Document:

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                                                                   EXHIBIT 10.12
                      EXCLUSIVE DISTRIBUTORSHIP AGREEMENT
                      -----------------------------------

     THIS AGREEMENT made as of November 12, 1997 to take effect as of December
1, 1997 as specified herein, by and between RITA Medical Systems, lnc. (and its
successors and assigns, the "Seller"), a California corporation having its
principal office at 967 North Shoreline Boulevard, Mountain View, California
94043, NISSHO IWAI CORPORATION ("Distributor"), a Japanese corporation having
its primary office at 4-5 Akasaka 2-chome, Minato-ku, Tokyo 107, and NISSHO IWAI
AMERICAN CORPORATION ("Distributor Agent"), a New York corporation with an
office at 44 Montgomery Street Suite 2150, San Francisco, California 94104-4375
(the Distributor and Distributor Agent shall be referred to collectively as
"Distributors").

                                  WITNESSETH
                                  ----------

     WHEREAS, Seller has been engaged in the manufacture and marketing of the
Products (as hereinafter defined) and desires to expand the sale of same;

     WHEREAS, among other things, Distributors are collectively engaged in
exporting, distributing and marketing various products in Japan; and

     WHEREAS, Distributors desire to act as, and Seller desires to appoint
Distributors as the sole and exclusive distributors of the Products in the
Territory (as hereinafter defined).

     NOW, THEREFORE, the parties hereto agree as follows:

ARTICLE 1. DEFINITIONS
----------------------
     The following words shall have the following meanings when used in this
Agreement:

     1.1  "Acquisition Closing Date" shall mean the date on which control of the
Seller transfers to another individual or entity in accordance with the
acquisition agreement entered into between the Seller and such acquiring
individual or entity.

     1.2  "Agreement" shall mean this agreement and any amendments hereto.

     1.3  "Delivery Point" shall mean F.0.B. Seller's manufacturing site which
is currently located at Mountain View, California, or such other location as may
be agreed to in writing from time to time.

     1.4  "Individual Contract" shall mean a Purchase Order for the Products
issued by Distributor Agent and accepted by Seller as provided herein.

     1.5  "Equipment" shall mean minimally-invasive surgical ablation systems
for the treatment of solid organ tumors consisting of RF Generators, Electrodes
and associated equipment described in Exhibit A and as may be added or modified
in accordance with this Agreement.

     1.6  "End-Customer" shall mean ultimate purchaser or user of the Products,
i.e., medical practitioner, hospital and medical facilities.

     1.7  "In-Country Caretaker Period" shall mean the period from December 1,
1997 to the day before the Investment Date.

     1.8  "Investment Date" shall mean the date when Distributors remit the
funds for investment in Seller pursuant to letter of intent described in Article
2.1.

     1.9  "Marks" shall mean all trademarks, tradenames, emblems, designs,
patents and other intellectual property utilized in connection with the Products
and identified in Exhibit C annexed hereto and any abbreviation or modification
thereof.

     1.10 "MHW" shall mean the Japanese Ministry of Health and Welfare.

     1.11 "MHW Product Approval" shall mean the MHW approval, in whatever form,
for the importation and distribution of Product pursuant to a "me too" or a "new
medical product" application.

     1.12 "Minimum Purchase Target" shall mean the minimum target quantity of
Equipment for purchase each Sales Year by Distributors as provided in Exhibit B.

     1.13 "Parts" shall mean replacement parts for, or components of, the
Equipment.

     1.14 "Product(s)" shall mean, as applicable, the Equipment and/or Parts
and/or other products as provided in Article 4 herein.

     1.15 "Purchase Order" shall mean Distributor Agent's standard form
purchase order prevailing from time to time.

     1.16 "Purchaser(s)" shall mean intermediate purchasers of the Products.

     1.17 "Sales Year" shall mean each successive one-year period with the
first such one year period commencing the first day of the third full month
following the month in which the Distributor obtains initial MHW Product
Approval.
<PAGE>

     1.18  "Sub-Distributor" shall mean the sub-distributor to the Distributor
as identified in Article 5 herein.

     1.19  "Territory" shall mean Japan.

ARTICLE 2. APPOINTMENT: REPRESENTATIONS
---------------------------------------

     2.1  Seller hereby appoints Distributors, and Distributors accept the
appointment, as Seller's sole and exclusive distributor for the sale and
distribution of the Products for and in the Territory as of the Investment Date.
subject to the investment requirement defined below. Further, seller appoints
Distributors, and Distributors agree, to act as its in-country caretaker during
the In-country Caretaker Period, provided that Distributors rights and
obligations during this period shall be limited to (a) Product testing, and (b)
preparation of application to obtain MHW Product Approval, and (c) receipt of
the termination fee in accordance with Article 13. In no event shall Distributor
file the MHW Product Approval application with the MHW until after the
Investment Date. It is the desire of the Distributors to make an investment in
the Seller, as more fully described in a letter of intent of even date herewith,
subject to the terms and conditions therein. If this investment is not made by
the close of business on January 15, 1998, this Agreement shall terminate,
unless extended by mutual written agreement.

     2.2  During the term of this Agreement, except as stated herein, Seller
shall not directly or indirectly (i) sell, distribute, market, lease or
otherwise make available the Products within the Territory except through
Distributors or (ii) grant a license to anyone other than Distributors for the
manufacture and/or sale of the Products within the Territory. Seller shall take
all commercially reasonable steps to prevent shipment (or trans-shipment) of any
Products by or on behalf of others into the Territory.

     2.3  During the term of this Agreement, Distributors and Sub-Distributors
shall not sell, market or service in the Territory any device which are similar
to or competitive with those Products and which are handled by Distributors
under this Agreement.

     2.4  Seller shall promptly refer to Distributor Agent all inquiries for the
Products originating in or for ultimate delivery to the Territory.

     2.5  The relationship between Seller and Distributors is solely that of
seller and buyer. Distributors shall sell the Products for its own account and
risk as an independent contractor. Nothing contained herein shall be construed
or deemed to make the parties hereto joint  ventures or partners or to
constitute either party an agent or employee of the other. Neither party shall
at any time make any representation, either in writing or orally. that it is an
agent, partner or joint venture with the other. Neither party shall have the
right, power or authority to assume or create any obligation, express or
implied, on behalf of the other.

     2.6  Each of Seller and Distributors hereby represent and warrant to the
other that: (i) the most recent financial, background and product information
previously furnished to the other is true, correct and complete in all material
respects; (ii) it is a duly organized and validly existing corporation under the
laws of its domiciliary jurisdiction; (iii) it has full power and authority to
execute and deliver this Agreement and to perform and observe the provisions of
this Agreement; (iv) the execution, delivery and performance of this Agreement
have been duly authorized by all necessary corporate action and do not in any
way contravene any law, obligation or restriction binding on or affecting it or
any of its property; (v) no authorization or approval (including export licenses
and exchange control approval) or other action by, and no notice to or filing
with, any governmental authority or regulatory body, except as referenced
herein. is required for the due execution, delivery and performance of this
Agreement; and (vi) this Agreement has been duly executed and delivered and is a
legal, valid and binding obligation enforceable against it in accordance with
its terms.

ARTICLE 3. PURCHASE AND SALE; PRICE; PAYMENT; INSPECTION; DELIVERY
------------------------------------------------------------------

     3.1  The sale and purchase of the Products hereunder shall be based on the
terms and conditions set forth herein and in the applicable Purchase Order,
provided that if any discrepancy should occur between the terms and conditions
of this Agreement and those set out in the printed portion of the Purchase
Order, this Agreement shall prevail. An Individual Contract for the Products
shall be deemed to have been made when Distributor Agent receives Seller's
acceptance of the Purchase Order, such acceptance being indicated by Seller's
countersignature on the Purchase order, Seller's issuance of a sales
confirmation or similar document, Seller's delivery of the products or the like,
provided that if any terms in such sales confirmation or similar document
conflict with, or supplement, the terms of this Agreement or the Purchase Order,
such conflicting or supplemental terms shall be deemed null and void and the
provisions of this Agreement and/or the Purchase Order shall govern. In any
case, Seller shall respond to each Purchase Order within fifteen (15) days after
its
<PAGE>

receipt by Seller, and failure by Seller to so respond shall be deemed
acceptance by Seller. Seller shall endeavor to timely fill all Purchase Orders.

     3.2  For the purpose of securing orderly shipments, Distributor Agent shall
submit to seller a rolling four-quarter forecast of orders for Equipment
purchases at the beginning of each quarter, of which Distributors, subject to
Article 8.2, agree to purchase as a binding commitment the quantity forecast for
the first two quarters of each such forecast. Distributor Agent shall submit the
sales forecast for the first Sales Year on or about the Investment Date.

     3.3  The price and payment terms for the Products set forth in each
Individual Contract shall be in accordance with Exhibit B annexed hereto. The
parties may amend such prices by mutual agreement in writing, to enable both
parties to realize fair profits on their sales by taking into consideration the
normal practices of the trade, if any, and competitive circumstances existing
from time to time, including, in the event Distributor succeeds in obtaining MHW
medical insurance reimbursement points for the Products. Beginning with the
second Sales Year, Seller may make unilateral adjustments to Product prices
consistent with the U.S. Consumer Price Index, provided, the Product price shall
not increase by more than five (5) percent during any one Sales Year.

     3.4  Distributors shall have, upon Seller's consent, which consent shall
not be unreasonably withheld, the right to inspect the Products at the place of
manufacture prior to packing thereof. Seller shall timely notify Distributor
Agent of the production schedules for the Products and of the readiness of
Products for packing. Inspection shall be at Distributors' expense. Inspection
of any products by Distributors shall not constitute acceptance thereof nor
shall it constitute a waiver of any claim or right which Distributors or
Purchasers may have with respect thereto.

     3.5  Seller shall deliver and Distributor Agent shall take delivery of the
Products at the Delivery Point. Seller shall pack the Products to withstand
normal international transportation, exposure and handling. Upon such delivery,
title to the Products shall pass to Distributors.

