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                                                                    EXHIBIT 10.6

                                KERAVISION, INC.

                                1995 STOCK PLAN
                             (Adopted June 1, 1995)
                           (Amended November 1, 1996)
                             (Amended May 6, 1997)
                          (Amended February 26, 1998)


     1.  Purposes of the Plan.  The purposes of this Stock Plan are to attract
         --------------------
and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to the Employees and Consultants
of the Company and to promote the success of the Company's business.

     Options granted hereunder may be either Incentive Stock Options (as defined
under Section 422 of the Code) or Nonstatutory Stock Options, at the discretion
of the Board and as reflected in the terms of the written option agreement.

     2.  Definitions.  As used herein, the following definitions shall apply:
         -----------

         (a)  "Administrator" shall mean the Board or any of its Committees
               -------------
appointed pursuant to Section 4 of the Plan.

         (b)  "Affiliate" shall mean an entity in which the Company owns an
               ---------
equity interest.

         (c)  "Applicable Laws" shall have the meaning set forth in Section 4(a)
               ---------------
below.

         (d)  "Board" shall mean the Board of Directors of the Company.
               -----

         (e)  "Code" shall mean the Internal Revenue Code of 1986, as amended.
               ----

         (f)  "Committee" shall mean the Committee appointed by the Board of
               ---------
Directors in accordance with Section 4(a) of the Plan, if one is appointed.

         (g)  "Common Stock" shall mean the Common Stock of the Company.
               ------------

         (h)  "Company" shall mean KeraVision, Inc., a Delaware corporation.
               -------

         (i)  "Consultant" shall mean any person who is engaged by the
               ----------
Company or any Parent, Subsidiary or Affiliate to render consulting services
and is compensated for such consulting services, and any director of the
Company whether compensated for such services or not; provided that if and in
the event the Company registers any class of any equity security pursuant to
Section 12 of the Exchange Act, the term Consultant shall thereafter not
include
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directors who are not compensated for their services or are paid only a
director's fee by the Company.

         (j)  "Continuous Status as an Employee or Consultant" shall mean the
               ----------------------------------------------
absence of any interruption or termination of service as an Employee or
Consultant.  Continuous Status as an Employee or Consultant shall not be
considered interrupted in the case of sick leave, military leave, or any other
leave of absence approved by the Administrator; provided that such leave is for
a period of not more than 90 days or reemployment upon the expiration of such
leave is guaranteed by contract or statute.  For purposes of this Plan, a change
in status from an Employee to a Consultant or from a Consultant to an Employee
will not constitute a termination of employment.

         (k)  "Director" shall mean a member of the Board.
               --------

         (l)  "Employee" shall mean any person, including Named Executives,
               --------
Officers and Directors employed by the Company or any Parent, Subsidiary or
Affiliate of the Company.  The payment by the Company of a director's fee to a
Director shall not be sufficient to constitute "employment" of such Director by
the Company.

         (m)  "Exchange Act" shall mean the Securities Exchange Act of 1934, as
               ------------
amended.

         (n)  "Fair Market Value" means, as of any date, the value of Common
               -----------------
Stock determined as follows:

              (i) If the Common Stock is listed on any established stock
exchange or a national market system including without limitation the National
Market of the National Association of Securities Dealers, Inc. Automated
Quotation ("Nasdaq") System, its Fair Market Value shall be the closing sales
price for such stock as quoted on such system on the date of determination (if
for a given day no sales were reported, the closing bid on that day shall be
used), as such price is reported in The Wall Street Journal or such other
                                    -----------------------
source as the Administrator deems reliable;

              (ii) If the Common Stock is quoted on the Nasdaq System (but not
on the National Market thereof) or regularly quoted by a recognized securities
dealer but selling prices are not reported, its Fair Market Value shall be the
mean between the bid and asked prices for the Common Stock or;

              (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator.

         (o)  "Incentive Stock Option" shall mean an Option intended to
               ----------------------
qualify as an incentive stock option within the meaning of Section 422 of the
Code, as designated in the applicable written option agreement.


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         (p)  "Named Executive" shall mean any individual who, on the last
               ---------------
day of the Company's fiscal year, is the chief executive officer of the
Company (or is acting in such capacity) or among the four highest compensated
officers of the Company (other than the chief executive officer). Such officer
status shall be determined pursuant to the executive compensation disclosure
rules under the Exchange Act.

