Document:

EXHIBIT 10.11

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement"), dated as
of January 1, 2000,  between Celgene  Corporation,  a Delaware  corporation with
offices at 7 Powder Horn Drive,  Warren,  New Jersey 07059 (the "Company"),  and
Sol J. Barer,  residing at 625  Westfield  Avenue,  Westfield,  New Jersey 07090
("Employee").

                               W I T N E S S E T H
                               - - - - - - - - - -

     WHEREAS,   the  Company  and  Employee  have  previously  entered  into  an
employment  agreement,  originally effective September 30, 1997 (the "Employment
Agreement");

     WHEREAS,  Employee is currently  employed as the  President of the Company,
and serves as a member of the Board of Directors of the Company (the "Board");

     WHEREAS,  the  Company  and  Employee  desire  to  amend  and  restate  the
Employment  Agreement  to  modify  certain  terms of the  Employment  Agreement,
effective as of the date set forth above or such other date as specified herein.

     NOW  THEREFORE,  in  consideration  of the  premises  and mutual  covenants
contained  herein and for other good and  valuable  consideration,  the  parties
agree as follows:

     1. Term.  The Company agrees to continue to employ  Employee,  and Employee
agrees to continue to serve, on the terms and conditions of this Agreement for a
period  commencing  on the date  hereof  and  ending  three  years from the date
hereof,  or such other  period as may be  provided  for in Section 10 or 11. The
period during which Employee is employed hereunder is hereinafter referred to as
the "Employment  Period." The Employment  Period shall be automatically  renewed
for  successive  one-year  terms unless either party gives written notice to the
other at least six (6) months  prior to the  expiration  of the then  Employment
Period, of such party's intention to terminate  Employee's  employment hereunder
at the end of the then current Employment Period.

     2. Duties and Services.  During the  Employment  Period,  Employee shall be
employed in the business of the Company as President and Chief Operating Officer
of the Company. In addition, Employee shall continue to serve as a member of the
Board. Employee shall perform such duties and services, within his expertise and
experience,  as may be assigned to him by, and subject to the  direction of, the
Chief  Executive  Officer  and  the  Board.  Employee  agrees  to  continue  his
employment  as  described  in this  Section 2 and  agrees  to devote  all of his
working time and efforts to the  performance of his duties under this Agreement,
excepting  disabilities,  illness and vacation time as provided by Section 3(e).
In performing his duties  hereunder,  Employee shall be available for reasonable
travel as the needs

<PAGE>

of the business require.  Except as provided in Section 6 hereof,  the foregoing
shall not be construed as preventing  Employee from:  (i) making  investments in
other  businesses and managing his and his family's  personal  investments;  and
(ii) participating in charitable, civic, educational, professional, community or
industry  affairs  or  serving  on the  board of  directors  of other  companies
("Professional  Activities"),  provided that these  Professional  Activities are
approved by the Company's Board.

     3.   Compensation and Other Benefits.

     (a) As  compensation  for his  services  hereunder,  the Company  shall pay
Employee,  during  the  Employment  Period,  a  base  salary  payable  in  equal
semi-monthly  installments  at an annual rate of  $258,000,  provided  that such
salary  shall be  reviewed  annually  by the  Company's  Board,  or a  committee
thereof,  which may, in its sole  discretion,  increase (but not decrease)  such
salary.

     (b) The Company shall also pay Employee,  during the Employment  Period, an
annual target bonus,  payable in January of each year for the preceding year, in
an amount equal to forty-five  percent (45%) of Employee's  base salary (payable
under Section 3(a) of this Agreement)  measured against objective criteria to be
determined  by the Company's  Board,  or a committee  thereof,  after good faith
consultation with Employee.

     (c)  Employee  shall be entitled to  continue to  participate  in all group
health and insurance  programs and all other fringe benefit or retirement  plans
which  the  Company  may,  in its sole and  absolute  discretion,  elect to make
available to its employees generally, provided Employee meets the qualifications
therefor.

     (d) Employee  shall be eligible to  participate in the Company's 1998 Long-
Term Incentive Plan (the "Plan") and any other  incentive  plans of the Company.
Upon  the  Employee's  Disability  (as  defined  in the  Plan),  termination  of
employment with the Company due to Retirement (as defined in the Plan) or death,
Employee (or the legal  representative  of his estate, in the case of Employee's
death) shall be entitled to: (i) full vesting and  immediate  exercisability  of
any  outstanding  stock  options  and  other  equity  awards  (and  lapse of any
forfeiture provisions) granted to Employee at any time; and (ii) with respect to
stock options granted to Employee on or after January 1, 2000,  Employee (or the
legal  representative  of his estate,  in the case of Employee's death) shall be
entitled  to exercise  such stock  options at any time during the three (3) year
period from the date of Employee's Disability, Retirement or death.

     (e)  Employee  shall be  entitled to four weeks of paid  vacation  per year
during the Employment Period.

     4. Expenses. Employee shall be entitled to reimbursement for all reasonable
travel and other out-of-pocket  expenses necessarily incurred in the performance
of his duties hereunder,  upon submission and approval of written statements and
bills in accordance with the then regular procedures of the Company.

                                       2

<PAGE>

     5.  Representations  and  Warranties of Employee.  Employee  represents and
warrants  to the  Company  that  Employee  is  under  no  contractual  or  other
restriction  or  obligation  which is  inconsistent  with the  execution of this
Agreement,  the  performance of his duties  hereunder or the other rights of the
Company hereunder.

     6.   Non-Competition.

     (a) In view of the unique and valuable  services that Employee has rendered
or is expected to render to the Company,  Employee's knowledge of the customers,
trade secrets and other proprietary  information relating to the business of the
Company and its  customers and  suppliers  and similar  knowledge  regarding the
Company  which  Employee  has  obtained  or  is  expected  to  obtain,   and  in
consideration  of the  compensation  to be received  hereunder,  Employee agrees
that:

          (i)  during  the  period he is  employed  by the  Company  under  this
     Agreement or otherwise,  he will not Participate In (as hereinafter defined
     in this Section 6) any other business or organization,  whether or not such
     business or  organization  now is or shall then be  competing  with or of a
     nature similar to the business of the Company,  without obtaining the prior
     written consent of the Chief Executive Officer of the Company;

          (ii) until the first  anniversary  of the date of the  termination  of
     Employee's  employment  under  this  Agreement  or  otherwise,  he will not
     Participate  In any business which is engaged,  directly or indirectly,  in
     the same  business as the Company with  respect to any specific  product or
     specific  service  sold or activity in which the Company  engages up to the
     time of termination of employment in any geographical  area in which at the
     time of termination  such product or service is sold or activity is engaged
     in by the Company;

          (iii) if a Change in Control occurs and Employee's employment with the
     Company is terminated  under this Agreement  without Cause (as  hereinafter
     defined) or by Employee  for Good  Reason (as  hereinafter  defined) at any
     time  during the period  beginning  on the date of a Change in Control  and
     ending  one (1) year  after the date of such  Change in  Control  or within
     ninety (90) days prior to a Change in Control,  then beginning on the later
     of the date  Employee's  employment  terminates  (as  described  under this
     Section  6(a)(iii))  and the date of a Change in Control  and ending on the
     second anniversary of such date, he will not Participate In any activity or
     business  in the  United  States  involved  in the  research,  development,
     commercialization  of a small molecule which is: (A) the generic equivalent
     of THALOMID (i.e.,  the same chemical  structure);  (B) an  anti-angiogenic
     agent for oncology use; (C) a  substantially  specific  TNFalpha  inhibitor
     (via inhibition of synthesis of TNFalpha, including via inhibition of PDE4)
     for the treatment of Crohn's disease, rheumatoid arthritis,  dermatological
     and  auto-immune  conditions  having excess levels of TNFalpha as the prime
     causative  factor,  cachexia (AIDS or cancer),  or any other indication for
     which the Company has been

                                       3

<PAGE>

granted orphan drug status; or (D) a formulation of d- or dl-methylphenidate for
the treatment of ADD/ADHD.

     (b) For  purposes of this Section 6 the term  "Participate  In" shall mean:
"directly or  indirectly,  for his own benefit or for, with or through any other
person, firm or corporation,  own, manage,  operate,  control,  loan money to or
participate  in the  ownership,  management,  operation  or  control  of,  or be
connected  as  a  director,  officer,  employee,  partner,  consultant,   agent,
independent  contractor  or otherwise  with, or acquiesce in the use of his name
in."

     (c) Employee  further agrees that,  during the period he is employed by the
Company under this Agreement or otherwise and until the first anniversary of the
date of the  termination  of  Employee's  employment  under  this  Agreement  or
otherwise,  he will not directly or  indirectly  reveal the name of,  solicit or
interfere  with,  or  endeavor  to  entice  away  from the  Company,  any of its
suppliers, customers or employees.

