Document:

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                                                                   Exhibit 10.02

                  FIRST AMENDED EXECUTIVE EMPLOYMENT AGREEMENT

     This First Amended Executive Employment Agreement (hereafter referred to as
this "Agreement") is made by and between Point Therapeutics, Inc, a
Massachusetts corporation, (the "Company") and Richard N. Small, CPA (the
"Executive") as of the 31st day of October, 2001 (the "Effective Date"),
amending in part and restating that certain Employment, Confidentiality and
Non-Competition Agreement between the Executive and the Company (under its
former name, Immune Therapeutics, Inc.) dated as of the 22nd day of January,
1997 (the "Original Agreement").

     WHEREAS, subject to the terms and conditions hereinafter set forth, the
Company therefore wishes to continue to employ the Executive as Chief Financial
Officer, Senior Vice President and Treasurer and the Executive wishes to
continue in the service of the Company in those positions;

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual
promises, terms, provisions and conditions set forth in this Agreement, the
parties hereby agree:

     1. Employment.
        ----------
          Subject to the terms and conditions setforth in this Agreement, the
Company hereby offers to continue to employ the Executive and the Executive
hereby agrees to continue in the service of the Company.

     2. Term.
        ----
          Subject to earlier termination as hereafter provided, the Executive's
employment hereunder shall be for a term of three (3) years, commencing on the
Effective Date, and shall automatically be extended thereafter for successive
terms of one year each. The term of this Agreement, as from time to time \
extended, is hereafter referred to as "the term of this Agreement" or "the term
hereof."

     3. Capacity and Performance.
        ------------------------

          (a) During the term hereof, the Executive shall serve the Company as
its Chief Financial Officer and as Senior Vice President and Treasurer. In
addition, and without further compensation, the Executive shall serve as a
director and/or officer of one or more of the Company's Affiliates if so elected
or appointed from time to time.

          (b) During the term hereof, the Executive shall be employed by the
Company on a full-time basis and shall perform the duties and responsibilities
of his positions and such other duties and responsibilities on behalf of the
Company and its Affiliates, reasonably consistent with his positions, as may be
designated from time to time by the President and Chief Executive Officer (the
"President and CEO") or the Board of Directors ("Board") of the Company.

          (c) During the term hereof, the Executive shall devote his full
business time and his best efforts, business judgment, skill and knowledge
exclusively to the advancement of

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the business and interests of the Company and its Affiliates and to the
discharge of his duties and responsibilities hereunder. It is agreed, however,
that the provisions of this Section 3(c) shall not be violated (i) by the
Executive's holding of directorships or related positions in charitable,
educational or not-for-profit organizations which do not involve continuous or
substantial time commitments or (ii) by the Executive's holding of directorships
with for-profit organizations with the approval of the Board or (iii) by passive
personal investment activities, provided that such positions and activities are
not in conflict, and do not otherwise interfere, with the Executive's duties and
responsibilities to the Company and its Affiliates.

     4. Compensation and Benefits. As compensation for all services performed by
        -------------------------
the Executive under and during the term hereof:

          (a) Base Salary. During the term hereof, the Company shall pay the
              -----------
Executive a base salary at the rate of One Hundred and Ninety Thousand Dollars
($190,000) per year, payable in accordance with the payroll practices of the
Company for its executives. The Board, in consultation with the President and
CEO, shall review the Executive's base salary annually and the base salary shall
be subject to increase from time to time by the Board in its sole discretion.
The Executive's base salary, as from time to time increased, is hereafter
referred to as the "Base Salary."

          (b) Incentive and Bonus Compensation. If an incentive or bonus
              --------------------------------
compensation program is made available to executives of the Company generally
and the Executive is not then covered by any incentive or bonus compensation
program, the Executive shall be entitled during the term hereof to participate
in such program in accordance with the terms thereof, as such terms may be
modified or amended by the Company from time to time; provided that the maximum
bonus opportunity for the Executive under any such program shall be not less
than thirty percent (30%) of the Base Salary; and provided further, however,
that nothing contained herein shall obligate the Company to adopt or continue
such an incentive or bonus compensation program. In the absence of such a
program, however, the Executive shall be considered annually by the Board for a
bonus of up to thirty percent (30%) of the Base Salary, based on the assessment
of the Board, in consultation with the President and CEO and in its discretion,
of the Executive's performance and that of the Company against appropriate and
reasonably obtainable goals established annually by the Compensation Committee
of the Board in consultation with the Executive and the President and CEO; which
bonus, if any, shall be payable not later than the end of the first quarter of
the fiscal year following that for which the bonus was earned. Any bonus or
incentive compensation paid to the Executive shall be in addition to the Base
Salary.

          (c) Stock Options. The Executive shall be eligible to be considered
              -------------
annually, during the first quarter of each fiscal year during the term hereof,
for a stock option award, based on the Executive's performance and that of the
Company during the immediately preceding fiscal year, with the number of
options, if any, to be granted to be determined by the Board in its discretion.
Any such options granted shall be subject to the applicable stock option grants,
certificates and plans, shareholder agreements and any other restrictions or
provisions generally

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applicable to shares purchased by Company employees, as these may be amended
from time to time by the Company.

          (d) Vacations. During the term hereof, the Executive shall be entitled
              ---------
to four (4) weeks of vacation per annum, to be taken at such times and intervals
as shall be determined by the Executive, subject to the reasonable business
needs of the Company. Vacation shall otherwise to subject to the policies of the
Company, as in effect from time to time.

          (e) Other Benefits. During the term hereof, the Executive shall be
              --------------
entitled to participate in any and all employee benefit plans from time to time
in effect for employees of the Company generally, except to the extent such
plans are in a category of benefit otherwise provided to the Executive (e.g.,
severance pay). Such participation shall be subject to the terms of the
applicable plan documents and generally applicable Company policies.

          (f) Business Expenses. The Company shall pay or reimburse the
              -----------------
Executive for all reasonable business expenses incurred or paid by the Executive
in the performance of his duties and responsibilities hereunder, subject to such
reasonable substantiation and documentation as may be specified by the Company
from time to time.

     5. Termination of Employment and Severance Benefits. Notwithstanding the
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provisions of Section 2 hereof, the term of this Agreement, and the Executive's
employment hereunder, shall terminate under the following circumstances:

          (a) Death. In the event of the Executive's death during the term
              -----
hereof, the Executive's employment hereunder shall immediately and automatically
terminate. In that event, the Company shall pay to the Executive's designated
beneficiary or, if no beneficiary has been designated by the Executive, to his
estate, (i) the Base Salary earned but not paid through the date of termination,
(ii) pay for any vacation time earned but not used through the date of
termination, (iii) any bonus compensation awarded but unpaid on the date of
termination and (iv) any business expenses incurred by the Executive but
un-reimbursed on the date of termination, provided that such expenses and
required substantiation and documentation are submitted within thirty (30) days
of termination and that such expenses are reimbursable under Company policy (all
of the foregoing, "Final Compensation"). The Company shall have no further
obligation to the Executive hereunder.

