Document:

<PAGE>
                                                                   Exhibit 10.13

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                          NISSAN AUTO LEASING LLC II,
                                 as Transferor,

                                      and

                        NISSAN AUTO LEASE TRUST 2003-A,
                                 as Transferee

                        --------------------------------

                             TRUST SUBI CERTIFICATE
                               TRANSFER AGREEMENT

                         Dated as of October [__], 2003

                        --------------------------------

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<PAGE>
<TABLE>
<S>                                                                                                     <C>
ARTICLE ONE       DEFINITIONS.........................................................................  2

    Section 1.01.   Definitions.......................................................................  2

    Section 1.02.   Interpretive Provisions...........................................................  2

ARTICLE TWO       TRANSFER OF 2003-A SUBI CERTIFICATE.................................................  3

    Section 2.01.   Transfer of 2003-A SUBI Certificate...............................................  3

    Section 2.02.   True Sale.........................................................................  3

    Section 2.03.   Representations and Warranties of the Transferor and the Transferee...............  3

    Section 2.04.   Financing Statement and Books and Records.........................................  6

    Section 2.05.   Acceptance by the Transferee......................................................  7

    Section 2.06.   Release of Claims.................................................................  7

ARTICLE THREE     MISCELLANEOUS.......................................................................  7

    Section 3.01.   Amendment.........................................................................  7

    Section 3.02.   Governing Law.....................................................................  7

    Section 3.03.   Severability......................................................................  7

    Section 3.04.   Binding Effect....................................................................  7

    Section 3.05.   Headings..........................................................................  8

    Section 3.06.   Counterparts......................................................................  8

    Section 3.07.   Further Assurances................................................................  8

    Section 3.08.   Third-Party Beneficiaries.........................................................  8

    Section 3.09.   No Petition.......................................................................  8

    Section 3.10.   Limitation of Liability of Owner Trustee..........................................  8
</TABLE>

                                       i
<PAGE>
                   TRUST SUBI CERTIFICATE TRANSFER AGREEMENT

      This Trust SUBI Certificate Transfer Agreement, dated as of October [__],
2003, is between Nissan Auto Leasing LLC II, a Delaware limited liability
company ("NALL II"), as transferor (the "Transferor"), and Nissan Auto Lease
Trust 2003-A, a Delaware statutory trust (the "Trust"), as transferee (in such
capacity, the "Transferee").

                                    RECITALS

      A. Nissan-Infiniti LT (the "Titling Trust") is a Delaware statutory trust
governed by the Amended and Restated Trust and Servicing Agreement, dated as of
August 26, 1998 (the "Titling Trust Agreement"), among NILT Trust, a Delaware
statutory trust ("NILT Trust"), as grantor and initial beneficiary (in such
capacity, the "Grantor" and the "UTI Beneficiary", respectively), Nissan Motor
Acceptance Corporation, a California corporation ("NMAC"), as servicer (the
"Servicer"), Wilmington Trust Company, a Delaware banking corporation
("Wilmington Trust"), as Delaware trustee (the "Delaware Trustee"), NILT, Inc.,
a Delaware corporation, as trustee (the "Trustee"), and U.S. Bank National
Association, a national banking association ("U.S. Bank"), as trust agent (the
"Trust Agent");

      B. Pursuant to the Titling Trust Agreement, the purposes of the Titling
Trust include taking assignments and conveyances of and holding in trust various
assets (the "Trust Assets");

      C. The Grantor, UTI Beneficiary, the Transferor, the Servicer, the
Trustee, the Delaware Trustee and the Trust Agent are entering into the 2003-A
SUBI Supplement, dated as of October [__], 2003 (the "2003-A SUBI Supplement",
and together with the Titling Trust Agreement, the "SUBI Trust Agreement), to
(i) establish a special unit of beneficial interest (the "2003-A SUBI") and (ii)
identify and allocate certain Trust Assets to the 2003-A SUBI;

      D. Pursuant to the SUBI Trust Agreement a separate portfolio of leases
(the "2003-A Leases"), the vehicles that are leased under the 2003-A Leases (the
"2003-A Vehicles"), and certain other related Trust Assets have been allocated
to the 2003-A SUBI;

      E. The Titling Trust has issued a certificate evidencing a 100% beneficial
interest in the 2003-A SUBI (the "2003-A SUBI Certificate") to NILT Trust;

      F. NILT Trust has transferred and assigned, without recourse, all of its
right, title, and interest in and to the 2003-A SUBI Certificate to the
Transferor pursuant to the SUBI Certificate Transfer Agreement, dated as of
October [__], 2003 (the "SUBI Certificate Transfer Agreement"), between NILT
Trust and the Transferor;

      G. The Trust was formed pursuant to a trust agreement, dated as of
[______], 2003, as amended and restated as of October [__], 2003 (the "Trust
Agreement"), between the Transferor and Wilmington Trust, as owner trustee (the
"Owner Trustee");

      H. The Transferor and the Transferee desire to provide for the transfer
and assignment by the Transferor to the Transferee, without recourse, of all of
the Transferor's right, title, and interest in and to the 2003-A SUBI
Certificate; and

                                       Trust SUBI Certificate Transfer Agreement
<PAGE>
      I. Immediately after the transfer and assignments of the 2003-A SUBI
Certificate to the Trust, the Trust shall pledge the 2003-A SUBI Certificate to
U.S. Bank, as indenture trustee (the "Indenture Trustee") pursuant to an
indenture, dated as of October [__], 2003 (the "Indenture"), between the Trust
and the Indenture Trustee.

