diff --git a/step2-03/README.md b/step2-03/README.md
index 430fbea..fdf3b45 100644
--- a/step2-03/README.md
+++ b/step2-03/README.md
@@ -1,9 +1,81 @@
-# Step 2.2
+# Step 2.3
 
-Integrates Fabric
+Theming and Styling with UI Fabric. In this section, we will illustrate how to utilize some of the built-in theming and styling features right inside UI Fabric component library. UI Fabric exposes its own css-in-js library called `mergeStyles` that is very performant compared with other similar libraries.
 
-Learn about Basic Components
+# Exercises
 
-- Stack
-- Text
-- Show case some components
+## Themes - Using Predefined Theme
+
+Apply some included and predefined themes from the UI Fabric package inside the `/step2-03/exercise/src/components/TodoApp.tsx`. Do this by replacing:
+
+```ts
+import { FluentCustomizations } from '@uifabric/fluent-theme';
+```
+
+with:
+
+```ts
+import { TeamsCustomizations } from '@uifabric/theme-samples';
+```
+
+## Themes - Using Predefined Theme
+
+Create your own theme and apply the color here: https://developer.microsoft.com/en-us/fabric#/styles/themegenerator
+
+```ts
+import { loadTheme } from 'office-ui-fabric-react';
+
+loadTheme({
+  palette: {
+    themePrimary: '#0078d4',
+    themeLighterAlt: '#eff6fc',
+    themeLighter: '#deecf9',
+    themeLight: '#c7e0f4',
+    themeTertiary: '#71afe5',
+    themeSecondary: '#2b88d8',
+    themeDarkAlt: '#106ebe',
+    themeDark: '#005a9e',
+    themeDarker: '#004578',
+    neutralLighterAlt: '#f8f8f8',
+    neutralLighter: '#f4f4f4',
+    neutralLight: '#eaeaea',
+    neutralQuaternaryAlt: '#dadada',
+    neutralQuaternary: '#d0d0d0',
+    neutralTertiaryAlt: '#c8c8c8',
+    neutralTertiary: '#c2c2c2',
+    neutralSecondary: '#858585',
+    neutralPrimaryAlt: '#4b4b4b',
+    neutralPrimary: '#333333',
+    neutralDark: '#272727',
+    black: '#1d1d1d',
+    white: '#ffffff'
+  }
+});
+```
+
+1. Delete the `Customizer` component
+
+2. Paste in this code in the `TodoApp.tsx` before the `TodoApp` component definition
+
+3. Play around with the values and use intellisense to discover the `ITheme` type within VS Code
+
+## CSS in JS with MergeStyles
+
+The styling library name is glamorous nor does it bring about emotion, but it is very quick and lightweight. `MergeStyles` turns CSS Rules into CSS class names to be applied to the components.
+
+1. Try applying a merged style `className` as a prop inside any component that you would find.
+
+```tsx
+import { mergeStyles } from 'office-ui-fabric-react';
+
+const className = mergeStyles({
+  backgroundColor: 'red',
+  selectors: {
+    ':hover': {
+      backgroundColor: 'blue'
+    }
+  }
+});
+```
+
+2. Try to give a few components extra padding
diff --git a/step2-03/index.html b/step2-03/demo/index.html
similarity index 100%
rename from step2-03/index.html
rename to step2-03/demo/index.html
diff --git a/step2-03/src/components/TodoApp.tsx b/step2-03/demo/src/components/TodoApp.tsx
similarity index 100%
rename from step2-03/src/components/TodoApp.tsx
rename to step2-03/demo/src/components/TodoApp.tsx
diff --git a/step2-03/src/components/TodoFooter.tsx b/step2-03/demo/src/components/TodoFooter.tsx
similarity index 100%
rename from step2-03/src/components/TodoFooter.tsx
rename to step2-03/demo/src/components/TodoFooter.tsx
diff --git a/step2-03/src/components/TodoHeader.tsx b/step2-03/demo/src/components/TodoHeader.tsx
similarity index 100%
rename from step2-03/src/components/TodoHeader.tsx
rename to step2-03/demo/src/components/TodoHeader.tsx
diff --git a/step2-03/src/components/TodoList.tsx b/step2-03/demo/src/components/TodoList.tsx
similarity index 100%
rename from step2-03/src/components/TodoList.tsx