          (b) Disability.
              ----------

               (i) The Company may terminate the Executive's employment
     hereunder, upon notice to the Executive, in the event that the Executive
     becomes disabled during his employment hereunder through any illness,
     injury, accident or condition of either a physical or psychological nature
     and, as a result, is unable to perform substantially all of his duties and
     responsibilities hereunder for one hundred and twenty (120) business days
     during any period of three hundred and sixty-five (365) consecutive
     calendar days. In the event of such termination, the Company shall have no
     further obligation to the Executive, other than for payment of Final
     Compensation.

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               (ii) The Board may designate another employee to act in the
     Executive's place during any period of the Executive's disability.
     Notwithstanding any such designation, the Executive shall continue to
     receive the Base Salary in accordance with Section 4(a) hereof, and
     benefits in accordance with Section 4(e) to the extent permitted by the
     then-current terms of the applicable benefit plans, until the Executive
     becomes eligible for disability income benefits under the Company's
     disability income plan or until the termination of his employment,
     whichever shall first occur.

               (iii) While receiving disability income payments under the
     Company's disability income plan, the Executive shall not be entitled to
     receive any Base Salary under Section 4(a) hereof, but shall continue to
     participate in Company benefit plans in accordance with Section 4(e) and
     the terms of such plans until the termination of his employment.

               (iv) If any question shall arise as to whether during any period
     the Executive is disabled through any illness, injury, accident or
     condition of either a physical or psychological nature so as to be unable
     to perform substantially all of his duties and responsibilities hereunder,
     the Executive may, and at the request of the Company shall, submit to a
     medical examination by a physician selected by mutual agreement of the
     Company and the Executive (or his duly appointed guardian, if any) to
     determine whether the Executive is so disabled and such determination shall
     for the purposes of this Agreement be conclusive of the issue. If such
     question shall arise and the Executive shall fail to reasonably cooperate
     in the selection of a physician or to submit to such medical examination,
     the Company's determination of the issue shall be binding on the Executive.

          (c) By the Company for Cause. The Company may terminate the
              ------------------------
Executive's employment hereunder for Cause at any time upon notice to the
Executive; provided that, prior to such termination, the Board shall provide the
Executive an initial notice setting forth in reasonable detail the nature of the
Cause alleged and a reasonable opportunity for the Executive (and, at the
Executive's option, his counsel) to be heard by the Board prior to its final
determination as to whether or not Cause exists. The Board may elect to place
the Executive on unpaid administrative leave at the time of such initial notice
and pending the final determination by the Board; provided, however, that, if
Cause is not found to exist, the Executive shall be paid the Base Salary for the
period of administrative leave. Only the following, as determined by the Board
in its reasonable judgment, shall constitute Cause for termination:

               (i) The Executive's willful failure to perform, or gross
     negligence in the performance of, his duties and responsibilities to the
     Company or any of its Affiliates, which failure or neglect remains uncured,
     continues or recurs after ten (10) business days' notice from the Board
     setting forth in reasonable detail the nature of such failure or neglect;

               (ii) Commission by the Executive of a felony or other crime
     involving moral turpitude;

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               (iii) Fraud, embezzlement or other material dishonesty by the
     Executive with respect to the Company or any of its Affiliates; or

               (iv) Material breach by the Executive of any of his obligations
     under Section 7, 8 or 9 hereof.

Upon termination of the Executive's employment for Cause in accordance herewith,
the Company shall have no further obligation to the Executive, other than for
Final Compensation.

          (d) By the Company Other than for Cause. The Company may terminate the
              -----------------------------------
Executive's employment hereunder other than for Cause at any time upon notice to
the Executive. In the event of such termination, in addition to Final
Compensation, the Company shall continue to pay the Executive the Base Salary
for the period of twelve (12) months following the date of termination and, in
lieu of continuation of the Executive's participation, or that of any of his
eligible dependents, in any of the Company's group benefit plans following
termination of his employment, shall provide the Executive a single lump sum
payment in the amount of Twenty-Five Thousand Dollars ($25,000). Base Salary to
which the Executive is entitled hereunder shall be payable in accordance with
the normal payroll practices of the Company and shall begin at the Company's
next regular payroll period following the date of termination. The lump sum
payment to which the Executive is entitled hereunder shall be paid at the
Company's next regular payday following the date of termination.

          (e) By the Executive for Good Reason. The Executive may terminate his
              --------------------------------
employment hereunder for Good Reason, upon notice to the Company setting forth
in reasonable detail the nature of such Good Reason. The following shall
constitute Good Reason for termination by the Executive:

               (i) Failure of the Company to continue the Executive in the
     positions of Chief Financial Officer, Senior Vice President and Treasurer;

               (ii) Material diminution or other material adverse change in the
     nature or scope of the Executive's responsibilities, duties or authority
     which remains uncured, continues or recurs after ten (10) business days'
     notice from the Executive setting forth in reasonable detail the nature of
     such diminution or change; or

               (iii) Material failure of the Company to provide the Executive
     the Base Salary and other compensation and benefits in accordance with the
     terms of Section 4 hereof, other than any inadvertent failure which is
     cured within ten (10) business days following notice from the Executive
     setting forth in reasonable detail the nature of such failure.

In the event of termination for Good Reason in accordance with this Section
5(e), in addition to Final Compensation, the Company shall continue to pay the
Executive the Base Salary for the period of twelve (12) months following the
date of termination and, in lieu of continuation of the Executive's
participation, or that of any of his eligible dependents, in any of the
Company's group benefit plans following termination of his employment, shall
provide the Executive a

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single lump sum payment in the amount of Twenty-Five Thousand Dollars ($25,000).
Base Salary to which the Executive is entitled hereunder shall be payable in
accordance with the normal payroll practices of the Company and will begin at
the Company's next regular payroll period following the date of termination. The
lump sum payment to which the Executive is entitled hereunder shall be paid at
the Company's next regular payday following the date of termination.

          (f) By the Executive Other than for Good Reason. The Executive may
              -------------------------------------------
terminate his employment hereunder at any time upon sixty (60) days' notice to
the Company. In the event of termination by the Executive pursuant to this
Section 5(f), the Board may elect to waive the period of notice, or any portion
thereof, and, if the Board so elects, the Company shall pay the Executive the
Base Salary for the notice period (or for any remaining portion of the period).

          (g) Upon a Change of Control.
              ------------------------

               (i) If a Change of Control occurs and, within two years following
     such Change of Control, the Company terminates the Executive's employment
     other than for Cause, or the Executive terminates his employment for Good
     Reason, then, in lieu of any payments to the Executive under Section 5(c)
     or 5(d) hereof, the Company (A) shall pay the Executive, within ten (10)
     business days following the date his employment terminates, a lump sum
     payment equal to one and one-half times the sum of the Base Salary at the
     rate in effect on the date of termination and the amount of any incentive
     and bonus compensation paid to him pursuant to Section 4(b) hereof during
     the preceding twelve (12) months and (B) in lieu of continuation of the
     Executive's participation, or that of any of his eligible dependents, in
     any of the Company's group benefit plans following termination of his
     employment, shall provide the Executive a single lump sum payment in the
     amount of Thirty-Seven Thousand, Five Hundred Dollars ($37,500).

               (ii) Notwithstanding the foregoing, the payments to which the
     Executive would be entitled under this Agreement as a result of a Change of
     Control shall be reduced to the maximum amount for which the Company will
     not be limited in its deduction pursuant to Section 280G of the Internal
     Revenue Code of 1986, as amended, or any successor provision. Any such
     reduction shall be applied to the amounts due to the Executive hereunder as
     the Executive may reasonably determine.

