Document:

Exhibit 10.26

Millennium Pharmaceuticals, Inc.

Description of Non-Employee Director Compensation

We do
not pay directors who are also Millennium employees any additional compensation
for their service as a director. We do pay our non-employee directors for their
service as directors.

Each
year, the Board Governance Committee reviews the compensation we pay to our
non-employee directors. The Committee compares our Board compensation to
compensation paid to non-employee directors by similarly sized public companies
in similar businesses. The Committee also considers the responsibilities that
we ask our Board members to assume and the amount of time required to perform
those responsibilities.

Below
we show the rate of compensation that we pay to our non-employee directors.

Cash Compensation

Beginning in 2007, directors may choose to receive all
or a portion of their annual retainer in the form of Millennium common stock.

Each director who is not an employee of Millennium
receives:

	
  Type of Fee

  	
   

  	
  Amount

  	
   

  	
  For each

  	
   

  
	
  Annual retainer:

  	
   

  	
  $

  	
  40,000

  	
   

  	
  Year
  of service

  	
   

  
	
  Additional annual
  retainer for chairman of the board:

  	
   

  	
  $

  	
  20,000

  	
   

  	
  Year
  of service

  	
   

  
	
  Additional annual
  retainer for vice chairman of the board:

  	
   

  	
  $

  	
  10,000

  	
   

  	
  Year
  of service

  	
   

  
	
  Additional annual
  retainer for chairman of audit committee:

  	
   

  	
  $

  	
  10,000

  	
   

  	
  Year
  of service

  	
   

  
	
  Additional annual
  retainer for committee chairman (other than audit chairman):

  	
   

  	
  $

  	
  5,000

  	
   

  	
  Year
  of service

  	
   

  
	
  Attendance:

  	
   

  	
  $

  	
  2,000

  	
   

  	
  Board
  meeting

  attended in person

  	
   

  
	
   

  	
   

  	
  $

  	
  1,000

  	
   

  	
  Board
  meeting by

  conference telephone

  	
   

  
	
   

  	
   

  	
  $

  	
  1,000

  	
   

  	
  Board
  committee

  meeting attended

  in person

  	
   

  
	
   

  	
   

  	
  $

  	
  750

  	
   

  	
  Board committee

  meeting by conference

  telephone

  	
   

  

 

Millennium also reimburses non-employee directors for
reasonable travel and out-of-pocket expenses in connection with their service
as directors.

Stock Compensation

In addition to Millennium Common
Stock that a director may choose to receive in lieu of all or a portion of the
cash retainer, under the option program for directors adopted by the Board, our
non-employee directors receive stock option grants as follows:

	
  

  	
   

  	
  Number

  of shares

  	
   

  	
  Granted

  in three

  installments on

  	
   

  	
  Vesting

  schedule

  	
   

  
	
  Initial Option Grant:

  	
   

  	
  35,000

  	
   

  	
  the
  date the director is first

  elected, one month later and

  two months later

  	
   

  	
  vest
  on a monthly

  basis beginning one

  month from the date

  of election and

  become fully vested

  on the fourth anniversary

  of the date of election

  	
   

  
	
  Annual
  Option Grant:

  	
   

  	
  15,000

  	
   

  	
  May 1st,
  June 1st and

  July 1st of each year,

  prorated for service on the

  Board of less than one year

  	
   

  	
  1/12th
  monthly

  	
   

  
	
  Non-employee Chairman of 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  the Board:

  	
   

  	
  10,000

  	
   

  	
  the
  dates of the annual

  option grant

  	
   

  	
  1/12th
  monthly

  	
   

  
	
  Chairman
  of audit

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  committee:

  	
   

  	
  5,000

  	
   

  	
  the
  dates of the annual

  option grant

  	
   

  	
  1/12th
  monthly

  	
   

  
	
  Committee chairman (other

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  than audit chairman):

  	
   

  	
  2,500

  	
   

  	
  the dates of the annual

  option grant

  	
   

  	
  1/12th monthly

  	
   

  
	
  Vice Chairman of the 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Board:

  	
   

  	
  5,000

  	
   

  	
  the dates of the annual

  option grant

  	
   

  	
  1/12th monthlyExhibit 10.27

Millennium Pharmaceuticals, Inc.

DESCRIPTION OF SUCCESS SHARING BONUS PROGRAM

        Millennium
Pharmaceuticals, Inc. (the “Company”) maintains a Success Sharing Bonus Program
for all employees including the Company’s executive officers. Through this
program, employees can receive an annual cash bonus based on achievement of key
Company and individual goals.  There is no guarantee that a bonus pool
will be available in any given year, or that every employee will receive a
bonus. The plan is intended to strengthen the link between individual
compensation and Company success; reinforce the Company’s pay-for-performance
philosophy by delivering higher bonuses to higher performing employees; and
help ensure that the Company’s cash compensation is competitive.

        The
amount of bonus dollars available in the pool is tied directly to the Company’s
performance against priority goals.  These priority goals are set each
year by the Company’s Compensation and Talent Committee (the “Committee”) and
Board of Directors. The goals typically address product sales; product/pipeline
development; and financial results.

        After
the end of each year, the Committee makes a funding determination based on its
assessment of the Company’s overall achievements related to these priority
goals. Fifty percent or more of the success sharing pool is available if a
threshold of performance is reached and up to 100% if a higher level of
performance is achieved. The maximum funding under the program is 150% of
target. Individual bonuses are based on divisional and individual employee
performance, as assessed in the performance review process and the target bonus
percent for the position.  Individual bonuses can vary significantly based
on performance. Bonuses for any particular year are paid as a lump sum cash
award in March of the following year.

