Document:

EXHIBIT 4.2

                          AMERICAN FIRE RETARDANT CORP.
       NON-EMPLOYEE DIRECTORS AND CONSULTANTS RETAINER STOCK PLAN FOR THE
                                YEAR 2003 NO. 12

     1.     Introduction.  This  Plan  shall  be  known  as  the  "American Fire
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Retardant  Corp.  Non-Employee Directors and Consultants Retainer Stock Plan for
the  Year  2003  No.  12,"  and  is  hereinafter referred to as the "Plan."  The
purposes  of  this  Plan  are  to enable American Fire Retardant Corp., 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
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below:

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

     "Change  of  Control"  has the meaning set forth in Paragraph 13(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  14  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 7 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  8 hereof.

     "Delivery  Date"  has  the  meaning  set  forth  in  Paragraph  7  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 13(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

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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.

     "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 7 hereof.

     3.     Effective  Date  of  the  Plan.  This  Plan was adopted by the Board
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effective  October  15,  2003  (the  "Effective  Date").

     4.     Eligibility.  Each individual who is a Director or Consultant on the
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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 the Fair Market Value of the Common Stock on the date of the
issuance  of  such  shares.

     6.     Purchase Price.  The purchase price (the "Exercise Price") of shares
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of  the Common Stock subject to each Stock Option (the "Option Shares") shall be
determined  by  the  board of directors acting in good faith, which in any event
shall not be less than 85 percent of the Fair Market Value of the Option Shares,
and in the case of any Participant who owns securities of the Company possessing
more  than  10  percent  of  the  total  combined voting power of all classes of
securities of the Company or its parent or subsidiaries possessing voting power,
the Exercise Price shall be at least 100 percent of the Fair Market Value of the
Option  Shares  at  the  time a Participant is granted the right to purchase the
Option  Shares,  or  at  the  time  the  purchase  is  consummated.

     7.     Deferral  Option.  From  and after the Effective Date, a Participant
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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.

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     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.

     8.     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 9 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 (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.

     9.     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 9
as  soon as practicable after the applicable Delivery Date.  Except with respect
to  a  Deferral  Election  pursuant to Paragraph 7(c) 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 7(c) 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  7(c) 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  9.  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  9.

     10.    Share  Certificates; Voting and Other Rights.  The  certificates for
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shares  delivered to a Participant pursuant to Paragraph 9 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.

     11.    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;

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                 (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.

     12.    Shares  Available.  Subject  to  Paragraph  13  below,  the  maximum
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number of shares of the Common Stock which may in the aggregate be paid as Stock
Retainers  pursuant  to  this  Plan  is 995,000,000.  Shares of the Common Stock
issuable  under  this  Plan  may be taken from treasury shares of the Company or
purchased  on  the  open  market.

     13.    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 13(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 13(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

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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 13(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 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
(1)  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, (2) 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 (3) 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 (3) 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

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execution  of  the  initial  agreement or action of the Board providing for such
sale  or  other  disposition  of  assets  of  the  Company.

     14.   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.

          (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.

     15.   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.

     16.   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.

     17.   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 agreement is entered into.  Such securities shall not be
counted  in  determining  whether  such  approval  is  obtained.

     18.   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.

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

     20.   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

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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 October 15,
2003.

                                            AMERICAN FIRE RETARDANT CORP.

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

                                        7
<PAGE>WARRANT No. W-SVB-4

                                  VISEON, INC.
                          (Formerly RSI Systems, Inc.)

                          Common Stock Purchase Warrant

                            Dated as of June 30, 2003

THIS WARRANT AND ANY SECURITIES ACQUIRED UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
LAW OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION TO THE
REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS. THIS WARRANT AND SUCH
SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN
COMPLIANCE WITH THE CONDITIONS SPECIFIED IN THIS WARRANT AND IN THE REGISTRATION
RIGHTS AGREEMENT, DATED THE DATE HEREOF, BY AND BETWEEN VISEON INC., AND THE
HOLDERS SPECIFIED THEREIN.