      NOW, THEREFORE, in consideration of the mutual agreements herein
contained, and of other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

                                  ARTICLE ONE

                                  DEFINITIONS

     Section 1.01. Definitions. Capitalized terms used herein that are not
otherwise defined shall have the meanings ascribed thereto in the Agreement of
Definitions, dated as of October [__], 2003, by and among the Trust, as issuer
(the "Issuer"), NILT Trust, as Grantor and UTI Beneficiary, the Titling Trust,
NMAC, in its individual capacity, as Servicer and as administrative agent (in
such capacity, the "Administrative Agent"), NALL II, the Trustee, Wilmington
Trust, as Delaware Trustee and Owner Trustee, and U.S. Bank, as Trust Agent and
Indenture Trustee.

      Section 1.02. Interpretive Provisions. For all purposes of this Agreement,
except as otherwise expressly provided or unless the context otherwise requires,
(i) terms used in this Agreement include, as appropriate, all genders and the
plural as well as the singular, (ii) references to words such as "herein",
"hereof", and the like shall refer to this Agreement as a whole and not to any
particular part, Article, or Section within this Agreement, (iii) the term
"include" and all variations thereof shall mean "include without limitation",
(iv) the term "or" shall include "and/or", (v) the term "proceeds" shall have
the meaning ascribed thereto in the UCC, and (vi) any defined term that relates
to a document shall include within its definition any amendments, modifications,
renewals, restatements, extensions, supplements, or substitutions that have been
or are hereafter executed and delivered in accordance with the terms thereof,
except that references to the SUBI Trust Agreement include only such items as
relate to the 2003-A SUBI and the Titling Trust.

      Any reference in this 2003-A Trust SUBI Certificate Transfer Agreement to
any agreement means such agreement as it may be amended, restated, supplemented
(only to the extent such agreement as supplemented relates to the Notes), or
otherwise modified from time to time, except that references to the SUBI Trust
Agreement include only such items as relate to the 2003-A SUBI and the Titling
Trust. Any reference in this 2003-A Trust SUBI Certificate Transfer Agreement to
any law, statute, regulation, rule, or other legislative action shall mean such
law, statute, regulation, rule, or other legislative action as amended,
supplemented, or otherwise modified from time to time, and shall include any
rule or regulation promulgated thereunder. Any reference in this 2003-A Trust
SUBI Certificate Transfer Agreement to a Person shall include the successor or
assignee of such Person.

                                       Trust SUBI Certificate Transfer Agreement
                                       2
<PAGE>
                                  ARTICLE TWO

                      TRANSFER OF 2003-A SUBI CERTIFICATE

      Section 2.01. Transfer of 2003-A SUBI Certificate. In consideration of the
Transferee's delivery to, or upon the order of, the Transferor of the Notes and
the Certificate, the Transferor hereby absolutely sells, transfers, assigns, and
otherwise conveys to the Transferee, without recourse, and the Transferee does
hereby purchase and acquire all of the Transferor's right, title, and interest
in and to the following (collectively, the "Assets"):

            (i)   the 2003-A SUBI Certificate and the interest in the 2003-A
      SUBI represented thereby, including all monies due and paid or to become
      due and paid or payable thereon or in respect thereof;

            (ii)  all of the Transferor's rights and benefits as holder of the
      2003-A SUBI Certificate under the Servicing Agreement and the SUBI Trust
      Agreement;

            (iii) the right to realize upon any property that underlies or may
      be deemed to secure the interest in the 2003-A SUBI represented by the
      2003-A SUBI Certificate, as granted in the 2003-A SUBI Supplement and in
      the 2003-A SUBI Certificate;

            (iv)  all general intangibles, chattel paper, instruments,
      documents, money, deposit accounts, certificates of deposit, securities
      accounts, investment property, financial assets, goods, letters of credit,
      letters of credit rights, advices of credit and uncertificated securities,
      and other property consisting of, arising from, or relating or credited to
      the foregoing;

            (v)   all rights of the Transferor under the SUBI Certificate
      Transfer Agreement; and

            (vi)  all cash and non-cash proceeds of all of the foregoing.

      Section 2.02. True Sale. The parties hereto intend that the sale,
transfer, and assignment of the Assets constitutes a true sale and assignment of
the Assets such that any interest in and title to the Assets would not be
property of the Transferor's estate in the event that the Transferor becomes a
debtor in a case under any bankruptcy law. To the extent that the conveyance of
the Assets hereunder is characterized by a court or similar governmental
authority as a financing, it is intended by the Transferor and the Transferee
that the interest conveyed constitutes a grant of a security interest under the
UCC as in effect in the State of Delaware by the Transferor to the Transferee to
secure the Transfer Price to the Transferor, which security interest shall be
perfected and of a first priority. The Transferor hereby grants to the
Transferee a security interest in all of its right, title, and privilege and
interest in and to the Assets and the parties hereto agree that this Agreement
constitutes a "security agreement" under all applicable laws.

      Section 2.03. Representations and Warranties of the Transferor and the
Transferee.

      (a)   The Transferor hereby represents and warrants to the Transferee as
of the date of this Agreement and the Closing Date that:

                                       Trust SUBI Certificate Transfer Agreement
                                       3
<PAGE>
            (i)   Organization and Good Standing. The Transferor is a limited
      liability company duly formed, validly existing, and in good standing
      under the laws of the State of Delaware, and has the power and the
      authority to own its properties and to conduct its business as such
      properties are currently owned and such business is presently conducted,
      and had at all relevant times, and shall have, the power, the authority,
      and the legal right to acquire, own, and sell the Assets.

