Document:

EXECUTIVE EMPLOYMENT AGREEMENT

         THIS  EMPLOYMENT  AGREEMENT,  effective as of January 15, 2002,  by and
between DR. WILLIAM E. GANNON,  JR.(the "Executive"),  an individual residing at
515 5th Street,  N.E.,  Washington,  D.C.  2002,  and CELSION  CORPORATION  (the
"Company"),  a Maryland  corporation  with offices at 10220-1 Old Columbia Road,
Columbia, Maryland 21046-1705.

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

         WHEREAS,  the Executive  desire to be employed by the Company,  and the
Company  desires that the Executive  shall be employed by it and render services
to it, and the  Executive is willing to be so employed  and to render  services,
all upon the terms and subject to the conditions set forth herein.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:

         1. Employment, Duties and Acceptance.

         1.1 The Company  hereby  employs  Executive,  and the Executive  hereby
accepts  employment,  for the term  ("Term")  set forth in Section 2 hereof,  to
render  services to Company as Medical  Director and Vice  President of Clinical
Affairs.  The Executive  represents and warrants to the Company that he has full
power and  authority to enter into this  Agreement  and that he is not under any
obligation of a contractual or other nature to any, person,  firm or corporation
which is  inconsistent  or in  conflict  with  this  Agreement,  or which  would
prevent,  limit  or  impair  in any  way the  performance  by  Executive  of his
obligations hereunder.

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         1.2 The  Executive  will have general  supervisory  authority  over the
establishment  and   implementation  of  scientific   strategies,   initiatives,
priorities,  policies,  protocols  and  clinical  trials of the  Company and its
subsidiaries or affiliates (referred to collectively as "Affiliates"),  and will
have such other duties and  responsibilities,  consistent with his position,  as
may  reasonably be assigned to him by the Board of Directors.  In addition,  the
Executive  will serve as a senior  officer of each of the Company's  Affiliates.
The Executive  will report to the President and Chief  Executive  Officer of the
Company.

         1.3 The  Executive  shall devote all of his business time and effort to
the business and affairs of the Company, and shall use his best efforts, skills,
and  abilities to promote the  interests of the Company,  except for  reasonable
vacations and during periods of illness or incapacity,  but nothing contained in
this  Agreement  shall  prevent  the  Executive  from  engaging  in  charitable,
community or other business  activities  provided they do not interfere with the
regular  performance of the Executive's duties and  responsibilities  under this
Agreement.

         1.4 Unless the  Executive and the Company shall  otherwise  agree,  the
Executive's  principal place of employment  shall be in and around the Columbia,
Maryland area, but the duties of the Executive  shall include such visits to the
Company's  Affiliates,  research  and  development  partners,  and  product  and
clinical  trial test sites,  in each case at the expense of the Company,  as the
Executive   determines  is  reasonably   required  in  the  performance  of  the
Executive's responsibilities.

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         2. Term.

         2.1 The Term of this Agreement will commence as of January 15,
2002 and will  terminate  at the close of business on January 14,  2005,  unless
sooner terminated in accordance with the provisions of this Agreement  ("Initial
Term").   Thereafter,  the  employment  of  the  Executive  shall  continue  for
successive  one-year  periods  (each  such one  year  period  being  hereinafter
referred to as a "Renewal  Term") unless the Corporation or Executive shall give
notice to the other at least  three  months  prior to the end of the Term or any
Renewal Term of the election of the  Corporation  or the  Executive to terminate
the  employment  of the  Executive  at the end of the Term or the  then  current
Renewal Term.