<PAGE>

                                            TABLE OF CONTENTS

                                                                           Page

1.       Exercise of Warrant...............................................   1
         1.1.     Manner of Exercise.......................................   1
         1.2.     When Exercise Effective..................................   2
         1.3.     Delivery of Stock Certificates, etc.....................    2
         1.4.     Company to Reaffirm Obligations.........................    2
         1.5.     Payment by Application of Shares Otherwise Issuable.....    2
         1.6.     Tax Basis...............................................    2

2.       Common Stock Issuable Upon Exercise..............................    3

3.       Consolidation, Merger, etc.......................................    3
         3.1.     Adjustments for Consolidation, Merger, Sale of Assets,
                  Reorganization, etc.....................................    3
         3.2.     Assumption of Obligations...............................    3

4.       Financial and Business Information...............................    3
         4.1.     Filings.................................................    3
         4.2.     Notices of Corporate Action.............................    4

5.       Restrictions on Transfer.........................................    5
         5.1.     Restrictive Legends.....................................    5
         5.2.     Transfers to Comply With the Securities Act.............    5
         5.3.     Termination of Restrictions.............................    6

6.       Reservation of Stock, etc........................................    6

7.       Registration and Transfer of Warrants, etc.......................    6
         7.1.     Warrant Register; Ownership of Warrants.................    6
         7.2.     Transfer of Warrants....................................    7
         7.3.     Replacement of Warrants.................................    7
         7.4.     Adjustments To Warrant Quantity..........................   7
         7.5.     Fractional Shares........................................   7

8.       Definitions.......................................................   7

9.       Remedies; Specific Performance....................................  10

10.      No Rights or Liabilities as Shareholder...........................  10

11.      Notices...........................................................  10

12.      Amendments........................................................  11

13.      Descriptive Headings, etc.........................................  11

14.      Law Governing Agreement...........................................  11

         Signature.........................................................  11

<PAGE>

Page 2
Page 1
                                  VISEON, INC.
                          (Formerly RSI Systems, Inc.)

                          Common Stock Purchase Warrant

                            Void After June 30, 2008

No. W-SVB-4.......                                            Las Vegas, Nevada
                                                              June 30, 2003

         VISEON, INC. (formerly RSI Systems, Inc.) (the "Company"), a Nevada
corporation, for value received, hereby certifies that HENRY S. MELLON an
individual, or registered assigns (the "Holder"), is entitled to purchase from
the Company Six Hundred Forty Four Thousand Five Hundred Ten (644,510) shares of
Common Stock of the Company (the "Warrant Quantity") duly authorized, validly
issued, fully paid and nonassessable shares of common stock, par value $0.01 per
share, of the Company (the "Common Stock") at the purchase price per share of
Thirty Cents ($0.30), at any time or from time to time prior to 5:00 p.m.
Central Standard time, on June 30, 2008 (the "Expiration Date"), all subject to
the terms, conditions and adjustments set forth below in this Warrant.

         This Warrant is the Warrant (the "Warrant", such term to include any
such warrants issued in substitution therefor) originally issued in connection
with the Third Amendment to that certain Loan and Security Agreement by and
between the Company and Silicon Valley Bank, dated December 5 2001. The Warrant
so issued evidences the right to purchase a number of shares of Common Stock
equal to the Warrant Quantity, subject to adjustment, if any, as provided
herein. Concurrently herewith the Company and Holder are also entering into that
certain Demand Registration Rights Agreement (hereinafter the "Registration
Rights Agreement") concerning the Warrant Shares. Certain capitalized terms used
in this Warrant are defined in Section 8, any capitalized term not defined in
Section 8 shall have the meaning ascribed in the Registration Rights Agreement;
references to an "Exhibit" are, unless otherwise specified, to one of the
Exhibits attached to this Warrant and references to a "Section" are, unless
otherwise specified, to one of the Sections of this Warrant.

1. Exercise of Warrant.

         1.1 Manner of Exercise. This Warrant may be exercised by the Holder, in
whole or in part, during normal business hours on any Business Day, by surrender
of this Warrant to the Company at its principal office, accompanied by the Form
of Subscription in substantially the form attached as Exhibit A to this Warrant
(or a reasonable facsimile thereof) duly executed by the Holder and accompanied
by payment, in cash, by wire transfer, certified or official bank check payable
to the order of the Company, or in the manner provided in Section 1.5 (or by any
combination of such methods), in the amount obtained by multiplying (a) the
number of shares of Common Stock designated in such Form of Subscription by (b)
Thirty Cents ($0.30), and such Holder shall thereupon be entitled to receive
such number of duly authorized, validly issued, fully paid and nonassessable
shares of Common Stock (or Other Securities) on the Effective Date of Exercise.

