<PAGE>   1
                                                                   EXHIBIT 10.17

                              EMPLOYMENT AGREEMENT

THIS AGREEMENT, is made and entered into this 15th day of March, 2000, by and
between Fresenius Medical Care North America ("FMC" or the "EMPLOYER"), with
principal offices located at 95 Hayden Avenue, Lexington, MA 02420 and J.
Michael Lazarus ( "EMPLOYEE") currently residing at 60 Old Colony Road,
Wellesley, MA 02481.

WITNESSETH:

WHEREAS, FMC desires to employ EMPLOYEE as Medical Director and Senior Vice
President at FMC and its affiliated corporations in North America, and

WHEREAS, the parties hereto desire to express the terms and conditions of such
employment.

NOW THEREFORE, it is understood and agreed to between the parties as follows:

1.   EMPLOYMENT. FMC hereby employs EMPLOYEE as Medical Director and Senior Vice
     President, and EMPLOYEE hereby accepts the employment upon the terms and
     conditions of this Agreement.

2.   TERM. The term of this Agreement shall commence as of March 15, 2000 and
     shall terminate as of March 15, 2003 in accordance with the provisions
     hereinafter stated. THE INITIAL TERM SHALL BE RENEWED BY A SUCCESSIVE THREE
     (3) YEAR PERIOD UNLESS EITHER PARTY GIVES WRITTEN NOTICE OF NON-RENEWAL TO
     THE OTHER PARTY AT LEAST THIRTY (30) DAYS PRIOR TO ANY TERMINATION DATE.
     THE INITIAL TERM AND ANY SUBSEQUENT RENEWAL PERIODS SHALL BE CALLED THE
     "EMPLOYMENT TERM."

3.   DUTIES AND RESPONSIBILITIES. EMPLOYEE shall serve full time as FMC's
     Medical Director and Senior Vice President and will be responsible for
     supervising and overseeing all matters pertaining to Clinical Quality and
     the Medical Department. EMPLOYEE shall report directly to the Chief
     Executive Officer of FMC. EMPLOYEE shall to the best of his ability and
     experience competently, loyally, diligently and conscientiously perform all
     of the duties and obligations expressly or implicitly required under this
     Agreement. EMPLOYEE further agrees that, in conducting business in the
     interest of the EMPLOYER, he will not engage in, knowingly permit others
     under his control to carry on, or induce others to engage in any practice
     or commit any acts in violation of any federal or state or local law or
     ordinance.

4.   COMPENSATION AND BENEFITS.

a)   BASE SALARY. EMPLOYER shall pay EMPLOYEE for all services rendered a base
     salary of Five Hundred Five Thousand, Six Hundred Twenty Dollars ($505,620)
     per year, (the "Base Salary"), payable in accordance with FMC's payroll
     procedures, subject to customary withholding and employment taxes. At the
     end of each year of employment hereunder, EMPLOYEE's performance for the
     prior year shall be reviewed and evaluated. If EMPLOYEE's performance is
     satisfactory, EMPLOYEE shall receive an increase in his base salary
     commensurate with level of achievement.

b)   INCENTIVE COMPENSATION. During EMPLOYEE's employment with FMC, EMPLOYEE
     shall be entitled to participate in FMC's Management Bonus Plan and any
     other such incentive compensation plans as are now available or may become
     available to other similarly positioned senior executives of FMC. EMPLOYEE
     will be in the senior executive eligibility Level I, wherein the target
     level bonus is forty percent (40%) and the maximum bonus is eighty percent
     (80%) of base salary. Funding for the plan is based upon attainment of
     specific individual and company financial objectives. EMPLOYEE's
     entitlement to a bonus under the Management Bonus Plan will be governed by
     terms of that Plan.

c)   STOCK PLAN. EMPLOYEE shall be eligible to participate in the current
     Fresenius Medical Care AG Stock Incentive Plan, and any future stock
     incentive plan (individually a "Stock Plan" and collectively, the "Stock



<PAGE>   2


     Plans"), subject to IRS approval of such respective Stock Plans. In
     addition to the existing options to purchase Fresenius Medical Care AG
     Preference Shares previously granted to EMPLOYEE (the "Existing Options"),
     EMPLOYEE shall be eligible to receive additional option grants in amounts
     as and if approved by the Fresenius Medical Care AG Managing Board.

d)   BENEFIT PROGRAMS. EMPLOYEE shall continue to be eligible to participate in
     the group employee benefits programs at the senior executive level as now
     established or which subsequently become available.

e)   LIFE INSURANCE. EMPLOYEE will be provided with life insurance in accordance
     with FMC's policy, currently capped at Four Hundred Thousand Dollars
     ($400,000). EMPLOYEE will be provided with the opportunity to purchase
     supplemental life insurance of an additional Six Hundred Thousand Dollars
     ($600,000) beyond the current policy of coverage at his own expense, with
     proof of good health.

