Document:

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                                                                   EXHIBIT 10.55
                              CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT (the "Agreement") is made as of October 5, 2001 (the
"Effective Date") by and between ARIAD Pharmaceuticals, Inc., a Delaware
corporation (the "Company"), and Brian A. Lajoie (the "Consultant").

                                WITNESSETH THAT:

WHEREAS, the Company is engaged in the business of discovering, developing and
commercializing pharmaceutical products;

WHEREAS, the Consultant previously served as a financial executive officer of a
company in the biotechnology industry and is familiar with the business in which
the Company is engaged and otherwise has experience and expertise which is
useful to the Company; and

WHEREAS, the Company wishes to retain the Consultant, and the Consultant is
willing to be retained by the Company to provide the Company with consulting
services in the financial operation of its business, subject to the terms and
conditions and for the consideration hereinafter set forth.

NOW THEREFORE, the Company and the Consultant hereby agree as follows:

1.     Consulting Term; Termination

       1.1    The term of this Agreement shall commence on the Effective Date
              and shall end on April 30, 2002 (the "Initial Term"); provided,
              that the Term (as defined below) shall be automatically renewed
              for successive 30-day terms (the Initial Term and, if the
              consulting period is so renewed, such additional consulting
              period(s) are collectively referred to herein as the "Term"),
              unless either the Company or the Consultant terminates this
              Agreement earlier pursuant to the terms of Section 1.2 hereof or
              either the Company or the Consultant commits a material breach of
              the terms of this Agreement.

       1.2    Notwithstanding the provisions of Section 1.1 hereof, the Company
              or the Consultant may terminate this Agreement, with or without
              cause in its sole discretion, prior to the end of the Initial Term
              or any subsequent applicable Term by providing not less than
              fifteen (15) days prior written notice to the other party.

2.     Consulting Services

       2.1    The Company hereby engages the Consultant to provide consulting
              services related to financial matters of the Company generally as
              directed by the Chief Executive Officer of the Company, unless
              otherwise agreed to by the Company and the Consultant. The
              specific services to be performed by the Consultant, number of
              hours required to perform such services, and schedule of
              performance shall be agreed from time to time by the Company and
              the Consultant based on the needs of the Company and the
              reasonable availability of the Consultant.

       2.2    In addition to the services described in Section 2.1 hereof, the
              Consultant agrees to be elected as the Interim Chief Financial
              Officer of the Company and to assist the Chief Executive Officer,
              the Controller and other members of Company's management in
              managing the financial affairs of the Company.

       2.3    The Consultant hereby accepts such engagement as a consultant to
              the Company and agrees to use his best efforts to render the
              services described above.
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       2.4    The Consultant shall perform the services for the Company
              contemplated by this Agreement principally at the Company's
              corporate offices located at 26 Landsdowne Street, Cambridge,
              Massachusetts.

3.     Compensation. In consideration for the performance of the services to be
       rendered by the Consultant to the Company pursuant to Section 2.1 hereof,
       the Company shall compensate the Consultant at a rate of One Thousand Six
       Hundred Dollars ($1,600.00) per day, payable on a bi-weekly basis
       promptly after receipt of an invoice detailing such days, or portions
       thereof, served; provided, however, that the aggregate compensation paid
       to the Consultant by the Company in any one (1) month period shall not
       exceed the total sum of Twenty Four Thousand Dollars ($24,000.00). The
       Company and the Consultant agree that the Company shall not withhold any
       amounts on account of any withholding or employment taxes from any
       payments to the Consultant under this section and that it shall be the
       sole responsibility of the Consultant to report and pay all applicable
       income or other taxes on all such payments made to him.

4.     Expenses

       The Company shall pay or reimburse the Consultant for all reasonable
       travel and other expenses (excluding commuting expenses) incurred by the
       Consultant in the course of performing the consulting services requested
       by the Company and performed by the Consultant hereunder, upon
       presentation of appropriate documentation substantiating such expenses in
       accordance with the usual policies and procedures of the Company. The
       Company will provide the consultant with parking at no expense.