     7. Patents, etc. Any interest in patents, patent applications,  inventions,
technological  innovations,   copyrights,   copyrightable  works,  developments,
discoveries,  designs and processes  ("Inventions")  which  Employee  during the
period he is employed by the Company under this Agreement or otherwise,  and for
six months  thereafter,  may  conceive of or develop and either  relating to the
specific  fields in which the  Company  may then be engaged or  conceived  of or
developed utilizing the time, material, facilities or information of the Company
shall  belong to the Company;  as soon as Employee  conceives of or develops any
Invention,  he agrees  immediately  to  communicate  such fact in writing to the
Secretary of the Company, and without further compensation, but at the Company's
expense  (except  as noted in clause  (a) of this  Section  7),  forthwith  upon
request of the Company,  Employee shall execute all such  assignments  and other
documents  (including  applications  for  patents,  copyrights,  trademarks  and
assignments  thereof)  and  take  all  such  other  action  as the  Company  may
reasonably  request in order (a) to vest in the  Company all  Employee's  right,
title and interest in and to the Inventions, free and clear of liens, mortgages,
security interests,  pledges,  charges and encumbrances arising from the acts of
Employee  ("Liens")  (Employee  to  take  such  action,  at his  expense,  as is
necessary to remove all such Liens) and (b) if patentable or  copyrightable,  to
obtain patents or copyrights (including extensions and renewals) therefor in any
and all countries in such name as the Company shall determine.

     8. Confidential  Information.  All confidential  information which Employee
may now possess, may obtain during or after the Employment Period, or may create
prior  to the  end of the  period  he is  employed  by the  Company  under  this
Agreement  or  otherwise  relating  to the  business  of the  Company  or of any
customer or supplier of the Company  shall not be  published,  disclosed or made
accessible  by him to any other  person,  firm or  corporation  either during or
after  the  termination  of his  employment  or used by him  except  during  the
Employment  Period in the business  and for the benefit of the Company,  in each
case without the prior written permission of the Company.  Employee shall return
all tangible evidence of such  confidential  information to the Company prior to
or  at  the  termination  of  his  employment.   As  used  in  this  Section  8,
"confidential  information"  shall mean any information  except that

                                       4

<PAGE>

information  which  is or comes  into  the  public  domain  through  no fault of
Employee or which  Employee  obtains after the  termination of his employment by
the Company  under this  Agreement or  otherwise  from a third party who has the
right to disclose such information.

     9. Life  Insurance.  If requested by the Company,  Employee shall submit to
such  physical  examinations  and  otherwise  take such  actions and execute and
deliver such documents as may be reasonably  necessary to enable the Company, at
its expense and for its own  benefit,  to obtain life  insurance  on the life of
Employee.  Subject to its  ability to do so under the terms of such  policy,  if
any,  insuring  the  life  of  Employee,  upon  the  termination  of  Employee's
employment hereunder,  the Company will assign to Employee its rights under such
insurance policy,  provided that,  concurrently  with such assignment,  Employee
shall  reimburse  the Company for any  premium  payments  made by the Company in
respect of time periods  subsequent to such date of termination.  Nothing herein
contained shall obligate the Company to obtain such insurance.

     10.  Termination.

     (a) Employee's  employment and the Employment Period shall terminate on the
first of the following to occur:

          (i) the Company  provides  written notice to Employee of a termination
     for Cause;  such written notice shall be provided to Employee not less than
     ten (10) days prior to the date of  termination.  "Cause"  shall mean:  (A)
     Employee's conviction of a crime involving moral turpitude or a felony, (B)
     Employee's acts or omissions taken in bad faith and to the detriment of the
     Company  after a written  demand for cessation of such conduct is delivered
     to Employee by the Company, which demand specifically identifies the manner
     in which the Company believes that Employee has engaged in such conduct and
     the injury to the Company, and after Employee's failure to correct such act
     or omission  within ten (10) days  following  such written  demand,  or (C)
     Employee's  breach of any material  term of this  Agreement  after  written
     demand for substantial performance is delivered to Employee by the Company,
     which  demand  specifically  identifies  the  manner in which  the  Company
     believes Employee has breached this Agreement, and after Employee's failure
     to correct such breach within ten (10) days following such written demand.

          (ii)  Employee's  death, in which case, this Agreement shall terminate
     on the date of Employee's death,  whereupon  Employee or his estate, as the
     case may be,  shall be  entitled to receive a lump sum payment in an amount
     equal to Employee's  annual base salary (at the rate in effect, or required
     to be in effect, immediately prior to the date of Employee's death) and the
     portion of  Employee's  annual  target bonus (as provided in Section  3(b))
     pro-rated  up to  Employee's  date of death  (assuming  the target has been
     met).

          (iii) Nothing contained in this Section 10(a) shall be deemed to limit
     any other  right the Company may have to  terminate  Employee's  employment
     hereunder upon any ground permitted by law.

                                       5

<PAGE>

          (iv) If Employee's employment is terminated by the Company as a result
     of the  disability  or  incapacitation  of Employee or for any reason other
     than pursuant to the  provisions of paragraphs  (i) or (ii) of this Section
     10(a) or the provisions of Section 10(b),  upon  termination by the Company
     of  Employee's   employment,   whether  during  the  Employment  Period  or
     thereafter,  Employee shall be entitled to receive a lump sum payment in an
     amount equal to  Employee's  annual base salary (at the rate in effect,  or
     required  to be in  effect,  immediately  prior to the  date of  Employee's
     termination) and the portion of Employee's annual target bonus (as provided
     in  Section  3(b))   pro-rated  up  to  Employee's   date  of   disability,
     incapacitation or termination (assuming the target has been met).

          (v) In the event of the  Employee's  termination  for any reason under
     this Agreement or otherwise,  the Company shall pay and provide to Employee
     (in  addition  to  any  other  payments  or  benefits  payable  under  this
     Agreement):  (A) any  incurred  but  reimbursed  business  expenses for the
     period prior to the  termination  payable in accordance  with the Company's
     policies;  (B) any base  salary,  bonus,  vacation  pay or  other  deferred
     compensation  accrued  or  earned  under  law  or in  accordance  with  the
     Company's  policies  applicable  to Employee but not yet paid;  and (C) any
     other  amounts  or  benefits  due under  the  terms of the then  applicable
     employee  benefit,  equity or incentive plans of the Company  applicable to
     Employee (the "Accrued Benefits").

          (vi)  Payments of any amounts or benefits  hereunder  shall be made no
     later  than ten (10) days after  Employee's  termination  date,  other than
     benefits under a plan with the terms which do not require or permit payment
     within such ten (10) day period.

     (b) During the ninety (90) day period  prior to Change in Control or during
the one (1) year period  following a Change in Control,  Employee may  terminate
his employment by written notice to the Company within thirty (30) calendar days
after he has obtained actual knowledge of the occurrence of a Good Reason event.
For purposes of this Agreement,  Good Reason shall mean the occurrence of any of
the following events without Employee's express written consent:

          (i) failure to elect or appoint, or reelect or reappoint, Employee to,
     or removal of Employee from, his position with the Company as President and
     Chief Operating  Officer or as a member of the Board,  except in connection
     with the termination of Employee's employment pursuant to Section 10(a);

          (ii) a significant  change in the nature or scope of the  authorities,
     powers,   functions,   duties  or  responsibilities  normally  attached  to
     Employee's position as President and Chief Operating Officer or as a member
     of the Board,  except in each case in connection  with the  termination  of
     Employee's  employment  for Cause or as a result of  Employee's  death,  or
     temporarily as a result of Employee's illness or other absence;

          (iii) a determination by Employee made in good faith that, as a result
     of a  Change  in  Control,  he is  unable  effectively  to  carry  out  the
     authorities,  powers,

                                       6

<PAGE>

     functions, duties or responsibilities attached to his position as President
     and Chief  Operating  Officer or as a member of the Board and the situation
     is not  remedied  within 30 calendar  days after  receipt by the Company of
     written notice from Employee of such determination;

          (iv) a  breach  by the  Company  of any  material  provision  of  this
     Agreement  (not covered by clause (i), (ii) or (iii) of this Section 10(b))
     or of any other  agreement,  which is not remedied  within 30 calendar days
     after  receipt by the  Company  of written  notice  from  Employee  of such
     breach;

          (v) a reduction in Employee's annual base salary;

          (vi) a  fifty  (50)  mile  or  greater  relocation  of  the  Company's
     principal office;

          (vii)  failure  of the  Company  to  continue  in effect any health or
     welfare plan,  employee benefit plan,  pension plan, fringe benefit plan or
     compensation   plan  in  which  Employee  (and  eligible   dependents)  are
     participating  immediately  prior to a Change in Control,  unless  Employee
     (and  eligible  dependents)  are  permitted to  participate  in other plans
     providing Employee (and eligible dependents) with substantially  comparable
     benefits  at  no  greater   after-tax   cost  to  Employee   (and  eligible
     dependents),  or the  taking  of any  action  by the  Company  which  would
     adversely affect the Employee's (and eligible dependents)  participation in
     or reduce  Employee's  (and eligible  dependents)  benefits  under any such
     plan; or

          (viii) failure of a successor to assume this Agreement.

     An election by Employee to terminate his employment under the provisions of
this Section 10(b) shall not  constitute a breach by Employee of this  Agreement
and shall not be deemed a voluntary  termination  of  employment by Employee for
the purpose of  interpreting  the  provisions of any of the  Company's  employee
benefit plans, programs or policies.

