of the name and address of the Original Landlord:

      CDR Presidential, L.L.C.
      c/o CDR Realty, L.L.C.
      2424 North Federal Highway, Suite 159
      Boca Raton, Florida 33431
      Attn: Ed Steinhardt, Vice President/Director of Operations

22. Appendix D is hereby amended by substituting the following in lieu of the
mortgage referenced in the Original Lease:

      Metropolitan Life Insurance Company
      101 E. Kennedy Blvd., Suite 1165
      Tampa, Florida 33602

23. DEFAULT INTEREST: Section 2.D.(2) of the Lease is hereby amended by deleting
the text "eighteen percent (18%)" and substituting with the text of "twelve
percent (12%)" in lieu thereof.

24. WATER: Section 4.D of the Lease is hereby deleted and replaced by the
following language: Landlord shall furnish hot and cold tap water for drinking,
toilet purposes and other typical uses based upon Tenant's use of the Premises
as described in Section 6 of the Lease. Tenant shall pay Landlord for water
furnished for any other purposes or Additional Rent at rates charged by the
utility company plus and an administrative fee equal to ten percent (10%).
Tenant shall not permit water to be wasted.

25. VACATION AND ABANDONMENT DEFAULT: Section 12.E of the Lease is hereby
amended by deleting ".", and substituting ", and does not continue to pay Rent
when due." in lieu thereof.

26. HOLDOVER: Section 15 of the Lease is hereby deleted and replaced by the
following language: Tenant shall have no right to holdover possession of the
Premises after the expiration or termination of this Lease without Landlord's
prior written consent, which consent may be withheld in Landlord's sole and
absolute discretion. If Tenant retains possession of any part of the Premises
after the Term, Tenant shall become a month-to-month tenant for the entire
Premises upon all of the terms of this Lease as might be applicable to such
month-to-month tenancy, except that Tenant shall pay Rent during months one and
two at 125% the rate in effect immediately prior to such holdover, 150% during
months three through five, and 200% thereafter. Notwithstanding anything to the
contrary contained herein, in the event Landlord delivers notice ("Holdover
Notice") to Tenant that it has executed a lease with a tenant for any portion of
the Premises, and Tenant is not able to fully vacate such area and the
commencement date of such lease is delayed due to Tenant's holdover, Tenant
shall pay beginning with the first full month following such notice an entire
month of Rent during the first full month or any portion thereof following the
date of the Holdover Notice at 150% the rate in effect during the month prior to
the Termination Date. In the event Tenant retains possession of any or part of
the Premises after the first full month following the date of the Holdover
Notice the Tenant shall pay five (5) months of Rent at 200% the rate in effect
during the last month of the Term of the Lease. In the event Tenant retains
possession of any or part of the Premises beyond six (6) months after the
Termination Date, Tenant shall pay an entire month of Rent for each full or
partial calendar month at 150% the rate in effect during the last month of the
Term of the Lease. No acceptance of Rent or other payments by Landlord under
these holdover provisions shall operate as a waiver of Landlord's right to
regain possession or any other of Landlord's remedies.

27. ASSIGNMENT AND SUBLEASE: Section 17.A of the Lease is hereby amended by
inserting the text "reasonable" prior to "attorney's fees" in the fourth
sentence of this section.
         Section 17.B.(vi) is hereby deleted in its entirety.

        For the purpose of defining a prospective tenant in Section 17.B of the
Lease, such definition shall mean an entity that has been provided a written
proposal within the last one hundred twenty (120) days from the date of Tenant
requesting Landlord's consent.
         Section 17.D. entire text is hereby deleted, and replaced with the
following language:
         Change of Management or Ownership. Any transfer of the direct or
indirect power to affect the management or policies of Tenant or direct or
indirect change in 25% or more of the ownership interest in Tenant (any of the
foregoing in this Subsection D being herein sometimes referred to as an
"Ownership Transfer") shall constitute an assignment of this Lease.
Notwithstanding the foregoing in this Subsection D to the contrary, if Tenant
shall be a corporation whose stock is publicly traded on a nationally recognized
securities exchange (including the NASDAQ over-the-counter market), then, except
with respect to an Ownership Transfer in connection with the merger or
consolidation of Tenant and except with respect to an Ownership Transfer in
connection with the sale of all or substantially all of the assets of Tenant;
any Ownership Transfer shall not be deemed to be an assignment of this Lease. In
any event, any Ownership Transfer in connection with the merger or consolidation
of Tenant or in connection with the sale of all or substantially all of the
assets of Tenant shall constitute an assignment of this Lease.

                                   Page 6 of 9
<PAGE>

THIS THIRD AMENDMENT To LEASE by and between CDR Presidential, L.L.C., a Limited
Liability Company organized under the State of Florida ("Landlord") and Concord
Camera Corp., a New Jersey corporation ("Tenant").

         Section 17.E of the Lease is hereby amended by deleting ".", and
substituting ", after Tenant deducts any reasonable and customary costs
(including, but not limited to brokerage commissions and tenant improvements)
incurred in procuring such assignment or sublease." in lieu thereof.

28. TENANT's FINANCIAL STATEMENTS: Notwithstanding the terms of the Lease in
regards to this section (26.Y), the provisions of such section shall not be
applicable so long as Tenant is a publicly traded corporation.

29. TENANT PARKING: Section 31.C., the text contained in the 3rd, 4th and 5th
sentence of such section is hereby deleted in its entirety.

30. SUBORDINATION NONDISTURBANCE: Landlord shall use best efforts to provide
Tenant with a Subordination NonDisturbance and Attornment Agreement ("SNDA") in
a form similar to the SNDA given to Tenant for review, subject to changes
mutually agreed upon between lender and Tenant.

31. STATUS OF LEASE:

         Landlord and Tenant hereby acknowledge and agree that: (i) as of the
date hereof, Landlord has complied with all of the terms and conditions of the
Lease, and that Tenant has no rights to any credit, claim, cause of action,
offset or similar charge against Landlord, the Base Rent and/or the Additional
Rent, each of same, if any, existing as of the date hereof, now being waived by
Tenant; (ii) Landlord has fully performed all of its obligations under the Lease
and is not obligated to make or pay for any additional tenant improvements
except for those tenant improvements specifically set forth in this Third
Amendment; (iii) Tenant represents and warrants to Landlord that there are no
assignees, sublessees (exclusive of any sublease between Tenant and the existing
tenant occupying the Third Expansion Space) or transferees of the Lease, or any
part hereof, or any person or firm (other than Tenant) occupying or having the
right in the future to occupy the Original Premises, the Expansion Space, the
Second Expansion Space, or the Third Expansion Space or any part thereof, not
previously approved by Landlord (iv) Tenant has no right to any credit, claim,
cause of action, offset or similar charge against Landlord or against the Rent
or any other charges due to Landlord under the Lease; (v) Landlord and Tenant
confirm that from the Third Expansion Space Commencement Date until the Third
Expansion Space Termination Date, the Original Premises, the Expansion Space,
the Second Expansion Space and the Third Expansion Space shall consist of 20,003
rentable square feet; the square footage of the Original Premises, Expansion
Space, Second Expansion Space, Third Expansion Space and the Building set forth
in the this Third Amendment and the Lease are conclusively deemed to be the
actual square footage thereof, without regard to any subsequent remeasurement
(exclusive of any change based upon the determination of useable square feet as
described in section 1 above) of the Original Premises, Expansion Space, Second
Expansion Space, Third Expansion Space or the Building; (vi) Tenant is not
entitled to any future rental abatement, concession, credit or reduction; (vii)
except for this Third Amendment, the Lease has not been modified in any respect;
and (viii) by this Third Amendment the Lease is currently scheduled to terminate
on January 31, 2014.