ARTICLE 4. PRODUCT MODIFICATIONS; NEW PRODUCTS
----------------------------------------------

     4.1  Seller shall notify Distributor Agent sufficiently in advance of any
planned modification in the design or specifications or of any withdrawal of any
Products, taking into account, among other factors (i) the time necessary to
obtain any Japanese governmental permits, licenses, and approvals, including new
or additional MHW Product Approvals. and (ii) the time necessary to publicly
announce and inform End-Customers of the Product withdrawal or modification.

     4.2  Any new products (and components thereof) developed or handled by
Seller in the future which are similar to or competitive with the Products shall
be included in the term "Products'' and shall be subject to the terms and
conditions of this Agreement, except for (i) the price therefor, and (ii) the
Minimum Purchase Targets, both of which shall be mutually agreed, to enable both
parties to realize fair profits on their sates by taking into consideration the
normal practices of the trade if any competitive circumstances existing from
time to time, and whether Distributor must obtain MHW Product Approval.

     4.3  Seller shall make commercially reasonable efforts to notify
Distributor Agent of any new products which are not similar or competitive with
the Products.

ARTICLE 5. SUB-DISTRIBUTORS
---------------------------

     Seller authorizes, and Distributor agrees to, the prompt appointment of the
following entity as Distributor's sub-distributor within the Territory: AIoka
Company, Ltd. ("Sub-Distributor"), 6-22-1 Mure Mitaka-shi Tokyo 181. Japan. Such
appointment shall not take place until after the investment, as defined in
Article 2.1, has been met. Distributor shall not, without the Seller's prior
written consent, which Seller may withhold in its sole and absolute discretion,
appoint any other sub-distributor. Distributor shall cause Sub-Distributor to be
bound by and comply with the relevant Articles contained herein, and any breach
by Sub-Distributor of those Articles shall be deemed to be a breach by
Distributor.

ARTICLE 6. PATENTS TRADEMARKS AND TRADENAMES
--------------------------------------------

     6.1  Seller warrants and represents that to the best of its knowledge, it
is the rightful and legal owner of all rights, title, and interest to any and
all Marks used in connection with the manufacture
<PAGE>

sale and promotion of the Products.

     6.2  Seller hereby grants to Distributors and to Sub-Distributor the sole
and exclusive right and license to use all Marks in connection with the
promotion, sale and distribution of the products in the Territory.

     6.3  If Seller adopts any other trademarks, tradenames and the like in
connection with the Products in the future, Seller shall notify Distributor
Agent immediately thereof and same shall be included in the term ''Marks''.

     6.4  At Seller's sole expense, Seller shall duly register and keep
effective in the Territory the Marks and shall take all commercially reasonable
steps to duly protect the Marks.

     6.5  Seller shall take all commercially reasonable steps to ensure that the
Products are marked labeled and packaged in accordance with this Agreement and
in accordance with all applicable laws, rules and regulations in the Territory.
Distributor shall take all commercially  reasonable steps to ensure that the
Products are advertised, distributed and sold in accordance with this Agreement
and in accordance with all applicable laws, rules and regulations in the
Territory.

     6.6  Distributor agrees to promptly report complaints from End-Customers
regarding performance of the Products.

ARTICLE 7. MHW PRODUCT APPROVAL; APPROVAL TRANSFER
--------------------------------------------------

     7.1  Distributor shall use its best efforts to obtain in the Distributor's
name, (I) "me too" MHW Product Approval, and (ii) any other Japanese
governmental permits, licenses and approvals, within twelve months of the "me
too" MHW Product Approval application filing date, provided that if such are not
achieved within eighteen (18) months from the Investment Date, this Agreement
may terminate at Seller's option subject to the following: In the event the MHW
does not permit classification of the Products under the "me too" MHW Product
Approval category through no fault of Distributor, Distributor shall upon mutual
agreement, apply for "new medical product" MHW Product Approval.

     7.2  Upon mutual agreement of the parties, Distributor shall use its best
efforts to obtain in the Distributor's and/or Sub-Distributor's name (i) the
"new medical product" MHW Product Approval and (ii) thereafter, MHW medical
insurance "reimbursement points'' for the Products. Seller shall provide
Distributors free of charge up to one hundred (100) pieces of Electrodes per
applicable organ for any clinical trials of the Product.

     7.3  Immediately following the Agreement effective date, Seller shall
provide to Distributor free of charge (i) [***] Generators, (ii) a reasonable
quantity of Electrodes, and (c) any product documentation, including Product
specifications, drawings, and data as required by the MHW or any other
authorizing governmental agency. Seller shall provide to Distributor free of
charge a reasonably sufficient quantity of future Products for Distributors to
complete the MHW Product Approval application process.

     7.4  Distributor shall provide Seller with a copy of such MHW Product
Approval application fifteen (15) days prior to its submission to the MHW, and
shall keep Seller promptly informed of the progress of each such application.
Distributor shall assume all costs and expenses incurred in connection with the
MHW Product Approval application, including the conducting of Product clinical
tests.

     7.5  In the event this Agreement is terminated pursuant to Article 13
herein, Distributor shall and when applicable, have Sub-Distributors promptly
take all steps necessary to transfer to Seller all MHW Product Approvals as
follows: (i) If termination is pursuant to Article 13.2 or Article 13.4 herein,
and Distributor is the terminating party, or if termination is pursuant to
Article 13.1 or Article 13.3. Distributor shall at Seller's cost and expense
transfer the MHW Product Approvals to seller; (ii) if termination is pursuant to
Article 13.2 or Article 13.4 herein, and Seller is the terminating party or
termination is pursuant to Article 13.5 herein, Distributor shall at its own
cost and expense transfer the MHW Product Approvals to Seller or Seller's
designee. During any period in which transfer of the MHW Product Approval is
pending, Distributor agrees, and where applicable, to have sub-Distributor
agree, to the extent within its control and to the extent permitted by law, to
take such actions to enable the Seller or Seller's designee to make full use of
such MHW Product Approvals.

____________________
*** Material has been omitted pursuant to a request for confidential treatment,
and such Material has been filed separately with the SEC.
<PAGE>

ARTICLE 8. SALES PROMOTION; MINIMUM PURCHASE TARGET
---------------------------------------------------

     8.1  Distributor agrees to (i) use reasonable commercial efforts to promote
the sate of the products and to serve customers in the Territory, and (ii) meet
the Minimum Purchase Target for each Sales Year, provided, this latter
undertaking shall not constitute a material obligation for purposes of Article
13.2 herein. Any quantity of Products purchased in excess of the Minimum
Purchase Target for a given Sales Year shall be credited towards satisfying the
Minimum Purchase Target for future Sales Years.

     8.2  In the event the total quantity of Products for which Purchase
Order(s) have been issued during any Sales Year is less than the Minimum
Purchase Target, Seller shall have, as its exclusive remedy, the option, upon
ninety (90) days written notice to Distributor Agent, of (i) terminating this
Agreement pursuant to Article 13.5 or (ii) converting the exclusive
distributorship granted hereunder to a non-exclusive distributorship, at the
exclusive option of Seller. Should Seller exercise either remedy, Distributor
may, in its sole discretion and without penalty, withdraw the most recent
rolling four-quarter forecast for orders submitted to the Seller pursuant to
Article 3.2., the effect of which shall be to make the purchase commitment
thereunder null and void.

     8.3  Upon Seller's reasonable request, Distributors shall furnish Seller
with reports relating to the sale of the Products which may include, but is not
limited to, Product inventory, sales to End-Customers, and Generator placements.
Each party shall furnish the other party with information which is necessary or
helpful with respect to sales promotion of the Products.

     8.4  Upon the request of Distributors, Seller shall provide to Distributors
free of charge within two weeks following MHW Product Approval (i) [***]
Generators and [***] Electrodes for promotional use, and (ii) a reasonable
number of catalogs, brochures and other promotional materials in the English
language which may be useful to Distributors sales promotion of the Products.
Seller reserves the right to review and approve all promotional materials
developed by Distributor. For future Products, Seller agrees to discuss with
Distributors the required quantity of samples and promotional materials
necessary for Distributor to effectively engage in sales promotion of such
Products.

     8.5  Distributor shall limit promotion of the Products to medical
applications previously approved by the Seller. Should Distributor learn of the
unapproved use or promotion of the Product by a Purchaser or End-Customer,
Distributor shall inform such Purchaser or End-Customer of the approved uses for
the Product and shall take all commercially reasonable steps to discourage such
unapproved use.

ARTICLE 9. TECHNICAL ASSISTANCE
-------------------------------

     9.1  At no cost to Distributors, Seller shall provide Distributor with (i)
such technical advice and information as may be deemed necessary for a full
understanding of the Products and (ii) training for a reasonable period of time
for a reasonable number of personnel dispatched by Distributor to Seller's
facilities. The compensation, travel, hotel and other expenses for Distributor's
personnel shall be for Distributor's account.

     9.2  Upon mutual agreement of the parties, Seller shall provide technical
support (including the dispatch of Seller's qualified personnel) to ensure the
proper installation, calibration and use of the Products and to provide advice,
training and assistance to Distributors' and Purchasers' personnel and shall
visit potential customers with Distributor to promote the sale and proper use of
the Products. Seller shall provide such personnel at a rate to be mutually
agreed.

     9.3  If requested by Distributors, Seller shall from time to time consider
requests to improve or modify the Products in accordance with the requests of
End-Customers in the Territory.