         (q)  "Nonstatutory Stock Option" shall mean an Option not intended to
               -------------------------
qualify as an Incentive Stock Option, as designated in the applicable written
option agreement.

         (r)  "Officer" shall mean a person who is an officer of the Company
               ---------
within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

         (s)  "Option" shall mean a stock option granted pursuant to the Plan.
               ------

         (t)  "Optioned Stock" shall mean the Common Stock subject to an Option.
               --------------

         (u)  "Optionee" shall mean an Employee or Consultant who receives an
               --------
Option.

         (v)  "Parent" shall mean a "parent corporation," whether now or
               ------
hereafter existing, as defined in Section 424(e) of the Code.

         (w)  "Plan" shall mean this 1995 Stock Plan.
               ----

         (x)  "Rule 16b-3" shall mean Rule 16b-3 promulgated under the
               ----------
Exchange Act as the same may be amended from time to time, or any successor
provision.

         (y)  "Share" shall mean a share of the Common Stock, as adjusted in
               -----
accordance with Section 14 of the Plan.

         (z)  "Subsidiary" shall mean a "subsidiary corporation," whether now or
               ----------
hereafter existing, as defined in Section 424(f) of the Code.

     3.  Stock Subject to the Plan.  Subject to the provisions of Section 14 of
         -------------------------
the Plan, the maximum aggregate number of shares that may be optioned and sold
under the Plan is 1,290,000 shares of Common Stock.  The Shares may be
authorized, but unissued, or reacquired Common Stock.

     If an Option should expire or become unexercisable for any reason without
having been exercised in full, the unpurchased Shares that were subject thereto
shall, unless the Plan shall have been terminated, become available for future
grant under the Plan.  Notwithstanding any other provision of the Plan, shares
issued under the Plan and later repurchased by the Company shall not become
available for future grant under the Plan.


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     4.  Administration of the Plan.
         ---------------------------

         (a)  Composition of Administrator.
              ----------------------------

              (i)   Multiple Administrative Bodies.  If permitted by
                    ------------------------------
Rule 16b-3, and by the legal requirements relating to the administration of
incentive stock option plans, if any, of applicable securities laws and the
Code (collectively, the "Applicable Laws"), the Plan may (but need not) be
administered by different administrative bodies with respect to Directors,
Officers who are not directors and Employees who are neither Directors nor
Officers.

              (ii)   Administration with respect to Directors and Officers.
                     -----------------------------------------------------
With respect to grants of Options to Employees or Consultants who are also
Officers or Directors of the Company, the Plan shall be administered by (A)
the Board, if the Board may administer the Plan in compliance with Rule 16b-3
as it applies to a plan intended to qualify thereunder as a discretionary plan
and Section 162(m) of the Code as it applies so as to qualify grants of
Options to Named Executives as performance-based compensation, or (B) a
Committee designated by the Board to administer the Plan, which Committee
shall be constituted in such a manner as to permit the Plan to comply with
Rule 16b-3 as it applies to a plan intended to qualify thereunder as a
discretionary plan, to qualify grants of Options to Named Executives as
performance-based compensation under Section 162(m) of the Code and otherwise
so as to satisfy the Applicable Laws.

              (iii)  Administration with respect to Other Persons.  With
                     --------------------------------------------
respect to grants of Options to Employees or Consultants who are neither
Directors nor Officers of the Company, the Plan shall be administered by (A)
the Board or (B) a Committee designated by the Board, which Committee shall be
constituted in such a manner as to satisfy the Applicable Laws.

              (iv)  General.   If a Committee has been appointed pursuant to
                    -------
subsection (ii) or (iii) of this Section 4(a), such Committee shall continue
to serve in its designated capacity until otherwise directed by the Board.
From time to time the Board may increase the size of any Committee and appoint
additional members thereof, remove members (with or without cause) and appoint
new members in substitution therefor, fill vacancies (however caused) and
remove all members of a Committee and thereafter directly administer the Plan,
all to the extent permitted by the Applicable Laws and, in the case of a
Committee appointed under subsection (ii), to the extent permitted by Rule 16b-
3 as it applies to a plan intended to qualify thereunder as a discretionary
plan, and to the extent required under Section 162(m) of the Code to qualify
grants of Options to Named Executives as performance-based compensation.

