Document:

TMI HOLDINGS, INC.
                               2003 NON-QUALIFIED
                           STOCK GRANT AND OPTION PLAN

     1.   PURPOSE:  This  Non-Qualified  Stock  Grant  and  Option  Plan  (the
          ------
"Plan") is intended to serve as an incentive to and to encourage stock ownership
by  certain  directors,  officers,  employees  of  and certain persons rendering
service  to  TMI  Holdings,  Inc., a Florida corporation (the "Corporation"), so
that  they  may acquire or increase their proprietary interest in the success of
the  Corporation,  and to encourage them to remain in the Corporation's service.

     2.   ADMINISTRATION:  The  Plan  shall  be  administered  by  a  committee
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appointed  by  the  Corporation's  Board  of  Directors  (the  "Committee"). The
Committee  shall  consist  of  not  less  than  three  (3)  members who shall be
appointed  by,  and  serve  at  the  pleasure  of,  the  Corporation's  Board of
Directors.  The Board of Directors may from time to time remove members from, or
add members to, the Committee. Vacancies on the Committee, however caused, shall
be  filled only by the Board of Directors. The Committee shall select one of its
members  as Chairman, and shall hold meetings at such times and places as it may
determine. Acts by a majority of the Committee in a meeting at which a quorum is
present  and  acts  approved  in  writing  by  a  majority of the members of the
Committee  shall  be the valid acts of the Committee. No member of the Committee
shall  vote  on  any matter concerning his or her own participation in the Plan,
except  that  the  Board  of  Directors as a whole may act on options granted to
directors. If no Committee has been appointed, the entire Board shall constitute
the  Committee.

          The  Committee shall be authorized to grant stock and/or options under
the  Plan  to such directors, officers, employees of and other persons rendering
service  to  the  Corporation  or  any  parent  or subsidiary corporation of the
Corporation,  as  defined  for  purposes  of  Internal Revenue Code Section 422A
("Parent  or  Subsidiary"),  at such times and in such amounts as it may decide.

          The interpretation and construction by the Committee of any provisions
of  the  Plan  or of any option granted under it shall be final unless otherwise
determined  by  the  Board of Directors.  No member of the Committee or Board of
Directors  shall  be  liable  for any action or determination made in good faith
with  respect  to  the  Plan  or  any  option  granted  under  it.

     3.     ELIGIBILITY
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          3.1.  General:  Any person who performs services of special importance
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to  the  Corporation,  or  any  Parent  or  Subsidiary  thereof, relating to the
Corporation's  management, operation or development shall be eligible to receive
stock or options under the Plan.  The selection of stock and/or options received
shall  be within the sole and absolute discretion of the Committee, or the Board
of  Directors.

<PAGE>

          3.2.  Termination  of  Eligibility: Any option granted hereunder shall
         ---------------------------
expire  if,  for any reason other than his or her death, the optionee (i) ceases
to  be employed by the Corporation or a Parent or Subsidiary thereof; (ii) is no
longer  a  member  of  the  Corporation's Board of Directors; or (iii) no longer
performs  services  for  the  Corporation  as  an  independent  contractor.  The
expiration  will  take  effect  at the earliest of the following times: four (4)
months  from  the  date  of  the  occurrence  causing termination of eligibility
(twelve  (12)  months if the optionee's eligibility ceases because of his or her
disability),  or  upon  the  date  the  option expires by its terms. During such
four-month period, the option may be exercised in accordance with its terms, but
only  in  respect  to  the  number of shares for which the right to exercise has
accrued  on  the  date  of termination of employment, or status as a director or
independent  contractor.  The Committee shall decide whether an authorized leave
of  absence  or absence for military or governmental service, or absence for any
other  reason,  shall constitute termination of eligibility for purposes of this
Section.  This  determination  shall  be  subject  to  review  by  the  Board of
Directors.

          3.3.  Death  of  Optionee and Transfer of Option: If the optionee dies
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while  eligible  to participate in the Plan, or within four (4) months after the
termination  of  his  or her eligibility, and shall not have fully exercised the
option,  the option may be exercised at any time within twelve (12) months after
the  optionee's  death  by  the optionee's executors or administrators or by any
person  or persons who acquired the option directly from the optionee by bequest
or  inheritance.  However,  no option shall be exercisable after it expires; and
options  may  be  exercised  only  to  the  extent  that the optionee's right to
exercise the option had accrued at the time of his or her death and had not been
previously  exercised.

          No option shall be transferable by the optionee otherwise than by will
or  the  laws  of  intestate  succession.

     4.     IDENTIFICATION OF STOCK:  The stock subject to grant and the options
            -----------------------
shall  be  shares  of  the  Corporation's authorized but unissued or acquired or
reacquired Common Stock, par value $0.01 (the "Stock").  The aggregate number of
shares  subject to outstanding options shall not exceed two million five hundred
thousand  (2,500,000)  shares  of  Stock  (subject  to adjustment as provided in
Section 5.6).  If any option granted hereunder shall expire or terminate for any
reason  without  having  been  exercised in full, the unpurchased shares subject
thereto  shall  again  be  available  for  purposes  of  this  Plan.

     5. TERMS AND CONDITIONS OF OPTIONS: Any option granted pursuant to the Plan
        -------------------------------
shall be evidenced by an agreement in such form as the Committee shall from time
to  time  determine,  which  agreement  shall  comply with and be subject to the
following  terms  and  conditions:

          5.1. Number of Shares: Each option shall state the number of shares to
               ----------------
which  it  pertains.

          5.2.  Option Exercise Price: Each option shall state the option price,
                ---------------------
which  shall  be  determined  at  the  Committee's  discretion.

