Document:

CHANGE
      OF CONTROL AGREEMENT

    

    This
      Change of Control Agreement (the “Agreement”) is made and entered into effective
      as of ______________, by and between ______________ (the “Employee”) and RITA
      Medical Systems, Inc., a Delaware corporation (the “Company”).

    

    R
      E C I T
      A L S

    

    A. It
      is
      understood that another company or other entity may from time to time consider
      the possibility of acquiring the Company or that a change in control may
      otherwise occur, with or without the approval of the Company’s Board of
      Directors (the “Board”). The Board has identified the Employee, an officer of
      the Company, as a key employee whose continued employment with the Company
      is
      critical to the Company’s future success and has determined that it is important
      to provide Employee with an incentive to continue his or her employment with
      the
      Company in the event that the Company consummates a Change of Control
      transaction. For purposes of this Agreement, this shall include Employee’s
      employment in a majority-owned subsidiary or other surviving entity of an
      acquiring Company.

    

    B. To
      accomplish the foregoing objectives, the Board of Directors has directed the
      Company, upon execution of this Agreement by the Employee, to agree to the
      terms
      provided in this Agreement.

    

    C. The
      Board
      believes that it is imperative to provide the Employee with certain benefits
      upon a Change of Control and, under certain circumstances, upon termination
      of
      the Employee’s employment in connection with a Change of Control, which benefits
      are intended to provide the Employee with financial security and provide
      sufficient income and encourage-ment to the Employee to remain with the Company
      notwithstanding the possibility of a Change of Control.

    

    D. To
      accomplish the foregoing objectives, the Board of Directors has directed the
      Company, upon execution of this Agreement by the Employee, to agree to the
      terms
      provided in this Agreement.

    

    E. Certain
      capitalized terms used in the Agreement are defined in Section 3
      below.

    

    In
      consideration of the mutual covenants contained in this Agreement, and in
      consideration of the continuing employment of Employee by the Company, the
      parties agree as follows:

    

    1. At-Will
      Employment.
      The
      Company and the Employee acknowledge that the Employee’s employment is and shall
      continue to be at-will, as defined under applicable law. If the Employee’s
      employment terminates for any reason, more than two months prior to a Change
      of
      Control, the Employee shall not be entitled to any payments or benefits, other
      than as provided by this Agreement, or as may otherwise be available in
      accordance with the terms of the Company’s established employee plans and
      written policies at the time of termination. The terms of this Agreement shall
      terminate upon the earlier of (i) the date on which Employee ceases to be
      employed as an officer of the Company, other than as a result of an involuntary
      termination by the Company without Cause, (ii) the date that all
      obligations of the parties hereunder have been satisfied, or (iii) fourteen
      (14) months after a Change of Control. A termination of the terms of this
      Agreement pursuant to the preceding sentence shall be effective for all
      purposes, except that such termination shall not affect the payment or provision
      of compensation or benefits on account of a termination of employment occurring
      prior to the termination of the terms of this Agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    2. Change
      of Control.

    

    (a) Cash
      Severance and Other Benefits.
      In the
      event of Employee’s Involuntary Termination (as defined below) within two months
      prior to or twelve (12) months after the Change of Control, the provisions
      of
      this Section 2(a) shall apply.

    

    (1) Cash
      Severance Amount.
      Employee shall be paid promptly after such Involuntary Termination a lump sum
      Cash Severance Amount, as determined below and as reduced for applicable state,
      federal and other income, employment or other required taxes. The Cash Severance
      amount shall be the Employee’s Annual Target Compensation multiplied by a
      fraction, the numerator of which is eighteen (18) and denominator of which
      is
      twelve (12). Annual Target Compensation shall be (i) the greater of the
      Employee’s annual base salary on the date of the Involuntary Termination or the
      date of the Change of Control, plus (ii) all potential annual target bonuses
      or
      annual target commissions (as if earned at 100% attainment) under bonus or
      commission plans for which Employee was eligible and participating as of the
      date of the Involuntary Termination or Change of Control, whichever results
      in
      the greater amount. For clarity, the special 2006 Product Milestone Bonus shall
      not be considered to a part of the Annual Target Compensation. Notwithstanding
      the foregoing, to the extent required because the Employee is a “key employee”
within the meaning of Section 409A of the Internal Revenue Code of (1986)
      (“Code”), no payment hereunder may be made until six months after the date of
      the termination.

    

    (2) Earned
      but Unpaid Bonus
      or Commission Amounts.
      The
      Employee shall also be entitled to receive all previously earned but unpaid
      bonuses or commissions applicable to periods prior to the Change of Control
      based on the actual attainment metrics and payment terms as specified in the
      bonus or commission plans to the extent not previously paid, less applicable
      state, federal or other income, employment or other taxes.

    

    (3) Health
      and Life Coverage.
      The
      Employee’s Company sponsored health insurance (and that of any covered
      dependents) shall be continued on the same terms applicable prior to termination
      for the number of months covered by the cash severance above or until coverage
      is provided by Employee’s new employer if earlier. Continuation coverage rights,
      if any, under federal “COBRA” provisions shall commence when coverage hereunder
      expires. Company sponsored life insurance shall continue for twelve (12) months
      following termination unless comparable coverage is provided by Employee’s new
      employer.

