Document:

EXHIBIT 4.1
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THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES
AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON
TRANFER AS SET FORTH HEREIN. .

DECEMBER 31, 2002

846,154 shares                                                     Warrant No. 3

                             SEMOTUS SOLUTIONS, INC.
                             STOCK PURCHASE WARRANT

Registered Owner:  BROWN SIMPSON PARTNERS I, LTD.

         This certifies that, for value received, Semotus Solutions, Inc., a
Nevada corporation, the ("Company") grants the following rights to the
Registered Owner, or assigns, of this Warrant:

         1. DEFINITIONS. Capitalized terms used herein and not otherwise defined
herein shall have the meanings given to such terms in the Purchase Agreement. As
used in this Warrant, the following terms have the following meanings:

         "Affiliate" means, with respect to any Person, any other Person that
directly or indirectly controls or is controlled by or under direct or indirect
common control with such Person. For the purposes of this definition, "control,"
when used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise; and the terms of "affiliated," "controlling" and
"controlled" have meanings correlative to the foregoing.

         "Amex" means the American Stock Exchange.

         "Appraiser" means a nationally recognized or major regional investment
banking firm or firm of independent certified public accountants of recognized
standing.

         "Approved Stock Plan" means any contract, plan or agreement which has
been approved by the Board of Directors of the Company or any committee thereof,
pursuant to which the Company's securities may be issued to any employee,
officer or director; provided, that such

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issuance or issuances shall not exceed 10% of the Company's outstanding Common
Stock and preferred stock on the Closing Date.

         "Average Price" on any date means (x) the sum of the Per Share Market
Value for the ten (10) Trading Days immediately preceding such date minus (y)
the highest and lowest Per Share Market Value during such 10 Trading Day period,
divided by (z) eight (8).

         "Business Day" means any day except Saturday, Sunday and any day which
shall be a legal holiday or a day on which banking institutions in the state of
New York generally are authorized or required by law or other government actions
to close.

         "Change of Control Transaction" means the occurrence of any of (i) any
acquisition or series of related acquisitions by an individual or legal entity
or "group" (as described in Section 13(d)(3) of the Exchange Act) of in excess
of 50% of the voting power of the Company, (ii) a replacement of more than
one-half of the members of the Company's board of directors which is not
approved by a majority of those individuals who are members of the board of
directors on the date hereof, or their duly elected successors who are directors
immediately prior to such transaction(s), in one or a series of related
transactions, (iii) the merger or consolidation of the Company with or into
another entity, unless the holders of the Company's securities immediately prior
to such transaction or series of transactions continue to hold at least 50% of
such securities following such transaction or series of transactions, (iv) a
sale, conveyance, lease, transfer or disposition of all or substantially all of
the assets of the Company in one or a series of related transactions or (v) the
execution by the Company of an agreement to which the Company is a party or by
which it is bound, providing for any of the events set forth above in (i), (ii),
(iii) or (iv).

         "Closing" means the closing of the transactions contemplated by the
Purchase Agreement.

          "Closing Date" means December 31, 2002.

         "Common Stock" means the shares of the Company's Common Stock, par
value $.01 per share.

         "Company" means Semotus Solutions, Inc., a Nevada corporation.

         "Excluded Securities" means (i) shares of Common Stock issued or
issuable pursuant to the Purchase Agreement, and this Warrant, (ii) shares of
Common Stock deemed to have been issued by the Company in connection with an
Approved Stock Plan, (iii) shares of Common Stock (including options and
warrants) issuable upon the exercise of any options or warrants outstanding on
the date hereof or (iv) shares of Common Stock issued or deemed to be issued by
the Company in connection with a strategic acquisition by the Company of the
assets or business, or division thereof, of another Person.

         "Exercise Period" has the meaning assigned to it in Section 5 hereof.

         "Exercise Price" has the meaning assigned to it in Section 4 hereof.

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         "Per Share Market Value" means on any particular date (i) the closing
bid price per share of the Common Stock on such date on the Amex or other
Subsequent Market on which the Common Stock is then listed or if there is no
such price on such date, then the closing bid price on such exchange or
quotation system on the date nearest preceding such date, or (ii) if the Common
Stock is not listed then on the Amex or other Subsequent Market, the closing bid
price for a share of Common Stock in the over-the-counter market, as reported by
the National Quotation Bureau Incorporated (or similar organization or agency
succeeding to its functions of reporting prices) at the close of business on
such date, or (iii) if the Common Stock is not then publicly traded the fair
market value of a share of Common Stock as determined by an Appraiser selected
in good faith by the Company; provided, however, that the registered owners of a
majority of the Underlying Shares and Warrants then outstanding, after receipt
of the determination by such Appraiser, shall have the right to select, in good
faith, an additional Appraiser, in which case the fair market value shall be
equal to the average of the determinations by each such Appraiser; and provided,
further that all determinations of the Per Share Market Value shall be
appropriately adjusted for any stock dividends, stock splits or other similar
transactions during such period.

         "Person" means a corporation, association, partnership, organization,
business, individual, government or political subdivision thereof or
governmental agency.

