Document:

EXHIBIT 4.1

AMERICAN CHAMPION ENTERTAINMENT, INC.
        2000 STOCK INCENTIVE PLAN

        ARTICLE 1.

        PURPOSE AND ADOPTION OF THE PLAN

        1.1. Purpose. The purpose of the American Champion Entertainment,
Inc. 2000 Stock Incentive Plan (hereinafter referred to as the "Plan") is
to assist in attracting and retaining highly competent key employees,
non-employee directors and consultants and to act as an incentive in
motivating key employees, non-employee directors, legal counsel and
consultants of American Champion Entertainment, Inc. and its Subsidiaries
(as defined below) to achieve long-term corporate objectives.

        1.2. Adoption and Term. The Plan has been approved by the Board of
Directors (hereinafter referred to as the "Board") of American Champion
Entertainment, Inc. (hereinafter referred to as the "Company"), to be
effective as of January 10, 2000 (the "Effective Date"). The Plan is
intended to be a broad based plan which all employees of the Company are
eligible for, and grants to be made to management personnel and members
of the board of directors shall not exceed 50% of the total number of
shares issuable under the Plan.  Therefore the Plan does not require
shareholder approval pursuant to applicable rules and regulations of the
Nasdaq Stock Market. The Plan shall remain in effect until terminated by
action of the Board.

        ARTICLE II.

        DEFINITIONS

        For the purposes of this Plan, capitalized terms shall have the
following meanings:

        2. 1. Award means any grant to a Participant of one or more of a
combination of Restricted Shares described in Article VII and Performance
Awards described in Article VIII.

        2.2. Award Agreement means a written agreement between the Company
and a Participant or a written notice from the Company to a Participant
specifically setting forth the terms and conditions of an Award granted
under the Plan.

        2.3. Award Period means, with respect to an Award, the period of
time set forth in the Award Agreement during which specified target
performance goals must be achieved or other conditions set forth in the
Award Agreement must be satisfied.

        2.4. Beneficiary means an individual, trust or estate who or which,
by a written designation of the Participant filed with the Company or by
operation of law, succeeds to the rights and obligations of the
Participant under the Plan and an Award Agreement upon the Participant's
death.

        2.5. Board means the Board of Directors of the Company.

        2.6. Change in Control means, and shall be deemed to have occurred
upon the occurrence of, any one of the following events:

                (a)     The acquisition in one or more transactions by any
individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act) (a "Person") of beneficial ownership
(within the meaning of Rule l3d-3 promulgated under the Exchange Act) of
shares or other securities (as defined in Section 3(a)(10) of the
Exchange Act) representing 30% or more of either (i) the Outstanding
Common Stock or (ii) the Company Voting Securities; provided, however,
that a Change in Control as defined in this clause (a) shall not be
deemed to occur in connection with any acquisition by the Company, an
employee benefit plan of the Company or any Person who immediately prior
to the Effective Date is a holder of Outstanding Common Stock or Company
Voting Securities (a "Current Stockholder") so long as such acquisition
does not result in any Person other than the Company, such employee
benefit plan or such Current Stockholder beneficially owning shares or
securities representing 30% or more of either the Outstanding Common
Stock or Company Voting Securities; or

                (b)     Any election has occurred of persons as directors of
the Company that causes two-thirds or more of the Board to consist of
persons other than (i) persons who, were members of the Board on the
Effective Date and (ii) persons who were nominated by the Board for
election as members of the Board at a time when at least two-thirds of
the Board consisted of persons who were members of the Board on the
Effective Date; provided, however, that any person nominated for election
by the Board when at least two-thirds of the members of the Board are
persons described in subclause (i) or (ii) and persons who were
themselves previously nominated in accordance with this clause (b) shall,
for this purpose, be deemed to have been nominated by a Board composed of
persons described in subclause (ii); or

                (c)     Approval by the stockholders of the Company of a
reorganization, merger, consolidation or similar transaction (a
"Reorganization Transaction"), in each case, unless, immediately
following such Reorganization Transaction, more than 50% of,
respectively, the outstanding shares of common stock (or similar equity
security) of the corporation or other entity resulting from or surviving
such Reorganization Transaction and the combined voting power of the
securities of such corporation or other entity entitled to vote generally
in the election of directors, is then beneficially owned, directly or
indirectly, by the individuals and entities who were the respective
beneficial owners of the Outstanding Common Stock and the Company Voting
Securities immediately prior to such Reorganization Transaction in
substantially the same proportions as their ownership of the Outstanding
Common Stock and Company Voting Securities immediately prior to such
Reorganization Transaction; or

                (d)     Approval by the stockholders of the Company of (i) a
complete liquidation or dissolution of the Company or (ii) the sale or
other disposition of all or substantially all of the assets of the
Company to a corporation or other entity, unless, with respect to such
corporation or other entity, immediately following such sale or other
disposition more than 50% of, respectively, the outstanding shares of
common stock (or similar equity security) of such corporation or other
entity and the combined voting power of the securities of such
corporation or other entity entitled to vote generally in the election of
directors, is then beneficially owned, directly or indirectly, by the
individuals and entities who were the respective beneficial owners of the
Outstanding Common Stock and the Company Voting Securities immediately
prior to such sale or disposition in substantially the same proportions
as their ownership of the Outstanding Common Stock and Company Voting
Securities immediately prior to such sale or disposition.