    

    
      
        
        

      

      
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    (b) Stock
      Options and Restricted Stock.

    

    (1)
      Acceleration
      Upon a Change of Control. In
      the
      event of a Change of Control, on the effective date of the transaction, fifty
      percent (50%) of all unvested options to purchase the Company’s securities held
      by the Employee (the “Option”) prior to the effective date of the Change of
      Control transaction shall become fully vested and immediately exercisable and
      shall remain exercisable as specified in Section (2)(b)(2)(ii) of this
      Agreement, and repurchase rights of the Company with respect to fifty percent
      (50%) of the shares of restricted stock held by the Employee purchased by the
      Employee pursuant to the terms of a Stock Purchase Agreement shall immediately
      lapse. In addition, unless the vesting schedule in the original grant document
      or offer letter would provide for faster vesting, on each one month anniversary
      of the effective date of the Change of Control transaction 1/12 of all remaining
      unvested options held by the Employee shall become fully vested and immediately
      exercisable and shall remain exercisable as specified in Section (2)(b)(2)(ii)
      of this Agreement, and repurchase rights of the Company with respect to 1/12
      of
      all remaining shares of restricted stock held by Employee shall
      lapse.

    

    (2) Termination
      in Connection with a Change of Control.
      In the
      event of an Involuntary Termination of Employee at any time within two months
      prior to or twelve (12) months after a Change of Control all unvested options
      held by the Employee shall become fully vested and immediately exercisable
      and
      shall remain exercisable as specified in Section (2)(b)(2)(ii) of this
      Agreement, and repurchase rights of the Company with respect to all of the
      shares of restricted stock held by the Employee purchased by the Employee
      pursuant to the terms of a Stock Purchase Agreement shall immediately
      lapse.

    

    (i) Voluntary
      Resignation and Termination for Cause.
      If the
      Employee voluntarily resigns from the Company under circumstances which do
      not
      constitute an Involuntary Termination within two (2) months prior to a Change
      of
      Control or within twelve (12) months after a Change of Control , or is
      terminated for Cause, then the Employee shall not be entitled to any
      acceleration of the vesting of his or her unvested options or lapse of
      repurchase rights with respect to his or her restricted stock.

    

    (ii) Time
      of Exercise.
      Unless
      a longer period is provided for in the option agreement or new hire offer letter
      between the Employee and the Company with respect to an Option, in the event
      of
      the Employee’s termination of employment for any reason within two months prior
      to or twelve (12) months after
      a
      Change of Control, the Employee shall be entitled to exercise (A) consistent
      with the requirements of Section 409A of the Code and provided this provision
      does not result in a material compensation charge to the Company’s financial
      statements (as determined by the Company’s audit committee), all outstanding
      Options granted prior to _[insert
      date of this Agreement]___
      ___,
      2006 to the extent they are vested (including after giving effect to any
      acceleration of vesting under this Agreement or the option agreement or new
      hire
      offer letter) for a period equal to the longer of (x) the fifteenth day of
      the
      third month following the date on which the Option would have expired by its
      original terms or (y) the remainder of the calendar year in which the Option
      would have expired under its original terms and (b) outstanding Options granted
      after __[insert
      date of this Agreement]__
      ___,
      2006 to the extent they are vested (including after giving effect to any
      acceleration of vesting under this Agreement or the option agreement or new
      hire
      offer letter) during the twelve (12) months following termination. In
      no
      event may an Option be exercised later than the expiration date of the term
      of
      such Option as set forth in the option agreement for such Option.

    

    
      
        
        

      

      
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    3. Definition
      of Terms.
      The
      following terms referred to in this Agreement shall have the following
      meanings:

    

    (a) Change
      of Control.
“Change
      of Control” shall mean the consummation of any of the following
      events:

    

    (i) Ownership.
      Any
“Person” (as such term is used in Sections 13(d) and 14(d) of the Securities
      Exchange Act of 1934, as amended) is or becomes the “Beneficial Owner” (as
      defined in Rule 13d-3 under said Act), directly or indirectly, of securities
      of
      the Company representing fifty percent (50%) or more of the total voting power
      represented by the Company’s then outstanding voting securities without
      the
      approval of the Board of Directors of the Company; or

    

    (ii) Merger/Sale
      of Assets.
      A
      merger or consolidation of the Company whether or not approved by the Board
      of
      Directors of the Company, other than a merger or consolidation which would
      result in the voting securities of the Company outstanding immediately prior
      thereto continuing to represent (either by remaining outstanding or by being
      converted into voting securities of the surviving entity) at least fifty percent
      (50%) of the total voting power represented by the voting securities of the
      Company or such surviving entity outstanding immediately after such merger
      or
      consolidation, or the stockholders of the Company approve a plan of complete
      liquidation of the Company or an agreement for the sale or disposition by the
      Company of all or substantially all of the Company’s assets.

