Document:

Exhibit

Exhibit 10.14

EMPLOYMENT AGREEMENT
BETWEEN
GREGORY P. MADISON
AND
KERYX BIOPHARMACEUTICALS, INC.

EMPLOYMENT AGREEMENT
TABLE OF CONTENTS
1.Effective Date    1
2.Employment    1
3.Employment Period    1
4.Extent of Service    2
5.Compensation and Benefits    2
6.Termination of Employment    4
7.Obligations of the Company upon Termination    7
8.Change in Control    10
9.Non-exclusivity of Rights    11
10.No Mitigation    12
11.Mandatory Reduction of Payments in Certain Events    12
12.Restrictions on Conduct of Executive    13
13.Invention Assignment    16
14.Return of Materials    17
15.Successors and Assigns    17
16.Cooperation    17
17.Code Section 409A    18
18.Miscellaneous    19

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into this 10th day of March, 2015 by and between Keryx Biopharmaceuticals, Inc., a Delaware corporation (the “Company”), and Gregory P. Madison (“Executive”), to be effective as of the Effective Date, as defined in Section 1.
BACKGROUND
WHEREAS, the Company currently employs Executive as its President and Chief Operating Officer; and
WHEREAS, the Company desires to engage Executive as President and Chief Executive Officer of the Company in accordance with the terms of this Agreement.  Executive is willing to serve as such in accordance with the terms and conditions of this Agreement.
NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.Effective Date.  The effective date of this Agreement (the “Effective Date”) shall be the date first written above.

2.    Employment.
(a)    Executive shall be employed as the President and Chief Executive Officer of the Company commencing by no later than May 20, 2015 (for purposes of this Agreement, the date on which Executive actually is appointed Chief Executive Officer shall be the “Start Date”).  In his capacity as President and Chief Executive Officer, Executive shall have the duties, responsibilities and authority commensurate with such position and as are typically performed by a President and Chief Executive Officer of a corporation, together with such additional duties, commensurate with Executive’s position as President and Chief Executive Officer of the Company that may be assigned to Executive from time to time by the Board of Directors of the Company (the “Board”).  In his capacity as President and Chief Executive Officer, Executive shall report directly to the Board. The principal location of Executive’s employment shall be at the Company’s offices in Boston, Massachusetts. The Executive understands and agrees that he may be required to travel from time to time for business reasons, including travel to/from the Company’s offices in New York, New York.

3.    Employment Period.  Unless earlier terminated herein in accordance with Section 6 hereof, Executive’s employment shall be for a term beginning on the Start Date and ending on March 9, 2018.  The initial and any renewal period during which Executive is employed pursuant to this Agreement shall be referred to as the “Employment Period.”  The Employment Period shall be automatically renewed for consecutive periods of one (1) year unless either party provides at least sixty (60) days’ advance written notice, consistent with Section 18(d) of this Agreement, of its intent not to renew the employment relationship as of the end of the initial or any renewal period. In the case of any such renewal and extension of the Employment Period, the terms and conditions of this Agreement shall continue to govern unless otherwise agreed to in writing by the parties. 

4.    Extent of Service.  During the Employment Period, Executive agrees to devote his full business time, attention, energy and best efforts to the business and affairs of the Company and to use Executive’s reasonable best efforts to perform faithfully and efficiently the responsibilities assigned to Executive hereunder.  During the Employment Period, it shall not be a violation of this Agreement for Executive to (A) manage personal investments, or (B) devote time to charitable and community activities or, with the approval of the Board, industry or professional activities including service on the board of directors of another corporation, so long as such activities do not interfere or conflict with the performance of Executive’s responsibilities as an employee of the Company in accordance with this Agreement.

5.    Compensation and Benefits.
(a)    Base Salary.  Beginning on the Effective Date and during the Employment Period, the Company shall pay to Executive a base salary at the rate of five hundred twenty five thousand dollars (U.S. $525,000) per year (“Base Salary”), less normal withholdings, payable in approximately equal bi-weekly or other installments as are or become customary under the Company’s payroll practices for its employees from time to time.  On the first regularly scheduled pay date following the Effective Date, the Company shall pay Executive an amount equal to the difference between: (i) the salary paid to Executive between January 11, 2015 and the Effective Date, and (ii) the Base Salary that would have been paid to Executive between January 11, 2015 and the Effective Date had Executive been earning the Base Salary, subject to normal withholdings and the related terms described herein. The Compensation Committee of the Board shall review Executive’s Base Salary annually and, in its sole discretion, may increase Executive’s Base Salary from year to year.  Such adjusted salary then shall become Executive’s Base Salary for purposes of this Agreement.  In no event shall Executive’s Base Salary be reduced during the Employment Period unless such reduction is in connection with a proportionate reduction of compensation applicable to all other executive officers.  The annual review of Executive’s Base Salary by the Board shall consider, among other things, Executive’s own performance and the Company’s performance. 
(b)    Incentive, Savings and Retirement Plans.  During the Employment Period, Executive shall be entitled to participate in all incentive, savings and retirement plans, practices, policies and programs available to other senior executive officers of the Company (“Peer Executives”), and on the same basis as such Peer Executives.  Without limiting the foregoing, the following shall apply:
(i)    Annual Performance Bonus.  For each year during the Employment Period, Executive shall be eligible to receive an annual performance bonus of up to sixty percent (60%) of his Base Salary (such 60 percent target referred to herein as the “Target Annual Bonus,” and the actual annual bonus paid referred to herein as the “Annual Bonus”).  The Compensation Committee, in its sole discretion, shall establish performance goals and objectives from year to year on which the Annual Bonus shall be based, and the Compensation Committee likewise reserves the sole discretion to modify such goals and objectives, or the final amount of the Annual Bonus, based upon events occurring during the related year or its assessment of the Company’s or Executive’s performance in general.  The Compensation Committee shall provide Executive with such goals and objectives and any modifications it may make. Unless otherwise provided herein, no Annual Bonus shall be deemed to have been earned by Executive for any year in which Executive is not actively employed by the Company on the last day of the fiscal year to which the bonus relates.  The Company shall pay the Annual Bonus no later than two and a half months after the end of the fiscal year to which the applicable bonus relates.
(ii)    Equity Grants.  Subject to the approval of the Compensation Committee, on the Start Date the Company shall grant to Executive five hundred fifty thousand (550,000) shares of restricted common stock under the Company’s 2013 Incentive Plan (the “Plan”), subject to the lapsing forfeiture rights set forth below and the terms and conditions of the Company’s standard restricted stock agreement (the “Restricted Stock Agreement”):
1.Two hundred seventy five thousand (275,000) shares of restricted stock shall vest and become non-forfeitable if Auryxia is number 1 in market share for the phosphate binder in dialysis market for two (2) consecutive calendar quarters between the Start Date and December 31, 2021, with such market share standing to be determined by exclusive reference to the Company’s consolidated market share data which includes physician-level script numbers from IMS National Prescription Audit Data, DaVita Rx and Fresenius Rx (the “Market Share Milestone”), provided that Executive is providing services to the Company as an employee or consultant on the date the Market Share Milestone is achieved, subject to any acceleration upon certain events as may be set forth in the Plan, the Restricted Stock Agreement, or Section 7 below.

2.Twenty five thousand (25,000) shares of restricted stock shall vest and become non-forfeitable if the Company exceeds $55,000,000 in net sales for calendar year 2015 (the “2015 Net Sales Milestone”), provided that Executive is providing services to the Company as an employee or consultant on the date the 2015 Net Sales Milestone is achieved, subject to any acceleration upon certain events as may be set forth in the Plan, the Restricted Stock Agreement, or Section 7 below.

3.One hundred twenty five thousand (125,000) shares of restricted stock shall vest and become non-forfeitable if the Company exceeds $160,000,000 in net sales for calendar year 2016 (the “2016 Net Sales Milestone”), provided that Executive is providing services to the Company as an employee or consultant on the date the 2016 Net Sales Milestone is achieved, subject to any acceleration upon certain events as may be set forth in the Plan, the Restricted Stock Agreement, or Section 7 below.