        2.7 Code means the Internal Revenue Code of 1986, as amended.
References to a section of the Code include that section and any
comparable section or sections of any future legislation that amends,
supplements or supersedes said section.

        2.8 Committee means the committee established in accordance with
Section 3.1.

        2. 9. Company means American Champion Entertainment, Inc., a
Delaware corporation, and its successors.

        2.10 Common Stock means Common Stock of the Company, par value
$0.0001 per share.

        2.11. Company Voting Securities means the combined voting power of
all outstanding securities of the Company entitled to vote generally in
the election of directors of the Company.

        2.12. Date of Grant means the date designated by the Committee as
the date as of which it grants an Award, which shall not be earlier than
the date on which the Committee approves the granting of such Award.

        2.13. Effective Date shall have the meaning given to such term in
Section 1.2.

        2.14. Exchange Act means the Securities Exchange Act of 1934, as
amended.

        2.15. Merger means any merger, reorganization, consolidation, share
exchange, transfer of assets or other transaction having similar effect
involving the Company.

        2.16. Non-Employee Director means a member of the Board who (i) is
not currently an officer or otherwise employed by the Company or a parent
or a subsidiary of the Company, (ii) does not receive compensation
directly or indirectly from the Company or a parent or a subsidiary of
the Company for services rendered as a consultant or in any capacity
other than as a director, except for an amount for which disclosure would
not be required pursuant to Item 404(a) of Regulation S-K, (iii) does not
possess an interest in any other transaction for which disclosure would
be required pursuant to Item 404(a) of Regulation S-K, and (iv) is not
engaged in a business relationship for which disclosure would be required
pursuant to Item 404(b) of Regulation S-K.

        2.17. Outstanding Common Stock means, at any time, the issued and
outstanding shares of Common Stock.

        2.18. Participant means a person designated to receive an Award
under the Plan in accordance with Section 5. 1.

        2.19. Performance Awards means Awards granted in accordance with
Article VIII.

        2.20. Plan means the American Champion Entertainment, Inc. 2000,
Stock Incentive Plan as described herein, as the same may be amended from
time to time.

        2.21 Restricted Shares means Common Stock subject to restrictions
imposed in connection with Awards granted under Article VII.

        2.22. Retirement means early or normal retirement under a pension
plan or arrangement of the Company or one of its Subsidiaries in which
the Participant participates.

        2.23. Subsidiary means a subsidiary of the Company within the
meaning of Section 424(f) of the Code.

        2.24. Termination of Employment means the voluntary or involuntary
termination of a Participant's employment with the Company or a
Subsidiary for any reason, including death, disability, retirement or as
the result of the divestiture of the Participant's employer or any
similar transaction in which the Participant's employer ceases to be the
Company or one of its Subsidiaries. Whether entering military or other
government service shall constitute Termination of Employment, or whether
a Termination of Employment shall occur as a result of disability, shall
be determined in each case by the Committee in its sole discretion. In
the case of a consultant who is not an employee of the Company or a
Subsidiary, Termination of Employment shall mean voluntary or involuntary
termination of the consulting relationship for any reason. In the case of
a Non-Employee Director, Termination of Employment shall mean voluntary
or involuntary termination, non-election, removal or other act which
results in such Non-Employee Director no longer serving in such capacity.

        ARTICLE III.

        ADMINISTRATION

        3.1. Committee. The Plan shall be administered by a committee of
the Board (the "Committee") comprised of at least one person. The
Committee shall have exclusive and final authority in each determination,
interpretation or other action affecting the Plan and its Participants.
The Committee shall have the sole discretionary authority to interpret
the Plan, to establish and modify administrative rules for the Plan, to
impose such conditions and restrictions on Awards as it determines
appropriate, and to take such steps in connection with the Plan and
Awards granted hereunder as it may deem necessary or advisable. The
Committee may, subject to compliance with applicable legal requirements,
with respect to Participants who are not subject to Section 16(b) of the
Exchange Act, delegate such of its powers and authority under the Plan as
it deems appropriate to designated officers or employees of the Company.
In addition, the Board may exercise any of the authority conferred upon
the Committee hereunder. In the event of any such delegation of authority
or exercise of authority by the Board, references in the Plan to the
Committee shall be deemed to refer to the delegate of the Committee or
the Board, as the case may be.

        ARTICLE IV.