         3. Compensation.

         3.1 For all services  performed by the Executive  under this Agreement,
the Executive  shall be paid a base salary ("Base  Salary") for the first twelve
months of the Initial Term at the annual rate of  $195,000.  The Base Salary for
subsequent years shall be the greatest of (i) one hundred five percent (105%) of
the  Base  Salary  for  the  prior  calendar  year;  (ii)  the  product  of  the
multiplication of the Base Salary during the calendar year immediately preceding
by the sum of (y) one  hundred  percent  plus  (z) the  amount  (expressed  as a
percent)  by which the most  recently  reported  Consumer  Price  Index  ("CPI")
applicable to the  Washington-Baltimore  Metropolitan region is greater than the
CPI for that same region for the prior twelve  months;  or (iii) the sum offered
by the Board of  Directors  after a review  taking into  account  corporate  and
individual performance, the Company's prospects and general business conditions.

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         3.2  Base  Salary  shall  be  paid in  equal  monthly  or  semi-monthly
installments in keeping with the Company's standard payroll policies  applicable
to its senior executives.

         3.3 The  Executive  shall also be  eligible  for an annual  performance
bonus of up to an amount equal to twenty five percent (25%) of Base Salary,  the
award of which shall be in the sole and absolute  discretion  of the Board based
on such factors as the  performance  of the  Executive,  the  performance of the
Company, and the overall financial condition of the Company.

         4. Option to Acquire Common Stock.

         4.1 The Company  hereby  grants to Executive as a bonus (the "Bonus") a
non-qualified  stock option to acquire one hundred thousand (100,000) fully paid
and non-assessable shares of common stock (the "Bonus Shares"),  par value $0.01
per share (the "Common  Stock") of the Company.  The purchase  price for each of
the Bonus Shares  acquired  upon  exercise of the options  shall be $_____.  The
options to acquire the 100,000  shares of Common Stock shall vest in  accordance
with the following vesting schedule:  Options to acquire fifty thousand (50,000)
shares  shall vest  simultaneously  with the  execution of this  Agreement,  and
options to acquire  twenty five thousand  (25,000)  shares shall vest on each of
the first and second  anniversary dates of the effective date of this Agreement.
If  Executive  is not  employed by the Company on any of the two future  vesting
dates,  he shall no longer be entitled to exercise  his option to acquire  Bonus
Shares vesting on or after such date.  Subject to the  limitations  set forth in
this Agreement,  the Executive may exercise the stock options  constituting  the
Bonus  Shares,  at any time prior to 5:00 PM (New York time) on January 14, 2012

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(the "Expiration  Date"),  upon notice to the Company at its principal office at
10220-1 Old Columbia Road, Columbia, MD 21046-1705,  Attention:  Anthony Deasey,
Chief Financial Officer (or at such other location as the Company may advise the
Executive in writing), after which time all unexercised options shall expire and
be of no further legal force or effect.

         4.2 The Company shall at all times reserve for issuance and/or delivery
such number of shares of its Common  Stock as shall be required  for issuance or
delivery upon exercise of the option granted as a Bonus. No fractional shares or
scrip  representing  fractional  shares  shall  be  issued  when the  option  is
exercised.  Common  Stock  issued  on  exercise  of the Bonus may not be sold or
offered for sale in the absence of effective  registration under such securities
laws,  or  an  opinion  of  counsel   satisfactory  to  the  Company  that  such
registration  is not  required.  Bonus  Shares may be sold by the  Executive  in
transactions  permitted by the  provisions of Rule 144 of the  Securities Act of
1933. Bonus Shares shall bear an appropriate  restrictive  legend,  referring to
the provisions hereof.

         4.3 In case the Company  shall at any time issue Common Stock by way of
dividend  or other  distribution  on any stock of the  Company or  subdivide  or
combine the  outstanding  shares of Common  Stock,  the exercise  price shall be
proportionately decreased in the case of such issuance (on the day following the
date fixed for  determining  shareholders  entitled to receive such  dividend or
other  distribution)  or either  decreased  in the case of such  subdivision  or
increased in the case of such  combination (on the date that such subdivision or
combination shall become  effective).  The Company shall not be required to give
effect to any  adjustment in the exercise  price unless and until the net effect

