Document:

Exhibit 10.7

  EXECUTIVE
    CHAIRMAN AGREEMENT

     

    This
      Executive Chairman Agreement (“Agreement”)
      is
      made and entered into on August 10, 2007, for services commencing as of July
      1,
      2007 (“Commencement
      Date”),
      by
      and between Xcorporeal, Inc., a Delaware corporation (“Company”),
      and
      Terren S. Peizer, an individual (“Chairman”).

     

    1. Term.
      The
      initial term of this Agreement shall begin on the Commencement Date and continue
      for a period of three years (“Initial
      Term”).
      At
      the conclusion of the Initial Term, and each successive term thereafter, the
      Agreement shall be automatically renewed for an additional one-year term, unless
      either party gives written notice of its intention to terminate the Agreement
      at
      least six months prior to the automatic renewal date (collectively, the
“Term”).

     

    2. Services.

     

    (a) Excutive
      Chairman.
      During
      the Term the Chairman shall serve as Executive Chairman of the Board of
      Directors (“Board”)
      of
      Company. Chairman is currently a director and Chairman of the Board of Company,
      and subject to the Board’s fiduciary obligations will take all reasonable action
      necessary to assure that Chairman remains Chairman of the Board. Chairman shall,
      to the extent appointed or elected, continue to serve as Executive Chairman
      of
      the Board throughout the Term.

     

    (b) Position
      and Duties.
      Chairman shall have the general powers, duties and responsibilities usually
      vested in the office of the Executive Chairman of a corporation, and such other
      additional powers as may be prescribed from time to time by the Board. In the
      event that Chairman’s shall be assigned to him duties and responsibilities
      materially inconsistent with Chairman’s position and such situation continues
      for 10 days after notice is given such occurrence shall constitute a termination
      without Good Cause under Section
      4(c).

     

    (c) Other
      Services.
      Company
      acknowledges and pre-approves Chairman’s current responsibilities as Chairman
      and Chief Executive Officer (CEO) of Hythiam, Inc. (“Hythiam”).
      Company further acknowledges that Chairman is subject to a Confidentiality
      Agreement under the terms of Chairman’s employment and directorship with
      Hythiam. In addition, Company acknowledges that Chairman may do charity work
      and
      conduct personal business, as long as such activities do not materially
      interfere with the performance of Chairman’s duties hereunder.

     

    3. Compensation.
      During
      the term of this Agreement, Company shall pay the amounts and provide the
      benefits described in this section, and Chairman agrees to accept such amounts
      and benefits in full payment for Chairman’s services under this
      Agreement.

     

    (a) Cash
      Compensation.
      Chairman’s initial cash compensation will be $450,000 per annum, payable in
      accordance with the Company’s standard practices. In addition, Chairman will
      receive a one-time signing bonus of $225,000 upon full execution of this
      Agreement. Throughout the Term, Company shall pay to Chairman annual cash
      compensation no less than the median cash compensation of similarly positioned
      Executive Chairmen of similarly situated companies, subject to increases as
      provided below. 

     

    
      
        
        

      

      
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    (b) Bonus.
      Subject
      to the foregoing and any restrictions under federal or state law of the rules
      of
      any exchange upon which the shares of Company’s common stock are then traded,
      Chairman shall receive annual bonus cash compensation as determined in the
      reasonable discretion of the Board or its Compensation Committee, targeted
      at no
      less than 100% of annual base cash compensation, and based on (1) the level
      of
      service of Chairman, (2) the achievement of designated individual goals and
      milestones, and (3) the overall performance and profitability of Company
      (collectively, the “Factors”).
      The
      Factors will be established as soon as reasonably practicable and reevaluated
      on
      an annual basis by mutual agreement of Chairman and the Board or its
      Compensation Committee. The bonus will be based on a calendar year and paid
      no
      later than April 15th
      of the
      following year.

     

    (d) Annual
      Review.
      Upon
      each anniversary of the Commencement Date, Chairman’s cash compensation and
      bonus target shall be reevaluated by the Board or its Compensation Committee
      and, if appropriate, increased to ensure appropriate compensation in the
      competitive marketplace based on the position and level of service of
      Chairman.

     

    (e) Replacement
      Review.
      In the
      event that the Company appoints a Co-Chairman, CEO or other officer or director
      who performs a substantial portion of the duties and responsibilities of
      Chairman, Chairman’s cash compensation and bonus target shall be reevaluated,
      and the Board or its Compensation Committee will mutually agree with Chairman
      on
      a decrease or adjustment, if appropriate, to ensure appropriate compensation
      in
      light of any material decrease or adjustment in the required level of service
      of
      Chairman.

     

    (f) Equity
      Incentive Plan.

     

    (1) Chairman
      shall be entitled to participate in any equity compensation, stock option,
      restricted stock, phantom stock right, equity pool, or other such plans or
      arrangements which may exist during the Term, provided that Chairman’s
      entitlement is not inconsistent with the terms of any such arrangement or
      plan.

     

    (2) Chairman
      shall be granted options to purchase shares of Company’s common stock under the
      provisions of Company’s stock incentive plan, at 110% of the fair market value
      on the date of grant, in amounts and at such times as agreed between Chairman
      and the Board or its Compensation Committee based upon the Factors. Except
      as
      otherwise set forth herein, vesting of options will cease upon the termination
      of all of Chairman’s services to Company.

     

    (g) Reimbursement
      of Expenses.
      Company
      shall pay to or reimburse Chairman for all reasonable business, travel,
      promotional and similar expenditures incurred by Chairman.

     

    (h) Deductions.
      Company
      shall deduct and withhold from all compensation payable to Chairman all amounts
      required to be deducted or withheld pursuant to any present or future law,
      ordinance, regulation, order, writ, judgment or decree requiring such deduction
      and withholding. To the extent legally permissible, the Company shall not treat
      any fringe benefits or expense reimbursement as income to Chairman.

     

    
      
        
        

      

      
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    4. Termination

     

    (a) Termination
      With Good Cause or Without Good Reason.
      Company
      may terminate Chairman’s services at any time, with or without notice or Good
      Cause (as defined below). If Company terminates Chairman’s services with Good
      Cause, or if Chairman resigns without Good Reason (as defined below), Company
      shall pay Chairman any accrued but unpaid cash compensation, prorated through
      the date of termination, at the rate in effect at the time notice of termination
      is given, together with any benefits accrued through the date of termination.
      Company shall have no further obligations to Chairman under this Agreement
      or
      any other agreement, and all unvested options will terminate. To the extent
      legally permissible under the incentive compensation plan, all vested options
      shall be exercisable until the end of their original term.

