Document:

THIS
WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY.

     

    WARRANT
TO PURCHASE STOCK

     

    
      
        
          	
                  Corporation:

                	 
      	
                  DOCUMENT
      CAPTURE TECHNOLOGIES, INC.

                
	
                  Number
      of Shares:

                	 
      	
                  68,027

                
	
                  Class
      of Stock:

                	 
      	
                  Common

                
	
                  Initial
      Exercise Price:

                	 
      	
                  $0.588

                
	
                  Issue
      Date:

                	 
      	
                  September
      2, 2009

                
	
                  Expiration
      Date:

                	
                    

                	
                  September
      2, 2016

                

        

      

    

    

     

    This
Warrant Certifies That, for good and valuable consideration, the receipt
of which is hereby acknowledged, Bridge Bank
N.A. or its assignee (“Holder”)
is entitled to purchase the number of fully paid and nonassessable shares of the
class of securities (the “Shares”)
of the corporation (the “Company”)
at the initial exercise price per Share (the “Warrant
Price”) all as set forth above and as adjusted pursuant to Article 2 of
this warrant, subject to the provisions and upon the terms and conditions set
forth in this warrant.

     

    ARTICLE
1

     

    EXERCISE

     

    1.1           Method of
Exercise.  Holder may exercise this warrant by delivering this
warrant and a duly executed Notice of Exercise in substantially the form
attached as Appendix 1 to the principal office of the Company.  Unless
Holder is exercising the conversion right set forth in Section 1.2, Holder shall
also deliver to the Company a check for the aggregate Warrant Price for the
Shares being purchased.

     

    1.2           Conversion
Right.  In lieu of exercising this warrant as specified in
Section 1.1, provided there is not an effective registration statement covering
the resale of the Shares, Holder may from time to time convert this warrant, in
whole or in part, into a number of Shares determined by dividing (a) the
aggregate fair market value of the Shares or other securities otherwise issuable
upon exercise of this warrant minus the aggregate Warrant Price of such Shares
by (b) the fair market value of one Share.  The fair market value of
the Shares shall be determined pursuant to Section 1.3.

    
      
         

      

      
        1.

        
          

        

      

      
         

      

    

    1.3           Fair Market
Value.  If the Shares are traded regularly in a public market,
the fair market value of the Shares shall be the closing price of the Shares (or
the closing price of the Company’s stock into which the Shares are convertible)
reported for the business day immediately before Holder delivers its Notice of
Exercise to the Company.  If the Shares are not regularly traded in a
public market, the Board of Directors of the Company shall determine fair market
value in its reasonable good faith judgment.  The foregoing
notwithstanding, if Holder advises the Board of Directors in writing that Holder
disagrees with such determination, then the Company and Holder shall promptly
agree upon a reputable investment banking firm to undertake such
valuation.  If the valuation of such investment banking firm is
greater than that determined by the Board of Directors, then all fees and
expenses of such investment banking firm shall be paid by the
Company.  In all other circumstances, such fees and expenses shall be
paid by Holder.

     

    1.4           Delivery of Certificate and New
Warrant.  Promptly after Holder exercises or converts this
Warrant, the Company shall deliver to Holder certificates for the Shares
acquired and, if this Warrant has not been fully exercised or converted and has
not expired, a new warrant representing the Shares not so acquired.

     

    1.5           Replacement of
Warrants.  On receipt of evidence reasonably satisfactory to
the Company of the loss, theft, destruction or mutilation of this Warrant and,
in the case of loss, theft or destruction, on delivery of an indemnity agreement
reasonably satisfactory in form and amount to the Company or, in the case of
mutilation, on surrender and cancellation of this Warrant, the Company at its
expense shall execute and deliver, in lieu of this Warrant, a new warrant of
like tenor.

     

    ARTICLE
2

     

    ADJUSTMENTS
TO THE SHARES

     

    2.1           Stock Dividends, Splits,
Etc.  If the Company declares or pays a dividend on its common
stock payable in common stock, or other securities, or subdivides the
outstanding common stock into a greater amount of common stock, then upon
exercise of this Warrant, for each Share acquired, Holder shall receive, without
cost to Holder, the total number and kind of securities to which Holder would
have been entitled had Holder owned the Shares of record as of the date the
dividend or subdivision occurred.

     

    2.2           Reclassification, Exchange or
Substitution.  Upon any reclassification, exchange,
substitution, or other event that results in a change of the number and/or class
of the securities issuable upon exercise or conversion of this Warrant, Holder
shall be entitled to receive, upon exercise or conversion of this Warrant, the
number and kind of securities and property that Holder would have received for
the Shares if this Warrant had been exercised immediately before such
reclassification, exchange, substitution, or other event.  Such an
event shall include any automatic conversion of the outstanding or issuable
securities of the Company of the same class or series as the Shares to common
stock pursuant to the terms of the Company’s Certificate of Incorporation upon
the closing of a registered public offering of the Company’s common
stock.  The Company or its successor shall promptly issue to Holder a
new warrant for such new securities or other property.  The new
warrant shall provide for adjustments which shall be as nearly equivalent as may
be practicable to the adjustments provided for in this Article 2 including,
without limitation, adjustments to the Warrant Price and to the number of
securities or property issuable upon exercise of the new warrant.  The
provisions of this Section 2.2 shall similarly apply to successive
reclassifications, exchanges, substitutions, or other events.

    
      
         

      

      
        2.

        
          

        

      

      
         

      

    

    2.3           Adjustments for Mergers,
Combinations, Etc.  If the outstanding Shares are combined or
consolidated, by reclassification or otherwise, into a lesser number of shares,
the Warrant Price shall be proportionately increased.  If the
outstanding Shares are combined or consolidated, by reclassification or
otherwise, into a greater number of shares, the Warrant Price shall be
proportionately decreased. Upon the closing of any acquisition of all or
substantially all of Holder’s assets or capital stock, the successor entity
shall assume the obligations of this Warrant, and this Warrant shall be
exercisable for the same securities, cash, and property as would be payable for
the Shares issuable upon exercise of the unexercised portion of this Warrant as
if such Shares were outstanding on the record date for the acquisition and
subsequent closing.  The Warrant Price shall be adjusted
accordingly.

     

    2.4           Adjustments for Diluting
Issuances.  The Exercise Price and the number of Shares
issuable upon exercise of this Warrant or, if Shares are Preferred Stock, the
number of shares of common stock issuable upon conversion of Shares, shall be
subject to adjustment, from time to time in the manner set forth on
Exhibit A in the event of Diluting Issuances (as defined on
Exhibit A).

     

    2.5           No Impairment.  The
Company shall not, by amendment of its Certificate of Incorporation or through a
reorganization, transfer of assets, consolidation, merger, dissolution, issue,
or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed under
this Warrant by the Company, but shall at all times in good faith assist in
carrying out all the provisions of this Article 2 and in taking all such action
as may be necessary or appropriate to protect Holder’s rights under this Article
against impairment.

     

    2.6           Certificate as to
Adjustments.  Upon each adjustment of the Warrant Price, the
Company at its expense shall promptly compute such adjustment, and furnish
Holder with a certificate of its Chief Financial Officer setting forth such
adjustment and the facts upon which such adjustment is based.  The
Company shall, upon written request, furnish Holder a certificate setting forth
the Warrant Price in effect upon the date thereof and the series of adjustments
leading to such Warrant Price.

     

    2.7           Fractional
Shares.  No fractional Shares shall be issuable upon exercise
or conversion of the Warrant and the Number of Shares to be issued shall be
rounded down to the nearest whole Share.  If a fractional share
interest arises upon any exercise or conversion of the Warrant, the Company
shall eliminate such fractional share interest by paying Holder amount computed
by multiplying the fractional interest by the fair market value of a full
Share.

    
      
         

      

      
        3.

        
          

        

      

      
         

      

    

     

    ARTICLE
3

     

    REPRESENTATIONS
AND COVENANTS OF THE COMPANY

     

    3.1          Representations and
Warranties.  The Company hereby represents and warrants to the
Holder as follows:

     

    (a)           The
initial Warrant Price referenced on the first page of this Warrant is not
greater than the fair market value of the Shares as of the date of this
Warrant.

     

    (b)           All
Shares which may be issued upon the exercise of the purchase right represented
by this Warrant, and all securities, if any, issuable upon conversion of the
Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and
nonassessable, and free of any liens and encumbrances except for restrictions on
transfer provided for herein or under applicable federal and state securities
laws.

     

    (c)           The
Company’s capitalization table attached to this Warrant is true and complete as
of the Issue Date.

     

    3.2          Notice of Certain
Events.  If the Company proposes at any time (a) to declare any
dividend or distribution upon its common stock, whether in cash, property,
stock, or other securities and whether or not a regular cash dividend; (b) to
offer for subscription pro rata to the holders of any class or series of its
stock any additional shares of stock of any class or series or other rights; (c)
to effect any reclassification or recapitalization of common stock; or (d) to
merge or consolidate with or into any other corporation, or sell, lease,
license, or convey all or substantially all of its assets, or to liquidate,
dissolve or wind up, then, in connection with each such event, the Company shall
give Holder (1) at least 20 days prior written notice of the date on which a
record will be taken for such dividend, distribution, or subscription rights
(and specifying the date on which the holders of common stock will be entitled
thereto) or for determining rights to vote, if any, in respect of the matters
referred to in (a) and (b) above; and (2) in the case of the matters referred to
in (c) and (d) above at least 20 days prior written notice of the date when the
same will take place (and specifying the date on which the holders of common
stock will be entitled to exchange their common stock for securities or other
property deliverable upon the occurrence of such event).

     

    3.3          Information
Rights.  So long as the Holder holds this Warrant and/or any of
the Shares, the Company shall deliver to the Holder (a) promptly after mailing,
copies of all communiques to the shareholders of the Company, (b) within ninety
(90) days after the end of each fiscal year of the Company, the annual audited
financial statements of the Company certified by independent public accountants
of recognized standing and (c) within forty-five (45) days after the end of each
of the first three quarters of each fiscal year, the Company’s quarterly,
unaudited financial statements.