<PAGE>

          5.3.  Method  of  Exercise:  An  option  shall be exercised by written
                -------------------
notice to the Corporation stating the number of shares with respect to which the
option is being exercised and designating a time for the delivery thereof, which
shall  be  not  more than fifteen (15) days after notice is given unless another
date  was  mutually  agreed  upon.  At  the  time  specified  in the notice, the
Corporation shall deliver to the optionee at the Corporation's principal office,
or  other  appropriate place the Committee determines, a certificate(s) for such
shares  of  previously  authorized but unissued shares or acquired or reacquired
shares of Stock as the Corporation may elect. Notwithstanding the foregoing, the
Corporation may postpone delivery of any certificate(s) after notice of exercise
for  any  reasonable  period  required  to  comply  with  any applicable listing
requirements  of  any  national  or  other  securities exchange. In the event an
option  shall be exercisable by any person other than the optionee, the required
notice  under  this  section  shall  be accompanied by appropriate proof of such
person's  right  to  exercise  the  option.

          5.4.  Medium  and  Time  Payment: The option price shall be payable in
                --------------------------
full  upon  the exercise of the option by certified or bank cashier's check, the
promissory note of the optionee, or any equivalent form of payment acceptable to
the  Corporation.

          5.5.  Term of Option: The term of an option granted hereunder shall be
                --------------
determined  by the Committee at the time of grant, but shall not exceed ten (10)
years  from  the  day of the grant.  In no event shall any option be exercisable
after  the  expiration  of  its  term.

          5.6.  Adjustments  Upon  Changes  in  Capitalization:  Subject  to any
                ----------------------------------------------
required  shareholder  action,  the  number  of  shares of stock covered by each
outstanding  option  and  the  price  per  share  in  each  such option shall be
proportionately  adjusted  for  any increase or decrease in the number of issued
shares  of  Stock  of  the  Corporation  resulting  from:  (i)  a subdivision or
consolidation  of  shares; (ii) the payment of a stock dividend (but only on the
Stock);  (iii)  any  other  increase  or  decrease  in the number of such shares
effected  without  receipt  of  consideration by the Corporation; (iv) or, as to
Stock  issued  other  than  pursuant  to  a  stock option granted to a director,
officer, employee or a person rendering services as an independent contractor to
the  Corporation  or  any  Parent or Subsidiary, any increase or decrease in the
number  of shares made for per share consideration less than the option price of
such  option.  Any  fraction  of  a share subject to option that would otherwise
result  from  an  adjustment  pursuant  to  this  subparagraph  shall be rounded
downward  to  the  next  full  number  of  shares  without other compensation or
consideration  to  the  holder  of  the  option.

          Subject  to  any required shareholder action, if the Corporation shall
be  the  surviving  corporation in any merger or consolidation, each outstanding
option shall pertain and apply to the securities to which a holder of the number
of  shares  of  Stock  subject  to  the  option  would  have been entitled.  The
Corporation's  Board  of Directors may grant each optionee the right to exercise
his  or  her  option  in whole or in part immediately prior to the Corporation's
dissolution  or liquidation, or merger or consolidation in which the corporation
is  not  the  surviving corporation.  If the Corporation is consolidated with or
merged  into any other corporation, or if the Corporation sells or transfers all
or  substantially  all  of  its  assets, or if any other similar event affecting
shares  of  Stock  of the Corporation should occur, and if the exercisability of
the  options  is  not  accelerated  by  the Board of Directors and the acquiring
Corporation  assumes  the  Corporation's  obligations  under the options granted
under  this  Plan,  then  each optionee shall be entitled thereafter to purchase
shares of stock and other securities and property in the kind and amount, and at
the  price,  which  the  optionee would have been entitled had his or her option
been exercised prior to such event.  The Corporation shall make lawful provision
therefore  as  part  of  any  such  transaction.

<PAGE>

          To  the  extent  that  the  foregoing  adjustments  relate to stock or
securities  of  the  Corporation,  they  shall  be  made by the Committee, whose
determinations  shall  be  final,  binding  and  conclusive.

          The  grant  of  an option pursuant to the Plan shall not affect in any
way  the  Corporation's  right  or power to make adjustments, reclassifications,
reorganizations  or changes of its capital or business structure, or to merge or
to consolidate or to dissolve, liquidate or sell, or transfer all or any part of
its  business  or  assets.

          Whenever  the Corporation takes any action resulting in any adjustment
provided for in this Section 5.6, the Corporation shall forthwith deliver notice
of  the  action  to  optionee.  The  notice shall set forth the number of shares
subject  to  this  Option  and  the  purchase  price  thereof resulting from the
adjustment.

          5.7. Rights as a Shareholder: An optionee or a transferee of an option
               -----------------------
shall  have no rights as a shareholder with respect to any shares underlying his
or  her  option  until  the  date  the optionee is issued a certificate for such
shares.  No  adjustment  shall be made for dividends (ordinary or extraordinary,
whether  in cash, securities or other property) or distributions or other rights
for which the record date is prior to the date such stock certificate is issued,
except  as  provided  in  Section  5.6  above.

          5.8.  Modification,  Extension  and Renewal of Options: Subject to the
                ------------------------------------------------
terms  and  conditions and within the limitations of the Plan, the Committee may
modify,  extend  or  renew outstanding options granted under the Plan, or accept
the  surrender  of outstanding options (to the extent not theretofore exercised)
and  authorize  the  granting  of  new options in substitution therefore (to the
extent  not  theretofore  exercised).

          5.9. Other Provisions: The option agreements authorized under the Plan
               ----------------
shall  contain such other provisions, including without limitation, restrictions
upon  the exercise of the option, as the Committee and the Board of Directors of
the  Corporation shall deem advisable.  Thus, for example, the Committee and the
Board  of  Directors  may  require  that all or any portion of an option granted
hereunder not be exercisable until a specified period of time has passed or some
other  event  has  occurred.

