##### 



CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION
ASTERISKS DENOTE OMISSIONS
 EXHIBIT 10.5
 CONSULTING AGREEMENT
 Agreement Effective Date OSI Consultant ,
 1. CONSULTING SERVICES.
  (a)
    
    During the Transition Phase, Consultant shall provide advice and
consultation to, as needed and reasonably requested by, OSI and its subsidiary, (OSI)
Eyetech, Inc. ((OSI) Eyetech) regarding the business and operations of (OSI) Eyetech
so as to facilitate an orderly transition of the duties and responsibilities undertaken
by Consultant prior to the Effective Date in his role as head of the (OSI) Eyetech
business to his successor in such role. Consultant will be available to provide such
Services not less than ** days per month for this purpose during the
Transition Phase.
 
 **
    
    This portion has been redacted pursuant to a confidential treatment request.




---



##### 



(b)
    
    During the Transition Phase and during the Consulting Period, Consultant
will provide advice and consultation to, as needed and reasonably requested by, the
Board of Directors of OSI and the CEO and other members of senior management of OSI
relating to the field of ophthalmology. In addition, during the Term, Consultant will
serve as a technical advisor to the eye disease subcommittee of the OSI Board of
Directors. Consultant will be available to provide such Services not less ** days per month during the Term.(c)
    
    The services described in subsection (a) and subsection (b) above shall be collectively referred to herein as the Services.
 2. DELIVERY OF CONSULTING SERVICES.
  3. COMPENSATION AND REIMBURSEMENT.
 (a)
    
    During the Transition Phase, OSI shall pay Consultant an annual retainer of
$775,000 which shall be due and payable in two equal installments on November 2, 2006
and May 2, 2007. During the Consulting Period, OSI shall pay Consultant an annual
retainer of $250,000 which shall be due and payable in two
 
 **
    
    This portion has been redacted pursuant to a confidential treatment request. 2




---



##### 



equal installments on the anniversaries of the payment dates during the Transition Phase.(b)
    
    OSI will reimburse Consultant for reasonable out-of-pocket expenses incurred
in connection with the Consultants performance of the Services upon the presentation
of receipts for such expenses. To the extent feasible, Consultant will use
OSI-designated travel services to make all OSI requested travel arrangements.
 4. USE OF OFFICE AND SUPPORT STAFF.
  5. CONFIDENTIALITY.
 (a)
    
    Confidential Information means confidential or proprietary information of
OSI either disclosed orally, graphically, in writing, or in electronic or other form to
or otherwise learned by Consultant during the course of his employment by OSI and (OSI)
Eyetech and under this Agreement or that should reasonably be known by Consultant to be
confidential or proprietary to OSI, including but not limited to information relating
to OSIs research, development, preclinical and clinical programs, data and results;
product candidates and products; inventions, works of authorship, trade secrets,
processes, conceptions, formulas, patents, patent applications and licenses; IP Rights
(as defined in Section 8); business, product, marketing, sales, scientific and
technical strategies, programs and results,
 3




---



##### 



including costs and prices; suppliers,
manufacturers, customers, market data, personnel, and consultants; and other
confidential matters related to OSI, but not including Consultants general knowledge
and know how.
 (b)
    
    Subject to Section 5(c), until ** years after the
expiration or termination of this Agreement, Consultant:
 (i)
    
    shall not use Confidential Information for his own benefit or the
benefit of any third party except solely for the purpose of performing
Services;(ii)
    
    shall hold Confidential Information in strictest confidence and
shall not disclose Confidential Information to others;(iii)
    
    shall use reasonable efforts to protect the confidentiality of
Confidential Information; and(iv)
    
    shall notify OSI as promptly as practicable of discovery of any
unauthorized use or disclosure of Confidential Information.
 (c)
    
    Consultants obligations under Section 5(b) shall not apply to any
Confidential Information that:
 (i)
    
    is now, or becomes in the future, publicly available other than by
an act or omission of Consultant in violation of this Section 5;(ii)
    
    a third party discloses to Consultant, without any legal
restriction on disclosure known to Consultant, and without any breach of any direct or indirect obligation of confidentiality to OSI
known to Consultant; or
 
 **
    
    This portion has been redacted pursuant to a confidential treatment request. 4




---



##### 



(iii)
    
    was or is independently developed by Consultant or others on
Consultants behalf without using any Confidential Information or violating any
of Consultants obligations under this Agreement.
 (d)
    
    Notwithstanding other provisions of this Agreement, Consultant may disclose
Confidential Information to the extent and to the persons or entities required under
applicable governmental law, rule, regulation or order, provided that Consultant (i)
first gives prompt notice of such disclosure requirement to OSI so as to enable OSI to
seek any limitations on or exemptions from such disclosure requirement and (ii)
reasonably cooperates at OSIs request in any such efforts by OSI, at OSIs
expense.(e)
    