               (iii) "Change of Control" means the occurrence after the
     Effective Date of one of the following: (A) any "Person," as such term is
     used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934 as
     amended (the "Exchange Act"), other than the Company or one of its
     Affiliates or any trustee or other fiduciary holding securities under an
     employee benefit plan of the Company or one of its Affiliates, becomes a
     beneficial owner (within the meaning of Rule 13d-3, as amended, as
     promulgated under the Exchange Act), directly or indirectly, in one or a
     series of transactions, of securities representing more than fifty percent
     (50%) of the combined voting power of the Company's then outstanding
     securities; (B) during any period of two consecutive years

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     (not including any period prior to the Effective Date), individuals who at
     the beginning of such period constitute the Board, and any new director
     (other than a director designated by a Person, as hereinabove defined, who
     has entered into an agreement with the Company to effect a transaction
     described in clause (A), (C) or (D) of this Section 5.g.(iii)) whose
     election by the Board or nomination for election by the Company's
     stockholders was approved by a vote of at least two-thirds of the directors
     then still in office who either were directors at the beginning of the
     period or whose election or nomination for election was previously so
     approved, cease for any reason to constitute at least a majority thereof;
     or (C) there occurs a merger or consolidation of the Company with any other
     corporation, 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 fifty
     percent (50%) of the combined voting power of the voting securities of the
     Company or such surviving entity outstanding immediately after such merger
     or consolidation; or (D) the stockholders of the Company approve a plan of
     a complete liquidation of the Company; or (E) there occurs a closing of a
     sale or other disposition by the Company of all or substantially all of the
     assets of the Company other than to one or more of the Company's Affiliates
     or any trustee or other fiduciary holding securities under an employee
     benefit plan of the Company or any of its Affiliates; notwithstanding the
     foregoing, however, the pending merger between the Company and a subsidiary
     of HMSR Inc., if consummated, shall not constitute a Change of Control.

               (iv) The Company shall promptly reimburse the Executive for the
     amount of all reasonable attorneys' fees and expenses incurred by the
     Executive in seeking to obtain or enforce any right or benefit provided the
     Executive under this Section 5(g).

     6. Effect of Termination. The provisions of this Section 6 shall apply to
        ---------------------
any termination of this Agreement, pursuant to Section 5 or otherwise.

          (a) Payment by the Company of any Final Compensation, Base Salary,
incentive or bonus compensation and any lump sum payment in lieu of benefits
that is due the Executive in each case in accordance with the applicable
termination provision of Section 5 shall constitute the entire obligation of the
Company to the Executive.

          (b) Except for any right that the Executive may have to continue his
coverage and that of his eligible dependents at his cost under the Company's
group health and dental plans through the federal law known as "COBRA" or any
successor law, benefits shall terminate pursuant to the terms of the applicable
benefit plans based on the date of termination of the Executive's employment
without regard to any continuation of Base Salary or other payment to the
Executive following such date of termination.

          (c) Provisions of this Agreement shall survive any termination if so
provided herein or if necessary or desirable to accomplish the purposes of other
surviving provisions, including without limitation the obligations of the
Executive under Sections 7, 8 and 9 hereof.

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The obligation of the Company to make payments to or on behalf of the Executive
under Section 5(d), 5(e ) or 5(g) hereof is expressly conditioned upon the
Executive's continued full performance of his obligations under Sections 7, 8
and 9 hereof. The Executive recognizes that, except as expressly provided in
Section 5(d), 5(e) or 5(g), no compensation is earned after termination of
employment.

     7. Confidential Information.
        ------------------------

          (a) The Executive acknowledges that the Company and its Affiliates
continually develop Confidential Information; that the Executive may develop
Confidential Information for the Company or its Affiliates; and that the
Executive may learn of Confidential Information during the course of employment.
The Executive shall comply with the policies and procedures of the Company and
its Affiliates for protecting Confidential Information and shall not disclose to
any Person or use, other than as required by applicable law or for the proper
performance of his duties and responsibilities to the Company and its
Affiliates, any Confidential Information obtained by the Executive incident to
his employment or other associations with the Company or any of its Affiliates.
The Executive understands that this restriction shall continue to apply after
his employment terminates, regardless of the reason for such termination.

          (b) All documents, records, tapes and other media of every kind and
description relating to the business, present or otherwise, of the Company or
its Affiliates and any copies, in whole or in part, thereof (the "Documents"),
whether or not prepared by the Executive, shall be the sole and exclusive
property of the Company and its Affiliates. The Executive shall safeguard all
Documents and shall surrender to the Company at the time his employment
terminates, or at such earlier time or times as the Board or its designee may
specify, all Documents then in the Executive's possession or control.

     8. Assignment of Rights to Intellectual Property.
        ---------------------------------------------

          (a) The Executive agrees to maintain accurate and complete
contemporaneous records of, and to immediately and fully disclose and deliver to
the Company, all Intellectual Property, as hereafter defined.

          (b) The Executive hereby represents and warrants that all of the
Products resulting from his work for the Company shall be original and shall not
infringe the rights of any third party, including without limitation
intellectual property rights, such as rights pertaining to patents, trademarks,
copyrights and trade secrets.

          (c) The Executive hereby assigns and agrees in the future to assign to
the Company (or as otherwise directed by the Company) his full right, title and
interest in and to all Intellectual Property. The Executive agrees to provide,
at the Company's request, all further cooperation which the Company determines
is necessary or desirable to accomplish the complete transfer of the
Intellectual Property and all associated rights to the Company, its successors,
assigns and nominees, and to ensure the Company the full enjoyment of the
Intellectual Property, including without limitation executing further
applications both domestic

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and foreign, specifications, oaths, assignments, consents, releases, government
communications and other commercially reasonable documentation, responding to
corporate diligence inquiries, and providing good faith testimony by affidavit,
declaration, deposition, in-person or other proper means, in support of any
effort by the Company to establish, perfect, defend, or otherwise enjoy, in this
or any foreign country, its rights acquired pursuant to this Agreement through
prosecution of governmental filings, regulatory proceedings, litigation or other
means.

          (d) To the extent that the Executive cannot assign and transfer any of
his full right, title, and interest in the Intellectual Property then the
Executive hereby grants the Company and its Affiliates an irrevocable,
worldwide, fully paid-up, royalty-free, exclusive license, with the right to
sublicense through multiple tiers, to make, use, sell, improve, reproduce,
distribute, perform, display, transmit, manipulate in any manner, create
derivative works based upon, and otherwise exploit or utilize in any manner the
Intellectual Property. The Executive will not charge the Company for time spent
in complying with any of his obligations under this Section 8. All copyrightable
works that the Executive creates shall be considered "work made for hire."

     9. Restricted Activities. The Executive agrees that some restrictions on
        ---------------------
his activities during and after his employment are necessary to protect the
goodwill, Confidential Information and other legitimate interests of the Company
and its Affiliates:

          (a) While the Executive is employed by the Company and for twenty-four
(24) months after his employment terminates (the "Non-Competition Period"), the
Executive shall not, directly or indirectly, whether as owner, partner,
investor, consultant, agent, employee, co-venturer or otherwise, compete with
the Business of the Company and its Affiliates anywhere in the world or
undertake any planning for any business competitive with the Business of the
Company and its Affiliates. For the purposes of this Section 9, the "Business of
the Company and its Affiliates" shall include all Products, including without
limitation (i) protease inhibitors, (ii) chemically synthesized homo and hetero
bivalent or multivalent conjugates that are designed to induce the association
or aggregation of T-cell surface receptors, (iii) agents that bind to DPP IV and
(iv) agents that bind to FAP, and the Executive's undertaking shall encompass
all items, products and services that may be used in substitution for the
Products.