         1.2 When Exercise Effective. Each exercise of this Warrant shall be
deemed to have been effected immediately prior to the close of business on the
Effective Date of Exercise. At such time the Person or Persons in whose name or
names any certificate or certificates for shares of Common Stock (or Other
Securities) shall be issuable upon such exercise, as provided in Section 1.3,
shall be deemed to have become the Holder or holders of record thereof.

         1.3 Delivery of Stock Certificates, etc. As soon as practicable after
each exercise of this Warrant, in whole or in part, and in any event within ten
Business Days following the Effective Date of Exercise, the Company at its
expense (including the payment by it of any applicable transfer taxes) will
cause to be issued in the name of and delivered to the Holder hereof or, subject
to Section 7, as such Holder (upon payment by such Holder of any applicable
transfer taxes) may direct,

                  (a) a certificate or certificates for the number of duly
         authorized, validly issued, fully paid and nonassessable shares,
         including, if the Company so elects, fractional shares, of Common Stock
         (or Other Securities) to which such Holder shall be entitled upon such
         exercise plus, at the discretion of the Company, in lieu of any
         fractional share to which such Holder would otherwise be entitled, cash
         in an amount equal to the same fraction of the Current Market Price per
         share on the Business Day next preceding the date of such exercise, and

                  (b) in case such exercise is in part only, a new Warrant or
         Warrants of like tenor, calling in the aggregate on the face or faces
         thereof for the number of shares of Common Stock equal (without giving
         effect to any adjustment thereof) to the number of such shares called
         for on the face of this Warrant minus the number of such shares
         designated by the Holder upon such exercise as provided in Section 1.1.

         1.4 Company to Reaffirm Obligations. The Company will, at the time of
each exercise of this Warrant, upon the request of the Holder, acknowledge in
writing its continuing obligation to afford to such Holder all rights to which
such Holder shall continue to be entitled after such exercise in accordance with
the terms of this Warrant, provided that if the Holder shall fail to make any
such request, such failure shall not affect the continuing obligation of the
Company to afford such rights to such Holder.

         1.5 Payment by Application of Shares Otherwise Issuable. Upon any
exercise of this Warrant, the Holder may, at its option, instruct the Company,
by written notice accompanying the surrender of this Warrant at the time of such
exercise, to apply to the payment required by Section 1.1 such number of the
shares of Common Stock otherwise issuable to such Holder upon such exercise as
shall be specified in such notice, in which case an amount equal to the excess
of the aggregate Current Market Price of such specified number of shares on the
date of exercise over the portion of the payment required by Section 1.1
attributable to such shares shall be deemed to have been paid to the Company and
the number of shares issuable upon such exercise shall be reduced by such
specified number.

         1.6 Tax Basis. The Company and the Holder shall mutually agree as to
the tax basis of this Warrant for purposes of the Internal Revenue Code of 1986,
as amended (the "Code"), and the treatment of this Warrant under the Code by
each of the Company and the Holder shall be consistent with such agreement.

2. Common Stock Issuable Upon Exercise. This Warrant initially evidences the
right to purchase a number of shares of Common Stock equal to the Warrant
Quantity. The "Warrant Price" shall be fixed at Thirty Cents ($0.30) per share
of Common Stock received upon exercise of this Warrant.

3.       Consolidation, Merger, etc.

         3.1 Adjustments for Consolidation, Merger, Sale of Assets,
Reorganization, etc. In case the Company after the date hereof (a) shall
consolidate with or merge into any other Person and shall not be the continuing
or surviving corporation of such consolidation or merger, or (b) shall permit
any other Person to consolidate with or merge into the Company and the Company
shall be the continuing or surviving Person but, in connection with such
consolidation or merger, the Common Stock or Other Securities shall be changed
into or exchanged for stock or other securities of any other Person or cash or
any other property, or (c) shall transfer all or substantially all of its
properties or assets to any other Person, or (d) shall effect a capital
reorganization or reclassification of the Common Stock or Other Securities
(other than a capital reorganization or reclassification resulting in the issue
of Additional Shares of Common Stock), then, and in the case of each such
transaction, proper provision shall be made so that, upon the basis and the
terms and in the manner provided in this Warrant, the Holder, upon the exercise
hereof at any time after the consummation of such transaction, shall be entitled
to receive (at the aggregate Warrant Price in effect at the time of such
consummation for all Common Stock or Other Securities issuable upon such
exercise immediately prior to such consummation), in lieu of the Common Stock or
Other Securities issuable upon such exercise prior to such consummation, the
highest amount of securities, cash or other property to which such Holder would
actually have been entitled as a shareholder upon such consummation if such
Holder had exercised the rights represented by this Warrant immediately prior
thereto, subject to adjustments (subsequent to such consummation) as nearly
equivalent as possible to the adjustments provided for herein.

