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                                                                 EXHIBIT 10.11

                       MURDOCK COMMUNICATIONS CORPORATION
                             1997 STOCK OPTION PLAN


This Stock Option Plan, hereinafter referred to as the Plan, is adopted by
Murdock Communications Corporation, an Iowa Corporation.

1.       Purpose. The purpose of this Plan is to strengthen Murdock
         Communications Corporation by providing an incentive to its key
         employees and directors thereby encouraging them to devote their
         abilities and industry to the success of the Company's business
         enterprise. It is intended that this purpose be achieved by extending
         to key employees and directors of the Company an added long-term
         incentive for high levels of performance and unusual efforts through
         the grant of options to purchase shares of the Company's common stock
         under the Murdock Communications Corporation 1997 Stock Option Plan.

2.       Definitions.  For purposes of the Plan:

         (a)      "Agreement" means the written agreement between the Company
                  and an Optionee evidencing the grant of an Option and setting
                  forth the terms and conditions thereof.

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

         (c)      "Cause" means (i) intentional failure to perform reasonably
                  assigned duties, (ii) dishonesty or willful misconduct in the
                  performance of an Optionee's duties, (iii) any act of (A)
                  fraud or intentional misrepresentation, or (B) embezzlement,
                  misappropriation or conversion of assets or opportunities of
                  the Company or (iv) willful violation of any law, rule or
                  regulation in connection with the performance of an Optionee's
                  duties (other than traffic violations or similar offenses).

         (d)      "Change in Capitalization" means any increase or reduction in
                  the number of Shares, or any change (including, but not
                  limited to, a change in value) in the Shares or exchange of
                  Shares for a different number or kind of shares or other
                  securities of the Company, by reason of a reclassification,
                  recapitalization, merger, consolidation, reorganization, stock
                  dividend, stock split or reverse stock split, combination or
                  exchange of shares or other similar events.

         (e)      A "Change in Control" shall be deemed to have occurred upon
                  the approval by the Company's stockholders of (i) a merger or
                  consolidation of the Company with or into another Corporation
                  (other than a merger or consolidation in which the Company is
                  the surviving corporation and which does not result in any
                  capital reorganization or reclassification or other change in
                  the Company's then outstanding shares of common stock); (ii) a

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          sale or disposition of all or substantially all of the Company's
          assets; or (iii) a plan of liquidation or dissolution of the Company.

     (f)  "Code" means the Internal Revenue Code of 1986, as amended.

     (g)  "Committee" means a committee consisting solely of at least two (2)
          nonemployee Directors appointed by the Board to administer the Plan
          and to perform the functions set forth herein.

     (h)  "Company" means Murdock Communications Corporation, an Iowa based
          corporation.

     (i)  "Director Option" means an Option granted to a Nonemployee Director
          pursuant to Section 5.

     (j)  "Disability" means a physical or mental infirmity which impairs the
          Optionee's ability to perform substantially his or her duties for a
          period of one hundred eighty (180) consecutive days.

     (k)  "Eligible Employee" means any officer or other key employee of the
          Company or a Subsidiary designated by the Committee as eligible to
          receive Options subject to the conditions set forth herein.

     (l)  "Employee Options" means an Option granted to an Eligible Employee
          pursuant to Section 6.

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

     (n)  "Fair Market Value" on any date means the closing price of the Shares
          on such date on the principal national securities exchange on which
          such Shares are listed or admitted to trading, or if such Shares are
          not so listed or admitted to trading, the arithmetic mean of the per
          Share closing bid price and per Share closing asked price on such date
          as quoted on the National Association of Securities Dealers Automated
          Quotation System or such then market in which such prices are
          regularly quoted, or, if there have been no published bid or asked
          quotations with respect to Shares on such date, the Fair Market Value
          shall be the value established by the Board in good faith and in
          accordance with Section 422 of the Code.

     (o)  "Incentive Stock Option" means an Option satisfying the requirements
          of Section 422 of the Code and designated by the Committee as an
          Incentive Stock Option.

     (p)  "Nonqualified Stock Option" means an Option which is not an Incentive
          Stock Option.


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     (q)  "Nonemployee Director" means a director of the Company who is not an
          employee of the Company or any Subsidiary.

     (r)  "Option" means an Employee Option, a Director Option, or either or
          both of them.

     (s)  "Optionee" means a person to whom an Option has been granted under the
          Plan.

     (t)  "Parent" means any corporation which is a parent corporation (within
          the meaning of Section 424(e) of the Code) with respect to the
          Company.