     6.     TERM OF PLAN:  Options may be granted pursuant to the Plan from time
            ------------
to  time  within a period of ten (10) years from the date the Plan is adopted by
the  Corporation's  Board  of  Directors  or  is  approved  by the Corporation's
shareholders,  whichever  occurs  earlier.  Termination  of  the  Plan shall not
affect  any  option  previously  granted.

          7.  AMENDMENT  OF THE PLAN: To the extent permitted by law and subject
               ---------------------
to  any  required  approval  by  the  Corporation's  shareholders,  the Board of
Directors  may  suspend or discontinue the Plan or revise or amend it in any way
with  respect  to  any  shares  not  subject  to  options  at  that  time.

          8. APPLICATION OF FUNDS: The proceeds received by the Corporation from
             --------------------
the  sale  of  Stock  pursuant  to  options  may  be  used for general corporate
purposes.

<PAGE>

          9.  NO  OBLIGATION TO EXERCISE OPTION: The granting of an option shall
              --------------------------------
impose  no  obligation  upon  the  optionee  to  exercise  such  option.

          10.  SECURITIES  LAWS  COMPLIANCE:  Notwithstanding anything contained
               ---------------------------
herein,  the  Corporation  shall not be obligated to grant any option under this
Plan,  or  to  sell or issue any share pursuant to any option agreement executed
pursuant  to  the  Plan,  unless  the grant or sale is effectively registered or
exempt  from  registration  under the Securities Act of 1933, as amended, and is
qualified or exempt from qualification under the California Corporate Securities
Law  of  1968,  as  amended.

          As  adopted  by  the  Board  of  Directors  on May 2,  2003.

                                                 TMI  Holdings,  Inc.,
                                                 a  Florida  corporation

                                                  ______________________________
                                                  By:     Scott  Siegel
                                                  Its:     President<PAGE>

                                                                   Exhibit 4.0

                     INDUSTRIES INTERNATIONAL, INCORPORATED

                           2003 EQUITY INCENTIVE PLAN

1.       NAME.

         The name of the plan is "Industries International, Incorporated 2003
Equity Incentive Plan".

2.       PURPOSE.

         The purpose of this Plan is to provide incentives to attract, retain
and motivate eligible persons whose present and potential contributions are
important to the success of the Company, and its Parent and Subsidiaries (if
any), by offering them an opportunity to participate in the Company's future
performance through awards of Options, Restricted Stock and Stock Awards.
Capitalized terms not defined in the text are defined in Section 3.

3.       DEFINITIONS.

         As used in this Plan, the following terms will have the following
meanings:

         "AWARD" means any award under this Plan, including any Option,
Restricted Stock or Stock Award.

         "AWARD AGREEMENT" means, with respect to each Award, the signed written
agreement between the Company and the Participant setting forth the terms and
conditions of the Award.

         "BOARD" means the Board of Directors of the Company.

         "CAUSE" means any cause, as defined by applicable law, for the
termination of a Participant's employment with the Company or a Parent or
Subsidiary of the Company.

         "CODE" means the Internal Revenue Code of 1986, as amended.

         "COMMITTEE" means the Board of Directors.

         "COMPANY" means Industries International, Incorporated, a Nevada
corporation, or any successor corporation.

         "DISABILITY" means a disability, whether temporary or permanent,
partial or total, as determined by the Committee.

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

         "EXERCISE PRICE" means the price at which a holder of an Option may
purchase the Shares issuable upon exercise of the Option.

         "FAIR MARKET VALUE" means, as of any date, the value of a share of the
Company's Common Stock determined as follows:

                  (a) if such Common Stock is publicly traded and is then listed
         on a national securities exchange, its closing price on the date of
         determination on the principal national securities exchange on which
         the Common Stock is listed or admitted to trading as reported in The
         Wall Street Journal;

                  (b) if such Common Stock is quoted on the NASDAQ National
         Market, its closing price on the NASDAQ National Market on the date of
         determination as reported in The Wall Street Journal;

                  (c) if such Common Stock is publicly traded but is not listed
         or admitted to trading on a national securities exchange, the average
         of the closing bid and asked prices on the date of determination as
         reported in The Wall Street Journal;

                  (d) the price per share at which shares of the Company's
         Common Stock are initially offered for sale to the public by the
         Company's underwriters in the initial public offering of the Company's
         Common Stock pursuant to a registration statement filed with the SEC
         under the Securities Act if the Award is made on the effective date of
         such registration statement; or

                  (e) if none of the foregoing is applicable, by the Committee
         in good faith.

         "INSIDER" means an officer or director of the Company or any other
person whose transactions in the Company's Common Stock are subject to Section
16 of the Exchange Act.

         "OPTION" means an award of an option to purchase Shares pursuant to
Section 7.

         "PARENT" means any corporation (other than the Company) in an unbroken
chain of corporations ending with the Company if each of such corporations other
than the Company owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

         "PARTICIPANT" means a person who receives an Award under this Plan.

         "PERFORMANCE FACTORS" means the factors selected by the Committee, in
its sole and absolute discretion, from among the following measures to determine
whether the performance goals applicable to Awards have been satisfied:

<PAGE>

                  (a) Net revenue and/or net revenue growth;

                  (b) Earnings before income taxes and amortization and/or
earnings before income taxes and amortization growth;

                  (c) Operating income and/or operating income growth;

                  (d) Net income and/or net income growth;

                  (e) Earnings per share and/or earnings per share growth;

                  (f) Total stockholder return and/or total stockholder return
growth;

                  (g) Return on equity;

                  (h) Operating cash flow return on income;

                  (i) Adjusted operating cash flow return on income;

                  (j) Economic value added; and

                  (k) Individual business objectives.

         "PERFORMANCE PERIOD" means the period of service determined by the
Committee, not to exceed five years, during which years of service or
performance is to be measured for Restricted Stock Awards or Stock Awards.

         "PLAN" means this Industries International, Incorporated 2003 Equity
Incentive Plan, as amended from time to time.

