Document:

Exhibit 10.2

                                 CTC MEDIA, INC.
                     (F/K/A STORYFIRST COMMUNICATIONS, INC.)
                      1997 STOCK OPTION/STOCK ISSUANCE PLAN

                                  ARTICLE ONE

                               GENERAL PROVISIONS

      I.    PURPOSE OF THE PLAN

            This 1997 Stock Option/Stock Issuance Plan is intended to promote
the interests of CTC Media, Inc., a Delaware corporation, by providing eligible
persons with the opportunity to acquire a proprietary interest, or otherwise
increase their proprietary interest, in the Corporation as an incentive for them
to remain in the service of the Corporation.

            Capitalized terms herein shall have the meanings assigned to such
terms in the attached Appendix.

      II.   STRUCTURE OF THE PLAN

            A.   The Plan shall be divided into two (2) separate equity
programs:

                        (i)   the  Option  Grant  Program  under  which

      eligible persons  may,  at the  discretion  of the Plan  Administrator,
      be granted options to purchase shares of Common Stock, and

                        (ii)  the Stock  Issuance  Program  under which
      eligible persons may, at the discretion of the Plan Administrator, be
      issued shares of Common Stock  directly,  either through the immediate
      purchase of such shares or as a bonus for services  rendered the
      Corporation (or any Parent or Subsidiary).

            B.   The provisions of Articles One and Four shall apply to both
equity programs under the Plan and shall accordingly govern the interests of all
persons under the Plan.

III.     ADMINISTRATION OF THE PLAN

            A.   The Plan shall be administered by the Board. However, any or
all administrative functions otherwise exercisable by the Board may be delegated
to the Committee. Members of the Committee shall serve for such period of time
as the Board may determine and shall be subject to removal by the Board at any
time. The Board may also at any time terminate the functions of the Committee
and reassume all powers and authority previously delegated to the Committee.

                                       1

            B.   The Plan Administrator shall have full power and authority
(subject to the provisions of the Plan) to establish such rules and regulations
as it may deem appropriate for proper administration of the Plan and to make
such determinations under, and issue such interpretations of, the Plan and any
outstanding options or stock issuances thereunder as it may deem necessary or
advisable. Decisions of the Plan Administrator shall be final and binding on all
parties who have an interest in the Plan or any option or stock issuance
thereunder.

      IV.   ELIGIBILITY

            A.    The persons eligible to participate in the Plan are as
follows:

                        (i)   Employees,

                        (ii)  non-employee members of the Board or the
      non-employee members of the board of directors of any Parent or
      Subsidiary, and

                        (iii) consultants  and other  independent  advisors who
      provide services to the Corporation (or any Parent or Subsidiary).

            B.    The Plan Administrator shall have full authority to determine,
(i) with respect to the option grants under the Option Grant Program, which
eligible persons are to receive option grants, the time or times when such
option grants are to be made, the number of shares to be covered by each such
grant, the status of the granted option as either an Incentive Option or a
Non-Statutory Option, the time or times at which each option is to become
exercisable, the vesting schedule (if any) applicable to the option shares and
the maximum term for which the option is to remain outstanding, and (ii) with
respect to stock issuances under the Stock Issuance Program, which eligible
persons are to receive stock issuances, the time or times when such issuances
are to be made, the number of shares to be issued to each Participant, the
vesting schedule (if any) applicable to the issued shares and the consideration
to be paid by the Participant for such shares.

            C.    The Plan Administrator shall have the absolute discretion
either to grant options in accordance with the Option Grant Program or to effect
stock issuances in accordance with the Stock Issuance Program.

      V.    STOCK SUBJECT TO THE PLAN

            A.    The stock issuable under the Plan shall be shares of

authorized but unissued or reacquired Common Stock. The maximum number of shares
of Common Stock which may be issued over the term of the Plan shall not exceed
5,000 shares(1).

_____________________
(1)  As of March 3, 2006, the 5,000 shares is adjusted to 3,460,000 shares to
reflect the following events: (1) a 0.865-for-one reverse stock split of the
Corporation's common stock in August 2003; (2) a 200-for-one stock split of the
Corporation's common stock in August 2004; and (3) a four-for-one stock split of
the Corporation's common stock which occurred on March 2, 2006.

                                       2

            B.    Shares of Common Stock subject to outstanding options shall be
available for subsequent issuance under the Plan to the extent (i) the options
expire or terminate for any reason prior to exercise in full or (ii) the options
are cancelled in accordance with the cancellation-regrant provisions of Article
Two. Unvested shares issued under the Plan and subsequently repurchased by the
Corporation, at the option exercise price paid per share, pursuant to the
Corporation's repurchase rights under the Plan shall be added back to the number
of shares of Common Stock reserved for issuance under the Plan and shall
accordingly be available for reissuance through one or more subsequent option
grants or direct stock issuances under the Plan.

            C.    Should any change be made to the Common Stock by reason of any
stock split, stock dividend, recapitalization, combination of shares, exchange
of shares or other change affecting the outstanding Common Stock as a class
without the Corporation's receipt of consideration, appropriate adjustments
shall be made to (i) the maximum number and/or class of securities issuable
under the Plan and (ii) the number and/or class of securities and the exercise
price per share in effect under each outstanding option in order to prevent the
dilution or enlargement of benefits thereunder. The adjustments determined by
the Plan Administrator shall be final, binding and conclusive. In no event shall
any such adjustments be made in connection with the conversion of one or more
outstanding shares of the Corporation's preferred stock into shares of Common
Stock.

                                       3

                                  ARTICLE TWO

                              OPTION GRANT PROGRAM

      I.    OPTION TERMS

            Each option, whether an Incentive Option or a Non-Statutory Option,
shall be evidenced by one or more documents in the form approved by the Plan
Administrator; provided, however, that each such document shall comply with the
terms specified below. Each document evidencing an Incentive Option shall, in
addition, be subject to the provisions of the Plan applicable to such options.

            A.   EXERCISE PRICE.

                  1.    The exercise price per share shall be fixed by the Plan
Administrator in accordance with the following provisions:

                        (i)   The exercise  price per share shall not be less
      than eighty-five  percent  (85%) of the Fair  Market  Value per share of
      Common Stock on the option grant date.

                        (ii)  If the  person to whom the  option is  granted is
      a 10% Shareholder,  then the exercise price per share shall not be less
      than one  hundred  ten  percent  (110%) of the Fair  Market  Value per
      share of Common Stock on the option grant date.

                  2.      The exercise price shall become immediately due upon
exercise of the option and shall, subject to the provisions of Section I of
Article Four and the documents evidencing the option, be payable in cash or
check made payable to the Corporation. Should the Common Stock be registered
under Section 12(g) of the 1934 Act at the time the option is exercised, then
the exercise price may also be paid as follows:

                        (i)   in  shares of Common  Stock  held for the
      requisite period necessary to avoid a charge to the Corporation's earnings
      for financial reporting purposes and valued at Fair Market Value on the
      Exercise Date, or

                        (ii)  to the extent the  option is  exercised  for
      vested shares, through a special sale and remittance procedure pursuant to
      which the Optionee shall concurrently provide irrevocable written
      instructions (A) to a Corporation-designated brokerage firm to effect the
      immediate sale of the purchased shares and remit to the Corporation, out
      of the sale proceeds available on the settlement date, sufficient funds to
      cover the aggregate exercise price payable for the purchased shares plus
      all applicable Federal, state and local income and employment taxes
      required to be withheld by the Corporation by reason of such exercise and
      (B) to the Corporation to deliver the

                                       4

      certificates for the purchased shares directly to such brokerage firm in
      order to complete the sale.

            Except to the extent such sale and remittance procedure is utilized,
payment of the exercise price for the purchased shares must be made on the
Exercise Date.

            B.    EXERCISE AND TERM OF OPTIONS. Each option shall be exercisable
at such time or times, during such period and for such number of shares as shall
be determined by the Plan Administrator and set forth in the documents
evidencing the option grant. However, no option shall have a term in excess of
ten (10) years measured from the option grant date.

            C.    EFFECT OF TERMINATION OF SERVICE.

                  1.    The following provisions shall govern the exercise of
any options held by the Optionee at the time of cessation of Service or death:

                        (i)   Should the Optionee cease to remain in Service for
      any reason other than Disability or death, then the Optionee shall have a
      period of thirty (30) days following the date of such cessation of Service
      during which to exercise each outstanding option held by such Optionee.

