Document:

AMERICAN HOMESTAR CORPORATION
                                       AND
                          ROADMASTERS TRANSPORT COMPANY

                             TRANSPORTATION CONTRACT

This  Contract  made  this  25 day of February, 2004, by and between RoadMasters
Transport  Company,  hereinafter  referred  to as "Carrier", a corporation whose
principal  address  is P. O. Box 1488, Athens, Texas 75751 and American Homestar
Corporation, hereinafter referred to as "Shipper", a corporation whose principal
office  is  located  at  2450  South  Shore Blvd., Suite 300, League City, Texas
77573.  Shipper  desires  to  avail  itself  of  the  transportation services of
Carrier  on a contract basis in accordance with the provisions contained in this
Contract.  Therefore,  in  consideration of the mutual covenants, conditions and
agreements  set  forth  herein,  the  parties  hereto  agree  as  follows:

I.   CARRIER AGREES:

1.   To  transport  for Shipper and its subsidiaries manufactured and/or modular
     homes  from  point  of  manufacture  situated  in  the  Dallas - Fort Worth
     Metroplex to points in the continental United States. Carrier shall provide
     service that is designed to meet the distinct needs of Shipper.

2.   To  transport  the  described property received directly from Shipper under
     the terms and conditions of this Contract. The acceptance by the Carrier of
     the  described  property and their issuance of a Bill of Lading to Shipper,
     shall cause the terms of this Contract to be in full force and effect.

3.   To  performs  its duties as a contract carrier as are imposed by law and to
     provide  insurance acceptable to the Shipper and in the amounts required by
     Federal,  State  and  Provincial  agencies,  but  in no event less than One
     Million  Dollars  ($1,000,000.00)  per  occurrence. Carrier shall provide a
     certificate  of  insurance  to  Shipper,  naming  Shipper  as an additional
     insured,  as  of  the  commencement  date  of this Agreement. Carrier shall
     indemnify  and  hold  harmless  Shipper  from and against all loss, damage,
     fines,  expense, actions and claims for injury to persons (including injury
     resulting  in  death),  and  damage  to property where such loss, damage or
     injury is caused by acts or omissions of Carrier, its agents, or employees,
     arising  out  of  or  in  connection  with  Carrier's  discharge  of  its
     transportation  duties  and responsibilities as specified in this Contract,
     except  as  otherwise  provided  in  Section  III.

4.   Carrier  shall  have  sufficient  dedicated  tractors  designed  for  the
     transportation  of  manufactured  and/or modular homes for the exclusive or
     preferential  use  of  Shipper  and  will  provide  additional  tractors
     ("Supplemental Fleet") as may be required by Shipper to effect the movement
     of  designated  manufactured  and/or  modular homes within two (2) business
     days  following  written  or  faxed  notification  to  the Carrier, weather
     permitting.  Shipper  shall  provide  Carrier  no

<PAGE>
     less  than  two (2) business days' notice of the shipping date, designation
     and  other  necessary  information  for  each  planned  movement of a home.

5.   Carrier shall at all times during the term of this Contract provide Shipper
     with  Carrier's  lowest  line  haul  and other rates, net of any rebate for
     shipping  of  manufactured  and modular homes within the geographic area of
     Shipper's  operations.

6.   At  the  option  of Shipper, to provide transportation services and storage
     facilities  for homes which have not been picked up by Shipper's authorized
     dealers within the five (5) working day term of Shipper. It is specifically
     understood  and  agreed  that  the liability of Carrier for any loss to the
     home  while  in storage awaiting pick up of an authorized dealer or further
     shipping  instructions  by Shipper, shall be that of a warehouseman and not
     that of a carrier. Fees for this service shall be set forth in the schedule
     of  rates  and  charges  in  Appendix  A,  and  invoiced  to  Shipper  when
                                  -----------
     applicable.

7.   Carrier will agree to:

     a.   Pull each home level.

     b.   Check  and  correct  tire  pressure  prior  to  leaving  plant  and
          periodically  in  route  (at  least  every  300  miles  or every stop,
          whichever  comes  first).

     c.   Check  and  correct  lug nuts for tightness prior to leaving plant and
          periodically  in  route  (at  least  every  300  miles  or every stop,
          whichever  comes  first).

     d.   Comply  fully  with  all applicable laws, rules, regulations and other
          requirements  of  all applicable regulatory regimes and jurisdictions.