     (c) Upon the  occurrence  of a Change in  Control  and  thereafter:  (A) if
Employee's  employment  with the Company is  terminated  by the Company  without
Cause or as a result of the  disability  or  incapacitation  of Employee,  or by
Employee with Good Reason at any time during the period beginning on the date of
the Change in Control  and ending one (1) year after the date of such  Change in
Control,  or (B) if Employee's  employment with the Company is terminated by the
Company  without  Cause or by Employee for Good Reason  within  ninety (90) days
prior to the occurrence of a Change in Control,  then Employee shall be entitled
to receive from the Company:

          (i) a lump sum  amount,  payable  within  ten  (10)  days  after  such
     termination (or, if such termination occurred prior to a Change in Control,
     within ten (10) days after the  Change in  Control)  equal to (A) three (3)
     times  Employee's  base  salary in  effect,  or  required  to be in effect,
     immediately  prior to the  Change in  Control,

                                       7

<PAGE>

     and (B) three (3)  times  the  highest  annual  bonus  paid or  payable  to
     Employee within three (3) years prior to the Change in Control;

          (ii)  within  ten  (10)  days  after  such  termination  (or,  if such
     termination  occurred  prior to a Change in  Control,  within ten (10) days
     after the Change in Control) equal to the Accrued Benefits;

          (iii)  payment by the Company of the premiums for Employee  (except in
     the case of Employee's  death) and  Employee's and  dependents'  health and
     welfare coverage  (including,  without  limitation,  medical,  dental, life
     insurance  and  disability  coverage) for three (3) years from the later of
     the  occurrence  of a  Change  in  Control  or the date of  termination  of
     Employee's  employment,  under the Company's health and welfare plans which
     cover the senior  executives of the Company or materially  similar benefits
     ("Continuation  Coverage"),  subject to  Employee's  payment  of  customary
     premiums (if any) in effect prior to the Change in Control;

          (iv) upon the  occurrence  of a Change in Control,  full and immediate
     vesting of all stock options and equity awards held by Employee.

     Payments under (iii) above may, at the  discretion of the Company,  be made
by continuing Employee's  participation in the plan as a terminee or by covering
Employee and Employee's dependents under substitute arrangements, provided that,
notwithstanding  anything herein to the contrary,  to the extent Employee incurs
tax that Employee  would not have incurred as an active  employee as a result of
the aforementioned coverage or the benefits provided thereunder,  Employee shall
receive  from the  Company  an  additional  grossed  up  payment  in the  amount
necessary so that Employee will have no additional cost for receiving such items
or any  additional  payment.  Notwithstanding  anything  herein to the contrary,
Employee  (and his  eligible  dependents)  shall  retain  all  rights  under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA") and
such  COBRA  continuation  coverage  shall be  available  to  Employee  (and his
eligible  dependents) at the expiration of the Continuation  Coverage  described
herein.

     (d) For  purposes  of this  Agreement,  a Change in Control  shall mean the
occurrence of the following:

          (i) any person  (as  defined  in  Section  3(a)(9)  of the  Securities
     Exchange  Act of 1934,  as  amended  (the  "Exchange  Act")  and as used in
     Sections 13(d) and 14(d) thereof), excluding the Company, any subsidiary of
     the Company and any employee  benefit plan  sponsored or  maintained by the
     Company or any subsidiary of the Company (including any trustee of any such
     plan acting in his capacity as trustee),  becoming the  "beneficial  owner"
     (as  defined in Rule 13d-3 under the  Exchange  Act) of  securities  of the
     Company  representing  thirty  percent (30%) of the total  combined  voting
     power of the Company's then outstanding securities;

                                       8

<PAGE>

          (ii) the merger,  consolidation  or other business  combination of the
     Company (a "Transaction"),  other than (A) a Transaction involving only the
     Company  and  one  or  more  of  its  subsidiaries,  or  (B) a  Transaction
     immediately  following which the  stockholders  of the Company  immediately
     prior to the Transaction continue to have a majority of the voting power in
     the  resulting  entity  and no person  (other  than  those  covered  by the
     exceptions in (a) above) becomes the beneficial  owner of securities of the
     resulting entity  representing  more than twenty-five  percent (25%) of the
     voting power in the resulting entity;

          (iii) during any period of two (2)  consecutive  years beginning on or
     after  the  date  hereof,  the  persons  who  were  members  of  the  Board
     immediately before the beginning of such period (the "Incumbent Directors")
     ceasing (for any reason other than death) to constitute at least a majority
     of the Board or the board of  directors  of any  successor  to the Company,
     provided  that,  any  director who was not a director as of the date hereof
     shall be deemed to be an Incumbent Director if such director was elected to
     the board of directors by, or on the recommendation of or with the approval
     of, at least  two-thirds of the  directors who then  qualified as Incumbent
     Directors  either  actually or by prior  operation of the foregoing  unless
     such election,  recommendation  or approval occurs as a result of an actual
     or threatened  election  contest (as such terms are used in Rule 14a- 11 of
     Regulation  14A  promulgated  under  the  Exchange  Act  or  any  successor
     provision)  or other  actual  or  threatened  solicitation  of  proxies  or
     contests by or on behalf of a person other than a member of the Board; or

          (iv) the  approval by the  stockholders  of the Company of any plan of
     complete  liquidation of the Company or an agreement for the sale of all or
     substantially  all of the  Company's  assets  other than the sale of all or
     substantially  all of the assets of the  Company to a person or persons who
     beneficially own,  directly or indirectly,  at least fifty percent (50%) or
     more of the combined voting power of the outstanding  voting  securities of
     the Company at the time of such sale.

          (v) To the extent that  Employee is entitled to payment  under Section
     10(c) upon a Change in Control due to Employee's  termination without Cause
     or for Good  Reason  within  ninety (90) days prior to a Change in Control,
     any such payments under Section 10(c) shall be reduced by any payments made
     to  Employee  prior to a Change in Control  under  Sections  10(a)(iv)  and
     10(a)(v).

     11.  Limitation on Payments.

     (a) In the event that Employee shall become entitled to the payments and/or
benefits provided by Section 10(c) or any other amounts (whether pursuant to the
terms of this  Agreement or any other plan,  arrangement  or agreement  with the
Company,  any person whose  actions  result in a change of ownership  covered by
Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the "Code")
or any  person  affiliated  with the  Company  or such  person) as a result of a
Change of  Control  (collectively  the  "Company  Payments"),  and such  Company
Payments  will be subject to the tax (the "Excise  Tax") imposed by Section 4999
of

                                       9

<PAGE>

the Code (and any similar tax that may  hereafter be imposed) the Company  shall
pay to Employee at the time  specified  in  subsection  (d) below an  additional
amount (the "Gross-up  Payment") such that the net amount  retained by Employee,
after  deduction  of any Excise Tax on the  Company  Payments  and any  federal,
state,  and local income or payroll tax upon the Gross-up  Payment pro vided for
by this paragraph (a), but before  deduction for any federal,  state,  and local
income or payroll  tax on the  Company  Payments,  shall be equal to the Company
Payments.  Notwithstanding  the  foregoing  provisions of this Section 11 to the
contrary,  if it shall be  determined  that  Employee  is entitled to a Gross-up
Payment,  but the Company Payments do not exceed one hundred five percent (105%)
of the greatest  amount that could be paid to Employee  such that the receipt of
Company  Payments would not give rise to any Excise Tax (the "Reduced  Amount"),
then no Gross-up Payment shall be made to Employee and the Company Payments,  in
the aggregate, shall be reduced to the Reduced Amount.

     (b) For  purposes of  determining  whether any of the Company  Payments and
Gross-up  Payments  (collectively  the "Total  Payments") will be subject to the
Excise Tax and determining the amount of such Excise Tax: (i) the Total Payments
shall  be  treated  as  "parachute  payments"  within  the  meaning  of  Section
280G(b)(2)  of the Code,  and all  "parachute  payments"  in excess of the "base
amount" (as defined under Code Section  280G(b)(3) of the Code) shall be treated
as subject  to the Excise  Tax,  unless  and except to the extent  that,  in the
opinion of the Company's  independent  certified  public  accountants  appointed
prior to any change in ownership (as defined under Code Section  280G(b)(2))  or
tax counsel selected by such accountants (the "Accountants") such Total Payments
(in whole or in part), (A) do not constitute "parachute payments," (B) represent
reasonable  compensation  for services  actually  rendered within the meaning of
Section  280G(b)(4)  of the Code" or (C) are otherwise not subject to the Excise
Tax;  and (ii) the value of any  non-cash  benefits or any  deferred  payment or
benefit shall be determined by the Accountants in accordance with the principles
of Section 280G of the Code.