                        (ii)  Should Optionee's Service terminate by reason of
      Disability, then the Optionee shall have a period of twelve (12) months
      following the date of such cessation of Service during which to exercise
      each outstanding option held by such Optionee.

                        (iii) If the Optionee dies while holding an outstanding
      option, then the personal representative of his or her estate or the
      person or persons to whom the option is transferred pursuant to the
      Optionee's will or the laws of inheritance shall have a twelve (12)-month
      period following the date of the Optionee's death to exercise such option.

                        (iv)  Under no circumstances, however, shall any such
      option be exercisable after the specified expiration of the option term.

                        (v)   During the applicable post-Service exercise
      period, the option may not be exercised in the aggregate for more than the
      number of vested shares for which the option is exercisable on the date of
      the Optionee's cessation of Service. Upon the expiration of the applicable
      exercise period or (if earlier) upon the expiration of the option term,
      the option shall terminate and cease to be outstanding for any vested
      shares for which the option has not been exercised. However, the option
      shall, immediately upon the Optionee's cessation of Service, terminate and
      cease to be outstanding with respect to any and all option shares for
      which the option is not otherwise at the time exercisable or in which the
      Optionee is not otherwise at that time vested.

                                       5

            2.   The Plan Administrator shall have the discretion, exercisable
either at the time an option is granted or at any time while the option remains
outstanding, to:

                        (i)   extend the period of time for which the option is
      to remain exercisable following Optionee's cessation of Service or death
      from the limited period otherwise in effect for that option to such
      greater period of time as the Plan Administrator shall deem appropriate,
      but in no event beyond the expiration of the option term, and/or

                        (ii)  permit the option to be exercised, during the
      applicable post-Service exercise period, not only with respect to the
      number of vested shares of Common Stock for which such option is
      exercisable at the time of the Optionee's cessation of Service but also
      with respect to one or more additional installments in which the Optionee
      would have vested under the option had the Optionee continued in Service.

            D.    SHAREHOLDER RIGHTS. The holder of an option shall have no
shareholder rights with respect to the shares subject to the option until such
person shall have exercised the option, paid the exercise price and become a
holder of record of the purchased shares.

            E.    UNVESTED SHARES. The Plan Administrator shall have the
discretion to grant options which are exercisable for unvested shares of Common
Stock. Should the Optionee cease Service while holding such unvested shares, the
Corporation shall have the right to repurchase, at the exercise price paid per
share, all or (at the discretion of the Corporation and with the consent of the
Optionee) any of those unvested shares. The terms upon which such repurchase
right shall be exercisable (including the period and procedure for exercise and
the appropriate vesting schedule for the purchased shares) shall be established
by the Plan Administrator and set forth in the document evidencing such
repurchase right. The Plan Administrator may not impose a vesting schedule upon
any option grant or any shares of Common Stock subject to the option which is
more restrictive than twenty percent (20%) per year vesting, with the initial
vesting to occur not later than one (1) year after the option grant date.

            F.    FIRST REFUSAL RIGHTS. Until such time as the Common Stock is
first registered under Section 12(g) of the 1934 Act, the Corporation shall have
the right of first refusal with respect to any proposed disposition by the
Optionee (or any successor in interest) of any shares of Common Stock issued
under the Plan. Such right of first refusal shall be exercisable in accordance
with the terms established by the Plan Administrator and set forth in the
document evidencing such right.

            G.    LIMITED TRANSFERABILITY OF OPTIONS. During the lifetime of the
Optionee, the option shall be exercisable only by the Optionee and shall not be
assignable or transferable other than by will or by the laws of descent and
distribution following the Optionee's death.

            H.    WITHHOLDING. The Corporation's obligation to deliver shares of
Common Stock upon the exercise of any options granted under the Plan shall be
subject to the satisfaction of all applicable Federal, state and local income
and employment tax withholding requirements.

                                       6

      II.   INCENTIVE OPTIONS

            The terms specified below shall be applicable to all Incentive
Options. Except as modified by the provisions of this Section II, all the
provisions of the Plan shall be applicable to Incentive Options. Options which
are specifically designated as Non-Statutory Options shall not be subject to the
terms of this Section II.

            A.    ELIGIBILITY. Incentive Options may only be granted to
Employees.

            B.    EXERCISE PRICE. The exercise price per share shall not be less
than one hundred percent (100%) of the Fair Market Value per share of Common
Stock on the option grant date.

            C.    DOLLAR LIMITATION. The aggregate Fair Market Value of the
shares of Common Stock (determined as of the respective date or dates of grant)
for which one or more options granted to any Employee under the Plan (or any
other option plan of the Corporation or any Parent or Subsidiary) may for the
first time become exercisable as Incentive Options during any one (1) calendar
year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the
extent the Employee holds two (2) or more such options which become exercisable
for the first time in the same calendar year, the foregoing limitation on the
exercisability of such options as Incentive Options shall be applied on the
basis of the order in which such options are granted.

            D.    10% SHAREHOLDER. If any Employee to whom an Incentive Option
is granted is a 10% Shareholder, then the option term shall not exceed five (5)
years measured from the option grant date.

      III.  CORPORATE TRANSACTION

            A.    The shares subject to each option outstanding under the Plan
at the time of a Corporate Transaction shall automatically vest in full so that
each such option shall, immediately prior to the effective date of the Corporate
Transaction, become fully exercisable for all of the shares of Common Stock at
the time subject to that option and may be exercised for any or all of those
shares as fully-vested shares of Common Stock. However, the shares subject to an
outstanding option shall not vest on such an accelerated basis if and to the
extent: (i) such option is assumed by the successor corporation (or parent
thereof) in the Corporate Transaction and the Corporation's repurchase rights
with respect to the unvested option shares are concurrently assigned to such
successor corporation (or parent thereof) or (ii) such option is to be replaced
with a cash incentive program of the successor corporation which preserves the
spread existing on the unvested option shares at the time of the Corporate
Transaction and provides for subsequent payout in accordance with the same
vesting schedule applicable to those unvested option shares or (iii) the
acceleration of such option is subject to other limitations imposed by the Plan
Administrator at the time of the option grant.

            B.    All outstanding repurchase rights shall also terminate
automatically, and the shares of Common Stock subject to those terminated rights
shall immediately vest in full, in the event of any Corporate Transaction,
except to the extent: (i) those repurchase rights are assigned to the successor
corporation (or parent thereof) in connection with such Corporate Transaction or
(ii) such accelerated vesting is precluded by other limitations imposed by the
Plan Administrator at the time the repurchase right is issued.

            C.    Immediately following the consummation of the Corporate
Transaction, all outstanding options shall terminate and cease to be
outstanding, except to the extent assumed by the successor corporation (or
parent thereof).

            D.    Each option which is assumed in connection with a Corporate
Transaction shall be appropriately adjusted, immediately after such Corporate
Transaction, to apply to the number and class of securities which would have
been issuable to the Optionee in consummation of such Corporate Transaction, had
the option been exercised immediately prior to such Corporate Transaction.
Appropriate adjustments shall also be made to (i) the number and class of
securities available for issuance under the Plan following the consummation of
such Corporate Transaction and (ii) the exercise price payable per share under
each outstanding option, provided the aggregate exercise price payable for such
securities shall remain the same.

            E.    Notwithstanding Section III.A. of this Article Two, the Plan
Administrator shall have the discretion, exercisable either at the time the
option is granted or at any time while the option remains outstanding, to
provide for the automatic acceleration (in whole or in part) of one or more
outstanding options (and the automatic termination of one or more outstanding
repurchase rights, with the immediate vesting of the shares of Common Stock
subject to those terminated rights) upon the occurrence of a Corporate
Transaction, whether or not those options are to be assumed or replaced (or
those repurchase rights are to be assigned) in the Corporate Transaction.

            F.    The Plan Administrator shall also have full power and
authority, exercisable either at the time the option is granted or at any time
while the option remains outstanding, to structure such option so that the
shares subject to that option will automatically vest on an accelerated basis
should the Optionee's Service terminate by reason of an Involuntary Termination
within a designated period (not to exceed eighteen (18) months) following the
effective date of any Corporate Transaction in which the option is assumed and
the repurchase rights applicable to those shares do not otherwise terminate. Any
such option shall remain exercisable for the fully-vested option shares until
the earlier of (i) the expiration of the option term or (ii) the expiration of
the one (1)-year period measured from the effective date of the Involuntary
Termination. In addition, the Plan Administrator may provide that one or more of
the outstanding repurchase rights with respect to shares held by the Optionee at
the time of such Involuntary Termination shall immediately terminate on an
accelerated basis, and the shares subject to those terminated rights shall
accordingly vest.

