Document:

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                                                                    Exhibit 10.4

                           RITA MEDICAL SYSTEMS, INC.

                        2000 DIRECTORS' STOCK OPTION PLAN
                        ---------------------------------

     1. Purposes of the Plan. The purposes of this Directors' Stock Option Plan
        --------------------
are to attract and retain the best available personnel for service as Directors
of the Company, to provide additional incentive to the Outside Directors of the
Company to serve as Directors, and to encourage their continued service on the
Board.

        All options granted hereunder shall be nonstatutory stock options.

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

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

        (b) "Change of Control" means a sale of all or substantially all of the
             -----------------
Company's assets, or a merger, consolidation or other capital reorganization of
the Company with or into another corporation, or any other transaction or series
of related transactions in which the Company's stockholders immediately prior
thereto own less than 50% of the voting stock of the Company (or its successor
or parent) immediately thereafter.

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

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

        (e) "Company" means RITA Medical Systems, Inc., a Delaware corporation.
             -------

        (f) "Continuous Status as a Director" means the absence of any
             -------------------------------
interruption or termination of service as a Director.

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

        (h) "Employee" means any person, including any officer or Director,
             --------
employed by the Company or any Parent or Subsidiary of the Company. The payment
of a director's fee by the Company shall not be sufficient in and of itself to
constitute "employment" by the Company.

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

        (j) "Option" means a stock option granted pursuant to the Plan. All
             ------
options shall be nonstatutory stock options (i.e., options that are not intended
to qualify as incentive stock options under Section 422 of the Code).

        (k) "Optioned Stock" means the Common Stock subject to an Option.
             --------------

        (l) "Optionee" means an Outside Director who receives an Option.
             --------

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        (m) "Outside Director" means a Director who is not an Employee.
             ----------------

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

        (o) "Plan" means this 2000 Directors' Stock Option Plan.
             ----

        (p) "Share" means a share of the Common Stock, as adjusted in accordance
             -----
with Section 11 of the Plan.

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

     3. Stock Subject to the Plan. Subject to the provisions of Section 11 of
        -------------------------
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is 500,000 Shares of Common Stock (the "Pool"). The Shares may be
                                                       ----
authorized, but unissued, or reacquired Common Stock.

     If an Option should expire or become unexercisable for any reason without
having been exercised in full, the unpurchased Shares which were subject thereto
shall, unless the Plan has been terminated, become available for future grant
under the Plan. In addition, any Shares of Common Stock that are retained by the
Company upon exercise of an Option in order to satisfy the exercise price for
such Option, or any withholding taxes due with respect to such exercise, shall
be treated as not issued and shall continue to be available under the Plan. If
Shares that were acquired upon exercise of an Option are subsequently
repurchased by the Company, such Shares shall not in any event be returned to
the Plan and shall not become available for future grant under the Plan.

     4. Administration of and Grants of Options under the Plan.
        ------------------------------------------------------

        (a) Administrator. Except as otherwise required herein, the Plan shall
            -------------
be administered by the Board.

        (b) Procedure for Grants. All grants of Options hereunder shall be
            --------------------
automatic and nondiscretionary and shall be made strictly in accordance with the
following provisions:

            (i)  No person shall have any discretion to select which Outside
Directors shall be granted Options or to determine the number of Shares to be
covered by Options granted to Outside Directors.

            (ii) Each individual who becomes an Outside Director after the
Effective Date of this Plan, as determined in accordance with Section 6 hereof,
shall be automatically granted an Option to purchase 25,000 Shares (the "Initial
                                                                         -------
Option") on the date on which such person first becomes an Outside Director,
------
whether through election by the stockholders of the Company or appointment by
the Board of Directors to fill a vacancy. An

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Outside Director who previously was an Employee shall not receive a grant under
this Section 4(b)(ii).

                    (iii) On the date of each Annual Meeting of the Company's
shareholders immediately following which an Outside Director is serving on the
Board, and provided that, as of such date, he or she shall have served on the
Board for at least six (6) months, each eligible Outside Director shall be
automatically granted an Option to purchase 10,000 Shares (the "Annual Option").
An Outside Director who previously was an Employee shall be eligible to receive
grants under this Section 4(b)(iii).

                    (iv)  Notwithstanding the provisions of subsections (ii) and
(iii) hereof, in the event that a grant would cause the number of Shares subject
to outstanding Options plus the number of Shares previously purchased upon
exercise of Options to exceed the Pool, then each such automatic grant shall be
for that number of Shares determined by dividing the total number of Shares
remaining available for grant by the number of Outside Directors receiving an
Option on the automatic grant date. Any further grants shall then be deferred
until such time, if any, as additional Shares become available for grant under
the Plan through action of the stockholders to increase the number of Shares
which may be issued under the Plan or through cancellation or expiration of
Options previously granted hereunder.

                    (v)   Notwithstanding the provisions of subsections (ii) and
(iii) hereof, any grant of an Option made before the Company has obtained
stockholder approval of the Plan in accordance with Section 17 hereof shall be
conditioned upon obtaining such stockholder approval of the Plan in accordance
with Section 17 hereof.

                    (vi)  The terms of each Initial Option granted hereunder
shall be as follows:

                          (1)  each Initial Option shall be exercisable only
while the Outside Director remains a Director of the Company, except as set
forth in Section 9 below;

                          (2)  the exercise price per Share shall be 100% of the
fair market value per Share on the date of grant of each Initial Option,
determined in accordance with Section 8 hereof;

                          (3)  each Initial Option shall vest and become
exercisable at the rate of 1/48 of the Shares subject to the Initial Option on
each monthly anniversary of the date of grant of the Initial Option.

                    (vii) The terms of each Annual Option granted hereunder
shall be as follows:

                          (1)  each Annual Option shall be exercisable only
while the Outside Director remains a Director of the Company, except as set
forth in Section 9 below;

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                          (2)  the exercise price per Share shall be 100% of the
fair market value per Share on the date of grant of each Annual Option,
determined in accordance with Section 8 hereof;

                          (3)  each Annual Option shall vest and become
exercisable at the rate of one hundred percent (100%) of the Shares subject to
the Annual Option on the day before the first anniversary of the date of grant
of the Annual Option.