        SHARES

        4.1. Number of Shares Issuable. The total number of shares
initially authorized to be issued under the Plan shall be 1,500,000
shares of Common Stock. The number of shares available for issuance under
the Plan shall be subject to adjustment in accordance with Section 9.7.
The shares to be offered under the Plan shall be authorized and unissued
shares of Common Stock, or issued shares of Common Stock which will have
been reacquired by the Company.

        ARTICLE V.

        PARTICIPATION

        5.1. Eligible Participants. Participants in the Plan shall be such
key employees, consultants, legal counsel and non-employee directors of
the Company and its Subsidiaries, whether or not members of the Board, as
the Committee, in its sole discretion, may designate from time to time.
The Committee's designation of a Participant in any year shall not
require the Committee to designate such person to receive Awards in any
other year. The designation of a Participant to receive an Award under
one portion of the Plan does not require the Committee to include such
Participant under other portions of the Plan. The Committee shall
consider such factors as it deems pertinent in selecting Participants and
in determining the types and amounts of their respective Awards. Subject
to adjustment in accordance with Section 9.7, during any fiscal year no
Participant shall be granted Awards in respect of more than 500,000
shares of Common Stock.

        ARTICLE VI.

        INTENTIONALLY LEFT BLANK

        ARTICLE VII.

        RESTRICTED SHARES

        7.1. Restricted Share Awards. The Committee may grant to any
Participant an Award of such number of shares of Common Stock on such
terms, conditions and restrictions, whether based on performance
standards, periods of service, retention by the Participant of ownership
of purchased or designated shares of Common Stock or other criteria, as
the Committee shall establish. It is not a criteria of the Plan that the
Restricted Shares be issued pursuant to any specific criteria. With
respect to performance-based Awards of Restricted Shares intended to
qualify for deductibility under Section 162(m) of the Code, performance
targets will include specified levels of one or more of operating income,
return or investment, return on stockholders' equity, earnings before
interest, taxes, depreciation and amortization and/or earnings per share.
The terms of any Restricted Share Award granted under this Plan shall be
set forth in an Award Agreement which shall contain provisions determined
by the Committee and not inconsistent with this Plan.

        (a)     Issuance of Restricted Shares. As soon as practicable after
the Date of Grant of a Restricted Share Award by the Committee, the
Company shall cause to be transferred on the books of the Company or its
agent, shares of Common Stock, registered on behalf of the Participant,
evidencing the Restricted Shares covered by the Award, subject to
forfeiture to the Company as of the Date of Grant if an Award Agreement
with respect to the Restricted Shares covered by the Award is not duly
executed by the Participant and timely returned to the Company. All
shares of Common Stock covered by Awards under this Article VII shall be
subject to the restrictions, terms and conditions contained in the Plan
and the applicable Award Agreements entered into by the appropriate
Participants. Until the lapse or release of all restrictions applicable
to an Award of Restricted Shares the share certificates representing such
Restricted Shares may be held in custody by the Company, its designee,
or, if the certificates bear a restrictive legend, by the Participant.
Upon the lapse or release of all restrictions with respect to an Award as
described in Section 7.1 (d), one or more share certificates, registered
in the name of the Participant, for an appropriate number of shares as
provided in Section 7.1 (d), free of any restrictions set forth in the
Plan and the related Award Agreement (however subject to any restrictions
that may be imposed by law) shall be delivered to the Participant.

                (b)     Stockholder Rights. Beginning on the Date of Grant of
a Restricted Share Award and subject to execution of the related Award
Agreement as provided in Section 7.1 (a), and except as otherwise
provided in such Award Agreement, the Participant shall become a
stockholder of the Company with respect to all shares subject to the
Award Agreement and shall have all of the rights of a stockholder,
including, but not limited to, the right to vote such shares and the
right to receive dividends; provided, however, that any shares of Common
Stock distributed as a dividend or otherwise with respect to any
Restricted Shares as to which the restrictions have not yet lapsed, shall
be subject to the same restrictions as such Restricted Shares and held or
restricted as provided in Section 7.1 (a).

                (c)     Registration of Shares. None of the Restricted Shares
may be sold, assigned, pledged, hypothecated or transferred without
Registration under the Securities Act of 1933 as amended or exemption
there from.  It is anticipated that at the time of issuance the Company
will have in effect a Registration Statement on Form S-8 or such other
comparable form such that the Restricted Shares will be registered for
resale upon issuance.

                (d)     Delivery of Shares Upon Vesting. Upon expiration or
earlier termination of the forfeiture period without a forfeiture and the
satisfaction of or release from any other conditions prescribed by the
Committee, or at such earlier time as provided under the provisions of
Section 7.3, the restrictions applicable to the Restricted Shares shall
lapse. As promptly as administratively feasible thereafter, subject to
the requirements of Section 9.5, the Company shall deliver to the
Participant or, in case of the Participant's death, to the Participant's
Beneficiary, one or more share certificates for the appropriate number of
shares of Common Stock, free of all such restrictions, except for any
restrictions that may be imposed by law.

