Document:

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                                                                     EXHIBIT 4.1

                            BAM! ENTERTAINMENT, INC.

                        2003 STOCK OPTION, DEFERRED STOCK
                                       AND
                              RESTRICTED STOCK PLAN

SECTION 1. GENERAL PURPOSE OF PLAN; DEFINITIONS.

         (a)      This plan is intended to implement and govern the 2003 Stock
Option, Deferred Stock and Restricted Stock Plan (the "Plan") of BAM!
Entertainment, Inc., a Delaware corporation (the "Company"). The Plan was
adopted by the Board of Directors of the Company as of October 23, 2003 and by
the stockholders of the Company as of December 19, 2003. The purpose of the Plan
is to enable the Company to obtain and retain competent personnel who will
contribute to the Company's success by their ability, ingenuity and industry,
and to provide incentives to such personnel and members that are linked directly
to increases in stockholder value, and will therefore, inure to the benefit of
all stockholders of the Company.

         (b)      For purposes of the Plan, the following terms shall be defined
as set forth below:

                  (1)      "Administrator" means the Board, or if the Board does
not administer the Plan, the Committee, in accordance with Section 2.

                  (2)      "Award" means any award of Deferred Stock, Restricted
Stock or Stock Option.

                  (3)      "Board" means the Board of Directors of the Company.

                  (4)      "Code" means the Internal Revenue Code of 1986, as
amended from time to time, or any successor thereto.

                  (5)      "Commission" means the Securities and Exchange
Commission.

                  (6)      "Committee" means the Compensation Committee of the
Board, or any other Committee the Board may appoint to administer the Plan. If
at any time the Board shall administer the Plan, then the functions of the
Committee specified in the Plan shall be exercised by the Board.

                  (7)      "Company" means BAM! Entertainment, Inc., a
corporation organized under the laws of Delaware (or any successor corporation)
and any parent corporation within the meaning of Section 425(e) of the Code, any
subsidiary corporation with the meaning of Section 425(f) of the Code or any
majority-owned subsidiary of a parent corporation.

                  (8)      "Deferred Stock" means an award made pursuant to
Section 6 below of the right to receive Stock at the end of a specified deferral
period.

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                  (9)      "Disability" means, except as otherwise provided by
the Administrator and except in connection with exercise of an Incentive Stock
Option whereby disability shall have the meaning set forth in Section 22(e)(3)
of the Code, permanent and total disability as determined under the Company's
disability program or policy, or if such disability program or policy does not
exist, then any disability that renders Participant unable to serve the Company
in the capacity for which such Participant served immediately prior to such
disability.

                  (10)     "Effective Date" shall mean the date provided
pursuant to Section 15.

                  (11)     "Eligible Person" means an employee, director,
consultant or advisor of the Company eligible to participate in the Plan
pursuant to Section 4.

                  (12)     "Exchange Act" means the Securities Exchange Act of
1934, as amended.

                  (13)     "Fair Market Value" means, as of any given date, with
respect to any Awards granted hereunder, at the discretion of the Administrator
and subject to such limitations as the Administrator may impose, (A) the closing
sales price of the Stock on such date, or (B) the average of the closing sales
price of the Stock on each day on which the Stock was traded over a period of up
to twenty trading days immediately prior to such date, or (C) if the Stock is
not publicly traded, the fair market value of the Stock as otherwise determined
by the Administrator in the good faith exercise of its discretion.

                  (14)     "Incentive Stock Option" means any Stock option
intended to be designated as an "incentive stock option" within the meaning of
Section 422 of the Code.

                  (15)     "Non-Qualified Stock Option" means any Stock Option
that is not an Incentive Stock Option, including any Stock Option that provides
(as of the time such option is granted) that it will not be treated as an
Incentive Stock Option.

                  (16)     "Participant" means any Eligible Person selected by
the Administrator pursuant to the Administrator's authority in Section 2 below
to receive Awards.

                  (17)     "Restricted Period" means the period set by the
Administrator as it pertains to Deferred Stock or Restricted Stock awards
pursuant to Section 6.

                  (18)     "Restricted Stock" means an award of shares of Stock
granted pursuant to Section 6 subject to restrictions that will lapse with the
passage of time or upon the attainment of performance objectives.

                  (19)     "Securities Act" means the Securities Act of 1933, as
amended.

                  (20)     "Stock" means the common stock, $.001 par value, of
the Company.

                  (21)     "Stock Option" means an option to purchase shares of
Stock granted pursuant to Section 5.

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SECTION 2. ADMINISTRATION.

         (a)      The Plan shall be administered by the Board or by a Committee
appointed by the Board, which shall serve at the pleasure of the Board;
provided, however, that if the Stock is registered under Section 12 of the
Securities Act and if the Committee does not consist solely of "Non-Employee
Directors," as defined in Rule 16b-3 as promulgated by the Commission under the
Exchange Act, and as such Rule may be amended from time to time, or any
successor definition adopted by the Commission, then the Plan shall be
administered, and each grant shall be approved, by the Board.

         (b)      The Administrator shall have the power and authority to grant
to Eligible Persons, pursuant to the terms of the Plan: (i) Stock Options, (ii)
Deferred Stock, (iii) Restricted Stock, or (iv) any combination of the
foregoing.