4.One hundred twenty five thousand (125,000) shares of restricted stock shall vest and become non-forfeitable upon the FDA approval of Auryxia (or, if applicable, an approved trade name utilized for Ferric Citrate related to the below-described trial) in the treatment of iron deficiency anemia in patients with stages 3 – 5 non-dialysis dependent CKD resulting from the phase 3 clinical study initiated in September 2014 (the “Approval Milestone”), provided that Executive is providing services to the Company as an employee or consultant on the date the Approval Milestone is achieved, and subject to any acceleration upon certain events as may be set forth in the Plan, the Restricted Stock Agreement, or Section 7 below. 

The above-referenced milestones shall be referred to collectively as the “Performance Milestones.”  The determination of whether any Performance Milestone has been achieved (and whether the lapsing forfeiture right applicable to the restricted stock subject to such Performance Milestone shall lapse) shall be made by the Compensation Committee in its sole discretion, upon written certification.  Should any Performance Milestone remain unmet as of the end of the last day of the time period in which such Performance Milestone must be achieved, then the restricted stock subject to such Performance Milestone shall be forfeited to the Company without consideration.  The parties acknowledge and agree that the above-described grants of restricted stock are in addition to, and not in lieu of, the Company’s prior equity grants to Executive, which grants shall remain subject to their respective applicable governing plan document(s) and equity agreement(s).
During the Employment Period, Executive may be eligible for additional stock-based awards under the Company’s long-term incentive plans, as determined by the Compensation Committee from time to time.  Nothing herein requires the Board or the Compensation Committee to make additional equity grants in any year.
(c)    Welfare Benefit Plans.  During the Employment Period, Executive and Executive’s eligible dependents shall be eligible for participation in, and shall receive all benefits under, the welfare benefit plans, practices, policies and programs provided by the Company (including, without limitation, medical, prescription drug, dental, disability, and employee life insurance plans and programs) (“Welfare Plans”) to the extent available to other Peer Executives.
(d)    Expenses.  During the Employment Period, Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by Executive in the course of performing his duties and responsibilities under this Agreement, including without limitation reasonable expenses relating to Executive’s travel to/from the Company’s offices in New York, New York on an as-needed basis, in accordance with the policies, practices and procedures of the Company with respect to travel, entertainment and other business expenses.
(e)    Vacation. During the Employment Period, Executive shall be entitled to four (4) weeks of paid vacation per calendar year, otherwise subject to and in accordance with the Company’s vacation and paid time off policies. 

6.    Termination of Employment.
(a)    Death.  Executive’s employment shall terminate automatically upon Executive’s death during the Employment Period.
(b)    Disability.  If the Company determines in good faith that Executive has become Disabled (as defined below) during the Employment Period, it may give to Executive written notice of its intention to terminate Executive’s employment.  In such event, Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such written notice by Executive (the “Disability Effective Date”), provided that, within the 30 days after such receipt, Executive shall not have returned to full-time performance of Executive’s duties.  For purposes of this Agreement, Executive shall be Disabled if either of the following conditions is met, as determined by the Board in good faith:
(i)    Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for one or more periods totaling one hundred and twenty (120) days in any twelve (12) month period; or
(ii)    Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for one or more periods totaling one hundred and twenty (120) days in any twelve (12) month period, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company.
(c)    Termination by the Company.  The Company may terminate Executive’s employment during the Employment Period with or without Cause.  For purposes of this Agreement, a termination shall be considered to be for “Cause” if it occurs in conjunction with a determination by the Board that any of the following has occurred:
(i)    Executive’s conviction of, pleading guilty to, or confession to a felony or any crime involving any act of dishonesty, fraud, misappropriation or embezzlement;
(ii)    Executive’s misconduct or gross negligence in connection with the performance of his duties hereunder, including a violation of the Company’s written policies or Code of Conduct and Ethics;
(iii)    Executive’s engaging in any fraudulent, disloyal or unprofessional conduct which is, or is likely to be, injurious to the Company, its financial condition, or its reputation;
(iv)    Executive’s failure to perform his duties with the Company (other than any such failure resulting from Executive’s Disability);
(v)    Executive’s failure to meet performance standards which may be agreed upon by Executive and the Company in writing from time to time (with the understanding that failure to meet the performance criteria established with respect to an Annual Bonus alone shall not constitute Cause for purposes of this Agreement); or
(vi)    Executive’s breach of the covenants set forth in Section 12 of this Agreement, or material breach of any other provisions of this Agreement.
If the Company determines that it has grounds to terminate Executive’s employment for Cause pursuant to the provisions of clauses (iv), (v), or (vi) of this subsection (c), then it shall first deliver to Executive a written notice setting forth with specificity the occurrence deemed to give rise to a right to terminate his employment for Cause, and Executive shall have 30 days after the receipt of such written notice to cease such actions or otherwise correct any such failure or breach.  If Executive does not cease such actions or otherwise correct such failure or breach within such 30-day period, or having once received such written notice and ceased such actions or corrected such failure or breach, Executive at any time thereafter again so acts, fails, or breaches, the Company may terminate his employment for Cause immediately.  The Company may terminate Executive’s employment without Cause, or for Cause pursuant to the provisions of clauses (i), (ii), or (iii) of this subsection (c), immediately.
(d)    Termination by Executive.  Executive’s employment may be terminated by Executive with or without Good Reason.  Executive’s termination without Good Reason shall require 30 days’ prior written notice to the Company.  Executive’s termination for Good Reason must occur within a period of 90 days after the occurrence of an event of Good Reason.  For purposes of this Agreement, “Good Reason” shall mean any of the following, without Executive’s consent:
(i)    a material diminution in Executive’s Base Salary, which for purposes of this Agreement shall mean a reduction of more than 15% in the aggregate;
(ii)    a material diminution in Executive’s title, position, authority, duties, or responsibilities;
(iii)    a material change in the geographic location of Executive’s principal place of business, which for purposes of this Agreement shall mean a location more than 35 miles from the Company’s offices in Boston, Massachusetts at which Executive was principally employed except for required travel on the Company’s business; or
(iv)    any other action or inaction that constitutes a material breach by the Company of this Agreement.
A termination by Executive shall not constitute termination for Good Reason unless Executive shall first have delivered to the Company a written notice setting forth with specificity the occurrence deemed to give rise to a right to terminate for Good Reason (which notice must be given no later than 60 days after the initial occurrence of such event), and there shall have passed a reasonable time (not less than 30 days) within which the Company may take action to correct, rescind or otherwise substantially reverse the occurrence supporting termination for Good Reason as identified by Executive.  Good Reason shall not include Executive’s death or Disability.  The parties intend, believe and take the position that a resignation by Executive for Good Reason as defined above effectively constitutes an involuntary separation from service within the meaning of Section 409A of the Code and Treas.  Reg. §1.409A-1(n)(2).
(e)    Notice of Termination.  Any termination by the Company or Executive shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 18(d) of this Agreement.  For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated, and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date.  The failure by the Company or Executive to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive any right of the Company or Executive hereunder or preclude the Company or Executive from asserting such fact or circumstance in enforcing its rights hereunder.
(f)    Date of Termination.  “Date of Termination” means (i) if Executive’s employment is terminated other than by reason of death or Disability, the date of receipt of the Notice of Termination or any later date specified therein, or (ii) if Executive’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of Executive or the Disability Effective Date, as the case may be.

