Document:

EXHIBIT 10.41

                                RIGHTS AGREEMENT
                                ----------------

                  This Rights  Agreement (the  "Agreement")  is made and entered
into  as of  this  17th  day of  August,  2007  by  and  among  INTRAOP  MEDICAL
CORPORATION, a Nevada corporation (the "Company"), the "Investors" named in that
certain Common Stock and Warrant Purchase Agreement of even date herewith by and
among  the  Company  and  the  Investors  (the  "Purchase  Agreement"),  and the
"Existing   Investors",   "Insiders",   "Officers  and   Directors"  and  "Other
Securityholders" named herein.

         The parties hereby agree as follows:

         1. Certain Definitions. Capitalized terms that are used but not defined
herein shall have the meaning assigned to them in the Purchase Agreement.

         As used in this Agreement, the following terms shall have the following
meanings:

         "Affiliate"  means, with respect to any Person,  any other Person which
directly or indirectly  controls,  is controlled  by, or is under common control
with, such Person.

         "Board" means the board of directors of the Company.

         "Business Day" means a day,  other than a Saturday or Sunday,  on which
banks in New York City are open for the general transaction of business.

         "Common Stock" means the Company's  common stock,  par value $0.001 per
share.

          "Effectiveness   Date"  means  the  date  on  which  the  Registration
Statement is declared effective by the SEC.

         "Exchange Act" means the  Securities  Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

          "Existing  Investors" means the Existing  Investors  identified in the
Purchase  Agreement  and any  Affiliate or permitted  transferee of any Existing
Investor who is a subsequent holder of any Registrable Securities.

         "Holders"  means  the  Investors,   the  Insiders,   the  Officers  and
Directors, the Existing Investors and the Other Securityholders.

         "Insiders" means the Insiders  identified in the Purchase Agreement and
any Affiliate or permitted  transferee of any Insider who is a subsequent holder
of any Registrable Securities.

         "Investors"  means the Investors  identified in the Purchase  Agreement
and any  Affiliate or permitted  transferee  of any Investor who is a subsequent
holder of any Registrable Securities.

          "Lacuna" means Lacuna Hedge Fund LLLP, an Investor.

<PAGE>

         "Lacuna  Designees" means the designees of Lacuna for nomination to the
Board  pursuant to Section 7 hereof,  who shall  initially  be  Rawleigh  Ralls,
Oliver Janssen, John Powers and Greg Koonsman.

         "Nasdaq" means The Nasdaq Stock Market, Inc.

         "Officers and Directors" means the Officers and Directors identified in
the Purchase Agreement and any Affiliate or permitted transferee of any Investor
who is a subsequent holder of any Registrable Securities.

         "Other  Securityholders"  means  Hultquist  Capital LLC and MCR Capital
Corp. and any Affiliate or permitted  transferee of any Other Securityholder who
is a subsequent holder of any Registrable Securities.

         "Person"  means  an  individual,   corporation,   partnership,  limited
liability  company,  trust,  business trust,  association,  joint stock company,
joint venture, sole proprietorship,  unincorporated  organization,  governmental
authority or any other form of entity not specifically listed herein.

         "Prospectus"   means  the  prospectus   included  in  any  Registration
Statement, as amended or supplemented by any prospectus supplement, with respect
to the  terms of the  offering  of any  portion  of the  Registrable  Securities
covered  by  such  Registration  Statement  and  by  all  other  amendments  and
supplements  to the  prospectus,  including  post-effective  amendments  and all
material incorporated by reference in such prospectus.

         "Register,"  "registered"  and  "registration"  refer to a registration
made by preparing  and filing a  Registration  Statement or similar  document in
compliance  with the Securities Act (as defined  below),  and the declaration or
ordering of effectiveness of such Registration Statement or document.

         "Registrable  Securities" means (i) the Shares, (ii) the Warrant Shares
and (iii) any other securities issued or issuable with respect to or in exchange
for Shares and the Warrant Shares, including shares issued upon any stock split,
stock dividend, recapitalization,  subdivision or similar event, provided that a
security  shall cease to be a  Registrable  Security upon (A) sale pursuant to a
Registration  Statement or Rule 144 under the Securities  Act; (B) such security
becoming  eligible for sale by the Holders  pursuant to Rule 144(k);  or (C) the
ability of such Holder to sell all such Registrable  Securities pursuant to Rule
144 in any three (3) month period; provided further that a security shall not be
considered  a  Registrable  Security  to the extent that it is the subject of an
agreement (other than this Agreement) between the Company and the holder thereof
to have such security registered under the Securities Act.

         "Registration  Statement"  means  any  registration  statement  of  the
Company  filed  under the  Securities  Act that  covers the resale of any of the
Registrable Securities pursuant to the provisions of this Agreement,  amendments
and  supplements  to  such  Registration  Statement,   including  post-effective
amendments,  all  exhibits and all  material  incorporated  by reference in such
Registration Statement.

         "Required Holders" means the Holders holding,  at the time the approval
of such Holders is sought, a majority of the Registrable  Securities held by the
Holders.

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<PAGE>

         "Required  Investors"  means  the  Investors  holding,  at the time the
approval of such Investors is sought,  a majority of the Registrable  Securities
held by the Investors.

         "SEC" means the Securities and Exchange Commission.

         "Securities Act" means the Securities Act of 1933, as amended,  and the
rules and regulations promulgated thereunder.

         "Shares"  means the  shares  of Common  Stock  issued  pursuant  to the
Purchase Agreement.

         "Staff" means the professional employees of the SEC.

         "Warrant  Shares"  means  the  shares  of Common  Stock  issuable  upon
exercise of the Warrants.

         "Warrants"  means (i) the Investor  Warrants,  (ii) the January  Bridge
Note Warrants,  (iii) the Debenture Warrants, (iv) the Insider Warrants, (v) the
Officer and  Director  Warrants,  (vi) the  Hultquist  Warrant and (vii) the MCR
Capital Warrant.

         2.  Registration.

                  (a) Registration Statement. Within forty-five (45) days of the
 request (the "Request") of the Required  Holders (the "Filing  Deadline"),  the
 Company  shall prepare and file with the SEC a  Registration  Statement on Form
 SB-2 (or such other Form now or  hereafter  available  to the  Company for such
 registration)  covering  the  resale  of all the  Registrable  Securities.  The
 Registration  Statement  shall  also cover to the  extent  allowable  under the
 Securities Act and the rules promulgated thereunder,  such indeterminate number
 of  additional  shares of Common  Stock  resulting  from  stock  splits,  stock
 dividends or similar  transactions with respect to the Registrable  Securities.
 The Registration  Statement (and each amendment or supplement thereto, and each
 request  for  acceleration  of  effectiveness  thereof)  shall be  provided  in
 accordance  with  Section  3(c) to the Holders and their  counsel  prior to its
 filing or other submission.

                  (b) Expenses.  The Company  shall pay all expenses  associated
 with each  registration,  including  filing and printing  fees,  the  Company's
 counsel and accounting fees and expenses and costs associated with clearing the
 Registrable  Securities for sale under  applicable  state  securities  laws and
 listing  fees,  but  excluding  fees and expenses of counsel to the Holders and
 discounts,  commissions  and  fees of  underwriters,  selling  brokers,  dealer
 managers  or similar  securities  industry  professionals  with  respect to the
 Registrable  Securities  being sold,  provided  that, the Company shall pay the
 reasonable  fees and  expenses of one (1) counsel for the Holders not to exceed
 $25,000  incurred  in  connection  with  the  preparation  and  filing  of  the
 Registration  Statement and review thereof prior to the Effectiveness  Date (it
 being understood and agreed that Magnetar Capital Master Fund, Ltd shall not be
 represented  by such  counsel  and  shall  instead  be  represented  by its own
 separate counsel in connection with such matters).

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<PAGE>

                  (c)      Effectiveness.

                           (i) The  Company  shall use  commercially  reasonable
efforts  to  have  the  Registration  Statement  declared  effective  as soon as
practicable.  The Company  shall notify the Holders by  facsimile or  electronic
mail as promptly as practicable,  and in any event, within one (1) Business Day,
after any  Registration  Statement is declared  effective  and shall provide the
Holders with copies of any related  Prospectus to be used in connection with the
sale or other disposition of the securities covered thereby.

                           (ii)  Except as required  by the  provisions  of this
Agreement,  without the consent of the Required  Holders,  the Company shall not
file any registration statement, other than a registration statement relating to
(i) any employee  benefit  plan or  securities  issued  pursuant to any employee
benefit plan (whether resale or otherwise) or (ii) corporate  reorganization  or
transaction  under Rule 145 of the Securities  Act,  including any  registration
statement  related  to the  issuance  or  resale  of  securities  issued in such
transaction.  The  restrictions  set forth in this Section 2(c) shall  terminate
three (3) months after all Registrable Securities have been registered.

         3.  Suspension.

                  (a) Subject to Section  3(b) below,  in the event:  (i) of any
request by the SEC or any other federal or state  governmental  authority during
the period of  effectiveness  of the  Registration  Statement for  amendments or
supplements  to  the  Registration   Statement  or  related  prospectus  or  for
additional  information so that the  Registration  Statement will not contain an
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements  therein not misleading or
otherwise  fail to  comply  with the  applicable  rules and  regulations  of the
federal securities laws; (ii) of the issuance by the SEC or any other federal or
state  governmental  authority of any stop order suspending the effectiveness of
the  Registration  Statement  or the  initiation  of any  proceedings  for  that
purpose; (iii) of the receipt by the Company of any notification with respect to
the suspension of the  qualification  or exemption from  qualification of any of
the Registrable Securities for sale in any jurisdiction or the initiation of any
proceeding for such purpose (provided,  that, considering the advice of counsel,
the Company reasonably believes that it must qualify in such jurisdiction); (iv)
of any event or  circumstance  that,  considering  the  advice of  counsel,  the
Company  reasonably  believes  necessitates  the  making of any  changes  in the
Registration  Statement or related prospectus,  or any document  incorporated or
deemed to be  incorporated  therein by  reference,  so that,  in the case of the
Registration  Statement,  it will not contain any untrue statement of a material
fact or any omission to state a material fact  required to be stated  therein or
necessary to make the statements therein not misleading, and that in the case of
a related  prospectus,  it will not contain any untrue  statement  of a material
fact or any omission to state a material fact  required to be stated  therein or
necessary  to make the  statements  therein,  in the light of the  circumstances
under which they were made, not misleading;  or (v) that the Company  reasonably
believes, considering the advice of counsel, that the Company is, in the absence
of a suspension described hereunder,  required under state or federal securities
laws to  disclose  any  corporate  development,  the  disclosure  of which could
reasonably be expected to have a material  adverse effect upon the Company,  its
stockholders, a potentially material transaction or event involving the Company,
or any negotiations,  discussions or proposals  directly relating thereto,  then
the Company shall deliver a certificate in writing to each holder of Registrable
Securities (the  "Suspension  Notice") to the effect of the foregoing (but in no
event, without the prior written consent of a Holder, shall the Company disclose
to  such  Holder  any of the  facts  or  circumstances  regarding  any  material
nonpublic  information) and, upon receipt of such Suspension  Notice, the Holder
will  refrain  from  selling  any   Registrable   Securities   pursuant  to  the
Registration  Statement (a "Suspension") until the Holder's receipt of copies of
a supplemented or amended prospectus  prepared and filed by the Company or until
the Holder is advised in writing by the Company that the current  prospectus may
be used and the holder has received  copies of any  additional  or  supplemental
filings that are  incorporated  or deemed  incorporated by reference in any such
prospectus.

