Document:

EXHIBIT 10.39

                               Amendment No. 2 to
                                License Agreement

      This Amendment No. 2, dated April 8, 2003, to the License Agreement, dated
as of November 16, 2001, as amended by Amendment No. 1 dated as of March 3,
2003, by and among Pharmion GmbH, a Swiss limited liability company
("Pharmion"), Pharmion Corporation, a Delaware corporation ("Guarantor") and
Celgene Corporation, a Delaware corporation ("Celgene").

      WHEREAS, Pharmion, Guarantor and Celgene are parties to the License
Agreement, dated as of November 16, 2001, as amended by Amendment No. 1 dated as
of March 3, 2003 (the "Agreement"); and

      WHEREAS, Guarantor and Celgene have entered into a Securities Purchase
Agreement (the "Securities Purchase Agreement") whereby Guarantor will sell and
issue to Celgene a senior convertible promissory note in the principal amount of
$12,000,000 and a warrant to purchase shares of Celgene's common stock for an
aggregate purchase price of $12,000,000 (the "Securities Transaction"); and

      WHEREAS, pursuant to Section 5.4 of the Securities Purchase Agreement, the
obligation of Celgene to complete the Securities Transaction is subject to the
execution and delivery of this Amendment No. 2 to the Agreement;

      NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, Pharmion, Guarantor and Celgene hereby agree that the
Agreement be amended as follows:

      1. DEFINITIONS. All terms not otherwise expressly defined in this
Amendment shall have the meanings ascribed to such terms in the Agreement.

      2. TERMINATION BY EITHER PARTY IN THE EVENT OF BANKRUPTCY. Section 9.3(a)
of the Agreement is hereby amended to read in its entirety as follows:

               "(a) Celgene may terminate this Agreement on 60 days prior
         written notice to Pharmion following (i) a material breach by Pharmion
         of any covenant, duty or undertaking herein, or in the letter agreement
         of even date entered into among Pharmion, Guarantor and Celgene (the
         "Letter Agreement"), which is not cured within 60 days of written
         notice thereof; or (ii) if any of Pharmion, Guarantor or Pharmion BV, a
         wholly owned subsidiary of Guarantor, shall become insolvent or shall
         file or have filed by its creditors a petition in bankruptcy or similar
         proceeding, if a court of competent jurisdiction appoints a receiver
         over the business or assets of the other party, or the making by the
         party of a general assignment for the benefit of creditors. Pharmion
         may terminate this Agreement on 60 days prior written notice to Celgene
         following (i) a material breach by Celgene of any covenant, duty or
         undertaking herein, or in the Letter Agreement, which is not cured
         within 60 days of written notice thereof; or (ii) if

<PAGE>

         Celgene shall become insolvent or shall file or have filed by its
         creditors a petition in bankruptcy or similar proceeding, if a court of
         competent jurisdiction appoints a receiver over the business or assets
         of the other party, or the making by the party of a general assignment
         for the benefit of creditors."

      3. CONSEQUENCES OF TERMINATION BY CELGENE. Section 9.5(d) of the Agreement
is hereby amended to read in its entirety as follows:

               "(d) Pharmion shall, to the extent legally permissible, take all
         additional action reasonably necessary to assign all of its right,
         title and interest in and transfer possession and control to Celgene of
         the regulatory filings prepared by Pharmion, and regulatory approvals
         received by Pharmion, and all clinical and other research data related
         to such regulatory filings or approvals, to the extent that such
         filings and approvals relate to the Product."

      4. UNMODIFIED PROVISIONS. The provisions of this Amendment No. 2 shall be
deemed to be incorporated in the Agreement and, except as expressly modified by
this Amendment, all terms and conditions of the Agreement shall remain in full
force and effect.

      5. GOVERNING LAW. The parties agree that this Amendment shall be governed
by and construed in accordance with the laws of the State of New York.

      6. CAPTIONS. All captions herein are for convenience only and shall not be
interpreted as having any substantive meaning.

      IN WITNESS WHEREOF, the parties have caused this Amendment No. 2 to be
duly executed by their authorized representatives, in duplicate as of the date
first written above.

Pharmion GmbH                        Celgene Corporation

By: /s/ Patrick J. Mahaffy           By: /s/ Sol J. Barer
   --------------------------           ----------------------------------------
      Patrick J. Mahaffy                   Sol J. Barer
      Chief Executive Officer              President and Chief Operating Officer

Pharmion Corporation

By: /s/ Patrick J. Mahaffy
   --------------------------
      Patrick J. Mahaffy
      Chief Executive Officer

                                       2EXHIBIT 10.40

                              Pharmion Corporation
                                2525 28th Street
                             Boulder, Colorado 80301

August 18, 2003

Celgene Corporation
7 Powder Horn Drive
Warren, New Jersey 07059

Attention: Sol J. Barer, PhD

Gentlemen:

On March 3, 2003, Pharmion GmbH ("Pharmion"), Pharmion Corporation and Celgene
Corporation ("Celgene") entered into an Amendment No. 1 (the "Amendment") to the
License Agreement among such parties dated November 16, 2001 (the "Agreement").
Except as otherwise indicated, capitalized terms used herein have the meaning
ascribed to them in the Agreement or the Amendment.

In the course of an internal contract review, we believe that our mutual
intentions relating to an extension of time contemplated by Section 8 of the
Amendment, which changed from three years to five years a trigger date on a
Celgene termination right under Section 9.3(b)(i) of the Agreement, should also
apply to Section 9.4 (a) of the Agreement relating to co-exclusivity.

In addition, as we have explained to you, to date we have only been able to
obtain liability insurance coverage of $15 million per occurrence and $15
million in the aggregate. Accordingly, we would like to amend the provisions of
Section 8.4 of the Agreement to reflect these insurance limits.

Accordingly, this will confirm our agreement as follows:

      1.    Section 9.4(a) of the Agreement is hereby amended by replacing the
            words "within three (3) years after the date hereof" with the words
            "within five (5) years after the date hereof".

      2.    Section 8.4(a) of the Agreement is hereby amended by replacing the
            words "U.S. $10,000,000 per occurrence and U.S. $50,000,000 in the
            aggregate" with "U.S. $15,000,000 per occurrence and U.S.
            $15,000,000 in the aggregate".

Except as expressly modified by this letter, all terms and conditions of the
Agreement and the Amendment shall remain in full force and effect.

<PAGE>

Please indicate your acceptance and agreement with the foregoing by signing the
enclosed copy of this letter and returning it to us.

Very truly yours,

Pharmion Corporation                  ACCEPTED AND AGREED
Pharmion GmbH                         Celgene Corporation

By   /s/ Patrick J. Mahaffy           By
  ------------------------------        ---------------------------------------
     Patrick J. Mahaffy                    Sol J. Barer
     President and CEO                     President and Chief Operating Officer

                                      -2-

<PAGE>

Please indicate your acceptance and agreement with the foregoing by signing the
enclosed copy of this letter and returning it to us.