     

    3.4          Registration
Rights.  Company agrees that Shares or, if Shares are
convertible into common stock of Company, such common stock, shall have the
registration rights set forth on Exhibit B.

    
      
         

      

      
        4.

        
          

        

      

      
         

      

    

     

    ARTICLE
4

     

    MISCELLANEOUS

     

    4.1           Term: Exercise Upon
Expiration.  This Warrant is exercisable in whole or in part,
at any time and from time to time on or before the Expiration Date set forth
above.  If this Warrant has not been exercised prior to the Expiration
Date, provided there is not an effective registration statement covering the
resale of the Shares, this Warrant shall be deemed to have been automatically
exercised on the Expiration Date by “cashless” conversion pursuant to Section
1.2.

     

    4.2           Legends.  This
Warrant and the Shares (and the securities issuable, directly or indirectly,
upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

     

    “THESE
SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.”

     

    4.3           Compliance with Securities Laws on
Transfer.  This Warrant and the Shares issuable upon exercise
of this Warrant (and the securities issuable, directly or indirectly, upon
conversion of the Shares, if any) may not be transferred or assigned in whole or
in part without compliance with applicable federal and state securities laws by
the transferor and the transferee.

     

    4.4           Transfer
Procedure.  Subject to the provisions of Section 4.3, Holder
may transfer all or part of this Warrant or the Shares issuable upon exercise of
this Warrant (or the securities issuable, directly or indirectly, upon
conversion of the Shares, if any) by giving the Company notice of the portion of
the warrant being transferred setting forth the name, address and taxpayer
identification number of the transferee and surrendering this Warrant to the
Company for reissuance to the transferee(s) (and Holder, if
applicable).

     

    4.5           Notices.  All
notices and other communications from the Company to the Holder, or vice versa,
shall be deemed delivered and effective when given personally or mailed by
first-class registered or certified mail, postage prepaid, at such address as
may have been furnished to the Company or the Holder, as the case may be, in
writing by the Company or such Holder from time to
time.  All notices to the Holder shall be addressed as
follows:

     

    
      
        
        

      

      
        5.

        
          

        

      

      
        
        

      

    

     

                                    Bridge
Bank N.A.

                                   
55 Almaden Blvd. 

                                   
San Jose, CA 95113

                                   
Attn: Karla Conzelman

     

    4.6           Amendments.  This
Warrant and any term hereof may be changed, waived, discharged or terminated
only by an instrument in writing signed by the party against which enforcement
of such change, waiver, discharge or termination is sought.

     

    4.7           Attorneys’ Fees.  In
the event of any dispute between the parties concerning the terms and provisions
of this Warrant, the party prevailing in such dispute shall be entitled to
collect from the other party all costs incurred in such dispute, including
reasonable attorneys’ fees.

     

    4.8           Governing Law.  This
Warrant shall be governed by and construed in accordance with the laws of the
State of California, without giving effect to its principles regarding conflicts
of law.

     

    
      
        
          
            	
                    DOCUMENT
      CAPTURE TECHNOLOGIES, INC.

                  
	 
      
	
                    By:

                  	
                      

                  
	 
      
	
                    Name:

                  	
                      

                  
	 
      
	
                    Title:

                  	
                      

                  

          

        

      

    

    
      
         

      

      
        6.

        
          

        

      

      
         

      

    

    Appendix
1

     

    NOTICE
OF EXERCISE

     

    1.           The
undersigned hereby elects to purchase ______________ shares of the
______________ stock of DOCUMENT CAPTURE TECHNOLOGIES,
INC. pursuant to the terms of the attached warrant, and tenders herewith
payment of the purchase price of such shares in full.

     

    2.           The
undersigned hereby elects to convert the attached warrant into shares in the
manner specified in the warrant.  This conversion is exercised with
respect to ______________ of the shares covered by the warrant.

     

    [Strike
paragraph that does not apply.]

     

    3.           Please
issue a certificate or certificates representing said shares in the name of the
undersigned or in such other name as is specified below:

     

    Bridge
Bank N.A.

     

    4.           The
undersigned represents it is acquiring the shares solely for its own account and
not as a nominee for any other party and not with a view toward the resale or
distribution thereof except in compliance with applicable securities
laws.

     

    
      
        	
                Bridge
      Bank N.A. or Registered Assignee

              
	 
      
	
                  

              
	
                (Signature)

              
	 
      
	
                  

              
	
                (Date)

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    Anti-Dilution
Provisions

     

    In the
event of the issuance (a "Diluting Issuance") by Company, at any time during the
twelve month period following the Issue Date of the Warrant, of Common Stock (or
options or other rights to subscribe thereto or securities convertible into or
exchangeable for Common Stock) at a price per share less than the Exercise Price
at the date of such issuance, then the number of Shares issuable upon exercise
of the Warrant and the Exercise Price, shall be adjusted as a result of Diluting
Issuances in accordance with the following (provided that under
no circumstances shall the aggregate Exercise Price payable by Holder upon
exercise of the Warrant increase as a result of any adjustment arising from a
Diluting Issuance):

     

    1.           Definitions.  As
used in these Antidilution Provisions, the following terms have the following
respective meanings:

     

    (a)           "Option"
means any right, option, or warrant to subscribe for, purchase, or otherwise
acquire common stock or Convertible Securities.

     

    (b)           "Convertible
Securities" means any evidences of indebtedness, shares of stock, or other
securities directly or indirectly convertible into or exchangeable for common
stock.

     

    (c)           "Issue",
means to grant, issue, sell, assume, or fix a record date for determining
persons entitled to receive, any security (including Options), whichever of the
foregoing is the first to occur.  Any variation of the term "Issue"
including, without limitation, "Issuable", "Issuance" or "Issued" shall have the
same meaning as set forth in this section 1(c).

     

    (d)           "Additional
Common Shares" means all common stock (including reissued shares) issued (or
deemed to be issued pursuant to Section 2) after the date of the
Warrant.  Additional Common Shares does not include, however, any
common stock issued in a transaction described in Sections 2.1 and 2.2 of
the Warrant; any common stock Issued upon conversion of preferred stock
outstanding on the date of the Warrant; any common stock issued upon conversion
or exercise of any warrants, options or other securities convertible into common
stock which are outstanding on the date of the Warrant; the Shares; or any
Option or common stock Issued as incentive or in a nonfinancing transaction to
employees, officers, directors, or consultants to Company.

     

    (e)           The
shares of common stock ultimately Issuable upon exercise of an Option (including
the shares of common stock ultimately Issuable upon conversion or exercise of a
Convertible Security Issuable pursuant to an Option) are deemed to be Issued
when the Option is Issued.  The shares of common stock ultimately
Issuable upon conversion or exercise of a Convertible Security (other than a
Convertible Security Issued pursuant to an Option) shall be deemed Issued upon
Issuance of the Convertible Security.

    
      
         

      

      
        1.

        
          

        

      

      
         

      

    

    2.           Deemed Issuance of
Additional Common Shares.  The shares of common stock
ultimately Issuable upon exercise of an Option (including the shares of common
stock ultimately Issuable upon conversion or exercise of a Convertible Security
Issuable pursuant to an Option) are deemed to be Issued when the Option is
Issued.  The shares of common stock ultimately Issuable upon
conversion or exercise of a Convertible Security (other than a Convertible
Security Issued pursuant to an Option) shall be deemed Issued upon Issuance of
the Convertible Security.  The maximum amount of common stock Issuable
is determined without regard to any future adjustments permitted under the
instrument creating the Options or Convertible Securities.

     

    3.           Adjustment of Exercise Price
for Diluting Issuances

     

    3.1                  Weighted Average
Adjustment.  If Company issues Additional Common Shares during
the period that is twelve months after the date of the Warrant and the
consideration per Additional Common Share (determined pursuant to
Section 9) is less than the Exercise Price in effect immediately before
such Issue, the Exercise Price shall be reduced, concurrently with such Issue,
to a price (calculated to the nearest hundredth of a cent) determined by
multiplying the Exercise Price by a fraction:

     

    (a)           the
numerator of which is the amount of such common stock outstanding immediately
before such Issue plus the amount of common stock that the aggregate
consideration received by Company for the Additional Common Shares would
purchase at the Exercise Price in effect immediately before such Issue,
and

     

    (b)           the
denominator of which is the amount of common stock outstanding immediately
before such Issue plus the number of such Additional Common Shares.

     

    3.2                  Adjustment of Number of
Shares.  Upon each adjustment of the Exercise Price, the number
of Shares issuable upon exercise of the Warrant shall be increased to equal the
quotient obtained by dividing (a) the product resulting from multiplying (i) the
number of Shares issuable upon exercise of the Warrant and (ii) the Exercise
Price, in each case as in effect immediately before such adjustment, by (b) the
adjusted Exercise Price.

     

    3.3                  Securities Deemed
Outstanding.  For the purpose of this Section 3, all
securities issuable upon exercise of any outstanding Convertible Securities or
Options, warrants, or other rights to acquire securities of Company shall be
deemed to be outstanding.

     

    4.           No Adjustment for Issuances
Following Deemed Issuances.  No adjustment to the Exercise
Price shall be made upon the exercise of Options or conversion of Convertible
Securities.

     

    5.           Adjustment Following Changes
in Terms of Options or Convertible Securities.  If during the
twelve month period following the date of the Warrant the consideration payable
to, or the amount of common stock Issuable by, Company increases or decreases,
respectively, pursuant to the terms of any outstanding Options or Convertible
Securities, the Exercise Price shall be recomputed to reflect such increase or
decrease.  The recomputation shall be made as of the time of the
Issuance of the Options or Convertible Securities.  Any changes in the
Exercise Price that occurred after such Issuance because other Additional Common
Shares were Issued or deemed Issued shall also be recomputed.