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<PAGE>

                  (b)  Notwithstanding  the  foregoing,  the  Company  shall not
suspend any  Registration  Statement or related  prospectus for more than thirty
(30)  consecutive  days or for a total of not more than  ninety (90) days in any
twelve  (12) month  period  (each a  "Permitted  Suspension"  and  together  the
"Permitted Suspensions").

                  (c) The Company shall use commercially  reasonable  efforts to
terminate a Suspension as promptly as practicable after delivery of a Suspension
Notice to the Holders.

         4.  Company Obligations.  The Company shall use commercially reasonable
efforts to effect the  registration of the Registrable  Securities in accordance
with the terms hereof,  and pursuant thereto the Company shall, as expeditiously
as possible:

                  (a)  use  commercially   reasonable   efforts  to  cause  such
Registration  Statement to become effective and to remain continuously effective
for a period that will  terminate  upon the earlier of (i) the date on which all
Registrable Securities have been sold pursuant to the Registration Statement, as
amended  from time to time,  (ii) the date on which all  Registrable  Securities
covered by such  Registration  Statement  may be sold  pursuant to Rule 144 in a
three-month  period and (iii) the three-year  anniversary  of the  Effectiveness
Date (the  "Effectiveness  Period")  and advise the Holders in writing  when the
Effectiveness Period has expired;

                  (b)  prepare  and  file  with  the  SEC  such  amendments  and
post-effective  amendments to the Registration Statement and such supplements to
the Prospectus as may be necessary to keep the Registration  Statement effective
for the period  specified in Section 4(a) and to comply with the  provisions  of
the Securities Act and the Exchange Act with respect to the  distribution of all
of the Registrable Securities covered thereby;

                  (c) provide  copies to and permit  counsel  designated  by the
Holders to review the  Registration  Statement and any amendments or supplements
thereto and any comments made by the Staff and the Company's  responses  thereto
not less than three (3)  Business  Days prior to its filing  with the SEC or its
receipt from the SEC as applicable and shall duly consider comments made by such
counsel thereon;

                  (d)  furnish  to the  Holders  and  their  legal  counsel  (i)
promptly  after the same is prepared  and publicly  distributed,  filed with the
SEC, or received by the Company (but not later than two (2) Business  Days after
the filing date,  receipt date or sending date, as the case may be) one (1) copy
of any  Registration  Statement  and any  amendment  thereto,  each  preliminary
prospectus and Prospectus  and each  amendment or supplement  thereto,  and each
letter written by or on behalf of the Company to the SEC or the Staff,  and each
item of correspondence  from the SEC or the Staff, in each case relating to such
Registration  Statement  (other than any portion of any thereof  which  contains
information for which the Company has sought confidential  treatment),  and (ii)
an electronic copy of a Prospectus,  including a preliminary prospectus, and all
amendments and  supplements  thereto and such other documents as each Holder may
reasonably  request  in  connection  with  the  disposition  of the  Registrable
Securities  owned by such Holder  that are  covered by the related  Registration
Statement;

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<PAGE>

                  (e) use  commercially  reasonable  efforts to (i)  prevent the
issuance of any stop order or other  suspension  of  effectiveness  and, (ii) if
such order is issued,  obtain the  withdrawal  of any such order at the earliest
practicable  time and to notify each Holder of the issuance of such an order and
the resolution thereof;

                  (f) prior to any public  offering of  Registrable  Securities,
use commercially reasonable efforts to register or qualify or cooperate with the
Holders and their counsel in connection with the  registration or  qualification
of such  Registrable  Securities for offer and sale under the securities or blue
sky laws of such jurisdictions requested by the Holders and do any and all other
commercially  reasonable  acts or things  necessary  or  advisable to enable the
distribution in such jurisdictions of the Registrable  Securities covered by the
Registration  Statement;  provided,  however,  that  the  Company  shall  not be
required in connection  therewith or as a condition thereto to (i) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify
but for this  Section  3(f),  (ii)  subject  itself to general  taxation  in any
jurisdiction  where it would not  otherwise  be so subject but for this  Section
3(f),  or (iii)  file a  general  consent  to  service  of  process  in any such
jurisdiction;

                  (g)  use   commercially   reasonable   efforts  to  cause  all
Registrable  Securities covered by a Registration Statement to be listed on each
securities  exchange,  interdealer  quotation  system  or other  market on which
similar securities issued by the Company are then listed;

                  (h)  immediately  notify  the  Holders,  at  any  time  when a
Prospectus relating to Registrable  Securities is required to be delivered under
the Securities Act, upon discovery that, or upon the happening of any event as a
result of which, the Prospectus included in a Registration Statement, as then in
effect,  includes an untrue  statement of a material  fact or omits to state any
material fact required to be stated  therein or necessary to make the statements
therein not misleading in light of the circumstances  then existing,  and at the
request of any such  holder,  promptly  prepare  and  furnish to such  holder an
electronic  copy of a supplement to or an amendment of such Prospectus as may be
necessary so that, as thereafter delivered to the purchasers of such Registrable
Securities,  such Prospectus shall not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading in light of the circumstances then
existing;

                  (i) otherwise use  commercially  reasonable  efforts to comply
with all  applicable  rules and  regulations of the SEC under the Securities Act
and the Exchange Act, take such other actions as may be reasonably  necessary to
facilitate the registration of the Registrable  Securities  hereunder,  and make
available  to its  security  holders,  as soon as  reasonably  practicable  upon
request,  but not  later  than the  Availability  Date (as  defined  below),  an
earnings statement  covering a period of at least twelve (12) months,  beginning
after  the  effective  date  of  each  Registration  Statement,  which  earnings
statement  shall satisfy the provisions of Section 11(a) of the Securities  Act,
including Rule 158  promulgated  thereunder  (for the purpose of this subsection
3(i),  "Availability  Date" means the 45th day  following  the end of the fourth
fiscal quarter that includes the effective date of such Registration  Statement,
except that, if such fourth fiscal  quarter is the last quarter of the Company's
fiscal year, "Availability Date" means the 90th day after the end of such fourth
fiscal quarter); and

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<PAGE>

                  (j)  with a view  to  making  available  to  the  Holders  the
benefits of Rule 144 (or its successor rule) and any other rule or regulation of
the SEC that may at any time permit the  Holders to sell shares of Common  Stock
to the public  without  registration,  the Company  covenants and agrees to: (i)
make and keep public  information  available,  as those terms are understood and
defined in Rule 144, during the Effectiveness  Period; (ii) file with the SEC in
a timely  manner all reports and other  documents  required of the Company under
the Exchange Act; and (iii) furnish to each Holder upon request, as long as such
Holder owns any Registrable  Securities,  (A) a written statement by the Company
that it has complied with the reporting  requirements of the Exchange Act, (B) a
copy of the  Company's  most recent  Annual  Report on Form 10-KSB or  Quarterly
Report on Form  10-QSB,  and (C) such  other  information  as may be  reasonably
requested  in order to avail such  Holder of any rule or  regulation  of the SEC
that   permits  the  selling  of  any  such   Registrable   Securities   without
registration.

         5.  Obligations of the Holders.

                  (a) Each Holder  shall  furnish in writing to the Company such
information  regarding  itself,  the  Registrable  Securities held by it and the
intended  method of disposition  of the  Registrable  Securities  held by it, as
shall be required to effect the registration of such Registrable  Securities and
shall execute such documents in connection with such registration as the Company
may  reasonably  request.  At  least  fifteen  (15)  days  prior  to  the  first
anticipated filing date of any Registration Statement,  the Company shall notify
each Holder of the  information  the Company  requires  from such Holder if such
Holder  elects  to  have  any  of the  Registrable  Securities  included  in the
Registration  Statement.  A Holder shall provide such information to the Company
at least  ten (10)  days  prior to the  first  anticipated  filing  date of such
Registration  Statement  if such  Holder  elects to have any of the  Registrable
Securities included in the Registration Statement.

                  (b)  Each  Holder,   by  its  acceptance  of  the  Registrable
Securities,  agrees to cooperate with the Company as reasonably requested by the
Company  in  connection  with  the  preparation  and  filing  of a  Registration
Statement  hereunder,  unless such Holder has notified the Company in writing of
its election to exclude all of its Registrable Securities from such Registration
Statement.

                  (c) Each Holder  agrees that,  upon receipt of any notice from
the  Company of the  commencement  of a  Suspension  pursuant to Section 3, such
Holder  will  immediately  discontinue  disposition  of  Registrable  Securities
pursuant to the Registration  Statement  covering such  Registrable  Securities,
until the Holder's receipt of the supplemented or amended  prospectus filed with
the SEC and until any related post-effective amendment is declared effective.