     Additionally, this Agreement may be terminated by Employee, if there is a
     reduction in Employee's responsibilities or FMC experiences a change in
     control defined as any of the following: i) the transfer (whether by sale,
     dividend, exchange, lease, merger, consolidation or otherwise) of greater
     that 50 percent (50%) of the voting power of FMC; ii) the transfer (whether
     by sale, dividend, exchange, lease, merger, consolidation or otherwise) of
     all or substantially all the assets or stock of FMC; or iii) any other
     action which results in persons other than the current majority
     shareholders of FMC, having the voting power to direct the management of
     FMC or if FMC relocates its corporate headquarters more than fifty (50)
     miles from its present location in Lexington, Massachusetts.

f)   AUTOMOBILE. EMPLOYEE will be provided with a company car allowance of Seven
     Hundred Dollars ($700) paid monthly and treated as ordinary income.

g)   FINANCIAL PLANNING/TAX PREPARATION. EMPLOYEE will be provided with an
     allowance of Two Thousand Dollars ($2,000) to be paid based upon submitted
     documentation of expenses incurred as a result of financial planning
     assistance or income tax preparation. Reimbursement will be treated as
     ordinary income.

h)   EXPENSES. EMPLOYEE will be reimbursed for travel and other expenses related
     to the performance of his duties under the Agreement and in accordance with
     the EMPLOYER's policies.

i)   VACATION/PTO. EMPLOYEE shall be allowed to carry-over up to two hundred
     (200) hours from year-to-year without losing such time. EMPLOYEE shall also
     accrue PTO days at the maximum available to senior executives under the
     Executive Vacation Policy which currently provides for thirty (30) days of
     PTO per year.

5.   TERMINATION OF EMPLOYMENT. EMPLOYEE's employment hereunder may be
     terminated under the following circumstances:

a)   DEATH. EMPLOYEE's employment hereunder shall terminate upon his death.

b)   TOTAL DISABILITY. The EMPLOYER may terminate EMPLOYEE's employment
     hereunder upon EMPLOYEE becoming "Totally Disabled." For purposes of this
     Agreement, EMPLOYEE shall be "Totally Disabled" if EMPLOYEE is physically
     or mentally incapacitated so as to render EMPLOYEE incapable of performing
     EMPLOYEE's usual and customary duties under this Agreement. EMPLOYEE's
     receipt of Social Security disability benefits or disability benefits under
     a Company-sponsored long-term disability plan shall be deemed conclusive
     evidence of Total Disability for purpose of this Agreement; provided,
     however, that in the absence of EMPLOYEE's receipt of such Social Security
     or long-term disability benefits, the Company's Board of Directors may, in
     its reasonable discretion (but based upon medical evidence), determine that
     EMPLOYEE is Totally Disabled.

c)   VOLUNTARY TERMINATION. EMPLOYER or EMPLOYEE may terminate EMPLOYEE's
     employment hereunder at any time after providing written notice to the
     other party. The EMPLOYEE is required to give the



                                       2
<PAGE>   3


     EMPLOYER at least thirty (30) days written notice if he wishes to terminate
     his employment pursuant to this provision.

d)   TERMINATION BY THE EMPLOYER FOR CAUSE. The EMPLOYER may terminate
     EMPLOYEE's employment for Cause at any time after providing written notice
     to EMPLOYEE. For purposes of this Agreement, the term "Cause" shall mean,
     with respect to the EMPLOYEE, any of the following: (i) commission by
     EMPLOYEE of a felony or of any criminal act involving moral turpitude which
     results in an arrest or indictment; (ii) deliberate and continual refusal
     to satisfactorily perform employment duties reasonably requested by the
     EMPLOYER after 20 days' written notice by certified mail of such failure to
     perform, specifying that the failure constitutes cause (other than as a
     result of vacation, sickness, illness or injury); (iii) fraud or
     embezzlement determined in accordance with the EMPLOYER's normal, internal
     investigative procedures consistently applied in comparable circumstances
     to EMPLOYEES; (iv) gross misconduct or gross negligence in connection with
     the business of the EMPLOYER which has substantial effect on the EMPLOYER;
     (v) failure to obtain and maintain in good order any licenses required for
     EMPLOYEE to perform his duties under this Agreement; or (vi) a breach of
     any of the covenants set forth in Section 7 below. EMPLOYEE will be
     considered to have been terminated for "Cause" if the EMPLOYER determines
     that EMPLOYEE engaged in an act constituting "Cause," regardless of whether
     the individual terminates employment voluntarily or is terminated
     involuntarily, and regardless of whether the individual's termination
     initially was considered to have been for "Cause." The determination of
     "Cause" shall be made by the EMPLOYER in its sole discretion, and shall be
     final and binding on all parties.

