Document:

<PAGE>

                                                                 Exhibit 10.25

                              EMPLOYMENT AGREEMENT

         This Agreement by and between KERYX BIOPHARMACEUTICALS, INC. ("Keryx"),
a Delaware corporation having an address at 5 Kiryat Mada, Har Hotzvim,
Jerusalem, Israel 91236 and ROBERT GALLAHUE, JR., an individual residing at 544
Sharpner's Pond Road, North Andover, Massachusetts 01845 United States of
America ("Gallahue").

WITNESSETH:

         WHEREAS, the Corporation desires to employ Gallahue as Chief Financial
Officer and Treasurer of Keryx and Gallahue desires to be employed by the Keryx
as Chief Financial Officer and Treasurer of Keryx, all pursuant to the terms and
conditions hereinafter set forth;

         NOW THEREFORE, in consideration of the foregoing and the mutual
promises and covenants herein contained, it is agreed as follows:

1.       EMPLOYMENT DUTIES

         Keryx hereby engages and employs Gallahue, and Gallahue accepts
engagement and employment, as Chief Financial Officer and Treasurer of Keryx, to
direct, supervise and have responsibilities for the financial affairs of Keryx
and for any other appropriate areas and tasks which the Board of Directors
and/or the Chief Executive Officer may assign to him. Gallahue acknowledges and
agrees that the performance by Gallahue of his duties hereunder may require
significant domestic and international travel by Gallahue.

2.       TERM

         Gallahue's employment hereunder shall be for a term of three (3) years
commencing on June 29, 2000, and continuing through June 29, 2003 (the "Initial
Term"), with successive one-year renewals thereafter (the "Renewal Terms")
unless sooner terminated as hereinafter provided. (The Initial Term and Renewal
Terms are collectively referred to as the "Term.")

3.       COMPENSATION

         (a) As compensation for the performance of his duties on behalf of
Keryx, Gallahue shall be compensated as follows:

              (i) BASE SALARY. Gallahue shall receive an annual gross base
salary of one hundred and fifty thousand dollars ($150,000) payable in
accordance with the Corporation's payroll policies and subject to standard
payroll deductions and withholdings. The Corporation's Board of Directors shall
review Gallahue's performance and the Corporation's financial and operating
results on at least an annual basis, and may increase Gallahue's base salary as
it, in its reasonable discretion, deems appropriate based on such review.

              (ii) BONUS. Gallahue shall be eligible to receive one or more
bonuses during any calendar year in the discretion of the Chief Executive
Officer, acting in consultation with the Board of Directors.

              (iii) EQUITY. The Corporation will grant Gallahue options (the
"Options") to purchase 90,000 shares of the common stock of the Corporation (the
"Initial Grant") at an exercise price equal to $10.00 per share (the "Exercise
Price"), which options shall be exercisable for a period of 10 years from the
date of issuance. The Initial Grant and the Exercise Price give effect to the
Corporation's one-for-two common stock dividend declared by the Board of
Directors on June 14, 2000 (the "June 2000 Stock Dividend"). Gallahue's Options
will be granted under the Corporation's 2000 Stock Option Plan (the "Plan") and
will be subject to the terms and conditions thereof, including any Stock Option
Agreement entered into by Gallahue and the Corporation thereunder. In accordance
with the Plan, should any change be made to the Common Stock by reason of any
stock split, stock dividend

<PAGE>

(other than the June 2000 Stock Dividend, for which such adjustment has already
been made), recapitalization, combination of shares, exchange of shares or other
change affecting the outstanding Common Stock as a class without the
Corporation's receipt of consideration, appropriate adjustments shall be made to
(A) the total number and/or class of securities subject to such options and (B)
the Exercise Price in order to reflect such change and thereby preclude a
dilution or enlargement under such options. One-third of the Initial Grant shall
vest on each anniversary date following the grant date of such options, provided
that at the time of vesting, Gallahue is employed by the Corporation or by a
parent, subsidiary or affiliate of the Corporation.

         (b) EXPENSES. Keryx shall reimburse Gallahue for all normal, usual and
necessary expenses incurred by Gallahue in furtherance of the business and
affairs of Keryx, including travel and entertainment, against receipt by Keryx
of appropriate vouchers or other proof of Gallahue's expenditures and otherwise
in accordance with such Expense Reimbursement Policy as may from time to time be
adopted by the Board of Directors of Keryx.

         (c) ANNUAL LEAVE AND HOLIDAYS. Gallahue shall be entitled during the
term of this Agreement to twenty (20) business days of annual leave per year as
well as the following holidays: New Year's Day, President's Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and the day following, and
Christmas Day.

         (d) EMPLOYEE BENEFITS. During the Term of his employment, Gallahue
shall be entitled to participate in all employee and fringe benefit plans and
programs generally offered to other members of the Corporation's management who
are similarly situated, including, without limitation, any pension, profit
sharing, incentive, retirement, insurance, health and disability benefits and
plans. The Corporation reserves its right to modify or terminate any of its
employee and fringe benefit plans and programs at any time.

4.       REPRESENTATIONS AND WARRANTIES
         BY GALLAHUE AND KERYX

         (a) Gallahue hereby represents and warrants to Keryx as follows:

              (i) Neither the execution and delivery of this Agreement nor the
performance by Gallahue of his duties and other obligations hereunder violate
any statute, law, determination or award, or conflict with or constitute a
default under (whether immediately, upon the giving of notice or lapse of time
or both) any prior employment agreement, contract, or other instrument to which
Gallahue is a party or by which he is bound.

              (ii) Gallahue has the full right, power and legal capacity to
enter and deliver this Agreement and to perform his duties and other obligations
hereunder. This Agreement constitutes the legal, valid and binding obligation of
Gallahue enforceable against him in accordance with its terms. No approvals or
consents of any persons or entities are required for Gallahue to execute and
deliver this Agreement or perform his duties and other obligations hereunder.