         In particular, the Administrator shall have the authority:

                  (1)      to select those employees of the Company who are
Eligible Persons;

                  (2)      to determine whether and to what extent Stock
Options, Deferred Stock, Restricted Stock or a combination of the foregoing, are
to be granted to Eligible Persons of the Company;

                  (3)      to determine the number of shares of Stock to be
covered by each such Award;

                  (4)      to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any such Award including, but not
limited to, (i) the restricted period applicable to Deferred Stock or Restricted
Stock awards, (ii) the date or dates on which restrictions applicable to such
Deferred Stock or Restricted Stock shall lapse during such period, and (iii)
when and in what increments shares covered by Stock Options may be purchased,
subject to applicable rules and regulations and restrictions set forth herein;
and

                  (5)      to determine the terms and conditions, not
inconsistent with the terms of the Plan, which shall govern all written
instruments evidencing the Stock Options, Deferred Stock, Restricted Stock or
any combination of the foregoing.

         (c)      The Administrator shall have the authority, in its discretion,
to adopt, alter and repeal such administrative rules, guidelines and practices
governing the Plan as it shall from time to time deem advisable; to interpret
the terms and provisions of the Plan and any Award issued under the Plan (and
any agreements relating thereto); and to otherwise supervise the administration
of the Plan.

         (d)      All decisions made by the Administrator pursuant to the
provisions of the Plan shall be final and binding on all persons, including the
Company and the Participants.

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SECTION 3. STOCK SUBJECT TO PLAN.

         (a)      The total number of shares of Stock reserved and available for
issuance under the Plan shall be 1,500,000 shares. Such shares shall consist of
authorized but unissued shares.

         (b)      To the extent that (i) a Stock Option expires or is otherwise
terminated without being exercised or (ii) any shares of Stock subject to any
Deferred Stock or Restricted Stock award granted hereunder are forfeited, such
shares shall again be available for issuance in connection with future Awards
under the Plan. If any shares of Stock have been pledged as collateral for
indebtedness incurred by a Participant in connection with the exercise of a
Stock Option and such shares are returned to the Company in satisfaction of such
indebtedness, such shares shall again be available for issuance in connection
with future Awards under the Plan. If the exercise price of any Stock Option
award, or the withholding obligation arising from a Stock Option granted under
the Plan is satisfied by tendering shares of Stock to the Company (by either
actual delivery of by attestation), only the number of shares of Stock issued,
not of the shares of Stock tendered, shall be deemed delivered for purposes of
determining the maximum number of shares of Stock available for delivery under
the Plan.

         (c)      In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, stock split, reverse stock split or other
change in corporate structure affecting the Stock, an appropriate substitution
or adjustment shall be made in (i) the aggregate number of shares reserved for
issuance under the Plan, and (ii) the kind, number and option price of shares
subject to outstanding Awards granted under the Plan as may be determined by the
Administrator, in its sole discretion, provided that the number of shares
subject to any Award shall always be a whole number. Such other substitutions or
adjustments shall be made as may be determined by the Administrator, in its sole
discretion; provided, however, that with respect to Incentive Stock Options,
such adjustment shall be made in accordance with Section 424 of the Code.

SECTION 4. ELIGIBILITY.

         Officers, employees and directors of, and consultants and advisors
providing services to, the Company shall be eligible to be granted Non-Qualified
Stock Options, Deferred Stock or Restricted Stock awards hereunder. Officers and
other key employees of the Company shall also be eligible to be granted
Incentive Stock Options hereunder. The Participants under the Plan shall be
selected from time to time by the Administrator, in its sole discretion, from
among the Eligible Persons recommended by the senior management of the Company,
and the Administrator shall determine, in its sole discretion, the number of
shares covered by each Award.

SECTION 5. STOCK OPTIONS FOR ELIGIBLE PERSONS.

         (a)      Stock Options may be granted to Eligible Persons alone or in
addition to other Awards granted under the Plan. Any Stock Option granted under
the Plan shall be in such form as the Administrator may from time to time
approve, and the provisions of Stock Option awards need not be the same with
respect to each optionee. Recipients of Stock Options shall enter into a

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stock option agreement with the Company, in such form as the Administrator shall
determine, which agreement shall set forth, among other things, the exercise
price of the option, the term of the option and provisions regarding
exercisability of the option granted thereunder. The prospective recipient of a
Stock Option shall not have any rights with respect to such Award, unless and
until such recipient has executed an agreement evidencing the Award (a "Stock
Option Agreement" and has delivered a fully executed copy thereof to the
Company, within a period of sixty days (or such other period as the
Administrator may specify) after the Award date.

         The Stock Options granted under the Plan to Eligible Persons may be of
two types: (x) Incentive Stock Options and (y) Non-Qualified Stock Options.

         (b)      The Administrator shall have the authority under this Section
5 to grant any optionee Incentive Stock Options, Non-Qualified Stock Options, or
both types of Stock Options; provided, however, that Incentive Stock Options may
not be granted to any individual who is not an employee of the Company. To the
extent that any Stock Option does not qualify as an Incentive Stock Option, it
shall constitute a separate Non-Qualified Stock Option. More than one option may
be granted to the same optionee and be outstanding concurrently hereunder.

         (c)      Stock Options granted under the Plan shall be subject to the
following terms and conditions and shall contain such additional terms and
conditions, not inconsistent with the terms of the Plan, as the Administrator
shall, in its sole discretion, deem desirable:

                  (i)      Option Price. The option price per share of Stock
purchasable under an Incentive Stock Option shall be determined by the
Administrator, in its sole discretion, at the time of grant but shall be not
less than 100% of the Fair Market Value of the Stock on such date, and shall
not, in any event, be less than the par value of the Stock, if any. The option
price per share of Stock purchasable under a Non-Qualified Stock Option may be
less than 100% of such Fair Market Value, but in no event less than 85% of such
Fair Market Value. If an employee owns or is deemed to own (by reason of the
attribution rules applicable under Section 424(d) of the Code) more than 10% of
the combined voting power of all classes of stock of the Company and a Stock
Option is granted to such employee, the option price of such Stock Option (to
the extent required by the Code at the time of grant) shall be no less than 110%
of the Fair Market Value of the Stock on the date such Stock Option is granted.