7.    Obligations of the Company upon Termination.
(a)    Termination by Executive for Good Reason; Termination by the Company without Cause.  If, during the Employment Period, the Company shall terminate Executive’s employment without Cause, or Executive shall terminate his employment for Good Reason, then and, with respect to the payments and benefits described in clause (iii), (iv), (v), (vi), (vii) and (viii) below, only if Executive shall have executed and not revoked a release of claims in a form satisfactory to the Company:
(i)    the Company shall pay to Executive in a lump sum in cash within 60 days after the Date of Termination, the exact payment date to be determined by the Company (or such later date as may be required pursuant to Section 17 hereof), the sum of (1) Executive’s Base Salary through the Date of Termination to the extent not theretofore paid, (2) the Annual Bonus, pro-rated as necessary, earned by Executive for the fiscal year immediately prior to the year in which the Date of Termination occurs, if any, to the extent not theretofore paid, and (3) any accrued but unused vacation pay to the extent not theretofore paid (the sum of the amounts described in clauses (1), (2) and (3) shall be hereinafter referred to as the “Accrued Obligations”); and
(ii)    to the extent not theretofore paid or provided, the Company shall timely pay or provide to Executive any other amounts or benefits required to be paid or provided or which Executive is entitled to receive under any plan, program, policy or practice or contract or agreement of the Company and its affiliated companies (such other amounts and benefits shall be hereinafter referred to as the “Other Benefits”); and
(iii)    the Company shall pay to Executive twelve (12) months of severance pay based on Executive’s Base Salary as of the Date of Termination (the “Severance Pay”).  The foregoing Severance Pay shall be paid in equal installments over the severance period in accordance with the Company’s usual payroll schedule, commencing on the date that the release referred to above may no longer be revoked (or such later date as may be required pursuant to Section 17); and
(iv)    the Company shall pay to Executive a severance bonus in an amount equal to a portion of the Target Annual Bonus, pro-rated  based on the period of Executive’s employment in the terminal year of employment through the Date of Termination; and
(v)    for a period of up to twelve (12) months following Executive’s Date of Termination, Executive and where applicable, Executive’s spouse and eligible dependents, shall continue to be eligible to receive health and medical coverage under the Company’s health and medical plans in accordance with the terms of the applicable plan documents; provided, that in order to receive such continued coverage at such rates, Executive shall be required to pay the applicable premiums to the plan provider, and the Company shall reimburse Executive, within sixty (60) days following the date such monthly premium payment is due, an amount equal to the monthly COBRA (or, as applicable, other) premium payment, less tax withholdings (“COBRA Benefits”). Notwithstanding the above, if the Company determines in its sole discretion that it cannot provide the foregoing COBRA benefits without potentially violating applicable law, the Company in lieu thereof shall provide to Executive a taxable lump sum payment in an amount equal to the monthly (or then remaining) COBRA premium that Executive would be required to pay to continue his group health and medical coverage on the Date of Termination (which amount shall be based on the premium for the first month of COBRA coverage); and
(vi)    any vested portion of stock options granted to Executive by the Company shall remain exercisable by Executive for a period of one (1) year following the Date of Termination (or, if earlier, the normal expiration date of such stock options), and any unvested portion of stock options and any shares of restricted stock and other equity incentives outstanding (other than shares of restricted stock subject to the Market Share Milestone or Approval Milestone, as described in subsections (vii) and (viii) below) as of the Date of Termination shall immediately lapse and be forfeited without consideration as of the Date of Termination; and
(vii)    any shares of restricted stock subject to the Market Share Milestone described in Section 5(b)(ii) shall remain outstanding for a period of twelve (12) months following the Date of Termination, and to the extent that the Market Share Milestone is achieved during such twelve-month period, the shares of restricted stock subject to the Market Share Milestone shall vest and become non-forfeitable pursuant to the terms set forth in Section 5(b)(ii), the Plan, and the applicable Restricted Stock Agreement; and
(viii)    any shares of restricted stock subject to the Approval Milestone described in Section 5(b)(ii) shall remain outstanding for a period of three (3) months following the Date of Termination, and to the extent that the Approval Milestone is achieved during such three-month period, the shares of restricted stock subject to the Approval Milestone shall vest and become non-forfeitable pursuant to the terms set forth in Section 5(b)(ii), the Plan, and the applicable Restricted Stock Agreement.
(b)    Death or Disability.  If Executive’s employment is terminated by reason of Executive’s death or Disability during the Employment Period, this Agreement shall terminate without further obligations to Executive or Executive’s legal representatives under this Agreement, other than for payment of Accrued Obligations and the timely payment or provision of Other Benefits.  Accrued Obligations shall be paid to Executive or Executive’s estate or beneficiaries, as applicable, in a lump sum in cash within 60 days after the Date of Termination.  With respect to the provision of Other Benefits, the term “Other Benefits” as used in this Section 7(b) shall include without limitation, and Executive or Executive’s estate and/or beneficiaries shall be entitled to receive, benefits under such plans, programs, practices and policies relating to death, disability or retirement benefits, if any, as are applicable to Executive on the Date of Termination.  In addition, in the event of such a termination, and provided that Executive or his estate or beneficiaries, if applicable, executes and does not revoke a release of claims in a form acceptable to the Company:
(i)    any vested portion of stock options granted to Executive by the Company shall remain exercisable by Executive and/or his estate or beneficiaries for a period of one (1) year following the Date of Termination (or, if earlier, the normal expiration date of such stock options), and any unvested portion of stock options and any shares of restricted stock and other equity incentives outstanding as of the Date of Termination shall immediately lapse and be forfeited without consideration as of the Date of Termination; and  
(ii)    if Executive’s employment terminates due to death, the Compensation Committee of the Board shall determine the extent to which any of the performance goals and objectives established pursuant to Section 5(b)(i) above were met as of the time Executive’s death.  If, based on that determination, the Compensation Committee of the Board determines that a bonus is due, the Company shall pay Executive’s estate an amount equal to such bonus, pro-rated for the portion of the fiscal year elapsed as of the time of Executive’s death. 
(c)    Termination by the Company for Cause; Resignation by Executive Other than for Good Reason.  If Executive’s employment shall be terminated for Cause during the Employment Period, or Executive shall resign other than for Good Reason during the Employment Period, this Agreement shall terminate without further obligations to Executive, other than for payment by the Company to Executive of Accrued Obligations and the timely payment or provision of Other Benefits.  Accrued Obligations shall be paid to Executive in a lump sum in cash within 60 days after the Date of Termination.  In addition, in the event of such a termination, any unvested equity awards shall lapse and be forfeited without consideration on the Date of Termination.
(d)    Expiration of Employment Period.  If Executive’s employment shall be terminated by the Company or by Executive upon the normal expiration of the Employment Period as provided for in Section 3 hereof, this Agreement shall terminate without further obligations to Executive, other than for payment of Accrued Obligations and the timely payment or provision of Other Benefits.  Accrued Obligations shall be paid to Executive in a lump sum in cash within 60 days after the Date of Termination.  In addition, in the event of such a termination, and provided that Executive or his estate or beneficiaries, if applicable, executes and does not revoke a release of claims in a form acceptable to the Company, any vested portion of stock options shall remain exercisable by Executive and/or his estate or beneficiaries for a period of one (1) year following the Date of Termination (or, if earlier, the normal expiration date of such stock options), and any unvested portions of stock options and any shares of restricted and other equity incentives (other than shares of restricted stock subject to the Market Share Milestone or Approval Milestone, as described in subsections (i) and (ii) below) outstanding as of the Date of Termination shall immediately lapse and be forfeited without consideration as of the Date of Termination.  In addition, in the event of such a termination, and provided that Executive or his estate or beneficiaries, if applicable, executes a release of claims in a form acceptable to the Company, (i) any shares of restricted stock subject to the Market Share Milestone described in Section 5(b)(ii) shall remain outstanding for a period of twelve (12) months following the Date of Termination, and to the extent that the Market Share Milestone is achieved during such twelve-month period, the shares of restricted stock subject to the Market Share Milestone shall vest and become non-forfeitable pursuant to the terms set forth in Section 5(b)(ii), the Plan, and the applicable Restricted Stock Agreement; and (ii) any shares of restricted stock subject to the Approval Milestone described in Section 5(b)(ii) shall remain outstanding for a period of three (3) months following the Date of Termination, and to the extent that the Approval Milestone is achieved during such three-month period, the shares of restricted stock subject to the Approval Milestone shall vest and become non-forfeitable pursuant to the terms set forth in Section 5(b)(ii), the Plan, and the applicable Restricted Stock Agreement.
8.    Change in Control.
(a)    Definition.  For the purposes of this Agreement, a “Change in Control” shall mean:
(i)    the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the 1934 Act) of beneficial ownership of any capital stock of the Company if, after such acquisition, such individual, entity or group beneficially owns (within the meaning of Rule 13d-3 promulgated under the 1934 Act) 30% or more of either (x) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company (excluding an acquisition pursuant to the exercise, conversion or exchange of any security exercisable for, convertible into or exchangeable for common stock or voting securities of the Company, unless the individual, entity or group exercising, converting or exchanging such security acquired such security directly from the Company or an underwriter or agent of the Company), (B) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (C) any acquisition by any corporation pursuant to a Business Combination (as defined below) which complies with clauses (x) and (y) of subsection (iii) of this definition; or
(ii)    such time as the Continuing Directors (as defined below) do not constitute a majority of the Board (or, if applicable, the Board of Directors of a successor corporation to the Company), where the term “Continuing Director’ means at any date a member of the Board (x) who was a member of the Board on the Start Date of this Agreement or (y) who was nominated or elected subsequent to such date by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the Board was recommended or endorsed by at least a majority of the directors who were Continuing Directors at the time of such nomination or election; provided, however, that there shall be excluded from this clause (y) any individual whose initial assumption of office occurred as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Board; or
(iii)    the consummation of a merger, consolidation, reorganization, recapitalization or share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, immediately following such Business Combination, each of the following two conditions is satisfied: (x) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the Company’s assets either directly or through one or more subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership of the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively, immediately prior to such Business Combination and (y) no Person (excluding the Acquiring Corporation or any employee benefit plan (or related trust) maintained or sponsored by the Company or by the Acquiring Corporation) beneficially owns, directly or indirectly, 30% or more of the then-outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of the then-outstanding securities of such corporation entitled to vote generally in the election of directors (except to the extent that such ownership existed prior to the Business Combination).
(b)    Severance Benefits.  Upon the occurrence of a Change in Control, if, within one (1) year after the effective date of the Change in Control, Executive’s employment is terminated by the Company or the successor corporation to the Company without Cause, or Executive resigns for Good Reason (as defined above in section 6(d)), then in addition to payment of the Accrued Obligations and Other Benefits, and provided that Executive shall have executed and not revoked a general release of claims in a form satisfactory to the Company: (i) Executive shall receive a cash payment equal to the sum of (A) 200% of Executive’s annual Base Salary as of the Date of Termination or, if higher, at the rate in effect immediately prior to a Change in Control, and (B) 200% of the Annual Bonus earned by Executive for the fiscal year immediately prior to the year in which the Date of Termination occurs, if any, payable in a lump sum within sixty (60) days following the Date of Termination; and (ii) Executive shall receive a cash payment equal to the total monthly premium payment (both the Company’s portion and Executive’s portion of such premium) under the Company’s group healthcare plan as in effect on the Date of Termination multiplied by twenty-four (24), payable in a lump sum within sixty (60) days following the Date of Termination.  The foregoing shall be in lieu of and not in addition to any amounts that Executive would otherwise be entitled to receive under Section 7 hereof in the event of a termination without Cause or resignation for Good Reason.  
(c)    Equity Awards.  Equity awards granted to Executive may be subject to modified treatment (e.g., accelerated vesting, lapsing of restrictions, etc.) upon the occurrence of a Change in Control, pursuant to the terms and conditions of the Plan. 