         (b) Powers of the Administrator.   Subject to the provisions of the
             ---------------------------
Plan and in the case of a Committee, the specific duties delegated by the
Board to such Committee, the Administrator shall have the authority, in its
discretion:

             (i)   to determine the Fair Market Value of the Common Stock, in
accordance with Section 2(m) of the Plan;


                                      -4-
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             (ii)   to select the Employees and Consultants to whom Options
may from time to time be granted hereunder;

             (iii)   to determine whether and to what extent Options are granted
hereunder;

             (iv)   to determine the number of shares of Common Stock to be
covered by each such award granted hereunder;

             (v)   to approve forms of agreement for use under the Plan;

             (vi)   to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any award granted hereunder (including, but not
limited to, the share price and any restriction or limitation, or any vesting
acceleration or waiver of forfeiture restrictions regarding any Option and/or
the shares of Common Stock relating thereto, based in each case on such
factors as the Administrator shall determine, in its sole discretion);

             (vii) to determine whether, to what extent and under what
circumstances Common Stock and other amounts payable with respect to an award
under this Plan shall be deferred either automatically or at the election of
the participant (including providing for and determining the amount, if any,
of any deemed earnings on any deferred amount during any deferral period); and

             (viii) to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Option shall have declined since the date the Option was granted;

         (c) Effect of Administrator's Decision.  All decisions,
             ----------------------------------
determinations and interpretations of the Administrator shall be final and
binding on all Optionees and any other holders of any Options.

     5.  Eligibility.
         -----------

         (a) Recipients of Grants.  Nonstatutory Stock Options may be granted to
             --------------------
Employees and Consultants.  Incentive Stock Options may be granted only to
Employees, provided, however, that Employees of an Affiliate shall not be
eligible to receive Incentive Stock Options.  An Employee or Consultant who has
been granted an Option may, if he or she is otherwise eligible, be granted an
additional Option or Options.

         (b) Type of Option.  Each Option shall be designated in the written
             --------------
option agreement as either an Incentive Stock Option or a Nonstatutory Stock
Option. However, notwithstanding such designations, to the extent that the
aggregate Fair Market Value of Shares with respect to which Incentive Stock
Options are exercisable for the first time by an Optionee during any calendar
year (under all plans of the Company or any Parent or Subsidiary) exceeds
$100,000, such excess Options shall be treated as Nonstatutory Stock Options.
For purposes of


                                      -5-
<PAGE>

this Section 5(b), Incentive Stock Options shall be taken into account in the
order in which they were granted, and the Fair Market Value of the Shares shall
be determined as of the time the Option with respect to such Shares is granted.

         (c) No Employment Rights.  The Plan shall not confer upon any
             --------------------
Optionee any right with respect to continuation of employment or consulting
relationship with the Company, nor shall it interfere in any way with his or
her right or the Company's right to terminate his or her employment or
consulting relationship at any time, with or without cause.

     6.  Term of Plan.  The Plan shall become effective upon the earlier to
         ------------
occur of its adoption by the Board or its approval by the shareholders of the
Company as described in Section 20 of the Plan.  It shall continue in effect for
a term of ten (10) years unless sooner terminated under Section 16 of the Plan.

     7.  Term of Option.  The term of each Option shall be the term stated in
         --------------
the Option Agreement; provided, however, that in the case of an Incentive Stock
Option, the term shall be no more than ten (10) years from the date of grant
thereof or such shorter term as may be provided in the Option Agreement.
However, in the case of an Option granted to an Optionee who, at the time the
Option is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary,
the term of the Option shall be five (5) years from the date of grant thereof or
such shorter term as may be provided in the Option Agreement.

     8.  Limitation on Grants to Employees.  Subject to adjustment as provided
         ---------------------------------
in this Plan, the maximum number of Shares which may be subject to options
granted to any one Employee under this Plan for any fiscal year of the Company
shall be 250,000.

     9.  Option Exercise Price and Consideration.
         ---------------------------------------

         (a) Exercise Price.  The per Share exercise price for the Shares to be
             --------------
issued pursuant to exercise of an Option shall be such price as is determined by
the Administrator, but shall be subject to the following:

             (i) In the case of an Incentive Stock Option

                 (A) granted to an Employee who, at the time of the grant of
such Incentive Stock Option, owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent
or Subsidiary, the per Share exercise price shall be no less than 110% of the
Fair Market Value per Share on the date of grant;

                 (B) granted to any other Employee, the per Share exercise
price shall be no less than 100% of the Fair Market Value per Share on the
date of grant.