5.     No Employment Relationship

       Nothing in this Agreement shall create or shall be deemed to create any
       contract or relationship of employment between the Company and the
       Consultant or render or be construed to render the Consultant an employee
       of the Company or to provide the Consultant with any rights or benefits,
       including, but not limited to health insurance, dental care insurance,
       life insurance, long-term disability insurance, accidental death and
       dismemberment insurance, deferred compensation awards, performance
       bonuses or 401(k) plan participation benefits, to which any employee of
       the Company or any of its Affiliates may be entitled.

6.     Confidentiality

       6.1    The Consultant acknowledges and agrees that during the course of
              performing services for the Company, the Company will furnish,
              disclose or make available to the Consultant confidential and
              proprietary information relating to the Company's business,
              including, but not limited to, inventions, projects and business
              plans (collectively, "Confidential Information"). The Consultant
              further acknowledges and agrees that such Confidential Information
              has been developed and will be developed by the Company through
              the expenditure by the Company of substantial time, effort and
              money, that the Company's business is extremely competitive, that
              the Company's business is dependent in part upon the maintenance
              of secrecy, and that any disclosure of the Confidential
              Information would result in serious harm to the Company.

       6.2    The Consultant agrees that the Confidential Information shall only
              be used by the Consultant in connection with his activities
              hereunder as a consultant to the Company and shall not be used in
              any way that is detrimental to the Company.

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       6.3    The Consultant 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 Consultant shall
              treat all such information as confidential and proprietary
              property of the Company.

       6.4    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 Consultant's possession prior to being furnished to such
              Consultant, (c) becomes available to the Consultant on a
              non-confidential basis or (d) was independently developed by the
              Consultant without reference to the information provided by the
              Company.

       6.5    The Consultant may disclose any Confidential Information that is
              required to be disclosed by law, government regulation or court
              order. If disclosure is required, the Consultant 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.

       6.6.   Upon termination of this Agreement, the Consultant 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 Consultant or produced by the
              Consultant in connection with services rendered hereunder.
              Notwithstanding such return or any of the provisions of this
              Agreement, the Consultant shall continue to be bound by the terms
              of the confidentiality provisions contained in this Section 6 for
              a period of five (5) years after the termination of this
              Agreement.

       6.7    The Consultant acknowledges receipt of a copy of the Company's
              policies regarding trading in the Company's securities and agrees
              to comply with such policies, as well as other SEC regulations
              regarding insider trading and disclosure of material non-public
              information.

7.     Non-Competition and Non-Solicitation. During the Term and for a period of
       six (6) months following the expiration or termination of this Agreement:
       (a) the Consultant shall not in the United States or in any country in
       which the Company 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 competitive with the business of the
       Company or of any of its subsidiaries or affiliates; 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 7 shall be deemed to prohibit the
       Consultant from acquiring, solely as an investment, shares of capital
       stock of any public corporation; (b) neither the Consultant nor any
       Affiliate of the Consultant 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 non-solicitation and
       non-utilization provision shall not apply to Associates of the Company
       who have previously terminated their relationship with the Company.

       7.1    If the Consultant commits a breach, or threatens to commit a
              breach, of any of the provisions of this Section 7, the Company
              shall have the following rights and remedies:

              7.1.1  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.

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              7.1.2  The right and remedy to require the Consultant 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
                     Consultant as the result of any transactions constituting a
                     breach of any of the provisions of the preceding paragraph,
                     and the Consultant 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.

       7.2.   If any of the covenants contained in Section 6 or 7, 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.

       7.3    If any of the covenants contained in Section 6 or 7, 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.

       7.4    The parties hereto intend to and hereby confer jurisdiction to
              enforce the covenants contained in Sections 6 and 7 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 in such other
              respective jurisdictions, the above covenants as they relate to
              each state being, for this purpose, severable into diverse and
              independent covenants.

       7.5    The Company and the Consultant hereby acknowledge and agree that
              the Company may waive, on a case-by-case basis, the terms and
              covenants of this Section 7 upon the request of the Consultant in
              accordance with the provisions of Section 10.4 hereof, which such
              waiver shall not be unreasonably withheld.

8.     Indemnification

              The Company shall indemnify the Consultant, to the maximum extent
       permitted by applicable law, against all costs, charges and expenses
       incurred or sustained by him in connection with, and to hold him harmless
       from, any action, suit or proceeding by a third party to which he may be
       made a party by reason of his being a consultant of the Company or of any
       Subsidiary or Affiliate of the Company, or arising from his performance
       of services under this Agreement.