     

    (b) Termination
      Without Good Cause or with Good Reason.
      Chairman shall have the right to terminate Chairman’s services to Company with
      notice and Good Reason. If Company terminates Chairman’s employment without Good
      Cause, or Chairman resigns for Good Reason:

     

    (1) Company
      shall pay Chairman’s cash compensation prorated through the date of termination,
      at the rate in effect at the time notice of termination is given, together
      with
      any benefits accrued through the date of termination;

     

    (2) Company
      shall pay Chairman in a lump sum an amount equal to three years’ of additional
      (i) cash compensation (at the rate in effect at the time of termination) and
      (ii) bonus (based on 100% of the targeted bonus for the year of
      termination);

     

    (3) All
      of
      Chairman’s unvested stock options will vest immediately, and remain exercisable
      for the full term thereof; and

     

    Company
      shall have no further obligations to Chairman under this Agreement or any other
      agreement.

     

    (c) Good
      Cause.
      For
      purposes of this Agreement, a termination shall be for “Good
      Cause”
if
      Chairman shall willfully:

     

    (1) Commit
      fraud or embezzlement in connection with Chairman’s duties;

     

    (2) Materially
      violate the Company’s written Codes of Ethics as adopted by the Board under the
      Sarbanes-Oxley Act;

     

    (3) Refuse
      to
      comply with a relevant and material obligation assumable and chargeable to
      an
      executive of Chairman’s corporate rank and responsibilities under the
      Sarbanes-Oxley Act and the regulations of the Securities and Exchange Commission
      promulgated thereunder; or

     

    
      
        
        

      

      
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    (4) Be
      convicted of, or enter a plea of guilty to, a felony under state or federal
      law,
      other than a vehicle related offense or an offense not involving dishonesty
      or
      moral turpitude.

     

    (d) Good
      Reason.
      For
      purposes of this Agreement, a resignation shall be with “Good
      Reason”
      following:

     

    (1) The
      assignment to Chairman of duties materially inconsistent with Chairman’s status
      and title, or the removal of Chairman as a director or as Chairman of the
      Board;

     

    (2) Company’s
      failure to cause any acquiring or successor entity following a Change in Control
      to assume Company’s obligations under this Agreement, unless such assumption
      occurs by operation of law; or

     

    (3) Material
      breach of this Agreement by Company, which continues after written notice and
      reasonable opportunity to cure (not to exceed 10 days after the date of notice),
      or failure to timely pay to Chairman any amount due under Section
      3.

     

    (e) Effects
      of Change in Control.
      Immediately upon a Change in Control (as defined below) all of Chairman’s
      unvested options shall vest immediately, and remain exercisable for a period
      of
      three years thereafter.

     

    (f) Change
      in Control.
      For
      purposes of this Agreement, a “Change
      in Control”
      means:

     

    (1) any
      “person” (as used in Sections 13(d) and 14(d) of the Securities Exchange Act of
      1934, as amended (the “Exchange
      Act”)),
      other than a trustee or other fiduciary holding under an employee benefit plan,
      becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
      Act) of securities representing at least 50% of (i) the outstanding
      shares of common stock of the Company or (ii) the combined voting power of
      the
      Company’s then outstanding securities; 

     

    (2)
       the
      Company is party to a merger or consolidation which results in the voting
      securities of the Company outstanding immediately prior thereto failing to
      continue to represent (either by remaining outstanding or by being converted
      into voting securities of the surviving or another entity) more than 50% of
      the combined voting power of the voting securities of the Company or such
      surviving or other entity outstanding immediately after such merger or
      consolidation; 

     

    (3)
       the
      sale
      or disposition of all or substantially all of the Company’s assets (or
      consummation of any transaction having similar effect); 

     

    (4)
       the
      dissolution or liquidation of the Company; or 

     

    (5) the
      composition of the Board changes during any period of 36 months such that
      individuals who at the beginning of the period were members of the Board (the
      “Continuing
      Directors”)
      cease
      for any reason to constitute a majority thereof; unless a majority of the
      Continuing Directors has either (i) approved the election of the new directors,
      or (ii) if the election of the new directors is voted on by shareholders,
      recommended that the shareholders vote for approval.

     

    
      
        
        

      

      
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    (g) No
      Change in Control.
      Notwithstanding the provisions of Section
      4(f),
      the
      following shall not constitute a Change in Control:

     

    (1) If
      the
      sole purpose of the transaction is to change the state of the Company’s
      incorporation or to create or eliminate a holding company that will be owned
      in
      substantially the same proportions by the same beneficial owners as before
      the
      transaction;

     

    (2) If
      Company’s stockholders of record as constituted immediately prior to the
      transaction will, immediately after the transaction (by virtue of securities
      issued as a consideration for Company’s capital stock or assets or otherwise),
      hold more than 50% of the combined voting power of the surviving or acquiring
      entity’s outstanding securities;

     

    (3) An
      underwritten public offering of Company’s common stock, if Company’s
      stockholders of record as constituted immediately prior to the offering will,
      immediately after the offering, continue to hold more than 50% of the combined
      voting power of Company’s outstanding securities;

     

    (4) The
      private placement of preferred or common stock, or the issuance of debt
      instruments convertible into preferred or common stock, for fair market value
      as
      determined by the Board, provided the acquiring person does not as a result
      of
      the transaction own at least 50% of the outstanding capital stock of Company,
      have the right to vote at least 50% of the outstanding voting stock of Company,
      or have the right to elect a majority of the Board; or

     

    (5) If
      Chairman is a member of a group that acquires control of Company in an event
      that would otherwise be a Change in Control, such event shall not be deemed
      a
      Change in Control and Chairman shall have no right to benefits hereunder as
      a
      result of such event; provided, however, that Chairman shall not be deemed
      a
      member of any acquiring group solely by virtue of Chairman’s continued
      employment or ownership of stock or stock options following a Change in
      Control.

     

    (h) Gross-Up
      Payment.