ARTICLE 1 0. WARRANTY
---------------------

     10.1 Seller hereby warrants to Distributors, Sub-Distributors, and to
Purchasers that the Products shall (i) strictly conform to the Product
specifications as provided by Seller and received by Distributor from time to
time and all U.S. governmental regulations therefor, (ii) be free from defects
in design, material and workmanship and (iii) be of merchantable quality and fit
for the ordinary purposes for which the Products are used. This warranty shall
survive any inspection, delivery, acceptance or payment by Distributors.
Distributors shall have no obligation to provide any warranty to the Purchasers
with respect to the Products, except that Distributor and Sub-Distributor shall
pass on to End-Customers a copy of Seller's statement of warranty. Seller's
liability under these warranties,

___________________
*** Material has been omitted pursuant to a request for confidential treatment,
and such Material has been filed separately with the SEC.
<PAGE>

subject to Article 11 , shall be limited to a refund of the End-Customer's
purchase price or repair or replacement. In no event shall Seller be liable for
the cost of procurement of substitute goods.

     10.2  Seller shall promptly repair or replace (i) any Generator which does
not comply with Seller's warranty for a period of twelve (12) months from the
date of delivery to Purchasers or eighteen (18) months from delivery to the
Delivery Point, whichever is earlier, or (ii) any Electrode which does not
comply with Seller's warranty for a period of twenty four (24) months from the
date of delivery to Purchasers or until the date of the Electrode expiration
date, whichever is earlier, provided, Seller warrants that the Electrodes shall
have a minimum shelf-life of twenty-four (24) months, and provided further, that
Seller shall endeavor to achieve a shelf-life of thirty-six (36) months for the
Electrodes before commencement of the first Sales Year. and shall deliver to
Distributors Electrodes with a manufacture date no more than ninety (90) days
from the date of manufacture/sterilization date. Seller represents that it shall
promptly and diligently comply with all its warranty obligations.

     10.3  A Product may only be returned with the prior written approval of the
Seller, such approval not to be unreasonably withheld. Any such approval shall
reference a return material authorization number issued by Seller. Repair and
transportation costs for returned Products shall be for Seller's account,
provided, if Seller determines that the returned Products were not defective,
such costs shall be for Distributor's account.

     10.4  From the date hereof and until two (2) years after the termination of
this Agreement, Seller shall maintain a general comprehensive product liability
insurance policy in the amount of $2 (two) million per occurrence and $2 (two)
million in the aggregate per year. Distributors and Sub-Distributor shall be
named as additional insureds. Within sixty (60) days from the date hereof,
Seller shall send Distributor Agent a copy of such insurance policy. Such policy
shall provide that Distributors and Sub-Distributor must be notified at least
sixty (60) days prior to such policy's expiration, termination or modification.

ARTICLE 11. INDEMNITY
---------------------
     Seller shall indemnify and hold Distributors, Sub-Distributors, its parent,
subsidiaries and affiliates and their directors, officers and employees
("Related Parties") harmless from any and all losses, obligations, liabilities,
costs and expenses including, but not limited to, legal fees and out-of-pocket
expenses arising out of or in connection with (i) any claim of a third party
regarding any breach of warranty, or any product liability claims arising from
the Products that are otherwise not covered by Seller's general comprehensive
product liability insurance, and (ii) any claim of a third party with respect to
the Products including, without limitation any claim of infringement of patent,
trademark or tradename rights, provided that Distributors shall have promptly
informed Seller thereof. In complying with the provisions of this Paragraph,
Seller shall actively and at its own expense defend against any such claim.
Notwithstanding the foregoing, Seller's obligations hereunder shall not extend
to special or consequential damage claims of Distributors, Sub-Distributors, and
Related Parties. Seller's obligations hereunder shall survive the expiration or
termination of this Agreement.

ARTICLE 12. CONFIDENTIALITY
---------------------------
     During the term of this Agreement, and for a period of one (1) year
following termination of this Agreement, Distributors agree to maintain such
written information, or such oral information that is reduced to writing and
delivered to Distributor within fifteen (15) days, which are disclosed to
Distributors and clearly marked "confidential", with the same degree of care
Distributors maintain there own such similar information. Distributor may
disclose said information to those individuals or parties who are or who agree
to be bound hereunder. It is further agreed that Distributors' obligations
hereunder shall not pertain to information which (i) becomes generally available
to the public through no act or omission by Distributors. (ii) is disclosed on a
non-confidential basis to Distributors by a third party that appears entitled to
disclose such information on a non-confidential basis, (c) is known to
Distributors prior to its disclosure to Distributors, or (iii) is required to be
disclosed pursuant to court order.

ARTICLE 13. TERM AND TERMINATION; COMPENSATION
----------------------------------------------

     13.1  This Agreement shall commence as of the date first above written and
shall terminate at the end of three (3) Sales Years, except that, thereafter at
Distributors' sole option, this Agreement may be renewed for two (2) additional
Sates Years upon Distributors meeting the Minimum Purchase Targets, after which
it shall terminate. If this renewal option becomes exercisable, and Distributors
<PAGE>

intend to renew the Term. Distributor Agent shall so notify Seller not less than
ninety (90) days prior to the expiration of the Term. Seller and Distributors
shall make best efforts to negotiate commercially reasonable terms with respect
to the Product price and Minimum purchase Targets for the additional Sales
Years, to enable both parties to realize fair profits on their sales by taking
into consideration market conditions and the normal practices of the trade. If
Seller and Distributor fail to agree to such terms within ninety (90) days of
the start of such discussions, this Agreement shall terminate.

     13.2  This Agreement may be terminated by either party upon written notice
to the other if the other party fails to fulfill its material obligations
hereunder and such failure is not cured within sixty (60) days after its receipt
of a written notice requesting a remedy thereof

     13.3  This Agreement may be terminated by Seller if there is a change in
the control of the seller, such termination to be effective as of the
Acquisition Closing Date, provided, in the event of such termination. (i) Seller
shall compensate Distributors in accordance with Article 13.7 herein, (ii)
seller (a) shall be obligated to deliver Electrodes and Generators to
Distributors sufficient, considering Distributors current inventory to allow
Distributor to satisfy End-Customer orders placed by Distributor's existing End-
Customers prior to the Acquisition Closing Date, (b) shall be obligated to
deliver Generators to Distributors sufficient, considering Distributors current
inventory, to satisfy End-Customer orders placed within six (6) months after the
Acquisition Closing Date but which arise from quotations made prior to such date
provided that Distributor Agent shall have provided Seller with a list of
outstanding quotes as of the Acquisition Closing Date and further provided that
Seller may. at Sellers sole option, fill such End-Customer orders directly, and
(c) shall be obligated to deliver Electrodes to Distributors sufficient,
considering Distributor's current inventory, to satisfy Distributors existing
End-Customers for orders placed within ninety (90) days after the Acquisition
Closing Date, provided, the quantity of Electrodes ordered do not exceed the
average monthly quantity of Electrodes ordered by Distributors End-Customers for
the preceding twelve months, and provided further, that Seller may, at Sellers
sole option, fill such End-Customer orders directly.

     13.4  This Agreement may be terminated by either party upon written notice
if the other party becomes insolvent or any voluntary or involuntary petition in
bankruptcy is filed by or against such party or a trustee is appointed with
respect to any of the assets of such party or a liquidation proceeding is
commenced by or against such party and such proceeding has not been terminated
within ninety (90) days, or if such party discontinues its business.

     13.5  Seller may, in accordance with Article 8.2, terminate this Agreement
if the total quantity of Products for which Purchase Order(s) have been issued
is less than the Minimum Purchase Target for any Sales Year.

     13.6  Termination of this Agreement shall not relieve either party of its
obligations incurred prior thereto, or any rights or obligations which by their
terms survive or take effect upon termination. Regardless of the reasons for
termination of this Agreement, all outstanding credits and liabilities under the
warranty provisions hereof shall continue to remain in force.

     13.7  The parties agree that Distributors shall expend substantial efforts
and costs to develop and maintain a market for the Products. Therefore, in the
event of a termination pursuant to Article 13.3 herein, Seller shall compensate
Distributors with cash payments in accordance with the following schedule,
provided that for purposes of defining the compensation herein with respect to
those periods beyond the Investment Date, if the Acquisition Closing Date occurs
within twenty-one (21) days of execution of a definitive agreement regarding the
acquisition ("agreement date"), the Cash Amount shall be computed as if the
Termination Date is the agreement date:

--------------------------------------------------------------------------------
Termination Date                                               Cash Amount
--------------------------------------------------------------------------------
In-Country Caretaker Period                                    US$ [***]
--------------------------------------------------------------------------------
Investment Date -- Day before date of MHW ProductApproval      US$ [***]
--------------------------------------------------------------------------------
Date of MHW Product Approval -- Day before 1st sales Year      US$ [***]
--------------------------------------------------------------------------------
During 1st sales Year                                          US$ [***]
--------------------------------------------------------------------------------
___________________
*** Material has been omitted pursuant to a request for confidential treatment,
and such Material has been filed separately with the SEC.
<PAGE>

--------------------------------------------------------------------------------
During 2nd sales Year                                          US$ [***]
--------------------------------------------------------------------------------
During 3rd sales Year                                          US$ [***]
--------------------------------------------------------------------------------

Seller shall promptly deliver all amounts payable pursuant to this provision by
wire transfer to Distributor or Distributor Agent, as specified by Distributor,
no later than the Acquisition Closing Date.

     13.8  Upon termination of this Agreement. Seller shall have the following
additional obligations with respect to repurchase of Product inventory held by
Distributors or Sub-Distributor: (i) If the termination arises from Article 13.2
or Article 13.4 herein, and the Distributors are the terminating party, or
termination arises from Article 13.3 herein, Seller shall, upon Distributors'
request. promptly repurchase at Seller risk and expense and at the original
invoice price that portion of the Product inventory which has at least twelve
(12) months until the Product expiration date and which was not damaged while in
the care of Distributor; (ii) if the termination arises from Article 13.2 or
Article 13.4 herein, and the Seller is the terminating party, or termination
arises from Article 13.1 or Article 13.5 herein, Seller may, but shall not be
obligated to, repurchase the Product inventory.