         "RESTRICTED STOCK AWARD" means an award of Shares pursuant to Section
8.

         "SEC" means the U.S. Securities and Exchange Commission.

         "SECURITIES ACT" means the Securities Act of 1933, as amended.

         "SHARES" means shares of the Company's Common Stock reserved for
issuance under this Plan, as adjusted pursuant to Sections 4 and 19, and any
successor security.

         "STOCK AWARD" means an award of Shares, or cash in lieu of Shares,
pursuant to Section 9.

         "SUBSIDIARY" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

         "TERMINATION" or "TERMINATED" means, for purposes of this Plan with
respect to a Participant, that the Participant has for any reason ceased to
provide services as an employee, officer, director, consultant, independent
contractor, or advisor to the Company or a Parent or Subsidiary of the Company.
An employee will not be deemed to have ceased to provide services in the case of
(i) sick leave, (ii) military leave, or (iii) any other leave of absence
approved by the Company, provided that such leave is for a period of not more
than 90 days, unless reemployment upon the expiration of such leave is
guaranteed by contract or statute or unless provided otherwise pursuant to a
formal policy adopted from time to time by the Company and issued and
promulgated to employees in writing. In the case of any employee on an approved
leave of absence, the Committee may make such provisions respecting suspension
of vesting of the Award while on leave from the employ of the Company or a
Subsidiary as it may deem appropriate, except that in no event may an Option be
exercised after the expiration of the term set forth in the Option agreement.

<PAGE>

The Committee will have sole discretion to determine whether a Participant has
ceased to provide services and the effective date on which the Participant
ceased to provide services (the "Termination Date").

4.       SHARES SUBJECT TO THE PLAN.

         4.1 Number of Shares Available. Subject to Sections 4.2 and 19, the
total aggregate number of Shares initially reserved and available for grant and
issuance pursuant to this Plan will be 15,000,000 Shares and will include Shares
that are subject to: (a) issuance upon exercise of an Option but cease to be
subject to such Option for any reason other than exercise of such Option; (b) an
Award granted hereunder but forfeited or repurchased by the Company at the
original issue price; and (c) an Award that otherwise terminates without Shares
being issued. At all times the Company shall reserve and keep available a
sufficient number of Shares as shall be required to satisfy the requirements of
all outstanding Options granted under this Plan and all other outstanding but
unvested Awards granted under this Plan.

         4.2 Adjustment of Shares. In the event that the number of outstanding
shares is changed by a stock dividend, recapitalization, stock split, reverse
stock split, subdivision, combination, reclassification or similar change in the
capital structure of the Company without consideration, then (a) the number of
Shares reserved for issuance under this Plan, (b) the Exercise Prices of and
number of Shares subject to outstanding Options, and (c) the number of Shares
subject to other outstanding Awards will be proportionately adjusted, subject to
any required action by the Board or the stockholders of the Company and
compliance with applicable securities laws; provided, however, that fractions of
a Share will not be issued but will either be replaced by a cash payment equal
to the Fair Market Value of such fraction of a Share or will be rounded up to
the nearest whole Share, as determined by the Committee.

5.       ELIGIBILITY.

         ISOs (as defined in Section 7 below) may be granted only to employees
(including officers and directors who are also employees) of the Company or of a
Parent or Subsidiary of the Company. All other Awards may be granted to
employees, officers, directors, consultants, independent contractors and
advisors of the Company or any Parent or Subsidiary of the Company, provided
such consultants, contractors and advisors render bona fide services not in
connection with the offer and sale of securities in a capital-raising
transaction. A person may be granted more than one Award under this Plan.

6.       ADMINISTRATION.

         6.1 Committee Authority. This Plan will be administered by the
Committee or by the Board acting as the Committee. Subject to the general
purposes, terms and conditions of this Plan, and to the direction of the Board,
the Committee will have full power to implement and carry out this Plan. Without
limitation, the Committee will have the authority to:

                  (a) construe and interpret this Plan, any Award Agreement and
any other agreement or document executed pursuant to this Plan;

                  (b) prescribe, amend and rescind rules and regulations
relating to this Plan or any Award;

                  (c) select persons to receive Awards;

                  (d) determine the form and terms of Awards;

                  (e) determine the number of Shares or other consideration
subject to Awards;

                  (f) determine whether Awards will be granted singly, in
combination with, in tandem with, in replacement of, or as alternatives to,
other Awards under this Plan or any other incentive or compensation plan of the
Company or any Parent or Subsidiary of the Company;

                  (g) grant waivers of Plan or Award conditions;

                  (h) determine the vesting, exercisability and payment of
Awards;
                  (i) correct any defect, supply any omission or reconcile any
inconsistency in this Plan, any Award or any Award Agreement;

<PAGE>

                  (j) determine whether an Award has been earned; and

                  (k) make all other determinations necessary or advisable for
the administration of this Plan.

         6.2 Committee Discretion. Any determination made by the Committee with
respect to any Award will be made at the time of grant of the Award or, unless
in contravention of any express term of this Plan or Award, at any later time,
and such determination will be final and binding on the Company and on all
persons having an interest in any Award under this Plan. The Committee may
delegate to one or more officers of the Company the authority to grant an Award
under this Plan to Participants who are not Insiders of the Company.

7.       OPTIONS.

         The Committee may grant Options to eligible persons and will determine
whether such Options will be Incentive Stock Options within the meaning of the
Code ("ISO") or Nonqualified Stock Options ("NQSOs"), the number of Shares
subject to the Option, the Exercise Price of the Option, the period during which
the Option may be exercised, and all other terms and conditions of the Option,
subject to the following:

         7.1 Form of Option Grant. Each Option granted under this Plan will be
evidenced by an Award Agreement which will expressly identify the Option as an
ISO or an NQSO (hereinafter referred to as the "Stock Option Agreement"), and
will be in such form and contain such provisions (which need not be the same for
each Participant) as the Committee may from time to time approve, and which will
comply with and be subject to the terms and conditions of this Plan.