     

    (1) Notwithstanding
      the above, if any of the compensation payable upon termination of Chairman’s
      services as provided for above (the “Payments”)
      triggers the application of Internal Revenue Code Section 280G, or makes
      Chairman liable for payment of the excise tax (the “Excise
      Tax”)
      provided for under Section 4999 of the Code, or any other statute or regulation
      under which Chairman may be penalized as a result of the nature or amount of
      such compensation, then Company or the acquiring or successor entity of Company
      shall pay to Chairman an additional amount (the “Gross-Up”)
      such
      that the net after-tax amount retained by the Chairman, after deduction of
      (A)
      any Excise Tax on the Payments, and (B) any federal, state, local or foreign
      income, employment or other tax and Excise Tax upon any payment provided for
      by
      this section, shall be equal to the Payments, reduced by the amount of any
      United States federal, state and local income or employment tax liability of
      the
      Chairman calculated as if the Payments were not subject to the Excise Tax.
      The
      determination of whether any of the Payments will be subject to the Excise
      Tax
      and the amount of such Excise Tax will be made by Company’s regular independent
      public accounting firm.

     

    
      
        
        

      

      
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    (2) In
      the
      event that the Excise Tax is subsequently determined to be less than the amount
      taken into account under this section, Chairman shall repay to Company at the
      time that the amount of such reduction of Excise Tax is finally determined,
      an
      amount equal to the sum of the following: (i) the amount of the reduction of
      the
      Excise Tax, (ii) the amount of the reduction in all other taxes generated by
      the
      reduction in the Excise Tax, and (iii) interest on the amount of the sum of
      (i)
      and (ii) at the rate provided in Section 1274(b)(2)(B) of the
      Code.

     

    (3) In
      the
      event that the Excise Tax is determined to exceed the amount previously taken
      into account under this section (including by reason of any payment the
      existence or amount of which cannot be determined at the time of the Gross-Up),
      Company shall make an additional Gross-Up payment in respect to such excess
      (plus any interest payable with respect to such excess) at the time that the
      amount of such excess is finally determined in accordance with the principles
      set forth above.

     

    (i) Death
      or Disability.
      To the
      extent consistent with federal and state law, Chairman’s services and cash
      compensation shall terminate on Chairman’s death or Disability. “Disability”
means
      any physical or mental health condition beyond Chairman’s control that
      completely prevents Chairman from performing Chairman’s duties, even after all
      reasonable accommodations are made by Company, for a period of more than 180
      consecutive days within an annual period of the Term. In the event of
      termination due to death or Disability, Company shall pay Chairman (or
      Chairman’s legal representative) Chairman’s cash compensation prorated through
      the date of termination, at the rate in effect at the time of termination and
      continue to provide insurance and other fringe benefits to Chairman and
      Chairman’s spouse and dependent children for a period of one year from
      Chairman’s termination date. In the event of a termination due to death or
      Disability, in addition to all options already vested, 100% of the options
      set
      to vest in the year that death or disability occurs shall vest and Chairman
      shall have until the end of the option term to exercise all options. Company
      shall have no further obligations to Chairman under this Agreement, except
      for
      those created under any stock option agreements executed prior to the effective
      date of termination, and any other vested rights under the employee benefit
      plans and programs and the right to receive reimbursement for business expenses
      as provided for in Section
      3(h).

     

    (j) Return
      of Company Property.
      Within
      30 days after the Termination Date, Chairman shall return to Company all
      products, books, records, forms, specifications, formulae, data processes,
      designs, papers and writings relating to the business of Company including
      without limitation proprietary or licensed computer programs, customer lists
      and
      customer data, and/or copies or duplicates thereof in Chairman’s possession or
      under Chairman’s control. Chairman shall not retain any copies or duplicates of
      such property and all licenses granted to him by Company to use computer
      programs or software shall be revoked on the Termination Date.

     

    5. Duty
      Of Loyalty.
      During
      the term of this Agreement, Chairman shall not, without the prior written
      consent of Company, engage in any activity directly competitive with the
      business or welfare of Company, whether alone, as a partner, or as an officer,
      director, employee, consultant, or holder of more than 10% of the capital stock
      of any other corporation. Otherwise, Chairman may make personal investments
      in
      any other business. The parties agree that the activities provided for in
Section
      2(c)
      are not
      directly competitive with the business or welfare of Company.

     

    
      
        
        

      

      
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    6. Cure
      Period

     

    In
      the
      event that Chairman or Company breaches this Agreement, the breaching party
      shall have 30 days within which to cure such breach, after receiving written
      notice from the other party specifying in reasonable detail the basis for the
      claimed breach (“Cure
      Period”).
      No
      breach of the Agreement shall be actionable if the breaching party is able
      to
      cure the breach within the Cure Period.

     

    7. Other
      Provisions.

     

    (a) Compliance
      With Other Agreements.
      Company
      acknowledges that Chairman is subject to an Employment Agreement and
      Confidentiality agreement with Hythiam. Chairman represents to Company that,
      to
      the best of Chairman’s knowledge and belief, the execution, delivery and
      performance of this Agreement will not conflict with or result in the violation
      or breach of any term or provision of any other agreement, order, judgment
      or
      injunction to which Chairman is a party or by which Chairman is bound. Should
      claims, demands, causes of action, costs or expenses (including attorneys’ fees)
      arise from any alleged breach of contract as a result of accepting a position
      with Company, Company will indemnify Chairman for all reasonable legal fees,
      costs and expenses arising out of or relating thereto. 

     

    (b) Nondelegable
      Duties.
      This is
      a contract for Chairman’s personal services. The duties of Chairman under this
      Agreement are personal and may not be delegated or transferred in any manner
      whatsoever, and shall not be subject to involuntary alienation, assignment
      or
      transfer by Chairman during Chairman’s life.

     

    (c) Governing
      Law.
      The
      validity, construction and performance of this Agreement shall be governed
      by
      the laws, without regard to the laws as to choice or conflict of laws, of the
      State of California.

     

    (d) Venue.
      If any
      dispute arises regarding the application, interpretation or enforcement of
      any
      provision of this Agreement, such dispute shall be resolved in Los Angeles
      County, California.

     

    (e) Severability.
      The
      invalidity or unenforceability of any particular provision of this Agreement
      shall not affect the other provisions, and this Agreement shall be construed
      in
      all respects as if any invalid or unenforceable provision were
      omitted.

     

    (f) Binding
      Effect.
      The
      provisions of this Agreement shall bind and inure to the benefit of the parties
      and their respective successors and permitted assigns.