ARTICLE 14. FORCE MAJEURE
-------------------------
     Neither party shall be responsible to the other party for nonperformance or
delay in performance under this Agreement and/or any Individual Contract due to
acts of God, civil commotion, war, riots, strikes, lockouts, severe weather,
fires, explosions, governmental actions or other similar causes beyond the
control of such party, provided that the party so affected shall promptly give
notice thereof to the other party and shall continue to take all action
reasonably within its power to comply herewith as fully as possible. In any
event the time for performance hereunder shall only be extended for the duration
of the delay.

ARTICLE 15. GENERAL PROVISIONS
------------------------------

     15.1  This Agreement constitutes a contract and, except as provided herein,
is not assignable by either party in whole or in part without the prior written
consent of the other party, and any attempted assignment or participation
without such approval shall be null and void. Except as provided herein any such
assignment without the written consent of the other party shall be void. Seller
may assign this Agreement, subject to the existing terms and conditions, to an
individual or entity that acquires controlling interest in Seller, provided,
this Agreement has not been terminated pursuant to Article 13.3.

     15.2  Any notice made in relation to this Agreement or performance
thereunder shall be in writing and delivered by hand or sent by prepaid
certified mail, return receipt requested, telefax (with a copy by certified
mail) to the following addresses:

     If to Distributors:     Nissho lwai American Corporation
                             44 Montgomery Street, Suite 2150
                             san Francisco. California 94104-4375
                             Attn: Takehito Jimbo
                             Telefax No.: (415) 788-6959

     If to Seller:           RITA Medical Systems, Inc.
                             967 North Shoreline Boulevard
                             Mountain View, California 94043
                             Attn: Mr. Barry Cheskin, President
                             Telefax No.: (415) 390-8505

or such other address as the intended recipient previously shall have designated
in writing. All notices hereunder shall be deemed to be made upon receipt.
Rejection or other refusal to accept or the inability to deliver because of
change of address of which no notice was given shall be deemed to be receipt of
the notice sent.

     15.3  This Agreement shall be governed by the laws of the State of
California without reference
_______________________________________________________________________________

*** Material has been omitted pursuant to a request for confidential treatment,
and such Material has been filed separately with the SEC.

*** Material has been omitted pursuant to a request for confidential treatment,
and such Material has been filed separately with the SEC.
<PAGE>

such State's conflicts of law rules. Any controversy or claim arising out of or
relating to this Agreement, or the breach thereof, shall be finally settled as
follows: If action is brought by seller arbitration shall be conducted in Tokyo.
Japan in accordance with the rules then in effect of the Japan Commercial
Arbitration Association by a mutually agreeable number of arbitrators appointed
in accordance with such rules; if action is brought by Distributors, arbitration
shall be conducted in San Francisco, California in accordance with the rules
then in effect of the American Arbitration Association. The arbitrators shall
follow the law governing this Agreement. Judgment upon the award may be entered
in any court having jurisdiction. Notwithstanding the foregoing, either party
may, (i) file suit in any court of competent jurisdiction to seek equitable
relief and/or to enforce an arbitration award and/or (ii) implead the other in
any action, suit or proceeding wherein the impleading party has been made a
party by any third party in respect to any claim for which the impleaded party
is or may be liable to the impleading party.

     15.4  The provisions of this Agreement shall be deemed to be severable, and
the invalidity of any provision of this Agreement shall not affect the validity
of the remaining provisions of this Agreement.

     15.5  The failure of either party hereto to enforce at any time any of the
provisions hereof shall not be construed to be a waiver of such provisions or of
the right of such party thereafter to enforce any such provisions.

     15.6  The paragraph headings herein are for ease of reference only and are
not to be utilized in construing or interpreting this Agreement.

     15.7  The prevailing party in an arbitration or lawsuit pursuant to Article
15.3 shall be reimbursed by the other party for all expenses, including, without
limitation, reasonable attorneys' fees and other legal expenses, incurred or
paid by it in exercising or protecting its interests, rights or remedies under
this Agreement, plus interest thereon at the highest rate permitted by
applicable law.

     15.8  No provision of this Agreement shall be construed against or
interpreted to the disadvantage of either party hereto by any court or
governmental or judicial authority by reason of such party having or being
deemed to have structured or dictated such provision.

     15.9  Notwithstanding anything herein to the contrary, it is intended that
Articles 3, 7, 10, 11, 12, 13, and 15 shall survive the termination or
expiration for any reason of this Agreement.

     15.10 All references to dates herein shall mean United States Pacific
Standard Time.

     15.11 This Agreement constitutes the entire agreement and understanding of
the parties hereto with respect to the subject matter of this Agreement, and
supersedes all prior discussions, agreements and understandings between the
parties with respect to the subject matter of this Agreement. No amendment or
modification or this Agreement shall be binding on the parties unless made in
writing expressly referring to this Agreement and signed by and authorized
representative of each party.

     lN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first above written.

                            RITA MEDICAL SYSTEMS, INC.

                            /s/: Barry Cheskin
                            ------------------
                            Barry Cheskin
                            President and CEO

                            NISSHO IWAI CORPORATION

                            /s/: Ryuichi Kumagai
                            --------------------
                            Ryuichi Kumagai
                            General Manager
                            Medical & Electronics Systems Dept.

                            NISSHO IWAI AMERICAN  CORPORATION
<PAGE>

                            /s/:Soichi Hirayama
                            -------------------
                            Soichi Hirayama
                            General Manager and Vice President
<PAGE>

                                   EXHIBIT A
                                   ---------

                  DESCRIPTION OF THE PRODUCTS; SPECIFICATIONS
                  -------------------------------------------

                                   Generators
                                   ----------

------------------------------------------------------------------------------
            Model Number                              Part Number
------------------------------------------------------------------------------
          RITA Model 500L                             700-1 00891
------------------------------------------------------------------------------

                                  Electrodes
                                  ----------

------------------------------------------------------------------------------
      Model Number               Part Number               Description
------------------------------------------------------------------------------
     RITA Model 30             700-1 00852/890             4 array, 3cm
------------------------------------------------------------------------------
     RITA Model 30             700-1 00766/952             3 array, 2cm
------------------------------------------------------------------------------
     RITA Model 20             700-1 00767/951             2 array, 2cm
------------------------------------------------------------------------------
<PAGE>

                                   EXHIBIT B
                                   ---------

                                PRICE SCHEDULE
                                --------------

-----------------------------------------------------------------------------
Product         Sales Year One      Sales Year Two      Sales Year Three
-----------------------------------------------------------------------------
Generators      $[***]/unit         $[***]/unit         $[***]/unit
-----------------------------------------------------------------------------
Electrodes      $[***]/unit         $[***]/unit         $[***]/unit
-----------------------------------------------------------------------------
Note: prices are U.S. Dollar. F.0.B. Delivery Point

                            MINIMUM PURCHASE TARGET
                            -----------------------

     ------------------------------------------------------------------------
     Product       Sales Year One     Sales Year Two     Sales Year Three
     ------------------------------------------------------------------------
     Generators         [***]              [***]              [***]
     ------------------------------------------------------------------------
     Electrodes         [***]              [***]              [***]
     ------------------------------------------------------------------------

                                 PAYMENT TERMS
                                 -------------

        Net sixty (60) days from date of delivery to Distributor Agent

_____________________________
*** Material has been omitted pursuant to a request for confidential treatment,
and such Material has been filed separately with the SEC.
<PAGE>

                                   EXHIBIT C
                                   ---------

                           DESCRIPTION OF THE MARKS
                           ------------------------

                               JAPANESE PATENTS

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
Japanese Patent    RITA                                            PCT Application       Filing
Application No.    Reference No.   Title                           No.                   Date          Status
-----------------------------------------------------------------------------------------------------------------------
<S>                <C>             <C>                             <C>                   <C>           <C>
9-509498           13724-768       Method and Apparatus for        PCT/US96/13285        08/15/96      Pending
                                   Ablation of a Selected Mass
-----------------------------------------------------------------------------------------------------------------------
9-509547           13724-770       Method and Apparatus for        PCT/US96/13409        08/15/96      Pending
                                   Ablation of a Selected Mass
-----------------------------------------------------------------------------------------------------------------------
9-509548           13724-766       Method and Apparatus for        PCT/US96/13411        08/15/96      Pending
                                   Ablation of a Selected Mass
-----------------------------------------------------------------------------------------------------------------------
9-509503           13724-764       Method and Apparatus for        PCT/US96/13300        08/15/96      Pending
                                   Ablation of a Selected Mass
-----------------------------------------------------------------------------------------------------------------------
n/a                13724-775       Multiple Electrode Ablation     PCT/US95/10242        08/11/95      Pending
                                   Apparatus
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

                              JAPANESE TRADEMARKS

------------------------------------------------------------------------------
  Country   Mark    Class   Filing Date    Filing No.   Status    Locator
------------------------------------------------------------------------------
   Japan    RITA     10      12/18/96       8-141791    Filed   13724-TM2002
------------------------------------------------------------------------------
<PAGE>