              (iii) Gallahue will devote his entire business time, energy,
abilities and experience to the performance of his duties, effectively and in
good faith. Further, during the Term, Gallahue shall not render services as an
employee, consultant or otherwise, whether or not during regular business hours,
for pay to any other party other than the Corporation without the written
permission of the Chief Executive Officer.

         (b) Keryx hereby represents and warrants to Gallahue as follows:

              (i) Keryx is duly organized, validly existing and in good standing
under the laws of the State of Delaware, with all requisite corporate power and
authority to own its properties and conduct its business in the manner presently
conducted.

              (ii) Keryx has the full power and authority to enter into this
Agreement and to incur and perform its obligations hereunder.

<PAGE>

              (iii) The execution, delivery and performance by Keryx of this
Agreement does not conflict with or result in a material breach or violation of
or constitute a material default under (whether immediately, or upon the giving
of notice or lapse of time or both) the certificate of incorporation or by-laws
of Keryx, or any agreement or instrument to which Keryx is a party or by which
Keryx or any of its properties may be bound or affected.

5.       CONFIDENTIAL INFORMATION

         Gallahue agrees to sign and comply with the Corporation's Proprietary
Information and Inventions Agreement, annexed hereto as Exhibit A.

6.       NON-COMPETITION

         (a) Gallahue understands and recognizes that his services to Keryx are
special and unique and agrees that, during the Term, and for a period of 12
months from the date of termination of his employment hereunder, he shall not in
any manner, directly or indirectly, on behalf of himself or any person, firm,
partnership, joint venture, corporation or other business entity ("Person"),
enter into or engage in any business directly competitive with Keryx's business,
either as an individual for his own account, or as a partner, joint venturer,
treasurer, agent, consultant, salesperson, officer, director or shareholder of a
Person operating or intending to operate within the area that Keryx is, at the
date of termination, conducting its business (the "Restricted Businesses");
provided, however, that nothing herein will preclude Gallahue from holding one
percent (1%) or less of the stock of any publicly traded Corporation.

         (b) In the event that Gallahue breaches any provisions of this Section
6 or there is a threatened breach, then, in addition to any other rights which
Keryx may have, Keryx shall be entitled, without the posting of a bond or other
security, to injunctive relief to enforce the restrictions contained herein. In
the event that an actual proceeding is brought in equity to enforce the
provisions of this Section 6, Gallahue shall not argue as a defense that there
is an adequate remedy at law nor shall Keryx be prevented from seeking any other
remedies that may be available.

7.       NON-SOLICITATION AND NON-INTERFERENCE

         During the Term, and for 12 months thereafter, Gallahue shall not,
directly or indirectly, without the prior written consent of Keryx:

         (a) solicit or induce any employee of Keryx or any subsidiary, parent,
affiliate or successor ("Affiliate") of Keryx to leave the employ of Keryx or
any Affiliate or hire for any purpose any employee of Keryx or any Affiliate or
any employee who has left the employment of Keryx or any Affiliate within six
months of the termination of said employee's employment with Keryx; or

         (b) interfere with or disrupt or attempt to disrupt Keryx's or its
Affiliates' business relationship with any of their partners, service providers,
clients, customers and/or suppliers.

8.       TERMINATION

         (a) Either party may terminate Gallahue's employment with the
Corporation without cause at any time upon ninety (90) days' notice. The
Corporation shall have the right, in its sole discretion, to require Gallahue to
continue working for the Corporation during the notice period. If the Employer
terminates the Employee without cause pursuant to this section, and only if
Gallahue executes a waiver and release of claims substantially in the form set
forth in Exhibit B, attached hereto, the Board of Directors shall take the
necessary steps so that (i) any outstanding, but unvested, options granted to
the Employee shall vest upon the effective date of his termination; and (ii) the
period during which the Employee shall be permitted to exercise such options
shall be extended to two (2) years from the effective date of his termination as
defined in the Stock Option Plan governing the options in question.

         (b) Gallahue's employment shall be terminated by his death or
disability. (For purposes of this section, "disability" shall be deemed to have
occurred if Gallahue is unable, due to any physical

<PAGE>

or mental disease or condition, to perform his normal duties of employment for
120 consecutive days or 180 days in any twelve-month period.) In such an event,
he shall be entitled to continue to receive his base salary for three (3) months
following his last day of actual employment by the Corporation. In addition, the
Board of Directors shall take the necessary steps so that (a) any outstanding,
but unvested, options granted to the Employee shall vest upon the effective date
of his termination; and (b) the period during which the Employee shall be
permitted to exercise such options shall be extended to two (2) years from the
effective date of his termination as defined in the Share Option Plan governing
the options in question. Should the Employee's employment be terminated as a
result of his death, the benefits granted herein, shall be granted instead to
his lawful heir or heirs. In either case (disability or death), accelerated
vesting and extended exercise of the options will only be granted if Gallahue
or, in the case of his death, his legal successor, together with his lawful heir
or heirs, execute a waiver and release of claims substantially in the form set
forth in Exhibit B hereto.

         (c) Notwithstanding the foregoing, the Corporation may terminate
Gallahue immediately and without prior notice in the following circumstances:
(a) a material breach of Gallahue's obligations pursuant to Sections 4(a), 5, 6
and/or 7; (b) a material breach by Gallahue of any other provision of this
Agreement, which is not cured by Gallahue within fifteen (15) days after
receiving notice thereof from the Corporation containing a description of the
breach or breaches alleged to have occurred; (c) the habitual neglect or gross
failure by Gallahue to adequately perform the duties of his position; (d) any
act of moral turpitude or criminal action connected to his employment with the
Corporation or his place of employment; or (e) Gallahue's refusal to comply with
or his violation of lawful instructions of the Chief Executive Officer or the
Board of Directors.