Very truly yours,

Pharmion Corporation                  ACCEPTED AND AGREED
Pharmion GmbH                         Celgene Corporation

By                                    By   /s/ Sol J. Barer
  ------------------------------        ---------------------------------------
     Patrick J. Mahaffy                    Sol J. Barer
     President and CEO                     President and Chief Operating Officer

                                      -2-EXHIBIT 10.50

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE  INFORMATION  SUBJECT TO THE  CONFIDENTIALITY  REQUEST.
OMISSIONS  ARE  DESIGNATED  AS ***. A COMPLETE  VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                               CELGENE CORPORATION

                                       AND

                               EVOTEC OAI LIMITED

                                SUPPLY AGREEMENT

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

                                      INDEX

1        DEFINITIONS AND INTERPRETATION........................................1

2        PURCHASE AND SALE.....................................................3

3        PRICING...............................................................3

4        FORECASTS AND ORDERS..................................................4

5        SHIPMENT, INVOICES, DELIVERY..........................................5

6        PAYMENTS..............................................................7

7        TERM AND TERMINATION..................................................7

8        SUPPLY QUALITY AND SECURITY OF PRODUCT................................8

9        RECALLS..............................................................11

10       WARRANTIES...........................................................12

11       INDEMNITY............................................................12

12       FORCE MAJEURE........................................................13

13       PATENT INFRINGEMENT..................................................14

14       CONFIDENTIALITY AND INTELLECTUAL PROPERTY............................15

15       ASSIGNMENT...........................................................18

16       GOVERNING LAW........................................................18

17       WAIVER...............................................................19

18       SEVERANCE OF TERMS...................................................19

19       ENTIRE AGREEMENT/VARIATIONS..........................................19

20       NOTICES..............................................................20

21       COUNTERPARTS.........................................................20

22       REGISTRATION.........................................................21

23       INDEPENDENT CONTRACTORS..............................................21

24       COSTS................................................................21

                                        i

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

THIS  AGREEMENT  (hereinafter  "Agreement")  is made as of the 1st day of August
2004 BETWEEN:

(1)      CELGENE  CORPORATION,  a Delaware  corporation  and having its business
         address at 7 Powder Horn Drive, Warren, New Jersey 07059, United States
         of America (hereinafter CELGENE).

AND

(2)      EVOTEC  OAI  LIMITED,  a  company  incorporated  in  England  and whose
         registered  office is at 151, Milton Park,  Abingdon,  Oxfordshire OX14
         4SD, UK (hereinafter EOAI).

WHEREAS:

CELGENE is the owner of the compound  known as CC-5013 and wishes to engage EOAI
to manufacture for CELGENE CC-5013 from time to time, as requested by CELGENE.

NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1        DEFINITIONS AND INTERPRETATION

1.1      In  this  Agreement  and in  the  Appendices  to  this  Agreement,  the
         following  words and phrases shall have the following  meanings  unless
         the context requires otherwise:

1.1.1    "Affiliate(s)" - shall mean any corporation, firm, partnership or other
         entity, whether de jure or de facto, which directly or indirectly owns,
         is  owned  by or is  under  common  ownership  with,  a  Party  to this
         Agreement to the extent of more then fifty  percent (50%) of the equity
         having the power to vote on or direct the affairs of the entity and any
         person,  firm,  partnership,   corporation  or  other  entity  actually
         controlled by. controlling or under common control with a Party to this
         Agreement.

1.1.2    "Batch" - shall  mean a  specific  quantity  of Bulk  Compound  that is
         intended  to have  uniform  character  and  quality,  within  specified
         limits,  and is  produced  according  to a single  manufacturing  order
         during the same cycle of manufacture.

1.1.3    "Bulk  Compound"  - shall mean a bulk  quantity  of the  Compound as an
         active  pharmaceutical  ingredient that has yet to be rendered into the
         commercial dosage form.

1.1.4    "Business  Day" - shall mean 09:00  hours to 17:00 hours on a day other
         than a Saturday,  Sunday,  English  bank or ether  English or US public
         holiday.

1.1.5    "cGMP" - means currant Good  Manufacturing  Practices as promulgated by
         the FDA as  detailed  in  Title  21,  United  States  Code  of  Federal
         Regulations,  or when appropriate,  any  corresponding  statutes and/or
         regulations  of  any  other  country's   prescription   pharmaceuticals
         regulating health authority or agency.

1.1.6    "Compound"    -    the    compound    known    as    CC-5013,     being
         3-(4-amino-1,3-dihydro-1-oxo-2H-isoindol-2-y)-2,6-piperidinedione.

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

1.1.7    "Compound  Specifications"  - means the written  physical  and chemical
         specifications for the Bulk Compound referenced in Appendix 1 hereto as
         amended from time to time pursuant to Clause 8.5.

1.1.8    "Confidential  Information" - means any information including,  but not
         limited to,  ideas,  proposals,  plans,  know-how,  reports,  drawings,
         designs,  data,  discoveries,  inventions,  improvements,  suggestions,
         specifications  (including  the  Compound  Specifications),   products,
         samples,  components and materials  relating to the Compound and to the
         Product, and all information relating to the manufacture, formulations,
         analysis,  stability,  pharmacology,  toxicology,  pathology,  clinical
         data,  results of  clinical  efficacy  studies,  clinical  effects  and
         indications for use of the Product which a Party discloses, directly or
         indirectly,  to the  other  Party,  so  long  as  such  information  is
         disclosed  in  writing  and  marked  "confidential"  or with a  similar
         legend;  or if verbal,  is reduced to writing and marked as such within
         thirty (30) days of disclosure.

1.1.9    "Contract  Price" - means the price par  kilogram of Bulk  Compound for
         each Batch set forth in Clause 3.1.

1.1.10   "Contract  Year" - means,  for the  first  Contract  Year,  the  period
         commencing on the Effective  Date and ending on 31st December 2004, and
         for subsequent Contract Years the successive calendar years thereafter.

1.1.11   "Effective Date" - means August 1, 2004,

1.1.12   "FDA" - means the United  States Food and Drug  Administration  and any
         successor entity thereto.

1.1.13   "Force Majeure" - shall mean any significant, unexpected event which is
         beyond the reasonable  control of either Party and for which such Party
         could not  reasonably  have been expected to have taken into account as
         of the Effective Date.

1.1.14   "Party" or "Parties" - means CELGENE or EOAI or both as the context may
         dictate.

1.1.15   "Producer Price Index" - shall mean the Producer Price Index for *** as
         published by the Office of National Statistics (ONS) United Kingdom.

1.1.16   "Product"-  means  compound in finished  form  suitable  for use by the
         ultimate consumer, packaged and labeled for marketing.

1.1.17   "Purchase Order" - means a formal document issued by CELGENE containing
         a firm order for delivery of Bulk Compound.

1.2      In this Agreement -

1.2.1    "References" - unless the context otherwise requires, all references to
         a particular Clause, paragraph or Appendix shall be a reference to that
         Clause,  paragraph or Appendix, in or

                                       2

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         to this Agreement as the same may be amended from time to time pursuant
         to this Agreement.

1.2.2    "Headings"  - a  table  of  contents  and  headings  are  inserted  for
         convenience only and shall be ignored in construing this Agreement.

1.2.3    "Gender/Plurality"  - unless  the  contrary  intention  appears,  words
         importing  the  masculine  gender  shall  include the feminine and VICE
         VERSA and words in the singular include the plural and VICE VERSA.

1.2.4    "Person"  - unless  the  contrary  intention  appears,  words  denoting
         persons   shall   Include   any   individual,   partnership,   company,
         corporation,  joint venture, trust, association,  organization or other
         entity, in each case whether or not having separate legal personality.

1.2.5    "Include" - reference to the words  "include" or "including"  are to be
         construed without limitation to the generality of the preceding words.

2        PURCHASE AND SALE

         CELGENE  shall  purchase  from EOAI and EOAI shall sell to CELGENE  the
         quantities of Bulk Compound ordered in accordance with Clause 4 hereof.
         EON shall not at any time  during the Term (as  defined in Section  7.1
         herein) or during  the  two-year  period  thereafter,  manufacture  the
         Compound   for  any  person  or  entity   other  than  CELGENE  or  its
         designee(s),  without the prior written consent of CELGENE. which shall
         not be unreasonably withheld.

3        PRICING

3.1      Price

         The Contract Price to be paid by CELGENE to EOAI for each (***Kg) Batch
         of Bulk  Compound  hereunder  shall be as  indicated  below  net of any
         applicable Taxes (as defined in 3.2 below):

                      *** (in words: US Dollars ***) per Kg

         The foregoing  Contract Price shall be payable in United States Dollars
         and shall be  adjusted  at the end of each  Contract  Year for all Bulk
         Compound ordered during the ensuing Contract Year by a percentage equal
         to the percentage  change in the Producer Price Index during the twelve
         (12) months preceding the change in the Contract Year.