            G.    The portion of any Incentive Option accelerated in connection
with a Corporate Transaction shall remain exercisable as an Incentive Option
only to the extent the applicable One Hundred Thousand Dollar limitation is not
exceeded. To the extent such dollar limitation is exceeded, the accelerated
portion of such option shall be exercisable as a Non-Statutory Option under the
Federal tax laws.

                                        8

            H.    The grant of options under the Plan shall in no way affect the
right of the Corporation to adjust, reclassify, reorganize or otherwise change
its capital or business structure or to merge, consolidate, dissolve, liquidate
or sell or transfer all or any part of its business or assets.

      IV.   CANCELLATION AND REGRANT OF OPTIONS

            The Plan Administrator shall have the authority to effect, at any
time and from time to time, with the consent of the affected option holders, the
cancellation of any or all outstanding options under the Plan and to grant in
substitution therefor new options covering the same or different number of
shares of Common Stock but with an exercise price per share based on the Fair
Market Value per share of Common Stock on the new option grant date.

                                       9

                                 ARTICLE THREE

                             STOCK ISSUANCE PROGRAM

      I.    STOCK ISSUANCE TERMS

            Shares of Common Stock may be issued under the Stock Issuance
Program through direct and immediate issuances without any intervening option
grants. Each such stock issuance shall be evidenced by a Stock Issuance
Agreement which complies with the terms specified below.

            A.    PURCHASE PRICE.

                  1.    The purchase price per share shall be fixed by the Plan
Administrator but shall no t be less than eighty-five percent (85%) of the Fair
Market Value per share of Common Stock on the issue date. However, the purchase
price per share of Common Stock issued to a 10% Shareholder shall not be less
than one hundred and ten percent (110%) of such Fair Market Value.

                  2.    Subject to the provisions of Section I of Article Four,
shares of Common Stock may be issued under the Stock Issuance Program for any of
the following items of consideration which the Plan Administrator may deem
appropriate in each individual instance:

                        (i)   cash or check made payable to the Corporation, or

                        (ii)  past services rendered to the Corporation (or any
      Parent or Subsidiary).

            B.    VESTING PROVISIONS.

                  1.    Shares of Common Stock issued under the Stock Issuance
Program may, in the discretion of the Plan Administrator, be fully and
immediately vested upon issuance or may vest in one or more installments over
the Participant's period of Service or upon attainment of specified performance
objectives. However, the Plan Administrator may not impose a vesting schedule
upon any stock issuance effected under the Stock Issuance Program which is more
restrictive than twenty percent (20%) per year vesting, with initial vesting to
occur not later than one (1) year after the issuance date.

                  2.    Any new, substituted or additional securities or other
property (including money paid other than as a regular cash dividend) which the
Participant may have the right to receive with respect to the Participant's
unvested shares of Common Stock by reason of any stock dividend, stock split,
recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's
receipt of consideration shall be issued subject to (i) the same vesting
requirements applicable to

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the Participant's unvested shares of Common Stock and (ii) such escrow
arrangements as the Plan Administrator shall deem appropriate.

                  3.    The Participant shall have full shareholder rights with
respect to any shares of Common Stock issued to the Participant under the Stock
Issuance Program, whether or not the Participant's interest in those shares is
vested. Accordingly, the Participant shall have the right to vote such shares
and to receive any regular cash dividends paid on such shares.

                  4.    Should the Participant cease to remain in Service while
holding one or more unvested shares of Common Stock issued under the Stock
Issuance Program or should the performance objectives not be attained with
respect to one or more such unvested shares of Common Stock, then those shares
shall be immediately surrendered to the Corporation for cancellation, and the
Participant shall have no further shareholder rights with respect to those
shares. To the extent the surrendered shares were previously issued to the
Participant for consideration paid in cash or cash equivalent (including the
Participant's purchase-money indebtedness), the Corporation shall repay to the
Participant the cash consideration paid for the surrendered shares and shall
cancel the unpaid principal balance of any outstanding purchase-money note of
the Participant attributable to such surrendered shares.

                  5.    The Plan Administrator may in its discretion waive the
surrender and cancellation of one or more unvested shares of Common Stock (or
other assets attributable thereto) which would otherwise occur upon the
non-completion of the vesting schedule applicable to such shares. Such waiver
shall result in the immediate vesting of the Participant's interest in the
shares of Common Stock as to which the waiver applies. Such waiver may be
effected at any time, whether before or after the Participant's cessation of
Service or the attainment or non-attainment of the applicable performance
objectives.

            C.    FIRST REFUSAL RIGHTS. Until such time as the Common Stock is
first registered under Section 12(g) of the 1934 Act, the Corporation shall have
the right of first refusal with respect to any proposed disposition by the
Participant (or any successor in interest) of any shares of Common Stock issued
under the Stock Issuance Program. Such right of first refusal shall be
exercisable in accordance with the terms established by the Plan Administrator
and set forth in the document evidencing such right.

      II.   CORPORATE TRANSACTION

            A.    Upon the occurrence of a Corporate Transaction, all
outstanding repurchase rights under the Stock Issuance Program shall terminate
automatically, and the shares of Common Stock subject to those terminated rights
shall immediately vest in full, except to the extent: (i) those repurchase
rights are assigned to the successor corporation (or parent thereof) in
connection with such Corporate Transaction or (ii) such accelerated vesting is
precluded by other limitations imposed by the Plan Administrator at the time the
repurchase right is granted.

            B.    Notwithstanding Section II.A. of this Article Three, the Plan
Administrator shall have the discretionary authority, exercisable either at the
time the unvested

                                       11

shares are issued or any time while the Corporation's repurchase rights remain
outstanding under the Stock Issuance Program, to provide that those rights shall
automatically terminate in whole or in part, and the shares of Common Stock
subject to those terminated rights shall immediately vest, in the event of a
Corporate Transaction, whether or not those repurchase rights are to be assigned
to the successor corporation (or its parent) in connection with such Corporate
Transaction.

            C.    The Plan Administrator shall have the discretionary authority,
exercisable either at the time the unvested shares are issued or any time while
the Corporation's repurchase rights with respect to those shares remain
outstanding, to provide that those rights shall automatically terminate on an
accelerated basis, and the shares of Common Stock subject to those terminated
rights shall immediately vest, in the event the Participant's Service should
subsequently terminate by reason of an Involuntary Termination within a
designated period (not to exceed eighteen (18) months) following the effective
date of any Corporate Transaction in which those repurchase rights are assigned
to the successor corporation (or parent thereof).

      III.  SHARE ESCROW/LEGENDS

            Unvested shares may, in the Plan Administrator's discretion, be held
in escrow by the Corporation until the Participant's interest in such shares
vests or may be issued directly to the Participant with restrictive legends on
the certificates evidencing those unvested shares.

                                       12

                                  ARTICLE FOUR

                                  MISCELLANEOUS

      I.    FINANCING

            The Plan Administrator may permit any Optionee or Participant to pay
the option exercise price or the purchase price for shares issued to such person
under the Plan by delivering a full-recourse, interest-bearing promissory note
payable in one or more installments and secured by the purchased shares.
However, any promissory note delivered by a consultant must be secured by
property in addition to the purchased shares of Common Stock. In no event shall
the maximum credit available to the Optionee or Participant exceed the sum of
(i) the aggregate option exercise price or purchase price payable for the
purchased shares plus (ii) any Federal, state and local income and employment
tax liability incurred by the Optionee or the Participant in connection with the
option exercise or share purchase.

      II.   EFFECTIVE DATE AND TERM OF PLAN

            A. The Plan shall become effective when adopted by the Board, but no
option granted under the Plan may be exercised, and no shares shall be issued
under the Plan, until the Plan is approved by the Corporation's shareholders. If
such shareholder approval is not obtained within twelve (12) months after the
date of the Board's adoption of the Plan, then all options previously granted
under the Plan shall terminate and cease to be outstanding, and no further
options shall be granted and no shares shall be issued under the Plan. Subject
to such limitation, the Plan Administrator may grant options and issue shares
under the Plan at any time after the effective date of the Plan and before the
date fixed herein for termination of the Plan.