               (c)  Powers of the Board. Subject to the provisions and
                    -------------------
restrictions of the Plan, the Board shall have the authority, in its discretion:
(i) to determine, upon review of relevant information and in accordance with
Section 8(b) of the Plan, the fair market value of the Common Stock; (ii) to
determine the exercise price per Share of Options to be granted, which exercise
price shall be determined in accordance with Section 8 of the Plan; (iii) to
interpret the Plan; (iv) to prescribe, amend and rescind rules and regulations
relating to the Plan; (v) to authorize any person to execute on behalf of the
Company any instrument required to effectuate the grant of an Option previously
granted hereunder; and (vi) to make all other determinations deemed necessary or
advisable for the administration of the Plan.

               (d)  Effect of Board's Decision. All decisions, determinations
                    --------------------------
and interpretations of the Board shall be final and binding on all Optionees and
any other holders of any Options granted under the Plan.

               (e)  Suspension or Termination of Option. If the Chief Executive
                    -----------------------------------
Officer or his or her designee reasonably believes that an Optionee has
committed an act of misconduct, such officer may suspend the Optionee's right to
exercise any option pending a determination by the Board (excluding the Outside
Director accused of such misconduct). If the Board (excluding the Outside
Director accused of such misconduct) determines an Optionee has committed an act
of embezzlement, fraud, dishonesty, nonpayment of an obligation owed to the
Company, breach of fiduciary duty or deliberate disregard of the Company rules
resulting in loss, damage or injury to the Company, or if an Optionee makes an
unauthorized disclosure of any Company trade secret or confidential information,
engages in any conduct constituting unfair competition, induces any Company
customer to breach a contract with the Company or induces any principal for whom
the Company acts as agent to terminate such agency relationship, neither the
Optionee nor his or her estate shall be entitled to exercise any Option
whatsoever. In making such determination, the Board of Directors (excluding the
Outside Director accused of such misconduct) shall act fairly and shall give the
Optionee an opportunity to appear and present evidence on Optionee's behalf at a
hearing before the Board or a committee of the Board.

          5.   Eligibility.  Options may be granted only to Outside Directors.
               -----------
All Options shall be automatically granted in accordance with the terms set
forth in Section 4(b) above. An Outside Director who has been granted an Option
may, if he or she is otherwise eligible, be granted an additional Option or
Options in accordance with such provisions.

               The Plan shall not confer upon any Optionee any right with
respect to continuation of service as a Director or nomination to serve as a
Director, nor shall it interfere in

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any way with any rights which the Director or the Company may have to terminate
his or her directorship at any time.

     6.   Term of Plan; Effective Date. The Plan shall become effective on the
          ----------------------------
effectiveness of the registration statement under the Securities Act of 1933, as
amended, relating to the Company's initial public offering of securities (the
"Effective Date"). It shall continue in effect for a term of ten (10) years
unless sooner terminated under Section 13 of the Plan.

     7.   Term of Options. The term of each Option shall be ten (10) years from
          ---------------
the date of grant thereof unless an Option terminates sooner pursuant to Section
9 below.

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

          (a)  Exercise Price. The per Share exercise price for the Shares to be
               --------------
issued pursuant to exercise of an Option shall be 100% of the fair market value
per Share on the date of grant of the Option.

          (b)  Fair Market Value. The fair market value shall be determined by
               -----------------
the Board; provided however that in the event the Common Stock is traded on the
Nasdaq National Market or listed on a stock exchange, the fair market value per
Share shall be the closing sales price on such system or exchange on the date of
grant of the Option (or, in the event that the Common Stock is not traded on
such date, on the immediately preceding trading date), as reported in The Wall
                                                                      --------
Street Journal, or if there is a public market for the Common Stock but the
--------------
Common Stock is not traded on the Nasdaq National Market or listed on a stock
exchange, the fair market value per Share shall be the mean of the bid and asked
prices of the Common Stock in the over-the-counter market on the date of grant,
as reported in The Wall Street Journal (or, if not so reported, as otherwise
               -----------------------
reported by the National Association of Securities Dealers Automated Quotation
("Nasdaq") System).

          (c)  Form of Consideration. The consideration to be paid for the
               ---------------------
Shares to be issued upon exercise of an Option shall consist entirely of cash,
check, other Shares of Common Stock having a fair market value on the date of
surrender equal to the aggregate exercise price of the Shares as to which the
Option shall be exercised (which, if acquired from the Company, shall have been
held for at least six months), or any combination of such methods of payment
and/or any other consideration or method of payment as shall be permitted under
applicable corporate law.

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

          (a)  Procedure for Exercise; Rights as a Stockholder. Any Option
               -----------------------------------------------
granted hereunder shall be exercisable at such times as are set forth in Section
4(b) above; provided however that no Options shall be exercisable prior to
stockholder approval of the Plan in accordance with Section 17 below has been
obtained.

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

                                      -5-

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                    An Option shall be deemed to be exercised when written
notice of such exercise has been given to the Company in accordance with the
terms of the Option by the person entitled to exercise the Option and full
payment for the Shares with respect to which the Option is exercised has been
received by the Company. Full payment may consist of any consideration and
method of payment allowable under Section 8(c) of the Plan. Until the issuance
(as evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the stock certificate evidencing
such Shares, no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. A share certificate for the number of Shares so acquired
shall be issued to the Optionee as soon as practicable after exercise of the
Option. No adjustment will be made for a dividend or other right for which the
record date is prior to the date the stock certificate is issued, except as
provided in Section 11 of the Plan.

