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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>UNITED
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      8-K</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>Current
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of
      1934</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Date
      of
      Report</font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">(Date
      of
      earliest event reported):</font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>
      January 31, 2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>RITA
      Medical Systems, Inc.</strong></font></div>
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      name of registrant as specified in its charter)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">(Commission
      File Number)</font></div>
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                or other jurisdiction of incorporation)</font></div>
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      appropriate box below if the Form 8-K filing is intended to simultaneously
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      General
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01 </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>Entry
      into a Material Definitive Agreement.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">On
      January
      31, 2006, RITA Medical Systems, Inc., a Delaware corporation (the &#8220;Company&#8221;),
      entered into a Revolving Credit and Security Agreement (the &#8220;Credit Agreement&#8221;)
      for a revolving line of credit with CapitalSource Finance LLC (&#8220;CapitalSource&#8221;).
      A copy of the Credit Agreement is attached hereto as Exhibit 10.92.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">The
      Credit
      Agreement provides for a revolving line of credit of up to $7,000,000. The
      description of the material terms of the Credit Agreement included in Item
      2.03
      to this Current Report on Form 8-K is incorporated by reference into this Item
      1.01.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>Item
      2.03 </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>Creation
      of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
      Arrangement of a Registrant.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">As
      discussed in Item 1.01 above, on January 31, 2006, the Company entered into
      a
      Credit Agreement with CaptialSource. The Credit Agreement provides for a
      revolving credit facility in the&#160;principal amount of up to $7,000,000. The
      amout of principal available for the Company to borrow at any time is limited
      to
      the aggregate of (i) varying percentages of the amount of the Company's eligible
      receivables and (ii) varying percentages of the amount of the Company's eligible
      finished goods inventory. The applicable percentages are determined based on
      the
      level of the Company's EBITDA (as defined in the Credit Agreement) for the
      prior
      quarter and its inventory turns ratio. In addition, the amount otherwise
      available to borrow based on the aforementioned criteria is required to be
      reduced by a required liquidity reserve of between $1,000,000 to $1,500,000
      depending on the level of the Company's EBITDA (as defined in the Credit
      Agreement) for the prior quarter.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">The
      obligations under the Credit Agreement are secured by a security interest in
      substantially all of the tangible and intangible assets of the Company and
      its
      subsidiaries. The Credit Agreement provides for the use of a lockbox for the
      collection of the Company's receivables. Borrowings under the revolving credit
      facility bear interest at a floating rate equal to Citibank, N.A.&#8217;s prime rate
      (the &#8220;Prime Rate&#8221;) plus 1.25%, provided, however, that the Prime Rate shall not
      be less than 7.25%. Interest on advances is payable on the first day of each
      calendar month. The full amount borrowed under the revolving credit facility
      will mature on the earlier of (i) January 31, 2009 or (ii) 30 days before the
      maturity date of the debt in the Senior Subordination Agreement, dated as of
      January 31, 2005, by and among Atlas Master Fund, Ltd.
      ("Atlas"),&#160;CapitalSource and the Company (the "Subordination Agreement").
      Pursuant to the terms of the Subordination Agreement, the claims, demands,
      rights and remedies of Atlas were subordinated to the claims, rights and
      remedies of CapitalSource. A copy of the&#160;Subordination Agreement is
      attached hereto as Exhibit 10.93.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">The
      Credit
      Agreement also includes requirements to maintain financial covenants in order
      to
      be eligible to borrow including (i) a minimum level quarterly EBITDA (as defined
      in the Credit Agreement) of ($325,000) during 2006, ($150,000) during 2007,
      and
      $62,500 during 2008, and (ii) cash balances of no less than $1,000,000 to
      $2,500,000 depending on the level of EBITDA (as defined in the Credit Agreement)
      for the prior quarter.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">The
      Credit
      Agreement contains affirmative covenants that require the Company to promise,
      among other things, to deliver financial statements and other financial
      information to CapitalSource, to maintain its insurance policies, to allow
      inspection of its operations, to provide a customary right of first refusal
      to
      CapitalSource in the event that a third party proposes a debt financing, to
      pay
      its taxes and to maintain its inventory. The Credit Agreement also contains
      negative covenants that will limit the ability of the Company to, among other
      things, incur additional indebtedness, create any liens on any of its
      collateral, make certain investments, pay dividends, enter into certain
      transactions with affiliates, amend its charter documents, transfer its assets
      or make payments on permitted subordinated debt. The Credit Agreement contains
      customary Events of Default (as defined in the Credit Agreement), including,
      but
      not limited to: (a) non-payment of amounts due; (b) material breach of
      representations, warranties or covenants under the Credit Agreement or the
      documents pertaining thereto; (c) insolvency; (d) receivership or bankruptcy;
      (e) certain changes in control; (f) loss of collateral; (g) withdrawal of United
      States Food and Drug Administration approval of products; (h) recall of
      products; or (i) other material adverse changes. Upon the occurrence of an
      event
      of default, the amounts due outstanding under the revolving credit facility
