Document:

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                                                                    Exhibit 10.6

                           IMPAC MEDICAL SYSTEMS, INC.

                                 1998 STOCK PLAN

     1.   Purposes of the Plan. The purposes of this 1998 Stock Plan are to
          --------------------
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees and Consultants of
the Company and its Subsidiaries and to promote the success of the Company's
business. Options granted under the Plan may be Incentive Stock Options (as
defined under Section 422 of the Code) or Nonstatutory Stock Options, as
determined by the Administrator at the time of grant of an Option and subject to
the applicable provisions of Section 422 of the Code, as amended, and the
regulations promulgated thereunder. Stock purchase rights may also be granted
under the Plan.

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

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

          (b)  "Affiliate" means an entity other than a Subsidiary (as defined
                ---------
below) in which the Company owns an equity interest.

          (c)  "Applicable Laws" means the legal requirements relating to the
                ---------------
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any Stock Exchange and the
applicable laws of any other country or jurisdiction where Options are granted
under the Plan.

          (d)  "Board" means the Board of Directors of the Company.
                -----

          (e)  "Change in Control" means a sale of all or substantially all of
                -----------------
the Company's assets, or a merger, consolidation or other capital reorganization
of the Company with or into another corporation; provided however that a merger,
consolidation or other capital reorganization in which the holders of more than
50% of the shares of capital stock of the Company outstanding immediately prior
to such transaction continue to hold (either by the voting securities remaining
outstanding or by being converted into voting securities of the surviving
entity) more than 50% of the total voting power represented by the voting
securities of the Company, or such surviving entity, outstanding immediately
after such transaction shall not constitute a Change in Control.

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

          (g)  "Committee" means the Committee appointed by the Board of
                ---------
Directors to administer the Plan in accordance with Section 4 below.

          (h)  "Common Stock" means the Common Stock of the Company.
                ------------

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          (i)  "Company" means IMPAC Medical Systems, Inc., a California
                -------
corporation.

          (j)  "Consultant" means any person, including an advisor, who renders
                ----------
services to the Company, or any Parent, Subsidiary or Affiliate, and is
compensated for such services, and any director of the Company whether
compensated for such services or not.

          (k)  "Continuous Status as an Employee or Consultant" means the
                ----------------------------------------------
absence of any interruption or termination of service as an Employee or
Consultant. Continuous Status as an Employee or Consultant shall not be
considered interrupted in the case of: (i) sick leave; (ii) military leave;
(iii) any other leave of absence approved by the Administrator, provided that
such leave is for a period of not more than 90 days, unless reemployment upon
the expiration of such leave is guaranteed by contract or statute, or unless
provided otherwise pursuant to Company policy adopted from time to time; or (iv)
in the case of transfers between locations of the Company or between the
Company, its Parent(s), Affiliates, Subsidiaries or their respective successors.
For purposes of this Plan, a change in status from an Employee to a Consultant
or from a Consultant to an Employee will not constitute an interruption of
Continuous Status as an Employee or Consultant.

          (l)  "Director" means a member of the Board.
                --------

          (m)  "Employee" means any person, including officers and directors,
                --------
employed by the Company or any Parent, Subsidiary or Affiliate of the Company,
with the status of employment determined based upon such minimum number of hours
or periods worked as shall be determined by the Administrator in its discretion,
subject to any requirements of the Code. The payment by the Company of a
director's fee to a director shall not be sufficient to constitute "employment"
of such director by the Company.

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

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

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

               (ii) If the Common Stock is quoted on the Nasdaq System (but not
on the National Market thereof) or regularly quoted by a recognized securities
dealer but selling prices are not reported, its Fair Market Value shall be the
mean between the high bid and low asked prices for the Common Stock for the last
market trading day prior to the time of

                                      -2-

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determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable; or

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

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

          (q)  "Listed Security" means any security of the Company which is
                ---------------
listed or approved for listing on a national securities exchange or designated
or approved for designation as a national market system security on an
interdealer quotation system by the National Association of Securities Dealers,
Inc.

          (r)  "Nonstatutory Stock Option" means an Option not intended to
                -------------------------
qualify as an Incentive Stock Option, as designated in the applicable written
Option Agreement.

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

          (t)  "Option Agreement" means a written agreement between an Optionee
                ----------------
and the Company reflecting the terms of an Option granted under the Plan and
includes any documents attached to such Option Agreement, including, but not
limited to, a notice of stock option grant and a form of exercise notice.

          (u)  "Option Exchange Program" means a program whereby outstanding
                -----------------------
Options are exchanged for Options with a lower exercise price.

          (v)  "Optioned Stock" means the Common Stock subject to an Option or a
                --------------
Stock Purchase Right.

          (w)  "Optionee" means an Employee or Consultant who receives an Option
                --------
or a Stock Purchase Right.

          (x)  "Parent" means a "parent corporation," whether now or hereafter
                ------
existing, as defined in Section 424(e) of the Code, or any successor provision.

          (y)  "Plan" means this 1998 Stock Plan.
                ----

          (z)  "Reporting Person" means an officer, director, or greater than
                ----------------
10% shareholder of the Company within the meaning of Rule 16a-2 under the
Exchange Act, who is required to file reports pursuant to Rule 16a-3 under the
Exchange Act.

          (aa) "Restricted Stock" means shares of Common Stock acquired pursuant
                ----------------
to a grant of a Stock Purchase Right under Section 10 below.

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          (bb) "Restricted Stock Purchase Agreement" means a written agreement
                -----------------------------------
between a holder of a Stock Purchase Right and the Company reflecting the terms
of a Stock Purchase Right granted under the Plan and includes any documents
attached to such agreement.

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

          (dd) "Share" means a share of the Common Stock, as adjusted in
                -----
accordance with Section 12 of the Plan.

          (ee) "Stock Exchange" means any stock exchange or consolidated stock
                --------------
price reporting system on which prices for the Common Stock are quoted at any
given time.

          (ff) "Stock Purchase Right" means the right to purchase Common Stock
                --------------------
pursuant to Section 10 below.

          (gg) "Subsidiary" means a "subsidiary corporation," whether now or
                ----------
hereafter existing, as defined in Section 424(f) of the Code, or any successor
provision.

     3.   Stock Subject to the Plan. Subject to the provisions of Section 12 of
          -------------------------
the Plan, the maximum aggregate number of Shares that may be optioned and sold
under the Plan is 300,000 Shares of Common Stock. The Shares may be authorized,
but unissued, or reacquired Common Stock. If an Option expires or becomes
unexercisable for any reason without having been exercised in full, or is
surrendered pursuant to an Option Exchange Program, the unpurchased Shares that
were subject thereto shall, unless the Plan shall have been terminated, become
available for future grant under the Plan. In addition, any Shares of Common
Stock that are retained by the Company upon exercise of an Option or Stock
Purchase Right in order to satisfy the exercise or purchase price for such
Option or Stock Purchase Right or any withholding taxes due with respect to such
exercise shall be treated as not issued and shall continue to be available under
the Plan. Shares repurchased by the Company pursuant to any repurchase right
that the Company may have shall not be available for future grant under the
Plan.

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

          (a)  Initial Plan Procedure. Prior to the date, if any, upon which the
               ----------------------
Company becomes subject to the Exchange Act, the Plan shall be administered by
the Board or a Committee appointed by the Board.

          (b)  Plan Procedure After the Date, if any, Upon Which the Company
               -------------------------------------------------------------
Becomes Subject to the Exchange Act.
-----------------------------------

               (i)  Multiple Administrative Bodies. If permitted by Rule 16b-3,
                    ------------------------------
grants under the Plan may be made by different bodies with respect to Directors,
non-Director officers and Employees or Consultants who are not Reporting
Persons.

               (ii) Administration With Respect to Reporting Persons. With
                    ------------------------------------------------
respect to grants of Options or Stock Purchase Rights to Employees who are
Reporting Persons,

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such grants shall be made by (A) the Board if the Board may make grants to
Reporting Persons under the Plan in compliance with Rule 16b-3, or (B) a
Committee designated by the Board to make grants to Reporting Persons under the
Plan, which Committee shall be constituted in such a manner as to permit grants
under the Plan to comply with Rule 16b-3. Once appointed, such Committee shall
continue to serve in its designated capacity until otherwise directed by the
Board. From time to time the Board may increase the size of the Committee and
appoint additional members thereof, remove members (with or without cause) and
appoint new members in substitution therefor, fill vacancies, however caused,
and remove all members of the Committee and thereafter directly make grants to
Reporting Persons under the Plan, all to the extent permitted by Rule 16b-3.