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of one or more adjustments,  determined as above provided, shall have required a
change of the exercise  price by at least one cent,  but when the cumulative net
effect of more than one  adjustment so determined  shall be to change the actual
exercise  price by at least one cent,  such change in the  exercise  price shall
thereupon  be given  effect.  Upon any  adjustment  of the exercise  price,  the
Executive  shall  thereafter  (until  another  such  adjustment)  be entitled to
purchase,  at the new exercise  price,  the number of shares,  calculated to the
nearest full share, obtained by multiplying the number of shares of Common Stock
issuable by the  exercise  price in effect on the date hereof and  dividing  the
product  so  obtained   by  the  new   exercise   price.   In  the  event  of  a
reclassification,  recapitalization,  stock split,  reverse  stock split,  stock
dividend or combination of shares,  or other similar event, the number and class
of shares  issuable  to the  Executive  upon  exercise  of the option to acquire
either Bonus Shares shall be adjusted to reflect such event. Notwithstanding any
language to the contrary contained herein, if this Agreement is in effect at the
time of the  occurrence of a "Change of Control"  event,  the options to acquire
Bonus Shares shall  automatically  vest 100% and immediately  become exercisable
upon the  occurrence  of the  Change of  Control  event.  For  purposes  of this
Agreement,  Change of Control  event has the meaning  set forth in Section  11.1
hereof.

         5. [RESERVED].

         6. Reimbursement for Expenses.

         6.1 Company shall reimburse Executive for all reasonable  out-of-pocket
expenses  paid  or  incurred  by him  in the  course  of  his  employment,  upon
presentation  by Executive  of valid  receipts or invoices  therefor,  utilizing
procedures  and forms for that  purpose as  established  by Company from time to
time.

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         7. Vacations.

         7.1 Executive  shall be entitled to reasonable  vacations  (which shall
aggregate no less than four (4) weeks vacation with pay) during each consecutive
twelve  (12) month  period  commencing  on the date  hereof.  Executive  may not
accumulate  any vacation  days which remain unused at the end of any year during
the term hereof without the prior consent of Company.

         8. Employee Benefit Programs, etc.

         8.1 Subject to the Executive's meeting the eligibility  requirements of
each  respective  plan,  Executive  shall  participate in and be covered by each
pension, life insurance, accident insurance, health insurance,  hospitalization,
disability insurance and any other employee benefit plan of Company, as the case
may be,  made  available  generally  from  and  after  the  date  hereof  to its
respective  senior  executives,  on the same basis as shall be available to such
other executives without restriction or limitation by reason of this Agreement.

         8.2 Nothing herein contained shall prevent the Company from at any time
increasing  the  compensation  herein  provided to be paid to Executive,  either
permanently or for a limited period, or from paying bonuses and other additional
compensation  to  Executive,  whether  or not  based  upon the  earnings  of the
business of Company,  or from  increasing  or  expanding  any  employee  benefit
program  applicable  to the  Executive,  in the event the  Company,  in its sole
discretion,  shall  deem  it  advisable  so to  do in  order  to  recognize  and
compensate fairly Executive for the value of his services.

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         9.       Death or Disability.

                  9.1 If  Executive  shall  die  during  the term  hereof,  this
Agreement  shall   immediately   terminate,   except  that   Executive's   legal
representatives or designated beneficiaries shall be entitled to receive (i) the
Base Salary due to Executive  hereunder  to the last day of the month  following
the month in which his death occurs,  payable in  accordance  with the Company's
regular payroll practices,  (ii) all other benefits payable upon death under any
employee  benefit  program or other  insurance  covering the Executive as of the
date of death;  and (iii) any stock  option  issued to acquire the Bonus  Shares
that  was  exercisable  at the  date of  death  may be  exercised  by the  legal
representative of the Executive's  estate at any time or times during the period
beginning  on the date of death and ending one year after the date of death,  or
until the expiration of the stated term of such stock option,  whichever  period
is shorter,  and any stock option not  exercisable at the date of death shall be
forfeited.