         Any other adjustment to the Contract Price due to external factors such
         as raw material  price changes can be  implemented  at any time through
         the agreement of both Parties.

                                       3

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

3.2      Taxes

         In the event that any national,  federal,  state, county,  municipal or
         other governmental excise,  sales, import,  export, stamp or other tax,
         assessment,  or other  government-imposed  charge  (other  than any tax
         imposed  upon the Income of EOAI)  (collectively,  "Taxes")  is levied,
         assessed  or  charged  to  EOAI  on or  for  the  sale,  production  or
         transportation of the Bulk Compound sold to CELGENE, the Contract Price
         shall be increased by an amount  sufficient  to cover such Taxes.  Upon
         request by CELGENE,  EOAI shall promptly  provide CELGENE with evidence
         of payment of Taxes.

4        FORECASTS AND ORDERS

4.1      Initial Forecast

         Attached  hereto as Appendix 2 is the current  forecast of the quantity
         of Bulk  Compound  that  CELGENE will require for the first twelve (12)
         months of the Term (the  "Initial  Strategic  Forecast").  The  Initial
         Strategic  Forecast shall  constitute a firm  production  order against
         which  CELGENE  shall  Issue  Purchase  Orders.  CELGENE  may,  at  its
         discretion,  issue  Purchase  Orders for  quantities  of Bulk  Compound
         forecast for  delivery  after the first twelve (12) months of the Term.
         It is intended that the forecasts be used by EOAI to ensure appropriate
         and timely replenishment of stock.

4.2      Rolling Forecast

         On or about the first week of each  January  and July of each  Contract
         Year,  CELGENE  shall  confirm  to EOAI,  or update as  necessary,  the
         Initial  Strategic  Forecast  (it  being  understood  that the  Initial
         Strategic  Forecast  constitutes a firm  production  order according to
         Clause 4.1) and each  successive  forecast  subsequent  thereto (each a
         "Semi-Annual  Forecast")  for the  ensuing  twelve-month  period of the
         Term.  The  second six (6) months of each  Semi-Annual  Forecast  shall
         constitute a firm  production  order  against which CELGENE shall issue
         Purchase Orders.

4.3      Acceptance of Purchase Orders

         Subject to any adjustment that may be desirable to match  manufacturing
         batch  requirements  and which shall be  promptly  notified to CELGENE,
         EOAI shall accept firm Purchase  Orders  placed by CELGENE  pursuant to
         Clauses 4.1 and 4.2 above, within *** days of receipt, of such quantity
         up to *** percent  (***%) of the then  current firm  production  order.
         EOAI  shall  use  commercially  reasonable  efforts,  but  shall not be
         obligated, to supply any quantities ordered by CELGENE in excess of the
         *** percent (***%) cap.  Within *** days after EOAI receives  CELGENE's
         firm Purchase  Order for  quantities of Bulk Compound in excess of such
         *** percent  (***%) cap,  EOAI shall  notify  CELGENE  whether EOAI can
         supply the quantities and by what date.

                                       4

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

4.4      Purchase Orders

         CELGENE  shall  provide  EOAI with  Purchase  Orders  covering the firm
         production orders detailed in Causes 4.1 and 42 above not less than ***
         days  after  provision  of the  Initial  Strategic  Forecast  and  each
         Semi-Annual  Forecast,  as  applicable.  Each  Purchase  Order  made by
         CELGENE  shall be in writing  and,  in  addition  to any other terms or
         requirements that the Parties may specifically establish in writing for
         such Purchase Order,  shall set forth the date by which the goods shall
         be available for  collection  (the  "Delivery  Date').  EOAI shall make
         available  for  collection  each shipment of Bulk Compound on or before
         the Delivery  Date;  provided that it is  understood  and agreed by the
         Parties  that  EOAI  shall  not be  obligated  to make  available  Bulk
         Compound by the Delivery  Date set forth in any Purchase  Order,  which
         Purchase  Order is  received  by EOAI less than *** days  prior to such
         Delivery Date. The Delivery Date in such case shall be deemed to be ***
         days after the date of receipt of the Purchase Order by EOAI.

4.5      Units to be Ordered and Minimum Order Quantity

         Purchase  Orders will be  expressed  in terms of Batch  multiples.  The
         standard Batch size is *** kilograms,  from which the actual Batch size
         may vary by plus or minus *** percent (***%).

4.6      Conflicting Terms and Conditions

         Except  as  otherwise  provided  in  this  Agreement,   the  terms  and
         conditions  of  this  Agreement  shall  govern,   notwithstanding   any
         additional or  inconsistent  terms or  conditions in CELGENE's  form of
         Purchase  Order  or  similar  document  or in  EOAI's  acknowledgement,
         invoice or similar document.

5        SHIPMENT, INVOICES, DELIVERY

5.1      Title and Risk of Loss

         Risk of loss for the Bulk Compound  shall pass to CELGENE upon delivery
         FCA  Abingdon  Incoterms  2000.  Title  shall  pass to  CELGENE on full
         payment of the Contract Price to EOAI for the Bulk Compound.

5.2      Shipment

         EOAI shall, as agent for CELGENE, arrange for shipment of Bulk Compound
         covered by firm Purchase Orders from CELGENE pursuant to this Agreement
         to the  destination  advised by CELGENE  accompanied by Certificates of
         Analysis  for each Batch of Bulk  Compound  included in such  shipment.
         CELGENE shall be  responsible  for  obtaining any necessary  import and
         export  permits  and the like for Bulk  Compound.  EOAI  shall  provide
         reasonable  assistance to CELGENE in this respect.  Where Bulk Compound
         available for shipment has not yet received  quality  control  release,
         CELGENE  reserves the right to require in writing that such shipment be
         made under quarantine.

                                       5

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         CELGENE  shall  provide  EOAI with  appropriate  instructions  for each
         shipment of Bulk Compound  designating the destination,  including full
         address   details.   Shipment  shall  not  be  made  without   specific
         authorization  of  CELGENE.  EOAI  shall,  as  agent  for  CELGENE,  be
         responsible for arranging  appropriate carriage and insurance and shall
         invoice CELGENE for such  reasonable  out-of-pocket  expenses.  CELGENE
         shall have its choice of carrier on this basis.

5.3      Invoices

         At the date the Bulk Compound is accepted by the carrier, as authorized
         by CELGENE pursuant to Clause 5.2 above, EOAI shall invoice CELGENE for
         the Contract  Price for the total Bulk Compound  shipped.  In the event
         that Bulk Compound is stored at EOAI in  accordance  with the Agreement
         for Storage  referenced in Clause 5.5 below,  EOAI will invoice CELGENE
         upon placing the Bulk Compound into storage.

5.4      Addresses

         Unless otherwise notified to the sending party in writing:

         All Purchase Orders shall be sent to:        Evotec OAI Ltd
                                                      151 Milton Park
                                                      Abingdon, Oxon OX14 4SD
                                                      United Kingdom
                                                      Attn:  ***
                                                      Tel:  ***
                                                      Fax:  ***

         All shipments of Bulk Compound shall be sent to: to be informed

         All invoices shall be sent to:               Celgene Corporation
                                                      7 Powder Horn Drive
                                                      Warren
                                                      New Jersey 07059
                                                      United States of America
                                                      Attn:  ***
                                                      Tel:  ***
                                                      Fax:  ***

5.5      Storage

         Contemporaneously  with the execution  and delivery of this  Agreement,
         the Parties  hereto are  executing  and  exchanging  an  Agreement  for
         Storage in the form attached as Appendix 3 hereto.

                                       6

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

6        PAYMENTS

         Payment  shall be due no later than *** days from the date of  invoice.
         Late payments  shall attract  interest at an annual rate of *** percent
         (***%) above the base lending rate of Barclays  Bank plc at of the date
         such payment becomes past due and as may be adjusted from time to time.

         Payment shall be made in *** by wire  transfer to an account  indicated
         by EOAI, the details of which shall be notified to CELGENE by EOAI from
         time to time.