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

               (b)  Termination of Continuous Status as a Director. If an
                    ----------------------------------------------
Outside Director ceases to serve as a Director, he or she may, but only within
ninety (90) days after the date he or she ceases to be a Director of the
Company, exercise his or her Option to the extent that he or she was entitled to
exercise it at the date of such termination. Notwithstanding the foregoing, in
no event may the Option be exercised after its term set forth in Section 7 has
expired. To the extent that such Outside Director was not entitled to exercise
an Option at the date of such termination, or does not exercise such Option (to
the extent he or she was entitled to exercise) within the time specified above,
the Option shall terminate and the Shares underlying the unexercised portion of
the Option shall revert to the Plan.

               (c)  Disability of Optionee. Notwithstanding Section 9(b) above,
                    ----------------------
in the event a Director is unable to continue his or her service as a Director
with the Company as a result of his or her total and permanent disability (as
defined in Section 22(e)(3) of the Code), he or she may, but only within twelve
(12) months from the date of such termination, exercise his or her Option to the
extent he or she was entitled to exercise it at the date of such termination.
Notwithstanding the foregoing, in no event may the Option be exercised after its
term set forth in Section 7 has expired. To the extent that he or she was not
entitled to exercise the Option at the date of termination, or if he or she does
not exercise such Option (to the extent he or she was entitled to exercise)
within the time specified above, the Option shall terminate and the Shares
underlying the unexercised portion of the Option shall revert to the Plan.

               (d)  Death of Optionee. In the event of the death of an Optionee:
                    -----------------
(A) during the term of the Option who is, at the time of his or her death, a
Director of the Company and who shall have been in Continuous Status as a
Director since the date of grant of the Option, or (B) three (3) months after
the termination of Continuous Status as a Director, the Option may be exercised,
at any time within twelve (12) months following the date of death, by the
Optionee's estate or by a person who acquired the right to exercise the Option
by bequest or inheritance, but only to the extent of the right to exercise that
had accrued at the date of death or the date of termination, as applicable.
Notwithstanding the foregoing, in no event may the Option be

                                      -6-

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exercised after its term set forth in Section 7 has expired. To the extent that
an Optionee was not entitled to exercise the Option at the date of death or
termination or if he or she does not exercise such Option (to the extent he or
she was entitled to exercise) within the time specified above, the Option shall
terminate and the Shares underlying the unexercised portion of the Option shall
revert to the Plan.

          10.  Nontransferability of Options. The Option may not be sold,
               -----------------------------
pledged, assigned, hypothecated, transferred or disposed of in any manner other
than by will or by the laws of descent or distribution or pursuant to a
qualified domestic relations order (as defined by the Code or the rules
thereunder). The designation of a beneficiary by an Optionee does not constitute
a transfer. An Option may be exercised during the lifetime of an Optionee only
by the Optionee or a transferee permitted by this Section.

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

               (a)  Adjustment. Subject to any required action by the
                    ----------
stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option, the number of Shares of Common Stock set forth in
Sections 4(b)(ii), (iii) and (iv) above, and the number of Shares of Common
Stock which have been authorized for issuance under the Plan but as to which no
Options have yet been granted or which have been returned to the Plan upon
cancellation or expiration of an Option, as well as the price per Share of
Common Stock covered by each such outstanding Option, shall be proportionately
adjusted for any increase or decrease in the number of issued Shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock (including any such change
in the number of Shares of Common Stock effected in connection with a change in
domicile of the Company) or any other increase or decrease in the number of
issued Shares of Common Stock effected without receipt of consideration by the
Company; provided however that conversion of any convertible securities of the
Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Option.

               (b)  Change of Control. In the event of any transaction that
                    -----------------
qualifies as a Change of Control and notwithstanding whether or not outstanding
Options are assumed, substituted for or terminated in connection with the
transaction, the vesting of each outstanding Option shall accelerate in full
such that each Optionee shall have the right to exercise his or her Option as to
all of the Optioned Stock, including Shares as to which the Option would not
otherwise be exercisable, immediately prior to consummation of the transaction.

               For purposes of this Section 11(b), an Option shall be considered
assumed, without limitation, if, at the time of issuance of the stock or other
consideration upon such Change of Control, each Optionee would be entitled to
receive upon exercise of an Option the same number and kind of shares of stock
or the same amount of property, cash or securities as the Optionee would have
been entitled to receive upon the occurrence of such transaction if the

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<PAGE>

Optionee had been, immediately prior to such transaction, the holder of the
number of Shares of Common Stock covered by the Option at such time (after
giving effect to any adjustments in the number of Shares covered by the Option
as provided for in this Section 11); provided however that if such consideration
received in the transaction was not solely common stock of the successor
corporation or its Parent, the Administrator may, with the consent of the
successor corporation, provide for the consideration to be received upon
exercise of the Option to be solely common stock of the successor corporation or
its Parent equal to the Fair Market Value of the per Share consideration
received by holders of Common Stock in the transaction.

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

          12.  Time of Granting Options. The date of grant of an Option shall,
               ------------------------
for all purposes, be the date determined in accordance with Section 4(b) hereof.
Notice of the determination shall be given to each Outside Director to whom an
Option is so granted within a reasonable time after the date of such grant.

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

               (a)  Amendment and Termination. The Board may amend or terminate
                    -------------------------
the Plan from time to time in such respects as the Board may deem advisable;
provided that, to the extent necessary and desirable to comply with Rule 16b-3
under the Exchange Act (or any other applicable law or regulation), the Company
shall obtain approval of the stockholders of the Company to Plan amendments to
the extent and in the manner required by such law or regulation.

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

          14.  Conditions Upon Issuance of Shares. Notwithstanding any other
               ----------------------------------
provision of the Plan or any agreement entered into by the Company pursuant to
the Plan, the Company shall not be obligated, and shall have no liability for
failure, to issue or deliver any Shares under the Plan unless such issuance or
delivery would comply with the legal requirements relating to the administration
of stock option plans under applicable U.S. state corporate laws, U.S. federal
and applicable state securities laws, the Code, any stock exchange or Nasdaq
rules or regulations to which the Company may be subject and the applicable laws
of any other country or jurisdiction where Options are granted under the Plan,
as such laws, rules, regulations and requirements shall be in place from time to
time (the "Applicable Laws"). Such compliance shall be determined by the Company
           ---------------
in consultation with its legal counsel.