    
      
         

      

      
        2.

        
          

        

      

      
         

      

    

    6.           Recomputation Upon
Expiration of Options or Convertible Securities.  The Exercise
Price computed upon the original Issue of any Options or Convertible Securities,
and any subsequent adjustments based thereon, shall be recomputed when any
Options or rights of conversion under Convertible Securities expire without
having been exercised.  In the case of Convertible Securities or
Options for common stock, the Exercise Price shall be recomputed as if the only
Additional Common Shares Issued were the shares of common stock actually Issued
upon the exercise of such securities, if any, and as if the only consideration
received therefor was the consideration actually received upon the Issue,
exercise or conversion of the Options or Convertible Securities.  In
the case of Options for Convertible Securities, the Exercise Price shall be
recomputed as if the only Convertible Securities Issued were the Convertible
Securities actually Issued upon the exercise thereof, if any, and as if the only
consideration received therefor was the consideration actually received by
Company (determined pursuant to Section 9), if any, upon the Issue of the
Options for the Convertible Securities.

     

    7.           Limit on
Readjustments.  No readjustment of the Exercise Price pursuant
to Sections 5 or 6 shall increase the Exercise Price more than the amount
of any decrease made in respect of the Issue of any corresponding Options or
Convertible Securities.

     

    8.           30 Day
Options.  In the case of any Options that expire by their terms
not more than 30 days after the date of Issue thereof, no adjustment of the
Exercise Price shall be made until the expiration or exercise of all such
Options, except as otherwise set forth herein.

     

    9.           Computation of
Consideration.  The consideration received by Company for the
Issue of any Additional Common Shares shall be computed as follows:

     

    (a)           Cash  shall
be valued at the amount of cash received by Company, excluding amounts paid or
payable for accrued interest or accrued dividends.

     

    (b)           Property.  Property
other than cash shall be computed at the fair market value thereof at the time
of the Issue as determined in good faith by the Board of Directors of
Company.

     

    (c)           Mixed
Consideration.  The consideration for Additional Common Shares
Issued together with other property of Company for consideration that covers
both shall be determined in good faith by the Board of Directors of
Company.

     

    (d)           Options and Convertible
Securities.  The consideration per Additional Common Share for
Options and Convertible Securities shall be determined by dividing:

     

    (i) the
total amount, if any, received or receivable by Company for the Issue of the
Options or Convertible Securities, plus the minimum amount of additional
consideration (as set forth in the instruments relating thereto, without regard
to any provision contained therein for a subsequent adjustment of such
consideration) payable to Company upon exercise of the Options or conversion of
the Convertible Securities, by

     

    (ii) the
maximum amount of common stock (as set forth in the instruments relating
thereto, without regard to any provision contained therein for a subsequent
adjustment of such number) ultimately Issuable upon the exercise of such Options
or the conversion of such Convertible Securities.

     

    
      
         

      

      
        3.

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    REGISTRATION
RIGHTS AGREEMENT

     

    This
REGISTRATION RIGHTS AGREEMENT, dated as of September 2, 2009, is between Bridge
Bank, National Association ("Lender") and the Company whose name appears on the
last page of this Agreement.

     

    RECITALS

     

    A.           Concurrently
with the execution of this Agreement, Lender is purchasing from Company a
Warrant to Purchase Stock (the "Warrant") pursuant to which Lender has the right
to acquire from Company the Shares (as defined in the Warrant).

     

    B.           By
this Agreement, Lender and Company desire to set forth the registration rights
of the Shares all as provided herein.

     

    NOW,
THEREFORE, in consideration of the mutual promises, covenants and conditions
hereinafter set forth, the parties hereto agree as follows:

     

    1.           Registration
Rights.

     

    1.1         
Definitions.  For
purposes of this Section 1:

     

    (a)           The
term "register," "registered," and "registration" refer to a registration
effected by preparing and filing a registration statement or similar document in
compliance with the Securities Act of 1933, as amended (the "Securities Act"),
and the declaration or ordering of effectiveness of such registration statement
or document;

     

    (b)           The
term "Registrable Securities" means (i) the Shares (if Common Stock) or all
shares of Common Stock of Company issuable or issued upon conversion of the
Shares and (ii) any Common Stock of Company issued as (or issuable upon the
conversion or exercise of any warrant, right or other security which is issued
as) a dividend or other distribution with respect to, or in exchange for or in
replacement of, any stock referred to in (i).

     

    (c)           The
terms "Holder" or "Holders" means Lender or qualifying transferees under
subsection 1.8 hereof who hold Registrable Securities.

     

    (d)           The
term "SEC" means the Securities and Exchange Commission.

     

    1.2          Company
Registration.

     

    (a)           Registration.  If
at any time or from time to time, Company shall determine to register any of its
securities, for its own account or the account of any of its shareholders, other
than a registration on Form S-1 or S-8 relating solely to employee
stock option or purchase plans, or a registration on Form S-4 relating
solely to an SEC Rule 145 transaction, or a registration on any other form
(other than Form S-1, S-2, S-3 or S-18, or their successor forms) or any
successor to such forms, which does not include substantially the same
information as would be required to be included in a registration statement
covering the sale of Registrable Securities, Company
will:
 

    
      
         

      

      
        1.

        
          

        

      

      
         

      

    

    

     

     (i)           promptly
give to each Holder written notice thereof (which shall include a list of the
jurisdictions in which the Company intends to attempt to qualify such securities
under the applicable blue sky or other state securities laws); and

     

    (ii)           include
in such registration (and compliance), and in any underwriting involved therein,
all Registrable Securities specified in a written request or requests, made
within 30 days after receipt of such written notice from Company, by any Holder
or Holders, except as set forth in subsection 1.2(b) below.

     

    (b)           Underwriting.  If
the registration of which Company gives notice is for a registered public
offering involving an underwriting, Company shall so advise Holders as a part of
the written notice given pursuant to subsection 1.2(a)(i).  In such
event the right of any Holder to registration pursuant to this
subsection 1.2 shall be conditioned upon such Holder's participation in
such underwriting and the inclusion of such Holder's Registrable Securities in
the underwriting to the extent provided herein.  All Holders proposing
to distribute their securities through such underwriting shall (together with
Company and the other shareholders distributing their securities through such
underwriting) enter into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwriting by
Company.

     

    1.3              Expenses of
Registration.  All expenses incurred in connection with any
registration, qualification or compliance pursuant to this Section 1
including without limitation, all registration, filing and qualification fees,
printing expenses, fees and disbursements of counsel for Company and expenses of
any special audits incidental to or required by such registration, shall be
borne by Company except Company shall not be required to pay underwriters' fees,
discounts or commissions relating to Registrable Securities.  All
expenses of any registered offering not otherwise borne by Company shall be
borne pro rata among Holders participating in the offering and
Company.

     

    1.4              Registration
Procedures.  In the case of each registration, qualification or
compliance effected by Company pursuant to this Registration Rights Agreement,
Company will keep each Holder participating therein advised in writing as to the
initiation of each registration, qualification and compliance and as to the
completion thereof.  Except as otherwise provided in
subsection 1.3, at its expense Company will:

     

    (a)           Prepare
and file with the SEC a registration statement with respect to such Registrable
Securities and use its best efforts to cause such registration statement to
become effective, and, upon the request of Holders of a majority of Registrable
Securities registered thereunder, keep such registration statement effective for
up to 120 days.

     

    (b)           Prepare
and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement
as may be necessary to comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by such registration
statement.

    
      
         

      

      
        2.

        
          

        

      

      
         

      

    

     

    (c)           Furnish
to Holders such numbers of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Securities Act, and such
other documents as they may reasonably request in order to facilitate the
disposition of Registrable Securities owned by them.

     

    d)           Use
its best efforts to register and qualify the securities covered by such
registration statement under such other securities or blue sky laws of such
jurisdictions as shall be reasonably requested by Holders, provided that Company
shall not be required in connection therewith or as a condition thereto to
qualify to do business or to file a general consent to service of process in any
such states or jurisdictions.

     

    (e)           In
the event of any underwritten public offering, enter into and perform its
obligations under an underwriting agreement, in usual and customary form, with
the managing underwriter of such offering.  Each Holder participating
in such underwriting shall also enter into and perform its obligations under
such an agreement.

     

    (f)           Notify
each Holder of Registrable Securities covered by such registration statement at
any time when a prospectus relating thereto is required to be delivered under
the Securities Act or the happening of any event as a result of which the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing.

     

    1.5              Indemnification.

     

     (a)           Company
will indemnify each Holder of Registrable Securities and each of its officers,
directors and partners, and each person controlling such Holder, with respect to
which such registration, qualification or compliance has been effected pursuant
to this Registration Rights Agreement, and each underwriter, if any, and each
person who controls any underwriter of Registrable Securities held by or
issuable to such Holder, against all claims, losses, expenses, damages and
liabilities (or actions in respect thereto) arising out of or based on any
untrue statement (or alleged untrue statement) of a material fact contained in
any prospectus, offering circular or other document (including any related
registration statement, notification or the like) incident to any such
registration, qualification or compliance, or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statement therein not misleading, or any violation or
alleged violation by Company of the Securities Act, the Securities Exchange Act
of 1934, as amended, ("Exchange Act") or any state securities law applicable to
Company or any rule or regulation promulgated under the Securities Act, the
Exchange Act or any such state law and relating to action or inaction required
of Company in connection with any such registration, qualification of
compliance, and will reimburse each such Holder, each of its officers, directors
and partners, and each person controlling such Holder, each such underwriter and
each person who controls any such underwriter, within a reasonable amount of
time after incurred for any reasonable legal and any other expenses incurred in
connection with investigating, defending or settling any such claim, loss,
damage, liability or action; provided, however, that the indemnity agreement
contained in this subsection 1.5(a) shall not apply to amounts paid in
settlement of any such claim, loss, damage, liability, or action if such
settlement is effected without the consent of Company (which consent shall not
be unreasonably withheld); and provided further, that Company will not be liable
in any such case to the extent that any such claim, loss, damage or liability
arises out of or is based on any untrue statement or omission based upon written
information furnished to Company by an instrument duly executed by such Holder
or underwriter specifically for use therein.