         7.2 Date of Grant. The date of grant of an Option will be the date on
which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee. The Stock Option Agreement and a copy of
this Plan will be delivered to the Participant within a reasonable time after
the granting of the Option.

         7.3 Exercise Period. Options may be exercisable within the times or
upon the events determined by the Committee as set forth in the Stock Option
Agreement governing such Option; provided, however, that no Option will be
exercisable after the expiration of ten (10) years from the date the Option is
granted; and provided further that no ISO granted to a person who directly or by
attribution owns more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or of any Parent or Subsidiary of the
Company ("Ten Percent Stockholder") will be exercisable after the expiration of
five (5) years from the date the ISO is granted. The Committee also may provide
for Options to become exercisable at one time or from time to time, periodically
or otherwise, in such number of Shares or percentage of Shares as the Committee
determines, provided, however, that in all events a Participant will be entitled
to exercise an Option at the rate of at least 20% per year over five years from
the date of grant, subject to reasonable conditions such as continued
employment; and further provided that an Option granted to a Participant who is
an officer, director or consultant may become fully exercisable, subject to
reasonable conditions such as continued employment, at any time or during any
period established by the Company.

         7.4 Exercise Price. The Exercise Price of an Option will be determined
by the Committee when the Option is granted and may be not less than 85% of the
Fair Market Value of the Shares on the date of grant; provided that: (a) the
Exercise Price of an ISO will be not less than 100% of the Fair Market Value of
the Shares on the date of grant; and (b) the Exercise Price of an Option granted
to a Ten Percent Stockholder will not be less than 110% of the Fair Market Value
of the Shares on the date of grant. Payment for the Shares purchased may be made
in accordance with Section 10 of this Plan.

         7.5 Method of Exercise. Options may be exercised only by delivery to
the Company of a written stock option exercise agreement (the "Exercise
Agreement") in a form approved by the Committee, (which need not be the same for
each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding the Participant's
investment intent and access to information and other matters, if any, as may be
required or desirable by the Company to comply with applicable securities laws,
together with payment in full of the Exercise Price for the number of Shares
being purchased.

         7.6 Termination. Notwithstanding the exercise periods set forth in the
Stock Option Agreement, exercise of an Option will always be subject to the
following:

                  (a) If the Participant's service is Terminated for any reason
except death or Disability, then the Participant may exercise such Participant's
Options only to the extent that such Options would have been exercisable upon
the Termination Date no later than three (3) months after the Termination Date
(or such longer time period not exceeding five (5) years as may be determined by

<PAGE>

the Committee, with any exercise beyond three (3) months after the Termination
Date deemed to be an NQSO).

                  (b) If the Participant's service is Terminated because of the
Participant's death or Disability (or the Participant dies within three (3)
months after a Termination other than for Cause or because of Participant's
Disability), then the Participant's Options may be exercised only to the extent
that such Options would have been exercisable by the Participant on the
Termination Date and must be exercised by the Participant (or the Participant's
legal representative) no later than twelve (12) months after the Termination
Date (or such longer time period not exceeding five (5) years as may be
determined by the Committee, with any such exercise beyond (i) three (3) months
after the Termination Date when the Termination is for any reason other than the
Participant's death or Disability, or (ii) twelve (12) months after the
Termination Date when the Termination is for Participant's death or Disability,
deemed to be an NQSO).

                  (c) Notwithstanding the provisions in paragraph 7.6(a) above,
if the Participant's service is Terminated for Cause, neither the Participant,
the Participant's estate nor such other person who may then hold the Option
shall be entitled to exercise any Option with respect to any Shares whatsoever,
after Termination, whether or not after Termination the Participant may receive
payment from the Company or a Subsidiary for vacation pay, for services rendered
prior to Termination, for services rendered for the day on which Termination
occurs, for salary in lieu of notice, or for any other benefits. For the purpose
of this paragraph, Termination shall be deemed to occur on the date when the
Company dispatches notice or advice to the Participant that his service is
Terminated.

         7.7 Limitations on Exercise. The Committee may specify a reasonable
minimum number of Shares that may be purchased on any exercise of an Option,
provided that such minimum number will not prevent the Participant from
exercising the Option for the full number of Shares for which it is then
exercisable.

         7.8 Limitations on ISO. The aggregate Fair Market Value (determined as
of the date of grant) of Shares with respect to which ISO are exercisable for
the first time by a Participant during any calendar year (under this Plan or
under any other incentive stock option plan of the Company, Parent or Subsidiary
of the Company) will not exceed $100,000. If the Fair Market Value of Shares on
the date of grant with respect to which ISO are exercisable for the first time
by a Participant during any calendar year exceeds $100,000, then the Options for
the first $100,000 worth of Shares to become exercisable in such calendar year
will be ISO and the Options for the amount in excess of $100,000 that become
exercisable in that calendar year will be NQSOs. In the event that the Code or
the regulations promulgated thereunder are amended after the Effective Date of
this Plan to provide for a different limit on the Fair Market Value of Shares
permitted to be subject to ISO, such different limit will be automatically
incorporated herein and will apply to any Options granted after the effective
date of such amendment.

         7.9 Modification, Extension or Renewal. The Committee may modify,
extend or renew outstanding Options and authorize the grant of new Options in
substitution therefore, provided that any such action may not, without the
written consent of a Participant, impair any of such Participant's rights under
any Option previously granted. Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h)
of the Code. The Committee may reduce the Exercise Price of outstanding Options
without the consent of Participants affected by a written notice to them;
provided, however, that the Exercise Price may not be reduced below the minimum
Exercise Price that would be permitted under Section 7.4 of this Plan for
Options granted on the date the action is taken to reduce the Exercise Price.

