Exhibit 10.40

AMENDMENT NO. 2 TO CONSULTING AGREEMENT

     THIS AMENDMENT NO. 2 is made as of August 31, 2003 (this “Amendment”), to
the CONSULTING AGREEMENT dated July 23, 1999 (the “Agreement”), by and between
Guilford Pharmaceuticals Inc., a Delaware corporation (the “Company”), and
Solomon H. Synder, M.D. (the “Consultant”)

B a c k g r o u n d :

     The Company and the Consultant are parties to the Agreement, pursuant to
which the Consultant provides consulting services to the Company.

     The parties desire to modify certain terms of the Agreement, as set forth
in this Amendment.

     The modifications to the Agreement set forth in Section 3 of this Amendment
are being made in order to comply with applicable provisions of the
Sarbanes-Oxley Act of 2002.

     In consideration of the foregoing, of the mutual promises of the parties
hereunder, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Consultant and the Company
hereby agree as follows:

     1. Capitalized terms used in this Amendment without definition shall have
the meanings given to such terms in the Agreement.

     2. Section 2(a) of the Agreement is amended by adding the following clauses
to the end of Section 2(a):

(vi)   September 2003 to August 2004: $20,833.33 per month (annualized rate:
$250,000 per annum);   (vii)   September 2004 to August 2005: $21,666.66 per
month (annualized rate: $260,000 per annum); and   (viii)   September 2005 to
August 2006: $22,500 per month (annualized rate: $270,000 per annum).

 

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     3. Section 3 of the Agreement is deleted in its entirety. Notwithstanding
the deletion of Section 3 and for the avoidance of doubt, the Split Dollar Life
Insurance Agreement dated October 10, 2000, by and between the Company and
Stephen Kastenberg, Trustee under the Snyder Family 1999, Irrevocable Trust
Agreement, in respect of the Policy, shall not be affected by this Amendment.

     4. The first sentence of Section 5 of the Agreement shall be deleted in its
entirety and in its place the following shall be inserted:

     “The term of this Agreement shall commence on July 23, 1999 and shall
continue until and including August 31, 2006, unless further extended by mutual
written agreement of the parties hereto or unless earlier terminated as provided
below (the “Term”).”

     5. Except as specifically provided in this Amendment and as the context of
this Amendment otherwise may require to give effect to the intent and purposes
of this Amendment, the Agreement shall remain in full force and effect without
any other amendments or modifications.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment
No. 2 as of the date and year first above written.

     GUILFORD PHARMACEUTICALS INC.

         
By:
       

  /s/ Craig R. Smith, M.D.

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Name:
  Craig R. Smith, M.D.    
Title:
  President and Chief Executive Officer              
 
        /s/ Solomon H. Snyder, M.D.

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    Solomon H. Snyder, M.D.

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