IN WITNESS WBEREOF, the parties hereto have executed this Third Amendment.

                                                LANDLORD:

                                                CDR PRESIDENTIAL, L.L.C.,
                                                a Limited Liability Company

 /s/  Illegible                                 By: /s/ Richard Werber
--------------------------                          ---------------------------
Witness                                                    Richard Werber
                                                           Vice President

/s/  Illegible                                  Date: January 6, 2003
--------------------------                            -------------------------
Witness

                                                TENANT:

                                   Page 7 of 9
<PAGE>

THIS THIRD AMENDMENT To LEASE by and between CDR Presidential, L.L.C., a Limited
Liability Company organized under the State of Florida ("Landlord") and Concord
Camera Corp., a New Jersey corporation ("Tenant").

                                  CONCORD CAMERA CORP., a New Jersey corporation

 /s/ Margaret K. Lombardo          By: /s/ Rick Finkbeiner
--------------------------             -----------------------------------------
Witness
                                  Print Name:  Rick Finkbeiner
                                             -----------------------------------

                                  Title:            CFO
                                        ----------------------------------------

/s/ Diane L. Micciche             Date:           12-6-02
--------------------------              ----------------------------------------
Witness

                                    Page 8 of 9
<PAGE>

THIS THIRD AMENDMENT To LEASE by and between CDR Presidential, L.L.C., a Limited
Liability Company organized under the State of Florida ("Landlord") and Concord
Camera Corp., a New Jersey corporation ("Tenant").

                                   EXHIBIT "A"

                               PRESIDENTIAL CIRCLE
                               -------------------

5th Floor North Lease Rollover      Renewal Option           Relocation Clause
------------------------------      --------------           -----------------
      RSF           Date
    10,918         7/31/06               None                      Yes
     6,791         8/31/06            One - 5 Year                 Yes
     2,378         8/31/06            One - 5 Year                 Yes

 7th Floor North Lease Rollover     Renewal Option           Relocation Clause
 ------------------------------     --------------           -----------------
      RSF           Date
     4,697     Available 1/1/03
     2,621         8/31/05               None                      No
    12,849         8/31/05           One - 5 Year                  No

                                  Page 9 of 9REORGANIZATION

                                       AND

                            STOCK PURCHASE AGREEMENT

                                 by  and  between

                               TMI  Holdings,  Inc.
                             a  Florida  corporation,

                               on  the  one  hand

                                      and

                                Kina  'Ole,  Inc.
                             a  Hawaii  corporation

                             and  its  Shareholders

                              on  the  other  hand

<PAGE>

                   REORGANIZATION AND STOCK PURCHASE AGREEMENT

     REORGANIZATION  AND  STOCK  PURCHASE AGREEMENT ("Agreement"), dated January
31, 2003, by and among TMI Holdings, Inc., a Florida corporation ("TMI"), on the
one  hand,  and  Kina  'Ole,  Inc., a Hawaiian corporation ("KINA 'OLE") and Mr.
William  M. Sessions ("SESSIONS") and Mr. John W. Meyers ("MEYERS"), who are the
only  shareholders  of  KINA  OLE  (each  a  "Shareholder"  and collectively the
"Shareholders"), on the other hand.  Each of TMI, KINA OLE, and the Shareholders
shall  be  referred  to  herein  as a "Party" and collectively as the "Parties."

                          W  I  T  N  E  S  S  E  T  H

     WHEREAS,  the  Shareholders  collectively  own  100%  of  the  issued  and
outstanding  common  stock of KINA OLE as set forth in Exhibit A attached hereto
(the  "KINA  OLE  Shares");

     WHEREAS, the Shareholders desire to sell and TMI desires to purchase all of
the  KINA  'OLE  Shares  in  accordance  with  the  terms  set  forth  herein;

     WHEREAS,  the  Parties desire and intend that the transactions contemplated
by  this  Agreement will be a tax free reorganization under Section 368(a)(1)(A)
of  the  Internal  Revenue  Code  of  1986,  as  amended.

     NOW  THEREFORE,  in  consideration  of  the  premises and respective mutual
agreements,  covenants,  representations  and warranties herein contained, it is
agreed  between  the  parties  hereto  as  follows:

                                    ARTICLE 1
                    SALE AND PURCHASE OF THE KINA 'OLE SHARES

     1.1     Sale  of  the KINAOLE Shares.  At the Closing, subject to the terms
             ----------------------------
and  conditions  herein  set  forth,  and  on  the basis of the representations,
warranties  and  agreements herein contained, the Shareholders shall sell to TMI
and  TMI  shall purchase from the Shareholders, all of the KINA OLE Shares.  TMI
shall  pay  to William M. Sessions and John W. Meyers, the only Shareholders, as
consideration  for  the  receipt  of  the  KINA OLE Shares, an aggregate of Five
Hundred  Thousand  (500,000)  shares of TMI Series B Convertible Preferred stock
(the  "TMI  Shares").  The  TMI  Shares  will  be  split 250,000 to SESSIONS and
250,000  to  MEYERS.

                                    ARTICLE  2
                         REPRESENTATIONS  AND  WARRANTIES

     2.1     Representations and Warranties of KINAOLE and The Shareholders.  To
             --------------------------------------------------------------
induce  TMI  to  enter  into  this  Agreement and to consummate the transactions
contemplated  hereby, KINA OLE and the Shareholders represent and warrant, as of
the  date  hereof  and  as  of  the  Closing,  as  follows:

     2.1.1     Authority  of  KINAOLE  and  The  Shareholders.  KINA OLE and the
               ----------------------------------------------
Shareholders  have  the  full  right,  power  and  authority  to enter into this
Agreement  and to carry out and consummate the transactions contemplated herein.
This  Agreement  constitutes the legal, valid and binding obligation of KINA OLE
and  the  Shareholders.

<PAGE>

     2.1.2     Corporate  Existence  of KINAOLE.  KINA OLE is a corporation duly
               --------------------------------
organized,  validly existing and in good standing under the laws of the state of
Hawaii.  It has all requisite corporate power, franchises, licenses, permits and
authority  to  own  its properties and assets and to carry on its business as it
has  been  and is being conducted.  It is in good standing in each state, nation
or  other  jurisdiction  wherein  the character of the business transacted by it
makes  such  qualification  necessary.

