Document:

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                                                                     Exhibit 4.4

                               ALLAIRE CORPORATION

                            2000 STOCK INCENTIVE PLAN

SECTION 1.  GENERAL PURPOSE OF THE PLAN; DEFINITIONS

         The name of the plan is the Allaire Corporation 2000 Stock Incentive
Plan (the "Plan"). The purpose of the Plan is to encourage and enable officers,
directors, and employees of Allaire Corporation (the "Company") and its
Subsidiaries and other persons to acquire a proprietary interest in the Company.
It is anticipated that providing such persons with a direct stake in the
Company's welfare will assure a closer identification of their interests with
those of the Company and its shareholders, thereby stimulating their efforts on
the Company's behalf and strengthening their desire to remain with the Company.

         The following terms shall be defined as set forth below:

         "Award" or "Awards", except where referring to a particular category of
grant under the Plan, shall include Incentive Stock Options, Non-Statutory Stock
Options, Restricted Stock Awards, Unrestricted Stock Awards, Performance Share
Awards and Stock Appreciation Rights.

         "Board" means the Board of Directors of the Company.

         "Cause" means (i) any material breach by the participant of any
agreement to which the participant and the Company are both parties, and (ii)
any act or omission justifying termination of the participant's employment for
cause, as determined by the Committee.

         "Change of Control" shall have the meaning set forth in Section 15.

         "Code" means the Internal Revenue Code of 1986, as amended, and any
successor Code, and related rules, regulations and interpretations.

         "Conditioned Stock Award" means an Award granted pursuant to Section 6.

         "Committee" shall have the meaning set forth in Section 2.

         "Disability" means disability as set forth in Section 22(e)(3) of the
Code.

         "Effective Date" means the date on which the Plan is approved by the
Board of Directors as set forth in Section 17.

         "Eligible Person" shall have the meaning set forth in Section 4.
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         "Fair Market Value" on any given date means the closing price per share
of the Stock on such date as reported by a nationally recognized stock exchange,
or, if the Stock is not listed on such an exchange, as reported by NASDAQ, or,
if the Stock is not quoted on NASDAQ, the fair market value of the Stock as
determined by the Committee.

         "Incentive Stock Option" means any Stock Option designated and
qualified as an "incentive stock option" as defined in Section 422 of the Code.

         "Non-Statutory Stock Option" means any Stock Option that is not an
Incentive Stock Option.

         "Normal Retirement" means retirement from active employment with the
Company and its Subsidiaries in accordance with the retirement policies of the
Company and its Subsidiaries then in effect.

         "Outside Director" means any director who (i) is not an employee of the
Company or of any "affiliated group," as such term is defined in Section 1504(a)
of the Code, which includes the Company (an "Affiliate"), (ii) is not a former
employee of the Company or any Affiliate who is receiving compensation for prior
services (other than benefits under a tax-qualified retirement plan) during the
Company's or any Affiliate's taxable year, (iii) has not been an officer of the
Company or any Affiliate and (iv) does not receive remuneration from the Company
or any Affiliate, either directly or indirectly, in any capacity other than as a
director. "Outside Director" shall be determined in accordance with Section
162(m) of the Code and the Treasury regulations issued thereunder.

         "Option" or "Stock Option" means any option to purchase shares of Stock
granted pursuant to Section 5.

         "Performance Share Award" means an Award granted pursuant to Section 8.

         "Stock" means the Common Stock, $.01 par value per share, of the
Company, subject to adjustments pursuant to Section 3.

         "Stock Appreciation Right" means an Award granted pursuant to
Section 9.

         "Subsidiary" means a subsidiary as defined in Section 424 of the Code.

         "Unrestricted Stock Award" means Awards granted pursuant to Section 7.

SECTION 2. ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT PARTICIPANTS
           AND DETERMINE AWARDS.

         (a) Committee. The Plan shall be administered by a committee of the
Board (the "Committee") consisting of not less than two (2) Outside Directors,
but the authority and validity of any act taken or not taken by the Committee
shall not be affected if any person administering the Plan is not an "Outside
Director." Except as specifically reserved to the Board under the

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terms of the Plan, the Committee shall have full and final authority to operate,
manage and administer the Plan on behalf of the Company. Action by the Committee
shall require the affirmative vote of a majority of all members thereof.

         (b) Powers of Committee. The Committee shall have the power and
authority to grant and modify Awards consistent with the terms of the Plan,
including the power and authority:

                  (i) to select the persons to whom Awards may from time to time
be granted;

                  (ii) to determine the time or times of grant, and the extent,
if any, of Incentive Stock Options, Non-Statutory Stock Options, Restricted
Stock, Unrestricted Stock, Performance Shares and Stock Appreciation Rights, or
any combination of the foregoing, granted to any one or more participants;

                  (iii) to determine the number of shares to be covered by any
Award;

                  (iv) to determine and modify the terms and conditions,
including restrictions, not inconsistent with the terms of the Plan, of any
Award, which terms and conditions may differ among individual Awards and
participants, and to approve the form of written instruments evidencing the
Awards; provided, however, that no such action shall adversely affect rights
under any outstanding Award without the participant's consent;

                  (v) to accelerate the exercisability or vesting of all or any
portion of any Award;

                  (vi) subject to the provisions of Section 5(a)(ii), to extend
the period in which any outstanding Stock Option or Stock Appreciation Right may
be exercised;

                  (vii) to determine whether, to what extent, and under what
circumstances Stock and other amounts payable with respect to an Award shall be
deferred either automatically or at the election of the participant and whether
and to what extent the Company shall pay or credit amounts equal to interest (at
rates determined by the Committee) or dividends or deemed dividends on such
deferrals; and

                  (viii) to adopt, alter and repeal such rules, guidelines and
practices for administration of the Plan and for its own acts and proceedings as
it shall deem advisable; to interpret the terms and provisions of the Plan and
any Award (including related written instruments); to make all determinations it
deems advisable for the administration of the Plan; to decide all disputes
arising in connection with the Plan; and to otherwise supervise the
administration of the Plan.

         All decisions and interpretations of the Committee shall be binding on
all persons, including the Company and Plan participants.

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SECTION 3. SHARES ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION.

         (a) Shares Issuable. The maximum number of shares of Stock with respect
to which Awards (including Stock Appreciation Rights) may be granted under the
Plan shall be four million (4,000,000). For purposes of this limitation, the
shares of Stock underlying any Awards which are forfeited, cancelled, reacquired
by the Company or otherwise terminated (other than by exercise) shall be added
back to the shares of Stock with respect to which Awards may be granted under
the Plan. Shares issued under the Plan may be authorized but unissued shares or
shares reacquired by the Company.

         (b) Limitation on Awards. In no event may any Plan participant be
granted Awards (including Stock Appreciation Rights) with respect to more than
five-hundred thousand (500,000) shares of Stock in any calendar year. The number
of shares of Stock relating to an Award granted to a Plan participant in a
calendar year that is subsequently forfeited, cancelled or otherwise terminated
shall continue to count toward the foregoing limitation in such calendar year.
In addition, if the exercise price of an Award is subsequently reduced, the
transaction shall be deemed a cancellation of the original Award and the grant
of a new one so that both transactions shall count toward the maximum shares
issuable in the calendar year of each respective transaction.

         (c) Stock Dividends, Mergers, etc. In the event that after approval of
the Plan by the stockholders of the Company in accordance with Section 17, the
Company effects a stock dividend, stock split or similar change in
capitalization affecting the Stock, the Committee shall make appropriate
adjustments in (i) the number and kind of shares of stock or securities with
respect to which Awards may thereafter be granted (including without limitation
the limitations set forth in Sections 3(a) and (b) above), (ii) the number and
kind of shares remaining subject to outstanding Awards, and (iii) the option or
purchase price in respect of such shares. In the event of any merger,
consolidation, dissolution or liquidation of the Company, the Committee in its
sole discretion may, as to any outstanding Awards, make such substitution or
adjustment in the aggregate number of shares reserved for issuance under the
Plan and in the number and purchase price (if any) of shares subject to such
Awards as it may determine and as may be permitted by the terms of such
transaction, or accelerate, amend or terminate such Awards upon such terms and
conditions as it shall provide (which, in the case of the termination of the
vested portion of any Award, shall require payment or other consideration which
the Committee deems equitable in the circumstances), subject, however, to the
provisions of Section 15.