         (d). In the event that Gallahue's employment has been terminated in
accordance with Section 8(c), above, Gallahue shall not be entitled to receive
any of the severance benefits set forth in Section 8(a) or (b), above.

9.       INDEMNIFICATION

         The Corporation shall take whatever steps are necessary to establish a
policy of indemnifying its officers, including, but not limited to Gallahue, for
all actions taken in good faith in pursuit of their duties and obligations to
the Corporation. Such steps shall include, but shall not necessarily be limited
to, the obtaining of an appropriate level of Directors and Officers Liability
coverage.

10.      NOTICES

         Any notice or other communication under this Agreement shall be in
writing and shall be deemed to have been given when delivered personally against
receipt thereof; two (2) business days after being sent by Federal Express or
similar internationally recognized courier service; or seven (7) business days
after being mailed registered or certified mail, postage prepaid, return receipt
requested, to either party at the address set forth above, or to such other
address as such party shall give by notice hereunder to the other party.

11.      SEVERABILITY OF PROVISIONS

         If any provision of this Agreement shall be declared by a court of
competent jurisdiction to be invalid, illegal or incapable of being enforced in
whole or in part, the remaining conditions and provisions or portions thereof
shall nevertheless remain in full force and effect and enforceable to the extent
they are valid, legal and enforceable, and no provision shall be deemed
dependent upon any other covenant or provision unless so expressed herein.

12.      ENTIRE AGREEMENT; MODIFICATION

         This Agreement contains the entire agreement of the parties relating to
the subject matter hereof, and the parties hereto have made no agreements,
representations or warranties relating to the subject matter of this Agreement
that are not set forth herein. No modification of this Agreement shall be valid
unless made in writing and signed by the parties hereto.

<PAGE>

13.      BINDING EFFECT

         The rights, benefits, duties and obligations under this Agreement shall
inure to, and be binding upon, Keryx, its successors and assigns, and upon
Gallahue and his legal representatives. This Agreement constitutes a personal
service agreement, and the performance of Gallahue's obligations hereunder may
not be transferred or assigned by Gallahue.

14.      NON-WAIVER

         The failure of either party to insist upon the strict performance of
any of the terms, conditions and provisions of this Agreement shall not be
construed as a waiver or relinquishment of future compliance therewith, and said
terms, conditions and provisions shall remain in full force and effect. No
waiver of any term or condition of this Agreement on the part of either party
shall be effective for any purpose whatsoever unless such waiver is in writing
and signed by such party.

15.      GOVERNING LAW

         This Agreement shall be governed by, and construed and interpreted in
accordance with, the laws of the Commonwealth of Massachusetts without regard to
principles of conflicts of law. Additionally, the prevailing party in any
litigation shall be entitled to an additional award of its attorney fees, cost
and expenses.

16.      REMEDIES FOR BREACH

         Gallahue understands and agrees that any breach of Sections 4(a) 5, 6
and/or 7 of this Agreement by him could cause irreparable damage to Keryx and to
the Affiliates, and that monetary damages alone would not be adequate and, in
the event of such breach, Keryx shall have, in addition to any and all remedies
of law, the right to an injunction, specific performance or other equitable
relief to prevent or redress the violation of Keryx's rights under such
Sections.

17.      HEADINGS

         The headings of paragraphs are inserted for convenience and shall not
affect any interpretation of this Agreement.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

                                            EMPLOYEE:

                                            By: /s/ Robert Gallahue, Jr.
                                               --------------------------

                                            Name:  Robert Gallahue, Jr.

                                            KERYX BIOPHARMACEUTICALS, INC.

                                            By: /s/ Morris Laster
                                               ---------------------------
                                            Name:
                                            Title:

<PAGE>

                                    EXHIBIT A

                PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

         In consideration of my employment or continued employment by Keryx
Biopharmaceuticals, Inc. (together with any subsidiary of Keryx
Biopharmaceuticals, Inc., the "Company"), and the compensation now and hereafter
paid to me, I hereby agree as follows:

         1. RECOGNITION OF COMPANY'S RIGHTS; NONDISCLOSURE. At all times during
the term of my employment and thereafter, I will hold in strictest confidence
and will not disclose, use, lecture upon or publish any of the Company's
Proprietary Information (defined below), except as such disclosure, use or
publication may be required in connection with my work for the Company, or
unless an officer of the Company expressly authorizes such in writing.

         The term "Proprietary Information" shall mean trade secrets,
confidential knowledge, data or any other proprietary information of the
Company. By way of illustration but not limitation, "Proprietary Information"
includes (a) inventions, mask works, trade secrets, ideas, processes, formulas,
source and object codes, data, programs, other works of authorship, know-how,
improvements, discoveries, developments, designs and techniques (hereinafter
collectively refereed to as "Inventions"); and (b) information regarding plans
for research, development, new products, regulatory matters, marketing and
selling, business plans, budgets and unpublished financial statements, licenses,
prices and costs, suppliers and customers; and information regarding the skills
and compensation of other employees of the Company.

         2. THIRD PARTY INFORMATION. I understand, in addition, that the Company
has received, and in the future will receive, from third parties confidential or
proprietary information ("Third Party Information") subject to a duty on the
Company's part to maintain the confidentiality of such information and to use it
only for certain limited purposes. During the term of my employment and
thereafter, I will hold Third Party Information in the strictest confidence and
will not disclose to anyone (except in connection with my work for the Company),
unless expressly authorized by an officer of the Company in writing.