     (u)  "Plan" means the Murdock Communications Corporation 1997 Stock Option
          Plan.

     (v)  "Shares" means the common stock, no par value per share, of the
          Company.

     (w)  "Subsidiary" means any corporation which is a subsidiary corporation
          (within the meaning of Section 424(f) of the Code) with respect to the
          Company.

     (x)  "Successor Corporation" means a corporation, or a parent or subsidiary
          thereof within the meaning of Section 424(a) of the Code, which issues
          or assumes a stock option in a transaction to which Section 424(a) of
          the Code applies.

     (y)  "Ten-Percent Stockholder" means an Eligible Employee, who, at the time
          an Incentive Stock Option is to be granted to him or her, owns (within
          the meaning of Section 422(b) (6) of the Code) stock possessing more
          than ten percent (10%) of the total combined voting power of all
          classes of stock of the Company, or of a Parent or a Subsidiary.

3.       Administration.

     (a)  The Plan shall be administered by the Committee which shall hold
          meetings at such times as may be necessary for the proper
          administration of the Plan. The Committee shall keep minutes of its
          meetings. A quorum shall consist of not less than two members of the
          Committee and a majority of a quorum may authorize any action. Any
          decision or determination reduced to writing and signed by a majority
          of all of the members shall be as fully effective as if made by a
          majority vote at a meeting duly called and held. No member of the
          Committee shall be liable for any action, failure to act,
          determination or interpretation made in good faith with respect to
          this Plan or any transaction hereunder, except for liability arising
          from his or her own willful misfeasance, gross negligence or reckless
          disregard of his or her duties. The Company hereby agrees to indemnify
          each member of the 


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          Committee for all costs and expenses and, to the extent permitted by
          applicable law, any liability incurred in connection with defending
          against, responding to, negotiation for the settlement of or otherwise
          dealing with any claim, cause of action or dispute of any kind arising
          in connection with any actions in administering this Plan or in
          authorizing or denying authorization to any transaction hereunder.

     (b)  Subject to the express terms and conditions set forth herein, the
          Committee shall have the power from time to time to determine those
          Eligible Employees to whom Employee Options shall be granted under the
          Plan and the number of Incentive Stock Options and/or Nonqualified
          Stock Options to be granted to each Eligible Employee and to prescribe
          the terms and conditions (which need not be identical) of each
          Employee Option, including the purchase price per Share subject to
          each Employee Option, and make any amendment or modification to any
          agreement consistent with the terms of the Plan;

     (c)  Subject to the express terms and conditions set forth herein, the
          Committee shall have the power from time to time:

          (1)      to construe and interpret the Plan and the Options granted
                   thereunder and to establish, amend and revoke rules and
                   regulations for the administration of the Plan, including,
                   but not limited to, correcting any defect or supplying any
                   omission, or reconciling any inconsistency in the Plan or in
                   any Agreement, in the manner and to the extent it shall deem
                   necessary or advisable to make the Plan fully effective, and
                   all decisions and determinations by the Committee in the
                   exercise of this power shall be final, binding and conclusive
                   upon the Company, its Subsidiaries, the Optionees and all
                   other persons having any interest therein;

          (2)      to determine the duration and purposes for leaves of absence
                   which may be granted to an Optionee on an individual basis
                   without constituting a termination of employment or service
                   for purposes of the Plan;

          (3)      to exercise its discretion with respect to the powers and
                   rights granted to it as set forth in the Plan;

          (4)      generally, to exercise such powers and to perform such acts
                   as are deemed necessary or advisable to promote the best
                   interests of the Company with respect to the Plan.


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4        Stock Subject to Program.

         (a)    The maximum number of Shares that may be made the subject of
                Options granted under the Plan is as follows: 5% of the
                Company's fully diluted Common Shares less those Incentive Stock
                Options already outstanding with respect to Incentive Stock
                Options; 5% of the Company's fully diluted Common Shares with
                respect to Nonqualified Stock Options and Director Options (or,
                in each case, the number and kind of shares of stock or other
                securities to which such Shares are adjusted upon a Change in
                Capitalization pursuant to Section 8) and the Company shall
                reserve for the purposes of the Plan, out of its authorized but
                unissued Shares or out of Shares held in the Company's treasury,
                or partly out of each, such number of Shares as shall be
                determined by the Board.

         (b)    Whenever any outstanding Option or portion thereof expires, is
                canceled or is otherwise terminated for any reason (other than
                upon the surrender of the Option pursuant to Section 7(e)
                hereof), the Shares allocable to the canceled or otherwise
                terminated Option or portion thereof may again be the subject of
                Options granted hereunder.