                                      -8-

<PAGE>

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

          15.  Reservation of Shares. The Company, during the term of this Plan,
               ---------------------
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

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

          17.  Stockholder Approval. If required by the Applicable Laws,
               --------------------
continuance of the Plan shall be subject to approval by the stockholders of the
Company. Such stockholder approval shall be obtained in the manner and to the
degree required under the Applicable Laws.

                                      -9-

<PAGE>

                           RITA MEDICAL SYSTEMS, INC.

                        2000 DIRECTORS' STOCK OPTION PLAN

                          NOTICE OF STOCK OPTION GRANT
                          ----------------------------

(Optionee)
(OptioneeAddress1)
(OptioneeAddress2)

         You have been granted an option to purchase Common Stock of RITA
Medical Systems, Inc. (the "Company") as follows:
                            -------

         Date of Grant                          (GrantDate)

         Vesting Commencement Date              (VestingStartDate)

         Exercise Price per Share               (ExercisePrice)

         Total Number of Shares Granted         (SharesGranted)

         Total Exercise Price                   (TotalExercisePrice)

         Expiration Date                        (ExpirDate)

         Vesting Schedule:                      This Option may be exercised, in
         ----------------                       whole or in part, in accordance
                                                with the following schedule:
                                                _________ of the Option Shares
                                                shall vest and be exercisable on
                                                each _____ anniversary of the
                                                Vesting Commencement Date.

         Termination Period:                    This Option may be exercised for
         ------------------                     90 days after termination of
                                                Optionee's Continuous Status as
                                                a Director, or such longer
                                                period as may be applicable upon
                                                death or Disability of Optionee
                                                as provided in the Plan, but in
                                                no event later than the
                                                Expiration Date as provided
                                                above.

<PAGE>

     By your signature and the signature of the Company's representative below,
you and the Company agree that this option is granted under and governed by the
terms and conditions of the 2000 Directors' Stock Option Plan and the
Nonstatutory Stock Option Agreement, all of which are attached and made a part
of this document.

OPTIONEE:                              RITA MEDICAL SYSTEMS, INC.

____________________________           By:____________________________
Signature
                                       Title:_________________________
____________________________
Print Name

                                      -2-

<PAGE>

                           RITA MEDICAL SYSTEMS, INC.

                       NONSTATUTORY STOCK OPTION AGREEMENT
                       -----------------------------------

     1. Grant of Option. The Board of Directors of the Company hereby grants to
        ---------------
the Optionee named in the Notice of Stock Option Grant attached as Part I of
this Agreement (the "Optionee"), an option (the "Option") to purchase a number
                     --------                    ------
of Shares, as set forth in the Notice of Stock Option Grant, at the exercise
price per share set forth in the Notice of Stock Option Grant (the "Exercise
                                                                    --------
Price"'), subject to the terms and conditions of the 2000 Directors' Stock
-----
Option Plan (the "Plan"), which is incorporated herein by reference.
                  ----
(Capitalized terms not defined herein shall have the meanings ascribed to such
terms in the Plan.) In the event of a conflict between the terms and conditions
of the Plan and the terms and conditions of this Nonstatutory Stock Option
Agreement, the terms and conditions of the Plan shall prevail.

     2. Exercise of Option.
        ------------------

        (a) Right to Exercise. This Option is exercisable during its term in
            -----------------
accordance with the Vesting Schedule set out in the Notice of Stock Option Grant
and the applicable provisions of the Plan and this Nonstatutory Stock Option
Agreement. In the event of Optionee's death, disability or other termination of
Optionee's employment or consulting relationship, the exercisability of the
Option is governed by the applicable provisions of the Plan and this
Nonstatutory Stock Option Agreement.

        (b) Method of Exercise. This Option is exercisable by delivery of an
            ------------------
exercise notice, in the form attached as Exhibit A (the "Exercise Notice"),
                                         ---------       ---------------
which shall state the election to exercise the Option, the number of Shares in
respect of which the Option is being exercised (the "Exercised Shares"), and
                                                     ----------------
such other representations and agreements as may be required by the Company
pursuant to the provisions of the Plan. The Exercise Notice shall be signed by
the Optionee and shall be delivered in person or by certified mail to the
Secretary of the Company. The Exercise Notice shall be accompanied by payment of
the aggregate Exercise Price as to all Exercised Shares. This Option shall be
deemed to be exercised upon receipt by the Company of such fully executed
Exercise Notice accompanied by such aggregate Exercise Price.

        No Shares shall be issued pursuant to the exercise of this Option unless
such issuance and exercise complies with all relevant provisions of law and the
requirements of any stock exchange or quotation service upon which the Shares
are then listed. Assuming such compliance, for income tax purposes the Exercised
Shares shall be considered transferred to the Optionee on the date the Option is
exercised with respect to such Exercised Shares.

     3. Method of Payment. Payment of the aggregate Exercise Price shall be by
        -----------------
any of the following, or a combination thereof, at the election of the Optionee:

        (a) cash;

        (b) check;

<PAGE>

        (c) delivery of a properly executed exercise notice together with such
other documentation as the Administrator and the broker, if applicable, shall
require to effect an exercise of the Option and delivery to the Company of the
sale or loan proceeds required to pay the exercise price; or

        (d) surrender of other Shares which (i) in the case of Shares acquired
upon exercise of an option, have been owned by the Optionee for more than six
(6) months on the date of surrender, and (ii) have a Fair Market Value on the
date of surrender equal to the aggregate Exercise Price of the Exercised Shares.

     4. Non-Transferability of Option. This Option may not be transferred in any
        -----------------------------
manner otherwise than by will or by the laws of descent or distribution or
pursuant to a domestic relations order (as defined by the Code or the rules
thereunder) and may be exercised during the lifetime of Optionee only by the
Optionee or a transferee permitted by Section 10 of the Plan. The terms of the
Plan and this Nonstatutory Stock Option Agreement shall be binding upon the
executors, administrators, heirs, successors and assigns of the Optionee.