            (ii)  Due Qualification. The Transferor is duly qualified to do
      business as a foreign limited liability company in good standing, and has
      obtained all necessary licenses and approvals in all jurisdictions in
      which the ownership or lease of property or the conduct of its business
      shall require such qualifications, except where the failure to have any
      such license, approval, or qualification would not have a Material Adverse
      Effect on the condition, financial or otherwise, of the Transferor or
      would not have a Material Adverse Effect on the ability of the Transferor
      to perform its obligations under this Agreement.

            (iii) Power and Authority. The Transferor has the power and the
      authority to execute and deliver this Agreement and to carry out its
      terms; and the execution, delivery and performance of this Agreement has
      been duly authorized by the Transferor by all necessary action.

            (iv)  Binding Obligation. This Agreement constitutes a legal, valid,
      and binding obligation of the Transferor, enforceable against it in
      accordance with its terms, except as enforceability may be subject to or
      limited by bankruptcy, insolvency, reorganization, moratorium,
      liquidation, or other similar laws affecting the enforcement of creditors'
      rights in general and by general principles of equity, regardless of
      whether such enforceability shall be considered in a proceeding in equity
      or at law.

            (v)   No Violation. The execution, delivery, and performance by the
      Transferor of this Agreement, the consummation of the transactions
      contemplated by this Agreement, and the fulfillment of the terms hereof
      shall not (A) conflict with, result in any breach of any of the terms and
      provisions of, or constitute (with or without notice or lapse of time) a
      default under, the limited liability company agreement of the Transferor,
      or (B) conflict with or breach any of the material terms or provisions of,
      or constitute (with or without notice or lapse of time) a default under,
      any indenture, agreement or other instrument to which the Transferor is a
      party or by which it may be bound or any of its properties are subject; or
      (C) result in the creation or imposition of any Lien upon any of its
      properties pursuant to the terms of any material indenture, agreement, or
      other instrument (other than as permitted by the Basic Documents); or (D)
      violate any law or, to the knowledge of the Transferor, any order, rule or
      regulation applicable to it or its properties, or (E) contravene, violate,
      or result in a default under any judgment, injunction, order, decree, or
      other instrument of any court or of any federal or state regulatory body,
      administrative agency, or other governmental instrumentality having
      jurisdiction over the Transferor or any of its properties, except to the
      extent that such contravention, violation, or default would not be likely
      to have a Material Adverse Effect.

                                       Trust SUBI Certificate Transfer Agreement
                                       4
<PAGE>
            (vi)  No Proceedings. There are no proceedings in which the
      Transferor has been served or investigations pending or, to the knowledge
      of the Transferor, proceedings or investigations that are pending or
      threatened, in each case against the Transferor, before any court,
      regulatory body, administrative agency or other tribunal, or governmental
      instrumentality (A) asserting the invalidity of this Agreement, (B)
      seeking to prevent the consummation of any of the transactions
      contemplated by this Agreement or (C) seeking any determination or ruling
      that, in the reasonable judgment of the Transferor, would materially and
      adversely affect the performance by the Transferor of its obligations
      under this Agreement.

            (vii) Title to 2003-A SUBI Certificate. Immediately prior to the
      transfer of the 2003-A SUBI Certificate pursuant to this Agreement, the
      Transferor (A) is the true and lawful owner of the 2003-A SUBI Certificate
      and has the legal right to transfer the 2003-A SUBI Certificate, (B) has
      good and valid title to the 2003-A SUBI Certificate and the 2003-A SUBI
      Certificate is on the date hereof free and clear of all Liens and (C) will
      convey good, valid, and indefeasible title to the 2003-A SUBI Certificate
      to the Transferee under this Agreement.

      (b)   The Transferee hereby represents and warrants to the Transferor as
of the date of this Agreement and the Closing Date that:

            (i)   Organization and Good Standing. The Transferee is a statutory
      trust duly formed, validly existing, and in good standing under the laws
      of the State of Delaware, and has the power and the authority to own its
      properties and to conduct its business as such properties are currently
      owned and such business is presently conducted, and had at all relevant
      times, and shall have, the power, the authority and the legal right to
      acquire, own and sell the Assets.

            (ii)  Due Qualification. The Transferee is duly qualified to do
      business as a foreign trust in good standing, and has obtained all
      necessary licenses and approvals in all jurisdictions in which the
      ownership or lease of property or the conduct of its business shall
      require such qualifications, except where the failure to have any such
      license, approval, or qualification would not have a Material Adverse
      Effect on Transferee.

            (iii) Power and Authority. The Transferee has the power and the
      authority to execute and deliver this Agreement and to carry out its
      terms; and the execution, delivery and performance of this Agreement has
      been duly authorized by the Transferee by all necessary action.

            (iv)  Binding Obligation. This Agreement constitutes a legal, valid,
      and binding obligation of the Transferee, enforceable against it in
      accordance with its terms, except as enforceability may be subject to or
      limited by bankruptcy, insolvency, reorganization, moratorium,
      liquidation, or other similar laws affecting the enforcement of creditors'
      rights in general and by general principles of equity, regardless of
      whether such enforceability shall be considered in a proceeding in equity
      or at law.