e)   TERMINATION BY EMPLOYEE FOR CAUSE. This Agreement may be terminated by
     EMPLOYEE in the event of a breach by FMC of any of its obligations under
     this Agreement, provided EMPLOYEE gives FMC written notice specifying the
     manner in which he believes FMC has breached this Agreement and FMC has
     thirty (30) days from receipt of such notice to cure such breach, or in the
     case of other than a non-payment of money breach, if such breach cannot be
     cured within thirty (30) days, to commence a good faith effort to cure.

     Additionally, this Agreement may be terminated by Employee, if there is a
     reduction in Employee's responsibilities or FMC experiences a change in
     control defined as any of the following: i) the transfer (whether by sale,
     dividend, exchange, lease, merger, consolidation or otherwise) of greater
     that 50 percent (50%) of the voting power of FMC; ii) the transfer (whether
     by sale, dividend, exchange, lease, merger, consolidation or otherwise) of
     all or substantially all the assets or stock of FMC; or iii) any other
     action which results in persons other than the current majority
     shareholders of FMC, having the voting power to direct the management of
     FMC or if FMC relocates its corporate headquarters more than fifty (50)
     miles from its present location in Lexington, Massachusetts.

f)   NOTICE OF TERMINATION. Any termination by the EMPLOYER or the EMPLOYEE
     under this Agreement shall be communicated by notice of termination to the
     other party hereto. For purposes of this Agreement, a Notice of Termination
     shall mean a notice in writing which shall indicate the specific
     termination provision in this Agreement relied upon to terminate EMPLOYEE's
     employment and shall set forth in reasonable detail the facts and
     circumstances claimed to provide a basis for termination of EMPLOYEE's
     employment under the provision so indicated.

6.   COMPENSATION FOLLOWING TERMINATION OF EMPLOYMENT.

a)   Under all circumstances, upon termination the EMPLOYEE shall be entitled to
     receive:

          (i)  Any accrued but unpaid Base Salary for services rendered to the
               date of termination; and

          (ii) Any benefits to which EMPLOYEE may be entitled upon termination
               pursuant to the plans, policies and arrangements referred to in
               Section 4 hereof shall be determined and paid in



                                       3
<PAGE>   4


                  accordance with the terms of such plans, policies and
                  arrangements. ** EMPLOYEE shall have three (3) years from any
                  such termination to exercise his Vested Stock Options. Should
                  he fail to exercise these options within this period, they
                  will be forfeited at the end of that period.

b)   In the event that EMPLOYEE's employment hereunder is voluntarily terminated
     by the EMPLOYER in accordance with Section 5(c), or in the event that
     EMPLOYEE's employment hereunder is terminated by the EMPLOYEE in accordance
     with Section 5(e), the EMPLOYEE shall also be entitled to receive:

            (iii) The balance of the salary payments equivalent to the number of
                  months remaining in the term of the Employment Agreement. At a
                  minimum, the number of months for salary continuance would be
                  eighteen (18) at the rate in effect on the date of termination
                  of employment, such amount to be paid in a lump sum as soon as
                  is practicable thereafter; and

            (iv)  A pro-rated portion of the EMPLOYEE's annual bonus based upon
                  termination of work date.

c)   Any stock options or other awards will continue to vest in accordance with
     the terms of the award and the plan pursuant to which it was made. If the
     terms of any award and governing plan are silent with respect to
     termination of employment, such award will lapse immediately upon such
     termination.

7.   NON-DISCLOSURE/NON COMPETITION AGREEMENT. EMPLOYEE acknowledges that during
     the term of employment with EMPLOYER, he will have access to and become
     acquainted with Confidential Information of the EMPLOYER. Confidential
     Information means all information related to the present or planned
     business of FMC that has not been released publicly by authorized
     representatives of FMC, and shall include but not be limited to, trade
     secrets and know-how, inventions, marketing and sales programs, employee,
     customer, patient and supplier information, information from patient
     medical records, financial data, pricing information, regulatory approval
     and reimbursement strategies, data, operations and clinical manuals.

