Document:

Exhibit 4.12
                                  ------------

                                                      BRIDGESTREAM PARTNERS, LLC
                                                             1370 Emerald Street
                                                             San Diego, CA 92109
                                                                  (858) 273-2904
                                                            FAX:  (858) 273-4885
                                                       Bill@bridgestreamprts.com

May 9, 2001

Mr. Stephen F. Owens, Chief Executive Officer
American Fire Retardant Corp.
9337 Bond Avenue
El Cajon, Ca.  92021

F 619 390-6889

     Re: Proposed Consulting Engagement Term Sheet

Background
----------

American Fire Retardant Corp. ( the "Company"), is a Nevada Corporation which
began trading on the NASDAQ, O-T-C Bulletin Board market (AFRC) as of April 19,
2001. The Company is in the process of filing a SB-2 registration (the
"Offering") for up to 6,000,000 shares of its common stock in order to raise up
to $3,000,000.

The company has a need for an immediate infusion of cash in the amount of
$250,000 to satisfy certain obligations before the equity Offering can become
effective.

Longer term, the Company needs a minimum of $800,000 and maximum of $3,000,000
for working capital, marketing, and mergers and acquisitions.

In order that the Company may accomplish the above referenced objectives
BRIDGESTREAM Partners proposes to assist the Company in:

     A)   Securing a back-up banking relationship to replace Bank of America.

     B)   Advising  in the  restructuring  and  renegotiating  of the  Company's
          factoring  relationship  with  Private  Capital,  Inc.  and  upon  the
          infusion  of  additional  equity,  assist and  advise  the  Company in
          selecting alternative receivable financing arrangements.

     C)   Assist and  advise the  Company  in the  analysis  of the  prospective
          acquisition of a $300,000 revenue company,  privately held with pretax
          profit of approximately $140,000.

<PAGE>
Additional Needs:

     A)   Corporate Development Officer at the Executive Vice President level to
          assist the Company with the various  "becoming  public"  needs such as
          continuing fund raising  efforts,  coordination of market makers,  and
          investor relations.

          Additionally,  the  acquisition/merger  activities  are to become  his
          responsibility  along  with  the  roll-out  of the  Company's  aerosol
          product  introduction  and/or  strategic  partnering with  significant
          manufacturer(s)/distributor(s).

     B)   Chief Executive Officer with:

          a.   Successful IPO knowledge and experience;
          b.   Background in the industry; and
          c.   Fund raising capabilities inclusive of the ability to effectively
               present the Company to the financial markets.

     C)   Chief Financial Officer

          BRIDGESTREAM  will both staff and source these  candidates  with terms
          mutually agreeable to the Company and the prospective candidate(s).

Retainer - $22,500 (non-refundable) payable in the equivalent of common stock to
be registered as soon as possible with the filing of the S-8 registration as
follows:

          $7,500 upon  execution  of a formal  engagement  letter with terms and
          conditions substantially consistent with this term sheet.

          $7,500 payable 30 days after execution of engagement letter.

          $7,500 payable 60 days after execution of engagement letter.

          Prepayment of any travel expenses pre-approved by the Company.

          All other expenses  incurred by BRIDGESTREAM to be pre-approved by the
          Company and reimbursed to  BRIDGESTREAM  upon receipt of invoice (with
          receipts).

An Executive Search Fee still to be negotiated and mutually agreed upon based on
overall consideration paid to the hired candidate plus reimbursement of
BRIDGESTREAM's out of pocket expenses will be due Bridgestream as invoiced.

All fees payable to BRIDGESTREAM are to be paid simultaneously with
consideration being made available to the Company.

<PAGE>

Term
----

     Twelve  months from the date  execution  of  engagement  letter plus annual
renewal provisions to be mutually agreed upon.

Other Requirements
------------------

     a)   Industry Standard Indemnification.

     b)   Tombstone Rights.

     c)   The  Company  shall  not  enter  into  any   discussions  or  business
          relationships  with  any  parties  introduced  to it  by  Bridgestream
          Partners, LLC or any of its affiliates.