7        TERM AND TERMINATION

7.1      Term

         Except as  provided  in  Clauses  7.2 and 7.3  below,  the term of this
         Agreement  commences on the Effective Date and continues  until the end
         of the *** Contract Year (the "Term").

7.2      Renewal Term

         The Term shall be  automatically  renewed  for a period of *** upon the
         end of the *** Contract  Year and upon the end of each  renewal  period
         unless either Party to this Agreement  notifies the other in writing at
         least *** prior to the  commencement  of such renewal that such renewal
         shall not occur.

7.3      Early Termination

7.3.1    In  addition  to the  provisions  of Clauses  7.1 and 7.2  above,  this
         Agreement may be terminated prior to the expiration of the Term:

         (a)      by the non-breaching  Party on *** written notice in the event
                  of  materiel  breach,  or breach of a material  term,  of this
                  Agreement  by the  other  Party  which  breach  has  not  been
                  remedied by such other Party within such *** period; or

         (b)      by  the  non-defaulting   Party  on  ***  written  notice  (if
                  reasonable  steps  toward  cure have not been made during such
                  time) if the  other  Party  suspends  payment  of its debts or
                  otherwise  ceases  or  threatens  to  cease  to  carry  on its
                  business, becomes bankrupt or insolvent, goes into liquidation
                  (except for the purposes of  reconstruction  or amalgamation),
                  or compounds or enters into an arrangement with its creditors,
                  or a  receiver  or manager of the other  Party's  business  is
                  appointed,  or a petition is presented  for the  winding-up of
                  the other Party.

7.3.2    Notwithstanding  Clause  7.2  above,  CELGENE  shall  have the right to
         terminate  this  Agreement for any reason upon *** prior written notice
         to EOAI.

7.3.3    Upon the early termination of this Agreement by Celgene for any reason,
         EOAI agrees to cooperate  reasonably  with CELGENE in good faith as may
         be reasonably  necessary to

                                       7

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         facilitate the timely qualification of an alternative  manufacturer for
         the Bulk Compound at Celgene's expense.

7.4      Effect of Termination

7.4.1    Survival of Liability

         Termination  under  Clauses  7.1,  7.2 or 7.3 above  shall not  relieve
         either Party of its liability for breach of its obligations pursuant to
         the terms  and  conditions  of this  Agreement  incurred  prior to such
         termination.

7.4.2    Stock

         In the event of early  termination by CELGENE under Clause 7.3.2 above,
         CELGENE has the  obligation  to purchase from EOAI all usable stocks of
         Bulk Compound then on hand not exceeding the amount of the then current
         firm production order.

7.4.3    In case of early  termination  by EOAI under Clause 7.3.1 or by CELGENE
         pursuant to Clause 7.3.2 above,  CELGENE shall be  responsible  to EOAI
         for all  amounts  for  which  EOAI is  contractually  obligated  to its
         contractors  that are not  Affiliates  provided such  contracts  relate
         solely  to the  production  of Bulk  Compound,  and are not  reasonably
         avoidable,  and provided further that EOAI uses commercially reasonable
         efforts to mitigate same.

8        SUPPLY QUALITY AND SECURITY OF PRODUCT

8.1      Certificate of Analysis

         EOAI  shall  test or  cause  to be  tested  each  lot of Bulk  Compound
         according to the  Compound  Specifications  pursuant to this  Agreement
         before  delivery,  and a  Certificate  of Analysis  shall set forth the
         items tested,  specifications  and test results for each lot delivered.
         EOAI shall send or cause to be sent such certificates to CELGENE and to
         CELGENE's designated subcontractor prior to shipment, together with the
         delivery  of  Bulk  Compound.  CELGENE  is  entitled  to  rely  on such
         certificates  for all  purposes  of this  Agreement.  Unless  otherwise
         requested in writing by CELGENE,  EOAI shall  release the Bulk Compound
         to CELGENE  or to  CELGENE's  designated  subcontractor  after  testing
         against the Compound Specifications.

8.2      Good Manufacturing Practices Audits

         At CELGENE's  request and upon fourteen (14) days prior notice to EOAI,
         EOAI   shall   arrange   CELGENE   or   CELGENE's   agents   (bound  by
         confidentiality   obligations   similar  to  those   contained  in  its
         Agreement)  access during  reasonable  business hours to those areas of
         EOAI's facilities where Bulk Compound is manufactured, analyzed, stored
         and handled and to  manufacturing,  analytical  and quality  records of
         Bulk Compound manufactured for CELGENE. Such visits shall be limited to
         two (2) times per year,  other

                                       8

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         than in  extenuating  circumstances.  The right to access  contained in
         this  Clause is  exclusive  of the rights  discussed  in the  following
         paragraph.

         EOAI shall advise CELGENE immediately if an authorized agent of the FDA
         or any other governmental agency visits or announces plans to visit any
         of EOAI's manufacturing  facilities  concerning Bulk Compound.  CELGENE
         shall be entitled, where practicable and relevant, to be present at any
         such  inspection  and, where notice of such  inspection is available to
         satisfy itself prior to such  inspection  that  reasonable best efforts
         are being made to ensure a satisfactory outcome of the inspection. EOAI
         shall  furnish to CELGENE  the report by such  agency of such visit and
         the application of such report to Compound,  if any, within forty-eight
         (48) hours of EOAI's receipt of such report.

8.3      Discrepant Test Results

         Notwithstanding Clause 8.1, on receipt of the Bulk Compound, CELGENE or
         its designated  subcontractor or agent may conduct  analytical  testing
         within sixty (60) days of receipt of such Bulk  Compound in  accordance
         with  Clause  8.4. In the event of a  discrepancy  between  EOAI's test
         results  and those of CELGENE  or any of  CELGENE's  subcontractors  or
         agents,  such  that  one  set  of  results  fall  within  the  Compound
         Specifications   and  the  other  results  fall  outside  the  Compound
         Specifications  and in the event that such discrepant results cannot be
         resolved  to both  Parties'  satisfaction,  the  Parties  shall cause a
         recognized  independent testing laboratory to perform comparative tests
         on samples of the allegedly defective Bulk Compound, provided that such
         independent  laboratory  is  mutually  agreeable  to the  Parties.  The
         independent  tester's results shall be final and binding.  The costs of
         the testing shall be borne by EOAI where EOAI's test results were found
         by the independent tester to be erroneous and otherwise by CELGENE.

8.4      Defective Bulk Compound or Shortage of Supply

         CELGENE shall notify EOAI in writing of any claim  relating to damaged,
         defective  or  non-conforming  (with  respect  to this  Agreement,  the
         Compound  Specifications,  applicable  regulations  or the  like)  Bulk
         Compound or any shortage in quantity of any  shipment of Bulk  Compound
         within *** days of receipt of such Bulk  Compound (it being  understood
         that a *** day period is  required  for initial  testing  and  standard
         quality  assurance  testing of the Bulk  Compound),  or, in the case of
         Bulk Compound having latent defects.  which upon reasonable examination
         within such *** day period could not have been  discovered,  within ***
         days after discovery of such defect by CELGENE.  The Parties agree that
         in extenuating and unusual  circumstances,  such *** day limit shall be
         extended to a reasonable  time period under the  circumstances.  In the
         event of such rejection or storage, EOAI shall, unless otherwise agreed
         by the Parties or the cause of the rejection has been  determined to be
         not the fault of EOAI in accordance with Clause 8.3 above,  (i) use its
         commercially  reasonably  best  efforts  to  replace  the  rejected  or
         shortage of Bulk  Compound  without  undue delay but in no case greater
         than the time quoted for the original manufacture and delivery, subject
         to the  provisions of Clause 12 of this Agreement  (force  majeure) and
         raw  material  availability,  at no extra  cost to

                                       9

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         CELGENE,  (ii)  make  arrangements  with  CELGENE  for  the  return  or
         destruction of any rejected Bulk Compound,  all associated  costs to be
         paid by EOAI,  (iii)  reimburse  CELGENE for the  shipping  and related
         charges in respect of rejected Bulk Compound,  and (iv) with respect to
         any shortage of Bulk Compound,  bear the costs of shipping and insuring
         such Bulk  Compound to the extent that such  costs,  together  with the
         shipping  and  insurance  costs of the  original  shipment,  exceed the
         shipping and  insurance  costs that would have been  incurred had there
         not been a shortage in the original shipment.