                  (ii)     Option Term. The term of each Stock Option shall be
fixed by the Administrator, but no Stock Option shall be exercisable more than
ten years after the date such Stock Option is granted; provided, however, that
if an employee owns or is deemed to own (by reason of the attribution rules of
Section 424(d) of the Code) more than 10% of the combined voting power of all
classes of stock of the Company and an Incentive Stock Option is granted to such
employee, the term of such Incentive Stock Option (to the extent required by the
Code at the time of grant) shall be no more than five years from the date of
grant.

                  (iii)    Exercisability. Stock Options shall be exercisable at
such time or times and subject to such terms and conditions as shall be
determined by the Administrator at or after grant; provided, however, that,
except as provided herein or unless otherwise determined by the Administrator at
or after grant, Stock Options shall be exercisable one year following the date
of

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grant of the option. With respect to Stock Options issued to non-officer
employees of the Company, such Stock Options shall vest at least 20% per year
over the five-year period commencing from the date of grant. To the extent not
exercised, installments shall accumulate and be exercisable in whole or in part
at any time after becoming exercisable but not later than the date the Stock
Option expires. The Administrator may provide, in its discretion, that any Stock
Option shall be exercisable only in installments, and the Administrator may
waive such installment exercise provisions at any time in whole or in part based
on such factors as the Administrator may determine in its sole discretion.

                  (iv)     Method of Exercise. Subject to Subsection 5(c)(iii),
Stock Options may be exercised in whole or in part at any time during the option
period by giving written notice of exercise to the Company specifying the number
of shares to be purchased, accompanied by payment in full of the purchase price
in cash or its cash equivalent, as determined by the Administrator. The
Administrator may, in its sole discretion, accept payment in whole or in part on
behalf of the Company (i) in the form of unrestricted Stock already owned by the
optionee, or, in the case of the exercise of a Non-Qualified Stock Option,
Restricted Stock subject to an Award hereunder (based, in each case, on the Fair
Market Value of the Stock), (ii) by cancellation of any indebtedness owed by the
Company to the optionee, (iii) by a full recourse promissory note executed by
the optionee, (iv) by requesting that the Company withhold whole shares of
Common Stock then issuable upon exercise of the Stock Option (based on the Fair
Market Value of the Stock), (v) by arrangement with a broker which is acceptable
to the Administrator where payment of the option price is made pursuant to an
irrevocable direction to the broker to deliver all or part of the proceeds from
the sale of the shares underlying the option to the Company, or (vi) by any
combination of the foregoing; provided, however, that in the case of an
Incentive Stock Option, the right to make payment in the form of already owned
shares may be authorized only at the time of grant. Any payment in the form of
stock already owned by the optionee may be effected by use of an attestation
form approved by the Administrator. If payment of the option exercise price of a
Non-Qualified Stock Option is made in whole or in part in the form of Restricted
Stock, the shares received upon the exercise of such Stock Option (to the extent
of the number of shares of Restricted Stock surrendered upon exercise of such
Stock Option) shall be restricted in accordance with the original terms of the
Restricted Stock award in question, except that the Administrator may direct
that such restrictions shall apply only to that number of shares equal to the
number of shares surrendered upon the exercise of such option. An optionee shall
generally have the rights to dividends and other rights of a stockholder with
respect to shares subject to the option only after the optionee has given
written notice of exercise, has paid in full for such shares, and, if requested,
has given the representation described in paragraph (a) of Section 10.

         (d)      The Company may make loans available to Stock Option holders
in connection with the exercise of outstanding options granted under the Plan,
as the Administrator, in its discretion, may determine. Such loans shall (i) be
evidenced by promissory notes entered into by the Stock Option holders in favor
of the Company, (ii) be subject to the terms and conditions set forth in this
paragraph and such other terms and conditions, not inconsistent with the Plan,
as the Administrator shall determine, (iii) bear interest, if any, at such rate
as the Administrator shall determine and (iv) be subject to Board approval. In
no event may the principal amount of any such loan exceed the sum of (x) the
exercise price less the par value of the shares of Stock

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covered by the option, or portion thereof, exercised by the holder and (y) any
Federal, state, and local income tax attributable to such exercise. The initial
term of the loan, the schedule of payments of principal and interest under the
loan, the extent to which the loan is to be with or without recourse against the
holder with respect to principal or interest and the conditions upon which the
loan will become payable in the event of the holder's termination of employment
shall be determined by the Administrator; provided, however, that the term of
the loan, including extensions, shall not exceed seven (7) years. Unless the
Administrator determines otherwise, when a loan is made, shares of Common Stock
having a Fair Market Value at least equal to the principal amount of the loan
shall be pledged by the holder to the Company as security for payment of the
unpaid balance of the loan, and such pledge shall be evidenced by a pledge
agreement, the terms of which shall be determined by the Administrator, in its
discretion; provided, however, that each loan shall comply with all applicable
laws, regulations and rules of the Board of Governors of the Federal Reserve
System and any other governmental agency having jurisdiction.

         (e)      No Stock Option shall be transferable by the optionee
otherwise than by will or by the laws of descent and distribution. Incentive
Stock Options shall be exercisable, during the optionee's lifetime, only by the
optionee.