     EMPLOYEE agrees not to use or disclose, directly or indirectly, any
     Confidential Information of FMC at any time and in any manner, except as
     required in the course of his employment with FMC or with the express
     written authority of FMC.

     EMPLOYEE understands that his non-disclosure obligations will continue
     following his termination of employment.

     EMPLOYEE agrees that during the term of his employment, and for a period of
     one (1) year immediately after, he leaves the employment of FMC for any
     reason or the end of the period during which EMPLOYEE continues to receive
     salary continuation after leaving the employment of FMC, whichever is
     greater, EMPLOYEE will not directly or indirectly for his own benefit or
     the benefit of others:

          a)   render services for a competing organization in connection with
               competing products as an employee, officer, agent, broker,
               consultant, partner, stockholder (except that EMPLOYEE may own
               three percent (3%) or less of the equity securities of any
               publicly-traded company);

          b)   hire or seek to persuade any employee of FMC to discontinue
               employment or to become employed in any competing organization or
               seek to persuade any independent contractor or supplier to
               discontinue its relationship with FMC; and

          c)   solicit, direct, take away or attempt to take away any business
               or customers of FMC.

     Nothing in this Agreement would preclude EMPLOYEE from working for a
     competitor of FMC's subsequent to termination of EMPLOYEE's employment
     provided EMPLOYEE will not be engaged, directly or indirectly, in any
     business in which FMC is actively engaged at the time of EMPLOYEE's
     termination or in any new business which FMC is in the process of setting
     up in which EMPLOYEE had direct involvement while



                                       4
<PAGE>   5

     employed by FMC. EMPLOYEE also agrees to inform FMC of any such employment
     with a competitor before beginning such employment.

8.   ENFORCEMENT OF COVENANTS.

a)   TERMINATION OF EMPLOYMENT AND FORFEITURE OF COMPENSATION. EMPLOYEE agrees
     that in the event that the EMPLOYER determines that EMPLOYEE has breached
     any of the covenants set forth in Section 7 hereof during EMPLOYEE's
     employment, the EMPLOYER shall have the right to terminate EMPLOYEE's
     employment for "Cause." For purposes of this Agreement, the term "Cause"
     shall mean, with respect to the EMPLOYEE, any of the following: (i)
     commission by EMPLOYEE of a felony or of any criminal act involving moral
     turpitude which results in an arrest or indictment; (ii) deliberate and
     continual refusal to satisfactorily perform employment duties reasonably
     requested by the EMPLOYER after 20 days' written notice by certified mail
     of such failure to perform, specifying that the failure constitutes cause
     (other than as a result of vacation, sickness, illness or injury); (iii)
     fraud or embezzlement determined in accordance with the EMPLOYER's normal,
     internal investigative procedures consistently applied in comparable
     circumstances to EMPLOYEES; (iv) gross misconduct or gross negligence in
     connection with the business of the EMPLOYER which has substantial effect
     on the EMPLOYER; (v) failure to obtain and maintain in good order any
     licenses required for EMPLOYEE to perform his duties under this Agreement;
     or (vi) a breach of any of the covenants set forth in Section 7 above.
     EMPLOYEE will be considered to have been terminated for "Cause" if the
     EMPLOYER determines that EMPLOYEE engaged in an act constituting "Cause,"
     regardless of whether the individual terminates employment voluntarily or
     is terminated involuntarily, and regardless of whether the individual's
     termination initially was considered to have been for "Cause." The
     determination of "Cause" shall be made by the EMPLOYER in its sole
     discretion, and shall be final and binding on all parties.

     In addition, EMPLOYEE agrees that if the EMPLOYER determines that EMPLOYEE
     has breached any of the covenants set forth in Section 7 at any time, the
     EMPLOYER shall have the right, notwithstanding anything herein to the
     contrary, to discontinue any or all amounts otherwise payable to EMPLOYEE
     hereunder. Such termination of employment or discontinuance of payments
     shall be in addition to and shall not limit any and all other rights and
     remedies that the EMPLOYER may have against EMPLOYEE.