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            (ii) In the case of a Nonstatutory Stock Option

                 (A) granted to a person who, at the time of the grant of such
Option, owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
per Share exercise price shall be no less than 110% of the Fair Market Value
per Share on the date of the grant;

                 (B) granted to a person who, at the time of the grant of such
Option, is a Named Executive of the Company, the per share Exercise Price
shall be no less than 100% of the Fair Market Value on the date of grant;

                 (C) granted to any person other than a Named Executive, the
per Share exercise price shall be no less than 85% of the Fair Market Value
per Share on the date of grant.

            (iii) In the case of an Option granted on or after the effective
date of registration of any class of equity security of the Company pursuant
to Section 12 of the Exchange Act and prior to six months after the
termination of such registration, the per Share exercise price shall be no
less than 100% of the Fair Market Value per Share on the date of grant.

        (b) Permissible Consideration.  The consideration to be paid for the
            -------------------------
Shares to be issued upon exercise of an Option, including the method of
payment, shall be determined by the Administrator (and, in the case of an
Incentive Stock Option, shall be determined at the time of grant) and may
consist entirely of (1) cash, (2) check, (3) promissory note, (4) other Shares
that (x) in the case of Shares acquired upon exercise of an Option either have
been owned by the Optionee for more than six months on the date of surrender
or were not acquired, directly or indirectly, from the Company, and (y) have a
Fair Market Value on the date of surrender equal to the aggregate exercise
price of the Shares as to which said Option shall be exercised, (5)
authorization from the Company to retain from the total number of Shares as to
which the Option is exercised that number of Shares having a Fair Market Value
on the date of exercise equal to the exercise price for the total number of
Shares as to which the Option is exercised, (6) delivery of a properly
executed exercise notice together with irrevocable instructions to a broker to
deliver promptly to the Company the amount of sale or loan proceeds required
to pay the exercise price, (7) delivery of an irrevocable subscription
agreement for the Shares that irrevocably obligates the option holder to take
and pay for the Shares not more than twelve months after the date of delivery
of the subscription agreement, (8) any combination of the foregoing methods of
payment, or (9) such other consideration and method of payment for the
issuance of Shares to the extent permitted under Applicable Laws. In making
its determination as to the type of consideration to accept, the Administrator
shall consider if acceptance of such consideration may be reasonably expected
to benefit the Company.

     10.  Exercise of Option.
          ------------------

          (a)   Procedure for Exercise; Rights as a Shareholder.  Any Option
                -----------------------------------------------
granted hereunder shall be exercisable at such times and under such conditions
as determined by the


                                      -7-
<PAGE>

Administrator, including performance criteria with respect to the Company and/or
the Optionee, and as shall be permissible under the terms of the Plan.

     An Option may not be exercised for a fraction of a Share.

     An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full payment may, as authorized by the Administrator, consist of any
consideration and method of payment allowable under Section 9(b) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option.  The Company shall issue (or cause
to be issued) such stock certificate promptly upon exercise of the Option.  No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 14 of the Plan.

     Exercise of an Option in any manner shall result in a decrease in the
number of Shares which thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

          (b)   Termination of Status as an Employee or Consultant.  In the
                ---------------------------------------------------
event of termination of an Optionee's Continuous Status as an Employee or
Consultant, such Optionee may, but only within three (3) months (or such other
period of time, not exceeding six (6) months in the case of a Nonstatutory
Stock Option, as is determined by the Administrator) after the date of such
termination (but in no event later than the date of expiration of the term of
such Option as set forth in the Option Agreement), exercise his or her Option
to the extent that he or she was entitled to exercise it at the date of such
termination. To the extent that the Optionee was not entitled to exercise the
Option at the date of such termination, or if the optionee does not exercise
such Option (which he or she was entitled to exercise) within the time
specified herein, the Option shall terminate.

          (c)   Disability of Optionee.  Notwithstanding Section 10(b) above,
                ----------------------
in the event of termination of an Optionee's Continuous Status as an Employee
or Consultant as a result of his or her total and permanent disability (as
defined in Section 22(e)(3) of the Code), he or she may, but only within six
(6) months (or such other period of time not exceeding twelve (12) months as
is determined by the Administrator, with such determination in the case of an
Incentive Stock Option being made at the time of grant of the Option) from the
date of such termination (but in no event later than the date of expiration of
the term of such Option as set forth in the Option Agreement), exercise his or
her Option to the extent he or she was entitled to exercise it at the date of
such termination. To the extent that he or she was not entitled to exercise
the Option at the date of termination, or if he does not exercise such Option
(which he was entitled to exercise) within the time specified herein, the
Option shall terminate.


