Document:

<Page>

                                                                    EXHIBIT 10.2

                                     WARRANT

THE SECURITIES EVIDENCED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY OTHER
APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, HYPOTHECATED
OR OTHERWISE DISPOSED OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO A TRANSACTION WHICH IS EXEMPT FROM, OR
NOT SUBJECT TO, SUCH REGISTRATION.

                                                                OCTOBER 15, 2002

         Warrant to Purchase up to 200,000 shares of Common Stock of Aksys, Ltd.
(the "COMPANY").

         In consideration for Kingsbridge Capital Limited (the "INVESTOR")
agreeing to enter into that certain Common Stock Purchase Agreement, dated as of
the date hereof, between the Investor and the Company (the "AGREEMENT"), the
Company hereby agrees that the Investor or any other Warrant Holder (as defined
below) is entitled, on the terms and conditions set forth below, to purchase
from the Company at any time during the Exercise Period (as defined below) up to
200,000 fully paid and nonassessable shares of common stock, par value $.01 per
share, of the Company (the "COMMON STOCK") at the Exercise Price (hereinafter
defined), as the same may be adjusted from time to time pursuant to Section 6.1
hereof. The resale of the shares of Common Stock or other securities issuable
upon exercise or exchange of this Warrant is subject to the provisions of the
Registration Rights Agreement (as defined in the Agreement).

                  Section 1.  DEFINITIONS.

                  "AFFILIATE" shall mean any Person that, directly or indirectly
through one or more intermediaries, controls or is controlled by, or is under
direct or indirect common control with any other Person. For the purposes of
this definition, "control," when used with respect to any Person, means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise, and the term "controls" and "controlled" have meanings correlative to
the foregoing.

                  "BID PRICE" shall mean the closing bid price of the Company's
Common Stock as reported by Bloomberg L.P. using the AQR function.

                  "EXERCISE PERIOD" shall mean that period beginning six months
after the date of this Warrant and continuing until the expiration of the
five-year period thereafter.

                  "EXERCISE PRICE" as of the date hereof shall mean FIVE DOLLARS
AND SEVENTY-FIVE CENTS ($5.75), subject to adjustment for the events specified
in Section 6.1 below.

                  "PER SHARE WARRANT VALUE" shall mean the difference resulting
from subtracting the Exercise Price from the Bid Price on the Trading Day
immediately preceding the Exercise Date.

                  "PERSON" shall mean an individual, a corporation, a
partnership, a limited liability company, an association, a trust or other
entity or organization, including a government or political subdivision or an
agency or instrumentality thereof.

                  "PRINCIPAL MARKET" shall mean the Nasdaq National Market, the
Nasdaq SmallCap Market, the American Stock Exchange or the New York Stock
Exchange, whichever is at the time the principal trading exchange or market for
the Common Stock.

<Page>

                  "SEC" shall mean the United States Securities and Exchange
Commission.

                  "TRADING DAY" shall mean any day other than a Saturday or a
Sunday on which the Principal Market is open for trading in equity securities.

                  "WARRANT HOLDER" shall mean the Investor or any assignee or
transferee of all or any portion of this Warrant.

                  "WARRANT SHARES" shall mean those shares of Common Stock
received upon exercise of this Warrant.

                  Section 2.   EXERCISE.

                          (a) METHOD OF  EXERCISE. This Warrant may be exercised
in whole or in part (but not as to a fractional share of Common Stock), at any
time and from time to time during the Exercise Period, by the Warrant Holder by
(i) surrender of this Warrant, with the form of exercise attached hereto as
Exhibit A completed and duly executed by the Warrant Holder (the "EXERCISE
NOTICE"), to the Company at the address set forth in Section 13 hereof,
accompanied by payment of the Exercise Price multiplied by the number of shares
of Common Stock for which this Warrant is being exercised (the "AGGREGATE
EXERCISE PRICE") or (ii) telecopying an executed and completed Exercise Notice
to the Company and delivering to the Company within five (5) business days
thereafter the original Exercise Notice, this Warrant and the Aggregate Exercise
Price. Each date on which an Exercise Notice is received by the Company in
accordance with clause (i) and each date on which the Exercise Notice is
telecopied to the Company in accordance with clause (ii) above shall be deemed
an "EXERCISE DATE."

                          (b) PAYMENT OF AGGREGATE EXERCISE PRICE. Subject to
paragraph (c) below, payment of the Aggregate Exercise Price shall be made by
wire transfer of immediate available funds to an account designated by the
Company. If the amount of the payment received by the Company is less than the
Aggregate Exercise Price, the Warrant Holder will be notified of the deficiency
and shall make payment in that amount within three (3) Trading Days. In the
event the payment exceeds the Aggregate Exercise Price, the Company will refund
the excess to the Warrant Holder within three (3) Trading Days of receipt.

                          (c) CASHLESS EXERCISE. In the event that the Warrant
Shares to be received by the Warrant Holder upon exercise of the Warrant may not
be resold pursuant to an effective registration statement or an exemption to the
registration requirements of the Securities Act of 1933, as amended, and
applicable state laws, the Warrant Holder may, as an alternative to payment of
the Aggregate Exercise Price upon exercise in accordance with paragraph (b)
above, elect to effect a cashless exercise by so indicating on the Exercise
Notice and including a calculation of the number of shares of Common Stock to be
issued upon such exercise in accordance with the terms hereof (a "CASHLESS
EXERCISE"). In the event of a Cashless Exercise, the Warrant Holder shall
receive that number of shares of Common Stock determined by (i) multiplying the
number of Warrant Shares for which this Warrant is being exercised by the Per
Share Warrant Value and (ii) dividing the product by the Bid Price on the
Trading Day immediately preceding the Exercise Date, rounded to the nearest
whole share. The Company shall cancel the total number of Warrant Shares equal
to the excess of the number of the Warrant Shares for which this Warrant is
being exercised over the number of Warrant Shares to be received by the Warrant
Holder pursuant to such Cashless Exercise.

                          (d) REPLACEMENT WARRANT. In the event that the Warrant
is not exercised in full, the number of Warrant Shares shall be reduced by the
number of such Warrant Shares for which this Warrant is exercised, and the
Company, at its expense, shall forthwith issue and deliver to or upon the order
of the Warrant Holder a new Warrant of like tenor in the name of the Warrant
Holder, reflecting such adjusted number of Warrant Shares.

<Page>

                  Section 3. TEN PERCENT LIMITATION. The Warrant Holder may not
exercise this Warrant such that the number of Warrant Shares to be received
pursuant to such exercise aggregated with all other shares of Common Stock then
owned by the Warrant Holder beneficially or deemed beneficially owned by the
Warrant Holder would result in the Warrant Holder owning more than 9.9% of all
of such Common Stock as would be outstanding on such Exercise Date, as
determined in accordance with Section 13(d) of the Exchange Act of 1934 and the
rules and regulations promulgated thereunder.

                  Section 4. DELIVERY OF STOCK CERTIFICATES.