9.    Non-exclusivity of Rights.  Nothing in this Agreement shall prevent or limit Executive’s continuing or future participation in any employee benefit plan, program, policy or practice provided by the Company or its affiliated companies and for which Executive may qualify, except as specifically provided herein.  Amounts that are vested benefits or which Executive is otherwise entitled to receive under any plan, policy, practice or program of the Company or any of its affiliated companies at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program except as explicitly modified by this Agreement.

10.    No Mitigation.  In no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of the severance amounts payable to Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not Executive obtains other employment.

11.    Mandatory Reduction of Payments in Certain Events.
(a)    Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by the Company to or for the benefit of Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then, prior to the making of any Payment to Executive, a calculation shall be made comparing (i) the net benefit to Executive of the Payment after payment of the Excise Tax, to (ii) the net benefit to Executive if the Payment had been limited to the extent necessary to avoid being subject to the Excise Tax.  If the amount calculated under (i) above is less than the amount calculated under (ii) above, then the Payment shall be limited to the extent necessary to avoid being subject to the Excise Tax (the “Reduced Amount”).  The reduction of the Payments due hereunder, if applicable, shall be made in such a manner as to maximize the economic present value of all Payments actually made to Executive, determined by the Determination Firm (as defined in Section 11(b) below) as of the date of the Change in Control using the discount rate required by Section 280G(d)(4) of the Code.
(b)    The determination of whether an Excise Tax would be imposed, the amount of such Excise Tax, and the calculation of the amounts referred to Section 12(a)(i) and (ii) above shall be made by an independent, nationally recognized accounting firm or compensation consulting firm mutually acceptable to the Company and Executive (the “Determination Firm”) which shall provide detailed supporting calculations.  Any determination by the Determination Firm shall be binding upon the Company and Executive.  As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Determination Firm hereunder, it is possible that Payments which Executive was entitled to, but did not receive pursuant to Section 11(a), could have been made without the imposition of the Excise Tax (“Underpayment”).  In such event, the Determination Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of Executive, but no later than December 31 of the year after the year in which the Underpayment is determined to exist.
(c)    In the event that the provisions of Code Section 280G and 4999 or any successor provisions are repealed without succession, this Section 11 shall be of no further force or effect.

