AKSYS LTD
EX-10.29
<DOCUMENT>
<TYPE>EX-10.29
<SEQUENCE>2
<FILENAME>a06-11221_1ex10d29.htm
<DESCRIPTION>EX-10.29
<TEXT>
<html>

<head>






</head>

<body lang="EN-US">

<div>
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>

<p align="right" style="margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.29</font></b></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SEPARATION
AGREEMENT AND GENERAL RELEASE</font></u></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Separation Agreement and General Release (the &#147;Agreement&#148;) is
entered into by and between William Dow (&#147;Executive&#148;) and Aksys, Ltd. (the &#147;Company&#148;),
a Delaware corporation.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">RECITALS</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS Executive has been employed by the Company as its President and
Chief Executive Officer;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS Executive and the Company have entered into a Severance,
Confidentiality, and Post-Employment Restrictions Agreement dated October 4,
1999 (the &#147;Severance Agreement&#148;);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS Executive has resigned as the Company&#146;s President and Chief
Executive Officer, and as a member of the Company&#146;s Board of Directors,
effective March 30, 2006;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS Executive and the Company have
decided that Executive&#146;s employment shall terminate, effective as of April 30,
2006;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS the Company and Executive have agreed to
enter into this Agreement, which shall supersede and replace certain provisions
of Executive&#146;s Severance Agreement;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in consideration of the mutual
covenants and promises set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Company and Executive hereby agree as follows:</font></p>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Resignation as Officer and
Director</u>. Executive resigned as the Company&#146;s President and CEO, and from
his position on the Company&#146;s Board of Directors, effective on March 30, 2006.
Executive hereby confirms that he has no disagreement with the Company, its
management or the Board of Directors regarding (i) any of the Company&#146;s
operations, policies or practices, as contemplated by Item 5.02(a) of the
Current Report on Form 8-K under the Securities Exchange Act of 1934, as
amended, or (ii) any other matter including the transactions contemplated by
that certain Securities Purchase Agreement, dated as of March 31, 2006 (the &#147;Purchase
Agreement&#148;), by and between the Company and Durus Life Sciences Master Fund
Ltd. (&#147;Durus&#148;) and the other Transaction Documents (as defined in the Purchase
Agreement). Executive further agrees not to publicly make or publish and to
instruct his agents, affiliates and associates not to publicly make or publish,
or instigate, assist or participate in the making or publication of, any
remarks, comments or statements, orally, in writing or otherwise, regarding the
Company, the Board of Directors, the Company&#146;s management, Durus or anyone
affiliated or associated with Durus, which remarks, comments or statements call
into question or impugn the character, honesty, integrity, morality, business
acumen or abilities of the organization(s) or person(s) that may be the subject
of such remarks, comments or statements. Executive understands that by entering
into this Agreement, the Company and Durus likewise will not publicly make or
publish, or instigate, assist or participate in the making or publication of,
any remarks, comments or statements, orally, in writing or otherwise, which
call into question or impugn Executive&#146;s character, honesty, integrity,
morality, business acumen or abilities. Notwithstanding the foregoing,
Executive acknowledges and agrees that neither Executive, the Company nor Durus
shall be precluded from </font></h1>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">1</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='1',FILE='C:\fc\12411291386_D11265_1077313\11221-1-ki-01.htm',USER='jmsproofassembler',CD='May  4 11:29 2006' -->
<br clear="all" style="page-break-before:always;">
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>