         (d) Substitute Awards. The Committee may grant Awards under the Plan in
substitution for stock and stock based awards held by employees of another
corporation who concurrently become employees of the Company or a Subsidiary as
the result of a merger or consolidation of the employing corporation with the
Company or a Subsidiary or the acquisition by the Company or a Subsidiary of
property or stock of the employing corporation. The Committee may direct that
the substitute awards be granted on such terms and conditions as the Committee
considers appropriate in the circumstances. Shares which may be delivered under

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such substitute awards may be in addition to the maximum number of shares
provided for in Section 3(a).

SECTION 4. ELIGIBILITY.

         Awards may be granted to officers, directors, and employees of, and
consultants and advisers to, the Company or its Subsidiaries ("Eligible
Persons").

SECTION 5. STOCK OPTIONS.

         The Committee may grant to Eligible Persons options to purchase stock.

         Any Stock Option granted under the Plan shall be in such form as the
Committee may from time to time approve.

         Stock Options granted under the Plan may be either Incentive Stock
Options (subject to compliance with applicable law) or Non-Statutory Stock
Options. Unless otherwise so designated, an Option shall be a Non-Statutory
Stock Option. To the extent that any option does not qualify as an Incentive
Stock Option, it shall constitute a Non-Statutory Stock Option.

         No Incentive Stock Option shall be granted under the Plan after the
tenth anniversary of the date of adoption of the Plan by the Board.

         The Committee in its discretion may determine the effective date of
Stock Options, provided, however, that grants of Incentive Stock Options shall
be made only to persons who are, on the effective date of the grant, employees
of the Company or any Subsidiary. Stock Options granted pursuant to this Section
5(a) shall be subject to the following terms and conditions and the terms and
conditions of Section 13 and shall contain such additional terms and conditions,
not inconsistent with the terms of the Plan, as the Committee shall deem
desirable.

               (a) Exercise Price. The exercise price per share for the Stock
covered by a Stock Option granted pursuant to this Section 5(a) shall be
determined by the Committee at the time of grant but shall be, in the case of
Incentive Stock Options, not less than one hundred percent (100%) of Fair Market
Value on the date of grant. If an employee owns or is deemed to own (by reason
of the attribution rules applicable under Section 424(d) of the Code) more than
ten percent (10%) of the combined voting power of all classes of stock of the
Company or any Subsidiary or parent corporation and an Incentive Stock Option is
granted to such employee, the option price shall be not less than one hundred
ten percent (110%) of Fair Market Value on the grant date.

               (b) Option Term. The term of each Stock Option shall be fixed by
the Committee, but no Incentive Stock Option shall be exercisable more than ten
(10) years after the date the option is granted. If an employee owns or is
deemed to own (by reason of the attribution rules of Section 424(d) of the Code)
more than ten percent (10%) of the combined voting power of all classes of stock
of the Company or any Subsidiary or parent corporation and an Incentive

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Stock Option is granted to such employee, the term of such option shall be no
more than five (5) years from the date of grant.

               (c) Exercisability; Rights of a Shareholder. Stock Options shall
become vested and exercisable at such time or times, whether or not in
installments, as shall be determined by the Committee at or after the grant
date. The Committee may at any time accelerate the exercisability of all or any
portion of any Stock Option. An optionee shall have the rights of a shareholder
only as to shares acquired upon the exercise of a Stock Option and not as to
unexercised Stock Options.

               (d) Method of Exercise. Stock Options may be exercised in whole
or in part, by delivering written notice of exercise to the Company, specifying
the number of shares to be purchased. Payment of the purchase price may be made
by one or more of the following methods:

                    (i) In cash, by certified or bank check or other instrument
acceptable to the Committee;

                    (ii) If permitted by the Committee, in its discretion, in
the form of shares of Stock that are not then subject to restrictions and that
have been owned by the optionee for a period of at least six months. Such
surrendered shares shall be valued at Fair Market Value on the exercise date; or

                    (iii) By the optionee delivering to the Company a properly
executed exercise notice together with irrevocable instructions to a broker to
promptly deliver to the Company cash or a check payable and acceptable to the
Company to pay the purchase price; provided that in the event the optionee
chooses to pay the purchase price as so provided, the optionee and the broker
shall comply with such procedures and enter into such agreements of indemnity
and other agreements as the Committee shall prescribe as a condition of such
payment procedure. The Company need not act upon such exercise notice until the
Company receives full payment of the exercise price; or

                    (iv) By any other means (including, without limitation, by
delivery of a promissory note of the optionee payable on such terms as are
specified by the Committee) which the Committee determines are consistent with
the purpose of the Plan and with applicable laws and regulations.

         The delivery of certificates representing shares of Stock to be
purchased pursuant to the exercise of a Stock Option will be contingent upon
receipt from the Optionee (or a purchaser acting in his stead in accordance with
the provisions of the Stock Option) by the Company of the full purchase price
for such shares and the fulfillment of any other requirements contained in the
Stock Option or imposed by applicable law.

               (e) Non-transferability of Options. Except as the Committee may
provide with respect to a Non-Statutory Stock Option, no Stock Option shall be
transferable other than by will

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or by the laws of descent and distribution and all Stock Options shall be
exercisable, during the optionee's lifetime, only by the optionee.

               (f) Annual Limit on Incentive Stock Options. To the extent
required for "incentive stock option" treatment under Section 422 of the Code,
the aggregate Fair Market Value (determined as of the time of grant) of the
Stock with respect to which incentive stock options granted under this Plan and
any other plan of the Company or its Subsidiaries become exercisable for the
first time by an optionee during any calendar year shall not exceed $100,000.

               (g) Form of Settlement. Shares of Stock issued upon exercise of a
Stock Option shall be free of all restrictions under the Plan, except as
otherwise provided in this Plan.

     SECTION 6. RESTRICTED STOCK AWARDS.

     (a) Nature of Restricted Stock Award. The Committee in its discretion may
grant Restricted Stock Awards to any Eligible Person, entitling the recipient to
acquire, for a purchase price determined by the Committee, shares of Stock
subject to such restrictions and conditions as the Committee may determine at
the time of grant ("Restricted Stock"), including continued employment and/or
achievement of pre-established performance goals and objectives.

     (b) Acceptance of Award. A participant who is granted a Restricted Stock
Award shall have no rights with respect to such Award unless the participant
shall have accepted the Award within sixty (60) days (or such shorter date as
the Committee may specify) following the award date by making payment to the
Company of the specified purchase price, of the shares covered by the Award and
by executing and delivering to the Company a written instrument that sets forth
the terms and conditions applicable to the Restricted Stock in such form as the
Committee shall determine.

     (c) Rights as a Shareholder. Upon complying with Section 6(b) above, a
participant shall have all the rights of a shareholder with respect to the
Restricted Stock, including voting and dividend rights, subject to
non-transferability restrictions and Company repurchase or forfeiture rights
described in this Section 6 and subject to such other conditions contained in
the written instrument evidencing the Restricted Award. Unless the Committee
shall otherwise determine, certificates evidencing shares of Restricted Stock
shall remain in the possession of the Company until such shares are vested as
provided in Section 6(e) below.

     (d) Restrictions. Shares of Restricted Stock may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of except as
specifically provided herein. In the event of termination of employment by the
Company and its Subsidiaries for any reason (including death, Disability, Normal
Retirement and for Cause), the Company shall have the right, at the discretion
of the Committee, to repurchase shares of Restricted Stock with respect to which
conditions have not lapsed at their purchase price, or to require forfeiture of
such shares to the Company if acquired at no cost, from the participant or the
participant's legal representative. The Company must exercise such right of
repurchase or forfeiture within ninety (90) days following such termination of
employment (unless otherwise specified in the written instrument evidencing the
Restricted Stock Award).

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         (e) Vesting of Restricted Stock. The Committee at the time of grant
shall specify the date or dates and/or the attainment of pre-established
performance goals, objectives and other conditions on which the
non-transferability of the Restricted Stock and the Company's right of
repurchase or forfeiture shall lapse. Subsequent to such date or dates and/or
the attainment of such preestablished performance goals, objectives and other
conditions, the shares on which all restrictions have lapsed shall no longer be
Restricted Stock and shall be deemed "vested." The Committee at any time may
accelerate such date or dates and otherwise waive or, subject to Section 13,
amend any conditions of the Award.

         (f) Waiver, Deferral and Reinvestment of Dividends. The written
instrument evidencing the Restricted Stock Award may require or permit the
immediate payment, waiver, deferral or investment of dividends paid on the
Restricted Stock.

