Document:

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                                                                    EXHIBIT 10.2

                          REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT, dated as of May 7, 2002 (this
"Agreement"), is made by and among Aksys, Ltd., a Delaware corporation, with
headquarters located at Two Marriott Drive, Lincolnshire, IL 60069 (the
"Company"), and the investors named on the signature pages hereto (the "Initial
Investors").

                                    RECITALS:

     A. In connection with the Securities Purchase Agreement, dated May 7, 2002,
by and among the Initial Investors and the Company (the "Purchase Agreement"),
the Company has agreed, upon the terms and subject to the conditions of the
Purchase Agreement, to issue and sell to the Initial Investors 3,319,396 shares
of the Company's Common Stock, par value $0.01 per share (the "Common Shares").

     B. In order to induce the Initial Investors to execute and deliver the
Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act and applicable state securities laws with
respect to the Common Shares.

     In consideration of the premises and the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Company and the Initial Investors hereby agree as
follows:

                                   ARTICLE I.

                                   DEFINITIONS

     Capitalized terms used and not otherwise defined herein have the respective
meanings given them in the Purchase Agreement. In addition, as used in this
Agreement, the following terms have the following meanings:

     1.1 "Investors" means the Initial Investors and any of their transferees or
assignees who receive or acquire Registrable Securities and who are entitled to
the benefit of this Agreement as provided in Article IX hereof.

     1.2 "Registrable Securities" means the Common Shares sold pursuant to the
Purchase Agreement and any shares of capital stock issued or issuable from time
to time in exchange for or otherwise with respect to the Common Shares; provided
that Common Shares will cease to be Registrable Securities at such time as they
have been sold under a Registration Statement or pursuant to Rule 144.

     1.3 "Registration Period" means the period between the date of this
Agreement and the earliest of (i) the second anniversary of the date of this
Agreement, (ii) the date on which all of the Registrable Securities have been
sold by the Investors under the Registration Statement or pursuant to Rule 144
or (iii) the date on which all the Registrable

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Securities may be immediately sold by the Investors without registration and
without restriction as to the number of Registrable Securities to be sold,
pursuant to Rule 144 or otherwise.

     1.4 "Registration Statement" means a Registration Statement of the Company
filed under the Securities Act.

     1.5 The terms "register," "registered," and "registration" refer to a
registration effected by preparing and filing a Registration Statement or
statements in compliance with the Securities Act and pursuant to Rule 415 and
the declaration or ordering of effectiveness of such Registration Statement by
the SEC.

     1.6 "Rule 415" means Rule 415 under the Securities Act, or any successor
rule providing for offering securities on a continuous basis, and applicable
rules and regulations thereunder.

                                  ARTICLE II.

                                  REGISTRATION

     2.1 Mandatory Registration. The Company will use its best efforts to file
with the SEC a Registration Statement on Form S-3 registering only the
Registrable Securities for resale within 10 business days after the Closing Date
of the purchase of the Common Shares under the Purchase Agreement. If Form S-3
is not available at that time, then the Company will use its best efforts to
file a Registration Statement on such form as is then available to effect a
registration of the Registrable Securities within such 10-day period.

     2.2 Effectiveness of the Registration Statement. The Company will use its
best efforts to cause the Registration Statement contemplated by the previous
Section to be declared effective by the SEC as soon as practicable after filing,
and in any event no later than the 30th day after the Closing Date (the
"Required Effective Date"). However, so long as the Company filed the
Registration Statement within 10 business days after the Closing Date, if the
Registration Statement receives any SEC review, then the Required Effective Date
will be the 100th day after the Closing Date. The Company's best efforts will
include, but are not be limited to, promptly responding to all comments received
from the staff of the SEC. If the Company receives notification from the SEC
that the Registration Statement will receive no action or review from the SEC,
then the Company will request that the Registration Statement become effective
within three business days after such SEC notification.

     2.3 Payments by the Company. If (i) at any time after effectiveness of the
Registration Statement, sales cannot be made thereunder during the Registration
Period for any reason, other than by reason of the operation of Section 3.6, for
a period of more than 10 consecutive business days, or 30 business days in the
aggregate, during any 12-month period or (ii) the Common Stock is not listed or
included for quotation on Nasdaq, Nasdaq SmallCap, the NYSE or AMEX for more
than an aggregate of 10 business days in any 12-month period, then the Company
will thereafter make a payment (by wire transfer or check) to each Investor as
partial compensation for such delay. The amount of the payment made to each
Investor will be equal to 1% of the purchase price paid for the Common Shares
purchased by the Investor and not

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previously sold by the Investor for each 30 business days that sales cannot be
made under the effective Registration Statement or the Common Stock is not
listed or included for quotation on Nasdaq, Nasdaq SmallCap, the NYSE or AMEX
(but in no event to exceed 12% in the aggregate) beyond the allowed period. The
number of shares not previously sold as specified in the previous sentence shall
be determined as of the end of the respective 30-day period. These payments will
be prorated on a daily basis during the 30 business day period and will be paid
to each Investor by check within five business days following the end of each
month as to which payment is due hereunder, assuming that the respective
Investor delivered to the Company at least 2 business days prior thereto
information with respect to the number of Common Shares not previously sold by
such Investor (together with reasonable supporting documentation).

     2.4 Effect of Late Registration. If the Registration Statement has not been
declared effective by the Required Effective Date, then the Company will make a
payment (by wire transfer or check) to each Investor as partial compensation for
such delay (the "Late Registration Payments"). The Late Registration Payments
will be equal to 1% of the purchase price paid for the Common Shares purchased
by such Investor and not previously sold by such Investor for each 30 business
days after the Required Effective Date (but in no event to exceed 12% in the
aggregate). The Late Registration Payments will be prorated on a daily basis
during the 30 business day period and will be paid to the Initial Investors by
check within five business days after the earlier of (i) the end of the 30
business days following the Required Effective Date or (ii) the effective date
of the Registration Statement.

     2.5 Piggyback Registrations.

         (a) If, at any time prior to the expiration of the Registration Period,
(i) a Registration Statement is not then effective with respect to all of the
Registrable Securities and (ii) the Company decides to register any of its
securities for its own account or for the account of others, then the Company
will promptly give the Investors written notice thereof and will use its best
efforts to include in such registration all or any part of the Registrable
Securities requested by such Investors to be included therein (excluding any
Registrable Securities previously included in a Registration Statement). This
requirement does not apply to Company registrations on Form S-4 or S-8 or their
equivalents (relating to equity securities to be issued in connection with an
acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans) or to registration
statements that would otherwise (a) not permit the registration of resales of
previously issued securities. Each Investor must give its request for
registration under this subsection to the Company in writing within 15 days
after receipt from the Company of notice of such pending registration. If the
registration for which the Company gives notice is a public offering involving
an underwriting, the Company will so advise the Investors as part of the above
described written notice. In that event, if the managing underwriter(s) of the
public offering impose a limitation on the number of shares of Common Stock that
may be included in the Registration Statement because, in such underwriter(s)'
judgment, such limitation would be necessary to effect an orderly public
distribution, then the Company shall include in such registration (i) first, the
securities the Company proposes to sell, (ii) second, the securities desired to
be sold pursuant to such Registration Statement by the stockholder or
stockholders which are requiring the Company pursuant to a contractual
registration right to file such Registration Statement and (iii) third, the
Registrable Securities requested by the Investors to be included in such
offering, pro rata among the holders of such

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Registrable Securities on the basis of the number of shares requested to be
included by each such holder.