                                LICENSED PATENTS

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
U.S. Patent
Serial No.     Entitled                                Date Issued              Expiration Date          Licensor
-------------------------------------------------------------------------------------------------------------------------
<S>            <C>                                     <C>                      <C>                      <C>
               Medical Probe Device and Method
 5,366,490                                             November 22, 1994        November 22, 2011        VidaMed, Inc.
-------------------------------------------------------------------------------------------------------------------------
               Medical Probe Device and Method
 5,370,675                                             December 6, 1994         December 6, 2011         VidaMed, Inc.
-------------------------------------------------------------------------------------------------------------------------
               BPH Ablation Method and
 5,385,544     Apparatus                               January 31, 1995         January 31, 2012         VidaMed, Inc.
-------------------------------------------------------------------------------------------------------------------------
               Steerable Medical Probe with
 5,409,453     Stylets                                 April 25, 1995           April 25, 2012           VidaMed, Inc.
-------------------------------------------------------------------------------------------------------------------------
 5,421,819     Medical Probe Device                    June 6, 1995             June 6, 2012             VidaMed, Inc.
-------------------------------------------------------------------------------------------------------------------------
               Medical Probe Device with Optical
 5,435,805     Viewing Capability                      July 25, 1995            July 25, 2012            VidaMed, Inc.
-------------------------------------------------------------------------------------------------------------------------
               Medical Probe with Biopsy
 5,470,308     Stylet                                  November 28, 1995        November 28, 2012        VidaMed, Inc.
-------------------------------------------------------------------------------------------------------------------------
               Medical Ablation Apparatus
 5,470,309     Utilizing a Heated Stylet               November 28, 1995        November 28, 2012        VidaMed, Inc.
-------------------------------------------------------------------------------------------------------------------------
 5,484,400     Dual Channel RF Delivery System         January 16, 1996         January 16, 2013         VidaMed, Inc.
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
European
PCT Serial No.       Entitled                                                   Licensor
--------------------------------------------------------------------------------------------------
<S>                  <C>                                                        <C>
WO 95/17132          Medical Probe Apparatus with Laser and/or Microwave        VidaMed, Inc.
--------------------------------------------------------------------------------------------------
                     Medical Probe Apparatus with Enhanced RF, Resistance
WO 95/18575          Heating, and Microwave Ablation Capabilities               VidaMed, Inc.
--------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                 U.S. PATENTS

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
                                                                      Serial #/       Filing Date/
RITA #         Title                                                  Patent #        Issue Date      Status
-------------------------------------------------------------------------------------------------------------------
<S>            <C>                                                    <C>             <C>           <C>
                                                                      08/148,441      11/08/93
1002           Medical Probe Device and Method                        5,486,161       1/23/96         Issued
-------------------------------------------------------------------------------------------------------------------
               Device for Treating Cancer and                         08/148,439      11/08/93
1003           Non-Malignant Tumors and Methods                       5,458,597       10/17/95        Issued
-------------------------------------------------------------------------------------------------------------------
               Device for Treating Cancer and                         08/208,676      03/11/94
1004           Non-Malignant Tumors and Methods                       5,472,441       12/05/95        Issued
-------------------------------------------------------------------------------------------------------------------
                                                                      08/291,424      08/16/94
1008           Coiled RF Electrode Treatment Apparatus                5,507,743       04/16/96        Issued
-------------------------------------------------------------------------------------------------------------------
                                                                      08/295,166      08/24/94
1011           RF Treatment Apparatus                                 5,599,345       02/04/97        Issued
-------------------------------------------------------------------------------------------------------------------
                                                                      08/290,031      08/12/94
1012           Multiple Electrode Ablation Apparatus                  5,536,267       07/16/94        Issued
-------------------------------------------------------------------------------------------------------------------
                                                                      08/295,200      08/24/94
1018           RF Treatment System                                    5,599,346       02/04/97        Issued
-------------------------------------------------------------------------------------------------------------------
                                                                      08/515,379      08/15/95
1039           Multiple Antenna Ablation Apparatus and Method         5,683,384       11/04/97        Issued
-------------------------------------------------------------------------------------------------------------------
                                                                      08/576,436      12/19/95
1039CIP5       Multiple Antenna Ablation Apparatus and Method         5,672,173       09/30/97        Issued
-------------------------------------------------------------------------------------------------------------------
                                                                      08/585,532      01/10/96
1039CIP6       Multiple Antenna Ablation Apparatus and Method         5,672,174       9/30/97         Issued
-------------------------------------------------------------------------------------------------------------------
               Multiple Antenna Ablation Apparatus with
1039CIP1       Multiple Sensor Feedback                               08/575,208      12/19/95         Allowed
-------------------------------------------------------------------------------------------------------------------
[***]          [***]                                                  [***]           [***]            [***]
-------------------------------------------------------------------------------------------------------------------
               Multiple Antenna Ablation Apparatus and                                                 Indication
1039CIP3       Method Sensor Feedback                                 08/577,208      12/22/95         Allowed
-------------------------------------------------------------------------------------------------------------------
1039CIP4       Multiple Antenna Ablation Apparatus and Method         08/574,618      12/19/95         Allowed
-------------------------------------------------------------------------------------------------------------------
1039CIP8       Multiple Antenna Ablation Apparatus and Method         08/605,323      02/14/96         Allowed
-------------------------------------------------------------------------------------------------------------------
               Multiple Antenna Ablation Apparatus and
1039CIP9       Method with Cooling Element                            08/616,928      03/15/96         Allowed
-------------------------------------------------------------------------------------------------------------------
</TABLE>

*** Material has been omitted pursuant to a request for confidential treatment,
and such Material has been filed separately with the SEC.
<PAGE>

                                U.S. TRADEMARKS

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
                                                                 Application
          Trademark           Classes         Filing Date            No.         Status          Case Number
---------------------------------------------------------------------------------------------------------------------------
<S>                           <C>             <C>               <C>            <C>              <C>
RITA                           10,42           06/19/96         75/122,091     Published        13724-TM1001
---------------------------------------------------------------------------------------------------------------------------
RITA                           10,42           11/20/96         75/202,020     Published        13724-TM1013
---------------------------------------------------------------------------------------------------------------------------
RITA MEDICAL SYSTEMS            10             09/09/96         75/163,081      Allowed         13724-TM1012
---------------------------------------------------------------------------------------------------------------------------
</TABLE><PAGE>

                                                                  EXHIBITS 10.13

                 EXCLUSIVE INTERNATIONAL DISTRIBUTOR AGREEMENT
                 ---------------------------------------------

THIS AGREEMENT made as of March 12, 1999, as specified herein, by and between
RITA Medical Systems, Inc. (and its successors and assigns, the "Seller"), a
California corporation having its principal office at 967 North Shoreline
Boulevard, Mountain View, California 94043, NISSHO IWAI CORPORATION
("Distributor"), a Japanese corporation having its primary office at 4-5 Akasaka
2-chome, Minato-ku, Tokyo 107, and NISSHO IWAI AMERICAN CORPORATION
("Distributor Agent"), a New York corporation with an office at 44 Montgomery
Street, Suite 2150, San Francisco, California 94104-4708 (the Distributor and
Distributor Agent shall be referred to collectively as "Distributors").

                                  WITNESSETH

     WHEREAS, Seller has been engaged in the manufacture and marketing of the
Products (as hereinafter defined) and desires to expand the sale of the same;
     WHEREAS, among other things, Distributors are collectively engaged in
exporting, distributing and marketing various products in Korea; and
     WHEREAS, Distributors desire to act as, and Seller desires to appoint
Distributors as described below;
     NOW, THEREFORE, the parties hereto agree as follows:

1.   PRODUCTS AND TERRITORY
     ----------------------

     Distributors shall act as Seller 's exclusive distributor in the Territory
     (described in Exhibit A) to promote, sell and distribute the Products
     (described in Exhibit B) for applications which the Seller approves in
     writing, and to provide service with respect to the Products, to customers,
     as they are defined below. Further, Seller authorizes, and Distributors
     agree to, the prompt appointment of the following entity as Distributors'
     exclusive sub-distributor ("Sub-Distributor") within the territory:
     Daeyoung Medical Corporation, 9-1, Hongdo-Don, Donk-ku, Taejeon, Korea.
     Distributors shall cause Sub-Distributor to be bound by and comply with all
     relevant sections of this Agreement, and any breach by Sub-Distributor
     shall be deemed a breach by Distributors. Failure to appoint said Sub-
     Distributor within sixty (60) days of the date hereof shall be grounds for
     immediate termination of this Agreement at the option of the Seller.

     "Customers" means medical doctors, institutions such as hospitals and
     clinics, and similar institutions which are active in the personal care of
     patients. Distributors are not authorized to sell any Products to any of
     Distributors' competitors or to any of Seller 's competitors without Seller
     's prior written consent. Distributors shall not actively solicit orders
     from Customers domiciled outside the Territory, or sell or deliver any
     Product to any Customer which is not in the Territory, except as permitted
     under the Exclusive Distributorship Agreement between Seller and
     Distributors dated November 12, 1997 for the distribution of Products in
     Japan. Furthermore, Distributors shall not appoint
<PAGE>

     any distributor or any agent or maintain any sales, service or stock
     facility outside the Territory. Except with the prior written consent of
     Seller, Distributors shall not sell or advertise within the Territory,
     either on Distributors' own behalf or on behalf of any other person,
     company, or corporation, products which are similar to or competitive with
     the Products.

2.   SALES PROMOTION AND REPORTING RESPONSIBILITIES
     ----------------------------------------------

     Distributors shall be obligated to use commercially reasonable efforts to
     promote Seller's products according to Section 1 above, at Distributors'
     sole expense. This includes, but is not limited to, the activities
     described below in this Section. Distributors shall provide training and
     clinical education to all of the Customers in Distributors' Territory.
     Distributors shall provide appropriate promotional materials in the
     language of Distributors' Territory. Distributors shall be obligated to
     provide a sales report to Seller on a monthly basis, by the 15th of the
     month following the reporting period, which summarizes unit sales, free
     goods and the number of active accounts as well as the current inventory
     status of all Products which are in Distributors' possession at the end of
     the month. Distributors shall provide to Seller, on request, copies of any
     tenders for the Products in Distributors' Territory. Prior to the
     commencement of each Sales Year (defined in Section 14) Distributors shall
     provide to Seller a business plan which will describe Distributors' results
     for the prior year and Distributors' plans for the coming year.

     Seller shall be obligated to provide Distributors with such technical
     support, advice and information as may be deemed necessary by Seller to
     provide Distributors with a full understanding of the Products at no cost
     to Distributors. Seller shall also provide Distributors at Seller's cost
     with a reasonable number of its then existing catalogs, brochures and other
     promotional materials in the English language to facilitate Distributors'
     promotion of the Products. Promptly, after this Agreement is signed by both
     parties, Seller shall also provide Distributors [***]with [***] Model 500
     PA Generators and [***] Model 30 Electrodes which are brand new and not
     used or refurbished (or Model 70 electrodes, depending upon availability)
     for the exclusive use of Distributors' Sub-Distributor for promoting and
     marketing the Products in the Territory provided that Distributors provide
     a like quantity of generators and electrodes to Distributors' Sub-
     Distributor at no charge as well. Seller agrees to sell the above mentioned
     [***] product to Distributors [***] as described in Section 5 below.