                  (a) Subject to the terms and conditions of this Warrant, as
soon as practicable after the exercise of this Warrant in full or in part, and
in any event within ten (10) Trading Days thereafter, the Company at its expense
(including, without limitation, the payment by it of any applicable issue taxes)
will cause to be issued in the name of and delivered to the Warrant Holder, or
as the Warrant Holder may lawfully direct, a certificate or certificates for the
number of validly issued, fully paid and non-assessable Warrant Shares to which
the Warrant Holder shall be entitled on such exercise, together with any other
stock or other securities or property (including cash, where applicable) to
which the Warrant Holder is entitled upon such exercise in accordance with the
provisions hereof.

                  (b) This Warrant may not be exercised as to fractional shares
of Common Stock. In the event that the exercise of this Warrant, in full or in
part, would result in the issuance of any fractional share of Common Stock, then
in such event the Warrant Holder shall receive the number of shares rounded to
the nearest whole share.

                  Section 5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE
COMPANY.

                  (a) The Warrant Shares, when issued in accordance with the
terms hereof, will be duly authorized and, when paid for or issued in accordance
with the terms hereof, shall be validly issued, fully paid and non-assessable.

                  (b) The Company shall take all commercially reasonable action
and proceedings as may be required and permitted by applicable law, rule and
regulation for the legal and valid issuance of this Warrant and the Warrant
Shares to the Warrant Holder.

                  (c) The Company has authorized and reserved for issuance to
the Warrant Holder the requisite number of shares of Common Stock to be issued
pursuant to this Warrant. The Company shall at all times reserve and keep
available, solely for issuance and delivery as Warrant Shares hereunder, such
shares of Common Stock as shall from time to time be issuable as Warrant Shares.

                  (d) From the date hereof through the last date on which
this Warrant is exercisable, the Company shall take all steps commercially
reasonable to ensure that the Common Stock remains listed or quoted on the
Principal Market.

                  Section 6.1. ADJUSTMENT OF THE EXERCISE PRICE. The Exercise
Price and, accordingly, the number of Warrant Shares issuable upon exercise of
the Warrant, shall be subject to adjustment from time to time upon the happening
of certain events as follows:

                  (a) RECLASSIFICATION, CONSOLIDATION, MERGER, MANDATORY SHARE
EXCHANGE, SALE OR TRANSFER.

                  (i) Upon occurrence of any of the events specified in
subsection (a)(ii) below (the "ADJUSTMENT EVENTS") while this Warrant is
unexpired and not exercised in full, the Warrant Holder may in its sole
discretion require the Company, or any successor or purchasing corporation, as
the case may be, without payment of any additional consideration therefor, to
execute and deliver to the Warrant Holder a new Warrant providing that the
Warrant Holder shall have the right to exercise such new Warrant (upon terms not
less favorable to the Warrant Holder than those then applicable to this Warrant)

<Page>

and to receive upon such exercise, in lieu of each share of Common Stock
theretofore issuable upon exercise of this Warrant, the kind and amount of
shares of stock, other securities, money or property receivable upon such
Adjustment Event by the holder of one share of Common Stock issuable upon
exercise of this Warrant had this Warrant been exercised immediately prior to
such Adjustment Event. Such new Warrant shall provide for adjustments that shall
be as nearly equivalent as may be practicable to the adjustments provided for in
this Section 6.

                  (ii) The Adjustment Events shall be (1) any reclassification
or change of Common Stock (other than a change in par value or as a result of a
subdivision or combination of Common Stock), (2) any consolidation, merger or
mandatory share exchange of the Company with or into another corporation (other
than a merger or mandatory share exchange with another corporation in which the
Company is a continuing corporation and which does not result in any
reclassification or change other than a change in par value or as a result of a
subdivision or combination of Common Stock), and (3) any sale or transfer to
another corporation of all or substantially all of the assets of the Company.

                  (iii) If the Company shall fail to maintain the listing or
quotation of the Common Stock on a Principal Market, the Warrant Holder may in
its sole discretion at any time thereafter require any publicly traded Affiliate
of the Company, without payment by the Warrant Holder of any additional
consideration therefor, to execute and deliver to the Warrant Holder a new
Warrant providing that the Warrant Holder shall have the right to exercise such
new Warrant (in an amount and upon terms not less favorable to the Warrant
Holder than those then applicable to this Warrant) and to receive upon such
exercise, in lieu of each share of Common Stock theretofore issuable upon
exercise of this Warrant, publicly traded shares of common stock of such
Affiliate.

                  The provisions of this subsection (a) shall similarly apply to
successive reclassifications, changes, consolidations, mergers, mandatory share
exchanges, sales and transfers.

                  (b) SUBDIVISION OR COMBINATION OF SHARES. If the Company, at
any time while this Warrant is unexpired and not exercised in full, shall
subdivide its Common Stock, the Exercise Price shall be proportionately reduced
as of the effective date of such subdivision, or, if the Company shall take a
record of holders of its Common Stock for the purpose of so subdividing, as of
such record date, whichever is earlier. If the Company, at any time while this
Warrant is unexpired and not exercised in full, shall combine its Common Stock,
the Exercise Price shall be proportionately increased as of the effective date
of such combination, or, if the Company shall take a record of holders of its
Common Stock for the purpose of so combining, as of such record date, whichever
is earlier.

                  (c) STOCK DIVIDENDS. If the Company, at any time while this
Warrant is unexpired and not exercised in full, shall pay a dividend or other
distribution in shares of Common Stock to all holders of Common Stock, then the
Exercise Price shall be adjusted, as of the date the Company shall take a record
of the holders of its Common Stock for the purpose of receiving such dividend or
other distribution (or if no such record is taken, as at the date of such
payment or other distribution), to that price determined by multiplying the
Exercise Price in effect immediately prior to such payment or other distribution
by a fraction:

                  1.  the numerator of which shall be the total number of shares
of Common Stock outstanding immediately prior to such dividend or distribution,
and

                  2.  the denominator of which shall be the total number of
shares of Common Stock outstanding immediately after such dividend or
distribution.

                  The provisions of this subsection (c) shall not apply under
any of the circumstances for which an adjustment is provided in subsections (a)
or (b).

<Page>

                  (d) LIQUIDATING DIVIDENDS, ETC. If the Company, at any time
while this Warrant is unexpired and not exercised in full, makes a distribution
of its assets or evidences of indebtedness to the holders of its Common Stock as
a dividend in liquidation or by way of return of capital or other than as a
dividend payable out of earnings or surplus legally available for dividends
under applicable law or any distribution to such holders made in respect of the
sale of all or substantially all of the Company's assets (other than under the
circumstances provided for in the foregoing subsections (a) through (c)), then
the Warrant Holder shall be entitled to receive upon exercise of this Warrant in
addition to the Warrant Shares receivable in connection therewith, and without
payment of any consideration other than the Exercise Price, the kind and amount
of such distribution per share of Common Stock multiplied by the number of
Warrant Shares that, on the record date for such distribution, are issuable upon
such exercise of the Warrant (with no further adjustment being made following
any event which causes a subsequent adjustment in the number of Warrant Shares
issuable), and an appropriate provision therefor shall be made a part of any
such distribution. The value of a distribution that is paid in other than cash
shall be determined in good faith by the Board of Directors of the Company.