SECTION 7. UNRESTRICTED STOCK AWARDS.

         (a) Grant or Sale of Unrestricted Stock. The Committee in its
discretion may grant or sell to any Eligible Person shares of Stock free of any
restrictions under the Plan ("Unrestricted Stock") at a purchase price
determined by the Committee. Shares of Unrestricted Stock may be granted or sold
as described in the preceding sentence in respect of past services or other
valid consideration.

         (b) Restrictions on Transfers. The right to receive unrestricted Stock
may not be sold, assigned, transferred, pledged or otherwise encumbered, other
than by will or the laws of descent and distribution.

SECTION 8. PERFORMANCE SHARE AWARDS.

         Nature of Performance Shares. A Performance Share Award is an award
entitling the recipient to acquire shares of Stock upon the attainment of
specified performance goals. The Committee may make Performance Share Awards
independent of or in connection with the granting of any other Award under the
Plan. Performance Share Awards may be granted under the Plan to any Eligible
Person. The Committee in its discretion shall determine whether and to whom
Performance Share Awards shall be made, the performance goals applicable under
each such Award, the periods during which performance is to be measured, and all
other limitations and conditions applicable to the awarded Performance Shares.

SECTION 9. STOCK APPRECIATION RIGHTS

         The Committee in its discretion may grant Stock Appreciation Rights to
any Eligible Person (i) alone, or (ii) simultaneously with the grant of a Stock
Option and in conjunction therewith or in the alternative thereto. A Stock
Appreciation Right shall entitle the participant upon exercise thereof to
receive from the Company, upon written request to the Company at its principal
offices (the "Request"), a number of shares of Stock (with or without
restrictions as to substantial risk of forfeiture and transferability, as
determined by the Committee in its sole discretion), an amount of cash, or any
combination of Stock and cash, as specified in the Request

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(but subject to the approval of the Committee in its sole discretion, at any
time up to and including the time of payment, as to the making of any cash
payment), having an aggregate Fair Market Value equal to the product of (i) the
excess of Fair Market Value, on the date of such Request, over the exercise
price per share of Stock specified in such Stock Appreciation Right or its
related Option, multiplied by (ii) the number of shares of Stock for which such
Stock Appreciation Right shall be exercised. Notwithstanding the foregoing, the
Committee may specify at the time of grant of any Stock Appreciation Right that
such Stock Appreciation Right may be exercisable solely for cash and not for
Stock.

SECTION 10. TERMINATION OF STOCK OPTIONS AND STOCK APPRECIATION RIGHTS.

         (a) Incentive Stock Options:

               (i) Termination by Death. If any participant's employment by the
Company and its Subsidiaries terminates by reason of death, any Incentive Stock
Option owned by such participant may thereafter be exercised to the extent
exercisable at the date of death, by the legal representative or legatee of the
participant, for a period of two (2) years (or such longer period as the
Committee shall specify at any time) from the date of death, or until the
expiration of the stated term of the Incentive Stock Option, if earlier.

               (ii) Termination by Reason of Disability or Normal Retirement.

               (A) Any Incentive Stock Option held by a participant whose
employment by the Company and its Subsidiaries has terminated by reason of
Disability may thereafter be exercised, to the extent it was exercisable at the
time of such termination, for a period of one (1) year (or such longer period as
the Committee shall specify at any time) from the date of such termination of
employment, or until the expiration of the stated term of the Option, if
earlier.

               (B) Any Incentive Stock Option held by a participant whose
employment by the Company and its Subsidiaries has terminated by reason of
Normal Retirement may thereafter be exercised, to the extent it was exercisable
at the time of such termination, for a period of ninety (90) days (or such
longer period as the Committee shall specify at any time) from the date of such
termination of employment, or until the expiration of the stated term of the
Option, if earlier.

               (C) The Committee shall have sole authority and discretion to
determine whether a participant's employment has been terminated by reason of
Disability or Normal Retirement.

               (D) Except as otherwise provided by the Committee at the time of
grant, the death of a participant during a period provided in this Section 10(b)
for the exercise of an Incentive Stock Option shall extend such period for two
(2) years from the date of death, subject to termination on the expiration of
the stated term of the Option, if earlier.

               (iii) Termination for Cause. If any participant's employment by
the Company and its Subsidiaries has been terminated for Cause, any Incentive
Stock Option held by such

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participant shall immediately terminate and be of no further force and effect;
provided, however, that the Committee may, in its sole discretion, provide that
such Option can be exercised for a period of up to thirty (30) days from the
date of termination of employment or until the expiration of the stated term of
the Option, if earlier.

               (iv) Other Termination. Unless otherwise determined by the
Committee, if a participant's employment by the Company and its Subsidiaries
terminates for any reason other than death, Disability, Normal Retirement or for
Cause, any Incentive Stock Option held by such participant may thereafter be
exercised, to the extent it was exercisable on the date of termination of
employment, for ninety (90) days (or such longer period as the Committee shall
specify at any time) from the date of termination of employment or until the
expiration of the stated term of the Option, if earlier.

         (b) Non-Statutory Stock Options and Stock Appreciation Rights. Any
Non-Statutory Stock Option or Stock Appreciation Right granted under the Plan
shall contain such terms and conditions with respect to its termination as the
Committee, in its discretion, may from time to time determine.

SECTION 11. TAX WITHHOLDING.

         (a) Payment by Participant. Each participant shall, no later than the
date as of which the value of an Award or of any Stock or other amounts received
thereunder first becomes includable in the gross income of the participant for
Federal income tax purposes, pay to the Company, or make arrangements
satisfactory to the Committee regarding payment of any Federal, state, local
and/or payroll taxes of any kind required by law to be withheld with respect to
such income. The Company and its Subsidiaries shall, to the extent permitted by
law, have the right to deduct any such taxes from any payment of any kind
otherwise due to the participant.

         (b) Payment in Shares. A Participant may elect, with the consent of the
Committee, to have such tax withholding obligation satisfied, in whole or in
part, by (i) authorizing the Company to withhold from shares of Stock to be
issued pursuant to an Award a number of shares with an aggregate Fair Market
Value (as of the date the withholding is effected) that would satisfy the
minimum withholding amount due with respect to such Award, or (ii) transferring
to the Company shares of Stock owned by the participant for a period of at least
six months and with an aggregate Fair Market Value (as of the date the
withholding is effected) that would satisfy the minimum withholding amount due.

SECTION 12. TRANSFER, LEAVE OF ABSENCE, ETC.

     For purposes of the Plan, the following events shall not be deemed a
termination of employment:

         (a) a transfer to the employment of the Company from a Subsidiary or
from the Company to a Subsidiary, or from one Subsidiary to another;

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         (b) an approved leave of absence for military service or sickness, or
for any other purpose approved by the Company, if the employee's right to
re-employment is guaranteed either by a statute or by contract or under the
policy pursuant to which the leave of absence was granted or if the Committee
otherwise so provides in writing.

SECTION 13. AMENDMENTS AND TERMINATION.

     The Board may at any time amend or discontinue the Plan and the Committee
may at any time amend or cancel any outstanding Award (or provide substitute
Awards at the same or reduced exercise or purchase price or with no exercise or
purchase price, but such price, if any, must satisfy the requirements which
would apply to the substitute or amended Award if it were then initially granted
under this Plan) for the purpose of satisfying changes in law or for any other
lawful purpose, but no such action shall adversely affect rights under any
outstanding Award without the holder's consent.

SECTION 14. STATUS OF PLAN.

     With respect to the portion of any Award which has not been exercised and
any payments in cash, Stock or other consideration not received by a
participant, a participant shall have no rights greater than those of a general
creditor of the Company unless the Committee shall otherwise expressly determine
in connection with any Award or Awards. In its sole discretion, the Committee
may authorize the creation of trusts or other arrangements to meet the Company's
obligations to deliver Stock or make payments with respect to Awards hereunder,
provided that the existence of such trusts or other arrangements is consistent
with the provision of the foregoing sentence.

SECTION 15. CHANGE OF CONTROL PROVISIONS.

