Document:

Exhibit
10.2

Tatum, LLC

Interim Executive Services
Agreement

September 18, 2006

Mr. Howard J. Lewin

President and Chief Executive Officer

Aksys, Ltd.

Two Marriott Drive

Lincolnshire, IL  60069

Dear Howard:

Tatum, LLC (“Tatum”) understands that Aksys, Ltd. (“the
Company”) desires to engage a partner of Tatum to serve as interim chief financial officer.  This Interim Executive Services Agreement
(this “Agreement”) sets forth the conditions under which such services will be
provided.

Services; Fees

Tatum will make available to the Company Karen
Krumeich (the “Tatum Partner”), who will serve as chief financial officer of the Company. 
The Tatum Partner will become an employee and, if applicable, a duly
elected or appointed officer of the Company and subject to the supervision and
direction of the CEO of the Company, the board of directors of the Company, or
both.  Tatum will have no control or
supervision over the Tatum Partner.

The Company will pay the Tatum Partner directly a
salary of $28,000 a month (“Salary”).

In addition, the Company will pay directly to Tatum a
fee of $7,000 a month (“Fees”) as partial compensation for resources
provided.  The Company will pay Tatum the monthly Fees one month in advance, with
the first payment due on September 18, 2006. 
The second payment and every payment thereafter will be paid in advance
before each month-end related to the following month.

The Company will have no obligation to provide the
Tatum Partner any health or major medical benefits, stock, or bonus
payments.  The Tatum Partner will remain
on his or her current medical plan.

As an employee, the Tatum Partner will be eligible for
any Company vacation and holidays consistent with the Company’s policy as it
applies to senior management, and the Tatum Partner will be exempt from any
delay periods otherwise required for eligibility.

Payments; Deposit

The Company will pay Tatum the
Fees one month in advance, with the first payment for September, prorated, due
on September18, 2006.  The second payment
and every payment thereafter will be paid in advance before each month-end
related to the following month.  The
Company will reimburse the Tatum Partner directly for out-of-pocket expenses
incurred by the Tatum Partner in providing services hereunder to the same
extent that the Company is responsible for such expenses of senior managers of
the Company.  The Tatum Partner shall be
expected to comply with the Company’s policies relating to reimbursement for
travel and other expenses in order to be eligible for such reimbursement.

 

Company agrees to pay Tatum and to maintain a security
deposit of $35,000 for the Company’s future payment obligations to both Tatum
and the Tatum Partner under this Agreement (the “Deposit”).  If the Company breaches this Agreement and
fails to cure such breach as provided in this Agreement, Tatum will be entitled
to apply the Deposit to its damages resulting from such breach.  Upon termination or expiration of this
Agreement, Tatum will return to the Company the balance of the Deposit
remaining after application of any amounts to unfulfilled payment obligations
of the Company to Tatum or the Tatum Partner as provided for in this
Agreement.  Tatum shall return any
unapplied portion of such
Deposit no later than ten (10) business days following the termination or
expiration of this Agreement, and to the extent that any amounts are not return
to the Company, Tatum shall provide a detailed summary of the amount withheld,
including a specific description of the amount owed, the basis for such amount
withheld and documentation in support thereof.

Converting Interim to Regular Full-Time Employee

If the Company determines to convert the Tatum Partner
into a permanent employee of the Company by terminating this Agreement and the
parties hereto are otherwise unable to reach a mutually acceptable agreement
with respect to the amount that the Company will be required to pay (the “Conversion
Fee”) to Tatum as a result of such conversion of employment status, the parties
hereto agree that the Conversion Fee shall be equal to 25% of the Tatum Partner’s
“Annualized Compensation,” plus a nominal ongoing monthly resource fee.  “Annualized Compensation” will mean the Tatum
Partner’s monthly Salary multiplied by 12, plus the maximum amount of
any bonus for which the Tatum Partner was eligible to receive from the
Company with respect to the then current fiscal year.  The Company shall no longer be required to
pay any monthly Fees to Tatum for any period following termination of this
Agreement in connection with the conversion of the Tatum Partner into a
permanent employee of the Company

Term & Termination

This Agreement will terminate upon the effective date
of termination or expiration of the Tatum Partner’s employment with the Company
or upon the Tatum Partner ceasing to be a partner of Tatum.

Notwithstanding the preceding,
following such time as the Tatum Partner has commenced rendering services
hereunder, either party may terminate this Agreement at any time effective
immediately upon written notice to the other party of such termination.

Insurance

The Company will provide Tatum or the Tatum Partner
with written evidence that the Company currently maintains directors’ and
officers’ insurance, and the Company will provide the Tatum Partner with the
same level of directors’ and officers’ insurance as other senior executives and
board members of the Company, including “tail” coverage.