12.    Restrictions on Conduct of Executive.
(a)    General.  Executive and the Company understand and agree that the purpose of the provisions of this Section 12 is to protect the legitimate business interests of the Company, as more fully described below, and is not intended to impair or infringe upon Executive’s right to work, earn a living, or acquire and possess property from the fruits of his labor.  Executive hereby acknowledges that Executive has received good and valuable consideration for the post-employment restrictions set forth in this Section 12 in the form of the compensation and benefits provided for herein.  Executive hereby further acknowledges that the post-employment restrictions set forth in this Section 12 are reasonable and that they do not, and shall not, unduly impair his ability to earn a living after the termination of this Agreement.
In addition, the parties acknowledge: (A) that Executive’s services under this Agreement require special expertise and talent in the provision of Competitive Services and that Executive shall have substantial contacts with customers, suppliers, advertisers and vendors of the Company; (B) that pursuant to this Agreement, Executive shall be placed in a position of trust and responsibility and he shall have access to a substantial amount of Confidential Information and Trade Secrets and that the Company is placing him in such position and giving him access to such information in reliance upon his agreement to comply with the obligations set forth in this Section 12; (C) that due to his management duties, Executive shall be the repository of a substantial portion of the goodwill of the Company and would have an unfair advantage in competing with the Company; (D) that due to Executive’s special experience and talent, the loss of Executive’s services to the Company under this Agreement cannot reasonably or adequately be compensated solely by damages in an action at law; (E) that Executive is capable of competing with the Company; and (F) that Executive is capable of obtaining gainful, lucrative and desirable employment that does not violate the restrictions contained in this Agreement.
Therefore, subject to the limitations of reasonableness imposed by law, Executive shall be subject to the restrictions set forth in this Section 12.
(b)    Definitions.  The following capitalized terms used in this Section 12 shall have the meanings assigned to them below, which definitions shall apply to both the singular and the plural forms of such terms:
“Competitive Services” means services involving the acquisition, development or commercialization of oral iron pharmaceutical products that are the same as or substantially similar to the oral iron pharmaceutical products offered or provided by the Company or are in competition with the Company’s products.
“Confidential Information” means all data and information relating to the business of the Company that is disclosed to Executive or of which Executive becomes aware as a consequence of his employment and that has value to the Company and is not generally disclosed to those not employed or otherwise engaged by the Company.  “Confidential Information” shall include, but is not limited to, financial plans and data concerning the Company; management planning information; business plans; operational methods; market studies; marketing plans or strategies; product development techniques or plans; customer lists; details of customer contracts; current and anticipated customer requirements; past, current and planned research and development; business acquisition plans; and new personnel acquisition plans.  “Confidential Information” shall not include information that has become generally available to the public by the act of one who has the right to disclose such information without violating any right or privilege of the Company.  This definition shall not limit any definition of “confidential information” or any equivalent term under state or federal law.
“End Date” means the last day of Executive’s employment with the Company for any reason whatsoever.
“Person” means any individual or any corporation, partnership, joint venture, limited liability company, association or other entity or enterprise.
“Principal or Representative” means a principal, owner, partner, shareholder, joint venturer, investor, member, trustee, director, officer, manager, employee, agent, representative or consultant.
“Protected Customers” means any Person to whom the Company sold its products or services or solicited to sell its products or services during the Employment Period and (a) with whom Executive dealt on behalf of the Company; (b) whose dealings with the Company were coordinated or supervised by Executive; or (c) about whom Executive obtained Trade Secrets or Confidential Information in the ordinary course of business as a result of his employment.
“Protected Employees and Contractors” means employees and independent contractors of the Company who were employed or engaged by the Company at any time within six (6) months prior to the End Date.
“Protected Providers” means any service provider, vendor or supplier with whom the Company conducted business or solicited to conduct business during the twelve (12) months prior to the End Date.
“Restricted Period” means the Employment Period and the one (1) year period following the End Date.
“Restricted Territory” means countries where Keryx has the right to market Zerenex, including, but not limited to, North America, European Union, Eastern Europe, Central and Latin America.
“Restrictive Covenants” means the restrictive covenants contained in Section 12(c) hereof.
“Trade Secret” means all information, without regard to form, including, but not limited to, technical or nontechnical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, distribution lists or a list of actual or potential customers, advertisers or suppliers which is not commonly known by or available to the public and which information: (A) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.  This definition shall not limit any definition of “trade secret” or any equivalent term under state or federal law.
(c)    Restrictive Covenants.
(i)    Restriction on Disclosure and Use of Confidential Information and Trade Secrets.  Executive understands and agrees that the Confidential Information and Trade Secrets constitute valuable assets of the Company, and may not be converted to Executive’s own use.  Accordingly, Executive hereby agrees that throughout the Employment Period and at all times after the End Date, for so long as the information at issue remains either Confidential Information or a Trade Secret, Executive shall not, directly or indirectly, reveal, divulge, or disclose to any Person not expressly authorized by the Company any Confidential Information or Trade Secrets and shall not, directly or indirectly, use or make use of any Confidential Information or Trade Secrets in connection with any business activity other than that of the Company.
Anything herein to the contrary notwithstanding, Executive shall not be restricted from disclosing or using Confidential Information or Trade Secrets that are required to be disclosed by law, court order or other valid legal process; provided , however , that in the event disclosure is required by law, Executive shall provide the Company with prompt, written notice of such requirement so that the Company may seek an appropriate protective order prior to any such required disclosure by Executive.
(ii)    Non-Solicitation of Protected Employees and Contractors.  Executive understands and agrees that the relationship between the Company and each of its Protected Employees and Contractors constitutes a valuable asset of the Company and may not be converted to Executive’s own use.  Accordingly, Executive hereby agrees that, during the Restricted Period, Executive shall not, directly or indirectly, on Executive’s own behalf or as a Principal or Representative of any Person or otherwise, solicit or induce any Protected Employee or Contractor to terminate his or her relationship with the Company or to enter into an employment, consulting or similar relationship with any other Person.
(iii)    Non-Solicitation of Protected Customers.  Executive understands and agrees that the relationship between the Company and each of its Protected Customers constitutes a valuable asset of the Company and may not be converted to Executive’s own use.  Accordingly, Executive hereby agrees that, during the Restricted Period, Executive shall not, directly or indirectly, on Executive’s own behalf or as a Principal or Representative of any Person, solicit, divert, take away or attempt to solicit, divert or take away a Protected Customer for the purpose of providing or selling Competitive Services.
(iv)    Non-Interference with Protected Providers.  Executive understands and agrees that the relationship between the Company and each of its Protected Providers constitutes a valuable asset of the Company and may not be converted to Executive’s own use.  Executive hereby agrees that, during the Restricted Period, Executive shall not, directly or indirectly, solicit or induce or attempt to solicit or induce any Protected Provider to cease, reduce or alter its relationship with the Company.
(v)    Non-Competition with the Company.  In consideration of the compensation and benefits being paid and to be paid by the Company to Executive hereunder and the equity awards granted by the Company, Executive hereby agrees that, during the Restricted Period, Executive shall not, directly or indirectly, engage in or provide Competitive Services within the Restricted Territory, whether on his own behalf or as a Principal or Representative of any other Person, in a capacity that involves the exercise of any job duties or responsibilities the same as or similar to the job duties and responsibilities executed by Executive on behalf of the Company; provided , however , that the foregoing shall not be deemed to prohibit the ownership by Executive of not more than five percent (5%) of any class of securities of any corporation having a class of securities registered pursuant to the Exchange Act, which investment does not exceed 3% of Executive’s net worth.
(d)    Enforcement of Restrictive Covenants.
(i)    Rights and Remedies Upon Breach.  In the event Executive breaches, or threatens to commit a breach of, any of the provisions of the Restrictive Covenants, the Company shall have the right and remedy to enjoin, preliminarily and permanently, without the necessity of posting bond, Executive from violating or threatening to violate the Restrictive Covenants and to have the Restrictive Covenants specifically enforced by any court of competent jurisdiction, it being agreed that any breach or threatened breach of the Restrictive Covenants would cause irreparable injury to the Company and that money damages would not provide an adequate remedy to the Company.  Executive further understands and agrees that the Company shall be entitled to require Executive to pay the reasonable costs and attorneys’ fees incurred by the Company in enforcing the terms of the Restrictive Covenants.  The foregoing rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Company at law or in equity.
(ii)    Severability of Covenants.  The parties hereunder agree that the Restrictive Covenants shall be considered and construed as separate and independent covenants.  Should any part or provision of any Restrictive Covenant be held invalid, void or unenforceable in any court of competent jurisdiction, such invalidity, voidness or unenforceability shall not render invalid, void or unenforceable any other part or provision of this Agreement.
(iii)    Reformation.  The parties hereunder agree that it is their intention that the Restrictive Covenants be enforced in accordance with their terms to the maximum extent possible under applicable law.  The parties further agree that, in the event any court of competent jurisdiction shall find that any provision hereof is not enforceable in accordance with its terms, the court shall reform the Restrictive Covenants such that they shall be enforceable to the maximum extent permissible at law.

13.    Invention Assignment.  Executive agrees that he shall promptly and fully disclose in writing to the Company all inventions, designs, concepts, discoveries, developments, improvements, and innovations, whether or not they merit patent, trademark or copyright protection, conceived of, designed or reduced to practice by Executive, either solely or in concert with others, at any time during his employment, which (i) relate in any manner, whether at the time of conception, design or reduction to practice, to the Company’s business or its actual or demonstrably anticipated research or development; (ii) result from any work performed by Executive on behalf of the Company; or (iii) result from the use of the Company’s equipment, supplies, facilities, Confidential Information or Trade Secrets (collectively referred to as “Inventions”).
Executive acknowledges and agrees that he shall keep and maintain adequate written records of all such Inventions at all stages thereof in the form of notes, sketches, drawings, photographs, printouts, and/or reports relating thereto.  These records are and shall remain the property of, and be available to, the Company or its designee(s) at all times.  Executive further acknowledges that all such Inventions shall be the exclusive property of the Company.  As such, Executive hereby assigns his entire right, title, and interest in and to all such Inventions to the Company or its designee(s).  Executive will, at the Company’s request and expense, execute specific transfers, assignments, documents or other instruments and take such further action as may be considered necessary by the Company at any time during or subsequent to Executive’s employment to obtain and defend any intellectual property rights and vest complete title and ownership to such Inventions to the Company or its designee(s).

14.    Return of Materials.  Executive agrees that he shall not retain or destroy, and shall immediately return to the Company on or prior to his last day of employment, or at any other time the Company requests such return, any and all property of the Company that is in his possession or subject to his control, including, but not limited to, keys, credit and identification cards, equipment, client files and information, and all Confidential Information and Trade Secrets.  Executive shall not make, distribute or retain copies of any such information or property.  Executive agrees that he shall reimburse the Company for all of its costs, including reasonable attorneys’ fees, of recovering the above materials and otherwise enforcing compliance with this provision if he does not return the materials in compliance with this provision.