         (a) Upon the occurrence of a Change of Control as defined in this
Section 15:

               (i) subject to the provisions of clause (iii) below, after the
effective date of such Change of Control, each holder of an outstanding Stock
Option, Restricted Stock Award, Performance Share Award or Stock Appreciation
Right shall be entitled, upon exercise of such Award, to receive, in lieu of
shares of Stock (or consideration based upon the Fair Market Value of Stock),
shares of such stock or other securities, cash or property (or consideration
based upon shares of such stock or other securities, cash or property) as the
holders of shares of Stock received in connection with the Change of Control;

               (ii) the Committee may accelerate the time for exercise of, and
waive all conditions and restrictions on, each unexercised and unexpired Stock
Option, Restricted Stock Award, Performance Share Award and Stock Appreciation
Right, effective upon a date prior or subsequent to the effective date of such
Change of Control, specified by the Committee; or

               (iii) each outstanding Stock Option, Restricted Stock Award,
Performance Share Award and Stock Appreciation Right may be cancelled by the
Committee as of the effective date of any such Change of Control provided that
(x) notice of such cancellation shall

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be given to each holder of such an Award and (y) each holder of such an Award
shall have the right to exercise such Award to the extent that the same is then
exercisable or, in full, if the Committee shall have accelerated the time for
exercise of all such unexercised and unexpired Awards, during the thirty (30)
day period preceding the effective date of such Change of Control.

         (b) "Change of Control" shall mean the occurrence of any one of the
following events:

               (i) any "person" (as such term is used in Sections 13(d) and
14(d)(2) of the Act) becomes a "beneficial owner" (as such term is defined in
Rule 13d-3 promulgated under the Act) (other than the Company, any trustee or
other fiduciary holding securities under an employee benefit plan of the
Company, or any corporation owned, directly or indirectly, by the stockholders
of the Company in substantially the same proportions as their ownership of stock
of the Company), directly or indirectly, of securities of the Company
representing fifty percent (50%) or more of the combined voting power of the
Company's then outstanding securities; or

               (ii) the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation or other entity, other
than a merger or consolidation which would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity) more than sixty-five percent (65%) of the combined voting
power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation; or

               (iii) the stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all of the Company's assets.

SECTION 16. GENERAL PROVISIONS.

         (a) No Distribution; Compliance with Legal Requirements. The Committee
may require each person acquiring shares pursuant to an Award to represent to
and agree with the Company in writing that such person is acquiring the shares
without a view to distribution thereof.

         No shares of Stock shall be issued pursuant to an Award until all
applicable securities laws and other legal and stock exchange requirements have
been satisfied. The Committee may require the placing of such stop orders and
restrictive legends on certificates for Stock and Awards as it deems
appropriate.

         (b) Delivery of Stock Certificates. Delivery of stock certificates to
participants under this Plan shall be deemed effected for all purposes when the
Company or a stock transfer agent of the Company shall have delivered such
certificates in the United States mail, addressed to the participant, at the
participant's last known address on file with the Company.

                                      -12-
<PAGE>   13

         (c) Other Compensation Arrangements; No Employment Rights. Nothing
contained in this Plan shall prevent the Board from adopting other or additional
compensation arrangements, including trusts, subject to stockholder approval if
such approval is required; and such arrangements may be either generally
applicable or applicable only in specific cases. The adoption of the Plan or any
Award under the Plan does not confer upon any employee any right to continued
employment with the Company or any Subsidiary.

SECTION 17. EFFECTIVE DATE OF PLAN.

         The Plan shall become effective upon approval by the Company's Board of
Directors, however no Incentive Stock Option may be granted under the Plan
unless the stockholders of the Company have approved the plan within twelve (12)
months of the Effective Date.

SECTION 18. GOVERNING LAW.

         This Plan shall be governed by, and construed and enforced in
accordance with, the substantive laws of the State of Delaware without regard to
its principles of conflicts of laws.

                                      * * *

                                      -13-<PAGE>   1
                                                                    Exhibit 10.3

                         EXECUTIVE EMPLOYMENT AGREEMENT
                           FOR JOHN D. IULIUCCI, PH.D.

EMPLOYMENT AGREEMENT (the "Agreement") made as of May 1, 1992 between ARIAD
Pharmaceuticals, Inc., a Delaware corporation (the "Company"), and John D.
Iuliucci, Ph.D. (the "Employee").

1.     EMPLOYMENT, DUTIES AND ACCEPTANCE.

       1.1    The Company hereby employs the Employee, for the Term (as
              hereinafter defined), to render full-time services to the Company,
              and to perform such duties as he shall reasonably be directed by
              the Chief Executive Officer of the Company to perform. The
              Employee's title shall be designated by the Chief Executive
              Officer and initially shall be Vice President, Preclinical
              Development.

       1.2    The Employee hereby accepts such employment and agrees to render
              the services described above.

       1.3    The principal place of employment of the Employee hereunder shall
              be in the greater Boston, Massachusetts area, or other locations
              reasonably acceptable to the Employee. The Employee acknowledges
              that for limited periods of time he may be required to provide
              services to the Company outside of the Boston, Massachusetts area.

       1.4    Notwithstanding anything to the contrary herein, although the
              Employee shall provide services as a full time employee, it is
              understood that the Employee may

              (a)   have an academic appointment and (b) participate in
                    professional activities (collectively, "Permitted
                    Activities"); PROVIDED, HOWEVER, that such Permitted
                    Activities do not interfere with the Employee's duties to
                    the Company.

2.     TERM OF EMPLOYMENT.

       The term of the Employee's employment under this Agreement (the "Term")
       shall commence June 15, 1992 (the "Effective Date") and shall end on
       December 31, 1995 unless sooner terminated pursuant to Section 4 or 5 of
       this Agreement; PROVIDED that this Agreement shall automatically be
       renewed for successive one-year terms (the Term and, if the period of
       employment is so renewed, such additional period (s) of employment are
       collectively referred to herein as the "Term") unless terminated by
       written notice given by either party to the other at least 90 days prior
       to the end of the applicable Term.

3.     COMPENSATION.
<PAGE>   2
       3.1    As full compensation for all services to be rendered pursuant to
              this Agreement, the Company agrees to pay the Employee, during the
              Term, a salary at the fixed rate of $135,000 per annum during the
              first year of the Term and increased each year thereafter, by
              amounts, if any, to be determined by the Board of Directors of the
              Company (the "Board"), in its sole discretion, payable in equal
              semimonthly installments, less such deductions or amounts to be
              withheld as shall be required by applicable law and regulations.

       3.2    Each year the Company shall pay the Employee a bonus of up to 30%
              of base salary, which bonus shall be determined annually by the
              Board. The bonus, if any, may be paid in the form of stock
              options, stock awards or cash, as determined by the Board.

       3.3    The Company shall pay or reimburse the Employee for all reasonable
              expenses actually incurred or paid by him during the Term in the
              performance of his services under this Agreement, upon
              presentation of expense statements or vouchers or such other
              supporting information as it may require.

       3.4    The Employee shall be eligible under any incentive plan, stock
              award plan, bonus, participation or extra compensation plan,
              pension, group health, disability and life insurance or other
              so-called "fringe" benefits which the Company provides for its
              executives. All options and stock awards granted to the Employee
              shall be subject to a vesting schedule which shall be determined
              by the Incentive Committee of the Board. The options and awards,
              if any, to be granted to the Employee shall also be subject to the
              terms of a stock option plan and certificate and stock award plan
              and certificate.

       3.5    The Company will grant the Employee an option to purchase 135,000
              shares of the Company's Common Stock at a purchase price of $2.00
              per share (the "Options"). The Employee agrees that all such
              Options shall be subject to a four-year vesting schedule, vesting
              in equal increments of 25% on each anniversary of the Effective
              Date. Any unvested Options shall be forfeited to the Company in
              the event (a) this Agreement is terminated by the Company for
              cause pursuant to Section 4 herein, or (b) either party elects not
              to renew this Agreement pursuant to Section 2 herein.

       3.6    The Options and any common stock purchased upon the exercise of
              any vested Options ("Option Stock") shall not, without the
              Company's prior written consent, be transferable until the earlier
              of (a) March 31, 1996 and (b) one year after the Company's initial
              public offering; PROVIDED, HOWEVER, that in the event of the death
              of the

<PAGE>   3

              Employee, any vested Options and any Option Stock shall be
              transferable to the legal representatives, legatees and
              distributees of the Employee, if such persons agree to be bound by
              the same restrictions applicable to such Options and Option Stock.
              In the event that the Company commences an initial public
              offering, the Employee will execute "lock-up" agreements with
              respect to the Option Stock and all other equity interests in the
              Company held by the Employee providing that the Employee will not
              sell Option Stock or any other equity interests for a period of
              one year after the closing of the initial public offering. If the
              Company elects, the certificates representing the Option Stock
              will be transferred to the Company to be held by the Company
              pursuant to an escrow agreement consistent with the terms set
              forth in this Section 3.6. This Section 3.6 shall survive the
              termination of this Agreement.