         3.  ASSIGNMENT OF INVENTIONS

              3.1  ASSIGNMENT

                (a) I hereby assign to the Company all my right, title and
interest in and to any and all Inventions and all patent rights, copyrights,
mask work rights, trademarks, trade secret rights, all other rights throughout
the world in connection therewith, and the goodwill associated with all of the
foregoing (collectively, "Proprietary Rights"), whether or not patentable or
registrable under patent, copyright, trademark or similar statutes, made or
conceived or reduced to practice or learned by me, either alone or jointly with
others, during the period of my employment with the Company. Inventions assigned
to, or as directed by, the Company under this Paragraph 3 are hereinafter
referred to as "Company Inventions". I agree, upon request, to execute, verify
and deliver assignments of the Proprietary Rights to the Company or its designee
and I hereby appoint the Company my attorney-in-fact with respect to the
Proprietary Rights for the purpose of effecting any or all of the Company's
rights to the Proprietary Rights.

              3.1 GOVERNMENT. I also agree to assign to or as directed by the
Company all my right, title and interest in and to any and all Inventions, full
title to which is required to be assigned to the United States of America by a
contract between the Company and United States of America or any of its
agencies.

              3.2 WORKS FOR HIRE. I acknowledge that all original works of
authorship which are made by me (solely or jointly with others) within the scope
of my employment and which are protectable by copyright are "works made for
hire", as that term is defined in the United States Copyright Act (17 U.S.C.
Section 101).

<PAGE>

         4. ENFORCEMENT OF PROPRIETARY RIGHTS. From time to time, I will assist
the Company in every proper way to obtain and enforce United States and foreign
Proprietary Rights relating to Company Inventions in any and all countries. My
obligation to assist the Company with respect to Proprietary Rights relating to
such Company Inventions in any and all countries shall continue beyond the
termination of my employment, but the Company shall compensate me at a
reasonable rate after my termination for the time actually spent by me at the
Company's request on such assistance.

         I hereby waive and quitclaim to the Company any and all claims, of any
nature whatsoever, which I now or may hereafter have for infringement of any
Proprietary Rights assigned hereunder to the Company.

         5. OBLIGATION TO KEEP COMPANY INFORMED. During the period of my
employment, I will promptly disclose all Inventions to the Company fully and in
writing and will hold such Inventions in trust for the sole right and benefit of
the Company. In addition, after termination of my employment, I will promptly
disclose all patent applications filed by me within a year after termination of
employment.

         6. PRIOR INVENTIONS. Inventions, if any, patented or unpatented, which
I made prior to the commencement of my employment with the Company are excluded
from the scope of this Agreement. To preclude any possible uncertainty, I have
set forth in Exhibit A attached hereto a complete list of all Inventions (i)
that I have, alone or jointly with others, conceived, developed or reduced to
practice or caused to be conceived, developed or reduced to practice prior to
the commencement of my employment with the Company, (ii) that I consider to be
my property or the property of third parties and (iii) that I wish to have
excluded from the scope of this Agreement. If disclosure of any such Invention
on Exhibit A would cause me to violate any prior confidentiality agreement, I
understand that I am not to list such Inventions in Exhibit A but am to inform
the Company that all such Inventions have not been listed for that reason.

         7. NO IMPROPER USE OF MATERIALS. During my employment by the Company, I
will not improperly use or disclose any confidential information or trade
secrets, if any, of any former employer or any other person to whom I have an
obligation of confidentiality, and I will not bring onto the premises of the
Company any unpublished documents or any property belonging to any former
employer or any other person to whom I have an obligation of confidentiality
unless consented to in writing by that former employer or person.

         8. NO CONFLICTING OBLIGATION. I represent that my performance of all
the terms of this Agreement and my performance of my duties as an employee of
the Company do not and will not breach any agreement to keep in confidence
information acquired by me in confidence or in trust prior to my employment by
the Company. I have not entered into, and I agree I will not enter into, any
agreement either written or oral in conflict herewith.

         9. RETURN OF COMPANY DOCUMENTS. When I leave the employ of the Company,
I will deliver to the Company any and all drawings, notes, memoranda,
specifications, devices, formulas, molecules, cells, storage media, including
software, documents and computer printouts, together with all copies thereof,
and any other material containing or disclosing any Company Inventions, Third
Party Information or Proprietary Information of the Company. I further agree
that any property situated on the Company's premises and owned by the Company,
including disks and other storage media, filing cabinets or other work areas, is
subject to inspection by Company personnel at any time with or without notice.
Prior to leaving, I will cooperate with the Company in completing and signing
the Company's termination statement for technical and management personnel.

         10. LEGAL AND EQUITABLE REMEDIES. Because my services are personal and
unique and because I may have access to and may become acquainted with the
Proprietary Information of the Company, the Company shall have the right to
enforce this Agreement and any of its provisions by injunction, specific
performance or other equitable relief, without bond, without prejudice to any
other rights and remedies that the Company may have for a breach of this
Agreement, and I waive the claim or defense that the Company has an adequate
remedy at law. I shall not, in any action or proceeding to enforce any of the
provisions of this Agreement, assert the claim or defense that such an adequate
remedy at law exists.

<PAGE>

         11. NOTICES. Any notices required or permitted hereunder shall be given
to me at the address specified below or at such other address as I shall specify
in writing. Such notice shall be deemed given upon personal delivery to the
appropriate address or if sent by certified or registered mail, three days after
the date of mailing.

         12. GENERAL PROVISIONS.

              12.1 GOVERNING LAW. This Agreement is executed under seal and will
be governed by and construed according to the laws of the Commonwealth of
Massachusetts.

              12.2 ENTIRE AGREEMENT. This Agreement is the final, complete and
exclusive agreement of the parties with respect to the subject matter hereof and
supersedes and merges all prior discussions between us. No modification or
amendment of this Agreement, nor any waiver of any rights under this Agreement,
will be effective unless in writing, signed by the party to be charged. Any
subsequent change or changes in my duties, salary or compensation will not
affect the validity or scope of this Agreement. As used in this Agreement, the
period of my employment includes any time during which I may be retained by the
Company as a consultant.