    

    (b) Cause.
“Cause”
      shall mean (i) gross negligence or willful misconduct in the performance of
      the Employee’s duties to the Company where such gross negligence or willful
      misconduct has resulted or is likely to result in substantial and material
      damage to the Company or its subsidiaries, (ii) repeated unexplained or
      unjustified absence from the Company, (iii) a material and willful
      violation of any federal or state law; (iv) commission of any act of fraud
      with respect to the Company; or (v) conviction of a felony or a crime
      involving moral turpitude causing material harm to the standing and reputation
      of the Company, in each case as determined in good faith by the Board of
      Directors of the Company.

    

    (c) Involuntary
      Termination.
      “Involuntary Termination” shall include any termination by the Company other
      than for Cause and shall also include the Employee’s voluntary termination for
“Good Reason” upon 30 days prior written notice to the Company by the Employee.
      Good Reason shall exist in the event of (i) any material reduction in the
      Employee’s duties or responsibilities; (ii) any
      change in the Employee’s title (with respect to the combined entity and not just
      with respect to a merger subsidiary or division) to a title of a less senior
      officer; (iii) a
      change
      in reporting structure such that the Employee reports to an individual with
      a
      title (with respect to the combined entity and not just with respect to a merger
      subsidiary or division) that is less senior than that of the person to whom
      the
      Employee reported prior to the Change of Control; (iv) any reduction of the
      Employee’s base and cash bonus compensation ; or (v) the Employee’s refusal to
      relocate to a location more than 25 miles from the Company’s current location.
      Employee does not need to actually terminate employment with the Company to
      be
      entitled to payments and benefits hereunder in connection with a Good Reason
      based Involuntary Termination, but the Employee may at his or her sole
      discretion terminate employment in connection with an Involuntary Termination
      in
      connection with a Good Reason. For clarity, so long as the events giving rise
      to
      Good Reason occur within twelve (12) months of the Change of Control and the
      Employee gives the Company at least 30 days notice of such events before
      Employee terminates employment, such termination may occur more than twelve
      (12)
      months after a Change of Control. However, solely in order to terminate more
      than twelve (12) months following a Change of Control for Good Reason pursuant
      to the above, the Employee’s written notice must be received by the Company
      within 60 days of the events giving rise to Good Reason. 

    

    
      
        
        

      

      
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    4. 280G
      Payments.
      

    

    (a) In
      the
      event that the severance benefits provided for in this Agreement (the “Total
      Payments”) constitute “Parachute Payments” within the meaning of Code
      Section 280G , the excess of the Parachute Payments over three times the
      five year average of compensation as computed under Code Section 280G (such
      excess is referred to as the “280G Excess”) is greater than one hundred thousand
      dollars ($100,000) (the “Valley”) and the Employee is subject to the excise tax
      imposed by Section 4999 of the Code (the “Excise Tax”), then the Company
      shall pay to the Employee an additional amount or amounts (the “Gross-Up
      Payment”) such that the net amount retained by the Employee, after deduction of
      any Excise Tax on the Total Payments and any federal, state and local income
      and
      employment taxes and the Excise Tax upon the Gross-Up Payment, shall be equal
      to
      the Total Payments. If the 280G Excess is less than the Valley, the Employee
      may
      elect to either have the amount of Employee’s payments and benefits hereunder
      reduced to the point no Excise Tax is due or may receive all benefits hereunder
      and pay the Excise Tax without the benefit of any Gross-Up Payment from the
      Company. Unless the Company and the Employee otherwise agree in writing, any
      determination required under this Section 4 shall be made in writing
      by the
      Company’s independent tax advisors (the “Accountants”), whose determination
      shall be conclusive and binding upon the Employee and the Company for all
      purposes. For purposes of making the calculations required by this
      Section 4, the Accountants may make reasonable assumptions and
      approximations concerning applicable taxes and may rely on reasonable, good
      faith interpretations concerning the application of Section 280G and 4999
      of the Code. The Company and the Employee shall furnish to the Accountants
      such
      information and documents as the Accountants may reasonably request in order
      to
      make a determination under this Section. The Company shall bear all costs the
      Accountants may reasonably incur in connection with any calculations
      contemplated by this Section 4, including by reason of any state, federal
      or other government audit of such calculations.

    

    (b) The
      payment of severance benefits provided for in this Agreement shall be subject
      to
      all applicable income, employment and social tax rules and
      regulations.

    

    
      
        
        

      

      
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    5. Successors.
      Any
      successor to the Company (whether direct or indirect and whether by purchase,
      lease, merger, consolidation, liquidation or otherwise) to all or substantially
      all of the Company’s business and/or assets shall assume the obligations under
      this Agreement and agree expressly to perform the obligations under this
      Agreement in the same manner and to the same extent as the Company would be
      required to perform such obligations in the absence of a succession. The terms
      of this Agreement and all of the Employee’s rights hereunder shall inure to the
      benefit of, and be enforceable by, the Employee’s personal or legal
      representatives, executors, administrators, successors, heirs, distributees,
      devisees and legatees.