         3.2 Assumption of Obligations. Notwithstanding anything contained in
the Warrant or in the Registration Rights Agreement to the contrary, the Company
will not effect any of the transactions described in clauses (a) through (d) of
Section 3.1 unless, prior to the consummation thereof, each Person (other than
the Company) which may be required to deliver any stock, securities, cash or
property upon the exercise of this Warrant as provided herein shall assume the
obligations of the Company under this Warrant and the obligation to deliver to
such Holder such shares of stock, securities, cash or property as, in accordance
with the foregoing provisions of this Section 3, such Holder may be entitled to
receive.

4.       Financial and Business Information.

         4.1 Filings. During any period when the Company is a Public Company,
the Company will file on or before the required date (including all applicable
extensions) all required regular or periodic reports (pursuant to the Exchange
Act) with the Commission and will deliver to the Holder promptly upon their
becoming available one copy of each report, notice or proxy statement sent by
the Company to its stockholders generally, and of each regular or periodic
report (pursuant to the Exchange Act) and any registration statement, prospectus
or written communication (other than transmittal letters) (pursuant to the
Securities Act), filed by the Company with (i) the Commission or (ii) any
securities exchange on which shares of Common Stock are listed.

         4.2      Notices of Corporate Action.  In the event of

                  (a) any taking by the Company of a record of the holders of
         any class of securities for the purpose of determining the holders
         thereof who are entitled to receive any dividend (other than a regular
         periodic dividend payable in cash out of earned surplus in an amount
         not exceeding the amount of the immediately preceding cash dividend for
         such period) or other distribution, or any right to subscribe for,
         purchase or otherwise acquire any shares of stock of any class or any
         other securities or property, or to receive any other right, or

                  (b) any capital reorganization of the Company, any
         reclassification or recapitalization of the capital stock of the
         Company or any consolidation or merger involving the Company and any
         other Person, any transaction or series of transactions in which more
         than 50% of the Voting Securities of the Company are transferred to
         another Person or any transfer, sale or other disposition of all or
         substantially all the assets of the Company to any other Person, or

                  (c) any voluntary or involuntary dissolution, liquidation or
         winding-up of the Company,

the Company will mail to the Holder a notice specifying (i) the date or expected
date on which any such record is to be taken for the purpose of such dividend,
distribution or right, and the amount and character of such dividend,
distribution or right, and (ii) the date or expected date on which any such
reorganization, reclassification, recapitalization, consolidation, merger,
transfer, dissolution, liquidation or winding-up is to take place and the time,
if any such time is to be fixed, as of which the holders of record of Common
Stock (or Other Securities) shall be entitled to exchange their shares of Common
Stock (or Other Securities) for the securities or other property deliverable
upon such reorganization, reclassification, recapitalization, consolidation,
merger, transfer, dissolution, sale, disposition, liquidation or winding-up.
Such notice shall be mailed at least ten (10) days prior to the date therein
specified.

5. Restrictions on Transfer.

         5.1 Restrictive Legends. Except as otherwise permitted by this Section
5, each Warrant (including each Warrant issued upon the transfer of any Warrant)
shall be stamped or otherwise imprinted with a legend in substantially the
following form:

         "THIS WARRANT AND ANY SECURITIES ACQUIRED UPON EXERCISE OF THIS WARRANT
         HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
         OR THE SECURITIES LAW OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR
         OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
         STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
         PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF
         SUCH ACT AND SUCH LAWS. THIS WARRANT AND SUCH SECURITIES MAY NOT BE
         SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH
         THE CONDITIONS SPECIFIED IN THIS WARRANT."

Except as otherwise permitted by this Section 5, each certificate for Common
Stock (or Other Securities) issued upon the exercise of any Warrant, and each
certificate issued upon the transfer of any such Common Stock (or Other
Securities), shall be stamped or otherwise imprinted with a legend in
substantially the following form:

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
         SECURITIES LAW OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED OR
         OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
         STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
         PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF
         SUCH ACT AND SUCH LAWS."

         5.2 Transfer to Comply With the Securities Act. Restricted Securities
may not be sold, assigned, pledged, hypothecated, encumbered or in any manner
transferred or disposed of, in whole or in part, except in compliance with the
provisions of the Securities Act and state securities or Blue Sky laws and the
terms and conditions hereof.