     

    (g) Notice.
      Any
      notices or communications required or permitted by this Agreement shall be
      deemed sufficiently given if in writing and when delivered personally or four
      (4) business days after deposit with the United States Postal Service as
      registered or certified mail, postage prepaid and addressed as follows: (1)
      If
      to Company, to the principal office of Company in the State of California,
      marked “Attention: Compensation Committee,” with a copy to the Company’s general
      outside counsel; or (2) If to Chairman, to the most recent address for Chairman
      appearing in Company’s records.

     

    
      
        
        

      

      
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    (h) Arbitration.
      Any
      disputes, controversies or claims arising out of or relating to this Agreement,
      including without limitation any failure to reach mutual agreement pursuant
      to
Sections
      3(b) or (e),
      shall
      be resolved by binding arbitration before a retired judge at JAMS in Santa
      Monica, California, in accordance with its Employment Arbitration Rules and
      Procedures. To the extent permitted by the rules and applicable law, the
      prevailing party shall be awarded its reasonable attorney’s fees, costs and
      expenses.

     

    (i) Headings.
      The
      Section and other headings contained in this Agreement are for reference
      purposes only and shall not affect in any way the meaning or interpretation
      of
      this Agreement.

     

    (j) No
      Third Party Beneficiaries. This
      Agreement shall inure to the benefit of the parties and their permitted
      successors and assigns only. There are no intended third party beneficiaries
      under this Agreement.

     

    (k) No
      Disparagement. During
      the Term, and at all times thereafter, the parties agree that they will not
      disparage each other in any fashion.

     

    (l) Amendment
      and Waiver.
      This
      Agreement may be amended, modified or supplemented only by a writing executed
      by
      each of the parties. Either party may in writing waive any provision of this
      Agreement to the extent such provision is for the benefit of the waiving party.
      No waiver by either party of a breach of any provision of this Agreement shall
      be construed as a waiver of any subsequent or different breach, and no
      forbearance by a party to seek a remedy for noncompliance or breach by the
      other
      party shall be construed as a waiver of any right or remedy with respect to
      such
      noncompliance or breach.

     

    
      
        
        

      

      
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    (m) Entire
      Agreement.
      This
      Agreement contains the entire agreement and understanding between the parties,
      and supersedes all prior and contemporaneous agreements, negotiations,
      understandings, promises, representations and warranties, whether oral or
      written.

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      day
      and year first above written.

     

    
      	
              COMPANY:

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
              XCORPOREAL,
                INC.

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
              By:

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Director

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
              By:

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Director

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
              CHAIRMAN:

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
              Terren
                S. Peizer

            	
               

            

    

     

    
      
        
        

      

      
        9Exhibit 10.8

     

    EMPLOYMENT
      AGREEMENT 

     

         This
      Employment Agreement (“Agreement”)
      is
      entered into as of August 10, 2007, between Xcorporeal, Inc., a Delaware
      corporation (“Company”),
      and
      Robert Weinstein, an individual (“Executive”).
      

     

    Recitals 

     

         A. The
      Company is engaged in the business of developing and marketing Hospital
      Artificial Kidney (HAK), Wearable Artificial Kidney (WAK), Hospital
      Ultrafiltration Device (HUD) and Wearable Ultrafiltration Device
      (WUD) products, including performing lab experimentation, equipment
      testing, design review, verification, validation, development of prototypes
      and
      reporting, and U.S. Food & Drug Administration and other regulatory approval
      processes (the “Business”).
      

     

         B. The
      Company desires to employ the Executive as its Chief Financial Officer, and
      the
      Executive desires to be so employed by the Company, on the terms and conditions
      hereinafter set forth. 

     

         NOW,
      THEREFORE, in consideration thereof and of the covenants and conditions
      contained herein, the parties agree as follows: 

     

    Agreement 

     

         1. Board
      Approval.
      The
      Company and the Executive acknowledge that this entire Agreement is subject
      to
      approval by the Company’s Board of Directors (“Board”).
      

     

         2. Employment.
      The
      Company hereby agrees to employ the Executive, and the Executive hereby agrees
      to serve as the Chief Financial Officer of the Company. The Executive agrees
      to
      perform such lawful services customary to that office and to perform those
      services assigned to him from time to time by the Company’s Executive Chairman,
      Chief Executive Officer, President, Chief Operating Officer, or Board. The
      Executive further agrees to use his best ability and skills to promote the
      interests of the Company and to devote his full business time and energies
      to
      the business and affairs of the Company. 

     

         3. Term
      of Agreement.
      The
      Executive’s employment with the Company shall commence on a date to be
      determined by the parties, subject to the Board’s approval of this Agreement,
      which date when determined will be the “Effective
      Date”
and
      provided in Section 10 below. Subject to the terms of Sections 5 and 6
      of this Agreement, the Term of this Agreement will commence on the Effective
      Date for a period of three (3) years, if the Executive relocates his
      residence to Southern California within one year after the Effective Date,
      and
      thereafter will renew automatically for one (1) year terms unless either
      the Company or the Executive provides written notice of non-renewal to the
      other
      party not later than ninety (90) days prior to the scheduled expiration of
      the Term in effect. In the event the Executive does not relocate his residence
      to Southern California within one year after the Effective Date, the Term of
      this Agreement will be for a period of one (1) year, and thereafter will
      continue on a month-to-month basis subject to the terms of Sections 5 and 6
      of this Agreement. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

         4. Compensation
      and Other Related Matters.
      

     

              (a)
      Salary.
      As
      compensation for services rendered hereunder, the Executive shall receive an
      annual base salary (“Base
      Salary”)
      of Two
      Hundred Seventy-Five Thousand Dollars ($275,000.00), which salary shall be
      paid
      in accordance with the Company’s then prevailing payroll practices. The Company
      shall not decrease the Executive’s Base Salary. At the Company’s sole discretion
      the Executive’s Base Salary may be increased annually. Notwithstanding the
      foregoing, commencing January 1, 2008 and annually thereafter, the Base
      Salary shall be increased by at least the Consumer Price Index for Los Angeles,
      California (or a reasonable proxy thereof). 