         (c)    Stock certificates representing Shares purchased under the Plan
                shall be conspicuously endorsed with the following legend:

                "The shares of stock represented by this certificate are subject
                to certain restrictions on transfer contained in the
                corporation's Stock Option Plan, a copy of which is on file at,
                and will be furnished without charge to the record holder of
                this certificate upon written request to, the corporation's
                principal place of business or registered office."

5.       Option Grants for Nonemployee Directors.

         (a)    Grant. Subject to the provisions of the Plan and to Section 4(a)
                above, the Committee shall have full and final authority to
                select those Nonemployee Directors who will receive Director
                Options, the terms and conditions of which shall be set forth in
                an Agreement. The purchase price therefor of each Director
                Option shall be as provided in this Section 5 and such Director
                Options shall be exercisable, in whole or in part, in four equal
                installments as follows: (i) with respect to the first
                installment, immediately upon execution and delivery of the
                Director Option (the "Grant"), (ii) with respect to the second
                installment, on December 31, of the year of the Grant, (iii)
                with respect to the third installment, on December 31 of the
                year next succeeding the year of the Grant, and (iv) with
                respect to the last installment, on December 31 of the year two
                years after the date of the Grant. Such Director Options shall
                be evidenced by an Agreement containing such other terms and
                conditions not inconsistent with the provisions of this Plan as
                determined by the Board.


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         (b)    Purchase Price. The purchase price for Shares under each
                Director Option shall be at least equal to 100% of the Fair
                Market Value of a Share on the date the Director Option is
                granted.

         (c)    Duration. Director Options shall be for a term of ten (10)
                years.

6.       Option Grants for Eligible Employees.

         (a)    Grant. Subject to the provisions of the Plan and to Section 4(a)
                above, the Committee shall have full and final authority to
                select those Eligible Employees who will receive Employee
                Options, the terms and conditions of which shall be set forth in
                an Agreement; provided; however, that no Eligible Employee shall
                receive any Incentive Stock Options unless he is an employee of
                the Company, a Parent or a Subsidiary at the time the Incentive
                Stock Option is granted.

         (b)    Purchase Price. The purchase price or the manner in which the
                purchase price is to be determined for Shares under each
                Employee Option shall be determined by the Committee and set
                forth in the Agreement, provided that the purchase price per
                Share under each Incentive Stock Option shall not be less than
                100% of the Fair Market Value of a Share on the date the
                Employee Option is granted (110% in the case of an Incentive
                Stock Option granted to a Ten-Percent Stockholder).

         (c)    Duration. Employee Options granted hereunder shall be for such
                term as the Committee shall determine, provided that no Employee
                Option shall be exercisable after the expiration of ten (10)
                years from the date it is granted (five (5) years in the case of
                an Incentive Stock Option granted to a Ten-Percent Stockholder).
                The Committee may, subsequent to the granting of any Employee
                Option, extend the term thereof but in no event shall the term
                as so extended exceed the maximum term provided for in the
                preceding sentence.

         (d)    Modification or Substitution. The Committee may, in its
                discretion, modify outstanding Employee Options or accept the
                surrender of outstanding Employee Options (to the extent not
                exercised) and grant new Options in substitution for them.
                Notwithstanding the foregoing, no modification of an Employee
                Option shall adversely alter or impair any rights or obligations
                under the Employee Option without the Optionee's consent.

7.       Terms and Conditions Applicable to All Options

         (a)    Non-transferability. No Option granted hereunder shall be
                transferable by Optionee to whom granted otherwise than by will
                or the laws of descent and distribution, and an Option may be
                exercised during the lifetime of such Optionee only by the
                Optionee or his or her guardian or legal 


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                representative. The terms of such Option shall be final, binding
                and conclusive upon the beneficiaries, executors,
                administrators, heirs and successors of the Optionee.

         (b)    Vesting and Method of Exercise.

                (1)   Subject to Section 7(e) hereof, each Option shall become
                      exercisable in the manner, including installments (which
                      need not be equal), and at such times as may be designated
                      by the Committee and set forth in the Agreement. 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
                      Option expires; provided, however, that the Agreement may
                      provide for the forfeiture of vested and non-vested
                      Options upon the occurrence of specified events. The
                      Committee may accelerate the exercisability of any Option
                      or portion thereof at any time.