    Upon the earlier of the completion of the Services or OSIs request for any
reason at any time, Consultant will (i) immediately cease all commercial use of
Confidential Information and notify OSI and (ii) promptly, at OSIs instruction, either
return to OSI or destroy all Confidential Information that exists in tangible form,
including destroying (but not returning to OSI) any copies, extracts, summaries, or
derivative works thereof, and certify in writing to OSI the completion of such return
and/or destruction.(f)
    
    OSI retains all right, title and interest in and to Confidential
Information. This Agreement gives Consultant no right or license to any Confidential
Information or any intellectual property or other rights owned by or licensed to OSI,
by implication or otherwise, except the right to use Confidential Information solely
for performance of Services. OSI may freely transfer, disclose and/or use Confidential
Information for its or others purposes.
 5




---



##### 



6. CERTAIN AGREEMENTS.
 (a)
    
    During the Term, Consultant shall not serve as an employee of, or consultant
to, or owner of more than ** of the equity of, any company that is a
Competing Business at the time Consultant serves in such capacity. For purposes of
this Agreement, Competing Business means (i) during the period beginning on the
Effective Date and ending on the first anniversary of the Effective Date, any company
that ** of **, (ii) during the period beginning on the first anniversary of the
Effective Date and ending on the second anniversary of the Effective Date, any
company that ** and (iii) at any time during the Term, any company that **. For the
avoidance of doubt, **.(b)
    
    During the Term, Consultant shall not, individually or on behalf of or
through any third party, directly or indirectly, (i) solicit, entice or persuade or
attempt to solicit, entice or persuade any employees of or consultants to OSI to leave
the service of OSI for any reason, or employ, cause to be employed, or solicit the
employment of, any employees of or consultants to OSI while any such person is
providing services to OSI, or (ii) solicit, divert or appropriate or attempt to
solicit, divert or appropriate, any customers of OSIs Eye Business for the purpose of
directly competing with OSIs Eye Business. For purposes of this Section 6, Eye
Business shall specifically refer to **.
 7. INJUNCTIVE RELIEF.
  
 **
    
    This portion has been redacted pursuant to a confidential treatment request. 6




---



##### 



8. INTELLECTUAL PROPERTY.
 IP Rights
 9. PUBLICATION.
 ** ** **
 
 **
    
    This portion has been redacted pursuant to a confidential treatment request. 7




---



##### 



10. REPRESENTATION AND WARRANTIES.
  (a)
    
    Consultant has the full right, power and authority to enter into this
Agreement and perform its obligations hereunder without the consent of any third party
and without breach of any agreements with or obligations to any third party;(b)
    
    Consultant will not grant, transfer, assign or convey, directly or
indirectly, any right, title or interest in or to any IP Rights to any third party;(c)
    
    Consultant has not entered and will not enter into any agreement with or
obligation to a third party inconsistent, incompatible, or conflicting with its
obligations under this Agreement; and(d)
    
    Consultant will inform OSI immediately of any contracts or subject matter
with which Consultant or members of Consultants family are engaged in that may in any
way raise a conflict of interest between Consultant and OSI.
 11. INDEMNIFICATION.
 Losses
 8




---



##### 



12. WAIVER AND RELEASE.
  13. TERM AND TERMINATION.
 (a)
    
    The term of this Agreement shall commence on the Effective Date and expire
on the fourth anniversary of the Effective Date (the Term) unless earlier terminated
under this Section 13.(b)
    
    Either party may terminate this Agreement for a material breach by the other
party upon ** days written notice specifying the breach unless such
breach is cured within such ** day period.(c)
    
    The Consultant may terminate this Agreement at any time and for any reason
upon ** days written notice to OSI.(d)
    
    Expiration or termination of this Agreement shall not affect accrued rights
or obligations of the parties. Sections 5, 7, 8, 9, 10(c), 10(d), 10(e), 11, 12, 13(d),
15, 16, 17 and 18 shall survive termination or expiration of this Agreement.
 