              12.3 SEVERABILITY. If one or more of the provisions in this
Agreement are deemed unenforceable by law, then the remaining provisions will
continue in full forced and effect.

              12.4 SUCCESSORS AND ASSIGNS. This Agreement will be binding upon
my heirs, executors, administrators and other legal representatives and will be
for the benefit of the Company, its successors, and its assigns. I may not
assign any of my rights, or delegate any of my obligations, under this
Agreement.

              12.5 SURVIVAL. The provisions of this Agreement shall survive the
termination of my employment and the assignment of this Agreement by the Company
to any successor in interest or other assignee.

              12.6 EMPLOYMENT. I agree and understand that nothing in this
Agreement shall confer on me any right with respect to continuation of my
employment with the Company, or shall it interfere in any way with my right or
the Company's right to terminate my employment at any time, with or without
cause.

              12.7 WAIVER. No waiver by the Company of any breach of this
Agreement shall be a waiver of any preceding or succeeding breach. No waiver by
the Company of any right under this Agreement shall be construed as a wavier of
any other right. The Company shall not be required to give notice to enforce
strict adherence to all terms of this Agreement.

              12.8 COUNTERPARTS. This Agreement may be executed in counterparts,
all of which together shall for all purposes constitute one Agreement, binding
on each of the parties hereto notwithstanding that each such party shall not
have signed the same counterpart.

              12.9 JURISDICTION AND VENUE; WAIVER OF JURY TRIAL. In case of any
dispute hereunder, the parties will submit to the exclusive jurisdiction and
venue of any court of competent jurisdiction sitting in Suffolk County,
Massachusetts, and will comply with all requirements necessary to give such
court jurisdiction over the parties and the controversy. EACH PARTY HEREBY
WAIVES ANY RIGHT TO A JURY TRIAL AND TO CLAIM OR RECOVER PUNITIVE DAMAGES.

              12.10 DISCLOSURE. I shall disclose the existence and terms of this
Agreement to any employer or other person that I may work for or be engaged by
after the termination of my employment or engagement at the Company. I agree
that the Company may, after notification to me, provide a copy of this Agreement
to any business or enterprise (i) which I may directly or indirectly own,
manage, operate, finance, join, control or participate in the ownership,
management, operation, financing, or control of, or (ii) with which I may be
connected with as an officer, director, employee, partner, principal, agent,
representative, consultant or otherwise, or in connection with which I may use
or

<PAGE>

permit my name to be used. I will provide the names and addresses of any of such
persons or entities as the Company may from time to time reasonably request.

         This Agreement shall be effective as of the first day of my employment
with the Company, namely June 29, 2000.

         I UNDERSTAND THAT THIS AGREEMENT AFFECTS MY RIGHTS TO INVENTIONS I MAKE
DURING MY EMPLOYMENT, AND RESTRICTS MY RIGHTS TO DISCLOSE OR USE THE COMPANY'S
CONFIDENTIAL INFORMATION DURING OR SUBSEQUENT TO MY EMPLOYMENT.

         I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS.

Signature:

________________________________
Robert Gallahue, Jr.

Date: __________________________

ACCEPTED AND AGREED TO:
Keryx Biopharmaceuticals, Inc.

By:____________________________
      Signature

Name: _________________________

Title: ________________________

<PAGE>

                                    EXHIBIT A
     -----------------------------------------------------------------------

  NONE

<PAGE>

                                   APPENDIX B

                         EMPLOYEE AGREEMENT AND RELEASE

Except as otherwise set forth in this Employee Agreement and Release (the
"Agreement") between the undersigned and Keryx Biopharmaceuticals, Inc. (the
"Corporation"), I hereby release, acquit and forever discharge the Corporation,
its parents, affiliates and subsidiaries, and their officers, directors, agents,
servants, employees, attorneys, shareholders, successors, assigns and
affiliates, of and from any and all claims, liabilities, demands, causes of
action, costs, expenses, attorneys fees, damages, indemnities and obligations of
every kind and nature, in law, equity, or otherwise, known and unknown,
suspected and unsuspected, disclosed and undisclosed, arising out of or in any
way related to agreements, events, acts or conduct at any time prior to and
including the execution date of this Agreement, including but not limited to:
all such claims and demands directly or indirectly arising out of or in any way
connected with my employment with the Corporation or the termination of that
employment; claims or demands related to salary, bonuses, commissions, stock,
stock options, or any other ownership interests in the Corporation, vacation
pay, fringe benefits, expense reimbursements, severance pay, or any other form
of compensation; claims pursuant to any federal, state or local law, statute, or
cause of action including, but not limited to, Title VII of the Civil Rights Act
of 1964, 42 U.S.C.ss. 2000e ET SEQ., the Age Discrimination in Employment Act,
29 U.S.C.ss. 621 ET SEQ. ("ADEA"), the Americans With Disabilities Act of 1990,
42 U.S.C.ss. 12101 ET SEQ., and the Massachusetts Fair Employment Practices Act,
M.G.L. c.151B,ss. 1 ET SEQ., all as amended, and all claims arising out of the
Fair Credit Reporting Act, 15 U.S.C.ss. 1681 ET SEQ., the Employee Retirement
Income Security Act of 1974 ("ERISA"), 29 U.S.C.ss. 1001 ET SEQ., the
Massachusetts Civil Rights Act, M.G.L. c.12ss.ss. 11H and 11I, the Massachusetts
Equal Rights Act, M.G.L. c.93ss. 102 and M.G.L. c.214,ss.1C, the Massachusetts
Labor and Industries Act, M.G.L. c. 149,ss. 1 ET SEQ., and the Massachusetts
Privacy Act, M.G.L. c.214,ss.1B, all as amended,; tort law; contract law;
wrongful discharge; discrimination; harassment; retaliation; fraud; defamation;
emotional distress; and breach of the implied covenants of good faith and fair
dealing.