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<PAGE>

         6.  Rights of Participation.

                  (a) Subsequent  Offerings.  So long as the Investors (together
with their  Affiliates)  continue to hold on a collective  basis at least thirty
percent  (30%) of the  Registrable  Securities  acquired by them pursuant to the
Purchase Agreement (as adjusted for any stock dividends,  combinations,  splits,
recapitalizations  and the like after the date  hereof),  subject to  applicable
securities  laws,  each  Investor  shall have a right to  participate  in future
offerings by the Company by  purchasing  such  Investor's  pro rata share of all
Equity  Securities  (as defined  below) that the Company may, from time to time,
propose  to sell and issue  after  the date of this  Agreement,  other  than the
Equity  Securities  excluded by Section 6(c) hereof.  Each  Investor's  pro rata
share is equal to the ratio of (a) the total number of Shares and Warrant Shares
(including all Warrant Shares issuable upon exercise of outstanding Warrants) of
which  such  Investor  and its  Affiliates  are deemed to be a holder to (b) the
total number of shares of the Company's  outstanding Equity Securities,  in each
case immediately prior to such issuance of Equity  Securities.  The term "Equity
Securities"  shall mean (i) any Common Stock and (ii) any  security  convertible
into or  exercisable or  exchangeable  for, with or without  consideration,  any
Common Stock (including any option to purchase such a convertible security).

                  (b) Exercise of Rights.  If the Company  proposes to issue any
Equity  Securities  (other than Equity  Securities  excluded pursuant to Section
6(c)  below),  it shall  give each  Investor  written  notice of its  intention,
describing the Equity  Securities,  the price and the terms and conditions  upon
which the Company  proposes to issue the same. Each Investor shall have ten (10)
days from the  receipt of such  notice to agree to  purchase  up to its pro rata
share of the Equity  Securities  for the price and upon the terms and conditions
specified  in the notice by giving  written  notice to the  Company  and stating
therein the quantity of Equity Securities to be purchased.

                  (c)   Excluded   Securities.   The  rights  of   participation
established  by this Section 6 shall have no application to any of the following
Equity Securities:

                           (i)  shares of Common Stock and/or options,  warrants
or other Common Stock  purchase  rights and the Common Stock issued  pursuant to
such  options,  warrants or other  rights  issued or to be issued after the date
hereof to employees, officers or directors of, or consultants or advisors to the
Company or any  subsidiary,  pursuant to stock purchase or stock option plans or
other arrangements that are approved by the Board;

                           (ii)  stock issued or issuable pursuant to any rights
or agreements, options, warrants or convertible securities outstanding as of the
date of this Agreement  (including any stock issued or issuable  pursuant to the
Purchase Agreement or upon exercise of the Warrants);  and stock issued pursuant
to any such rights or agreements  granted after the date of this  Agreement,  so
long as the rights of participation  established by this Section 6 were complied
with,  waived, or were inapplicable  pursuant to any provision of this Section 6
with  respect to the  initial  sale or grant by the  Company  of such  rights or
agreements;

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<PAGE>

                           (iii) any Equity  Securities issued for consideration
other than cash  pursuant  to a merger,  consolidation,  acquisition  or similar
business combination;

                           (iv)  any Equity Securities issued in connection with
any stock split, stock dividend or recapitalization by the Company;

                           (v)   any Equity  Securities issued  pursuant to  any
equipment loan or leasing  arrangement,  real property leasing  arrangement,  or
debt financing from a bank or similar financial or lending institution;

                           (vi)  any Equity Securities issued in connection with
strategic  transactions  involving  the Company and other  entities,  including,
without limitation (i) joint ventures, manufacturing,  marketing or distribution
arrangements or (ii) technology transfer or development arrangements; and

                           (vii) any  Equity  Securities  that  are  sold by the
Company to the public in an underwritten offering.

                  (e)  Affiliates.  Each  Investor  may  assign  its  rights  to
participate under this Section 6 to any Affiliate of such Investor.

         7.  Nomination  of the  Lacuna  Designees.  So  long  as the  Investors
(together with their Affiliates) continue to hold on a collective basis at least
fifty percent (50%) of the Registrable  Securities  acquired by them pursuant to
the  Purchase  Agreement  (as adjusted  for any stock  dividends,  combinations,
splits,  recapitalizations  and the like  after  the date  hereof),  each of the
Holders shall vote all of his, her or its shares of the Company's  capital stock
having voting power (and any other shares of capital stock over which he, she or
it exercised  voting  control),  in connection with the election of directors to
the Board and to take such other  actions as are  reasonably  necessary so as to
fix the  number of  directors  at seven and to elect and  continue  in office as
directors  each of the Lacuna  Designees.  If any Lacuna  Designee  is unable or
unwilling to continue to serve on the Board,  the  Investors  shall  designate a
different  nominee who, subject to the approval by the Board,  acting reasonably
in the exercise of their  fiduciary  duties,  consistent  with their  nomination
procedures,  shall thereafter be deemed, for the purposes of this Agreement,  to
be an  Lacuna  Designee.  The  Board  shall  fill  any  vacancy  created  by the
resignation, removal or death of a director nominated pursuant to this Section 7
with an Lacuna Designee,  as determined  pursuant to this Section 7. Each Lacuna
Designee  shall be entitled to serve on all  committees of the Board (subject to
the applicable  committee  charter and any applicable  requirements  of the SEC,
Nasdaq or OTC Bulletin  Board and after giving effect to the Company's  policies
on director independence). Notwithstanding the foregoing, the provisions of this
Section  7  shall  not  apply  to  Magnetar   Capital  Master  Fund,  Ltd,  and,
accordingly,  Magnetar Capital Master Fund, Ltd shall have no obligations  under
this Section 7.

         8.  Short Sales.  Each Holder hereby  agrees with the Company that such
Holder  shall  not  make  any  short  sale of any  Common  Stock  or  securities
convertible  into or exercisable or exchangeable for Common Stock of the Company
until the second anniversary of the date of this Agreement.

                                       9
<PAGE>

         9.  Indemnification.

                  (a)  Indemnification  by the  Company.  The Company  agrees to
indemnify and hold harmless, to the fullest extent permitted by law, the Holders
and their respective directors, officers, employees, agents, brokers, investment
advisors  and  employees  of each of  them,  stockholders  and each  Person  who
controls any Holder (within the meaning of the Securities Act) and the officers,
directors,  agents and employees of each such controlling person, to the fullest
extent permitted by applicable law, from and against any and all losses, claims,
damages,  liabilities and expense  (including,  without  limitation,  reasonable
attorney  fees)  resulting from or which arise out of or are based up any untrue
statement  or alleged  untrue  statement  of a material  fact or any omission or
alleged  omission of a material fact  required to be stated in the  Registration
Statement or  Prospectus  or  preliminary  prospectus or amendment or supplement
thereto or  necessary to make the  statements  therein not  misleading  and will
reimburse  each  Holder and their  respective  directors,  officers,  employees,
agents, brokers, investment advisors and employees of each of them, stockholders
or controlling  Persons for any legal and other expenses  reasonably incurred as
such  expenses  are  reasonably  incurred  by such  Person  in  connection  with
investigating, defending, settling, compromising or paying any such loss, claim,
damage, liability,  expense or action; provided, however, that the Company shall
not be  liable  in any such case if and to the  extent  that (i) any such  loss,
claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue  statement or omission or alleged  omission so made in conformity
with information  furnished by a Holder in writing  specifically for use in such
Registration  Statement or Prospectus or (ii) in the case of an event  described
in Section 3, the use by such  Holder of an  outdated  or  defective  prospectus
after the Company has delivered to such Holder a Suspension  Notice and prior to
delivery by the Company to such Holder of a supplemented  or amended  prospectus
prepared  and filed by the  Company or until the Holder is advised in writing by
the Company that the current prospectus may be used.

                  (b)  Indemnification  by  the  Holders.  Each  Holder  agrees,
severally but not jointly, to indemnify and hold harmless, to the fullest extent
permitted by law, the  Company,  its  directors,  officers,  employees,  agents,
brokers,  investment  advisors and employees of each of them,  stockholders  and
each Person who controls the Company  (within the meaning of the Securities Act)
and the  officers,  directors,  agents and  employees  of each such  controlling
person,  to the fullest extent permitted by applicable law, from and against any
and all losses, claims,  damages,  liabilities and expense (including reasonable
attorney fees) resulting from or which arise out of or are based upon any untrue
statement  or alleged  untrue  statement  of a material  fact or any omission or
alleged  omission of a material fact  required to be stated in the  Registration
Statement or  Prospectus  or  preliminary  prospectus or amendment or supplement
thereto or  necessary  to make the  statements  therein not  misleading,  to the
extent,  but only to the extent  that (i) such untrue  statement  or omission or
alleged  statement  or omission is  contained  in any  information  furnished in
writing  by such  Holder  to the  Company  specifically  for  inclusion  in such
Registration  Statement or Prospectus or amendment or supplement thereto or (ii)
in the case of an event  described  in Section  3, the use by such  Holder of an
outdated or defective  prospectus after the Company has delivered to such Holder
a  Suspension  Notice and prior to  delivery  by the Company to such Holder of a
supplemented  or amended  prospectus  prepared and filed by the Company or until
the Holder is advised in writing by the Company that the current  prospectus may
be used, and shall reimburse the Company and its directors, officers, employees,
agents, brokers, investment advisors and employees of each of them, stockholders
or controlling  Persons for any legal and other expenses  reasonably incurred as
such  expenses  are  reasonably  incurred  by such  Person  in  connection  with
investigating, defending, settling, compromising or paying any such loss, claim,
damage,  liability,  expense or action.  In no event  shall the  liability  of a
Holder be greater in amount than the dollar  amount of the proceeds  (net of all
expense  paid by such  Holder  in  connection  with any claim  relating  to this
Section 9 and the amount of any damages such Holder has otherwise  been required
to pay by  reason  of such  untrue  statement  or  omission  or  alleged  untrue
statement or omission)  received by such Holder upon the sale of the Registrable
Securities   included  in  the  Registration   Statement  giving  rise  to  such
indemnification obligation.