8.5      Compound Specifications; Cost of Changes

         Compound  Specifications  may be modified from time to time as required
         by applicable law or a regulation or regulatory authority, or otherwise
         by written  agreement  of the  Parties and such  amended  form shall be
         attached hereto as a replacement for Appendix 1. The Parties agree that
         in the event  that  material  changes  to the  Compound  Specifications
         and/or EOAI's  facility or processes are required by applicable  law or
         regulation, the expense of such changes shall be handled as follows:

         (a)      CELGENE shall be responsible for such  out-of-pocket  costs in
                  the event that the required changes are specific and unique to
                  EOAI's services related to CC-5013.

         (b)      EOAI shall be responsible  for such costs in all other events,
                  which  includes,  without  limitation,  changes in regulations
                  which affect EOAI's work with clients other than CELGENE.

         In addition, the change control provisions contained in 8.6 below shall
         apply.

8.6      Change Control

         Any change in relation to methods of manufacture, specifications, batch
         size and  packaging  or in any of the plants in which Bulk  Compound is
         manufactured,  packaged or stored,  which reasonably could be deemed to
         require regulatory  amendment under US and/or EU regulations,  shall be
         subject  to  CELGENE's  prior  written  approval  which  shall  not  be
         unreasonably  withheld.  The Parties  will  co-operate  in ensuring any
         necessary regulatory  amendments are obtained.  No changes that require
         regulatory   amendment   shall  be  implemented   until  all  necessary
         regulatory approvals have been obtained.

8.7      Shelf Life

         All Bulk Compound  delivered  shall have at least *** months  remaining
         prior to its re-test  date,  as such date is determined by the Compound
         Specifications.

8.8      Equipment

         EOAI agrees that it currently  possesses or will purchase and maintain,
         at its sole cost and expense  unless  otherwise  agreed by the Parties,
         all  equipment  required to perform the  services  required of it under
         this  Agreement.  Any  changes  to be made  to  equipment  shall  be in
         compliance with the applicable  regulatory  authority's  guidelines and
         requirements.

                                       10

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         No such changes shall be made by EOAI without the prior written consent
         of CELGENE, such consent not to be unreasonably withheld.

8.9      Facility.

         All  manufacturing  pursuant to this  Agreement  shall be  performed at
         EOAI's  manufacturing   facility  located  at  Unit  117  Milton  Park,
         Abingdon, Oxon OX14 4SD, United Kingdom. Any changes to be made by EOAI
         with respect to manufacturing building, facilities and batch size shall
         be in compliance with the applicable regulatory  authority's guidelines
         and  requirements.  No such  changes  shall be made by EOAI without the
         prior  written  consent of  CELGENE,  which  shall not be  unreasonably
         withheld.

8.10     Subcontracting.

         Except as otherwise  expressly  provided in this Agreement,  EOAI shall
         not subcontract any manufacturing of Bulk Compound or its intermediates
         without the prior written consent of CELGENE.

         EOAI shall be allowed to subcontract  analytical  services (such as ***
         and  ***)  without  prior   consent  of  CELGENE   provided  that  such
         subcontractors  have  been  approved  by  CELGENE  in  writing  for the
         specific  services to be rendered by same and such  subcontractors  are
         bound by confidentiality and intellectual  properly obligations no less
         strict than the use of this Agreement.

9        RECALLS

9.1      In the event that

         (a)      any government authority issues a request,  directive or order
                  that the Product and/or Bulk Compound be recalled; or

         (b)      a court of competent jurisdiction orders such a recall; or

         (c)      CELGENE  reasonably  determines  after  consultation  with its
                  subcontractors  and/or  EOAI  that  the  Product  and/or  Bulk
                  Compound should be recalled.

         CELGENE shall take all appropriate  corrective actions,  and EOAI shall
         provide reasonable assistance at CELGENE's request.

9.2      To the extent  that any such  recall is caused by EOAI's  breach of any
         term of this  Agreement  including  but not  limited to a warranty  set
         forth in  Clause 10 or EOAI's  breach of  statutory  duty or out of the
         negligence or intentional misconduct of EOAI, EOAI shall be responsible
         for the cost of the recall  provided that EOAI shall not be responsible
         for the cost of any  recall to the  extent it is not caused by any such
         breach,  but by an inherent problem  associated with the Compound,  the
         registered process and/or the Compound Specifications.

                                       11

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

9.3      For the  purposes  of this  Agreement,  the  expenses  of recall  shall
         include, without limitation,  the expenses of notification,  refund and
         destruction  or return of the recalled  Product  and/or Bulk  Compound,
         where  appropriate,  and  the  Contract  Price  for the  Bulk  Compound
         recalled.

10       WARRANTIES

10.1     Title

         EOAI  warrants to CELGENE that EOAI shall convey good title to the Bulk
         Compound.

10.2     Compliance   with  Applicable   Regulations   and  Good   Manufacturing
         Practices; Conformity with Specifications

10.2.1   EOAI warrants and covenants that:

         (a)      its manufacturing  facilities  utilized for the manufacture of
                  Bulk Compound comply and will comply  throughout the Term with
                  applicable  regulations of the US and EU,  including,  without
                  limitation, applicable cGMP;

         (b)      the processes  utilized for the  manufacture  of Bulk Compound
                  are and will be throughout  the Term in accordance  with those
                  contained in the registered marketing authorization;

         (c)      all  the  Bulk   Compound   will   conform  to  the   Compound
                  Specifications when delivered; and

         (d)      the Bulk Compound shall have been  manufactured  in accordance
                  with the registered process and applicable cGMP.

10.3     Insurance

         EOAI will  maintain  for the  duration  of its  liabilities  under this
         Agreement,  product  liability  insurance  of no less  than ***  pounds
         ((pound)***)  cover,  per  calendar  year,  with a  reputable  insurer.
         Evidence  of such cover and its  renewal  shall be  provided to CELGENE
         annually in writing.  In the event that at such policy is  cancelled or
         not renewed for any reason,  CELGENE shall be  immediately  notified in
         writing  at  least  thirty  (30)  days  prior to such  cancellation  or
         non-renewal.

11       INDEMNITY

11.1     EOAI Indemnity

         CELGENE  shall  defend,  indemnify  and  hold  harmless  EOAI  and  its
         respective  officers,  directors and employees  (the "EOAI  Indemnified
         Parties") from and against any and all claims, suits, demands, actions,
         causes of action, liabilities,  damages, costs and expenses (including,
         without  limitation,  court costs and  reasonable  attorneys'  fees and
         expenses)

                                       12

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         incurred by the EOAI  Indemnified  Parties in connection with any third
         party claim to the extent arising out of or in connection with any Bulk
         Compound  supplied to CELGENE by EOAI pursuant to this Agreement and/or
         any products manufactured using such Bulk Compound except to the extent
         such third party claim arises out of EOAI's  breach of any term of this
         Agreement  including  but not  limited to any  warranties  set forth in
         Clause  10 or the  breach  of  statutory  duty by any EOAI  Indemnified
         Party(ies) or out of the  negligence or  intentional  misconduct of any
         EOAI Indemnified Party(ies).

11.2     CELGENE's Indemnity

         EOAI  shall  defend,  indemnify  and  hold  harmless  CELGENE  and  its
         respective officers,  directors and employees (the "CELGENE Indemnified
         Parties") from and against any and all claims, suits, demands. actions,
         causes of action, liabilities,  damages, costs and expenses (including,
         without  limitation,  court costs and  reasonable  attorneys'  fees and
         expenses)  incurred by the CELGENE  Indemnified  Parties in  connection
         with any third  party claim to the extent  that such  liability  arises
         from  EOAI's  breach of any term of this  Agreement  including  but not
         limited  to any  warranties  set forth in  Clause  10 or the  breach of
         statutory  duty  by  any  EOAI  Indemnified  Party(ies)  or  out of the
         negligence  or   intentional   misconduct   of  any  EOAI   Indemnified
         Party(ies).