        The
target bonus amount for the Company’s executive officers is between 50% and
100% of base salary.Exhibit 10.54

December 14, 2006

Robert I. Tepper
c/o Millennium Pharmaceuticals, Inc.
40 Landsdowne Street
Cambridge, MA 02139

Dear Dr. Tepper:

This letter amends
the terms of your employment offer letter from Millennium Pharmaceuticals, Inc.
(“Millennium” or the “Company”) dated May 5, 1994 (the “Letter Agreement”) and
memorializes certain other agreements between you and the Company.  Capitalized terms used herein and not
otherwise defined shall have the meaning given to them in the Letter Agreement.

1.             In
consideration of your agreement to remain employed by the Company as President
of R&D through March 31, 2007, or such earlier date as may be specified by
the Company’s Chief Executive Officer but in no event earlier than March 6,
2007 (the “Termination Date”), you will receive: (a) the Severance Payment,
provided, however, that the Severance Payment shall not be subject to reduction
or cessation as provided in Section 7 of the Agreement, (b) a lump sum stay
incentive payment equal to $225,000 (the “Incentive Payment”) and (c) provided
that you elect continued coverage under federal COBRA law, payment of the
portion of premiums of your group health insurance coverage, including coverage
for your eligible dependents, that Millennium paid prior to the Termination
Date, for a period of 12 months following the Termination Date or the date on
which you become eligible for substantially similar group benefits at a
subsequent employer, whichever is earlier. 
The Severance Payment will be paid periodically in accordance with the
Company’s payroll procedures and the Incentive Payment will be paid to you
within three days following the Termination Date.

2.             In
further consideration of your agreement to remain employed by the Company, if
the Termination Date occurs prior to the date on which payments are made under
the Company’s 2006 Success Sharing Bonus Program (the “2006 Program”), you will
remain eligible to receive a bonus payment under the Program at the same time
that bonus payments are made to other participants in the program.  You acknowledge that you will not be eligible
for any payment under the Company’s 2007 Success Sharing Bonus Program.

Robert I. Tepper
December 14, 2006
Page 2

 

3.             The consideration provided for herein supersedes the
consideration provided for in Section 7 of the Letter Agreement and no
additional amounts shall be payable thereunder. 
All amounts that you receive from the Company hereunder will be subject
to all required tax withholding.  In the
event of a material breach of your continuing obligations to the Company,
including under any Inventions, Non-Disclosure and Non-Competition Agreement(s)
or similar agreements that you may have signed during your employment with the
Company, the Company reserves the right to cease the payments described herein.

4.             In
consideration of receiving the payments outlined herein, you hereby release and
forever discharge and hold Millennium, as well as its current and former
successors, employees, officers, directors, shareholders, parents,
subsidiaries, affiliates and agents, harmless of all claims or suits of any
nature whatsoever, including, but not limited to, any claims under federal,
state and local laws that prohibit discrimination (including without
limitation, claims of discrimination based on race, age, religion, national
origin, sex, disability or handicap, and sexual orientation) and any claims
with respect to breach of contract (express and/or implied), wrongful
termination, Worker Adjustment and Retraining Notification Act and related state statute notification
obligations, the Older Workers Benefit Protection Act of 1990 and related state
statutes, intentional or negligent infliction of emotional distress,
interference with contractual or advantageous business relations, loss of
consortium, invasion of privacy, defamation, payment of wages, debts, costs and
expenses, attorneys’ fees and other damages, and any claims arising out of or
in any way related to your employment with Millennium, which you now have, may
have, or may have had from the beginning of time to the Termination Date.  Nothing in this paragraph shall be construed
in any way to release Millennium from its obligation to indemnify you from any
third party action brought against you based on your employment with or service
as an officer to Millennium pursuant to any applicable agreement or applicable
law or to reduce or eliminate any coverage you may have under Millennium’s
director and officer liability policies, if any.  As required by the Older Workers Benefit
Protection Act of 1990, you acknowledge: 
(i) that you have been advised and given the opportunity to consult
with your own counsel prior to signing this Agreement; (ii) that you have
been given 21 days from the receipt of this Agreement to consider whether
to sign it; (iii) that you have been advised that even after you sign this
Agreement, you may revoke it within 7 days of the date of your signing, by
delivering a signed revocation notice to Millennium’s Senior Vice-President of
Human Resources; (iv) that this Agreement shall not become effective and
in force until eight (8) days after you sign it, and (v) that you will not
be entitled to receive the payments described herein until after the 7-day
revocation period has expired, and that, should you in fact revoke your acceptance,
none of the payments outlined herein will be made.

5.             This
Agreement may be amended or modified only by a written instrument executed by
you and Millennium.  This agreement will
be interpreted and enforced in

Robert I. Tepper
December 14, 2006

Page
3

accordance with the laws
of the Commonwealth of Massachusetts.  Except
as expressly stated in this letter, the Letter Agreement remains unchanged and
in full force and effect.

*****The
remainder of this page is purposefully blank*****

Robert I. Tepper
December 14, 2006
Page 4

 

Please acknowledge
your agreement by countersigning this letter below.

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  MILLENNIUM
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ STEPHEN
  GANSLER

  	
   

  
	
   

  	
  Name:

  	
  Stephen Gansler

  
	
   

  	
  Title:

  	
  SVP, Human Resources

  
	
   

  	
   

  
	
  AGREED TO:

  
	
   

  
	
  /s/ ROBERT I. TEPPER

  	
   

  
	
  Robert I. Tepper

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