     2.1.3     Capitalization  of  KINAOLE.  The authorized equity securities of
               ---------------------------
KINA  OLE  consist  of  500,000  shares  of common stock, no par value, of which
500,000  shares are issued and outstanding.  No other shares of capital stock of
KINA  OLE  are issued and outstanding.  All of the issued and outstanding shares
have  been  duly  and  validly  issued  in  accordance  and  compliance with all
applicable  laws,  rules  and  regulations and are fully paid and nonassessable.
There  are no options, warrants, rights, calls, commitments, plans, contracts or
other  agreements  of  any character granted or issued by KINA OLE which provide
for  the  purchase,  issuance  or transfer of any shares of the capital stock of
KINA  OLE nor are there any outstanding securities granted or issued by KINA OLE
that  are  convertible into any shares of the equity securities of KINA OLE, and
none  is authorized.  KINA OLE is not obligated or committed to purchase, redeem
or otherwise acquire any of its equity.  All presently exercisable voting rights
in  KINA  OLE  are vested exclusively in its outstanding shares of common stock,
each  share of which is entitled to one vote on every matter to come before it's
shareholders, and other than as may be contemplated by this Agreement, there are
no  voting trusts or other voting arrangements with respect to any of KINA OLE's
equity  securities.

     2.1.4     Subsidiaries.  "Subsidiary"  or "Subsidiaries" means all corpora-
               ------------
tions,  trusts,  partnerships, associations, joint ventures or other Persons, as
defined  below,  of  which  a  corporation  or  any  other  Subsidiary  of  such
corporation  owns not less than twenty percent (20%) of the voting securities or
other  equity  or  of  which  such  corporation  or any other Subsidiary of such
corporation  possesses, directly or indirectly, the power to direct or cause the
direction  of  the  management and policies, whether through ownership of voting
shares,  management  contracts  or  otherwise.  "Person"  means  any individual,
corporation,  trust,  association, partnership, proprietorship, joint venture or
other  entity.  KINA  OLE  does  not  have  any  subsidiaries.

      2.1.5    Execution  of Agreement.  The  execution  and  delivery  of  this
               -----------------------
Agreement does not, and the consummation of the transactions contemplated hereby
will  not:  (a)  violate,  conflict  with,  modify or cause any default under or
acceleration  of  (or  give  any  party  any  right  to  declare  any default or
acceleration  upon  notice or passage of time or both), in whole or in part, any
charter,  article  of  incorporation,  bylaw,  mortgage,  lien,  deed  of trust,
indenture,  lease,  agreement,  instrument, order, injunction, decree, judgment,
law  or  any  other  restriction  of  any  kind  to which either KINA OLE or the
Shareholders  are  a party or by which either of them or any of their properties
are  bound;  (b)  result  in  the  creation  of  any  security  interest,  lien,
encumbrance, adverse claim, proscription or restriction on any property or asset
(whether  real,  personal,  mixed,  tangible  or  intangible),  right, contract,
agreement or business of KINA OLE or the Shareholders; (c) violate any law, rule
or  regulation  of  any  federal  or  state regulatory agency; or (d) permit any
federal  or state regulatory agency to impose any restrictions or limitations of
any  nature  on KINA OLE or the Shareholders or any of their respective actions.

<PAGE>

     2.1.6     Taxes.
               -----

          2.1.6.1   All taxes, assessments, fees, penalties, interest and  other
governmental  charges  with respect to KINA OLE (or its subsidiaries) which have
become  due  and payable on the date hereof have been paid in full or adequately
reserved  against  by KINA OLE, (including without limitation, income, property,
sales,  use,  franchise,  capital  stock, excise, added value, employees' income
withholding,  social  security  and  unemployment  taxes),  and all interest and
penalties  thereon  with  respect  to the periods then ended and for all periods
thereto;

          2.1.6.2   There  are  no  agreements,  waivers  or  other arrangements
providing  for an extension of time with respect to the assessment of any tax or
deficiency  against  KINA  OLE,  nor  are there any actions, suits, proceedings,
investigations  or  claims  now  pending  against  KINA  OLE,  nor are there any
actions,  suits,  proceedings, investigations or claims now pending against KINA
OLE  in  respect  of any tax or assessment, or any matters under discussion with
any  federal,  state,  local  or  foreign  authority  relating  to  any taxes or
assessments,  or  any claims for additional taxes or assessments asserted by any
such  authority, and there is no basis for the assertion of any additional taxes
or  assessments  against  KINA  OLE;  and

          2.1.6.3   The consummation of the transactions  contemplated  by  this
Agreement  will  not  result  in  the  imposition  of any additional taxes on or
assessments  against  KINA  OLE.

     2.1.7     Disputes  and  Litigation.  There is no suit, action, litigation,
               -------------------------
proceeding,  investigation,  claim, complaint, or accusation pending, threatened
against or affecting KINA OLE or any of its properties, assets or business or to
which  KINA OLE is a party, in any court or before any arbitrator of any kind or
before  or  by  any  governmental  agency  (including,  without  limitation, any
federal,  state,  local,  foreign  or other governmental department, commission,
board,  bureau, agency or instrumentality), and there is no basis for such suit,
action,  litigation, proceeding, investigation, claim, complaint, or accusation;
(b)  there  is  no  pending or threatened change in any environmental, zoning or
building  laws,  regulations or ordinances which affect or could affect KINA OLE
or  any of its properties, assets or businesses; and (c) there is no outstanding
order,  writ,  injunction, decree, judgment or award by  any  court,  arbitrator
or governmental body against or affecting KINA OLE or  any  of  its  properties,
assets or business.  There is no litigation, proceeding,  investigation,  claim,
complaint  or  accusation, formal or informal, or arbitration pending, or any of
the  aforesaid  threatened, or any contingent liability which would give rise to
any  right  of  indemnification  or similar right on the part of any director or
officer  of  KINA OLE or any such person's heirs, executors or administrators as
against  KINA  OLE.

<PAGE>

     2.1.8     Compliance  with  laws.  KINA  OLE  has  at  all  times been, and
               ----------------------
presently  is,  in  full  compliance  with,  and  has not received notice of any
claimed  violation  of,  any applicable federal, state, local, foreign and other
laws,  rules and regulations.  KINA OLE has filed all returns, reports and other
documents  and  furnished  all information required or requested by any federal,
state,  local  or  foreign  governmental  agency  and all such returns, reports,
documents  and  information are true and complete in all respects.  All permits,
licenses,  orders,  franchises  and  approvals  of  all federal, state, local or
foreign  governmental  or regulatory bodies required of KINA OLE for the conduct
of  its  business have been obtained, no violations are or have been recorded in
respect  of  any  such  permits, licenses, orders, franchises and approvals, and
there is no litigation, proceeding, investigation, arbitration, claim, complaint
or  accusation,  formal  or  informal,  pending or threatened, which may revoke,
limit,  or question the validity, sufficiency or continuance of any such permit,
license,  order,  franchise  or  approval.  Such  permits,  licenses,  orders,
franchises  and  approvals are valid and sufficient for all activities presently
carried  on  by  KINA  OLE.

     2.1.9     Guaranties.  KINA OLE has not guaranteed any dividend, obligation
               -----------
or  indebtedness  of  any  Person;  nor  has any Person guaranteed any dividend,
obligation  or  indebtedness  of  KINA  OLE.