<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">producing documents or
other information or providing truthful testimony in response to a subpoena,
court order, regulatory request or other legal process that Executive, the
Company or Durus, as the case may be, believe in good faith to be valid.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:40.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive further
confirms that he is not aware of, and has no knowledge of, any facts or
circumstances that may reasonably give rise to, or serve as the basis for, any
claims, actions or causes of action of any kind or nature, whether direct or
indirect, by Executive (or anyone affiliated or associated with Executive
personally or professionally) against the Company, the Board of Directors, the
Company&#146;s management, Durus or anyone affiliated or associated with Durus
(whether in connection with the Company&#146;s normal business and operations or any
other matter including the transactions contemplated by the Purchase Agreement
and the other Transaction Documents), including any claims that Executive may
have for compensation or benefits from the Company, except for (i) payments or
benefits specifically provided to Executive herein; (ii) rights to
indemnification that Executive may have as a former officer of the Company and
member of the Company&#146;s Board of Directors under the Company&#146;s Certificate of
Incorporation and Bylaws, the General Corporation Law of the State of Delaware,
as amended, and pursuant to the terms and conditions of that certain Indemnification
Agreement between the Company and Executive; and (iii) any rights that
Executive may have under the Company&#146;s Directors and Officers Liability
Insurance policies from time to time in effect that are applicable to
Executives service as an officer and member of the Board of Directors.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination of Employment.</u>
Executive&#146;s employment with the Company shall continue until April 30, 2006.
Executive shall continue to receive his base salary and employee benefits, as
currently enrolled, through the Separation Date. As of the Separation Date,
Executive shall receive his final paycheck, and all benefits and perquisites of
employment shall cease, except as otherwise provided in this Agreement.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Severance Payments</u>. In
exchange for the covenants provided in this Agreement, the Company shall
provide Executive with the following severance payments:</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A lump sum payment equal to $368,000.00, less applicable
taxes and withholdings; and</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A lump sum payment equal to $15,300, less applicable taxes
and withholdings, which Executive may use to pay for any insurance premiums
that he incurs as a result of his election to continue his health insurance
coverage under COBRA;</font></h2>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive
acknowledges and agrees that the foregoing payments exceed the amount to which
he would otherwise be entitled, and that they fully satisfy and discharge any
deferred compensation or other payment obligations to Executive. The severance
payments described in subsections (a)-(b) above shall be paid to
Executive within ten (10) days following the later of April 30, 2006, or the
date this Agreement and a Consulting Agreement between the Executive and the
Company are effective (the &#147;Separation Date&#148;), provided Executive does not
revoke this Agreement pursuant to Section 5(c) below. Executive understands and
agrees that his receipt of the severance payments described in subsections (a)-(b)
above is contingent upon his continued compliance with his obligations under
Sections 6(a)-(c) below (and the sections of the Severance Agreement
referenced therein). Executive further understands and agrees the severance
payments described in subsections (a)-(b) above shall be provided in lieu
of any amounts to which he is entitled under Section 2 of the Severance
Agreement or any other severance policy or practice of the Company, and that he
shall not be entitled to any other severance payments or </font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='2',FILE='C:\fc\12411291386_D11265_1077313\11221-1-ki-01.htm',USER='jmsproofassembler',CD='May  4 11:29 2006' -->
<br clear="all" style="page-break-before:always;">
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>