     (c) For  purposes  of  determining  the  amount  of the  Gross-up  Payment,
Employee  shall be deemed to pay federal  income  taxes at the highest  marginal
rate of federal  income  taxation  in the  calendar  year in which the  Gross-up
Payment is to be made and state and local income  taxes at the highest  marginal
rate of  taxation  in the state and  locality of  Employee's  residence  for the
calendar  year in which the  Company  Payment is to be made,  net of the maximum
reduction in federal income taxes which could be obtained from deduction of such
state and local taxes if paid in such year.  In the event that the Excise Tax is
subsequently determined by the Accountants to be less than the amount taken into
account hereunder at the time the Gross-up Payment is made, Employee shall repay
to the Company,  at the time that the amount of such  reduction in Excise Tax is
finally  determined,  the portion of the prior Gross-up Payment  attributable to
such reduction  (plus the portion of the Gross-up  Payment  attributable  to the
Excise Tax and federal, state and local income tax imposed on the portion of the
Gross-up  Payment  being  repaid by  Employee  if such  repayment  results  in a
reduction  in Excise Tax or a federal,  state and local  income tax  deduction),
plus  interest on the amount of such  repayment at the rate  provided in Section
1274(b)(2)(B)  of the  Code.  Notwithstanding  the  foregoing,  in the event any
portion of the  Gross-up  Payment to be refunded to the Company has been paid to
any  federal,  state and local tax  authority,  repayment  thereof  (and related
amounts) shall not be

                                       10

<PAGE>

required  until  actual  refund  or  credit  of such  portion  has been  made to
Employee,  and  interest  payable to the Company  shall not exceed the  interest
received or credited  to Employee by such tax  authority  for the period it held
such portion.  Employee and the Company shall  mutually agree upon the course of
action to be pursued  (and the method of  allocating  the  expense  thereof)  if
Employee's claim for refund or credit is denied.

     In the event that the Excise Tax is later  determined by the Accountants or
the Internal  Revenue Service to exceed the amount taken into account  hereunder
at the time the Gross-up Payment is made (including by reason of any payment the
existence  or amount of which cannot be  determined  at the time of the Gross-up
Payment),  the Company shall make an additional  Gross-up  Payment in respect of
such excess (plus any interest or penalties payable with respect to such excess)
at the time that the amount of such excess is finally determined.

     (d) The Gross-up  Payment or portion thereof provided for in subsection (c)
above shall be paid not later than the  thirtieth  (30th) day following an event
occurring which sub jects Employee to the Excise Tax; provided, however, that if
the  amount of such  Gross-up  Payment  or  portion  thereof  cannot be  finally
determined  on or before such day, the Company shall pay to Employee on such day
an estimate,  as  determined  in good faith by the  Accountants,  of the minimum
amount of such payments and shall pay the  remainder of such payments  (together
with interest at the rate provided in Code Section  1274(b)(2)(B)  of the Code),
subject to further  payments  pursuant to subsection (c) hereof,  as soon as the
amount  thereof can  reasonably  be  determined,  but in no event later than the
ninetieth  (90th) day after the occurrence of the event  subjecting  Employee to
the Excise Tax. In the event that the amount of the estimated  payments  exceeds
the  amount  subsequently  determined  to  have  been  due,  such  excess  shall
constitute  a loan by the  Company to  Employee,  payable on the fifth (5th) day
after  demand by the Company  (together  with  interest at the rate  provided in
Section 1274(b)(2)(B) of the Code).

     (e) In the event of any controversy  with the Internal  Revenue Service (or
other taxing authority) under this Section 11, Employee shall permit the Company
to control  issues  related to this Section 11 (at its  expense),  provided that
such  issues  do not  potentially  materially  adversely  affect  Employee,  but
Employee  shall  control  any  other  issues.   In  the  event  the  issues  are
interrelated,  Employee and the Company shall in good faith  cooperate so as not
to  jeopardize  resolution  of either  issue,  but if the parties  cannot agree,
Employee shall make the final  determination  with regard to the issues.  In the
event of any  conference  with any  taxing  authority  as to the  Excise  Tax or
associated income taxes, Employee shall permit the representative of the Company
to accompany him, and Employee and his  representative  shall cooperate with the
Company and its representative.

     (f) The Company shall be responsible for all charges of the Accountants.

     12.  Successors.  In  addition to any  obligations  imposed by law upon any
successor to the Company, the Company will require any successor (whether direct
or  indirect,  by  purchase,  merger,  consolidation  or  otherwise)  to  all or
substantially  all of the  business  and/or  assets of the Company to  expressly
assume and agree in writing to perform this

                                       11

<PAGE>

Agreement  in the same manner and to the same  extent that the Company  would be
required to perform it if no such succession had taken place.

     13. Survival.  The covenants,  agreements,  representations  and warranties
contained  in or  made  pursuant  to this  Agreement  shall  survive  Employee's
termination of employment.

     14. Entire  Agreement;  Modification.  This Agreement sets forth the entire
understanding  of the  parties  with  respect  to  the  subject  matter  hereof,
supersedes all existing  agreements  between them concerning such subject matter
(including,  without limitation, the employment agreement in effect prior to the
date hereof) and may be modified only by a written  instrument  duly executed by
each party.

     15. Notices. Any notice or other communication  required or permitted to be
given  hereunder  shall be in  writing  and shall be mailed by  certified  mail,
return receipt  requested,  or delivered against receipt to the party to whom it
is to be given at the  address of such party set forth in the  preamble  to this
Agreement (or to such other address as the party shall have furnished in writing
in accordance  with the provisions of this Section 15).  Notice to the estate of
Employee  shall be  sufficient  if  addressed  to  Employee  as provided in this
Section 15. Any notice or other  communication  given by certified mail shall be
deemed given three days after the time of  certification  thereof,  except for a
notice  changing a party's  address  which shall be deemed  given at the time of
receipt thereof.

     16. Waiver. Any waiver by either party of a breach of any provision of this
Agreement  shall  not  operate  as or be  construed  to be a waiver of any other
breach  of such  provision  or of any  breach  of any  other  provision  of this
Agreement. The failure of a party to insist upon strict adherence to any term of
this  Agreement  on one or more  occasions  shall not be  considered a waiver or
deprive that party of the right  thereafter  to insist upon strict  adherence to
that term or any other term of this  Agreement.  Any waiver  must be in writing,
signed by the party giving such waiver.

     17. Binding Effect.  Employee's rights and obligations under this Agreement
shall not be transferable  by assignment or otherwise,  such rights shall not be
subject to commutation,  encumbrance or the claims of Employee's creditors,  and
any attempt to do any of the  foregoing  shall be void.  The  provisions of this
Agreement  shall be binding  upon and inure to the benefit of  Employee  and his
heirs and personal  representatives,  and shall be binding upon and inure to the
benefit of the Company and its successors and its assigns under Section 12.

     18. No Third Party Beneficiaries. This Agreement does not create, and shall
not be construed as creating,  any rights  enforceable by any person not a party
to this Agreement (except as provided in Sections 12 and 17).

     19. Legal Fees. To the fullest  extent  permitted by law, the Company shall
promptly pay upon  submission  of  statements  all legal and other  professional
fees, costs of litigation,  prejudgment interest, and other expenses incurred in
connection with any dispute

                                       12

<PAGE>

concerning payments,  benefits and other entitlements to which Employee may have
under this  Agreement;  provided,  however,  the Company  shall be reimbursed by
Employee for the fees and expenses advanced in the event Employee's claim is, in
a material  manner,  in bad faith or frivolous and the  arbitrator or court,  as
applicable,  determines  that the  reimbursement  of such fees and  expenses  is
appropriate.

     20.  Pooling of  Interests;  Severability.  In the event that the Company's
independent  public  accountants  determine in good faith that any  provision of
this  Agreement  would preclude  "pooling of interests"  accounting and provided
that the Company engages in a transaction  which utilizes "pooling of interests"
accounting, such provision shall be deemed invalid and inoperative solely to the
extent necessary to permit "pooling of interests"  transactions.  If any portion
of this Agreement is held invalid or inoperative  (including a determination  by
the Company's independent public accountants in good faith that any provision of
this Agreement  would  preclude  "pooling of interests"  accounting),  the other
provisions of this  Agreement  shall be deemed to be valid and operative and, so
far as is  reasonable  and  possible,  effect  shall  be  given  to  the  intent
manifested by the portion held valid or inoperative.

     21. No Duty to  Mitigate/No  Offset.  The Company agrees that if Employee's
employment with the Company is terminated  pursuant to this Agreement during the
term of this Agreement,  Employee shall not be required to seek other employment
or to attempt  in any way to reduce  any  amounts  payable  to  Employee  by the
Company  pursuant  to this  Agreement.  Further,  the  amount of any  payment or
benefit  provided for in this Agreement shall not be reduced by any compensation
earned by Employee or benefit  provided to Employee as the result of  employment
by another employer or otherwise. The Company's obligations to make the payments
provided  for in  this  Agreement  and  otherwise  to  perform  its  obligations
hereunder  shall  not  be  affected  by  any  circumstances,  including  without
limitation, any set-off, counterclaim,  recoupment, defense or other right which
the Company may have against Employee.  Notwithstanding the foregoing,  payments
and benefits  under the  Agreement  will cease to be paid and may be recouped by
the Company in the event Employee breaches any of the terms of Section 6, 7 or 8
hereunder.

     22.  Counterparts;  Governing  Law.  This  Agreement may be executed in any
number of  counterparts,  each of which shall be deemed an original,  but all of
which  together  shall  constitute  one and the  same  instrument.  It  shall be
governed  by and  construed  in  accordance  with the  laws of the  State of New
Jersey, without giving effect to the conflict of laws.