      may
      be accelerated and may become immediately due and payable. In addition, upon
      the
      occurrence of an event of default, CapitalSource shall, among other things,
      have
      the right to (a) apply any property of the Company and its subsidiaries held
      by
      CapitalSource to reduce the obligations; (b) foreclose on liens; (c) take
      possession of or sell any collateral or pledged securities; and (d) reduce
      the
      amount of capital available under the revolving credit facility. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">The
      Company paid a commitment fee of $140,000, plus legal out-of-pocket costs
      incurred by CapitalSource of approximately $83,000,&#160;in connection with the
      Credit Agreement. The Company must also pay a collateral management fee equal
      to
      0.05% of the average outstanding principal amount of the revolving credit
      facility each month and must pay a monthly unused line fee equal to 0.04% per
      month of the difference derived by subtracting (i) the daily average amount
      of
      the balances under the revolving credit facility outstanding during the
      preceding month, from (ii) $7,000,000. Additionally, the Company is obligated
      to
      pay a termination fee of up to $210,000 if it decides to terminate the Credit
      Agreement prior to its expiration.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">The
      Company has not yet requested any advances under the revolving credit facility.
      The Credit Agreement provides that advances under the revolving credit facility
      can be used by the Company as a manufacturer and distributor of medical products
      and devices and for payments to CapitalSource.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">The
      foregoing summary of the Credit Agreement does not purport to be complete and
      is
      qualified in its entirety by reference to the Credit Agreement itself, a copy
      of
      which is filed as Exhibit 10.92 to this Current Report on Form 8-K.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Item
        9.01 <font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Financial
        Statements and Exhibits.</strong></font></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">(c)
          Exhibits:</font></div>
      </div>
    </div>
    <div align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">10.92
      </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Revolving
      Credit and Security Agreement by and among RITA Medical Systems, Inc., Horizon
      Medical Products, Inc., RITA Medical Systems Netherlands, BV, RITA Medical
      Systems France, S.A.R.L. and CapitalSource Finance LLC dated as of January
      31,
      2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font size="2">10.93&#160;
Senior
      Subordination Agreement, dated as of
      January 31, 2006, by and among Atlas Master Fund, Ltd., CaptialSource Finance
      LLC and RITA Medical Systems, Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">-3-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      <div id="HDR">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr valign="top" bgcolor="#ffffff">
              <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
              <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
              <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">RITA
                MEDICAL
                SYSTEMS, INC.</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Date:
                  February 6, 2006</font></div>
              </td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Michael
                Angel</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
              <td align="left">
                <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">Michael
                Angel</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Chief
                Financial Officer</font></td>
            </tr>

        </table>
      </div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">-4-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>RITA
      MEDICAL SYSTEMS, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>INDEX
      TO EXHIBITS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div align="center">
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            <td valign="top" width="15%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Exhibit
                Number</font></div>
            </td>
            <td width="5%">&#160;</td>
            <td valign="top" width="80%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Description</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="15%">&#160;</td>
            <td width="5%">&#160;</td>
            <td align="left" valign="top" width="80%">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">10.92</font></div>
            </td>
            <td width="5%">&#160;</td>
            <td align="left" valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Revolving
                Credit and Security Agreement by and among RITA Medical Systems,
                Inc.,
                Horizon Medical Products, Inc., RITA Medical Systems Netherlands,
                BV, RITA
                Medical Systems France, S.A.R.L. and CapitalSource Finance LLC dated
                as of
                January 31, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="15%">&#160;</td>
            <td width="5%">&#160;</td>
            <td align="left" valign="top" width="80%">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="15%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">10.93</font></div>
            </td>
            <td width="5%">&#160;</td>
            <td align="left" valign="top" width="80%"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman">Senior
              Subordination Agreement, dated as of January 31, 2006, by and among
              Atlas
              Master Fund, Ltd., CaptialSource Finance LLC and RITA Medical Systems,
              Inc.</font></td>
          </tr>

      </table>
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{"company-data": {"conformed-name": "RITA MEDICAL SYSTEMS INC", "cik": "0001056421", "assigned-sic": "3845", "irs-number": "943199149", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-30959", "film-number": "06581944"}, "business-address": {"street1": "967 N SHORELINE BLVD", "city": "MOUNTAIN VIEW", "state": "CA", "zip": "94013", "phone": "6503858500"}, "mail-address": {"street1": "967 NORTH SHORELINE BLVD", "city": "MOUNTAIN VIEW", "state": "CA", "zip": "94043"}}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
Form
      8-K
Current
      Report
Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of
      1934
Date
      of
      Report
(Date
      of
      earliest event reported):
January 31, 2006
RITA
      Medical Systems, Inc.