         5.3 Termination of Restrictions. The restrictions imposed by this
Section 5 on the transferability of Restricted Securities shall cease and
terminate as to any particular Restricted Securities (a) when a registration
statement with respect to the sale of such securities shall have been declared
effective under the Securities Act and such securities shall have been disposed
of in accordance with such registration statement, (b) when such securities are
sold pursuant to Rule 144 (or any similar provision then in force) under the
Securities Act, or (c) when, in the opinion of both counsel for the Holder and
counsel for the Company, such restrictions are no longer required or necessary
in order to protect the Company against a violation of the Securities Act upon
any sale or other disposition of such securities without registration
thereunder. Whenever such restrictions shall cease and terminate as to any
Restricted Securities, the Holder shall be entitled to receive from the Company,
without expense, new securities of like tenor not bearing the applicable legends
required by Section 5.1.

6. Reservation of Stock, etc. The Company shall at all times reserve and keep
available, solely for issuance and delivery upon exercise of this Warrant, the
number of shares of Common Stock (or Other Securities) from time to time
issuable upon exercise of this entire Warrant at the time outstanding. All
shares of Common Stock (or Other Securities) issuable upon exercise of any
Warrants shall be duly authorized and, when issued upon such exercise, shall be
validly issued and, in the case of shares, fully paid and nonassessable with no
liability on the part of the holders thereof, and, in the case of all
securities, shall be free from all taxes, liens, security interests,
encumbrances, preemptive rights and charges. The transfer agent for the Common
Stock, which may be the Company ("Transfer Agent"), and every subsequent
Transfer Agent for any shares of the Company's capital stock issuable upon the
exercise of any of the purchase rights represented by this Warrant, are hereby
irrevocably authorized and directed at all times until the Expiration Date to
reserve such number of authorized and unissued shares as shall be requisite for
such purpose. The Company shall keep copies of this Warrant on file with the
Transfer Agent for the Common Stock and with every subsequent Transfer Agent for
any shares of the Company's capital stock issuable upon the exercise of the
rights of purchase represented by this Warrant. The Company shall supply such
Transfer Agent with duly executed stock certificates for such purpose. All
Warrant certificates surrendered upon the exercise of the rights thereby
evidenced shall be canceled, and such canceled Warrants shall constitute
sufficient evidence of the number of shares of stock that have been issued upon
the exercise of such Warrants. Subsequent to the Expiration Date, no shares of
stock need be reserved in respect of any unexercised Warrant.

7. Registration and Transfer of Warrants, etc.

         7.1 Warrant Register; Ownership of Warrants. Each Warrant issued by the
Company shall be numbered and shall be registered in a warrant register (the
"Warrant Register") as it is issued and transferred, which Warrant Register
shall be maintained by the Company at its principal office or, at the Company's
election and expense, by a Warrant Agent or the Company's transfer agent. The
Company shall be entitled to treat the registered Holder of any Warrant on the
Warrant Register as the owner in fact thereof for all purposes and shall not be
bound to recognize any equitable or other claim to or interest in such Warrant
on the part of any other Person, and shall not be affected by any notice to the
contrary, except that, if and when any Warrant is properly assigned in blank,
the Company may (but shall not be obligated to) treat the bearer thereof as the
owner of such Warrant for all purposes. Subject to Section 9, a Warrant, if
properly assigned, may be exercised by a new holder without a new Warrant first
having been issued.

         7.2 Transfer of Warrants. Subject to compliance with Section 5, this
Warrant and all rights hereunder are transferable in whole or in part, without
charge to the Holder hereof, upon surrender of this Warrant with a properly
executed Form of Assignment attached hereto as Exhibit B at the principal office
of the Company. Upon any partial transfer, the Company shall at its expense
issue and deliver to the Holder a new Warrant of like tenor, in the name of the
Holder, which shall be exercisable for such number of shares of Common Stock
with respect to which rights under this Warrant were not so transferred.

         7.3 Replacement of Warrants. On receipt by the Company of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, in the case of any such loss, theft or
destruction of this Warrant, on delivery of an indemnity agreement reasonably
satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender of such Warrant to the Company at its principal office
and cancellation thereof, the Company at its expense shall execute and deliver,
in lieu thereof, a new Warrant of like tenor.

         7.4 Adjustments To Warrant Quantity. Notwithstanding any adjustment in
the Warrant Quantity or in the number or kind of shares of Common Stock
purchasable upon exercise of this Warrant, any Warrant theretofore or thereafter
issued may continue to express the same number and kind of shares of Common
Stock as are stated in this Warrant, as initially issued.