               (iii) Administration With Respect to Consultants and Other
                     ----------------------------------------------------
Employees. With respect to grants of Options or Stock Purchase Rights to
---------
Employees or Consultants who are not Reporting Persons, the Plan shall be
administered by (A) the Board or (B) a Committee designated by the Board, which
Committee shall be constituted in such a manner as to satisfy the Applicable
Laws. Once appointed, such Committee shall continue to serve in its designated
capacity until otherwise directed by the Board. From time to time the Board may
increase the size of the Committee and appoint additional members thereof,
remove members (with or without cause) and appoint new members in substitution
therefor, fill vacancies, however caused, and remove all members of the
Committee and thereafter directly administer the Plan, all to the extent
permitted by the Applicable Laws.

          (c)  Powers of the Administrator. Subject to the provisions of the
               ---------------------------
Plan and in the case of a Committee, the specific duties delegated by the Board
to such Committee, and subject to the approval of any relevant authorities,
including the approval, if required, of any Stock Exchange, the Administrator
shall have the authority, in its discretion:

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

               (ii)  to select the Consultants and Employees to whom Options and
Stock Purchase Rights or any combination thereof may from time to time be
granted hereunder;

               (iii) to determine whether and to what extent Options and Stock
Purchase Rights or any combination thereof are granted hereunder;

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

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

               (vi)  to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any award granted hereunder, which terms and
conditions include but are not limited to the exercise or purchase price, the
time or times when Options or Stock Purchase Rights may be exercised (which may
be based on performance criteria), any vesting acceleration or waiver of
forfeiture restrictions, and any restriction or limitation regarding any Option,

                                      -5-

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Optioned Stock, Stock Purchase Right or Restricted Stock, based in each case on
such factors as the Administrator, in its sole discretion, shall determine;

               (vii)  to determine whether and under what circumstances an
Option may be settled in cash under Section 9(g) instead of Common Stock;

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

               (ix)   to determine the terms and restrictions applicable to
Stock Purchase Rights and the Restricted Stock purchased by exercising such
Stock Purchase Rights;

               (x)    to initiate an Option Exchange Program;

               (xi)   to construe and interpret the terms of the Plan and awards
granted under the Plan; and

               (xii)  in order to fulfill the purposes of the Plan and without
amending the Plan, to modify grants of Options or Stock Purchase Rights to
participants who are foreign nationals or employed outside of the United States
in order to recognize differences in local law, tax policies or customs.

          (d)  Effect of Administrator's Decision. All decisions, determinations
               ----------------------------------
and interpretations of the Administrator shall be final and binding on all
holders of Options or Stock Purchase Rights.

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

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

          (b)  Type of Option. Each Option shall be designated in the Option
               --------------
Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.
However, notwithstanding such designations, to the extent that the aggregate
Fair Market Value of Shares with respect to which Options designated as
Incentive Stock Options are exercisable for the first time by any Optionee
during any calendar year (under all plans of the Company or any Parent or
Subsidiary) exceeds $100,000, such excess Options shall be treated as
Nonstatutory Stock Options. For purposes of this Section 5(b), Incentive Stock
Options shall be taken into account in the order in which they were granted, and
the Fair Market Value of the Shares subject to an Incentive Stock Option shall
be determined as of the date of the grant of such Option.

                                      -6-

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          (c)  At-Will Relationship. The Plan shall not confer upon the holder
               --------------------
of any Option or Stock Purchase Right any right with respect to continuation of
employment or consulting relationship with the Company, nor shall it interfere
in any way with such holder's right or the Company's right to terminate his or
her employment or consulting relationship at any time, with or without cause.

     6.   Term of Plan. The Plan shall become effective upon its adoption by the
          ------------
Board. It shall continue in effect for a term of ten years unless sooner
terminated under Section 15 of the Plan.

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

     8.   Option Exercise Price and Consideration.
          ---------------------------------------

          (a)  The per share exercise price for the Shares to be issued pursuant
to exercise of an Option shall be such price as is determined by the Board and
set forth in the Option Agreement, but shall be subject to the following:

               (i)   In the case of an Incentive Stock Option that is:

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

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

               (ii)  In the case of a Nonstatutory Stock Option that is:

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

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

               (iii) Notwithstanding the foregoing, Options may be granted with
a per Share exercise price other than as required above pursuant to a merger or
other corporate transaction.

                                       -7-

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          (b)  The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall be determined by
the Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant) and may consist entirely of (1) cash, (2)
check, (3) promissory note, (4) cancellation of indebtedness, (5) other Shares
that (x) in the case of Shares acquired upon exercise of an Option, have been
owned by the Optionee for more than six months on the date of surrender or such
other period as may be required to avoid a charge to the Company's earnings, and
(y) have a Fair Market Value on the date of surrender equal to the aggregate
exercise price of the Shares as to which such Option shall be exercised, (6)
authorization for the Company to retain from the total number of Shares as to
which the Option is exercised that number of Shares having a Fair Market Value
on the date of exercise equal to the exercise price for the total number of
Shares as to which the Option is exercised, (7) delivery of a properly executed
exercise notice together with such other documentation as the Administrator and
the broker, if applicable, shall require to effect an exercise of the Option and
delivery to the Company of the sale or loan proceeds required to pay the
exercise price and any applicable income or employment taxes, (8) delivery of an
irrevocable subscription agreement for the Shares that irrevocably obligates the
option holder to take and pay for the Shares not more than twelve months after
the date of delivery of the subscription agreement, (9) any combination of the
foregoing methods of payment, or (10) such other consideration and method of
payment for the issuance of Shares to the extent permitted under the Applicable
Laws. In making its determination as to the type of consideration to accept, the
Administrator shall consider if acceptance of such consideration may be
reasonably expected to benefit the Company.

     9.   Exercise of Option.
          ------------------

          (a)  Procedure for Exercise; Rights as a Shareholder. Any Option
               -----------------------------------------------
granted hereunder shall be exercisable at such times and under such conditions
as determined by the Administrator and reflected in the Option Agreement, which
may include vesting requirements and/or performance criteria with respect to the
Company and/or the Optionee; provided however, that any Option granted prior to
the date, if any, upon which the Common Stock becomes a Listed Security shall
become exercisable at the rate of at least 20% per year over five years from the
date the Option is granted. In the event that any of the Shares issued upon
exercise of an Option (which exercise occurs prior to the date, if any, upon
which the Common Stock becomes a Listed Security) should be subject to a right
of repurchase in the Company's favor, such repurchase right shall lapse at the
rate of at least 20% per year over five years from the date the Option is
granted. Notwithstanding the above, in the case of an Option granted to an
officer, Director or Consultant of the Company or any Parent or Subsidiary of
the Company, the Option may become fully exercisable, or a repurchase right, if
any, in favor of the Company shall lapse, at any time or during any period
established by the Administrator. The Administrator shall have the discretion to
determine whether and to what extent the vesting of Options shall be tolled
during any unpaid leave of absence; provided however that in the absence of such
determination, vesting of Options shall be tolled during any such leave.

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

                                      -8-

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         An Option shall be deemed exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and the Company has
received full payment for the Shares with respect to which the Option is
exercised. Full payment may, as authorized by the Administrator, consist of any
consideration and method of payment allowable under Section 8(b) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Optioned Stock,
not withstanding the exercise of the Option. The Company shall issue (or cause
to be issued) such stock certificate promptly upon exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 12 of the Plan.

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

               (b) Termination of Employment or Consulting Relationship. Subject
                   ----------------------------------------------------
to Section 9(c) below, in the event of termination of an Optionee's Continuous
Status as an Employee or Consultant with the Company, such Optionee may, but
only within three months (or such other period of time not less than 30 days as
is determined by the Administrator, with such determination in the case of an
Incentive Stock Option being made at the time of grant of the Option and not
exceeding three months) after the date of such termination (but in no event
later than the expiration date of the term of such Option as set forth in the
Option Agreement), exercise his or her Option to the extent that the Optionee
was entitled to exercise it at the date of such termination. To the extent that
the Optionee was not entitled to exercise the Option at the date of such
termination, or if the Optionee does not exercise such Option to the extent so
entitled within the time specified herein, the Option shall terminate and the
Optioned Stock underlying the unexercised portion of the Option shall revert to
the Plan. No termination shall be deemed to occur and this Section 9(b) shall
not apply if (i) the Optionee is a Consultant who becomes an Employee, or (ii)
the Optionee is an Employee who becomes a Consultant.