                  Section 6.2 NO ADJUSTMENTS UNDER CERTAIN CIRCUMSTANCES.
Notwithstanding anything contained in the foregoing to the contrary, there shall
be no adjustment to the Exercise Price based upon, related to or in connection
with any instrument or other benefit issued or conferred by the Company (a)
under any of its employee or director stock award plans, employee or director
stock compensation plans or employee or director stock purchase plans or (b)
with respect to the granting of stock or stock options to advisors or
consultants engaged by the Company, but only if such grant is in consideration
for services rendered or to be rendered and not for capital raising purposes.

                  Section 6.3 NOTICE OF ADJUSTMENTS. Whenever the Exercise Price
or number of Warrant Shares shall be adjusted pursuant to Section 6.1 hereof,
the Company shall promptly prepare a certificate signed by its President, Chief
Financial Officer or Controller setting forth in reasonable detail the event
requiring the adjustment, the amount of the adjustment, the method by which such
adjustment was calculated (including a description of the basis on which the
Company's Board of Directors made any determination hereunder), and the Exercise
Price and number of Warrant Shares purchasable at that Exercise Price after
giving effect to such adjustment, and shall promptly cause copies of such
certificate to be sent by overnight courier to the Warrant Holder. In the event
the Company shall, at a time while the Warrant is unexpired and not exercised in
full, take any action that pursuant to subsections (a) through (c) of Section
6.1 may result in an adjustment of the Exercise Price, the Company shall give to
the Warrant Holder at its last address known to the Company written notice of
such action ten (10) days in advance of its effective date in order to afford to
the Warrant Holder an opportunity to exercise the Warrant prior to such action
becoming effective.

                  Section 7. NO IMPAIRMENT. The Company will not, by amendment
of its Restated Certificate of Incorporation or By-Laws or through any
reorganization, transfer of assets, consolidation, merger, dissolution or issue
or sale of securities, avoid or seek to avoid the observance or performance of
any of the terms of this Warrant, but will at all times in good faith assist in
the carrying out of all such terms and in the taking of all such action as may
be necessary or appropriate in order to protect the rights of the Warrant Holder
against impairment. Without limiting the generality of the foregoing, the
Company (a) will not increase the par value of any Warrant Shares above the
amount payable therefor on such exercise, and (b) will take all such action as
may be reasonably necessary or appropriate in order that the Company may validly
and legally issue fully paid and nonassessable Warrant Shares on the exercise of
this Warrant.

                  Section 8. RIGHTS AS STOCKHOLDER. Except as set forth in
Section 6 above, prior to exercise of this Warrant, the Warrant Holder shall not
be entitled to any rights as a stockholder of the Company with respect to the
Warrant Shares, including (without limitation) the right to vote such shares,
receive dividends or other distributions thereon or be notified of stockholder
meetings. However, in the

<Page>

event of any taking by the Company of a record of the holders of any class of
securities for the purpose of determining the holders thereof who are entitled
to receive any dividend (other than a cash dividend) or other distribution, any
right to subscribe for, purchase or otherwise acquire any shares of stock of any
class or any other securities or property, or to receive any other right, the
Company shall mail to each Warrant Holder, at least ten (10) days prior to the
date specified therein, a notice specifying the date on which any such record is
to be taken for the purpose of such dividend, distribution or right, and the
amount and character of such dividend, distribution or right.

                  Section 9. REPLACEMENT OF WARRANT. Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of the Warrant and, in the case of any such loss, theft or
destruction of the Warrant, upon delivery of an indemnity agreement or security
reasonably satisfactory in form and amount to the Company or, in the case of
any such mutilation, on surrender and cancellation of such Warrant, the Company
at its expense will execute and deliver, in lieu thereof, a new Warrant of
like tenor.

                  Section 10. CHOICE OF LAW. This Warrant shall be construed
under the laws of the State of New York.

                  Section 11. ENTIRE AGREEMENT; AMENDMENTS. Except for any
written instrument concurrent or subsequent to the date hereof executed by the
Company and the Investor, this Warrant and the Agreement contain the entire
understanding of the parties with respect to the matters covered hereby and
thereby. No provision of this Warrant may be waived or amended other than by a
written instrument signed by the party against whom enforcement of any such
amendment or waiver is sought.

                  Section 12. RESTRICTED SECURITIES.

                  (a) REGISTRATION OR EXEMPTION REQUIRED. This Warrant has been
issued in a transaction exempt from the registration requirements of the
Securities Act of 1933, as amended, in reliance upon the provisions of Section
4(2) thereof. This Warrant and the Warrant Shares issuable upon exercise of this
Warrant may not be resold except pursuant to an effective registration statement
or an exemption to the registration requirements of the Securities Act of 1933
and applicable state laws.

                  (b) LEGEND. Any replacement Warrants issued pursuant to
Section 2 and Section 9 hereof and, unless a registration statement has been
declared effective by the SEC in accordance with the Securities Act of 1933, as
amended, with respect thereto, any Warrant Shares issued upon exercise hereof,
shall bear the following legend:

                  "THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED
                  (THE "SECURITIES ACT"), OR ANY OTHER APPLICABLE SECURITIES
                  LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM
                  THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH
                  OTHER SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST
                  OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
                  TRANSFERRED, PLEDGED, ENCUMBERED, HYPOTHECATED OR OTHERWISE
                  DISPOSED OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
                  STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A
                  TRANSACTION WHICH IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
                  REGISTRATION."

                  (c) NO OTHER LEGEND OR STOCK TRANSFER RESTRICTIONS. No legend
other than the one specified in Section 12(b) has been or shall be placed on the
share certificates representing the Warrant Shares and no instructions or "stop
transfer orders" (so called "stock

<Page>

transfer restrictions") or other restrictions have been or shall be given to the
Company's transfer agent with respect thereto other than as expressly set forth
in this Section 12.

                  (d) ASSIGNMENT. Assuming the conditions of Section 12(a) above
regarding registration or exemption have been satisfied, the Warrant Holder,
with the prior written consent of the Company (which consent shall not be
unreasonably withheld, conditioned or delayed), may sell, transfer, assign,
pledge or otherwise dispose of this Warrant, in whole or in part. In the event
of a transfer in accordance with the preceding sentence, (i) the Warrant Holder
shall deliver a written notice to Company, substantially in the form of the
Assignment attached hereto as Exhibit B, indicating the person or persons to
whom the Warrant shall be assigned and the respective number of warrants to be
assigned to each assignee, and (ii) the Company shall effect the assignment
within ten (10) days, and shall deliver to the assignee(s) designated by the
Warrant Holder a Warrant or Warrants of like tenor and terms for the appropriate
number of shares.

                  (e) INVESTOR'S COMPLIANCE. Nothing in this Section 12 shall
affect in any way the Investor's obligations under any agreement to comply with
all applicable securities laws upon resale of the Common Stock.