If the terms outlined herein are acceptable to you, please acknowledge same
herewith and return an executed copy of this letter to me via fax.

Sincerely,

BRIDGESTREAM PARTNERS, LLC

---------------------------------------------
William R. Willard, Managing Principal                 Date

Acknowledged and Agreed to:

AMERICAN FIRE RETARDANT CORP.

By: -----------------------------------------
    Stephen F. Owens, Chief Executive Officer          DateExhibit 4.13
                                  ------------

                          AMERICAN FIRE RETARDANT CORP.
                             (A Nevada Corporation)

                      NON-QUALIFIED STOCK OPTION AGREEMENT
--------------------------------------------------------------------------------

     This  Agreement,  effective  as of April 30,  2001 (the "Grant  Date"),  is
between American Fire Retardant Corp., a Nevada corporation ("the Company"), and
Bridgestream  Partners,  LLC., a consultant and service provider to the Company,
who, for the purposes of this Agreement only shall be referred to as "Optionee".
This  Agreement is made  pursuant to the terms and  conditions of the 2001 Stock
Option Plan, as amended  ("the Plan"),  a copy of which shall be provided to the
Optionee with the delivery of this Agreement.

     1. Grant of Option. The Company grants to Optionee an option to purchase

Forty-Five  Thousand (45,000) shares of the Common Stock of the Company,  $0.001
par value, (the "Shares"), on the terms and conditions set forth in the Plan and
in this Agreement.

     2.  Purchase  Price.  The  Purchase  Price of the  Shares  to be  purchased
pursuant to this option shall be the consulting and related services rendered to
the Company pursuant to the Optionee's Consulting Agreement executed on or about
April 30, 2001, the consideration for which is no less than eighty-five  percent
(85%) of the fair market value of the Shares on the date of grant.

     3.  Vesting.  Optionee's  right to  exercise  the  option  granted  in this
Agreement shall vest and become  exercisable  according to the following vesting
schedule:

          Vesting Date             Options Vested    Percent of Options
          ----------------------------------------------------------------------
          May 30, 2001             15,000  shares          33%
          June 30, 2001            15,000  shares          33%
          July 30, 2001            15,000  shares          34%

     Notwithstanding the preceding sentence, the option shall immediately become
exercisable  in full in the  event  that  (i) the  shareholders  of the  Company
approve  a  dissolution  or  liquidation  of the  Company  or a  sale  of all or
substantially  all of the  Company's  assets to  another  entity;  (ii) a tender
within the  meaning of Section 14 of the  Securities  Exchange  Act of 1934,  as
amended,  is made for five  percent  (5%) or more of the  Company's  outstanding
capital stock by any person other than the Company or an affiliate; or (iii) the
Company effects an underwritten  public offering of its securities pursuant to a
registration statement filed under the Securities Act of 1933. This option shall
be subject to  termination  before its date of expiration as provided in Section
7.2.

     4. The Plan. This option is granted pursuant to the Plan, the provisions of
which are incorporated into this Agreement by reference, and in the event of any
conflict  between  this  Agreement  and the Plan,  the  terms of the Plan  shall
govern.

     5. No Transfer or  Assignment  of Option.  Except as otherwise  provided in
this Agreement, this option and the rights and privileges conferred hereby shall
not be transferred,  assigned,  pledged,  or hypothecated in any way (whether by
operation of law or otherwise) and shall not be subject to sale under execution,
attachment,  or similar process. Upon any attempt to transfer,  assign,  pledge,
hypothecate,  or otherwise  dispose of this option, or of any right or privilege
conferred  hereby,  contrary to the  provisions of this  Agreement,  or upon any
attempted  sale under any  execution,  attachment,  or similar  process upon the
rights  and  privileges  conferred  hereby,  this  option  and  the  rights  and
privileges conferred hereby shall immediately become null and void.