         (f)      If an optionee's employment with the Company terminates by
reason of death or Disability, the Stock Option may thereafter be immediately
exercised, to the extent then exercisable (or on such accelerated basis as the
Administrator shall determine at or after grant), by the legal representative of
the optionee, by the legal representative of the estate of the optionee, or by
the legatee of the optionee under the will of the optionee, for a period of at
least six (6) months from the date of such death or Disability. In the event of
a termination of employment by reason of Disability, if an Incentive Stock
Option is exercised after the expiration of the exercise periods that apply for
purposes of Section 422 of the Code, such Stock Option shall thereafter be
treated as a Non-Qualified Stock Option.

         (g)      Except as otherwise provided in this paragraph or otherwise
determined by the Administrator, if an optionee's employment with the Company
terminates for any reason other than death or Disability (except for termination
for cause as defined by applicable law), the optionee must exercise his or her
Stock Options, to the extent then exercisable (or on such accelerated basis as
the Administrator shall determine at or after grant), within thirty (30) days
from the date of such termination. If the optionee does not exercise his or her
Stock Options within this thirty (30) day period, the Stock Options
automatically terminate, and such Stock Options become null and void.

         (h)      If the aggregate Fair Market Value (determined as of the date
the Incentive Stock Option is granted) of the shares of Stock with respect to
which Incentive Stock Options granted to an optionee under this Plan and all
other plans of the Company become exercisable for the first time by the optionee
during any calendar year exceeds $100,000, then such Stock Options shall be
treated as Non-Qualified Stock Options to the extent such exceeds $100,000.

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SECTION 6. DEFERRED STOCK AND RESTRICTED STOCK.

         (a)      Deferred Stock and Restricted Stock awards may be issued to
Eligible Persons either alone or in addition to other Awards granted under the
Plan. The Administrator shall determine the Eligible Persons, and the time or
times at which grants of Deferred Stock or Restricted Stock awards shall be
made; the number of shares to be awarded; the price to be paid by the recipient
of Deferred Stock or Restricted Stock awards; the Restricted Period (as defined
in paragraph 6(c) hereof) applicable to Deferred Stock or Restricted Stock
awards; the performance objectives applicable to Deferred Stock or Restricted
Stock awards; the date or dates on which restrictions applicable to such
Deferred Stock or Restricted Stock awards shall lapse during such Restricted
Period; and all other conditions of the Deferred Stock or Restricted Stock
awards. The purchase price of any Deferred Stock or Restricted Stock award must
be at least 85% of the Fair Market Value of the Stock at the time the
Participant is granted the right to purchase shares under the Plan, or at the
time the purchase is consummated. If a Participant owns or is deemed to own (by
reason of the attribution rules applicable under Section 424(d) of the Code)
more than 10% of the combined voting power of all classes of Stock of the
Company, than the purchase price of the Deferred Stock or Restricted Stock award
must be 100% of the Fair Market Value of the Stock either at the time the
Participant is granted the right to purchase shares under the Plan, or at the
time the purchase is consummated. The Administrator may also condition the grant
of Deferred Stock or Restricted Stock awards upon the exercise of Stock Options,
or upon such other criteria as the Administrator may determine, in its sole
discretion. The provisions of Deferred Stock or Restricted Stock awards need not
be the same with respect to each recipient.

         (b)      The prospective recipient of a Deferred Stock or Restricted
Stock award shall not have any rights with respect to such Award, unless and
until such recipient has executed an agreement evidencing the Award (a "Deferred
Stock Award Agreement" or "Restricted Stock Award Agreement" as appropriate) and
has delivered a fully executed copy thereof to the Company, within a period of
sixty days (or such other period as the Administrator may specify) after the
Award date.

         Except as provided below in this paragraph (b) of Section 6, (i) each
Participant who is awarded Restricted Stock shall be issued a stock certificate
in respect of such shares of Restricted Stock; and (ii) such certificate shall
be registered in the name of the Participant, and shall bear an appropriate
legend referring to the terms, conditions, and restrictions applicable to such
Award, substantially in the following form:

"The transferability of this certificate and the shares of stock represented
hereby are subject to the terms and conditions (including forfeiture) of the
BAM! Entertainment, Inc. 2003 Stock Option, Deferred Stock and Restricted Stock
Plan and a Restricted Stock Award Agreement entered into between the registered
owner and BAM! Entertainment, Inc. Copies of such Plan and Agreement are on file
in the offices of BAM! Entertainment, Inc."

         The Company shall require that the stock certificates evidencing such
shares be held in the custody of the Company until the restrictions thereon
shall have lapsed, and, as a condition of

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any Restricted Stock award, the Participant shall have delivered a stock power,
endorsed in blank, relating to the Stock covered by such Award.

         With respect to Deferred Stock awards, at the expiration of the
Restricted Period, stock certificates in respect of such shares of Deferred
Stock shall be delivered to the Participant, or his legal representative, in a
number equal to the shares of Stock covered by the Deferred Stock award.

         (c)      The Deferred Stock or Restricted Stock awards granted pursuant
to this Section 6 shall be subject to the following restrictions and conditions:

                  (i)      Subject to the provisions of the Plan and the
Deferred Stock or Restricted Stock Award Agreements, during such period as may
be set by the Administrator commencing on the grant date (the "Restricted
Period"), the Participant shall not be permitted to sell, transfer, pledge or
assign shares of Deferred Stock or Restricted Stock awarded under the Plan other
than by will or the laws of descent and distribution. Within these limits, the
Administrator may, in its sole discretion, provide for the lapse of such
restrictions in installments and may accelerate or waive such restrictions in
whole or in part based on such factors and such circumstances as the
Administrator may determine, in its sole discretion, including, but not limited
to, the attainment of certain performance related goals, the Participant's
termination, death or Disability or the occurrence of a "Change of Control" as
defined in Section 9 below; provided, however, that the restriction on
transferability referenced as above may not be waived.