                  Section 13. NOTICES. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder shall be in
writing and shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice. Any notice or other communication required or permitted to be
given hereunder shall be deemed effective (a) upon hand delivery or delivery by
facsimile (with accurate confirmation generated by the transmitting facsimile
machine) at the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be received), or the
first business day following such delivery (if delivered other than on a
business day during normal business hours where such notice is to be received)
or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses for such
communications shall be:

                  If to the Company:

                  Aksys, Ltd.
                  Two Marriott Drive
                  Lincolnshire, Illinois  60069
                  Telephone:  (847) 229 2020
                  Facsimile:  (847) 229 2080
                  Attention:  Chief Financial Officer

with a copy (which shall not constitute notice) to:

                  Kirkland & Ellis
                  200 East Randolph Drive
                  Chicago, Illinois  60601
                  Telephone:  (312) 861 2000
                  Facsimile:  (312) 861 2200
                  Attention:  Keith S. Crow, P.C.

if to the Investor:

                  Kingsbridge Capital Limited
                  c/o Kingsbridge Corporate
                  Services Limited
                  Main Street

<Page>

                  Kilcullen, County Kildare
                  Republic of Ireland
                  Telephone:        011-353-45-481-811
                  Facsimile:        011-353-45-482-003
                  Attention:        Adam Gurney, Director

with a copy (which shall not constitute notice) to:

                  Clifford Chance US LLP
                  200 Park Avenue, 52nd Floor
                  New York, NY  10166
                  Telephone:  (212) 878-8000
                  Facsimile:  (212) 878-8375
                  Attention:  Earl Zimmerman, Esq. / Keith M. Andruschak, Esq.

                  Either party hereto may from time to time change its address
or facsimile number for notices under this Section 13 by giving at least ten
(10) days prior written notice of such changed address or facsimile number to
the other party hereto.

                  Section 14. MISCELLANEOUS. This Warrant and any term hereof
may be changed, waived, discharged or terminated only by an instrument in
writing signed by the party against which enforcement of such change, waiver,
discharge or termination is sought. The headings in this Warrant are for
purposes of reference only, and shall not limit or otherwise affect any of the
terms hereof. The invalidity or unenforceability of any provision hereof shall
in no way affect the validity or enforceability of any other provision.

                  IN WITNESS WHEREOF, this Warrant was duly executed by the
undersigned, thereunto duly authorized, as of the date first set forth above.

AKSYS, LTD.

By: /s/    LAWRENCE DAMRON
    -----------------------------------
    Name:  Lawrence Damron
    Title: Chief Financial Officer

<Page>

                               EXHIBIT A TO THE

                             WARRANT EXERCISE FORM

                                  AKSYS, LTD.

         The undersigned hereby irrevocably exercises the right to purchase
__________________ shares of Common Stock of Aksys, Ltd., a Delaware
corporation, evidenced by the attached Warrant, and (CIRCLE EITHER (i) or (ii))
(i) tenders herewith payment of the Aggregate Exercise Price with respect to
such shares in full, in the amount of $________, in cash, by certified or
official bank check or by wire transfer for the account of the Company or (ii)
elects, pursuant to Section 2(c) of the Warrant, to convert such Warrant into
shares of Common Stock of Aksys, Ltd. on a cashless exercise basis, all in
accordance with the conditions and provisions of said Warrant.

         The undersigned requests that stock certificates for such Warrant
Shares be issued, and a Warrant representing any unexercised portion hereof be
issued, pursuant to this Warrant, in the name of the registered Warrant Holder
and delivered to the undersigned at the address set forth below.

Dated:_______________________________________

---------------------------------------------
Signature of Registered Holder
Name of Registered Holder (Print)

---------------------------------------------
Address

<Page>

                        EXHIBIT B TO THE WARRANT ASSIGNMENT

         (To be executed by the registered Warrant Holder desiring to transfer
the Warrant)

         FOR VALUED RECEIVED, the undersigned Warrant Holder of the attached
Warrant hereby sells, assigns and transfers unto the persons below named the
right to purchase ______________ shares of Common Stock of Aksys, Ltd. evidenced
by the attached Warrant and does hereby irrevocably constitute and appoint
______________________ attorney to transfer the said Warrant on the books of the
Company, with full power of substitution in the premises.

Dated:
------------------------------
Signature

Fill in for new Registration of Warrant:

-----------------------------------------
Name

-----------------------------------------
Address

-----------------------------------------
Please print name and address of assignee
(including zip code number)<Page>

                                                                    EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

         This REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of
October 15, 2002, is by and between AKSYS, LTD. (the "COMPANY") and KINGSBRIDGE
CAPITAL LIMITED (the "INVESTOR").

         WHEREAS, the Company and the Investor have entered into that certain
Common Stock Purchase Agreement, dated as of the date hereof (the "PURCHASE
AGREEMENT"), pursuant to which the Company may issue, from time to time, to the
Investor up to $15 million worth (as determined in accordance with the Purchase
Agreement) of Common Stock;

         WHEREAS, pursuant to the terms of, and in partial consideration for,
the Investor entering into the Purchase Agreement, the Company has issued to the
Investor a warrant dated as of the date hereof, exercisable from time to time
within five (5) years following the six-month anniversary of the date of
issuance (the "WARRANT") for the purchase of an aggregate of up to 200,000
shares of Common Stock at a price specified in such Warrant;

         WHEREAS, pursuant to the terms of, and in partial consideration for,
the Investor's agreement to enter into the Purchase Agreement, the Company has
agreed to provide the Investor with certain registration rights with respect to
the Registrable Securities (as defined in the Purchase Agreement) as set forth
herein;

         NOW, THEREFORE, in consideration of the premises, the representations,
warranties, covenants and agreements contained herein, in the Warrant, and in
the Purchase Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, intending to be legally
bound hereby, the parties hereto agree as follows (capitalized terms used herein
and not defined herein shall have the respective meanings ascribed to them in
the Purchase Agreement):

                                    ARTICLE I
                               REGISTRATION RIGHTS

Section 1.1.      REGISTRATION STATEMENT.

                  (a) FILING OF THE REGISTRATION STATEMENT. Upon the terms and
subject to the conditions set forth in this Agreement, the Company shall file
with the Commission within ten (10) Trading Days following the Closing Date a
registration statement on Form S-3 under the Securities Act or such other form
as deemed appropriate by counsel to the Company for the registration for the
resale by the Investor of the Registrable Securities (the "REGISTRATION
STATEMENT").

                  (b) EFFECTIVENESS OF THE REGISTRATION STATEMENT. The Company
shall use commercially reasonable efforts (i) to have the Registration Statement
declared effective by the Commission as soon as reasonably practicable, but in
any event no later than forty-five (45) calendar days, or ninety (90) calendar
days in the event that the Commission reviews the Registration Statement,
following the Closing Date and (ii) to ensure that the Registration Statement
remains in effect throughout the term of this Agreement as set forth in Section
4.2, subject to the terms and conditions of this Agreement.

                  (c) REGULATORY DISAPPROVAL. Notwithstanding the provisions of
Sections 1.1 (b), the date by which a Registration Statement is required to
become effective shall be extended without default or liquidated damages
hereunder or under the Purchase Agreement in the event that the Company's
failure to obtain the effectiveness of the Registration Statement on a timely
basis results solely from the Commission's disapproval of the structure of the
transactions contemplated by the Purchase Agreement.

<Page>

In such event, the parties agree to cooperate with one another in good faith to
arrive at a resolution acceptable to the Commission; PROVIDED, HOWEVER, that
nothing contained in this subsection 1.1(c) shall relieve the Company from its
obligation to effect and maintain the registration of the Warrant Shares on a
timely basis.