    

    6. Notice.
      Notices
      and all other communications contemplated by this Agreement shall be in writing
      and shall be deemed to have been duly given when personally delivered or when
      mailed by U.S. registered or certified mail, return receipt requested and
      postage prepaid. Mailed notices to the Employee shall be addressed to the
      Employee at the home address which the Employee most recently communicated
      to
      the Company in writing. In the case of the Company, mailed notices shall be
      addressed to its corporate headquarters, and all notices shall be directed
      to
      the attention of its Secretary.

    

    7. Miscellaneous
      Provisions.

    

    (a) No
      Duty to Mitigate.
      The
      Employee shall not be required to mitigate the amount of any payment
      contemplated by this Agreement (whether by seeking new employment or in any
      other manner), nor, except as otherwise provided in this Agreement, shall any
      such payment be reduced by any earnings that the Employee may receive from
      any
      other source.

    

    (b) Waiver.
      No
      provision of this Agreement shall be modified, waived or discharged unless
      the
      modification, waiver or discharge is agreed to in writing and signed by the
      Employee and by an authorized officer of the Company (other than the Employee).
      No waiver by either party of any breach of, or of compliance with, any condition
      or provision of this Agreement by the other party shall be considered a waiver
      of any other condition or provision or of the same condition or provision at
      another time.

    

    (c) Whole
      Agreement.
      No
      agreements, representations or understandings (whether oral or written and
      whether express or implied) which are not expressly set forth in this Agreement
      have been made or entered into by either party with respect to the subject
      matter hereof. This Agreement supersedes the Change in Control sections of
      any
      agreement, including any offer letter, prior Change in Control agreements,
      employment agreement, option grant document, etc. concerning the payments and
      benefits in a Change of Control as provided by this Agreement, dated prior
      to
      the date of this Agreement, and by execution of this Agreement both parties
      agree that any such predecessor agreement shall be deemed null and void.
      Notwithstanding the foregoing, in the event the Employee’s new hire offer letter
      specifies a longer period to exercise options in the event of a Change of
      Control than is specified in Section (2)(b)(2)(ii) of this Agreement, the period
      specified in the offer letter shall be used. Further, the portions of the
      Employee’s new hire offer letter related to any severance benefits related to a
      termination not in connection with a Change in Control shall remain in full
      effect and are not superseded by this Agreement.

    

    
      
        
        

      

      
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    (d) Choice
      of Law.
      The
      validity, interpretation, construction and performance of this Agreement shall
      be governed by the laws of the State of California without reference to conflict
      of laws provisions.

    

    (e) Severability.
      If any
      term or provision of this Agreement or the application thereof to any
      circumstance shall, in any jurisdiction and to any extent, be invalid or
      unenforceable, such term or provision shall be ineffective as to such
      jurisdiction to the extent of such invalidity or unenforceability without
      invalidating or rendering unenforceable the remaining terms and provisions
      of
      this Agreement or the application of such terms and provisions to circumstances
      other than those as to which it is held invalid or unenforceable, and a suitable
      and equitable term or provision shall be substituted therefore to carry out,
      insofar as may be valid and enforceable, the intent and purpose of the invalid
      or unenforceable term or provision.

    

    (f) Arbitration.
      Any
      dispute or controversy arising under or in connection with this Agreement may
      be
      settled at the option of either party by binding arbitration in the County
      of
      Santa Clara, California, in accordance with the rules of the American
      Arbitration Association then in effect. Judgment may be entered on the
      arbitrator’s award in any court having jurisdiction. Punitive damages shall not
      be awarded.

    

    (g) Legal
      Fees and Expenses.
      The
      parties shall each bear their own expenses, legal fees and other fees incurred
      in connection with this Agreement.

    

    (h) No
      Assignment of Benefits.
      The
      rights of any person to payments or benefits under this Agreement shall not
      be
      made subject to option or assignment, either by voluntary or involuntary
      assignment or by operation of law, including (without limitation) bankruptcy,
      garnishment, attachment or other creditor’s process, and any action in violation
      of this subsection (h) shall be void.

    

    (i) Employment
      Taxes.
      All
      payments made pursuant to this Agreement will be subject to withholding of
      applicable income and employment taxes.

    

    (j) Assignment
      by the Company.
      The
      Company may assign its rights under this Agreement to an affiliate, and an
      affiliate may assign its rights under this Agreement to another affiliate of
      the
      Company or to the Company; provided, however, that no assignment shall be made
      if the net worth of the assignee is less than the net worth of the Company
      at
      the time of assignment. In the case of any such assignment, the term “Company”
when used in a section of this Agreement shall mean the corporation that
      actually employs the Employee.

    

    (k) Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original, but all of which together will constitute one and the same
      instrument.

    
 

    (SIGNATURE
      PAGE FOLLOWS)

    
       

      
        
        

      

      
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    IN
      WITNESS WHEREOF, each of the parties has executed this Agreement, in the case
      of
      the Company by its duly authorized officer, as of the day and year first above
      written.

    

    
      	
              RITA MEDICAL SYSTEMS, INC.