                                       13

<PAGE>

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

                                               CELGENE CORPORATION

                                                By:
                                                   -----------------------------
                                                     Richard C. E. Morgan
                                                     Chairman of the
                                                     Compensation Committee

                                                By:
                                                   -----------------------------
                                                     John W. Jackson
                                                     Chief Executive Officer

                                                --------------------------------
                                                     Sol J. Barer

                                       13EXHIBIT 10.18

                              EMPLOYMENT AGREEMENT

     EMPLOYMENT  AGREEMENT  (this  "Agreement"),  dated as of  January  1, 2000,
between Celgene  Corporation,  a Delaware  corporation  with offices at 7 Powder
Horn  Drive,  Warren,  New Jersey  07059 (the  "Company"),  and Robert J. Hugin,
residing at 58 Ox Bow Lane, Summit, New Jersey 07901 ("Employee").

                               W I T N E S S E T H
                               - - - - - - - - - -

     WHEREAS, Employee is currently employed by the Company;

     WHEREAS,  the  Company  desires  that  Employee  be  employed  in a  senior
executive  capacity with the Company subject to the terms and conditions hereof,
and Employee desires to be employed by the Company in such capacity; and

     WHEREAS,  the parties  hereto  desire to set forth in writing the terms and
conditions of their  understandings and agreements and to supersede any existing
agreement between the parties.

     NOW  THEREFORE,  in  consideration  of the  premises  and mutual  covenants
contained  herein and for other good and  valuable  consideration,  the  parties
agree as follows:

     1. Term.  The Company  agrees to employ  Employee,  and Employee  agrees to
serve, on the terms and conditions of this Agreement for a period  commencing on
the date  hereof and ending  three  years  from the date  hereof,  or such other
period as may be  provided  for in Section 10 or 11.  The  period  during  which
Employee is employed  hereunder is  hereinafter  referred to as the  "Employment
Period." The  Employment  Period shall be  automatically  renewed for successive
one- year terms unless either party gives  written  notice to the other at least
six (6) months prior to the expiration of the then  Employment  Period,  of such
party's intention to terminate Employee's employment hereunder at the end of the
then current Employment Period.

     2. Duties and Services.  During the  Employment  Period,  Employee shall be
employed  in the  business of the  Company as Senior  Vice  President  and Chief
Financial Officer of the Company. In addition, Employee shall serve as Secretary
to the Board.  Employee  shall  perform  such  duties and  services,  within his
expertise  and  experience,  as may be  assigned  to him by, and  subject to the
direction of, the Chief Executive Officer and the Board.  Employee agrees to his
employment  as  described  in this  Section 2 and  agrees  to devote  all of his
working time and efforts to the  performance of his duties under this Agreement,
excepting  disabilities,  illness and vacation time as provided by Section 3(e).
In performing his duties  hereunder,  Employee shall be available for reasonable
travel as the needs of the  business  require.  Except as  provided in Section 6
hereof,  the foregoing  shall not be construed as preventing  Employee from: (i)
making  investments  in  other  businesses  and  managing  his and his  family's
personal investments; and (ii) participating in charitable,  civic, educational,
professional, community or industry affairs or

<PAGE>

serving  on  the  board  of   directors   of  other   companies   ("Professional
Activities"),  provided that these  Professional  Activities are approved by the
Company's Board.

     3.   Compensation and Other Benefits.

     (a) As  compensation  for his  services  hereunder,  the Company  shall pay
Employee,  during  the  Employment  Period,  a  base  salary  payable  in  equal
semi-monthly  installments  at an annual rate of  $240,000,  provided  that such
salary  shall be  reviewed  annually  by the  Company's  Board,  or a  committee
thereof,  which may, in its sole  discretion,  increase (but not decrease)  such
salary.

     (b) The Company shall also pay Employee,  during the Employment  Period, an
annual target bonus,  payable in January of each year for the preceding year, in
an amount equal to thirty-five  percent (35%) of Employee's base salary (payable
under Section 3(a) of this Agreement)  measured against objective criteria to be
determined  by the Company's  Board,  or a committee  thereof,  after good faith
consultation with Employee.

     (c)  Employee  shall be entitled  to  participate  in all group  health and
insurance  programs and all other fringe  benefit or retirement  plans which the
Company may, in its sole and absolute discretion, elect to make available to its
employees generally, provided Employee meets the qualifications therefor.

     (d)  Employee  shall be  eligible  to  participate  in the  Company's  1998
Long-Term  Incentive  Plan (the  "Plan")  and any other  incentive  plans of the
Company. Upon the Employee's Disability (as defined in the Plan), termination of
employment with the Company due to Retirement (as defined in the Plan) or death,
Employee (or the legal  representative  of his estate, in the case of Employee's
death) shall be entitled to: (i) full vesting and  immediate  exercisability  of
any  outstanding  stock  options  and  other  equity  awards  (and  lapse of any
forfeiture provisions) granted to Employee at any time; and (ii) with respect to
stock options granted to Employee on or after January 1, 2000,  Employee (or the
legal  representative  of his estate,  in the case of Employee's death) shall be
entitled  to exercise  such stock  options at any time during the three (3) year
period from the date of Employee's Disability, Retirement or death.

     (e)  Employee  shall be  entitled to four weeks of paid  vacation  per year
during the Employment Period.

     4. Expenses. Employee shall be entitled to reimbursement for all reasonable
travel and other out-of-pocket  expenses necessarily incurred in the performance
of his duties hereunder,  upon submission and approval of written statements and
bills in accordance with the then regular procedures of the Company.

     5.  Representations  and  Warranties of Employee.  Employee  represents and
warrants  to the  Company  that  Employee  is  under  no  contractual  or  other
restriction  or  obligation  which is  inconsistent  with the  execution of this
Agreement,  the  performance of his duties  hereunder or the other rights of the
Company hereunder.

                                        2

<PAGE>

     6.   Non-Competition.

     (a) In view of the unique and valuable  services that Employee has rendered
or is expected to render to the Company,  Employee's knowledge of the customers,
trade secrets and other proprietary  information relating to the business of the
Company and its  customers and  suppliers  and similar  knowledge  regarding the
Company  which  Employee  has  obtained  or  is  expected  to  obtain,   and  in
consideration  of the  compensation  to be received  hereunder,  Employee agrees
that:

          (i)  during  the  period he is  employed  by the  Company  under  this
     Agreement or otherwise,  he will not Participate In (as hereinafter defined
     in this Section 6) any other business or organization,  whether or not such
     business or  organization  now is or shall then be  competing  with or of a
     nature similar to the business of the Company,  without obtaining the prior
     written consent of the Chief Executive Officer of the Company;

          (ii) until the first  anniversary  of the date of the  termination  of
     Employee's  employment  under  this  Agreement  or  otherwise,  he will not
     Participate  In any business which is engaged,  directly or indirectly,  in
     the same  business as the Company with  respect to any specific  product or
     specific  service  sold or activity in which the Company  engages up to the
     time of termination of employment in any geographical  area in which at the
     time of termination  such product or service is sold or activity is engaged
     in by the Company;

          (iii) if a Change in Control occurs and Employee's employment with the
     Company is terminated  under this Agreement  without Cause (as  hereinafter
     defined) or by Employee  for Good  Reason (as  hereinafter  defined) at any
     time  during the period  beginning  on the date of a Change in Control  and
     ending  one (1) year  after the date of such  Change in  Control  or within
     ninety (90) days prior to a Change in Control,  then beginning on the later
     of the date  Employee's  employment  terminates  (as  described  under this
     Section  6(a)(iii))  and the date of a Change in Control  and ending on the
     second anniversary of such date, he will not Participate In any activity or
     business  in the  United  States  involved  in the  research,  development,
     commercialization  of a small molecule which is: (A) the generic equivalent
     of THALOMID (i.e.,  the same chemical  structure);  (B) an  anti-angiogenic
     agent for oncology use; (C) a  substantially  specific  TNFalpha  inhibitor
     (via inhibition of synthesis of TNFalpha, including via inhibition of PDE4)
     for the treatment of Crohn's disease, rheumatoid arthritis,  dermatological
     and  auto-immune  conditions  having excess levels of TNFalpha as the prime
     causative  factor,  cachexia (AIDS or cancer),  or any other indication for
     which the Company has been granted orphan drug status; or (D) a formulation
     of d- or dl-methylphenidate for the treatment of ADD/ADHD.

     (b) For  purposes of this Section 6 the term  "Participate  In" shall mean:
"directly or  indirectly,  for his own benefit or for, with or through any other
person, firm or corporation,  own, manage,  operate,  control,  loan money to or
participate  in the  ownership,  management,  operation  or  control  of,  or be
connected  as  a  director,  officer,  employee,  partner,  consultant,   agent,
independent  contractor  or otherwise  with, or acquiesce in the use of his name
in."

                                        3

<PAGE>

     (c) Employee  further agrees that,  during the period he is employed by the
Company under this Agreement or otherwise and until the first anniversary of the
date of the  termination  of  Employee's  employment  under  this  Agreement  or
otherwise,  he will not directly or  indirectly  reveal the name of,  solicit or
interfere  with,  or  endeavor  to  entice  away  from the  Company,  any of its
suppliers, customers or employees.