<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">benefits
or other compensation from the Company following the Separation Date (including
but not limited to any payments or bonuses under any employee bonus or
retention plan maintained by the Company). Notwithstanding the foregoing,
Executive acknowledges that, following the Separation Date</font>, he shall perform certain consulting
services for the Company under the terms of a Consulting Agreement between him
and the Company dated April 30, 2006 (the &#147;Consulting Agreement&#148;), and shall be
compensated for such services, as set forth in that Consulting Agreement.</p>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>General Release of Claims</u>.
In consideration of the severance payments described in Section 3 above, Executive,
on behalf of himself and his heirs, successors and assigns, hereby releases,
discharges and covenants not to sue the Company, its subsidiaries, divisions,
parent and/or affiliated companies, and each of their current and former
directors, officers, shareholders, agents, investors, employees, attorneys,
heirs, assigns, predecessors and successors (the &#147;Released Parties&#148;) from or
for all claims of any kind, known and unknown, which he may now have or has
ever had against any of them, or arising out of his relationship with any of
them, including any claims arising from or related to (1) his employment or the
termination thereof by Company (including any claims for any severance payments
or other compensation under the Severance Agreement), or (2) any transactions,
occurrences, acts or omissions by the Released Parties, or any of them,
occurring prior to his execution of this Agreement, whether such claims are
based on contract, tort, statute, local ordinance, regulation or any comparable
law in any jurisdiction (the &#147;Released Claims&#148;). Without limiting the
foregoing, the Released Claims shall include but not be limited to any claims
alleging violations of any federal or state employment discrimination law,
including without limitation Title VII of the Civil Rights Act of 1964, the
Americans with Disabilities Act, the Family Medical Leave Act, the Illinois
Human Rights Act, as well as claims arising out of or related to any alleged
violations of state and federal wage and hour laws, all common law and statutory
claims, including without limitation, breach of contract, fraud, violation of
public policy, unfair competition and business practices, defamation,
infliction of emotional distress, invasion of privacy, wrongful termination, or
any other state or federal law, rule, or regulation, and any claims for
attorneys&#146; fees and costs. The Released Claims also specifically cover both
known and unknown claims and Executive, therefore, waives his rights under Section
1542 of the California Civil Code or under any other comparable law of another
jurisdiction that limits a general release to claims that are known to exist at
the date of this Agreement. Section 1542 of the California Civil Code states as
follows: &#147;<i><font style="font-style:italic;">A general release does not extend
to claims which the creditor does not know or suspect to exist in his favor at
the time of executing the release, which if known by him must have materially
affected his settlement with the debtor.</font></i>&#148;</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Release of Age Discrimination
Claims</u>. Executive further acknowledges and agrees he is waiving and
releasing any rights he may have under the Age Discrimination in Employment Act
and that<font style="letter-spacing:-.1pt;">: (a) </font>he has been given an
opportunity to consider fully the terms of this Agreement for twenty-one (21)
days, although he is not required to wait twenty-one (21) days before signing
this Agreement; (b) he has been advised to consult with an attorney of his own
choosing before signing this Agreement; and (c) he understands he may revoke
this Agreement within seven (7) days of signing it, provided however, that he
shall not be entitled to the severance payments and benefits described in Section
3 above if he revokes this Agreement.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination Obligations</u>.</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Confidential Information, Intellectual Property</u>.
Executive acknowledges and agrees that the provisions of Sections 4-7 of
the Severance Agreement shall remain in effect following </font></h2>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='3',FILE='C:\fc\12411291386_D11265_1077313\11221-1-ki-01.htm',USER='jmsproofassembler',CD='May  4 11:29 2006' -->
<br clear="all" style="page-break-before:always;">
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>