II.  SHIPPER AGREES:

1.   In  accordance  with  the  terms  and  conditions in this Contract, Shipper
     agrees  to tender to carrier the property specified in Section 1, Paragraph
     1 for transportation by Carrier from and to the points described herein. It
     is  specifically understood that Shipper will tender to Carrier 100% of the
     production  of  its  Lancaster  and  Forth  Worth manufacturing centers for
     transportation  by  the  Carrier  from  the  described origin points to the
     described  destination points except such property as may be transported by
     authorized  dealers of Shipper, provided, however, that Shipper may deliver
     homes  with  its  own  vehicles  or  other  contractors  which  Shipper has
     contracted  to  install  at  a  permanent  homesite.

2.   As  full  compensation  for  the  services  by  Carrier  to  the  terms and
     conditions  of  this  Contract, to pay Carrier within 30 days of receipt of
     Carrier's  invoice  in  accordance  with  the rates, charges and provisions
     appearing  in  Carrier's  freight  bill/bill of lading, and/or schedules of
     rates and charges (and amendments, supplements and revisions thereof) which

<PAGE>
     are  made  a  part  of  this  Contract  and  attached  as Appendix B. It is
                                                               ----------
     specifically  understood that Shipper may deduct amounts of claims or other
     disputed  items  from  Carrier's  invoiced  amounts  once Carrier has given
     reasonable  information  and  30  days  from date of receipt at RoadMasters
     Corporate  Office  to  dispose  of such claims and/or other disputed items.

III. CARRIER AND SHIPPER AGREE:

1.   The  initial  term of this Contract, shall commence on the 1st day of March
     2004, and shall expire on the last day of February 2005, provided that this
     Contract  shall  automatically  continue  for two additional successive one
     year  terms  (thus  to  as  far  as  the last day of February 2007), unless
     Shipper  gives  at  least  thirty  (30)  days  advance  written  notice  of
     termination  to  Carrier  prior  to  the  end of any of the one year terms,
     whereupon  this  Contract shall terminate at the end of then current year's
     term  of  this  Contract.  Nothing  in this paragraph shall be construed as
     limiting, abridging or superseding any right of cancellation or termination
     of  this  Contract  as  may  be  specified  in  any other paragraph of this
     Contract.

2.   All  transportation  performed  by  Carrier  for Shipper hereunder shall be
     subject  to  and governed by the terms and conditions of Carrier's attached
     freight  bill  and  such  other  rules, regulations, charges and provisions
     appearing in Carrier's Fee and Service Schedule and amendments, supplements
     and  revisions  thereof  which are expressly incorporated by reference into
     the  Contract.  To  the  extent that any provisions therein are in conflict
     with the provisions of this Contract, the provisions of this Contract shall
     be  deemed  as  controlling.

3.   In  the event either party to this Contract is prevented from or delayed in
     performing  any  of  its  obligations  hereunder  on  account of any law or
     legally  binding  order, regulation, direction, or act of any government or
     any department or agency thereof having jurisdiction over such party, or on
     account  of  war,  Act  of God, labor disturbances, or any cause beyond the
     control  of  the  parties, such party shall be excused from performing such
     obligations  to  the  extent  of and for the term of the disability and the
     other party shall be excused from performing its obligations hereunder to a
     like  extent;  neither  party  shall  be liable to the other for damages by
     reason  of  any  delay  or  suspension  caused by events enumerated in this
     paragraph.

4.   All  claims  for  recovery  by  Shipper  as  provided herein and as to each
     shipment, must be filed with Carrier within ninety (90) days of the date of
     delivery  or  tender  of  delivery  of  that  shipment.

5.   In the event a manufactured home or modular home is subsequently damaged or
     injured  in  transit and while under the control of Carrier, the provisions
     of  this  paragraph  will  control  over any conflicting provisions of this
     Agreement.

<PAGE>
     a.   Carrier agrees that if the damaged home was a sectional home, and less
          than  all sections are damaged, that Carrier will promptly pay Shipper
          an amount equal to Shipper's normal dealer invoice for all sections of
          the  home  (whether  or  not all sections are damaged), less transport
          charges and volume rebate earned by the intended dealer as of the date
          of the accident. Shipper agrees that it will construct, upon Carrier's
          written  order  and  at  Carrier's  expense, the sections necessary to
          complete  any  damaged  home  in  Shipper's normal course of business.
          Shipper will attempt to construct the sections with matching materials
          whenever  possible,  but  shall have no liability for failure to match
          materials.

     b.   Carrier  may  request and Shipper may, at its option, agree to perform
          repairs to damaged homes transported under this agreement. Such repair
          will  be made by Shipper at the Carrier's expense and for an amount to
          be  agreed  upon  at the time such repairs are performed. Such repairs
          shall  be made by Shipper in conformance with applicable codes without
          warranty  of  any  kind and are subject to the hold harmless set forth
          below.