     7. Patents, etc. Any interest in patents, patent applications,  inventions,
technological  innovations,   copyrights,   copyrightable  works,  developments,
discoveries,  designs and processes  ("Inventions")  which  Employee  during the
period he is employed by the Company under this Agreement or otherwise,  and for
six months  thereafter,  may  conceive of or develop and either  relating to the
specific  fields in which the  Company  may then be engaged or  conceived  of or
developed utilizing the time, material, facilities or information of the Company
shall  belong to the Company;  as soon as Employee  conceives of or develops any
Invention,  he agrees  immediately  to  communicate  such fact in writing to the
Secretary of the Company, and without further compensation, but at the Company's
expense  (except  as noted in clause  (a) of this  Section  7),  forthwith  upon
request of the Company,  Employee shall execute all such  assignments  and other
documents  (including  applications  for  patents,  copyrights,  trademarks  and
assignments  thereof)  and  take  all  such  other  action  as the  Company  may
reasonably  request in order (a) to vest in the  Company all  Employee's  right,
title and interest in and to the Inventions, free and clear of liens, mortgages,
security interests,  pledges,  charges and encumbrances arising from the acts of
Employee  ("Liens")  (Employee  to  take  such  action,  at his  expense,  as is
necessary to remove all such Liens) and (b) if patentable or  copyrightable,  to
obtain patents or copyrights (including extensions and renewals) therefor in any
and all countries in such name as the Company shall determine.

     8. Confidential  Information.  All confidential  information which Employee
may now possess, may obtain during or after the Employment Period, or may create
prior  to the  end of the  period  he is  employed  by the  Company  under  this
Agreement  or  otherwise  relating  to the  business  of the  Company  or of any
customer or supplier of the Company  shall not be  published,  disclosed or made
accessible  by him to any other  person,  firm or  corporation  either during or
after  the  termination  of his  employment  or used by him  except  during  the
Employment  Period in the business  and for the benefit of the Company,  in each
case without the prior written permission of the Company.  Employee shall return
all tangible evidence of such  confidential  information to the Company prior to
or  at  the  termination  of  his  employment.   As  used  in  this  Section  8,
"confidential  information"  shall mean any information  except that information
which is or comes into the public  domain  through no fault of Employee or which
Employee  obtains after the  termination  of his employment by the Company under
this  Agreement  or  otherwise  from a third party who has the right to disclose
such information.

     9. Life  Insurance.  If requested by the Company,  Employee shall submit to
such  physical  examinations  and  otherwise  take such  actions and execute and
deliver such documents as may be reasonably  necessary to enable the Company, at
its expense and for its own  benefit,  to obtain life  insurance  on the life of
Employee.  Subject to its  ability to do so under the terms of such  policy,  if
any,  insuring  the  life  of  Employee,  upon  the  termination  of  Employee's
employment hereunder,  the Company will assign to Employee its rights under such
insurance policy,  provided

                                        4

<PAGE>

that,  concurrently  with such assignment,  Employee shall reimburse the Company
for any  premium  payments  made  by the  Company  in  respect  of time  periods
subsequent to such date of termination.  Nothing herein contained shall obligate
the Company to obtain such insurance.

     10.  Termination.

     (a) Employee's  employment and the Employment Period shall terminate on the
first of the following to occur:

          (i) the Company  provides  written notice to Employee of a termination
     for Cause;  such written notice shall be provided to Employee not less than
     ten (10) days prior to the date of  termination.  "Cause"  shall mean:  (A)
     Employee's conviction of a crime involving moral turpitude or a felony, (B)
     Employee's acts or omissions taken in bad faith and to the detriment of the
     Company  after a written  demand for cessation of such conduct is delivered
     to Employee by the Company, which demand specifically identifies the manner
     in which the Company believes that Employee has engaged in such conduct and
     the injury to the Company, and after Employee's failure to correct such act
     or omission  within ten (10) days  following  such written  demand,  or (C)
     Employee's  breach of any material  term of this  Agreement  after  written
     demand for substantial performance is delivered to Employee by the Company,
     which  demand  specifically  identifies  the  manner in which  the  Company
     believes Employee has breached this Agreement, and after Employee's failure
     to correct such breach within ten (10) days following such written demand.

          (ii)  Employee's  death, in which case, this Agreement shall terminate
     on the date of Employee's death,  whereupon  Employee or his estate, as the
     case may be,  shall be  entitled to receive a lump sum payment in an amount
     equal to Employee's  annual base salary (at the rate in effect, or required
     to be in effect, immediately prior to the date of Employee's death) and the
     portion of  Employee's  annual  target bonus (as provided in Section  3(b))
     pro-rated  up to  Employee's  date of death  (assuming  the target has been
     met).

          (iii) Nothing contained in this Section 10(a) shall be deemed to limit
     any other  right the Company may have to  terminate  Employee's  employment
     hereunder upon any ground permitted by law.

          (iv) If Employee's employment is terminated by the Company as a result
     of the  disability  or  incapacitation  of Employee or for any reason other
     than pursuant to the  provisions of paragraphs  (i) or (ii) of this Section
     10(a) or the provisions of Section 10(b),  upon  termination by the Company
     of  Employee's   employment,   whether  during  the  Employment  Period  or
     thereafter,  Employee shall be entitled to receive a lump sum payment in an
     amount equal to  Employee's  annual base salary (at the rate in effect,  or
     required  to be in  effect,  immediately  prior to the  date of  Employee's
     termination) and the portion of Employee's annual target bonus (as provided
     in  Section  3(b))   pro-rated  up  to  Employee's   date  of   disability,
     incapacitation or termination (assuming the target has been met).

          (v) In the event of the  Employee's  termination  for any reason under
     this Agreement or otherwise,  the Company shall pay and provide to Employee
     (in  addition  to

                                        5

<PAGE>

     any other  payments  or benefits  payable  under this  Agreement):  (A) any
     incurred  but  reimbursed  business  expenses  for the period  prior to the
     termination payable in accordance with the Company's policies; (B) any base
     salary,  bonus,  vacation  pay or other  deferred  compensation  accrued or
     earned under law or in accordance with the Company's policies applicable to
     Employee but not yet paid;  and (C) any other amounts or benefits due under
     the terms of the then  applicable  employee  benefit,  equity or  incentive
     plans of the Company applicable to Employee (the "Accrued Benefits").

          (vi)  Payments of any amounts or benefits  hereunder  shall be made no
     later  than ten (10) days after  Employee's  termination  date,  other than
     benefits under a plan with the terms which do not require or permit payment
     within such ten (10) day period.

     (b) During the ninety (90) day period  prior to Change in Control or during
the one (1) year period  following a Change in Control,  Employee may  terminate
his employment by written notice to the Company within thirty (30) calendar days
after he has obtained actual knowledge of the occurrence of a Good Reason event.
For purposes of this Agreement,  Good Reason shall mean the occurrence of any of
the following events without Employee's express written consent:

          (i) failure to elect or appoint, or reelect or reappoint, Employee to,
     or removal of Employee  from,  his position with the Company as Senior Vice
     President and Chief Financial Officer or as Secretary to the Board,  except
     in connection  with the  termination of Employee's  employment  pursuant to
     Section 10(a);

          (ii) a significant  change in the nature or scope of the  authorities,
     powers,   functions,   duties  or  responsibilities  normally  attached  to
     Employee's position as Senior Vice President and Chief Financial Officer or
     as  Secretary  to the  Board,  except in each case in  connection  with the
     termination of Employee's employment for Cause or as a result of Employee's
     death, or temporarily as a result of Employee's illness or other absence;

          (iii) a determination by Employee made in good faith that, as a result
     of a  Change  in  Control,  he is  unable  effectively  to  carry  out  the
     authorities,  powers, functions, duties or responsibilities attached to his
     position  as Senior  Vice  President  and  Chief  Financial  Officer  or as
     Secretary to the Board and the situation is not remedied within 30 calendar
     days after  receipt by the Company of written  notice from Employee of such
     determination;

          (iv) a  breach  by the  Company  of any  material  provision  of  this
     Agreement  (not covered by clause (i), (ii) or (iii) of this Section 10(b))
     or of any other  agreement,  which is not remedied  within 30 calendar days
     after  receipt by the  Company  of written  notice  from  Employee  of such
     breach;

          (v) a reduction in Employee's annual base salary;

                                        6

<PAGE>

          (vi) a  fifty  (50)  mile  or  greater  relocation  of  the  Company's
     principal office;

          (vii)  failure  of the  Company  to  continue  in effect any health or
     welfare plan,  employee benefit plan,  pension plan, fringe benefit plan or
     compensation   plan  in  which  Employee  (and  eligible   dependents)  are
     participating  immediately  prior to a Change in Control,  unless  Employee
     (and  eligible  dependents)  are  permitted to  participate  in other plans
     providing Employee (and eligible dependents) with substantially  comparable
     benefits  at  no  greater   after-tax   cost  to  Employee   (and  eligible
     dependents),  or the  taking  of any  action  by the  Company  which  would
     adversely affect the Employee's (and eligible dependents)  participation in
     or reduce  Employee's  (and eligible  dependents)  benefits  under any such
     plan; or

          (viii) failure of a successor to assume this Agreement.

     An election by Employee to terminate his employment under the provisions of
this Section 10(b) shall not  constitute a breach by Employee of this  Agreement
and shall not be deemed a voluntary  termination  of  employment by Employee for
the purpose of  interpreting  the  provisions of any of the  Company's  employee
benefit plans, programs or policies.