     2.1.10    Books  and  Records.  KINA  OLE  keeps  its  books,  records  and
               --------------------
accounts  (including,  without  limitation,  those  kept for financial reporting
purposes  and for tax purposes) in accordance with good business practice and in
sufficient  detail  to  reflect the transactions and dispositions of its assets,
liabilities  and equities.  The minute books of KINA 'OLE contain records of its
shareholders'  and  directors' meetings and of action taken by such shareholders
and  directors.  The  meeting  of directors and shareholders referred to in such
minute  books  were  duly called and held, and the resolutions appearing in such
minute  books  were  duly  adopted.  The  signatures  appearing on all documents
contained in such minute books are the true signatures of the persons purporting
to  have  signed  the  same.  A  true  and  accurate list of KINA OLE assets and
liabilities  as  of  the Closing Date is attached hereto as Exhibit B.  Further,
attached  hereto  as Exhibit C is a list of all contracts to which KINA OLE is a
party  or  obligated, and KINA OLE hereby represents and warrants that there are
no  other  material contracts or agreements in existence as of the Closing Date.

     2.1.11    The  Shareholders acknowledge that all of the TMI Shares will  be
"restricted  securities"(as  such  term is defined in Rule 144 promulgated under
the  Securities  Act  of  1933,  as  amended ("Rule 144")), and will include the
restrictive legend set forth in Section 3.2 hereof, and, except as otherwise set
forth in this Agreement, that the shares cannot be sold for a period of at least
one  year  from  the  date  of issuance unless registered with the United States
Securities  and  Exchange  Commission ("SEC") and qualified by appropriate state
securities  regulators,  or  unless  the  Shareholders  obtain  written  consent
from TMI and otherwise comply with  an  exemption  from  such  registration  and
qualification  (including,  without  limitation,  compliance  with  Rule  144).

     2.2     Representations  and Warranties of TMI.  To induce KINA OLE and the
             --------------------------------------
Shareholders  to  enter  into  this Agreement and to consummate the transactions
contemplated  hereby,  TMI represents and warrants, as of the date hereof and as
of  the  Closing,  as  follows:

<PAGE>

     2.2.1     Corporate  Existence  and Authority of TMI.  TMI is a corporation
               ------------------------------------------
duly  organized,  validly  existing  and  in good standing under the laws of the
State  of  Florida.  It has all requisite corporate power, franchises, licenses,
permits  and  authority  to  own  its  properties and assets and to carry on its
business  as it has been and is being conducted.  It is in good standing in each
state,  nation or other jurisdiction in each state, nation or other jurisdiction
wherein  the character of the business transacted by it makes such qualification
necessary.

     2.2.2     Capitalization  of  TMI.  The authorized equity securities of TMI
               ------------------------
consists of 1,500,000 shares of common stock, of which 189,631 shares are issued
and  outstanding as of the date hereof, and 1,500,000 shares of preferred stock,
of which 250,000 shares are issued or outstanding as Series A Preferred Stock as
of  the  date  hereof.  No  other  shares of capital stock of TMI are issued and
outstanding.  All  of  the  issued  and  outstanding  shares  have been duly and
validly  issued in accordance and compliance with all applicable laws, rules and
regulations  and  are  fully  paid and nonassessable.  All presently exercisable
voting  rights in TMI are vested exclusively in its outstanding shares of common
stock,  each  share  of  which  is  entitled to one vote on every matter to come
before  it's  shareholders,  and in its shares of Series A Preferred Stock, each
share  of  which is entitled to ten votes on every matter that comes before it's
shareholders.  Other than as may be contemplated by this Agreement, there are no
voting  trusts  or other voting arrangements with respect to any of TMI's equity
securities.

     2.2.3     Subsidiaries.  TMI  currently  has  no  subsidiaries.
               -------------

     2.2.4     Execution  of  Agreement.  The  execution  and  delivery  of this
               -------------------------
Agreement does not, and the consummation of the transactions contemplated hereby
will  not:  (a)  violate,  conflict  with,  modify or cause any default under or
acceleration  of  (or  give  any  party  any  right  to  declare  any default or
acceleration  upon  notice or passage of time or both), in whole or in part, any
charter,  article  of  incorporation,  bylaw,  mortgage,  lien,  deed  of trust,
indenture,  lease,  agreement,  instrument, order, injunction, decree, judgment,
law  or any other restriction of any kind to which TMI is a party or by which it
or  any  of its properties are bound; (b) result in the creation of any security
interest,  lien,  encumbrance, adverse claim, proscription or restriction on any
property  or  asset  (whether  real,  personal,  mixed, tangible or intangible),
right,  contract,  agreement  or  business  of TMI; (c) violate any law, rule or
regulation  of any federal or state regulatory agency; or (d) permit any federal
or  state  regulatory  agency  to  impose any restrictions or limitations of any
nature  on  TMI  or  any  of  its  actions.

     2.2.5     Series B Preferred Stock.  TMI will create a series of  preferred
               -------------------------
stock  entitled  TMI  Holdings,  Inc. Series B Convertible Preferred Stock, with
500,000  shares  authorized  and  the  rights and preferences as outlined in the
Certificate  of  Designation  attached hereto as Exhibit D. TMI will timely file
all  documentation  to  effectuate  the creation and issuance of the TMI Shares.

<PAGE>

                                    ARTICLE  3
                      CLOSING  AND  DELIVERY  OF  DOCUMENTS

     3.1     Closing.  The  Closing  shall  be deemed to have occurred as of the
             --------
date that each of the Parties hereto has executed this Agreement.  Subsequent to
the  Closing  the  following  shall  occur  as  a single integrated transaction:

     3.2     Delivery  by  TMI:
             ------------------

     (a)     TMI  shall  deliver  to the Shareholders the TMI Shares, fully paid
and  non-assessable  and  subject  to  no  liens,  security  interests, pledges,
encumbrances,  charges,  restrictions,  demands  or  claims  in  any other party
whatsoever,  except  as  set  forth  in  the legend on the certificate(s), which
legend  shall  provide  as  follows:

               THE  SECURITIES  REPRESENTED  BY  THIS  CERTIFICATE HAVE NOT BEEN
               REGISTERED  UNDER  THE  SECURITIES  ACT  OF 1933, AS AMENDED (THE
               "ACT"),  OR  THE  SECURITIES  LAWS  OF  ANY STATE, AND MAY NOT BE
               OFFERED,  SOLD,  TRANSFERRED, PLEDGED, HYPO-THECATED OR OTHERWISE
               DISPOSED  OF  FOR  A PERIOD OF ONE YEAR FROM THE ISSUANCE THEREOF
               EXCEPT  (i) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
               THE  ACT  AND  ANY APPLICABLE STATE LAWS OR (ii) UPON THE EXPRESS
               WRITTEN  AGREEMENT  OF  THE COMPANY AND COMPLIANCE, TO THE EXTENT
               APPLICABLE,  WITH  RULE  144  UNDER  THE ACT (OR ANY SIMILAR RULE
               UNDER  THE  ACT  RELATING  TO  THE  DISPOSITION  OF  SECURITIES).