Disclaimers, Limitations of Liability and Indemnification

Tatum assumes no responsibility
or liability under this Agreement other than to render the services called for
hereunder and will not be responsible for any action taken by the Company in
following or declining to follow any of Tatum’s advice or recommendations.  Tatum represents to the Company that Tatum
has conducted its standard screening and investigation procedures with respect
to the Tatum Partner becoming a partner in Tatum, and the results of the same
were satisfactory to Tatum.  Tatum
disclaims all other warranties, either express or implied.  Without 

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limiting the foregoing, Tatum
makes no representation or warranty as to the accuracy or reliability of
reports, projections, forecasts, or any other information derived from use of
Tatum’s resources, and Tatum will not be liable for any claims of reliance on
such reports, projections, forecasts, or information. Tatum will not be liable
for any non-compliance of reports, projections, forecasts, or information or
services with federal, state, or local laws or regulations.  Such reports, projections, forecasts, or
information or services are for the sole benefit of the Company and not any
unnamed third parties.

The Company agrees to indemnity Tatum and the Tatum
Partner to the full extent permitted by law for any losses, costs, damages and
expenses (including reasonable attorneys’ fees) as they are incurred, following
Tatum or the Tatum Partner’s demand, to which Tatum or the Tatum Partner may
become subject arising in connection with the services provided by Tatum or the
Tatum Partner under this Agreement. 
Notwithstanding the foregoing, the Company shall not be liable in
respect of any loss, claim, damage, or expense to the extent such loss, claim,
damage, liability or expense resulted from (i) the gross negligence or willful
misconduct of Tatum or the Tatum Partner or (ii) actions taken by Tatum or the
Tatum Partner in bad faith.  Further, the
Company shall not be liable for any consequential, indirect, incident or
special damages of any nature.  In the
event that any partner of Tatum (including without limitation the Tatum Partner
to the extent not otherwise entitled in his or her capacity as an officer of
the Company) is subpoenaed or otherwise required to appear as a witness such
partner is required to provide evidence, in each case in connection with any
action, suit, or other proceeding initiated by a third party against the
Company or by the Company against a third party, then the Company shall
reimburse Tatum for the reasonable costs and expenses (including reasonable
attorneys’ fees) actually incurred by Tatum as a result of appearing as a
witness or providing such evidence, and the Company shall provide the Tatum
partner with compensation at such Tatum’s partner’s customary rate for the time
incurred; provided, however, that the Company shall have no obligation to
reimburse Tatum or any Tatum partner, respectively, for any such costs and
expenses to the extent such costs or expenses arise from the gross negligence
or misconduct of Tatum or such Tatum partner, respectively, as determined by
the tribunal where such action, suit or proceeding is being held.

The Company agrees that, with respect to any claims
the Company may assert against Tatum in connection with this Agreement or the
relationship arising hereunder, Tatum’s total liability will not exceed six (6)
months of Fees.

As a condition for recovery
of any liability, the Company must assert any claim against Tatum (but not
including the Tatum Partner) within four (4) months after discovery, but
in no event later than six (6) month after the termination or expiration of
this Agreement.

Tatum will not be liable in any event for incidental,
consequential, punitive, or special damages, including without limitation, any
interruption of business or loss of business, profit, or goodwill.

Arbitration

If the parties are unable to resolve any dispute
arising out of or in connection with this Agreement, either party may refer the
dispute to arbitration by a single arbitrator selected by the parties according
to the rules of the American Arbitration Association (“AAA”), and the decision
of the arbitrator will be final and binding on both parties.  Such arbitration will be conducted by the New
York, New York office of the AAA.  In the
event that the parties fail to agree on the selection of the arbitrator within
thirty (30) days after either party’s request for arbitration under this
paragraph, the arbitrator will be chosen by AAA.  The arbitrator may in his discretion order
documentary discovery but shall not allow depositions without a showing of
compelling need.  

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The arbitrator will render his decision within ninety
(90) days after the call for arbitration. 
The arbitrator will have no authority to award punitive damages.  Judgment on the award of the arbitrator may
be entered in and enforced by any court of competent jurisdiction.  The arbitrator will have no authority to
award damages in excess or in contravention of this Agreement and may not amend
or disregard any provision of this Agreement, including this paragraph.  Notwithstanding the foregoing, either party
may seek appropriate injunctive relief from a court of competent jurisdiction,
and either party may seek injunctive relief in any court of competent
jurisdiction.  Further, notwithstanding
the foregoing, any dispute relating to the ownership of intellectual property
will not be subject to arbitration but will instead be subject to determination
by a court of competent jurisdiction.

Miscellaneous

Tatum will be entitled to receive all reasonable costs
and expenses incidental to the collection of overdue amounts under this
Agreement, including but not limited to attorneys’ fees actually incurred.