     5. Term of Option. This Option may be exercised only within the term set
        --------------
out in the Notice of Stock Option Grant, and may be exercised during such term
only in accordance with the Plan and the terms of this Nonstatutory Stock Option
Agreement.

     6. Tax Consequences. Set forth below is a brief summary of certain federal
        ----------------
tax consequences relating to this Option under the law in effect as of the date
of grant. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND
REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT HIS OR HER OWN TAX
ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

        (a) Exercising the Option. Since this Option does not qualify as an
            ---------------------
incentive stock option under Section 422 of the Code, the Optionee may incur
regular federal income tax liability upon exercise. The Optionee will be treated
as having received compensation income (taxable at ordinary income tax rates)
equal to the excess, if any, of the fair market value of the Exercised Shares on
the date of exercise over their aggregate Exercise Price.

        (b) Disposition of Shares. If the Optionee holds the Option Shares for
            ---------------------
more than one year, gain realized on disposition of the Shares will be treated
as long-term capital gain for federal income tax purposes. The long-term capital
gain will be taxed for federal income tax purposes at a maximum rate of 20
percent.

                                       -2-

<PAGE>

     By your signature and the signature of the Company's representative below,
you and the Company agree that this Option is granted under and governed by the
terms and conditions of the Plan and this Nonstatutory Stock Option Agreement.
Optionee has reviewed the Plan and this Nonstatutory Stock Option Agreement in
their entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Nonstatutory Stock Option Agreement and fully understands all
provisions of the Plan and Nonstatutory Stock Option Agreement. Optionee hereby
agrees to accept as binding, conclusive and final all decisions or
interpretations of the Administrator upon any questions relating to the Plan and
Nonstatutory Stock Option Agreement.

                                     RITA MEDICAL SYSTEMS, INC.

_________________________________    By:_________________________________
(Optionee)
                                     Title:______________________________

                                CONSENT OF SPOUSE
                                -----------------

     The undersigned spouse of Optionee has read and hereby approves the terms
and conditions of the Plan and this Nonstatutory Stock Option Agreement. In
consideration of the Company's granting his or her spouse the right to purchase
Shares as set forth in the Plan and this Nonstatutory Stock Option Agreement,
the undersigned hereby agrees to be irrevocably bound by the terms and
conditions of the Plan and this Nonstatutory Stock Option Agreement and further
agrees that any community property interest shall be similarly bound. The
undersigned hereby appoints the undersigned's spouse as attorney-in-fact for the
undersigned with respect to any amendment or exercise of rights under the Plan
or this Nonstatutory Stock Option Agreement.

                                               ________________________________
                                               Spouse of Optionee

                                       -3-

<PAGE>

                                    EXHIBIT A

                               NOTICE OF EXERCISE
                               ------------------

To:        RITA Medical Systems, Inc.

Attn:      Stock Option Administrator

Subject:   Notice of Intention to Exercise Stock Option
           --------------------------------------------

     This is official notice that the undersigned ("Optionee") intends to
                                                    --------
exercise Optionee's option to purchase __________ shares of RITA Medical
Systems, Inc. Common Stock, under and pursuant to the Company's 2000 Directors'
Stock Option Plan and the Nonstatutory Stock Option Agreement dated
_______________, as follows:

     Grant Number:              _______________________________

     Date of Purchase:          _______________________________

     Number of Shares:          _______________________________

     Purchase Price:            _______________________________

     Method of Payment of
     Purchase Price:            _______________________________

     Social Security No.:       _______________________________

     The shares should be issued as follows:

            Name:     _________________________

            Address:  _________________________

                      _________________________

                      _________________________

            Signed:   _________________________

            Date:     _________________________

                                      -4-<PAGE>

                                                                   EXHIBIT 10.55

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT
                    -----------------------------------------

         This Amended and Restated Employment Agreement (the "Agreement") is
entered into by and between Advanced Micro Devices, Inc. ("AMD") and Hector Ruiz
("Executive"). AMD and Executive may be referred to collectively in the
Agreement as the "Parties."

         WHEREAS, AMD and Executive entered into that certain Employment
Agreement dated January 13, 2000 (the "Original Employment Agreement"); and

         WHEREAS, the Original Employment Agreement was supplemented by that
certain First Supplement to Employment Contract dated December 22, 2000, by and
between the Parties, as such First Supplement to Employment Contract was
subsequently amended by agreement of the Parties (such First Supplement to
Employment Contract as amended being collectively referred to herein as the
"Supplement"); and

         WHEREAS, AMD and Executive desire to amend and restate the Original
Employment Agreement and the Supplement, and in connection therewith, to
incorporate the provisions of the Original Employment Agreement, as amended and
restated, and the Supplement, as amended and restated, into one agreement, all
as hereinafter provided;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements herein contained, the Parties agree as follows:

         1. Position. Executive will be employed by AMD as its President and
            --------
Chief Operating Officer, effective commencing upon the date of Executive's
resignation from his immediately prior employer (the "Commencement Date"),
reporting directly to W. J. Sanders III. During his AMD employment, Executive
will also be a member of the Office of the CEO. Executive will be elected to the
AMD Board of Directors at the first scheduled Board Meeting following the
Commencement Date. During the term of his employment, Executive will be expected
to devote his full working time and attention to the business of AMD, and he
will not render services to any other business without the prior approval of the
Board of Directors, or, directly or indirectly, engage or participate in any
business that is competitive in any manner with the business of AMD.
Notwithstanding the foregoing, Executive may remain a director of businesses
with respect to which he is a director on the Commencement Date. Executive will
also be expected to comply with and be bound by AMD's operating policies,
procedures and practices that are from time to time in effect during the term of
his employment.

         2. Base Salary. Executive's initial base annual salary will be
            -----------
$750,000, payable in accordance with AMD's normal payroll practices with such
payroll deductions and withholdings as are required by law. Executive's base
salary will be reviewed on an annual basis by the Compensation Committee of the
Board of Directors and increased in April 2001 and from time to time thereafter,
in the discretion of the Board of Directors.