     (b)     TMI  shall  deliver  to  KINA  OLE  and  the  Shareholders  written
confirmation of the approval of the herein described transactions by TMI's Board
of  Directors  as  set  forth  in  Section  4.1  hereof.

     (c)     TMI  shall  deliver  to  the  Shareholders  written confirmation of
the approval of the creation and  issuance of the TMI Shares with the rights and
preferences  as  described  in the Certificate of Designation attached hereto as
Exhibit  D.

     3.3     Delivery  by  The  Shareholders:
             --------------------------------

     (a)     The  Shareholders  shall deliver to TMI the KINA OLE Shares subject
to  no  liens, security interests, pledges, encumbrances, charges, restrictions,
demands  or  claims  in  any  other  party  whatsoever.

                                    ARTICLE  4
                 CONDITIONS,  TERMINATION,  AMENDMENT  AND  WAIVER

     4.1     Conditions Precedent.  This Agreement, and the transactions contem-
             ---------------------
plated  hereby,  shall  be  subject to the approval of the Board of Directors of
TMI,  which  shall  be  delivered  at  the  Closing.

<PAGE>

     4.2     Termination.  Notwithstanding anything to  the  contrary  contained
             ------------
in this Agreement,  this  Agreement  may  be  terminated  and  the  transactions
contemplated  hereby  may  be abandoned only by the mutual consent of all of the
parties.

     4.3     Waiver  and  Amendment.  Any  term, provision, covenant, represent-
             -----------------------
ation,  warranty  or  condition  of  this Agreement may be waived, but only by a
written  instrument  signed  by  the party entitled to the benefits thereof. The
failure or delay of any party at any time or times to require performance of any
provision  hereof or to exercise its rights with respect to any provision hereof
shall  in  no  manner  operate  as a waiver of or affect such party's right at a
later  time  to enforce the same. No waiver by any party of any condition, or of
the  breach  of  any  term,  provision,  covenant,  representation  or  warranty
contained in this Agreement, in any one or more instances, shall be deemed to be
or  construed  as a further or continuing waiver of any such condition or breach
or  waiver of any other condition or of the breach of any other term, provision,
covenant,  representation  or  warranty.  No  modification  or amendment of this
Agreement  shall  be valid and binding unless it be in writing and signed by all
parties  hereto.

                                    ARTICLE  5
                                    COVENANTS

     5.1     To  induce  TMI  to enter into this Agreement and to consummate the
transactions  contemplated hereby, and without limiting any covenant, agreement,
representation  or  warranty  made,  KINA  OLE and the Shareholders covenant and
agree  as  follows:

     5.1.1     Notices  and Approvals.  KINA OLE and the Shareholders agree: (a)
               ----------------------
to  give all notices to third parties which may be necessary or deemed desirable
by  TMI  in  connection  with  this  Agreement  and  the  consummation  of   the
transactions  contemplated  hereby;  (b)  to  use its best efforts to obtain all
federal  and  state  governmental regulatory agency approvals, consents, permit,
authorizations,  and  orders  necessary or deemed desirable by TMI in connection
with this Agreement and the consummation of the transaction contemplated hereby;
and (c) to use its best efforts to obtain all consents and authorizations of any
other third parties necessary or deemed desirable by TMI in connection with this
Agreement  and  the  consummation  of  the  transactions  contemplated  hereby.

     5.1.2     Information  for  TMI's  Statements and Applications.  The Share-
               ------------------------------------------------------
holders  and  KINA  OLE  and  their  employees,  accountants and attorneys shall
cooperate  fully  with  TMI in the preparation of any statements or applications
made by TMI to any federal or state governmental regulatory agency in connection
with  this Agreement and the transactions contemplated hereby and to furnish TMI
with  all  information  concerning  the  Shareholders  and KINA OLE necessary or
deemed  desirable  by  TMI  for  inclusion  in such statements and applications,
including, without limitation, all requisite financial statements and schedules.

     5.1.3     Access  to  Information.   TMI,  together  with  its  appropriate
               -----------------------
attorneys,  agents  and representatives, shall be permitted to make the full and
complete  investigation of the Shareholders and KINA OLE and have full access to
all  of  the  books  and  records of the other during reasonable business hours.
Notwithstanding  the foregoing, such parties shall treat all such information as
confidential  and  shall not disclose such information without the prior consent
of  the  other.

<PAGE>

     5.2     To  induce  KINA  OLE  and  the  Shareholders  to  enter  into this
Agreement  and  to  consummate the transactions contemplated hereby, and without
limiting any covenant, agreement, representation or warranty made, TMI covenants
and  agrees  as  follows:

     5.2.1     Access  to  Information.  The  Shareholders,  together with their
               -----------------------
appropriate  attorneys,  agents  and representatives, shall be permitted to make
the  full  and  complete investigation of TMI and have full access to all of the
books  and  records  of  the  other  during reasonable business hours.  Notwith-
standing  the  foregoing,  such  parties  shall  treat  all  such information as
confidential  and  shall not disclose such information without the prior consent
of  the  other.

                                    ARTICLE 6
                                  MISCELLANEOUS

     6.1     Expenses.  Except  as  otherwise  specifically provided for herein,
             ---------
whether or not the transactions contemplated hereby are consummated, each of the
parties  hereto  shall  bear  the  cost  of all fees and expenses relating to or
arising  from  its  compliance with the various provisions of this Agreement and
such  party's  covenants  to  be  performed  hereunder,  and except as otherwise
specifically  provided  for herein, each of the parties hereto agrees to pay all
of  its  own expenses (including, without limitation, attorneys and accountants'
fees  and  printing  expenses)  incurred  in connection with this Agreement, the
transactions  contemplated  hereby, the negotiations leading to the same and the
preparations  made  for  carrying  the  same  into effect, and all such fees and
expenses  of  the  parties  hereto  shall  be  paid  prior  to  Closing.

     6.2     Notices.  Any  notice,  request,  instruction  or  other  document
             --------
required  by the terms of this Agreement, or deemed by any of the parties hereto
to  be  desirable, to be given to any other party hereto shall be in writing and
shall be given by hand delivery, overnight mail with a recognized carrier, or by
facsimile  with  facsimile  confirmation,  to  the  following  addresses:

To  TMI:

     TMI  Holdings,  Inc.
     4463  Pahe'e  Street,  Suite  203-B
     Lihue,  HI  96766
     Attn:  President

with  a  copy  to:

     The  Lebrecht  Group,  APLC
     22342  Avenida  Empresa,  Suite  220
     Rancho  Santa  Margarita,  CA  92688
     Attn:  Craig  V.  Butler,  Esq.
     Facsimile  (949)  635-1244

<PAGE>

To  KINA  OLE  or  the  Shareholders:

     Kina  Ole
     4463  Pahe'e  Street,  Suite  203-B
     Lihue,  HI  96766

     William  M.  Sessions
     4463  Pahe'e  Street,  Suite  203-B
     Lihue,  HI  96766

     John  W.  Meyers
     4463  Pahe'e  Street,  Suite  203-B
     Lihue,  HI  96766

     Notice  shall be deemed to be given at the time of receipt of the notice by
the  recipient.  The  persons  and addresses set forth above may be changed from
time  to  time  by  a  notice  sent  as  stated  in  this  Section.