         9.2 In the event of the  Disability of the  Executive,  as  hereinafter
defined,  the Executive  shall be entitled to continue to receive payment of his
Base Salary  (prorated  as may be  necessary)  in  accordance  with the terms of
Section 3 hereof through the last day of the sixth month  following the month in
which  Executive's  employment  hereunder  is  terminated  as a  result  of such
Disability.  At any time after the date of the Notice (as  hereinafter  defined)
and during the continuance of the Executive's Disability, the Company may at any
time thereafter terminate Executive's  employment hereunder by written notice to
the Executive.  The term  "Disability"  shall mean physical or mental illness or
injury which prevents the Executive from performing his customary duties for the
Company for a period of thirty (30)  consecutive  days or an aggregate period of
ninety  (90)  days  out of any  consecutive  twelve  (12)  months.  The  date of

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commencement  of  Disability  shall  be the date set  forth in the  notice  (the
"Notice")   given  by  Company  to  the  Executive  at  any  time   following  a
determination  of Disability,  which date shall not be earlier than the date the
Notice is given by Company.  A  determination  of Disability by Company shall be
solely  for the  purposes  of this  Section  9.2 and shall in no way  affect the
Executive's status under any other benefit plan applicable to the Executive.

         9.3 Upon the  occurrence  of a Disability,  and unless the  Executive's
employment  shall have been terminated as provided in Section 9.2, the Executive
shall,  during such time as he is continuing to receive Base Salary  payments as
set forth in Section 9.2, perform such services for Company, consistent with his
duties under  Section I hereof,  as he is  reasonably  capable of  performing in
light of the  condition  giving rise to a  Disability.  All  payments  due under
Section  9.2 shall be payable  in  accordance  with  Company's  regular  payroll
practices.  Any amount paid to Executive pursuant to this Agreement by reason of
his  Disability,  shall  be  reduced  by the  aggregate  amount  of all  monthly
disability payments which the Executive is entitled to receive under all workers
compensation  plans,  disability  plans and accident,  health or other insurance
plans or  programs  maintained  for the  Executive  by  Company,  by any company
controlling, controlled by or under common control with, Company.

         9.4 In the  event  the  Executive's  employment  is  terminated  due to
Disability,  in  addition to receipt of the Base Salary  payments  described  in
Section  9.2,  any stock  option  issued to acquire  the Bonus  Shares  that was
exercisable  at the date of Disability  may be exercised by the Executive or his
legal  representative  at any time or times,  during the period beginning on the
date of Disability  and ending one year after the date of  Disability,  or until

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the  expiration  of the stated term of such stock  option,  whichever  period is
shorter, and any stock option not exercisable at the date of Disability shall be
forfeited.

         10. Termination for Cause.

         10.1 The  employment  of the Executive may be terminated by the Company
for Cause. For this purpose, "Cause" shall mean:

            (i)   insubordination or the deliberate failure or refusal to comply
                  with the terms of this  Agreement or to follow the  directions
                  or policies of the Company, its executive officers or Board of
                  Directors,  which  directions or policies are consistent  with
                  normal  business  practices and relate to the  performance  by
                  Executive  of  his  duties  as  an  executive  of  Company  in
                  accordance  with the provisions of this  Agreement,  and which
                  failure or refusal shall remain  uncured for fifteen (15) days
                  after  written   notice  thereof  shall  have  been  given  to
                  Executive; provided, however, that the foregoing right to cure
                  shall  not  apply  to  any   failure  or  refusal  of  a  type
                  substantially  similar to a failure  or refusal  which was the
                  subject of a previous notice under this clause (i);

            (ii)  the  commission  by Executive of an act of theft,  dishonesty,
                  embezzlement,  vandalism,  fraud or  misappropriation  against
                  Company any subsidiary or affiliate of Company;

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            (iii) the conviction of Executive in any  jurisdiction of a criminal
                  act or acts committed by the Executive which constitute theft,
                  embezzlement, vandalism, fraud, misappropriation, or dishonest
                  acts against the Company;

            (iv)  any deliberate or intentional act or omission,  the purpose of
                  which is to  materially  damage the business or  reputation of
                  Company;

            (v)   incompetence,  negligence  or any  misconduct  by Executive in
                  performing his duties or willfully neglecting to carry out his
                  duties under this Agreement resulting in harm to the Company.