     

              (b)
      Bonus.
      During
      the term of this Agreement, and in the Company’s sole discretion, the Executive
      shall be eligible to receive an annual discretionary bonus of up to 50% of
      the
      Executive’s base salary at the end of each calendar year, subject to the
      Executive and the Company achieving annual performance objectives. The annual
      performance objectives will be agreed before the start of each calendar year
      between the Executive and the Chief Operating Officer, subject to the approval
      of the Company’s Board of Directors or its Compensation Committee. To receive
      each annual discretionary bonus, the Executive must still be employed with
      the
      Company as of December 31 of the year for which the annual discretionary
      bonus is payable and not be in breach at the time the bonus is payable. The
      Company agrees that the Executive shall receive a guaranteed bonus of no less
      than 20% of the Executive’s Base Salary at the end of calendar year 2007
      (“2007
      Bonus”).
      The
      2007 Bonus shall be calculated based on the total Base Salary actually earned
      by
      the Executive between the Effective Date and December 31, 2007. Subject to
      achievement of the 2007 performance objectives agreed upon the parties set
      forth
      in Schedule I attached hereto, and at the Company’s sole discretion, the
      Executive shall be eligible to receive a discretionary bonus (in addition to
      the
      2007 Bonus) at the end of calendar year 2007. 

     

              (c)
      Stock
      Options.
      

     

                   (i) Grant
      of Shares.
      On the
      Effective Date, the Executive shall be granted options to purchase three hundred
      thousand (300,000) shares of common stock under the 2006 Incentive Compensation
      Plan (the “Plan”).
      Such
      options will vest and be exercisable at a rate of twenty-five percent (25%)
      per
      year commencing on the first anniversary of the date of grant and will have
      an
      exercise price equal to the Fair Market Value, as such term is defined in the
      Plan, on the date of grant. 

     

                   (ii) Acceleration.
      Notwithstanding provision (i) above, and provided that the Executive has
      already relocated to Southern California: (A) any options not vested upon
      Executive’s death or the termination of the Executive’s employment because he
      has become Disabled (as defined below) will immediately vest and be exercisable
      in accordance with the Plan; (B) if the Company terminates the Executive
      without Cause (as defined below) before the end of twelve (12) months from
      the
      Effective Date, the first tranche of twenty-five percent (25%) of the
      Executive’s options will immediately vest and be exercisable in accordance with
      the Plan upon termination; (C) if the Company terminates the Executive without
      Cause after twelve (12) months but before the end of eighteen
      (18) months from the Effective Date, the second tranche of twenty-five
      percent (25%) of the Executive’s options will immediately vest and be
      exercisable 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    in
      accordance with the Plan; (D) if the Company terminates the Executive
      without Cause after eighteen (18) months but before the end of thirty
      (30) months from the Effective Date, the third tranche of twenty-five
      percent (25%) of the Executive’s options will immediately vest and be
      exercisable in accordance with the Plan; and (E) if the Company terminates
      the Executive without Cause after thirty (30) months from the Effective
      Date, the entire grant of three hundred thousand (300,000) options described
      in
      4(c)(i) will immediately vest and be exercisable in accordance with the Plan.
      

     

                   (iii) Fair
      Market Value.
      In the
      event, at the time the Executive elects to exercise any options, the common
      stock of Employer is not trading in sufficient volume to permit the Executive
      to
      immediately sell the common stock acquired upon exercise in the open market
      (subject to any then applicable securities laws), the Executive may pay the
      exercise price for such shares by either (A) the surrender of that portion
      of the exercised option shares having a Fair Market Value on the date of
      exercise equal to the aggregate exercise price of the options so exercised
      or
      (B) the surrender of Employer’s common stock having a Fair Market Value on
      the date of exercise equal to the exercise price of the options so exercised
      and, in the case of common stock acquired by the Executive directly or
      indirectly from Employer, has been owned by the Executive for a sufficient
      period to avoid a compensation expense to Employer under then applicable
      accounting rules. 

     

                   (iv) Change
      of Control.
      

     

                        (A) Provided
      the Executive has relocated to Southern California prior to the effective date
      of a Change in Control, if the acquirer in the Change in Control does not adopt
      the Executive’s option grant under the Plan in accordance with 26 C.F.R. 1.424-1
      or offer the Executive a substitute grant under the acquirer’s plan having
      similar economic value to the Executive’s option grant under the Plan, any
      options granted to the Executive under the Plan that would not otherwise be
      vested on the effective date of the Change in Control shall immediately vest
      and
      be exercisable immediately prior to the effective date of the Change in Control.
      

     

                        (B) Provided
      the Executive has relocated to Southern California before the effective date
      of
      a Change in Control, if the acquirer in the Change in Control adopts the
      Executive’s option grant under the Plan in accordance with 26 C.F.R. 1.424-1, or
      offers the Executive a substitute grant under the acquirer’s stock option plan
      having similar economic value to the Executive’s option grant under the Plan,
      and (1) within six (6) months following the effective date of the
      Change in Control the acquirer terminates the Executive’s employment without
      Cause, or (2) if within twelve (12) months of the Effective Date and
      within six (6) months of the effective date of the Change in Control if the
      acquirer terminates the Executive with or without cause, then to the extent
      that
      twenty-five percent (25%) or more of the Executive’s total granted options
      remain unvested on the date his employment terminates, twenty-five percent
      (25%)
      of the Executive’s total granted options from the acquirer (by adoption or
      grant) shall immediately vest and be exercisable. For the avoidance of doubt,
      if
      the acquirer does not agree to include this right in its substitute grant to
      the
      Executive, the Executive’s option grant under the Plan shall be treated as under
      Section 4(c)(iv)(A) above. 

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

                        (C) If
      the Executive has not relocated to Southern California prior to the effective
      date of the Change in Control, the Executive shall not be entitled to any
      acceleration in the vesting of his options under the Plan in connection with
      the
      Change in Control. 

     

                        (D) For
      purposes of this Agreement, a “Change
      in Control”
shall
      be defined as (1) the acquisition of the Company by another entity by means
      of a transaction or series of related transactions (including, without
      limitation, any reorganization, merger, stock purchase or consolidation) or
      (2) the sale, transfer or other disposition of all or substantially all of
      the Company’s assets. 

     

                   (v) In
      all other respects, the stock options granted under this paragraph 4(c) shall
      be
      subject to the Plan. 

     

                   (vi) In
      addition to the stock options described above, the Executive will be eligible
      to
      receive stock, stock options, or other securities of the Company under plans
      that are provided to other similar executives of the Company. Future grants,
      if
      any, will vest according to the terms at time of grant. 