               (c) Disability of Optionee.
                   ----------------------

                   (i)   Notwithstanding Section 9(b) above, in the event of
termination of an Optionee's Continuous Status as an Employee or Consultant as a
result of his or her total and permanent disability (within the meaning of
Section 22(e)(3) of the Code), such Optionee may, but only within twelve months
from the date of such termination (but in no event later than the expiration
date of the term of such Option as set forth in the Option Agreement), exercise
the Option to the extent otherwise entitled to exercise it at the date of such
termination. To the extent that the Optionee was not entitled to exercise the
Option at the date of termination, or if the Optionee does not exercise such
Option to the extent so entitled within the time specified herein, the Option
shall terminate and the Optioned Stock underlying the unexercised portion of the
Option shall revert to the Plan.

                                      -9-

<PAGE>

                   (ii)  In the event of termination of an Optionee's Continuous
Status as an Employee or Consultant as a result of a disability which does not
fall within the meaning of total and permanent disability (as set forth in
Section 22(e)(3) of the Code), such Optionee may, but only within six months
from the date of such termination (but in no event later than the expiration
date of the term of such Option as set forth in the Option Agreement), exercise
the Option to the extent otherwise entitled to exercise it at the date of such
termination. However, to the extent that such Optionee fails to exercise an
Option which is an Incentive Stock Option (within the meaning of Section 422 of
the Code) within three months of the date of such termination, the Option will
not qualify for Incentive Stock Option treatment under the Code. To the extent
that the Optionee was not entitled to exercise the Option at the date of
termination, or if the Optionee does not exercise such Option to the extent so
entitled within six months from the date of termination, the Option shall
terminate and the Optioned Stock underlying the unexercised portion of the
Option shall revert to the Plan.

               (d) Death of Optionee. In the event of the death of an Optionee
                   -----------------
during the period of Continuous Status as an Employee or Consultant since the
date of grant of the Option, or within 30 days following termination of the
Optionee's Continuous Status as an Employee or Consultant, the Option may be
exercised, at any time within six months following the date of death (but in no
event later than the expiration date of the term of such Option as set forth in
the Option Agreement), by such Optionee's estate or by a person who acquired the
right to exercise the Option by bequest or inheritance, but only to the extent
of the right to exercise that had accrued at the date of death or, if earlier,
the date of termination of the Optionee's Continuous Status as an Employee or
Consultant. To the extent that the Optionee was not entitled to exercise the
Option at the date of death or termination, as the case may be, or if the
Optionee does not exercise such Option to the extent so entitled within the time
specified herein, the Option shall terminate and the Optioned Stock underlying
the unexercised portion of the Option shall revert to the Plan.

               (e) Extension of Exercise Period. The Administrator shall have
                   ----------------------------
full power and authority to extend the period of time for which an Option is to
remain exercisable following termination of an Optionee's Continuous Status as
an Employee or Consultant from the periods set forth in Sections 10(b), 10(c)
and 10(d) above or in the Option Agreement to such greater time as the Board
shall deem appropriate, provided, that in no event shall such option be
exercisable later than the date of expiration of the term of such Option as set
forth in the Option Agreement.

               (f) Rule 16b-3. Options granted to Reporting Persons shall comply
                   ----------
with Rule 16b-3 and shall contain such additional conditions or restrictions as
may be required thereunder to qualify for the maximum exemption for Plan
transactions.

               (g) Buy-Out Provisions. The Administrator may at any time offer
                   ------------------
to buy out for a payment in cash or Shares an Option previously granted based on
such terms and conditions as the Administrator shall establish and communicate
to the Optionee at the time such offer is made.

                                      -10-

<PAGE>

         10.   Stock Purchase Rights.
               ---------------------

               (a) Rights to Purchase. Stock Purchase Rights may be issued
                   ------------------
either alone, in addition to, or in tandem with other awards granted under the
Plan and/or cash awards made outside of the Plan. After the Administrator
determines that it will offer Stock Purchase Rights under the Plan, it shall
advise the offeree in writing of the terms, conditions and restrictions related
to the offer, including the number of Shares that such person shall be entitled
to purchase, the price to be paid (which price shall not be less than 85% of the
Fair Market Value of the Shares as of the date of the offer, or, in the case of
a person owning stock representing more than 10% of the total combined voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
price shall not be less than 100% of the Fair Market Value of the Shares as of
the date of the offer), and the time within which such person must accept such
offer, which shall in no event exceed 30 days from the date upon which the
Administrator made the determination to grant the Stock Purchase Right. The
offer shall be accepted by execution of a Restricted Stock Purchase Agreement in
the form determined by the Administrator.

               (b) Repurchase Option. Unless the Administrator determines
                   -----------------
otherwise, the Restricted Stock Purchase Agreement shall grant the Company a
repurchase option exercisable upon the voluntary or involuntary termination of
the purchaser's employment with the Company for any reason (including death or
disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock Purchase Agreement shall be the original purchase price paid by
the purchaser and may be paid by cancellation of any indebtedness of the
purchaser to the Company. The repurchase option shall lapse at such rate as the
Administrator may determine; provided, however, that with respect to an Optionee
who is not an officer, director or Consultant of the Company or of any Parent or
Subsidiary of the Company, it shall lapse at a minimum rate of 20% per year.

               (c) Other Provisions. The Restricted Stock Purchase Agreement
                   ----------------
shall contain such other terms, provisions and conditions not inconsistent with
the Plan as may be determined by the Administrator in its sole discretion. In
addition, the provisions of Restricted Stock Purchase Agreements need not be the
same with respect to each purchaser.

               (d) Rights as a Shareholder. Once the Stock Purchase Right is
                   -----------------------
exercised, the purchaser shall have the rights equivalent to those of a
shareholder, and shall be a shareholder when his or her purchase is entered upon
the records of the duly authorized transfer agent of the Company. No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the Stock Purchase Right is exercised, except as provided in Section 12
of the Plan.

         11.   Stock Withholding to Satisfy Withholding Tax Obligations. At the
               --------------------------------------------------------
discretion of the Administrator, Optionees may satisfy withholding obligations
as provided in this paragraph. When an Optionee incurs tax liability in
connection with an Option or Stock Purchase Right, which tax liability is
subject to tax withholding under applicable tax laws, and the Optionee is
obligated to pay the Company an amount required to be withheld under applicable
tax laws, the Optionee may satisfy the withholding tax obligation by one or some
combination of the following methods: (a) by cash or check payment, (b) out of
the Optionee's current compensation, (c) if

                                      -11-

<PAGE>

permitted by the Administrator, in its discretion, by surrendering to the
Company Shares that (i) in the case of Shares previously acquired from the
Company, have been owned by the Optionee for more than six months on the date of
surrender, and (ii) have a Fair Market Value on the date of surrender equal to
or less than the amount required to be withheld, or (d) by electing to have the
Company withhold from the Shares to be issued upon exercise of the Option, or
the Shares to be issued in connection with the Stock Purchase Right, if any,
that number of Shares having a Fair Market Value equal to the amount required to
be withheld. For this purpose, the Fair Market Value of the Shares to be
withheld shall be determined on the date that the amount of tax to be withheld
is to be determined (the "Tax Date").
                          --------

         Any surrender by a Reporting Person of previously owned Shares to
satisfy tax withholding obligations arising upon exercise of this Option must
comply with the applicable provisions of Rule 16b-3.