     

    
      
         

      

      
        3.

        
          

        

      

      
         

      

    

     

    (b)           Each
Holder will, if Registrable Securities held by or issuable to such Holder are
included in the securities as to which such registration, qualification or
compliance is being effected, indemnify Company, each of its directors and
officers, each underwriter, if any, of Company's securities covered by such a
registration statement, each person who controls Company within the meaning of
the Securities Act, and each other such Holder, each of its officers, directors
and partners and each person controlling such Holder, against all claims,
losses, expenses, damages and liabilities (or actions in respect thereof)
arising out of or based on any untrue statement (or alleged untrue statement) of
a material fact contained in any such registration statement, prospectus,
offering circular or other document, or any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, and will reimburse Company, such Holders,
such directors, officers, partners, persons or underwriters for any reasonable
legal or any other expenses incurred in connection with investigating, defending
or settling any such claim, loss, damage, liability or action, in each case to
the extent, but only to the extent, that such untrue statement (or alleged
untrue statement) or omission (or alleged omission) is made in such registration
statement, prospectus, offering circular or other document in reliance upon and
in conformity with written information furnished to Company by an instrument
duly executed by such Holder specifically for use therein; provided, however,
that the indemnity agreement contained in this subsection 1.5(b) shall not apply
to amounts paid in settlement of any such claim, loss, damage, liability or
action if such settlement is effected without the consent of Holder, (which
consent shall not be unreasonably withheld); and provided further, that the
total amount for which any Holder shall be liable under this subsection 1.5(b)
shall not in any event exceed the aggregate proceeds received by such Holder
from the sale of Registrable Securities held by such Holder in such
registration.

     

    (c)           Each
party entitled to indemnification under this subsection 1.5 (the
"Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom; provided that counsel for Indemnifying Party,
who shall conduct the defense of such claim or litigation, shall be approved by
Indemnified Party (whose approval shall not be unreasonably withheld), and
Indemnified Party may participate in such defense at such party's expense; and
provided further, that the failure of any Indemnified Party to give notice as
provided herein shall not relieve the Indemnifying Party of its obligations
hereunder, unless such failure resulted in prejudice to Indemnifying Party; and
provided further, that an Indemnified Party (together with all other Indemnified
Parties which may be represented without conflict by one counsel) shall have the
right to retain one separate counsel, with the fees and expenses to be paid by
Indemnifying Party, if representation of such Indemnified Party by the counsel
retained by Indemnifying Party would be inappropriate due to actual or potential
differing interests between such Indemnified Party and any other party
represented by such counsel in such proceeding.  No Indemnifying
Party, in the defense of any such claim or litigation, shall, except with the
consent of each Indemnified Party, consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such Indemnified Party of a release from
all liability in respect to such claim or litigation.

    
      
         

      

      
        4.

        
          

        

      

      
         

      

    

     

    1.6              Information by
Holder.  Any Holder or Holders of Registrable Securities
included in any registration shall promptly furnish to Company such information
regarding such Holder or Holders and the distribution proposed by such Holder or
Holders as the Company may request in writing and as shall be required in
connection with any registration, qualification or compliance referred to
herein.

     

    1.7              Rule 144
Reporting.  With a view to making available to Holders the
benefits of certain rules and regulations of the SEC which may permit the sale
of Registrable Securities to the public without registration, Company shall at
all times:

     

    (a)           make
and keep public information available, as those terms are understood and defined
in SEC Rule 144, after 90 days after the effective date of the first
registration filed by Company for an offering of its securities to the general
public;

     

    (b)           file
with the SEC in a timely manner all reports and other documents required
of  Company under the Securities Act and the Exchange Act (at any time
after it has become subject to such reporting requirements); and

     

    (c)           so
long as a Holder owns any Registrable Securities, to furnish to such Holder
forthwith upon request a written statement by Company as to its compliance with
the reporting requirements of said Rule 144 (at any time after 90 days
after the effective date of the first registration statement filed by Company
for an offering of its securities to the general public), and of the Securities
Act and the Exchange Act (at any time after it has become subject to such
reporting requirements), a copy of the most recent annual or quarterly report of
Company, and such other reports and documents so filed by Company as Holder may
reasonably request in complying with any rule or regulation of the SEC allowing
Holder to sell any such securities without registration.

     

    1.8              Transfer of Registration
Rights.  Holders' rights to cause Company to register their
securities and keep information available, granted to them by Company under
subsections 1.2 and 1.7 may be assigned to a transferee or assignee of
a Holder's Registrable Securities not sold to the public, provided, that Company
is given written notice by such Holder at the time of or within a reasonable
time after said transfer, stating the name and address of said transferee or
assignee and identifying the securities with respect to which such registration
rights are being assigned.  Company may prohibit the transfer of any
Holders' rights under this subsection 1.8 to any proposed transferee or assignee
who Company reasonably believes is a competitor of Company.

     

    
      
        
        

      

      
        5.

        
          

        

      

      
        
        

      

    

     

    2.         General.

     

    2.1        
     Waivers and
Amendments.  With the written consent of the record or
beneficial holders of at least a majority of the Registrable Securities, the
obligations of Company and the rights of Holders of Registrable Securities under
this agreement may be waived (either generally or in a particular instance,
either retroactively or prospectively, and either for a specified period of time
or indefinitely), and with the same consent Company, when authorized by
resolution of its Board of Directors, may enter into a supplementary agreement
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement; provided, however, that no
such modification, amendment or waiver shall reduce the aforesaid percentage of
Registrable Securities without the consent of all of the Holders
of  Registrable Securities.  Upon the effectuation of each
such waiver, consent, agreement of amendment or modification, Company shall
promptly give written notice thereof to the record holders of Registrable
Securities who have not previously consented thereto in writing.  This
Agreement or any provision hereof may be changed, waived, discharged or
terminated only by a statement in writing signed by the party against which
enforcement of the change, waiver, discharge or termination is sought, except to
the extent provided in this subsection 2.1.

     

    2.2              
Governing
Law.  This Agreement shall be governed in all respects by the
laws of the State of California as such laws are applied to agreements between
California residents entered into and to be performed entirely within
California.

     

    2.3         
     Successors and
Assigns.  Except as otherwise expressly provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties
hereto.

     

    2.4            
  Entire
Agreement.  Except as set forth below, this Agreement and the
other documents delivered pursuant hereto constitute the full and entire
understanding and agreement between the parties with regard to the subjects
hereof and thereof.

     

    2.5              
Notices,
etc.  All notices and other communications required or
permitted hereunder shall be in writing and shall be mailed by first class mail,
postage prepaid, certified or registered mail, return receipt requested,
addressed (a) if to Holder, at such Holder's address as set forth below, or
at such other address as such Holder shall have furnished to the Company in
writing, or (b) if to the Company, at Company's address set forth below, or
at such other address as Company shall have furnished to Holder in
writing.

     

    2.6               Severability.  In
case any provision of this Agreement shall be invalid, illegal, or
unenforceable, the validity, legality and enforceability of the remaining
provisions of this Agreement or any provision of the other Agreement s shall not
in any way be affected or impaired thereby.

     

    2.7               Titles and
Subtitles.  The titles of the sections and subsections of this
Agreement are for convenience of reference only and are not to be considered in
construing this Agreement.

     

    2.8               Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one
instrument.

     

    
      
         

      

      
        6.

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the parties have
caused this Agreement to be executed and delivered by their duly authorized
officers as of the date first above written.

     

    
      
        
          
            
              
                
                  
                    
                      	
                              COMPANY:

                            	 	
                              LENDER:

                            
	
                              DOCUMENT
      CAPTURE TECHNOLOGIES,

                              INC.

                            	 	
                              BRIDGE
      BANK, NATIONAL

                              ASSOCIATION

                            
	 
      	 	 
      
	
                              By:

                            	 
      	 	
                              By:

                            	 
      
	 
      	 	 
      
	
                              Name:

                            	 	
                              Name:

                            	 
      
	 
      	 	 
      
	
                              Title:

                            	 	
                              Title:

                            	 
      
	
                              Address for Notices:

                            	 	
                              Address for Notices:

                            
	
                              Attn:  Carolyn
      Ellis, CFO

                            	 	
                              Attn:  Mike
      Field

                            
	
                              1798
      Technology Drive, Suite 178

                            	 	
                              55
      Almaden Boulevard

                            
	
                              San
      Jose, CA 95110

                            	 	
                              Suite
      100

                            
	
                              Email:  cellis@docucap.com

                            	 	
                              San
      Jose, California  95113

                            
	 
      	 	
                              Tel:  (408)
      556-6501

                            
	 
      	 	
                              Fax:  (408)
      282-1681

                            

                    

                  

                

              

            

          

        

      

       

      
        
          
          

        

        
          7._________________________________

    

    

    EMPLOYMENT
AGREEMENT

     

    BETWEEN

     

    RON
BENTSUR

     

    AND

     

    KERYX
BIOPHARMACEUTICALS, INC.