                  (ii)     Except as provided in paragraph (c)(i) of this
Section 6, the Participant shall have, with respect to the shares of Restricted
Stock, all of the rights of a stockholder of the Company, including the right to
vote the shares, and the right to receive any dividends thereon during the
Restricted Period. With respect to Deferred Stock awards, the Participant shall
generally not have the rights of a stockholder of the Company, including the
right to vote the shares during the Restricted Period; provided, however, that
dividends declared during the Restricted Period with respect to the number of
shares covered by a Deferred Stock award shall be paid to the Participant.
Certificates for shares of unrestricted Stock shall be delivered to the
Participant promptly after, and only after, the Restricted Period shall expire
without forfeiture in respect of such shares of Deferred Stock or Restricted
Stock, except as the Administrator, in its sole discretion, shall otherwise
determine.

                  (iii)    Subject to the provisions of the Deferred Stock or
Restricted Stock Award Agreement and this Section 6, upon termination of
employment for any reason during the Restricted Period, all shares subject to
any restriction as of the date of such termination shall be forfeited by the
Participant, and the Participant shall only receive the amount, if any, paid by
the Participant for such Deferred Stock or Restricted Stock, plus simple
interest on such amount at the rate of 6% per year.

SECTION 7. AMENDMENT AND TERMINATION.

         (a)      The Board may amend, alter or discontinue the Plan, but no
amendment, alteration, or discontinuation shall be made that would impair the
rights of the Participant under

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any Award theretofore granted without such Participant's consent, or that
without the approval of the stockholders (as described below) would:

                  (i)      except as provided in Section 3, increase the total
number of shares of Stock reserved for the purpose of the Plan;

                  (ii)     change the employees or class of employees eligible
to participate in the Plan;

                  (iii)    extend the maximum option period under Section 5 of
the Plan.

         (b)      Notwithstanding the foregoing, stockholder approval under this
Section 7 shall only be required at such time and under such circumstances as
stockholder approval would be required under applicable federal and state laws,
regulations and exchange or listing requirements.

         (c)      The Administrator may amend the terms of any Award theretofore
granted, prospectively or retroactively, but, subject to Section 3, no such
amendment shall impair the rights of any holder without his or her consent.

SECTION 8. UNFUNDED STATUS OF PLAN.

         The Plan is intended to constitute an "unfunded" plan for incentive
compensation. With respect to any payments not yet made to a Participant or
optionee by the Company, nothing contained herein shall give any such
Participant or optionee any rights that are greater than those of a general
creditor of the Company.

SECTION 9. CHANGE OF CONTROL.

         The following acceleration and valuation provisions shall apply in the
event of a "Change of Control", as defined in paragraph (b) of this Section 9:

         (a)      In the event of a "Change of Control," (but prior to such
Change of Control, as applicable) the Board may, without limitation and in its
sole and absolute discretion, do any, or any combination, of the following:

                  (i)      declare that the restrictions applicable to any
Restricted Stock or Deferred Stock awards under the Plan shall lapse in full or
in part, and that such shares and Awards shall be deemed fully or partially
vested;

                  (ii)     declare that some or all indebtedness incurred
pursuant to paragraph (e) of Section 5 above shall be forgiven and the
collateral pledged in connection with any such loan shall be released in full or
in part;

                  (iii)    declare that the value of all or some of the
outstanding Awards shall, to the extent determined by the Administrator at or
after grant, be cashed out by a payment of cash or other property, as the
Administrator may determine, on the basis of the "Change of Control

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Price" (as defined in paragraph (c) of this Section 9) as of the date the Change
of Control occurs or such other date as the Administrator may determine prior to
the Change of Control; or

                  (iv)     permit the successor corporation (in the event of a
Change of Control pursuant to subparagraph (b)(ii) of this Section 9), pursuant
to a written agreement signed by the parties, to substitute equivalent Awards or
provide substantially similar consideration to Participants as was or will be
provided to stockholders after making any appropriate adjustment as such parties
deem necessary or appropriate for restrictions attaching to such Awards,
including, but not limited to, vesting and exercise price.

         A Participant's individual Award may, but is not required to, provide
what occurs upon a Change of Control. To the extent a Participant's individual
Award determines what occurs upon a Change of Control, the terms of such Award
shall be dispositive in the event of a Change of Control.

         (b)      For purposes of paragraph (a) of this Section 9, a "Change of
Control" shall be deemed to have occurred if:

                  (i)      any "person," as such term is used in Sections 13(d)
and 14(d) of the Exchange Act (other than the Company; any trustee or other
fiduciary holding securities under an employee benefit plan of the Company; or
any company owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of the Stock of the
Company) is or becomes after the Effective Date the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company (not including in the securities beneficially owned by
such person or any securities acquired directly from the Company or its
affiliates) representing 50% or more of the combined voting power of the
Company's then outstanding securities; or

                  (ii)     the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than (A) a merger
or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity), in combination with the ownership of any trustee or other
fiduciary holding securities under an employee benefit plan of the Company, at
least 75% of the combined voting power of the voting securities of the Company
or such surviving entity outstanding immediately after such merger or
consolidation or (B) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person
acquires more than 50% of the combined voting power of the Company's then
outstanding securities; or

                  (iii)    the stockholders of the Company approve a plan of
complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company's assets.