                                       10
<PAGE>

                  (c)  Conduct  of  Indemnification   Proceedings.   Any  Person
entitled  to  indemnification  hereunder  shall  (i) give  prompt  notice to the
indemnifying  party of any claim with respect to which it seeks  indemnification
and (ii) permit such indemnifying party to assume the defense of such claim with
counsel  reasonably  satisfactory  to the indemnified  party;  provided that any
Person  entitled  to  indemnification  hereunder  shall have the right to employ
separate  counsel and to participate in the defense of such claim,  but the fees
and expenses of such counsel  shall be at the expense of such Person  unless (a)
the  indemnifying  party has  agreed to pay such  fees or  expenses,  or (b) the
indemnifying  party shall have failed to assume the defense of such claim within
ten (10) days  after  written  notice  thereof  and  employ  counsel  reasonably
satisfactory  to such  Person  or (c) in the  reasonable  judgment  of any  such
Person, considering the advice of counsel, a conflict of interest exists between
such  Person and the  indemnifying  party with  respect to such claims (in which
case, if the Person notifies the indemnifying  party in writing that such Person
elects to employ separate counsel at the expense of the indemnifying  party, the
indemnifying  party shall not have the right to assume the defense of such claim
on behalf of such  Person);  and  provided,  further,  that the  failure  of any
indemnified  party to give  notice as  provided  herein  shall not  relieve  the
indemnifying party of its obligations hereunder,  except to the extent that such
failure to give notice shall materially  adversely affect the indemnifying party
in the defense of any such claim or litigation. The indemnifying party shall not
be liable for any settlement  hereunder  effected  without its written  consent,
which shall not be unreasonably  withheld or delayed.  It is understood that the
indemnifying  party shall not, in  connection  with any  proceeding  in the same
jurisdiction, be liable for fees or expenses of more than one additional firm of
attorneys at any time for all such indemnified  parties.  No indemnifying  party
shall, except with the consent of the indemnified party, consent to entry of any
judgment or enter into any settlement that does not include as an  unconditional
term thereof the giving by the claimant or plaintiff to such  indemnified  party
of a release from all liability in respect of such claim or litigation.

                  (d)  Contribution.  If  for  any  reason  the  indemnification
provided  for in the  preceding  paragraphs  (a)  and (b) is  unavailable  to an
indemnified  party or insufficient to hold it harmless,  other than as expressly
specified  therein,  then the indemnifying  party shall contribute to the amount
paid or payable by the indemnified party as a result of such loss, claim, damage
or liability in such  proportion as is appropriate to reflect the relative fault
of the  indemnified  party  and the  indemnifying  party,  as well as any  other
relevant   equitable   considerations.    No   Person   guilty   of   fraudulent
misrepresentation  within the  meaning of Section  11(f) of the  Securities  Act
shall be entitled to contribution  from any Person not guilty of such fraudulent
misrepresentation.  In no event shall the contribution obligation of a holder of
Registrable  Securities  be  greater  in amount  than the  dollar  amount of the
proceeds (net of all expenses  paid by such holder in connection  with any claim
relating  to this  Section  9 and the  amount of any  damages  such  holder  has
otherwise  been  required  to pay by reason of such  untrue  or  alleged  untrue
statement or omission or alleged  omission)  received by it upon the sale of the
Registrable Securities giving rise to such contribution obligation.

                                       11
<PAGE>

         10.  Miscellaneous.

                  (a) Amendments and Waivers.  This Agreement may be amended and
the  observance  of any term of this  Agreement  waived  only  with the  written
consent of the  Company  and the  Required  Holders  (which  shall  include  the
Required Investors).

                  (b) Notices. Unless otherwise provided, any notice required or
permitted  under this  Agreement  shall be given in writing  and shall be deemed
effectively  given as hereinafter  described (i) if given by personal  delivery,
then such  notice  shall be deemed  given upon such  delivery,  (ii) if given by
facsimile  or  electronic  mail,  then such  notice  shall be deemed  given upon
receipt of  confirmation of complete  transmittal,  (iii) if given by mail, then
such notice shall be deemed given upon the earlier of (A) receipt of such notice
by the  recipient  or (B) three (3) days after such notice is deposited in first
class mail, postage prepaid, and (iv) if given by an internationally  recognized
overnight  air courier,  then such notice shall be deemed given one (1) Business
Day after delivery to such carrier.  All notices shall be addressed to the party
to be notified at the address as follows, or at such other address as such party
may designate by ten (10) days' advance written notice to the other party:

                           If to the Company:

                                   Intraop Medical Corporation
                                   570 Del Rey Avenue
                                   Sunnyvale, CA 94085
                                   Attention: Chief Financial Officer
                                   Facsimile:  (734) 503-6529

                           With a copy to:

                                   Hanson, Bridgett, Marcus, Vlahos & Rudy, LLP
                                   425 Market Street, 26th Floor
                                   San Francisco, CA  94105
                                   Attention:  David M. Pike
                                   Facsimile: (415) 541-9366

                           If to the Holders, to the addresses set forth on  the
Schedule of Purchasers or the signature pages hereto, as applicable, with a copy
to:

                                       12
<PAGE>

                                   Cooley Godward Kronish LLP
                                   380 Interlocken Crescent, Suite 900
                                   Broomfield, CO 80021
                                   Attention:  Laura M. Medina
                                   Facsimile:  (720) 566-4099

                  (c)  Assignments  and Transfers by Holders.  The provisions of
this Agreement shall be binding upon and inure to the benefit of the Holders and
their  respective  successors and assigns.  A Holder may transfer or assign,  in
whole or from time to time in part, to one or more Persons its rights  hereunder
in connection with the transfer of Registrable Securities by such Holder to such
Person,  provided,  that, such Holder complies with all laws applicable  thereto
and provides  written  notice of assignment to the Company  promptly (and, in no
event,  no later than five (5) Business Days) after such assignment is effected,
and provided,  further,  that the right of the Investors to have their designees
nominated to the Board shall not be  transferred  or assigned  without the prior
written consent of the Company, which shall be at the Company's sole discretion.

                  (d) Assignments  and Transfers by the Company.  This Agreement
may not be assigned by the Company  (whether by operation  of law or  otherwise)
without the prior written  consent of the Required  Holders (which shall include
the  Required  Investors),  provided,  however,  that the Company may assign its
rights  and  delegate  its  duties  hereunder  to  any  surviving  or  successor
corporation  in connection  with a merger or  consolidation  of the Company with
another  corporation,  or a  sale,  transfer  or  other  disposition  of  all or
substantially  all of the Company's assets to another  corporation,  without the
prior written  consent of the Required  Holders,  after notice duly given by the
Company to each Holder.

                  (e) Benefits of the  Agreement.  The terms and  conditions  of
this Agreement  shall inure to the benefit of and be binding upon the respective
permitted  successors  and assigns of the  parties.  Nothing in this  Agreement,
express or implied,  is intended to confer upon any party other than the parties
hereto  or  their  respective  successors  and  assigns  any  rights,  remedies,
obligations,  or  liabilities  under or by reason of this  Agreement,  except as
expressly provided in this Agreement.

                  (f) Counterparts; Faxes. This Agreement may be executed in two
or more  counterparts,  each of which  shall be deemed an  original,  but all of
which together shall constitute one and the same instrument.  This Agreement may
also be executed via facsimile or PDF, which shall be deemed an original.

                  (g) Titles and  Subtitles.  The titles and  subtitles  used in
this  Agreement  are used for  convenience  only and are not to be considered in
construing or interpreting this Agreement.

                  (h)  Severability.  Any  provision of this  Agreement  that is
prohibited or unenforceable in any jurisdiction  shall, as to such jurisdiction,
be ineffective to the extent of such  prohibition  or  unenforceability  without
invalidating the remaining  provisions  hereof but shall be interpreted as if it
were  written  so as to be  enforceable  to  the  maximum  extent  permitted  by
applicable law, and any such prohibition or unenforceability in any jurisdiction
shall  not  invalidate  or  render  unenforceable  such  provision  in any other
jurisdiction.  To the extent  permitted by  applicable  law, the parties  hereby
waive any provision of law which  renders any  provisions  hereof  prohibited or
unenforceable in any respect.

                                       13
<PAGE>

                  (i) Further Assurances.  The parties shall execute and deliver
all such further  instruments  and  documents and take all such other actions as
may reasonably be required to carry out the transactions contemplated hereby and
to evidence the fulfillment of the agreements herein contained.

                  (j)  Entire  Agreement.  This  Agreement  is  intended  by the
parties as a final  expression of their  agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto
in respect of the subject matter contained herein. This Agreement supersedes all
prior  agreements  and  understandings  between the parties with respect to such
subject matter.

                  (k) Governing  Law;  Consent to  Jurisdiction;  Waiver of Jury
Trial.  This Agreement  shall be governed by, and construed in accordance  with,
the internal laws of the State of Delaware  without  regard to the choice of law
principles  thereof.  Each of the  parties  hereto  irrevocably  submits  to the
exclusive jurisdiction of the courts of the State of California located in Santa
Clara County and the United States  District Court for the Northern  District of
California for the purpose of any suit, action,  proceeding or judgment relating
to or arising out of this Agreement and the  transactions  contemplated  hereby.
Service of process in connection with any such suit, action or proceeding may be
served on each party  hereto  anywhere  in the world by the same  methods as are
specified  for the giving of notices under this  Agreement.  Each of the parties
hereto  irrevocably  consents to the  jurisdiction of any such court in any such
suit,  action or proceeding and to the laying of venue in such court. Each party
hereto irrevocably waives any objection to the laying of venue of any such suit,
action or  proceeding  brought in such courts and  irrevocably  waives any claim
that any such  suit,  action or  proceeding  brought  in any such court has been
brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO
REQUEST A TRIAL BY JURY IN ANY  LITIGATION  WITH RESPECT TO THIS  AGREEMENT  AND
REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

                  (l) Termination of Prior Registration  Rights Agreements.  The
Company and each Holder hereby agree that this Agreement supersedes and replaces
all other  agreements that require the Company to register any securities of the
Company held by any Holder under the  Securities  Act, which shall include those
certain  Registration  Rights Agreements dated August 31, 2005, October 25, 2005
and January 10,  2007 by and among the  Company and the other  parties  thereto,
which other agreements are hereby terminated in their entirety and of no further
force or effect.

                                       14
<PAGE>

                  (m) Independent Nature of Obligations. The obligations of each
Holder under this  Agreement are several and not joint with the  obligations  of
any  other  Holder,  and no  Holder  shall  be  responsible  in any  way for the
performance of the obligations of any other Holder under this Agreement. Nothing
contained  herein,  and no action taken by any Holder pursuant hereto,  shall be
deemed to  constitute  the Holders as a  partnership,  an  association,  a joint
venture or any other kind of group or entity,  or create a presumption  that the
Holders are in any way acting in concert or as a group or entity with respect to
such obligations or the transactions contemplated hereby or any matters, and the
Company  acknowledges  that the  Holders are not acting in concert or as a group
with  respect  to such  obligations  or the  transactions  contemplated  by this
Agreement.  Each Holder shall be entitled to  independently  protect and enforce
its  rights,  including,  without  limitation,  the rights  arising  out of this
Agreement, and it shall not be necessary for any other Holder to be joined as an
additional  party  in any  proceeding  for  such  purpose.  The use of a  single
agreement with respect to the  obligations of the Company  contained  herein was
solely in the control of the Company,  not the action or decision of any Holder,
and was done  solely for the  convenience  of the Company and not because it was
required or requested to do so by any Holder.  It is  expressly  understood  and
agreed that each  provision  contained in this  Agreement is between the Company
and a Holder,  solely, and not between the Company and the Holders  collectively
and not between and among Holders.