        7.2. Terms of Restricted Shares.

                (a)     Forfeiture of Restricted Shares. Subject to Sections
7.2(b) and 7.3, Restricted Shares shall be forfeited and returned to the
Company and all rights of the Participant with respect to such Restricted
Shares shall terminate unless the Participant continues in the service of
the Company or a Subsidiary as an employee until the expiration of the
forfeiture period for such Restricted Shares and satisfies any and all
other conditions set forth in the Award Agreement. The Committee shall
determine the forfeiture period (which may, but need not, lapse in
installments) and any other terms and conditions applicable with respect
to any Restricted Share Award.

                (b)     Waiver of Forfeiture Period. Notwithstanding anything
contained in this Article VII to the contrary, the Committee may, in its
sole discretion, waive the forfeiture period and any other conditions set
forth in any Award Agreement under appropriate circumstances (including
the death, disability or Retirement of the Participant or a material
change in circumstances arising after the date of an Award) and subject
to such terms and conditions (including forfeiture of a proportionate
number of the Restricted Shares) as the Committee shall deem appropriate.

        7.3. Change in Control. Unless otherwise provided by the Committee
in the applicable Award Agreement, in the event of a Change in Control,
all restrictions applicable to the Restricted Share Award shall terminate
fully and the Participant shall immediately have the right to the
delivery of share certificates for such shares in accordance with Section
7.1 (d).

        ARTICLE VIII.

        PERFORMANCE AWARDS

        8.1. Performance Awards.

                (a)     Award Periods and Calculations of Potential Incentive
Amounts. The Committee may grant Performance Awards to Participants. A
Performance Award shall consist of the right to receive a payment
(measured by the Fair Market Value of a specified number of shares of
Common Stock, increases in such Fair Market Value during the Award Period
and/or a fixed cash amount) contingent upon the extent to which certain
predetermined performance targets have been met during an Award Period.
Performance Awards may be made in conjunction with, or in addition to,
Restricted Share Awards made under Article VII. The Award Period shall be
two or more fiscal or calendar years as determined by the Committee. The
Committee, in its discretion and under such terms as it deems
appropriate, may permit newly eligible employees, such as those who are
promoted or newly hired, to receive Performance Awards after an Award
Period has commenced.

                (b)     Performance Targets. The performance targets may
include such goals related to the performance of the Company and/or the
performance of a Participant as may be established by the Committee in
its discretion. In the case of Performance Awards intended to qualify for
deductibility under Section 162(m) of the Code, the targets will include
specified levels of one or more of operating income, return on
investment, return on stockholders' equity, earnings before interest,
taxes, depreciation and amortization and/or earnings per share. The
performance targets established by the Committee may vary for different
Award Periods and need not be the same for each Participant receiving a
Performance Award in an Award Period. Except to the extent inconsistent
with the performance-based compensation exception under Section 162(m) of
the Code, in the case of Performance Awards granted to employees to whom
such section is applicable, the Committee, in its discretion, but only
under extraordinary circumstances as determined by the Committee, may
change any prior determination of performance targets for any Award
Period at any time prior to the final determination of the value of a
related Performance Award when events or transactions occur to cause such
performance targets to be an inappropriate measure of achievement.

                (c)     Earning Performance Awards. The Committee, on or as
soon as practicable after the Date of Grant, shall prescribe a formula to
determine the percentage of the applicable Performance Award to be earned
based upon the degree of attainment of performance targets.

                (d)     Payment of Earned Performance Awards. Payments of
earned Performance Awards shall be made in cash or shares of Common Stock
or a combination of cash and shares of Common Stock, in the discretion of
the Committee. The Committee, in its sole discretion, may provide such
terms and conditions with respect to the payment of earned Performance
Awards as it may deem desirable.

        8.2. Terms of Performance Awards.

                (a)     Termination of Employment. Unless otherwise provided
below or in Section 8.3, in the case of a Participant's Termination of
Employment prior to the end of an Award Period, the Participant will not
have earned any Performance Awards for that Award Period.

                (b)     Retirement. If a Participant's Termination of
Employment is because of Retirement prior to the end of an Award Period,
the Participant will not be paid any Performance Award, unless the
Committee, in its sole and exclusive discretion, determines that an Award
should be paid. In such a case, the Participant shall be entitled to
receive a pro-rata portion of his or her Award as determined under
subsection (d) of this Section 8.2.

                (c)     Death or Disability. If a Participant's Termination
of Employment is due to death or to disability (as determined in the sole
and exclusive discretion of the Committee) prior to the end of an Award
Period, the Participant or the Participant's personal representative
shall be entitled to receive a pro-rata share of his or her Award as
determined under subsection (d) of this Section 8.2.

