Document:

Exhibit 10.29

SEPARATION
AGREEMENT AND GENERAL RELEASE

This Separation Agreement and General Release (the “Agreement”) is
entered into by and between William Dow (“Executive”) and Aksys, Ltd. (the “Company”),
a Delaware corporation.

RECITALS

WHEREAS Executive has been employed by the Company as its President and
Chief Executive Officer;

WHEREAS Executive and the Company have entered into a Severance,
Confidentiality, and Post-Employment Restrictions Agreement dated October 4,
1999 (the “Severance Agreement”);

WHEREAS Executive has resigned as the Company’s President and Chief
Executive Officer, and as a member of the Company’s Board of Directors,
effective March 30, 2006;

WHEREAS Executive and the Company have
decided that Executive’s employment shall terminate, effective as of April 30,
2006;

WHEREAS the Company and Executive have agreed to
enter into this Agreement, which shall supersede and replace certain provisions
of Executive’s Severance Agreement;

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:

1.             Resignation as Officer and
Director. Executive resigned as the Company’s President and CEO, and from
his position on the Company’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’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 “Purchase
Agreement”), by and between the Company and Durus Life Sciences Master Fund
Ltd. (“Durus”) 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’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’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 

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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.

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’s management, Durus or anyone affiliated or associated with Durus
(whether in connection with the Company’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’s Board of Directors under the Company’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’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.

2.             Termination of Employment.
Executive’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.

3.             Severance Payments. In
exchange for the covenants provided in this Agreement, the Company shall
provide Executive with the following severance payments:

(a)           A lump sum payment equal to $368,000.00, less applicable
taxes and withholdings; and

(b)           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;

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 “Separation Date”), 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 

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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, 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 “Consulting Agreement”), and shall be
compensated for such services, as set forth in that Consulting Agreement.

4.             General Release of Claims.
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 “Released Parties”) 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 “Released Claims”). 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’ 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: “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.”

5.             Release of Age Discrimination
Claims. Executive further acknowledges and agrees he is waiving and
releasing any rights he may have under the Age Discrimination in Employment Act
and that: (a) 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.

6.             Termination Obligations.

(a)           Confidential Information, Intellectual Property.
Executive acknowledges and agrees that the provisions of Sections 4-7 of
the Severance Agreement shall remain in effect following 

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the Separation Date, and that he shall comply
with, and continue to be bound by, those provisions following the Separation
Date.

(b)           Noncompetition and Nonsolicitation. 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 “Non-Competition Period,” as that term is used in the Severance
Agreement).

(c)           Cooperation.
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 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’s
inventions or developments and taking any other actions that may be necessary
to secure patents for the Company’s inventions and developments.

7.             Arbitration. 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 (“Arbitrable Claims”) 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. 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’ fees, shall be borne
equally by the parties. 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.

8.             Assignment;
Successors and Assigns. 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, 

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legal representatives, successors, and
permitted assigns, and shall not benefit any person or entity other than those
enumerated above.

9.             Entire
Agreement. 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’s letter of resignation from the Company’s
Board of Directors dated March 30, 2006 (the “Director Resignation Letter”), (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.

10.           Amendments; Waivers. 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.

11.           Severability; Enforcement. 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.

12.           Governing Law. 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.

13.           Injunctive Relief. 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 

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therein), the damage or imminent damage to
the value and the goodwill of the Company’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.

14.           Counterparts. 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.

[SIGNATURE
PAGE FOLLOWS]

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The parties have duly executed this Agreement as of
the date first written below.

	
  EXECUTIVE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ William C. Dow

  	
   

  	
  Date:

  	
  May 4, 2006

  
	
  William Dow

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  COMPANY:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Aksys, Ltd.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Laurence P.
  Birch

  	
   

  	
  Date:

  	
  May 4, 2006

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:Exhibit 10.30

CONSULTING
AGREEMENT

This Consulting Agreement (the “Agreement”) is entered into on April 30,
2006 by and between William Dow (“Consultant”) of WC Dow & Associates and
Aksys, Ltd. (the “Company”), a Delaware corporation.