I acknowledge that I am knowingly and voluntarily waiving and releasing any
rights I may have under ADEA. I also acknowledge that the consideration given
for the waiver and release in the preceding paragraph hereof is in addition to
anything of value to which I was already entitled. I further acknowledge that I
have been advised by this writing, as required by the ADEA, that; (a) my waiver
and release do not apply to any rights or claims that may arise after the
execution date of this Agreement; (b) I have been advised hereby that I have the
right to consult with an attorney prior to executing this Agreement; (c) I have
twenty-one (21) days to consider this Agreement (although I may choose to
voluntarily execute this Agreement earlier); (d) I have seven (7) days following
the execution of this Agreement by the parties to revoke the Agreement; and (e)
this Agreement shall not be effective until the date upon which the revocation
period had expired, which shall be the eighth day after this Agreement is
executed by me.

In giving this release, which includes claims that may be unknown to me at
present, I hereby expressly waive and relinquish all rights and benefits under
any law of any jurisdiction with respect to my release of any such presently
unknown claims I may have against the Corporation.

Dated: _______________________              __________________________________
                                            Robert Gallahue, Jr.<PAGE>

                                                                 Exhibit 10.26

                              EMPLOYMENT AGREEMENT

An agreement between KERYX (ISRAEL) LTD., an Israeli company with it
principal place of business at 5 Kiryat Mada, Har Hotzvim, Jerusalem 91236
(the "Company") and NOA SHELACH I.D. No. 27853258, of Mazkeret Moshe 4,
Jerusalem 94316 (the "Employee").

WHEREAS the Company desires to employ the Employee in the position of Vice
President - Project Management (the "Position");

WHEREAS the Employee desires to be employed by the Company and fulfill the
responsibilities of the Position; and

WHEREAS the parties desire to set forth the conditions of employment pursuant to
which the Employee will be employed by the Company;

IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:

1. PREAMBLE

The preamble to this Agreement and any attachments thereto are an integral part
of this Agreement.

2. JOB DESCRIPTION

The duties, responsibilities and authority of the Employee in the Position are
to oversee and manage all pre-clinical and clinical activities of the Company.
The Employee shall report directly to the Chief Executive Officer or his
designee. This description shall serve as a general statement of the duties,
responsibilities and authority of the Employee. Additional duties,
responsibilities and authority may be assigned to the Employee by the Company
from time to time in its discretion.

3. WORKING HOURS

The Employee shall be employed by the Company on a full-time basis, namely for
not less than forty-four (44) hours per week (inclusive of mealtime). The
Employee agrees that his position is considered to be a management position as
defined in the Hours of Work and Rest Law - 1951, which requires a special
measure of personal trust. Accordingly, the provisions of the Hours of Work and
Rest Law - 1951 shall not apply and the Employee shall not be entitled to
receive any additional payment for his work other than those that are set forth
in this Agreement.

4. TERM OF AGREEMENT

This Agreement shall take effect from the first day of the Employee's employment
with the Company as Vice President - Project Management, on December 20, 2000,
and shall remain in effect until one of the parties has given the notice
required by paragraph 6, below.

5. SALARY

     5.1 THE EMPLOYEE'S SALARY SHALL BE AS FOLLOWS:

         5.1.1.The Employee shall receive an annual gross salary of seventy two
               thousand dollars ($72,000) payable in New Israeli Shekels
               according the representative rate of exchange in effect each
               month at the time Company salaries are calculated. The Employee's
               salary shall be paid in twelve equal installments, monthly in
               arrears.

         5.1.2.The salary set forth in paragraph 4.1.1, above, shall be referred
               to as the "Global Salary".

               The Global Salary shall not be subject to, or include any
               generally-applicable increases, whether the statutory cost of
               living increase or any other industry-wide increase applicable as
               the result of collective bargaining agreements or other order of
               the Ministry of Labor and Welfare (such as Tzavei Harhava). By
               signing this Agreement and accepting

                                      -1-

<PAGE>

               employment pursuant to its terms, the Employee represents that
               s/he will not claim any such increase.

         5.1.3.The Employee shall not be entitled to receive any salary or
               payment of any kind other than the Global Salary and other
               payments specifically set forth in this Agreement.

     5.2. OTHER TERMS OF EMPLOYMENT

         5.2.1.EXPENSES

               The Employee shall be entitled, in accordance with the Company's
               standard policy in effect from time to time, to be reimbursed for
               expenses (Hotza'ot Eshel) incurred in Israel and abroad in
               connection with Company business.

         5.2.2.CONTINUING EDUCATION FUND

               The Employee shall be entitled to participate in the Company's
               continuing education fund (Keren Hishtalmut). The Company shall
               contribute an amount equal to five percent (5%) of the Employee's
               Global Salary and shall deduct two and a half percent (2.5%) of
               the Employee's Global Salary and transfer it as the Employee's
               contribution. The Employee consents to the deduction of this
               amount as his contribution to the continuing education fund.
               These contributions will be calculated up to the permissible
               tax-exempt salary ceiling according to the income tax regulations
               in effect from time to time. If the amount of the Company's
               contribution is greater than permitted by those regulations, the
               Employee shall not have the right to receive the excess amount.

         5.2.3.RESERVE DUTY

               The Employee shall be entitled to receive his full Global Salary
               and other payments while performing reserve duty, provided that
               any amount received by the Employee from the I.D.F. or any other
               source (excluding Damei Calcala) is transferred to the Company
               or, in the alternative, an amount equal to that received from the
               I.D.F. or any other source is deducted from the Global Salary
               payable to the Employee.