                  (d) FAILURE TO MAINTAIN EFFECTIVENESS OF REGISTRATION
STATEMENT. In the event the Company fails to maintain the effectiveness of the
Registration Statement (or the Prospectus) throughout the period set forth in
Section 4.2, other than temporary suspensions as set forth in Section 1.1(e) or
2.1(h), and the Investor holds any Registrable Securities at any time during the
period of such ineffectiveness (an "INEFFECTIVE PERIOD"), the Company shall pay
to the Investor in immediately available funds into an account designated by the
Investor an amount equal to the product of (x) the total number of Registrable
Securities issued to the Investor under the Purchase Agreement and owned by the
Investor at any time during such Ineffective Period and (y) the result, if
greater than zero, obtained by subtracting the VWAP on the Trading Day
immediately following the last day of such Ineffective Period from the VWAP on
the Trading Day immediately preceding the day on which any such Ineffective
Period began; PROVIDED, HOWEVER, that the foregoing payments shall not apply in
respect of Registrable Securities that are otherwise freely tradable by the
Investor.

                  (e) DEFERRAL OR SUSPENSION DURING A BLACKOUT PERIOD.
Notwithstanding the provisions of Section 1.1 (d), if in the good faith judgment
of the Company, following consultation with legal counsel, it would be
detrimental to the Company or its stockholders for the Registration Statement to
be filed or for resales of Registrable Securities to be made pursuant to the
Registration Statement due to (i) the existence of a material development or
potential material development involving the Company that the Company would be
obligated to disclose in the Registration Statement, which disclosure would be
premature or otherwise inadvisable at such tome or would have a Material Adverse
Effect on the Company or its stockholders, or (ii) a filing of a
Company-initiated registration of any class of its equity securities, which, in
the good faith judgment of the Company, would adversely effect or require
premature disclosure of the filing of such Company-initiated registration
(notice thereof, a "BLACKOUT NOTICE"), the Company shall have the right to (i)
immediately defer such filing for a period of not more than sixty (60) days
beyond the date by which such Registration Statement was otherwise required
hereunder to be filed or (ii) suspend use of such Registration Statement for a
period of not more than thirty (30) (any such deferral or suspension period, a
"BLACKOUT PERIOD"). The Investor acknowledges that it would be seriously
detrimental to the Company and its stockholders for such Registration Statement
to be filed (or remain in effect) during a Blackout Period and therefore
essential to defer such filing (or suspend the use thereof) during such Blackout
Period and agrees to cease any disposition of the Registrable Securities during
such Blackout Period. The Company may not utilize any of its rights under this
Section 1.1(e) to defer the filing of a Registration Statement (or suspend its
effectiveness) more than twice in any twelve (12) month period. In the event
that, within sixty (60) calendar days following any Settlement Date, the Company
gives a Blackout Notice to the Investor of a Blackout Period and the VWAP on the
Trading Day immediately preceding such Blackout Period ("OLD VWAP") is greater
than the VWAP on the first Trading Day following such Blackout Period that the
Investor may sell its Registrable Securities pursuant to an effective
Registration Statement ("NEW VWAP"), then the Company shall issue to the
Investor the number of additional shares of Registrable Securities equal to the
difference between (X) the product of the number of Registrable Securities
purchased by the Investor during the preceding sixty (60) calendar days under
the Purchase Agreement and actually held by Investor immediately prior to the
Blackout Period multiplied by the Old VWAP, divided by the New VWAP, and (Y) the
number of Registrable Securities purchased by the Investor under the Purchase
Agreement during the preceding sixty (60) calendar days and actually held by
Investor immediately prior to the Blackout Period.

                                       2
<Page>

                  (f) LIQUIDATED DAMAGES. The Company and the Investor hereto
acknowledge and agree that the amounts payable under subsection 1(d) and the
Blackout Shares deliverable under subsection 1(e) above shall constitute
liquidated damages and not penalties. The parties further acknowledge that (i)
the amount of loss or damages likely to be incurred by the Investor is incapable
or is difficult to precisely estimate, (ii) the amounts specified in such
subsections bear a reasonable proportion and are not plainly or grossly
disproportionate to the probable loss likely to be incurred in connection with
any failure by the Company to obtain or maintain the effectiveness of the
Registration Statement, (iii) one of the reasons for the Company and the
Investor reaching an agreement as to such amounts was the uncertainty and cost
of litigation regarding the question of actual damages, and (iv) the Company and
the Investor are sophisticated business parties and have been represented by
sophisticated and able legal and financial counsel and negotiated this Agreement
at arm's length.

                  (g) ADDITIONAL REGISTRATION STATEMENTS. In the event and to
the extent that the Registration Statement fails to register a sufficient amount
of Common Stock necessary for the Company to issue and sell to the Investor and
the Investor to purchase from the Company all of the Registrable Securities to
be issued, sold and purchased under the Purchase Agreement and the Warrant, the
Company shall prepare and file with the Commission an additional registration
statement or statements in order to effectuate the purpose of this Agreement,
the Purchase Agreement, and the Warrant.

                                   ARTICLE II
                             REGISTRATION PROCEDURES

Section 2.1. FILINGS; INFORMATION. The Company shall effect the registration
with respect to the sale of the Registrable Securities by the Investor in
accordance with the intended methods of disposition thereof. Without limiting
the foregoing, the Company in each such case will do the following as
expeditiously as possible, but in no event later than the deadline, if any,
prescribed therefor in this Agreement:

                  (a) Subject to Section 1.1 (e), the Company shall (i) prepare
and file with the Commission the Registration Statement; (ii) use comercially
reasonable efforts to cause such filed Registration Statement to become and to
remain effective (pursuant to Rule 415 under the Securities Act or otherwise);
(iii) prepare and file with the Commission such amendments and supplements to
the Registration Statement and the Prospectus used in connection therewith as
may be necessary to keep such Registration Statement effective for the time
period prescribed by Section 4.2 and in order to effectuate the purpose of this
Agreement, the Purchase Agreement, and the Warrant; and (iv) comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such Registration Statement during such period in
accordance with the intended methods of disposition by the Investor set forth in
such Registration Statement; PROVIDED, HOWEVER, that the Investor shall be
responsible for the delivery of the Prospectus to the Persons to whom the
Investor sells the Shares, the Blackout Shares and the Warrant Shares.

                  (b) If so requested by a managing underwriter or underwriters,
if any, or the holders of a majority of the Registrable Securities being sold in
connection with the filing of a Registration Statement under the Securities Act
for the offering on a continuous or delayed basis in the future of all of the
Registrable Securities (a "SHELF REGISTRATION"), the Company shall (i) promptly
incorporate in a prospectus supplement or post-effective amendment such
information as the managing underwriters, if any, and such holders agree should
be included therein, and (ii) make all required filings of such prospectus
supplement or post-effective amendment as soon as practicable after the Company
has received notification of the matters to be incorporated in such prospectus
supplement or post-effective amendment; PROVIDED, HOWEVER, that the Company
shall not be required to take any action pursuant to this Section 2.1(b)(ii)
that would, in the opinion of counsel for the Company, violate applicable law.