9.     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 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):

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If to the Company:

       ARIAD Pharmaceuticals, Inc.
       26 Landsdowne Street
       Cambridge, Massachusetts 02139
       Attention: Harvey J. Berger, M.D.
       Chief Executive Officer
       Telephone:          (617) 494-0400
       Fax:                (617) 494-1828

If to the Consultant:

       Brian A. Lajoie
       6 Crestview Drive
       Millis, MA  02054
       (508) 376-5948

10.    General

       10.1   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.

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

       10.3   This Agreement and the Consultant's rights and obligations
              hereunder may not be assigned by the Consultant or the Company;
              provided, however, the Company may assign this Agreement and its
              rights and obligations hereunder to a successor-in-interest.

       10.4   This Agreement may be amended, modified, superseded, canceled,
              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.

       10.5   This Agreement may be executed in one or more counterparts, and by
              different parties hereto on separate counterparts, each of which
              shall be deemed an original, but all of which together shall
              constitute one and the same instrument.

11.    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.

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

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

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

ARIAD PHARMACEUTICALS, INC.

By: /s/ Harvey J. Berger
    --------------------
Name: Harvey J. Berger, M.D.
Title: Chairman and Chief Executive Officer

CONSULTANT

/s/ Brian A. Lajoie
-------------------
Brian A. Lajoie

                                       7<PAGE>

                                                                   EXHIBIT 10.56

                       2002 EXECUTIVE EMPLOYMENT AGREEMENT

2002 EMPLOYMENT AGREEMENT (the "Agreement") made as of March 4, 2002 by and
between ARIAD Pharmaceuticals, Inc. (the "Company") a Delaware corporation, and
Laurie A. Allen, Esq. (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 she 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 Senior Vice President, Chief Legal
              Officer, and Secretary.

       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 she may be

       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,
              (b) participate in professional activities, and c) provide limited
              consulting services from time to time to Alexandria Real Estate
              Equities, Inc. ("Alexandria"), including attendance at its Board
              of Director meetings (collectively, "Permitted Activities'),;
              PROVIDED, HOWEVER, that such Permitted Activities do not interfere
              with the Employee's duties to the Company and that the consulting
              services to Alexandria be agreed upon by the Company in advance.

2.     TERM OF EMPLOYMENT.

       The term of the Employee's employment under this Agreement (the "Term")
       shall commence on March 4, 2002 or such other date as agreed upon by the
       parties (the "Effective Date") and shall end on December 31, 2004 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.

3.     COMPENSATION.

       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 base salary at the fixed rate of $225,000 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
              biweekly installments, less such deductions or amounts to be
              withheld as shall be required by applicable law and regulations.

       3.2    Each year, the Employee shall be eligible for a discretionary
              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, cash, or deferred compensation, as
              determined by the Board.

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       3.3    The Company shall pay or reimburse the Employee for all reasonable
              expenses actually incurred or paid by her during the Term in the
              performance of her 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, deferred or extra compensation plan, pension,
              group health, disability and life insurance or other so-called
              "fringe" benefits which the Company provides for its senior
              executives at a comparable level to the Employee. All stock
              options and stock awards granted to the Employee shall be subject
              to a vesting schedule which shall be determined by the
              Compensation Committee of the Board. Stock options and stock
              awards, if any, to be granted to the Employee shall also be
              subject to the terms of a stock option plan and certificate or
              stock award plan and certificate, as the case may be.

       3.5    The Company shall grant the Employee an option to purchase 100,000
              shares of the Company's Common Stock at the fair market value on
              the date of the Board's approval of such grant (the "2002 Stock
              Options"), in accordance with the Company's 2001 Stock Plan. 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 their issuance.

       3.6    All options to purchase shares of the Company's Common Stock held
              by the Employee prior to the date hereof pursuant to that certain
              consulting agreement, dated January 2, 2000, by and between the
              Company and the Employee (the "Consulting Agreement"), (that is,
              options to purchase 135,000 shares of the Company's Common Stock)
              (the "Prior Stock Options") shall continue to vest and be
              exercisable subject to the Company's 1991 Stock Option Plan for
              Employees, as amended, and the relevant certificates. As of the
              Effective Date of this Agreement, the Consulting Agreement shall
              terminate, except as provided in Section 8.8 herein.