4.     TERMINATION BY THE COMPANY.

       The Company may terminate this Agreement, if any one or more of the
       following shall occur:

       (a)    The Employee shall die during the Term; PROVIDED, HOWEVER, the
              Employee's legal representatives shall be entitled to receive the
              compensation provided for hereunder to the last day of the month
              in which his death occurs.

       (b)    The Employee shall become physically or mentally disabled, whether
              totally or partially, so that he is unable substantially to
              perform his services hereunder for (i) a period of 180 consecutive
              days, or (ii) for shorter periods aggregating 180 days during any
              twelve month period.

       (c)    The Employee acts, or fails to act, in a manner that provides
              Cause for termination. For purposes of this Agreement, the term
              "Cause" means (i) the failure by the Employee to perform any of
              his material duties hereunder, (ii) the conviction of the Employee
              of any felony involving moral turpitude, (iii) any acts of fraud
              or embezzlement involving the Company or any of its Affiliates,
              (iv) material violation of any federal, state or local law, or any
              administrative regulation related to the business of the Company,
              (v) a conflict of interest, (vi) conduct that could reasonably be
              expected to result in publicity reflecting unfavorably on the
              Company in a material way, (vii) failure to comply with the
              written policies of the Company, or (viii) a breach of the terms
              of this Agreement by the Employee.

              The Company shall provide the Employee written notice of
              termination pursuant to this Section 4.

5.     TERMINATION BY THE EMPLOYEE.

<PAGE>   4

5.1    The Employee may terminate this Agreement, if any one or more of the
       following shall occur:

       (a)    a material breach of the terms of this Agreement by the Company
              and such breach continues for 30 days after the Employee gives the
              company written notice of such breach;

       (b)    the Company shall make a general assignment for benefit of
              creditors; or any proceeding shall be instituted by the Company
              seeking to adjudicate it as bankrupt or insolvent, or seeking
              liquidation, winding up, reorganization, arrangement, adjustment,
              protection, relief, or composition of it or its debts under law
              relating to bankruptcy, insolvency or reorganization or relief of
              debtors, or seeking entry of an order for relief or the
              appointment of a receiver, trustee, or other similar official for
              it or for any substantial part of its property or the Company
              shall take any corporate action to authorize any of the actions
              set forth above in this subsection 5(b);

       (c)    an involuntary petition shall be filed or an action or proceeding
              otherwise commenced against the Company seeking reorganization,
              arrangement or readjustment of the Company's debts or for any
              other relief under the Federal Bankruptcy Code, as amended, or
              under any other bankruptcy or insolvency act or law, state or
              federal, now or hereafter existing and remain undismissed or
              unstayed for a period of 30 days; or

       (d)    a receiver, assignee, liquidator, trustee or similar officer for
              the Company or for all or any part of its property shall be
              appointed involuntarily.

6.     SEVERANCE.

       If (i) the Company terminates this Agreement without Cause or (ii) the
       Employee terminates this Agreement pursuant to Section 5.1(a), then: (1)
       except in the case of death or disability, the Company shall continue to
       pay Employee his current salary for the remaining period of the
       applicable Term; (2) all Options granted pursuant to Section 3.5 herein
       that would have vested during the Term shall vest immediately prior to
       such termination; and (3) the Company shall continue to provide all
       benefits subject to COBRA at its expense for up to one year.

7.     OTHER BENEFITS.

       In addition to all other benefits contained herein, the Employee shall be
       entitled to:

       (a)    relocation expenses for the Employee and his family, consisting of
              (i) real estate taxes, mortgage payments,

<PAGE>   5

              utilities and routine maintenance on Employee's principal
              residence for up to six months from the time the Employee begins
              additional mortgage payments on a new principal residence for the
              Employee and his family in the greater Boston, Massachusetts area;
              PROVIDED the Employee shall use his best efforts to sell his
              current residence within such six month time period; PROVIDED,
              FURTHER, the Company shall consider, in its sole discretion,
              reimbursement for additional carrying costs if the Employee has
              not sold his residence within such six month period, (ii) all
              reasonable costs for rent, storage and primary services (e.g.,
              gas, heat, electricity, phone hook-up) associated with temporary
              housing at an approved location until the Employee finds a
              suitable residence, (iii) all reasonable direct out-of-pocket
              costs of transporting the Employee, the Employee's family and
              household items from the Employee's current residence to a new
              residence located in the greater Boston, Massachusetts area, and
              (iv) except as described in the next succeeding sentence and
              subject to prior approval, the reasonable closing costs of the
              sale of the Employee's current residence and purchase of a new
              residence in the greater Boston, Massachusetts area within one
              year of the Employee's date of employment. The following closing
              (settlement) costs will not be paid by the Company: (1) real
              estate and other taxes, (2) insurance premiums other than title
              insurance, and (3) commitment fees and prepaid interest (i.e.,
              "points") in excess of 2%. If any payments made to or in respect
              of the Employee pursuant to this Section 7(a) become subject to
              any tax (taking into account relevant deductions), the Company
              shall make a special payment to him sufficient, on an after-tax
              basis (taking into account federal, state and local taxes), to put
              him in the same position as would have been the case had no such
              taxes been applicable to any payments or benefits provided in this
              subsection. This special payment will be made to the Employee in
              April 1993.

       (b)    Vacation time of four weeks per year taken in accordance with the
              vacation policy of the Company during each year of the Term.

       (c)    After six years of employment, one three-month period of fully
              paid leave of absence in accordance with Company policies in place
              at that time; it being understood that such policies may restrict
              the Employee from taking such leave of absence until a time that
              is acceptable to the Company and may include other such
              limitations.

       (d)    Group health, disability and life insurance.

       (e)    The Company shall, in its sole discretion, provide the Employee
              with either (i) an automobile for the Employee's exclusive use, at
              a cost to the Company not exceeding $750

<PAGE>   6

              per month or (ii) an automobile allowance of $750 per month toward
              the cost of maintaining the Employee's car.

8.     CONFIDENTIALITY.

       8.1    The Employee acknowledges that, during the course of performing
              his services hereunder, the Company shall be disclosing
              information to the Employee related to the Company's Field of
              Interest, Inventions, projects and business plans, as well as
              other information (collectively, "Confidential Information"). The
              Employee acknowledges that the Company's business is extremely
              competitive, dependent in part upon the maintenance of secrecy,
              and that any disclosure of the Confidential Information would
              result in serious harm to the Company.

       8.2    The Employee agrees that the Confidential Information only shall
              be used by the Employee in connection with his activities
              hereunder as an employee of the Company, and shall not be used in
              any way that is detrimental to the Company.

       8.3    The Employee agrees not to disclose, directly or indirectly, the
              Confidential Information to any third person or entity, other than
              representatives or agents of the Company. The Employee shall treat
              all such information as confidential and proprietary property of
              the Company.

       8.4    The term "Confidential Information" does not include information
              that (a) is or becomes generally available to the public other
              than by disclosure in violation of this Agreement, (b) was within
              the relevant party's possession prior to being furnished to such
              party, (c) becomes available to the relevant party on a
              nonconfidential basis or (d) was independently developed by the
              relevant party without reference to the information provided by
              the Company.

       8.5    The Employee may disclose any Confidential Information that is
              required to be disclosed by law, government regulation or court
              order. If disclosure is required, the Employee shall give the
              Company advance notice so that the Company may seek a protective
              order or take other action reasonable in light of the
              circumstances.

       8.6    Upon termination of this Agreement, the Employee shall promptly
              return to the Company all materials containing Confidential
              Information, as well as data, records, reports and other property,
              furnished by the Company to the Employee or produced by the
              Employee in connection with services rendered hereunder.
              Notwithstanding such return or any of the provisions of this
              Agreement, the Employee shall continue to be bound by the terms of
              the confidentiality

<PAGE>   7

              provisions contained in this Section 8 for a period of three years
              after the termination of this Agreement.