Neither the Company nor Tatum will be deemed to have
waived any rights or remedies accruing under this Agreement unless such waiver
is in writing and signed by the party electing to waive the right or remedy.  This Agreement binds and benefits the
respective successors of Tatum and the Company.

Neither party will be liable for any delay or failure
to perform under this Agreement (other than with respect to payment
obligations) to the extent such delay or failure is a result of an act of God,
war, earthquake, civil disobedience, court order, labor dispute, or other cause
beyond such party’s reasonable control.

The provisions on the attached Schedule A are
incorporated herein by reference.  The
provisions in this Agreement concerning payment of compensation and
reimbursement of costs and expenses, limitation of liability, directors’ and
officers’ insurance, indemnity and
arbitration will survive any termination or expiration of this Agreement.

This Agreement will be governed by and construed in
all respects in accordance with the laws of the State of New York, without
giving effect to conflicts-of-laws principles.

The terms of this Agreement are severable and may not
be amended except in writing signed by the party to be bound.  If any portion of this Agreement is found to
be unenforceable, the rest of this Agreement will be enforceable except to the
extent that the severed provision deprives either party of a substantial
benefit of its bargain.

Nothing in this Agreement shall confer any rights upon
any person or entity other than the parties hereto and their respective successors and permitted assigns
and the Tatum Partner.

This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.  This Agreement, once executed by a party,
may be delivered to the other party hereto by facsimile transmission of a copy
of this Agreement bearing the signature of the party so delivering this
Agreement.

Each person signing below is authorized to sign on
behalf of the party indicated, and in each case such signature is the only one
necessary.

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Electronic Payment Instructions for Deposit and Fees:

Bank
Name:  Bank of America 

Branch:  Atlanta

Routing Number:                  For ACH Payments:  061 000 052

Account Name: Tatum, LLC

Account Number: 003 279 247 763

Please
reference AKSYS in the body of the wire.

Please
sign below and return a signed copy of this letter to indicate the Company’s
agreement with its terms and conditions.

We look forward to serving you.

Sincerely yours,

	
  TATUM, LLC

  	
   

  	
   

  	
  Acknowledged and agreed by:

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Linda C.
  Klute

  	
   

  	
   

  	
  AKSYS, Ltd.

  
	
  Signature

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Howard J. Lewin

  
	
  Linda C. Klute

  	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  
	
  Healthcare
  Managing Partner

  	
   

  	
   

  	
  Howard J. Lewin

  
	
  for TATUM, LLC

  	
   

  	
   

  	
  (Print name)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  President and CEO

  
	
   

  	
   

  	
   

  	
  (Title)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  September 18, 2006

  
	
   

  	
   

  	
   

  	
  (Date)

  
	
   

  	
   

  	
   

  	
   

  

 

 5Exhibit 10.3

Aksys,
Ltd.

Two Marriott Drive

Lincolnshire, 
IL   60069

September
20, 2006

Mr.
Laurence P. Birch

437 West Roslyn Place
Chicago, IL 60614

Re:             Separation
from Employment

Dear Larry:

To confirm our discussions,
we have determined that Aksys, Ltd. no longer requires your services as Senior
Vice President and Chief Financial Officer. 
As a result of this decision, the termination of your employment with
Aksys, Ltd. (the “Company”) will be effective today.

You will be paid today all
outstanding compensation and any accrued, but unused, vacation time.  You will also receive today a cash payment of
$5,000 from the Company, and will waive any right you may have to receive a
third quarter retention bonus from the Company. 
You also will be eligible to convert your medical insurance coverage
under COBRA, and will receive information from our plan administrator
describing this conversion election.  If
you seek reimbursement of any business expenses, you agree to submit your final
expense reimbursement statement within the next ten (10) days, along with
receipts or other supporting documentation. 
The Company will reimburse valid business expenses in accordance with
its standard expense reimbursement policies.

In addition, you will
receive severance equal to twelve (12) months of your current base salary as
set forth on Schedule 1, less applicable withholdings, which will be paid in
the form of salary continuation (“Severance”). 
You will receive your first Severance payment on the Company’s first
regular payday following the expiration of the seven (7) day revocation period
discussed below.  Except for the separation terms proposed in this letter or as otherwise
set forth on Schedule 1, you will not be entitled to any compensation, benefits
or other perquisites of employment after today.

For the next 90 days, your
Company voicemail account will remain active and the Company will forward you
copies of any emails sent to your Company email address (unless such emails
include confidential Company information). 
The Company agrees that it will instruct an employee of the Company to
check your Company email account each business day and to forward to you each
business day copies of any emails (that do not include confidential Company
information) sent to your Company email address.  You will be allowed to keep the laptop
computer you received from the Company, after the Company has (i) obtained a
backup copy of the laptop’s hard drive and (ii) removed all Company information
contained on the hard drive.