         (c)      For purposes of this Section 9, "Change of Control Price"
means the higher of (i) the highest price per share paid or offered in any
transaction related to a Change of Control of the Company or (ii) the highest
price per share paid in any transaction reported on the exchange or

                                       11
<PAGE>

national market system on which the Stock is listed, at any time during the
preceding sixty day period as determined by the Administrator, except that, in
the case of Incentive Stock Options, such price shall be based only on
transactions reported for the date on which the Administrator decides to cash
out such options.

SECTION 10. GENERAL PROVISIONS.

         (a)      The Administrator may require each person granted Awards to
represent to and agree with the Company in writing that such person is acquiring
the shares without a view to distribution thereof. The certificates for such
shares may include any legend which the Administrator deems appropriate to
reflect any restrictions on transfer.

         All certificates for shares of Stock delivered under the Plan shall be
subject to such stop-transfer orders and other restrictions as the Administrator
may deem advisable under the rules, regulations, and other requirements of the
Commission, any stock exchange or national market system upon which the Stock is
then listed, and any applicable Federal or state securities law, and the
Administrator may cause a legend or legends to be placed on any such
certificates to make appropriate reference to such restrictions.

         (b)      Nothing contained in the Plan shall prevent the Board from
adopting other or additional compensation arrangements, subject to stockholder
approval if such approval is required; and such arrangements may be either
generally applicable or applicable only in specific cases.

         (c)      Each Participant shall, no later than the date as of which the
value of an Award first becomes includable in the gross income of the
Participant for Federal income tax purposes, pay to the Company, or make
arrangements satisfactory to the Administrator regarding payment of, any
Federal, state, or local taxes of any kind required by law to be withheld with
respect to the Award. The obligations of the Company under the Plan shall be
conditional on the making of such payments or arrangements, and the Company
shall, to the extent permitted by law, have the right to deduct any such taxes
from any payment of any kind otherwise due to the Participant.

         (d)      No member of the Board or the Administrator, nor any officer
or employee of the Company acting on behalf of the Board or the Administrator,
shall be personally liable for any action, determination, or interpretation
taken or made in good faith with respect to the Plan, and all members of the
Board or the Administrator and each and any officer or employee of the Company
acting on their behalf shall, to the extent permitted by law, be fully
indemnified and protected by the Company in respect of any such action,
determination or interpretation.

         (e)      This Plan is purely voluntary on the part of the Company, and
while the Company hopes to continue it indefinitely, the continuance of the Plan
shall not be deemed to constitute a contract between the Company and any
employee or other person, or to be consideration for or a condition of the
employment of any employee. Nothing contained in the Plan shall be deemed to
give any employee the right to be retained in the employ of the Company, to
interfere with the right of the Company to discharge or retire any employee
thereof at any time. No employee shall have any right to or interest in Awards
authorized hereunder prior to the grant of such Awards to

                                       12
<PAGE>

such employee, and upon such grant he or she shall have only such rights and
interests as are expressly provided herein, subject, however, to all applicable
provisions of the Company's Certificate of Incorporation, as the same may be
amended from time to time.

         (f)      The Company shall deliver a balance sheet and an income
statement at least annually to each individual holding an outstanding Stock
Option or Award under the Plan, unless such individual is a key employee whose
duties with the Company (or any parent or subsidiary of the Company) assures
such individual access to equivalent information.

SECTION 11. SPECIFIC PERFORMANCE.

         The Stock Options granted under this Plan and the Shares issued
pursuant to the exercise of such Stock Options cannot be readily purchased or
sold in the open market, and, for that reason among others, the Company and its
stockholders will be irreparably damaged in the event that this Plan is not
specifically enforced. In the event of any controversy concerning the right or
obligation to purchase or sell any such Stock Option, such right or obligation
shall be enforceable in a court of equity by a decree of a specific performance.
Such remedy shall, however, be cumulative and not exclusive, and shall be in
addition to any other remedy which the parties may have.

SECTION 12. INVALID PROVISION.

         In the event that any provision of this Plan is found to be invalid or
otherwise unenforceable under any applicable law, such invalidity or
unenforceability shall not be construed as rendering any other provisions
contained herein invalid or unenforceable, and all such other provisions shall
be given full force and effect to the same extent as though the invalid
unenforceable provision was not contained herein.

SECTION 13. APPLICABLE LAW.

         This Plan shall be governed by and construed in accordance with the
laws of the State of Delaware.

SECTION 14. SUCCESSORS AND ASSIGNS.

         This Plan shall be binding on and inure to the benefit of the Company
and the employees to whom an Award is granted hereunder, and such employees'
heirs, executors, administrators, legatees, personal representatives, assignees
and transferees.

SECTION 15. EFFECTIVE DATE OF PLAN.

         The Plan became effective (the "Effective Date") on October 23, 2003.

                                       13
<PAGE>

SECTION 16. TERM OF PLAN.

         No Stock Option, Deferred Stock or Restricted Stock award shall be
granted pursuant to the Plan on or after the tenth anniversary of the Effective
Date, but Awards theretofore granted may extend beyond that date.

         IN WITNESS WHEREOF, pursuant to the due authorization and adoption of
this Plan by the Board on the day and year first above written, the Company has
caused this Plan to be duly executed by its duly authorized officer.

                                        BAM! ENTERTAINMENT, INC.,
                                        a Delaware corporation

                                        By:          /s/  Stephen Ambler
                                            -----------------------------------
                                            Name:  Stephen Ambler
                                            Title: Chief Financial Officer

                                       14<PAGE>
                                                                     EXHIBIT 4.2

                            BAM! ENTERTAINMENT, INC.