               

               

              
                By:
                  __________________________

                 

                Title:
                  _________________________

              

            	
              NAME:

               

               

              ______________________________

            

    

    

    

    
      
        
        

      

      
        -8-CHANGE
      OF CONTROL AGREEMENT

    

    This
      Change of Control Agreement (the “Agreement”) is made and entered into effective
      as of ______________, by and between ______________ (the “Employee”) and RITA
      Medical Systems, Inc., a Delaware corporation (the “Company”).

    

    R
      E C I T
      A L S

    

    A. It
      is
      understood that another company or other entity may from time to time consider
      the possibility of acquiring the Company or that a change in control may
      otherwise occur, with or without the approval of the Company’s Board of
      Directors (the “Board”). The Board has identified the Employee, an officer of
      the Company, as a key employee whose continued employment with the Company
      is
      critical to the Company’s future success and has determined that it is important
      to provide Employee with an incentive to continue his or her employment with
      the
      Company in the event that the Company consummates a Change of Control
      transaction. For purposes of this Agreement, this shall include Employee’s
      employment in a majority-owned subsidiary or other surviving entity of an
      acquiring Company.

    

    B. To
      accomplish the foregoing objectives, the Board of Directors has directed the
      Company, upon execution of this Agreement by the Employee, to agree to the
      terms
      provided in this Agreement.

    

    C. The
      Board
      believes that it is imperative to provide the Employee with certain benefits
      upon a Change of Control and, under certain circumstances, upon termination
      of
      the Employee’s employment in connection with a Change of Control, which benefits
      are intended to provide the Employee with financial security and provide
      sufficient income and encourage-ment to the Employee to remain with the Company
      notwithstanding the possibility of a Change of Control.

    

    D. To
      accomplish the foregoing objectives, the Board of Directors has directed the
      Company, upon execution of this Agreement by the Employee, to agree to the
      terms
      provided in this Agreement.

    

    E. Certain
      capitalized terms used in the Agreement are defined in Section 3
      below.

    

    In
      consideration of the mutual covenants contained in this Agreement, and in
      consideration of the continuing employment of Employee by the Company, the
      parties agree as follows:

    

    1. At-Will
      Employment.
      The
      Company and the Employee acknowledge that the Employee’s employment is and shall
      continue to be at-will, as defined under applicable law. If the Employee’s
      employment terminates for any reason, more than two months prior to a Change
      of
      Control, the Employee shall not be entitled to any payments or benefits, other
      than as provided by this Agreement, or as may otherwise be available in
      accordance with the terms of the Company’s established employee plans and
      written policies at the time of termination. The terms of this Agreement shall
      terminate upon the earlier of (i) the date on which Employee ceases to be
      employed as an officer of the Company, other than as a result of an involuntary
      termination by the Company without Cause, (ii) the date that all
      obligations of the parties hereunder have been satisfied, or (iii) fourteen
      (14) months after a Change of Control. A termination of the terms of this
      Agreement pursuant to the preceding sentence shall be effective for all
      purposes, except that such termination shall not affect the payment or provision
      of compensation or benefits on account of a termination of employment occurring
      prior to the termination of the terms of this Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    2. Change
      of Control.

    

    (a) Cash
      Severance and Other Benefits.
      In the
      event of Employee’s Involuntary Termination (as defined below) within two months
      prior to or twelve (12) months after the Change of Control, the provisions
      of
      this Section 2(a) shall apply.

    

    (1) Cash
      Severance Amount.
      Employee shall be paid promptly after such Involuntary Termination a lump sum
      Cash Severance Amount, as determined below and as reduced for applicable state,
      federal and other income, employment or other required taxes. The Cash Severance
      amount shall be the Employee’s Annual Target Compensation multiplied by a
      fraction, the numerator of which is twelve (12) and denominator of which is
      twelve (12). Annual Target Compensation shall be (i) the greater of the
      Employee’s annual base salary on the date of the Involuntary Termination or the
      date of the Change of Control, plus (ii) all potential annual target bonuses
      or
      annual target commissions (as if earned at 100% attainment) under bonus or
      commission plans for which Employee was eligible and participating as of the
      date of the Involuntary Termination or Change of Control, whichever results
      in
      the greater amount. For clarity, the special 2006 Product Milestone Bonus shall
      not be considered to a part of the Annual Target Compensation. Notwithstanding
      the foregoing, to the extent required because the Employee is a “key employee”
within the meaning of Section 409A of the Internal Revenue Code of (1986)
      (“Code”), no payment hereunder may be made until six months after the date of
      the termination.

    

    (2) Earned
      but Unpaid Bonus
      or Commission Amounts.
      The
      Employee shall also be entitled to receive all previously earned but unpaid
      bonuses or commissions applicable to periods prior to the Change of Control
      based on the actual attainment metrics and payment terms as specified in the
      bonus or commission plans to the extent not previously paid, less applicable
      state, federal or other income, employment or other taxes.

    

    (3) Health
      and Life Coverage.
      The
      Employee’s Company sponsored health insurance (and that of any covered
      dependents) shall be continued on the same terms applicable prior to termination
      for the number of months covered by the cash severance above or until coverage
      is provided by Employee’s new employer if earlier. Continuation coverage rights,
      if any, under federal “COBRA” provisions shall commence when coverage hereunder
      expires. Company sponsored life insurance shall continue for twelve (12) months
      following termination unless comparable coverage is provided by Employee’s new
      employer.