15.    Successors and Assigns.
(a)    This Agreement is personal to Executive and shall not be assignable by Executive.  This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives.
(b)    The Company may assign this Agreement without the consent of Executive.  This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

16.    Cooperation.  Both during and after his employment, Executive shall provide Executive’s reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Executive’s employment hereunder.  The Company shall reimburse Executive for any reasonable out-of-pocket expenses incurred in connection with Executive’s performance of obligations under this Section 16 at the request of the Company.  If Executive is entitled to be paid or reimbursed for any expenses under this Section 16, the amount reimbursable in any one (1) calendar year shall not affect the amount reimbursable in any other calendar year, and the reimbursement of an eligible expense must be made no later than December 31 of the year after the year in which the expense was incurred.  Executive’s obligations under this Section 16.

17.    Code Section 409A.
(a)    General.  This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements Section 409A of the Code and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder (and any applicable transition relief under Section 409A of the Code).  Nevertheless, the tax treatment of the benefits provided under the Agreement is not warranted or guaranteed.  Neither the Company nor its directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by Executive as a result of the application of Section 409A of the Code.
(b)    Definitional Restrictions.  Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable hereunder, or a different form of payment would be effected, by reason of a Change in Control or Executive’s Disability or termination of employment, such amount or benefit shall not be payable or distributable to Executive, and/or such different form of payment shall not be effected, by reason of such circumstance unless (i) the circumstances giving rise to such Change in Control, Disability or termination of employment, as the case may be, meet any description or definition of “change in control event,” “disability” or “separation from service,” as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition), or (ii) the payment or distribution of such amount or benefit would be exempt from the application of Section 409A of the Code by reason of the short-term deferral exemption or otherwise.  This provision does not prohibit the vesting of any amount upon a Change in Control, Disability or termination of employment, however defined.  If this provision prevents the payment or distribution of any amount or benefit, such payment or distribution shall be made on the date, if any, on which an event occurs that constitutes a Section 409A-compliant “change in control event,” “disability” or “separation from service,” as the case may be, or such later date as may be required by subsection (c) below.  If this provision prevents the application of a different form of payment of any amount or benefit, such payment shall be made in the same form as would have applied absent such designated event or circumstance.
(c)    Six-Month Delay in Certain Circumstances.  Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable under this Agreement by reason of Executive’s separation from service during a period in which he is a Specified Employee (as defined below), then, subject to any permissible acceleration of payment by the Company under Treas.  Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes):
(i)    the amount of such non-exempt deferred compensation that would otherwise be payable during the six-month period immediately following Executive’s separation from service shall be accumulated through and paid or provided on the first day of the seventh month following Executive’s separation from service (or, if Executive dies during such period, within 30 days after Executive’s death) (in either case, the “Required Delay Period”); and
(ii)    the normal payment or distribution schedule for any remaining payments or distributions shall resume at the end of the Required Delay Period.
For purposes of this Agreement, the term “Specified Employee” has the meaning given such term in Code Section 409A and the final regulations thereunder: provided, however, that the Company’s Specified Employees and its application of the six-month delay rule of Code Section 409A(a)(2)(B)(i) shall be determined in accordance with rules adopted by the Board or a committee thereof, which shall be applied consistently with respect to all nonqualified deferred compensation arrangements of the Company, including this Agreement.

18.    Miscellaneous.
(a)    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without reference to principles of conflict of laws.
(b)    Captions.  The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.
(c)    Amendments.  This Agreement may not be amended or modified otherwise than-by a written agreement executed by the parties hereto or their respective successors and legal representatives.
(d)    Notices.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party, email, or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:
If to Executive:    Gregory P. Madison
10 Deerfield Drive
Milton, MA 02186

Keryx Biopharmaceuticals, Inc.
750 Lexington Ave.
20th Floor
New York, NY 10022
Attention: CEO
Attention: Chairman of the Board
or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.
(e)    Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.
(f)    Withholding.  The Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.
(g)    Waivers.  Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right Executive or the Company may have hereunder, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.
(h)    Entire Agreement.  This Agreement contains the entire agreement between the Company and Executive with respect to the subject matter hereof and, from and after the Effective Date, this Agreement shall supersede any other agreement between the parties with respect to the subject matter hereof.
(i)    Arbitration.  In the event that a dispute arises between the parties regarding the formation, interpretation and/or the terms and conditions of this Agreement and/or if there arises any other claim or legal dispute between the parties with respect to Executive’s employment or the termination thereof (the “Dispute”), the complaining party shall submit the Dispute in writing to the other party for resolution.  If the Dispute is not resolved between the parties within thirty (30) days of the date the Dispute is submitted in writing to the other party, the complaining party must make a demand for final and binding arbitration in New York, New York before an arbitrator pursuant to the Employment Arbitration Rules of the American Arbitration Association in effect at the time of the Dispute (the “AAA Rules”) if the complaining party wishes to pursue the Dispute (“Demand for Arbitration”).   Provided , however, that the foregoing shall not preclude (x) the Company from immediately seeking injunctive or other equitable relief in a court of competent jurisdiction in connection with Executive’s breach or threatened breach of the Restrictive Covenants or the provisions set forth in Sections 13 or 14 of this Agreement or (y) Executive from immediately seeking in a court of competent jurisdiction injunctive or other equitable relief or specific performance of his right to be paid during the pendency of the Dispute.  The parties expressly understand that by agreeing to this arbitration provision, they are agreeing to waive any rights to a civil action and/or jury trial regarding any Disputes between them.  The parties shall share all costs, filing fees, and administrative fees for the arbitration equally as they come due; the parties shall be responsible for their own attorneys’ fees, witness fees, and travel costs.   Provided , however, that in the event a Dispute arises following a Change in Control, then the Company or the successor corporation to the Company shall pay to Executive, within thirty (30) days after any such fees or expenses are incurred and substantiated to the Company or the successor corporation to the Company, all costs, reasonable attorney’s fees, legal fees, filing fees, administrative fees for the arbitration, and expenses incurred by Executive as a result of or in connection with any Dispute, including all such fees and expenses, if any, incurred in contesting or disputing the termination of Executive’s employment with the Company or the successor corporation to the Company or in seeking to obtain or enforce any right or benefit provided by this Agreement (other than any such fees or expenses incurred in connection with any such claim which is determined by arbitration, in accordance with this section, to be frivolous) or in connection with any tax audit or proceeding to the extent attributable to the application of Section 409A of the Code, to any payment or benefit provided by the Agreement.  The arbitrator shall have the authority to rule on any and all issues properly presented in the Demand for Arbitration and/or pursuant to the AAA Rules and may award any and all relief provided under applicable law.  The arbitrator’s award may be enforced, vacated, modified or corrected as set forth in the Federal Arbitration Act, 9 U.S.C § 1 et seq.  This Agreement shall be governed by the Federal Arbitration Act, 9 U.S.C § 1 et seq., as amended, and the applicable rules of the American Arbitration Association set forth in this Agreement.  This Agreement shall be binding upon, and shall inure to the benefit of Executive, the Company and their respective permitted successors and assigns.
(j)    Timing of Release.  Whenever in this Agreement a payment or benefit is conditioned on Executive’s execution of a release of claims, the Company shall provide such release to Executive promptly following the Date of Termination, and such release must be executed and all revocation periods shall have expired in accordance with terms set forth in the release, but in no case later than sixty (60) days after the Date of Termination; failing which such payment or benefit shall be forfeited.  If such payment or benefit constitutes non-exempt “deferred compensation,” then, subject to Section 17(c) above, such payment or benefit (including any installment payments) that would have otherwise been payable during such 60-day period shall be accumulated and paid on the 60th day after the Date of Termination provided such release shall have been executed and such revocation periods shall have expired.  If such payment or benefit is exempt from Section 409A of the Code, the Company may elect to make or commence payment at any time during such 60-day period.
(k)    Counterparts; Scanned Signatures.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become a binding agreement when one or more counterparts have been signed by each party and delivered to the other party.  A counterpart executed and delivered by PDF or facsimile shall be sufficient for the Agreement to become effective.
[Signature Page Follows]

IN WITNESS WHEREOF, Executive has hereunto set Executive’s hand and, pursuant to the authorization from the Board, the Company has caused these presents to be executed in its name on its behalf, all as of the day and year first above written.
/s/ Gregory P. Madison        
Gregory P.  Madison

KERYX BIOPHARMACEUTICALS, INC.