11.3     Notice of Claim

         The indemnified Party shall:

         (a)      advise the  indemnifying  Party in  accordance  with Clause 20
                  below  of any  claim  or  lawsuit,  in  writing,  as  soon  as
                  practicable,  but not later than  fourteen (14) days after the
                  indemnified  Party  has  received  notice  of  said  claim  or
                  lawsuit; and

         (b)      assist the indemnifying  Party and its  representatives in the
                  investigation  and  defense of any  lawsuit  and/or  claim for
                  which indemnification is provided,  but allow the indemnifying
                  Party to maintain control over the action.

         The  failure to timely  provide  the notice  under (a) above  shall not
         relieve the indemnifying  party of its obligations under this Clause 11
         except to the extent that such  failure  substantially  prejudices  the
         defense of such third  party  claim.  The  indemnity  provided  in this
         Clause 11 shall not be valid as to any settlement of a claim or lawsuit
         or offer of  settlement  or  compromise  made without the prior written
         approval of the indemnifying Party.

11.4     The  obligations  of the Parties under this Clause 11 shall survive the
         expiration or termination of this Agreement.

12       FORCE MAJEURE

12.1     Force Majeure Events

                                       13

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         If a Party (the "Non-Performing Party) shall be unable to carry out any
         of its  obligations  under this  Agreement due to Force  Majeure,  this
         Agreement  shall  remain  in  effect  but  the  Non-Performing  Party's
         relevant  obligations  and the relevant  obligations of the other Party
         (the  "Innocent  Party")  owed to the  Non-Performing  Party under this
         Agreement shall be suspended for a period equal to the  circumstance of
         Force Majeure or three (3) months,  whichever is the shorter,  provided
         that

         (a)      the  suspension of  performance is of no greater scope than is
                  required by the Force Majeure;

         (b)      the  Non-Performing  Party  gives the  Innocent  Party  prompt
                  notice   describing  the   circumstances   of  Force  Majeure,
                  including  the  nature  of the  occurrence  and  its  expected
                  duration,  and  continues  to  furnish  regular  reports  with
                  respect thereto during the period of Force Majeure;

         (c)      the Non-Performing Party uses all reasonable efforts to remedy
                  its  inability  to perform and to mitigate  the effects of the
                  circumstances of Force Majeure;

         (d)      as soon as practicable after the event which constitutes Force
                  Majeure the Parties shall  discuss how best to continue  their
                  operations  as  far  as  possible  in  accordance   with  this
                  Agreement and

         (e)      any  payment  obligations   relating  to  periods  of  excused
                  performance shall also be excused and any advance payments for
                  periods of excused performance shall be refunded.

12.2     Consequences of Force Majeure

         Upon the  occurrence of an event of Force Majeure,  the  Non-Performing
         Party shall  promptly  notify the  Innocent  Party in writing,  setting
         forth the details of the occurrence,  its expected duration and how the
         Non-Performing  Party's  performance  is affected.  The  Non-Performing
         Party  shall  resume  the  performance  of its  obligations  as soon as
         practicable  after the Force Majeure  event  ceases.  In the event that
         EOAI is unable to deliver all the Bulk Compound  ordered by CELGENE for
         a particular  period as a result of an event of Force Majeure,  CELGENE
         may  elect to forego  the  quantities  ordered  or it may elect to take
         delivery  within a  reasonable  period of time after the Force  Majeure
         event ceases.

13       PATENT INFRINGEMENT

13.1     CELGENE's Warranty and Indemnity

         CELGENE  warrants that, to the best of its knowledge,  the manufacture,
         use or sale of the Product  and/or Bulk  Compound  does not infringe or
         misappropriate  any  patent  or other  proprietary  rights of any third
         party.  CELGENE shall defend,  indemnify and hold EOAI harmless against
         any judgment, damage, liability, loss, cost or other expense, including
         reasonable  legal fees, to the extent resulting from any breach of this
         warranty.

                                       14

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

13.2     Co-operation and Consultation

         Each Party shall give the other Party prompt  notice of any  threatened
         or pending claim or proceeding  against either or both Parties relating
         to a claim of infringement described In Clause 13.1 above. In the event
         of such notice and at the request of either Party, CELGENE shall assume
         control as stated in Clause 13.3 below, but agrees to consult with EOAI
         regarding how to proceed with respect to such claim or proceeding.

13.3     Defense by CELGENE

         CELGENE  shall  assume  full  control  of the  defense of such claim or
         proceeding described in Clause 11.1 above.

14       CONFIDENTIALITY AND INTELLECTUAL PROPERTY

14.1     During  the Term of this  Agreement  and for a period of ten (10) years
         thereafter,  neither  Party  shall  disclose  Confidential  Information
         received  from the  other  Party  (the  "Disclosing  Party")  hereunder
         without the Disclosing Party's prior written consent,  or use or permit
         to be used the  Disclosing  Party's  Confidential  Information  for any
         other purpose than the  performance of its  obligations or rights under
         this  Agreement.  Each Party shall procure that all employees and other
         persons having access to any  Confidential  Information are informed of
         its  secret  and  confidential  nature  and  to the  extent  reasonably
         practicable are subject to written  obligations similar to those of the
         Parties in this Clause 14.

14.2     No public  announcement or other disclosure to third parties concerning
         the  structure  and  financial  terms of this  Agreement  shall be made
         either directly or indirectly by any Party to this Agreement  except as
         may be legally  required  without  first  obtaining the approval of the
         other Party and agreement upon the nature and text of such announcement
         or disclosure  which approval and agreement  shall not be  unreasonably
         delayed  or  withheld,  provided  that in the  case  of any  disclosure
         required by either Party's investment bankers, lawyers, accountants and
         other  professional  advisors,  such  Party  shall not need to seek the
         other Party's  prior  approval,  provided that such  disclosure is made
         under terms of strict confidentiality and the detail of terms disclosed
         shall be kept to the  minimum  required by such  investment  bankers or
         other professional advisers.

         In all  circumstances,  including where disclosure is legally required,
         the  Party  desiring  to make any  such  public  announcement  or other
         disclosure shall inform the other Party of the proposed announcement or
         disclosure in, so far as practicable,  reasonably sufficient time prior
         to public release and shall provide the other Party with a written copy
         thereof  in order to allow  such  other  Party  to  comment  upon  such
         announcements or disclosure.

         Each Party shall  co-operate  fully with the other with  respect to all
         disclosures  regarding  this  Agreement to the US  Securities  Exchange
         Commission,  the Frankfurt Stock Exchange and any other governmental or
         regulatory  agencies including  requests for confidential  treatment of
         information of other Party included in any such disclosure.

                                       15

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

14.3     Neither  during  the Term of this  Agreement,  nor for a period  of ***
         years thereafter, shall EOAI submit for written or oral publication any
         manuscript,   abstract  or  the  like  which  includes  data  or  other
         information  generated  in the course of this  Agreement  or  otherwise
         provided  by either  Party and  relating  to the  Compound  or  Product
         without first  obtaining the prior  written  consent of CELGENE,  which
         consent  shall  not  be  unreasonably  withheld  or  delayed.  Wherever
         reasonably  possible,  the contribution of each Party shall be noted in
         all publications and presentations by acknowledgement or co-authorship,
         whichever is appropriate.