                                       3
<Page>

                  (c) In connection with the filing of a Shelf Registration, the
Company shall enter into such reasonable agreements and take all such other
reasonable actions in connection therewith (including those reasonably requested
by the managing underwriters, if any, or the holders of a majority of the
Registrable Securities being sold) in order to expedite or facilitate the
disposition of such Registrable Securities, and in such connection, whether or
not an underwriting agreement is entered into and whether or not the
registration is an underwritten registration, the Company shall (i) make such
representations and warranties to the holders of such Registrable Securities and
the underwriters, if any, with respect to the business of the Company (including
with respect to businesses or assets acquired or to be acquired by the Company),
and the Registration Statement, Prospectus and documents, if any, incorporated
or deemed to be incorporated by reference therein, in each case, in form,
substance and scope as are customarily made by issuers to underwriters in
underwritten offerings, and confirm such representations and warranties if and
when requested; (ii) if an underwriting agreement is entered into, it shall
contain indemnification provision and procedures no less favorable to the
selling holders of such Registrable Securities and the underwriters, if any,
than those set forth herein (or such other provisions and procedures acceptable
to the holders of a majority of Registrable Securities covered by such
Registration Statement and the managing underwriters, if any); and (iii) deliver
such documents and certificates as may be reasonably requested by the holders of
a majority of the Registrable Securities being sold, their counsel and the
managing underwriters, if any, to evidence the continued validity of their
representations and warranties made pursuant to clause (i) above and to evidence
compliance with any customary conditions contained in the underwriting agreement
or other agreement entered into by the Company.

                  (d) If the Investor determines to engage an underwriter in
connection with the offering of any Registrable Securities, the Investor will
enter into and perform its obligations under an underwriting agreement, in usual
and customary form, including, without limitation, customary indemnification and
contribution obligation, with the managing underwriter of such offering, and
will take such other actions as are reasonably required in order to expedite or
facilitate the disposition of the Registrable Securities, unless the Investor
has notified the Company in writing of its election to exclude all of its
Registrable Securities from such Registration Statement; PROVIDED, HOWEVER, that
the Investor shall consult with the Company prior to any such underwritten
offering and defer such offering for a reasonable period upon the commercially
reasonable request of the Company.

                  (e) The Investor may not participate in any underwriting
distribution hereunder unless it (i) agrees to sell its Registrable Securities
on the basis provided in any underwriting agreements, (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting agreements, and (iii) agrees to pay all underwriting discounts and
commissions and other fees and expenses of investment bankers and any manager or
managers of such underwriting, and legal expenses of the underwriter, applicable
with respect to its Registrable Securities.

                  (f) Three (3) Trading Days prior to filing the Registration
Statement or Prospectus, or any amendment or supplement thereto (excluding
amendments deemed to result from the filing of documents incorporated by
reference therein), the Company shall deliver to the Investor and to counsel
representing the Investor, in accordance with the notice provisions of Section
4.8, copies of the Registration Statement, Prospectus and/or any amendments or
supplements thereto as proposed to be filed, together with exhibits thereto,
which documents will be subject to review by the Investor and such counsel, and
thereafter deliver to the Investor and such counsel, in accordance with the
notice provisions of Section 4.8, such number of copies of the Registration
Statement, each amendment and supplement thereto (in each case including all
exhibits thereto), the Prospectus (including each preliminary prospectus) and
such other documents or information as the Investor or counsel may reasonably
request in order to facilitate the disposition of the Registrable Securities.

                                       4
<Page>

                  (g) The Company shall deliver, in accordance with the notice
provisions of Section 4.8, to each seller of Registrable Securities covered by
the Registration Statement such number of conformed copies of the Registration
Statement and of each amendment and supplement thereto (in each case including
all exhibits and documents incorporated by reference), such number of copies of
the Prospectus (including each preliminary prospectus and any summary
prospectus) and any other prospectus filed under Rule 424 promulgated under the
Securities Act relating to such seller's Registrable Securities, and such other
documents, as such seller may reasonably request to facilitate the disposition
of its Registrable Securities.

                  (h) After the filing of the Registration Statement, the
Company shall promptly notify the Investor of any stop order issued or
threatened by the Commission in connection therewith and take all commercially
reasonable actions required to prevent the entry of such stop order or to remove
it if entered.

                  (i) The Company shall use commercially reasonable efforts to
(i) register or qualify the Registrable Securities under such other securities
or blue sky laws of each jurisdiction in the United States as the Investor may
reasonably (in light of its intended plan of distribution) request, and (ii)
cause the Registrable Securities to be registered with or approved by such other
governmental agencies or authorities in the United States as may be necessary by
virtue of the business and operations of the Company and do any and all other
acts and things that may be reasonably necessary or advisable to enable the
Investor to consummate the disposition of the Registrable Securities; PROVIDED,
HOWEVER, that the Company will not be required to qualify generally to do
business in any jurisdiction where it would not otherwise be required to qualify
but for this paragraph (g), subject itself to taxation in any such jurisdiction,
consent or subject itself to general service of process in any such
jurisdiction, change any existing business practices, benefit plans or
outstanding securities or amend or otherwise modify the Charter or Bylaws.

                  (j) The Company shall enter into customary agreements and take
such other actions as are reasonably required in order to expedite the
disposition of such Registrable Securities (whereupon the Investor may, at its
option, require that any or all of the representations, warranties and covenants
of the Company also be made to and for the benefit of the Investor).

                  (k) The Company shall make available to the Investor (and will
deliver to Investor's counsel),(A) subject to restrictions imposed by the United
States federal government or any agency or instrumentality thereof, copies of
all public correspondence between the Commission and the Company concerning the
Registration Statement and will also make available for inspection by the
Investor and any attorney, accountant or other professional retained by the
Investor (collectively, the "INSPECTORS"),(B) upon reasonable advance notice
during normal business hours all financial and other records, pertinent
corporate documents and properties of the Company (collectively, the "RECORDS")
as shall be reasonably necessary to enable them to exercise their due diligence
responsibility, and cause the Company's officers and employees to supply all
information reasonably requested by any Inspectors in connection with the
Registration Statement. Records that the Company determines, in good faith, to
be confidential and that it notifies the Inspectors are confidential shall not
be disclosed by the Inspectors unless the disclosure or release of such Records
is requested or required pursuant to oral questions, interrogatories, requests
for information or documents or a subpoena or other order from a court of
competent jurisdiction or other process; PROVIDED, HOWEVER, that prior to any
disclosure or release pursuant to the immediately preceding clause, the
Inspectors shall provide the Company with prompt notice of any such request or
requirement so that the Company may seek an appropriate protective order or
waive such Inspectors' obligation not to disclose such Records; and, PROVIDED,
FURTHER, that if failing the entry of a protective order or the waiver by the
Company permitting the disclosure or release of such Records, the Inspectors,
upon advice of counsel, are compelled to disclose such Records, the Inspectors
may disclose that portion of the Records that counsel has advised the Inspectors
that the Inspectors are compelled to disclose; PROVIDED, HOWEVER,

                                       5
<Page>

that upon any such required disclosure, such Inspector shall use his or her best
efforts to obtain reasonable assurances that confidential treatment will be
afforded such information. The Investor agrees that information obtained by it
solely as a result of such inspections (not including any information obtained
from a third party who, insofar as is known to the Investor after reasonable
inquiry, is not prohibited from providing such information by a contractual,
legal or fiduciary obligation to the Company) shall be deemed confidential and
shall not be used for any purposes other than as indicated above or by it as the
basis for any market transactions in the securities of the Company or its
affiliates unless and until such information is made generally available to the
public. The Investor further agrees that it will, upon learning that disclosure
of such Records is sought in a court of competent jurisdiction, give notice to
the Company and allow the Company, at its expense, to undertake appropriate
action to prevent disclosure of the Records deemed confidential.