          (b) The Executive further agrees that while he is employed by the
Company and during the Non-Competition Period, the Executive will not hire or
attempt to hire any employee of the Company or any of its Affiliates, assist in
such hiring by any Person, encourage any such employee to terminate his or her
relationship with the Company or any of its Affiliates, or solicit or encourage
any independent contractor doing business with the Company or any of its
Affiliates to terminate or diminish its relationship with them.

     10. Enforcement of Covenants. The Executive acknowledges that he has
         ------------------------
carefully read and considered all the terms and conditions of this Agreement,
including without limitation the restraints imposed upon him pursuant to
Sections 7, 8 and 9 hereof. The Executive agrees that said restraints are
necessary for the reasonable and proper protection of the Company and its
Affiliates and that each and every one of the restraints is reasonable in
respect to subject matter, length of time and geographic area. The Executive
further acknowledges that, were he to breach

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any of the covenants contained in Sections 7, 8 or 9 hereof, the damage to the
Company and its Affiliates would be irreparable. The Executive therefore agrees
that the Company and its Affiliates, in addition to any other remedies available
to them, shall be entitled to preliminary and permanent injunctive relief
against any breach or threatened breach by the Executive of any of said
covenants. The parties further agree that, in the event that any provision of
Section 7, 8 or 9 hereof shall be determined by any court of competent
jurisdiction to be unenforceable by reason of its being extended over too great
a time, too large a geographic area or too great a range of activities, such
provision shall be deemed to be modified to permit its enforcement to the
maximum extent permitted by law.

     11. Conflicting Agreements. The Executive hereby represents and warrants
         ----------------------
that the execution of this Agreement and the performance of his obligations
hereunder will not breach or be in conflict with any other agreement to which
the Executive is a party or is bound and that the Executive is not now subject
to any covenants against competition or similar covenants or any court order or
other legal obligation that would affect the performance of his obligations
hereunder. The Executive will not disclose to or use on behalf of the Company
any proprietary information of a third party without such party's consent.

     12. Definitions. Words or phrases which are initially capitalized or are
         -----------
within quotation marks shall have the meanings provided in this Section 12 and
as provided elsewhere in this Agreement. For purposes of this Agreement, the
following definitions apply:

          (a) "Affiliates" means all persons and entities directly or indirectly
controlling, controlled by or under common control with the Company, where
control may be by either management authority or equity interest.

          (b) "Confidential Information" means any and all information of the
Company and its Affiliates that is not generally known by others with whom any
of them compete or do business, or with whom any of them plan to compete or do
business and any and all information, publicly known in whole or in part or not,
which, if disclosed by the Company or any of its Affiliates would assist in
competition against them. Confidential Information includes without limitation
such information relating to (i) the development, research, testing,
manufacturing, marketing and financial activities of the Company and its
Affiliates, (ii) the Products, (iii) the costs, sources of supply, financial
performance and strategic plans of the Company and its Affiliates, (iv) the
identity and special needs of the customers of the Company and its Affiliates
and (v) the people and organizations with whom the Company and its Affiliates
have business relationships and the nature and substance of those relationships.
Confidential Information also includes any information that the Company or any
of its Affiliates have received, or may receive hereafter, belonging to
customers or others with any understanding, express or implied, that the
information would not be disclosed.

          (c) "Intellectual Property" means inventions, discoveries,
developments, methods, processes, compositions, works, concepts and ideas
(whether or not patentable or copyrightable or constituting trade secrets) (i)
that are conceived, made, created, developed or reduced to practice by the
Executive (whether alone or with others, whether or not during normal

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business hours or on or off Company premises) at any time during the Executive's
employment or other associations with the Company, whether before or after the
Effective Date, that relate to either the Products or any prospective activity
of the Company or any of its Affiliates or that make use of Confidential
Information or any of the equipment or facilities of the Company or any of its
Affiliates or (ii) that, although conceived, made, created, developed or reduced
to practice by the Executive prior to the Executive's employment or other
associations with the Company, have been incorporated by the Executive into any
of the Products.

          (d) Except as otherwise provided for purposes of Section 5(g),
"Person" means an individual, a corporation, a limited liability company, an
association, a partnership, an estate, a trust and any other entity or
organization, other than the Company or any of its Affiliates.

          (e) "Products" mean all products planned, researched, developed,
tested, manufactured, sold, licensed, leased or otherwise distributed or put
into use by the Company or any of its Affiliates, together with all services
provided or planned by the Company or any of its Affiliates, during the
Executive's employment.

     13. Withholding. All payments made by the Company under this Agreement
         -----------
shall be reduced by any tax or other amounts required to be withheld by the
Company under applicable law.

     14. Assignment. Neither the Company nor the Executive may make any
         ----------
assignment of this Agreement or any interest herein, by operation of law or
otherwise, without the prior written consent of the other; provided, however,
that the Company may assign its rights and obligations under this Agreement
without the consent in the event that the Executive is transferred to a position
with any of the Affiliates or in the event that the Company shall hereafter
affect a reorganization, consolidate with, or merge into, any other Person or
transfer all or substantially all of its properties or assets to any other
Person. This Agreement shall inure to the benefit of and be binding upon the
Company and the Executive, their respective successors, executors,
administrators, heirs and permitted assigns.

                                      -11-

<PAGE>

     15. Severability. If any portion or provision of this Agreement shall to
         ------------
any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then the remainder of this Agreement, or the application of such
portion or provision in circumstances other than those as to which it is so
declared illegal or unenforceable, shall not be affected thereby, and each
portion and provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by law.

     16. Waiver. No waiver of any provision hereof shall be effective unless
         ------
made in writing and signed by the waiving party. The failure of either party to
require the performance of any term or obligation of this Agreement, or the
waiver by either party of any breach of this Agreement, shall not prevent any
subsequent enforcement of such term or obligation or be deemed a waiver of any
subsequent breach.

     17. Notices. Any and all notices, requests, demands and other
         -------
communications provided for by this Agreement shall be in writing and shall be
effective when delivered in person or deposited in the United States mail,
postage prepaid, registered or certified, and addressed to the Executive at his
last known address on the books of the Company or, in the case of the Company,
at its principal place of business, attention of the President and CEO, or to
such other address as either party may specify by notice to the other actually
received.

     18. Entire Agreement. This Agreement constitutes the entire agreement
         ----------------
between the parties and supersedes all prior communications, agreements and
understandings, written or oral, with respect to the terms and conditions of the
Executive's employment; provided, however, that this Agreement shall not
terminate or supersede any additional obligations of the Executive pursuant to
the Original Agreement or any other agreement with respect to confidential
information or to the assignment of rights to intellectual property or to any
non-competition or other restrictions on the activities of the Employee.

     19. Amendment. This Agreement may be amended or modified only by a written
         ---------
instrument signed by the Executive and by a expressly authorized representative
of the Company.