    

    

    _________________________________

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EMPLOYMENT
AGREEMENT

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      
                                                                                                                                        
                                                                                                                                          
                                                                                                                                            
                                                                                                                                              
                                                                                                                                                
                                                                                                                                                  
                                                                                                                                                    
                                                                                                                                                      
                                                                                                                                                        
                                                                                                                                                          
                                                                                                                                                            
                                                                                                                                                              
                                                                                                                                                                
                                                                                                                                                                  
                                                                                                                                                                    
                                                                                                                                                                      	1.  	Effective
      Date	

                                                                                                                                                                              1

                                                                                                                                                                            
	 	 	 
	2.  	Employment	

                                                                                                                                                                              1

                                                                                                                                                                            
	 	 	 
	3. 	Employment
      Period	

                                                                                                                                                                              1

                                                                                                                                                                            
	 	 	 
	4.  	Extent
      of Service	

                                                                                                                                                                              1

                                                                                                                                                                            
	 	 	 
	5.  	Compensation
      and Benefits	

                                                                                                                                                                              2

                                                                                                                                                                            
	 	 	 
	 	 	
                                                                                                                                                                              (a)

                                                                                                                                                                            	
                                                                                                                                                                              Base
      Salary

                                                                                                                                                                            	
                                                                                                                                                                              2

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (b)

                                                                                                                                                                            	
                                                                                                                                                                              Incentive,
      Savings and Retirement Plans

                                                                                                                                                                            	
                                                                                                                                                                              2

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (c)

                                                                                                                                                                            	
                                                                                                                                                                              Welfare
      Benefit Plans

                                                                                                                                                                            	
                                                                                                                                                                              3

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (d)

                                                                                                                                                                            	
                                                                                                                                                                              Expenses

                                                                                                                                                                            	
                                                                                                                                                                              3

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (d)

                                                                                                                                                                            	
                                                                                                                                                                              Vacation

                                                                                                                                                                            	
                                                                                                                                                                              3

                                                                                                                                                                            
	 	 	 	 	 
	6. 	Termination
      of Employment	

                                                                                                                                                                              3

                                                                                                                                                                            
	 	 	 
	 	 	
                                                                                                                                                                              (a)

                                                                                                                                                                            	
                                                                                                                                                                              Death

                                                                                                                                                                            	
                                                                                                                                                                              3

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (b)

                                                                                                                                                                            	
                                                                                                                                                                              Disability

                                                                                                                                                                            	
                                                                                                                                                                              3

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (c)

                                                                                                                                                                            	
                                                                                                                                                                              Termination
      by the Company

                                                                                                                                                                            	
                                                                                                                                                                              4

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (d)

                                                                                                                                                                            	
                                                                                                                                                                              Termination
      by Executive

                                                                                                                                                                            	
                                                                                                                                                                              5

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (e)

                                                                                                                                                                            	
                                                                                                                                                                              Notice
      of Termination

                                                                                                                                                                            	
                                                                                                                                                                              6

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (f)

                                                                                                                                                                            	
                                                                                                                                                                              Date
      of Termination

                                                                                                                                                                            	
                                                                                                                                                                              6

                                                                                                                                                                            
	 	 	 	 	 
	7.	Obligations
      of the Company upon Termination	

                                                                                                                                                                              6

                                                                                                                                                                            
	 	 	 
	 	 	
                                                                                                                                                                              (a)

                                                                                                                                                                            	
                                                                                                                                                                              Termination
      by Executive for Good Reason; Termination by the Company Other Than for
      Cause or Disability

                                                                                                                                                                            	
                                                                                                                                                                              6

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (b)

                                                                                                                                                                            	
                                                                                                                                                                              Death
      or Disability

                                                                                                                                                                            	
                                                                                                                                                                              7

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (c)

                                                                                                                                                                            	
                                                                                                                                                                              Cause;
      Resignation Other than for Good Reason

                                                                                                                                                                            	
                                                                                                                                                                              8

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (d)

                                                                                                                                                                            	
                                                                                                                                                                              Expiration
      of Employment Period

                                                                                                                                                                            	
                                                                                                                                                                              8

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (e)

                                                                                                                                                                            	
                                                                                                                                                                              Resignation

                                                                                                                                                                            	
                                                                                                                                                                              9

                                                                                                                                                                            
	 	 	 	 	 
	8. 	Change
      in Control	
                                                                                                                                                                               

                                                                                                                                                                            	

                                                                                                                                                                              9

                                                                                                                                                                            
	 	 	 	 
	 	 	
                                                                                                                                                                              (a)

                                                                                                                                                                            	
                                                                                                                                                                              Definition

                                                                                                                                                                            	
                                                                                                                                                                              9

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (b)

                                                                                                                                                                            	
                                                                                                                                                                              Awards
      not Assumed or Substituted by Surviving Entity

                                                                                                                                                                            	
                                                                                                                                                                              10

                                                                                                                                                                            
	 	 	 	 	 
	 	 	
                                                                                                                                                                              (c)

                                                                                                                                                                            	
                                                                                                                                                                              Awards
      Assumed or Substituted by Surviving Entity

                                                                                                                                                                            	
                                                                                                                                                                              11

                                                                                                                                                                            
	 	 	 	 	 
	9.  	Non-exclusivity
      of Rights	

                                                                                                                                                                              11

                                                                                                                                                                            

                                                                                                                                                                    

                                                                                                                                                                  

                                                                                                                                                                

                                                                                                                                                              

                                                                                                                                                            

                                                                                                                                                          

                                                                                                                                                        

                                                                                                                                                      

                                                                                                                                                    

                                                                                                                                                  

                                                                                                                                                

                                                                                                                                              

                                                                                                                                            

                                                                                                                                          

                                                                                                                                        

                                                                                                                                      

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      
                                                                                                                                        	10.	Full
      Settlement; No Mitigation	

                                                                                                                                                11

                                                                                                                                              
	 	 	 
	11.	Mandatory
      Reduction of Payments in Certain Events	

                                                                                                                                                12

                                                                                                                                              
	 	 	 
	12.  	Restrictions
      on Conduct of Executive	

                                                                                                                                                12

                                                                                                                                              
	 	 	 
	 	 	
                                                                                                                                                (a)

                                                                                                                                              	
                                                                                                                                                General

                                                                                                                                              	
                                                                                                                                                12

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (b)

                                                                                                                                              	
                                                                                                                                                Definitions

                                                                                                                                              	
                                                                                                                                                13

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (c)

                                                                                                                                              	
                                                                                                                                                Restrictive
      Covenants

                                                                                                                                              	
                                                                                                                                                15

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (d)

                                                                                                                                              	
                                                                                                                                                Enforcement
      of Restrictive Covenants

                                                                                                                                              	
                                                                                                                                                16

                                                                                                                                              
	 	 	 	 	 
	13.	Successors	
                                                                                                                                                 

                                                                                                                                              	18
	 	 	 	 
	14.	Cooperation	
                                                                                                                                                 

                                                                                                                                              	18
	 	 	 	 
	15. 	Code
      Section 409A	
                                                                                                                                                 

                                                                                                                                              	18
	 	 	 	 
	 	 	
                                                                                                                                                (a)

                                                                                                                                              	
                                                                                                                                                General

                                                                                                                                              	
                                                                                                                                                18

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (b)

                                                                                                                                              	
                                                                                                                                                Definitional
      Restrictions

                                                                                                                                              	
                                                                                                                                                18

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (c)

                                                                                                                                              	
                                                                                                                                                Six-Month
      Delay in Certain Circumstances

                                                                                                                                              	
                                                                                                                                                19

                                                                                                                                              
	 	 	 	 	 
	16. 	Miscellaneous	
                                                                                                                                                 

                                                                                                                                              	

                                                                                                                                                20

                                                                                                                                              
	 	 	 	 
	 	 	
                                                                                                                                                (a)

                                                                                                                                              	
                                                                                                                                                Governing
      Law

                                                                                                                                              	
                                                                                                                                                20

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (b)

                                                                                                                                              	
                                                                                                                                                Captions

                                                                                                                                              	
                                                                                                                                                20

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (c)

                                                                                                                                              	
                                                                                                                                                Amendments

                                                                                                                                              	
                                                                                                                                                20

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (d)

                                                                                                                                              	
                                                                                                                                                Notices

                                                                                                                                              	
                                                                                                                                                20

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (e)

                                                                                                                                              	
                                                                                                                                                Severability

                                                                                                                                              	
                                                                                                                                                20

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (f)

                                                                                                                                              	
                                                                                                                                                Withholding

                                                                                                                                              	
                                                                                                                                                20

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (g)

                                                                                                                                              	
                                                                                                                                                Waivers

                                                                                                                                              	
                                                                                                                                                20

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (h)

                                                                                                                                              	
                                                                                                                                                Entire
      Agreement

                                                                                                                                              	
                                                                                                                                                21

                                                                                                                                              
	 	 	 	 	 
	 	 	
                                                                                                                                                (i)

                                                                                                                                              	
                                                                                                                                                Arbitration

                                                                                                                                              	
                                                                                                                                                21

                                                                                                                                              

                                                                                                                                      

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        - ii
-

        
          

        

      

      
        
        

      

    

     

    EMPLOYMENT
AGREEMENT

     

    THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into this 14th day
of September, 2009 by and between Keryx Biopharmaceuticals, Inc., a Delaware
corporation (the “Company”), and Ron Bentsur (“Executive”), to be effective as
of the Effective Date, as defined in Section 1.

     

    BACKGROUND

     

    The
Company desires to engage Executive as the Chief Executive Officer of the
Company from and after the Effective Date, 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 May 20, 2009, which is the date on which Executive was appointed
as Chief Executive Officer of the Company.

     

    2.           Employment
.  Executive is hereby employed on the Effective Date as the
Chief Executive Officer of the Company.  In his capacity as Chief
Executive Officer, Executive shall have the duties, responsibilities and
authority commensurate with such position as shall be assigned to him by
the Board of Directors of the Company (the “Board”).  In his capacity
as Chief Executive Officer, Executive will report directly to the
Board.

     

    3.           Employment
Period.  Unless earlier terminated herein in accordance with
Section 6 hereof, Executive’s employment shall be for a term beginning on the
Effective Date and ending on May 20, 2012 (the “Employment
Period”).  Notwithstanding the foregoing, Executive’s opportunity to
earn Milestone-Based Incentive Awards, as defined in Section 5(b)(iii) of this
Agreement, and the provisions in this Agreement relating to the termination of
such opportunity, shall be effective until May 20, 2014, subject to an earlier
termination under Section 7 or 8 of this Agreement (the “Milestone
Period”).