rename to step2-03/demo/src/components/TodoList.tsx
diff --git a/step2-03/src/components/TodoListItem.tsx b/step2-03/demo/src/components/TodoListItem.tsx
similarity index 100%
rename from step2-03/src/components/TodoListItem.tsx
rename to step2-03/demo/src/components/TodoListItem.tsx
diff --git a/step2-03/src/index.tsx b/step2-03/demo/src/index.tsx
similarity index 100%
rename from step2-03/src/index.tsx
rename to step2-03/demo/src/index.tsx
diff --git a/step2-03/src/store/index.ts b/step2-03/demo/src/store/index.ts
similarity index 100%
rename from step2-03/src/store/index.ts
rename to step2-03/demo/src/store/index.ts
diff --git a/step2-03/exercise/index.html b/step2-03/exercise/index.html
new file mode 100644
index 0000000..454cef5
--- /dev/null
+++ b/step2-03/exercise/index.html
@@ -0,0 +1,6 @@
+<!DOCTYPE html>
+<html>
+  <body>
+    <div id="app"></div>
+  </body>
+</html>
diff --git a/step2-03/exercise/src/components/TodoApp.tsx b/step2-03/exercise/src/components/TodoApp.tsx
new file mode 100644
index 0000000..6699bbd
--- /dev/null
+++ b/step2-03/exercise/src/components/TodoApp.tsx
@@ -0,0 +1,97 @@
+import React from 'react';
+import { Stack, Customizer, mergeStyles, getTheme } from 'office-ui-fabric-react';
+import { TodoFooter } from './TodoFooter';
+import { TodoHeader } from './TodoHeader';
+import { TodoList } from './TodoList';
+import { Store } from '../store';
+
+// TODO: Change me to another theme!
+import { AzureCustomizationsLight } from '@uifabric/azure-themes';
+
+let index = 0;
+
+const className = mergeStyles({
+  padding: 25,
+  ...getTheme().effects.elevation4
+});
+
+export class TodoApp extends React.Component<any, Store> {
+  constructor(props) {
+    super(props);
+    this.state = {
+      todos: {},
+      filter: 'all'
+    };
+  }
+  render() {
+    const { filter, todos } = this.state;
+    return (
+      <Customizer {...AzureCustomizationsLight}>
+        <Stack horizontalAlign="center">
+          <Stack style={{ width: 400 }} gap={25} className={className}>
+            <TodoHeader addTodo={this._addTodo} setFilter={this._setFilter} filter={filter} />
+            <TodoList complete={this._complete} todos={todos} filter={filter} remove={this._remove} edit={this._edit} />
+            <TodoFooter clear={this._clear} todos={todos} />
+          </Stack>
+        </Stack>
+      </Customizer>
+    );
+  }
+
+  private _addTodo = label => {
+    const { todos } = this.state;
+    const id = index++;
+
+    this.setState({
+      todos: { ...todos, [id]: { label } }
+    });
+  };
+
+  private _remove = id => {
+    const newTodos = { ...this.state.todos };
+    delete newTodos[id];
+
+    this.setState({
+      todos: newTodos
+    });
+  };
+
+  private _complete = id => {
+    const newTodos = { ...this.state.todos };
+    newTodos[id].completed = !newTodos[id].completed;
+
+    this.setState({
+      todos: newTodos
+    });
+  };
+
+  private _edit = (id, label) => {
+    const newTodos = { ...this.state.todos };
+    newTodos[id] = { ...newTodos[id], label };
+
+    this.setState({
+      todos: newTodos
+    });
+  };
+
+  private _clear = () => {
+    const { todos } = this.state;
+    const newTodos = {};
+
+    Object.keys(this.state.todos).forEach(id => {
+      if (!todos[id].completed) {
+        newTodos[id] = todos[id];
+      }
+    });
+
+    this.setState({
+      todos: newTodos
+    });
+  };
+
+  private _setFilter = filter => {
+    this.setState({
+      filter: filter
+    });
+  };
+}
diff --git a/step2-03/exercise/src/components/TodoFooter.tsx b/step2-03/exercise/src/components/TodoFooter.tsx
new file mode 100644
index 0000000..6a44d83
--- /dev/null