            B.    The Plan shall terminate upon the earliest of (i) the
expiration of the ten (10)-year period measured from the date the Plan is
adopted by the Board, (ii) the date on which all shares available for issuance
under the Plan shall have been issued as fully-vested shares or (iii) the
termination of all outstanding options in connection with a Corporate
Transaction. All options and unvested stock issuances outstanding at that time
under the Plan shall continue to have full force and effect in accordance with
the provisions of the documents evidencing such options or issuances.

      III.  AMENDMENT OF THE PLAN

            A.    The Board shall have complete and exclusive power and
authority to amend or modify the Plan in any or all respects. However, no such
amendment or modification shall adversely affect the rights and obligations with
respect to options or unvested stock issuances at the time outstanding under the
Plan unless the Optionee or the Participant consents to such amendment or
modification. In addition, certain amendments may require shareholder approval
pursuant to applicable laws and regulations.

                                       13

            B.    Options may be granted under the Option Grant Program and
shares may be issued under the Stock Issuance Program which are in each instance
in excess of the number of shares of Common Stock then available for issuance
under the Plan, provided any excess shares actually issued under those programs
shall be held in escrow until there is obtained shareholder approval of an
amendment sufficiently increasing the number of shares of Common Stock available
for issuance under the Plan. If such shareholder approval is not obtained within
twelve (12) months after the date the first such excess issuances are made, then
(i) any unexercised options granted on the basis of such excess shares shall
terminate and cease to be outstanding and (ii) the Corporation shall promptly
refund to the Optionees and the Participants the exercise or purchase price paid
for any excess shares issued under the Plan and held in escrow, together with
interest (at the applicable Short Term Federal Rate) for the period the shares
were held in escrow, and such shares shall thereupon be automatically cancelled
and cease to be outstanding.

      IV.   USE OF PROCEEDS

            Any cash proceeds received by the Corporation from the sale of
shares of Common Stock under the Plan shall be used for general corporate
purposes.

      V.    WITHHOLDING

            The Corporation's obligation to deliver shares of Common Stock upon
the exercise of any options or upon the issuance or vesting of any shares issued
under the Plan shall be subject to the satisfaction of all applicable Federal,
state and local income and employment tax withholding requirements.

      VI.   REGULATORY APPROVALS

            The implementation of the Plan, the granting of any options under
the Plan and the issuance of any shares of Common Stock (i) upon the exercise of
any option or (ii) under the Stock Issuance Program shall be subject to the
Corporation's procurement of all approvals and permits required by regulatory
authorities having jurisdiction over the Plan, the options granted under it and
the shares of Common Stock issued pursuant to it.

      VII.  NO EMPLOYMENT OR SERVICE RIGHTS

            Nothing in the Plan shall confer upon the Optionee or the
Participant any right to continue in Service for any period of specific duration
or interfere with or otherwise restrict in any way the rights of the Corporation
(or any Parent or Subsidiary employing or retaining such person) or of the
Optionee or the Participant, which rights are hereby expressly reserved by each,
to terminate such person's Service at any time for any reason, with or without
cause.

      VIII. FINANCIAL REPORTS

            The Corporation shall deliver a balance sheet and an income
statement at least annually to each individual holding an outstanding option
under the Plan, unless such individual

                                       14

is a key Employee whose duties in connection with the Corporation (or any Parent
or Subsidiary) assure such individual access to equivalent information.

                                       15

                                    APPENDIX

      The following definitions shall be in effect under the Plan:

            A.    BOARD shall mean the Corporation's Board of Directors.

            B.    CODE shall mean the Internal Revenue Code of 1986, as amended.

            C.    COMMITTEE shall mean a committee of two (2) or more Board
members appointed by the Board to exercise one or more administrative functions
under the Plan.

            D.    COMMON STOCK shall mean the Corporation's common stock.

            E.    CORPORATE TRANSACTION shall mean either of the following
shareholder-approved transactions to which the Corporation is a party:

                        (i)   a merger or consolidation in which securities
      possessing more than fifty percent (50%) of the total combined voting
      power of the Corporation's outstanding securities are transferred to a
      person or persons different from the persons holding those securities
      immediately prior to such transaction, or

                        (ii)  the sale, transfer or other disposition of all or
      substantially all of the Corporation's assets in complete liquidation or
      dissolution of the Corporation.

            F.    CORPORATION shall mean CTC Media, Inc., a Delaware
corporation.

            G.    DISABILITY shall mean the inability of the Optionee or the
Participant to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment and shall be determined by
the Plan Administrator on the basis of such medical evidence as the Plan
Administrator deems warranted under the circumstances.

            H.    EMPLOYEE shall mean an individual who is in the employ of the
Corporation (or any Parent or Subsidiary), subject to the control and direction
of the employer entity as to both the work to be performed and the manner and
method of performance.

            I.    EXERCISE DATE shall mean the date on which the Corporation
shall have received written notice of the option exercise.

            J.    FAIR MARKET VALUE per share of Common Stock on any relevant
date shall be determined in accordance with the following provisions:

                        (i)   If the Common Stock is at the time traded on the
      Nasdaq National Market, then the Fair Market Value shall be the closing
      selling price per share of Common Stock on the date in question, as such
      price is reported by the National Association of Securities Dealers on the
      Nasdaq National Market or any successor system. If there is no closing
      selling price for the Common Stock on the

                                      A-1

      date in question, then the Fair Market Value shall be the closing selling
      price on the last preceding date for which such quotation exists.

                  (ii)  If the Common Stock is at the time listed on any Stock
      Exchange, then the Fair Market Value shall be the closing selling price
      per share of Common Stock on the date in question on the Stock Exchange
      determined by the Plan Administrator to be the primary market for the
      Common Stock, as such price is officially quoted in the composite tape of
      transactions on such exchange. If there is no closing selling price for
      the Common Stock on the date in question, then the Fair Market Value shall
      be the closing selling price on the last preceding date for which such
      quotation exists.

                  (iii) If the Common Stock is at the time neither listed on any
      Stock Exchange nor traded on the Nasdaq National Market, then the Fair
      Market Value shall be determined by the Plan Administrator after taking
      into account such factors as the Plan Administrator shall deem
      appropriate.

            K.    INCENTIVE OPTION shall mean an option which satisfies the
requirements of Code Section 422.

            L.    INVOLUNTARY TERMINATION shall mean the termination of the
Service of any individual which occurs by reason of:

                  (i)   such individual's involuntary dismissal or discharge by
      the Corporation for reasons other than Misconduct, or

                  (ii)  such individual's voluntary resignation following (A) a
      change in his or her position with the Corporation which materially
      reduces his or her level of responsibility, (B) a reduction in his or her
      level of compensation (including base salary, fringe benefits and target
      bonuses under any corporate-performance based bonus or incentive programs)
      by more than fifteen percent (15%) or (C) a relocation of such
      individual's place of employment by more than fifty (50) miles, provided
      and only if such change, reduction or relocation is effected without the
      individual's consent.

            M.    MISCONDUCT shall mean the commission of any act of fraud,
embezzlement or dishonesty by the Optionee or Participant, any unauthorized use
or disclosure by such person of confidential information or trade secrets of the
Corporation (or any Parent or Subsidiary), or any other intentional misconduct
by such person adversely affecting the business or affairs of the Corporation
(or any Parent or Subsidiary) in a material manner. The foregoing definition
shall not be deemed to be inclusive of all the acts or omissions which the
Corporation (or any Parent or Subsidiary) may consider as grounds for the
dismissal or discharge of any Optionee, Participant or other person in the
Service of the Corporation (or any Parent or Subsidiary).

            N.    1934 ACT shall mean the Securities Exchange Act of 1934, as
amended.

            O.    NON-STATUTORY OPTION shall mean an option not intended to
satisfy the requirements of Code Section 422.

                                      A-2

            P.    OPTION GRANT PROGRAM shall mean the option grant program in
effect under the Plan.

            Q.    OPTIONEE shall mean any person to whom an option is granted
under the Plan.

            R.    PARENT shall mean any corporation (other than the Corporation)
in an unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

            S.    PARTICIPANT shall mean any person who is issued shares of
Common Stock under the Stock Issuance Program.

            T.    PLAN shall mean the Corporation's 1997 Stock Option/Stock
Issuance Plan, as set forth in this document.

            U.    PLAN ADMINISTRATOR shall mean either the Board or the
Committee acting in its capacity as administrator of the Plan.

            V.    SERVICE shall mean the provision of services to the
Corporation (or any Parent or Subsidiary) by a person in the capacity of an
Employee, a non-employee member of the board of directors or a consultant or
independent advisor, except to the extent otherwise specifically provided in the
documents evidencing the option grant.