          (b) No right to registration of Registrable Securities under this
Section 2.5 limits in any way the registration required under Section 2.1 above.
The obligations of the Company under this Section 2.5 expire upon the earliest
of (i) the effectiveness of the Registration Statement filed pursuant to Section
2.1 above with respect to the Registrable Securities or the respective portion
thereof, (ii) after the Company has afforded the opportunity for the Investors
to exercise registration rights under this Section 2.5 for two registrations
(provided, however, that any Investor that has had any Registrable Securities
excluded from any Registration Statement in accordance with this Section 2.5 may
include in any additional Registration Statement filed by the Company the
Registrable Securities so excluded), or (iii) expiration of the Registration
Period.

     2.6 Eligibility to Use Form S-3. The Company represents and warrants that,
as of the date of this Agreement, it meets the requirements for the use of Form
S-3 for registration of the resale by the Investors of the Registrable
Securities.

                                  ARTICLE III.

                      ADDITIONAL OBLIGATIONS OF THE COMPANY

     3.1 Continued Effectiveness of Registration Statement. Subject to the
limitations set forth in Section 3.6, the Company will use its best efforts to
keep the Registration Statement covering the Registrable Securities effective
under Rule 415 at all times during the Registration Period. In the event that
the number of shares available under a Registration Statement filed pursuant to
this Agreement is insufficient to cover all of the Registrable Securities issued
under the Purchase Agreement, the Company will (if permitted) amend the
Registration Statement or file a new Registration Statement (on the short form
available therefor, if applicable), or both, so as to cover all of the
Registrable Securities. The Company will file such amendment or new Registration
Statement as soon as practicable, but in no event later than 20 business days
after the necessity therefor arises. The Company will use its best efforts to
cause such amendment or new Registration Statement to become effective as soon
as is practicable after the filing thereof.

     3.2 Accuracy of Registration Statement. Assuming the accuracy of
information furnished by or on behalf of the Investors, any Registration
Statement (including any amendments or supplements thereto and prospectuses
contained therein) filed by the Company covering Registrable Securities will not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein, or necessary to make the statements therein, in
light of the circumstances in which they were made, not misleading. The Company
will promptly prepare and file with the SEC such amendments (including
post-effective amendments) and supplements to the Registration Statement and the
prospectus used in connection with the Registration Statement as may be
necessary to permit sales pursuant to the Registration Statement at all times
during the Registration Period (but subject to Section 3.6), and, during such
period, will comply with the provisions of the Securities Act with respect to
the disposition of all Registrable Securities of the Company covered by the
Registration Statement until the

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termination of the Registration Period, or if earlier, until such time as all of
such Registrable Securities have been disposed of in accordance with the
intended methods of disposition by the seller or sellers thereof as set forth in
the Registration Statement.

               3.3 Furnishing Documentation. The Company agrees to provide to
each Investor an opportunity to review and provide reasonable comments to the
Registration Statement, provided that such Investor furnishes such comments
within 48 hours of its receipt of the Registration Statement. The Company will
furnish to each Investor whose Registrable Securities are included in a
Registration Statement, or to its legal counsel, (a) promptly after each
document is filed with the SEC, one copy of any Registration Statement filed
pursuant to this Agreement and any amendments thereto, each preliminary
prospectus (if any) and final prospectus and each amendment or supplement
thereto; and (b) a number of copies of a prospectus, including a preliminary
prospectus (if any), and all amendments and supplements thereto, and such other
documents as the Investor may reasonably request in order to facilitate the
disposition of the Registrable Securities owned by the Investor. The Company
will promptly notify by facsimile each Investor whose Registrable Securities are
included in any Registration Statement of the effectiveness of the Registration
Statement and any post-effective amendment.

               3.4 Additional Obligations. The Company will use its best efforts
to (a) register and qualify the Registrable Securities covered by a Registration
Statement under such other securities or blue sky laws of such jurisdictions as
each Investor who holds (or has the right to hold) Registrable Securities being
offered reasonably requests, (b) prepare and file in those jurisdictions any
amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain their
effectiveness during the Registration Period, (c) take any other actions
necessary to maintain such registrations and qualifications in effect at all
times during the Registration Period, and (d) take any other actions reasonably
necessary or advisable to qualify the Registrable Securities for sale in such
jurisdictions. Notwithstanding the foregoing, the Company is not required, in
connection with such obligations, to (i) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 3.4, (ii) subject itself to general taxation in any such jurisdiction,
(iii) file a general consent to service of process in any such jurisdiction,
(iv) provide any undertakings that cause material expense or burden to the
Company, or (v) make any change in its charter or bylaws, which in each case the
Company determines to be contrary to the best interests of the Company and its
stockholders.

               3.5 Underwritten Offerings. If the Investors who hold a majority
in interest of the Registrable Securities being offered in an offering pursuant
to a Registration Statement or any amendment or supplement thereto under this
Agreement select underwriters reasonably acceptable to the Company for such
offering, the Company will enter into and perform its obligations under an
underwriting agreement in usual and customary form including, without
limitation, customary indemnification and contribution obligations, with the
managing underwriter of such offering.

               3.6 Suspension of Resale Rights.

                   (a) The Company will notify (by telephone and also by
facsimile and reputable overnight courier) each Investor who holds Registrable
Securities being sold pursuant

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to a Registration Statement of the happening of any event of which the Company
has knowledge as a result of which the prospectus included in the Registration
Statement as then in effect includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading. The Company will make such notification as promptly as
practicable after the Company becomes aware of the event (but in no event will
the Company disclose to any Investor any of the facts or circumstances regarding
the event), will promptly prepare a supplement or amendment to the Registration
Statement to correct such untrue statement or omission, and will deliver a
number of copies of such supplement or amendment to each Investor as such
Investor may reasonably request.

                   (b) Notwithstanding the obligations under Section 3.6(a) or
any other provision of this Agreement, if in the good faith judgment of the
Company, following consultation with legal counsel, it would be detrimental to
the Company and its stockholders 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
which the Company would be obligated to disclose in the Registration Statement,
which disclosure would be premature or otherwise inadvisable at such time or
would have a Material Adverse Effect upon the Company and its stockholders, or
(ii) in the good faith judgment of the Company, it would adversely affect or
require premature disclosure of the filing of a Company-initiated registration
of any class of its equity securities, the Company will have the right to
suspend the use of the Registration Statement for a period of not more than
thirty days, provided, however, that the Company will use its commercially
reasonable efforts to keep the length of any such suspension to as short a
period as is practicable given the then existing circumstances and may so defer
or suspend the use of the Registration Statement no more than two times in any
eighteen-month period, and provided, further, that, after deferring or
suspending the use of the Registration Statement, the Company may not again
defer or suspend the use of the Registration Statement until a period of thirty
days has elapsed after resumption of the use of the Registration Statement.