+++ b/step2-03/exercise/src/components/TodoFooter.tsx
@@ -0,0 +1,23 @@
+import React from 'react';
+import { Text } from '@uifabric/experiments';
+import { Stack } from 'office-ui-fabric-react';
+import { Store } from '../store';
+import { DefaultButton } from 'office-ui-fabric-react';
+
+interface TodoFooterProps {
+  clear: () => void;
+  todos: Store['todos'];
+}
+
+export const TodoFooter = (props: TodoFooterProps) => {
+  const itemCount = Object.keys(props.todos).filter(id => !props.todos[id].completed).length;
+
+  return (
+    <Stack horizontal horizontalAlign="space-between">
+      <Text>
+        {itemCount} item{itemCount > 1 ? 's' : ''} left
+      </Text>
+      <DefaultButton onClick={() => props.clear()}>Clear Completed</DefaultButton>
+    </Stack>
+  );
+};
diff --git a/step2-03/exercise/src/components/TodoHeader.tsx b/step2-03/exercise/src/components/TodoHeader.tsx
new file mode 100644
index 0000000..7a9cae2
--- /dev/null
+++ b/step2-03/exercise/src/components/TodoHeader.tsx
@@ -0,0 +1,58 @@
+import React from 'react';
+import { Text } from '@uifabric/experiments';
+import { Stack } from 'office-ui-fabric-react';
+import { Pivot, PivotItem, TextField, PrimaryButton } from 'office-ui-fabric-react';
+import { FilterTypes } from '../store';
+
+interface TodoHeaderProps {
+  addTodo: (label: string) => void;
+  setFilter: (filter: FilterTypes) => void;
+  filter: FilterTypes;
+}
+
+interface TodoHeaderState {
+  labelInput: string;
+}
+
+export class TodoHeader extends React.Component<TodoHeaderProps, TodoHeaderState> {
+  constructor(props: TodoHeaderProps) {
+    super(props);
+    this.state = { labelInput: undefined };
+  }
+
+  render() {
+    return (
+      <Stack gap={10}>
+        <Stack horizontal horizontalAlign="center">
+          <Text variant="xxLarge">todos</Text>
+        </Stack>
+
+        <Stack horizontal gap={10}>
+          <Stack.Item grow>
+            <TextField placeholder="What needs to be done?" value={this.state.labelInput} onChange={this.onChange} />
+          </Stack.Item>
+          <PrimaryButton onClick={this.onAdd}>Add</PrimaryButton>
+        </Stack>
+
+        <Pivot onLinkClick={this.onFilter}>
+          <PivotItem headerText="all" />
+          <PivotItem headerText="active" />
+          <PivotItem headerText="completed" />
+        </Pivot>
+      </Stack>
+    );
+  }
+
+  private onAdd = () => {
+    this.props.addTodo(this.state.labelInput);
+    this.setState({ labelInput: undefined });
+  };
+
+  private onChange = (evt: React.FormEvent<HTMLInputElement>, newValue: string) => {
+    this.setState({ labelInput: newValue });
+  };
+
+  private onFilter = (item: PivotItem) => {
+    this.props.setFilter(item.props.headerText as FilterTypes);
+  };
+}
diff --git a/step2-03/exercise/src/components/TodoList.tsx b/step2-03/exercise/src/components/TodoList.tsx
new file mode 100644
index 0000000..805bd8f
--- /dev/null
+++ b/step2-03/exercise/src/components/TodoList.tsx
@@ -0,0 +1,27 @@
+import React from 'react';
+import { Stack } from 'office-ui-fabric-react';
+import { TodoListItem } from './TodoListItem';
+import { Store, FilterTypes } from '../store';
+
+interface TodoListProps {
+  complete: (id: string) => void;
+  remove: (id: string) => void;
+  todos: Store['todos'];
+  filter: FilterTypes;
+  edit: (id: string, label: string) => void;
+}
+
+export const TodoList = (props: TodoListProps) => {
+  const { filter, todos, complete, remove, edit } = props;
+  const filteredTodos = Object.keys(todos).filter(id => {
+    return filter === 'all' || (filter === 'completed' && todos[id].completed) || (filter === 'active' && !todos[id].completed);
+  });