                                      -8-
<PAGE>

          (d)  Death of Optionee.   In the event of the death of an Optionee:
               -----------------

              (i) during the term of the Option who is at the time of his
death an Employee or Consultant of the Company and who shall have been in
Continuous Status as an Employee or Consultant since the date of grant of the
Option, the Option may be exercised, at any time within six (6) months
following the date of death (but in no event later than the date of expiration
of the term of such Option as set forth in the Option Agreement), by the
Optionee's estate or by a person who acquired the right to exercise the Option
by bequest or inheritance but only to the extent of the right to exercise that
would have accrued had the Optionee continued living and remained in
Continuous Status as an Employee or Consultant six (6) months (or such other
period of time as is determined by the Administrator as provided above) after
the date of death, subject to the limitation set forth in Section 5(b); or

              (ii) within thirty (30) days (or such other period of time not
exceeding three (3) months as is determined by the Administrator, with such
determination in the case of an Incentive Stock Option being made at the time
of grant of the Option) after the termination of Continuous Status as an
Employee or Consultant, the Option may be exercised, at any time within six
(6) months following the date of death (but in no event later than the date of
expiration of the term of such Option as set forth in the Option Agreement),
by the Optionee's estate or by a person who acquired the right to exercise the
Option by bequest or inheritance, but only to the extent of the right to
exercise that had accrued at the date of termination.

          (e) Rule 16b-3.  Options granted to persons subject to Section 16(b)
             ----------
of the Exchange Act must comply with Rule 16b-3 and shall contain such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions.

     11.  Withholding Taxes.  As a condition to the exercise of Options granted
          -----------------
hereunder, the Optionee shall make such arrangements as the Administrator may
require for the satisfaction of any federal, state, local or foreign withholding
tax obligations that may arise in connection with the exercise, receipt or
vesting of such Option.  The Company shall not be required to issue any Shares
under the Plan until such obligations are satisfied.

     12.  Stock Withholding to Satisfy Withholding Tax Obligations.  At the
          --------------------------------------------------------
discretion of the Administrator, Optionees may satisfy withholding obligations
as provided in this paragraph.  When an Optionee incurs tax liability in
connection with an Option which tax liability is subject to tax withholding
under applicable tax laws, and the Optionee is obligated to pay the Company an
amount required to be withheld under applicable tax laws, the Optionee may
satisfy the withholding tax obligation by one or some combination of the
following methods: (a) by cash payment, or (b) out of Optionee's current
compensation, (c) if permitted by the Administrator, in its discretion, by
surrendering to the Company Shares that (i) in the case of Shares previously
acquired from the Company, have been owned by the Optionee for more than six
months on the date of surrender, and (ii) have a fair market value on the date
of surrender equal to or less than Optionee's marginal tax rate times the
ordinary income recognized, or (d) by electing to have the Company withhold from
the Shares to be issued upon exercise of the Option that number of


                                      -9-
<PAGE>

Shares having a fair market value equal to the amount required to be withheld.
For this purpose, the fair market value of the Shares to be withheld shall be
determined on the date that the amount of tax to be withheld is to be determined
(the "Tax Date").

          Any surrender by an Officer or Director of previously owned Shares to
satisfy tax withholding obligations arising upon exercise of this Option must
comply with the applicable provisions of Rule 16b-3 and shall be subject to
such additional conditions or restrictions as may be required thereunder to
qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

          All elections by an Optionee to have Shares withheld to satisfy tax
withholding obligations shall be made in writing in a form acceptable to the
Administrator and shall be subject to the following restrictions:

     (a)  the election must be made on or prior to the applicable Tax Date;

     (b)  once made, the election shall be irrevocable as to the particular
Shares of the Option as to which the election is made;

     (c)  all elections shall be subject to the consent or disapproval of the
Administrator;

     (d) if the Optionee is an Officer or Director, the election must comply
with the applicable provisions of Rule 16b-3 and shall be subject to such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions.