                (d)     Pro-Rata Payment. The amount of any payment to be
made to a participant whose employment is terminated by Retirement, death
or disability (under the circumstances described in subsections (b) and
(c)) will be the amount determined by multiplying (i) the amount of the
Performance Award that would have been earned through the end of the
Award Period had such employment not been terminated by (ii) a fraction,
the numerator of which is the number of whole months such Participant was
employed during the Award Period, and the denominator of which is the
total number of months of the Award Period. Any such payment made to a
Participant whose employment is terminated prior to the end of an Award
Period shall be made at the end of such Award Period, unless otherwise
determined by the Committee in its sole discretion. Any partial payment
previously made or credited to a deferred account for the benefit of a
Participant in accordance with Section 8. 1 (d) of the Plan shall be
subtracted from the amount otherwise determined as payable as provided in
this Section 8.2(d).

                (e)     Other Events. Notwithstanding anything to the
contrary in this Article VIII, the Committee may, in its sole and
exclusive discretion, determine to pay all or any portion of a
Performance Award to a Participant who has terminated employment prior to
the end of an Award Period under certain circumstances (including the
death, disability or Retirement of the Participant or a material change
in circumstances arising after the Date of Grant), subject to such terms
and conditions as the Committee shall deem appropriate.

        8.3. Change in Control. Unless otherwise provided by the Committee
in the applicable Award Agreement, in the event of a Change in Control,
all Performance Awards for all Award Periods shall immediately become
fully payable to all Participants and shall be paid to Participants
within thirty (30) days after such Change in Control.

        ARTICLE IX.

        TERMS APPLICABLE TO ALL AWARDS GRANTED UNDER THE PLAN

        9.1. Plan Provisions Control Award Terms. The terms of the Plan
shall govern all Awards granted under the Plan, and in no event shall the
Committee have the power to grant any Award under the Plan the terms of
which are contrary to any of the provisions of the Plan. In the event any
provision of any Award granted under the Plan shall conflict with any
term in the Plan as constituted on the Date of Grant of such Award, the
term in the Plan as constituted on the Date of Grant of such Award shall
control. Except as provided in Section 9.3 and Section 9.7, the terms of
any Award granted under the Plan may not be changed after the Date of
Grant of such Award so as to materially decrease the value of the Award
without the express written approval of the holder.

        9.2. Award Agreement. No person shall have any rights under any
Award granted under the Plan unless and until the Company and the
Participant to whom such Award shall have been granted shall have
executed and delivered an Award Agreement or the Participant shall have
received and acknowledged notice of the Award authorized by the Committee
expressly granting the Award to such person and containing provisions
setting forth the terms of the Award.

        9.3. Modification of Award After Grant. No Award granted under the
Plan to a Participant may be modified (unless such modification does not
materially decrease the value of that Award) after its Date of Grant
except by express written agreement between the Company and such
Participant, provided that any such change (a) may not be inconsistent
with the terms of the Plan, and (b) shall be approved by the Committee.

        9. 4. Limitation on Transfer. Except as provided in Section 7.1(c)
in the case of Restricted Shares, a Participant's rights and interest
under the Plan may not be assigned or transferred other than by will or
the laws of descent and distribution and, during the lifetime of a
Participant, only the Participant personally (or the Participant's
personal representative) may exercise rights under the Plan. The
Participant's Beneficiary may exercise the Participant's rights to the
extent they are exercisable under the Plan following the death of the
Participant.

        9. 5. Taxes. The Company shall be entitled, if the Committee deems
it necessary or desirable, to withhold (or secure payment from the
Participant in lieu of withholding) the amount of any withholding or
other tax required by law to be withheld or paid by the Company with
respect to any amount payable and/or shares issuable under such
Participant's Award and the Company may defer payment of cash or issuance
of shares upon exercise or vesting of an Award unless indemnified to its
satisfaction against any liability for any such tax. The amount of such
withholding or tax payment shall be determined by the Committee and shall
be payable by the Participant at such time as the Committee determines in
accordance with the following rules:

                (a)     The Participant shall have the right to elect to meet
his or her withholding requirement (i) by having withheld from such Award
at the appropriate time that number of shares of Common Stock, rounded up
to the next whole share, the Fair Market Value of which is equal to the
amount of withholding taxes due, (ii) by direct payment to the Company in
cash of the amount of any taxes required to be withheld with respect to
such Award or (iii) by a combination of withholding such shares and
paying cash.

                (b)     The Committee shall have the discretion as to any
Award to cause the Company to pay to tax authorities for the benefit of
the applicable Participant, or to reimburse such Participant for, the
individual taxes which are due on the grant, exercise or vesting of any
Award or the lapse of any restriction on any Award (whether by reason of
such Participant's filing of an election under Section 83(b) of the Code
or otherwise), including, but not limited to, Federal income tax, state
income tax, local income tax and excise tax under Section 4999 of the
Code, as well as for any such taxes as may be imposed upon such tax
payment or reimbursement.