3.   ORDERS AND MINIMUM PURCHASE QUANTITIES
     --------------------------------------

     The sale and purchase of the Products hereunder shall be based on the terms
     and conditions set forth herein and in the applicable Purchase Order,
     provided that if any discrepancy should occur between the terms and
     conditions of this Agreement and those

_______________________________
*** Material has been omitted pursuant to a request for confidential treatment,
and such Material has been filed separately with SEC.
<PAGE>

     set out in the printed portion of the Purchase Order, this Agreement shall
     prevail. An Individual Contract for the Products shall be deemed to have
     been made when Distributor Agent receives Seller's acceptance of the
     Purchase Order, such acceptance being indicated by Seller's
     countersignature on the Purchase Order, Seller's issuance of a sales
     confirmation or similar document, Seller's delivery of the Products or the
     like, provided that if any terms in such sales confirmation or similar
     document conflict with, or supplement, the terms of this Agreement or the
     Purchase Order, such conflicting or supplemental terms shall be deemed null
     and void and the provisions of this Agreement and/or the Purchase Order
     shall govern. In any case, Seller shall respond to each Purchase Order
     within fifteen (15) days after its receipt by Seller, and failure by Seller
     to so respond shall be deemed acceptance by Seller. Seller shall endeavor
     to timely fill all Purchase Orders. Seller agrees that Nissho Iwai American
     Corporation, a wholly owned subsidiary of Nissho Iwai Corporation, shall
     act as Distributors' agent specifically in the formal execution of purchase
     orders to Seller.

     In the first three years of this Agreement, Distributors shall purchase the
     minimum quantity of Products set forth on Exhibit C. In (a) succeeding
     years or (b) if additional products are added by Seller to the Products
     listed in Exhibit B; then, in accordance with Section 14, the parties shall
     make best efforts to negotiate commercially reasonable terms regarding the
     minimum quantities so as to enable both parties to realize a fair profit on
     their sales by taking into consideration the normal practices of the trade,
     if any, and competitive circumstances. Such terms shall be considered in
     effect only when reduced to writing and signed by both parties. Purchases
     in excess of the minimum quantity required in a given Sales Year shall be
     credited toward satisfying the minimum quantity required for the following
     Sales Year.

     For the purpose of securing orderly shipments, Distributors shall submit to
     Seller a rolling four quarter forecast, conforming to calendar quarters, of
     orders for the Products at the beginning of each quarter. The first and
     second quarters of such forecast shall be considered to be a binding
     commitment.

     Distributors shall have, upon Seller's consent, which consent shall not be
     unreasonably withheld, the right to a visual inspection of the Products by
     a full-time employee of Distributors at the place of manufacture prior to
     final packing for shipment. Seller shall timely notify Distributors of
     packing and shipping schedules for the Products. Inspection shall be at
     Distributors' expense and shall not cause interruption to Seller's
     production or shipping operations. Inspection of Products by Distributors
     shall not constitute a waiver of any claim or right which Distributors or
     Purchasers may have with respect to Product warranties.

4.   RETURNS
     -------

     A Product may only be returned with the prior written approval of the
     Seller, such approval not to be unreasonably withheld. Any such approval
     shall reference a return
<PAGE>

     material authorization number issued by Seller. Repair and direct out-of-
     pocket transportation costs for returned Products under warranty and their
     replacements shall be for Seller's account, provided, if Seller determines
     that the returned Products were not defective, such costs shall be for
     Distributors' account.

5.   PRICES
     ------

     In the [***]of this Agreement, Distributors shall pay for Products the
     prices listed on Exhibit D hereto. In (a) succeeding years or (b) if
     additional products are added by Seller to the Products listed in Exhibit
     B; then, in accordance with Section 14, the parties shall make best efforts
     to negotiate commercially reasonable terms regarding the prices so as to
     enable both parties to realize a fair profit on their sales by taking into
     consideration the normal practices of the trade, if any, and competitive
     circumstances. Such terms shall be considered in effect only when reduced
     to writing and signed by both parties.

6.   PAYMENT
     -------

     Full payment of Distributors' purchase price for the Products shall be in
     United States of America dollars. Payment terms shall be net sixty (60)
     days, and payment shall be made by wire transfer, check or other instrument
     approved by Seller. Any invoiced amount not paid when due shall be subject
     to a service charge at the lower of the rate of one and one-half percent
     (1.5%) per month or the maximum rate permitted by law. If Distributors fail
     to make any payment to Seller when due, Seller may, without affecting its
     rights under this Agreement, cancel or delay any future shipments of the
     Products to Distributors. Further, a failure to pay within twenty (20) days
     after the applicable due date shall be considered a failure to fulfill a
     material obligation under this Agreement. In the case of the authorized
     return of Products under warranty or recall, the sixty (60) day payment
     terms for such Products only shall begin upon shipment of replacement
     Products from Seller's manufacturing location.

7.   COMPLAINTS
     ----------

     If Distributors receive or become aware of any complaints concerning the
     Products Distributors shall promptly report them to Seller on copies of the
     form attached as Exhibit E to this Agreement (or on such form as Seller may
     provide from time to time) and Distributors shall provide all necessary
     reasonable assistance in connection with any corrective action with respect
     to the Products. Any determination of corrective action shall be made by
     Seller in its sole discretion.

8.   COMPLIANCE WITH TERRITORIAL REGULATIONS
     ---------------------------------------

_________________________________
*** Material has been omitted pursuant to a request for confidential treatment,
and such Material has been filed separately with SEC.
<PAGE>

     Distributors shall comply with all applicable laws, rules and regulations
     of the Territory governing the use, sale, distribution, shipment and import
     of the Products. With respect to those Products that have not yet received
     approval for commercial sale, Distributors shall also comply with the laws,
     rules and regulations of the Territory concerning use, sale, distribution,
     shipment and import of unapproved products, and with any applicable Seller
     clinical trial protocol. In connection with this obligation, Distributors
     shall obtain and keep in effect all required licenses, permits and
     authorizations (collectively, "Registration(s)") in the name of Seller, or
     if this is specifically prohibited by applicable law, in the name of
     Distributors or Sub-Distributor.

     Seller shall provide Distributors with all necessary assistance in
     connection with Distributors or Sub-Distributor obtaining Registrations
     which Seller concurs in writing are necessary for the conduct of
     Distributors' business. Distributors will advise Seller, upon Seller 's
     request, of the status of all Registrations.

     Seller shall have the sole authority to cancel or transfer (or direct the
     cancellation or transfer of) all such Registrations. If this Agreement is
     terminated for any reason, Seller shall make best commercial efforts to
     appoint a designee qualified under applicable law to assume distribution of
     the Products in the Territory within a period of ninety (90) days following
     termination of this Agreement, and Distributors or Sub-Distributor shall,
     at Seller's expense, promptly transfer all Registrations held by
     Distributors or Sub-Distributor in connection with Distributors' or Sub-
     Distributor's distribution of the Products to Seller or its qualified
     designee. If such transfer is explicitly prohibited by applicable law, as
     confirmed by Seller and Distributors and/or Sub-Distributor in writing,
     Distributors and/or Sub-Distributor shall terminate their Registrations
     within thirty (30) days following Seller's request and shall use best
     commercial efforts to assist Seller, at Seller's expense, in obtaining new
     Registrations for the Seller's qualified designee within thirty (30) days
     of appointment of said designee.

     Distributors and/or Sub-Distributor shall use Distributors' best efforts to
     obtain the Registrations necessary to sell the current Products within
     sixty (60) days of the effective date of this Agreement provided that if
     such Registrations are not obtained by Distributors or Sub-Distributor
     within six (6) months for any reason, this shall be grounds for immediate
     termination of this Agreement at the option of the Seller.

     Whenever possible under specific tender conditions, all activities with
     respect to tenders shall be conducted so as to allow, upon termination of
     this Agreement for any reason, and upon Seller's written request, transfer
     of such tenders to Seller or to such party as Seller designates in writing.

     Seller may provide Distributors with information concerning the manufacture
     of the Products to increase Distributors' ability to obtain Registrations.
     Distributors agree that such information will be disclosed only to those of
     Distributors' employees who are authorized by Seller in writing to receive
     such information.
<PAGE>

9.   COMPLIANCE WITH U.S. REGULATIONS
     --------------------------------

     Seller shall be responsible for compliance with all applicable United
     States laws and regulations governing the manufacture and sale of the
     Products. Distributors shall comply, and use Distributors' commercially
     reasonable efforts to assist Seller in complying, with all United States
     laws and regulations applicable to the import and distribution of the
     Products in the Territory including the maintenance of all required books,
     records and reports. In particular, Distributors shall track the serial
     numbers and lot numbers of Products delivered to Distributors' Customers.
     The obligation to maintain all legally required records shall survive the
     termination of this Agreement.

10.  RECALLS
     -------

     Distributors shall cooperate with Seller in effecting any recall of any
     specific lot(s) of the Products which, in Seller's opinion, is necessary,
     provided, however, that Seller shall bear all reasonable, direct out-of-
     pocket transportation costs relating to the Products under recall and their
     replacements. This section of the Agreement shall survive the termination
     of this Agreement, provided however that Seller shall reimburse
     Distributors and/or Sub-Distributor for all reasonable direct out-of-pocket
     costs relating to support provided to Seller in the event of a Recall
     following termination of this Agreement.

11.  PROPRIETARY PROPERTY OF SELLER
     -------------------------------

     Seller warrants and represents that, to the best of its knowledge, as of
     the date hereof, it is the rightful and legal owner of all Seller's rights,
     title and interest to any and all patents, trademarks and trade names used
     in connection with the manufacture, sale and promotion of the Products.