RECITALS

WHEREAS Consultant was the Company’s President and Chief Executive
Officer and has been employed pursuant to the terms of a Severance,
Confidentiality and Post-Employment Restrictions Agreement dated October 4,
1999 (the “Severance Agreement”);

WHEREAS Consultant and the Company have
decided that Consultant’s employment shall terminate, effective as of April 30,
2006, which supersedes and replaces certain provisions of the Severance
Agreement, are executed by all parties and are in effect;

WHEREAS, the Company desires to retain Consultant
to perform certain consulting services, subject to the terms and conditions of
this Agreement;

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 Consultant hereby agree as follows:

1.             Consulting Period. This
Agreement shall be effective for one (1) year, commencing April 30, 2006 (the “Effective
Date”), subject to earlier termination in accordance with Sections 4(a)-(d) below
(the “Consulting Period”).

2.             Consulting Services.

(a)           Services. During the Consulting Period, Consultant
agrees to be available to consult with officers and directors of the Company
regarding the Company’s business and to perform such other consulting services
as the Company reasonably requests (the “Services”).

(b)           Performance of Services. Consultant shall, to the
best of his ability, perform the Services in a timely and professional manner
consistent with industry standards and in accordance with this Agreement.
Subject to the foregoing, the manner and means by which Consultant chooses to
complete the Services are in Consultant’s sole discretion and control. In
performing the Services, Consultant agrees to provide his materials at his own
expense. Company shall make its facilities and equipment available to
Consultant as reasonably necessary in connection with the Services. Consultant
may, at his own expense, use employees or other subcontractors to perform the
Services under this Agreement. For any work performed on Company’s premises,
Consultant shall comply with all security, confidentiality, safety and health
policies of Company. Consultant shall take all necessary precautions to
prevent, and shall be responsible for, any injury to any persons (including,
without limitation, employees of Company) or damage to property (including,
without limitation, Company’s property) arising from or relating to Consultant’s
performance of the Services or the use by Consultant of any Company equipment,
tools, facility or other property, whether or not such claim is based upon its
condition or on the alleged negligence of Company in permitting its use.

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(c)           Other Services; Conflict of Interest. During the
Consulting Period, Consultant may perform services for, or be employed by other
persons, companies, or employers, except to the extent doing so causes
Consultant to breach his obligations under this Agreement (including but not
limited to his obligations under Sections 6-7 below) or any other
agreement Consultant has with the Company (including but not limited to the
Separation Agreement and General Release executed on April 30, 2006 (the “Separation
Agreement”) and the surviving provisions of the Severance Agreement as specified
in Section 8(d) of the Separation Agreement), or creates a conflict of
interest. Consultant agrees during the term of the Consulting Period not to
accept work or enter into any agreement or accept any obligation that is
inconsistent or incompatible with Consultant’s obligations under this Agreement
or the scope of Services rendered for Company. Consultant represents and
warrants that he is not a party to any existing agreement that is inconsistent
with this Agreement.

3.             Compensation, Benefits, Expenses.

(a)           Compensation. In consideration of the Services to
be rendered hereunder, the Company agrees to pay Consultant a monthly
consulting fee (the “Consulting Fee”) equal to $10,000 per month of the
Consulting Period, which shall be paid to Consultant on the last day of each month during the
Consulting Period.

(b)           No Benefits. Other than the compensation specified
in this Section 3, Consultant shall, as of the Effective Date, not be entitled
to any benefits under Company’s employee benefit plans, or any other direct or
indirect compensation from the Company for services performed hereunder
(including but not limited to any payments or bonuses under any employee bonus
or retention plan maintained by the Company).

(c)           Expenses. Unless Company otherwise agrees in
writing to reimburse Consultant for certain specific expenses incurred in
connection with his performance of the Services, Consultant shall be
responsible for all expenses incurred in performing Services under this
Agreement.

4.             Termination of Consulting
Relationship.

(a)           Termination by Company. The Company may terminate
the Consulting Period for any reason by giving thirty (30) days’ written notice
to Consultant, provided, however, that if such notice is provided within sixty
(60) days of the Effective Date, the Consultant shall nevertheless be entitled
to total Consulting Fees of $30,000.