9.     INVENTIONS DISCOVERED BY THE EMPLOYEE WHILE PERFORMING SERVICES
       HEREUNDER. During the Term, the Employee shall promptly disclose to the
       Company any invention, improvement, discovery, process, formula, or
       method or other intellectual property, whether or not patentable, whether
       or not copyrightable (collectively, "Inventions") made, conceived or
       first reduced to practice by the Employee, either alone or jointly with
       others, while performing service hereunder. The Employee hereby assigns
       to the Company all of his right, title and interest in and to any such
       Inventions. During and after the Term, the Employee shall execute any
       documents necessary to perfect the assignment of such Inventions to the
       Company and to enable the Company to apply for, obtain, and enforce
       patents and copyrights in any and all countries on such Inventions. The
       Employee hereby irrevocably designates the General Counsel to the Company
       as his agent and attorney-in-fact to execute and file any such document
       and to do all lawful acts necessary to apply for and obtain patents and
       copyrights and to enforce the Company's rights under this paragraph. This
       Section 9 shall survive the termination of this Agreement.

10.    NON-COMPETITION AND NON-SOLICITATION.

       During the Term and for a period of one year following the date of
       termination or nonrenewal for any reason (other than termination pursuant
       to Section 5.1(a)): (a) the Employee shall not in the United States or in
       any country in which the Employer shall then be doing business, directly
       or indirectly, enter the employ of, or render any services to, any
       person, firm or corporation engaged in any business directly competitive
       with the business of the Company or of any of its subsidiaries or
       affiliates of which the Employee may become an employee or officer during
       the Term; he shall not engage in such business on his own account; and he
       shall not become interested in any such business, directly or indirectly,
       as an individual, partner, shareholder, director, officer, principal,
       agent, employee, trustee, consultant, or any other relationship or
       capacity; provided, however, that nothing contained in this Section 10
       shall be deemed to prohibit the Employee from acquiring, solely as an
       investment, shares of capital stock of any public corporation; (b)neither
       the Employee nor any Affiliate of the Employee shall solicit or utilize,
       or assist any person in any way to solicit or utilize, the services,
       directly or indirectly, of any of the Company's directors, consultants,
       members of the Board of Scientific and Medical Advisors, officers or
       employees (collectively, "Associates of the Company"). This
       nonsolicitation and nonutilization provision shall not apply to
       Associates of the Company who have previously terminated their
       relationship with the Company.

<PAGE>   8

10.1   If the Employee commits a breach, or threatens to commit a breach, of any
       of the provisions of this Section 10, the Company shall have the
       following rights and remedies:

       10.1.1 The right and remedy to have the provisions of this Agreement
              specifically enforced by any court having equity jurisdiction, it
              being acknowledged and agreed that any such breach or threatened
              breach shall cause irreparable injury to the Company and that
              money damages shall not provide an adequate remedy to the Company;
              and

       10.1.2 The right and remedy to require the Employee to account for and
              pay over to the Company all compensation, profits, monies,
              accruals, increments or other benefits (collectively "Benefits")
              derived or received by the Employee as the result of any
              transactions constituting a breach of any of the provisions of the
              preceding paragraph, and the Employee hereby agrees to account for
              and pay over such Benefits to the Company. Each of the rights and
              remedies enumerated above shall be independent of the other, and
              shall be severally enforceable, and all of such rights and
              remedies shall be in addition to, and not in lieu of, any other
              rights and remedies available to the Company under law or in
              equity.

10.2   If any of the covenants contained in Section 8, 9 or 10, or any part
       thereof, is hereafter construed to be invalid or unenforceable, the same
       shall not affect the remainder of the covenant or covenants, which shall
       be given full effect without regard to the invalid portions.

10.3   If any of the covenants contained in Section 8, 9 or 10, or any part
       thereof, is held to be unenforceable because of the duration of such
       provision or the area covered thereby, the parties agree that the court
       making such determination shall have the power to reduce the duration
       and/or area of such provision and, in its reduced form, such provision
       shall then be enforceable.

10.4   The parties hereto intend to and hereby confer jurisdiction to enforce
       the covenants contained in Sections 8, 9 and 10 upon the courts of any
       state within the geographical scope of such covenants. In the event that
       the courts of any one or more of such states shall hold any such covenant
       wholly unenforceable by reason of the breadth of such scope or otherwise,
       it is the intention of the parties hereto that such determination not bar
       or in any way affect the Company's right to the relief provided above in
       the courts of any other states within the geographical scope of such
       covenants, as to breaches of such covenants

<PAGE>   9

       in such other respective jurisdictions, the above covenants as they
       relate to each state being, for this purpose, severable into diverse and
       independent covenants.

11.    INDEMNIFICATION.

       The Company shall indemnify the Employee, to the maximum extent permitted
       by applicable law, against all costs, charges and expenses incurred or
       sustained by him in connection with any action, suit or proceeding to
       which he may be made a party by reason of his being an officer, director
       or employee of the Company or of any subsidiary or affiliate of the
       Company. The Company shall provide, subject to its availability upon
       reasonable terms (which determination shall be made by the Board) at its
       expense, Directors and Officers insurance for the Employee in reasonable
       amounts. Determination with respect to (a) the availability of insurance
       upon reasonable terms and (b) the amount of such insurance coverage shall
       be made by the Board in its sole discretion.

12.    NOTICES.

       All notices, requests, consents and other communications required or
       permitted to be given hereunder shall be in writing and shall be deemed
       to have been duly given if sent by prepaid telegram (confirmed delivery
       by the telegram service), private overnight mail service (delivery
       confirmed by such service), registered or certified mail (return receipt
       requested), or delivered personally, as follows (or to such other address
       as either party shall designate by notice in writing to the other in
       accordance herewith):

       If to the Company:

       ARIAD Pharmaceuticals, Inc.
       26 Landsdowne Street
       Cambridge, MA 02139
       Attention: Chief Executive Officer
       Telephone: (617) 494-0400
       Fax: (617) 494-8144

       If to the Employee:

       Dr. John D. Iuliucci 3 Pendant Ct. Andover, MA 01810

13.    GENERAL.

       13.1   This Agreement shall be governed by and construed and enforced in
              accordance with the laws of the Commonwealth of Massachusetts
              applicable to agreements made and to be performed entirely in
              Massachusetts.

<PAGE>   10

       13.2   The Section headings contained herein are for reference purposes
              only and shall not in any way affect the meaning or interpretation
              of this Agreement.

       13.3   This Agreement sets forth the entire agreement and understanding
              of the parties relating to the subject matter hereof, and
              supersedes all prior agreements, arrangements and understandings,
              written or oral, relating to the subject matter hereof. No
              representation, promise or inducement has been made by either
              party that is not embodied in this Agreement, and neither party
              shall be bound by or liable for any alleged representation,
              promise or inducement not so set forth.

       13.4   This Agreement and the Employee's rights and obligations hereunder
              may not be assigned by the Employee or the Company; PROVIDED,
              HOWEVER, the Company may assign this Agreement to an Affiliate or
              a successor-in-interest.

       13.5   This Agreement may be amended, modified, superseded, cancelled,
              renewed or extended, and the terms or covenants hereof may be
              waived, only by a written instrument executed by the parties
              hereto, or in the case of a waiver, by the party waiving
              compliance. The failure of a party at any time or times to require
              performance of any provision hereof shall in no manner affect the
              right at a later time to enforce the same. No waiver by a party of
              the breach of any term or covenant contained in this Agreement,
              whether by conduct or otherwise, in any one or more instances,
              shall be deemed to be, or construed as, a further or continuing
              waiver of any such breach, or a waiver of the breach of any other
              term or covenant contained in this Agreement.

14.    DEFINITIONS. As used herein the following terms have the following
       meaning:

       (a)    "Affiliate" means and includes any corporation or other business
              entity controlling, controlled by or under common control with the
              corporation in question.

       (b)    "Company's Field of Interest" means the discovery and development
              of pharmaceutical agents that target or intervene with
              intracellular regulatory and control mechanisms; associated
              diagnostic products; structure-based drug design; any artificial
              platelet product; and other related areas. The Company's Field of
              Interest may be changed at the Company's sole discretion from time
              to time.

       (c)    "person" means any natural person, corporation, partnership, firm,
              joint venture, association, joint stock company, trust,
              unincorporated organization, governmental body or other entity.

<PAGE>   11

       (d)    "Subsidiary" means any corporation or other business entity
              directly or indirectly controlled by the corporation in question.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

ARIAD PHARMACEUTICALS, INC.

By

Harvey J. Berger, M.D.
Chairman and
Chief Executive Officer

EMPLOYEE

John D. Iuliucci, Ph.D.