                (c)     In the case of Participants who are subject to
Section 16 of the Exchange Act, the Committee may impose such limitations
and restrictions as it deems necessary or appropriate with respect to the
delivery or withholding of shares of Common Stock to meet tax withholding
obligations.

        9. 6. Surrender of Awards. Any Award granted under the Plan may be
surrendered to the Company for cancellation on such terms as the
Committee and the Participant approve.

        9. 7 Adjustments to Reflect Capital Changes.

                (a)     Recapitalization. The number and kind of shares
subject to outstanding Awards, the Purchase Price or Exercise Price for
such shares, the number and kind of shares available for Awards
subsequently granted under the Plan and the maximum number of shares in
respect of which Awards can be made to any Participant in any calendar
year shall be appropriately adjusted to reflect any stock dividend, stock
split, combination or exchange of shares, merger, consolidation or other
change in capitalization with a similar substantive effect upon the Plan
or the Awards granted under the Plan. The Committee shall have the power
and sole discretion to determine the amount of the adjustment to be made
in each case.

                (b)     Merger. After any Merger in which the Company is the
surviving corporation, each Participant shall, at no additional cost, be
entitled upon any exercise of an Option or receipt of any other Award to
receive (subject to any required action by stockholders), in lieu of the
number of shares of Common Stock receivable or exercisable pursuant to
such Award prior to such Merger, the number and class of shares or other
securities to which such Participant would have been entitled pursuant to
the terms of the Merger if, at the time of the Merger, such Participant
had been the holder of record of a number of shares of Common Stock equal
to the number of shares of Common Stock receivable or exercisable
pursuant to such Award. Comparable rights shall accrue to each
Participant in the event of successive Mergers of the character described
above. In the event of a Merger in which the Company is not the surviving
corporation, the surviving, continuing, successor or purchasing
corporation, as the case may be (the "Acquiring Corporation), will either
assume the Company's rights and obligations under outstanding Award
Agreements or substitute awards in respect of the Acquiring Corporation's
stock for outstanding Awards, provided, however, that if the Acquiring
Corporation does not assume or substitute for such outstanding Awards,
the Board shall provide prior to the Merger that any unexercisable and/or
unvested portion of the outstanding Awards shall be immediately
exercisable and vested as of a date prior to such merger or
consolidation, as the Board so determines. The exercise and/or vesting of
any Award that was permissible solely by reason of this Section 9.7(b)
shall be conditioned upon the consummation of the Merger. Any Options
which are neither assumed by the Acquiring Corporation not exercised as
of the date of the Merger shall terminate effective as of the effective
date of the Merger.

                (c)     Options to Purchase Shares or Stock of Acquired
Companies. After any merger in which the Company or a Subsidiary shall be
a surviving corporation, the Committee may grant substituted options
under the provisions of the Plan, pursuant to Section 424 of the Code,
replacing old options granted under a plan of another party to the merger
whose shares of stock subject to the old options may no longer be issued
following the merger. The manner of application of the foregoing
provisions to such options and any appropriate adjustments shall be
determined by the Committee in its sole discretion. Any such adjustments
may provide for the elimination of any fractional shares which might
otherwise become subject to any Options.

        9.8 No Right to Employment. No employee or other person shall have
any claim of right to be granted an Award under the Plan. Neither the
Plan nor any action taken hereunder shall be construed as giving any
employee any right to be retained in the employ of the Company or any of
its Subsidiaries.

        9.9. Awards Not Includable for Benefit Purposes. Payments received
by a Participant pursuant to the provisions of the Plan shall not be
included in the determination of benefits under any pension, group
insurance or other benefit plan applicable to the Participant which is
maintained by the Company or any of its Subsidiaries, except as may be
provided under the terms of such plans or determined by the Board.

        9.10. Governing Law. All determinations made and actions taken
pursuant to the Plan shall be governed by the laws of the State of
Delaware and construed in accordance therewith.

        9.11. No Strict Construction. No rule of strict construction shall
be implied against the Company, the Committee or any other person in the
interpretation of any of the terms of the Plan, any Award granted under
the Plan or any rule or procedure established by the Committee.

        9.12. Captions. The captions (i.e., all Section headings) used in
the Plan are for convenience only, do not constitute a part of the Plan,
and shall not be deemed to limit, characterize or affect in any way any
provisions of the Plan, and all provisions of the Plan shall be construed
as if no captions had been used in the Plan.

        9.13. Severability. Whenever possible, each provision in the Plan
and every Award at any time granted under the Plan shall be interpreted
in such manner as to be effective and valid under applicable law, but if
any provision of the Plan or any Award at any time granted under the Plan
shall be held to be prohibited by or invalid under applicable law, then
(a) such provision shall be deemed amended to accomplish the objectives
of the provision as originally written to the fullest extent permitted by
law and (b) all other provisions of the Plan, such Award and every other
Award at any time granted under the Plan shall remain in full force and
effect.