                               (Signatures follow)

                                       15
<PAGE>

                  IN WITNESS  WHEREOF,  the parties  have  executed  this Rights
Agreement as of the date first above written.

The Company:                           INTRAOP MEDICAL CORPORATION

                                       By: /s/ Donald A. Goer
                                           -------------------------------------
                                           Name: Donald A. Goer
                                           Title: President and CEO

The Investors:                         LACUNA HEDGE FUND LLLP

                                       By: /s/ J. K. Hullett
                                           -------------------------------------
                                           Name: J. K. Hullett
                                           Title: Managing Director

                                       LACUNA VENTURE FUND LLLP

                                       By:   Lacuna Ventures GP LLLP
                                             Its General Partner

                                       By:   Lacuna, LLC
                                             Its General Partner

                                       By: /s/ JK Hullett
                                           -------------------------------------
                                              JK Hullett, Managing Director

<PAGE>

                                       /s/ Robert W. Higgins
                                       -----------------------------------------
                                       Robert W. Higgins

                                       /s/ Oliver Janssen
                                       -----------------------------------------
                                       Oliver Janssen

                                       /s/ Victor Patrick Smith
                                       -----------------------------------------
                                       Victor Patrick Smith

                                       /s/ Andrew Jaffe
                                       -----------------------------------------
                                       Andrew Jaffe

                                       Dr. Clay and Mrs. Brenda  Cockerell,
                                       JTWROS

                                       By: /s/ Clay Cockerell
                                           -------------------------------------
                                              Clay Cockerell

                                       By: /s/ Brenda Cockerell
                                           -------------------------------------
                                              Brenda Cockerell

                                       /s/ Albert DeNittis
                                       -----------------------------------------
                                       Albert DeNittis

                                       PRECEPT CAPITAL MASTER FUND, G.P.

                                       By: /s/ D. Blair Baker
                                           -------------------------------------
                                       Name: D. Blair Baker
                                             -----------------------------------
                                       Its: Managing Member
                                            ------------------------------------

<PAGE>

                                       ELLERPHUND VENTURES II, LP

                                       By: /s/ Ryan Ever
                                           -------------------------------------
                                       Name: Ryan Ever
                                             -----------------------------------
                                       Its: Managing Member
                                            ------------------------------------

                                       SANDOR CAPITAL MASTER FUND, L.P.

                                       By: /s/ John S. Lemak
                                           -------------------------------------
                                       Name: John S. Lemak
                                             -----------------------------------
                                       Its: Manager
                                            ------------------------------------

                                       VMG HOLDINGS II, LLC

                                       By: /s/ Gregory S. Koonsman
                                           -------------------------------------
                                       Name: Gregory S. Koonsman
                                             -----------------------------------
                                       Its: Principal
                                            ------------------------------------

                                       THE JOE AND BONNIE ANN BROWN
                                       2000 LIVING TRUST

                                       By: /s/ Jose Gervais
                                           -------------------------------------
                                           Jose Gervais, Trustee

                                       E.U. CAPITAL VENTURE, INC.

                                       By: /s/ Hans Morkner
                                           -------------------------------------
                                       Name: Hans Morkner
                                             -----------------------------------
                                       Its: Managing Director
                                            ------------------------------------

<PAGE>

The Insiders:                          /s/ M. Dean Whitney
                                       -----------------------------------------
                                       M. Dean Whitney

                                       MESTMAN FAMILY TRUST
                                       DATED AUGUST 30, 2005

                                       By: /s/ Scott Mestman
                                           -------------------------------------
                                           Name: Scott Mestman
                                           Title: Trustee

                                       /s/ Scott Mesterman
                                       -----------------------------------------
                                       Scott Mestman

<PAGE>

                                       WILDER SOLOVEI REVOCABLE TRUST

                                       By: /s/ Howard Solovei
                                           -------------------------------------
                                           Name: Howard Solovei
                                           Title: Trustee

                                       ADMEDICO APS.

                                       By: /s/ Rand Chr-Kuaergaard-Hanson
                                           -------------------------------------
                                           Name: Rand Chr-Kuaergaard-Hanson
                                           Title: CEO

                                       /s/ Scott Parris
                                       -----------------------------------------
                                       Scott Parris

                                       E. U. CAPITAL VENTURE, INC.

                                       By: /s/ Hans Morkner
                                           -------------------------------------
                                           Name: Hans Morkner
                                           Title: Managing Director

                                       /s/ Donald A. Goer
                                       -----------------------------------------
                                       Donald A. Goer

                                       DONALD A. GOER AND
                                       HENCI L. GOER 1989 FAMILY TRUST

                                       By: /s/ Donald A. Goer
                                           -------------------------------------
                                           Name: Donald A. Goer
                                           Title: Trustee

<PAGE>

                                       TOMOVATION GMBH

                                       By: /s/ Michael Friebe
                                           -------------------------------------
                                           Name: Michael Friebe
                                           Title: CEO

                                       AFFECT STRATEGIES, INC.

                                       By: /s/ Sandra Fathi
                                           -------------------------------------
                                           Name: Sandra Fathi
                                           Title: President

                                       /s/ S. Dirks
                                       -----------------------------------------
                                       Stephen Dirks

                                       EMERGING MARKETS CONSULTING, LLC

                                       By: /s/ James S. Painter, III
                                           -------------------------------------
                                           Name: James S. Painter, III
                                           Title: CEO

                                       SCHONBERG RESEARCH CORPORATION

                                       By: /s/ Russell G. Schonberg
                                           -------------------------------------
                                           Name: Russell G. Schonberg
                                           Title: CEO

                                       /s/ Richard Simon
                                       -----------------------------------------
                                       Richard Simon

                                       THE O GROUP

                                       By: /s/ Orit L. Schizzman
                                           -------------------------------------
                                           Name: Orit L. Shizzman
                                           Title: President and CEO

                                       /s/ Mary Louise Meurk
                                       -----------------------------------------
                                       Mary Louise Meurk

<PAGE>

The Officers and Directors:            /s/ Keith Jacobsen
                                       -----------------------------------------
                                       Keith Jacobsen

                                       /s/ M. Dean Whitney
                                       -----------------------------------------
                                       M. Dean Whitney

                                       /s/ Stephen L. Kessler
                                       -----------------------------------------
                                       Stephen L. Kessler

                                       /s/ John P. Matheu
                                       -----------------------------------------
                                       John P. Matheu

                                       /s/ Thomas Cook
                                       -----------------------------------------
                                       Thomas Cook

The Existing Investors:                BUSHIDO MASTER CAPITAL FUND L.P.

                                       By: /s/ Ronald S. Dagar
                                           -------------------------------------
                                           Name: Ronald S. Dagar
                                           Title: Director

                                       GAMMA OPPORTUNITY CAPITAL PARTNERS, LP
                                       CLASS A

                                       By: /s/ Jonathan P. Knight
                                           -------------------------------------
                                           Name: Jonathan P. Knight
                                           Title: As Agent

                                       GAMMA OPPORTUNITY CAPITAL PARTNERS, LP
                                       CLASS C

                                       By: /s/ Jonathan P. Knight
                                           -------------------------------------
                                           Name: Jonathan P. Knight
                                           Title: As Agent

<PAGE>

                                       DOLPHIN OFFSHORE PARTNERS, L.P.

                                       By: /s/ Peter E. Salas
                                           -------------------------------------
                                           Name: Peter E. Salas
                                           Title: General Partner

                                       ALPHA CAPITAL ANSTAHT

                                       By: /s/ Konrad Ackerman
                                           -------------------------------------
                                           Name: Konrad Ackerman
                                           Title: Director

                                       CRESTVIEW CAPITAL MASTER, LLC

                                       By: Crestview Capital Partners, LLC
                                           Its Sole Manager

                                       By: /s/ Robert Hoyt
                                           -------------------------------------
                                           Name: Robert Hoyt
                                           Title: Director

                                       SAMIR FINANCIAL, LLC

                                       By: /s/ Mohammed H. Mirza
                                           -------------------------------------
                                           Name: Mohammed H. Mirza
                                           Title: Manager

                                       MAGNETAR CAPITAL MASTER FUND, LTD.

                                       By: /s/ Doug Litowitz
                                           -------------------------------------
                                           Name: Doug Litowitz
                                           Title: Counsel

                                       ABS SOS-PLUS PARTNERS LTD.

                                       By: /s/ Jonathan P. Knight
                                           -------------------------------------
                                           Name: Jonathan P. Knight
                                           Title: As Agent

                                       REGENMACHER HOLDINGS, LTD.

                                       By: /s/ Jonathan P. Knight
                                           -------------------------------------
                                           Name: Jonathan P. Knight
                                           Title: As Agent

<PAGE>

The Other Securityholders:             HULTQUIST CAPITAL LLC

                                       By: /s/ Gary Hultquist
                                           -------------------------------------
                                           Name: Gary Holtquist
                                           Title: Managing Member

                                       MCR CAPITAL CORP.

                                       By: /s/ Matthew D. Ray
                                           -------------------------------------
                                           Name: Matthew D. Ray
                                           Title: PresidentEXHIBIT 10.42

                            INDEMNIFICATION AGREEMENT

     This INDEMNIFICATION  AGREEMENT (the "Agreement") is dated as of August 17,
2007,   between  Intraop  Medical   Corporation,   a  Nevada   corporation  (the
"Corporation"), and ___________________ ("Indemnitee").

                                    RECITALS

     WHEREAS,  Indemnitee  has been  requested by the  Corporation to serve as a
member of the board of directors of the  Corporation  (the "Board of Directors")
and in such  capacity or otherwise as an Agent (as  hereinafter  defined) of the
Corporation, will be performing a valuable service for the Corporation; and

     WHEREAS, Indemnitee is willing to serve and continue to serve as a director
of the  Corporation on the condition that he be indemnified as herein  provided;
and

     WHEREAS,  it is  intended  that  Indemnitee  shall be paid  promptly by the
Corporation all amounts  necessary to effectuate in full the indemnity  provided
herein.