+
+  return (
+    <Stack gap={10}>
+      {filteredTodos.map(id => (
+        <TodoListItem key={id} id={id} todos={todos} complete={complete} remove={remove} edit={edit} />
+      ))}
+    </Stack>
+  );
+};
diff --git a/step2-03/exercise/src/components/TodoListItem.tsx b/step2-03/exercise/src/components/TodoListItem.tsx
new file mode 100644
index 0000000..030aa73
--- /dev/null
+++ b/step2-03/exercise/src/components/TodoListItem.tsx
@@ -0,0 +1,75 @@
+import React from 'react';
+import { Stack, Checkbox, IconButton, TextField, DefaultButton } from 'office-ui-fabric-react';
+import { Store } from '../store';
+
+interface TodoListItemProps {
+  id: string;
+  todos: Store['todos'];
+  remove: (id: string) => void;
+  complete: (id: string) => void;
+  edit: (id: string, label: string) => void;
+}
+
+interface TodoListItemState {
+  editing: boolean;
+  editLabel: string;
+}
+
+export class TodoListItem extends React.Component<TodoListItemProps, TodoListItemState> {
+  constructor(props: TodoListItemProps) {
+    super(props);
+    this.state = { editing: false, editLabel: undefined };
+  }
+
+  render() {
+    const { todos, id, complete, remove } = this.props;
+    const item = todos[id];
+
+    return (
+      <Stack horizontal verticalAlign="center" horizontalAlign="space-between">
+        {!this.state.editing && (
+          <>
+            <Checkbox label={item.label} checked={item.completed} onChange={() => complete(id)} />
+            <div>
+              <IconButton iconProps={{ iconName: 'Edit' }} onClick={this.onEdit} />
+              <IconButton iconProps={{ iconName: 'Cancel' }} onClick={() => remove(id)} />
+            </div>
+          </>
+        )}
+
+        {this.state.editing && (
+          <Stack.Item grow>
+            <Stack horizontal gap={10}>
+              <Stack.Item grow>
+                <TextField value={this.state.editLabel} onChange={this.onChange} />
+              </Stack.Item>
+              <DefaultButton onClick={this.onDoneEdit}>Save</DefaultButton>
+            </Stack>
+          </Stack.Item>
+        )}
+      </Stack>
+    );
+  }
+
+  private onEdit = () => {
+    const { todos, id } = this.props;
+    const { label } = todos[id];
+
+    this.setState({
+      editing: true,
+      editLabel: this.state.editLabel || label
+    });
+  };
+
+  private onDoneEdit = () => {
+    this.props.edit(this.props.id, this.state.editLabel);
+    this.setState({
+      editing: false,
+      editLabel: undefined
+    });
+  };
+
+  private onChange = (evt: React.FormEvent<HTMLInputElement>, newValue: string) => {
+    this.setState({ editLabel: newValue });
+  };
+}
diff --git a/step2-03/exercise/src/index.tsx b/step2-03/exercise/src/index.tsx
new file mode 100644
index 0000000..2587243
--- /dev/null
+++ b/step2-03/exercise/src/index.tsx
@@ -0,0 +1,10 @@
+import React from 'react';
+import ReactDOM from 'react-dom';
+import { TodoApp } from './components/TodoApp';
+import { initializeIcons } from '@uifabric/icons';
+
+// Initializes the UI Fabric icons that we can use
+// Choose one from this list: https://developer.microsoft.com/en-us/fabric#/styles/icons
+initializeIcons();
+
+ReactDOM.render(<TodoApp />, document.getElementById('app'));
diff --git a/step2-03/exercise/src/store/index.ts b/step2-03/exercise/src/store/index.ts
new file mode 100644
index 0000000..221b5f4
--- /dev/null
+++ b/step2-03/exercise/src/store/index.ts
@@ -0,0 +1,14 @@
+export type FilterTypes = 'all' | 'active' | 'completed';
+
+export interface TodoItem {
+  label: string;
+  completed: boolean;
+}
+
+export interface Store {
+  todos: {
+    [id: string]: TodoItem;
+  };
+
+  filter: FilterTypes;
+}