    

    
      
         

      

      
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    (b) Stock
      Options and Restricted Stock.

    

    (1)
      Acceleration
      Upon a Change of Control. In
      the
      event of a Change of Control, on the effective date of the transaction, fifty
      percent (50%) of all unvested options to purchase the Company’s securities held
      by the Employee (the “Option”) prior to the effective date of the Change of
      Control transaction shall become fully vested and immediately exercisable and
      shall remain exercisable as specified in Section (2)(b)(2)(ii) of this
      Agreement, and repurchase rights of the Company with respect to fifty percent
      (50%) of the shares of restricted stock held by the Employee purchased by the
      Employee pursuant to the terms of a Stock Purchase Agreement shall immediately
      lapse. In addition, unless the vesting schedule in the original grant document
      or offer letter would provide for faster vesting, on each one month anniversary
      of the effective date of the Change of Control transaction 1/12 of all remaining
      unvested options held by the Employee shall become fully vested and immediately
      exercisable and shall remain exercisable as specified in Section (2)(b)(2)(ii)
      of this Agreement, and repurchase rights of the Company with respect to 1/12
      of
      all remaining shares of restricted stock held by Employee shall
      lapse.

    

    (2) Termination
      in Connection with a Change of Control.
      In the
      event of an Involuntary Termination of Employee at any time within two months
      prior to or twelve (12) months after a Change of Control all unvested options
      held by the Employee shall become fully vested and immediately exercisable
      and
      shall remain exercisable as specified in Section (2)(b)(2)(ii) of this
      Agreement, and repurchase rights of the Company with respect to all of the
      shares of restricted stock held by the Employee purchased by the Employee
      pursuant to the terms of a Stock Purchase Agreement shall immediately
      lapse.

    

    (i) Voluntary
      Resignation and Termination for Cause.
      If the
      Employee voluntarily resigns from the Company under circumstances which do
      not
      constitute an Involuntary Termination within two (2) months prior to a Change
      of
      Control or within twelve (12) months after a Change of Control , or is
      terminated for Cause, then the Employee shall not be entitled to any
      acceleration of the vesting of his or her unvested options or lapse of
      repurchase rights with respect to his or her restricted stock.

    

    (ii) Time
      of Exercise.
      Unless
      a longer period is provided for in the option agreement or new hire offer letter
      between the Employee and the Company with respect to an Option, in the event
      of
      the Employee’s termination of employment for any reason within two months prior
      to or twelve (12) months after
      a
      Change of Control, the Employee shall be entitled to exercise (A) consistent
      with the requirements of Section 409A of the Code and provided this provision
      does not result in a material compensation charge to the Company’s financial
      statements (as determined by the Company’s audit committee), all outstanding
      Options granted prior to _[insert
      date of this Agreement]___
      ___,
      2006 to the extent they are vested (including after giving effect to any
      acceleration of vesting under this Agreement or the option agreement or new
      hire
      offer letter) for a period equal to the longer of (x) the fifteenth day of
      the
      third month following the date on which the Option would have expired by its
      original terms or (y) the remainder of the calendar year in which the Option
      would have expired under its original terms and (b) outstanding Options granted
      after __[insert
      date of this Agreement]__
      ___,
      2006 to the extent they are vested (including after giving effect to any
      acceleration of vesting under this Agreement or the option agreement or new
      hire
      offer letter) during the twelve (12) months following termination. In
      no
      event may an Option be exercised later than the expiration date of the term
      of
      such Option as set forth in the option agreement for such Option.

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

       

    

    3. Definition
      of Terms.
      The
      following terms referred to in this Agreement shall have the following
      meanings:

    

    (a) Change
      of Control.
“Change
      of Control” shall mean the consummation of any of the following
      events:

    

    (i) Ownership.
      Any
“Person” (as such term is used in Sections 13(d) and 14(d) of the Securities
      Exchange Act of 1934, as amended) is or becomes the “Beneficial Owner” (as
      defined in Rule 13d-3 under said Act), directly or indirectly, of securities
      of
      the Company representing fifty percent (50%) or more of the total voting power
      represented by the Company’s then outstanding voting securities without
      the
      approval of the Board of Directors of the Company; or

    

    (ii) Merger/Sale
      of Assets.
      A
      merger or consolidation of the Company whether or not approved by the Board
      of
      Directors of the Company, other than a merger or consolidation which would
      result in the voting securities of the Company outstanding immediately prior
      thereto continuing to represent (either by remaining outstanding or by being
      converted into voting securities of the surviving entity) at least fifty percent
      (50%) of the total voting power represented by the voting securities of the
      Company or such surviving entity outstanding immediately after such merger
      or
      consolidation, or the stockholders of the Company approve a plan of complete
      liquidation of the Company or an agreement for the sale or disposition by the
      Company of all or substantially all of the Company’s assets.