         "Purchase Agreement" means that certain Preferred Buy Back and Mutual
Release Agreement, dated as of December 31, 2002, by and among the Company and
Brown Simpson Partners I, Ltd..

          "Registered Owner" means the person identified on the face of this
Warrant as the registered owner hereof or their assigns.

         "Subsequent Market" means the New York Stock Exchange, the Nasdaq
National Market or the Nasdaq SmallCap Market.

         "Registration Rights Agreement" means that certain Registration Rights
Agreement, dated as of February 9, 2000, among the Company and Brown Simpson
Strategic Growth Fund, Ltd, and Brown Simpson Strategic Growth Fund, L.P., (the
"Brown Simpson Funds").

         "Trading Day(s)" means any day on which the primary market on which
shares of Common Stock are listed is open for trading.

         "Underlying Shares" means the shares of Common Stock which are issuable
upon exercise of this Warrant.

         "Warrant(s)" means the warrants issuable at the Closing.

         "Warrant Shares" has the meaning assigned to it in Section 3 hereof.

         2. ISSUE. Upon tender to the Company pursuant to Section 6 hereof, the
Company, within three (3) Business Days of the date thereof, shall issue to the
Registered Owner, or assigns, up to the number of shares specified in Section 3
hereof of fully paid and nonassessable shares of Common Stock that the
Registered Owner, or assigns, is otherwise entitled to purchase.

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         3. NUMBER OF SHARES. The total number of shares of Common Stock that
the Registered Owner, or assigns, of this Warrant is entitled to receive upon
exercise of this Warrant is 846,154 shares (the "Warrant Shares"), subject to
adjustment from time to time as provided herein. The Company shall at all times
reserve and hold available out of its authorized and unissued shares of Common
Stock or other securities, as the case may be, sufficient shares of Common Stock
to satisfy all conversion, exercise and purchase rights represented by
outstanding convertible securities, options and warrants, including this
Warrant. The Company covenants and agrees that all shares of Common Stock that
may be issued upon the exercise of this Warrant shall, upon issuance, be duly
and validly issued, fully paid and nonassessable, free from all taxes, liens and
charges with respect to the purchase and the issuance of the shares, shall not
have any legend or restrictions on resale, expect as required by Section 3.2(b)
of that certain Securities Purchase Agreement, dated as of February 9, 2000, by
and among the Company, on the one hand, and the Brown Simpson Funds, on the
other hand, the provisions of which are incorporated herein by reference,
MUTATIS MUTANDIS, and, subsequent to the effectiveness of a Registration
Statement (as defined in the Registration Rights Agreement), shall be freely
tradable.

         4. EXERCISE PRICE. The initial per share exercise price of this
Warrant, representing the price per share at which each share of Common Stock
issuable upon exercise of this Warrant may be purchased, is $0.01, subject to
adjustment from time to time pursuant to the provisions of Section 7 hereof (the
"Exercise Price").

         5. EXERCISE PERIOD. This Warrant may be exercised, in whole or in part,
from the Closing Date up to and including December 31, 2006 (4 years less 1 day)
(the "Exercise Period"). If not exercised during this period, this Warrant and
all rights granted under this Warrant shall expire and lapse.

         6. TENDER; ISSUANCE OF CERTIFICATES.

               a. This Warrant may be exercised, in whole or in part, by (a)
         delivery of the applicable Exercise Price for the number of Warrant
         Shares in respect of which this Warrant is exercisable, (b) delivery of
         a duly executed Warrant Exercise Form, a copy of which is attached to
         this Warrant as Exhibit A, properly executed by the Registered Owner,
         or assigns, of this Warrant and (c) surrender of this Warrant. The
         number of Warrant Shares so purchased shall be designated on the
         Warrant Exercise Form and shall be deemed to be issued to the
         Registered Owner as of the close of business on the date on which this
         Warrant shall have been surrendered, the completed Warrant Exercise
         Form shall have been delivered and payment shall have been made for
         such shares as set forth above. The payment and Warrant Exercise Form
         must be delivered to the registered office of the Company or of the
         Company's transfer agent, either in person or as set for in Section 13
         hereof.

               b. If, and only if, at the time of exercise of this Warrant, the
         Warrant Shares are not saleable pursuant to an effective registration
         statement, then in addition to the exercise of all or a part of this
         Warrant by payment of the Exercise Price in cash as provided above, and
         in lieu of such payment, the Registered Owner shall have the right to
         effect a cashless exercise (a "Cashless Exercise"). In the event of a
         Cashless Exercise the Registered Owner may exercise this Warrant in
         whole or in part by surrendering this

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         Warrant in exchange for the number of shares of Common Stock equal to
         the product of (i) the number of shares as to which this Warrant is
         being exercised multiplied by (ii) a fraction, the numerator of which
         is the Per Share Market Value on such date less the Exercise Price then
         in effect and the denominator of which is the Per Share Market Value on
         such date (in each case adjusted for fractional shares as herein
         provided). The Registered Owner shall be responsible for any and all
         taxes payable in respect of such Cashless Exercise.