     6.3     Entire  Agreement.  This  Agreement,  together  with  the schedules
             ------------------
and  exhibits  hereto,  sets forth the entire agreement and understanding of the
parties  hereto  with  respect  to  the  transactions  contemplated  hereby, and
supersedes  all prior agreements, arrangements and understandings related to the
subject  matter  hereof.  No  understanding,  promise,  inducement, statement of
intention,  representation,  warranty,  covenant  or condition, written or oral,
express  or implied, whether by statute or otherwise, has been made by any party
hereto  which  is  not  embodied  in  this  Agreement, or exhibits hereto or the
written  statements,  certificates, or other documents delivered pursuant hereto
or  in connection with the transactions contemplated hereby, and no party hereto
shall  be bound by or liable for any alleged understanding, promise, inducement,
statement,  representation,  warranty,  covenant  or condition not so set forth.

     6.4     Survival  of  Representations.  All  statements  of fact (including
             ------------------------------
financial statements) contained in the schedules, the exhibits, the certificates
or  any  other instrument delivered by or on behalf of the  parties  hereto,  or
in connection  with  the  transactions  contemplated  hereby,  shall  be  deemed
representations  and  warranties  by  the  respective  party  hereunder.  All
representations,  warranties,  agreements, and covenants hereunder shall survive
the Closing and remain effective regardless of any investigation or audit at any
time  made by or on behalf of the parties or of any information a party may have
in  respect thereto.  Consummation of the transactions contemplated hereby shall
not  be  deemed  or construed to be a waiver of any right or remedy possessed by
any  party  hereto, notwithstanding that such party knew or should have known at
the  time  of  Closing  that  such  right  or  remedy  existed.

     6.5     Incorporated  by  Reference.  All  documents  (including,  without
             ----------------------------
limitation,  all  financial  statements)  delivered  as  part hereof or incident
hereto  are  incorporated  as  a  part  of  this  Agreement  by  reference.

     6.6     Remedies  Cumulative.  No remedy herein conferred upon any Party is
             ---------------------
intended  to  be  exclusive  of  any other remedy and each and every such remedy
shall  be  cumulative  and  shall  be  in  addition  to every other remedy given
hereunder  or  now  or  hereafter  existing at law or in equity or by statute or
otherwise.

<PAGE>

     6.7     Execution  of  Additional Documents.  Each party hereto shall make,
             ------------------------------------
execute,  acknowledge and deliver such other instruments and documents, and take
all  such other actions as may be reasonably required in order to effectuate the
purposes  of  this  Agreement  and  to  consummate the transactions contemplated
hereby.

     6.8     Finders'  and  Related  Fees.  Each  of  the  parties  hereto  is
             -----------------------------
responsible  for,  and shall indemnify the other against, any claim by any third
party to a fee, commission, bonus or other remuneration arising by reason of any
services  alleged  to  have been rendered to or at the instance of said party to
this  Agreement  with  respect  to  this Agreement or to any of the transactions
contemplated  hereby.

     6.9     Governing  Law.  This Agreement has been negotiated and executed in
             ---------------
the  State  of Hawaii and shall be construed and enforced in accordance with the
laws  of  such  state.

     6.10    Forum.  Each  of the parties hereto agrees that any action or  suit
             -----
which  may  be  brought  by  any  party hereto against any other party hereto in
connection  with  this  Agreement or the transactions contemplated hereby may be
brought  only  in  a  federal  or  state  court  in  Honolulu  County,  Hawaii.

     6.11    Attorneys'  Fees.   Except  as  otherwise  provided  herein,  if  a
             ----------------
dispute  should  arise  between  the  parties  including,  but  not  limited  to
arbitration,  the  prevailing  party  shall  be reimbursed by the non-prevailing
party  for all reasonable expenses incurred in resolving such dispute, including
reasonable  attorneys' fees exclusive of such amount of attorneys' fees as shall
be a premium for result or for risk of loss under a contingency fee arrangement.

     6.12    Binding  Effect  and  Assignment.  This  Agreement  shall  inure to
              ---------------------------------
the  benefit  of  and  be  binding  upon the parties hereto and their respective
heirs,  executors,  administrators,  legal  representatives  and  assigns.

     6.13    Counterparts.  This  Agreement  may  be  executed in  counterparts,
             -------------
each  of  which  shall  be  deemed  an original, but all of which together shall
constitute  one  and the same instrument.  In making proof of this Agreement, it
shall not be necessary to produce or account for more than one such counterpart.

     IN  WITNESS WHEREOF, the parties hereto have executed this Agreement, as of
the  date  first  written  hereinabove.

"TMI"                                   "KINA  OLE"

TMI  HOLDINGS,  INC.                     KINA  OLE,  INC.
A  FLORIDA  CORPORATION                  A  HAWAIIAN  CORPORATION

/s/ William M. Sessions                  /s/ John W. Meyers
-------------------------------          -----------------------------
By:  William  M.  Sessions               By:  John  W.  Meyers
Its:  President                          Its:  President

<PAGE>

"Shareholders"

/s/ William M. Sessions
-------------------------------------------
By:  William  M.  Sessions,  an  individual

/s/ John W. Meyers
-------------------------------------------
By:  John  W.  Meyers,  an  individual

<PAGE>

                                    EXHIBIT  A

     Shareholder                      No.  of  Kina  'Ole  Shares
     -----------                      ---------------------------

     William  M.  Sessions                      250,000

     John  W.  Meyers                           250,000

<PAGE>
                                    EXHIBIT  B

                       ASSETS  AND  LIABILITIES  OF  KINA  OLE
                           AS  OF  THE  DATE  OF  CLOSING

<PAGE>
                                    EXHIBIT  C

                          CONTRACTS  TO  WHICH  KINA  'OLE
                           IS  A  PARTY  OR  IS  OBLIGATED

1.     Joint  venture  arrangement  with  Robert  Wilden,  under with Mr. Wilden
purchased  the  properties  and  Kina  Ole is doing improvements and selling two
lot/house  packages  in  exchange  for a 20% commission from final sale proceeds
going  to  Kina  Ole.

2.     Joint  venture  arrangement  with  Laurin and Kaye Davis, under which the
Davises  own  the  property  and  Kina Ole is doing improvements and selling the
house  in  exchange  for a commission from the final sale proceeds going to Kina
Ole.

3.     On  December  11,  2002, Kina Ole entered into three loans  for  a  total
of $670,000.  The loan agreements  are  with  three  investors,  Dudley  Leinani
Fullard-Leo,  trustee  of  the  Dudley  Leinani  Fullard-Leo Palmyra Trust dated
December  29,1995;  Ainsley  A.  K.  Fullard-Leo,  Trustee  of the Ainsley A. K.
Fullard-Leo  Revocable  Living Trust as amended dated April 30, 1992; and Dudley
Leinani  Fullard-Leo,  Trustee  of  The  L.V.F.L.  Family  Trust, as amended and
restated,  dated  December  14,  2000.  These  loans become due June 11, 2003.