         7.10 No Disqualification. Notwithstanding any other provision in this
Plan, no term of this Plan relating to ISO will be interpreted, amended or
altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under

<PAGE>

Section 422 of the Code.

8.       RESTRICTED STOCK.

         A Restricted Stock Award is an offer by the Company to sell to an
eligible person Shares that are subject to restrictions. The Committee will
determine to whom an offer will be made, the number of Shares the person may
purchase, the price to be paid (the "Purchase Price"), the restrictions to which
the Shares will be subject, and all other terms and conditions of the Restricted
Stock Award, subject to the following:

         8.1 Form of Restricted Stock Award. All purchases under a Restricted
Stock Award made pursuant to this Plan will be evidenced by an Award Agreement
(the "Restricted Stock Purchase Agreement") that will be in such form (which
need not be the same for each Participant) as the Committee will from time to
time approve, and will comply with and be subject to the terms and conditions of
this Plan. The offer of Restricted Stock will be accepted by the Participant's
execution and delivery of the Restricted Stock Purchase Agreement and full
payment for the Shares to the Company within thirty (30) days from the date the
Restricted Stock Purchase Agreement is delivered to the person. If such person
does not execute and deliver the Restricted Stock Purchase Agreement along with
full payment for the Shares to the Company within thirty (30) days, then the
offer will terminate, unless otherwise extended by the Committee.

         8.2 Purchase Price. The Purchase Price of Shares sold pursuant to a
Restricted Stock Award will be determined by the Committee on the date the
Restricted Stock Award is granted and may not be less than 85% of the Fair
Market Value of the Shares on the grant date, except in the case of a sale to a
Ten Percent Stockholder, in which case the Purchase Price will be 100% of the
Fair Market Value. Payment of the Purchase Price must be made in accordance with
Section 10 of this Plan.

         8.3 Terms of Restricted Stock Awards. Restricted Stock Awards shall be
subject to such restrictions as the Committee may impose. These restrictions may
be based upon completion of a specified number of years of service with the
Company or upon completion of the performance goals as set out in advance in the
Participant's individual Restricted Stock Purchase Agreement. Restricted Stock
Awards may vary from Participant to Participant and between groups of
Participants. Prior to the grant of a Restricted Stock Award, the Committee
shall: (a) determine the nature, length and starting date of any Performance
Period for the Restricted Stock Award; (b) select from among the Performance
Factors to be used to measure performance goals, if any; and (c) determine the
number of Shares that may be awarded to the Participant. Prior to the payment of
any Restricted Stock Award, the Committee shall determine the extent to which
such Restricted Stock Award has been earned. Performance Periods may overlap and
Participants may participate simultaneously with respect to Restricted Stock
Awards that are subject to different Performance Periods and have different
performance goals and other criteria.

         8.4 Termination During Performance Period. If a Participant is
Terminated during a Performance Period for any reason, then such Participant
will be entitled to payment (whether in Shares, cash or otherwise) with respect
to the Restricted Stock Award only to the extent earned as of the date of
Termination in accordance with the Restricted Stock Purchase Agreement, unless
the Committee determines otherwise.

9.       STOCK AWARDS.

         9.1 Awards of Stock. A Stock Award is an award of Shares (which may
consist of Restricted Stock) for services rendered to the Company or any Parent
or Subsidiary of the Company. A Stock Award will be awarded pursuant to an Award
Agreement (the "Stock Award Agreement") that will be in such form (which need
not be the same for each Participant) as the Committee will from time to time
approve, and will comply with and be subject to the terms and conditions of this
Plan. A Stock Award may be awarded upon satisfaction of such performance goals
as are set out in advance in the Participant's individual Stock Award Agreement
(the "Performance Stock Award Agreement") that will be in such form (which need
not be the same for each Participant) as the Committee will from time to time
approve, and will comply with and be subject to the terms and conditions of this
Plan. Stock Awards may vary from Participant to Participant and between groups
of Participants, and may be based upon the achievement of the Company, Parent or
Subsidiary and/or individual performance factors or upon such other criteria as
the Committee may determine.

         9.2 Terms of Stock Awards. The Committee will determine the number of
Shares to be awarded to the Participant. If the Stock Award is being earned upon
the satisfaction of performance goals pursuant to a Performance Stock Award
Agreement, then the Committee will: (a) determine the nature, length and
starting date of any Performance Period for each Stock Award; (b) select from
among the Performance Factors to be used to measure the performance, if any; and
(c) determine the number of Shares that may be awarded to the Participant. Prior
to the payment of any Stock Award, the Committee shall determine the extent to
<PAGE>

which such Stock Award has been earned. Performance Periods may overlap and
Participants may participate simultaneously with respect to Stock Awards that
are subject to different Performance Periods and different performance goals and
other criteria. The number of Shares may be fixed or may vary in accordance with
such performance goals and criteria as may be determined by the Committee. The
Committee may adjust the performance goals applicable to the Stock Awards to
take into account changes in law and accounting or tax rules and to make such
adjustments as the Committee deems necessary or appropriate to reflect the
impact of extraordinary or unusual items, events or circumstances to avoid
windfalls or hardships.

         9.3 Form of Payment. The earned portion of a Stock Award may be paid to
the Participant by the Company either currently or on a deferred basis, with
such interest or dividend equivalent, if any, as the Committee may determine.
Payment may be made in the form of cash or whole Shares or a combination
thereof, either in a lump sum payment or in installments, all as the Committee
will determine.