                                    AGREEMENT

     NOW, THEREFORE,  in consideration of the premises and the covenants in this
Agreement,  and of Indemnitee serving and continuing to serve the Corporation as
an Agent and intending to be legally bound hereby,  the parties  hereto agree as
follows:

         1. Services by Indemnitee. Indemnitee agrees to serve (a) as a director
of the  Corporation  so long as  Indemnitee  is duly  appointed  or elected  and
qualified  in  accordance  with the  applicable  provisions  of the  Amended and
Restated Articles of Incorporation  ("Articles of Incorporation")  and bylaws of
the Corporation, and until such time as Indemnitee resigns or fails to stand for
election or is removed from Indemnitee's  position, or (b) otherwise as an Agent
(as hereinafter defined) of the Corporation.  Indemnitee may, in his discretion,
from  time to  time  also  perform  other  services  at the  request  or for the
convenience of, or otherwise  benefiting the Corporation.  Indemnitee may at any
time and for any reason resign or be removed from such position  (subject to any
other  contractual  obligation or other  restriction  imposed in the Articles of
Incorporation or by operation of law).

         2. Indemnification.  Subject to the limitations set forth herein and in
Section 6 hereof, the Corporation hereby agrees to indemnify and hold Indemnitee
harmless as follows:

     The  Corporation  shall,  with respect to any  Proceeding  (as  hereinafter
defined)  associated  with  Indemnitee's  being  an  Agent  of the  Corporation,
indemnify  and hold  Indemnitee  harmless to the  fullest  extent  permitted  by
applicable law and the Articles of Incorporation of the Corporation in effect on
the date  hereof or as such law or Articles  of  Incorporation  may from time to
time be amended (but, in the case of any such amendment, only to the extent such
amendment permits the Corporation to provide broader indemnification rights than
the law or Articles of Incorporation permitted the Corporation to provide before
such  amendment).  The  right to  indemnification  conferred  herein  and in the
Articles  of  Incorporation  shall  be  presumed  to have  been  relied  upon by
Indemnitee  in serving or continuing  to serve the  Corporation  as an Agent and
shall be enforceable as a contract  right.  Without in any way  diminishing  the
scope of the  indemnification  provided by this Section 2, the Corporation  will
indemnify and hold  Indemnitee  harmless to the full extent  permitted by law if
and wherever Indemnitee is or was a party or is threatened to be made a party to
any Proceeding,  including any such Proceeding brought by or in the right of the
Corporation,  by  reason of the fact  that  Indemnitee  is or was an Agent or by
reason of anything  done or not done by  Indemnitee  in such  capacity,  against
Expenses (as  hereinafter  defined) and  Liabilities  (as  hereinafter  defined)
actually and  reasonably  incurred by  Indemnitee or on his behalf in connection
with the  investigation,  defense,  settlement or appeal of such Proceeding,  or
being a witness in, or preparing to defend or be a witness in, such  Proceeding.
In  addition  to,  and not as a  limitation  of,  the  foregoing,  the rights of
indemnification of Indemnitee  provided under this Agreement shall include those
rights set forth in Sections 3 and 8 below.  Notwithstanding the foregoing,  the
Corporation  shall be  required to  indemnify  and hold  Indemnitee  harmless in
connection  with a Proceeding  commenced by Indemnitee  (other than a Proceeding
commenced by Indemnitee  to enforce  Indemnitee's  rights under this  Agreement)
only if the  commencement  of such  Proceeding  was  authorized  by the Board of
Directors.

<PAGE>

         3.  Advancement of Expenses.  All Expenses  incurred by or on behalf of
Indemnitee  (including costs of enforcement of this Agreement) shall be advanced
from time to time by the Corporation to Indemnitee within thirty (30) days after
the receipt by the  Corporation of a written request for an advance of Expenses,
whether  prior to or after  final  disposition  of a  Proceeding  (except to the
extent  that  there  has  been a Final  Adverse  Determination  (as  hereinafter
defined) that  Indemnitee is not entitled to be indemnified  for such Expenses),
including  without  limitation any Proceeding  brought by or in the right of the
Corporation.  The written  request for an  advancement  of any and all  expenses
under this paragraph shall contain reasonable detail of the Expenses incurred by
Indemnitee.  By execution of this Agreement,  Indemnitee shall be deemed to have
made whatever  undertaking may be required by law at the time of any advancement
of Expenses with respect to repayment to the  Corporation of such  Expenses.  In
the event that the Corporation  shall breach its obligation to advance  Expenses
under this  Section 3, the  parties  hereto  agree  that  Indemnitee's  remedies
available at law would not be adequate and that Indemnitee  would be entitled to
specific performance.

         4.  Presumptions  and  Effect of  Certain  Proceedings.  Upon  making a
request  for  indemnification,  Indemnitee  shall be  presumed to be entitled to
indemnification  under this Agreement and the Corporation  shall have the burden
of proof to overcome that  presumption  in reaching any contrary  determination.
The termination of any Proceeding by judgment,  order,  settlement,  arbitration
award or conviction,  or upon a plea of nolo contendere or its equivalent  shall
not affect this  presumption  or,  except as  determined  by a judgment or other
final adjudication adverse to Indemnitee, establish a presumption with regard to
any   factual   matter   relevant   to   determining   Indemnitee's   rights  to
indemnification  hereunder.  If the  person or persons  so  empowered  to make a
determination  pursuant  to  Section  5 hereof  shall  have  failed  to make the
requested  determination  within  ninety  (90) days after any  judgment,  order,
settlement,  dismissal,  arbitration award, conviction,  acceptance of a plea of
nolo contendere or its equivalent,  or other disposition or partial  disposition
of any  Proceeding  or any other  event that could  enable  the  Corporation  to
determine   Indemnitee's   entitlement   to   indemnification,   the   requisite
determination that Indemnitee is entitled to indemnification  shall be deemed to
have been made.

                                     - 2 -
<PAGE>

         5. Procedure for Determination of Entitlement to Indemnification.

            (a) Whenever  Indemnitee  believes  that  Indemnitee  is entitled to
indemnification  pursuant to this Agreement,  Indemnitee  shall submit a written
request for indemnification to the Corporation.  Any request for indemnification
shall include sufficient  documentation or information  reasonably  available to
Indemnitee  for the  determination  of entitlement  to  indemnification.  In any
event,  Indemnitee shall submit Indemnitee's claim for indemnification  within a
reasonable  time,  not to exceed  five (5)  years  after  any  judgment,  order,
settlement,  dismissal,  arbitration award, conviction,  acceptance of a plea of
nolo contendere or its equivalent, or final termination,  whichever is the later
date for which  Indemnitee  requests  indemnification.  The  Secretary  or other
appropriate  officer shall,  promptly upon receipt of  Indemnitee's  request for
indemnification,  advise the Board of Directors in writing that  Indemnitee  has
made such request.  Determination of Indemnitee's entitlement to indemnification
shall be made not later than ninety (90) days after the Corporation's receipt of
Indemnitee's written request for such indemnification, provided that any request
for  indemnification  for  Liabilities,  other than amounts paid in  settlement,
shall  have  been  made  after  a   determination   thereof  in  a   Proceeding.
Notwithstanding  anything to the contrary  contained herein,  the procedures set
forth in this Section 5 shall not apply to any request by the Indemnitee for the
advance of expenses,  and shall not in any way prejudice  Indemnitee's  right to
such advancement as set forth in Section 3 hereof.

            (b) The  Corporation  shall be entitled to select the forum in which
Indemnitee's  entitlement to indemnification will be heard;  provided,  however,
that if there is a Change  in  Control  of the  Corporation,  Independent  Legal
Counsel (as hereinafter  defined) shall determine whether Indemnitee is entitled
to indemnification. The forum shall be any one of the following:

               (i) the stockholders of the Corporation;

               (ii) a majority vote of  Disinterested  Directors (as hereinafter
defined), even though less than a quorum;

               (iii) Independent  Legal Counsel,  whose  determination  shall be
made in a written opinion; or

               (iv)  a  panel  of  three   arbitrators,   one  selected  by  the
Corporation,  another by Indemnitee and the third by the first two  arbitrators;
or if for any reason three  arbitrators are not selected within thirty (30) days
after the  appointment  of the first  arbitrator,  then  selection of additional
arbitrators  shall  be  made by the  American  Arbitration  Association.  If any
arbitrator  resigns or is unable to serve in such  capacity for any reason,  the
American Arbitration Association shall select such arbitrator's replacement. The
arbitration shall be conducted  pursuant to the commercial  arbitration rules of
the American Arbitration Association now in effect.

                                     - 3 -
<PAGE>

         6. Specific Limitations on Indemnification. Notwithstanding anything in
this Agreement to the contrary,  the  Corporation  shall not be obligated  under
this Agreement to make any payment to Indemnitee with respect to any Proceeding:

            (a) To the extent that payment is actually made to Indemnitee  under
any  insurance  policy,  or is  made  to  Indemnitee  by the  Corporation  or an
affiliate  otherwise  than  pursuant  to  this  Agreement.  Notwithstanding  the
availability of such insurance,  Indemnitee also may claim  indemnification from
the  Corporation  pursuant to this Agreement by assigning to the Corporation any
claims under such insurance to the extent Indemnitee is paid by the Corporation;

            (b) Provided there has been no Change in Control, for Liabilities in
connection with Proceedings  settled without the  Corporation's  consent,  which
consent, however, shall not be unreasonably withheld;

            (c) For an  accounting  of profits made from the purchase or sale by
Indemnitee of securities of the Corporation  within the meaning of section 16(b)
of the  Securities  Exchange Act of 1934, as amended (the  "Exchange  Act"),  or
similar provisions of any state statutory or common law; or

            (d) To the extent it would be  otherwise  prohibited  by law,  if so
established by a judgment or other final adjudication adverse to Indemnitee.

         7. Fees and Expenses of  Independent  Legal  Counsel.  The  Corporation
agrees to pay the reasonable fees and expenses of Independent Legal Counsel or a
panel of  three  arbitrators  should  such  Independent  Legal  Counsel  or such
arbitrators be retained to make a determination  of Indemnitee's  entitlement to
indemnification  pursuant  to  Section  5(b) of  this  Agreement,  and to  fully
indemnify  and hold such  Independent  Legal  Counsel  or  arbitrators  harmless
against any and all expenses  and losses  incurred by any of them arising out of
or relating to this Agreement or their engagement pursuant hereto.