                   (c) Subject to the Company's rights under this Section 3, the
Company will use its best efforts to prevent the issuance of any stop order or
other suspension of effectiveness of a Registration Statement and, if such an
order is issued, will use its best efforts to obtain the withdrawal of such
order at the earliest possible time and the Company will promptly notify each
Investor that holds Registrable Securities being sold (or, in the event of an
underwritten offering, the managing underwriters) of the issuance of such order
and the resolution thereof.

                   (d) Notwithstanding anything to the contrary contained herein
or in the Purchase Agreement, if the use of the Registration Statement is
suspended by the Company, the Company will promptly give notice of the
suspension to all Investors whose securities are covered by the Registration
Statement, and will promptly notify each such Investor as soon as the use of the
Registration Statement may be resumed.

               3.7 Review by the Investors. The Company will permit a single
firm of legal counsel, designated by the Investors who hold a majority in
interest of the Registrable Securities being sold pursuant to a Registration
Statement, to review the Registration Statement and all

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amendments and supplements thereto (as well as all requests for acceleration or
effectiveness thereof) a reasonable period of time prior to their filing with
the SEC, and will not file any document in a form to which such counsel
reasonably objects, unless otherwise required by law in the opinion of the
Company's counsel; provided that the time periods set forth in Section 2.2 shall
be tolled to the extent that such legal counsel does not deliver its final
comments relating to such Registration Statement to the Company within 3
business days after receipt of such Registration Statement. The sections of any
such Registration Statement including information with respect to the Investors,
the Investors' beneficial ownership of securities of the Company or the
Investors' intended method of disposition of Registrable Securities must conform
to the information provided to the Company by each of the Investors.

     3.8 Comfort Letter; Legal Opinion. At the request of the Investors who hold
a majority in interest of the Registrable Securities being sold pursuant to a
Registration Statement, and on the date that Registrable Securities are
delivered to an underwriter for sale in connection with the Registration
Statement, the Company will furnish to the Investors and the underwriters (i) a
letter, dated such date, from the Company's independent certified public
accountants, in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering,
addressed to the underwriters; and (ii) an opinion, dated such date, from
counsel representing the Company for purposes of the Registration Statement, in
form and substance as is customarily given in an underwritten public offering,
addressed to the underwriters and Investors.

     3.9 Due Diligence; Confidentiality.

          (a) The Company will make available upon reasonable advance notice
during normal business hours for inspection by any Investor whose Registrable
Securities are being sold pursuant to a Registration Statement, any underwriter
participating in any disposition pursuant to the Registration Statement, and any
attorney, accountant or other agent retained by any such Investor or underwriter
(collectively, the "Inspectors"), all pertinent financial and other records,
pertinent corporate documents and properties of the Company (collectively, the
"Records"), as reasonably necessary to enable the Inspector to exercise its due
diligence responsibility in connection with or related to the contemplated
offering. The Company will cause its officers, directors and employees to supply
all information that any Inspector may reasonably request for purposes of
performing such due diligence.

          (b) Each Inspector will hold in confidence, use only in connection
with the contemplated offering, and will not make any disclosure (except to an
Investor) of, all Records and other information that the Company determines in
good faith to be confidential, and of which determination the Inspectors are so
notified, unless (i) the disclosure of such Records is necessary to avoid or
correct a misstatement or omission in any Registration Statement, (ii) the
release of such Records is ordered pursuant to a subpoena or other order from a
court or government body of competent jurisdiction, (iii) the information in
such Records has been made generally available to the public other than by
disclosure in violation of this or any other agreement (to the knowledge of the
relevant Inspector), (iv) the Records or other information was developed
independently by an Inspector without breach of this Agreement, (v) the
information was known to the Inspector before receipt of such information from
the Company, or (vi) the information was disclosed to the Inspector by a third
party not under an obligation of

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confidentiality. The Company is not required to disclose any confidential
information in the Records to any Inspector unless and until such Inspector has
entered into a confidentiality agreement (in form and substance satisfactory to
the Company) with the Company with respect thereto, substantially in the form of
this Section 3.9. Each Investor will, upon learning that disclosure of Records
containing confidential information is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt notice to the
Company and allow the Company, at the Company's expense, to undertake
appropriate action to prevent disclosure of, or to obtain a protective order
for, the Records deemed confidential. Nothing herein will be deemed to limit the
Investor's ability to sell Registrable Securities in a manner that is otherwise
consistent with applicable laws and regulations.

          (c) The Company will hold in confidence, and will not make any
disclosure of, information concerning an Investor provided to the Company under
this Agreement unless (i) disclosure of such information is necessary to comply
with federal or state securities laws, or any exchange listing or similar rules
and regulations, (ii) the disclosure of such information is necessary to avoid
or correct a misstatement or omission in any Registration Statement, (iii) the
release of such information is ordered pursuant to a subpoena or other order
from a court or governmental body of competent jurisdiction, (iv) such
information has been made generally available to the public other than by
disclosure in violation of this Agreement or any other agreement, (v) the
information was disclosed to the Company by a third party not under an
obligation of confidentiality or (vi) such Investor consents to the form and
content of any such disclosure. If the Company learns that disclosure of such
information concerning an Investor is sought in or by a court or governmental
body of competent jurisdiction or through other means, the Company will give
prompt notice to such Investor prior to making such disclosure and allow such
Investor, at its expense, to undertake appropriate action to prevent disclosure
of, or to obtain a protective order for, such information.

     3.10 Listing. All of the Registrable Securities covered by each
Registration Statement shall be listed on each national securities exchange on
which securities of the same class or series issued by the Company are then
listed, if any, or to the extent the securities of the same class or series are
not then listed on a national securities exchange, secure the designation and
quotation of all of the Registrable Securities covered by each Registration
Statement on Nasdaq.

     3.11 Share Certificates. The Company will cooperate with the Investors who
hold Registrable Securities being sold and with the managing underwriter(s), if
any, to facilitate the timely preparation and delivery of certificates (not
bearing any restrictive legends) representing Registrable Securities to be
offered pursuant to a Registration Statement and will enable such certificates
to be in such denominations or amounts as the case may be, and registered in
such names as the Investors or the managing underwriter(s), if any, may
reasonably request, all in accordance with Article V of the Purchase Agreement.

     3.12 Plan of Distribution. At the request of the Investors holding a
majority in interest of the Registrable Securities registered pursuant to a
Registration Statement, the Company will promptly prepare and file with the SEC
such amendments (including post-effective amendments) and supplements to the
Registration Statement, and the prospectus used

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in connection with the Registration Statement, as may be necessary in order to
change the plan of distribution set forth in such Registration Statement.

     3.13 Securities Laws Compliance. The Company will comply with all
applicable laws related to any Registration Statement relating to the sale of
Registrable Securities and to offering and sale of securities and with all
applicable rules and regulations of governmental authorities in connection
therewith (including, without limitation, the Securities Act, the Exchange Act
and the rules and regulations promulgated by the SEC).

     3.14 Further Assurances. The Company will take all other reasonable actions
as any Investor or the underwriters, if any, may reasonably request to expedite
and facilitate disposition by such Investor of the Registrable Securities
pursuant to the Registration Statement.