14.4     The obligations of confidentiality  referred to in this Clause 14 shall
         not extend to any information which:

         (a)      is or shall be  generally  available  to the public  otherwise
                  than by reason of breach by the Party to whom such information
                  was disclosed  ("the  Recipient  Party") of the  provisions of
                  this Clause 14;

         (b)      is known to the  Recipient  Party and is at its free  disposal
                  prior to its receipt from the Disclosing Party as demonstrated
                  by the  written  records of the  Recipient  Party.  Should the
                  Disclosing Party  reasonably  believe that the Recipient Party
                  is  planning  to  disclose  Confidential  Information  of  the
                  Disclosing  Party,  then the Disclosing  Party may, by written
                  request,  ask the  Recipient  Party to  provide  copies of its
                  written records which  demonstrate the Recipient Party's prior
                  knowledge  of such  information.  The  Recipient  Party  shall
                  provide such written  demonstration within forty (40) Business
                  Days after the  Disclosing  Party's  written  request.  If the
                  Recipient  Party does not provide such written  evidence or if
                  the  Parties  disagree  as to whether  such  written  evidence
                  establishes  the  Recipient  Party's  prior  knowledge of such
                  information,  then the  Recipient  Party  shall  not make such
                  planned  disclosure  unless  and until  such time as a neutral
                  party  has  ruled  with  respect  to this  Issue in  Recipient
                  Party's favor.  The Parties shall  promptly  appoint a neutral
                  party to  determine  whether  or not such  information  is the
                  Confidential Information of the Disclosing Party;

         (c)      is  independently  developed  by or for  the  Recipient  Party
                  without reference to, and by employees having no knowledge of,
                  the  Confidential  Information  of the  Disclosing  Party,  as
                  referenced  by  written  records,   provided  that  conclusive
                  evidence of such knowledge is furnished by the Recipient Party
                  to the  Disclosing  Party  within  twenty-eight  (28)  days of
                  receipt of demand for such proof;

         (d)      is  subsequently  disclosed  to the  Recipient  Party  without
                  obligation  of  confidence  by a  third  party  owing  no such
                  obligations in respect thereof;

         (e)      is  required  by  law  to  be  disclosed,  provided  that  the
                  provisions of Clause 14.6 are followed; or

                                       16

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         (f)      is required to be disclosed to any  regulatory  authority when
                  applying for a license to conduct  clinical or other trials or
                  studies or for regulatory, marketing or pricing approval.

14.5     The  obligations  of the Parties under this Clause 14 shall survive the
         expiration or termination of this Agreement.

14.6     Each Party shall  immediately  notify the other Party of receipt of any
         process. subpoena, or demand by any governmental authority or any other
         person  requiring  production of Confidential  Information of the other
         Party and shall,  within five (5) Business Days after receipt,  provide
         the other Party with a copy of such process,  subpoena,  or demand and,
         as available,  all materials and facts relating and responsive thereto.
         The  Party  whose  Confidential  Information  is the  subject  of  such
         process,  subpoena,  or demand  shall  have the right to take any legal
         action to prevent disclosure of its Confidential Information. The Party
         in receipt of such demand for disclosure  shall  reasonably  assist the
         first Party in attempting to limit such disclosure.

14.7     EOAI  agrees that any and all right,  title and  interest in and to any
         patentable  and/or  copyrightable   material,   notes,  data,  results,
         records, inventions, improvements,  developments, discoveries and trade
         secrets  made,  conceived,  reduced to practice,  or  discovered in the
         performance  of this  Agreement  that  consists  of or  relates  to the
         Compound or the Product,  the use,  manufacture or formulation thereof,
         or any other material,  product or process  belonging to CELGENE or its
         licensors,  or to any improvement(s),  enhancement(s) or refinements of
         any  of  same,  shall  be  the  sole  property  of  CELGENE   ("CELGENE
         Inventions").  EOAI further  agrees to assign (or cause to be assigned)
         and does hereby assign fully to CELGENE all such CELGENE Inventions and
         any patents,  copyrights or other intellectual property rights relating
         thereto.  In  addition,  to the  extent  allowed  by law,  any  CELGENE
         Inventions  which  constitute  copyrightable  subject  matter  shall be
         considered  "works made for hire" as that term is defined in the United
         States  Copyright Act. All CELGENE  Inventions and any information with
         respect  thereto  shall be deemed  CELGENE's  Confidential  Information
         subject to the confidentiality  provisions set forth in this Agreement.
         EOAI shall  disclose all CELGENE  Inventions to CELGENE  promptly after
         EOAI becomes aware of the making, conception,  reduction to practice or
         discovery  of  same.  CELGENE  shall  grant  to  EOAI  an  irrevocable,
         perpetual, non-exclusive,  royalty-free license to practice the CELGENE
         Inventions only in connection with the development or  manufacturing of
         products other than (i) the Compound,  (ii) any specific  intermediates
         in the synthesis route of the Compound,  and (iii)  diastereoisomers of
         the Compound.  The  foregoing  license grant shall include the right to
         sublicense  solely to those of  EOAI's  customers  that have  purchased
         development  or  manufacturing  services from EOAI and have a bona fide
         need to practice the CELGENE  Inventions  in connection  therewith,  in
         each  case  subject  to  CELGENE's  prior  written  consent,  not to be
         unreasonably withheld.

14.8     Upon the expiration or termination of this Agreement, or upon CELGENE's
         earlier  request,  EOAI  shall  deliver  to  CELGENE  all of  CELGENE's
         property  relating  to,  and  all  tangible   embodiments  of,  CELGENE
         Inventions in EOAI's possession or control.

                                       17

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

14.9     EOAI agrees to assist  CELGENE,  or  CELGENE's  designee,  at CELGENE's
         expense,  to obtain and from time to time enforce and defend  CELGENE's
         rights in the CELGENE  Inventions and any copyrights,  patents or other
         intellectual property rights relating thereto in any and all countries,
         and to execute all documents reasonably necessary for CELGENE to do so.

14.10    EOAI agrees  that if CELGENE is unable  using  commercially  reasonable
         efforts, because of EOAI's unavailability (only for the specific act to
         be performed),  dissolution,  or refusal, to secure EOAI's signature to
         apply for or to pursue any application for any United States of America
         or foreign  patents or  copyright  registrations  covering  the CELGENE
         Inventions  assigned  to CELGENE as provided  herein,  then EOAI hereby
         irrevocably   designates  and  appoints   CELGENE  and  CELGENE's  duly
         authorized officers and agents as EOAI's agent and attorney-in-fact, to
         act for and in EOAI's  behalf  and stead to  execute  and file any such
         applications and to do all other lawfully permitted acts to further the
         prosecution and issuance of patents and copyright registrations thereon
         with the same legal force and effect as if executed by EOAI.

14.11    EOAI  represents  and  warrants  that each  employee of EOAI,  and each
         independent  contractor of EOAI, if any, performing any work under this
         Agreement has executed an agreement with EOAI containing  provisions in
         CELGENE's  favor  substantially  similar to Clause 14.7  through  14.10
         above, including,  without limitation,  an obligation to assign any and
         all CELGENE Inventions to EOAI or CELGENE.

15       ASSIGNMENT

         Save as otherwise provided in this Agreement, neither Party may assign,
         transfer,  charge or in any other  manner  make over to any third party
         the benefit  and/or burden of this Agreement or encumber this Agreement
         in any way,  unless  that other Party has  consented  in writing to the
         change,  such  consent  not to be  unreasonably  withheld  or  delayed.
         Notwithstanding the foregoing.  CELGENE may assign this Agreement to an
         Affiliate,   or  in  connection  with  a  merger  or  sale  of  all  or
         substantially all its assets,  or a sale,  license or other disposition
         of  CELGENE's  business  related  to the  Compound,  without  the prior
         consent of EOAI,  provided  that the  assignee  agrees to abide by this
         Agreement.