                                       1
<PAGE>
     6. Method of Exercise.

     6.1 Notice.  Optionee may exercise this option by giving  written notice to
the Company  pursuant to Section  10.9 by delivery of an Exercise  Notice in the
form attached hereto as Exhibit A (the "Exercise  Notice"),  which shall specify
the  election to  exercise  this option and the number of Shares for which it is
being exercised; provided, however, that no exercise for fractional Shares shall
be  permitted,  and Optionee  may not exercise  options to acquire more than two
hundred fifty  thousand  (250,000)  Shares during any calendar  year. The notice
shall be signed by Optionee.

     6.2 Forms of Payment  Authorized.  Except with  respect to  consulting  and
related services provided and to be provided to the Company by Optionee pursuant
to the Consulting  Agreement  entered into by the Optionee and the Company,  the
receipt and  sufficiency of which is hereby  acknowledged  by the Company at the
date hereof,  Optionee  shall deliver to the Company,  at the time of giving the
notice one of the following:

          (a)  Cash.  Payment  in Cash,  by check or via wire  transfer  in U.S.
     Dollars in the full amount of the Purchase Price; or

          (b) Delivery of Company Shares  Already  Owned.  Optionee may also pay
     the Purchase  Price by delivering  and  surrendering  to the Company Shares
     which:

               (i)  have been owned by Optionee for at least six (6) months; and

               (ii) have an aggregate fair market value on the date of surrender
                    equal to the Purchase Price.

               (iii)If the  number  of  shares  evidenced  by  the  certificates
                    delivered  exceeds the number  required,  the  Company  will
                    deliver the balance of any  excessive  whole  shares back to
                    the Optionee and shall  reimburse  the  differential  of any
                    fractional  shares  through a  payment  to the  Optionee  by
                    check.

          (c) Fair Market Value.

               (i)  If the  Common  Stock is  listed  on a  national  securities
                    exchange or admitted to unlisted trading  privileges on such
                    exchange  or  listed  for  trading  on the  Nasdaq  National
                    Market,  the  current  fair  market  value shall be the last
                    reported  sale price of the Common Stock on such exchange or
                    market  on the  last  business  day  prior  to the  date  of
                    exercise of this Option,  or if no such sale is made on such
                    day,  the average  closing bid and asked prices for such day
                    on such exchange or market; or

               (ii) If the Common Stock is not so listed or admitted to unlisted
                    trading  privileges,  but is traded on the  Nasdaq  SmallCap
                    Market, the current market value shall be the average of the
                    closing  bid and asked  prices for such day on such  market,
                    and if the Common Stock is not so traded, the current market
                    value shall be the mean of the last  reported  bid and asked
                    prices reported by the National  Quotation  Bureau,  Inc. on
                    the last  business  day prior to the date of the exercise of
                    this Option; or

                                       2
<PAGE>

               (iii)If the  Common  Stock  is  not so  listed,  or  admitted  to
                    unlisted  trading  privileges,  and bid and asked prices are
                    not so  reported,  the current fair market value shall be an
                    amount,  not less than book  value  thereof as at the end of
                    the most recent  fiscal year of the Company  ending prior to
                    the date of the exercise of the Option,  determined  in such
                    reasonable  manner  as may be  prescribed  by the  Board  of
                    Directors of the Corporation.

     6.3 Issuance of Shares.  After  receiving a proper notice of exercise,  the
Company shall issue a certificate  or  certificates  for the Shares to Optionee,
registered in Optionee's  name (or in Optionee's name and the name of Optionee's
spouse as community property or as joint tenants with a right of survivorship).

     7. Term and Expiration.

     7.1 Term.  This option,  if it has not expired earlier under the provisions
of Section 7.2,  shall expire in all events on the seventh (7th)  anniversary of
the effective date of this Agreement.