     Distributors expressly acknowledge that Distributors do not have and shall
     not acquire under this Agreement any rights in or to any of Seller 's
     patents, trademarks or trade names or to any patents, trademarks or trade
     names of any subsidiary or other affiliate of Seller. Distributors further
     acknowledge that Distributors shall not at any time use, register, or
     obtain in Distributors' own or any other name, Seller 's corporate name, or
     any of its other trademarks or trade names without Seller's prior consent
     in writing.

     Both parties agree at all times during the term of this Agreement to hold
     in strictest confidence, and not use, or to disclose to any person, firm,
     corporation or any other entity without written authorization of the other
     party, any Confidential Information of the other party.

     Both parties further agree not to make copies of such Confidential
     Information except as authorized by the other party. Distributors
     understand that "Confidential
<PAGE>

     Information" of Seller means any of Seller's proprietary information,
     technical data, trade secrets or know-how, including, but not limited to
     research, product plans, products, services, suppliers, Customer lists and
     Customers, prices and costs, markets, software, developments, inventions,
     laboratory notebooks, processes, formulas, technology, designs, drawings,
     engineering, hardware configuration information, marketing, licenses,
     finances, budgets or other business information disclosed to Distributors
     by Seller orally, in writing or by drawings.

     Seller understands that "Confidential Information" of Distributors means
     any of Distributors' proprietary information including, but not limited
     market information, trade secrets or know how, Customer lists and
     Customers, prices and costs, finances, budgets or other information
     disclosed to Seller by Distributors orally, in writing or by drawings.

     Confidential Information shall not in any case include information which is
     or becomes generally available or comes to either party's attention through
     means which do not involve a violation of this Agreement.

12.  WARRANTY
     --------

     Seller hereby warrants to Distributor, Sub-Distributors, and to
     Distributors or Sub-Distributor's Customers that the Products shall (i)
     strictly conform to the Product specifications as provided by Seller and
     received by Distributor from time to time and all U.S. governmental
     regulations therefor, (ii) be free from defects in design, material and
     workmanship and (iii) be of merchantable quality and fit for the ordinary
     purposes for which the Products are used. This warranty shall survive any
     inspection, delivery, acceptance or payment by Distributors. Distributors
     shall have no obligation to provide any warranty to the Customers with
     respect to the Products, except that Distributor and Sub-Distributor shall
     pass on to Customers a copy of Seller's statement of warranty which shall
     conform to this Agreement. Seller's liability under these warranties,
     subject to Section 13, shall be limited to a refund of the Customer's
     purchase price or repair or replacement. In no event shall Seller be liable
     for the cost of procurement of substitute goods.

     Seller shall promptly repair or replace (i) any Generator which does not
     comply with Seller's warranty for a period of twelve (12) months from the
     date of delivery by Sub-Distributor to the Customers or eighteen (18)
     months after shipment from Seller's manufacturing location to the
     Distributors, whichever is earlier, or (ii) any Electrode which does not
     comply with Seller's warranty for a period of twenty four (24) months from
     the date of delivery by Sub-Distributor to Customers or until the date of
     the Electrode expiration date, whichever is earlier, provided, Seller
     warrants that the Electrode shall be manufactured with a minimum shelf-life
     of twenty-four (24) months, and provided further that Seller shall endeavor
     to achieve a shelf-life of thirty-six (36) months for the Electrodes as
     soon as commercially reasonable, and shall deliver to
<PAGE>

     Distributors Electrodes with a manufacture date no more than ninety (90)
     days from the date of manufacture/sterilization date, or one hundred eighty
     (180) days once a three year shelf-life is obtained. Seller represents that
     it shall promptly and diligently comply with all its warranty obligations.

     From the date hereof and until two (2) years after the termination of this
     Agreement, Seller shall maintain a general comprehensive product liability
     insurance policy in the amount of two million U.S. dollars ($2,000,000) per
     occurrence and two million U.S. dollars ($2,000,000) in the aggregate per
     year. Distributor and Sub-Distributor shall be named as additional
     insureds. Within sixty (60) days from the date hereof, Seller shall send
     Distributor Agent a copy of such insurance policy. Such policy shall
     provide that Distributors and Sub-Distributor must be notified within
     thirty (30) days of such policy's expiration, termination or modification.

     ALL OTHER GUARANTEES, WARRANTIES, CONDITIONS AND REPRESENTATIONS, EITHER
     EXPRESS OR IMPLIED, WHETHER ARISING UNDER ANY STATUTE, COMMON LAW, CASE
     LAW, COMMERCIAL USAGE, CUSTOM OR OTHERWISE, INCLUDING IMPLIED WARRANTIES OF
     MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY EXCLUDED.

13.  INDEMNIFICATION
     ---------------

     Seller shall indemnify and hold Distributors, Sub-Distributor, their
     parent, subsidiaries and affiliates and their directors, officers and
     employees ("Related Parties") harmless from any and all losses,
     obligations, liabilities, costs and expenses including, but not limited to,
     legal fees and out-of-pocket expenses arising out of or in connection with
     (i) any claim of a third party regarding any breach of Seller's warranty,
     or any product liability claims arising from the Products that are
     otherwise not covered by Seller's general comprehensive product liability
     insurance, excluding those claims which arise from the Distributors' or
     Sub-Distributor's misconduct or gross negligence and (ii) any claim of a
     third party regarding infringement of patent, trademark or tradename rights
     with respect to the Products; provided that in either case (i) or (ii)
     above, (x) Distributors or Sub-Distributor shall have promptly informed
     Seller thereof (y) Distributors and/or Sub-Distributor do not defend
     against or settle any claim without the written consent of Seller and (z)
     Distributors and/or Sub-Distributor make best efforts to cooperate with
     Seller in connection with the defense or settlement of such claim, provided
     that Seller shall reimburse Distributors and/or Sub-Distributor for
     reasonable expenses associated with such cooperation. In complying with the
     provisions of this paragraph, Seller, and not Distributors or Sub-
     Distributor, shall actively and at Seller's own expense defend against or
     settle any such claim. Notwithstanding the foregoing, Seller's obligations
     hereunder shall not extend to special or consequential damage claims of
     Distributors, Sub-Distributors, and Related Parties. Seller's obligations
     hereunder shall survive the expiration or termination of this Agreement
     provided that any claim under this section
<PAGE>

     was made within ten (10) years of the termination of this Agreement or
     until the termination of any applicable statutes of limitations. In the
     event of any such claim after such period, Seller shall use its reasonable
     commercial efforts to assist Distributors and/or Sub-Distributor in
     defending against any such claim.

14.  DURATION AND TERMINATION
     ------------------------

     This Agreement shall be for a three (3) year period commencing on the first
     full month following Distributors' or Sub-Distributor's obtaining the
     Registrations necessary to sell the current Products. This Agreement shall
     automatically renew for successive one year periods beginning on the first
     day following the end of the initial three year period of this Agreement,
     unless notice of termination is given by either party for any reason or no
     reason within the ninety (90) days proceeding the commencement of any one
     year renewal period. Each one year period, as described in this section,
     shall be called a "Sales Year".

     Further, this agreement may be terminated or, at the exclusive option of
     the Seller, converted to a non-exclusive distributorship:

     (1)  by Seller, upon thirty (30) days written notice to Distributors, if
     minimum quantity of Products, as per Section 3, is not purchased by
     Distributors by the end of any Sales Year.

     (2)  by either party upon thirty (30) days written notice to the other if
     the parties fail to reach agreement as to the Minimum Purchase Quantity
     (according to Section 3 above) or as to the prices (according to Section 5
     above) either (a) prior to the commencement of any one year renewal period
     or (b) within sixty (60) days of written notification by Seller of an
     addition to the Products.

     Should Seller terminate the Agreement or convert the Agreement to a non-
     exclusive distributorship according to either (1) or (2) above, Distributor
     may, in its sole discretion and without penalty withdraw the most recent
     rolling four-quarter forecast for orders submitted to the Seller, the
     effect of which shall be to make all purchase commitments by Distributor
     and all supply commitments by Seller under this Agreement null and void.

     Further, this Agreement may be terminated:

     (3)  by either party upon written notice to the other if the other party
     fails to fulfill its material obligations hereunder and such failure is not
     cured within sixty (60) days after its receipt of written notice requesting
     a remedy thereof, provided that there shall be no such cure period if
     another provision in this Agreement excludes it or specifies another
     period.
<PAGE>

     (4)  by either party upon written notice if the other party or the Sub-
     Distributor becomes insolvent or any voluntary or involuntary petition in
     bankruptcy is filed by or against such party or a trustee is appointed with
     respect to any of the assets of such party or a liquidation proceeding is
     commenced by or against such party and such proceeding has not been
     terminated within ninety (90) days, or if such party discontinues its
     business.

     (5)  by Seller upon sixty (60) days written notice to Distributors if there
     is a change of control of Seller.

     Upon termination of this Agreement, Seller shall have the following
     additional obligations with respect to repurchase of Product inventory held
     by Distributors or Sub-Distributor: (i) if the termination arises from (3)
     or (4) above, and the Distributors are the terminating party, or
     termination arises from (5), Seller shall, upon Distributors' request,
     promptly repurchase at Seller's risk and expense and at the original
     invoice price any undamaged "Saleable"inventory, defined as inventory in
     the Seller's catalog at the time of termination of this Agreement and
     having a minimum remaining shelf life of at least eighteen (18) months. If
     the termination arises from (3) or (4) above, and the Seller is the
     terminating party or if termination arises from (1) or (2) above, Seller
     shall have the right, but not the obligation, to repurchase undamaged,
     Saleable inventory at the original invoice price.

     Only the following Sections of this Agreement shall survive its
     termination: Sections 4, 6, 8, 11, 12, 13 and 16.

     Other than the specific provisions in this Section, neither party shall
     have any remedy upon termination due to such termination, provided that
     this shall have no effect on the surviving Sections of this Agreement,
     which remain in effect and enforceable along allowing any remedy
     specifically associated with them.