         7.5 Fractional Shares. Notwithstanding any adjustment pursuant to any
provision of this Warrant, the Company may, but shall not be required to, issue
fractions of shares upon exercise of this Warrant or to distribute certificates
which evidence fractional shares. In lieu of fractional shares, the Company
shall make payment to the Holder, at the time of exercise of this Warrant as
herein provided, in an amount in cash equal to such fraction multiplied by the
Current Market Price of a share of Common Stock on the date of Warrant exercise.

8. Definitions. As used herein, unless the context otherwise requires, the
following terms have the following respective meanings:

                  Additional Shares of Common Stock: All shares (including
         treasury shares) of Common Stock issued or sold by the Company after
         the date hereof, whether or not subsequently reacquired or retired by
         the Company, other than

                  (a) shares issued upon the exercise of the Warrant,

                  (b) such additional number of shares as may become issuable
                  upon the exercise of the Warrant by reason of adjustments
                  required pursuant to provisions applicable to the Warrant as
                  in effect on the date hereof,

                  (c) shares, warrants, options and other securities issued at
                  any time to the Holder or any Affiliate thereof.

                  Affiliate: Any person that directly or indirectly, through one
         or more intermediaries, controls, is controlled by, or is under common
         control with, the applicable person. For purposes of this definition
         "control" has the meaning specified in Rule 12b-2 under the Exchange
         Act.

                  Business Day: Any day other than a Saturday or a Sunday or a
         day on which commercial banking institutions in the City of Nevada are
         authorized by law to be closed. Any reference to "days" (unless
         Business Days are specified) shall mean calendar days.

                  Code:  As defined in Section 1.6.

                  Commission:  The  Securities  and Exchange  Commission  or any
         other  federal  agency at the time administering the Securities Act.

                  Common Stock: As defined in the introduction to this Warrant,
         such term to include any stock into which such Common Stock shall have
         been changed or any stock resulting from any reclassification of such
         Common Stock, and all other stock of any class or classes (however
         designated) of the Company the holders of which have the right, without
         limitation as to amount, either to all or to a share of the balance of
         current dividends and liquidating dividends after the payment of
         dividends and distributions on any shares entitled to preference.

                  Company: As defined in the introduction to this Warrant, such
         term to include any corporation, which shall succeed to or assume the
         obligations of the Company hereunder in compliance with Section 3.

                  Convertible Securities: Any evidences of indebtedness, shares
         of stock (other than Common Stock) or other securities directly or
         indirectly convertible into or exchangeable for Additional Shares of
         Common Stock.

                  Effective Date of Exercise: The first Business day which
         occurs following the expiration of ninety (90) days from the date the
         company receives the Form of Subscription and payment as set forth in
         Section 1.1.

                  Exchange Act: The Securities Exchange Act of 1934, or any
         similar federal statute, and the rules and regulations of the
         Commission thereunder, all as the same shall be in effect at the time.

                  Expiration Date:  As defined in the introduction to this
         Warrant.

                  Holder:  As defined in the introduction to this Warrant.

                  Current Market Price: On any date specified herein, the amount
         per share of the Common Stock, equal to (a) the last reported sale
         price of such Common Stock, regular way, on such date or, in case no
         such sale takes place on such date, the average of the closing bid and
         asked prices thereof regular way on such date, in either case as
         officially reported on the principal national securities exchange on
         which such Common Stock is then listed or admitted for trading, or (b)
         if such Common Stock is not then listed or admitted for trading on any
         national securities exchange but is designated as a national market
         system security by the NASD, the last reported trading price of the
         Common Stock on such date, or (c) if there shall have been no trading
         on such date or if the Common Stock is not so designated, the average
         of the closing bid and asked prices of the Common Stock on such date as
         shown by the NASD automated quotation system, or (d) if such Common
         Stock is not then listed or admitted for trading on any national
         exchange or quoted in the over-the-counter market, the higher of (x)
         the book value thereof as determined by any firm of independent public
         accountants of recognized standing selected by the Board of Directors
         of the Company as of the last day of any month ending within 60 days
         preceding the date as of which the determination is to be made and (y)
         the fair value thereof (as of a date which is within 20 days of the
         date as of which the determination is to be made) determined in good
         faith by the Board of Directors of the Company.

                  NASD:  The National Association of Securities Dealers, Inc.