<PAGE>   12

                    FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT

This AMENDMENT TO EMPLOYMENT AGREEMENT (the "Fourth Amendment") made as of June
8, 2000 between ARIAD Pharmaceuticals, Inc., a Delaware corporation (the
"Company"), and John D. Iuliucci, Ph.D. (the "Employee").

The Company and the Employee have entered into an Employment Agreement dated as
of May 1, 1992, as previously amended (the "Agreement"), and the parties hereto
desire to further amend certain provisions of the Agreement.

NOW, THEREFORE, in consideration of the premises set forth herein and for other
good and valuable consideration, the receipt of which is hereby acknowledged,
the parties hereto agree to further amend the Agreement as follows:

I.     TERM OF EMPLOYMENT. The first sentence of Section 2 is hereby amended to
       read as follows:

       "The term of the Employee's employment under the Agreement is hereby
       extended to December 31, 2001 (the "Term"), unless sooner terminated
       pursuant to Section 4 or 5 of this Agreement; PROVIDED, however, that
       this Agreement shall automatically be renewed for successive one-year
       terms (the Term and, if the period of employment is so renewed, such
       additional period(s) of employment are collectively referred to herein as
       the "Term") unless terminated by written notice given by either party to
       the other at least 90 days prior to the end of the applicable Term."

II.    COMPENSATION. Section 3.1 is hereby replaced and amended in its entirety
       as follows:

       "3.1   As full compensation for all services to be rendered pursuant to
              this Agreement, the Company agrees to pay the Employee, during the
              Term, a salary at the fixed rate of $207,500 per annum during the
              first year of the Term and increased each year thereafter, by
              amounts, if any, to be determined by the Board of Directors of the
              Company (the "Board") in its sole discretion, payable in equal
              semi-monthly installments, less such deductions or amounts to be
              withheld as shall be required by applicable law and regulations."

III.   DEFINITIONS. The definition of the Company's "Field of Interest" in
       Section 14 (b) of the Agreement is hereby amended to read as follows:

        "The `Company's Field of Interest' is the discovery, development and
        commercialization of pharmaceutical products based on (a) intervention
        in signal transduction pathways and (b) gene and cell therapy. The
        Company's Field of Interest

<PAGE>   13

       may be changed at any time at the sole discretion of the Company."

IV.    This Amendment shall be governed by and construed and enforced in
       accordance with the laws of the Commonwealth of Massachusetts applicable
       to agreements made and to be performed entirely in Massachusetts.

V.     Except as modified by this Fourth Amendment, the Agreement remains in
       full force and effect and unchanged.

IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the
date first written above.

                                         ARIAD PHARMACEUTICALS, INC.

                                         By:
                                            ---------------------------------
                                            Harvey J. Berger, M.D.
                                            Chairman and Chief Executive Officer

                                         EMPLOYEE

                                         ------------------------------------
                                         John D. Iuliucci, Ph.D.

<PAGE>   14

                      THIRD AMENDMENT EMPLOYMENT AGREEMENT

This THIRD AMENDMENT TO EMPLOYMENT AGREEMENT (the Third "Amendment") made as of
January 1, 1999, between ARIAD Pharmaceuticals, Inc., a Delaware corporation
(the "Company"), and John Iuliucci, Ph.D. (the "Employee").

The Company and the Employee have entered into an Employment Agreement dated as
of May 1, 1992 (the "Agreement"), as previously amended, and the parties hereto
desire to further amend certain provisions of the Agreement.

NOW, THEREFORE, in consideration of the premises set forth herein and for other
good and valuable consideration, the receipt of which is hereby acknowledged,
the parties hereto agree to further amend the Agreement as follows:

I.     EMPLOYMENT, DUTIES AND ACCEPTANCE. The second sentence of Section 1.1 is
       hereby amended to read as follows:

       "The Employee's title shall be designated by the Chief Executive Officer
       and initially shall be Senior Vice President, Drug Development.

II.    COMPENSATION. Section 3.1 is hereby replaced and amended in its entirety
       as follows:

       "3.1   As full compensation for all services to be rendered pursuant to
              this Agreement, the Company agrees to pay the Employee, during the
              Term, a salary at the fixed rate of $200,000 per annum during the
              first year of the Term and increased each year thereafter, by
              amounts, if any, to be determined by the Board of Directors of the
              Company (the "Board") in its sole discretion, payable in equal
              semi-monthly installments, less such deductions or amounts to be
              withheld as shall be required by applicable law and regulations."

III.   TERMINATION BY THE EMPLOYEE. Section 5 is hereby replaced and amended in
       its entirety as follows:

       "5.1   The Employee may terminate this Agreement, if any one or more of
              the following shall occur:

              (a)    a material breach of the terms of this Agreement by the
                     Company and such breach continues for 30 days after the
                     Employee gives the Company written notice of such breach;

              (b)    the Company shall make a general assignment for benefit of
                     creditors; or any proceeding shall be instituted by the
                     Company seeking to adjudicate it as bankrupt or insolvent,
                     or seeking liquidation, winding up, reorganization,
                     arrangement, adjustment, protection,

<PAGE>   15

                     relief, or composition of it or its debts under law
                     relating to bankruptcy, insolvency or reorganization or
                     relief of debtors, or seeking entry of an order for relief
                     of the appointment of a receiver, trustee, or other similar
                     official for it or for any substantial part of its property
                     or the Company shall take any corporate action to authorize
                     any of the actions set forth above in this subsection
                     5.1(b);

              (c)    an involuntary petition shall be filed or an action or
                     proceeding otherwise commenced against the Company seeking
                     reorganization, arrangement or readjustment of the
                     Company's debts or for any other relief under the Federal
                     Bankruptcy Code, as amended, or under any other bankruptcy
                     or insolvency act or law, state or federal, now or
                     hereafter existing and remain undismissed or unstayed for a
                     period of 30 days;

              (d)    a receiver, assignee, liquidator, trustee or similar
                     officer for the Company or for all or any part of its
                     property shall be appointed involuntarily, or (e) a Change
                     in Control as defined in Section 14."

IV.    SEVERANCE. Section 6 is hereby replaced and amended in its entirety as
       follows:

       "6. If (i) the Company terminates this Agreement without Cause or (ii)
       the Employee terminates this Agreement pursuant to Section 5.1(a), then:
       (1) except in the case of death or disability, the Company shall continue
       to pay Employee his current salary for the remaining period of the
       applicable Term; (2) all options granted pursuant to this Agreement that
       would have vested during the Term shall vest immediately prior to such
       termination; (3) the Company shall continue to provide all benefits
       subject to COBRA at its expense for up to one year.

       In the event of a consummation of a Change in Control of the Company, and
       if the Employee gives notice of termination within 90 days after such
       occurrence, then (i) all stock, stock options, stock awards and similar
       equity rights granted to the Employee shall immediately vest and remain
       fully exercisable through their original term with all rights; and (ii)
       the Company shall continue to pay Employee his current salary for the
       shorter of (a) six months, or (b) the remaining period of the applicable
       Term."

V.     DEFINITIONS. The definition of the Company's "Field of Interest" in
       Section 14 (b) of the Agreement is hereby amended to read as follows:

       "The `Company's Field of Interest' is the discovery, development and
       commercialization of pharmaceutical products based on (a) intervention in
       signal transduction pathways; (b) gene and cell therapy; (c) functional
       genomics; and (d) natural products,

<PAGE>   16

       including without limitation, studies of microbial diversity. The
       Company's Field of Interest may be changed at the sole discretion of the
       Company from time to time."

       The definition of "Change in Control" shall be added as Section 14 (e) of
       the Agreement as follows:

       " 'Change in Control' means the occurrence of any of the following events
       (without the consent of the Employee):

       (i)    Any corporation, person or other entity makes a tender or exchange
              offer for shares of the Company's Common Stock pursuant to which
              such corporation, person or other entity acquires more than 50% of
              the issued and outstanding shares of the Company's Common Stock;

       (ii)   The stockholders of the Company approve a definitive agreement to
              merge or consolidate the Company with or into another corporation
              or to sell or otherwise dispose of all or substantially all of the
              Company's assets; or

       (iii)  Any person within the meaning of Section 3 (a) (9) or Section 13
              (d) of the Securities Exchange Act of 1934 acquires more than 50%
              of the combined voting power of Company's issued and outstanding
              voting securities entitled to vote in the election of the Board."

VI.    This Amendment shall be governed by and construed and enforced in
       accordance with the laws of the Commonwealth of Massachusetts applicable
       to agreements made and to be performed entirely in Massachusetts.