     3.15 No Additional Selling Shareholders. Other than the holders of
securities covered by the Private Placement Registration Rights Agreements (as
defined in the Purchase Agreement), the Company will not, and will not agree to,
allow the holders of any securities of the Company to include any of their
securities in any Registration Statement under Section 2.1 hereof, or any
amendment or supplement thereto under Section 3.2 hereof, without the consent of
the holders of a majority in interest of the Registrable Securities.

                                  ARTICLE IV.

                          OBLIGATIONS OF THE INVESTORS

     4.1 Investor Information. As a condition to the obligations of the Company
to complete any registration pursuant to this Agreement with respect to the
Registrable Securities of each Investor, such Investor will furnish to the
Company such information regarding itself, the Registrable Securities held by it
and the intended method of disposition of the Registrable Securities held by it
as is reasonably required by the Company to effect the registration of the
Registrable Securities. At least 5 business days prior to the first anticipated
filing date of a Registration Statement for any registration under this
Agreement, the Company will notify each Investor of the information the Company
requires from that Investor if the Investor elects to have any of its
Registrable Securities included in the Registration Statement. If, within two
business days prior to the filing date, the Company has not received the
requested information from an Investor, then the Company may file the
Registration Statement without including Registrable Securities of that
Investor.

     4.2 Further Assurances. Each 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 such Investor has
notified the Company in writing of such Investor's irrevocable election to
exclude all of such Investor's Registrable Securities from such Registration
Statement.

     4.3 Suspension of Sales. Upon receipt of any notice from the Company under
Section 3.6, each Investor will immediately discontinue disposition of
Registrable Securities pursuant to the Registration Statement covering such
Registrable Securities until (i) it receives copies of a supplemented or amended
prospectus contemplated by Section 3.6(a) or (ii)

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the Company advises the Investor that a suspension of sales under Section 3.6(b)
has terminated. If so directed by the Company, each 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.

          4.4 Underwritten Offerings.

               (a) If Investors holding a majority in interest of the
Registrable Securities being registered (with the approval of a majority in
interest of the Initial Investors) determine to engage the services of an
underwriter, each Investor will enter into and perform such Investor's
obligations under an underwriting agreement, in usual and customary form,
including, without limitation, customary indemnification and contribution
obligations, 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 such Investor has notified the
Company in writing of such Investor's election to exclude all of its Registrable
Securities from such Registration Statement.

               (b) Without limiting any Investor's rights under Section 2.1
hereof, no Investor may participate in any underwritten distribution hereunder
unless such Investor (a) agrees to sell such Investor's Registrable Securities
on the basis provided in any underwriting arrangements approved by the Investors
entitled hereunder to approve such arrangements, (b) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements, and (c) agrees to pay its pro rata share of 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, in each case
to the extent not payable by the Company under the terms of this Agreement.

                                   ARTICLE V.

                            EXPENSES OF REGISTRATION

          The Company will bear all reasonable expenses, other than underwriting
discounts and commissions, and transfer taxes, if any, incurred in connection
with registrations, filings or qualifications pursuant to Articles II and III of
this Agreement, including, without limitation, all registration, listing and
qualifications fees, transfer agent fees, printers and accounting fees, the fees
and disbursements of counsel for the Company, and the reasonable fees and
disbursements of one firm of legal counsel selected by the Initial Investors
pursuant to Section 3.7 hereof (not to exceed $5,000). The Investors shall
reimburse the Company for any out-of-pocket expenses the Company incurs in an
underwritten offering initiated by the Investors.

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                                  ARTICLE VI.

                                 INDEMNIFICATION

          In the event that any Registrable Securities are included in a
Registration Statement under this Agreement:

          6.1 To the extent permitted by law, the Company will indemnify and
hold harmless each Investor that holds such Registrable Securities, any
underwriter (as defined in the Securities Act) for the Investors, any directors
or officers of such Investor or such underwriter and any person who controls
such Investor or such underwriter within the meaning of the Securities Act or
the Exchange Act (each, an "Indemnified Person") against any losses, claims,
damages, expenses or liabilities (joint or several) (collectively, and together
with actions, proceedings or inquiries by any regulatory or self-regulatory
organization, whether commenced or threatened in respect thereof, "Claims") to
which any of them become subject under the Securities Act, the Exchange Act or
otherwise, insofar as such Claims arise out of or are based upon any of the
following statements, omissions or violations in a Registration Statement filed
pursuant to this Agreement, any post-effective amendment thereof or any
prospectus included therein: (a) any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement or any
post-effective amendment thereof or the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, (b) any untrue statement or alleged untrue
statement of a material fact contained in the prospectus related to the
Registration Statement (as it may be amended or supplemented) or the omission or
alleged omission to state therein any material fact necessary to make the
statements made therein, in light of the circumstances under which the
statements therein were made, not misleading, or (c) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act or any other
law related to the Registration Statement, including without limitation any
state securities law or any rule or regulation thereunder (the matters in the
foregoing clauses (a) through (c) being, collectively, "Violations"). Subject to
the restrictions set forth in Section 6.3 with respect to the number of legal
counsel, the Company will reimburse the Investors and each such underwriter or
controlling person and each such other Indemnified Person, promptly as such
expenses are incurred and are due and payable, for any legal fees or other
reasonable expenses incurred by them in connection with investigating or
defending any Claim. Notwithstanding anything to the contrary contained herein,
the indemnification agreement contained in this Section 6.1: (i) does not apply
to Claims arising out of or based upon a Violation that occurs in reliance upon
and in conformity with information furnished in writing to the Company by an
Indemnified Person expressly for use in connection with the preparation of the
Registration Statement or any such amendment thereof or supplement thereto, if
such prospectus was timely made available by the Company pursuant to Section 3.3
hereof; (ii) does not apply to a Claim arising out of or based on any failure by
any Indemnified Person to comply with prospectus delivery requirements (or the
Securities Act, the Exchange Act or any other law or legal requirement
applicable to them) or any covenant or agreement contained in the Purchase
Agreement or this Agreement; and (iii) does not apply to amounts paid in
settlement of any Claim if such settlement is made without the prior written
consent of the Company, which consent will not be unreasonably withheld. This
indemnity obligation will remain in full force and effect regardless of any
investigation made by or on behalf of the

                                       11

<PAGE>

Indemnified Persons and will survive the transfer of the Registrable Securities
by the Investors under Article IX of this Agreement.

          6.2 In connection with any Registration Statement in which an Investor
is participating, each such Investor will indemnify and hold harmless, severally
and not jointly, to the same extent and in the same manner set forth in Section
6.1 above, the Company, each of its directors, each of its officers who signs
the Registration Statement, each person, if any, who controls the Company within
the meaning of the Securities Act or the Exchange Act (each an "Indemnified
Person") against any Claim to which any of them may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such Claim arises out
of or is based upon any of the following: (a) any matter of the type referred to
clause (a) or (b) in Section 6.1 above in each case to the extent (and only to
the extent) that such violation occurs in reliance upon and in conformity with
written information furnished to the Company by such Investor expressly for use
in connection with such Registration Statement or (b) any failure by such
Investor to comply with prospectus delivery requirements (or the Securities Act,
the Exchange Act or any other law or legal requirement applicable to sales under
the Registration Statement) or any covenant or agreement contained in the
Purchase Agreement or this Agreement with respect to sales under the
Registration Statement. Subject to the restrictions set forth in Section 6.3,
such Investor will promptly reimburse any legal or other expenses (promptly as
such expenses are incurred and due and payable) reasonably incurred by them in
connection with investigating or defending any such Claim. However, the
indemnity agreement contained in this Section 6.2 does not apply to amounts paid
in settlement of any Claim if such settlement is effected without the prior
written consent of such Investor, which consent will not be unreasonably
withheld, and no Investor will be liable under this Agreement (including this
Section 6.2 and Article VII) for the amount of any Claim that exceeds the net
proceeds actually received by such Investor as a result of the sale of
Registrable Securities pursuant to such Registration Statement. This indemnity
will remain in full force and effect regardless of any investigation made by or
on behalf of an Indemnified Party and will survive the transfer of the
Registrable Securities by the Investors under Article IX of this Agreement.