                (2)   The exercise of an Option shall be made only by a written
                      notice delivered in person or by mail to the Secretary of
                      the Company at the Company's principal executive office,
                      specifying the number of Shares to be purchased and
                      accompanied by payment therefor and otherwise in
                      accordance with the Agreement pursuant to which the Option
                      was granted. The purchase price for any Shares purchased
                      pursuant to the exercise of an Option shall be paid in
                      full upon such exercise, by any one or a combination of
                      the following: (i) cash or (ii) transferring Shares to the
                      Company upon such terms and conditions as determined by
                      the Committee. The written notice pursuant to this Section
                      7(b)(2) may also provide instructions from the Optionee to
                      the Company that upon receipt of the purchase price in
                      cash from the Optionee's broker or dealer, designated as
                      such on the written notice, in payment for any Shares
                      purchased pursuant to the exercise of an Option, the
                      Company shall issue such Shares directly to the designated
                      broker or dealer. Any Shares transferred to the Company as
                      payment of the purchase price under an Option shall be
                      valued at their Fair Market Value on the day preceding the
                      date of exercise of such Option. If requested by the
                      Committee, the Optionee shall deliver the Agreement
                      evidencing the Option to the Secretary of the Company who
                      shall endorse thereon a notation of such exercise and
                      retum such Agreement to the Optionee. No fractional Shares
                      (or cash in lieu thereof) shall be issued upon exercise of
                      an Option and the number of Shares that may be purchased
                      upon exercise shall be rounded to the nearest number of
                      whole Shares.

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         (c)      Rights of Optionees. No Optionee shall be deemed for any
                  purpose to be the owner of any Shares subject to any Option
                  unless and until (i) the Option shall have been exercised
                  pursuant to the terms thereof, (ii) the Company shall have
                  issued and delivered the Shares to the Optionee and (iii) the
                  Optionee's name shall have been entered as a stockholder of
                  record on the books of the Company. Thereupon, the Optionee
                  shall have full voting, dividend and other ownership rights
                  with respect to such Shares.

         (d)      Termination of Employment or Service. Unless otherwise
                  provided in the Agreement evidencing the Option, an Option
                  shall terminate upon or following an Optionee's termination of
                  employment with the Company and its Subsidiaries or service as
                  a director of the Company and its Subsidiaries as follows:

                  (1)      if an Optionee's employment or service as a director
                           terminates for any reason other than death,
                           Disability or Cause, the Optionee may at any time
                           within three (3) months after his or her termination
                           of employment or service as a director, exercise an
                           Option to the extent, and only to the extent, that
                           the Option or portion thereof was exercisable on the
                           date of termination;

                  (2)      in the event the Optionee's employment or service as
                           a director terminates as a result of Disability, the
                           Optionee may at any time within one (1) year after
                           such termination exercise such Option to the extent,
                           and only to the extent, the Option or portion thereof
                           was exercisable at the date of such termination;

                  (3)      if an Optionee's employment or service as a director
                           terminates for Cause, the Option shall terminate
                           immediately and no rights thereunder may be
                           exercised;

                  (4)      if an Optionee dies while a director or an employee
                           of the Company or any Subsidiary or within three
                           months after termination as described in clause (1)
                           of this Section 7(d) or within one (1) year after
                           termination as a result of Disability as described in
                           clause (2) of this Section 7(d), the Option may be
                           exercised at any time within one (1) year after the
                           Optionee's death by the person or persons to whom
                           such rights under the Option shall pass by will or by
                           the laws of descent and distribution; provided,
                           however, that an Option may be exercised to the
                           extent, and only to the extent, that the Option or
                           portion thereof was exercisable on the date of death
                           or earlier termination.

                  Notwithstanding the foregoing, (i) in no event may any Option
                  be exercised by anyone after the expiration of the term of the
                  Option and (ii) a termination of service as a director shall
                  not be deemed to occur so long as 


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                  the director continues to serve the Company as either a 
                  director or director emeritus.

         (e)      Effect of Change in Control. Notwithstanding anything
                  contained in the Plan or an Agreement to the contrary, in the
                  event of a Change in Control, all Options outstanding on the
                  date of such Change in Control shall become immediately and
                  fully exercisable.

8.       Adjustment Upon Changes in Capitalization.

         (a)      Subject to Section 9, in the event of a Change in
                  Capitalization, the maximum number and class of Shares or
                  other stock or securities with respect to which Options may be
                  granted under the Plan, the number and class of Shares or
                  other stock or securities which are subject to outstanding
                  Options granted under the Plan, and the purchase price
                  therefor, if applicable shall be appropriately and equitable
                  adjusted.