     Carrier agrees that if Carrier resells any damaged home or section, whether
or  not  repairs  have  been  made  by  shipper:

          (1)  Carrier  will  inform  any  potential  buyer of the nature of and
               extent  of  any  damage.

          (2)  Carrier  will inform any potential buyer in writing that the home
               has no warranty from Shipper and will be sold "as is" and without
               express  or  implied  warranty  other  than a warranty offered by
               Carrier,  if  any.

          (3)  Carrier  will  indemnify  and  hold  Shipper  harmless  from  any
               damages,  cost,  expense,  claim or demand relating to or arising
               from  repair  or  damages  under  the provisions of this Section,
               whether  based  on  breach  of  Contract, tort or any other legal
               theory,  it  being  the  intent of the parties that Shipper shall
               have  no  liability  for ultimate sale of any replacement section
               home.  Carrier's  liability  shall  not extend beyond the term of
               Shipper's  existing  warranty. It is specifically understood that
               Carrier  has  agreed to accept liability for loss of the property
               caused  by  an  Act of God and that Shipper has agreed to pay the
               fees  therefor  as  set  forth  in  Appendix  C.
                                                   -----------

6.   Except  as  may  be  otherwise specifically provided herein, the rights and
     obligations  of the parties with respect to shipments made pursuant to this
     Contract  are  subject  to any and all rules, regulations and orders of the
     United States Government or any State Government, or any other governmental
     entity,  board,  commission  or  agency  thereof.  This  Contract  shall be
     construed  according  to  the  laws  of  the  State  of  Texas,  and if any
     provisions  of  this  Contract  be  declared

<PAGE>
     unlawful  or  unenforceable,  by  judicial  determination or otherwise, the
     remaining  provisions  of  this  Contract  shall  remain  in full force and
     effect.

7.   This  Contract  shall  not  be assigned by either party without the written
     consent  of  the  other,  which consent shall not be unreasonably withheld.

8.   Any  notice  given  in  writing  under this Contract shall be considered as
     having  been  given  by either party to the other party upon its receipt by
     the  other  party  and shall be sent by registered or certified mail to the
     applicable  address  set forth in this Contract, or to such other addresses
     as  such  other  party  may  from  time-to-time  specify  in writing as the
     applicable  address.  Notices to the Shipper shall be sent to the attention
     of the Vice President of Finance, American Homestar Corporation, 2450 South
     Shore  Blvd.,  Suite  300, League City, Texas 77573. Notices to the Carrier
     shall  be  sent  to  the  attention  of  Howard Hull, Director of Sales and
     Marketing,  P.  O.  Box  1488,  Athens,  Texas  75751.

9.   If either party shall persistently and repeatedly refuse or fail to perform
     any  duty,  obligation  or  responsibility  required  by  the terms of this
     Contract,  or  persistently disregard laws or regulations applicable to the
     performance  under  the  terms  of  this  Contract  or  otherwise  commit a
     substantial violation of any provisions of this Contract, either party may,
     without  prejudice  to  any  other  right  or  remedy,  state its intent to
     terminate this Contract and the circumstances therefore by giving the other
     party at least thirty (30) days prior written notice of such intent. In the
     event that the offending party cures the complained of circumstances within
     thirty (30) days of receipt of the written notice, and continues thereafter
     to  tender  or  transport  the described property and to perform under this
     Contract,  all provisions of this Contract shall continue in full force and
     effect.

10.  That  in  the  event  the cost of fuel, insurance and/or other direct costs
     related  to  the provision of the transportation services to be provided by
     Carrier under this Contract shall increase or decrease, the compensation to
     be  paid  by  Carrier  by Shipper for such transportation services shall be
     subject to upward or downward adjustment in accordance with these costs. It
     is  specifically  understood  that,  before  any increase is implemented or
     incurred, the Carrier shall present reasonable cost data in support thereof
     to  the  Shipper  including  but  not limited to fuel, insurance, and other
     related  direct transportation costs as well as data which may be available
     and/or  released  by  a  Federal  and/or  State  entity.

Signature Page follows:

<PAGE>
     IN  WITNESS  WHEREOF,  the  parties hereto have affixed their signatures to
this  Contract  as  of  the  date  set  forth  above.