    

    (b) Cause.
“Cause”
      shall mean (i) gross negligence or willful misconduct in the performance of
      the Employee’s duties to the Company where such gross negligence or willful
      misconduct has resulted or is likely to result in substantial and material
      damage to the Company or its subsidiaries, (ii) repeated unexplained or
      unjustified absence from the Company, (iii) a material and willful
      violation of any federal or state law; (iv) commission of any act of fraud
      with respect to the Company; or (v) conviction of a felony or a crime
      involving moral turpitude causing material harm to the standing and reputation
      of the Company, in each case as determined in good faith by the Board of
      Directors of the Company.

    

    (c) Involuntary
      Termination.
      “Involuntary Termination” shall include any termination by the Company other
      than for Cause and shall also include the Employee’s voluntary termination for
“Good Reason” upon 30 days prior written notice to the Company by the Employee.
      Good Reason shall exist in the event of (i) any material reduction in the
      Employee’s duties or responsibilities; (ii) any
      change in the Employee’s title (with respect to the combined entity and not just
      with respect to a merger subsidiary or division) to a title of a less senior
      officer; (iii) a
      change
      in reporting structure such that the Employee reports to an individual with
      a
      title (with respect to the combined entity and not just with respect to a merger
      subsidiary or division) that is less senior than that of the person to whom
      the
      Employee reported prior to the Change of Control; (iv) any reduction of the
      Employee’s base and cash bonus compensation ; or (v) the Employee’s refusal to
      relocate to a location more than 25 miles from the Company’s current location.
      Employee does not need to actually terminate employment with the Company to
      be
      entitled to payments and benefits hereunder in connection with a Good Reason
      based Involuntary Termination, but the Employee may at his or her sole
      discretion terminate employment in connection with an Involuntary Termination
      in
      connection with a Good Reason. For clarity, so long as the events giving rise
      to
      Good Reason occur within twelve (12) months of the Change of Control and the
      Employee gives the Company at least 30 days notice of such events before
      Employee terminates employment, such termination may occur more than twelve
      (12)
      months after a Change of Control. However, solely in order to terminate more
      than twelve (12) months following a Change of Control for Good Reason pursuant
      to the above, the Employee’s written notice must be received by the Company
      within 60 days of the events giving rise to Good Reason. 

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    

    4. 280G
      Payments.
      

    

    (a) In
      the
      event that the severance benefits provided for in this Agreement (the “Total
      Payments”) constitute “Parachute Payments” within the meaning of Code
      Section 280G , the excess of the Parachute Payments over three times the
      five year average of compensation as computed under Code Section 280G (such
      excess is referred to as the “280G Excess”) is greater than one hundred thousand
      dollars ($100,000) (the “Valley”) and the Employee is subject to the excise tax
      imposed by Section 4999 of the Code (the “Excise Tax”), then the Company
      shall pay to the Employee an additional amount or amounts (the “Gross-Up
      Payment”) such that the net amount retained by the Employee, after deduction of
      any Excise Tax on the Total Payments and any federal, state and local income
      and
      employment taxes and the Excise Tax upon the Gross-Up Payment, shall be equal
      to
      the Total Payments. If the 280G Excess is less than the Valley, the Employee
      may
      elect to either have the amount of Employee’s payments and benefits hereunder
      reduced to the point no Excise Tax is due or may receive all benefits hereunder
      and pay the Excise Tax without the benefit of any Gross-Up Payment from the
      Company. Unless the Company and the Employee otherwise agree in writing, any
      determination required under this Section 4 shall be made in writing
      by the
      Company’s independent tax advisors (the “Accountants”), whose determination
      shall be conclusive and binding upon the Employee and the Company for all
      purposes. For purposes of making the calculations required by this
      Section 4, the Accountants may make reasonable assumptions and
      approximations concerning applicable taxes and may rely on reasonable, good
      faith interpretations concerning the application of Section 280G and 4999
      of the Code. The Company and the Employee shall furnish to the Accountants
      such
      information and documents as the Accountants may reasonably request in order
      to
      make a determination under this Section. The Company shall bear all costs the
      Accountants may reasonably incur in connection with any calculations
      contemplated by this Section 4, including by reason of any state, federal
      or other government audit of such calculations.

    

    (b) The
      payment of severance benefits provided for in this Agreement shall be subject
      to
      all applicable income, employment and social tax rules and
      regulations.

    

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

       

    

    5. Successors.
      Any
      successor to the Company (whether direct or indirect and whether by purchase,
      lease, merger, consolidation, liquidation or otherwise) to all or substantially
      all of the Company’s business and/or assets shall assume the obligations under
      this Agreement and agree expressly to perform the obligations under this
      Agreement in the same manner and to the same extent as the Company would be
      required to perform such obligations in the absence of a succession. The terms
      of this Agreement and all of the Employee’s rights hereunder shall inure to the
      benefit of, and be enforceable by, the Employee’s personal or legal
      representatives, executors, administrators, successors, heirs, distributees,
      devisees and legatees.