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

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

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

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

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

         12.   Adjustments Upon Changes in Capitalization, Merger or Certain
               -------------------------------------------------------------
Other Transactions.
------------------

               (a) Changes in Capitalization. Subject to any required action by
                   -------------------------
the shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option or Stock Purchase Right, and the number of shares of
Common Stock that have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or that have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding Option or Stock Purchase Right, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination, recapitalization or reclassification of the Common Stock, or any
other increase or decrease in the number of issued shares of Common Stock
effected without receipt of consideration by the Company; provided,

                                      -12-

<PAGE>

however, that conversion of any convertible securities of the Company shall not
be deemed to have been "effected without receipt of consideration." Such
adjustment shall be made by the Board, whose determination in that respect shall
be final, binding and conclusive. Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares
of Common Stock subject to an Option or Stock Purchase Right.

               (b) Dissolution or Liquidation. In the event of the proposed
                   --------------------------
dissolution or liquidation of the Company, the Board shall notify the Optionee
at least 15 days prior to such proposed action. To the extent it has not been
previously exercised, the Option or Stock Purchase Right will terminate
immediately prior to the consummation of such proposed action.

               (c) Change in Control. In the event of a Change in Control, each
                   -----------------
outstanding Option or Stock Purchase Right shall be assumed or an equivalent
option or right shall be substituted by the successor corporation or a Parent or
Subsidiary of such successor corporation, unless such successor corporation does
not agree to assume the outstanding Options or Stock Purchase Rights or to
substitute equivalent options or rights, in which case such Options or Stock
Purchase Rights shall terminate upon the consummation of the transaction.

               For purposes of this Section 12(c), an Option or a Stock Purchase
Right shall be considered assumed, without limitation, if, at the time of
issuance of the stock or other consideration upon such Change in Control, each
holder of an Option or Stock Purchase Right would be entitled to receive upon
exercise of the Option or Stock Purchase Right the same number and kind of
shares of stock or the same amount of property, cash or securities as such
holder would have been entitled to receive upon the occurrence of the
transaction if the holder had been, immediately prior to such transaction, the
holder of the number of Shares of Common Stock covered by the Option or the
Stock Purchase Right at such time (after giving effect to any adjustments in the
number of Shares covered by the Option or Stock Purchase Right as provided for
in this Section 12); provided however that if such consideration received in the
Change in Control was not solely common stock of the successor corporation or
its Parent, the Administrator may, with the consent of the successor
corporation, provide for the consideration to be received upon exercise of the
Option to be solely common stock of the successor corporation or its Parent
equal to the Fair Market Value of the per Share consideration received by
holders of Common Stock in the transaction.

               (d) Certain Distributions. In the event of any distribution to
                   ---------------------
the Company's shareholders of securities of any other entity or other assets
(other than dividends payable in cash or stock of the Company) without receipt
of consideration by the Company, the Administrator may, in its discretion,
appropriately adjust the price per Share of Common Stock covered by each
outstanding Option or Stock Purchase Right to reflect the effect of such
distribution.

         13.   Non-Transferability of Options and Stock Purchase Rights.
               --------------------------------------------------------
Options and Stock Purchase Rights may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by
the laws of descent or distribution and may be exercised or purchased during the
lifetime of the Optionee or the holder of Stock Purchase Rights only by

                                      -13-

<PAGE>

the Optionee or holder of Stock Purchase Rights; provided however that, after
the date, if any, upon which the Common Stock becomes a Listed Security, the
Administrator may in its discretion grant transferable Nonstatutory Stock
Options pursuant to Option Agreements specifying (i) the manner in which such
Nonstatutory Stock Options are transferable and (ii) that any such transfer
shall be subject to the Applicable Laws. The designation of a beneficiary by an
Optionee will not constitute a transfer. An Option or Stock Purchase Right may
be exercised, during the lifetime of the holder of the Option or Stock Purchase
Right, only by such holder or a transferee permitted by this Section 13.

         14.   Time of Granting Options and Stock Purchase Rights. The date of
               --------------------------------------------------
grant of an Option or Stock Purchase Right shall, for all purposes, be the date
on which the Administrator makes the determination granting such Option or Stock
Purchase Right, or such other date as is determined by the Board; provided,
however, that in the case of any Incentive Stock Option, the grant date shall be
the later of the date on which the Administrator makes the determination
granting such Incentive Stock Option or the date of commencement of the
Optionee's employment relationship with the Company. Notice of the determination
shall be given to each Employee or Consultant to whom an Option or Stock
Purchase Right is so granted within a reasonable time after the date of such
grant.

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

               (a) Authority to Amend or Terminate. The Board may at any time
                   -------------------------------
amend, alter, suspend or discontinue the Plan, but no amendment, alteration,
suspension or discontinuation shall be made that would impair the rights of any
Optionee under any grant theretofore made, without his or her consent. In
addition, to the extent necessary and desirable to comply with Rule 16b-3 or
with Section 422 of the Code (or any other applicable law or regulation,
including the requirements of any Stock Exchange), the Company shall obtain
shareholder approval of any Plan amendment in such a manner and to such a degree
as required.

               (b) Effect of Amendment or Termination. No amendment or
                   ----------------------------------
termination of the Plan shall adversely affect Options already granted, unless
mutually agreed otherwise between the Optionee and the Administrator, which
agreement must be in writing and signed by the Optionee and the Company.

         16.   Conditions Upon Issuance of Shares. Shares shall not be issued
               ----------------------------------
pursuant to the exercise of an Option or Stock Purchase Right unless the
exercise of such Option or Stock Purchase Right and the issuance and delivery of
such Shares pursuant thereto shall comply with all relevant provisions of law,
including, without limitation, the Securities Act of 1933, as amended, the
Exchange Act, the rules and regulations promulgated thereunder, and the
requirements of any Stock Exchange.

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

                                      -14-

<PAGE>

         17.  Reservation of Shares. The Company, during the term of this Plan,
              ---------------------
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. The inability of the Company
to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

         18.  Agreements.  Options and Stock Purchase Rights shall be evidenced
              ----------
by written Option Agreements and Restricted Stock Purchase Agreements,
respectively, in such form(s) as the Administrator shall approve from time to
time.

         19.  Shareholder Approval. Continuance of the Plan shall be subject to
              --------------------
approval by the shareholders of the Company within twelve months before or after
the date the Plan is adopted. Such shareholder approval shall be obtained in the
degree and manner required under applicable state and federal law and the rules
of any Stock Exchange upon which the Common Stock is listed. All Options and
Stock Purchase Rights issued under the Plan shall become void in the event such
approval is not obtained.

         20.  Information and Documents to Optionees and Purchasers. The Company
              -----------------------------------------------------
shall provide financial statements at least annually to each Optionee and to
each individual who acquired Shares pursuant to the Plan, during the period such
Optionee or purchaser has one or more Options or Stock Purchase Rights
outstanding, and in the case of an individual who acquired Shares pursuant to
the Plan, during the period such individual owns such Shares. The Company shall
not be required to provide such information if the issuance of Options or Stock
Purchase Rights under the Plan is limited to key employees whose duties in
connection with the Company assure their access to equivalent information. In
addition, at the time of issuance of any securities under the Plan, the Company
shall provide to the Optionee or the purchaser a copy of the Plan and any
agreement(s) pursuant to which securities granted under the Plan are issued.

                                      -15-<PAGE>

                                                                    EXHIBIT 10.7

                           IMPAC MEDICAL SYSTEMS, INC.