       3.7    Except as specified in Section 6.1, 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.

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 in Section 3 to the last day of the
              month in which her death occurs.

       (b)    The Employee shall become physically or mentally disabled, whether
              totally or partially, so that she is unable substantially to
              perform her 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 conviction of the Employee of any felony
              involving moral turpitude, (ii) any acts of fraud or embezzlement
              by the Employee involving the Company or any of its Affiliates,
              (iii) the failure by the Employee to perform any of her material
              duties hereunder, (iv) violation of any federal, state or local
              law, or administrative regulation, (v) conduct that results in
              negative publicity, (vi) failure to comply

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              with the policies of the Company, or (vii) a material breach of
              the terms of this Agreement by the Employee (including, without
              limitation, actions taken by Employee which create a conflict of
              interest for Employee between the Company and a competitor). As
              the term "Cause" applies to clauses (iii) through (vii), such
              acts, conduct, or failure, as the case may be, must materially
              adversely affect the Company's business. The Company shall provide
              the Employee written notice of termination pursuant to this
              Section 4, and Employee shall have 30 days to cure or remedy such
              failure or breach, in which case this Agreement shall not be
              terminated.

5.     TERMINATION BY THE EMPLOYEE.

       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 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 Section 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 such term is defined in Section 14.

6.     SEVERANCE.

       6.1    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 the Employee her then-current base salary
              for the remaining period of the applicable Term; (2) all stock
              options granted pursuant to this Agreement 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. Notwithstanding the
              foregoing, if the Company elects not to renew this Agreement
              pursuant to Section 2 herein or this Agreement is terminated
              according to this Section 6.1, prior to March 4, 2006, all 2002
              Stock Options, shall vest immediately.

       6.2    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 options, stock
              awards, similar equity rights, and deferred compensation awards
              granted to the Employee shall immediately vest and remain fully
              exercisable through their original term

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              with all rights; (ii) the relocation loan provided pursuant to
              Section 7 (f) shall be considered fully paid, and all loan
              obligations shall be forgiven; and (iii) the Company shall
              continue to pay Employee her then-current base salary for the
              shorter of (a) six months, or (b) the remaining period of the
              applicable Term.

7.     OTHER BENEFITS.

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

       (a)    Relocation expenses for the Employee and her family, consisting of
              (i) 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 in the greater
              Boston, Massachusetts area; (ii) reasonable travel and lodging to
              visit the greater Boston, Massachusetts area to search for a new
              residence; (iii) the cost of storing household items in the
              greater Boston, Massachusetts area (and transporting them to and
              from storage) for up to six months from the Employee's date of
              employment; and (iv) except as described in the next succeeding
              sentence and subject to prior approval, the reasonable closing
              costs associated with the Employee's 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 her sufficient, on an after-tax basis (taking
              into account federal, state, and local taxes), to put her in the
              same position as would have been the case had no such taxes been
              applicable to any payments of benefits provided in this
              subsection. This special payment will be made to the Employee at
              the time such taxes actually are paid.

       (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 provide the Employee with an automobile
              allowance of $750 per month and standard tax preparation and
              planning services.

       (f)    To facilitate the Employee's relocation, the Company will provide
              the Employee with a one-time relocation loan (the "Loan") in the
              amount of $75,000 to be used towards the purchase of the
              Employee's new principal residence (the "Residence"), payable at
              the time of closing on such residence. The Loan will be secured by
              a second mortgage on the Residence (the "Secured Note"). The
              principal of the Loan shall be repaid within thirty days of the
              occurrence of the following events: (a) the Employee terminates
              this Agreement prior to the third anniversary of execution of the
              Secured Note, except as provided pursuant to Section 5.1 herein,
              or (b) the Company terminates this Agreement for Cause pursuant to
              Section 4 herein. Upon the third anniversary of the execution of
              the Secured Note, the Loan obligation shall be fully forgiven.

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8.     CONFIDENTIALITY.

       8.1    The Employee acknowledges that, during the course of performing
              her 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 her 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 Employee's possession prior to being furnished to such
              Employee, (c) becomes available to the Employee on a
              nonconfidential basis or (d) was independently developed by the
              Employee 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 provisions contained in this Section 8 for a
              period of three years after the termination of this Agreement.