    

    6. Notice.
      Notices
      and all other communications contemplated by this Agreement shall be in writing
      and shall be deemed to have been duly given when personally delivered or when
      mailed by U.S. registered or certified mail, return receipt requested and
      postage prepaid. Mailed notices to the Employee shall be addressed to the
      Employee at the home address which the Employee most recently communicated
      to
      the Company in writing. In the case of the Company, mailed notices shall be
      addressed to its corporate headquarters, and all notices shall be directed
      to
      the attention of its Secretary.

    

    7. Miscellaneous
      Provisions.

    

    (a) No
      Duty to Mitigate.
      The
      Employee shall not be required to mitigate the amount of any payment
      contemplated by this Agreement (whether by seeking new employment or in any
      other manner), nor, except as otherwise provided in this Agreement, shall any
      such payment be reduced by any earnings that the Employee may receive from
      any
      other source.

    

    (b) Waiver.
      No
      provision of this Agreement shall be modified, waived or discharged unless
      the
      modification, waiver or discharge is agreed to in writing and signed by the
      Employee and by an authorized officer of the Company (other than the Employee).
      No waiver by either party of any breach of, or of compliance with, any condition
      or provision of this Agreement by the other party shall be considered a waiver
      of any other condition or provision or of the same condition or provision at
      another time.

    

    (c) Whole
      Agreement.
      No
      agreements, representations or understandings (whether oral or written and
      whether express or implied) which are not expressly set forth in this Agreement
      have been made or entered into by either party with respect to the subject
      matter hereof. This Agreement supersedes the Change in Control sections of
      any
      agreement, including any offer letter, prior Change in Control agreements,
      employment agreement, option grant document, etc. concerning the payments and
      benefits in a Change of Control as provided by this Agreement, dated prior
      to
      the date of this Agreement, and by execution of this Agreement both parties
      agree that any such predecessor agreement shall be deemed null and void.
      Notwithstanding the foregoing, in the event the Employee’s new hire offer letter
      specifies a longer period to exercise options in the event of a Change of
      Control than is specified in Section (2)(b)(2)(ii) of this Agreement, the period
      specified in the offer letter shall be used. Further, the portions of the
      Employee’s new hire offer letter related to any severance benefits related to a
      termination not in connection with a Change in Control shall remain in full
      effect and are not superseded by this Agreement.

    

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

       

    

    (d) Choice
      of Law.
      The
      validity, interpretation, construction and performance of this Agreement shall
      be governed by the laws of the State of California without reference to conflict
      of laws provisions.

    

    (e) Severability.
      If any
      term or provision of this Agreement or the application thereof to any
      circumstance shall, in any jurisdiction and to any extent, be invalid or
      unenforceable, such term or provision shall be ineffective as to such
      jurisdiction to the extent of such invalidity or unenforceability without
      invalidating or rendering unenforceable the remaining terms and provisions
      of
      this Agreement or the application of such terms and provisions to circumstances
      other than those as to which it is held invalid or unenforceable, and a suitable
      and equitable term or provision shall be substituted therefore to carry out,
      insofar as may be valid and enforceable, the intent and purpose of the invalid
      or unenforceable term or provision.

    

    (f) Arbitration.
      Any
      dispute or controversy arising under or in connection with this Agreement may
      be
      settled at the option of either party by binding arbitration in the County
      of
      Santa Clara, California, in accordance with the rules of the American
      Arbitration Association then in effect. Judgment may be entered on the
      arbitrator’s award in any court having jurisdiction. Punitive damages shall not
      be awarded.

    

    (g) Legal
      Fees and Expenses.
      The
      parties shall each bear their own expenses, legal fees and other fees incurred
      in connection with this Agreement.

    

    (h) No
      Assignment of Benefits.
      The
      rights of any person to payments or benefits under this Agreement shall not
      be
      made subject to option or assignment, either by voluntary or involuntary
      assignment or by operation of law, including (without limitation) bankruptcy,
      garnishment, attachment or other creditor’s process, and any action in violation
      of this subsection (h) shall be void.

    

    (i) Employment
      Taxes.
      All
      payments made pursuant to this Agreement will be subject to withholding of
      applicable income and employment taxes.

    

    (j) Assignment
      by the Company.
      The
      Company may assign its rights under this Agreement to an affiliate, and an
      affiliate may assign its rights under this Agreement to another affiliate of
      the
      Company or to the Company; provided, however, that no assignment shall be made
      if the net worth of the assignee is less than the net worth of the Company
      at
      the time of assignment. In the case of any such assignment, the term “Company”
when used in a section of this Agreement shall mean the corporation that
      actually employs the Employee.

    

    (k) Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original, but all of which together will constitute one and the same
      instrument.

    

    

    (SIGNATURE
      PAGE FOLLOWS)

    
       

      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, each of the parties has executed this Agreement, in the case
      of
      the Company by its duly authorized officer, as of the day and year first above
      written.

     

    
 

    
      	
              RITA MEDICAL SYSTEMS, INC.

               

               

              
                By:
                  __________________________

                 

                Title:
                  _________________________

              

            	
              NAME:

               

               

              ______________________________

            

    

    

    
      
         

      

      
        -8-

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