15.  FORCE MAJEURE
     -------------

     Neither party shall be responsible to the other party for non-performance
     or delay in performance under this Agreement due to acts of God, civil
     commotion, war, riots, strikes, lockouts, severe weather, fires,
     explosions, governmental actions or other similar causes beyond the control
     of such party, provided that the party so affected shall promptly give
     notice thereof to the other party and shall continue to take all action
     reasonably within its power to comply herewith as fully as possible. In any
     event, the time for performance hereunder shall only be extended for the
     duration of the delay.

16.  GENERAL PROVISIONS
     ------------------

     The validity, interpretation, construction and performance of this
     Agreement shall be governed by the laws of the State of California, without
     giving effect to the principles
<PAGE>

     of conflict of laws. Any dispute or claim arising out of or in connection
     with any provision of this Agreement will be finally settled by binding
     arbitration in Santa Clara County, California in accordance with the rules
     of the American Arbitration Association by one arbitrator appointed in
     accordance with said rules. The arbitrator shall apply California law,
     without reference to rules of conflicts of law or rules of statutory
     arbitration, to the resolution of any dispute. Judgment on the award
     rendered by the arbitrator may be entered in any court having jurisdiction
     thereof. Notwithstanding the foregoing, the parties may apply to any court
     of competent jurisdiction for preliminary or interim equitable relief, or
     to compel arbitration in accordance with this paragraph, without breach of
     this arbitration provision.

     Any notice required or permitted by this Agreement shall be in writing and
     shall be deemed sufficient upon receipt, when delivered personally or by
     courier, overnight delivery service or confirmed facsimile, or forty-eight
     (48) hours after being deposited in the regular mail as certified or
     registered mail (airmail if sent internationally) with postage prepaid, if
     such notice is addressed to the party to be notified at such party's
     address or facsimile number as set forth below, or as subsequently modified
     by written notice.
<PAGE>

               RITA Medical Systems, Inc.
               967 N. Shoreline Boulevard, Mountain View, CA 94043 USA
               Attn:   Barry Cheskin - President and CEO
               Fax:    650-390-8505

               Nissho Iwai Corporation
               4-5 Akasaka 2-chome, Minato-ku, Tokyo 107, Japan
               Attn:   Ryuichi Kumagai - General Manager
                       Medical Systems Department
               Fax:    03-3588-3975

               Nissho Iwai American Corporation
               1211 Avenue of the Americas, New York, NY10036, USA
               Attn:   Shin-ichi Kawaratani - Assistant Vise President
               Fax:    212-704-6961

     The provisions of this Agreement shall be deemed to be severable and the
     invalidity of any provision of this Agreement shall not affect the validity
     of the remaining provisions of this Agreement.

     No amendment or modification of this Agreement shall be binding on the
     parties unless made in writing expressly referring to this Agreement and
     signed by authorized representatives of each party.

     This Agreement is not assignable by either party in whole or in part
     without the prior written consent of the other party, and any attempted
     assignment without such approval shall be null and void, except that Seller
     may assign this Agreement to an individual or entity which acquires a
     controlling interest in Seller.

     This Agreement constitutes the entire agreement and understanding of the
     parties with respect to the subject matter of this Agreement and supersedes
     all prior discussions, agreements and understandings.

SIGNATURE PAGE FOLLOWS
<PAGE>

Both parties acknowledge and agree to all of the foregoing terms and conditions.
Until so executed by Distributors and Seller and returned to Seller, this
Agreement shall not be binding on either party, and unless executed by
Distributors and returned to Seller within ten days of the date set forth on the
first page hereof, this Agreement shall expire without further notice and shall
be null and void.

The parties executed this Agreement on the respective dates set forth below.

                              RITA MEDICAL SYSTEMS, INC.

                              /s/: Barry Cheskin
                              -------------------
                              By:       Barry Cheskin
                              Title:    President and CEO
                              Address:  967 N. Shoreline Blvd.
                                        Mountain View, CA 94043, USA

                              NISSHO IWAI CORPORATION

                               /s/: Ryuichi Kumagai
                              ---------------------
                              By:       Ryuichi Kumagai
                              Title:    General Manager
                              Address:  4-5, Akasaka 2-chome,
                                        Minato-ku, Tokyo 107, Japan

                              NISSHO IWAI AMERICAN CORPORATION

                              /s/: Shin-ichi Kawaratani
                              -------------------------
                              By:       Shin-ichi Kawaratani
                              Title:    Assistant Vise President
                              Address:  1211 Avenue of the Americas,
                                        New York, NY10036, USA
<PAGE>

                                   Exhibit A

                                   Territory

                                  South Korea
<PAGE>

                                   Exhibit B

                                   Products

                                  GENERATORS

     Model Number                              Part Number
     ------------                              -----------

     Model 500PA                               700-101082

                                  ELECTRODES

     Model Number          Part Number           Description
     ------------          -----------           -----------

     Model 30              700-100890            4 array, 3cm, 15cm
     Model 30              700-100852            4 array, 3cm, 25cm
     Model 70*

                                  ACCESSORIES

     Model Number                                Part Number
     ------------                                ------------
     Main Cable                                  700-101086
     Foot Switch                                 410-100453
     Dispersive Electrode                        700-100379
     Power Cord                                  TBD

At its sole discretion with sixty (60) days prior written notice:  (1) Seller
may discontinue any product on this list and (2) Seller may add additional
products to this list, provided that the list shall contain those Seller
products which are direct replacements for the current Products in applications
which the Seller approves in writing.

*     When, and if, such product is introduced for Korea
<PAGE>

                                   Exhibit C

                            Minimum Purchase Target

------------------------------------------------------------------------------
     Product              1st Sales Year    2nd Sales Year    3rd Sales Year
     -------              --------------    --------------    --------------
------------------------------------------------------------------------------
Model 500PA Generator          [***]            [***]             [***]

------------------------------------------------------------------------------
Model 30 Electrodes            [***]            [***]             [***]

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

*     Each generator is supplied with Power Cord, a Main Cable and a Footswitch
**    Each electrode is supplied with one Dispersive Electrode; if, and when the
Model 70 is introduced for Korea, both Model 30 and Model 70 purchases shall be
credited against the minimum purchase target

______________________________________
*** Material has been omitted pursuant to a request for confidential treatment,
and such Material has been filed separately with SEC.
<PAGE>

                                   Exhibit D

                               Pricing Schedule

--------------------------------------------------------------------------------
     Product                1st Sales Year     2nd Sales Year   3rd Sales Year
     -------                --------------     --------------   --------------
--------------------------------------------------------------------------------
  Model 500PA Generator*          [***]            [***]             [***]
--------------------------------------------------------------------------------
   Model 30 Electrodes**          [***]            [***]             [***]
--------------------------------------------------------------------------------
         Main Cable               [***]            [***]             [***]
--------------------------------------------------------------------------------
         Foot Switch              [***]            [***]             [***]
--------------------------------------------------------------------------------
   Dispersive Electrode           [***]            [***]             [***]
--------------------------------------------------------------------------------
         Power Cord               [***]            [***]             [***]
--------------------------------------------------------------------------------

*    Each generator is supplied with Power Cord, a Main Cable and a Foot Switch
**   Each Model 30 electrode is supplied with one Dispersive Electrode; Model
     70 pricing shall be the same as Model 30 pricing in the 1st, 2nd and 3rd
     Sales Years

+    Applies to first 1,000 [***]units; quantity discounts for 1st Sales Year
     only are as follows (if, and when, the Model 70 is introduced for Korea,
     both Model 30 and Model 70 purchases shall be credited against these
     quantity discounts):

            1,001/st/ - 1,999/th/ units        [***]
            2,000/th/ - 2,999/th/ units        [***]
            3,000/th/ + units                  [***]

Note that all part numbers are per Exhibit B and that terms are F.O.B. Seller's
manufacturing location.  All freight, insurance and other direct shipping
expense shall be borne by Distributors from Seller's manufacturing location.

_________________________________
*** Material has been omitted pursuant to a request for confidential treatment,
and such Material has been filed separately with SEC.
<PAGE>

                                   Exhibit E

                                 Complaint Form
Complaint Report Form               Complaint No._____

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

1.  Date Received:_____________________________________________________
2.  Received by:_______________________________________________________
3.  Complaint Acknowledgement Letter Sent:_____________________________
4.  Product Description:_______________________________________________ Lot No.
   _____________________________Model No.______________________
5.  Customer Name:_____________________________________________________
6.  Contact Person:____________ Telephone:_______________ Fax:_________
7.  Hospital/Address:__________________________________________________
__________________________________________________________________
--------------------------------------------------------------------------------
8. Nature of Complaint:
   ___________________________________________________________________________
   ___________________________________________________________________________
   _______________________________[ ]See Attached

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

9. Complete Medical Complaint Decision Tree (Form #160-101223).
--------------------------------------------------------------------------------
10. A.
    Treatment Date:______________________     C.  Device Returned
    Indication:__________________________           [ ] Yes, Date Returned:____
    Treatment Site:______________________           [ ] No
B.  Origin of Complaint                       D.   Confirmed Complaint?:
    [ ] Domestic          [ ] Clinical Study        [ ] Yes
    [ ] International     [ ] Literature            [ ] No
                                              E.   RMA Number: ________________
--------------------------------------------------------------------------------
11. Investigation:
    [ ] Yes
        By who:________________________   Date Complete:_______________________
        Results of Investigation :_____________________________________________
        _______________________________________________________________________
        ____________________________________________________[   ]See Attached
12. Corrective Action Number (if assigned): ___________________________________
13. Additional Information:____________________________________________________
--------------------------------------------------------------------------------
Complaint Response Sent:____________________
Approved by:__________________________                  __________
            Regulatory Affairs or Designated               Date
            ________________        __________
            Quality Assurance       Date
Date File Closed:_______________________
--------------------------------------------------------------------------------

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