                                       Trust SUBI Certificate Transfer Agreement
                                       5
<PAGE>
            (v)   No Violation. The execution, delivery, and performance of this
      Agreement by the Transferee and the consummation of the transactions
      contemplated by this Agreement and the fulfillment of the terms hereof do
      not (A) conflict with, result in any breach of any of the terms and
      provisions of, or constitute (with or without notice or lapse of time) a
      default under, the Trust Agreement of the Transferee, or (B) conflict with
      or breach any of the material terms or provisions of, or constitute (with
      or without notice or lapse of time) a default under, any indenture,
      agreement or other instrument to which the Transferee is a party or by
      which it may be bound or any of its properties are subject; or (C) result
      in the creation or imposition of any Lien upon any of its properties
      pursuant to the terms of any material indenture, agreement or other
      instrument (other than as permitted by the Basic Documents); or (D)
      violate any law or, to the knowledge of the Transferee, any order, rule or
      regulation applicable to it or its properties, or (E) contravene, violate,
      or result in a default under any judgment, injunction, order, decree, or
      other instrument of any court or of any federal or state regulatory body,
      administrative agency, or other governmental instrumentality having
      jurisdiction over the Transferee or any of its properties, except to the
      extent that such contravention, violation, or default would not be likely
      to have a Material Adverse Effect.

            (vi)  No Proceedings. There are no proceedings in which the
      Transferee has been served or, to the knowledge of the Transferee,
      proceedings or investigations that are pending or threatened, in each case
      against the Transferee, before any court, regulatory body, administrative
      agency or other tribunal or governmental instrumentality (A) asserting the
      invalidity of this Agreement, (B) seeking to prevent the consummation of
      any of the transactions contemplated by this Agreement or (C) seeking any
      determination or ruling that, in the reasonable judgment of the
      Transferee, could be expected to materially and adversely affect the
      performance by the Transferee of its obligations under this Agreement.

      (c)   The representations and warranties set forth in this Section shall
survive the sale of the Assets by the Transferor to the Transferee and the sale
of the Assets by the Transferee to the Trust. Upon discovery by the Transferor,
the Transferee, or the Trustee of a breach of any of the foregoing
representations and warranties, the party discovering such breach shall give
prompt written notice to the others.

      Section 2.04. Financing Statement and Books and Records.

      (a)   In connection with the conveyance of the Assets hereunder, the
Transferor agrees that prior to the Closing Date it will deliver to the
Transferee, with all requisite endorsements, the 2003-A SUBI Certificate and
will file, at its own expense, one or more financing statements with respect to
the Assets meeting the requirements of applicable state law in such manner as
necessary to perfect the sale of the Assets, and the proceeds thereof to the
Transferor (and any continuation statements as are required by applicable state
law), and to deliver a file-stamped copy of each such financing statement (or
continuation statement) or other evidence of such filings (which may, for
purposes of this Section 2.04, consist of telephone confirmation of such filings
with the file stamped copy of each such filing to be provided to the Transferee
in due course), as soon as is practicable after receipt by the Transferor
thereof.

                                       Trust SUBI Certificate Transfer Agreement
                                       6
<PAGE>
      (b)   The Transferor further agrees that it will treat the transfer of the
Assets as a sale for accounting purposes, take no actions inconsistent with the
Transferee's ownership of the Assets and on or prior to the Closing Date
indicate on its books, records and statements that the Assets have been sold to
the Transferee.

      Section 2.05. Acceptance by the Transferee. The Transferee agrees to
comply with all covenants and restrictions applicable to a Holder of the 2003-A
SUBI Certificate and the interest in the 2003-A SUBI represented thereby,
whether set forth in the 2003-A SUBI Certificate, in the SUBI Trust Agreement or
otherwise, and assumes all obligations and liabilities, if any, associated
therewith.

      Section 2.06. Release of Claims. Pursuant to Section 3.04(b) of the
Titling Trust Agreement and Section 12.02(b) of the 2003-A SUBI Supplement, the
Transferee hereby covenants and agrees for the express benefit of each holder
from time to time of a UTI Certificate and any other SUBI Certificate that the
Transferee shall release all claims to the UTI Assets and the related Other SUBI
Assets, respectively, and, in the event such release is not given effect, to
subordinate fully all claims it may be deemed to have against the UTI Assets or
such Other SUBI Assets, as the case may be.

                                 ARTICLE THREE

                                 MISCELLANEOUS

      Section 3.01. Amendment. This Agreement may be amended from time to time
in a writing signed by the parties hereto.

      Section 3.02. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to any otherwise applicable principles of conflict of laws (other than Section
5-1401 of the New York General Obligations Law).

      Section 3.03. Severability. If one or more of the covenants, agreements,
or provisions of this Agreement shall be for any reason whatever held invalid or
unenforceable, such provisions shall be deemed severable from the remaining
covenants, agreements, and provisions of this Agreement, and such invalidity or
unenforceability shall in no way affect the validity or enforceability of such
remaining covenants, agreements and provisions, or the rights of any parties
hereto. To the extent permitted by law, the parties hereto waive any provision
of law that renders any provision of this Agreement invalid or unenforceable in
any respect.

      Section 3.04. Binding Effect. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their permitted
successors and assigns.

      The Transferor acknowledges and agrees that (a) the Transferee may,
pursuant to the Indenture, pledge and grant a security interest in the 2003-A
SUBI and the 2003-A SUBI Assets represented thereby and assign is rights under
this Agreement to the Indenture Trustee (for the benefit of the holders of the
Notes) and (b) the representation, warranties, and covenants contained in this
Agreement and the rights of the Transferee under this Agreement are intended

                                       Trust SUBI Certificate Transfer Agreement
                                       7
<PAGE>
to benefit the Indenture Trustee (for the benefit of the holders of the Notes).
The Transferor hereby consents to all such pledges and grants.