10.      PAYMENT FOR SHARE PURCHASES.

         Payment for Shares purchased pursuant to this Plan may be made in cash
(by check) or, where expressly approved for the Participant by the Committee and
where permitted by law:

                  (a) by cancellation of indebtedness of the Company to the
Participant;

                  (b) by surrender of shares that either: (1) have been owned by
the Participant for more than six (6) months and have been paid for within the
meaning of SEC Rule 144 (and, if such shares were purchased from the Company by
use of a promissory note, such note has been fully paid with respect to such
shares); or (2) were obtained by the Participant in the public market;

                  (c) by waiver of compensation due or accrued to the
Participant for services rendered;

                  (d) with respect only to purchases upon exercise of an Option,
and provided that a public market for the Company's stock exists:

<PAGE>

                           (1)      through a "same day sale" commitment
from  the  Participant  and a  broker-dealer  that is a member  of the  National
Association  of Securities  Dealers (an "NASD Dealer")  whereby the  Participant
irrevocably elects to exercise the Option and to sell a portion of the Shares so
purchased to pay for the Exercise Price, and whereby the NASD Dealer irrevocably
commits upon receipt of such Shares to forward the  Exercise  Price  directly to
the Company; or

                           (2) through a "margin" commitment from the
Participant and a NASD Dealer whereby the Participant
irrevocably elects to exercise the Option and to pledge the Shares so purchased
to the NASD Dealer in a margin account as security for a loan from the NASD
Dealer in the amount of the Exercise Price, and whereby the NASD Dealer
irrevocably commits upon receipt of such Shares to forward the Exercise Price
directly to the Company; or

                  (e) by any combination of the foregoing.

11.      WITHHOLDING TAXES.

         11.1 Withholding Generally. Whenever Shares are to be issued in
satisfaction of Awards granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Awards are to be made in cash, such payment will be net of an
amount sufficient to satisfy federal, state, and local withholding tax
requirements.

         11.2 Stock Withholding. When, under applicable tax laws, a participant
incurs tax liability in connection with the exercise or vesting of any Award
that is subject to tax withholding and the Participant is obligated to pay the
Company the amount required to be withheld, the Committee may allow the
Participant to satisfy the minimum withholding tax obligation by electing to
have the Company withhold from the Shares to be issued that number of Shares
having a Fair Market Value equal to the minimum amount required to be withheld,
determined on the date that the amount of tax to be withheld is to be
determined. All elections by a Participant to have Shares withheld for this
purpose will be made in accordance with the requirements established by the
Committee and will be in writing in a form acceptable to the Committee.

12.      PRIVILEGES OF STOCK OWNERSHIP.

         12.1 Voting and Dividends. No Participant will have any of the rights
of a stockholder with respect to any Shares until the Shares are issued to the
Participant. After Shares are issued to the Participant, the Participant will be
a stockholder and will have all the rights of a stockholder with respect to such
Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such
Shares are Restricted Stock, then any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company will be subject to the same restrictions as the
Restricted Stock.
<PAGE>

         12.2 Financial Statements. The Company will provide financial
statements to each Participant prior to such Participant's purchase of Shares
under this Plan, and to each Participant annually during the period such
Participant has Awards outstanding; provided, however, the Company will not be
required to provide such financial statements to Participants whose services in
connection with the Company assure them access to equivalent information.

13.      NON-TRANSFERABILITY OF AWARDS.

         Awards of Stock and Restricted Stock granted under this Plan, and any
interest therein, will not be transferable or assignable by the Participant, and
may not be made subject to execution, attachment or similar process, other than
by will or by the laws of descent and distribution. Awards of Options granted
under this Plan, and any interest therein, will not be transferable or
assignable by the Participant, and may not be made subject to execution,
attachment or similar process, other than by will or by the laws of descent and
distribution, by instrument to an inter vivos or testamentary trust in which the
options are to be passed to beneficiaries upon the death of the trustor, or by
gift to "immediate family" as that term is defined in 17 C.F.R. 240.16a-1(e).
During the lifetime of the Participant an Award will be exercisable only by the
Participant. During the lifetime of the Participant, any elections with respect
to an Award may be made only by the Participant unless otherwise determined by
the Committee and set forth in the Award Agreement with respect to Awards that
are not ISOs.

         This restriction shall cease to apply to Shares received as a Stock
Award or Restricted Stock Award under this Plan at the time ownership of such
shares vests in the recipient of the Award. Similarly, this restriction shall
not apply to shares of stock received upon the exercise of vested Options.

14.      CERTIFICATES.

         All certificates for Shares or other securities delivered under this
Plan will be subject to such stop transfer orders, legends and other
restrictions as the Committee may deem necessary or advisable, including
restrictions under any applicable federal, state or foreign securities law, or
any rules, regulations and other requirements of the SEC or any stock exchange
or automated quotation system upon which the Shares may be listed or quoted.

15.      ESCROW; PLEDGE OF SHARES.

         To enforce any restrictions on a Participant's Shares, the Committee
may require the Participant to deposit all certificates representing Shares,
together with stock powers or other instruments of transfer approved by the
Committee appropriately endorsed in blank, with the Company or an agent
designated by the Company to hold in escrow until such restrictions have lapsed
or terminated, and the Committee may cause a legend or legends referencing such
restrictions to be placed on the certificates. Any Participant who is permitted
to execute a promissory note as partial or full consideration for the purchase
of Shares under this Plan will be required to pledge and deposit with the
Company all or part of the Shares so purchased as collateral to secure the
payment of the Participant's obligation to the Company under the promissory
note; provided, however, that the Committee may require or accept other or
additional forms of collateral to secure the payment of such obligation and, in
any event, the Company will have full recourse against the Participant under the
promissory note notwithstanding any pledge of the Participant's Shares or other
collateral. In connection with any pledge of the Shares, the Participant will be
required to execute and deliver a written pledge agreement in such form as the
Committee will from time to time approve. The Shares purchased with the
promissory note may be released from the pledge on a pro rata basis as the
promissory note is paid.

16.      EXCHANGE OF AWARDS.

         The Committee may, at any time or from time to time, authorize the
Company, with the consent of the respective Participants, to issue new Awards in
exchange for the surrender and cancellation of any or all outstanding Awards.