(b)           Default. If either party defaults in the
performance of this Agreement or materially breaches any of its provisions, the
nonbreaching party may terminate this Agreement by giving written notification
to the breaching party. Termination shall be effective immediately on receipt
of the written notification by the breaching party, or five days after mailing
of the notice to the address set forth in the notice provisions below,
whichever occurs first. For purposes of this section, a material breach of this
Agreement shall include but not be limited to the following: (i) the Company’s
failure to pay for Consultant’s Services as agreed within ten (10) business
days after receipt of Consultant’s written demand for payment in accordance
with the notice provisions set forth below; or (ii) failure of Consultant to
comply with his obligations hereunder.

(c)           Automatic Termination. The Consulting Period and
this Agreement shall terminate automatically on the occurrence of any of the
following events: (i) the appointment of a receiver, liquidator, or trustee for
either party by decree of competent authority in connection with any 

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adjudication or determination by such
authority that either arty is bankrupt or insolvent; (ii) the filing by either
party of a petition in voluntary bankruptcy, the making of an assignment for
the benefit of its creditors, or the entering into of a composition with its
creditors; or (iii) any formal action of the Company’s Board of Directors to
terminate Company’s existence or otherwise to wind up Company’s affairs; or (iv)
the Consultant’s death.

(d)           Termination at End of Consulting Period. If the Consulting Period is not terminated
sooner in accordance with Sections 4(a)-(c) above, this Agreement shall
terminate automatically at the end of the Consulting Period specified in Section
1(a) above.

5.             Termination Obligations.

(a)           Payment of Consulting Fee. Subject to Section 4(a) hereof,
upon the termination or expiration of this Agreement, the Company shall pay
Consultant any Consulting Fees that are due and payable through the date of
termination. Thereafter, the Company’s obligations hereunder shall cease. The
Company shall have no obligation to pay any compensation to Consultant
following the termination of this Agreement, except as otherwise provided in
this Section 5(a).

(b)           Return of Company Property. Consultant hereby
acknowledges and agrees that all property, including, without limitation, all
books, manuals, records, reports, notes, contracts, lists, blueprints, and
other documents, or materials, or copies thereof, Proprietary Information (as
defined below), and equipment furnished to or prepared by Consultant in the
course of or incident to his rendering of services to the Company, including,
without limitation, records and any other materials pertaining to Invention
Ideas (as defined below), belong to the Company and shall be promptly returned
to the Company upon termination of the Consulting Period. Following
termination, Consultant will not retain any written or other tangible material
containing any Proprietary Information.

6.             Proprietary Information.

(a)           Defined. “Proprietary Information” is all
information and any idea in whatever form, tangible or intangible, pertaining
in any manner to the business of the Company or any Affiliated Company (which
is defined to mean any person or entity that directly or indirectly controls,
is controlled by, or is under common control with the Company), or to its clients,
consultants, or business associates to the extent that such information or idea
is disclosed to the Consultant (or Consultant otherwise becomes aware of such
information or idea) in the course of (or as a result of) performing his duties
under this Agreement, unless: (i) the information is or becomes publicly known
through lawful means; (ii) the information was rightfully in Consultant’s
possession or part of his general knowledge prior to the Consulting Period; or (iii)
the information is disclosed to Consultant without confidential or proprietary
restrictions by a third party who rightfully possesses the information (without
confidential or proprietary restriction for the benefit of the Company) and did
not learn of it, directly or indirectly, from the Company. This definition
includes information or ideas in any form, tangible or intangible, including
without limitation, all documents, books, papers, drawings, models, sketches,
and other data of any kind and description, including electronic data recorded
or retrieved by any means, that have been or will be given to Consultant by the
Company (or any Affiliated Company), as well as written or verbal instructions
or comments. By way of example, and not in limitation, the Company considers
the following information (when (i) developed by or on behalf of the Company or
its agents or employees in the course of their engagement or employment or (ii)
acquired, licensed or owned by the Company) to constitute Proprietary
Information: (A) schematics, techniques, employee suggestions, development 

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tools and processes, computer printouts,
computer programs, design drawings and manuals, electronic codes, formulas and
improvements; (B) information about costs, profits, markets, sales, customers,
potential customers targeted by the Company and bids; (C) plans for future
development and new product concepts, business marketing plans; and (D) corporate
organization, personnel files, salary ranges and information about the
compensation, equity and benefits provided to other employees.