               c. In lieu of physical delivery of this Warrant, provided the
         Company's transfer agent is participating in the Depositary Trust
         Company ("DTC") Fast Automated Securities Transfer (FAST) program, upon
         request of the Registered Owner and in compliance with the provisions
         hereof, the Company shall use its best efforts to cause its transfer
         agent to electronically transmit the Warrant Shares to the Registered
         Owner by crediting the account of the Registered Owner's Prime Broker
         with DTC through its Deposit Withdrawal Agent Commission system. The
         time period for delivery described herein shall apply to any such
         electronic transmittals.

               d. Certificates for the Warrant Shares so purchased, representing
         the aggregate number of shares specified in the Warrant Exercise Form,
         and any cash payments due under Section 15 hereof shall be delivered to
         the Registered Owner within three (3) Business Days after this Warrant
         shall have been so exercised. The certificates so delivered shall be in
         such denominations as may be requested by the Registered Owner and
         shall be registered in the name of the Registered Owner or such other
         name as shall be designated by such Registered Owner. If this Warrant
         shall have been exercised only in part then, unless this Warrant has
         expired, the Company shall, at its expense and at the time of delivery
         of such certificates, deliver to the Registered Owner a new Warrant
         representing the number of shares with respect to which this Warrant
         shall not then have been exercised.

         7. ADJUSTMENT OF EXERCISE PRICE.

               a. Common Stock Dividends; Common Stock Splits; Reclassification.
         If the Company, at any time while this Warrant is outstanding, (a)
         shall pay a stock dividend on its Common Stock, (b) subdivide
         outstanding shares of Common Stock into a larger number of shares or
         (c) issue by reclassification of shares of Common Stock any shares of
         capital stock of the Company, then (i) the Exercise Price shall be
         multiplied by a fraction, the numerator of which shall be the number of
         shares of Common Stock outstanding before such event and the
         denominator of which shall be the number of shares of Common Stock
         outstanding after such event and (ii) the number of Warrant Shares
         shall be multiplied by a fraction, the numerator of which shall be the
         number of shares of Common Stock outstanding immediately after such
         event and the denominator of which shall be the number of shares of
         Common Stock outstanding immediately prior to such event. Any
         adjustment made pursuant to this paragraph 7(a) shall become effective
         immediately after the record date for the determination of shareholders
         entitled to receive such dividend or distribution or, in the case of a
         subdivision or re-classification, shall become effective immediately
         after the effective date thereof.

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               b. Rights; Options; Warrants or Other Securities. If the Company,
         at any time while this Warrant is outstanding, shall fix a record date
         for the issuance of rights, options, warrants or other securities to
         the holders of its Common Stock entitling them to subscribe for or
         purchase, convert to, exchange for or otherwise acquire shares of
         Common Stock for no consideration or at a price per share less than the
         Exercise Price, the Exercise Price shall be multiplied by a fraction,
         the numerator of which shall be the number of shares of Common Stock
         outstanding immediately prior to such issuance or sale plus the number
         of shares of Common Stock which the aggregate consideration received by
         the Company would purchase at the Exercise Price, and the denominator
         of which shall be the number of shares of Common Stock outstanding
         immediately prior to such issuance date plus the number of additional
         shares of Common Stock offered for subscription, purchase, conversion,
         exchange or acquisition, as the case may be. Such adjustment shall be
         made whenever such rights, options, warrants or other securities are
         issued, and shall become effective immediately after the record date
         for the determination of shareholders entitled to receive such rights,
         options, warrants or other securities.

               c. Subscription Rights. If the Company, at any time while this
         Warrant is outstanding, shall fix a record date for the distribution to
         holders of its Common Stock evidence of its indebtedness or assets or
         rights, options, warrants or other security entitling them to subscribe
         for or purchase, convert to, exchange for or otherwise acquire any
         security (excluding those referred to in paragraphs 7(a) and (b)
         above), then in each such case the Exercise Price at which this Warrant
         shall thereafter be exercisable shall be determined by multiplying the
         Exercise Price in effect immediately prior to such record date by a
         fraction, the numerator of which shall be the Per Share Market Value on
         such record date less the then fair market value at such record date of
         the portion of such assets or evidence of indebtedness so distributed
         applicable to one outstanding share of Common Stock as determined by
         the Board of Directors in good faith, and the denominator of which
         shall be the Exercise Price as of such record date; provided, however,
         that in the event of a distribution exceeding ten percent (10%) of the
         net assets of the Company, such fair market value shall be determined
         by an Appraiser selected in good faith by the registered owners of a
         majority of the Warrants and Underlying Shares then outstanding; and
         provided, further, that the Company, after receipt of the determination
         by such Appraiser shall have the right to select in good faith an
         additional Appraiser meeting the same qualifications, in which case the
         fair market value shall be equal to the average of the determinations
         by each such Appraiser. Such adjustment shall be made whenever any such
         distribution is made and shall become effective immediately after the
         record date mentioned above.

               d. Rounding. All calculations under this Section 7 shall be made
         to the nearest cent or the nearest l/l00th of a share, as the case may
         be.

               e. Notice of Adjustment. Whenever the Exercise Price is adjusted
         pursuant to this Section 7 the Company shall promptly deliver to the
         Registered Owner a notice setting forth the Exercise Price after such
         adjustment and setting forth a brief statement of the facts requiring
         such adjustment. Such notice shall be signed by the chairman, president
         or chief financial officer of the Company.