         8. Remedies of Indemnitee.

            (a) In the event  that (i) a  determination  pursuant  to  Section 5
hereof is made that Indemnitee is not entitled to indemnification, (ii) advances
of Expenses are not made pursuant to this Agreement,  (iii) payment has not been
timely made following a determination of entitlement to indemnification pursuant
to this  Agreement,  or (iv)  Indemnitee  otherwise  seeks  enforcement  of this
Agreement,  Indemnitee  shall be entitled to a final  adjudication  in the state
courts of the State of Nevada of the remedy  sought.  Alternatively,  unless (i)
the  determination  was  made by a panel  of  arbitrators  pursuant  to  Section
5(b)(iv)   hereof,   or  (ii)  court   approval  is  required  by  law  for  the
indemnification sought by Indemnitee, Indemnitee at Indemnitee's option may seek
an award in arbitration to be conducted by a single  arbitrator  pursuant to the
commercial  arbitration  rules of the American  Arbitration  Association  now in
effect,  which award is to be made within ninety (90) days  following the filing
of the demand for  arbitration.  The Corporation  shall not oppose  Indemnitee's
right to seek any such adjudication or arbitration award. In any such proceeding
or arbitration  Indemnitee  shall be presumed to be entitled to  indemnification
and advancement of Expenses under this Agreement and the Corporation  shall have
the burden of proof to overcome that presumption.

                                     - 4 -
<PAGE>

            (b) In  the  event  that  a  determination  that  Indemnitee  is not
entitled  to  indemnification,  in whole or in part,  has been made  pursuant to
Section 5  hereof,  the  decision  in the  judicial  proceeding  or  arbitration
provided in paragraph (a) of this Section 8 shall be made de novo and Indemnitee
shall not be  prejudiced  by reason of a  determination  that  Indemnitee is not
entitled to indemnification.

            (c)   If  a   determination   that   Indemnitee   is   entitled   to
indemnification has been made pursuant to Section 5 hereof, or is deemed to have
been made  pursuant  to Section 4 hereof or  otherwise  pursuant to the terms of
this Agreement,  the  Corporation  shall be bound by such  determination  in the
absence of a  misrepresentation  or omission of a material fact by Indemnitee in
connection with such determination.

            (d) The  Corporation  shall be  precluded  from  asserting  that the
procedures  and  presumptions  of this  Agreement  are not  valid,  binding  and
enforceable.  The  Corporation  shall  stipulate in any such court or before any
such  arbitrator  that the  Corporation  is bound by all the  provisions of this
Agreement and is precluded from making any assertion to the contrary.

            (e) Expenses  reasonably  incurred by Indemnitee in connection  with
Indemnitee's  request for  indemnification  under,  seeking enforcement of or to
recover  damages for breach of this Agreement  shall be borne by the Corporation
when  and  as  incurred  by  Indemnitee   irrespective   of  any  Final  Adverse
Determination  (as  hereinafter  defined)  that  Indemnitee  is not  entitled to
indemnification.

         9.  Contribution.  To the fullest extent  permissible  under applicable
law, if the  indemnification  provided for in this  Agreement is  unavailable to
Indemnitee for any reason whatsoever,  the Corporation,  in lieu of indemnifying
Indemnitee,  shall contribute to the amount incurred by Indemnitee,  whether for
judgments,  fines,  penalties,  excise  taxes,  amounts  paid  or to be  paid in
settlement  and/or for  Expenses,  in connection  with any claim  relating to an
indemnifiable  event under this Agreement,  in such proportion as is deemed fair
and reasonable in light of all of the  circumstances of such Proceeding in order
to reflect (i) the relative  benefits received by the Corporation and Indemnitee
as a  result  of  the  event(s)  and/or  transaction(s)  giving  cause  to  such
Proceeding;  and/or  (ii)  the  relative  fault  of  the  Corporation  (and  its
directors,  officers,  employees and agents) and  Indemnitee in connection  with
such event(s) and/or transaction(s).

                                     - 5 -
<PAGE>

         10. Maintenance of Insurance.  The Corporation  represents that it will
seek to obtain certain  directors' and officers'  liability  insurance  policies
covering its directors and officers.  Subject only to the provisions within this
Section  10,  the  Corporation  agrees  that so long as  Indemnitee  shall  have
consented  to serve or shall  continue  to serve as a director or officer of the
Corporation or both, or as an Agent of the  Corporation,  and thereafter so long
as Indemnitee  shall be subject to any possible  Proceeding  (such periods being
hereinafter  sometimes  referred  to  as  the  "Indemnification   Period"),  the
Corporation  will use its best reasonable  efforts to maintain in full force and
effect for the benefit of Indemnitee one or more valid,  binding and enforceable
policies of directors' and officers'  liability  insurance from  established and
reputable insurers providing, in all respects, coverage both in scope and amount
which is no less  favorable than that presently  provided.  Notwithstanding  the
foregoing,  the  Corporation  shall not be required to maintain said policies of
directors' and officers' liability insurance if such insurance is not reasonably
available  or if it is in good faith  determined  by the then  directors  of the
Corporation either that:

            (a) The premium cost of maintaining  such insurance is substantially
disproportionate  to the amount of coverage provided thereunder and the premiums
paid by other corporations similarly situated; or

            (b) The  protection  provided by such insurance to the Indemnitee is
so limited by exclusions  applicable to directors and other agents that there is
insufficient  benefit to the Indemnitee to warrant the cost of maintaining  such
insurance.

         Anything in this  Agreement  to the  contrary  notwithstanding,  to the
extent  that and for so long as the  Corporation  shall  choose to  continue  to
maintain any policies of directors' and officers' liability insurance during the
Indemnification  Period,  the Corporation  shall maintain similar and equivalent
insurance  for the  benefit  of  Indemnitee  during the  Indemnification  Period
(unless  such  insurance   shall  be  less  favorable  to  Indemnitee  than  the
Corporation's  existing  policies).  The Board of Directors  of the  Corporation
will,  from time to time,  in good faith  review any  decision  not to  maintain
directors' and officers' liability insurance and will purchase such insurance at
any time that the conditions set forth in clauses (i) or (ii),  above,  cease to
apply.

         11. Modification,  Waiver, Termination and Cancellation. No supplement,
modification,  termination, cancellation or amendment of this Agreement shall be
binding unless executed in writing by both of the parties  hereto.  No waiver of
any of the  provisions of this Agreement  shall be deemed or shall  constitute a
waiver of any other provisions  hereof (whether or not similar),  nor shall such
waiver constitute a continuing waiver.

         12.  Subrogation.  In the event of payment  under this  Agreement,  the
Corporation  shall be  subrogated  to the  extent of such  payment to all of the
rights of  recovery  of  Indemnitee,  who shall  execute  all papers  reasonably
required  and shall do  everything  that may be necessary to secure such rights,
including the execution of such  documents  necessary to enable the  Corporation
effectively to bring suit to enforce such rights.

         13.  Notice  by  Indemnitee  and  Defense  of Claim.  Indemnitee  shall
promptly  notify the  Corporation in writing upon being served with any summons,
citation,  subpoena,  complaint,  indictment,   information  or  other  document
relating  to  any   matter,   whether   civil,   criminal,   administrative   or
investigative, but the omission so to notify the Corporation will not relieve it
from any  liability  that it may have to  Indemnitee  if such  omission does not
prejudice  the  Corporation's  rights.  If  such  omission  does  prejudice  the
Corporation's  rights,  the Corporation  will be relieved from liability only to
the extent of such  prejudice;  nor will such omission  relieve the  Corporation
from any  liability  that it may have to  Indemnitee  otherwise  than under this
Agreement.  With respect to any Proceeding as to which  Indemnitee  notifies the
Corporation of the commencement thereof:

                                     - 6 -
<PAGE>

            (a) The Corporation  will be entitled to participate  therein at its
own expense; and

            (b) Except as otherwise  provided  below,  to the extent that it may
wish,  the  Corporation  jointly  with any other  indemnifying  party  similarly
notified will be entitled to assume the defense thereof, with counsel reasonably
satisfactory to Indemnitee; provided, however, that the Corporation shall not be
entitled to assume the defense of any  Proceeding  if there has been a Change in
Control or if Indemnitee  shall have  reasonably  concluded  that there may be a
conflict of interest between the Corporation and Indemnitee with respect to such
Proceeding.  After notice from the  Corporation to Indemnitee of its election to
assume the defense  thereof,  the  Corporation  will not be liable to Indemnitee
under this  Agreement  for any Expenses  subsequently  incurred by Indemnitee in
connection  with  the  defense   thereof,   other  than   reasonable   costs  of
investigation or as otherwise provided below. Indemnitee shall have the right to
employ Indemnitee's own counsel in such Proceeding, but the fees and expenses of
such counsel incurred after notice from the Corporation of its assumption of the
defense thereof shall be at the expense of Indemnitee unless:

               (i) the employment of counsel by Indemnitee  has been  authorized
by the Corporation or there has been a Change of Control;

               (ii) Indemnitee shall have reasonably concluded that there may be
a conflict of interest  between the  Corporation  and Indemnitee with respect to
such Proceeding; or

               (iii) the Corporation  shall not in fact have employed counsel to
assume the defense in such  Proceeding  or shall not in fact have  assumed  such
defense and be acting in connection therewith with reasonable diligence;

in each of which  cases the fees and  expenses of such  counsel  shall be at the
expense of the Corporation.

            (c) The  Corporation  shall not settle any  Proceeding in any manner
that would impose any penalty or limitation on Indemnitee  without  Indemnitee's
written  consent.  Neither the  Corporation  nor  Indemnitee  will  unreasonably
withhold their consent to any proposed settlement.

         14. Notices.  All notices,  requests,  demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if (i)
delivered  by hand and  receipted  for by the party to whom said notice or other
communication  shall  have  been  directed,  or  (ii)  mailed  by  certified  or
registered mail with postage  prepaid,  on the third business day after the date
on which it is so mailed:

                                     - 7 -
<PAGE>

            (a) If to Indemnitee, to:

                ---------------------
                ---------------------
                ---------------------

            (b) If to the Corporation, to:

                Intraop Medical Corporation
                570 Del Rey Avenue
                Sunnyvale, California 94085

or to such  other  address  as may have  been  furnished  to  Indemnitee  by the
Corporation or to the Corporation by Indemnitee, as the case may be.