(b)           General Restrictions on Use. Consultant shall hold
all Proprietary Information in strict confidence and trust for the sole benefit
of the Company and not to, directly or indirectly, disclose, use, copy,
publish, summarize, or remove from Company’s premises any Proprietary
Information (or remove from the premises any other property of the Company),
except (i) during the Consulting Period to the extent necessary to carry out
Consultant’s responsibilities under this Agreement, or (ii) as specifically
authorized in writing by the Company.

(c)           Third Party Information. Consultant recognizes that
the Company has received and in the future will receive from third parties
their confidential or proprietary information subject to a duty on the Company’s
part to maintain the confidentiality of such information and to use it only for
certain limited purposes. Consultant owes the Company and such third parties,
during the term of the Consulting Period and thereafter, a duty to hold all
such confidential or proprietary information in the strictest confidence and
not to disclose it to any person, firm, or corporation (except as necessary in
carrying out his work for the Company consistent with the Company’s agreement
with such third party) or to use it for the benefit of anyone other than for
the Company or such third party (consistent with the Company’s agreement with
such third party) without the express written authorization of a duly
authorized officer of the Company.

(d)           Remedies. Nothing in this Section 6 is intended to
limit any remedy of the Company under the Uniform Trade Secrets Act, or
otherwise available under the laws of any other jurisdiction.

7.             Consultant’s Inventions and
Ideas.

(a)           Defined; Statutory Notice. The term “Invention
Ideas” means any and all ideas, discoveries, processes, trademarks, service
marks, inventions, technology, software (source and object code), computer
programs, original works of authorship, designs, formulas, discoveries,
patents, copyrights, and all improvements, rights, and claims related to the
foregoing that are conceived, developed, or reduced to practice by the
Consultant, alone or with others, (i) during the Consulting Period in
connection with or arising out of Consultant’s performance of the Services
(whether or not conceived or, created or otherwise developed during regular
business hours and whether or not conceived, created or otherwise developed on
the Company’s premises), and (ii) if based in any way on Proprietary
Information during or after termination of the Consulting Period. Except to the
extent expressly set forth in this Agreement, Invention Ideas shall include all
work product delivered to Company in connection with the Services performed
under this Agreement; provided that any invention Consultant has developed or
develops for use in his consulting business, which is neither developed in
connection with the Consultant’s Services for the Company nor based in any way
on the Company’s Proprietary Information, shall not be included in the “Invention
Idea”.

(b)           Disclosure. Consultant agrees to maintain adequate
and current written records on the development of all Invention Ideas and to
disclose promptly to the Company all Invention Ideas and relevant records,
which records will remain the sole property of the Company. Consultant further 

 4
 

 

agrees that all information and records
pertaining to any idea, process, trademark, service mark, invention,
technology, computer program, original work of authorship, design, formula,
discovery, patent, or copyright that Consultant does not believe to be an
Invention Idea, but is conceived, developed, or reduced to practice by
Consultant (alone or with others) during the Consulting Period or during the
one year period following termination of the Consulting Period shall be
promptly disclosed to the Company (such disclosure to be received in
confidence). The Company shall examine such information to determine if in fact
the idea, process, or invention, etc., is an Invention Idea subject to this
Agreement.