          6.3 Promptly after receipt by an Indemnified Person under this Article
VI of notice of the commencement of any action (including any governmental
action), such Indemnified Person will, if a Claim in respect thereof is to be
made against any indemnifying party under this Article VI, deliver to the
indemnifying party a written notice of the commencement thereof. The
indemnifying party may participate in, and, to the extent the indemnifying party
so desires, jointly with any other indemnifying party similarly given notice,
assume control of the defense thereof with counsel mutually satisfactory to the
indemnifying parties and the Indemnified Person. In that case, the indemnifying
party will diligently pursue such defense. If, in the reasonable opinion of
counsel retained by the indemnifying party, the representation by such counsel
of the Indemnified Person and the indemnifying party would be inappropriate due
to actual or potential conflicts of interest between the Indemnified Person and
any other party represented by such counsel in such proceeding or the actual or
potential defendants in, or targets of, any such action including the
Indemnified Person and such Indemnified Person reasonably determines that there
may be legal defenses available to such Indemnified Person that are different
from or in addition to those available to the indemnifying party, then the
Indemnified Person is entitled to assume such defense and may retain its own
counsel, with the fees and expenses to be paid by the indemnifying party
(subject to the

                                       12

<PAGE>

restrictions on settlement under Section 6.1 or 6.2, as applicable). The Company
will pay for only one separate legal counsel for the Investors collectively, and
such legal counsel will be selected by the Investors holding a majority in
interest of the Registrable Securities. The failure to deliver written notice to
the indemnifying party within a reasonable time of the commencement of any such
action does not relieve an indemnifying party of any liability to an Indemnified
Person under this Article VI, except to the extent that the indemnifying party
is prejudiced in its ability to defend such action. The indemnification required
by this Article VI will be made by periodic payments of the amount thereof
during the course of the investigation or defense, as such expense, loss, damage
or liability is incurred and is due and payable.

                                  ARTICLE VII.

                                  CONTRIBUTION

          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 Article VI to the fullest extent permitted by law. However, (a) no
contribution will be made under circumstances where the maker would not have
been liable for indemnification under the fault standards set forth in Article
VI, (b) no 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 seller of Registrable Securities who
was not guilty of such fraudulent misrepresentation, and (c) contribution
(together with any indemnification or other obligations under this Agreement) by
any seller of Registrable Securities will be limited in amount to the net amount
of proceeds received by such seller from the sale of such Registrable
Securities.

                                 ARTICLE VIII.

                             EXCHANGE ACT REPORTING

          In order to make available to the Investors the benefits of Rule 144
or any similar rule or regulation of the SEC that may at any time permit the
Investors to sell securities of the Company to the public without registration,
the Company will, until all of the Common Shares have been sold by the
Investors:

               (a) File with the SEC in a timely manner, and make and keep
available, all reports and other documents required of the Company under the
Securities Act and the Exchange Act so long as the Company remains subject to
such requirements (it being understood that nothing herein limits the Company's
obligations under Section 4.3 of the Purchase Agreement) and the filing and
availability of such reports and other documents is required for the applicable
provisions of Rule 144; and

               (b) Furnish to each Investor, so long as such Investor holds
Registrable Securities, promptly upon the Investor's request, (i) a written
statement by the Company that it has complied with the reporting requirements of
the Securities Act and the Exchange Act, (ii) a copy of the most recent annual
or quarterly report of the Company and such other reports and documents filed by
the Company with the SEC and (iii) such other information

                                       13

<PAGE>

as may be reasonably requested to permit the Investors to sell such securities
pursuant to Rule 144 without registration.

                                  ARTICLE IX.

                        ASSIGNMENT OF REGISTRATION RIGHTS

          The rights of the Investors hereunder, including the right to have the
Company register Registrable Securities pursuant to this Agreement, will be
automatically assigned by the Investors to transferees or assignees of all or
any portion of the Registrable Securities, but only if (a) the Investor agrees
in writing with the transferee or assignee to assign such rights, and a copy of
such agreement is furnished to the Company within a reasonable time after such
assignment, (b) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of the name and address of such
transferee or assignee and the securities with respect to which such
registration rights are being transferred or assigned, (c) such transfer or
assignment was not made under the Registration Statement or Rule 144, (d) at or
before the time the Company received the written notice contemplated by clause
(b) of this sentence, the transferee or assignee agrees in writing with the
Company to be bound by all of the provisions contained herein, (e) such transfer
is made in accordance with the applicable requirements of the Purchase Agreement
and (f) the transferee is an "accredited investor" as that term is defined in
Rule 501 of Regulation D. Any transferee or assignee of an Investor under
Article IX shall be deemed an "Investor" for all purposes of this Agreement, and
shall be entitled to all rights of, and subject to all obligations (including
indemnification obligations) of, an Investor hereunder.

                                   ARTICLE X.

                        AMENDMENT OF REGISTRATION RIGHTS

          This Agreement may be amended and the obligations hereunder may be
waived (either generally or in a particular instance, and either retroactively
or prospectively) only with the written consent of the Company and of the
Investors who then hold a majority in interest of the Registrable Securities
(but not including any Investor who is not affected by such amendment or
waiver). Any amendment or waiver effected in accordance with this Article X is
binding upon each Investor and the Company. Notwithstanding the foregoing, no
amendment or waiver will adversely affect any Investor without its consent.
Neither Article VI nor Article VII hereof may be amended or waived in a manner
adverse to an Investor without its consent.

                                  ARTICLE XI.

                                  MISCELLANEOUS

          11.1 Conflicting Instructions. A person or entity is deemed to be a
holder of Registrable Securities whenever such person or entity owns of record
such Registrable Securities. If the Company receives conflicting instructions,
notices or elections from two or more persons or entities with respect to the
same Registrable Securities, the Company will act upon the basis of
instructions, notice or election received from the registered owner of such
Registrable Securities.

                                       14

<PAGE>

        11.2  Notices. Any notices required or permitted to be given under the
terms of this Agreement will be given and deemed received as set forth in the
Purchase Agreement.

        11.3 Waiver. Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or
remedy, does not operate as a waiver thereof.

        11.4 Governing Law. This Agreement will be governed by and interpreted
in accordance with the laws of the State of Delaware without regard to the
principles of conflict of laws. The parties hereto hereby submit to the
exclusive jurisdiction of the United States federal and state courts located in
the State of Delaware with respect to any dispute arising under this Agreement,
the agreements entered into in connection herewith or the transactions
contemplated hereby or thereby.