"SHIPPER"                               "CARRIER"
AMERICAN HOMESTAR CORPORATION           ROADMASTER TRANSPORT CO.

By:                                     By:
     -----------------------------           -----------------------------
        --------------------------      Larry Moran
Its:                                    Its:  President
        --------------------------            ---------

                                        By:
                                        ----------------------------------
                                              Chuck Ladd
                                        Its:  Executive Vice President

                                        By:
                                        ----------------------------------
                                              Howard Hull
                                        Its:  Vice President, Sales and
                                              Marketing

<PAGE>EXHIBIT 4.1

                           GATEWAY DISTRIBUTORS, LTD.
       NON-EMPLOYEE DIRECTORS AND CONSULTANTS RETAINER STOCK PLAN FOR THE
                                    YEAR 2004

     1.   Introduction.  This  Plan shall be known as the "Gateway Distributors,
          ------------
Ltd.  Non-Employee  Directors  and  Consultants Retainer Stock Plan for the Year
2004,"  and is hereinafter referred to as the "Plan."  The purposes of this Plan
are  to enable Gateway Distributors, Ltd., a Nevada corporation (the "Company"),
to  promote  the interests of the Company and its stockholders by attracting and
retaining  non-employee  Directors  and  Consultants  capable  of furthering the
future  success  of  the  Company  and by aligning their economic interests more
closely  with  those  of the Company's stockholders, by paying their retainer or
fees  in  the form of shares of the Company's common stock, par value $0.001 per
share  (the  "Common  Stock").

     2.   Definitions.  The  following  terms  shall have the meanings set forth
          -----------
below:

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

     "Change of Control" has the meaning set forth in Paragraph 12(d) hereof.

     "Code"  means  the Internal Revenue Code of 1986, as amended, and the rules
and  regulations  thereunder. References to any provision of the Code or rule or
regulation  thereunder  shall  be  deemed  to  include  any amended or successor
provision,  rule  or  regulation.

     "Committee"  means  the committee that administers this Plan, as more fully
defined  in  Paragraph  13  hereof.

     "Common Stock" has the meaning set forth in Paragraph 1 hereof.

     "Company" has the meaning set forth in Paragraph 1 hereof.

     "Deferral Election" has the meaning set forth in Paragraph 6 hereof.

     "Deferred  Stock  Account"  means  a  bookkeeping account maintained by the
Company  for a Participant representing the Participant's interest in the shares
credited  to  such  Deferred  Stock  Account  pursuant  to  Paragraph  7 hereof.

     "Delivery Date" has the meaning set forth in Paragraph 6 hereof.

     "Director" means an individual who is a member of the Board of Directors of
the  Company.

     "Dividend  Equivalent"  for  a given dividend or other distribution means a
number  of  shares  of  the  Common  Stock having a Fair Market Value, as of the
record date for such dividend or distribution, equal to the amount of cash, plus
the  Fair  Market  Value  on  the  date of distribution of any property, that is
distributed  with  respect  to  one  share  of the Common Stock pursuant to such
dividend  or  distribution;  such  Fair  Market  Value  to  be determined by the
Committee  in  good  faith.

     "Effective Date" has the meaning set forth in Paragraph 3 hereof.

     "Exchange Act" has the meaning set forth in Paragraph 12(d) hereof.

     "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

                                        1
<PAGE>
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.

     "Participant" has the meaning set forth in Paragraph 4 hereof.

     "Payment  Time"  means  the  time  when  a  Stock  Retainer is payable to a
Participant  pursuant to Paragraph 5 hereof (without regard to the effect of any
Deferral  Election).

     "Stock Retainer" has the meaning set forth in Paragraph 5 hereof.

     "Third Anniversary" has the meaning set forth in Paragraph 6 hereof.

     3.   Effective  Date  of  the  Plan.  This  Plan  was  adopted by the Board
          ------------------------------
effective February 27, 2004 (the "Effective Date").

     4.   Eligibility.  Each  individual  who is a Director or Consultant on the
          -----------
Effective  Date  and  each  individual  who  becomes  a  Director  or Consultant
thereafter  during  the  term  of  this  Plan,  shall  be  a  participant  (the
"Participant")  in this Plan, in each case during such period as such individual
remains a Director or Consultant and is not an employee of the Company or any of
its  subsidiaries.  Each  credit  of shares of the Common Stock pursuant to this
Plan shall be evidenced by a written agreement duly executed and delivered by or
on  behalf of the Company and a Participant, if such an agreement is required by
the Company to assure compliance with all applicable laws and regulations.