            W.    STOCK EXCHANGE shall mean either the American Stock Exchange
or the New York Stock Exchange.

            X.    STOCK ISSUANCE AGREEMENT shall mean the agreement entered into
by the Corporation and the Participant at the time of issuance of shares of
Common Stock under the Stock Issuance Program.

            Y.    STOCK ISSUANCE PROGRAM shall mean the stock issuance program
in effect under the Plan.

            Z.    SUBSIDIARY shall mean any corporation (other than the
Corporation) in an unbroken chain of corporations beginning with the
Corporation, provided each corporation (other than the last corporation) in the
unbroken chain owns, at the time of the determination, stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain.

            AA.   10% SHAREHOLDER shall mean the owner of stock (as determined
under Code Section 424(d)) possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Corporation (or any Parent
or Subsidiary).

                                      A-3Exhibit 10.3

                         STORYFIRST COMMUNICATIONS, INC.
                             STOCK OPTION AGREEMENT

      This Stock Option Agreement (this "Agreement") is made as of January 1,
2003 between STORYFIRST COMMUNICATIONS, INC., a Delaware corporation (the
"Corporation"), and JOHN T. HEALY ("Optionee").

Preliminary Statements:

A.    Optionee renders valuable services to the Corporation (or a Parent or
      Subsidiary).

B.    The Corporation wishes to retain the services of Optionee and as an
      incentive to retain such services has agreed to grant to Optionee an
      option to purchase shares of Common Stock of the Corporation.

      NOW, THEREFORE, it is hereby agreed as follows:

      1.    DEFINITIONS. The following definitions shall be in effect under this
Agreement:

      (a)   AGREEMENT means this Stock Option Agreement.

      (b)   BOARD means the Corporation's Board of Directors or any committee
thereof designated by the Board to act on behalf of the Board.

      (c)   CHANGE IN CONTROL means either of the following transactions to
which the Corporation is a party:

            (i)   a merger or consolidation, in one transaction or a series of
            transactions effected by related parties, in which securities
            possessing more than fifty percent (50%) of the total combined
            voting power of the Corporation's outstanding securities are issued
            and/or transferred to a person or persons different from the persons
            holding those securities immediately prior to such transaction, or
            such series of transactions; or

            (ii)  the sale, transfer or other disposition of all or
            substantially all of the Corporation's assets in complete
            liquidation or dissolution of the Corporation.

      (d)   COMMON STOCK means the Corporation's common stock.

      (e)   CORPORATION means StoryFirst Communications, Inc., a Delaware
corporation.

      (f)   DISABILITY means the inability of Optionee to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment.

                                       1

      (g)   EXERCISE DATE means the date on which the Option shall have been
exercised in accordance with Paragraph 11 of this Agreement.

      (h)   EXERCISE PRICE means $500 per share.

      (i)   EXPIRATION DATE means December 31, 2012.

      (j)   GRANT DATE means January 1, 2003.

      (k)   MODIFIED RECAPITALIZATION has the meaning given to it in the
Information Statement to the Stockholders of the Corporation dated April 25,
2003.

      (l)   1934 ACT means the Securities Exchange Act of 1934, as amended.

      (m)   OPTION shall have the meaning set forth in Paragraph 2.

      (n)   OPTION SHARES shall have the meaning set forth in Paragraph 2.

      (o)   OPTIONEE means John T. Healy.

      (p)   PARENT means any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

      (q)   PURCHASE AGREEMENT means the stock purchase agreement in
substantially the form of Exhibit A to this Agreement.

      (r)   RECAPITALIZATION has the meaning given to it in the Information
Statement to the Stockholders of the Corporation dated April 25, 2003.

      (s)   SERVICE means Optionee's performance of services for the Corporation
(or any Parent or Subsidiary) in the capacity of an employee, a non-employee
member of the Board or an independent consultant.

      (t)   SUBSIDIARY means any corporation (other than the Corporation) in an
unbroken chain of corporations beginning with the Corporation, provided each
corporation (other than the last corporation) in the unbroken chain owns, at the
time of the determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

      (u)   TERMINATION WITHOUT CAUSE means the involuntary removal, dismissal
or discharge of Optionee by the Corporation for reasons other than (i) the
commission of any act of fraud or embezzlement by Optionee,  (ii) the commission
of any act of dishonesty by Optionee,

                                       2

which act adversely affects the business or affairs of the Corporation in a
material manner, (iii) the unauthorized use or disclosure by Optionee of
confidential information or trade secrets of the Corporation or (iv) any other
intentional misconduct by Optionee adversely affecting the business or affairs
of the Corporation in a material manner.

      2.    GRANT OF OPTION. The Corporation hereby grants to Optionee, as of
the Grant Date, an Option (the "Option") to purchase up to 1,157 shares of
Common Stock; provided, however that in the event that neither the
Recapitalization nor the Modified Recapitalization is effected, the Option shall
be to purchase up to 1,000 shares of Common Stock (such number of shares, as
appropriate, the "Option Shares").

      3.    OPTION TERM. This Option shall have a term of ten (10) years
measured from the Grant Date and shall accordingly expire at the close of
business on the Expiration Date, unless sooner terminated in accordance with
Paragraph 7.

      4.    LIMITED TRANSFERABILITY. The Option shall be exercisable only by
Optionee and shall not be assignable or transferable other than by will or by
the laws of descent and distribution following Optionee's death.

      5.    DATES OF EXERCISE. The Option shall become exercisable with respect
to 25% of the Option Shares on March 31, 2003, and with respect to an additional
25% of such shares on each of June 30, 2003, September 30, 2003, and December
31, 2003.

      6.    ACCELERATED VESTING. Notwithstanding Paragraph 5 above, the Option
shall become exercisable for all the Option Shares immediately prior to a Change
in Control.

      7.    CESSATION OF SERVICE. This option shall terminate (and this Option
shall cease to be outstanding) prior to the Expiration Date should any of the
following provisions become applicable:

      (a)   Should Optionee die while the Option is outstanding, the Option
shall lapse and shall cease to be outstanding six months following Optionee's
death, but in no event shall the Option be exercisable at any time after the
Expiration Date.

      (b)   Should Optionee cease Service by reason of (i) Termination Without
Cause or (ii) a Disability, in each case, while the Option is outstanding, then
Optionee shall have until six months following the effective date of such
termination to exercise the Option, but in no event shall the Option be
exercisable at any time after the Expiration Date.

      (c)   Should Optionee cease Service for any reason (other than a reason
specified in (a) or (b) above) while the Option is outstanding, then Optionee
shall have a period of sixty (60) days (commencing with the date of such
cessation of Service) during which to exercise the Option, but in no event shall
the Option be exercisable at any time after the Expiration Date.

      (d)   During the limited period of post-Service exercisability, the Option
shall not be exercised in the aggregate for more than the number of Option
Shares for which the Option is, at

                                       3

the time of Optionee's cessation of Service, exercisable pursuant to Paragraphs
5 or 6. Upon the expiration of such limited exercise period or (if earlier) upon
the Expiration Date, the Option shall terminate and cease to be outstanding for
any Option Shares which were exercisable at the time of such termination but for
which the Option has not been exercised. To the extent the Option Shares are not
exercisable at the time of such cessation of Service, the Option shall
immediately terminate and cease to be outstanding with respect to those shares.

      8.    ADJUSTMENT IN OPTION SHARES. Should any change be made to the Common
Stock by reason of any stock split, stock dividend, recapitalization,
combination of shares, exchange of shares or other change affecting the
outstanding Common Stock as a class without the Corporation's receipt of
consideration, appropriate adjustments shall be made to (i) the total number
and/or class of securities subject to the Option and (ii) except with respect to
the effectiveness of the Recapitalization or Modified Recapitalization, the
Exercise Price in order to reflect such change and thereby preclude a dilution
or enlargement of benefits hereunder.

      9.    NON-STATUTORY OPTION. Optionee acknowledges and accepts that the
Option is a non-statutory option that does not satisfy the requirements of
Section 422 of the Internal Revenue Code of 1986, as amended.

      10.   SHAREHOLDER RIGHTS. Optionee shall not have any shareholder rights
with respect to the Option Shares until Optionee shall have exercised the
Option, paid the Exercise Price and become a holder of record of the purchased
shares.