	
  Telephone: (847)229-2020

  	
   

  	
  ·   Facsimile: (847)229-2235

  	
   

  	
  ·   R&D Facsimile: (847)229-2081

  

 

 

In exchange for the
consideration provided in this letter agreement, you completely release the
Company, Durus Life Sciences Master Fund Ltd., its and their affiliated,
related, parent or subsidiary entities, and its and their present and former
directors, officers, and employees (the “Released Parties”) from any and all
claims you may now have or have ever had against the Released Parties,
including claims for compensation, bonuses, severance pay, stock options, and
all claims arising from your employment with the Company, including, but not
limited to, any claims arising under the Title VII of the Civil Rights Act
of 1964, the WARN Act or any state counterpart, the Illinois Human Rights Act,
the Age Discrimination in Employment Act (“ADEA”), or any other claims for
violation of any federal, state, or municipal statutes, and any and all claims
for attorneys’ fees and costs (the “Released Claims”).  You agree not to file, cause to be filed, or
otherwise pursue any Released Claims against any of the Released Parties.

Likewise, in exchange for
the consideration provided in this letter agreement, the Company completely
releases you from any and all claims it may now have or has ever had against
you, including claims arising from or relating to your employment with the
Company and service on the Board of Directors, and including all claims for
violation of any federal, state, or municipal statutes, claims under the common
law of any jurisdiction, and any and all claims for attorneys’ fees and costs;
provided, however, that such release shall not apply to any claims the Company
may have relating to (a) any breach by you of your duty of loyalty to the
Company or its stockholders; (b) any acts or omissions by you which involve
intentional misconduct or a knowing violation of law; or (c) any transaction or
transactions from which you derived an improper personal benefit in excess of
$2,000 either individually or together with any other such benefit.

You acknowledge that the
payment and benefits described above exceed the amount to which you otherwise
are entitled under the Company’s policies and practices.  You
understand and agree that this letter shall be maintained in strict confidence,
and that you shall not disclose any of its terms to another person, except to
your legal counsel, tax advisors or immediate family, unless required by law.

We may need to call you on one or more occasions with
questions related to the transition of your management responsibilities.  You agree to make yourself reasonably
available to the Company by telephone during the next 30 days to respond to any
such questions.

You agree not to publicly make or publish any disparaging
remarks, comments or statements (orally or in writing) concerning the Company
or its services, affairs or operations, or the Company’s current or former
directors, officers, employees or agents. 
The Company agrees not to publicly make or publish, and to instruct its
senior management and directors not to publicly make or publish, any
disparaging remarks, comments or statements (orally or in writing) concerning
you.  Nothing contained herein shall
preclude any of the parties from (i) complying with its disclosure obligations
under the securities laws or (ii) providing truthful testimony in response
to a subpoena, court order, regulatory request or other legal process believed
in good faith to be valid.

 

By this letter, you also
hereby resign from the Company’s Board of Directors, effective today.  Please return all Company materials in your
possession, including keys, as soon as possible, except for the laptop computer
discussed above.  Also, remember that
even after your employment with the Company
ends, you must comply with your continuing obligation to maintain the
confidentiality of the Company’s proprietary information, including your
obligations under the Confidentiality and Non-Compete Agreement you signed as a
condition of your employment.

This
letter contains all of our agreements and understandings and it fully
supersedes your offer
letter dated January 14, 2005, and any
other agreements or understandings that we may have had regarding your
employment with the Company or its
termination, with the exception of the Confidentiality and Non-Compete
Agreement.  This letter agreement (the “Agreement”)
is governed by Illinois law and may be amended only in a written document
signed by you and the Company’s
President.  If any term in this Agreement
is unenforceable, the remainder of the Agreement will remain enforceable.

Please
note that you have 21 days to consider this Agreement (but may sign it at any
time before hand if you so desire) and that you can consult an attorney in
doing so.  In addition, you can revoke
this Agreement within 7 days of signing it by sending me a certified letter to
that effect.  This Agreement shall not become effective or
enforceable and no severance payments will be provided until the 7-day
revocation period has expired.

[Signature
page follows]

 

If you have any questions, please feel free to call
me.  We wish you the best in your future
endeavors.

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  /s/

  
	
   

  	
   

  
	
   

  	
  Howard J. Lewin

  

 

To accept the severance package
described above, please sign below and return this letter to me on or before
October 11, 2006.

	
  ACCEPTED AND AGREED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: September
  20, 2006

  	
   

  	
  /s/ Laurence P.
  Birch

  
	
   

  	
   

  	
  Laurence P. Birch

  

 

Schedule
1

Base Salary:  $245,000

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