VII.   Except as modified by this Amendment, the Agreement remains in full force
       and effect and unchanged.

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
first written above.

                                    ARIAD PHARMACEUTICALS, INC.

                                    By:
                                       ---------------------------------------
                                       Harvey J. Berger, M.D.
                                       Chairman and Chief Executive Officer

                                    EMPLOYEE

                                    ----------------------------------------
                                    John Iuliucci, Ph.D.

<PAGE>   17

                        AMENDMENT TO EMPLOYMENT AGREEMENT

This AMENDMENT TO EMPLOYMENT AGREEMENT (the "Second Amendment") made as of
January 1, 1997, between ARIAD Pharmaceuticals, Inc., a Delaware corporation
(the "Company"), and John D. Iuliucci, Ph.D. (the "Employee").

The Company and the Employee have entered into an Employment Agreement dated as
of May 1, 1992 and amended as of March 2, 1994 (the "Agreement"), and the
parties hereto desire to further amend certain provisions of the Agreement.

NOW, THEREFORE, in consideration of the premises set forth herein and for other
good and valuable consideration, the receipt of which is hereby acknowledged,
the parties hereto agree to further amend the Agreement as follows:

I.     EMPLOYMENT, DUTIES AND ACCEPTANCE. The second sentence of Section 1.1 is
       hereby amended to read as follows:

       "The Employee's title shall be designated by the Chief Executive Officer
       and initially shall be Vice President, Drug Development."

II.    TERM OF EMPLOYMENT. The first sentence of Section 2 is hereby amended to
       read as follows:

       "The term of the Employee's employment under the Agreement is hereby
       extended to December 31, 1999 (the "Term"), unless sooner terminated
       pursuant to Section 4 or 5 of this Agreement; PROVIDED, however, that
       this Agreement shall automatically be renewed for successive one-year
       terms (the Term and, if the period of employment is so renewed, such
       additional period(s) of employment are collectively referred to herein as
       the "Term") unless terminated by written notice given by either party to
       the other at least 90 days prior to the end of the applicable Term."

III.   COMPENSATION. Section 3.1 is hereby replaced and amended in its entirety
       as follows:

       "3.1   As full compensation for all services to be rendered pursuant to
              this Agreement, the Company agrees to pay the Employee, during the
              Term, a salary at the fixed rate of $165,000 per annum during the
              first year of the Term and increased each year thereafter, by
              amounts, if any, to be determined by the Board of Directors of the
              Company (the "Board") in its sole discretion, payable in equal
              semi-monthly installments, less such deductions or amounts to be
              withheld as shall be required by applicable law and regulations."

<PAGE>   18

IV.    DEFINITIONS. The definition of the Company's "Field of Interest" in
       Section 14 (b) of the Agreement is hereby amended to read as follows:

       "The Company's 'Field of Interest' is: the discovery, development and
       commercialization of pharmaceutical products based on (a) intervention in
       signal transduction pathways; (b) gene and cell therapy; and (c)
       functional genomics. The Company's Field of Interest may be changed at
       the sole discretion of the Company from time to time."

V.     This Amendment shall be governed by and construed and enforced in
       accordance with the laws of the Commonwealth of Massachusetts applicable
       to agreements made and to be performed entirely in Massachusetts.

VI.    Except as modified by this Second Amendment, the Agreement remains in
       full force and effect and unchanged.

IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the
date first written above.

                                    ARIAD PHARMACEUTICALS, INC.

                                    By:
                                       ----------------------------------
                                       Harvey J. Berger, M.D.
                                       Chairman and Chief Executive Officer

                                    EMPLOYEE

                                    -------------------------------------
                                    John D. Iuliucci, Ph.D.

<PAGE>   19
                        AMENDMENT TO EMPLOYMENT AGREEMENT

This AMENDMENT TO EMPLOYMENT AGREEMENT (the "Amendment") made as of March 2,
1994, between ARIAD Pharmaceuticals, Inc. a Delaware corporation (the
"Company"), and John D. Iuliucci, Ph.D. the "Employee").

The Company and the Employee have entered into an Employment Agreement dated as
of June 15, 1992 (the "Agreement"), and the parties hereto desire to amend
certain provisions of the Agreement.

NOW, THEREFORE, in consideration of the premises set forth herein and for other
good and valuable consideration, the receipt of which is hereby acknowledged,
the parties hereto agree as follows:

1.     SECTION 2. The Term of the Employee's employment under the Agreement is
       hereby extended to December 31, 1996.

2.     ARTICLE 3.

       2.1    Section 3.6 is hereby replaced and amended in its entirety as
              follows:

       "3.6   All shares of the Company's Common Stock or Option Stock (as
              defined below) owned by the Employee or with respect to which the
              Employee has the power of disposition, shall not, without the
              Company's prior written consent, be transferable until the earlier
              of (a) March 31, 1996 and (b) eighteen months after the Company's
              initial public offering; PROVIDED, HOWEVER, that in the event of
              the death of the Employee, any Common Stock or Option Stock shall,
              subject to the terms of such Option Stock, be transferable to the
              legal representatives, legatees and distributees of the Employee,
              if such persons agree to be bound by the same restrictions
              applicable to such security. "Option Stock" shall mean all Options
              or any other options or rights to acquire shares of the Company's
              Common Stock or any securities convertible into or exchangeable or
              exercisable into shares of the Company's Common Stock. In the
              event that the Company commences an initial public offering, the
              Employee will execute "lock-up" agreements with respect to the
              Common Stock or Option Stock held by the Employee providing that
              the Employee will not sell the Common Stock or Option Stock for a
              period of eighteen months after the closing of the initial public
              offering

<PAGE>   20

              If the Company elects, the certificates representing the Common
              Stock or Option Stock will be transferred to the Company to be
              held by the Company pursuant to an escrow agreement consistent
              with the terms set forth in this Section 3.6. This Section 3.6
              shall survive termination of this Agreement."

       2.2    Section 3.7 is hereby added to the Agreement to read in its
              entirety as follows:

       "3.7   Any shares of common stock ("Subsidiary Common Stock") of any
              current or future subsidiary of the Company, including, without
              limitation, ARIAD Gene Therapeutics, Inc., or any Subsidiary
              Option Stock (as defined below) owned by the Employee or with
              respect to which the Employee has the power of disposition shall
              not, without the Company's prior written consent, be transferable
              until eighteen months after the applicable subsidiary's initial
              public offering; PROVIDED, HOWEVER, that in the event of the death
              of the Employee, all such Subsidiary Common Stock or Subsidiary
              Option Stock shall, subject to the terms of such Subsidiary Option
              Stock, be transferable to the legal representatives, legatees, and
              distributees of the Employee, if such persons agree to be bound by
              the same restrictions applicable to such security. "Subsidiary
              Option Stock" shall mean all options or rights to acquire shares
              of Subsidiary Common Stock or any securities convertible into or
              exchangeable or exercisable for shares of Subsidiary Common Stock.
              If the Company elects, the certificates representing the
              Subsidiary Common Stock or Subsidiary Option Stock will be
              transferred to the Company to be held by the Company pursuant to
              an escrow agreement consistent with the terms set forth in this
              Section 3.7. This Section 3.7 shall survive the termination of
              this Agreement."

3.     The definition of the "Company's Field of Interest" in Section 4 (b) of
       the Agreement is hereby amended to read as follows:

       "Company's Field of Interest means (1) the discovery, development and
       commercialization of pharmaceutical products, diagnostic products, or
       research reagents that target or intervene with intracellular regulatory
       or control mechanisms (e.g., signal transduction, gene transcription and
       protein trafficking); (2) gene therapy; (3) drug discovery based on
       molecular structure or diversity; (4) any platelet substitute product;
       and (5) other related areas. The Company's Field of Interest may be
       changed at the Company's sole discretion from time to time."

<PAGE>   21

4.     This Amendment shall be governed by and construed and enforced in
       accordance with the laws of the Commonwealth of Massachusetts applicable
       to agreements made and to be performed entirely in Massachusetts.

5.     Except as modified by this Amendment, the Agreement remains in full force
       and effect and unchanged.

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
first written above.

                                    ARIAD PHARMACEUTICALS, INC.

                                    By:
                                       -------------------------------------
                                       Harvey J. Berger, M.D.
                                       Chairman and Chief Executive Officer

                                    EMPLOYEE

                                    ---------------------------------------
                                    John D. Iuliucci, Ph.D.

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