<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the Separation Date, and that he shall comply
with, and continue to be bound by, those provisions following the Separation
Date.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Noncompetition and Nonsolicitation</u>. Executive
agrees that he shall comply with, and be bound by, the non-competition and non-solicitation
restrictions set forth in Sections 1(a) and 3 of the Severance Agreement for a
period of one year following the Separation Date (which period shall constitute
the &#147;Non-Competition Period,&#148; as that term is used in the Severance
Agreement).</font></h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Cooperation</u>.
Following the Separation Date, Executive agrees he will cooperate with the Company in its investigation or defense of any
other legal proceeding, investigation, or action that pertains in any manner to
his employment with the Company and/or his actions or omissions as a Company
employee, including but not limited to </font>appearing as a witness in connection with any administrative
proceeding, investigation, or litigation without requiring a subpoena and
being available to provide information
to and/or answer questions from the Company and its counsel in connection with
any administrative proceeding, investigation or litigation. Executive further
agrees that he will cooperate with and assist the Company with its efforts to
obtain, perfect, establish or otherwise protect its intellectual property
rights, including but not limited to signing and delivering to the Company any
documents that may be needed to secure patents on any of the Company&#146;s
inventions or developments and taking any other actions that may be necessary
to secure patents for the Company&#146;s inventions and developments.</h2>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Arbitration</u>. Executive and
the Company agree that any dispute, controversy or claim between them regarding
the subject matter, interpretation, application, or alleged breach of this
Agreement (&#147;Arbitrable Claims&#148;) once executed shall be resolved by arbitration.
Arbitration shall be final and binding upon the parties and shall be the
exclusive remedy for all Arbitrable Claims. Arbitration of Arbitrable Claims
shall be in accordance with then current Commercial Arbitration Rules of AAA,
as amended. <font style="letter-spacing:-.15pt;">A neutral arbitrator shall be
jointly chosen by the parties from a list of AAA arbitrators, and any hearings
shall be held in or around Lincolnshire, Illinois. The fees and costs of the
arbitration and administrative fees, except for attorneys&#146; fees, shall be borne
equally by the parties. </font>Either party may bring an action in court to
compel arbitration under this Agreement and to enforce an arbitration award.
Otherwise, neither party shall initiate or prosecute any lawsuit or
administrative action in any way related to any Arbitrable Claim.
Notwithstanding the foregoing, Arbitrable Claims shall not include any claims
that may arise or relate to violations of Sections 6(a)-(b) of this
Agreement (or the sections of the Severance Agreement referenced therein), and
the parties shall have the right to obtain provisional, injunctive, or other
relief from a court of competent jurisdiction for any such claims or
controversies. THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY
JURY IN REGARD TO ARBITRABLE CLAIMS.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>A</u></font><u>ssignment;
Successors and Assigns</u>. Executive agrees that he will not assign, sell,
transfer, delegate or otherwise dispose of, whether voluntarily or
involuntarily, or by operation of law, any rights or obligations under this
Agreement, nor shall his rights be subject to encumbrance or the claims of
creditors. Any purported assignment, transfer, or delegation shall be null and
void. Nothing in this Agreement shall prevent the consolidation of the Company
with, or its merger into, any other corporation, or the sale by the Company of
all or substantially all of its properties or assets, or the assignment by the
Company of this Agreement and the performance of its obligations hereunder to
any successor in interest or any affiliate of the Company. Subject to the
foregoing, this Agreement shall be binding upon and shall inure to the benefit
of the parties, the Released Parties, and their respective heirs, </font></h1>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">4</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='4',FILE='C:\fc\12411291386_D11265_1077313\11221-1-ki-01.htm',USER='jmsproofassembler',CD='May  4 11:29 2006' -->
<br clear="all" style="page-break-before:always;">
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>