        11.5 Severability. If any provision of this Agreement is invalid or
unenforceable under any applicable statute or rule of law, then such provision
will be deemed modified in order to conform with such statute or rule of law.
Any provision hereof that may prove invalid or unenforceable under any law
will not affect the validity or enforceability of any other provision hereof.

        11.6 Entire Agreement. This Agreement and the Purchase Agreement
(including all schedules and exhibits thereto) constitute the entire agreement
among the parties hereto with respect to the subject matter hereof and thereof.
There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein or therein. This Agreement supersedes
all prior agreements and understandings among the parties hereto with respect
to the subject matter hereof.

        11.7 Successors and Assigns. Subject to the requirements of Article IX
hereof, this Agreement inures to the benefit of and is binding upon the
successors and assigns of each of the parties hereto. Notwithstanding anything
to the contrary herein, including, without limitation, Article IX, the rights of
an Investor hereunder are assignable to and exercisable by a bona fide pledgee
of the Registrable Securities in connection with an Investor's margin or
brokerage accounts.

        11.8 Use of Pronouns. All pronouns refer to the masculine,feminine or
neuter, singular or plural, as the context may require.

        11.9 Headings. The headings of this Agreement are for convenience
of reference only, are not part of this Agreement and do not affect its
interpretation.

        11.10 Counterparts. This Agreement may be executed in two or more
counterparts, each of which is deemed an original but all of which constitute
one and the same agreement. This Agreement, once executed by a party, may be
delivered to the other party hereto by facsimile transmission, and facsimile
signatures are binding on the parties hereto.

        11.11 Further Assurances. Each party will do and perform, or cause to
be done and performed, all such further acts and things, and will execute and
deliver all other agreements, certificates, instruments and documents, as
another party may reasonably request in order to

                                       15

<PAGE>

carry out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.

     11.12 Consents. All consents and other determinations to be made by the
Investors pursuant to this Agreement will be made by the Initial Investors or
the Investors holding a majority in interest of the Registrable Securities.

     11.13 No Strict Construction. The language used in this Agreement is deemed
to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party.

                                     * * * *

     IN WITNESS WHEREOF, the undersigned Investors and the Company have caused
this Agreement to be duly executed as of the date first above written.

                                       COMPANY:

                                       AKSYS, LTD.

                                       By:
                                           -------------------------------------
                                           Name:
                                                  ------------------------------
                                           Title:
                                                  ------------------------------
                                       16

<PAGE>

     IN WITNESS WHEREOF, the undersigned Investors and the Company have caused
this Agreement to be duly executed as of the date first above written.

                                       INVESTORS:

                                       -----------------------------------------

                                       By:
                                           -------------------------------------
                                           Name:
                                                  ------------------------------
                                           Title:
                                                  ------------------------------

                                       17<PAGE>

                                                                  EXHIBIT 10.13

                              EMPLOYMENT AGREEMENT

         AGREEMENT, dated this 1st day of January, 2002 (the "Agreement"),
between Heidrick & Struggles, Inc., a Delaware corporation, and any successor
(the "Employer") and David C. Anderson (the "Employee").  The parties hereby
agree, as follows:

         1. Employment. The Employer shall employ the Employee as President and
            ----------
Chief Operating Officer and the Employee hereby accepts such position and agrees
to serve the Employer in such capacity during the employment period fixed by
Section 3 hereof (the "Employment Period"). The Employee shall report to the
Chief Executive Officer of the Employer (the "Board"). The Employee's duties and
responsibilities shall be such duties and responsibilities as are consistent
with the position of President and Chief Operating Officer of the Employer. The
Employee shall devote substantially all of his business time and attention to
the performance of his duties and responsibilities hereunder.

         2.  Compensation.
             ------------

              (a)  Annual Base Salary.  The Employer shall pay the Employee,
                   ------------------
pursuant to the Employer's normal and customary payroll procedures, a base
salary of $600,000 per annum (the "Annual Base Salary").

              (b) Annual Bonus. In addition to the Annual Base Salary, during
                  ------------
the Employment Period, the Employee may receive an annual bonus (the "Annual
Bonus"), based on the achievement of performance objectives, which shall be
determined by the Compensation Committee of the Board.

              (c) Incentive Compensation. Commencing in January 2002, the
                  -----------------------
Employee shall participate in the Employer's Annual Bonus Plan, Performance
Share Plan, Management Stock Option Plan, Change in Control Severance Plan,
Deferred Compensation Plan and the Severance Plan (such Plans being hereinafter
referred to collectively as the "Incentive Compensation Plans").

              (d) Benefit Plans. In addition, during the Employment Period
                  --------------
(i) the Employee shall be entitled to participate in all other savings and
retirement plans, practices, policies and programs of the Employer which are
made available generally to other employees of the Employer; provided, however,
that the Employee shall be entitled to participate in bonus, incentive
compensation or stock-based plans and programs only to the extent determined by
the Compensation Committee of the Board. The Employee and/or the Employee's
family, as the

<PAGE>

case may be, shall be eligible for participation in, and shall receive all
benefits under, all welfare benefit plans, practices, policies and programs
provided by the Employer (including, without limitation, vacation, medical,
prescription, dental, disability, life insurance, group life insurance,
accidental death and travel accident insurance plans and programs, together the
"Benefit Plans") which are made available generally to other employees of the
Employer.

       3.  Employment Period.
           -----------------

            The Employment Period shall commence on January 1, 2002 (the
"Effective Date") and shall end on the day preceding the third anniversary of
the Effective Date. Notwithstanding the foregoing, the Employee's employment
hereunder may be terminated during the Employment Period upon the earliest to
occur of the following events:

             (a)  Death.  The Employee's employment hereunder shall terminate
                  -----
immediately upon his death.

             (b) Disability. The Employer may terminate the Employee's
                 ----------
employment hereunder for "Disability," which shall mean (i) a physical or mental
incapacity of the Employee which entitles the Employee to benefits under the
long-term disability plan applicable to the Employee and maintained by the
Employer; or (ii) in the event that no such long-term disability plan is
maintained by the Employer, the Employee has been unable to perform his duties
hereunder for a period of 180 days within any twelve-month period as a result of
the Employee's incapacity due to physical or mental illness.

             (c) Cause. The Employer may terminate the Employee's employment
                 -----
hereunder for Cause. For purposes of this Agreement, the term "Cause" shall mean
(i) fraud, or the embezzlement or misappropriation of funds or property of the
Employer or any of its affiliates by you, the conviction of, or the entrance of
a plea of guilty or nolo contendere by Employee, to a felony, or a crime
involving moral turpitude; (ii) neglect, misconduct or willful malfeasance which
is materially injurious to the Employer or any of its affiliates; or (iii)
willful failure or refusal to perform your duties, or a willful, material breach
of contract. If, subsequent to the Employee's termination of services hereunder
for other than Cause, it is discovered that the Employee's services could have
been terminated for Cause, the Employee's services shall, at the election of the
Employer, be deemed to have been terminated for Cause retroactively to the date
the events giving rise to Cause occurred.