     7.2 Termination of Option. The option granted under this Agreement,  to the
extent that it has not been exercised,  shall terminate at the following  times:
In the event of  Optionee's  death,  the option shall  terminate  six (6) months
after the date of death. If Optionee's affiliation with the Company ends because
Optionee becomes  disabled,  the option shall terminate six (6) months after the
date on which Optionee's  affiliation ends. If Optionee voluntarily resigns from
their  position,  the option  shall  terminate  one (1) month  after the date of
resignation.  If  Optionee's  affiliation  with the Company is terminated by the
Company for reasons other than cause,  the option shall  terminate one (1) month
after the date of said termination.  If Optionee's  affiliation with the Company
is terminated by the Company for cause, the option shall terminate one (1) month
after the date of said termination.  If the Optionee is receiving the option due
to their  affiliation  with a subsidiary  of the  Company,  which ceases to be a
subsidiary  of the Company for any reason,  the option shall  terminate  one (1)
month after the date on which the  subsidiary  ceases to be a subsidiary  of the
Company.

     8. Legality of Initial Issuance.

     8.1  Compliance  with  Securities  Laws. No Shares shall be issued upon the
exercise of this option  unless and until the  Company has  determined  that all
applicable provisions of state and federal securities laws have been satisfied.

     8.2 Optionee's Representations.  In the event that the Shares have not been
registered under the Securities Act of 1933, as amended, at the time this Option
is exercised, the Optionee shall, if required by the Company,  concurrently with
the exercise of all or any portion of this Option, deliver to the Company his or
her Investment Representation Statement in the form satisfactory to the Company.

                                       3
<PAGE>
     9. Capital Adjustments.

     9.1 The Company's Freedom to Act. The existence of this Agreement shall not
affect in any way the right or power of the Company or its  shareholders to make
or authorize  any or all  adjustments,  recapitalizations,  reorganizations,  or
other changes in the Company's capital structure or its business,  or any merger
or consolidation of the Company or any issue of bonds, debentures,  or preferred
or  preference  stocks  affecting  the Shares or the rights  thereof,  or of any
rights,  options,  or warrants to purchase any capital stock of the Company,  or
the  dissolution or  liquidation of the Company,  any sale or transfer of all or
any part of its assets or business, or any other corporate act or proceedings of
the Company, whether of a similar character or otherwise.

     9.2  Adjustment of Optioned  Shares.  The Shares with respect to which this
option is granted are Shares of the Company as presently constituted, but if and
whenever, prior to the delivery by the Company of all of the Shares with respect
to which these options are granted,  the Company  shall effect a subdivision  or
consolidation  of the Shares or other  capital  readjustment,  the  payment of a
stock  dividend,  or other  increase  or  reduction  in the number of the Shares
outstanding  without receiving  compensation  therefore in money,  services,  or
property,  the number of the Shares then remaining  subject to option  hereunder
shall (i) in the event of an increase in the number of  outstanding  Shares,  be
proportionately increased, and the cash consideration payable per Share shall be
proportionately  reduced;  and (ii) in the event of a reduction in the number of
outstanding  Shares,  be  proportionately  reduced,  and the cash  consideration
payable per Share shall be proportionately increased.

     10. Miscellaneous Provisions.

     10.1 Withholding Taxes. In the event that the Company determines that it is
required to withhold federal, state, or local tax as a result of the exercise of
this option, Optionee, as a condition to the exercise of this option, shall make
arrangements satisfactory to the Company to enable it to satisfy all withholding
requirements.

     10.2 No  Rights  as a  Shareholder.  Optionee  shall  have no  rights  as a
shareholder  with respect to any Shares  subject to this option until the Shares
have been issued in the name of Optionee.

     10.3 No Employment Rights.  Nothing in this Agreement shall be construed as
giving Optionee the right to be retained as a consultant or service  provider of
the Company or be construed as any offer of employment or any right thereto.