(c)           Assignment. Consultant agrees to assign solely to
the Company, without further consideration, his entire right, title, and
interest (throughout the United States and in all foreign countries), free and
clear of all liens and encumbrances, in and to each Invention Idea, which shall
be the sole property and Proprietary Information of the Company, whether or not
patentable. In the event any Invention Idea shall be deemed by the Company to
be patentable or otherwise registrable, Consultant shall assist the Company (at
its expense) in obtaining letters patent or other applicable registrations
thereon and shall execute all documents and do all other things (including
testifying at the Company’s expense) necessary or proper to obtain letters
patent or other applicable registrations thereon and to vest the Company or any
Affiliated Company with full title thereto. Should the Company be unable to
secure Consultant’s signature on any document necessary to apply for,
prosecute, obtain, or enforce any patent, copyright, or other right or
protection relating to any Invention Idea, whether due to his mental or
physical incapacity or any other cause, Consultant hereby irrevocably
designates and appoints Company and each of its duly authorized officers and
agents as his agent and attorney in fact, to act for and in his behalf and
stead and to execute and file any such document, and to do all other lawfully
permitted acts to further the prosecution, issuance, and enforcement of
patents, copyrights, or other rights or protections with the same force and
effect as if executed and delivered by Consultant. To the extent allowed by
law, this assignment of Invention Ideas includes all rights of paternity,
integrity, disclosure and withdrawal and any other rights that may be known as
or referred to as “moral rights,” “artist rights,” “droit moral,” or the like
(collectively “Moral Rights”). To the extent Consultant retains any such Moral
Rights associated with an Invention Idea under applicable law, Consultant
hereby ratifies and consents to any action that may be taken with respect to
such Moral Rights by or authorized by the Company and agrees not to assert any
Moral Rights with respect thereto. Consultant will confirm any such
ratifications, consents, and agreements from time to time as requested by the
Company.

(d)           Exclusions. Except as disclosed in Exhibit A,
Consultant acknowledges there are no ideas, processes, trademarks, service
marks, technology, computer programs, original works of authorship, designs,
formulas, inventions, discoveries, patents, copyrights, or improvements to the
foregoing that he desires to exclude from the operation of this Agreement.

(e)           License for Other Inventions. If Consultant
incorporates or otherwise includes into Company property, or it is otherwise
necessary or desirable for the use or exploitation of any deliverable under the
Services or other Invention Idea, an Invention Idea that is not assignable, or
an invention that Consultant retains any right, title or interest in,
Consultant hereby (i) unconditionally and irrevocably waives the enforcement of
such rights and all claims and causes of action of any kind against Company
with respect to such rights, (ii) agrees, at Company’s request and expense, to
consent to and join in any action to enforce such rights, and (iii) hereby
grants to Company a nonexclusive, royalty-free, irrevocable, perpetual,
worldwide license to reproduce, distribute, display and perform (whether
publicly or otherwise), prepare derivative works of and otherwise modify, make,
have made, sell, offer to sell, import and otherwise use and exploit (and have
others exercise such rights on behalf of 

 5
 

 

the Company) all or any portion of such
invention in connection with the developing,
enhancing, marketing, distributing or providing, maintaining or supporting, or
otherwise using or exploiting, Company products and services, in any
form or media (now known or later developed), without any obligation to account
to Consultant or any third party.

8.             Consultant Representations and
Warranties; Indemnification. Consultant represents, warrants and covenants
that: (i) he has the full power and authority to enter into this Agreement and
to perform his obligations hereunder, without the need for any consents,
approvals or immunities not yet obtained; (ii) his execution of and performance
under this Agreement shall not breach any oral or written agreement with any
third party or any obligation owed by Consultant to any third party to keep any
information or materials in confidence or in trust; (iii) the Invention Ideas
shall be the original work of Consultant; (iv) Consultant has the right to
grant the rights and assignments granted herein, without the need for any
assignments, releases, consents, approvals, immunities or other rights not yet
obtained; (v) the Services, Invention Ideas and Prior Inventions that are
described in Exhibit A and that are incorporated or otherwise included
by Consultant into Company property otherwise necessary or desirable for the
use or exploitation of any deliverable under the Services or other Invention
Idea pursuant to Section 8(e) (and the exercise of the rights granted herein
with respect thereto) do not and shall not infringe, misappropriate or violate
any patent, copyright, trademark, trade secret, publicity, privacy or other
rights of any third party, and are not and shall not be defamatory or obscene;
and (vi) neither the Invention Ideas nor any element thereof shall be subject
to any restrictions or to any mortgages, liens, pledges, security interests,
encumbrances or encroachments. Consultant shall indemnify, defend, and hold
harmless Company (including Company’s officers, directors, employees and
shareholders) from and against any and all claims, demands, losses, costs,
expenses (including attorneys’ fees and costs), obligations, liabilities, and
damages that Company may incur or suffer and that result from or are related to
any breach or failure of Consultant to perform any of the representations,
warranties, and agreements in this Agreement.