         10.2 In the event of a termination  for Cause,  the Executive shall (a)
be entitled  to any unpaid Base Salary pro rated up to the date of  termination,
and (b) any stock options not exercised  prior to the date of termination  shall
automatically  be forfeited by the  Executive,  and the Executive  shall have no
further rights under this  Agreement.  Furthermore,  the Executive  shall be and
remain  subject to all  provisions of Section 13 below for the period  indicated
therein.

         11. Termination Upon Change of Control or by Company Without Cause.

         11.1  A  "Change  in  Control"  shall  occur:  (A) if  any  Person,  or
combination of Persons (as hereinafter  defined), or any affiliate of any of the
above,  is  or  becomes  the  "beneficial  owner"  (as  defined  in  Rule  l3d-3
promulgated  under the Securities  Exchange Act of 1934) directly or indirectly,
of securities of the Company  representing  twenty-five percent (25%) or more of

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the total number of  outstanding  shares of common stock of the Company;  (B) if
individuals  who,  at the date of this  Agreement,  constitute  the  Board  (the
"Incumbent  Directors") cease, for any reason, to constitute at least a majority
thereof, provided that any new director whose election was approved by a vote of
at least  75% of the  Incumbent  Directors  shall  be  treated  as an  Incumbent
Director;  or (C)  the  Company  sells  substantially  all of  its  assets  to a
purchaser other than a subsidiary.  For purposes hereof, "person" shall mean any
individual,  partnership,  joint venture,  association,  trust, or other entity,
including  a "group"  as  referred  to in  section  13(d)(3)  of the  Securities
Exchange Act of 1934.

         11.2 If there  occurs a Change in  Control,  and if there  subsequently
occurs a material adverse change,  without the Executive's  written consent,  in
the  Executive's  working  conditions or status,  including but not limited to a
significant change in the nature or scope of the Executive's authority,  powers,
duties or  responsibilities,  or a reduction in the level of support services or
staff, then,  whether or not such change would otherwise  constitute a breach of
this Agreement by the Company,  this Agreement may be terminated by notice given
by the  Executive,  specifying  the Change of Control  and  significant  adverse
change or changes.

         11.3 Upon the  termination of this Agreement in accordance with Section
11.2  above,  the  Executive  will be  entitled,  without  any duty to  mitigate
damages, to:

                  (a)  All  unpaid  Base  Salary  pro-rated  up to the  date  of
         termination; and

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                  (b) The  opportunity  to exercise any stock  option  issued to
         acquire  the  Bonus  Shares  that  was   exercisable  at  the  date  of
         termination  may be  exercised  by the  Executive  at any time or times
         during the period  beginning on the effective date of  termination  and
         ending one year after the date of termination,  or until the expiration
         of the stated term of such stock option,  whichever  period is shorter,
         and any  stock  option  not  exercisable  upon  the  effective  date of
         termination shall be forfeited;

                  (c) A severance payment equal to 2.99 times the Base Salary in
         effect on the date of termination; and

                  (d)  All  benefits  available  under  the  Company's  employee
         benefit  programs,   to  theextent   applicable  to  senior  executives
         voluntarily and amicably retiring from employment with the Company.

         11.4 In the event that the Company  shall  actually  or  constructively
terminate  this  Agreement  during the Initial  Term or any Renewal Term without
cause (and with or without a Change of Control), the Executive shall be entitled
to the same  payments,  compensation  and  rights as  provided  in the case of a
termination by the Executive under Section 11.3.

         11.5 The payments and any other  compensation and benefits to which the
Executive  is  entitled  under this  Section 11 shall be made  available  to the
Executive  no later  than  thirty  (30) days  after the date of any  termination
referred to in Section 11.2, 11.3 or 11.4.