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               f. Treasury Shares. The number of shares of Common Stock
         outstanding at any given time shall not include shares owned or held by
         or for the account of the Company, and the disposition of any shares so
         owned or held shall be considered an issue or sale of Common Stock by
         the Company.

               g. Change of Control; Compulsory Share Exchange. In case of (A)
         any Change of Control Transaction or (B) any compulsory share exchange
         pursuant to which the Common Stock is converted into other securities,
         cash or property (each, an "Event"), lawful provision shall be made so
         that the Registered Owner shall have the right thereafter to exercise
         this Warrant for shares of stock and other securities, cash and
         property receivable upon or deemed to be held by holders of Common
         Stock following such Event, and the Registered Owner shall be entitled
         upon such Event to receive such amount of shares of stock and other
         securities, cash or property as the shares of the Common Stock of the
         Company into which this Warrant could have been exercised immediately
         prior to such Event (without taking into account any limitations or
         restrictions on the exercisability of this Warrant) would have been
         entitled. The provisions of this Section 7(g) shall similarly apply to
         successive Events.

               h. Issuance's Below Exercise Price. If the Company, at any time
         while this Warrant is outstanding, takes any of the actions described
         in this Section 7(h), the Registered Owner shall have the right to
         amend this Warrant as set forth below:

                           (i) issues or sells, or is deemed to have issued or
                  sold, any Common Stock;

                           (ii) in any manner grants, issues or sells any
                  rights, options, warrants, options to subscribe for or to
                  purchase Common Stock or any stock or other securities
                  convertible into or exchangeable for Common Stock (other than
                  any Excluded Securities) (such rights, options or warrants
                  being herein called "Options" and such convertible or
                  exchangeable stock or securities being herein called
                  "Convertible Securities"); or

                           (iii) in any manner issues or sells any Convertible
                  Securities;

         for (a) with respect to paragraph (h)(i), above, a price per share, or
         (b) with respect to paragraphs h(ii) or h(iii), above, a price per
         share for which Common Stock issuable upon the exercise of such Options
         or upon conversion or exchange of such Convertible Securities is, less
         than the Exercise Price in effect immediately prior to such issuance or
         sale, then, immediately after such issuance, sale or grant, the
         Registered Owner shall have the right to amend the issuance terms of
         the Common Stock issuable upon exercise of this Warrant (including
         adjustment of the Exercise Price) so that the issuance terms hereof are
         equivalent to the issuance terms of such offering. No modification of
         the issuance terms shall be made upon the actual issuance of such
         Common Stock upon conversion or exchange of such Options or Convertible
         Securities. If there is a change at any time in (i) the exercise price
         provided for in any Options, (ii) the additional consideration, if any,
         payable upon the issuance, conversion or exchange of any Convertible
         Securities or (iii) the rate at which any Convertible Securities are
         convertible

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         into or exchangeable for Common Stock, then immediately after such
         change the Registered Owner shall have the right to amend the issuance
         terms of the Common Stock issuable upon exercise of this Warrant
         accordingly, including, without limitation, by reducing the Exercise
         Price in effect to the Exercise Price which would have been in effect
         at such time had such Options or Convertible Securities still
         outstanding provided for such changed exercise price, additional
         consideration or changed conversion rate, as the case may be, at the
         time initially granted, issued or sold; provided that no adjustment
         shall be made if such adjustment would result in an increase of the
         Exercise Price then in effect.

               i. Effect on Exercise Price of Certain Events. For purposes of
         determining the adjusted Exercise Price under Section 7(h), the
         following shall be applicable:

                           (i) Calculation of Consideration Received. If any
                  Common Stock, Options or Convertible Securities are issued or
                  sold or deemed to have been issued or sold for cash, the
                  consideration received therefor will be deemed to be the net
                  amount received by the Company therefor, without deducting any
                  expenses paid or incurred by the Company or any commissions or
                  compensations paid or concessions or discounts allowed to
                  underwriters, dealers or others performing similar services in
                  connection with such issue or sale. In case any Common Stock,
                  Options or Convertible Securities are issued or sold for a
                  consideration other than cash, the amount of the consideration
                  other than cash received by the Company will be the fair value
                  of such consideration, except where such consideration
                  consists of securities listed or quoted on a national
                  securities exchange or national quotation system, in which
                  case the amount of consideration received by the Company will
                  be the arithmetic average of the closing sale price of such
                  security for the five (5) consecutive Trading Days immediately
                  preceding the date of receipt thereof. In case any Common
                  Stock, Options or Convertible Securities are issued to the
                  owners of the non-surviving entity in connection with any
                  merger in which the Company is the surviving entity, the
                  amount of consideration therefor will be deemed to be the fair
                  value of such portion of the net assets and business of the
                  non-surviving entity as is attributable to such Common Stock,
                  Options or Convertible Securities, as the case may be. The
                  fair value of any consideration other than cash or securities
                  will be determined jointly by the Company and the registered
                  owners of a majority of the Underlying Shares and Warrants
                  then outstanding. If such parties are unable to reach
                  agreement within ten (10) days after the occurrence of an
                  event requiring valuation (the "Valuation Event"), the fair
                  value of such consideration will be determined within
                  forty-eight (48) hours of the tenth (10th) day following the
                  Valuation Event by an Appraiser selected in good faith by the
                  Company and agreed upon in good faith by the registered owners
                  of a majority of the Underlying Shares and Warrants then
                  outstanding. The determination of such Appraiser shall be
                  binding upon all parties absent manifest error.