     

              (d)
      Other
      Benefits.
      The
      fringe benefits, perquisites, and other benefits of employment to be provided
      to
      the Executive shall be equivalent to such benefits and perquisites as are
      provided to other similar executives of the Company as amended from time to
      time. The Executive’s Paid Time Off is defined and will accrue pursuant to the
      Paid Time Off provisions of the Company’s Employee Handbook, except that the
      Executive will be entitled to vacation of four (4) weeks during each year of
      employment, which may be taken by the Executive upon prior notice in accordance
      with the Company’s policies applicable to Company executives. In addition, the
      Executive will be provided with accidental death and disability and long-term
      disability insurance in amounts each no less than the Executive’s annual Base
      Salary then in effect, or reimbursed for the reasonably equivalent cost of
      a
      private disability policy up to $1000 per month. If necessary, the Company
      will
      reimburse the Executive for COBRA coverage until such time as the Executive
      is
      covered under the Company’s group medical and dental plans. 

     

              (e)
      Equipment.
      Company
      will provide Executive with a suitable notebook computer and related equipment
      to enable Executive to conduct business from his New York home office. The
      Company agrees to provide other personal computer equipment necessary for the
      Executive to perform his duties upon submission of request by the Executive
      and
      approval by the Company. All equipment provided will remain the Company’s
      property and the Executive agrees to provide the Company access to the equipment
      immediately upon request due to regulatory requirements or any other reason.
      

     

              (f)
      Expenses.
      The
      Executive will be reimbursed for all reasonable and customary out-of-pocket
      expenses actually incurred by him in the furtherance of his duties under this
      Agreement. Such expenses shall be reimbursed upon submission to the Company
      of
      invoices containing original receipts for all such expenditures, and upon review
      by the Company with respect to the reasonable nature and amount thereof.
      Reasonable expenses include reimbursement for telephone charges for
      business-related calls from the Executive’s New York home office and mobile
      phone charges for business-related calls, provided that itemized invoices

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    are
      submitted within thirty (30) days of the Executive’s receipt of the
      statement for those charges. 

     

              (g)
      Commuting
      Expenses.
      The
      Company shall reimburse the Executive for reasonable commuting expenses,
      consistent with the Travel Policy in the Company’s Employee Handbook, between
      the Executive’s Irvington, New York, residence and the Company’s Los Angeles,
      California offices for a period of up to twelve (12) months from the
      Effective Date. 

     

              (h)
      Presence
      in LA Office.
      Executive agrees to spend at least one week per month at the Company’s Los
      Angeles office located at 11150 Santa Monica Boulevard, Suite 340, 90025.

     

              (i)
      Moving
      Expenses.
      Within
      twelve (12) months from the Effective Date, Executive will have the
      opportunity to relocate his and his immediate family’s one residence to Southern
      California. The Company agrees to reimburse the Executive for the reasonable
      expenses incurred in transporting his and his immediate family’s one household
      and belongings from Irvington, New York to Los Angeles, California. The Company
      further agrees to reimburse the Executive for the closing costs incurred by
      the
      Executive with respect to the sale of his New York residence and the purchase
      of
      his new residence in California. The Executive agrees to provide the Company
      with an estimate of the cost for approval before the move, and after the move,
      the Company will reimburse the Executive the actual costs paid. 

     

         5. Termination.
      

     

              (a)
      Employment
      At-Will.
      Executive’s employment with the Company is at-will, which means that either the
      Executive or the Company can terminate it at any time, without notice, for
      any
      cause, or no cause. For purposes of this Agreement, a termination shall be
      for
“Cause”
if
      Executive, in the good faith opinion of the Company’s Board,: 

     

                   (i) Commits
      an act of fraud, moral turpitude, misappropriation of funds or embezzlement
      in
      connection with his duties; 

     

                   (ii) Materially
      breaches the Executive’s fiduciary duty to the Company, including, but not
      limited to, acts of self-dealing (whether or not for personal profit);

     

                   (iii) Materially
      breaches this Agreement, provided, however, that (A) no termination shall
      occur on that basis unless, if the breach is curable, the Company first provides
      the Executive with written notice to cure (the notice to cure shall reasonably
      specify the acts or omissions that constitute the Executive’s material breach),
      (B) the Executive shall have a reasonable opportunity (not to exceed
      30 days after the date of notice to cure) to cure the breach and
      (C) termination shall be effective as of the date of notice to cure;

     

                   (iv) Materially
      breaches the Confidentiality Agreement or the Company’s written Codes of Ethics
      as adopted by the Board; 

     

                   (v) Materially
      violates any provision of Company’s written Employee Handbook, or any applicable
      state or federal law or regulation; 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

                   (vi) Except
      during a Disability Period, defined below, fails or refuses to comply with
      all
      relevant and material obligations, assumable and chargeable to an executive
      of
      his corporate rank and responsibilities, under the Sarbanes-Oxley Act and the
      regulations of the Securities and Exchange Commission promulgated thereunder;
      

     

                   (vii) Fails
      or refuses to comply with the lawful directives of the Company in the
      performance of his duties under this Agreement (except during a Disability
      Period); 

     

                   (viii) Engages
      in willful misconduct that is materially injurious to the Company; 

     

                   (ix) Uses
      illegal substances, or excessively uses alcohol to a point of substantially
      impairing his faculties, senses, or judgment, while on Company premises or
      performing Company Business; 

     

                   (x) Is
      convicted of, or enter a plea of guilty or no contest to, a felony or
      misdemeanor under state or federal law, other than a traffic violation or
      misdemeanor not involving dishonesty or moral turpitude; or 

     

                   (xi) Commits
      an act of gross neglect or gross misconduct which the Company reasonably deems
      to be good and sufficient cause. 

     

              (b)
      Good
      Reason.
      For
      purposes of this Agreement, a resignation shall be for “Good
      Reason”
if
      tendered by the Executive within thirty (30) days of any of the following
      actions by or involving the Company: 

     

                   (i) Assignment
      to the Executive of duties materially inconsistent with the Executive’s status,
      or a substantial reduction in the nature or status of the Executive’s
      responsibilities; 

     

                   (ii) After
      the Executive’s relocation to Los Angeles, the relocation of the Executive’s
      site of employment outside a 30 mile radius of Los Angeles without the
      Executive’s consent, except for reasonably required travel on Company’s
      Business; 

     

                   (iii) Failure
      to cause any acquiring or successor entity following a Change in Control to
      assume the Company’s obligations under this Agreement, unless such assumption
      occurs by operation of law; 

     

                   (iv) Material
      breach of this Agreement by the Company including failure to timely pay to
      the
      Executive any amount due under Section 3, which continues after written
      notice and reasonable opportunity to cure (not to exceed 30 days after the
      date of notice); or 

     

                   (v) Demand
      by the Company, Board, or any other senior executive that the Executive violate
      any relevant and material obligations, assumable and chargeable to an executive
      of his corporate rank and responsibilities, under the Sarbanes-Oxley Act and
      the
      regulations of the Securities and Exchange Commission promulgated thereunder.
      