                        2003 STOCK OPTION, DEFERRED STOCK
                            AND RESTRICTED STOCK PLAN

                             STOCK OPTION AGREEMENT
                                   (EMPLOYEE)

NAME: ___________________

         This AGREEMENT is made effective as of the ___day of ___________,
_______ (the "Option Grant Date"), by and between BAM! Entertainment, Inc., a
Delaware corporation (the "Company") and ________________ (the "Optionee").

                                    RECITALS

         WHEREAS, the Company has established the 2003 Stock Option, Deferred
Stock and Restricted Stock Plan (the "Plan") effective as of October 23, 2003,
and

         WHEREAS, pursuant to the provisions of said Plan, the Administrator has
granted to the Participant (as defined in the Plan) by action duly taken on
________ __, 200_, (the "Award Date") a stock option award (the "Stock Option
Award") based upon the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of services rendered and to be
rendered by the Participant and the mutual promises and covenants made herein,
the mutual benefits to be derived therefrom and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

                                    AGREEMENT

         1.       The Option(s). The Optionee may, at his/her option, purchase
all or any part of an aggregate of __________ shares of Common Stock (the
"Optioned Shares"), at the price of $_________ per share (the "Option Price"),
on the terms and conditions set forth herein.

         2.       Option Type; Exercise Dates and Exercise. Options intended to
qualify as Incentive Stock Options are designated by an "ISO" under the category
"Type." Options intended as separate Non-Qualified Stock Options are designated
by a "NQSO" under the category "Type." The Option(s) shall be exercisable as to
the specified number of Optioned Shares on and after the "First" dates and on or
before the "Last" dates set forth below:

<PAGE>

Type             Number of Shares                 First and Last Date

         Optionee acknowledges that he/she understands he/she has no right
whatsoever to exercise the Option(s) granted hereunder with respect to any
Optioned Shares covered by any installment until such installment accrues (and
is thus vested) as provided above. Optionee further understands that the
Option(s) granted hereunder shall expire and become unexercisable as provided in
Section 4(c) below.

         3.       Method of Exercise. This Option shall be deemed exercised as
to the shares to be purchased when written notice of such exercise has been
given to the Company at its principal business office by the Optionee with
respect to the Common Stock to be purchased. Such notice shall be accompanied by
full payment in cash or cash equivalents as determined by the Administrator. As
determined by the Administrator, in its sole discretion, payment in whole or
part may also be made (i) in the form of unrestricted Stock already owned by the
Optionee, or, in the case of the exercise of a Non-Qualified Stock Option,
Restricted Stock subject to an Award hereunder (based, in each case, on the Fair
Market Value of the Stock), (ii) by cancellation of any indebtedness owed by the
Company to the Optionee, (iii) by a full recourse promissory note executed by
the Optionee, (iv) by requesting that the Company withhold whole shares of
Common Stock then issuable upon exercise of the Stock Option (based on the Fair
Market Value of the Stock), (v) by arrangement with a broker which is acceptable
to the Administrator where payment of the option price is made pursuant to an
irrevocable direction to the broker to deliver all or part of the proceeds from
the sale of the shares underlying the option to the Company, or (vi) by any
combination of the foregoing; provided, however, that in the case of an
Incentive Stock Option, the right to make payment in the form of already owned
shares may be authorized only at the time of grant. Any payment in the form of
Stock already owned by the Optionee may be effected by use of an attestation
form approved by the Administrator. If payment of the option exercise price of a
NQSO is made in whole or in part in the form of Restricted Stock or Deferred
Stock, the shares received upon the exercise of such Option (to the extent of
the number of shares of Restricted Stock or Deferred Stock surrendered upon
exercise of such Option) shall be restricted in accordance with the original
terms of the Restricted Stock or Deferred Stock award in question, except that
the Administrator may direct that such restrictions shall apply only to that
number of shares surrendered upon the exercise of such Option.

         4.       Governing Plan. This Agreement hereby incorporates by
reference the Plan and all of the terms and conditions of the Plan as heretofore
amended and as the same may be amended from time to time hereafter in accordance
with the terms thereof, but no such subsequent amendment shall adversely affect
the Optionee's rights under this Agreement and the Plan except as may be
required by applicable law. The Optionee expressly acknowledges and agrees that
the provisions of this Agreement are subject to the Plan; the terms of this
Agreement

                                       2

<PAGE>

shall in no manner limit or modify the controlling provisions of the Plan, and
in case of any conflict between the provisions of the Plan and this Agreement,
the provisions of the Plan shall be controlling and binding upon the parties
hereto. The Optionee also hereby expressly acknowledges, represents and agrees
as follows:

         (a)      Acknowledges receipt of a copy of the Plan, a copy of which is
attached hereto and by reference incorporated herein, and represents that he/she
is familiar with the terms and provisions of said Plan, and hereby accepts this
Agreement subject to all the terms and provisions of said Plan.

         (b)      Agrees to accept as binding, conclusive and final all
decisions or interpretations of the Administrator upon any questions arising
under the Plan.

         (c)      Acknowledges that he/she is familiar with Sections of the Plan
regarding the exercise of the Option(s) and represents that he/she understands
that said Option(s) must be exercised on or before the "Last" exercise date
noted above in Section 2 or such other date as set forth in the Plan, whichever
is earlier.