      11.   MANNER OF EXERCISING OPTION.

      (a)   In order to exercise the Option with respect to all or any part of
the Option Shares for which the Option is at the time exercisable, Optionee (or
any other person or persons permitted to exercise the Option hereunder) must
take the following actions:

            (i)   Execute and deliver to the Corporation a Purchase Agreement
            for the Option Shares for which the option is exercised.

            (ii)  Pay the aggregate Exercise Price for the purchased shares in
            one or more of the following forms:

                        (A)    cash or check made payable to the Corporation; or

                        (B)    a promissory note payable to the Corporation, but
                        only to the extent authorized by the Board in accordance
                        with Paragraph 14.

      (b)   If the Common Stock is registered under Section 12(g) of the 1934
Act at the time the Option is exercised, then the Exercise Price may also be
paid as follows:

                  (x)   in shares of Common Stock held by Optionee (or any other
                        person or persons exercising the option) for the
                        requisite

                                       4

                        period necessary to avoid a charge to the Corporation's
                        earnings for financial reporting purposes and valued at
                        fair market value on the Exercise Date; or

                  (y)   through a special sale and remittance procedure pursuant
                        to which Optionee (or any other person or persons
                        exercising the option) shall concurrently provide
                        irrevocable written instructions (a) to a
                        Corporation-designated brokerage firm to effect the
                        immediate sale of the purchased shares and remit to the
                        Corporation, out of the sale proceeds available on the
                        settlement date, sufficient funds to cover the aggregate
                        Exercise Price payable for the purchased shares plus all
                        applicable Federal, state and local income and
                        employment taxes required to be withheld by the
                        Corporation by reason of such exercise and (b) to the
                        Corporation to deliver the certificates for the
                        purchased shares directly to such brokerage firm in
                        order to complete the sale.

      (c)   Except to the extent the sale and remittance procedure is utilized
in connection with the option exercise, payment of the Exercise Price must
accompany the Purchase Agreement delivered to the Corporation in connection with
the option exercise.

      (d)   Furnish to the Corporation appropriate documentation that the person
or persons exercising the Option (if other than Optionee) have the right to
exercise the Option.

      (e)   Execute and deliver to the Corporation such written representations
as may be requested by the Corporation in order for it to comply with the
applicable requirements of Federal and state securities laws.

      (f)   Make appropriate arrangements with the Corporation (or Parent or
Subsidiary employing or retaining Optionee) for the satisfaction of all U.S.
federal, state and local income and employment tax withholding requirements
applicable to the option exercise.

      (g)   As soon as practical after the Exercise Date, the Corporation shall
issue to or on behalf of Optionee (or any other person or persons exercising the
Option) a certificate for the purchased Option Shares, with the appropriate
legends affixed thereto.

      (h)   In no event may the Option be exercised for any fractional shares.

                                       5

      12.   COMPLIANCE WITH LAWS AND REGULATIONS.

      (a)   The exercise of the Option and the issuance of the Option Shares
upon such exercise shall be subject to compliance by the Corporation and
Optionee with all applicable requirements of law relating thereto and with all
applicable regulations of any stock exchange (or The NASDAQ National Market, if
applicable) on which the Common Stock may be listed for trading at the time of
such exercise and issuance.

      (b)   The inability of the Corporation to obtain approval from any
regulatory body having authority deemed by the Corporation to be necessary to
the lawful issuance and sale of any Common Stock pursuant to this option shall
relieve the Corporation of any liability with respect to the non-issuance or
sale of the Common Stock as to which such approval shall not have been obtained.
The Corporation, however, shall use its best efforts to obtain all such
approvals.

      13.   SUCCESSORS AND ASSIGNS. Except to the extent otherwise provided in
Paragraph 4, the provisions of this Agreement shall inure to the benefit of, and
be binding upon, the Corporation and its successors and assigns and Optionee and
any successor-in-interest of Optionee.

      14.   NOTICES. Any notice required to be given or delivered to the
Corporation under the terms of this Agreement shall be in writing and addressed
to the Corporation at its principal corporate offices. Any notice required to be
given or delivered to Optionee shall be in writing and addressed to Optionee at
the address indicated below Optionee's signature line on the signature page
hereto. All notices shall be deemed effective upon personal delivery or upon
deposit in the mail, postage prepaid and properly addressed to the party to be
notified.

      15.   FINANCING. The Board may, in its absolute discretion and without any
obligation to do so, permit Optionee to pay the Exercise Price for the purchased
Option Shares by delivering a full-recourse, interest-bearing promissory note
secured by those Option Shares. The payment schedule in effect for any such
promissory note shall be established by the Board in its sole discretion.

      16.   GOVERNING LAW. The interpretation, performance and enforcement of
this Agreement shall be governed by the laws of the State of Delaware without
resort to that State's conflict-of-laws rules.

      17.   DISPUTE RESOLUTION. Any controversy between the parties, including
the construction or application of any of the terms, covenants or conditions of
this Agreement shall on written request of one party served upon the other, be
submitted to arbitration and be governed by the rules of the American
Arbitration Association in effect on the date of referral to arbitration, except
that in the event of any conflict between those rules and this Section 16, this
Section 16 shall govern. The arbitration shall take place in New York, New York.
The parties may agree upon one arbitrator, but in the event they cannot agree
there shall be three, one named in writing by each of the parties within ten
days after demand for arbitration is given and a third chosen by the two so
appointed. The arbitrator or arbitrators (i) shall not have any power or

                                       6

authority to add to, alter, amend or modify the terms of this Agreement and (ii)
shall interpret and construe this Agreement and any exhibit hereto in accordance
with the laws of the State of Delaware. The cost of such arbitration, including
reasonable attorney's fees, shall be borne by the losing party or in such
proportion as the arbitrator(s) shall decide.

             [THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK.]

                                       7

      IN WITNESS WHEREOF, this Agreement has been executed as of the date first
above written

                                  STORYFIRST COMMUNICATIONS, INC

                                       By:__________________________________
                                                   Robert J. Clark
                                                   President

                                                OPTIONEE

                                       _____________________________________
                                       John T. Healy

                                       Address

                                       c/o H.A.M Media Group LLC
                                       305 Madison Avenue
                                       Suite 3016
                                       New York, NY  10017
                                       Tel. +212-297-2575
                                       JohnHealy@hammedia.com

                                       8

                                                                       Exhibit A

                         STORYFIRST COMMUNICATIONS, INC.
                            STOCK PURCHASE AGREEMENT

            AGREEMENT made this_____ day of_______________ 20___, by and between
StoryFirst Communications, Inc., a Delaware corporation, and John T. Healy,
Optionee under the Stock Option Agreement dated as of January 1, 2003.

            All capitalized terms in this Agreement shall have the meaning
assigned to them in this Agreement or in the attached Appendix.

      A.    EXERCISE OF OPTION

            1.    EXERCISE. Optionee hereby purchases [_______] shares of Common
Stock (the "Purchased Shares") pursuant to that certain option (the "Option")
granted Optionee on January 1, 2003 (the "Grant Date") to purchase up to [_____]
shares of Common Stock (the "Option Shares") at the exercise price of $500 per
share (the "Exercise Price") as set forth in the Option.

            2.    PAYMENT. Concurrently with the delivery of this Agreement to
the Corporation, Optionee shall pay the Exercise Price for the Purchased Shares
in accordance with the provisions of the Option Agreement and shall deliver
whatever additional documents may be required by the Option Agreement as a
condition for exercise.

            3.    SHAREHOLDER RIGHTS. Until such time as the Corporation
exercises the First Refusal Right, Optionee (or any successor in interest) shall
have all the rights of a shareholder (including voting, dividend and liquidation
rights) with respect to the Purchased Shares, subject, however, to the transfer
restrictions of Articles B and C.

      B.    SECURITIES LAW COMPLIANCE

            1.    RESTRICTED SECURITIES. The Purchased Shares have not been
registered under the 1933 Act and are being issued to Optionee in reliance upon
an exemption from such registration. Optionee hereby confirms that Optionee has
been informed that the Purchased Shares are restricted securities under the 1933
Act and may not be resold or transferred unless the Purchased Shares are first
registered under the Federal securities laws or unless an exemption from such
registration is available. Accordingly, Optionee hereby acknowledges that
Optionee is prepared to hold the Purchased Shares for an indefinite period and
that Optionee is aware that SEC Rule 144 issued under the 1933 Act which exempts
certain resales of unrestricted securities is not presently available to exempt
the resale of the Purchased Shares from the registration requirements of the
1933 Act.