                                 2002 STOCK PLAN

<PAGE>

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
                                                                                                      Page
                                                                                                      ----
<S>                                                                                                   <C>
SECTION 1.     PURPOSE ...........................................................................     1

SECTION 2.     DEFINITIONS .......................................................................     1

           (a)   "Affiliate" .....................................................................     1
           (b)   "Award" .........................................................................     1
           (c)   "Board" .........................................................................     1
           (d)   "Change In Control" .............................................................     1
           (e)   "Code" ..........................................................................     2
           (f)   "Committee" .....................................................................     2
           (g)   "Common Stock" ..................................................................     2
           (h)   "Company" .......................................................................     2
           (i)   "Consultant" ....................................................................     2
           (j)   "Director" ......................................................................     3
           (k)   "Disability" ....................................................................     3
           (l)   "Employee" ......................................................................     3
           (m)   "Exchange Act" ..................................................................     3
           (n)   "Exercise Price" ................................................................     3
           (o)   "Fair Market Value" .............................................................     3
           (p)   "Grant" .........................................................................     3
           (q)   "Incentive Stock Option" or "ISO" ...............................................     3
           (r)   "Key Employee" ..................................................................     3
           (s)   "Non-Employee Director" .........................................................     4
           (t)   "Nonstatutory Stock Option" or "NSO" ............................................     4
           (u)   "Option" ........................................................................     4
           (v)   "Optionee" ......................................................................     4
           (w)   "Parent" ........................................................................     4
           (x)   "Participant" ...................................................................     4
           (y)   "Plan" ..........................................................................     4
           (z)   "Restricted Stock" ..............................................................     4
           (aa)  "Restricted Stock Agreement" ....................................................     4
           (bb)  "Securities Act" ................................................................     4
           (cc)  "Service" .......................................................................     4
           (dd)  "Share" .........................................................................     4
           (ee)  "Stock Option Agreement" ........................................................     4
           (ff)  "Stock Purchase Right" ..........................................................     4
           (gg)  "Subsidiary" ....................................................................     4
           (hh)  "10-Percent Shareholder" ........................................................     4

SECTION 3.     ADMINISTRATION ....................................................................     5

           (a)   Committee Composition ...........................................................     5
           (b)   Authority of the Committee ......................................................     5
           (c)   Indemnification .................................................................     5

SECTION 4.     ELIGIBILITY .......................................................................     6

           (a)   General Rules ...................................................................     6
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                      Page
                                                                                                      ----
<S>                                                                                                    <C>
           (b)   Incentive Stock Options .........................................................     6
           (c)   Non-Employee Director Options ...................................................     6

SECTION 5.     SHARES SUBJECT TO PLAN ............................................................     7

           (a)   Basic Limitation ................................................................     7
           (b)   Annual Addition .................................................................     7
           (c)   Additional Shares ...............................................................     7
           (d)   Limits on Options ...............................................................     7
           (e)   Limits on Stock Purchase Rights .................................................     7

SECTION 6.     TERMS AND CONDITIONS OF OPTIONS ...................................................     7

           (a)   Stock Option Agreement ..........................................................     7
           (b)   Number of Shares ................................................................     8
           (c)   Exercise Price ..................................................................     8
           (d)   Exercisability and Term .........................................................     8
           (e)   Modifications or Assumption of Options ..........................................     8
           (f)   Transferability of Options ......................................................     8
           (g)   Restrictions on Transfer ........................................................     9

SECTION 7.     PAYMENT FOR OPTION SHARES .........................................................     9

           (a)   General Rule ....................................................................     9
           (b)   Surrender of Stock ..............................................................     9
           (c)   Promissory Note .................................................................     9
           (d)   Other Forms of Payment ..........................................................     9

SECTION 8.     TERMS AND CONDITIONS FOR AWARDS OF STOCK PURCHASE RIGHTS. .........................     9

           (a)   Time, Amount and Form of Awards .................................................     9
           (b)   Agreements ......................................................................     9
           (c)   Payment for Restricted Stock ....................................................    10
           (d)   Vesting Conditions ..............................................................    10
           (e)   Assignment or Transfer of Restricted Stock ......................................    10
           (f)   Trusts ..........................................................................    10
           (g)   Voting and Dividend Rights ......................................................    10

SECTION 9.     PROTECTION AGAINST DILUTION .......................................................    10

           (a)   Adjustments .....................................................................    10
           (b)   Participant Rights ..............................................................    11

SECTION 10.    EFFECT OF A CHANGE IN CONTROL .....................................................    11

           (a)   Merger or Reorganization ........................................................    11
           (b)   Acceleration ....................................................................    11

SECTION 11.    LIMITATIONS ON RIGHTS .............................................................    11

           (a)   Retention Rights ................................................................    11
           (b)   Stockholders' Rights ............................................................    12
           (c)   Regulatory Requirements .........................................................    12
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                     Page
                                                                                                     ----
<S>                                                                                                  <C>
SECTION 12.    WITHHOLDING TAXES ..................................................................   12

           (a)   General ..........................................................................   12
           (b)   Share Withholding ................................................................   12

SECTION 13.    DURATION AND AMENDMENTS ............................................................   12

           (a)   Term of the Plan .................................................................   12
           (b)   Right to Amend or Terminate the Plan .............................................   12

SECTION 14.    EXECUTION ..........................................................................   13
</TABLE>

                                     -iii-

<PAGE>

                           IMPAC MEDICAL SYSTEMS, INC.

                                 2002 STOCK PLAN

SECTION 1.        PURPOSE.

     The Company's Board of Directors adopted the IMPAC Medical Systems, Inc.
     2002 Stock Plan on May 31, 2002 (the "Adoption Date"), subject to the
     approval of the Company's stockholders. The Plan shall be effective as of
     the date on which Shares are first made available to the general public
     pursuant to an initial public offering of the Shares (the "IPO Date").

     The purpose of the Plan is to promote the long-term success of the Company
     and the creation of shareholder value by offering Key Employees an
     opportunity to acquire a proprietary interest in the success of the
     Company, or to increase such interest, and to encourage such selected
     persons to continue to provide services to the Company and to attract new
     individuals with outstanding qualifications.

     The Plan seeks to achieve this purpose by providing for Awards in the form
     of Stock Purchase Rights granting Restricted Stock and Options which may be
     Incentive Stock Options or Nonstatutory Stock Options.

     The Plan shall be governed by, and construed in accordance with, the laws
     of the State of California (except its choice-of-law provisions).
     Capitalized terms shall have the meaning provided in Section 2 unless
     otherwise provided in this Plan or the applicable Stock Option Agreement or
     Restricted Stock Agreement.

SECTION 2.        DEFINITIONS.

     (a)  "Affiliate" means any entity other than a Subsidiary, if the Company
     and/or one or more Subsidiaries own not less than 50% of such entity. For
     purposes of determining an individual's "Service," this definition shall
     include any entity other than a Subsidiary, if the Company, a Parent and/or
     one or more Subsidiaries own not less than 50% of such entity.

     (b)  "Award" means any award of an Option or Stock Purchase Right under the
     Plan.

     (c)  "Board" means the Board of Directors of the Company, as constituted
     from time to time.

     (d)  "Change In Control" except as may otherwise be provided in a Stock
     Option Agreement or Restricted Stock Agreement, means the occurrence of any
     of the following:

                (i)    The consummation of a merger or consolidation of the
          Company with or into another entity or any other corporate
          reorganization, if more than

<PAGE>

     50% of the combined voting power of the continuing or surviving entity's
     securities outstanding immediately after such merger, consolidation or
     other reorganization is owned by persons who were not stockholders of the
     Company immediately prior to such merger, consolidation or other
     reorganization;

          (ii)  The sale, transfer or other disposition of all or substantially
     all of the Company's assets;

          (iii) A change in the composition of the Board, as a result of which
     fewer that one-half of the incumbent directors are directors who either (i)
     had been directors of the Company on the date 24 months prior to the date
     of the event that may constitute a Change in Control (the "original
     directors") or (ii) were elected, or nominated for election, to the Board
     with the affirmative votes of at least a majority of the aggregate of the
     original directors who were still in office at the time of the election or
     nomination and the directors whose election or nomination was previously so
     approved;

          (iv)  Any transaction as a result of which any person becomes the
     "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
     directly or indirectly, of securities of the Company representing at least
     20% of the total voting power represented by the Company's then outstanding
     voting securities. For purposes of this Paragraph (iii), 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:

               (A) A trustee or other fiduciary holding securities under an
          employee benefit plan of the Company or a subsidiary of the Company;

               (B) A corporation owned directly or indirectly by the
          stockholders of the Company in substantially the same proportions as
          their ownership of the common stock of the Company; and

               (C) The Company; or

          (v)  A complete liquidation or dissolution of the Company.

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

(f)  "Committee" means a committee consisting of one or more members of the
      Board that is appointed by the Board (as described in Section 3) to
      administer the Plan.

(g)  "Common Stock" means the Company's common stock.

(h)  "Company" means IMPAC Medical Systems, Inc., a Delaware corporation.

(i)  "Consultant" means an individual who performs bona fide services to the
Company, a Parent, a Subsidiary or an Affiliate other than as an Employee or
Director or Non-Employee Director.

                                       2

<PAGE>

(j)  "Director" means a member of the Board who is also an Employee.

(k)  "Disability" means that the Key Employee is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or which has lasted
or can be expected to last for a continuous period of not less than 12 months.