         5.2.4.ANNUAL LEAVE AND RECREATION PAY (DAMEI HAVRA'A)

            a.   The Employee shall be entitled to twenty (20) working days of
                 paid annual leave each year. The Employee shall not be allowed
                 to accrue more than thirty (30) working days of annual leave
                 except in unusual circumstances and with the permission of the
                 Company.

            b.   Should the Employee's annual leave balance exceed thirty (30)
                 days at the end of any calendar year, the excess number of days
                 shall be paid out in accordance with the provisions of the
                 Annual Leave Law - 1951.

            c.   The Company shall pay the Employee for five (5) days of
                 recreation (damei havra'a) each year in accordance with the
                 normal practice of the Company in effect from time to time.

         5.2.5.SICKNESS AND DISABILITY INSURANCE

            a.   The Employee shall be entitled to the number of days for sick
                 leave permitted by law. Compensation for sick days utilized
                 shall be paid according to his Global Salary only upon the
                 presentation of medical documentation.

            b.   The Employee shall be covered by disability insurance that
                 provides monthly compensation. The cost of such insurance shall
                 not exceed two and half percent (2.5%) of the Employee's Global
                 Salary.

            c.   Notwithstanding the provisions of subparagraph (a), above, the
                 Employee shall not be entitled to receive compensation for sick
                 leave if such compensation is covered by the Employee's
                 disability insurance referred to in subparagraph (b), above.
                 However, should the amounts received by the Employee pursuant
                 to such disability insurance be less than the amount that is
                 properly payable as compensation for the Employee's

                                      -2-

<PAGE>

                 available sick leave, according to the Global Salary, the
                 Company shall pay the difference

            d.   It is understood and agreed the Employee cannot redeem unused
                 sick leave.

            e.   For the avoidance of doubt, it is understood and agreed that
                 the payments made by the Company in consideration of sick leave
                 covers all obligations of the Company pursuant to the Sick
                 Leave Law - 1976.

     5.3. PENSION BENEFITS AND SEVERANCE PAYMENTS

         5.3.1.The Company will pay into a Provident Fund (Kupat Gemel) (in the
               meaning of paragraph 47 of the Income Tax Ordinance) in the form
               of Manager's Insurance or another form according to the
               Employee's choice and the Company's agreement, an amount equal to
               thirteen and one third percent (13 1/3 %) from the monthly Global
               Salary paid to the Employee, and the Employee will pay, on his
               own account, an amount equal to five percent (5%) from that
               Global Salary.

         5.3.2.The Employee agrees that the Company shall be entitled to deduct
               the Employee's contribution (5%) from the Employee's salary.

         5.3.3.For the avoidance of doubt, it is clarified that under no
               circumstance shall the Company's contribution exceed thirteen and
               one third percent (13 1/3 %) of the Global Salary in any one
               month.

         5.3.4.Five percent (5%) of the thirteen and one third percent (13 1/3
               %) that the Company contributes as set forth above and the five
               percent (5%) the Employee contributes, together with linkage and
               interest on the contributions, will be treated as pension
               benefits for the Employee or his survivors.

         5.3.5.The remaining eight and one third percent (8 1/3 %) of the
               Company's contribution, together with linkage and interest on
               that portion, will be utilized to pay severance benefits to the
               Employee or his descendants in the event of the termination of
               his employment with the Company, except in those circumstances
               discussed below.

         5.3.6.In the event that the Employee chooses Manager's Insurance, the
               policy shall belong to the Company as long as it employs the
               Employee and it makes the required payments on the policy.

               The payments made into the Kupat Gemel pursuant to paragraph
               5.3.1, above, shall fulfill the Company's obligation for
               severance payment pursuant to the Severance Compensation Law -
               1963.

         5.3.7.Upon the termination of the Employee's employment, for whatever
               reason, and upon his final departure from the Company, the
               Employee or his descendants shall be entitled to receive the
               ownership of all rights which have accrued on his behalf in the
               Kupat Gemel or the ownership of the Manager's Insurance policy,
               as appropriate and subject to the provisions of paragraphs 6.1
               and 6.2, below.

         5.3.8.In the event that there is a difference in the Employee's favor
               between the amount to which he is entitled to receive pursuant to
               the Severance Compensation Law - 1963 and the severance payment
               amount (including linkage and interest) that is in the Kupat
               Gemel or Manager's Insurance policy, the Company shall pay that
               difference.

         5.3.9.For the avoidance of doubt, it is understood that in the event
               that the severance payment amount (including linkage and
               interest) that is in the Employee's Kupat Gemel or Manager's
               Insurance policy exceeds the amount to which he is entitled to
               receive as severance compensation pursuant to the Severance
               Compensation Law - 1963, the difference shall not be transferred
               to the Employee, including to his pension account, but shall be
               the property of the Company.

                                      -3-

<PAGE>

6. TERMINATION OF EMPLOYMENT

     6.1. Either party may terminate the Employee's employment with the Company
          without cause at any time upon the legally required notice. The
          Company shall have the right, in its sole discretion, to require the
          Employee to continue working for the Company during the notice period.

     6.2. Notwithstanding the foregoing, the Company may terminate the Employee
          immediately and without prior notice in the following circumstances:
          (a) a serious breach of faith; (b) the Employee committed a criminal
          offense connected to his employment with the Company or his place of
          employment; (c) the Employee refused to comply with or violated the
          reasonable instructions of the Board of Directors, the Chief Executive
          Officer, the Chief Financial Officer or their designee.

     6.3. In the event that Employee's employment has been terminated in
          accordance with paragraph 6.2, above, the Employee shall not be
          entitled to receive any severance payment whatsoever, whether from the
          Company or pursuant to paragraph 5.3.7, above.

7.   TAXES AND OTHER PAYMENTS

     7.1. The Company shall not be liable for the payment of taxes or other
          payments for which the Employee is responsible as result of this
          Agreement or any other legal provision, and the Employee shall be
          personally liable for such taxes and other payments.

     7.2. The Employee hereby agrees that the Company deduct from his Global
          Salary the Employee's national insurance fees, income tax and other
          amounts required by law or the terms of this Agreement, and provide
          the Employee with documentation of such deductions.