          3. Bonus. Executive's bonus each year will be equal to 0.3% of AMD's
             -----
Adjusted Operating Profit ("AOP") for that fiscal year in excess of 20% of AMD's
AOP for the

<PAGE>

immediately preceding fiscal year, subject to a maximum award of $5M in any
year. Since AMD will report a loss for 1999, Executive's bonus for FY2000 will
be equal to 0.3% of AOP for FY2000. AMD will guarantee that Executive's FY2000
bonus will be no less than $500,000.

         4.  Stock Options.
             -------------

                  a. On the Commencement Date, the Compensation Committee of the
         Board of Directors shall grant Executive a nonqualified stock option to
         purchase 1,000,000 shares of AMD common stock at an exercise price
         equal to the closing price of the common stock on the Commencement Date
         (the "Initial Option"), the schedule of which is attached as Exhibit A.
                                                                      ---------
         This Initial Option will vest and become exercisable over a four-year
         period, with 250,000 shares vesting and becoming exercisable on each
         anniversary of the Commencement Date.

                  b. Commencing in April 2001, Executive will be granted
         annually nonqualified stock options to purchase 250,000 shares of AMD
         common stock at an exercise price equal to the closing price of the
         common stock on the grant date (the "Additional Options"). These
         Additional Options will each vest in two equal annual installments such
         that Executive will vest in 250,000 shares of AMD common stock each
         year commencing in 2005.

         5.       Retirement Benefit Replacement.
                  ------------------------------

                  a. Lump Sum Benefit. On or before the time Executive attains
                     ----------------
         age 57 on December 25, 2002, AMD will provide him with a lump sum cash
         benefit of $3,727,020 (the "Retirement Benefit Amount" or "RBA"), which
         is estimated to be the current projected benefit available to Executive
         under the Motorola Executive Incentive Plan.

                  b. Payment of RBA to Executive.  The RBA will be paid as
                     ---------------------------
                  follows:

                     (i)   Establishment of Trust. Upon Executive's attainment
                           ----------------------
                    of age 55 in December of 2000, AMD will establish a secular
                    trust in Executive's name (the "Trust") pursuant to a Trust
                    Agreement for the Hector Ruiz/Advanced Micro Devices, Inc.
                    Supplemental Retirement Benefit (the "Trust Agreement")
                    among AMD, Executive and Wells Fargo Bank, N.A. ("Trustee").

                     (ii)  Partial Payment of RBA Into the Trust. In January of
                           -------------------------------------
                    2001, Executive shall have the right, without restriction,
                    to receive a lump sum payment from AMD in the amount of
                    $3,200,000, as partial payment of the RBA. Executive hereby
                    directs that at such time, AMD, as Executive's agent, shall
                    deposit such lump sum payment with the Trustee. Upon such
                    deposit, such lump sum payment shall become the principal of
                    the Trust under the Trust Agreement.

                                       2

<PAGE>

                           (iii) Payment of Entire RBA Amount. Payments to
                                 ----------------------------
                  Executive of the principal of the Trust and any income or
                  earnings on amounts held in the Trust shall be made at such
                  times and in such amounts as provided in the Trust Agreement.
                  If after such payments have been made to Executive the
                  aggregate amount of such payments is less than the RBA, AMD
                  agrees to pay to Executive on the date of the last of such
                  payments the amount of such deficiency, so that on such date
                  Executive has received the total RBA.

                  c.       Reimbursement to Executive for Certain Tax
                           ------------------------------------------
          Liabilities. Within thirty (30) days after the end of each calendar
          -----------
          quarter of the calendar years 2001 and 2002 (each, a "Quarter"), AMD
          will pay directly to, or on behalf and for the benefit of, Executive
          an amount equal to the "Tax Reimbursement Payment" (as hereinafter
          defined) with respect to any amounts paid by AMD to the Trust during
          such Quarter (which amounts shall, in the case of the first calendar
          quarter of 2001, include, without limitation, the deposit made with
          the Trustee pursuant to Section 5(b)(ii)), any income or earnings
          during such Quarter on amounts held in the Trust, and/or any payments
          by AMD to Executive during such Quarter with respect to the RBA
          (collectively, the "Taxable Income Inclusion"). Any Tax Reimbursement
          Payment will be included in Executive's IRS Form W-2 for the year in
          which payment thereof is made to, or on behalf and for the benefit of,
          Executive. The schedule for the Tax Reimbursement Payments is:

                  April 30, 2001;
                  July 30, 2001;
                  October 30, 2001;
                  January 30, 2002;
                  April 30, 2002;
                  July 30, 2002;
                  October 30, 2002; and
                  January 30, 2003

                  The amount of a "Tax Reimbursement Payment" for a Quarter
         shall be equal to an amount equal to the excess of (i) an amount
         determined by dividing (A) the amount of the Taxable Income Inclusion
         for such Quarter, by (B) one minus the sum of the following expressed
         as a decimal: (I) the highest Federal individual marginal income tax
         rate for the calendar year which includes such Quarter, plus (II) the
         highest state individual marginal income tax rate to which such Taxable
         Income Inclusion is subject for the calendar year which includes such
         Quarter, plus (III) the Hospital (Medicare) Insurance tax rate under
         3101(b) of the Internal Revenue Code of 1986, as amended (the "Code"),
         or any corresponding successor statute, that is in effect for such
         Quarter, over (ii) the amount of such Taxable Income Inclusion.

                  d.       Amount Payable By Executive to AMD.  If Executive
                           ----------------------------------
         receives payments with respect to the RBA, including Tax Reimbursement
         Payments, whether from the Trust and/or AMD, prior to his attainment of
         age 57, and

                                       3

<PAGE>

         Executive's employment hereunder is terminated by AMD for "Cause" (as
         hereinafter defined), then Executive agrees to pay to AMD the amount
         of such payments, including any Tax Reimbursement Payments made
         directly to Executive or on his behalf, as follows: (i) to the extent
         such payment(s) is/are received by Executive on or before the date of
         such termination, Executive shall pay the amount of such paymen(s) to
         AMD within three business days after the date of such termination, and
         (ii) to the extent such payment(s) is/are received by Executive after
         the date of such termination, Executive shall pay the amount of such
         payment(s) to AMD within three business days after the date of such
         receipt. If Executive receives payment(s) from the Trust in excess of
         the RBA at his attainment of age 57, he agrees to pay to AMD within
         three business days of his receipt of such payment(s) an amount equal
         to such excess.