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

              (c)
      Long
      Term Disability.
      If the
      Executive becomes Disabled, the Company may terminate his employment if he
      becomes Disabled upon thirty (30) days prior written notice to the
      Executive. “Disabled”
means
      the Executive is: (i) unable to engage in any substantial gainful activity
      by reason of any medically determinable physical or mental impairment, as
      diagnosed by a reputable, independent physician, which can be expected to result
      in death or can be expected to last for a continuous period of not less than
      six
      (6) months, or (ii) by reason of any medically determinable physical
      or mental impairment, as diagnosed by a reputable, independent physician, which
      can be expected to result in death or can be expected to last for a continuous
      period of not less than six (6) months. 

     

              (d)
      Death.
      The
      Executive’s employment shall terminate immediately upon the death of the
      Executive. 

     

         6. Compensation
      Upon Termination or Death, or During Disability.
      

     

              (a)
      Cause.
      If the
      Company terminates the Executive’s employment for Cause, the Company shall
      continue to pay the Executive the Base Salary at the rate set forth in Section
      4(a) through the date of termination of the Executive’s employment, together
      with any benefits accrued under Section 4 through the date of termination
      including, but not limited to, payment for accrued vacation days and
      reimbursement for expenses (collectively, “Accrued
      Obligations”).
      Thereafter, the Company shall have no further obligation to the Executive under
      this Agreement. 

     

              (b)
      Termination
      Without Cause by the Company.
      If the
      Company terminates the Executive’s employment without Cause as defined in
      Section 5(a) of this Agreement, the Company shall pay the Executive an amount
      equal to twelve (12) months of the Executive’s Base Salary at the rate in
      effect at the date of termination of the Executive’s employment plus all Accrued
      Obligations. In addition to any rights under COBRA, the term for continued
      medical benefits provided by the Company to the Executive and his family shall
      continue for a period of twelve (12) months from the date of termination without
      Cause, provided that coverage will terminate sooner if the Executive becomes
      eligible for coverage under another employer’s plan. Thereafter, the Company
      shall have no further obligation to the Executive under this Agreement.

     

              (c)
      Termination
      for Good Reason by the Executive.
      If the
      Executive terminates the Executive’s employment with Good Reason as defined in
      Section 5(b) of this Agreement, the Company shall pay the Executive an amount
      equal to twelve (12) months of the Executive’s Base Salary at the rate in
      effect at the date of termination of the Executive’s employment plus all Accrued
      Obligations. In addition to any rights under COBRA, the term for continued
      medical benefits provided by the Company to the Executive and his family shall
      continue for a period of twelve (12) months from the date of termination for
      Good Reason, provided that coverage will terminate sooner if the Executive
      becomes eligible for coverage under another employer’s plan. Thereafter, the
      Company shall have no further obligation to the Executive under this Agreement.
      

     

              (d)
      Disability.
      During
      any period that the Executive fails to perform his full-time duties with the
      Company as a result of becoming Disabled (the “Disability
      Period”),
      the
      Executive shall continue to receive his Base Salary at the rate set forth in
      Section 4(a) of this 

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    Agreement
      and all Accrued Obligations, less any compensation payable to the Executive
      under the applicable disability insurance plan of the Company during such period
      until this Agreement is terminated pursuant to Section 5(c). Thereafter,
      the Executive’s benefits shall be determined under the Company’s insurance and
      other compensation programs then in effect in accordance with the terms of
      such
      programs and the Company shall have no further obligation to the Executive
      under
      this Agreement. 

     

              (e)
      Death.
      In the
      event of the Executive’s death, the Executive’s beneficiary shall be entitled to
      receive the Base Salary at the rate set forth in Section 4(a) until the date
      of
      his death plus all Accrued Obligations. Thereafter, the Executive’s benefits
      shall be determined under the Company’s insurance and other compensation
      programs then in effect in accordance with the terms of such programs and the
      Company shall have no further obligation to the Executive or the Executive’s
      beneficiary under this Agreement. 

     

         7. Confidentiality.
      

     

              (a) The
      Executive will execute the Company’s standard Executive Innovation, Proprietary
      Information and Confidentiality Agreement (“Confidentiality
      Agreement”),
      which
      is incorporated herein by reference. 

     

              (b)
      No
      Solicitation of Employees.
      During
      employment with Company and for one (1) year thereafter the Executive will
      not encourage or solicit any other employee of Company to terminate his or
      her
      employment or independent contractor who was involved in a project related
      to
      the Business, for any reason, nor will the Executive assist others to do so.
      General advertisements and employment fairs shall not be construed as
      solicitation for purposes of this Section. 

     

              (c)
      No
      Solicitation of Customers.
      During
      employment with Company and for one (1) year thereafter the Executive will
      not, directly or indirectly call on, or otherwise solicit, business from any
      actual customer or potential customer known by the Executive to be targeted
      by
      Company, nor will he assist others in doing so. 

     

              (d)
      Disclosure
      of Confidential Information:
      Executive shall not accept employment with any direct competitor of Company
      for
      a period of one (1) year where it would be impossible for Executive to
      perform his new job without using or disclosing trade secrets or confidential
      information. 

     

         8. Insurance
      and Indemnification.
      

     

              (a) The
      Company shall provide the Executive with officers and directors’ insurance, or
      other liability insurance, consistent with its usual business practices, to
      cover the Executive against all insurable events related to his employment
      with
      the Company. 