        9.14. Amendment and Termination.

                (a)     Amendment. The Board shall have complete power and
authority to amend the Plan at any time without the authorization or
approval of the Company's stockholders, unless the amendment (i)
materially increases the benefits accruing to Participants under the
Plan, (ii) materially increases the aggregate number of securities that
may be issued under the Plan or (iii) materially modifies the
requirements as to eligibility for participation in the Plan, but in each
case only to the extent then required by the Code or applicable law, or
deemed necessary or advisable by the Board. No termination or amendment
of the Plan may, without the consent of the Participant to whom any Award
shall theretofore have been granted under the Plan, materially adversely
affect the right of such individual under such Award.

                (b)     Termination. The Board shall have the right and the
power to terminate the Plan at any time. No Award shall be granted under
the Plan after the termination of the Plan, but the termination of the
Plan shall not have any other effect and any Award outstanding at the
time of the termination of the Plan may be exercised after termination of
the Plan at any time prior to the expiration date of such Award to the
same extent such Award would have been exercisable had the Plan not been
terminated.

<PAGE>EXHIBIT 4.2

                           STOCK GRANT AGREEMENT
                               Pursuant to
                     American Champion Entertainment, Inc.
                          2000 Stock Incentive Plan

This Stock Grant Agreement (the "Agreement"), dated _________________ , 2000,
is made by and between American Champion Entertainment,  Inc., a Delaware
corporation (the "Company"), and ________________________ (the "Grantee").

The Grantee is a ______________________________ of the  Company.

For Grantee's service to the Company including ______________________________

the Compensation Committee (the "Committee") of the Board of Directors  has
determined  that it is in the best interests of the Company to issue  to the
Grantee restricted common stock of the Company as compensation  for said
services that the Grantee has rendered and will continue to  render to the
Company, on the terms and conditions set forth herein.

In consideration of the premises and the mutual agreements set  forth below,
the parties hereto agree as follows:

1.      Grant of Stock.  Pursuant to the terms and conditions set  forth
herein, the Company hereby grants and issues to the Grantee (the  "Grant") as
of the date hereof (the "Grant Date"), up to an aggregate of  _________________
shares (the "Shares") of common stock,  par value  $.0001 per share, of the
Company (the "Common Stock") as hereinafter  provided.

2.      Non-transferability.  Until the Shares hereunder shall vest  in
accordance with Section 3 hereof, the Shares and any other rights  granted
hereunder shall not be transferable or assignable by the Grantee  (whether by
operation of law or otherwise) except by will or the laws of  descent and
distribution or, if then permitted under Rule 16b-3,  pursuant to a qualified
domestic relations order as defined under the  Code or Title I of the Employee
Retirement Income Security Act of 1974,  as amended, or the rules thereunder.

3.      Vesting of Shares.  Subject to the other terms set forth  herein, the
Shares will vest with the Grantee in full on ______________ , 2000.

4.      Taxes.  The Company or any Subsidiary or Affiliate is  authorized to
withhold from any distribution of Shares amounts of  withholding and other
taxes due in connection with any transaction  involving the Grant, and to take
such other action as the Committee may  deem advisable to enable the Company or
such Subsidiary or Affiliate and  the Grantee to satisfy obligations for the
payment of withholding taxes  and other tax obligations relating to the Grant,
if any.  This authority  shall include authority to withhold or receive Shares
or other property  and to make cash payments in respect thereof in satisfaction
of the  Grantee's tax obligations.

5.      Termination of Employment.  Upon termination of Grantee's  employment
for any reason, including the breach by the Grantee of the  employment
agreement among the Grantee and the Company or its  subsidiaries, if any, any
Shares not already vested in accordance with  Section 3 hereof, shall be
subject to immediate forfeiture in all  respects and Grantee shall have no
right or claim to any such unvested  Shares.

6.      Adjustments.  In the event that the Committee shall  determine, in its
sole discretion, that any dividend or other  distribution (whether in the form
of cash, shares of Common Stock or  other property), recapitalization, stock
split, reverse split, any  reorganization, merger, consolidation, spin-off,
combination,  repurchase, share exchange,  license arrangement, strategic
alliance or  other similar corporate transaction or event affects  the Shares
such  that an adjustment is appropriate to prevent dilution or enlargement of
the rights of the Grantee, then the Committee shall make such equitable
changes or adjustments as it deems necessary or appropriate to any or  all of
the number and kind of Shares which may thereafter be issued in  connection
herewith.

7.      No Rights as Stockholder.  The Grantee shall have no rights  as a
stockholder with respect to any Shares subject to the Grant prior  to the date
on which such Shares shall vest in accordance with Section 3  hereof.