             (d) Good Reason. The Employee may terminate his employment
                 -----------
hereunder for Good Reason (and such termination shall be treated as if it were a
termination by the Employer without Cause, and not a voluntary termination by
the Employee). "Good Reason," shall mean the occurrence of any of the following
events during the Employment Period:

              (i)     The assignment to the Employee of any duties materially
                      inconsistent with, or the reduction of powers,
                      responsibilities or functions associated with, the

                                     - 2 -

<PAGE>

                      Employee's positions and status with the Employer, or any
                      removal of the Employee from, or any failure to reelect
                      the Employee to, membership on the Board and President and
                      Chief Operating Officer with the Employer, except in
                      connection with the termination of the Employee's
                      employment by the Employer for Cause or on account of
                      Disability pursuant to the terms of this Agreement;

              (ii)    A reduction by the Employer of the Annual Base Salary
                      except in connection with the termination of the
                      Employee's employment by the Employer for Cause or on
                      account of Disability pursuant to the terms of this
                      Agreement;

              (iii)   The failure by the Employer to pay the Employee any
                      portion of his current compensation, or any portion of his
                      compensation deferred under any plan, agreement or
                      arrangement of or with the Employer within seven (7) days
                      of the date such compensation is due; or

              (iv)    The requirement by the Employer that the Employee relocate
                      his primary residence to a city other than Dallas, Texas.

          Notwithstanding the foregoing, an isolated and inadvertent action
taken in good faith and which is remedied by the Employer within 30 days after
receipt of written notice thereof given by the Employee shall not constitute
Good Reason.

          (e)  Without Cause.  The Employer may terminate the Employee's
               -------------
employment hereunder without Cause.

          (f) Without Good Reason. The Employee may terminate his employment
              -------------------
hereunder without Good Reason, provided that the Employee provides the Employer
with notice of his intent to terminate his employment without Good Reason at
least six (6) months in advance of the Date of Termination; provided, however,
that the Employer may treat such notice as a resignation and accept it prior to
the expiration of six (6) months at the Employer's sole discretion.

       4.  Expense Reimbursement. During the Employment Period, the Employer
           ---------------------
shall reimburse the Employee for all reasonable business expenses upon the
presentation of statements of such expenses in accordance with the Employer's
policies and procedures now in force or as such policies and procedures may be
modified with respect to all employees of the Employer. The Employer shall pay
or reimburse the Employee for business class travel and accommodation

                                     - 3 -

<PAGE>

expenses for his spouse at times the Employee is required to be away from home
for up to four round trips per year.

       5.  Termination Payments.
           --------------------

           A.  In the event of termination of the Employee's employment during
the Employment Period:

           (i)      by the Employer without Cause (pursuant to Section 3(e));

           (ii)     by the Employee for Good Reason (pursuant to Section 3(d));
                    or

           (iii)    on the day prior to the third anniversary of the Effective
                    Date (and not prior thereto) and no renewal of the
                    Employment Period has taken place as of such date by
                    amendment of this Agreement or pursuant to a new agreement
                    between the Employer and the Employee

then, the Employee shall be entitled to the following payments:

           (a)      Annual Base Salary through the Date of Termination (to the
                    extent not paid) within 10 days following the Date of
                    Termination;

           (b)      Earned but unpaid Annual Bonus in respect of the year ended
                    prior to the Date of Termination;

           (c)      A pro rata portion of his target Annual Bonus based upon the
                    number of months worked in the year in which the Date of
                    Termination occurs;

           (c)      Severance pay pursuant to the Severance Plan;

           (d)      Amounts under the terms of Benefits Plans in which he is a
                    participant under the terms thereof; and

           (e)      Unreimbursed expenses under Section 4 of this Agreement.

           B. The Employee shall not be entitled to any further payments or
benefits under this Agreement in respect of any termination of the Employee's
employment during the Employment Period by the Employer without Cause (pursuant
to Section 3(e)) or by the Employee for Good Reason (pursuant to Section 3(d))
or for expiration without renewal (pursuant to this Section 5A(iii)). The
payments and benefits provided in this Section 5A (a) (b) and (c) are subject to
and conditioned upon the Employee's compliance with the restrictive covenants
provided in Section 7 and shall be subject to and conditioned upon the Employee
executing a valid general release and waiver, waiving all claims the Employee
may have against the Employer, its successors, assigns, affiliates, employees,
officers and directors.

                                     - 4 -

<PAGE>

           C. If the Employee's employment is terminated during the Employment
Period by the Employer for Cause, by the Employee without Good Reason, or as a
result of the Employee's death or Disability pursuant to Sections 3(c), 3(f),
3(a) and 3(b), respectively, the Employer shall pay the amounts referred to in
Section 5A(a) and 5A(b) to the Employee (or the Employee's estate or legal
representative in the event of the Employee's death) within thirty (30) days
following the Date of Termination and the Employee shall not be entitled to any
further payments or benefits under this Agreement.

         6. Non-Exclusivity of Rights. Any vested benefits and other amounts
            -------------------------
that the Employee is otherwise entitled to receive under any Incentive
Compensation Plans or Benefit Plans or other employee benefit plan, policy,
practice or program of the Employer shall be payable in accordance with such
Incentive Compensation Plan or Benefit Plan or other employee benefit plan,
policy, practice or program as the case may be, except as explicitly modified by
this Agreement.

         7. Confidentiality of Information; Duty of Non-Disclosure;
            -------------------------------------------------------
Non-Competition; Non-Solicitation.
---------------------------------

               (a) Confidential Information; Duty of Non-Disclosure. The
                   ------------------------------------------------
Employee's employment under this Agreement necessarily involves his access to
and understanding of certain trade secrets and confidential information
pertaining to the business of the Employer and its affiliates. During the
Employment Period and thereafter, he will not, directly or indirectly, without
the prior written consent of the Employer, disclose or use for the benefit of
any person, corporation or other entity, or for himself any and all files, trade
secrets or other confidential information concerning the internal affairs of the
Employer or its affiliates, including, but not limited to, information
pertaining to its clients, services, products, earnings, finances, operations,
methods or other activities; provided, however, that the foregoing shall not
apply to information which is of public record or is generally known, disclosed
or available to the general public or the industry generally (other than as a
result of the Employee's breach of this Section 7(a)). Notwithstanding the
foregoing, the Employee may disclose such information as is required by law
during any legal proceeding or to the Employee's personal representatives and
professional advisers and, with respect to such personal representatives and
professional advisers, the Employee shall inform them of his obligations
hereunder and take all reasonable steps to ensure that such professional
advisers do not disclose the existence or substance thereof. Further, the
Employee shall not, directly or indirectly, remove or retain, without the
express prior written consent of the Employer, and upon termination of
employment for any reason shall return to the Employer, any records, computer
disks, computer printouts, business plans or any copies or reproductions
thereof, or any information or instruments derived therefrom, arising out of or
relating to the business of the Employer and its affiliates or obtained as a
result of his employment.

               (b) Non-Competition. During the Employment Period and for a
                   ---------------
period of six (6) months after the termination of the Employee's employment with
the Employer, the Employee

                                     - 5 -

<PAGE>

shall not work for or provide services to a principal competitor of the
Employer and its affiliates in a substantially similar function as the Employee
held with the Employer during the two-year period prior to the Employee's
termination of employment with the Employer.