            2.    RESTRICTIONS ON DISPOSITION OF PURCHASED SHARES. Optionee
shall make no disposition of the Purchased Shares (other than a Permitted
Transfer) unless and until there is compliance with all of the following
requirements:

                                      A-1

                                                                       Exhibit A

                  (i)   Optionee shall have provided the Corporation with a
      written summary of the terms and conditions of the proposed disposition.

                  (ii)  Optionee shall have complied with all requirements of
      this Agreement applicable to the disposition of the Purchased Shares.

                  (iii) Optionee shall have provided the Corporation with
      written assurances, in form and substance satisfactory to the Corporation,
      that (a) the proposed disposition does not require registration of the
      Purchased Shares under the 1933 Act or (b) all appropriate action
      necessary for compliance with the registration requirements of the 1933
      Act or any exemption from registration available under the 1933 Act
      (including Rule 144) has been taken.

            The Corporation shall not be required (i) to transfer on its books
any Purchased Shares which have been sold or transferred in violation of the
provisions of this Agreement or (ii) to treat as the owner of the Purchased
Shares, or otherwise to accord voting, dividend or liquidation rights to, any
transferee to whom the Purchased Shares have been transferred in contravention
of this Agreement.

            3.    RESTRICTIVE LEGENDS. The stock certificates for the Purchased
Shares shall be endorsed with one or more of the following restrictive legends:

                  "The shares represented by this certificate have not been
      registered under the Securities Act of 1933. The shares may not be sold or
      offered for sale in the absence of (a) an effective registration statement
      for the shares under such Act, (b) a "no action" letter of the Securities
      and Exchange Commission with respect to such sale or offer or (c)
      satisfactory assurances to the Corporation that registration under such
      Act is not required with respect to such sale or offer."

                  "The shares represented by this certificate are subject to
      certain rights of first refusal granted to the Corporation and accordingly
      may not be sold, assigned, transferred, encumbered, or in any manner
      disposed of except in conformity with the terms of a written agreement
      dated ____________, 20__ between the Corporation and the registered holder
      of the shares (or the predecessor in interest to the shares). A copy of
      such agreement is maintained at the Corporation's principal corporate
      offices."

      C.    TRANSFER RESTRICTIONS

            1.   RESTRICTION ON TRANSFER. Except for any Permitted Transfer,
Optionee shall not transfer, assign, encumber or otherwise dispose of any of the
Purchased Shares in contravention of the First Refusal Right or the Market
Stand-Off.

            2.    TRANSFEREE OBLIGATIONS. Each person (other than the
Corporation) to whom the Purchased Shares are transferred by means of a
Permitted Transfer must, as a condition precedent to the validity of such
transfer, acknowledge in writing to the Corporation

                                      A-2

                                                                       Exhibit A

that such person is bound by the provisions of this Agreement and that the
transferred shares are subject to (i) the Repurchase Right and (ii) the Market
Stand-Off, to the same extent such shares would be so subject if retained by
Optionee.

            3.    MARKET STAND-OFF.

                        (a)   In connection with any underwritten public
offering by the Corporation of its equity securities pursuant to an effective
registration statement filed under the 1933 Act, including the Corporation's
initial public offering, Owner shall not sell, make any short sale of, loan,
hypothecate, pledge, grant any option for the purchase of, or otherwise dispose
or transfer for value or otherwise agree to engage in any of the foregoing
transactions with respect to, any Purchased Shares without the prior written
consent of the Corporation or its underwriters. Such restriction (the "Market
Stand-Off") shall be in effect for such period of time from and after the
effective date of the final prospectus for the offering as may be requested by
the Corporation or such underwriters. In no event, however, shall such period
exceed one hundred eighty (180) days and the Market Stand-Off shall in all
events terminate two (2) years after the effective date of the Corporation's
initial public offering.

                        (b)   Owner shall be subject to the Market Stand-Off
provided and only if the officers and directors of the Corporation are also
subject to similar restrictions.

                        (c)   Any new, substituted or additional securities
which are by reason of any Recapitalization or Reorganization distributed with
respect to the Purchased Shares shall be immediately subject to the Market
Stand-Off, to the same extent the Purchased Shares are at such time covered by
such provisions.

                        (d)   In order to enforce the Market Stand-Off, the
Corporation may impose stop-transfer instructions with respect to the Purchased
Shares until the end of the applicable stand-off period.

      D.    RIGHT OF FIRST REFUSAL

            1.    GRANT. The Corporation is hereby granted the right of first
refusal (the "First Refusal Right"), exercisable in connection with any proposed
transfer of the Purchased Shares. For purposes of this Article D, the term
"transfer" shall include any sale, assignment, pledge, encumbrance or other
disposition of the Purchased Shares intended to be made by Owner, but shall not
include any Permitted Transfer.

            2.    NOTICE OF INTENDED DISPOSITION. In the event any Owner of
Purchased Shares desires to accept a bona fide third-party offer for the
transfer of any or all of such shares (the Purchased Shares subject to such
offer to be hereinafter referred to as the "Target Shares"), Owner shall
promptly (i) deliver to the Corporation written notice (the "Disposition
Notice") of the terms of the offer, including the purchase price and the
identity of the third-party offeror, and (ii) provide satisfactory proof that
the disposition of the Target Shares to such third-party offeror would not be in
contravention of the provisions set forth in Articles B and C.

                                       A-3

                                                                       Exhibit A

            3.    EXERCISE OF THE FIRST REFUSAL RIGHT. The Corporation shall,
for a period of twenty-five (25) days following receipt of the Disposition
Notice, have the right to repurchase any or all of the Target Shares subject to
the Disposition Notice upon the same terms as those specified therein or upon
such other terms (not materially different from those specified in the
Disposition Notice) to which Owner consents. Such right shall be exercisable by
delivery of written notice (the "Exercise Notice") to Owner prior to the
expiration of the twenty-five (25)-day exercise period. If such right is
exercised with respect to all the Target Shares, then the Corporation shall
effect the repurchase of such shares, including payment of the purchase price,
not more than five (5) business days after delivery of the Exercise Notice; and
at such time the certificates representing the Target Shares shall be delivered
to the Corporation.

            Should the purchase price specified in the Disposition Notice be
payable in property other than cash or evidences of indebtedness, the
Corporation shall have the right to pay the purchase price in the form of cash
equal in amount to the value of such property. If Owner and the Corporation
cannot agree on such cash value within ten (10) days after the Corporation's
receipt of the Disposition Notice, the valuation shall be made by an appraiser
of recognized standing selected by Owner and the Corporation or, if they cannot
agree on an appraiser within twenty (20) days after the Corporation's receipt of
the Disposition Notice, each shall select an appraiser of recognized standing
and the two (2) appraisers shall designate a third appraiser of recognized
standing, whose appraisal shall be determinative of such value. The cost of such
appraisal shall be shared equally by Owner and the Corporation. The closing
shall then be held on the later of (i) the fifth (5th) business day following
delivery of the Exercise Notice or (ii) the fifth (5th) business day after such
valuation shall have been made.

            4.    NON-EXERCISE OF THE FIRST REFUSAL RIGHT. In the event the
Exercise Notice is not given to Owner prior to the expiration of the twenty-five
(25)-day exercise period, Owner shall have a period of thirty (30) days
thereafter in which to sell or otherwise dispose of the Target Shares to the
third-party offeror identified in the Disposition Notice upon terms (including
the purchase price) no more favorable to such third-party offeror than those
specified in the Disposition Notice; provided, however, that any such sale or
disposition must not be effected in contravention of the provisions of Articles
B and C. The third-party offeror shall acquire the Target Shares free and clear
of the First Refusal Right, but the acquired shares shall remain subject to the
provisions of Article B and Paragraph C.3. In the event Owner does not effect
such sale or disposition of the Target Shares within the specified thirty
(30)-day period, the First Refusal Right shall continue to be applicable to any
subsequent disposition of the Target Shares by Owner until such right lapses.

            5.    PARTIAL EXERCISE OF THE FIRST REFUSAL RIGHT. In the event the
Corporation makes a timely exercise of the First Refusal Right with respect to a
portion, but not all, of the Target Shares specified in the Disposition Notice,
Owner shall have the option, exercisable by written notice to the Corporation
delivered within five (5) business days after Owner's receipt of the Exercise
Notice, to effect the sale of the Target Shares pursuant to either of the
following alternatives:

                  (i)   sale or other disposition of all the Target Shares to
      the third-party offeror identified in the Disposition Notice, but in full
      compliance with

                                      A-4

                                                                       Exhibit A

      the requirements of Paragraph D.4, as if the Corporation did not exercise
      the First Refusal Right; or

                  (ii)  sale to the Corporation of the portion of the Target
      Shares which the Corporation has elected to purchase, such sale to be
      effected in substantial conformity with the provisions of Paragraph D.3.
      The First Refusal Right shall continue to be applicable to any subsequent
      disposition of the remaining Target Shares until such right lapses.