        8.      Representations of the Company.

a.  Organization and Standing.  The Company is a corporation  duly organized,
validly existing and in good standing under the laws of the State of  Delaware.

                b.  Corporate Power.  The Company has all necessary  corporate
power and authority to execute, deliver and perform this Agreement and the
transactions contemplated  hereby, and has all requisite corporate power  and
authority to issue the Shares hereunder and to carry out the  transactions
contemplated hereby.

c.  Shares.  Upon issuance, the Shares will be duly  authorized, validly
issued,  fully paid and nonassessable, and issued in  accordance with
applicable laws.

9.  Representations of the Grantee.

a.  Authority.  The Grantee has duly executed and delivered  this Agreement to
the Company, and its obligations hereunder are the  legal, valid and binding
obligations of the Grantee and are enforceable  in accordance with their terms.

b.  Restriction on Transfer; Risk of Forfeiture.  The  Grantee hereby
acknowledges and agrees that the Shares have not been  registered under the
Securities Act of 1933, as amended (the "Act"), or  qualified with the
securities regulatory agency of any state and may not  be resold or otherwise
disposed of unless registered under the Act or  qualified with the securities
regulatory agency of any state which has  jurisdiction over any such transfer
or unless an exemption from such  registration or qualification is available.
The Grantee will transfer  the Shares only in accordance with the applicable
requirements of all  federal and state securities laws.  The Grantee
acknowledges that the  certificate(s) evidencing the Shares will bear a legend
regarding  restriction on transfer.  The Grantee further acknowledges that the
Shares are subject to a substantial risk of forfeiture as set forth in  Section
5 hereof.

c. Investment.  The Grantee is receiving the Shares for its  own account, for
investment purposes only, and not for the account of  any other person, and not
with a view to, or for offer or sale in  connection with, any distribution,
assignment or resale to others or to  fractionalization in whole or in part.

10.     No Rights to Continued Employment.  Nothing in the Grant or  this
Agreement  shall confer upon the Grantee the right to continue in  service or
be entitled to any  remuneration or benefits not set forth in  this Agreement
or to interfere with or limit in any way the right of the  Company or any
Subsidiary or Affiliate to terminate the Grantee's  service as an officer of
the Company or any Subsidiary or Affiliate.

11.     Compliance with Legal and Exchange Requirements.  The  granting,
issuance and delivery of the Shares pursuant to the terms of this Agreement and
the other obligations of the Company hereunder shall be subject to all
applicable federal and state laws, rules and  regulations,  and to such
approvals by any regulatory or governmental agency as may be required.   The
Company, in its discretion, may postpone the issuance or delivery of  Shares
hereunder until completion of such stock exchange listing or  registration or
qualification of such Shares or other required action  under any state, federal
or foreign law, rule or regulation as the  Company may consider appropriate,
and may require the Grantee to make  such representations and furnish such
information as it may consider  appropriate in connection with the issuance or
delivery of Shares in  compliance with applicable laws, rules and regulations.

12.     Change in Control Provisions.  In the event of a Change in  Control, as
defined in the 2000 Stock Incentive Plan (the "Plan"), the  Shares shall become
fully vested, whether or not theretofore vested as  forth herein, as more fully
described within the Plan.

13.     Notices.  All notices or any other communications hereunder  shall be
in writing and delivered personally or by registered or  certified mail or
overnight courier, addressed, if to the Company, to  American Champion
Entertainment, Inc., 1694 The Alameda, Suite 100, San  Jose, California 95126,
Attention:  Secretary; and if to the Grantee, at  the address set forth on the
signature page hereof, subject to the right  of either party to designate at
any time hereafter in writing some other  address.

14.     Governing Law.  This Agreement shall be governed by and  construed in
accordance with the laws of the State of California without  giving effect to
the conflict of laws principles thereof.

15.     No Assignment.  Neither this Agreement nor any of the rights  or
obligations of the Grantee hereunder may be transferred or assigned  by the
Grantee except as set forth in paragraph 2 hereof.

16.     Benefits.  This Agreement shall be binding upon and inure to  the
benefit of the parties hereto.  This Agreement is for the sole  benefit of the
parties hereto and not for the benefit of any other  party.

17.     Severability.  If any provision of this Agreement shall be  determined
to be illegal and unenforceable by any court of law, the  remaining provisions
shall be severable and enforceable in accordance  with their terms.

18.     Amendments.  No modification, amendment or waiver or any  provision of
this  Agreement shall be effective unless it is in writing  and signed by the
parties hereto.

19.     Counterparts.  This Agreement may be executed in  counterparts, each of
which shall constitute one and the same  instrument.

         IN WITNESS  WHEREOF,  the  Company  has  caused  this   Agreement  to
be executed  by  the  Chief  Executive  Officer,  and   Grantee  has  executed
this Agreement, both as of the day and year  first above written.

AMERICAN CHAMPION ENTERTAINMENT, INC.

By: __________________________________
     Anthony K. Chan, President & CEO

GRANTEE

By: __________________________________

Name in print: _______________________

Address: _____________________________

<PAGE>

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