<PAGE>
                                    EXHIBIT  D

                           CERTIFICATE OF DESIGNATION
                     OF THE RIGHTS, PREFERENCES, PRIVILEGES
                    AND RESTRICTIONS, WHICH HAVE NOT BEEN SET
                    FORTH IN THE CERTIFICATE OF INCORPORATION
                          OR IN ANY AMENDMENT THERETO,
                                     OF THE
                      SERIES B CONVERTIBLE PREFERRED STOCK
                                       OF
                               TMI HOLDINGS, INC.

     (Pursuant to Section 607.0602 of the Florida Business Corporation Act)

     The  undersigned,  William  M.  Sessions,  does  hereby  certify  that:

     A.     He is the duly elected and acting President of TMI Holdings, Inc., a
Florida  Corporation  (the  "Corporation").

     B.     Pursuant  to the Unanimous Written Consent of the Board of Directors
of  the  Corporation dated January 31, 2003, the Board of Directors duly adopted
the  following  resolutions:

     WHEREAS,  the  Certificate of Incorporation of the Corporation authorizes a
class  of  stock  designated  as  Preferred Stock, with a par value of $0.01 per
share  (the  "Preferred  Class"),  comprising  one million five hundred thousand
(1,500,000)  shares  and provides that the Board of Directors of the Corporation
may  fix  the  terms,  including any dividend rights, dividend rates, conversion
rights,  voting  rights,  rights  and  terms  of  any  redemption,  redemption,
redemption  price  or  prices,  and  liquidation  preferences,  if  any,  of the
Preferred  Class;

     WHEREAS,  the  Board  of Directors believes it in the best interests of the
Corporation  to  create a series of preferred stock consisting of 500,000 shares
and  designated  as  the  "Series  B Convertible Preferred Stock" having certain
rights,  preferences, privileges, restrictions and other matters relating to the
Series  B  Convertible  Preferred  Stock.

     NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby fix
and  determine  the  rights,  preferences,  privileges,  restrictions  and other
matters  relating  to  the  Series  B  Convertible  Preferred  Stock as follows:

     1.     Definitions.  For  purposes  of this Certificate of Designation, the
            ------------
following  definitions  shall  apply:

     1.1     "Board" shall mean the  Board  of  Directors  of  the  Corporation.

     1.2     "Corporation" shall mean TMI Holdings, Inc., a Florida Corporation.

<PAGE>

     1.3     "Common Stock" shall mean the Common Stock,  $0.01  par  value  per
share, of  the  Corporation.

     1.4     "Common  Stock Dividend" shall mean a stock dividend  declared  and
paid on  the  Common  Stock  that  is  payable  in  shares  of  Common  Stock.

     1.5     "Distribution"  shall  mean the transfer of cash or property by the
Corporation to one or more of its stockholders without consideration, whether by
dividend  or  otherwise  (except  a  dividend in shares of Corporation's stock).

     1.6     "Original  Issue Date" shall mean the date on which the first share
of Series  B  Convertible  Preferred  Stock  is  issued  by  the  Corporation.

     1.7     "Series  B  Convertible  Preferred  Stock"  shall mean the Series B
Convertible  Preferred  Stock,  $0.01  par  value per share, of the Corporation.

     1.8     "Subsidiary"  shall  mean  any  corporation  or  limited  liability
Corporation  of  which  at  least  fifty percent (50%) of the outstanding voting
stock or membership interests, as the case may be, is at the time owned directly
or  indirectly  by  the  Corporation  or  by  one  or  more  of  such subsidiary
corporations.

     2.     Dividend  Rights.
            ----------------

     2.1     In each calendar year, the holders of the then outstanding Series B
Convertible  Preferred  Stock  shall  be  entitled  to  receive, when, as and if
declared  by  the  Board, out of any funds and assets of the Corporation legally
available  therefor, noncumulative dividends in an amount equal to any dividends
or  other  Distribution  on the Common Stock in such calendar year (other than a
Common  Stock Dividend); provided however, no dividend shall be declared or paid
when  there  is  outstanding  indebtedness  of  the  Corporation  or any accrued
interest remains outstanding on such indebtedness unless the holder of such debt
waives  this condition.  No dividends (other than a Common Stock Dividend) shall
be  paid,  and  no  Distribution shall be made, with respect to the Common Stock
unless  dividends  in such amount shall have been paid or declared and set apart
for  payment  to  the  holders  of  the  Series  B  Convertible  Preferred Stock
simultaneously.  Dividends on the Series B Convertible Preferred Stock shall not
be  mandatory  or  cumulative,  and  no  rights  or interest shall accrue to the
holders  of  the Series B Convertible Preferred Stock by reason of the fact that
the  Corporation  shall  fail  to  declare  or  pay  dividends  on  the Series B
Convertible  Preferred  Stock, except for such rights or interest that may arise
as a result of the Corporation paying a dividend or making a Distribution on the
Common  Stock  in  violation  of  the  terms  of  this  Section  2.

     2.2     Participation  Rights.  Dividends  shall  be  declared  pro rata on
the  Common  Stock  and the Series B Convertible Preferred Stock on a pari passu
basis  according  to  the number of shares of Common Stock held by such holders,
where  each  holder  of  shares of Series B Preferred Stock is to be treated for
this  purpose  as  holding  the  number  of  shares of Common Stock to which the
holders  thereof  would  be  entitled if they converted their shares of Series B
Convertible  Preferred  Stock  at  the  time of such dividend in accordance with
Section  4  hereof.

<PAGE>

     2.3     Non-Cash  Dividends.  Whenever a dividend or Distribution  provided
for in this Section 2 shall be payable in property other than cash (other than a
Common  Stock  Dividend),  the  value  of such dividend or Distribution shall be
deemed  to be the fair market value of such property as determined in good faith
by  the  Board.

     3.     Liquidation  Rights.  The Series B Convertible Preferred Stock shall
            --------------------
have  the  same  liquidation  preference  as  the  Common  Stock.

     4.     Conversion  Rights.
            ------------------

     (a)     Conversion  of Preferred Stock.  Each share of Series B Convertible
Preferred  Stock  shall  be  convertible  into  thirty  (30) fully paid and non-
assessable  shares  of  Common  Stock  of the Corporation. This conversion shall
occur  automatically  at  the  time  the  Corporation  has  sufficient shares of
authorized  common stock to convert each share of Series B Convertible Preferred
Stock  into  thirty (30) shares of common stock. Notwithstanding the above, each
share  of  Series B Convertible Preferred Stock shall automatically be converted
into  one  fully paid and nonassessable share of Common Stock of the Corporation
described  herein  immediately  upon  the  resignation  or removal of the holder
thereof  from  the  Corporation's  Board  of  Directors.