(l)  "Employee" means any individual who is a common-law employee of the
Company, a Parent, a Subsidiary or an Affiliate.

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

(n)  "Exercise Price" means, in the case of an Option, the amount for which a
Share may be purchased upon exercise of such Option, as specified in the
applicable Stock Option Agreement.

(o)  "Fair Market Value" means the market price of Shares, determined by the
Committee as follows:

     (i)   If the Shares were traded on a stock exchange on the date in
question, then the Fair Market Value shall be equal to the last trading price
reported by the applicable composite transactions report for such date;

     (ii)  If the Shares were traded over-the-counter on the date in question
and were classified as a national market issue, then the Fair Market Value shall
be equal to the last trading price quoted by the NASDAQ system for such date;

     (iii) If the Shares were traded over-the-counter on the date in question
but were not classified as a national market issue, then the Fair Market Value
shall be equal to the mean between the last reported representative bid and
asked prices quoted by the NASDAQ system for such date; and

     (iv)  If none of the foregoing provisions is applicable, then the Fair
Market Value shall be determined by the Committee in good faith on such basis as
it deems appropriate.

Whenever possible, the determination of Fair Market Value by the Committee shall
be based on the prices reported in the Wall Street Journal. Such determination
                                       -------------------
shall be conclusive and binding on all persons.

(p)  "Grant" means any grant of an Award under the Plan.

(q)  "Incentive Stock Option" or "ISO" means an incentive stock option described
in Code section 422(b).

(r)  "Key Employee" means an Employee, Director, Non-Employee Director or
Consultant who has been selected by the Committee to receive an Award under the
Plan.

                                       3

<PAGE>

(s)     "Non-Employee Director" means a member of the Board who is not an
Employee.

(t)     "Nonstatutory Stock Option" or "NSO" means a stock option that is not an
ISO.

(u)     "Option" means an ISO or NSO granted under the Plan entitling the
Optionee to purchase Shares.

(v)     "Optionee" means an individual, estate or other entity that holds an
Option.

(w)     "Parent" means a "parent corporation," whether now or hereafter
existing, as defined in section 424(e) of the Code.

(x)     "Participant" means an individual or estate or other entity that holds
an Award.

(y)     "Plan" means this IMPAC Medical Systems, Inc. 2002 Stock Plan as it may
   be amended from time to time.

(z)     "Restricted Stock" means a Share awarded under the Plan pursuant to a
Stock Purchase Right.

(aa)    "Restricted Stock Agreement" means the agreement described in Section 8
evidencing Restricted Stock that may be purchased following the Award of a Stock
Purchase Right.

(bb)    "Securities Act" means the Securities Act of 1933, as amended.

(cc)    "Service" means service as an Employee, Director, Non-Employee Director
or Consultant.

(dd)    "Share" means one share of Common Stock.

(ee)    "Stock Option Agreement" means the agreement described in Section 6
evidencing each Grant of an Option.

(ff)    "Stock Purchase Right" means the right to acquire Restricted Stock
pursuant to Section 8.

(gg)    "Subsidiary" means a "subsidiary corporation," whether now or hereafter
existing, as defined in section 424(f) of the Code.

(hh)    "10-Percent Shareholder" means an individual who owns more than ten
percent (10%) of the total combined voting power of all classes of outstanding
stock of the Company, its Parent or any of its subsidiaries. In determining
stock ownership, the attribution rules of section 424(d) of the Code shall be
applied.

                                       4

<PAGE>

SECTION 3. ADMINISTRATION.

     (a)  Committee Composition. A Committee appointed by the Board shall
     administer the Plan. The Board shall designate one of the members of the
     Committee as chairperson. If no Committee has been approved, the entire
     Board shall constitute the Committee. Members of the Committee shall serve
     for such period of time as the Board may determine and shall be subject to
     removal by the Board at any time. The Board may also at any time terminate
     the functions of the Committee and reassume all powers and authority
     previously delegated to the Committee.

     With respect to officers or directors subject to section 16 of the Exchange
     Act, the Committee shall consist of those individuals who shall satisfy the
     requirements of Rule 16b-3 (or its successor) under the Exchange Act with
     respect to Awards granted to persons who are officers or directors of the
     Company under Section 16 of the Exchange Act. Notwithstanding the previous
     sentence, failure of the Committee to satisfy the requirements of Rule
     16b-3 shall not invalidate any Awards granted by such Committee.

     The Board may also appoint one or more separate committees of the Board,
     each composed of one or more directors of the Company who need not qualify
     under Rule 16b-3, who may administer the Plan with respect to Key Employees
     who are not considered officers or directors of the Company under Section
     16 of the Exchange Act, may grant Awards under the Plan to such Key
     Employees and may determine all terms of such Awards.

     Notwithstanding the foregoing, the Board shall constitute the Committee and
     shall administer the Plan with respect to all Awards granted to
     Non-Employee Directors.

     (b)  Authority of the Committee. Subject to the provisions of the Plan, the
     Committee shall have full authority and discretion to take any actions it
     deems necessary or advisable for the administration of the Plan. Such
     actions shall include:

          (i)   selecting Key Employees who are to receive Awards under the
                Plan;
          (ii)  determining the type, number, vesting requirements and other
                features and conditions of such Awards;
          (iii) interpreting the Plan; and
          (iv)  making all other decisions relating to the operation of the
                Plan.

     The Committee may adopt such rules or guidelines, as it deems appropriate
     to implement the Plan. The Committee's determinations under the Plan shall
     be final and binding on all persons.

     (c)  Indemnification. Each member of the Committee, or of the Board, shall
     be indemnified and held harmless by the Company against and from (i) any
     loss, cost, liability, or expense that may be imposed upon or reasonably
     incurred by him or her in connection with or resulting from any claim,
     action, suit, or proceeding to which he or she may be a party or in which
     he or she may be involved by reason of any action taken or failure to act
     under the Plan or any Stock Option Agreement or Restricted Stock Agreement,
     and (ii) from any and all amounts paid by him or her in settlement thereof,

                                       5

<PAGE>

     with the Company's approval, or paid by him or her in satisfaction of any
     judgment in any such claim, action, suit, or proceeding against him or her,
     provided he or she shall give the Company an opportunity, at its own
     expense, to handle and defend the same before he or she undertakes to
     handle and defend it on his or her own behalf. The foregoing right of
     indemnification shall not be exclusive of any other rights of
     indemnification to which such persons may be entitled under the Company's
     Certificate of Incorporation or Bylaws, by contract, as a matter of law, or
     otherwise, or under any power that the Company may have to indemnify them
     or hold them harmless.

SECTION 4.        ELIGIBILITY.

     (a)  General Rules. Only Employees, Directors, Non-Employee Directors and
     Consultants shall be eligible for designation as Key Employees by the
     Committee.

     (b)  Incentive Stock Options. Only Key Employees who are common-law
     employees of the Company, a Parent or a Subsidiary shall be eligible for
     the grant of ISOs. In addition, a Key Employee who is a 10-Percent
     Shareholder shall not be eligible for the grant of an ISO unless the
     requirements set forth in section 422(c)(5) of the Code are satisfied.

     (c)  Non-Employee Director Options. Non-Employee Directors shall also be
     eligible to receive Options as described in this Section 4(c) from and
     after the date the Board has determined to implement this provision.

          (i)   (A) Each eligible Non-Employee Director elected or appointed
     after the effective date of the Company's initial public offering shall
     automatically be granted an NSO to purchase 25,000 Shares (subject to
     adjustment under Section 9) as a result of his or her initial election or
     appointment as a Non-Employee Director. All NSOs granted pursuant to this
     Section 4(c)(i)(A) shall vest and become exercisable provided the
     individual is serving as a director of the Company as of the vesting date
     as follows: 25% one year from the date of grant, then in 36 equal monthly
     installments commencing on the date one month and one year after the date
     of grant. (B) Upon the conclusion of each regular annual meeting of the
     Company's stockholders following his or her initial appointment, each
     eligible Non-Employee Director who will continue serving as a member of the
     Board thereafter shall receive an NSO to purchase 5,000 Shares (subject to
     adjustment under Section 9). All NSOs granted pursuant to this Section
     4(c)(i)(B) shall be 100% vested and exercisable upon grant.