     (c) Upon the  occurrence  of a Change in  Control  and  thereafter:  (A) if
Employee's  employment  with the Company is  terminated  by the Company  without
Cause or as a result of the  disability  or  incapacitation  of Employee,  or by
Employee with Good Reason at any time during the period beginning on the date of
the Change in Control  and ending one (1) year after the date of such  Change in
Control,  or (B) if Employee's  employment with the Company is terminated by the
Company  without  Cause or by Employee for Good Reason  within  ninety (90) days
prior to the occurrence of a Change in Control,  then Employee shall be entitled
to receive from the Company:

          (i) a lump sum  amount,  payable  within  ten  (10)  days  after  such
     termination (or, if such termination occurred prior to a Change in Control,
     within ten (10) days after the  Change in  Control)  equal to (A) three (3)
     times  Employee's  base  salary in  effect,  or  required  to be in effect,
     immediately  prior to the  Change in  Control,  and (B) three (3) times the
     highest  annual  bonus paid or payable to Employee  within  three (3) years
     prior to the Change in Control;

          (ii)  within  ten  (10)  days  after  such  termination  (or,  if such
     termination  occurred  prior to a Change in  Control,  within ten (10) days
     after the Change in Control) equal to the Accrued Benefits;

          (iii)  payment by the Company of the premiums for Employee  (except in
     the case of Employee's  death) and  Employee's and  dependents'  health and
     welfare coverage  (including,  without  limitation,  medical,  dental, life
     insurance  and  disability  coverage) for three (3) years from the later of
     the  occurrence  of a  Change  in  Control  or the date of  termination  of
     Employee's  employment,  under the Company's health and welfare plans

                                        7

<PAGE>

     which  cover the senior  executives  of the Company or  materially  similar
     benefits  ("Continuation  Coverage"),  subject  to  Employee's  payment  of
     customary premiums (if any) in effect prior to the Change in Control;

          (iv) upon the  occurrence  of a Change in Control,  full and immediate
     vesting of all stock options and equity awards held by Employee.

     Payments under (iii) above may, at the  discretion of the Company,  be made
by continuing Employee's  participation in the plan as a terminee or by covering
Employee and Employee's dependents under substitute arrangements, provided that,
notwithstanding  anything herein to the contrary,  to the extent Employee incurs
tax that Employee  would not have incurred as an active  employee as a result of
the aforementioned coverage or the benefits provided thereunder,  Employee shall
receive  from the  Company  an  additional  grossed  up  payment  in the  amount
necessary so that Employee will have no additional cost for receiving such items
or any  additional  payment.  Notwithstanding  anything  herein to the contrary,
Employee  (and his  eligible  dependents)  shall  retain  all  rights  under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA") and
such  COBRA  continuation  coverage  shall be  available  to  Employee  (and his
eligible  dependents) at the expiration of the Continuation  Coverage  described
herein.

     (d) For  purposes  of this  Agreement,  a Change in Control  shall mean the
occurrence of the following:

          (i) any person  (as  defined  in  Section  3(a)(9)  of the  Securities
     Exchange  Act of 1934,  as  amended  (the  "Exchange  Act")  and as used in
     Sections 13(d) and 14(d) thereof), excluding the Company, any subsidiary of
     the Company and any employee  benefit plan  sponsored or  maintained by the
     Company or any subsidiary of the Company (including any trustee of any such
     plan acting in his capacity as trustee),  becoming the  "beneficial  owner"
     (as  defined in Rule 13d-3 under the  Exchange  Act) of  securities  of the
     Company  representing  thirty  percent (30%) of the total  combined  voting
     power of the Company's then outstanding securities;

          (ii) the merger,  consolidation  or other business  combination of the
     Company (a "Transaction"),  other than (A) a Transaction involving only the
     Company  and  one  or  more  of  its  subsidiaries,  or  (B) a  Transaction
     immediately  following which the  stockholders  of the Company  immediately
     prior to the Transaction continue to have a majority of the voting power in
     the  resulting  entity  and no person  (other  than  those  covered  by the
     exceptions in (a) above) becomes the beneficial  owner of securities of the
     resulting entity  representing  more than twenty-five  percent (25%) of the
     voting power in the resulting entity;

          (iii) during any period of two (2)  consecutive  years beginning on or
     after  the  date  hereof,  the  persons  who  were  members  of  the  Board
     immediately before the beginning of such period (the "Incumbent Directors")
     ceasing (for any reason other than death) to constitute at least a majority
     of the Board or the board of  directors  of any

                                                         8

<PAGE>

     successor  to the  Company,  provided  that,  any  director  who  was not a
     director as of the date hereof shall be deemed to be an Incumbent  Director
     if such  director  was  elected  to the  board of  directors  by, or on the
     recommendation  of or with the  approval  of,  at least  two-thirds  of the
     directors who then qualified as Incumbent  Directors  either actually or by
     prior operation of the foregoing  unless such election,  recommendation  or
     approval occurs as a result of an actual or threatened election contest (as
     such terms are used in Rule 14a-11 of Regulation 14A promulgated  under the
     Exchange Act or any  successor  provision)  or other  actual or  threatened
     solicitation  of proxies or contests by or on behalf of a person other than
     a member of the Board; or

          (iv) the  approval by the  stockholders  of the Company of any plan of
     complete  liquidation of the Company or an agreement for the sale of all or
     substantially  all of the  Company's  assets  other than the sale of all or
     substantially  all of the assets of the  Company to a person or persons who
     beneficially own,  directly or indirectly,  at least fifty percent (50%) or
     more of the combined voting power of the outstanding  voting  securities of
     the Company at the time of such sale.

          (v) To the extent that  Employee is entitled to payment  under Section
     10(c) upon a Change in Control due to Employee's  termination without Cause
     or for Good  Reason  within  ninety (90) days prior to a Change in Control,
     any such payments under Section 10(c) shall be reduced by any payments made
     to  Employee  prior to a Change in Control  under  Sections  10(a)(iv)  and
     10(a)(v).

     11.  Limitation on Payments.

     (a) In the event that Employee shall become entitled to the payments and/or
benefits provided by Section 10(c) or any other amounts (whether pursuant to the
terms of this  Agreement or any other plan,  arrangement  or agreement  with the
Company,  any person whose  actions  result in a change of ownership  covered by
Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the "Code")
or any  person  affiliated  with the  Company  or such  person) as a result of a
Change of  Control  (collectively  the  "Company  Payments"),  and such  Company
Payments  will be subject to the tax (the "Excise  Tax") imposed by Section 4999
of the Code (and any similar  tax that may  hereafter  be  imposed)  the Company
shall  pay to  Employee  at the  time  specified  in  subsection  (d)  below  an
additional amount (the "Gross-up  Payment") such that the net amount retained by
Employee,  after  deduction  of any Excise Tax on the Company  Payments  and any
federal,  state,  and local  income or  payroll  tax upon the  Gross-up  Payment
provided for by this paragraph (a), but before deduction for any federal, state,
and local income or payroll tax on the Company  Payments,  shall be equal to the
Company Payments. Notwithstanding the foregoing provisions of this Section 11 to
the contrary,  if it shall be determined that Employee is entitled to a Gross-up
Payment,  but the Company Payments do not exceed one hundred five percent (105%)
of the greatest  amount that could be paid to Employee  such that the receipt of
Company  Payments would not give rise to any Excise Tax (the "Reduced  Amount"),
then no Gross-up Payment shall be made to Employee and the Company Payments,  in
the aggregate, shall be reduced to the Reduced Amount.

                                        9

<PAGE>

     (b) For  purposes of  determining  whether any of the Company  Payments and
Gross-up  Payments  (collectively  the "Total  Payments") will be subject to the
Excise Tax and determining the amount of such Excise Tax: (i) the Total Payments
shall  be  treated  as  "parachute  payments"  within  the  meaning  of  Section
280G(b)(2)  of the Code,  and all  "parachute  payments"  in excess of the "base
amount" (as defined under Code Section  280G(b)(3) of the Code) shall be treated
as subject  to the Excise  Tax,  unless  and except to the extent  that,  in the
opinion of the Company's  independent  certified  public  accountants  appointed
prior to any change in ownership (as defined under Code Section  280G(b)(2))  or
tax counsel selected by such accountants (the "Accountants") such Total Payments
(in whole or in part), (A) do not constitute "parachute payments," (B) represent
reasonable  compensation  for services  actually  rendered within the meaning of
Section  280G(b)(4)  of the Code" or (C) are otherwise not subject to the Excise
Tax;  and (ii) the value of any  non-cash  benefits or any  deferred  payment or
benefit shall be determined by the Accountants in accordance with the principles
of Section 280G of the Code.