         15.  Nonexclusivity.  The rights of Indemnitee  hereunder  shall not be
deemed  exclusive of any other rights to which  Indemnitee may be entitled under
applicable law, the  Corporation's  Articles of Incorporation or bylaws,  or any
agreements,  vote of  stockholders,  resolution  of the  Board of  Directors  or
otherwise,  and to the extent that during the Indemnification  Period the rights
of the then existing directors and officers are more favorable to such directors
or officers than the rights currently provided to Indemnitee thereunder or under
this Agreement,  Indemnitee  shall be entitled to the full benefits of such more
favorable rights.

         16. Certain Definitions.

            (a)  "Agent"  shall  mean any person who is, was or may be deemed to
be, or who has consented to serve as, a director,  officer,  controlling person,
employee, agent, fiduciary,  joint venturer,  partner, manager or other official
of the  Corporation or a subsidiary or an affiliate of the  Corporation,  or any
other entity (including without limitation,  an employee benefit plan) either at
the request of, for the  convenience of, or otherwise to benefit the Corporation
or a subsidiary of the Corporation.

            (b)  "Change in  Control"  shall mean the  occurrence  of any of the
following:

               (i) Any "person" is or becomes the "beneficial owner" (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly,  of securities of
the Corporation  representing at least 50% of the total voting power represented
by the Corporation's then outstanding voting securities;

               (ii) The  stockholders  of the  Corporation  approve  a merger or
consolidation of the Corporation with any other  corporation,  if such merger or
consolidation   would  result  in  the  voting  securities  of  the  Corporation
outstanding   immediately  prior  thereto   representing  (either  by  remaining
outstanding  or by being  converted  into  voting  securities  of the  surviving
entity)  50% or  less  of the  total  voting  power  represented  by the  voting
securities of the Corporation or such surviving entity  outstanding  immediately
after such merger or consolidation;

                                     - 8 -
<PAGE>

               (iii) A majority of the members of the board of  directors  as of
the look-back date no longer serve as directors; or

               (iv) The  stockholders of the  Corporation  approve (A) a plan of
complete  liquidation  of the  Corporation  or (B) an agreement  for the sale or
disposition by the Corporation of all or substantially  all of the Corporation's
assets.

     For purposes of subsection (i) above, the term "person" shall have the same
meaning as when used in sections  13(d) and 14(d) of the Exchange Act, but shall
exclude (x) a trustee or other fiduciary  holding  securities  under an employee
benefit plan of the  Corporation or of a parent or subsidiary of the Corporation
or (y) a corporation  owned  directly or indirectly by the  stockholders  of the
Corporation in  substantially  the same  proportions  as their  ownership of the
common stock of the Corporation.

     For purposes of Subsection  (iii) above,  the term  "look-back  date" shall
mean the  later of (x) the date of this  Agreement  or (y) the date  twenty-four
(24)  months  prior to the date of the event  that may  constitute  a "Change in
Control."

     Any other provision of this Section 16(b) notwithstanding, the term "Change
in Control"  shall not include a  transaction,  if undertaken at the election of
the Corporation,  the result of which is to sell all or substantially all of the
assets of the Corporation to another corporation (the "surviving  corporation");
provided that the surviving  corporation  is owned directly or indirectly by the
stockholders  of the  corporation  immediately  following  such  transaction  in
substantially  the same  proportions  as their  ownership  of the  Corporation's
common stock immediately preceding such transaction; and provided, further, that
the surviving corporation expressly assumes this Agreement.

            (c)   "Disinterested   Director"   shall  mean  a  director  of  the
Corporation  who is not or was  not a  party  to or  otherwise  involved  in the
Proceeding in respect of which indemnification is being sought by Indemnitee.

            (d)   "Expenses"   shall  include  all  direct  and  indirect  costs
(including, without limitation, attorneys' fees, disbursements, retainers, court
costs,  transcripts,  fees of experts,  witness fees, other  professional  fees,
travel  expenses,  duplicating  costs,  printing  and binding  costs,  telephone
charges,   postage,   delivery   service  fees,  all  other   disbursements   or
out-of-pocket expenses and reasonable  compensation for time spent by Indemnitee
for which  Indemnitee is otherwise not  compensated  by the  Corporation  or any
third party)  actually and  reasonably  incurred in  connection  with either the
investigation, defense, settlement or appeal of a Proceeding, or being a witness
in, or preparing to defend or be a witness in such a Proceeding, or establishing
or enforcing a right to indemnification under this Agreement,  applicable law or
otherwise: provided, however, that "Expenses" shall not include any Liabilities.

            (e) "Final Adverse  Determination"  shall mean that a  determination
that Indemnitee is not entitled to indemnification shall have been made pursuant
to Section 5 hereof and either  (1) a final  adjudication  in a Nevada  court or
decision  of an  arbitrator  pursuant to Section  8(a) hereof  shall have denied
Indemnitee's  right to indemnification  hereunder,  or (2) Indemnitee shall have
failed  to file a  complaint  in a Nevada  court or seek an  arbitrator's  award
pursuant to Section 8(a) for a period of one hundred twenty (120) days after the
determination made pursuant to Section 5 hereof.

                                     - 9 -
<PAGE>

            (f) "Independent Legal Counsel" shall mean a law firm or a member of
a firm selected by the  Corporation  and approved by Indemnitee  (which approval
shall not be  unreasonably  withheld) or, if there has been a Change in Control,
selected by Indemnitee and approved by the Corporation (which approval shall not
be  unreasonably  withheld),  that neither is presently nor in the past five (5)
years  has  been  retained  to  represent:  (i)  the  Corporation  or any of its
subsidiaries or affiliates, or Indemnitee or any corporation of which Indemnitee
was or is a director, officer, employee or agent, or any subsidiary or affiliate
of such a corporation,  in any material  matter,  or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding
the foregoing, the term "Independent Legal Counsel" shall not include any person
who, under the applicable  standards of  professional  conduct then  prevailing,
would have a conflict of  interest in  representing  either the  Corporation  or
Indemnitee in an action to determine Indemnitee's right to indemnification under
this Agreement.

            (g)  "Liabilities"  shall mean  liabilities  of any type  whatsoever
including,  but not limited to, any  judgments,  fines,  ERISA  excise taxes and
penalties,  penalties  and amounts paid in  settlement  (including  all interest
assessments  and other charges paid or payable in connection  with or in respect
of such  judgments,  fines,  penalties  or amounts  paid in  settlement)  of any
Proceeding.

            (h)  "Proceeding"  shall mean any  threatened,  pending or completed
action,  claim,  suit,  arbitration,  alternate  dispute  resolution  mechanism,
investigation, administrative hearing or any other proceeding, wherever brought,
whether civil,  criminal,  administrative or  investigative,  that is associated
with Indemnitee's being an Agent of the Corporation.

         17. Binding Effect; Duration and Scope of Agreement; Related Parties.

            (a) This Agreement shall be binding upon and inure to the benefit of
and be  enforceable by the parties  hereto and their  respective  successors and
assigns  (including  any  direct or  indirect  successor  by  purchase,  merger,
consolidation or otherwise to all or substantially all of the business or assets
of the Corporation), spouses, heirs and personal and legal representatives. This
Agreement shall continue in effect during the Indemnification Period, regardless
of whether Indemnitee continues to serve as an Agent.

            (b) To the  extent  that  Indemnitee  is  serving  on the  Board  of
Directors at the direction of any stockholder of the Corporation  who,  pursuant
to the Articles of  Incorporation  or  contractual  arrangement,  shall have the
right to elect or appoint  Indemnitee to the Board of Directors (an  "Appointing
Stockholder"),   the  Corporation  shall  indemnify  and  hold  such  Appointing
Stockholder  harmless  from and against  Expenses and  Liabilities  actually and
reasonably  incurred by  Appointing  Stockholder  or on its behalf in connection
with the  investigation,  defense,  settlement or appeal of any  Proceeding,  or
being a witness in, or preparing to defend or be a witness in, such  Proceeding,
arising solely by reason of the fact that Appointing Stockholder has the ability
to appoint or elect Indemnitee to the Board of Directors, provided however, that
(i) the  limitations on  indemnification  in Section 6 shall apply to Appointing
Stockholder as "Indemnitee" hereunder; and (ii) no such indemnification shall be
available to any Appointing  Stockholder in the event that Indemnitee  shall not
be  entitled  to  indemnification  in the same or any  related  proceeding.  The
Corporation and Indemnitee agree that such Appointing Stockholder is an intended
third party beneficiary of this Agreement.

                                     - 10 -
<PAGE>

         18. Severability.  If any provision or provisions of this Agreement (or
any portion thereof) shall be held to be invalid,  illegal or unenforceable  for
any reason whatsoever:

            (a) the  validity,  legality  and  enforceability  of the  remaining
provisions  of this  Agreement  shall  not in any way be  affected  or  impaired
thereby; and

            (b) to the fullest extent legally  possible,  the provisions of this
Agreement shall be construed so as to give effect to the intent of any provision
held invalid, illegal or unenforceable.

         19.  Governing Law. This  Agreement  shall be governed by and construed
and enforced in accordance  with the laws of the State of Nevada,  as applied to
contracts  between Nevada  residents  entered into and to be performed  entirely
within the State of Nevada, without regard to conflict of laws rules.

         20.  Consent to  Jurisdiction.  The  Corporation  and  Indemnitee  each
irrevocably consent to the jurisdiction of the courts of the State of Nevada for
all purposes in connection  with any action or proceeding  that arises out of or
relates  to this  Agreement  and agree  that any  action  instituted  under this
Agreement shall be brought only in the state courts of the State of Nevada.

         21. Entire  Agreement.  This Agreement  represents the entire agreement
between the parties  hereto,  and there are no other  agreements,  contracts  or
understandings  between the parties hereto with respect to the subject matter of
this  Agreement,  except as  specifically  referred  to herein or as provided in
Section 15 hereof.

         22.  Counterparts.  This  Agreement  may be  executed  in  one or  more
counterparts,  each of which shall for all  purposes be deemed to be an original
but all of which together shall constitute one and the same Agreement.

                                     - 11 -
<PAGE>

     IN WITNESS  WHEREOF,  the parties hereto have executed the  Indemnification
Agreement as of the date set forth in the first paragraph hereof.

                                            INTRAOP MEDICAL CORPORATION
                                            a Nevada corporation

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

                                            INDEMNITEE

                                            ------------------------------------
                                            [Name]

                                     - 12 -

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