                           (ii) Integrated Transactions. In case any Option is
                  issued in connection with the issue or sale of other
                  securities of the Company, together comprising one integrated
                  transaction in which no specific consideration is allocated to
                  such Options

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                  by the parties thereto, the Options will be deemed to have
                  been issued for an aggregate consideration of $.01.

                           (iii) Record Date. If the Company takes a record of
                  the holders of Common Stock for the purpose of entitling them
                  (a) to receive a dividend or other distribution payable in
                  Common Stock, Options or in Convertible Securities or (b) to
                  subscribe for or purchase Common Stock, Options or Convertible
                  Securities, then such record date will be deemed to be the
                  date of the issue or sale of the shares of Common Stock deemed
                  to have been issued or sold upon the declaration of such
                  dividend or the making of such other distribution or the date
                  of the granting of such right of subscription or purchase, as
                  the case may be.

                           (iv) Other Events. If any event occurs that would
                  adversely affect the rights of the Registered Owner of this
                  Warrant but is not expressly provided for by Section 7 hereof
                  (including, without limitation, the granting of stock
                  appreciation rights, phantom stock rights or other rights with
                  equity features), then the Company's Board of Directors will
                  make an appropriate adjustment in the Exercise Price so as to
                  protect the rights of the Registered Owner; provided, however,
                  that no such adjustment will increase the Exercise Price.

               j. Notice of Certain Events. If:

                           (i) the Company shall declare a dividend (or any
                  other distribution) on its Common Stock;

                           (ii) the Company shall declare a special nonrecurring
                  cash dividend on or a redemption of its Common Stock;

                           (iii) the Company shall authorize the granting to the
                  holders of its Common Stock rights or warrants to subscribe
                  for or purchase any shares of capital stock of any class or of
                  any rights;

                           (iv) the approval of any shareholders of the Company
                  shall be required in connection with any reclassification of
                  the Common Stock, any consolidation or merger to which the
                  Company is a party, any sale or transfer of all or
                  substantially all of the assets of the Company, or any
                  compulsory share exchange whereby the Common Stock is
                  converted into other securities, cash or property; or

                           (v) the Company shall authorize the voluntary or
                  involuntary dissolution, liquidation or winding up of the
                  affairs of the Company;

         then the Company shall cause to be filed at each office or agency
         maintained for the purpose of exercise of this Warrant, and shall cause
         to be delivered to the Registered Owner, at least 30 calendar days
         prior to the applicable record or effective date hereinafter specified,
         a notice (provided such notice shall not include any material
         non-public information) stating (a) the date on which a record is to be
         taken for the purpose of such dividend, distribution, redemption,
         rights or warrants, or if a record is not to be

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         taken, the date as of which the holders of Common Stock of record to be
         entitled to such dividend, distributions, redemption, rights or
         warrants are to be determined or (b) the date on which such
         reclassification, consolidation, merger, sale, transfer or share
         exchange is expected to become effective or close, and the date as of
         which it is expected that holders of Common Stock of record shall be
         entitled to exchange their shares of Common Stock for securities, cash
         or other property deliverable upon such reclassification,
         consolidation, merger, sale, transfer or share exchange; provided,
         however, that the failure to mail such notice or any defect therein or
         in the mailing thereof shall not affect the validity of the corporate
         action required to be specified in such notice. Nothing herein shall
         prohibit the Registered Owner from exercising this Warrant during the
         30-day period commencing on the date of such notice.

               k. Increase in Exercise Price. In no event shall any provision in
         this Section 7 cause the Exercise Price to be greater than the Exercise
         Price on the date of issuance of this Warrant.

         8. CALL OPTION. If, at any time during the Exercise Period and
following the one-year anniversary of the date hereof, the Per Share Market
Value equals or exceeds $35.00 for any period of thirty (30) consecutive Trading
Days ending not more than ten (10) Trading Days after the Call Notice Date (as
defined below), then so long as (i) any Registration Statement required to be
filed and be effective pursuant to the Registration Rights Agreement is then in
effect and has been in effect and sales of all of the Registrable Securities can
be made thereunder for at least twenty (20) days prior to the Call Option Date
(as defined below), (ii) the Company has a sufficient number of authorized
shares of Common Stock reserved for issuance upon full exercise of the Warrants
and (iii) the Company is not then in breach of any of the provisions of this
Warrant, the Company shall have the right (the "Call Option"), to be exercised
on one (1) occasion only during the two (2) month period commencing on the Call
Notice Date (as defined below), to cause the Registered Owner to exercise this
Warrant in full in accordance with the provisions of Section 6 hereof (such date
that the Call Option is exercised, the "Call Option Date"). The Company shall
exercise its Call Option by delivering to the Registered Owner a call notice
(the "Call Notice" and, such date that the Call Notice is given, the "Call
Notice Date"), by facsimile and overnight courier, at least ten (10) Business
Days prior to the Call Option Date. The Call Notice shall indicate the Call
Option Date and shall include a brief statement of the facts evidencing the
Company's right to exercise the Call Option. Nothing herein shall prohibit the
Registered Owner from exercising this Warrant in accordance with the provisions
of Section 6 hereof at any time after receipt of the Call Notice and prior to
the Call Option Date, and the Company shall deliver certificates for Warrant
Shares in accordance with Section 6 hereof with respect to any Warrants so
exercised.