     

    4.           Extent of
Service.  During the Employment Period, and excluding any
periods of vacation and sick leave to which Executive is entitled, Executive
agrees to devote reasonable attention and time during normal business hours to
the business and affairs of the Company and, to the extent necessary to
discharge the responsibilities assigned to Executive hereunder, to use
Executive’s reasonable best efforts to perform faithfully and efficiently such
responsibilities.  During the Employment Period it shall not be a
violation of this Agreement for Executive to (A) manage personal investments, or
(B) devote reasonable periods of 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 significantly interfere 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.  During the Employment Period, the Company will pay to
Executive base salary at the rate of U.S. $300,000 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.  The Compensation Committee of
the Board shall review Executive’s Base Salary annually and may increase
Executive’s Base Salary from year to year.  The Compensation Committee
may reduce Executive’s Base Salary in an amount up to 10% in the aggregate
(i.e., the sum of any and all reductions under this clause (i) cannot exceed
$30,000).  Such adjusted salary then shall become Executive’s Base
Salary for purposes of this Agreement.  The annual review of
Executive’s salary by the Board will 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
Bonus.  For each year during the Employment Period, Executive
will have an opportunity to receive an annual bonus, not to exceed 75% of his
Base Salary (the “Annual Bonus”).  The Compensation Committee will
establish performance goals and objectives from year to year on which the Annual
Bonus will be based, but the Compensation Committee reserves the sole discretion
to modify such goals and objectives, or the final amount of the Annual Bonus,
based upon unforeseen events occurring during the related year or its assessment
of the Company’s or the Executive’s performance in general.  The
Compensation Committee will
provide the Executive with such goals and objectives and any modifications it
may make.  The Compensation Committee
also reserves the sole discretion to pay up to 50% of any Annual Bonus to
Executive in the form of fully-vested registered common stock of the
Company.  Executive’s maximum potential Annual Bonus for fiscal year
2009 will be $131,250, which is equal to 75% of Executive’s pro rated Base
Salary for such year.

     

    (ii)           Initial Option
Grant.  On the Effective Date the Company granted to Executive
an option to purchase 600,000 shares of Company common stock at a price equal to
the fair market value of such stock on such date (the “Stock
Option”).  The Stock Option was issued as an inducement award and was
not granted under the Company’s shareholder-approved incentive
plan.  The Stock Option will vest in equal annual installments on each
of the first four anniversaries of the Effective Date, conditioned upon
Executive’s continuing employment, and subject to other terms and conditions set
forth in the option certificate memorializing the Stock
Option.  During the Employment Period, Executive may be eligible for
additional stock-based awards under the Company’s long-term incentive plan, as
determined by the Compensation Committee.  Nothing herein requires the
Board or the Compensation Committee to make additional grants of options or
other awards in any year.

     

    
      
        
        

      

      
        - 2
-

        
          

        

      

      
        
        

      

    

     

    (iii)           Milestone-Based Incentive
Compensation.  During the Milestone Period Executive will have
the opportunity to earn awards of restricted stock based upon milestone-based
performance criteria, as set forth on Exhibit A to this
Agreement (the “Milestone-Based Incentive Awards”).

     

    (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, employee life, dependent life, accidental death and
travel accident 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, in accordance with the
policies, practices and procedures of the Company to the extent available to
other Peer Executives with respect
to travel, entertainment and other business expenses.  Notwithstanding
the foregoing, (i) the reimbursements provided in any one calendar year
shall not affect the amount of reimbursements provided in any other calendar
year; (ii) the reimbursement of an
eligible expense shall be made as soon as practicable but no later than December
31 of the year following the year in which the expense was incurred; and
(iii) Executive’s rights pursuant to this Section 5(d) shall not be subject to
liquidation or exchange for another benefit.

     

    (e)           Vacation.  During
the Employment Period, Executive will be entitled to four weeks of paid vacation
per year, subject to the Company’s vacation policies.  Notwithstanding
the foregoing, Executive’s paid vacation for fiscal year 2009 will be two
weeks.

     

    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:

     

    
      
        
        

      

      
        - 3
-

        
          

        

      

      
        
        

      

    

    

    (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 a continuous period of not less than 12 months; 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 a continuous period of not less than 12
months, 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 Executive 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 or the
Milestone-Based Incentive Awards shall not constitute Cause for purposes of this
Agreement); or

    

    (vi)           Employee’s
breach of the covenants set forth in Section 12 of this Agreement, or material
breach of any other provisions of this Agreement.

     

    
      
        
        

      

      
        - 4
-

        
          

        

      

      
        
        

      

    

     

    If the
Company determines that it has grounds to terminate Executive’s employment for
Cause pursuant to the provisions of clauses (iii), (iv), (v), or (vi) of this
subsection (c), then it will 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 will have 20 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 20-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 the his employment for Cause
immediately.  The Company may terminate Executive’s employment without
Cause, or for Cause pursuant to the provisions of clauses (i) or (ii) 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 10% in the aggregate (i.e., in excess of $30,000);

    

    (ii)           a material diminution in Executive’s
authority, duties, or responsibilities;

    

    (iii)           a requirement that Executive report to a
corporate officer or employee instead of reporting directly to the
Board;

    

    (iv)           the
relocation of Executive’s principal office to a facility or location that is
more than fifty (50) miles away from the location of the Company’s principal
office at the Effective Date, as set forth in Section 16(d) of this Agreement;
or

    

    (v)           any other action or inaction that
constitutes a material breach by the Company of this Agreement, including,
without limitation, any failure by the Company to comply with and satisfy
Section 13(c) 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 30 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 the 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).

     

    
      
        
        

      

      
        - 5
-

        
          

        

      

      
        
        

      

    

     

    (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 16(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
within 60 days after receipt of the Notice of Termination, as the case may be,
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 Other Than for Cause or
Disability.  If, during the Employment Period, the Company
shall terminate Executive’s employment other than for Cause or Disability, or
Executive shall terminate employment for Good Reason, then and, with respect to the payments
and benefits described in clause (ii) and (iv) below, only if within 45 days
after the Date of Termination Executive shall have executed a release in
substantially the form of Exhibit
B hereto and such release
shall not have been revoked within such time period:

    

                                    (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 15 hereof), the sum of
(1) Executive’s Base Salary through the Date of Termination to the extent not
theretofore paid, and (2) any accrued vacation pay to the extent not theretofore
paid (the sum of the amounts described in clauses (1) and (2) shall be
hereinafter referred to as the “Accrued Obligations”); and

    

                                    (ii)           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 15), a severance payment equal to (A) 25% of
Executive’s Base Salary if the Date of Termination occurs prior to the first
anniversary of the Effective Date or (B) 50% of Executive’s Base Salary if the
Date of Termination occurs on or following the first anniversary of the
Effective Date (either such amount being referred to as the “Severance
Payment”); and

     

    
      
        
        

      

      
        - 6
-

        
          

        

      

      
        
        

      

    

    

                                    (iii)           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 eligible 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

    

    (iv)           any vested portion of the
Stock Option shall remain exercisable by the Executive for a period of one year
following the Date of Termination (or, if earlier, the normal expiration date of
the Stock Option), and any unvested portion of the Stock Option shall lapse
and be forfeited without consideration as
of the Date of Termination; and

    

    (v)           any outstanding shares of
restricted stock granted to Executive as a Milestone-Based Award by reason of
the achievement of a milestone prior to the Date of Termination (the “Earned
Milestone Awards”) shall become fully vested and non-forfeitable as of the Date
of Termination, and,
subject to Section 8(d) of this Agreement, Executive’s
opportunity to earn Milestone-Based Incentive Awards with respect to any
milestone condition which has not been met as of the Date of Termination (the
“Unearned Milestone Opportunity”) shall continue for a period of three (3)
months after
the
Date
of Termination.  To
the extent that a milestone is achieved during such three-month period, the
stock relating to such milestone as set forth on Exhibit A shall be issued to
Executive as fully-vested shares, rather than restricted stock, or, in the
Company’s sole discretion, the Company may pay to Executive an amount in cash
equal to the value of such shares.  Any
Unearned Milestone
Opportunity which
remains unearned at the end of such three-month period shall
expire without consideration.

    

                          (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, any vested portion of the Stock
Option shall remain exercisable by the Executive
and/or
his estate
or beneficiaries for a period of one year following the Date of
Termination (or, if earlier, the normal expiration date of the Stock Option),
and any unvested portion of the Stock Option shall lapse
and be forfeited without consideration as
of the Date of Termination.  In addition, in the
event of such a termination, any outstanding Earned Milestone Awards shall
become fully vested and non-forfeitable to
the Executive and/or his estate
or beneficiaries as
of the Date of Termination, and, subject
to Section 8(d) of this Agreement, Executive’s
opportunity to earn Milestone-Based Incentive Awards with respect to any
Unearned Milestone Opportunity shall continue for a period of three (3) months
after
the
Date
of Termination.  To
the extent that a milestone is achieved during such three-month period, the
stock relating to such milestone as set forth on Exhibit A shall be issued to
Executive or Executive’s estate or beneficiaries, as the case may be, as
fully-vested shares, rather than restricted stock, or, in the Company’s sole
discretion, the Company may pay to Executive or Executive’s estate or
beneficiaries an amount in cash equal to the value of such
shares.  Any
Unearned Milestone Opportunity
which
remains unearned at the end of such three-month period shall
expire without consideration.

     

    
      
        
        

      

      
        - 7
-

        
          

        

      

      
        
        

      

    

    

                          (c)           Cause; Resignation 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, 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, any
portion of the Stock Option outstanding as of the Date of Termination, whether
vested or unvested, and any outstanding Earned Milestone Awards, shall lapse and
be forfeited without consideration on the Date of Termination, and any Unearned
Milestone Opportunity shall expire without consideration on the Date of
Termination.