     20. Headings. The headings and captions in this Agreement are for
         --------
convenience only and in no way define or describe the scope or content of any
provision of this Agreement.

     21. Counterparts. This Agreement may be executed in two or more
         ------------
counterparts, each of which shall be an original and all of which together shall
constitute one and the same instrument.

                  [Remainder of page intentionally left blank]

                                      -12-

<PAGE>

     22. Governing Law. This is a Massachusetts contract and shall be construed
         -------------
and enforced under and be governed in all respects by the laws of the
Commonwealth of Massachusetts, without regard to the conflict of laws principles
thereof.

     IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument
by the Company, by its duly authorized representative, and by the Executive, as
of the date first above written.

THE EXECUTIVE:                                       THE COMPANY

/s/ Richard N. Small                        By:  /s/ Donald R. Kiepert, Jr.
--------------------                             -------------------------------

                                            Title:  President and CEO
                                                    ----------------------------

                                      -13-<PAGE>

                                                                   Exhibit 10.03

                           EMPLOYMENT, CONFIDENTIALITY
                          AND NON-COMPETITION AGREEMENT
                          -----------------------------

     THIS EMPLOYMENT, CONFIDENTIALITY AND NON-COMPETITION AGREEMENT (the
"Agreement") is made and entered into this 26th day of September, 2001 (the
"Commencement Date"), by and between:

                    POINT THERAPEUTICS, INC., a Massachusetts
                    ------------------------
                    Corporation duly organized under law and
                    having an usual place of business at 75
                    Kneeland Street, 10th Floor, Boston, MA 02111
                    Attn: Donald R. Kiepert, Jr., President and
                    CEO, (hereinafter referred to as the
                    "COMPANY");

                                      and

                    DR. LAWRENCE NUSSBAUM of 385 Ridge Avenue,
                    ----------------------
                    Wrightstown, PA 18940 (the "Employee").

     The Company wishes to employ the Employee to serve as the Chief Medical
Officer and the Employee desires to be so employed by the Company.

     NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, accepted and agreed to, the Company and the Employee hereby agree
as follows:

     1. EMPLOYMENT. The Company hereby employs the Employee as the Chief Medical
        ----------
Officer, and the Employee accepts such employment, effective as of the date
hereof, for the compensation and on the other terms and conditions set forth
below.

     2. PERIOD OF EMPLOYMENT; DUTIES.
        ----------------------------

                                       1

<PAGE>

          2.1 Employment Period. The employment of the Employee shall be "at
              -----------------
will" commencing as of October 22, 2001 (the "Effective Date"), and continuing
thereafter until terminated by either party upon sixty (60) days prior written
notice to the other or earlier if the employment is terminated pursuant to
Article 4.1 or 4.2 below (the "Employment Period"). During the Employment
Period, Employee shall be employed as the Chief Medical Officer, and shall have
the title, duties and responsibilities normally and customarily associated with
said office. The Employee shall report to and take direction from the President
of the Company.

          By way of illustration, the Employee's areas of responsibility and
duty shall include, but not limited to, providing overall clinical development
expertise to the design, execution and documentation of clinical trials for the
Company's lead products; to oversee the clinical development progress currently
being conducted by ILEX Oncology; and generally to be involved in protocol
development, patient enrollment, study maintenance, data development, evaluation
of safety and study related document preparation for present and future clinical
trials and to develop a rational clinical development plan for the Company.

          During the Employment Period, Employee shall devote substantially all
of his business time, attention and loyalty to the Company; provided, however,
                                                            --------  -------
that the foregoing shall not prevent the Employee from serving on the Board of
Directors of or otherwise volunteering his services for non-profit corporations
or other entities approved by the Board of Directors (the "Board"), which
approval shall not be unreasonably withheld or delayed.

          The Employee warrants and represents that he is under no contractual
or other restrictions

                                       2

<PAGE>

or obligations which will in any way limit his activities on behalf of or
employment by the Company; and the entering into of this Agreement by the
Employee does not violate any agreement, contract or confidentiality agreement
that the Employee may have entered into or that is binding upon the Employee.
The Company warrants and represents to the Employee that (i) this Agreements has
been approved by all requisite corporate action on the part of the Company and
is enforceable against the Company in accordance with its terms, (ii) the
entering into of this Agreement does not violate any agreement that the Company
may have entered into or that is binding upon the Company, and (iii) the
Employee as an officer of the Company will be covered by the Company's D&O
liability insurance.

     3. COMPENSATION
        ------------

          3.1 Annual Base Salary. Subject to the provisions hereof, during the
              ------------------
first year of the Employment Period commencing with the Effective Date, the
Company shall pay the Employee, not less frequently than bi-weekly in arrears, a
base salary at the annual rate of Two Hundred Ten Thousand ($210,000) Dollars
(the "Base Salary"). Thereafter, the Base Salary shall be determined by the
      -----------
Board, but in no event shall the Base Salary be less than Two Hundred Ten
Thousand ($210,000) Dollars. All payments of Base Salary and other compensation
to the Employee shall be made after deduction of any taxes which are required to
be withheld with respect thereto under applicable federal and state laws.

          3.2 Fringe Benefits. From and after the Effective Date, the Employee
              ---------------
shall be entitled to all rights and benefits for which he shall be eligible
under group insurance and other

                                       3

<PAGE>

fringe benefits which may be provided, from time to time, to the Company's
executives generally, including, major health plans of which the Company pays
Eighty (80%) percent of the medical and dental coverage premium and One Hundred
(100%) percent of the life, accidental death and dismemberment and long-term
disability insurance policies. Until the Employee and his family have relocated
to the Greater Boston Metropolitan Area ("Boston"), the Company shall at the
Company's expense provide Employee and each member of his family with health
care coverage in Eastern Pennsylvania substantially equivalent to that which the
Employee and his family would be entitled hereunder had the Employee and his
family relocated to Boston except that for the period during which it is
effective Employee may elect the COBRA coverage at his former employer in which
event the Company shall promptly reimburse Employee 80% of the expense of his
COBRA coverage.

          3.3 Reimbursement of Expenses. The Company shall reimburse the
              -------------------------
Employee for the out-of-pocket expenses incurred by the Employee in the
fulfillment of his duties and responsibilities hereunder. Reimbursement shall be
in accordance with the Board's policies and procedures applicable to senior
management and in compliance with the requirements of the Internal Revenue Code
of 1986, as amended. Reimbursement of travel expenses will be consistent with
the Company's travel policies applicable to senior management Further, the
Company will reimburse the Employee for: (i) expenses and fees incurred by the
Employee in maintaining appropriate licenses, affiliations with professional
societies and organizations and CME expenses; (ii) the cost of attending
conferences which provide knowledge and/or

                                       4

<PAGE>

networking opportunities beneficial to the Company and (iii) the reasonable and
customary pre-relocation expenses of the Employee which the Employee would not
have incurred but for the fact that the Employees is conducting the business of
the Company from his home including, without limitation, office supplies, office
equipment such as computer, answering machine, filing cabinets and the like and
telephone, fax, postage and other communication expense.

          3.4 Vacations and Holidays. During the Employment Period, the Employee
              ----------------------
shall be entitled to a total of twenty (20) paid vacation days annually (accrued
monthly with five (5) days carryover permitted to the following year). In
addition, the Employee shall be entitled to eleven (11) paid holidays recognized
by the Company.