     5.   Grants  of  Shares.  Commencing  on  the Effective Date, the amount of
          ------------------
compensation  for service to directors or consultants shall be payable in shares
of  the  Common Stock (the "Stock Retainer") pursuant to this Plan at the deemed
issuance  price  of  $0.0019  per  Share.

     6.   Deferral Option.  From and after the Effective Date, a Participant may
          ---------------
make an election (a "Deferral Election") on an annual basis to defer delivery of
the Stock Retainer specifying which one of the following ways the Stock Retainer
is to be delivered (a) on the date which is three years after the Effective Date
for  which  it was originally payable (the "Third Anniversary"), (b) on the date
upon  which the Participant ceases to be a Director or Consultant for any reason
(the  "Departure  Date")  or (c) in five equal annual installments commencing on
the  Departure  Date  (the  "Third  Anniversary" and "Departure Date" each being
referred  to  herein as a "Delivery Date").  Such Deferral Election shall remain
in  effect  for each Subsequent Year unless changed, provided that, any Deferral
Election  with  respect  to  a  particular Year may not be changed less than six
months  prior to the beginning of such Year, and provided, further, that no more
than one Deferral Election or change thereof may be made in any Year.

     Any Deferral Election and any change or revocation thereof shall be made by
delivering  written  notice  thereof  to  the Committee no later than six months
prior to the beginning of the Year in which it is to be effected; provided that,
with  respect to the Year beginning on the Effective Date, any Deferral Election
or  revocation  thereof must be delivered no later than the close of business on
the  30th  day  after  the  Effective  Date.

     7.   Deferred  Stock Accounts.  The Company shall maintain a Deferred Stock
          ------------------------
Account  for  each  Participant  who makes a Deferral Election to which shall be
credited,  as of the applicable Payment Time, the number of shares of the Common
Stock  payable  pursuant  to  the  Stock Retainer to which the Deferral Election
relates.  So  long  as  any amounts in such Deferred Stock Account have not been
delivered  to  the  Participant  under  Paragraph  8 hereof, each Deferred Stock
Account  shall be credited as of the payment date for any dividend paid or other
distribution  made  with respect to the Common Stock, with a number of shares of
the  Common  Stock  equal  to

                                        2
<PAGE>
(a)  the  number  of  shares  of  the  Common Stock shown in such Deferred Stock
Account  on  the record date for such dividend or distribution multiplied by (b)
the  Dividend  Equivalent  for  such  dividend  or  distribution.

     8.   Delivery  of  Shares.
          --------------------

     (a)  The  shares  of  the  Common  Stock  in a Participant's Deferred Stock
Account  with  respect  to  any Stock Retainer for which a Deferral Election has
been  made (together with dividends attributable to such shares credited to such
Deferred  Stock  Account) shall be delivered in accordance with this Paragraph 8
as  soon as practicable after the applicable Delivery Date.  Except with respect
to  a  Deferral  Election  pursuant  to  Paragraph  6 hereof, or other agreement
between  the parties, such shares shall be delivered at one time; provided that,
if  the  number  of shares so delivered includes a fractional share, such number
shall  be rounded to the nearest whole number of shares.  If the Participant has
in  effect  a Deferral Election pursuant to Paragraph 6 hereof, then such shares
shall  be  delivered  in five equal annual installments (together with dividends
attributable  to  such shares credited to such Deferred Stock Account), with the
first  such installment being delivered on the first anniversary of the Delivery
Date;  provided  that,  if  in  order  to equalize such installments, fractional
shares  would  have  to  be  delivered,  such  installments shall be adjusted by
rounding  to  the  nearest  whole share.  If any such shares are to be delivered
after  the  Participant  has  died  or become legally incompetent, they shall be
delivered  to the Participant's estate or legal guardian, as the case may be, in
accordance  with  the  foregoing;  provided that, if the Participant dies with a
Deferral  Election pursuant to Paragraph 6 hereof in effect, the Committee shall
deliver  all  remaining  undelivered  shares  to  the  Participant's  estate
immediately.  References  to a Participant in this Plan shall be deemed to refer
to the Participant's estate or legal guardian, where appropriate.