         6.  Other Benefits.  Executive will be entitled to the following
             --------------
         additional benefits:

                  a. Executive will be eligible for the normal vacation, health
         insurance, 401(k), Employee Stock Purchase Plan and other benefits
         offered to all AMD senior executives of similar rank and status.

                  b.  Executive will be eligible for other employee benefits as
         set forth in Exhibit B of the Agreement.
                      ---------

         7.  At-Will Employment and Termination.  Executive's employment with
             ----------------------------------
AMD will be at-will and may be terminated by Executive or by AMD at any time for
any reason as follows:

                  a. Executive may terminate his employment upon written notice
         to the Board of Directors within ten (10) days following a
         determination no later than December 31, 2001 by such Board of
         Directors that he will not become Chief Executive Officer of AMD
         following the Company's 2002 Annual Meeting (a "Specific Constructive
         Termination");

                  b. Executive may terminate his employment upon written notice
         to the Board of Directors at any time in his discretion. ("Voluntary
         Termination");

                  c. AMD may terminate Executive's employment upon written
         notice to him at any time following a determination by the Board of
         Directors that there is "Cause," as defined below, for such termination
         ("Termination for Cause"); or

                  d. AMD may terminate Executive's employment upon written
         notice to him at any time in the sole discretion of the Board of
         Directors without a determination that there is Cause for such
         termination ("Termination without Cause").

         8.  Definitions.  As used in this Agreement, the following terms have
             -----------
the following meanings:

                                       4

<PAGE>

                  a. "Cause" means the termination of Executive's employment by
         AMD for repeated failure to perform assigned duties after being
         notified in writing of such failure with an opportunity to correct, or
         if Executive is determined by a court of law or pursuant to Section 13
         below to have committed a willful act of embezzlement, fraud or
         dishonesty which resulted in material loss, material damage or material
         injury to AMD.

                  b. "Change in Control" means a change in control of a nature
         which would be required to be reported in response to Item 6(e) of
         Schedule 14A of Regulation 14A promulgated under the Securities
         Exchange Act of 1934, as amended ("Exchange Act") or in response to any
         other form or report to the Securities and Exchange Commission or any
         stock exchange on which AMD's shares are listed that requires the
         reporting of a change of control. In addition, a Change of Control
         shall be deemed to have occurred if (i) any "person" (as such term is
         used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the
         beneficial owner, directly or indirectly, of securities of AMD
         representing 35% or more of the combined voting power of AMD's then
         outstanding securities; or (ii) in any two year period, individuals who
         were members of AMD's Board of Directors at the beginning of such
         period plus each new director whose election or nomination for election
         was approved by at least two-thirds of the directors in office
         immediately prior to such election or nomination, cease for any reason
         to constitute at least a majority of the Board of Directors, or (iii) a
         majority of the members of the Board of Directors in office prior to
         the happening of any event and who are still in office after such
         event, determines in its sole discretion within one year after such
         event, that as a result of such event there has been a Change of
         Control.

         9. Separation Benefits. Upon termination of Executive's employment with
            -------------------
AMD for any reason, he will receive payment for all salary and vacation accrued
but unpaid to the date of the termination of employment, and his benefits will
be continued under AMD's then existing benefit plans and policies for so long as
provided under the terms of such plans and policies and as required by
applicable law. Under certain circumstances, Executive will also be entitled to
receive severance benefits as set forth below, but he will not be entitled to
any other compensation, award or damages with respect to his employment or
termination of employment.

                  a. In the event of a Voluntary Termination or Termination for
         Cause, Executive will not be entitled to any cash severance benefits or
         additional vesting of options. Executive also will not be entitled to
         any Retirement Benefit Amount, provided that upon his Voluntary
         Termination following attainment of age 55, Executive will be entitled
         to (i) a lump sum payment of the Retirement Benefit Amount that would
         otherwise be payable to him upon his attaining age 57, and (ii) all Tax
         Reimbursement Payments provided for under Section 5 of this Agreement.

                                       5

<PAGE>

              b.           (i)   In the event of a Termination without Cause
         within three years of the Commencement Date, Executive will be entitled
         to (A) a single lump sum severance payment equal to one year of his
         current annual base salary (less applicable deductions and
         withholdings), (B) acceleration of the vesting and exercisability of
         that portion of his Initial Option that would have become vested within
         twelve months following his employment termination, (C) a lump sum
         payment of the Retirement Benefit Amount (regardless of his age on
         date of termination), otherwise payable to him at age 57, and (D) all
         Tax Reimbursement Payments provided for under Section 5 of this
         Agreement.

                           (ii)  In the event of a Specific Constructive
         Termination, Executive will be entitled to (A) a single lump sum
         severance payment equal to two years of his current annual base salary
         (less applicable deductions and withholdings), (B) acceleration of the
         vesting and exercisability of that portion of his Initial Option that
         would have become vested within twenty-four months following
         notification that he would not become Chief Executive Officer of AMD,
         (C) a lump sum payment of the Retirement Benefit Amount (regardless of
         his age on date of termination), otherwise payable to him at age 57,
         and (D) all Tax Reimbursement Payments provided for under Section 5 of
         this Agreement.