      Section 3.05. Headings. The Article and Section headings are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.

      Section 3.06. Counterparts. This Agreement may be executed in any number
of counterparts, each of which so executed and delivered shall be deemed to be
an original, but all of which counterparts shall together constitute but one and
the same instrument.

      Section 3.07. Further Assurances. Each party hereto shall do such acts,
and execute and deliver to the other party such additional documents or
instruments as may be reasonably requested, in order to effect the purposes of
this Agreement and to better assure and confirm unto the requesting party its
rights, powers and remedies hereunder.

      Section 3.08. Third-Party Beneficiaries. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and each Holder of the 2003-A
SUBI Certificate and each Registered Pledgee, who shall be considered
third-party beneficiaries hereof. Except as otherwise provided in this
Agreement, no other Person shall have any right or obligation hereunder.

      Section 3.09. No Petition. Each of the parties hereto covenants and agrees
that prior to the date that is one year and one day after the date upon which
all obligations under each Securitized Financing have been paid in full, it will
not institute against, or join any other Person in instituting against any other
party hereto, any Grantor, the Owner Trustee, the Trustee, any Special Purpose
Affiliate, any member of a Special Purpose Affiliate that is a limited liability
company or the trustee of the Grantor that is a partnership, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding, or other
proceedings under any federal or state bankruptcy or similar law.

      This Section shall survive the complete or partial termination of this
Agreement, the resignation or removal of the Trustee and the complete or partial
resignation or removal of the Servicer.

      Section 3.10. Limitation of Liability of Owner Trustee. Notwithstanding
anything contained herein to the contrary, this instrument has been
countersigned by Wilmington Trust Company not in its individual capacity but
solely in its capacity as Owner Trustee of the Trust and in no event shall
Wilmington Trust Company in its individual capacity or any beneficial owner of
the Trust have any liability for the representations, warranties, covenants,
agreements, or other obligations of the Trust hereunder, as to all of which
recourse shall be had solely to the assets of the Trust. For all purposes of
this Agreement, in the performance of any duties or obligations of the Trust
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Articles Six, Seven, and Ten of the Trust
Agreement.

                                       Trust SUBI Certificate Transfer Agreement
                                       8
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective officers duly authorized as of the day and
year first above written.

                              NISSAN AUTO LEASING LLC II,
                                   as Transferor

                              By:  _____________________________________________
                                   Name:
                                   Title:

                              NISSAN AUTO LEASE TRUST 2003-A,
                                   as Transferee

                              By:  WILMINGTON TRUST COMPANY,
                                   not in its individual capacity, but solely as
                                   Owner Trustee

                              By:  _____________________________________________
                                   Name:
                                   Title:

                                      S-1EXHIBIT 4.1

                          AMERICAN FIRE RETARDANT CORP.
              EMPLOYEE STOCK INCENTIVE PLAN FOR THE YEAR 2003 NO. 5

     1.      General  Provisions.
             --------------------

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

     1.2     Administration.
             --------------

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

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

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

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

     1.4     Shares  Subject  to this Plan.  The maximum number of shares of the
             -----------------------------
Common  Stock  that  may  be  issued  pursuant to this Plan shall be 595,000,000
subject to adjustment pursuant to the provisions of Paragraph 4.1.  If shares of
the Common Stock awarded or issued under this Plan are reacquired by the Company

                                        1
<PAGE>
due  to a forfeiture or for any other reason, such shares shall be cancelled and
thereafter  shall  again  be  available  for  purposes of this Plan.  If a Stock
Option  expires,  terminates  or is cancelled for any reason without having been
exercised in full, the shares of the Common Stock not purchased thereunder shall
again  be  available  for  purposes  of  this  Plan.

     2.     Provisions  Relating  to  Stock  Options.
            ----------------------------------------

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

     2.2     Purchase  Price.  The  purchase  price  (the  "Exercise  Price") of
             ---------------
shares  of  the  Common Stock subject to each Stock Option (the "Option Shares")
shall  not  be less than 85 percent of the Fair Market Value of the Common Stock
on the date of exercise.  For an Employee holding greater than 10 percent of the
total  voting power of all stock of the Company, either Common or Preferred, the
Exercise Price of an incentive stock option shall be at least 110 percent of the
Fair  Market  Value  of the Common Stock on the date of the grant of the option.
As  used  herein,  "Fair  Market  Value"  means the mean between the highest and
lowest  reported sales prices of the Common Stock on the New York Stock Exchange
Composite  Tape  or,  if  not  listed  on  such  exchange, on any other national
securities  exchange  on which the Common Stock is listed or on The Nasdaq Stock
Market,  or,  if  not so listed on any other national securities exchange or The
Nasdaq  Stock  Market,  then  the  average  of the bid price of the Common Stock
during  the  last  five  trading  days  on  the  OTC  Bulletin Board immediately
preceding  the last trading day prior to the date with respect to which the Fair
Market  Value  is  to  be  determined.  If the Common Stock is not then publicly
traded,  then  the Fair Market Value of the Common Stock shall be the book value
of  the  Company  per  share  as  determined  on  the  last  day of March, June,
September, or December in any year closest to the date when the determination is
to  be  made.  For  the  purpose of determining book value hereunder, book value
shall  be  determined  by adding as of the applicable date called for herein the
capital,  surplus,  and  undivided  profits  of  the  Company,  and after having
deducted  any  reserves theretofore established; the sum of these items shall be
divided by the number of shares of the Common Stock outstanding as of said date,
and  the  quotient thus obtained shall represent the book value of each share of
the  Common  Stock  of  the  Company.