          (ii)  All NSOs granted to Non-Employee Directors under this Section
     4(c) shall become exercisable in full in the event of Change in Control
     with respect to the Company.

          (iii) The Exercise Price under all NSOs granted to a Non-Employee
     Director under this Section 4(c) shall be equal to one hundred percent
     (100%) of the Fair Market Value of a Share of Common Stock on the date of
     grant, payable in one of the forms described in Section 7.

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<PAGE>

                (iv)   All NSOs granted to a Non-Employee Director under this
     Section 4(c) shall terminate on the earlier of:

                       (A)   The 10th anniversary of the date of grant; or

                       (B)   The date ninety (90) days after the termination of
     such Non-Employee Director's Service for any reason.

SECTION 5. SHARES SUBJECT TO PLAN.

     (a)  Basic Limitation. The stock issuable under the Plan shall be
     authorized but unissued Shares or treasury Shares. The aggregate number of
     Shares reserved for Awards under the Plan shall not exceed 2,500,000 Shares
     plus the number of Shares available for grant under the Company's 1993
     Stock Option Plan and the Company's 1998 Stock Plan as of the IPO Date.

     (b)  Annual Addition. Beginning with the first fiscal year of the Company
     beginning after the Effective Date, on the first day of each fiscal year,
     Shares will be added to the Plan equal to the least of (i) three percent
     (3%) of the outstanding shares in the last day of the prior fiscal year, or
     (ii) such lesser number of Shares as may be determined by the Board in its
     sole discretion.

     (c)  Additional Shares. If Awards (including awards previously issued under
     the Company's 1993 Stock Option Plan and the 1998 Stock Plan) are forfeited
     or terminate for any other reason before being exercised, then the Shares
     underlying such Awards shall again become available for Awards under the
     Plan.

     (d)  Limits on Options. No Key Employee shall receive Options to purchase
     Shares during any fiscal year covering in excess of 1,000,000 Shares.
     Notwithstanding the foregoing limitation, a Key Employee may receive
     Options to purchase up to 1,500,000 Shares in the first year of a Key
     Employee's employment with Company.

     (e)  Limits on Stock Purchase Rights. No Key Employee shall receive an
     Award of Stock Purchase Rights during any fiscal year covering in excess of
     500,000 Shares. Notwithstanding the foregoing limitation, a Key Employee
     may receive an Award of up to 1,000,000 Shares in the first year of a Key
     Employee's employment with Company.

SECTION 6. TERMS AND CONDITIONS OF OPTIONS.

     (a)  Stock Option Agreement. Each Grant under the Plan shall be evidenced
     by a Stock Option Agreement between the Optionee and the Company. Such
     Option shall be subject to all applicable terms and conditions of the Plan
     and may be subject to any other terms and conditions that are not
     inconsistent with the Plan and that the Committee deems appropriate for
     inclusion in a Stock Option Agreement. The provisions of the various Stock
     Option Agreements entered into under the Plan need not be identical. A
     Stock Option Agreement may provide that new Options will be granted
     automatically to

                                        7

<PAGE>

     the Optionee when he or she exercises the prior Options. The Stock Option
     Agreement shall also specify whether the Option is an ISO or an NSO.

     (b)  Number of Shares. Each Stock Option Agreement shall specify the number
     of Shares that are subject to the Option and shall provide for the
     adjustment of such number in accordance with Section 9.

     (c)  Exercise Price. An Option's Exercise Price shall be established by the
     Committee and set forth in a Stock Option Agreement. The Exercise Price of
     an ISO shall not be less than 100% of the Fair Market Value (110% for
     10-Percent Shareholders) of a Share on the date of Grant. In the case of an
     NSO, a Stock Option Agreement may specify an Exercise Price that varies in
     accordance with a predetermined formula while the NSO is outstanding.

     (d)  Exercisability and Term. Each Stock Option Agreement shall specify the
     date when all or any installment of the Option is to become exercisable.
     The Stock Option Agreement shall also specify the term of the Option;
     provided that the term of an ISO shall in no event exceed ten (10) years
     from the date of Grant. An ISO that is granted to a 10-Percent Shareholder
     shall have a maximum term of five (5) years. No Option can be exercised
     after the expiration date provided in the applicable Stock Option
     Agreement. A Stock Option Agreement may provide for accelerated
     exercisability in the event of the Optionee's death, disability or
     retirement or other events and may provide for expiration prior to the end
     of its term in the event of the termination of the Optionee's service. A
     Stock Option Agreement may permit an Optionee to exercise an Option before
     it is vested, subject to the Company's right of repurchase over any Shares
     acquired under the unvested portion of the Option (an "early exercise"),
     which right of repurchase shall lapse at the same rate the Option would
     have vested had there been no early exercise. In no event shall the Company
     be required to issue fractional Shares upon the exercise of an Option.

     (e)  Modifications or Assumption of Options. Within the limitations of the
     Plan, the Committee may modify, extend or assume outstanding options or may
     accept the cancellation of outstanding options (whether granted by the
     Company or by another issuer) in return for the grant of new Options for
     the same or a different number of Shares and at the same or a different
     Exercise Price. The foregoing notwithstanding, no modification of an Option
     shall, without the consent of the Optionee, alter or impair his or her
     rights or obligations under such Option.

     (f)  Transferability of Options. Except as otherwise provided in the
     applicable Stock Option Agreement and then only to the extent permitted by
     applicable law, no Option shall be transferable by the Optionee other than
     by will or by the laws of descent and distribution. Except as otherwise
     provided in the applicable Stock Option Agreement, an Option may be
     exercised during the lifetime of the Optionee only or by the guardian or
     legal representative of the Optionee. No Option or interest therein may be
     assigned, pledged or hypothecated by the Optionee during his lifetime,
     whether by operation of law or otherwise, or be made subject to execution,
     attachment or similar process.

                                       8

<PAGE>

     (g)  Restrictions on Transfer. Any Shares issued upon exercise of an Option
     shall be subject to such rights of repurchase, rights of first refusal and
     other transfer restrictions as the Committee may determine. Such
     restrictions shall apply in addition to any restrictions that may apply to
     holders of Shares generally and shall also comply to the extent necessary
     with applicable law.

SECTION 7. PAYMENT FOR OPTION SHARES.

     (a)  General Rule. The entire Exercise Price of Shares issued upon exercise
     of Options shall be payable in cash at the time when such Shares are
     purchased, except as follows:

          (i)  In the case of an ISO granted under the Plan, payment shall be
     made only pursuant to the express provisions of the applicable Stock Option
     Agreement. The Stock Option Agreement may specify that payment may be made
     in any form(s) described in this Section 7.

          (ii) In the case of an NSO granted under the Plan, the Committee may
     in its discretion, at any time accept payment in any form(s) described in
     this Section 7.

     (b)  Surrender of Stock. To the extent that this Section 7(b) is
     applicable, payment for all or any part of the Exercise Price may be made
     with Shares which have already been owned by the Optionee for such duration
     as shall be specified by the Committee. Such Shares shall be valued at
     their Fair Market Value on the date when the new Shares are purchased under
     the Plan.

     (c)  Promissory Note. To the extent that this Section 7(c) is applicable,
     payment for all or any part of the Exercise Price may be made with a
     promissory note.

     (d)  Other Forms of Payment. To the extent that this Section 7(d) is
     applicable, payment may be made in any other form that is consistent with
     applicable laws, regulations and rules.

SECTION 8. TERMS AND CONDITIONS FOR AWARDS OF STOCK PURCHASE RIGHTS.

     (a)  Time, Amount and Form of Awards. Awards under this Section 8 may be
     granted in the form of Stock Purchase Rights pursuant to which Restricted
     Stock will be awarded to a Key Employee. Such Rights may also be awarded in
     combination with NSOs, and such an Award may provide that the Restricted
     Stock will be forfeited in the event that the related NSOs are exercised.

     (b)  Agreements. Each Award of a Stock Purchase Right under the Plan shall
     be evidenced by a Restricted Stock Agreement between the Participant and
     the Company. Such Awards shall be subject to all applicable terms and
     conditions of the Plan and may be subject to any other terms and conditions
     that are not inconsistent with the Plan and

                                       9

<PAGE>

     that the Committee deems appropriate for inclusion in the applicable
     Agreement. The provisions of the various Agreements entered into under the
     Plan need not be identical.