/s/ Ron Bentsur_              
Ron Bentsur
36406944v.10Wdesk | Exhibit

Exhibit 10.1

MDU RESOURCES GROUP, INC.
LONG-TERM PERFORMANCE-BASED INCENTIVE PLAN

PERFORMANCE SHARE AWARD AGREEMENT

        
February 15, 2018

{Participant Name}

In accordance with the terms of the MDU Resources Group, Inc. Long-Term Performance-Based Incentive Plan (the "Plan"), pursuant to action of the Compensation Committee of the Board of Directors of MDU Resources Group, Inc. (the "Committee"), MDU Resources Group, Inc. (the "Company") hereby grants to you (the "Participant") Performance Shares (the "Award"), subject to the terms and conditions set forth in this Award Agreement (including Annexes A and B hereto and all documents incorporated herein by reference), as set forth below:

	
		
	Target Award:
	{No. of Shares} Performance Shares (the "Target Award")

	Performance Period:
	January 1, 2018 through
December 31, 2020 (the "Performance Period")

	Date of Grant:
	February 15, 2018

	Dividend Equivalents:
	Yes

THESE PERFORMANCE SHARES ARE SUBJECT TO FORFEITURE AS PROVIDED HEREIN.  THIS AWARD AND AMOUNTS RECEIVED IN CONNECTION WITH THIS AWARD ARE ALSO SUBJECT TO FORFEITURE, RECAPTURE OR OTHER ACTION IN THE EVENT OF AN ACCOUNTING RESTATEMENT, AS PROVIDED IN THE PLAN.  

Further terms and conditions of the Award are set forth in Annexes A and B hereto, which are integral parts of this Award Agreement.
  
 You must accept this Award Notice by logging onto your account with Fidelity Investments and accepting this grant agreement. If you fail to do so, the award will be null and void. By accepting this Award, you agree to be bound by all of the provisions set forth in this Award Notice, the Agreement, and the Plan.

Attachments:      
Annex A:  Performance Share Award Agreement
Annex B

ANNEX A

TO

MDU RESOURCES GROUP, INC.
LONG-TERM PERFORMANCE-BASED INCENTIVE PLAN

PERFORMANCE SHARE AWARD AGREEMENT

It is understood and agreed that the Award of Performance Shares evidenced by the Award Agreement to which this is annexed is subject to the following additional terms and conditions.

1.    Nature of Award.  The Target Award represents the opportunity to receive shares of Company common stock, $1.00 par value ("Shares") and Dividend Equivalents on such Shares. The number of Shares that may be earned under this Award shall be determined pursuant to Section 4 hereof.  The amount of Dividend Equivalents that may be earned under this Award shall be determined pursuant to Section 6 hereof.  Except for Dividend Equivalents, which are paid in cash, Awards will be paid in Shares.

2.    Performance Measures

The following performance measures will be used to determine the Payout Percentage.
		
	•
	Fifty percent (50%) of the Award is based on the Company's total shareholder return ("TSR") relative to that of the Peer Group listed on Annex B (the "Percentile Rank") for the Performance Period.  

		
	•
	Twenty-five percent (25%) of the Award is based on the Company’s compound annual growth rate in Earnings from continuing operations before Interest, Taxes, Depreciation, Depletion and Amortization (EBITDA) for the Performance Period.

		
	•
	Twenty-five percent (25%) of the Award is based on the Company’s compound annual growth rate in Earnings (income from continuing operations) for the Performance Period.

		
	(a)
	The achievement of the relative TSR performance measure will be determined in accordance with the following table:

	
		
	Percentile Rank
	Payout Percentage
(% of Target Award)

	[  ]th or [  ]
	[     ]

	[  ]th
	[     ]

	[  ]th
	[     ]

	less than [  ]th
	[     ]

If the Company achieves a Percentile Rank between the [  ]th and [  ]th percentiles, the Payout Percentage shall be equal to [  ]%, plus [  ]% for each Percentile Rank whole percentage above the [  ]th percentile.  If the Company achieves a Percentile Ranking between the [  ]th and [  ]th percentiles, the Payout Percentage shall be equal to [  ]%, plus [   ]% for each Percentile Rank whole percentage above the [  ]th percentile. 

Annex A - 2

If the Company’s TSR for the Performance Period is negative, the number of shares otherwise earned attributable to the payout percentage of the TSR portion of the Award, if any, for the Performance Period will be reduced in accordance with the following table:

	
			
	TSR
	 
	Reduction In Award

	[  ]% through [  ]%
	 
	[  ]%

	[  ]% through [  ]%
	 
	[  ]%

	[  ]% through [  ]%
	 
	[  ]%

	[  ]% through [  ]%
	 
	[  ]%

	 [  ]% through [  ]%
	 
	[  ]%

	[  ]% or [   ]
	 
	[  ]%

The Percentile Rank of a given company's TSR is defined as the percentage of the Peer Group companies' returns falling at or below the given company's TSR.  The formula for calculating the Percentile Rank follows:
	
			
	Percentile Rank = (n - r + 1)/n x 100
	 

	Where:
	 
	 

	n =
	total number of companies in the Peer Group, including the Company

	r =
	the numeric rank of the Company's TSR relative to the Peer Group, where the highest return in the group is ranked number 1

To illustrate, if the Company's TSR is the third highest in the Peer Group comprised of 20 companies, its Percentile Rank would be 90.  The calculation is: 
(20 - 3 + 1)/20 x 100 = 90.

The Percentile Rank shall be rounded to the nearest whole percentage.

If the common stock of a company in the Peer Group ceases to be traded during the Performance Period, the company will be deleted from the Peer Group.  Percentile Rank will be calculated without regard to the return of the deleted company.

If the Company or a company in the Peer Group spins off a segment of its business, the shares of the spun-off entity will be treated as a cash dividend that is reinvested in the Company or the company in the Peer Group.

Total shareholder return is the percentage change in the value of an investment in the common stock of a company from the initial investment made on the last trading day in the calendar year preceding the beginning of the performance period through the last trading day in the final year of the performance period.  It is assumed that dividends are reinvested in additional shares of common stock at the frequency paid.

Annex A - 3

		
	(b)
	The achievement of the  EBITDA growth performance measure will be determined in accordance with the following table: 

	
		
	EBITDA Compound Annual Growth Rate
	Payout Percentage
 (% of  Target Award)

	Less than [  ]%
	[  ]%

	[  ]%
	[  ]%

	[  ]%
	[  ]%

	[  ]%
	[  ]%

Payout percentages for results achieved between the stated performance levels will be determined by linear interpolation.

For purposes of calculating EBITDA, Earnings will be Income from continuing operations at the beginning and end of the performance period.  Interest, taxes and depreciation, depletion, and amortization expenses used in the calculation of EBITDA will also be from continuing operations at the beginning and end of the performance period.  Earnings used to determine EBITDA will be adjusted to remove:
		
	•
	[     ]

		
	•
	[     ] 

		
	•
	[     ] 

For calculation of the 2018-2020 performance period, the beginning performance period EBITDA used in the denominator (base year) will be the 2017 EBITDA of $[   ] million [   ].  

The EBITDA compound annual growth rate (EBITDA CAGR) for the performance period will be determined by the following formula:

EBITDA CAGR   =   (EV / BV)1 / n - 1

Where:
EV = EBITDA at the end of the performance period (12/31/2020)
BV = EBITDA at the beginning of the performance period (12/31/2017)
N = number of years in the performance period (i.e. 3)

To illustrate, if the Company’s EBITDA at the end of 2017 was $600 million and the Company’s EBITDA at the end of 2020 was $700 million, the compound annual growth rate at the end of the 3 year period would be 5.3%.  The calculation is:

5.3%   =   (700 / 600)1 / 3 - 1

Annex A - 4

		
	(c)
	The achievement of the Earnings growth performance measure will be determined in accordance with the following table:

	
		
	Earnings Compound Annual Growth Rate
	Payout Percentage
 (% of Target Award)

	Less than [  ]%
	[  ]%

	[  ]%
	[  ]%

	[  ]%
	[  ]%

	[  ]%
	[  ]%

Payout percentages for results achieved between the stated performance levels will be determined by linear interpolation.