     (c) For  purposes  of  determining  the  amount  of the  Gross-up  Payment,
Employee  shall be deemed to pay federal  income  taxes at the highest  marginal
rate of federal  income  taxation  in the  calendar  year in which the  Gross-up
Payment is to be made and state and local income  taxes at the highest  marginal
rate of  taxation  in the state and  locality of  Employee's  residence  for the
calendar  year in which the  Company  Payment is to be made,  net of the maximum
reduction in federal income taxes which could be obtained from deduction of such
state and local taxes if paid in such year.  In the event that the Excise Tax is
subsequently determined by the Accountants to be less than the amount taken into
account hereunder at the time the Gross-up Payment is made, Employee shall repay
to the Company,  at the time that the amount of such  reduction in Excise Tax is
finally  determined,  the portion of the prior Gross-up Payment  attributable to
such reduction  (plus the portion of the Gross-up  Payment  attributable  to the
Excise Tax and federal, state and local income tax imposed on the portion of the
Gross-up  Payment  being  repaid by  Employee  if such  repayment  results  in a
reduction  in Excise Tax or a federal,  state and local  income tax  deduction),
plus  interest on the amount of such  repayment at the rate  provided in Section
1274(b)(2)(B)  of the  Code.  Notwithstanding  the  foregoing,  in the event any
portion of the  Gross-up  Payment to be refunded to the Company has been paid to
any  federal,  state and local tax  authority,  repayment  thereof  (and related
amounts) shall not be required until actual refund or credit of such portion has
been made to Employee,  and interest payable to the Company shall not exceed the
interest  received or credited to Employee by such tax  authority for the period
it held such  portion.  Employee and the Company shall  mutually  agree upon the
course  of action to be  pursued  (and the  method  of  allocating  the  expense
thereof) if Employee's claim for refund or credit is denied.

     In the event that the Excise Tax is later  determined by the Accountants or
the Internal  Revenue Service to exceed the amount taken into account  hereunder
at the time the Gross-up Payment is made (including by reason of any payment the
existence  or amount of which cannot be  determined  at the time of the Gross-up
Payment),  the Company shall make an additional  Gross-up  Payment in respect of
such excess (plus any interest or penalties payable with respect to such excess)
at the time that the amount of such excess is finally determined.

                                       10

<PAGE>

     (d) The Gross-up  Payment or portion thereof provided for in subsection (c)
above shall be paid not later than the  thirtieth  (30th) day following an event
occurring which subjects Employee to the Excise Tax; provided,  however, that if
the  amount of such  Gross-up  Payment  or  portion  thereof  cannot be  finally
determined  on or before such day, the Company shall pay to Employee on such day
an estimate,  as  determined  in good faith by the  Accountants,  of the minimum
amount of such payments and shall pay the  remainder of such payments  (together
with interest at the rate provided in Code Section  1274(b)(2)(B)  of the Code),
subject to further  payments  pursuant to subsection (c) hereof,  as soon as the
amount  thereof can  reasonably  be  determined,  but in no event later than the
ninetieth  (90th) day after the occurrence of the event  subjecting  Employee to
the Excise Tax. In the event that the amount of the estimated  payments  exceeds
the  amount  subsequently  determined  to  have  been  due,  such  excess  shall
constitute  a loan by the  Company to  Employee,  payable on the fifth (5th) day
after  demand by the Company  (together  with  interest at the rate  provided in
Section 1274(b)(2)(B) of the Code).

     (e) In the event of any controversy  with the Internal  Revenue Service (or
other taxing authority) under this Section 11, Employee shall permit the Company
to control  issues  related to this Section 11 (at its  expense),  provided that
such  issues  do not  potentially  materially  adversely  affect  Employee,  but
Employee  shall  control  any  other  issues.   In  the  event  the  issues  are
interrelated,  Employee and the Company shall in good faith  cooperate so as not
to  jeopardize  resolution  of either  issue,  but if the parties  cannot agree,
Employee shall make the final  determination  with regard to the issues.  In the
event of any  conference  with any  taxing  authority  as to the  Excise  Tax or
associated income taxes, Employee shall permit the representative of the Company
to accompany him, and Employee and his  representative  shall cooperate with the
Company and its representative.

     (f) The Company shall be responsible for all charges of the Accountants.

     12.  Successors.  In  addition to any  obligations  imposed by law upon any
successor to the Company, the Company will require any successor (whether direct
or  indirect,  by  purchase,  merger,  consolidation  or  otherwise)  to  all or
substantially  all of the  business  and/or  assets of the Company to  expressly
assume and agree in writing to perform this  Agreement in the same manner and to
the same  extent  that the  Company  would be  required to perform it if no such
succession had taken place.

     13. Survival.  The covenants,  agreements,  representations  and warranties
contained  in or  made  pursuant  to this  Agreement  shall  survive  Employee's
termination of employment.

     14. Entire  Agreement;  Modification.  This Agreement sets forth the entire
understanding  of the  parties  with  respect  to  the  subject  matter  hereof,
supersedes all existing  agreements  between them concerning such subject matter
(including,  without limitation, the employment agreement in effect prior to the
date hereof) and may be modified only by a written  instrument  duly executed by
each party.

                                       11

<PAGE>

     15. Notices. Any notice or other communication  required or permitted to be
given  hereunder  shall be in  writing  and shall be mailed by  certified  mail,
return receipt  requested,  or delivered against receipt to the party to whom it
is to be given at the  address of such party set forth in the  preamble  to this
Agreement (or to such other address as the party shall have furnished in writing
in accordance  with the provisions of this Section 15).  Notice to the estate of
Employee  shall be  sufficient  if  addressed  to  Employee  as provided in this
Section 15. Any notice or other  communication  given by certified mail shall be
deemed given three days after the time of  certification  thereof,  except for a
notice  changing a party's  address  which shall be deemed  given at the time of
receipt thereof.

     16. Waiver. Any waiver by either party of a breach of any provision of this
Agreement  shall  not  operate  as or be  construed  to be a waiver of any other
breach  of such  provision  or of any  breach  of any  other  provision  of this
Agreement. The failure of a party to insist upon strict adherence to any term of
this  Agreement  on one or more  occasions  shall not be  considered a waiver or
deprive that party of the right  thereafter  to insist upon strict  adherence to
that term or any other term of this  Agreement.  Any waiver  must be in writing,
signed by the party giving such waiver.

     17. Binding Effect.  Employee's rights and obligations under this Agreement
shall not be transferable  by assignment or otherwise,  such rights shall not be
subject to commutation,  encumbrance or the claims of Employee's creditors,  and
any attempt to do any of the  foregoing  shall be void.  The  provisions of this
Agreement  shall be binding  upon and inure to the benefit of  Employee  and his
heirs and personal  representatives,  and shall be binding upon and inure to the
benefit of the Company and its successors and its assigns under Section 12.

     18. No Third Party Beneficiaries. This Agreement does not create, and shall
not be construed as creating,  any rights  enforceable by any person not a party
to this Agreement (except as provided in Sections 12 and 17).

     19. Legal Fees. To the fullest  extent  permitted by law, the Company shall
promptly pay upon  submission  of  statements  all legal and other  professional
fees, costs of litigation,  prejudgment interest, and other expenses incurred in
connection with any dispute concerning payments, benefits and other entitlements
to which Employee may have under this Agreement;  provided, however, the Company
shall be reimbursed by Employee for the fees and expenses  advanced in the event
Employee's  claim is, in a material  manner,  in bad faith or frivolous  and the
arbitrator or court, as applicable,  determines that the  reimbursement  of such
fees and expenses is appropriate.

     20.  Pooling of  Interests;  Severability.  In the event that the Company's
independent  public  accountants  determine in good faith that any  provision of
this  Agreement  would preclude  "pooling of interests"  accounting and provided
that the Company engages in a transaction  which utilizes "pooling of interests"
accounting, such provision shall be deemed invalid and inoperative solely to the
extent necessary to permit "pooling of interests"  transactions.  If any portion
of this Agreement is held invalid or inoperative  (including a determination  by
the Company's independent public accountants in good faith that any provision of
this Agreement

                                       12

<PAGE>

would preclude "pooling of interests" accounting),  the other provisions of this
Agreement shall be deemed to be valid and operative and, so far as is reasonable
and possible, effect shall be given to the intent manifested by the portion held
valid or inoperative.

     21. No Duty to  Mitigate/No  Offset.  The Company agrees that if Employee's
employment with the Company is terminated  pursuant to this Agreement during the
term of this Agreement,  Employee shall not be required to seek other employment
or to attempt  in any way to reduce  any  amounts  payable  to  Employee  by the
Company  pursuant  to this  Agreement.  Further,  the  amount of any  payment or
benefit  provided for in this Agreement shall not be reduced by any compensation
earned by Employee or benefit  provided to Employee as the result of  employment
by another employer or otherwise. The Company's obligations to make the payments
provided  for in  this  Agreement  and  otherwise  to  perform  its  obligations
hereunder  shall  not  be  affected  by  any  circumstances,  including  without
limitation, any set-off, counterclaim,  recoupment, defense or other right which
the Company may have against Employee.  Notwithstanding the foregoing,  payments
and benefits  under the  Agreement  will cease to be paid and may be recouped by
the Company in the event Employee breaches any of the terms of Section 6, 7 or 8
hereunder.

     22.  Counterparts;  Governing  Law.  This  Agreement may be executed in any
number of  counterparts,  each of which shall be deemed an original,  but all of
which  together  shall  constitute  one and the  same  instrument.  It  shall be
governed  by and  construed  in  accordance  with the  laws of the  State of New
Jersey, without giving effect to the conflict of laws.

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

                                                 CELGENE CORPORATION

                                                 By:
                                                    ----------------------------
                                                      Richard C. E. Morgan
                                                      Chairman of the
                                                      Compensation Committee

                                                 By:
                                                    ----------------------------
                                                      John W. Jackson
                                                      Chief Executive Officer

                                                    ----------------------------
                                                          Robert J. Hugin

                                       13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]