          3.5 Base Salary Adjustments.
              -----------------------

               (A) Bonuses: The Company may award an annual bonus to the
                   -------
     Employee of a maximum of thirty (30%) percent of the then Base Salary. Any
     such bonus shall not be added to the Base Salary. Notwithstanding the
     foregoing, upon completion of the first year of employment only, the
     Employee shall be entitled to a bonus of at least fifteen (15%) percent of
     the Base Salary, i.e., Thirty One Thousand Five Hundred ($31,500.00)
     Dollars, and up to thirty (30%) percent in accordance with the provisions
     of this Subsection (A).

               (B) Merit Increases. On the first anniversary date of the
                   ---------------
     Effective Date and annually thereafter, the Base Salary may be increased
     based on the Company: (i) achieving the quarterly and annual goals and
     objectives mutually agreed upon for the Employee's areas of responsibility,
     and (ii) the Company achieving the annual financial goals and objectives.
     The merit increase, when made, shall be added to the Base Salary.

               (C) Stock Option Awards: In addition to the stock option grants
                   -------------------
     specified in Article 3.7, the Board may, on an annual basis in its
     discretion, grant stock options to the Employee based on: (i) the
     Employee's performance and, (ii) the Company progress and attainment of its
     business goals and objectives. The granting of the stock options and the
     terms and conditions of the

                                       5

<PAGE>

     award (e.g. the number of shares granted and the vesting schedule, shall be
     solely within the discretion of the Board of Directors.

          3.6 Severance Benefits.
              ------------------

          Notwithstanding anything to the contrary in this Agreement contained,
it is agreed and understood as follows:

               (A) Upon the termination of this Agreement by the Company for
     other than Cause or by the Employee for Good Reason, as such terms are
     defined herein (i) the Company shall then pay the Employee a lump-sum
     severance payment equal to one (1) year's then Base Salary and thereafter
     for one (1) year fringe benefits to be paid in the usual and customary
     manner in accordance with the terms of this Agreement, and (ii) all stock
     options granted by the Company to the Employee (whether hereunder or
     otherwise) to the extent not previously vested shall thereupon vest.

               (B) In the event of death, the Company shall then pay the
     Employee's estate a lump-sum severance payment equal to three (3) month's
     then Base Salary and thereafter for three (3) month's fringe benefits to be
     paid in the usual and customary manner in accordance with the terms of this
     Agreement to Employee's family to the same extent as they would benefit if
     he were alive, and (ii) all stock options granted by the Company to the
     Employee (whether hereunder or otherwise) to the extent not previously
     vested shall thereupon vest through the next following vesting date.

               (C) In the event of disability, (i) the Company shall continue
     until the Company's long-term disability insurance commences the Employee's
     Base Salary and fringe benefits to be paid in the usual and customary
     manner in accordance with the terms of this Agreement, and (ii) all stock
     options granted by the Company to the Employee (whether hereunder or
     otherwise) to the extent not previously vested shall thereupon vest through
     the next following vesting date.

               (D) If the Employee is terminated for Cause or withdraws from the
     Company for other than Good Reason then, in any of such cases: (i) the
     provisions of Article 3.6(A) (B) and (C) shall not apply, shall be null and
     void, and the Employee shall not be entitled to severance payments, and
     (ii) the Employee's unvested stock options will cease to vest.

                                       6

<PAGE>

          3.7 Stock Option Grants.
              -------------------

          The Employee is hereby granted an Incentive Stock Option to purchase
up to Eighteen Thousand Seven Hundred Fifty (18,750) Shares of the Company's
Common Stock, and a Non-Qualified Stock Option to purchase Six Thousand Seven
Hundred Fifty (6,750) Shares of the Company's Common Stock (collectively,
"Shares") each at an exercise price of Sixteen ($16.00) Dollars per share (the
"Purchase Price"), in accordance with the terms and conditions of the Company's
Stock Option Plan (the "Plan"), Incentive Stock Option Grant Agreement and
Non-Qualified Stock Option Grant Agreement (collectively, the "Grants"). True
and complete copies of the Plan, the Grants and the Company's most current
audited financial statements have heretofore been delivered to the Employee. The
Company represents that the most current private placement memorandum used by
the Company in connection with the offering of its securities is dated more than
ninety (90) days from the date hereof.

     It is understood and agreed that the vesting of the Shares, unless sooner
vested under Article 3.6(A)(B) or (C), shall occur in accordance with the
following schedule:

          (i)  Two Thousand (2,000) Incentive Stock Options shall vest on
               January 1, 2002;
          (ii) Four Thousand Two Hundred Fifty (4,250) Shares qualifying as
               Incentive Stock Options and Three Thousand Five Hundred Eighty
               Three (3,583) non-qualified Shares shall vest on October 1, 2002;
          (iii) Six Thousand Two Hundred Fifty (6,250) Shares qualifying as
               Incentive Stock Options and One Thousand Five Hundred Eighty
               Three (1,583) non-qualified Shares shall vest on October 1, 2003;
               and
          (iv) Six Thousand Two Hundred Fifty (6,250) Shares and One Thousand
               Five Hundred Eighty Four (1,584) non-qualified

                                       7

<PAGE>

               Shares shall vest on September 29, 2004.

          Notwithstanding anything to the contrary herein contained, it is
agreed and understood that, in the event the employment is terminated by the
Company without Cause or by the Employee for Good Reason, then all the options
of the Employee (whether granted hereunder or otherwise) not exercised by the
ninetieth (90) day following the date of termination shall automatically with
out any act upon the part of the Company or the Employee be converted to
non-qualified stock options which are exercisable at any time and from time to
time in whole or in part within two (2) years from the date of termination of
employment. Employee shall be entitled to, on a pro rata basis, all registration
and other rights with respect to the sale or other distribution of securities of
the Company obtained upon the exercise of options as may be granted to other
members of management subject to any lock-up, co-sale, tag-along or other
restriction as may be imposed on securities of senior management generally.

          3.8 Relocation Expense Reimbursement. The Company and the Employee
              --------------------------------
agree that during the first year of the Employment Period, the Employee will not
be required to relocate to the Boston unless mutually agreed. After the first
year of the Employment Period, the Company may require that the Employee
relocate to Boston and if such request is made, the Employee will relocate and
the Company will reimburse the Employee for securing temporary housing until his
oldest son graduates from high school, at which time he will establish a
permanent residency in Boston.

          Upon the Employee's permanent relocation, he will be reimbursed for
all of the

                                       8

<PAGE>

reasonable and customary expenses associated with said relocation provided he
relocates to within a 40 mile radius of the Company's principal executive
office, including:

          (i)  Up to two points charged by the lender in connection with the
               Employee securing a first mortgage on the home;
          (ii) Costs of temporary housing for up to a period of three (3)
               months;
          (iii) Moving expenses associated with the move of household goods and
               furnitures;
          (iv) Closing costs;
          (v)  Three house-hunting trips with wife and children, and
          (vi) Gross up on non-deductible expenses associated with the
               relocation.

          Further, in the event that the Employee temporarily relocates to
Boston, the Company will reimburse the Employee for three (3) round trip home
visits per month. At the time of the Employee's permanent relocation, the
Employee's then Base Salary will be increased by five (5%) percent.