 **
    
    This portion has been redacted pursuant to a confidential treatment request. 9




---



##### 



14. CHANGE OF CONTROL.
 **
 15. STOCK OPTIONS.
  16. ACKNOWLEDGEMENT.
  
 **
    
    This portion has been redacted pursuant to a confidential treatment request. 10




---



##### 



17. INDEMNITY.
  18. GENERAL.
 (a)
    
    This Agreement shall be interpreted and enforced in accordance with the laws
of the State of New York, regardless of any choice of law principles that would cause
the application of the law of any other jurisdiction. The parties will submit any
dispute or claim arising under this Agreement to the exclusive jurisdiction of the U.S.
federal or New York state courts within the counties of New York or Suffolk, and the
parties hereby submit to, and waive any objection to, personal jurisdiction and venue
in such courts for such purpose.(b)
    
    Any purported assignment or delegation by Consultant of this Agreement in
whole or in part without the prior written consent of OSI
shall be void. OSI has
 11




---



##### 



the unconditional right to assign this Agreement if
there is no resulting material change in the scope of the Services. This Agreement
shall be binding upon the parties, their successors and their permitted assigns.
 (c)
    
    All notices under this Agreement shall be in writing and shall be deemed
given upon personal delivery, delivery by internationally- or nationally-recognized
bonded courier service, or seven days after sending by certified or registered mail,
postage prepaid and return receipt requested, to the following addresses of the
respective parties or such other address as given by notice under this Section
18(c):
 OSI:
    
    OSI Pharmaceuticals, Inc.At the address set forth at the beginning of this AgreementAttention: General CounselConsultant:
    
    David GuyerAt the address set forth at the beginning of this Agreement
 (d)
    
    During the Term, Consultant agrees to abide by the terms of OSIs
insider trading policy attached hereto as Exhibit A; provided, however, that Consultant
may enter into a trading plan compliant with Rule 10b5-1 under the Securities Exchange
Act of 1934 providing for a sale by Consultant of securities of OSI at times that would
otherwise be prohibited by OSIs insider trading policy.(e)
    
    During the term of this Agreement, Consultant will not improperly use or
disclose to OSI any proprietary information or trade secrets of any former or
concurrent employer or other person or entity.(f)
    
    Consultant recognizes that OSI has received and in the future will receive
from third parties their confidential or proprietary information subject to a duty on
OSIs part to maintain the confidentiality of such information and to use it only
 12




---



##### 



for certain limited purposes. Consultant agrees to hold all such confidential or
proprietary information in the strictest confidence and not to disclose it to any
person, firm or corporation or to use it except as necessary in carrying out
Consultants work for OSI consistent with the OSIs agreement with such third
party.
 (g)
    
    This Agreement sets forth the complete, final and exclusive agreement
between the parties and supersedes and terminates all prior written and oral agreements
and understandings between Consultant, on the one hand, and OSI and its subsidiaries,
including (OSI) Eyetech, on the other hand, other than the stock option agreements
between OSI and Consultant. No amendment to, or waiver of right under, this Agreement is
effective unless in writing signed by authorized representatives of the parties. No
waiver by a party of any breach of this Agreement shall be a waiver of any preceding
or succeeding breach. No waiver by a party of any right under this Agreement shall
be construed as a waiver of any other right. If any provision of this Agreement is
judicially or administratively determined to be unenforceable, the provision will be
reformed to most nearly approximate the parties original intent, but otherwise this
Agreement will continue in full force and effect.(h)
    
    Consultants relationship with OSI will be that of an independent
contractor, and nothing in this Agreement shall be construed to create a partnership,
joint venture, or employer-employee relationship. Consultant is not the agent of OSI
and is not authorized to make any representation, contract, or commitment on behalf of
OSI. Consultant will be solely responsible for all tax returns and payments required
to
 13




---



##### 



be filed with or made to any federal, state or local tax authority with respect to
Consultants performance of services and receipt of fees under this Agreement.
Consultant will not be entitled to any of the benefits that OSI may make available to
OSI employees, such as group insurance, profit-sharing or retirement benefits. OSI
will regularly report amounts paid to Consultant by filing Form 1099-MISC with the
Internal Revenue Service as required by law, and OSI will not withhold or make payments
for social security, make unemployment insurance or disability insurance contributions,
or obtain workers compensation insurance on Consultants behalf. Consultant accepts
exclusive liability for complying with all applicable state and federal laws governing
self-employed individuals, including obligations such as payment of taxes, social
security, disability and other contributions based on fees paid to Consultant, its
agents or employees under this Agreement, and will defend, indemnify and hold harmless
OSI from and against any and all such taxes or contributions, including penalties and
interest.
 (i)
    
    This Agreement may be executed simultaneously in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.
 14




---



##### 



/s/
    
    
    
    OSI PHARMACEUTICALS, INC.David Guyer(Consultant)Social Security Number
    
    
    
    By:
    
    /s/**
 
 **
    
    This portion has been redacted pursuant to a confidential treatment request.




---



##### 



Exhibit A **
 
 **
    
    This portion has been redacted pursuant to a confidential treatment request.