                  (l) To the extent required by law or reasonably necessary to
effect a sale of Registrable Securities in accordance with prevailing business
practices at the time of any sale of Registrable Securities pursuant to a
Registration Statement, the Company shall deliver to the Investor a signed
counterpart, addressed to the Investor, of (1) an opinion or opinions of counsel
to the Company, and (2) a comfort letter or comfort letters from the Company's
independent public accountants, each in customary form and covering such matters
of the type customarily covered by opinions or comfort letters, as the case may
be, as the Investor therefor reasonably requests.

                  (m) The Company shall otherwise comply with all applicable
rules and regulations of the Commission, including, without limitation,
compliance with applicable reporting requirements under the Exchange Act.

                  (n) The Company shall appoint a transfer agent and registrar
for all of the Registrable Securities covered by such Registration Statement not
later than the effective date of such Registration Statement.

                  (o) The Company may require the Investor to promptly furnish
in writing to the Company such information as may be required in connection with
such registration including, without limitation, all such information as may be
requested by the Commission or the NASD or any state securities commission and
all such information regarding the Investor, the Registrable Securities held by
the Investor and the intended method of disposition of the Registrable
Securities. The Investor agrees to provide such information requested in
connection with such registration within five (5) Business days after receiving
such written request and the Company shall not be responsible for any delays in
obtaining or maintaining the effectiveness of the Registration Statement caused
by the Investor's failure to timely provide such information.

                  (p) The Investor will cooperate with the Company, as
reasonably requested by the Company, in connection with the preparation and
filing of any Registration Statement hereunder, unless the Investor has notified
the Company in writing of such Investor's irrevocable election to exclude all of
the Investor's Registrable Securities from such Registration Statement.

                  (q) Upon receipt of a Blackout Notice from the Company, the
Investor will immediately discontinue disposition of Registrable Securities
pursuant to the Registration Statement covering such Registrable Securities
until (i) the Company advises the Investor that the Blackout Period has
terminated and (ii) the Investor receives copies of a supplemented or amended
prospectus, if necessary. If so directed by the Company, the Investor will
deliver to the Company (at the expense of the Company) or destroy (and deliver
to the Company a certificate of destruction) all copies in the Investor's
possession (other than a limited number of file copies) of the prospectus
covering such Registrable Securities that is current at the time of receipt of
such notice.

                                       6
<Page>

Section 2.2. REGISTRATION EXPENSES. The Company shall pay all registration
expenses incurred in connection with the Registration Statement (the
"REGISTRATION EXPENSES"), including, without limitation: (i) all registration,
filing, securities exchange listing and fees required by the National
Association of Securities Dealers, (ii) all registration, filing, qualification
and other fees and expenses of compliance with securities or blue sky laws
(including reasonable fees and disbursements of counsel in connection with blue
sky qualifications of the Registrable Securities), (iii) all word processing,
duplicating, printing, messenger and delivery expenses, (iv) the Company's
internal expenses (including, without limitation, all salaries and expenses of
its officers and employees performing legal or accounting duties), (v) the fees
and expenses incurred by the Company in connection with the listing of the
Registrable Securities, (vi) reasonable fees and disbursements of counsel for
the Company and customary fees and expenses for independent certified public
accountants retained by the Company (including the expenses of any special
audits or comfort letters or costs associated with the delivery by independent
certified public accountants of such special audit(s) or comfort letter(s)
requested pursuant to Section 2.1(k) hereof), (vii) the fees and expenses of any
special experts retained by the Company in connection with such registration and
amendments and supplements to the Registration Statement and Prospectus, (viii)
fees and disbursements of underwriters customarily paid by issuers or sellers of
securities, if any but excluding in all cases underwriting fees, discounts,
transfer taxes or commissions, if any, attributable to the sale of Registrable
Securities, which shall be payable by each holder of Registrable Securities PRO
RATA on the basis of the number of Registrable Securities of each such holder
that are included in a registration under this Agreement.

                                   ARTICLE III
                                 INDEMNIFICATION

Section 3.1. INDEMNIFICATION. The Company agrees to indemnify and hold harmless
the Investor, and each Person or entity, if any, who controls the Investor
within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act (collectively, the "CONTROLLING PERSONS"), from and against any
loss, claim, damage, liability, costs and expenses (including, without
limitation, reasonable and accurate attorneys' fees and reasonable disbursements
and costs and expenses of investigating and defending any such claim)
(collectively, "DAMAGES"), joint or several, and any action or proceeding in
respect thereof to which any Controlling Person, may become subject under the
Securities Act or otherwise, as incurred, insofar as such Damages (or actions or
proceedings in respect thereof) arise out of, or are based upon, any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement, or in any preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement relating to the Registrable
Securities or arises out of, or are based upon, any omission or alleged omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein under the circumstances not misleading, and shall
reimburse such Controlling Person, for any reasonable and documented legal and
other expenses reasonably incurred by such Controlling Person, as incurred, in
investigating or defending or preparing to defend against any such Damages or
actions or proceedings; PROVIDED, HOWEVER, that the Company shall not be liable
to the extent that any such Damages arise out of the Investor's (or any other
Indemnified Person's) failure to send or give a copy of the final prospectus or
supplement (as then amended or supplemented) to the persons asserting an untrue
statement or alleged untrue statement or omission or alleged omission at or
prior to the written confirmation of the sale of Registrable Securities to such
person if such statement or omission was corrected in such final prospectus or
supplement; PROVIDED, FURTHER, that the Company shall not be liable to the
extent that any such Damages arise out of or are based upon an untrue statement
or alleged untrue statement or omission or alleged omission made in such
Registration Statement, or any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Company by or on behalf of the
Investor or any other person who participates as an underwriter in the offering
or sale of such securities.

                                       7
<Page>

In connection with any Registration Statement with respect to which the Investor
is participating, such Investor will indemnify and hold harmless, to the same
extent and in the same manner set forth in the preceding paragraph, the Company,
each of directors, each its officers who signs the Registration Statement, each
Person, if any, who controls the Company within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act (each a "COMPANY INDEMNIFIED
PERSON") against any Damages to which any Company Indemnified Person may become
subject under the Securities Act, the Exchange Act or otherwise, insofar as the
such Damages arises out of or is based upon (a) any untrue statement or alleged
untrue statement of a material fact contained in any Registration Statement, or
in any preliminary prospectus, final prospectus, summary prospectus, amendment
or supplement relating to the Registrable Securities or arises out of, or are
based upon, any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein under
the circumstances not misleading to the extent that such violation occurs in
reliance upon and in conformity with written information furnished to the
Company by the Investor or on behalf of the Investor expressly for use in
connection with such Registration Statement or (b) any failure by the Investor
to comply with prospectus delivery requirements of the Securities Act, the
Exchange Act or any other law or legal requirement applicable to sales under the
Registration Statement.