16       GOVERNING LAW

         The validity,  construction  and performance of this Agreement shall be
         governed  by the laws of the State of New  York,  USA,  without  giving
         effect to the  principles of conflicts of law thereof.  In the event of
         any controversy or claim arising out of or relating to any provision of
         this  Agreement or the breach  thereof,  the parties hereto will try to
         settle their differences  amicably by themselves.  Any such controversy
         or claim which the parties hereto are unable to resolve shall initially
         be submitted for review and resolution by the chief executive  officers
         of the parties hereto. Any action,  suit or other proceeding  initiated
         by either party hereto under or in connection with this Agreement shall
         be brought  only in any Federal or state court in the State of New York
         having  jurisdiction  over the  subject  matter  thereof,  as the party
         hereto  bringing  such action,  suit or

                                       18

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

         proceeding  shall elect.  The parties  hereto submit  themselves to the
         jurisdiction  of any such  court and agree  that  service of process on
         them in any such  action,  suit or  proceeding  may be  effected by the
         means  by  which  notices  are  to be  given  to it  pursuant  to  this
         Agreement.

17       WAIVER

         Neither  Party  shall be deemed  to have  waived  any of its  rights or
         remedies whatsoever unless such waiver is made in writing and signed by
         a duly authorized representative of that Party. In particular, no delay
         or failure of either Party in exercising or enforcing any of its rights
         or remedies  whatsoever  shall operate as a waiver  thereof or so as to
         preclude or impair the  exercise or  enforcement  thereof nor shall any
         partial  exercise or  enforcement of any such right or remedy by either
         Party preclude or impair any other  exercise or enforcement  thereof by
         such Party.

18       SEVERANCE OF TERMS

18.1     If the  whole or any part of this  Agreement  is or shall  become to be
         declared illegal,  invalid or unenforceable in any jurisdiction for any
         reason  whatsoever  (including  both by reason of the  provision of any
         legislation  and  also  by  reason  of any  decision  of any  court  of
         competent  authority either having  jurisdiction over this Agreement or
         having jurisdiction over either of the Parties to this Agreement):

18.1.1   In the case of the  illegality,  validity  or  unenforceability  of the
         whole  of  this  Agreement,  it  shall  terminate  in  relation  to the
         jurisdiction in question; or

18.1.2   In the case of the illegality,  invalidity or  unenforceability of part
         of this  Agreement,  such part shall be severed from the Agreement,  or
         modified  to  the  extent  required  to  allow  enforceability,  in the
         jurisdiction   in  question,   and  such   illegality,   invalidity  or
         unenforceability  shall not in any way  whatsoever  prejudice or affect
         the  remaining  parts of this  Agreement  which shall  continue in full
         force and effect provided  always that if in the reasonable  opinion of
         either Party any such severance materially affects the commercial basis
         of this Agreement, such Party shall notify the other Party, whereby the
         Parties  shall meet and in good  faith try to  replace  the part of the
         Agreement so held illegal, invalid or unenforceable.

19       ENTIRE AGREEMENT/VARIATIONS

19.1     This Agreement between the Parties constitutes the entire agreement and
         understanding  between the Parties in relation to the commercial supply
         of  Bulk   Compound   and   supersedes   all  prior   oral  or  written
         understandings,  arrangements,  representations  or agreements  between
         them relating to this subject matter.

19.2     No variation,  amendment,  modification or supplement to this Agreement
         shall be valid  unless  made in writing  in the  English  language  and
         signed by a duly authorized representative of each Party.

                                       19

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

20       NOTICES

20.1     Save as otherwise  expressly  provided in this  Agreement any notice or
         other  communication  to be given by any  person  to any  other  person
         pursuant  to this  Agreement  shall be in  writing  and in the  English
         language and shall be delivered by hand or sent by first class  prepaid
         post or facsimile,  and shall be addressed to the recipient and sent to
         the address or facsimile number of the recipient set out below,  marked
         for the attention of the  representative set out below or to such other
         address and/or  facsimile  number or marked for such other attention as
         such  recipient  may  from  time to time  specify  by  notice  given in
         accordance  with this Clause 20 to the Party giving the relevant notice
         or other communication to it and shall be deemed to have been received:

20.1.1   In the case of delivery by hand, when delivered; or

20.1.2   In the case of  first  class  prepaid  post,  on the  fifth  (5th)  day
         following the day of posting; or

20.1.3   In the case of facsimile, on acknowledgement by the recipient facsimile
         receiving   equipment   on  a   Business   Day   provided   that   such
         acknowledgement  occurs  before 17:00 hours local time of the recipient
         on the  Business  Day of  acknowledgement  and in any other case on the
         Business Day next following having the Business Day of acknowledgement.

CELGENE:              Celgene Corporation
                      7 Powder Horn Drive
                      Warren, New Jersey 07059
                      United States of America
                      Attention:  ***
                      Tel:   ***
                      Fax:   ***

EOAI:                 Evotec OAI Limited
                      151 Milton Park
                      Abingdon
                      Oxfordshire OX14 4SD
                      United Kingdom
                      Attention:  ***
                      Tel:   ***
                      Fax:   ***

21       COUNTERPARTS

         This Agreement may be executed in two counterparts and by the different
         Parties hereof by separate counterparts, each of which when so executed
         shall be an original,  and both of which shall  constitute  one and the
         same  instrument.  Complete sets of  counterparts  shall be lodged with
         each Party.

                                       20

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

22       REGISTRATION

         Either  Party  shall have the right at any time where  commercially  or
         legally necessary or desirable to record,  register or otherwise notify
         this Agreement to appropriate governmental or regulatory offices having
         first given thirty (30) days' written  notice to the other Party of its
         intention so to do. The Party seeking to record,  register or otherwise
         notify this Agreement shall give due  consideration  to any comments or
         reasonable  request  made  by the  other  Party  in  relation  to  such
         recording,  registering  or  notifying.  The other Party shall  provide
         reasonable  assistance  in affecting  such  recording,  registering  or
         notifying.

23       INDEPENDENT CONTRACTORS

         None of the provisions of this Agreement  shall be deemed to constitute
         a  partnership  or joint  venture  between the Parties and none of them
         shall  have any  authority  to bind the  others  in any way  except  as
         provided in this Agreement.

24       COSTS

         Each  Party  shall  bear its own  legal  costs,  legal  fees and  other
         expenses incurred in the preparation and execution of this Agreement.

                            [Signature Page Follows]

                                       21

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

IN WITNESS  WHEREOF the Parties have  executed this document as an Agreement the
date and year first above written.

For and on behalf of                                         )  /s/ ***
                                                                ----------------
CELGENE CORPORATION                                          )
                                                             )
                                                                ----------------
Legal
Dept ***

For and or behalf of                                         )  /s/ ***
                                                                ----------------
EVOTEC OAI LIMITED                                           )  ***
                                                                ----------------
                                                                ***

                                       22

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

<PAGE>

                        AMENDMENT TO THE SUPPLY AGREEMENT

         This  Amendment,  effective  October 25,  2004,  is an amendment to the
Supply Agreement  effective October __, 2004 (the "Agreement")  between Celgene,
Inc.,  having  an  address  at  7  Powder  Horn  Drive,  Warren  NJ  07059,  USA
(hereinafter  "Celgene")  and Evotec  OAI Ltd.,  having an address at 151 Milton
Park, Abingdon, Oxfordshire OX14 4SD, UK (hereinafter "EOAI").

         WHEREAS,  Celgene  and EOAI wish to revise  the per  kilogram  price in
clause 3.1 of the  Agreement as a result of the  introduction  of an  additional
water slurry to guarantee the Polymorph ***.

         The  revised  price  per  kilogram  for a batch  size of ***  kilograms
(***Kg) shall be ***.

         In all other  respects,  the  Agreement  shall remain in full force and
effect, unless further amended by written agreement.

         IN  WITNESS  WHEREOF,  the  parties  hereto  have  duly  executed  this
Amendment effective the day and year first above-written.

         Celgene, Inc.

         By.       ***
            ------------------------------------

         Name:     ***
              ----------------------------------

         Title:    ***
               ---------------------------------

         Evotec OAI, Ltd.

         By.       ***
            ------------------------------------

         Name:     ***
              ----------------------------------

         Title:    ***
               ---------------------------------

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.

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