    

                          (d)           Expiration
of Employment Period.  If Executive’s employment shall be
terminated by the Company upon the normal expiration of the Employment Period,
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, any vested portion of the Stock
Option shall remain exercisable by the Executive
and/or his
estate
or beneficiaries for a period of one year following the Date of
Termination (or, if earlier, the normal expiration date of the Stock Option),
and any unvested portion of the Stock Option shall lapse
and be forfeited without consideration as of the Date of
Termination.  In addition, in the event of such a termination,
any outstanding Earned Milestone Awards shall become fully vested and
non-forfeitable to
the Executive and/or his estate
or beneficiaries as
of the Date of Termination, and, subject to
Section 8(d) of this Agreement, Executive’s opportunity to earn
Milestone-Based Incentive Awards with respect to any Unearned Milestone
Opportunity shall continue for a period of three (3) months after the
Date of Termination.  To the extent that a milestone is achieved
during such three-month period, the stock relating to such milestone as set
forth on Exhibit A shall be issued to Executive or Executive’s estate or
beneficiaries, as the case may be, as fully-vested shares, rather than
restricted stock, or, in the Company’s sole discretion, the Company may pay to
Executive or Executive’s estate or beneficiaries an amount in cash equal to the
value of such shares.  Any
Unearned Milestone Opportunity which remains unearned at the end of such
three-month period shall expire without consideration.  Nothing
in this Agreement shall require the Company to terminate Executive’s employment
upon the normal expiration of the Employment Period.

     

    
      
        
        

      

      
        - 8
-

        
          

        

      

      
        
        

      

    

    

    (e)           Resignation.  Termination
of Executive’s employment for any reason whatsoever shall constitute Executive’s
resignation from the Board and resignation as an officer of the Company, its
subsidiaries and affiliates.

     

    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) (a “Person”) of beneficial ownership of
any capital stock of the Company if, after such acquisition, such Person
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 Person 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 date of the
Effective Date by the Board 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

     

    
      
        
        

      

      
        - 9
-

        
          

        

      

      
        
        

      

    

    

    (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)           Awards not Assumed or
Substituted by Surviving Entity .  Upon the occurrence of a
Change in Control, and except with respect to any awards (or Unearned Milestone
Opportunities) assumed by the surviving entity or otherwise equitably converted
or substituted in connection with the Change in Control in a manner approved by
the Committee or the Board:

    

    (i)           any
outstanding and unvested portion of the Stock Option shall immediately vest and
become fully exercisable, and the Stock Option otherwise shall be governed by
the terms and conditions of its award certificate;

    

    (ii)           any
Earned Milestone Awards shall become fully vested and non-forfeitable; and

    

    (iii)           any Unearned
Milestone Opportunity shall expire without consideration; provided that the
Company shall grant to Executive, immediately prior to the effective time of the
Change in Control, (A) 400,000 shares of vested common stock in the event that
Executive has not, as of such time, previously received any Earned Milestone
Awards under milestone #3 (as set forth on Exhibit
A), and (B) 500,000 shares of vested common stock in the event that
Executive has not, as of such time, previously received any Earned Milestone
Awards under milestone #4 (as set forth on Exhibit
A),
or,
in the discretion of the Company or its successor, the
cash equivalent of (a) and (b) above within sixty (60) days of the Change
in Control.

     

    
      
        
        

      

      
        - 10
-

        
          

        

      

      
        
        

      

    

    

    (c)           Awards
Assumed or Substituted by Surviving Entity.  In
the event that the Stock Option, any Earned Milestone Award, or any Unearned
Milestone Opportunity is assumed by the surviving entity or otherwise equitably
converted or substituted in connection with a Change in Control, then
if, within
one year after the effective date of the Change in Control, Executive’s
employment is terminated without Cause or Executive resigns for Good Reason, (i)
any outstanding and unvested portion of the Stock Option shall become fully
exercisable and the Stock Option shall remain exercisable for a period of one
year following the Date of Termination (or, if earlier, the normal expiration
date of the Stock Option), (ii) any Earned Milestone Awards shall become fully
vested and non-forfeitable as of the Date of Termination, (iii) any Unearned
Milestone Opportunity relating to milestones #1, #2, or #5 (as set forth on
Exhibit
A)
shall continue
for a period of three (3) months after the Date of Termination,
and (iv) any Unearned Milestone Opportunities
relating to milestones #3 and #4 (as set forth on Exhibit A) shall continue for
a period of one year after the Date of Termination.  To the
extent that a milestone is achieved during such three-month period under clause
(iii) above or such one-year period under clause (iv) above, as the case may
be, the stock
relating to such milestone as set forth on Exhibit A (as further
equitably
converted or substituted in connection with the Change in Control) shall be
issued to Executive as fully-vested shares, rather than restricted
stock.  Any
Unearned Milestone Opportunity which remains unearned at the end of such
three-month period or such one-year period, as the case may be, shall expire
without consideration.

    

    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 Parent 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.           Full Settlement; No
Mitigation.  The Company’s obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against
Executive or others.  In no event shall Executive be obligated to seek
other employment or take any other action by way of mitigation of the 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
-

        
          

        

      

      
        
        

      

    

    

               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 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 will not, unduly impair his ability to earn
a living after the termination of this Agreement.

     

    
      
        
        

      

      
        - 12
-

        
          

        

      

      
        
        

      

    

    

                          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 will have substantial contacts with customers,
suppliers, advertisers and vendors of the Company; (B) that pursuant to this
Agreement, Executive will be placed in a position of trust and responsibility
and he will 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 not to compete
with the Company during the Restricted Period; (C) that due to his management
duties, Executive will 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 Position” means
any employment with a Competitor in which Executive will use or is likely to use
any Confidential Information or Trade Secrets, or in which Executive has duties
for such Competitor that involve Competitive Services and that are the same or
similar to those services actually performed by Executive for the
Company.

    

                          “Competitive Services” means
the business of acquiring, developing and commercializing pharmaceutical
products directly in competition with the Company’s products.

    

                          “Competitor” means any Person
engaged, wholly or in part, in providing Competitive Services.

    

                          “Confidential Information”
means all information regarding the Company, its activities, business or clients
that is the subject of reasonable efforts by the Company to maintain its
confidentiality and that is not generally disclosed by practice or authority to
persons not employed by the Company, but that does not rise to the level of a
Trade Secret.  “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.

     

    
      
        
        

      

      
        - 13
-

        
          

        

      

      
        
        

      

    

    

                          “Determination Date” means
the date of termination of Executive’s employment with the Company for any
reason whatsoever or any earlier date (during the Employment Period) of an
alleged breach of the Restrictive Covenants by Executive.

    

                          “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 and
Providers” means any Person to whom the Company has sold its products or
services or solicited to sell its products or services during the twelve (12)
months prior to the Determination Date, or 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 Determination
Date.

    

                          “Protected Employees” means
employees of the Company who were employed by the Company at any time within six
(6) months prior to the Determination Date.

    

                          “Restricted Period” means the
Employment Period plus a period extending after the termination of Executive’s
employment with the Company equal to one year.

    

                          “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.  Without
limiting the foregoing, Trade Secret means any item of confidential information
that constitutes a “trade secret(s)” under the common law or statutory law of
the State of Georgia.

     

    
      
        
        

      

      
        - 14
-

        
          

        

      

      
        
        

      

    

    

                          (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 its affiliated entities, and may not be converted to Executive’s own
use.  Accordingly, Executive hereby agrees that Executive shall not,
directly or indirectly, at any time during the Restricted Period reveal,
divulge, or disclose to any Person not expressly authorized by the Company any
Confidential Information, and Executive shall not, directly or indirectly, at
any time during the Restricted Period use or make use of any Confidential
Information in connection with any business activity other than that of the
Company.  Throughout the term of this Agreement and at all times after
the date that this Agreement terminates for any reason, Executive shall not
directly or indirectly transmit or disclose any Trade Secret of the Company to
any Person, and shall not make use of any such Trade Secret, directly or
indirectly, for himself or for others, without the prior written consent of the
Company.  The parties acknowledge and agree that this Agreement is not
intended to, and does not, alter either the Company’s rights or Executive’s
obligations under any state or federal statutory or common law regarding trade
secrets and unfair trade practices.

    

                          Anything
herein to the contrary notwithstanding, Executive shall not be restricted from
disclosing or using Confidential Information that is required to be disclosed by
law, court order or other legal process; provided, however, that in the
event disclosure is required by law, Executive shall provide the Company with
prompt notice of such requirement so that the Company may seek an appropriate
protective order prior to any such required disclosure by
Executive.

    

                          (ii)           Nonsolicitation of Protected
Employees.  Executive understands and agrees that the
relationship between the Company and each of its Protected Employees 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 to terminate his employment relationship with the Company
or to enter into employment with any other Person.

    

                          (iii)           Restriction on Relationships
with Protected Customers and Providers.  Executive understands
and agrees that the relationship between the Company and each of its Protected
Customers and Suppliers 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, without the
prior written consent of the Company, 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; provided, however, that the
prohibition of this covenant shall apply only to Protected Customers and
Suppliers with whom Executive had Material Contact on the Company’s behalf
during the twelve (12) months immediately preceding the termination of his
employment hereunder.  For purposes of this Agreement, Executive had
“Material Contact” with a Protected Customer if (a) he had business dealings
with the Protected Customer on the Company’s behalf; (b) he was responsible for
supervising or coordinating the dealings between the Company and the Protected
Customer; or (c) he obtained Trade Secrets or Confidential Information about the
customer as a result of his association with the Company, and, provided further,
that the prohibition of this covenant shall not apply to the conduct of general
advertising activities.