       8.7    In connection with her employment by the Company, the Employee
              hereby acknowledges that she may enter into more than one
              agreement with regard to (a) the confidentiality of certain books,
              records, documents and business, (b) rights to certain inventions,
              proprietary information, and writings, (c) publication of certain
              materials, and (d) other related matters (the "Confidential
              Matters") of the Company (the "Confidentiality Agreements"). In
              order to clarify any potential conflicts between certain
              respective provisions of such Confidentiality Agreements, the
              Employee and the Company hereby agree that, as among such
              Confidentiality Agreements, the provision (or part thereof) in any
              such Confidentiality Agreement which affords the greatest
              protection to the Company with respect to the Confidential Matters
              shall control.

       8.8    The Employee hereby acknowledges that she has previously entered
              into one or more Confidentiality Agreements (as such term is
              defined in Section 8.7 hereof) with the Company. Notwithstanding
              any of the provisions of this Agreement, the Employee acknowledges
              and agrees that Section 8.7 of the Executive Employment Agreement
              by and between the Company and the Employee, dated as of November
              25, 1998, as amended (the "Executive

                                       5
<PAGE>

              Employment Agreement"), Section 6.7 of the Consulting Agreement,
              defined above, and her obligations under such Confidentiality
              Agreements shall continue to survive any termination of the
              Executive Employment Agreement, the Consulting Agreement or 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 her 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 Chief Patent Counsel to the
       Company as her 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, in the event of an earlier termination of this
       Agreement by Employee during the Term (other than any termination by
       Employee pursuant to Section 5.1(a)), for a period of one year following
       the date of such termination by Employee (the "Section 10 Period"): (a)
       Employee shall not compete with the Company or any subsidiary or
       affiliate of the Company for whom she is an employee or officer during
       the Term (each, an "Interested Entity") by (i) entering the employ of, or
       rendering services to, any biopharmaceutical entity which is engaged in a
       business competitive with the Company's Field of Interest in such a
       capacity as to create, on the date of such employment, a potential
       conflict of interest for Employee between such biopharmaceutical entity
       and an Interested Entity, (ii) engaging, during the Section 10 Period, in
       any business for her own account which would be competitive with the
       Company's Field of Interest, or (iii) acquiring, during the Section 10
       Period, an equity or financial interest in any business which is
       competitive with the Company's Field of Interest, directly or indirectly,
       as an individual, partner, shareholder, director, officer, principal,
       agent, employee, trustee, consultant, or any other relationship or
       capacity as to create, on the date of acquisition of such interest, a
       potential conflict of interest for Employee between such business and an
       Interested Entity; PROVIDED, HOWEVER, that nothing contained in this
       Section 10 shall be deemed to prohibit Employee during the Section 10
       Period from providing approved consulting services to Alexandria,
       accepting a position with a law firm, investment bank, venture capital or
       investment fund or other professional or financial services firm or 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") in any manner which is directly or indirectly competitive with
       the Company's business . This non-solicitation and non-utilization
       provision shall not apply to Associates of the Company who have
       previously terminated their relationship with the Company.

       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

                                       6
<PAGE>

                      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 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 her in connection with any action, suit or proceeding to
       which she may be made a party by reason of her 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

                                       7
<PAGE>

       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, Massachusetts 02139
Attention: Chief Executive Officer
Telephone: (617) 494-0400
Fax:       (617) 494-1828

If to the Employee:
Laurie A. Allen, Esq.
11181 Cashmere Street
Los Angeles, California  90049

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.

       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   Except as set forth in Section 8.8 of this Agreement with respect
              to Confidentiality Agreements, 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 a
              successor-in-interest.

       13.5   This Agreement may be amended, modified, superseded, canceled,
              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.

                                       8
<PAGE>

       (b)    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 may be changed at any
              time at the sole discretion of the Company and upon written notice
              to Employee.

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

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

       (e)    "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.

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

ARIAD PHARMACEUTICALS, INC.
                               By: /s/ Harvey J. Berger, M.D.
                               ------------------------------------------------
                               Harvey J. Berger, M.D.
                               Chairman and Chief Executive Officer

                               EMPLOYEE

                                   /s/ Laurie A. Allen, Esq.
                              -------------------------------------------------
                               Laurie A. Allen, Esq.

                              Date:
                                   ---------------------------

                                       9

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