         (b)      Any such adjustment in the Shares or other stock or securities
                  subject to outstanding Incentive Stock Options (including any
                  adjustments in the purchase price) shall be made in such
                  manner as not to constitute a modification as defined by
                  Section 424(h)(3) of the Code and only to the extent otherwise
                  permitted by Sections 422 and 424 of the Code.

         (c)      If, by reason of a change in Capitalization, an Optionee shall
                  be entitled to exercise an Option with respect to new,
                  additional or different shares of stock or securities, such
                  new, additional or different shares shall thereupon by subject
                  to all of the conditions which were applicable to the Shares
                  subject to the Option, as the case may be, prior to such
                  Change in Capitalization.

9.       Effect of Certain Transactions.

         Subject to Section 7(e), in the event of (i) the liquidation or
         dissolution of the Company or (ii) a merger or consolidation of the
         Company (a "Transaction"), the Plan and the Options issued hereunder
         shall continue in effect in accordance with their respective terms and
         each Optionee shall be entitled to receive in respect of each Share
         subject to any outstanding Options, as the case may be, upon exercise
         of any Option, the same number and kind of stock, securities, cash,
         property, or other consideration that each holder of a Share was
         entitled to receive in the Transaction in respect of a Share. In the
         event that, after a Transaction, there occurs any change of a type
         described in Section 2(d) hereof with respect to the shares of the
         surviving or resulting corporation, then adjustments similar to, and
         subject to the same conditions as, those in Section 8 hereof shall be
         made by the Committee.


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10. Termination and Amendment of the Program.

    (a)      The Plan shall terminate on the day preceding the tenth
             anniversary of the date of its adoption by the Board and no
             Option may be granted thereafter. The Board may sooner
             terminate or amend the Plan at any time and from time to time;
             provided, however, that to the extent necessary under Section
             16(b) of the Exchange Act and the rules and regulations
             promulgated thereunder or other applicable law, no amendment
             shall be effective unless approved by the stockholders of the
             Company in accordance with applicable law and regulations at
             an annual or a special meeting held within twelve (12) months
             after the date of adoption of such amendment.

     (b)     Except as provided in Sections 8 and 9 hereof, rights and
             obligations under any Options granted before any amendment or
             termination of the Plan shall not be adversely altered or impaired
             by such amendment or termination, except with the consent of the
             Optionee, nor shall any amendment or termination deprive any
             Optionee of any Shares which he may have acquired through or as a
             result of the Plan.

11.    Non-Exclusivity of the Plan. The Adoption of the Plan by the Board
       shall not be construed as amending, modifying or rescinding any
       previously approved incentive arrangement or as creating any
       limitations on the power of the Board to adopt such other incentive
       arrangements as it may deem desirable, including, without limitation,
       the granting of stock options otherwise than under the Plan, and such
       arrangements may be either applicable generally or only in specific
       cases.

12.    Limitation of Liability. As illustrative of the limitations of
       liability of the Company, but not intended to be exhaustive thereof,
       nothing in the Plan shall be construed to:

       (a)      give any person any right to be granted an Option other than at 
                the sole discretion of the Committee;

       (b)      give any person any rights whatsoever with respect to Shares
                except as specifically provided in the Plan;

       (c)      limit in any way the right of the Company to terminate the 
                employment of any person at any time; or

       (d)      be evidence of any agreement or understanding, expressed or
                implied, that the Company will employ any person at any
                particular rate of compensation or for any particular period
                of time.


13.    Regulations and Other Approvals; Governing Law.

       (a)      This Plan and the rights of all persons claiming hereunder
                shall be construed and determined in accordance with the laws
                of the State of Iowa.

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       (b)      The obligation of the Company to sell or deliver Shares with
                respect to Options granted under the Plan shall be subject to
                all applicable laws, rules and regulations, including all
                applicable federal and state securities laws, and the
                obtaining of all such approvals by governmental agencies as
                may be deemed necessary or appropriate by the Committee.

       (c)      The Plan is intended to comply with Rule 16b-3 promulgated
                under the Exchange Act and the Committee shall interpret and
                administer the provisions of the Plan or any Agreement in a
                manner consistent therewith. Any provisions inconsistent with
                such Rule shall by inoperative and shall not affect the
                validity of the Plan.

       (d)      The Board may make such changes as may be necessary or
                appropriate to comply with the rules and regulations of any
                government authority, or to obtain for Eligible Employees
                granted Incentive Stock Options the tax benefits under the
                applicable provisions of the Code and regulations promulgated
                thereunder.

14     Effective Date.  The effective date of the Plan shall be the date of its 
       adoption by the Board.
       



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