Section 3.2. CONDUCT OF INDEMNIFICATION PROCEEDINGS. All claims for
indemnification under Section 3.1 shall be asserted and resolved in accordance
with the provisions of Section 10.02 and 10.03 of the Purchase Agreement.

Section 3.3. ADDITIONAL INDEMNIFICATION. Indemnification similar to that
specified in the preceding paragraphs of this Article 3 (with appropriate
modifications) shall be given by the Company with respect to any required
registration or other qualification of securities under any federal or state law
or regulation of any governmental authority other than the Securities Act. The
provisions of this Article III shall be in addition to any other rights to
indemnification, contribution or other remedies which an Indemnified Party may
have pursuant to law, equity, contract or otherwise.

To the extent that any indemnification provided for herein is prohibited or
limited by law, the indemnifying party will make the maximum contribution with
respect to any amounts for which it would otherwise be liable under this Article
III to the fullest extent permitted by law. However, (a) no contribution will be
make under circumstances where maker of such contribution would not have been
required to indemnify the indemnified party under the fault standards set forth
in this Article III, (b) or seller of Registrable Securities guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) will be entitled to contribution from any Person who is not
guilty of such fraudulent misrepresentation, and (c) contribution (together with
any indemnification obligations under this Agreement) by any seller of
Registrable Securities will be limited in amount of proceeds received by such
seller from the sale of such Registrable Securities.

                                   ARTICLE IV
                                  MISCELLANEOUS

Section 4.1. NO OUTSTANDING REGISTRATION RIGHTS. Except as set forth on Schedule
4.1, the Company represents and warrants to the Investor that, except as set
forth in the Commission Documents, there is not in effect on the date hereof any
agreement by the Company pursuant to which any holders of securities of the
Company have a right to cause the Company to register or qualify such securities
under the Securities Act or any securities or blue sky laws of any jurisdiction.

Section 4.2. TERM. The registration rights provided to the holders of
Registrable Securities hereunder shall terminate at the earlier of (i) such time
that is two years following the termination of the

                                       8
<Page>

Purchase Agreement or (ii) such time as all Registrable Securities have been
issued and have ceased to be Registrable Securities. Notwithstanding the
foregoing, paragraphs (c) and (d) of Section 1.1, Article III, Section 4.8, and
Section 4.9 shall survive the termination of this Agreement.

Section 4.3. RULE 144. The Company will, at its expense, promptly take such
action as holders of Registrable Securities may reasonably request to enable
such holders of Registrable Securities to sell Registrable Securities without
registration under the Securities Act within the limitation of the exemptions
provided by (a) Rule 144 under the Securities Act ("RULE 144"), as such Rule may
be amended from time to time, or (b) any similar rule or regulation hereafter
adopted by the Commission. If at any time the Company is not required to file
such reports, it will, at its expense, forthwith upon the written request of any
holder of Registrable Securities, make available adequate current public
information with respect to the Company within the meaning of paragraph (c)(2)
of Rule 144 or such other information as necessary to permit sales pursuant to
Rule 144. Upon the request of the Investor, which request shall not be made more
than once per calendar quarter the Company will deliver to the Investor a
written statement, signed by the Company's principal financial officer, as to
whether it has complied with such requirements.

Section 4.4. CERTIFICATE. The Company will, at its expense, forthwith upon the
request of any holder of Registrable Securities, which request shall not be made
more than once per calendar quarter deliver to such holder a certificate, signed
by the Company's principal financial officer, stating (a) the Company's name,
address and telephone number (including area code), (b) the Company's Internal
Revenue Service identification number, (c) the Company's Commission file number,
(d) the number of shares of each class of Stock outstanding as shown by the most
recent report or statement published by the Company, and (e) whether the Company
has filed the reports required to be filed under the Exchange Act for a period
of at least ninety (90) days prior to the date of such certificate and in
addition has filed the most recent annual report required to be filed
thereunder.

Section 4.5. AMENDMENT AND MODIFICATION. Any provision of this Agreement may be
waived, provided that such waiver is set forth in a writing executed by both
parties to this Agreement. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given,
unless the Company has obtained the written consent of the holders of a majority
of the then outstanding Registrable Securities. Notwithstanding the foregoing,
the waiver of any provision hereof with respect to a matter that relates
exclusively to the rights of holders of Registrable Securities whose securities
are being sold pursuant to a Registration Statement and does not directly or
indirectly affect the rights of other holders of Registrable Securities may be
given by holders of at least a majority of the Registrable Securities being sold
by such holders; provided that the provisions of this sentence may not be
amended, modified or supplemented except in accordance with the provisions of
the immediately preceding sentence. No course of dealing between or among any
Person having any interest in this Agreement will be deemed effective to modify,
amend or discharge any part of this Agreement or any rights or obligations of
any person under or by reason of this Agreement.

Section 4.6. SUCCESSORS AND ASSIGNS; ENTIRE AGREEMENT. This Agreement and all of
the provisions hereof shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns. The Investor may
assign its rights under this Agreement to any subsequent holder of the
Registrable Securities (unless sold pursuant to an effective registration
statement or in accordance with Rule 144 under the Securities Act), provided
that the Company shall have the right to require any holder of Registrable
Securities to execute a counterpart of this Agreement as a condition to such
holder's claim to any rights hereunder. This Agreement, together with the
Purchase Agreement and the Warrant(s) sets forth the entire agreement and
understanding between the parties as to the subject

                                       9
<Page>

matter hereof and merges and supersedes all prior discussions, agreements and
understandings of any and every nature among them.

Section 4.7.  SEVERABILITY. In the event that any provision of this Agreement
becomes or is declared by a court of competent jurisdiction to be illegal,
unenforceable or void, this Agreement shall continue in full force and effect
without said provision; provided that such severability shall be ineffective if
it materially changes the economic benefit of this Agreement to any party
hereto.

Section 4.8.  NOTICES. All notices, demands, requests, consents, approvals, and
other communications required or permitted hereunder shall be given in
accordance with Section 10.04 of the Purchase Agreement.

Section 4.9.  GOVERNING LAW. This Agreement shall be construed under the laws
of the State of New York.

Section 4.10. HEADINGS. The headings in this Agreement are for convenience of
reference only and shall not constitute a part of this Agreement, nor shall they
affect their meaning, construction or effect.

Section 4.11. COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed to be an original instrument and all
of which together shall constitute one and the same instrument.

Section 4.12. FURTHER ASSURANCES. Each party shall cooperate and take such
action as may be reasonably requested by another party in order to carry out the
provisions and purposes of this Agreement and the transactions contemplated
hereby.

Section 4.13. ABSENCE OF PRESUMPTION. This Agreement shall be construed without
regard to any presumption or rule requiring construction or interpretation
against the party drafting or causing any instrument to be drafted.

                                      10
<Page>

         IN WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be executed by the undersigned, thereunto duly authorized,
as of the date first set forth above.

                                      AKSYS, LTD.

                                      By: /s/ LAWRENCE DAMRON
                                          --------------------------------------
                                          Lawrence Damron
                                          Chief Financial Officer

                                      KINGSBRIDGE CAPITAL LIMITED

                                      By: /s/ VALENTINE O'DONOGHUE
                                          --------------------------------------
                                          Valentine O'Donoghue
                                          Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]