     2.3     Option Period.  The Stock Option period (the "Term") shall commence
             -------------
on  the  date of grant of the Stock Option and shall be 10 years or such shorter
period  as is determined by the Committee.  Each Stock Option shall provide that
it  is  exercisable over its term in such periodic installments as the Committee
may  determine,  subject to the provisions of Paragraph 2.4.1.  Section 16(b) of
the  Securities  Exchange  Act  of 1934, as amended (the "Exchange Act") exempts
persons  normally  subject to the reporting requirements of Section 16(a) of the
Exchange  Act  (the  "Section  16  Reporting  Persons")  pursuant to a qualified
employee  stock  option plan from the normal requirement of not selling until at
least  six  months  and  one  day  from  the  date  the Stock Option is granted.

                                        2
<PAGE>
     2.4      Exercise  of  Options.
              ---------------------

     2.4.1    Each  Stock  Option  may be exercised in whole or in part (but not
as  to  fractional  shares) by delivering it for surrender or endorsement to the
Company,  attention  of  the Corporate Secretary, at the principal office of the
Company,  together with payment of the Exercise Price and an executed Notice and
Agreement of Exercise in the form prescribed by Paragraph 2.4.2.  Payment may be
made  (a)  in  cash,  (b)  by  cashier's or certified check, (c) by surrender of
previously owned shares of the Common Stock valued pursuant to Paragraph 2.2 (if
the Committee authorizes payment in stock in its discretion), (d) by withholding
from  the  Option  Shares which would otherwise be issuable upon the exercise of
the Stock Option that number of Option Shares equal to the exercise price of the
Stock  Option,  if  such  withholding  is  authorized  by  the  Committee in its
discretion,  or  (e)  in the discretion of the Committee, by the delivery to the
Company  of the optionee's promissory note secured by the Option Shares, bearing
interest  at  a  rate  sufficient  to  prevent  the imputation of interest under
Sections  483 or 1274 of the Code, and having such other terms and conditions as
may  be  satisfactory  to  the  Committee.  Subject  to  the  provisions of this
Paragraph  2.4  and Paragraph 2.5, the Employee has the right to exercise his or
her  Stock Options at the rate of at least 20% per year over five years from the
date  the  Stock  Option  is  granted.

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

     2.4.3     No  Stock  Option  shall  be  exercisable  unless  and  until any
applicable  registration  or  qualification  requirements  of  federal and state
securities  laws,  and  all  other  legal requirements, have been fully complied
with.  At no time shall the total number of securities issuable upon exercise of
all  outstanding  options  under  this  Plan, and the total number of securities
provided  for under any bonus or similar plan or agreement of the Company exceed
a  number of securities which is equal to 30% of the then outstanding securities
of  the  Company,  unless  a  percentage higher than 30% is approved by at least
two-thirds of the outstanding securities entitled to vote.  The Company will use
reasonable  efforts  to  maintain  the effectiveness of a Registration Statement
under  the  Securities Act for the issuance of Stock Options and shares acquired
thereunder,  but  there may be times when no such Registration Statement will be
currently effective.  The exercise of Stock Options may be temporarily suspended
without  liability  to  the  Company  during  times  when  no  such Registration
Statement  is  currently  effective,  or  during  times  when, in the reasonable
opinion  of the Committee, such suspension is necessary to preclude violation of
any requirements of applicable law or regulatory bodies having jurisdiction over
the  Company.  If any Stock Option would expire for any reason except the end of
its term during such a suspension, then if exercise of such Stock Option is duly
tendered  before  its  expiration,  such  Stock  Option shall be exercisable and
exercised (unless the attempted exercise is withdrawn) as of the first day after
the  end  of  such suspension.  The Company shall have no obligation to file any
Registration  Statement  covering  resales  of  Option  Shares.

     2.5     Continuous  Employment.  Except as provided in Paragraph 2.7 below,
             ----------------------
an Employee may not exercise a Stock Option unless from the date of grant to the
date of exercise the Employee remains continuously in the employ of the Company.
For  purposes  of  this Paragraph 2.5, the period of continuous employment of an
Employee with the Company shall be deemed to include (without extending the term
of the Stock Option) any period during which the Employee is on leave of absence
with  the  consent of the Company, provided that such leave of absence shall not
exceed  three  months and that the Employee returns to the employ of the Company
at  the expiration of such leave of absence.  If the Employee fails to return to
the  employ  of  the  Company  at  the  expiration of such leave of absence, the
Employee's employment with the Company shall be deemed terminated as of the date
such  leave of absence commenced.  The continuous employment of an Employee with
the Company shall also be deemed to include any period during which the Employee
is a member of the Armed Forces of the United States, provided that the Employee

                                        3
<PAGE>
returns  to  the  employ of the Company within 90 days (or such longer period as
may be prescribed by law) from the date the Employee first becomes entitled to a
discharge  from  military service.  If an Employee does not return to the employ
of  the  Company  within  90 days (or such longer period as may be prescribed by
law)  from  the  date  the  Employee  first becomes entitled to a discharge from
military  service, the Employee's employment with the Company shall be deemed to
have  terminated  as  of  the  date  the  Employee's  military  service  ended.