         9. RESTRICTION ON EXERCISE BY EITHER THE REGISTERED OWNER OR THE
COMPANY. Notwithstanding anything herein to the contrary, in no event shall the
Registered Owner or the Company have the right or be required to exercise this
Warrant if as a result of such exercise the aggregate number of shares of Common
Stock beneficially owned by such Registered Owner and its Affiliates would
exceed 4.99% of the outstanding shares of the Common Stock following such
exercise. For purposes of this Section 9, beneficial ownership shall be
calculated in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended. The provisions of this Section 9 may be waived by a Registered
Owner as to itself (and solely as to

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itself) upon not less than 65 days prior written notice to the Company, and the
provisions of this Section 9 shall continue to apply until such 65th day (or
later, if stated in the notice of waiver).

         10. REGISTRATION ON COMPANY BOOKS. This Warrant shall be numbered and
shall be registered as they are issued in a warrant register maintained the
Company. The Company may deem and treat the Registered Owner of this Warrant as
the absolute owner thereof, unless the Registered Owner shall have presented
this Warrant to the Company for transfer and the transferee shall have been
entered in the register as a subsequent holder. The ownership of this Warrant
shall be proven by such register, absent manifest error.

         11. REGISTRATION RIGHTS. The Company will undertake the registration of
the Common Stock into which this Warrant is exercisable at such times and upon
such terms pursuant to the provisions of the Purchase Agreement.

         12. RESERVATION OF UNDERLYING SHARES; LISTING. The Company covenants
that it will at all times reserve and keep available out of its authorized
shares of Common Stock, free from preemptive rights, solely for the purpose of
issue upon exercise of this Warrants as herein provided, such number of shares
of the Common Stock as shall then be issuable upon the exercise of all
outstanding Warrants into Common Stock. The Company shall promptly secure the
listing of the shares of Common Stock issuable upon exercise of this Warrant
upon each national securities exchange or automated quotation system upon which
shares of Common Stock are then listed (subject to official notice of issuance
upon exercise of this Warrant) and shall maintain, so long as any other shares
of Common Stock shall be so listed, such listing of all shares of Common Stock
form time to time issuable upon the exercise of this Warrant.

         13. NOTICES. Any notice or other communication required or permitted to
be given hereunder shall be in writing and shall be deemed to have been received
(a) upon hand delivery (receipt acknowledged) or delivery by telex (with correct
answer back received), telecopy or facsimile (with transmission confirmation
report) at the address or number designated below (if received by 5:00 p.m.
eastern time where such notice is to be received), or the first Business Day
following such delivery (if received after 5:00 p.m. eastern time where such
notice is to be received) or (b) on the second Business Day following the date
of mailing by express courier service, fully prepaid, addressed to such address,
or upon actual receipt of such mailing, whichever shall first occur. The
addresses for such communications are (i) if to the Company or the Company's
transfer agent to[Insert address], and (ii) if to the Registered Owner to Brown
Simpson Partners I, Ltd., 152 West 57th Street, 40th Floor, New York, NY 10029,
fax no. (212) 247-1329, with copies to Akin, Gump, Strauss, Hauer & Feld,
L.L.P., 590 Madison Avenue, New York, New York 10022, Attn: James Kaye, fax no.
(212) 872-1002 or such other address as may be designated in writing hereafter,
in the same manner, by such person.

         14. COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS. The Company covenants
that if any shares of Common Stock required to be reserved for purposes of
exercise of this Warrant requires registration with, or approval of, any
governmental authority under any Federal or state law, or any national
securities exchange, before such shares may be issued upon exercise, the Company
will use its best efforts to cause such shares to be duly registered or
approved, as the case may be.

                                       11
<PAGE>

         15. FRACTIONAL SHARES. Upon any exercise hereunder, the Company shall
not be required to issue stock certificates representing fractions of shares of
the Common Stock, but may if otherwise permitted make a cash payment in respect
of any final fraction of a share based on the Per Share Market Value at such
time. If the Company elects not, or is unable, to make such a cash payment, the
Registered Owner shall be entitled to receive, in lieu of the final fraction of
a share, one whole share of Common Stock.