         11.6 In the event that  Executive  receives  the payments and any other
compensation  and  benefits  referred to in this Section 11, he will be bound by
the restrictive provisions of Section 13 for the period therein provided.

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         12. Termination by Executive.

         12.1  If the  Executive  shall  terminate  his  employment  under  this
Agreement  during the Initial  Term without  either (i) a Change of Control,  or
(ii)  the  express  written  consent  of the  Company,  then,  for  purposes  of
establishing the rights of the Executive upon such termination, such termination
shall be deemed the  equivalent of a  termination  for Cause under Section 10.1,
and the Executive  shall have only those rights with regard to  compensation  as
are set forth in Section  10.1,  and the  restrictive  provisions  of Section 13
below shall fully apply.

         12.2  If the  Executive  shall  terminate  his  employment  under  this
Agreement  during any Renewal  Term without the express  written  consent of the
Company,  then,  for purposes of  establishing  the rights of the Executive upon
such termination, the Executive shall be entitled (i) to receive all unpaid Base
Salary  pro-rated  up to the date of  termination,  and (ii) for a period of ten
(10) days following the date of termination,  to exercise any unexercised option
to  acquire  Common  Stock  under  either  Section 4 or  Section  5 hereof  that
Executive could have exercised on the day preceding the date of termination.

         12.3  In the  case of a  termination  pursuant  to  Section  12.2,  the
restrictions  set forth in Section 13 shall  apply to  Executive  for the period
therein stated.

         13. Restrictive Covenants; Compensation.

         13.1 During such time as this Agreement  shall be in effect and, except
as otherwise explicitly stated herein, for a period of three (3) years following
the  termination of  Executive's  employment  with Cause,  or one (1) year after
voluntary termination of this Agreement by Executive,  and without the Company's

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prior written  consent (which may be withheld for any reason or for no reason in
Company's  sole  discretion),  Executive  shall  not  do  anything  in  any  way
inconsistent  with his duties to, or adverse to the  interests  of, the Company,
nor shall Executive,  directly or indirectly,  himself or by or through a family
member or otherwise,  alone or as a member of a partnership or joint venture, or
as a principal,  officer, director,  consultant,  employee or stockholder of any
other entity,  compete with Company or be engaged in or connected with any other
business competitive with that of Company or any of its affiliates,  except that
Executive may own as a passive investment not more than five percent (5%) of the
securities of any publicly held  corporation  that may engage in such a business
competitive with that of Company or any of its Affiliates.

         13.2 In view of the fact that  Executive  will be  brought  into  close
contact with many confidential affairs of Company and its Affiliates not readily
available to the public,  Executive agrees during the Term of this Agreement and
thereafter:

                  (a) to keep secret and retain in the strictest  confidence all
         non-public  information  about  (i)  research  and  development,   test
         results, suppliers, venture or strategic partners, licenses and patents
         or  patent  applications,   planned  or  existing  products,  know-how,
         financial  condition  and  other  financial  affairs  (such  as  costs,
         pricing, profits and plans for future development, methods of operation
         and  marketing  concepts)  of  Company  and its  Affiliates;  (ii)  the
         employment  policies and plans of the Company and its  Affiliates;  and
         (iii) any other proprietary information relating to the Company and its
         Affiliates,  their  operations,  businesses,  financial  condition  and
         financial affairs (collectively,  the "Confidential  Information") and,

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         for  such  time  as  Company  or any of its  Affiliates  is  operating,
         Executive shall not disclose the Confidential Information to anyone not
         then an  officer,  director  or  authorized  employee of Company or its
         Affiliates,  either during or after the term of this Agreement,  except
         in the course of  performing  his duties  hereunder  or with  Company's
         express written consent or except to the extent that such  confidential
         information  can be shown to have been in the public domain  through no
         fault of Executive; and

                  (b) to deliver to Company within ten days after termination of
         his  services,  or at any time Company may so request,  all  memoranda,
         notes, records,  reports and other documents relating to Company or its
         Affiliates,   businesses,  financial  affairs  or  operations  and  all
         property associated therewith,  which he may then possess or have under
         his control.