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

     2.7     Termination  of  Employment.
             ---------------------------

     2.7.1   Upon  an  Employee's  Retirement,  Disability   (both  terms  being
defined  below)  or  death,  (a)  all Stock Options to the extent then presently
exercisable  shall remain in full force and effect and may be exercised pursuant
to  the  provisions thereof, and (b) unless otherwise provided by the Committee,
all  Stock  Options to the extent not then presently exercisable by the Employee
shall  terminate  as of the date of such termination of employment and shall not
be  exercisable  thereafter.  Unless  employment  is  terminated  for  cause, as
defined  by applicable law, the right to exercise in the event of termination of
employment,  to the extent that the optionee is entitled to exercise on the date
the  employment  terminates  as  follows:

             (i)      At  least  6 months  from  the  date  of  termination  if
termination  was  caused  by  death  or  disability.

             (ii)     At  least  30 days  from  the  date  of  termination  if
termination  was  caused  by  other  than  death  or  disability.

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

     2.7.3     For  purposes  of  this  Plan:

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

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

     3.     Provisions  Relating  to  Awards.
            --------------------------------

     3.1    Grant  of  Awards.  Subject  to  the  provisions  of this  Plan, the
            -----------------
Committee shall have full and complete authority, in its discretion, but subject
to  the  express  provisions  of this Plan, to (1) grant Awards pursuant to this
Plan,  (2)  determine  the  number of shares of the Common Stock subject to each
Award  (the  "Award Shares"), (3) determine the terms and conditions (which need
not be identical) of each Award, including the consideration (if any) to be paid

                                        4
<PAGE>
by  the  Employee  for  such  the  Common  Stock,  which may, in the Committee's
discretion,  consist  of  the delivery of the Employee's promissory note meeting
the  requirements  of  Paragraph  2.4.1,  (4)  establish  and modify performance
criteria  for  Awards,  and  (5)  make  all  of  the determinations necessary or
advisable  with  respect  to Awards under this Plan.  Each Award under this Plan
shall  consist of a grant of shares of the Common Stock subject to a restriction
period  (after  which  the  restrictions  shall  lapse), which shall be a period
commencing  on  the  date  the  Award  is granted and ending on such date as the
Committee shall determine (the "Restriction Period").  The Committee may provide
for  the lapse of restrictions in installments, for acceleration of the lapse of
restrictions upon the satisfaction of such performance or other criteria or upon
the  occurrence  of  such  events  as the Committee shall determine, and for the
early  expiration of the Restriction Period upon an Employee's death, Disability
or  Retirement as defined in Paragraph 2.7.3, or, following a Change of Control,
upon  termination  of an Employee's employment by the Company without "Cause" or
by  the  Employee  for  "Good  Reason,"  as those terms are defined herein.  For
purposes  of  this  Plan:

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

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

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

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

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

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

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

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

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

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

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

                                        5
<PAGE>
               (e)     The  failure  of  the  Company  to  grant  the Employee a
performance  bonus  reasonably  equivalent  to the same percentage of salary the
Employee  normally  received  prior  to  the Change of Control, given comparable
performance  by  the  Company  and  the  Employee;  or

               (f)     The  failure  of  the  Company  to  obtain a satisfactory
Assumption  Agreement  (as  defined  in  Paragraph  4.13  of  this  Plan) from a
successor,  or  the  failure  of  such  successor  to  perform  such  Assumption
Agreement.

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

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

     3.4     Terms and Conditions of Awards.  Upon receipt of an Award of shares
             ------------------------------
of  the  Common  Stock  under  this Plan, even during the Restriction Period, an
Employee  shall  be  the  holder  of record of the shares and shall have all the
rights  of  a  stockholder with respect to such shares, subject to the terms and
conditions  of  this  Plan  and  the  Award.

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

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

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

     4.       Miscellaneous  Provisions.
              -------------------------

     4.1      Adjustments  Upon  Change  in  Capitalization.
              ---------------------------------------------

     4.1.1    The  number  and class of shares subject to each outstanding Stock
Option, the Exercise Price thereof (but not the total price), the maximum number
of  Stock  Options  that  may  be granted under this Plan, the minimum number of
shares  as  to  which  a  Stock Option may be exercised at any one time, and the
number  and  class  of  shares  subject  to  each  outstanding  Award,  shall be
proportionately  adjusted in the event of any increase or decrease in the number
of  the  issued  shares  of  the  Common  Stock which results from a split-up or
consolidation  of  shares,  payment of a stock dividend or dividends exceeding a
total of five percent for which the record dates occur in any one fiscal year, a
recapitalization  (other than the conversion of convertible securities according

                                        6
<PAGE>
to  their  terms),  a combination of shares or other like capital adjustment, so
that  (a)  upon  exercise  of  the  Stock Option, the Employee shall receive the
number  and  class  of  shares the Employee would have received had the Employee
been  the holder of the number of shares of the Common Stock for which the Stock
Option  is  being exercised upon the date of such change or increase or decrease
in  the  number  of  issued  shares  of  the  Company, and (b) upon the lapse of
restrictions  of  the  Award  Shares,  the Employee shall receive the number and
class  of  shares  the  Employee  would have received if the restrictions on the
Award  Shares  had  lapsed on the date of such change or increase or decrease in
the  number  of  issued  shares  of  the  Company.