         16. PAYMENT OF TAX UPON ISSUE OF TRANSFER. The issuance of certificates
for shares of the Common Stock upon exercise of this Warrant shall be made
without charge to the Registered Owner hereof for any documentary stamp or
similar taxes that may be payable in respect of the issue or delivery of such
certificate, provided that the Company shall not be required to pay any tax that
may be payable in respect of any transfer involved in the issuance and delivery
of any such certificate upon exercise in a name other than that of the
Registered Owner of this Warrant and the Company shall not be required to issue
or deliver such certificates unless or until the person or persons requesting
the issuance thereof shall have paid to the Company the amount of such tax or
shall have established to the satisfaction of the Company that such tax has been
paid.

         17. WARRANTS OWNED BY COMPANY DEEMED NOT OUTSTANDING. In determining
whether the holders of the outstanding Warrants have concurred in any direction,
consent or waiver under this Warrant, warrants which are owned by the Company or
any other obligor on the warrants shall be disregarded and deemed not to be
outstanding for the purpose of any such determination; provided, that any
Warrants owned by the Registered Owner shall be deemed outstanding for purposes
of making such a determination.

         18. EFFECT OF HEADINGS. The section headings herein are for convenience
only and shall not affect the construction hereof.

         19. NO RIGHTS AS STOCKHOLDER. This Warrant shall not entitle the
Registered Owner to any rights as a stockholder of the Company, including
without limitation, the right to vote, to receive dividends and other
distributions, or to receive notice of, or to attend, meetings of stockholders
or any other proceedings of the Company, unless and to the extent exercised into
shares of Common Stock in accordance with the terms hereof.

         20. CERTAIN ACTIONS PROHIBITED. The Company will not, by amendment of
its charter or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed by it hereunder, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in the
taking of all such action as may reasonably be requested by the Registered Owner
in order to protect the exercise privilege of the Registered Owner against
dilution or other impairment, consistent with the tenor and purpose of this
Warrant. Without limiting the generality of the foregoing, the Company (i) will
not increase the par value of any shares of Common Stock receivable upon the
exercise of this Warrant and (ii) will take all such actions as may be necessary
or appropriate in order that the Company may validly and legally issue fully
paid and nonassessable shares of Common Stock upon the exercise of this Warrant.

                                       12
<PAGE>

         21. SHAREHOLDER RIGHTS PLAN. In the event that the Company shall
distribute "poison pill" rights pursuant to a "poison pill" shareholder rights
plan (the "Rights"), the Company shall, in lieu of making any adjustment
pursuant to Section 7 hereof, make proper provision so that each Registered
Owner who exercises this Warrant after the record date for such distribution and
prior to the expiration or redemption of the Rights shall be entitled to receive
upon such exercise, in addition to the shares of Common Stock issuable upon such
exercise, a number of Rights to be determined as follows: (i) if such exercise
occurs on or prior to the date for the distribution to the holders of Rights of
separate certificates evidencing such Rights (the "Distribution Date"), the same
number of Rights to which a holder of a number of shares of Common Stock equal
to the number of shares of Common Stock issuable upon such exercise at the time
of such exercise would be entitled in accordance with the terms and provisions
of and applicable to the Rights; and (ii) if such exercise occurs after the
Distribution Date, the same number of Rights to which a holder of the number of
shares into which this Warrant was exercisable immediately prior to the
Distribution Date would have been entitled on the Distribution Date, in
accordance with the terms and provisions of such Rights, and in each case
subject to the terms and conditions of the Rights.

         22. SUCCESSORS AND ASSIGNS. This Warrant shall be binding upon and
inure to the benefit of the Registered Owners and its assigns, and shall be
binding upon any entity succeeding to the Company by merger or acquisition of
all or substantially all the assets of the Company. The Company may not assign
this Warrant or any rights or obligations hereunder without the prior written
consent of the Registered Owner. The Registered Owner may assign this Warrant
without the prior written consent of the Company.

         23. GOVERNING LAW. The corporate laws of the State of Nevada shall
govern all issues concerning the relative rights of the Company and the
Registered Owners as securities holders. All other issues shall be governed by
and construed and enforced in accordance with the internal laws of the State of
New York without regard to the principles of conflicts of law thereof. Each
party hereby irrevocably submits to the nonexclusive jurisdiction of the state
and federal courts sitting in the City of New York, Borough of Manhattan, for
the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by
law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT
TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

         24. REMEDIES. In the event of a breach by the Company of any of their
obligations under this Warrant, the Registered Owner, in addition to being
entitled to exercise all rights granted by law, including recovery of damages,
will be entitled to specific performance of its rights under this Warrant. The
Company agrees that monetary damages would not provide adequate compensation for
any losses incurred by reason of a breach by it of any of the provisions of this
Warrant and hereby further agree that, in the event of any action for specific

                                       13
<PAGE>

performance in respect of such breach, it shall waive the defense that a remedy
at law would be adequate.

         25. MUTILATED OR MISSING WARRANTS. In case this Warrant shall be
mutilated, lost, stolen or destroyed, the Company, upon request of the
Registered Owner, shall issue and deliver in exchange and substitution for and
upon cancellation of such mutilated Warrant, or in the event that this Warrant
is lost, stolen or destroyed, a new Warrant of like tenor and representing an
equivalent right or interest.