8.   THE OBLIGATIONS OF THE EMPLOYEE

     8.1. The Employee agrees to devote his time, energy, abilities and
          experience to the performance of his duties, effectively and in good
          faith.

     8.2. During the period of his employment, the Employee shall not be
          employed for pay by any other party other than the Company. The
          Employee must receive the prior written consent of the Company before
          assuming an unpaid position outside the Company.

     8.3. The Employee agrees to immediately inform the Company of any Company
          issue or transaction in which the Employee has a direct or indirect
          personal interest and/or where such issue or transaction could cause a
          conflict of interest for the Employee in the fulfillment of his
          responsibilities as an employee of the Company.

     8.4. The Employee hereby gives irrevocable instructions and permission to
          the Company to deduct from any amounts owed to the Employee by the
          Company, including amounts payable as severance compensation, (a) any
          debt he has or will have to the Company; and/or (b) any amount that
          was wrongfully or mistakenly paid to him by the Company. Any such
          amounts to be deducted shall be calculated in real terms as of the
          date of the deduction, including linkage to cost of living index.

     8.5. The Employee declares that the terms and conditions of his employment
          are personal and confidential and will not be disclosed by him.

     8.6. The Employee declares that he is free to enter into this Agreement and
          that he has no obligations of any kind to any third party that would
          impair this Agreement, either as an employee or an independent
          contractor. The Employee further declares that as long as he remains
          an employee of the Company, he will not incur any such obligations.

     8.7. The Employee agrees to keep confidential (a) all professional,
          scientific, commercial, and business information; and (b) any other
          information or document that comes to the Employee's knowledge in
          connection with the affairs of the Company (collectively, the
          "Confidential

                                      -4-

<PAGE>

          Information"), and agrees not to use or exploit the Confidential
          Information or to disclose it to any third party where such use,
          exploitation or disclosure in not directly related to the affairs of
          the Company, unless the Company gives prior written authorization of
          such disclosure.

     8.8. The Employees agrees that during his employment by the Company and
          thereafter he (a) will not disseminate or otherwise make use of the
          Confidential Information or of other non-public information of which
          he learned while working for the Company, except where such
          dissemination or use is directly related to the affairs of the
          Company; (b) will maintain the confidentiality of the Confidential
          Information; and (c) will not in any way act to injure the reputation
          of the Company or its parent company.

     8.9. For one (1) year after the termination for any reason of his
          employment by the Company, the Employee shall not be employed in any
          business or give any services to a third party that competes with the
          Company or whose activities conflict with the activities of the
          Company, unless the Company has given its prior written consent.

     8.10.Upon termination of his employment, the Employee agrees to assist the
          Company with an orderly transition of his responsibilities and to
          return to the Company any documents, information and/or materials that
          were given to him or which were created by him in connection with his
          employment.

9.   INTELLECTUAL PROPERTY RIGHTS

     9.1. The Employee declares that he is aware that anything that is done by
          him in the Company or in connection with the Company, whether it be an
          invention, a discovery, or the development of an idea or a thing, all
          within the framework of the Company's business (the Development")
          shall belong to and be controlled by the Company.

     9.2. The Company shall have the right to fully utilize and exploit the
          Development, as it sees fit, including changing it, registering part
          or all of it as a patent, whether in Israel or abroad, selling it,
          transferring it to a third party, all without being required to either
          receive the Employee's consent or pay the Employee any additional
          payment for such Development apart from any payment he receives
          pursuant to this Agreement.

     9.3. The Development and any subsequent intellectual property arising
          therefrom shall remain the sole property of the Employer even after
          the Employee's employment terminates for any reason. The termination
          of this Agreement, whether due to its breach or its own terms, shall
          not impair the Company's exclusive rights in the Development.

     9.4. The Employee may not do anything with the Development or any related
          materials without the knowledge and prior consent of the Company. The
          Employee declares that he neither has nor will have any rights in the
          Development or its fruits and that all rights to the Development and
          its fruits shall fully reside in the Company.

     9.5. Even in the event that at the time of the termination of the
          Employee's employment for any reason the Development has not been
          completed, the Employee shall be prohibited from any continued
          activity in connection with the subject of the Development, alone or
          in concert with others, that is not explicitly allowed in writing by
          the Company.

         The Company alone will be the sole owner of the uncompleted Development
         and shall have the sole right to complete the Development or to take
         any other action in connection with the Development.

10.  GENERAL

     10.1.It is agreed that the provisions of this Agreement represent the full
          scope of the agreement between the parties and that neither side shall
          be bound by any promises, declarations, exhibits, agreements or
          obligations, oral or written, that are not included in this Agreement
          prior to its execution. Any changes or amendments to this Agreement
          must be in writing and signed by both parties.

                                      -5-

<PAGE>

     10.2.The parties agree that the appropriate court in Jerusalem, Israel
          shall have exclusive jurisdiction of any legal claim lodged by one
          party against the other arising from the terms of this Agreement.

11.  NOTICES

     11.1.A notice that is sent by registered mail to a party at its address as
          set forth in paragraph 11.2, below, shall be deemed received three (3)
          days after its posting, and the receipt stamped by the post office
          shall represent definitive evidence of the date of mailing.

     11.2.The addresses of the parties for the purposes of this Agreement are:

         KERYX (ISRAEL) LTD.:

         5 Kiryat Mada
         POB 23706
         Jerusalem 91236

         EMPLOYEE:

         Mozkeret Moshe 4
         -----------------

         Jerusalem 94316
         -----------------

IN WITNESS WHEREOF the parties have hereunto set their hands at the place and on
the date first above written.

Keryx (Israel) Ltd.
By

/s/ Morris Laster                           /s/ Noa Shelach
------------------------------              ------------------------------------
                                            Noa Shelach

                                      -6-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]