For purposes of calculating Earnings growth, Earnings will be Income from continuing operations at the beginning and end of the performance period.  Earnings will be adjusted to remove:
		
	•
	[    ]

		
	•
	[    ] 

		
	•
	[    ]

For calculation of the 2018-2020 performance period, the beginning performance period Earnings used in the denominator (base year) will be the 2017 earnings from continuing operations of $[   ] million [   ].  

The Earnings compound annual growth rate (Earnings CAGR) for the performance period will be determined by the following formula:

Earnings CAGR   =   (EV / BV)1 / n - 1

Where:
EV = Earnings at the end of the performance period (12/31/2020)
BV = Earnings at the beginning of the performance period (12/31/2017)
N = number of years in the performance period (i.e. 3)

To illustrate, if the Company’s Earnings at the end of 2017 was $250 million and the Company’s Earnings at the end of 2020 was $300 million, the compound annual growth rate at the end of the 3 year period would be 6.3%.  The calculation is:

6.3%   =   (300 / 250)1 / 3 - 1

3.    Total Percentage Payout
The Total Percentage Payout is the sum of  the payout percentages for each of the performance measures multiplied by the weighting percentage for such performance measure.

i.e.

Total Percentage Payout = (50% x relative TSR payout) + (25% x EBITDA growth payout) + 
(25% x Earnings growth payout)

Annex A - 5

4.    Determination of Number of Shares Earned. The number of Shares earned, if any, for the Performance Period shall be determined in accordance with the following formula:

# of Shares = Total Payout Percentage x Target Award

All Performance Shares that are not earned for the Performance Period shall be forfeited.

5.    Issuance of Shares and Mandatory Holding Period.  Subject to any restrictions on distributions of Shares under the Plan, and subject to Section 6 of this Annex A, the Shares earned under the Award, if any, shall be issued to the Participant as soon as practicable (but no later than the next March 10) following the close of the Performance Period.  The Participant shall retain 50% of the net after-tax Shares that are earned under this Award until the earlier of (i) the end of the two-year period commencing on the date any Shares earned under this Award are issued and (ii) the Participant’s termination of employment.  Executives are required to own Shares at designated multiples of their base salary. If a Participant has not achieved an applicable stock ownership requirement, the Company may require the  Participant to hold Shares received under this award until the requirement is met.  
6.    Dividend Equivalents.  Dividend Equivalents shall be earned with respect to any Shares issued to the Participant pursuant to this Award.  The amount of Dividend Equivalents earned shall be equal to the total dividends declared on a Share between the Date of Grant of this Award and the last day of the Performance Period, multiplied by the number of Shares issued to the Participant pursuant to the Award Agreement.  Any Dividend Equivalents earned shall be paid in cash to the Participant when the Shares to which they relate are issued or as soon as practicable thereafter, but no later than the next March 10 following the close of the Performance Period.  If the Award is forfeited or if no Shares are issued, no Dividend Equivalents shall be paid.

7.    Termination of Employment.

(a)    If the Participant's employment with the Company is terminated during the Performance Period (i) for "Cause" (as defined below) at any time or (ii) for any reason other than "Cause" before the Participant, as of the effective date of termination, has reached age 55 and completed 10 "Years of Service" (as defined below), all Performance Shares (and related Dividend Equivalents) shall be forfeited.

(b)    If the Participant's employment with the Company is terminated for any reason other than "Cause" after the Participant, as of the effective date of termination, has reached age 55 and completed 10 "Years of Service" (i) during the first year of the Performance Period, all Performance Shares (and related Dividend Equivalents) shall be forfeited; (ii) during the second year of the Performance Period, determination of the Company's Percentile Rank for the Performance Period will be made by the Committee at the end of the Performance Period, and Shares (and related Dividend Equivalents) earned, if any, will be paid based on the Payout Percentage, prorated for the number of full months elapsed from and including the month in which the Performance Period began to and including the month in which the termination of employment occurs; and (iii) during the third year of the Performance Period, determination of the Company's Percentile Rank for the Performance Period will be made by the Committee at the end of the Performance Period, and Shares (and related Dividend Equivalents) earned, if any, will be paid based on the Payout Percentage without prorating.

Annex A - 6

(c)    For purposes of the Award Agreement, the term "Cause" shall mean the Participant's fraud or dishonesty that has resulted or is likely to result in material economic damage to the Company or a Subsidiary, or the Participant's willful nonfeasance if such nonfeasance is not cured within ten days of written notice from the Company or a Subsidiary, as determined in good faith by a vote of at least two-thirds of the non-employee directors of the Company at a meeting of the Board at which the Participant is provided an opportunity to be heard.  For purposes of the Award Agreement, the term "Years of Service" shall mean the years a Participant is employed by the Company and/or a Subsidiary.

8.    Tax Withholding.  Pursuant to Article 16 of the Plan, the Committee shall have the power and the right to deduct or withhold, or require the Participant to remit to the Company, an amount sufficient to satisfy any Federal, state and local taxes (including the Participant's FICA obligations) required by law to be withheld with respect to the Award.  The Committee may condition the delivery of Shares upon the Participant's satisfaction of such withholding obligations.  The Participant may elect to satisfy all or part of such withholding requirement by tendering previously-owned Shares or by having the Company withhold Shares having a Fair Market Value equal to the minimum statutory withholding that could be imposed on the transaction (based on minimum statutory withholding rates for Federal, state and local tax purposes, as applicable, including payroll taxes, that are applicable to such supplemental taxable income).  Such election shall be irrevocable, made in writing, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

9.    Ratification of Actions.  By accepting the Award or other benefit under the Plan, the Participant and each person claiming under or through him or her shall be conclusively deemed to have indicated the Participant's acceptance and ratification of, and consent to, any action taken under the Plan or the Award by the Company, its Board of Directors, or the Committee.

10.    Notices.  Any notice hereunder to the Company shall be addressed to its office, 1200 West Century Avenue, P.O. Box 5650, Bismarck, North Dakota 58506; Attention: Corporate Secretary, and any notice hereunder to the Participant shall be addressed to him or her at the address specified on the Award Agreement, subject to the right of either party to designate at any time hereafter in writing some other address.

11.    Definitions.  Capitalized terms not otherwise defined herein or in the Award Agreement shall have the meanings given them in the Plan.

12.    Governing Law and Severability.  To the extent not preempted by Federal law, the Award Agreement will be governed by and construed in accordance with the laws of the State of Delaware, without regard to conflicts of law provisions.  In the event any provision of the Award Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Award Agreement, and the Award Agreement shall be construed and enforced as if the illegal or invalid provision had not been included.

13.    No Rights to Continued Employment.  The Award Agreement is not a contract of employment.  Nothing in the Plan or in the Award Agreement shall interfere with or limit in any way the right of the Company or any Subsidiary to terminate the Participant's employment at any time, for any reason or no reason, or confer upon the Participant the right to continue in the employ of the Company or a Subsidiary.

Annex A - 7

ANNEX B

TO

MDU RESOURCES GROUP, INC.
LONG-TERM PERFORMANCE-BASED INCENTIVE PLAN

PERFORMANCE SHARE AWARD AGREEMENT

PEER GROUP COMPANIES

ALLETE, Inc.
Alliant Energy Corporation
Atmos Energy Corporation
Black Hills Corporation
EMCOR Group, Inc.
Granite Construction Incorporated
IDACORP, Inc.
Martin Marietta Materials, Inc.
MasTec, Inc.
MYR Group Inc.
Northwest Natural Gas Company
NorthWestern Corporation
Otter Tail Corporation
Portland General Electric Company
Southwest Gas Holdings, Inc.
Spire Inc.
Summit Materials Inc.
U.S. Concrete, Inc.
Vectren Corporation
Vulcan Materials Company

Annex B - 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}]]