     (b)  The  Company may, but shall not be required to, create a grantor trust
or  utilize  an existing grantor trust (in either case, "Trust") to assist it in
accumulating  the  shares  of the Common Stock needed to fulfill its obligations
under this Paragraph 8.  However, Participants shall have no beneficial or other
interest  in  the Trust and the assets thereof, and their rights under this Plan
shall  be  as  general  creditors of the Company, unaffected by the existence or
nonexistence  of  the  Trust,  except  that  deliveries  of  Stock  Retainers to
Participants  from  the  Trust  shall,  to  the  extent  thereof,  be treated as
satisfying the Company's obligations under this Paragraph 8.

     9.   Share  Certificates;  Voting  and  Other Rights.  The certificates for
          -----------------------------------------------
shares  delivered to a Participant pursuant to Paragraph 8 above shall be issued
in the name of the Participant, and from and after the date of such issuance the
Participant shall be entitled to all rights of a stockholder with respect to the
Common Stock for all such shares issued in his name, including the right to vote
the  shares,  and  the  Participant  shall  receive  all  dividends  and  other
distributions  paid  or  made  with  respect  thereto.

     10.  General  Restrictions.
          ---------------------

          (a)  Notwithstanding  any  other  provision of this Plan or agreements
made pursuant thereto, the Company shall not be required to issue or deliver any
certificate or certificates for shares of the Common Stock under this Plan prior
to fulfillment of all of the following conditions:

               (i)  Listing  or  approval  for  listing  upon official notice of
issuance  of  such  shares  on  the New York Stock Exchange, Inc., or such other
securities exchange as may at the time be a market for the Common Stock;

               (ii) Any registration or other qualification of such shares under
any state or federal law or regulation, or the maintaining in effect of any such
registration  or  other qualification which the Committee shall, upon the advice
of  counsel,  deem  necessary  or  advisable;  and

               (iii) Obtaining  any  other consent, approval, or permit from any
state  or federal governmental agency which the Committee shall, after receiving
the  advice  of  counsel,  determine  to  be  necessary  or  advisable.

          (b)  Nothing  contained  in  this  Plan shall prevent the Company from
adopting other or additional compensation arrangements for the Participants.

                                        3
<PAGE>
     11.  Shares  Available.  Subject  to Paragraph 12 below, the maximum number
          -----------------
of  shares  of  the  Common  Stock  which  may in the aggregate be paid as Stock
Retainers  pursuant  to  this Plan is 1,500,000,000.  Shares of the Common Stock
issuable  under  this  Plan  may be taken from treasury shares of the Company or
purchased  on  the  open  market.

     12.  Adjustments;  Change  of  Control.
          ---------------------------------

          (a)  In  the  event  that there is, at any time after the Board adopts
this  Plan,  any  change  in  corporate  capitalization,  such as a stock split,
combination  of  shares,  exchange  of  shares,  warrants  or rights offering to
purchase  the  Common  Stock  at  a  price  below  its  Fair  Market  Value,
reclassification,  or  recapitalization, or a corporate transaction, such as any
merger,  consolidation,  separation,  including  a  spin-off, stock dividend, or
other  extraordinary  distribution  of  stock  or  property  of the Company, any
reorganization  (whether  or not such reorganization comes within the definition
of  such term in Section 368 of the Code) or any partial or complete liquidation
of  the Company (each of the foregoing a "Transaction"), in each case other than
any  such  Transaction which constitutes a Change of Control (as defined below),
(i)  the  Deferred  Stock Accounts shall be credited with the amount and kind of
shares  or  other  property  which  would  have been received by a holder of the
number  of  shares  of  the Common Stock held in such Deferred Stock Account had
such  shares of the Common Stock been outstanding as of the effectiveness of any
such  Transaction,  (ii) the number and kind of shares or other property subject
to  this  Plan  shall  likewise  be  appropriately  adjusted  to  reflect  the
effectiveness  of  any  such  Transaction,  and  (iii)  the  Committee  shall
appropriately  adjust  any  other  relevant provisions of this Plan and any such
modification  by  the  Committee shall be binding and conclusive on all persons.

          (b)  If  the shares of the Common Stock credited to the Deferred Stock
Accounts  are  converted  pursuant  to  Paragraph  12(a)  into  another  form of
property,  references  in  this  Plan to the Common Stock shall be deemed, where
appropriate,  to  refer  to  such  other  form  of  property,  with  such  other
modifications as may be required for this Plan to operate in accordance with its
purposes.  Without  limiting  the  generality  of  the  foregoing, references to
delivery of certificates for shares of the Common Stock shall be deemed to refer
to delivery of cash and the incidents of ownership of any other property held in
the  Deferred  Stock  Accounts.