     

    
      
        
        

      

      
        - 15
-

        
          

        

      

      
        
        

      

    

    

                          (iv)           Noncompetition with the
Company.  In consideration of the compensation and benefits
being paid and to be paid by the Company to Executive hereunder and the Stock
Option and Milestone-Based Incentive Awards, Executive hereby agrees that,
during the Restricted Period, Executive will not, without prior written consent
of the Company, directly or indirectly seek or obtain a Competitive Position
with a Competitor; provided, however, that the
provisions of this Agreement 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, 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.  Such right and
      remedy shall be independent of any others and severally enforceable, and
      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.  Executive acknowledges and agrees that the
      Restrictive Covenants are reasonable and valid in time and scope and in
      all other respects.  The covenants set forth in this Agreement
      shall be considered and construed as separate and independent
      covenants.  Should any part or provision of any 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.  If any portion of the foregoing provisions is found
      to be invalid or unenforceable by a court of competent jurisdiction
      because its duration, the territory, the definition of activities or the
      definition of information covered is considered to be invalid or
      unreasonable in scope, the invalid or unreasonable term shall be
      redefined, or a new enforceable term provided, such that the intent of the
      Company and Executive in agreeing to the provisions of this Agreement will
      not be impaired and the provision in question shall be enforceable to the
      fullest extent of the applicable
laws.

            

    

     

    
      
        
        

      

      
        - 16
-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (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.

            

    

    

    
      	 	
              (iv)

            	
              Elective Right of the
      Company.  In the event that Executive challenges the
      enforceability of the Restrictive Covenants (or asserts an affirmative
      defense to an action seeking to enforce the Restrictive Covenants) based
      on an argument that the Restrictive Covenants are (x) not enforceable as a
      matter of law, (y) unreasonable in geographical scope or duration or (z)
      void as against public policy, the Company shall have the right (1) to
      cease making the payments required under Section 7(a) above and, upon
      demand, to have Executive repay, within 10 business days of any such
      demand, any such payments already made.  Any right afforded to,
      or exercised by, the Company hereunder shall in no way affect the
      enforceability of the Restrictive Covenants or any other right of the
      Company hereunder.  Nothing in this Section 12(d)(iv) shall be
      construed to preclude a challenge by Executive (or a defense against) the
      application of the Restrictive Covenants as to a particular set of facts
      and circumstances (as opposed to the arguments enumerated
      above).

            

    

    

    13.           Successors.

    

                          (a)           This
Agreement is personal to Executive and without the prior written consent of the
Company shall not be assignable by Executive otherwise than by will or the laws
of descent and distribution.  This Agreement shall inure to the
benefit of and be enforceable by Executive’s legal representatives.

    

                          (b)           This
Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

    

                          (c)           The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place.  As used
in this Agreement, “Company” shall mean the Company as hereinbefore defined and
any successor to its business and/or assets as aforesaid which assumes and
agrees to perform this Agreement by operation of law, or otherwise.

     

    
      
        
        

      

      
        - 17
-

        
          

        

      

      
        
        

      

    

    

               14.           Cooperation.  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.  This
provision shall survive any termination of this Agreement.  The
Company shall reimburse Executive for any reasonable out-of-pocket expenses
incurred in connection with Executive’s performance of obligations under this
Section 15 at the request of the Company.  If Executive is
entitled to be paid or reimbursed for any expenses under this Section 14, the
amount reimbursable in any one 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 15, and Executive’s rights to payment or reimbursement of expenses
pursuant to this Section 15, shall expire at the end of ten years after the Date
of Termination and such rights shall not be subject to liquidation or exchange
for another benefit.

    

    15.          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 the Executive’s
Disability or termination of employment, such amount or benefit will not be
payable or distributable to the Executive, and/or such different form of payment
will 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.

     

    
      
        
        

      

      
        - 18
-

        
          

        

      

      
        
        

      

    

    

    (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 will 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 will 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.

     

    
      
        
        

      

      
        - 19
-

        
          

        

      

      
        
        

      

    

    

               16.           Miscellaneous.

    

                          (a)           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, 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 or by registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 	
                                      If to
      Executive:

                                    	
                                      Ron
      Bentsur

                                    	 
      	 
      
	 	 
      	
                                      212
      Highwood Avenue

                                    	 
      	 
      
	 	
                                       

                                    	

                                      Tenafly,
      NJ  07670

                                    	 
      	 
      
	 	 
      	 
      	 
      	 
      
	 	
                                      With
      a copy to:

                                    	
                                      David
      L. Weissman, Esq.

                                    	 
      	 
      
	 	 
      	

                                      Reed
      Smith LLP

                                    	 
      	
                                       

                                    
	 	 
      	

                                      599
      Lexington Avenue, 22nd  Fl.

                                    	 
      	
                                       

                                    
	 	 
      	

                                      New
      York, NY  10022

                                    	 
      	
                                       

                                    
	 	 
      	 
      	 
      	 
      
	 	
                                      If to the
      Company:

                                    	
                                      Keryx
      Biopharmaceuticals, Inc.

                                    	 
      	 
      
	 	 
      	
                                      750
      Lexington Ave.

                                    	 
      	 
      
	 	
                                       

                                    	

                                      20th
      Floor

                                    	 
      	 
      
	 	
                                       

                                    	

                                      New
      York, NY  10022

                                    	 
      	 
      
	 	 
      	
                                      Attention: Corporate
      Secretary

                                    	 
      	 
      

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    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.

     

    
      
        
        

      

      
        - 20
-

        
          

        

      

      
        
        

      

    

    

    (h)           Entire
Agreement.  Except as provided herein, 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 the exception of disputes
involving the enforcement of the Non Compete or Confidential
Information/Solution (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 Labor 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”).  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.  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.

     

               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/ Ron
      Bentsur	 
	 	 	Ron
      Bentsur	 
	 	 	 	 
	 	 	KERYX
      BIOPHARMACEUTICALS, INC.	 
	 	 	 	 
	 	 	By:
      /s/ James F. Oliviero	 

                  

                

              

            

          

        

      

    
      
        
        

      

      
        - 21
-

        
          

        

      

      
        
        

      

    

    

    Exhibit
A

    

    Milestone-Based
Incentive Awards

    

    Upon
achievement of a milestone performance goal during the Milestone Period, the
Company will grant to Executive an award of restricted stock, as described
below.

    

    
      	
               
      

            	
              1.

            	
              $1.00 Share Price
      Milestone.  Upon first achievement of a $1.00 share price for
      120 consecutive days (based upon average closing price of the
      Company’s common stock on NASDAQ for a 120-day period after the Effective
      Date), Executive will be granted 100,000 shares
      of restricted stock, which will vest in equal installments over each of
      the first three anniversaries the date of grant provided that Executive
      remains an employee of the Company during such vesting period, subject to
      acceleration under Sections 7 and 8 of this
  Agreement.

            

    

    

    
      	
               
      

            	
              2.

            	
              $2.50 Share Price
      Milestone.  Upon first achievement of a $2.50 share price for
      120 consecutive days (based upon average closing price of the
      Company’s common stock on NASDAQ for a 120-day period after the Effective
      Date), Executive will be granted 250,000 shares
      of restricted stock, which will vest in equal installments over each of
      the first three anniversaries the date of grant provided that Executive
      remains an employee of the Company during such vesting period, subject to
      acceleration under Sections 7 and 8 of this
      Agreement.  Achievement of milestone #2 also will result in the
      achievement of milestone #1, to the extent that milestone #1 had not
      previously been achieved and
      will result in 100,000 shares of restricted stock immediately vesting upon
      the achievement of Milestone 2.

            

    

    

    
      	
               
      

            	
              3.

            	
              NDA
      Milestone.  Upon the first to occur of (a) the Company’s
      filing of an accepted new drug application (NDA) with the U.S. Food and
      Drug Administration (FDA) for Zerenex or Perifosine, or (b) the Company’s
      outlicensing of Zerenex or Perifosine in the U.S. to a third party,
      provided that the license is approved by the Board and grants to the third
      party the right to file an NDA with respect to Zerenex or Perifosine, then
      Executive will be granted 400,000 shares
      of restricted stock, which will vest in equal installments over each of
      the first three anniversaries the date of grant provided that Executive
      remains an employee of the Company during such vesting period, subject to
      acceleration under Sections 7 and 8 of this Agreement.  This
      milestone #3 may be achieved with respect to NDAs or qualifying
      outlicenses for multiple indications of the same product; provided that if
      this milestone #3 is earned with respect to an indication of a product, it
      shall not be earned again upon subsequent outlicense of the product
      relating to such indication.

            

    

    

    
      	
               
      

            	
              4.

            	
              Commercial Sales
      Milestone.  Upon the first to occur of (a) the Company’s
      first commercial sale of Zerenex or Perifosine in the U.S. off of an
      approved NDA, (b) the Company’s receipt of the first royalty upon the
      commercial sale of Zerenex or Perifosine in the U.S. by a partner to whom
      the Company has sold exclusive or non-exclusive commercial rights, or (c)
      the Company’s complete outlicensing of the entire product rights of
      Zerenex or Perifosine in the U.S., as approved by the Board, then
      Executive will be granted 500,000 shares
      of restricted stock, which will vest on the first anniversary of the date
      of grant provided that Executive remains an employee of the Company during
      such vesting period, subject to acceleration under Sections 7 and 8 of
      this Agreement.  This milestone #4 may be earned both for
      Zerenex and for Perifosine.  Upon achievement of this milestone
      #4 with respect to a product, the restricted stock granted for one (and
      only one) indication of the product under milestone #3 will vest in
      full.

            

    

    

    
      	
               
      

            	
              5.

            	
              Foreign Market
      Licensing Milestone.  Upon each event of the Company’s
      outlicensing Zerenex in a foreign market, other than Japan, resulting in a
      greater than $10 million non-refundable cash payment to the Company with a
      gross deal value to the Company of at least $50 million, Executive will be
      granted 100,000 shares
      of restricted stock, which will vest in equal installments over each of
      the first three anniversaries the date of grant provided that Executive
      remains an employee of the Company during such vesting period, subject to
      acceleration under Sections 7 and 8 of this
  Agreement.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]