          Notwithstanding anything to the contrary contained herein and until
such time as the employee and his family shall relocate to Boston, it is
understood and agreed that the Employee shall be entitled to spend a portion of
his business time at home, and that the time that the Employee spends at home
and the time spent at the Company's principal office in Boston shall be
discussed and mutually agreed upon, taking into account the needs and
requirements of the Employee and his family, and the Company's needs and
requirements.

     4. EARLY TERMINATION OF PERIOD OF EMPLOYMENT.
        -----------------------------------------

          4.1 Employee's Earlier Termination. The Employee shall have the right
              ------------------------------
to

                                       9

<PAGE>

terminate Employee's employment hereunder: (i) without Good Reason, as
hereinafter defined, (e.g. for any reason or no reason whatsoever other than
death, disability or for Good Reason, as hereinafter defined) upon sixty (60)
days prior written notice to the Company and (ii) for Good Reason, immediately
upon, or at any time after, giving written notice of such termination. Further,
and subject to the provisions hereof, Employee's employment with the Company
shall automatically terminate on his death or disability.

          4.2 Company's Earlier Termination of Employment. The Company shall
              -------------------------------------------
have the right to terminate Employee's employment hereunder: (i) without Cause
(e.g. for any reason or no reason whatsoever other than death, disability or for
Cause, as hereinafter defined) upon sixty (60) days prior written notice to the
Employee and (ii) for Cause, immediately upon, or at any time after, giving
written notice of such termination.

          4.3 Definitions.
              -----------

          As used herein for "Cause" shall mean the occurrence of any of the
following: (a) the conviction of Employee of any felony, (b) the persistent
willful neglect or dereliction of his duties and responsibilities as set forth
in Article 2 hereof, which persistent willful neglect and dereliction of duties
and responsibilities continues for a period of fifteen (15) days after written
notice is given to the Employee by the Board setting forth in reasonable detail
the state of facts constituting such persistent willful neglect or dereliction
of duties and responsibilities, (c) the breach by the Employee of this Agreement
in any material respect (the failure of the Employee to relocate shall be deemed
material), which breach continues for a period of fifteen (15) days after

                                       10

<PAGE>

written notice is given to the Employee by the Board setting forth in reasonable
detail the state of facts constituting such breach, or (d) the engaging by the
Employee in fraudulent conduct which is materially detrimental to the Company.
Notwithstanding, Cause shall not include any exercise of business judgment in
good faith. A determination that there is FOR CAUSE termination of the
Employee's employment shall be made by the Board, after notice to Employee and
providing the Employee an opportunity to be heard with counsel, and such
determination shall require that the Board find that there has occurred an event
of the kind described in (a), (b), (c) or (d) above.

          As used herein, the term "disability" shall mean the physical or
mental illness or disability of Employee such that, in the good faith and
reasonable judgment of a reputable physician mutually selected by Employee and
the Board, he shall be unable to perform his duties of employment in any
material respect and such inability may reasonably be expected to be permanent
or to continue for a period of at least 120 consecutive business days and at
least a total of 180 business days during any period of twelve consecutive
months.

          As used herein, the term "Good Reason" shall mean any of the
following: (A) any action by the Company which results in a material diminution
in Employee's position with the Company as set forth in this Agreement
(including status, offices and titles), authority, duties or responsibilities as
contemplated by this Agreement, excluding for this purpose any isolated,
insubstantial and inadvertent action not taken in bad faith and which is
promptly remedied by the Company; (B) the relocation of the Company's principal
executive offices from the Commonwealth of Massachusetts, or, after the Employee
shall have relocated to Boston, any

                                       11

<PAGE>

event that causes Employee to have his principal place of work changed to any
location other than the Company's principal executive office; or (C) any failure
by the Company to comply with any of the provisions of this Agreement, other
than any isolated, insubstantial and inadvertent failure not occurring in bad
faith and which is promptly remedied by the Company.

     5. NON-COMPETITION.
        ---------------

          5.1 Non-Competition Period. Notwithstanding the fact that the
              ----------------------
Employment Period is "at will", the Employee shall not, directly or indirectly
(including, without limitation, either alone or as a partner, officer, director,
employee, joint venturer or stockholder of, or as a consultant or other
independent contractor to or agent or representative for, any company, business,
individual or other entity), engage in any business activity which is directly
or indirectly in competition with the Company's Business, as hereinafter
defined, at any time during the Employment Period and, provided the Company
shall be in compliance with the provisions of Article 3.6 hereof ,(i) for a
period of two (2) years after termination by the Company for Cause or by the
Employee for other than for Good Reason, of the Employment Period or (ii) for a
period of one (1) year after termination by the Company for other than Cause or
by the Employee for Good Reason, of the Employment Period (the "Post-Employment
Period") (collectively, the Employment Period and the Post-Employment Period are
herein referred to as the "Non-Competition Period"); provided however, that
nothing in this Agreement shall prevent or restrict Employee from owning,
directly or indirectly, not more than five percent of the securities of any
publicly traded company. For purposes of this Agreement, the Company's Business
shall be

                                       12

<PAGE>

defined to mean the development of a hematopoietic stimulant agent and/or
anti-tumor agents with an immunotherapy oriented mechanism of action.

          5.2 Restricted Business Activities. During the Non-Competition Period,
              ------------------------------
Employee will not, directly or indirectly:

                    (a) solicit or request any other employee of or consultant
     to the Company to leave the employ of or cease consulting for the Company;
     or

                    (b) solicit or request any other employee of or consultant
     to the Company to join the employ of, or begin consulting for, any
     individual or entity that researches, develops, markets or sells products
     that compete with those of the Company; or

                    (c) solicit or request any individual or entity that
     researches, develops, markets or sells products that compete with those of
     the Company, to employ or retain as a consultant any employee or consultant
     of the Company; or

                    (d) divert, directly or indirectly, to any competitor of the
     Company, any customer of the Company; or

                    (e) induce or attempt to induce any supplier or vendor of
     the Company to terminate or breach any written or oral agreement or
     understanding with the Company.

     6. PROPRIETARY RIGHTS.
        ------------------

          6.1 Definitions. For the purposes of this Section 6, the terms set
              -----------
forth below shall have the following meanings:

          6.1.1 Concepts and Ideas. Those concepts and ideas that become known
                ------------------
to Employee at any time during the Employee's employment by the Company which
relate to the

                                       13

<PAGE>

Company's present, past or prospective activities, services and products, all of
which shall remain the sole and exclusive property of the Company. The Employee
shall have no publication rights and all of the same shall belong to the
Company.

          6.1.2 Confidential Information. That secret or proprietary information
                ------------------------
of the Company of whatever kind or nature disclosed by the Company to Employee
or obtained by Employee (whether or not invented, discovered or developed by
Employee), at any time during Employee's employment by the Company as a
consequence of or through such employment. Such secret or proprietary
information shall include information relating to the design, manufacture,
application, know-how, research and development relating to the Company's
products, materials, operating and other cost data, price lists and data
relating to pricing of the Company's products. Such secret or proprietary
information shall specifically include, without limitation, all information
contained in the Company's manuals, memoranda, plans, drawings and designs,
specifications, supply sources, customer lists and records legended or otherwise
identified by the Company or the Board as Confidential Information. Such secret
or confidential information shall not include information which: (i) is or
becomes generally available to the public other than as a result of a breach of
this Agreement by the Employee, (ii) becomes available to the Employee from a
source other than the Company, its representatives or agents, (iii) was known to
the Employee prior to receiving the secret or confidential information and can
be so established by written documentary evidence or (iv) is required to be
disclosed by law or regulation.