     10.4 Tax Election.  Under  Section 83 of the Internal  Revenue Code of 1986
(the "Code"),  as a general rule the excess, if any, of the fair market value of
the  Shares  on the date the risk of  forfeiture  lapses  ("Vesting"),  over the
amount  paid for the  Shares,  is  taxed as  ordinary  income  to the  optionee.
Optionee  acknowledges  that to the extent the Shares have not Vested,  Optionee
may elect to be taxed at the time the Shares are purchased  rather than when the
Shares  Vest by filing  with the  Internal  Revenue  Service an  election  under
Section 83(b) of the Code within thirty (30) days of the date of purchase of the

                                       4
<PAGE>
Shares.  Assuming  the  option  price is equal to the fair  market  value of the
Shares at the time of purchase,  if the Shares have not Vested, the election may
be  desirable  in order to avoid  potential  future  adverse  tax  consequences.
Optionee  acknowledges  that Optionee's  failure to make this filing in a timely
manner may result in  Optionee's  recognition  of ordinary  income as the Shares
become Vested,  in an amount equal to the excess of the fair market value of the
Shares on the date of Vesting over the option price.  OPTIONEE ACKNOWLEDGES THAT
IT IS THEIR SOLE AND  EXCLUSIVE  RESPONSIBILITY  TO FILE IN A TIMELY  MANNER ANY
ELECTION UNDER SECTION 83(b), AND THAT THE COMPANY SHALL BEAR NO  RESPONSIBILITY
WHATSOEVER FOR THAT FILING.  Optionee  shall  promptly  deliver to the Company a
copy of any tax election relating to the treatment of the Shares under the Code.

     10.5 Further Assurances. Each party to this Agreement agrees to perform any
and all  further  acts  and to  execute  and  deliver  any  documents  that  may
reasonably be necessary to carry out the provisions of this Agreement.

     10.6 Attorneys'  Fees. In any legal action or other  proceeding  brought by
either party to enforce or interpret the terms of this Agreement, the prevailing
party shall be entitled to recover reasonable attorneys' fees and costs.

     10.7  Confidentiality.  Optionee agrees and acknowledges that the terms and
conditions of this Agreement,  including without limitation the number of Shares
for which  options have been granted,  are  confidential.  Optionee  agrees that
Optionee will not disclose these terms and conditions to any third party, except
to  Optionee's  financial or legal  advisors,  tax  preparer or family  members,
unless such disclosure is required by law.

     10.8 Governing Law. The Agreement,  and all determinations made and actions
taken pursuant hereto,  to the extent not otherwise  governed by the Code or the
securities laws of the United States,  shall be governed by the law of the State
of California.

     10.9 Notices.  Any notice or other  communication under this Agreement must
be in writing,  and shall be effective  upon  delivery by hand;  upon  facsimile
transmission  to either party at the number  provided below for that party,  but
only  upon  receipt  by the  transmitting  party of a  written  confirmation  of
receipt;  or three (3) business  days after  deposit in the United  States mail,
postage  prepaid,  certified or  registered,  and addressed to the Company or to
Optionee at the  corresponding  address below.  Each party shall be obligated to
notify the other in writing of any  change in that  party's  address.  Notice of
change of address  shall be  effective  only when done in  accordance  with this
Section.

     10.10 Entire  Agreement.  This Agreement and the Plan,  together with those
documents that are  referenced in the  Agreement,  are intended to be the final,
complete, and exclusive statement of the terms of the agreement between Optionee
and the Company  regarding the subject matter of this Agreement.  This Agreement
and  the  Plan  supersede  all  other  prior  agreements,   communications,  and
statements,  whether  written or oral,  express or implied,  pertaining  to that
subject matter.  This Agreement and the Plan may not be contradicted by evidence
of any prior or contemporaneous  statements or agreements,  oral or written, and
may not be explained or supplemented by evidence of consistent additional terms.