<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">legal representatives, successors, and
permitted assigns, and shall not benefit any person or entity other than those
enumerated above.</font></h2>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Entire
Agreement</u>. The terms of this Agreement are intended by the parties to be in
the final expression of their agreement with respect to the retention of
Executive by the Company and fully supersedes any prior or contemporaneous
agreement between the parties with respect to the subject matter herein, except
to the extent the provisions of such agreement have been expressly referred to
in this Agreement as having continued effect. The parties further intend that
this Agreement shall constitute the complete and exclusive statement of its
terms and that no extrinsic evidence whatsoever may be introduced in any
judicial, administrative, or other legal proceeding involving this Agreement.
Notwithstanding the foregoing, this Agreement shall not supersede or replace,
and shall not have any effect on any of the statements, representations, or
covenants contained in (a) Consultant&#146;s letter of resignation from the Company&#146;s
Board of Directors dated March 30, 2006 (the &#147;Director Resignation Letter&#148;), (b)
the Officer Resignation Letter and (c) the Consulting Agreement. In addition,
this Agreement shall not supersede or replace, and shall not have any effect on
any of the statements, representations, or covenants contained in Sections 1(a),
3, and 4-7 of the Severance Agreement; provided, however, that all other
provisions in the Severance Agreement shall be superseded and replaced by this Agreement. To the extent that
there is any inconsistency between the terms of this Agreement and the terms of
the Severance Agreement, the terms of this Agreement shall govern.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Amendments; Waivers</u>. This
Agreement may not be modified, amended, or terminated except by an instrument
in writing, signed by a duly authorized representative of the Company and
Executive. By an instrument in writing similarly executed, either party may
waive compliance by the other party with any provision of this Agreement that
such other party was or is obligated to comply with or perform, provided,
however, that such waiver shall not operate as a waiver of, or estoppel with
respect to, any other or subsequent failure. No failure to exercise and no
delay in exercising any right, remedy, or power hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, remedy,
or power hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, or power provided herein or by law or in
equity.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Severability; Enforcement</u>. If
any provision of this Agreement, or the application thereof to any person,
place, or circumstance, shall be held by a court of competent jurisdiction to
be invalid, unenforceable, or void, the remainder of this Agreement and such
provisions as applied to other persons, places, and circumstances shall remain
in full force and effect. It is the intention of the parties that the covenants
contained in Sections 6(a)-(b) (and the sections of the Severance
Agreement referenced therein) shall be enforced to the greatest extent (but to
no greater extent) in time, area, and degree of participation as is permitted
by the law of that jurisdiction whose law is found to be applicable to any acts
allegedly in breach of these covenants. It being the purpose of this Agreement
to govern competition by Executive anywhere throughout the world, these
covenants shall be governed by and construed according to that law (from among
those jurisdictions arguably applicable to this Agreement and those in which a
breach of this Agreement is alleged to have occurred or to be threatened) which
best gives them effect.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Governing Law</u>. The validity,
interpretation, enforceability, and performance of this Agreement shall be
governed by and construed in accordance with the law of the State of Illinois.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Injunctive Relief</u>. The parties
agree that in the event of any breach or threatened breach of any of the
covenants in Sections 6(a)-(b) (and the sections of the Severance
Agreement referenced </font></h1>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">5</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='5',FILE='C:\fc\12411291386_D11265_1077313\11221-1-ki-01.htm',USER='jmsproofassembler',CD='May  4 11:29 2006' -->
<br clear="all" style="page-break-before:always;">
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>


<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">therein), the damage or imminent damage to
the value and the goodwill of the Company&#146;s business will be irreparable and
extremely difficult to estimate, making any remedy at law or in damages
inadequate. Accordingly, the parties agree that the Company shall be entitled
to injunctive relief against Executive in the event of any breach or threatened
breach of any such provisions by Executive, in addition to any other relief
(including damages) available to the Company under this Agreement or under law.
Executive expressly acknowledges and agrees that the restrictions contained in
Sections 6(a)-(b) (and the sections of the Severance Agreement referenced
therein) of this Agreement do not preclude him from earning a livelihood, nor
do they unreasonably impose limitations on his ability to earn a living. In
addition, Executive agrees and acknowledges that the potential harm to the
Company of its non-enforcement of Sections 6(a)-(b) (and the
sections of the Severance Agreement referenced therein) outweighs any harm to
the Executive of its enforcement of such Sections by injunction or otherwise.</font></h2>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Counterparts</u>. This Agreement
may be executed in separate counterparts, each of which is deemed to be an
original and all of which taken together constitute one and the same agreement.</font></h1>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[SIGNATURE
PAGE FOLLOWS]</font></b></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">6</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='6',FILE='C:\fc\12411291386_D11265_1077313\11221-1-ki-01.htm',USER='jmsproofassembler',CD='May  4 11:29 2006' -->



<br clear="all" style="page-break-before:always;">

<div style="font-family:Times New Roman;">
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The parties have duly executed this Agreement as of
the date first written below.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;">EXECUTIVE:</p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ William C. Dow</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">May 4, 2006</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">William Dow</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:43.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">COMPANY:</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Aksys, Ltd.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:44.76%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Laurence P.
  Birch</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:43.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">May 4, 2006</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="30" style="border:none;"></td>
  <td width="335" style="border:none;"></td>
  <td width="18" style="border:none;"></td>
  <td width="40" style="border:none;"></td>
  <td width="326" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='',FILE='C:\fc\124131320858_D11265_1077661\11221-1-ki-02.htm',USER='jmsproofassembler',CD='May  4 13:13 2006' -->


</body>

</html>
</TEXT>
</DOCUMENT>