               (c) Non-Solicitation. During the Employment Period and for a
                   ----------------
period of one (1) year after the termination of the Employee's employment with
the Employer, the Employee shall not: (i) work on the account of any client of
the Employer and its affiliates with whom such Employee had a direct
relationship or as to which the Employee had a significant supervisory
responsibility or otherwise was significantly involved at any time during the
two (2) years prior to such termination; (ii) hire, solicit for hire, or assist
any other person in soliciting or hiring any employment candidate with whom the
Employee has had contact while at the Employer during the two (2) years prior to
such termination; or (iii) directly or indirectly solicit or hire, or assist any
other person in soliciting or hiring, any employee of the Employer and its
affiliates (as of the Employee's termination of employment) or any person who,
as of such date, was in the process of being recruited by the Employer and its
affiliates, or induce any such employee to terminate his or her employment with
the Employer and its affiliates

               (d) Remedies. The parties hereto hereby agree that it is
                   --------
impossible to measure in money the damages which will accrue to the Employer by
reason of a failure by the Employee to perform any of his obligations under this
Section 7 and the Employee acknowledges that such obligations are a material
condition to the Employer's decision to enter into this Agreement. Accordingly,
if the Employer institutes any action or proceeding to enforce the provisions
hereof, to the extent permitted by applicable law, the Employee hereby waives
the claim or defense that the Employer has an adequate remedy at law, and the
Employee shall not urge in any such action or proceeding the defense that any
such remedy exists at law. The restrictive covenants in this Section 7 are in
addition to any rights the Employer may have in law or at equity or under any
other agreement. In the event that a court of competent jurisdiction finds the
Employee to be in violation of the provisions of Sections 7(b) or 7(c), the
non-competition and/or non-solicitation period shall be extended by the period
of time during which such court found the Employee to have been in such
violation. The foregoing shall not prejudice the Employer's right to require the
Employee to account for and pay over to the Employer any profit obtained by the
Employee as a result of any transaction constituting a breach of this Section 7.

             (e)  Survival of Covenants.  This Section 7 shall survive the
                  ---------------------
termination of the Employment Period.

         8.  Arbitration.  This Agreement contains our entire understanding and
             -----------
Employee and Chief Legal Officer of the Employer.  The Employee specifically
acknowledges that no promises or commitments have been made to him that are not
set forth in this Agreement.

              Any controversy or claim arising out of or relating to this
Agreement or for the breach thereof, or Employee's employment, including without
limitation any statutory claims (for example, claims for discrimination
including but not limited to discrimination based on race, sex, sexual
orientation, religion, national origin, age, marital status,

                                     - 6 -

<PAGE>

handicap or disability; and claims relating to leaves of absence mandated by
state or federal law), breach of any contract or covenant (express or implied),
tort claims, violation of public policy or any other alleged violation of
statutory, contractual or common law rights (and including claims against
officers, directors, employees or agents of the Employer) if not otherwise
settled between the parties, shall be conclusively settled by arbitration to be
held in New York, New York, in accordance with the American Arbitration
Association's Employment Dispute Resolution Rules (the "Rules"). Arbitration
shall be the parties' exclusive remedy for any such controversies, claims or
breaches. The parties agree they shall not seek any award for punitive damages
for any claims they may have under this Agreement. The parties also consent to
personal jurisdiction in New York, New York with respect to such arbitration.
The award resulting from such arbitration shall be final and binding upon both
parties.  Judgment upon said award may be entered in any court having
jurisdiction.

              Employee and the Employer hereby waive the right to pursue any
claims, including but not limited to employment termination - related claims,
through civil litigation outside the arbitration procedures of this provision,
unless otherwise required by law. Employee and the Employer each have the right
to be represented by counsel with respect to arbitration of any dispute pursuant
to this paragraph. The arbitrator shall be selected by agreement between the
parties, but if they do not agree on the selection of an arbitrator within 30
days after the date of the request for arbitration, the arbitrator shall be
selected pursuant to the Rules.

              In the event of any arbitration hereunder, the parties agree each
shall bear its or his own attorneys' fees and costs associated with or arising
from such arbitration or other proceeding.

         9.  Miscellaneous.
             -------------

             (a) Notices. Any notice to be given hereunder shall be given in
                 -------
writing. Notice shall be deemed to be given when delivered by hand, or three (3)
days after being mailed, postage prepaid, registered with return receipt
requested, addressed as follows.

                      If to the Employer:

                      Heidrick & Struggles, Inc.
                      245 Park Avenue, Suite 4300
                      New York, New York 10167-0152
                      Attention:  Chief Legal Officer

                      If to the Employee:

                      David C. Anderson
                      10048 Hollow Way
                      Dallas, Texas 75229

                                     - 7 -

<PAGE>

or to such other address as any party hereto may designate by notice to the
others, and shall be deemed to have been given upon receipt.

             (b) Entire Agreement. This Agreement constitutes the entire
                 ----------------
agreement among the parties hereto with respect to the Employee's employment.
This Agreement expressly supersedes the Agreement, dated May 28, 1992 as amended
January 30, 2001, between the Employer and the Employee and shall be of no
further force and effect.

             (c) Modification or Amendment; Waiver. This Agreement may be
                 ---------------------------------
amended only by an instrument in writing signed by the parties hereto, and any
provision hereof may be waived only by an instrument in writing signed by the
party or parties against whom or which enforcement of such waiver is sought. The
failure of any party hereto at any time to require the performance by any other
party hereto of any provision hereof shall in no way affect the full right to
require such performance at any time thereafter, nor shall the waiver by any
party hereto of a breach of any provision hereof be taken or held to be a waiver
of any succeeding breach of such provision or a waiver of the provision itself
or a waiver of any other provision of this Agreement.

             (d) Successors. This Agreement is binding on and is for the benefit
                 ----------
of the parties hereto and their respective successors, heirs, executors,
administrators and other legal representatives. Neither this Agreement nor any
right or obligation hereunder may be assigned by the Employer or by the
Employee.

             (e) Severability. Each provision hereof is severable from this
                 ------------
Agreement, and if one or more provisions hereof are declared invalid, the
remaining provisions shall nevertheless remain in full force and effect. If any
provision of this Agreement or portion thereof is so broad, in scope or duration
or otherwise, as to be unenforceable, such provision or portion thereof shall be
interpreted to be only so broad as is enforceable.

             (f) Tax Withholding. The Employer may withhold from any amounts
                 ---------------
payable to the Employee hereunder all federal, state, city or other taxes that
the Employer may reasonably determine are required to be withheld pursuant to
any applicable law or regulation.

             (g)  Governing Law.  This Agreement shall be governed by and
                  -------------
construed in accordance with the laws of the State of NEW YORK, without
reference to its principles of conflicts of law.

             (h) 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.

             (i) Headings. The headings in this Agreement are inserted for
                 --------
convenience of reference only and shall not be a part of or control or affect
the meaning of any provision hereof.

                                     - 8 -

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

                                  Heidrick & Struggles, Inc.

                                      /s/ Stephanie W. Abramson
                                  By:_______________________________________
                                     Name: Stephanie W. Abramson
                                     Title: Chief Legal Officer, Secretary

                                  /s/ David C. Anderson
                                  __________________________________________
                                  David C. Anderson

                                     - 9 -

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