     10.11 Amendments. This Agreement may not be amended or modified except in a
writing signed by both parties.

     10.12  Successors  and  Assigns.  Optionee  agrees that he will not assign,
sell,  transfer,  delegate,  or otherwise  dispose of,  whether  voluntarily  or
involuntarily,  or by  operation of law,  any rights or  obligations  under this
Agreement,  except as expressly permitted by this Agreement.  Any such purported
assignment,  sale, transfer,  delegation, or other disposition shall be null and
void.  Subject to the  limitations  set forth in this  Agreement,  the Agreement
shall be binding on and inure to the  benefit of the  successors  and assigns of
the Company and any successors and permitted assigns of Optionee,  including any
of his executors,  administrators, or other legal representatives.  It shall not
benefit any person or entity other than those  specifically  enumerated  in this
Agreement.

     10.13 Severability.  If any provision of this Agreement, or its application
to any person,  place, or  circumstance,  is held by an arbitrator or a court of
competent  jurisdiction  to be invalid,  unenforceable,  or void, that provision
shall be enforced to the greatest extent  permitted by law, and the remainder of
this  Agreement and of that  provision  shall remain in full force and effect as
applied to other persons, places, and circumstances.

                                       5
<PAGE>
     10.14  Interpretation.  This  Agreement  shall  be  construed  as a  whole,
according to its fair meaning,  and not in favor of or against any party. By way
of example and not in limitation, this Agreement shall not be construed in favor
of the party  receiving  a benefit nor  against  the party  responsible  for any
particular language in this Agreement.  Captions are used for reference purposes
only, and should be ignored in the  interpretation of the Agreement.  Unless the
context requires otherwise,  all references in this Agreement to Sections are to
the Sections of this Agreement.

     10.15  Counterparts.  This  Agreement  may  be  executed  in  one  or  more
counterparts all of which together shall constitute one and the same instrument.

     The parties  have duly  executed  this  Agreement  effective as of the date
first written above.

                         AMERICAN FIRE RETARDANT CORP.
                             (A Nevada Corporation)

                        ---------------------------------
                              By: Stephen F. Owens
                                 Its: President

                                    OPTIONEE
                           Bridgestream Partners, LLC.
                               1370 Emerald Street
                           San Diego, California 92109

                                       6
<PAGE>
                                    EXHIBIT A

              AMERICAN FIRE RETARDANT CORP. 2001 STOCK OPTION PLAN

                         NOTICE OF STOCK OPTION EXERCISE

OPTIONEE INFORMATION:

Name: ___________________________   Social Security No. ________- ____- _______

Address: _______________________________________________________________________

OPTION INFORMATION:

Date of Grant: _______________________    Type of Option:     Incentive (ISO) or
                                                              Nonqualified
Exercise Price per share: $____________________

Total number of shares of the Common stock of
American Fire Retardant Corp. (the "Company") covered by option: ________ shares

EXERCISE INFORMATION:

The undersigned, Optionee, hereby irrevocably elects to exercise the purchase
right represented by such Option for, and to purchase hereunder
_______________________ shares of Common Stock of the Company, and:

__  herewith  tenders  payment  of  $__________________  in full  payment of the
exercise price for such shares, or

__ herewith tenders and delivers  __________________  shares of the Common Stock
of the  Corporation,  pursuant to Section  6.2(b),  which have been owned by the
Holder for at least six (6) months and have an  aggregate  fair market  value on
the   date  of   surrender   equal   to  the   aggregate   Exercise   Price   of
$__________________; or

and requests that the certificate for such shares purchased hereunder be issued
[you must check one]:

__   in my name only

__   In the names of my spouse and myself as community property

__   In the names of my spouse  and  myself as joint  tenants  with the right of
     survivorship

-----------------------------                -----------------------------------
Optionee's Name                              My spouse's name (if applicable)

----------------------------------------
Address

----------------------------------------
City, State and Zip

Dated: _____________________________         ___________________________________
                                             Signature of Optionee

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