     In the event the election to have Shares withheld is made by an Optionee
and the Tax Date is deferred under Section 83 of the Code because no election
is filed under Section 83(b) of the Code, the Optionee shall receive the full
number of Shares with respect to which the Option is exercised but such
Optionee shall be unconditionally obligated to tender back to the Company the
proper number of Shares on the Tax Date.

     13.  Non-Transferability of Options.   The Option may not be sold, pledged,
          ------------------------------
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution.  The designation of a
beneficiary by an Optionee will not constitute a transfer.  An Option may be
exercised, during the lifetime of the Optionee, only by the Optionee or a
transferee permitted by this Section 13.

     14.  Adjustments Upon Changes in Capitalization; Corporate Transactions.
          ------------------------------------------------------------------

          (a)  Adjustment.  Subject to any required action by the shareholders
               ----------
of the Company, the number of shares of Common Stock covered by each
outstanding Option, the number of shares of Common Stock that have been
authorized for issuance under the Plan but as to which no Options have yet
been granted or which have been returned to the Plan upon


                                     -10-
<PAGE>

cancellation or expiration of an Option, the maximum number of shares of
Common Stock for which Options may be granted to any employee under Section 8
of the Plan, and the price per share of Common Stock covered by each such
outstanding Option, shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, or any other increase or decrease in the number of issued
shares of Common Stock effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of
the Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Administrator, whose
determination in that respect shall be final, binding and conclusive. Except
as expressly provided herein, no issuance by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares of Common Stock subject to an Option.

     (b)  Corporate Transactions.  In the event of the proposed dissolution or
     ----------------------
liquidation of the Company, the Option will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the
Administrator. The Administrator may, in the exercise of its sole discretion
in such instances, declare that any Option shall terminate as of a date fixed
by the Administrator and give each Optionee the right to exercise his or her
Option as to all of the Optioned Stock, including Shares as to which the
Option would not otherwise be exercisable. In the event of a proposed sale of
all or substantially all of the assets of the Company, or the merger of the
Company with or into another corporation, the Option shall be assumed or an
equivalent option shall be substituted by such successor corporation or a
parent or subsidiary of such successor corporation, unless the Administrator
determines, in the exercise of its sole discretion and in lieu of such
assumption or substitution, that the Optionee shall have the right to exercise
the Option as to all of the Optioned Stock, including Shares as to which the
Option would not otherwise be exercisable or the Administrator determines to
terminate the unvested and unexercised option. If the Administrator makes an
Option exercisable in lieu of assumption or substitution in the event of a
merger or sale of assets, the Administrator shall notify the Optionee that the
Option shall be exercisable for a period of thirty (30) days from the date of
such notice, and the Option will terminate upon the expiration of such period.

     15.  Time of Granting Options.  The date of grant of an Option shall, for
          ------------------------
all purposes, be the date on which the Administrator makes the determination
granting such Option or such other date as is determined by the Administrator.
Notice of the determination shall be given to each Employee or Consultant to
whom an Option is so granted within a reasonable time after the date of such
grant.

     16.  Amendment and Termination of the Plan.
          --------------------------------------

          (a)  Amendment and Termination.   The Board may amend or terminate
               -------------------------
the Plan from time to time in such respects as the Board may deem advisable;
provided that, the following revisions or amendments shall require approval of
the shareholders of the Company in the manner described in Section 20 of the
Plan:


                                     -11-
<PAGE>

               (i) any increase in the number of Shares subject to the Plan,
          other than an adjustment under Section 14 of the Plan;

               (ii) any change in the designation of the class of persons
          eligible to be granted Options;

               (iii) any change in the limitation on grants to employees as
          described in Section 8 of the Plan or other changes which would
          require shareholder approval to qualify options granted hereunder as
          performance-based compensation under Section 162(m) of the Code; or

                (iv) any revision or amendment requiring shareholder approval
          in order to preserve the qualification of the Plan under Rule 16b-3.

          (b)  Shareholder Approval.  If any amendment requiring shareholder
               --------------------
approval under Section 13(a) of the Plan is made subsequent to the first
registration of any class of equity securities by the Company under Section 12
of the Exchange Act, such shareholder approval shall be solicited as described
in Section 20 of the Plan.

          (c)  Effect of Amendment or Termination.  Any such amendment or
               ----------------------------------
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee
and the Board, which agreement must be in writing and signed by the Optionee
and the Company.