     

              (b) The
      Company shall indemnify, hold harmless and pay the cost of defending the
      Executive to the fullest extent permitted by applicable law in connection with
      any claim, action, suit, investigation or proceeding arising out of or relating
      to performance by the Executive of services for, or action of the Executive
      as
      an officer or employee of the Company, or of any other person or enterprise
      at
      the request of the Company. The Company shall also pay 

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    all
      judgments, awards, settlement amounts and fines associated with the foregoing.
      Reasonable legal cost and expenses incurred by the Executive relating to the
      performance of his duties and responsibilities as an executive officer of the
      Company and/or in defending a claim, action, suit or investigation or criminal
      proceeding shall be paid by the Company in a timely manner upon the receipt
      by
      the Company of an undertaking by or on behalf of the Executive to repay said
      amount if it shall ultimately be determined that the Executive is not entitled
      to be indemnified by the Company for such legal fees and related costs;
      provided, however, that this arrangement shall not apply to a non-derivative
      action commenced by the Company against the Executive. The foregoing shall
      be in
      addition to any indemnification rights the Executive may have by law, charter,
      by-law or otherwise. If the Company assumes responsibility for the defense
      of an
      action brought against the Executive (i) the Company may not agree to any
      settlement without the Executive’s prior written approval (which shall not be
      unreasonably withheld) and (ii) the Executive will fully cooperate with the
      Company’s efforts in defense of the matter. 

     

         9. Miscellaneous.
      

     

              (a)
      Capacity.
      The
      Executive represents and warrants that he is not a party to any agreement that
      would prohibit the Executive from entering into this Agreement or fully
      performing the Executive’s obligations hereunder. 

     

              (b)
      Notice.
      All
      notices of termination and other communications provided for in this Agreement
      shall be in writing and shall be deemed to have been duly given when delivered
      by hand or mailed by United States registered mail, return receipt requested,
      addressed as follows: 

     

                   If
      to
      the Company:
      

     

    Xcorporeal,
      Inc.

    11150
      Santa Monica Boulevard, Suite 340

    Los
      Angeles, California 90064

    Attn:
      Daniel S. Goldberger 

     

                   With
      a copy to: 

     

    Dreier
      Stein & Kahan LLP

    1620
      26th
      Street,
      Sixth Floor, North Tower

    Santa
      Monica, California 90404

    Attn:
      John C. Kirkland, Esq. 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

                   If
      to
      the Executive: 

     

    Robert
      Weinstein

    60
      Hampden Lane

    Irvington,
      New York 10533 

     

                   With
      a copy to: 

     

    Ellenoff
      Grossman & Schole, LLP

    370
      Lexington Avenue

    New
      York,
      New York 10017

    Attn:
      Barry I. Grossman, Esq. 

     

    or
      to
      such other address as either party may designate by notice to the other, which
      notice shall be deemed to have been given upon receipt. 

     

              (c)
      Severability.
      The
      invalidity or unenforceability of any provisions under particular facts and
      circumstances will not affect the validity or enforceability either of other
      provisions or, under other facts and circumstances, of such provisions. In
      addition, such provisions will be reformed to be less restrictive if under
      such
      facts and circumstances they would then be valid and enforceable. 

     

              (d)
      Governing
      Law.
      The
      validity, construction and performance will be governed by the laws, without
      regard to the laws as to choice or conflict of laws, of the State of California.
      

     

              (e)
      Arbitration.
      Any
      dispute, controversy or claim arising out of or relating to this Agreement,
      or
      the Executive’s relationship with the Company or its affiliates, including
      without limitation any claims of wrongful termination or employment
      discrimination (whether based on age, gender, race, color, religion or any
      other
      protected class), and the issue of arbitrability of any claims, will be
      submitted to and resolved by final and binding arbitration before a retired
      judge at Judicial Arbitration and Mediation Services, Inc. (“JAMS”)
      or its
      successor in Santa Monica, California, under applicable JAMS rules. To the
      maximum extent permitted by applicable law, the prevailing party will be awarded
      its arbitration, attorney and expert witness fees, costs and expenses. Judgment
      on any interim or final award of the arbitrator may be entered in any court
      of
      competent jurisdiction. 

     

              (f)
      Headings.
      The
      sections and other headings contained in this Agreement are for reference
      purposes only and will not affect in any way the meaning or interpretation
      of
      this Agreement. 

     

              (g)
      Waiver.
      No
      waiver by either party of a breach of any provision will be construed as a
      waiver of any subsequent or different breach, and no forbearance by a party
      to
      seek a remedy for noncompliance or breach by the other party will be construed
      as a waiver of any right or remedy with respect to such noncompliance or breach.
      All waivers shall be in writing and signed by the party to be charged therewith.
      

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

              (h)
      Amendment.
      This
      Agreement may be amended, modified or supplemented only by a writing executed
      by
      Executive and the Chairman, President or CEO of the Company. 

     

              (i)
      Counterparts.
      This
      Agreement may be executed in several counterparts, each of which shall be deemed
      an original, but all of which shall constitute one and the same instrument.
      

     

              (j)
      Entire
      Agreement.
      This
      Agreement and Schedule I hereto are the only agreement and understanding
      between the parties, and supersedes all prior and contemporaneous agreements,
      summaries of agreements, descriptions of compensation packages, discussions,
      negotiations, understandings, representations or warranties, whether verbal
      or
      written, between the parties pertaining to such subject matter. 

     

              (k)
      Authority.
      The
      Company hereby represents and warrants to the Executive that the Company has
      full corporate power and authority to execute and deliver this Agreement and
      to
      perform the transactions contemplated hereby and thereby. The execution,
      delivery, and performance by the Company of the Agreement have been duly
      authorized and approved by all requisite corporate action on the part of the
      Company. 

     

              (l)
      Attorney
      Fees.
      The
      Company hereby agrees to reimburse the Executive up to ten thousand dollars
      ($10,000) for all reasonable legal fees and costs incurred by the Executive
      in
      the negotiation and preparation of this Agreement regardless of whether this
      

     

    ///
      

     

    ///
      

     

    ///
      

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    Agreement
      is executed by the parties. 

     

         10. Effective
      Date.
      The
      parties agree that the Effective Date shall be August                     ,
      2007,
      or on the date as soon thereafter as the Board approves this Agreement.

     

    Agreed
      to: 

     

    
      	
              Executive:

            	
               

            	
              XCORPOREAL,
                INC.

            
	
               

            	 	 	 	 
	
               
                

            	
               

            	
              By:

            	
               

            	
               

            
	
              
                Robert
                  Weinstein 

              

            	
               

            	
               

            	
               

            	
              
                Daniel
                  S. Goldberger

                
                  President
                    & Chief Operating
                    Officer

                

              

            

    

     

    BOARD
      APPROVAL DATE: August 10, 2007 

     

    
      
         

      

      
        12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]