          (c)  In lieu of the adjustment contemplated by Paragraph 12(a), in the
event  of  a  Change  of  Control,  the following shall occur on the date of the
Change  of Control (i) the shares of the Common Stock held in each Participant's
Deferred  Stock  Account  shall be deemed to be issued and outstanding as of the
Change  of Control; (ii) the Company shall forthwith deliver to each Participant
who  has  a  Deferred Stock Account all of the shares of the Common Stock or any
other property held in such Participant's Deferred Stock Account; and (iii) this
Plan  shall  be  terminated.

          (d)  For  purposes  of  this Plan, Change of Control shall mean any of
the  following  events:

               (i)  The  acquisition  by any individual, entity or group (within
the  meaning  of  Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934,  as  amended  (the  "Exchange  Act")) (a "Person") of beneficial ownership
(within  the  meaning  of  Rule  13d-3 promulgated under the Exchange Act) of 20
percent or more of either (1) the then outstanding shares of the Common Stock of
the Company (the "Outstanding Company Common Stock"), or (2) the combined voting
power  of  then  outstanding  voting  securities of the Company entitled to vote
generally  in  the  election  of  directors  (the  "Outstanding  Company  Voting
Securities");  provided,  however,  that  the  following  acquisitions shall not
constitute  a  Change  of  Control (A) any acquisition directly from the Company
(excluding  an  acquisition  by virtue of the exercise of a conversion privilege
unless  the  security  being  so converted was itself acquired directly from the
Company),  (B)  any  acquisition  by  the  Company,  (C)  any acquisition by any
employee  benefit plan (or related trust) sponsored or maintained by the Company
or  any  corporation  controlled  by  the  Company or (D) any acquisition by any
corporation pursuant to a reorganization, merger or consolidation, if, following
such  reorganization,  merger  or  consolidation,  the  conditions  described in
clauses  (A),  (B)  and  (C)  of  paragraph  (iii)  of  this Paragraph 12(d) are
satisfied;  or

               (ii) Individuals who, as of the date hereof, constitute the Board
of  the  Company (as of the date hereof, "Incumbent Board") cease for any reason
to  constitute  at  least  a  majority of the Board; provided, however, that any
individual  becoming a director subsequent to the date hereof whose election, or
nomination for election by the Company's stockholders, was approved by a vote of
at  least  a  majority  of  the  directors  then

                                        4
<PAGE>
comprising  the  Incumbent  Board  shall be considered as though such individual
were  a member of the Incumbent Board, but excluding, for this purpose, any such
individual  whose  initial  assumption of office occurs as a result of either an
actual  or threatened election contest (as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) or other actual or threatened
solicitation  of  proxies or consents by or on behalf of a Person other than the
Board;  or

               (iii)  Approval  by  the  stockholders  of  the  Company  of  a
reorganization,  merger,  binding  share  exchange  or  consolidation,  unless,
following  such  reorganization, merger, binding share exchange or consolidation
(A)  more  than  60  percent of, respectively, then outstanding shares of common
stock  of  the  corporation  resulting from such reorganization, merger, binding
share  exchange  or  consolidation  and  the  combined  voting  power  of  then
outstanding  voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners,  respectively,  of  the Outstanding Company Common Stock and Outstanding
Company  Voting  Securities  immediately  prior  to such reorganization, merger,
binding share exchange or consolidation in substantially the same proportions as
their ownership, immediately prior to such reorganization, merger, binding share
exchange  or  consolidation,  of  the  Outstanding  Company  Common  Stock  and
Outstanding  Company  Voting  Securities,  as  the  case  may  be, (B) no Person
(excluding  the  Company,  any  employee  benefit plan (or related trust) of the
Company  or such corporation resulting from such reorganization, merger, binding
share  exchange or consolidation and any Person beneficially owning, immediately
prior  to  such reorganization, merger, binding share exchange or consolidation,
directly  or  indirectly,  20  percent or more of the Outstanding Company Common
Stock or Outstanding Company Voting Securities, as the case may be) beneficially
owns,  directly  or  indirectly,  20  percent  or  more  of,  respectively, then
outstanding  shares  of  common  stock  of  the  corporation resulting from such
reorganization,  merger, binding share exchange or consolidation or the combined
voting  power of then outstanding voting securities of such corporation entitled
to  vote  generally in the election of directors, and (C) at least a majority of
the  members  of  the  board of directors of the corporation resulting from such
reorganization,  merger, binding share exchange or consolidation were members of
the  Incumbent  Board  at  the  time  of  the execution of the initial agreement
providing  for  such  reorganization,  merger,  binding  share  exchange  or
consolidation;  or