         (d)      Acknowledges, understands and agrees that the existence of the
Plan and the execution of this Agreement are not sufficient by themselves to
cause any exercise of any Option(s) granted as an Incentive Stock Option to
qualify for favorable tax treatment through the application of Section 422 of
the Internal Revenue Code; that Optionee must, in order to so qualify,
individually meet by his own action all applicable requirements of Section 422,
including without limitation the following holding period and employment
requirements:

                  (1)      holding period requirement: no disposition of an
Optioned Share may be made by Optionee within two (2) years from the date of the
granting of the Option(s) nor within one (1) year after the transfer of such
Optioned Share to him/her, and

                  (2)      employment requirement: at all times during the
period beginning on the date of the granting of the Option(s) and ending on the
day three (3) months before the date of exercise, the Optionee must have been an
employee of the Company, its Parent, or a Subsidiary of the Company, or a
corporation or a parent or subsidiary of such corporation issuing or assuming
the Option(s) in a transaction to which Section 425(a) of the Internal Revenue
Code applies, except where the termination of employment is by means of the
employee's disability, in which case said three (3) month period may be extended
to one (1) year, as provided under Internal Revenue Code Section 422.

         5.       Representations and Warranties. Optionee hereby represents to
the Company that each of the Options evidenced hereby and the shares purchasable
upon exercise thereof are being acquired only for investment and without any
present intention to sell or distribute such securities.

         6.       Options Not Transferable. No Stock Option shall be
transferable by the Optionee other than by will or by the laws of descent and
distribution. Incentive Stock Options shall be exercisable, during the
Optionee's lifetime, only by the Optionee or, with respect to Non-

                                       3

<PAGE>

Qualified Stock Options, in accordance with the terms of a qualified domestic
relations order.

         7.       No Enlargement of Employee Rights. Nothing in this Agreement
shall be construed to confer upon the Optionee (if an employee) any right to
continued employment with the Company or to restrict in any way the right of the
Company to terminate his/her employment. Optionee acknowledges that in the
absence of an express written employment agreement to the contrary, the Company
may terminate Optionee's employment with the Company at any time, with or
without cause.

         8.       Withholding of Taxes. Optionee authorizes the Company to
withhold, in accordance with any applicable law, from any compensation payable
to him any taxes required to be withheld by federal, state or local law as a
result of the grant of the Option(s) or the issuance of stock pursuant to the
exercise of such Option(s).

         9.       Laws Applicable to Construction. This Agreement shall be
construed and enforced in accordance with the laws of the State of Delaware.

         10.      Agreement Binding on Successors. The terms of this Agreement
shall be binding upon the executors, administrators, heirs, successors,
transferees and assignees of the Optionee.

         11.      Costs of Litigation. In any action at law or in equity to
enforce any of the provisions or rights under this Agreement or the Plan, the
unsuccessful party to such litigation, as determined by the court in a final
judgment or decree, shall pay the successful party or parties all costs,
expenses and reasonable attorneys' fees incurred by the successful party or
parties (including without limitation costs, expenses end fees on any appeals),
and if the successful party recovers judgment in any such action or proceeding
such costs, expenses and attorneys' fees shall be included as part of the
judgment.

         12.      Necessary Acts. The Optionee agrees to perform all acts and
execute and deliver any documents that may be reasonably necessary to carry out
the provisions of this Agreement, including but not limited to all acts and
documents related to compliance with federal and/or state securities laws.

         13.      Counterparts. For convenience this Agreement may be executed
in any number of identical counterparts, each of which shall be deemed a
complete original in itself and may be introduced in evidence or used for any
other purpose without the production of any other counterparts.

         14.      Invalid Provisions. In the event that any provision of this
Agreement is found to be invalid or otherwise unenforceable under any applicable
law, such invalidity or unenforceability shall not be construed as rendering any
other provisions contained herein invalid or unenforceable, and all such other
provisions shall be given full force and effect to the same extent as though the
invalid and unenforceable provision was not contained herein.

         15.      Limitation on Value of Optioned Shares. Optionee acknowledges
that the Plan provides that the aggregate fair market value (determined as of
the date hereof) of the shares of

                                       4

<PAGE>

Common Stock to which Options granted as Incentive Stock Options are exercisable
for the first time by Optionee during any calendar year under all incentive
stock option plans of the Company and any future Subsidiary shall not exceed
$100,000. It is understood and agreed that should it be determined that an
Option if granted as an Incentive Stock Option hereunder would exceed such
maximum, such Option shall be considered granted as a Non-Qualified Stock Option
to the extent, but only to the extent of such excess. This limitation shall not
apply to any option granted as a Non-Qualified Stock Option.

                                       5

<PAGE>

         IN WITNESS WHEREOF, the Company and the Optionee have executed this
Agreement effective as of the date first written hereinabove.

BAM! ENTERTAINMENT, INC.                        OPTIONEE

By:
      -------------------------------------     --------------------------------
      Name:
             ------------------------------
      Title:
             ------------------------------

                                                --------------------------------
                                                        (Print Name)

Address of Optionee:

-------------------------------------------     --------------------------------
-------------------------------------------           (Social Security)
-------------------------------------------

         By his or her signature below, the spouse of the Optionee, if such
Optionee be legally married as of the date of his execution of this Agreement,
acknowledges that he or she has read this Agreement and the Plan and is familiar
with the terms and provisions thereof, and agrees to be bound by all the terms
and conditions of said Agreement and said Plan document.

                                              ----------------------------------
                                              Spouse

                                              Dated:
                                                     ---------------------------

         By his or her signature below the Optionee represents that he or she is
not legally married as of the date of execution of this Agreement.

                                              ----------------------------------
                                              Optionee

                                              Dated:
                                                     ---------------------------

                                       6

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