            Owner's failure to deliver timely notification to the Corporation
shall be deemed to be an election by Owner to sell the Target Shares pursuant to
alternative (i) above.

            6.    RECAPITALIZATION/REORGANIZATION.

                  (a)   Any new, substituted or additional securities or other
      property which is by reason of any Recapitalization distributed with
      respect to the Purchased Shares shall be immediately subject to the First
      Refusal Right, but only to the extent the Purchased Shares are at the time
      covered by such right.

                  (b)   In the event of a Reorganization, the First Refusal
      Right shall remain in full force and effect and shall apply to the new
      capital stock or other property received in exchange for the Purchased
      Shares in consummation of the Reorganization, but only to the extent the
      Purchased Shares are at the time covered by such right.

            7.    LAPSE. The First Refusal Right shall lapse upon the earliest
to occur of (i) the first date on which shares of the Common Stock are held of
record by more than five hundred (500) persons, (ii) a determination is made by
the Board that a public market exists for the outstanding shares of Common Stock
or (iii) a firm commitment underwritten public offering covering the offer and
sale of the Common Stock in the aggregate amount of at least ten million dollars
($10,000,000). However, the Market Stand-Off shall continue to remain in full
force and effect following the lapse of the First Refusal Right.

      E.    GENERAL PROVISIONS

            1.    ASSIGNMENT. The Corporation may assign the First Refusal Right
to any person or entity selected by the Board, including (without limitation)
one or more shareholders of the Corporation.

            2.    NO EMPLOYMENT OR SERVICE CONTRACT. Nothing in this Agreement
or in the Option shall confer upon Optionee any right to continue in Service for
any period of specific duration or interfere with or otherwise restrict in any
way the rights of the Corporation (or any Parent or Subsidiary employing or
retaining Optionee) or of Optionee, which rights are hereby expressly reserved
by each, to terminate Optionee's Service at any time for any reason, with or
without cause.

                                      A-5

                                                                       Exhibit A

            3.    NOTICES. Any notice required to be given under this Agreement
shall be in writing and shall be deemed effective upon personal delivery or upon
deposit in the mail, registered or certified, postage prepaid and properly
addressed to the party entitled to such notice at the address indicated below
such party's signature line on this Agreement or at such other address as such
party may designate by ten (10) days advance written notice under this paragraph
to all other parties to this Agreement.

            4.    NO WAIVER. The failure of the Corporation in any instance to
exercise the First Refusal Right shall not constitute a waiver of any other
repurchase rights and/or rights of first refusal that may subsequently arise
under the provisions of this Agreement or any other agreement between the
Corporation and Optionee. No waiver of any breach or condition of this Agreement
shall be deemed to be a waiver of any other or subsequent breach or condition,
whether of like or different nature.

            5.    CANCELLATION OF SHARES. If the Corporation shall make
available, at the time and place and in the amount and form provided in this
Agreement, the consideration for the Purchased Shares to be repurchased in
accordance with the provisions of this Agreement, then from and after such time,
the person from whom such shares are to be repurchased shall no longer have any
rights as a holder of such shares (other than the right to receive payment of
such consideration in accordance with this Agreement). Such shares shall be
deemed purchased in accordance with the applicable provisions hereof, and the
Corporation shall be deemed the owner and holder of such shares, whether or not
the certificates therefor have been delivered as required by this Agreement.

      F.    MISCELLANEOUS PROVISIONS

            1.    OPTIONEE UNDERTAKING. Optionee hereby agrees to take whatever
additional action and execute whatever additional documents the Corporation may
deem necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on either Optionee or the Purchased Shares
pursuant to the provisions of this Agreement.

            2.    AGREEMENT IS ENTIRE CONTRACT. This Agreement constitutes the
entire contract between the parties hereto with regard to the subject matter
hereof.

            3.    GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware without resort
to that State's conflict-of-laws rules.

            4.    COUNTERPARTS. This Agreement may be executed in counterparts,
each of which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.

            5.    SUCCESSORS AND ASSIGNS. The provisions of this Agreement shall
inure to the benefit of, and be binding upon, the Corporation and its successors
and assigns and upon Optionee, Optionee's permitted assigns and the legal
representatives, heirs and legatees of

                                      A-6

                                                                       Exhibit A

Optionee's estate, whether or not any such person shall have become a party to
this Agreement and have agreed in writing to join herein and be bound by the
terms hereof.

            IN WITNESS WHEREOF, the parties have executed this Agreement on the
day and year first indicated above.

                                         STORYFIRST COMMUNICATIONS, INC.

                                         By: __________________________________

                                         Title:  ______________________________

                                         OPTIONEE

                                         ______________________________________

                                         Address:

                                      A-7

                                    APPENDIX

            The following definitions shall be in effect under the Agreement:

      A.    AGREEMENT shall mean this Stock Purchase Agreement.

      B.    BOARD shall mean the Corporation's Board of Directors.

      C.    COMMON STOCK shall mean the Corporation's common stock.

      D.    CORPORATION shall mean StoryFirst Communications, Inc., a Delaware
corporation.

      E.    DISPOSITION NOTICE shall have the meaning assigned to such term in
Paragraph D.2.

      F.    EXERCISE NOTICE shall have the meaning assigned to such term in
Paragraph D.3.

      G.    EXERCISE PRICE shall have the meaning assigned to such term in
Paragraph A.1.

      H.    FIRST REFUSAL RIGHT shall mean the right granted to the Corporation
in accordance with Article D.

      I.    GRANT DATE shall have the meaning assigned to such term in Paragraph
A.1.

      J.    MARKET STAND-OFF shall mean the market stand-off restriction
specified in Paragraph C.3.

      K.    1933 ACT shall mean the Securities Act of 1933, as amended.

      L.    OPTION shall have the meaning assigned to such term in Paragraph
A.1.

      M.    OPTION AGREEMENT shall mean all agreements and other documents
evidencing the Option.

      N.    OPTIONEE shall mean John T. Healy.

      O.    OWNER shall mean Optionee and all subsequent holders of the
Purchased Shares who derive their chain of ownership through a Permitted
Transfer from Optionee.

      P.    PARENT shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

      Q.    PERMITTED TRANSFER shall mean (i) a gratuitous transfer of the
Purchased Shares, provided and only if Optionee obtains the Corporation's prior
written consent to such transfer, (ii) a transfer of title to the Purchased
Shares effected pursuant to Optionee's will or the laws of intestate succession
following Optionee's death or (iii) a transfer to the Corporation in pledge as
security for any purchase-money indebtedness incurred by Optionee in connection
with the acquisition of the Purchased Shares.

      R.    PURCHASED SHARES shall have the meaning assigned to such term in
Paragraph A.1.

      S.    RECAPITALIZATION shall mean any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change
affecting the Corporation's outstanding Common Stock as a class without the
Corporation's receipt of consideration.

      T.    REORGANIZATION shall mean any of the following transactions:

                  (i)   a merger or consolidation in which the Corporation is
not the surviving entity,

                  (ii)  a sale, transfer or other disposition of all or
substantially all of the Corporation's assets,

                  (iii) a reverse merger in which the Corporation is the
surviving entity but in which the Corporation's outstanding voting securities
are transferred in whole or in part to a person or persons different from the
persons holding those securities immediately prior to the merger, or

                  (iv)  any transaction effected primarily to change the state
in which the Corporation is incorporated or to create a holding company
structure.

      U.    SEC shall mean the Securities and Exchange Commission.

      V.    SERVICE shall mean the Optionee's performance of services for the
Corporation (or any Parent or Subsidiary) in the capacity of an employee,
subject to the control and direction of the employer entity as to both the work
to be performed and the manner and method of performance, a non-employee member
of the board of directors or an independent consultant.

      W.    SUBSIDIARY shall mean any corporation (other than the Corporation)
in an unbroken chain of corporations beginning with the Corporation, provided
each corporation (other than the last corporation) in the unbroken chain owns,
at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other
corporations in such chain.

      X.    TARGET SHARES shall have the meaning assigned to such term in
Paragraph D.2.

                                      A-9

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