     17.  Conditions Upon Issuance of Shares.  Shares shall not be issued
          ----------------------------------
pursuant to the exercise of an Option unless the exercise of such Option and
the issuance and delivery of such Shares pursuant thereto shall comply with
all relevant provisions of law, including, without limitation, the Securities
Act of 1933, as amended, the Exchange Act, the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon which
the Shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

         As a condition to the exercise of an Option, the Company may require
the person exercising such Option to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by any
of the aforementioned relevant provisions of law.

     18.  Reservation of Shares.   The Company, during the term of this Plan,
          ---------------------
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.  The inability of the
Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability


                                     -12-
<PAGE>

in respect of the failure to issue or sell such Shares as to which such
requisite authority shall not have been obtained.

     19.  Option Agreement.   Options shall be evidenced by written option
          ----------------
agreements in such form as the Board shall approve.

     20.  Shareholder Approval.
          --------------------

          (a) Continuance of the Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months before or after the date
the Plan is adopted. Such shareholder approval shall be obtained in the manner
and to the degree required under applicable federal and state law and the
rules of any stock exchange upon which the Shares are listed.

          (b) In the event that the Company registers any class of equity
securities pursuant to Section 12 of the Exchange Act, any required approval
of the shareholders of the Company obtained after such registration shall be
solicited substantially in accordance with Section 14(a) of the Exchange Act
and the rules and regulations promulgated thereunder.

          (c) If any required approval by the shareholders of the Plan itself
or of any amendment thereto is solicited at any time otherwise than in the
manner described in Section 20(b) hereof, then the Company shall, at or prior
to the first annual meeting of shareholders held subsequent to the later of
(1) the first registration of any class of equity securities of the Company
under Section 12 of the Exchange Act or (2) the granting of an Option
hereunder to an officer or director after such registration, do the following:

               (i) furnish in writing to the holders entitled to vote for the
Plan substantially the same information that would be required (if proxies to
be voted with respect to approval or disapproval of the Plan or amendment were
then being solicited) by the rules and regulations in effect under Section
14(a) of the Exchange Act at the time such information is furnished; and

               (ii) file with, or mail for filing to, the Securities and
Exchange Commission four copies of the written information referred to in
subsection (i) hereof not later than the date on which such information is
first sent or given to shareholders.

     21.  Information to Optionees.  The Company shall provide to each Optionee,
          ------------------------
during the period for which such Optionee has one or more Options outstanding,
copies of all annual reports and other information which are provided to all
shareholders of the Company.


                                     -13-

<PAGE>

                                   APPENDIX A

                       OPTION GRANTS TO FRENCH EMPLOYEES
                       ---------------------------------


  This Appendix A to the KeraVision, Inc. 1995 Stock Option Plan (the "Plan")
sets forth special rules under which options shall be granted to individuals who
are employees of KeraVision S.A.R.L. (the "S.A.R.L.") and whose salary is paid
in French currency on the date of the grant.  To the extent the rules in this
Appendix A are not consistent with the provisions of the Plan, this Appendix A
shall govern.  To the extent that there is no inconsistency between the
provisions of the Plan and this Appendix A, the provisions of the Plan shall
govern.  This Appendix A shall be modified as necessary in order for options
granted hereunder to qualify for benefits as provided under French law.

  1.  Option Price.  The purchase price of the shares of stock covered by an
      ------------
option shall not be less than ninety-five percent (95%) of the closing stock
price on the Nasdaq National Market averaged over a period of twenty (20)
consecutive trading days, ending on the date of grant.  The purchase price of an
outstanding stock option cannot be modified except as specifically allowed by
applicable French law.

  2.  Option Grant Date.  An option cannot be granted before twenty (20) daily
      -----------------
trading sessions of the Company's Common Stock on the Nasdaq National Market
after an increase in the authorized Capital of KeraVision, Inc. or the
detachment of a coupon giving rise to a dividend on the Common Stock of
KeraVision, Inc.

  3.  Eligibility.
      -----------

      (a) Consultants to the S.A.R.L. are eligible to receive option grants
under the Plan only if they have in place on the date of grant a work contract
with the S.A.R.L., the parent corporation or a subsidiary corporation.

      (b) An individual who owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of KeraVision, Inc. cannot
participate in the Plan.

  4.  Stock Limitation.  The maximum aggregate number of shares which may be
      ----------------
optioned and sold under the Plan as set forth in Section 3 of the Plan shall not
exceed one-third (1/3) of the authorized capital of KeraVision, Inc.


                                     -14-