     (c)  Payment for Restricted Stock. Restricted Stock may be issued pursuant
     to the Award of a Stock Purchase Right with or without cash consideration
     under the Plan.

     (d)  Vesting Conditions. Each Award of Restricted Stock shall become
     vested, in full or in installments, upon satisfaction of the conditions
     specified in the applicable Agreement. An Agreement may provide for
     accelerated vesting in the event of the Participant's death, Disability or
     retirement or other events.

     (e)  Assignment or Transfer of Restricted Stock. Except as provided in
     Section 13, or in a Restricted Stock Agreement, or as required by
     applicable law, an Award granted under this Section 8 shall not be
     anticipated, assigned, attached, garnished, optioned, transferred or made
     subject to any creditor's process, whether voluntarily, involuntarily or by
     operation of law. Any act in violation of this Section 8(e) shall be void.
     However, this Section 8(e) shall not preclude a Participant from
     designating a beneficiary who will receive any outstanding Restricted Stock
     in the event of the Participant's death, nor shall it preclude a transfer
     of Restricted Stock by will or by the laws of descent and distribution.

     (f)  Trusts. Neither this Section 8 nor any other provision of the Plan
     shall preclude a Participant from transferring or assigning Restricted
     Stock to (i) the trustee of a trust that is revocable by such Participant
     alone, both at the time of the transfer or assignment and at all times
     thereafter prior to such Participant's death, or (ii) the trustee of any
     other trust to the extent approved in advance by the Committee in writing.
     A transfer or assignment of Restricted Stock from such trustee to any
     person other than such Participant shall be permitted only to the extent
     approved in advance by the Committee in writing, and Restricted Stock held
     by such trustee shall be subject to all of the conditions and restrictions
     set forth in the Plan and in the applicable Restricted Stock Agreement, as
     if such trustee were a party to such Agreement.

     (g)  Voting and Dividend Rights. The holders of Restricted Stock acquired
     pursuant to a Stock Purchase Right awarded under the Plan shall have the
     same voting, dividend and other rights as the Company's other stockholders.
     A Restricted Stock Agreement, however, may require that the holders of
     Restricted Stock invest any cash dividends received in additional
     Restricted Stock. Such additional Restricted Stock shall be subject to the
     same conditions and restrictions as the Award with respect to which the
     dividends were paid. Such additional Restricted Stock shall not reduce the
     number of Shares available under Section 5.

SECTION 9. PROTECTION AGAINST DILUTION.

     (a)  Adjustments. In the event of a subdivision of the outstanding Shares,
     a declaration of a dividend payable in Shares, a declaration of a dividend
     payable in a form other than Shares in an amount that has a material effect
     on the price of Shares, a combination or consolidation of the outstanding
     Shares (by reclassification or otherwise)

                                     10

<PAGE>

     into a lesser number of Shares, a recapitalization, reorganization, merger,
     liquidation, spin-off or a similar occurrence, the Committee shall make
     such adjustments as it, in its reasonable discretion, deems appropriate in
     order to prevent the dilution or enlargement of rights hereunder in one or
     more of:

         (i)   the number of Shares available for future Awards under Section
     5(a); the annual amount of increase under Section 5(b)(i); the per person
     Share limits under Sections 5(d) and (e); and the number of Shares subject
     to automatic Grants under Section 4(c);

         (ii)  the number of Shares covered by each outstanding Award; or

         (iii) the Exercise Price under each outstanding Option.

     Notwithstanding anything in this Plan to the contrary, no adjustment shall
     be made with respect to any stock split occurring prior to the IPO Date.

     (b) Participant Rights. Except as provided in this Section 9, a Participant
     shall have no rights by reason of any issue by the Company of stock of any
     class or securities convertible into stock of any class, any subdivision or
     consolidation of shares of stock of any class, the payment of any stock
     dividend or any other increase or decrease in the number of shares of stock
     of any class.

SECTION 10.       EFFECT OF A CHANGE IN CONTROL.

     (a) Merger or Reorganization. In the event that the Company is a party to a
     merger or other reorganization, outstanding Awards shall be subject to the
     agreement of merger or reorganization. Such agreement may provide, without
     limitation, for the assumption of outstanding Awards by the surviving
     corporation or its parent, for their continuation by the Company (if the
     Company is a surviving corporation), for accelerated vesting or for their
     cancellation with or without consideration.

     (b) Acceleration. The Committee may determine, at the time of granting an
     Award or thereafter, that such Award shall become fully exercisable as to
     all Shares subject to such Award in the event that a Change in Control
     occurs with respect to the Company.

SECTION 11.       LIMITATIONS ON RIGHTS.

     (a) Retention Rights. Neither the Plan nor any Award granted under the Plan
     shall be deemed to give any individual a right to remain an employee,
     consultant or director of the Company, a Parent, a Subsidiary or an
     Affiliate. The Company and its Parents and Subsidiaries and Affiliates
     reserve the right to terminate the Service of any person at any time, and
     for any reason, subject to applicable laws, the Company's Certificate of
     Incorporation and Bylaws and a written employment agreement (if any).

                                       11

<PAGE>

     (b) Stockholders' Rights. A Participant shall have no dividend rights,
     voting rights or other rights as a stockholder with respect to any Shares
     covered by his or her Award prior to the issuance of a stock certificate
     for such Shares. No adjustment shall be made for cash dividends or other
     rights for which the record date is prior to the date when such certificate
     is issued, except as expressly provided in Section 9.

     (c) Regulatory Requirements. Any other provision of the Plan
     notwithstanding, the obligation of the Company to issue Shares under the
     Plan shall be subject to all applicable laws, rules and regulations and
     such approval by any regulatory body as may be required. The Company
     reserves the right to restrict, in whole or in part, the delivery of Shares
     pursuant to any Award prior to the satisfaction of all legal requirements
     relating to the issuance of such Shares, to their registration,
     qualification or listing or to an exemption from registration,
     qualification or listing.

SECTION 12. WITHHOLDING TAXES.

     (a) General. A Participant shall make arrangements satisfactory to the
     Company for the satisfaction of any withholding tax obligations that arise
     in connection with his or her Award. The Company shall not be required to
     issue any Shares or make any cash payment under the Plan until such
     obligations are satisfied.

     (b) Share Withholding. If a public market for the Company's Shares exists,
     the Committee may permit a Participant to satisfy all or part of his or her
     withholding or income tax obligations by having the Company withhold all or
     a portion of any Shares that otherwise would be issued to him or her or by
     surrendering all or a portion of any Shares that he or she previously
     acquired. Such Shares shall be valued at their Fair Market Value on the
     date when taxes otherwise would be withheld in cash. In no event may the
     Company allow Shares to be withheld in an amount that exceeds the minimum
     statutory withholding rates for federal and state tax purposes, including
     payroll taxes. Any payment of taxes by assigning Shares to the Company may
     be subject to restrictions, including, but not limited to, any restrictions
     required by rules of the Securities and Exchange Commission.

SECTION 13. DURATION AND AMENDMENTS.

     (a) Term of the Plan. The Plan, as set forth herein, shall become effective
     on the IPO Date, subject to the approval of the Company's stockholders. No
     Options shall be exercisable until such stockholder approval is obtained.
     In the event that the stockholders fail to approve the Plan within twelve
     (12) months after its adoption by the Board, any Awards made shall be null
     and void and no additional Awards shall be made. The Plan shall terminate
     on the date that is ten (10) years after its Adoption Date and may be
     terminated on any earlier date pursuant to Section 13(b).

     (b) Right to Amend or Terminate the Plan. The Board may amend or terminate
     the Plan at any time and for any reason. The termination of the Plan, or
     any amendment thereof, shall not affect any Award previously granted under
     the Plan. No Awards shall

                                       12

<PAGE>

         be granted under the Plan after the Plan's termination. An amendment of
         the Plan shall be subject to the approval of the Company's stockholders
         only to the extent required by applicable laws, regulations or rules.

SECTION 14. EXECUTION.

         To record the adoption of the Plan by the Board, the Company has caused
         its duly authorized officer to execute this Plan on behalf of the
         Company.

                                       IMPAC Medical Systems, Inc.

                                       By ______________________________________

                                       Title ___________________________________

                                       13

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