                  Other Securities: Any stock (other than Common Stock) and
         other securities of the Company or any other Person (corporate or
         otherwise), which the Holders of the Warrants at any time shall be
         entitled to receive, or shall have received, upon the exercise of the
         Warrants, in lieu of or in addition to Common Stock, or which at any
         time shall be issuable or shall have been issued in exchange for or in
         replacement of Common Stock or Other Securities.

                  Person: An individual, firm, partnership, corporation,
         professional corporation, trust, joint venture, association, joint
         stock company, limited liability company, unincorporated organization
         or any other entity or organization, including a government or agency
         or political subdivision thereof, and shall include any successor (by
         merger or otherwise) of such entity.

                  Restricted Securities: (a) any Warrants bearing the applicable
         legend set forth in Section 5.1, (b) any shares of Common Stock (or
         Other Securities) issued or issuable upon the exercise of Warrants
         which are evidenced by a certificate or certificates bearing the
         applicable legend set forth in such Section, and (c) any shares of
         Common Stock (or Other Securities) issued subsequent to the exercise of
         any of the Warrants as a dividend or other distribution with respect
         to, or resulting from a subdivision of the outstanding shares of Common
         Stock (or other Securities) into a greater number of shares by
         reclassification, stock splits or otherwise, or in exchange for or in
         replacement of the Common Stock (or Other Securities) issued upon such
         exercise, which are evidenced by a certificate or certificates bearing
         the applicable legend set forth in such Section.

                  Securities Act: The Securities Act of 1933, or any similar
         federal statute, and the rules and regulations of the Commission
         thereunder, all as the same shall be in effect at the time.

                  Voting Securities: Stock of any class or classes (or
         equivalent interests), if the Holders of the stock of such class or
         classes (or equivalent interests) are ordinarily, in the absence of
         contingencies, entitled to vote for the election of the directors (or
         persons performing similar functions) of such business entity, even
         though the right so to vote has been suspended by the happening of such
         a contingency.

                  Warrant:  As defined in the introduction to this Warrant.

                  Warrant Price:  As defined in Section 2.

                  Warrant Quantity:  As defined in the introduction to this
                  Warrant.

9. Remedies; Specific Performance. The Company stipulates that there would be no
adequate remedy at law to the Holder of this Warrant in the event of any default
or threatened default by the Company in the performance of or compliance with
any of the terms of this Warrant and accordingly, the Company agrees that, in
addition to any other remedy to which the Holder may be entitled at law or in
equity, the Holder shall be entitled to seek to compel specific performance of
the obligations of the Company under this Warrant, without the posting of any
bond, in accordance with the terms and conditions of this Warrant in any court
of the United States or any State thereof having jurisdiction, and if any action
should be brought in equity to enforce any of the provisions of this Warrant,
the Company shall not raise the defense that there is an adequate remedy at law.
Except as otherwise provided by law, a delay or omission by the Holder hereto in
exercising any right or remedy accruing upon any such breach shall not impair
the right or remedy or constitute a waiver of or acquiescence in any such
breach. No remedy shall be exclusive of any other remedy. All available remedies
shall be cumulative.

10. No Rights or Liabilities as Shareholder. Nothing contained in this Warrant
shall be construed as conferring upon the Holder hereof any rights as a
shareholder of the Company or as imposing any obligation on the Holder to
purchase any securities or as imposing any liabilities on the Holder as a
shareholder of the Company, whether such obligation or liabilities are asserted
by the Company or by creditors of the Company. The Holder hereof shall not
acquire any rights as a shareholder of the Company until the day following the
Effective Date of Exercise.

11. Notices. Any notice or other communication required or permitted hereunder
shall be deemed given if in writing and delivered personally, telegraphed,
telexed, sent by facsimile transmission or sent by certified, registered or
express mail, postage prepaid. Any such notice shall be deemed given when so
delivered personally or sent by overnight air courier or facsimile transmission
or, if mailed, two days after the date of deposit in the United States mail, as
follows:

If to Holder:

         HENRY S. MELLON
         4 Driftwood Landing
         Gulfstream, Florida 33483

If to Viseon, Inc.:

         Viseon, Inc.
         Attn:    John Harris
         545 E. John Carpenter Freeway
         Suite 1420
         Irving, TX  75062
         Facsimile:        214-424-5785

         With a copy to:

                  Albert B. Greco, Jr.
                  Law Offices of Albert B. Greco, Jr.
                  16901 N. Dallas Parkway, Suite 230
                  Addison, Texas 75001]
                  Facsimile:        972-818-7343

Any party may be given notice in accordance with this Section by any other party
at another address or person for receipt of notices, if such party so designates
such other person or address in writing in accordance with this Section 11. The
Company shall give Notice to any subsequent Holder at such address as it appears
in the Warrant Register.