9.             Independent Contractor.
Consultant’s relationship with Company shall be that of an independent
contractor and nothing in this Agreement should be construed to create a
partnership, joint venture, agency or employer-employee relationship between
the parties. Consultant is not the agent of Company and is not authorized and
shall not have any authority to make any representation, contract or commitment
on behalf of Company, or otherwise bind Company in any respect whatsoever. The
Consultant shall not be entitled to any of the benefits Company may make
available to its employees, such as stock options, group insurance, workers’
compensation, employee stock purchase plan, vacation and sick pay,
profit-sharing or retirement benefits. To the extent that Consultant becomes
eligible for any benefit programs maintained by Company (regardless of timing
or reason for eligibility), Consultant hereby waives his right to participate
in the programs, and such waiver is not conditioned on any representation or
assumption concerning his status under the common law test. Consultant shall be
solely responsible for all tax returns and payments required to be filed with
or made to any governmental agency or authority with respect to Consultant’s
performance of services and receipt of fees under this Agreement. Consultant
hereby agrees to indemnify, hold harmless and defend Company against any and
all such liability, taxes or contributions, including, without limitation,
penalties and interest.

10.           Assignment; Successors and Assigns.
Consultant 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 

 6
 

 

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 Affiliated
Company. Subject to the foregoing, this Agreement shall be binding upon and
shall inure to the benefit of the parties and their respective heirs, legal
representatives, successors, and permitted assigns, and shall not benefit any
person or entity other than those enumerated above.

11.           Notices. All notices or other
communications required or permitted hereunder shall be made in writing and
shall be deemed to have been duly given if delivered by hand or mailed, postage
prepaid, by certified or registered mail, return receipt requested, and
addressed to the Company at:

Aksys, Ltd.

Two Marriott Drive

Lincolnshire, IL 60069

Attn: Laurence Birch

or to the Consultant at:

WC Dow & Associates

13920 Williston Way

Naples, FL 34119

Notice of change of address shall be effective only
when done in accordance with this Section.

12.           Entire Agreement. The terms of
this Agreement are intended by the parties to be the final expression of their
agreement with respect to the retention of Consultant by the Company and fully
supersedes any prior or contemporaneous agreement between the parties with
respect to the subject matter herein. 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’s letter of resignation from the Company’s
Board of Directors dated March 30, 2006 (the “Director Resignation Letter”), (b)
Consultant’s letter of resignation as the Company’s President and CEO dated March
30, 2006 (the “Officer Resignation Letter”) and (c) the Separation 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.

13.           Amendments; Waivers. 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 the
Consultant. 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 

 7
 

 

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.

14.           Severability; Enforcement. 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 6-7 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 Consultant 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.

15.           Governing Law. 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.

16.           Injunctive Relief. The parties
agree that in the event of any breach or threatened breach of any of the
covenants in Sections 6-7, the damage or imminent damage to the value and
the goodwill of the Company’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 Consultant in the event of any breach or threatened breach of
any such provisions by Consultant, in addition to any other relief (including
damages) available to the Company under this Agreement or under law. Consultant
expressly acknowledges and agrees that the restrictions contained in Sections 6-7
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,
Consultant agrees and acknowledges that the potential harm to the Company of its
non-enforcement of Sections 6-7 outweighs any harm to the
Consultant of its enforcement of such Sections by injunction or otherwise.

17.           Counterparts. 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.

[SIGNATURE
PAGE FOLLOWS]

 8

 

The parties have duly executed this Agreement as of
the date first written above.

	
  

  	
  CONSULTANT:

  
	
   

  	
   

  
	
   

  	
  /s/ William C. Dow

  
	
   

  	
  William Dow

  
	
   

  	
   

  
	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  Aksys, Ltd.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Laurence P. Birch

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Laurence P. Birch

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  CFO

  
				

 

 

EXHIBIT A

DISCLOSURE OF CONFLICTS
OF INTEREST AND PRIOR INVENTIONS

I.                             PRIOR INVENTIONS: Except
as set forth below, there are no ideas, processes, inventions, technology,
writings, programs, designs, formulas, discoveries, patents, copyrights, or
trademarks, or any claims, rights, or improvements to the foregoing, that I
wish to exclude from the operation of this Agreement.

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