17.      SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.

         An Award will not be effective unless such Award is in compliance with
all applicable federal and state securities laws, rules and regulations of any
governmental body, and the requirements of any stock exchange or automated
quotation system upon which the Shares may then be listed or quoted, as they are
in effect on the date of grant of the Award and also on the date of exercise or
other issuance. Notwithstanding any other provision in this Plan, the Company
will have no obligation to issue or deliver certificates for Shares under this
Plan prior to: (a) obtaining any approvals from governmental agencies that the
Company determines are necessary or advisable; and/or (b) completion of any

<PAGE>

registration or other qualification of such Shares under any state or federal
law or ruling of any governmental body that the Company determines to be
necessary or advisable. The Company will be under no obligation to register the
Shares with the SEC or to effect compliance with the registration, qualification
or listing requirements of any state securities laws, stock exchange or
automated quotation system, and the Company will have no liability for any
inability or failure to do so.

18.      NO OBLIGATION TO EMPLOY.

         Nothing in this Plan or any Award granted under this Plan will confer
or be deemed to confer on any Participant any right to continue in the employ
of, or to continue any other relationship with, the Company or any Parent or
Subsidiary of the Company or limit in any way the right of the Company or any
Parent or Subsidiary of the Company to terminate Participant's employment or
other relationship at any time, with or without cause.

19.      CORPORATE TRANSACTIONS.

         19.1 Assumption or Replacement of Awards by Successor. In the event of
(a) a dissolution or liquidation of the Company, (b) a merger or consolidation
in which the Company is not the surviving corporation (other than a merger or
consolidation with a wholly-owned subsidiary, a reincorporation of the Company
in a different jurisdiction, or other transaction in which there is no
substantial change in the stockholders of the Company or their relative stock
holdings and the Awards granted under this Plan are assumed, converted or
replaced by the successor corporation, which assumption will be binding on all
Participants), (c) a merger in which the Company is the surviving corporation
but after which the stockholders of the Company immediately prior to such merger
(other than any stockholder that merges, or which owns or controls another
corporation that merges, with the Company in such merger) cease to own their
shares or other equity interest in the Company, (d) the sale of substantially
all of the assets of the Company, or (e) the acquisition, sale, or transfer of
more than 50% of the outstanding shares of the Company by tender offer or
similar transaction, any or all outstanding Awards may be assumed, converted or
replaced by the successor corporation (if any), which assumption, conversion or
replacement will be binding on all Participants. In the alternative, the
successor corporation may substitute equivalent Awards or provide substantially
similar consideration to Participants as was provided to stockholders (after
taking into account the existing provisions of the Awards). The successor
corporation may also issue, in place of outstanding Shares of the Company held
by the Participant, substantially similar shares or other property subject to
repurchase restrictions no less favorable to the Participant. In the event such
successor corporation (if any) refuses to assume or substitute Awards, as
provided above, pursuant to a transaction described in this Subsection 19.1,
such Awards will expire on such transaction at such time and on such conditions
as the Committee will determine. Notwithstanding anything in this Plan to the
contrary, the Committee may provide that the vesting of any or all Awards
granted pursuant to this Plan will accelerate upon a transaction described in
this Section 19. If the Committee exercises such discretion with respect to
Options, such Options will become exercisable in full prior to the consummation
of such event at such time and on such conditions as the Committee determines,
and if such Options are not exercised prior to the consummation of the corporate
transaction, they shall terminate at such time as determined by the Committee.

         19.2 Other Treatment of Awards. Subject to any greater rights granted
to Participants under the foregoing provisions of this Section 19, in the event
of the occurrence of any transaction described in Section 19.1, any outstanding
Awards will be treated as provided in the applicable agreement or plan of
merger, consolidation, dissolution, liquidation, or sale of assets.

         19.3 Assumption of Awards by the Company. The Company, from time to
time, also may substitute or assume outstanding awards granted by another
company, whether in connection with an acquisition of such other company or
otherwise, by either; (a) granting an Award under this Plan in substitution of
such other company's award; or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award

<PAGE>

granted under this Plan. Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged
(except that the exercise price and the number and nature of Shares issuable
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code). In the event the Company elects to grant a new
Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.

20.      ADOPTION AND EFFECTIVE DATE.

         This Industries International, Inccorporated 2003 Equity Incentive Plan
is effective as of February 28, 2003, the date it was adopted by the Board.

21.      STOCKHOLDER APPROVAL.

         This Plan shall be approved by the stockholders of the Company within
twelve (12) months before or after the date this Plan is adopted by the Board.

22.      TERM OF PLAN/GOVERNING LAW.

         Unless earlier terminated as provided herein, this Plan will terminate
on February 28, 2013. This Plan and all agreements thereunder shall be governed
by and construed in accordance with the laws of the State of Nevada.

23.      AMENDMENT OR TERMINATION OF PLAN.

         The Board may at any time terminate or amend this Plan in any respect,
including without limitation amendment of any form of Award Agreement or
instrument to be executed pursuant to this Plan; provided, however, that the
Board will not, without the approval of the stockholders of the Company, amend
this Plan in any manner that requires such stockholder approval under the Code,
if applicable, or by any stock exchange or market on which the Common Stock of
the Company is listed for trading.

24.      NONEXCLUSIVITY OF THE PLAN.

         Neither the adoption of this Plan by the Board, the submission of this
Plan to the stockholders of the Company for approval, nor any provision of this
Plan will be construed as creating any limitations on the power of the Board to
adopt such additional compensation arrangements as it may deem desirable,
including, without limitation, the granting of stock options and bonuses
otherwise than under this Plan, and such arrangements may be either generally
applicable or applicable only in specific cases.

25.      ACTION BY COMMITTEE.

         Any action permitted or required to be taken by the Committee or any
decision or determination permitted or required to be made by the Committee
pursuant to this Plan shall be taken or made in the Committee's sole and
absolute discretion.

                    *****************************************

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