b)   RIGHT TO INJUNCTION. EMPLOYEE acknowledges that a breach of the covenants
     set forth in Section 7 hereof will cause irreparable damage to the EMPLOYER
     with respect to which the EMPLOYER's remedy at law for damages will be
     inadequate. Therefore, in the event of breach or anticipatory breach of the
     covenants set forth in this section by EMPLOYEE, EMPLOYEE and the EMPLOYER
     agree that the EMPLOYER shall be entitled to the following particular forms
     of relief, in addition to remedies otherwise available to it at law or
     equity: (i) injunctions, both preliminary and permanent, enjoining or
     retraining such breach or anticipatory breach and EMPLOYEE hereby consents
     to the issuance thereof forthwith and without bond by any court of
     competent jurisdiction; and (ii) recovery of all reasonable sums expended
     and costs, including reasonable attorney's fees, incurred by the EMPLOYER
     to enforce the covenants set forth in this section.

c)   SEPARABILITY OF COVENANTS. The covenants contained in Section 7 hereof
     constitute a series of separate covenants, one for each applicable State in
     the United States and the District of Columbia, and one for each applicable
     foreign country. If in any judicial proceeding, a court shall hold that any
     of the covenants set forth in Section 7 exceed the time, geographic, or
     occupational limitations permitted by applicable laws, EMPLOYEE and the
     EMPLOYER agree that such provisions shall and are hereby reformed to the
     maximum time, geographic, or occupational limitations permitted by such
     laws. Further, in the event a court shall hold unenforceable any of the
     separate covenants deemed included herein, then such unenforceable covenant
     or covenants shall be deemed eliminated from the provisions of this
     Agreement for the purpose of such proceeding to the extent necessary to
     permit the remaining separate covenants to be enforced in such proceeding.
     EMPLOYEE and the EMPLOYER further agree that the covenants in Section 7
     shall each be construed as a separate agreement independent of any other
     provisions of this Agreement, and the existence of any claim or cause of
     action by Employee against the Company whether predicated on this Agreement
     or otherwise, shall not constitute a defense to the enforcement by the
     Company of any of the covenants in Section 7.


                                       5
<PAGE>   6


9.   FMC DOCUMENTS AND EQUIPMENT. All documents and equipment relating to the
     business of FMC, whether prepared by EMPLOYEE or otherwise coming into
     EMPLOYEE's possession, are the exclusive property of FMC, and must not be
     removed from the premises of FMC except as required in the course of
     employment. Any such documents and equipment must be returned to FMC when
     EMPLOYEE leaves the employment of FMC.

10.  WITHHOLDING OF TAXES. The EMPLOYER may withhold from any compensation and
     benefits payable under this Agreement all applicable federal, state, local,
     or other taxes.

11.  ENTIRE AGREEMENT AND AMENDMENTS. This Agreement shall constitute the entire
     agreement between the parties and supersedes all existing agreements
     between them, whether oral or written, with respect to the subject matter
     hereof. Any waiver, alteration, or modification of any of the provisions of
     this Agreement, or cancellation or replacement of this Agreement shall be
     accomplished in writing and signed by the respective parties.

12.  NOTICES. Any notice, consent, request or other communication made or given
     in connection with this Agreement shall be in writing and shall be deemed
     to have been duly given when delivered or mailed by registered or certified
     mail, return receipt requested, to those listed below at their following
     respective addresses or at such other address as each may specify by notice
     to the others:

               To the Employer:
                     Fresenius Medical Care North America
                     Corporate Headquarters
                     Two Ledgemont Center
                     95 Hayden Avenue
                     Lexington, MA 02420-9192
                     Attention:  Vice President, Human Resources

               To Employee:
                     At the address for Employee set forth above

13.  GOVERNING LAW. This Agreement shall be construed in accordance with, and
     the rights of the parties shall be governed by, the laws of the
     Commonwealth of Massachusetts.

14.  SEPARABILITY. If any term or provision of this Agreement is declared
     illegal or unenforceable by any court of competent jurisdiction and cannot
     be modified to be enforceable, such term or provision shall immediately
     become null and void, leaving the remainder of this Agreement in full force
     and effect.


                                       6
<PAGE>   7

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by the
undersigned duly authorized persons as of the day and year first stated above.

                               NATIONAL MEDICAL, INC. d/b/a
                               FRESENIUS MEDICAL CARE
                               NORTH AMERICA,
WITNESS                        EMPLOYER

/s/ Brian O'Connell            By: /s/ Ben Lipps                       4/20/00
------------------------           ----------------------------        --------
                                   Ben J. Lipps                         (DATE)
                                   Chief Executive Officer


WITNESS                            J. MICHAEL LAZARUS

/s/ Lorraine Gettings              /s/ J. Michael Lazarus, M.D.        4/6/2000
------------------------           ----------------------------        --------
                                   (Employee Signature)                 (DATE)