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

     4.2     Withholding Taxes.  The Company shall have the right at the time of
             -----------------
exercise  of  any  Stock  Option,  the  grant  of  an  Award,  or  the  lapse of
restrictions on Award Shares, to make adequate provision for any federal, state,
local  or  foreign  taxes  which it believes are or may be required by law to be
withheld  with  respect  to  such  exercise (the "Tax Liability"), to ensure the
payment  of  any such Tax Liability.  The Company may provide for the payment of
any  Tax Liability by any of the following means or a combination of such means,
as  determined  by  the  Committee  in  its  sole and absolute discretion in the
particular  case  (1)  by requiring the Employee to tender a cash payment to the
Company,  (2) by withholding from the Employee's salary, (3) by withholding from
the  Option  Shares which would otherwise be issuable upon exercise of the Stock
Option,  or  from  the  Award  Shares  on  their  grant  or  date  of  lapse  of
restrictions,  that  number of Option Shares or Award Shares having an aggregate
Fair  Market  Value (determined in the manner prescribed by Paragraph 2.2) as of
the  date  the  withholding tax obligation arises in an amount which is equal to
the  Employee's  Tax  Liability or (4) by any other method deemed appropriate by
the  Committee.  Satisfaction  of  the  Tax  Liability of a Section 16 Reporting
Person  may  be made by the method of payment specified in clause (3) above only
if  the  following  two  conditions  are  satisfied:

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

               (b)     The  withholding of Option Shares or Award Shares is made
either (i) pursuant to an irrevocable election (the "Withholding Election") made
by  the  Employee  at  least six months in advance of the withholding of Options
Shares  or  Award  Shares,  or  (ii)  on  a  day within a 10-day "window period"
beginning  on  the  third  business  day  following  the  date of release of the
Company's  quarterly  or  annual  summary  statement  of  sales  and  earnings.

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

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

     4.4     Amendments and Termination.  The Board of Directors may at any time
             --------------------------
suspend,  amend  or  terminate  this  Plan.  No amendment, except as provided in
Paragraph  3.3,  or  modification of this Plan may be adopted, except subject to
stockholder  approval, which would (1) materially increase the benefits accruing
to  the  Employees  under  this  Plan,  (2)  materially  increase  the number of
securities  which may be issued under this Plan (except for adjustments pursuant
to  Paragraph  4.1  hereof),  or  (3)  materially  modify the requirements as to
eligibility  for  participation  in  this  Plan.

                                        7
<PAGE>
     4.5     Successors  in  Interest.  The  provisions  of  this  Plan  and the
             ------------------------
actions of the Committee shall be binding upon all heirs, successors and assigns
of  the  Company  and  of  the  Employees.

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

     4.7     Fairness  of  the  Repurchase Price.  In the event that the Company
             -----------------------------------
repurchases  securities  upon  termination  of employment pursuant to this Plan,
either:  (a)  the  price  will  not  be  less  than the fair market value of the
securities  to  be repurchased on the date of termination of employment, and the
right to repurchase will be exercised for cash or cancellation of purchase money
indebtedness  for the securities within 90 days of termination of the employment
(or  in the case of securities issued upon exercise of options after the date of
termination,  within  90  days  after  the  date of the exercise), and the right
terminates  when the Company's securities become publicly traded, or (b) Company
will  repurchase  securities  at  the original purchase price, provided that the
right  to  repurchase  at  the  original purchase price lapses at the rate of at
least 20% of the securities per year over five years from the date the option is
granted  (without  respect  to  the  date  the  option  was  exercised or became
exercisable)  and  the  right  to  repurchase  must  be  exercised  for  cash or
cancellation of purchase money indebtedness for the securities within 90 days of
termination  of  employment  (or  in  case of securities issued upon exercise of
options  after  the  date  of  termination, within 90 days after the date of the
exercise).

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

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

     4.10    Term  of  Plan.  No  Stock  Option  shall  be exercisable, or Award
             --------------
granted,  unless  and until the Directors of the Company have approved this Plan
and  all  other  legal requirements have been met.  This Plan was adopted by the
Board  effective  October  15,  2003.  No Stock Options or Awards may be granted
under  this  Plan  after  October  15,  2013.

     4.11    Governing  Law.  This  Plan and all actions taken  thereunder shall
             --------------
be  governed  by,  and  construed  in  accordance with, the laws of the State of
Nevada.

     4.12    Approval.  This  Plan  must  be  approved  by  a  majority  of  the
             --------
outstanding  securities  entitled  to vote within 12 months before or after this
Plan  is  adopted  or  the  date  the agreement is entered into.  Any securities
purchased  before  security  holder  approval  is  obtained must be rescinded if
security  holder  approval is not obtained within 12 months before or after this
Plan  is  adopted  or  the  date the agreement is entered into.  Such securities
shall  not  be  counted  in  determining  whether  such  approval  is  obtained.

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

                                        8
<PAGE>
generality  of  the foregoing, the Committee may require an Assumption Agreement
to  include  satisfactory  undertakings  by  a  successor:

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

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

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

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

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

     4.15    Information to Shareholders.  The  Company shall furnish to each of
             ---------------------------
its  stockholders  financial  statements  of  the  Company  at  least  annually.

     IN WITNESS WHEREOF, this Plan has been executed effective as of October 15,
2003.

                                            AMERICAN FIRE RETARDANT CORP.

                                            By  /s/  Stephen  F.  Owens
                                               ---------------------------------
                                               Stephen F. Owens, President

                                        9
<PAGE>

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