(Exact
      name of registrant as specified in its charter)
000-30959
(Commission
      File Number)
Delaware
94-3199149
(State
                or other jurisdiction of incorporation)
(I.R.S.
                Employer Identification No.)
46421
      Landing Parkway
Fremont,
      CA 94538
(Address
      of principal executive offices, with zip code)
(510)
      771-0400
(Registrant's
      telephone number, including area code)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (
see
General
      Instruction A.2. below):
o
Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)
o
Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)
o
Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b))
o
Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))
Item
      1.01
Entry
      into a Material Definitive Agreement.
On
      January
      31, 2006, RITA Medical Systems, Inc., a Delaware corporation (the "Company"),
      entered into a Revolving Credit and Security Agreement (the "Credit Agreement")
      for a revolving line of credit with CapitalSource Finance LLC ("CapitalSource").
      A copy of the Credit Agreement is attached hereto as Exhibit 10.92.
The
      Credit
      Agreement provides for a revolving line of credit of up to $7,000,000. The
      description of the material terms of the Credit Agreement included in Item
      2.03
      to this Current Report on Form 8-K is incorporated by reference into this Item
      1.01.
Item
      2.03
Creation
      of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
      Arrangement of a Registrant.
As
      discussed in Item 1.01 above, on January 31, 2006, the Company entered into
      a
      Credit Agreement with CaptialSource. The Credit Agreement provides for a
      revolving credit facility in the principal amount of up to $7,000,000. The
      amout of principal available for the Company to borrow at any time is limited
      to
      the aggregate of (i) varying percentages of the amount of the Company's eligible
      receivables and (ii) varying percentages of the amount of the Company's eligible
      finished goods inventory. The applicable percentages are determined based on
      the
      level of the Company's EBITDA (as defined in the Credit Agreement) for the
      prior
      quarter and its inventory turns ratio. In addition, the amount otherwise
      available to borrow based on the aforementioned criteria is required to be
      reduced by a required liquidity reserve of between $1,000,000 to $1,500,000
      depending on the level of the Company's EBITDA (as defined in the Credit
      Agreement) for the prior quarter.
The
      obligations under the Credit Agreement are secured by a security interest in
      substantially all of the tangible and intangible assets of the Company and
      its
      subsidiaries. The Credit Agreement provides for the use of a lockbox for the
      collection of the Company's receivables. Borrowings under the revolving credit
      facility bear interest at a floating rate equal to Citibank, N.A.'s prime rate
      (the "Prime Rate") plus 1.25%, provided, however, that the Prime Rate shall not
      be less than 7.25%. Interest on advances is payable on the first day of each
      calendar month. The full amount borrowed under the revolving credit facility
      will mature on the earlier of (i) January 31, 2009 or (ii) 30 days before the
      maturity date of the debt in the Senior Subordination Agreement, dated as of
      January 31, 2005, by and among Atlas Master Fund, Ltd.
      ("Atlas"), CapitalSource and the Company (the "Subordination Agreement").
      Pursuant to the terms of the Subordination Agreement, the claims, demands,
      rights and remedies of Atlas were subordinated to the claims, rights and
      remedies of CapitalSource. A copy of the Subordination Agreement is
      attached hereto as Exhibit 10.93.
The
      Credit
      Agreement also includes requirements to maintain financial covenants in order
      to
      be eligible to borrow including (i) a minimum level quarterly EBITDA (as defined
      in the Credit Agreement) of ($325,000) during 2006, ($150,000) during 2007,
      and
      $62,500 during 2008, and (ii) cash balances of no less than $1,000,000 to
      $2,500,000 depending on the level of EBITDA (as defined in the Credit Agreement)
      for the prior quarter.