                           (iii) In the event of a Constructive Termination or
         Termination without Cause in each case following a Change in Control,
         Executive will be entitled to (A) a single lump sum severance payment
         equal to the sum of (x) three years current annual base salary and (y)
         the average of his two highest bonuses in the five years preceding
         termination of employment (less applicable deductions and
         withholdings), (B) full acceleration of the vesting and exercisability
         of his Initial Option and any Additional Options, (C) a lump sum
         payment of the Retirement Benefit Amount (regardless of his age on date
         of termination), otherwise payable to him at age 57, and (D) all Tax
         Reimbursement Payments provided for under Section 5 of this Agreement.
         For purposes of this Section 9(b)(iii), "Constructive Termination"
         shall mean a resignation by Executive due to any diminution or adverse
         change in the circumstances of his employment as determined in good
         faith by Executive, including, without limitation, his reporting
         relationships, job description, duties, responsibilities, compensation,
         prerequisites, office or location of employment.

                  c. If all or any portion of the amounts payable to Executive
         on his behalf under this Agreement or otherwise are subject to the
         excise tax imposed by Section 4999 of the Internal Revenue Code of
         1986, as amended (or similar state tax and/or assessment), AMD shall
         pay to Executive an amount necessary to place him in the same after-tax
         position as he would have been in had no such excise tax been imposed.
         The amount payable pursuant to the preceding sentence shall be
         increased to the extent necessary to pay income and excise taxes due on
         such amount. The determination of the amount of any such tax indemnity
         shall be made by the independent accounting firm employed by AMD
         immediately prior to the Change of Control.

                                       6

<PAGE>

                  d.  No payments due to Executive under this Section 9 shall be
         subject to mitigation or offset.

         10. Restoration Payments. AMD will work with Executive and Motorola
             --------------------
senior management to avoid any forfeiture of Executive's 1999 Annual Bonus from
Motorola and to avoid any forfeiture of any gains attributable to Executive's
46,667 vested Motorola stock options.

                  a. In the event Executive forfeits any portion of his Motorola
         1999 Annual Bonus, AMD will pay an equivalent amount to him (not to
         exceed $500,000) on the date Executive provides evidence of such
         forfeiture.

                  b. In the event Executive forfeits any gains attributable to
         his 46,667 vested Motorola stock options, AMD will pay an amount to him
         equal to the lesser of (i) the aggregate amount of the forfeiture by
         him of such gains or (ii) the aggregate spread on shares subject to the
         option based on the difference between $52 per share and the closing
         price of Motorola common stock on the New York Stock Exchange on the
         Commencement Date, in either case on the date Executive provides
         evidence of such forfeiture.

                  c. Executive shall be required to make reasonable efforts
         (including, but not limited to, at the request of AMD after
         consultation with him, commencement of litigation for which AMD will
         pay reasonable costs) to avoid the above forfeitures or to reinstate
         any forfeited benefits, and he shall be required to reimburse AMD if
         such amounts are subsequently reinstated by Motorola.

                  d. In the event of a Voluntary Termination or Termination for
         Cause within two years of the Commencement Date, Executive shall be
         required to repay the full amount of any payments by AMD pursuant to
         this Section 10.

         11. Confidential Information and Invention Assignment Agreement. Upon
             -----------------------------------------------------------
Executive's commencement of employment with AMD, he will be required to sign
AMD's standard form of Nondisclosure Agreement to protect AMD's confidential
information and intellectual property.

         12. Nonsolicitation. During the term of Executive's employment with AMD
             ---------------
and for one year thereafter, he will not, on behalf of himself or any third
party, solicit or attempt to induce any employee of AMD to terminate his or her
employment with AMD.

         13. Arbitration. The Parties agree that any dispute regarding the
             -----------
interpretation or enforcement of this Agreement shall be decided by
confidential, final and binding arbitration conducted in Austin, Texas by
Judicial Arbitration and Mediation Services under the then existing rules,
rather than by litigation in court trial by jury, administrative proceeding or
in any other forum.

                                       7

<PAGE>

         14.  Miscellaneous.
              -------------

                  a.  Absence of Conflicts.  Executive represents that upon the
                      --------------------
         Commencement Date, his performance of his duties under this Agreement
         will not breach any other agreement as to which he is a party.

                  b.  Successors. This Agreement is binding on and may be
                      ----------
         enforced by AMD and its successors and assigns, and is binding on and
         may be enforced by Executive and his heirs and legal representatives.
         Any successors to AMD or substantially all of its business (whether by
         purchase, merger, consolidation or otherwise) will in advance assume in
         writing and be bound by all of AMD's obligations under this Agreement.

                  c.  Notices. Notices under this Agreement must be in writing
                      -------
         and will be deemed to have been given when personally delivered or two
         days after mailed by U.S. registered or certified mail, return receipt
         requested and postage prepaid. Mailed notices to Executive will be
         addressed to him at the home address that he will have most recently
         communicated to AMD in writing. Notices to AMD will be addressed to its
         General Counsel at AMD's corporate headquarters.

                  d.  Waiver. No provision of this Agreement will be modified or
                      ------
         waived except in writing signed by Executive and an officer of AMD duly
         authorized by its Board of Directors. No waiver by either of the
         Parties of any breach of this Agreement will be considered a waiver of
         any other breach of this Agreement.

                  e.  Entire Agreement. This Agreement, including the attached
                      ----------------
         exhibits, and the Trust Agreement represent the entire agreement
         between the Parties concerning the subject matter of Executive's
         employment by AMD and supersedes and incorporates any and all prior
         agreements, both written or oral, including but not limited to the
         Original Employment Agreement and the Supplement.

                  f.  Governing Law.  This Agreement will be governed by the
                      -------------
laws of the State of California without reference to conflict of laws
provisions.

                                       8

<PAGE>

                  g.  Counterparts.  This Agreement may be signed in
                      ------------
         counterparts, and the counterparts, when taken together, shall
         constitute a complete document.

         IN WITNESS WHEREOF, AMD and Executive have executed this Agreement on
the dates shown below, but effective as of January 13, 2000,

ADVANCED MICRO DEVICES, INC.

By:      /s/ Stan Winvick
     ----------------------
         Stan Winvick
Its Senior Vice President, Human Resources

Dated:         9/10/01
         ------------------

HECTOR RUIZ

By:      /s/ Hector Ruiz
     ----------------------
         Hector Ruiz

Dated:        9/19/01
         ------------------

                                       9

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