                                       14
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its duly authorized officer as of the date first set forth above.

                                           SEMOTUS SOLUTIONS, INC.

                                           By:  /s/ Anthony N. LaPine
                                               -----------------------------
                                           Name: Anthony N. LaPine
                                           Title: President and CEO

                                       15
<PAGE>

                                    EXHIBIT A

                              WARRANT EXERCISE FORM

TO: SEMOTUS SOLUTIONS, INC.

         The undersigned hereby: (1) irrevocably subscribes for and offers to
purchase _______ shares of Common Stock of Semotus Solutions, Inc., pursuant to
Warrant No. ___ heretofore issued to ___________________ on ____________, ____ ;
(2) encloses either (a) a cash payment of $__________ or (b) a Warrant
representing _____ shares of Common Stock valued at the Per Share Market Price
of $ _____ on ________, ____, for these shares at a price of $____ per share (as
adjusted pursuant to the provisions of the Warrant); and (3) requests that a
certificate for the shares be issued in the name of the undersigned, or the
undersigned's designee, and delivered to the undersigned, or the undersigned's
designee, at the address specified below.

         Date:
                                            ----------------------------------

         Investor Name:
                                            ----------------------------------

         Taxpayer Identification Number:
                                            ----------------------------------

         By:
                                            ----------------------------------

         Printed Name:
                                            ----------------------------------

         Title:
                                            ----------------------------------

         Address:
                                            ----------------------------------

         Cashless Exercise (Y or N):        ------------

         Note: The above signature should correspond exactly with the name on
         the face of this Warrant Certificate or with the name of assignee
         appearing in assignment form below.

AND, if said number of shares shall not be all the shares purchasable under the
within Warrant, a new Warrant Certificate is to be issued in the name of said
undersigned for the balance remaining of the shares purchasable thereunder less
any fraction of a share paid in cash and delivered to the address stated above.<PAGE>

                                                                     EXHIBIT 4.1

                          AMERICAN FIRE RETARDANT CORP.
       NON-EMPLOYEE DIRECTORS AND CONSULTANTS RETAINER STOCK PLAN FOR THE
                                 YEAR 2002 NO. 4

     1.  Introduction.  This Plan shall be known as the "American Fire Retardant
         ------------
Corp.  Non-Employee  Directors  and Consultants Retainer Stock Plan for the Year
2002  No. 4" 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
         -----------
below:

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

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

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

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

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

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

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

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

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

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

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

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

     "Exchange  Act"  has  the  meaning  set  forth  in  Paragraph 13(b) 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

                                        9
<PAGE>

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 6 hereof.

     3. Effective Date of the Plan. This Plan was adopted by the Board effective
        --------------------------
January  10,  2003  (the  "Effective  Date").

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

     5.  Grants  of  Shares.  Commencing  on  the  Effective Date, the amount of
         -------------------
compensation for service to directors or consultants shall be payable in shares
of the Common Stock (the "Stock Retainer") pursuant to this Plan at the deemed
issuance price of $0.03 per Share.

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

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

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

                                       10
<PAGE>

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.

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

          (a)     The  shares  of  the  Common Stock in a Participant's Deferred
Stock  Account  with respect to any Stock Retainer for which a Deferral Election
has  been  made (together with dividends attributable to such shares credited to
such  Deferred  Stock  Account)  shall  be  delivered  in  accordance  with this
Paragraph  8  as soon as practicable after the applicable Delivery Date.  Except
with  respect to a Deferral Election pursuant to Paragraph 6(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 6(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 6(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 8. However, Participants shall have no beneficial or other
interest  in  the Trust and the assets thereof, and their rights under this Plan
shall  be  as  general  creditors of the Company, unaffected by the existence or
nonexistence  of  the  Trust,  except  that  deliveries  of  Stock  Retainers to
Participants  from  the  Trust  shall,  to  the  extent  thereof,  be treated as
satisfying  the  Company's  obligations  under  this  Paragraph  8.

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

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

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

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

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

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

                                       11
<PAGE>

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

     11.  Shares Available. Subject to Paragraph 12 below, the maximum number of
          -----------------
shares of the Common Stock which may in the aggregate be paid as Stock Retainers
pursuant  to this Plan is 30,000,000. Shares of the Common Stock issueable under
this  Plan  may be taken from treasury shares of the Company or purchased on the
open  market.

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

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

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

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

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

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

                                       12
<PAGE>
               (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
execution  of  the  initial  agreement or action of the Board providing for such
sale  or  other  disposition  of  assets  of  the  Company.

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

          (a)     This  Plan  shall be administered by a committee consisting of
two  members  who  shall  be  the  current  directors  of  the Company or senior
executive  officers  or  other  directors  who  are  not  Participants as may be
designated  by  the  Chief Executive Officer (the "Committee"), which shall have
full  authority  to  construe  and  interpret this Plan, to establish, amend and

                                       13
<PAGE>
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.

     14.  Miscellaneous.
          -------------

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

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

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

     IN WITNESS WHEREOF, this Plan has been executed effective as of January 13,
2003.

                                             AMERICAN FIRE RETARDANT CORP.

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

                                       14

<PAGE>

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