The
      Credit
      Agreement contains affirmative covenants that require the Company to promise,
      among other things, to deliver financial statements and other financial
      information to CapitalSource, to maintain its insurance policies, to allow
      inspection of its operations, to provide a customary right of first refusal
      to
      CapitalSource in the event that a third party proposes a debt financing, to
      pay
      its taxes and to maintain its inventory. The Credit Agreement also contains
      negative covenants that will limit the ability of the Company to, among other
      things, incur additional indebtedness, create any liens on any of its
      collateral, make certain investments, pay dividends, enter into certain
      transactions with affiliates, amend its charter documents, transfer its assets
      or make payments on permitted subordinated debt. The Credit Agreement contains
      customary Events of Default (as defined in the Credit Agreement), including,
      but
      not limited to: (a) non-payment of amounts due; (b) material breach of
      representations, warranties or covenants under the Credit Agreement or the
      documents pertaining thereto; (c) insolvency; (d) receivership or bankruptcy;
      (e) certain changes in control; (f) loss of collateral; (g) withdrawal of United
      States Food and Drug Administration approval of products; (h) recall of
      products; or (i) other material adverse changes. Upon the occurrence of an
      event
      of default, the amounts due outstanding under the revolving credit facility
      may
      be accelerated and may become immediately due and payable. In addition, upon
      the
      occurrence of an event of default, CapitalSource shall, among other things,
      have
      the right to (a) apply any property of the Company and its subsidiaries held
      by
      CapitalSource to reduce the obligations; (b) foreclose on liens; (c) take
      possession of or sell any collateral or pledged securities; and (d) reduce
      the
      amount of capital available under the revolving credit facility.
-2-
The
      Company paid a commitment fee of $140,000, plus legal out-of-pocket costs
      incurred by CapitalSource of approximately $83,000, in connection with the
      Credit Agreement. The Company must also pay a collateral management fee equal
      to
      0.05% of the average outstanding principal amount of the revolving credit
      facility each month and must pay a monthly unused line fee equal to 0.04% per
      month of the difference derived by subtracting (i) the daily average amount
      of
      the balances under the revolving credit facility outstanding during the
      preceding month, from (ii) $7,000,000. Additionally, the Company is obligated
      to
      pay a termination fee of up to $210,000 if it decides to terminate the Credit
      Agreement prior to its expiration.
The
      Company has not yet requested any advances under the revolving credit facility.
      The Credit Agreement provides that advances under the revolving credit facility
      can be used by the Company as a manufacturer and distributor of medical products
      and devices and for payments to CapitalSource.
The
      foregoing summary of the Credit Agreement does not purport to be complete and
      is
      qualified in its entirety by reference to the Credit Agreement itself, a copy
      of
      which is filed as Exhibit 10.92 to this Current Report on Form 8-K.
Item
        9.01
Financial
        Statements and Exhibits.
(c)
          Exhibits:
10.92
Revolving
      Credit and Security Agreement by and among RITA Medical Systems, Inc., Horizon
      Medical Products, Inc., RITA Medical Systems Netherlands, BV, RITA Medical
      Systems France, S.A.R.L. and CapitalSource Finance LLC dated as of January
      31,
      2006
10.93 
Senior
      Subordination Agreement, dated as of
      January 31, 2006, by and among Atlas Master Fund, Ltd., CaptialSource Finance
      LLC and RITA Medical Systems, Inc.
-3-
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
RITA
                MEDICAL
                SYSTEMS, INC.
Date:
                  February 6, 2006
By:
/s/ Michael
                Angel
Michael
                Angel
Chief
                Financial Officer
-4-
RITA
      MEDICAL SYSTEMS, INC.
INDEX
      TO EXHIBITS
Exhibit
                Number
Description
10.92
Revolving
                Credit and Security Agreement by and among RITA Medical Systems,
                Inc.,
                Horizon Medical Products, Inc., RITA Medical Systems Netherlands,
                BV, RITA
                Medical Systems France, S.A.R.L. and CapitalSource Finance LLC dated
                as of
                January 31, 2006
10.93
Senior
              Subordination Agreement, dated as of January 31, 2006, by and among
              Atlas
              Master Fund, Ltd., CaptialSource Finance LLC and RITA Medical Systems,
              Inc.
-5-