All such notices and communications (and deliveries) shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; when
receipt is acknowledged, if telecopied; on the next Business Day, if timely
delivered to a courier guaranteeing overnight delivery; and five days after
being deposited in the mail, if sent first class or certified mail, return
receipt requested, postage prepaid; provided, that the exercise of any Warrant
shall be effective in the manner provided in Section 1.

12. Amendments. This Warrant and any term hereof may not be amended, modified,
supplemented or terminated, and waivers or consents to departures from the
provisions hereof may not be given, except by written instrument duly executed
by the party against which enforcement of such amendment, modification,
supplement, termination or consent to departure is sought.

13. Descriptive Headings, etc. The headings in this Warrant are for convenience
of reference only and shall not limit or otherwise affect the meaning of terms
contained herein. Unless the context of this Warrant otherwise requires: (1)
words of any gender shall be deemed to include each other gender; (2) words
using the singular or plural number shall also include the plural or singular
number, respectively; (3) the words "hereof", "herein" and "hereunder" and words
of similar import when used in this Warrant shall refer to this Warrant as a
whole and not to any particular provision of this Warrant, and Section and
paragraph references are to the Sections and paragraphs of this Warrant unless
otherwise specified; (4) the word "including" and words of similar import when
used in this Warrant shall mean "including, without limitation," unless
otherwise specified; (5) "or" is not exclusive; and (6) provisions apply to
successive events and transactions.

14. Law Governing Agreement. This Agreement shall be interpreted, construed and
enforced and its construction and performance shall be governed by the laws of
the State of Nevada without regard to principles of conflicts of laws, except to
the extent that Federal law may apply.

Viseon, Inc.
    (Formerly RSI Systems, Inc.)

------------------------------------
By:      John Harris
Its:     Chief Executive Officer

<PAGE>

                                                                      Exhibit A

                              FORM OF SUBSCRIPTION

                 [To be executed only upon exercise of Warrant]

To:  Viseon, Inc.:

The  undersigned  registered  holder of the within  Warrant  hereby  irrevocably
exercises  such  Warrant for, and purchases thereunder, ________________* shares
of Common stock of Viseon,  Inc.  (Formerly  RSI Systems,  Inc.) and herewith
makes  payment of  $_________________  therefor,  and requests that the
certificates  for such shares be issued   in   the   name   of,  and   delivered
to    _____________________________,    whose    address   is

--------------------------------
-----------------------------------------------------------------------------.

Dated:  _______________________
                                            ------------------------------------
                                            (Signature  must  conform  in all
                                            respects  to the  name  of holder as
                                            specified on the face of Warrant)

                                            (Street Address)

                                            (City)
                                            (State) Zip Code)

<PAGE>

                                                                      Exhibit B

                               FORM OF ASSIGNMENT

                [To be executed only upon assignment of Warrant]

For value received, the undersigned registered holder of the within Warrant
hereby sells, assigns and transfers unto
_________________________________________ the right represented by such Warrant
to purchase _________________________________________________ shares of Common
Stock of Viseon, Inc. (Formerly RSI Systems, Inc.), to which such Warrant
relates, and appoints _______________________________________, Attorney to make
such transfer on the books of Viseon, Inc. (Formerly RSI Systems, Inc.),
maintained for such purpose, with full power of substitution in the premises.

Dated:  ___________________
                                         ---------------------------------------
                                         (Signature must conform in all respects
                                         to the  name  of holder as specified on
                                         the face of Warrant)

                                         (Street Address)

                                         (City)
                                         (State) Zip Code)

Signed in the presence of:

                  (printed name)

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

------------------------------------
                  (printed name)

--------
*  Insert here the number of shares called for on the face of this Warrant (or,
   in the case of a partial exercise, the portion thereof as to which this
   Warrant is being exercised), in either case without making any adjustment for
   any other securities or property or cash which, pursuant to the adjustment
   provisions of this Warrant, may be delivered upon exercise. In the case of
   partial exercise, a new Warrant or Warrants will be issued and delivered,
   representing the unexercised portion of the Warrant, to the holder
   surrendering the Warrant.

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