                                       14

<PAGE>

          6.2 Non-Disclosure to Third Parties. Except as required by Employee's
              -------------------------------
duties in the course of his employment by the Company, Employee shall not, at
any time, directly or indirectly, use, publish, disseminate or otherwise
disclose any Confidential Information, Concepts or Ideas relating to the
present, past or prospective business of the Company to any third party without
the prior written consent of the Board which consent may be denied in each
instance and all of the same, together with publication rights, shall belong
exclusively to the Company.

          6.3 Documents, etc. All documents, procedural, manuals, guides,
              --------------
specifications, plans, drawings, designs and similar materials, lists of
present, past or prospective customers, customer proposals, invitations to
submit proposals, price lists and data relating to the pricing of the Company's
products and services, records, notebooks and similar repositories of or
containing Confidential Information (including all copies thereof) that come
into the Employee's possession or control by reason of Employee's establishment
of or employment by the Company, whether prepared by Employee or others: (a) are
the property of the Company, (b) will not be used by Employee in any way adverse
to the Company (c) will not be removed from the Company's premises (except as
Employee's duties require) and (d) at the termination (for whatever reason), of
Employee's employment by the Company, will be left with, or forthwith returned
by Employee to, the Company.

          6.4 Assignment of Inventions. The Employee hereby agrees that he will
              ------------------------
promptly make full written disclosure to the Company, and will hold in trust for
the sole right

                                       15

<PAGE>

and benefit of the Company, and agrees to assign to the Company or its designee
all of his right, title and interest in and to any and all of the inventions,
original works of authorships, developments, concepts, improvements or trade
secrets, whether or not patentable or registrable under patent, copyright or
similar laws, that the Employee may, solely or jointly, make, develop, conceive
or reduce to practice, or cause to be made, developed, conceived or reduced to
practice, during the Employment Period (collectively, referred to as the
"Inventions").

          Employee hereby agrees to assist the Company or its designee at the
Company's expense, in every way to secure the Company's rights in the
Inventions, and executing all applications, specifications, oaths, assignments
and all other instruments that the Company shall deem necessary in order to
apply for and obtain such rights and in order to secure and convey to the
Company and its successors and assigns, the sole and exclusive rights, title and
interests in and to such Inventions, and any copyrights, patents or other
intellectual property rights relating thereto. The Employee agrees that his
obligations to execute or cause to be executed, when it is in his power to do
so, any such instruments or papers will continue after the termination of this
Agreement.

     7. EQUITABLE RELIEF. Employee agrees that any breach of Sections 5 and 6
        ----------------
above by Employee may cause irreparable damage to the Company and that, in the
event of such breach, the Company shall have, in addition to any and all
remedies of law, the right to seek an injunction, specific performance or other
equitable relief to prevent the violation or threatened violation of Employee's
obligations hereunder.

                                       16

<PAGE>

     8. WAIVER. Any waiver by either party of a breach of any provision of this
        ------
Agreement by the other party shall not operate or be construed as a waiver of
any subsequent breach of the same or any other provision hereof by such other
party. All waivers shall be in writing.

     9. SEVERABILITY; REFORMATION. In case any one or more of the provisions or
        -------------------------
parts of a provision contained in this Agreement shall, for any reason, be held
to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision or part of a
provision of this Agreement; and this Agreement shall, to the fullest extent
lawful, be reformed and construed as if such invalid or illegal or unenforceable
provision, or part of a provision, had never been contained herein, and such
provision or part reformed so that it would be valid, legal and enforceable to
the maximum extent possible. Without limiting the foregoing, if any provision
(or part of provision) contained in this Agreement shall for any reason be held
to be excessively broad as to duration, activity or subject, it shall be
construed by limiting and reducing it, so as to be enforceable to the fullest
extent compatible with then existing and applicable law.

     10. ASSIGNMENT. Neither party shall have the right to assign his or its
         ----------
rights or obligations under this Agreement without the prior written consent of
the other party. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and permitted assigns.

     11. HEADINGS. Headings and sub-headings are for convenience only and shall
         --------
not

                                       17

<PAGE>

be deemed to be a part of this Agreement.

     12. AMENDMENTS. This Agreement may be amended or modified, in whole or in
         ----------
part, only by an instrument in writing signed by both parties hereto.

     13. NOTICES. Any notices or other communications required hereunder shall
         -------
be in writing and shall be deemed given when delivered in person or when mailed,
by certified or registered first-class mail, postage prepaid, return receipt
requested, or by faxed transmission where the date and time of the transmission
are clearly stated, addressed, if to the Company, at Point Therapeutics, Inc.,
75 Kneeland Street, 10th Floor, Boston, MA 02111 Attn: Donald R. Kiepert, Jr.,
President and CEO, with a copy to Peter B. Finn, Esquire, Rubin and Rudman, 50
Rowes Wharf, Boston, MA 02110 or, if to the Employee, at 385 Ridge Avenue,
Wrightstown, PA 18940 or to such other addresses of which a party shall have
notified the others in accordance with the provisions of this Section 13.

     14. COUNTERPARTS. This Agreement may be executed in two or more
         ------------
counterparts, each of which shall constitute an original and all of which shall
be deemed a single agreement.

     15. GOVERNING LAW. This Agreement shall be construed in accordance with and
         -------------
governed for all purposes by the laws of the Commonwealth of Massachusetts
applicable to contracts executed and wholly performed within such jurisdiction.
In enforcing such governing laws, any court of competent jurisdiction shall
afford all relief which a Massachusetts court would afford under the
circumstances.

                                       18

<PAGE>

     16. ARBITRATION. In the event of any dispute or disagreement arising out of
         -----------
or related to this Agreement, the dispute or disagreement shall be first
negotiated by the parties, in good faith, and the parties shall use their best
efforts to reach a resolution. In the event that the parties are, for whatever
reason, unable to reach a resolution, then, in that event, either party may
refer the matter to the American Arbitration Association for resolution in
accordance with the then applicable rules and regulations of the American
Arbitration Association. The arbitration shall be held in Boston, Massachusetts
before a single arbitrator and the decision of the arbitrator shall be final and
binding upon the parties and the award may be entered in any court of competent
jurisdiction. The cost of the arbitration filing fee and the arbitrator's fee
shall be divided equally between the parties and otherwise, each party shall be
responsible for its own costs and expenses, including attorneys' fees and
disbursements.

     17. SURVIVAL. The provisions of this Agreement shall survive the
         --------
termination of the Employee's employment hereunder in accordance with their
terms.

     EXECUTED as an instrument under seal as of the date first above written.

POINT THERAPEUTICS, INC.                 EMPLOYEE:

By: /s/ Donald R. Kiepert, Jr.           /s/ Lawrence Nussbaum, M.D
------------------------------------     ---------------------------------------
Donald R. Kiepert, Jr.                   Lawrence Nussbaum, M.D.
President & CEO                          385 Ridge Avenue
Hereunto Duly Authorized                 Wrightstown, PA  18940

                                       19

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