               (iv)  Approval  by  the  stockholders  of  the  Company  of (1) a
complete  liquidation  or  dissolution  of the Company, or (2) the sale or other
disposition of all or substantially all of the assets of the Company, other than
to  a  corporation,  with  respect  to  which  following  such  sale  or  other
disposition,  (A) more than 60 percent of, respectively, then outstanding shares
of  common  stock  of  such  corporation  and  the combined voting power of then
outstanding  voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners,  respectively,  of  the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such sale or other disposition in
substantially  the same proportion as their ownership, immediately prior to such
sale  or  other  disposition,  of  the  Outstanding  Company  Common  Stock  and
Outstanding  Company  Voting  Securities,  as  the  case  may  be, (B) no Person
(excluding  the  Company and any employee benefit plan (or related trust) of the
Company  or  such  corporation  and  any Person beneficially owning, immediately
prior  to  such sale or other disposition, directly or indirectly, 20 percent or
more  of  the  Outstanding  Company  Common  Stock or Outstanding Company Voting
Securities,  as  the  case may be) beneficially owns, directly or indirectly, 20
percent  or  more  of,  respectively, then outstanding shares of common stock of
such  corporation  and  the  combined  voting  power  of then outstanding voting
securities  of  such  corporation  entitled to vote generally in the election of
directors,  and (C) at least a majority of the members of the board of directors
of  such  corporation  were  members  of  the Incumbent Board at the time of the
execution  of  the  initial  agreement or action of the Board providing for such
sale  or  other  disposition  of  assets  of  the  Company.

     13.  Administration;  Amendment  and  Termination.
          --------------------------------------------

          (a)  This  Plan shall be administered by a committee consisting of two
members  who  shall  be the current directors of the Company or senior executive
officers or other directors who are not Participants as may be designated by the
Chief  Executive  Officer  (the "Committee"), which shall have full authority to
construe  and  interpret  this  Plan,  to establish, amend and rescind rules and
regulations  relating  to  this  Plan, and to take all such actions and make all
such  determinations  in  connection  with this Plan as it may deem necessary or
desirable.

                                        5
<PAGE>
          (b)  The  Board  may  from  time  to time make such amendments to this
Plan,  including  to  preserve or come within any exemption from liability under
Section  16(b)  of  the  Exchange  Act,  as  it  may deem proper and in the best
interest  of the Company without further approval of the Company's stockholders,
provided  that,  to  the  extent  required  under  Nevada  law  or  to  qualify
transactions  under  this  Plan for exemption under Rule 16b-3 promulgated under
the  Exchange  Act,  no  amendment to this Plan shall be adopted without further
approval  of  the  Company's stockholders and, provided, further, that if and to
the  extent  required  for this Plan to comply with Rule 16b-3 promulgated under
the  Exchange Act, no amendment to this Plan shall be made more than once in any
six  month period that would change the amount, price or timing of the grants of
the  Common  Stock hereunder other than to comport with changes in the Code, the
Employee  Retirement Income Security Act of 1974, as amended, or the regulations
thereunder.  The  Board  may  terminate  this  Plan  at  any time by a vote of a
majority  of  the  members  thereof.

     14.  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.

     15.  Term  of  Plan.  No shares of the Common Stock shall be issued, 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
February  27,  2004,  and  shall  expire  on  February  27,  2014.

     16.  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.

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

     18.  Miscellaneous.
          -------------

          (a)  Nothing  in this Plan shall be deemed to create any obligation on
the  part  of the Board to nominate any Director for reelection by the Company's
stockholders  or to limit the rights of the stockholders to remove any Director.

          (b)  The  Company  shall  have  the  right  to  require,  prior to the
issuance  or  delivery  of any shares of the Common Stock pursuant to this Plan,
that  a  Participant  make  arrangements  satisfactory  to the Committee for the
withholding  of  any  taxes  required  by law to be withheld with respect to the
issuance  or  delivery  of  such  shares,  including, without limitation, by the
withholding  of  shares  that  would  otherwise  be  so  issued or delivered, by
withholding  from any other payment due to the Participant, or by a cash payment
to  the  Company  by  the  Participant.

IN WITNESS WHEREOF, this Plan has been executed effective as of February 27,
2004.

                                   GATEWAY DISTRIBUTORS, LTD.

                                   By  /s/ Richard A. Bailey
                                     ---------------------------------------
                                     Richard A. Bailey, President

                                        6
<PAGE>

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