Exhibit 10.7

                                                       Personal and Confidential
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                                 INTERNAL MEMO
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To:   Barry Cohen                  From:  Martin Burg
Date: August 15, 2002
Subject: Salary Adjustments

Memo:

I agree to participate in the program of Company-wide salary cuts. I understand
and agree to the reduction of my gross monthly salary by 10%. Notwithstanding
the foregoing, I understand that any contractual severance payments due me in
the event of my termination without cause shall be based upon my pre-cut salary.

Employee name:  Barry Cohen

Employee signature: /s/ Barry Cohen

Dear Employee,

Keryx is very appreciative of your agreement to take a reduction in monthly
salary in light of the tough financial circumstances in the economy at present.
We hope you understand the need to cut back at present in order to help grow a
strong, healthy and efficient Company in the future, and we look forward to
growing this Company With your help.

Yours sincerely,


/s/ Ira Weinstein
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Ira Weinstein
COO
Keryx Biopharmaceuticals
Date: August 15, 2002