     (b)     Procedures  for  Exercise  of  Conversion Rights.   The  shares  of
Series  B Convertible Preferred Stock will automatically convert to common stock
as  soon  as the Corporation has sufficient authorized shares of common stock to
convert  the  shares  of Series B Convertible Preferred Stock in accordance with
Section 4(a), above. Once the Corporation has sufficient authorized common stock
to  effectuate  the  conversion then the conversion shall be deemed to have been
effected  on  the  date  when  the  Corporation  first  had sufficient shares of
authorized  common  stock to effectuate the conversion (except that in the event
of an automatic conversion pursuant to Section 4(a) above, such conversion shall
be  deemed  to  have  been  made immediately prior to the holders resignation or
removal),  and  such  date  is  referred to herein as the "Conversion Date."  As
promptly  as  practicable after the Conversion Date, the Corporation shall issue
and deliver to or upon the written order of such holder, at such office or other
place  designated  by  the  Corporation,  a  certificate or certificates for the
number  of  full  shares  of Common Stock to which such holder is entitled and a
check  for  cash  with  respect  to any fractional interest in a share of Common
Stock  as  provided  in  section 4(c) below.  The holder shall be deemed to have
become  a  shareholder  of  record  on  the  Conversion  Date.

     (c)     No Fractional Shares.  No fractional  shares  of  Common  Stock  or
scrip  shall  be  issued  upon  conversion  of  shares  of  Series B Convertible
Preferred Stock.  If more than one share of Series B Convertible Preferred Stock
shall  be  surrendered  for  conversion  at any one time by the same holder, the
number  of full shares of Common Stock issuable upon conversion thereof shall be
computed  on the basis of the aggregate number of shares of Series B Convertible
Preferred  Stock  so  surrendered.  Instead  of  any fractional shares of Common
Stock  which would otherwise be issuable upon conversion of any shares of Series
B  Convertible  Preferred  Stock, the Corporation shall pay a cash adjustment in
respect  of  such  fractional  interest  equal  to the fair market value of such
fractional  interest  as  determined  by  the  Corporation's Board of Directors.

<PAGE>

     (d)     Payment  of  Taxes  for  Conversions.  The  Corporation  shall  pay
any and all issue and other taxes that may be payable in respect of any issue or
delivery  of  shares  of  Common Stock on conversion pursuant hereto of Series B
Convertible Preferred Stock.  The Corporation shall not, however, be required to
pay  any  tax  which  may  be payable in respect of any transfer involved in the
issue  and delivery of shares of Common Stock in a name other than that in which
the shares of Series B Convertible Preferred Stock so converted were registered,
and  no  such  issue  or  delivery  shall  be  made  unless and until the person
requesting such issue has paid to the Corporation the amount of any such tax, or
has  established, to the satisfaction of the Corporation, that such tax has been
paid.

     (e)     Reservation  of  Common  Stock.  The Corporation will  use its best
efforts,  but  is under no obligation, to keep available authorized but unissued
Common Stock for the purpose of effecting any requested conversion of the Series
B  Convertible  Preferred  Stock.

     (f)     Registration  or  Listing  of  Shares  of  Common  Stock.   If  any
shares of Common Stock to be reserved for the purpose of conversion of shares of
Series  B  Convertible  Preferred Stock require registration or listing with, or
approval of, any governmental authority, stock exchange or other regulatory body
under  any  federal  or state law or regulation or otherwise, before such shares
may be validly issued or delivered upon conversion, the Corporation will in good
faith  and  as  expeditiously  as possible endeavor to secure such registration,
listing  or  approval,  as  the  case  may  be.

     (g)     Status  of Common Stock  Issued  Upon  Conversion.  All  shares  of
Common  Stock  which  may  be  issued  upon conversion of the shares of Series B
Convertible  Preferred  Stock  will  upon issuance by the Corporation be validly
issued,  fully paid and nonassessable and free from all taxes, liens and charges
with  respect  to  the  issuance  thereof.

     (h)     Status  of  Converted  Preferred Stock.   In  case  any  shares  of
Series B Convertible Preferred Stock shall be converted pursuant to this Section
4,  the  shares  so converted shall be canceled and shall not be issuable by the
Corporation.

     5.     Adjustment  of  Conversion  Price.
            ---------------------------------

     (a)     General  Provisions.  In  case,  at any time after the date hereof,
of  any  capital  reorganization,  or  any  reclassification of the stock of the
Corporation (other than a change in par value or as a result of a stock dividend
or  subdivision,  split-up  or  combination  of shares),  or  the  consolidation
or merger  of  the  Corporation  with  or  into  another  person  (other  than a
consolidation  or  merger  in which the Corporation is the continuing entity and
which  does  not  result  in  any change in the Common Stock), or of the sale or
other  disposition  of all or substantially all the properties and assets of the
Corporation  as  an  entirety  to  any  other  person,  the  shares  of Series B
Convertible  Preferred Stock shall, after such reorganization, reclassification,
consolidation,  merger,  sale or other disposition, be convertible into the kind
and number of shares of stock or other securities or property of the Corporation
or  of  the entity resulting from such consolidation or surviving such merger or
to  which  such  properties  and  assets  shall  have  been  sold  or  otherwise
disposed  to  which such holder would have been entitled if immediately prior to
such  reorganization,  reclassification,  consolidation,  merger,  sale or other
disposition  it had converted its shares of Series B Convertible Preferred Stock
into  Common Stock. The provisions of this Section 5(a) shall similarly apply to
successive reorganizations, reclassifications, consolidations, mergers, sales or
other  dispositions.

     (b)     No Impairment.  The Corporation  will  not,  through  any reorgani-
tion,  transfer  of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, including amending this Certificate of
Designation,  avoid or seek to avoid the observance or performance of any of the
terms  to be observed or performed hereunder by the Corporation, but will at all
times  in  good  faith  assist in the carrying out of all the provisions of this
Section  5  and  in  the  taking  of  all  such  action  as  may be necessary or
appropriate in order to protect the conversion rights of the holders of Series B
Convertible  Preferred  Stock  against  impairment.  This  provision  shall  not
restrict  the  Corporation  from  amending  its  Articles  of  Incorporation  in
accordance  with  the  General  Corporation  Law of the State of Florida and the
terms  hereof.

     7.     Redemption.  The  Series  B Convertible Preferred Stock shall not be
            ----------
redeemable.

     8.     Notices.  Any notices required by the provisions of this Certificate
            -------
of  Designation  to  be  given  to the holders of shares of Series B Convertible
Redeemable  Preferred  Stock  shall  be  deemed given if deposited in the United
States  mail,  postage  prepaid,  and  addressed to each holder of record at its
address  appearing  on  the  books  of  the  Corporation.

     9.     Voting  Provisions.  Each  share  of Series B Convertible  Preferred
                 ------------------
Stock  shall  be  entitled  to  thirty  (30)  votes  on all matters to which the
shareholders  of  the  Corporation  are  entitled  or  required  to  vote.

     10.    Restriction  on  Issuance.  The Series B Convertible Preferred Stock
                  -------------------------
may  only  be  issued  to  and  held by members of the Board of Directors of the
Corporation. In the event of any holder's resignation or removal from the Board,
the  conversion  provisions  of  Section  4  shall  apply.

     IN  WITNESS  WHEREOF,  the  Corporation  has  caused  this  Certificate  of
Designation  of  Series B Convertible Preferred Stock to be duly executed by its
President  and  attested  to  by  its  Secretary this 31st day of January, 2003.

By:  /s/ William M. Sessions
     ---------------------------------
     William  M.  Sessions,  President

By:  /s/ William M. Sessions
     ---------------------------------
     William  M.  Sessions,  Secretary

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