         13.3  Executive  shall not at any time  during  the  three-year  period
following the termination of his employment for any reason whatsoever, including
termination resulting from the natural expiration of the term of this Agreement,
(i) employ any  individual  who was employed by Company or any of its Affiliates
at any time during the such period or during the 12 calendar months  immediately
preceding such termination,  or (ii) in any way cause,  influence or participate
in the employment of any such  individual by anyone else in any business that is
competitive  with any of the  businesses  engaged  in by  Company  or any of its
Affiliates.

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         13.4  Executive  shall not at any time  during  the  three-year  period
following  the  termination  of  his  employment,  for  any  reason  whatsoever,
including  termination resulting from the natural expiration of the term of this
Agreement,  directly or  indirectly,  either (i) persuade or attempt to persuade
any customer or client of the Company or of any of its Affiliates to cease doing
business with Company or with any Affiliate, or to reduce the amount of business
it does with Company or with any of its Affiliates,  or (ii) solicit for himself
or any person other than Company or any of its  Affiliates,  the business of any
individual  or business  which was a customer or client of Company or any of its
Affiliates at any time during the eighteen  month period  immediately  preceding
such termination.

         13.5 Executive  acknowledges  that the execution and delivery by him of
the promises set forth in this Section 13 is an essential  inducement to Company
to enter into this Agreement,  and that Company would not have entered into this
Agreement  but for  such  promises.  Executive  further  acknowledges  that  his
services are unique and that any breach or threatened breach by Executive of any
of the  foregoing  provisions  of this  Section 13 cannot be remedied  solely by
damages.  In the event of a breach or a threatened breach by Executive of any of
the  provisions  of this  Section 13,  Company  shall be entitled to  injunctive
relief restraining Executive and any business,  firm,  partnership,  individual,
corporation or other entity  participating  in such breach or attempted  breach.
Nothing herein, however, shall be construed as prohibiting Company from pursuing
any other  remedies  available at law or in equity for such breach or threatened
breach,  including the recovery of damages and the immediate  termination of the
employment of Executive hereunder.

                                       17
<PAGE>

         13.6 If any of the  provisions  of,  or  promises  contained  in,  this
Section  13 are  hereafter  construed  to be  invalid  or  unenforceable  in any
jurisdiction,  the same shall not affect the remainder of the  provisions or the
enforceability  thereof  in any other  jurisdiction,  which  shall be given full
effect,  without regard to the invalid portions or the  unenforceability in such
other jurisdiction.  If any provisions  contained in this Section 13 are held to
be unenforceable  in any jurisdiction  because of the duration or scope thereof,
the parties hereto agree that the court making such determination shall have the
power to reduce the  duration  and/or scope (if such  provision,  in its reduced
form, shall be enforceable);  provided,  however, that the determination of such
court shall not affect the enforceability,  duration or scope of this Section 13
in any other jurisdiction.

         14. Relationship of Parties.

         Nothing  herein  contained  shall be deemed to constitute a partnership
between or a joint venture by the parties,  nor shall anything herein  contained
be deemed to constitute either the Executive,  the Company or any Affiliates the
agent of the other except as is expressly provided herein. Neither Executive nor
Company  shall  be or  become  liable  or bound  by any  representation,  act or
omission  whatsoever of the other party made contrary to the  provisions of this
Agreement.

         15. Notices.

         All  notices  and  communications  hereunder  shall be in  writing  and
delivered  by  hand or  sent  by  registered  or  certified  mail,  postage  and
registration or  certification  fees prepaid,  return receipt  requested,  or by
overnight delivery such as Federal Express,  and shall be deemed given when hand
delivered  or upon three (3) business  days after the date when mailed,  or upon

                                       18
<PAGE>

one (1) business day after delivery to an agent for overnight delivery,  if sent
in such manner, as follows:

                  If to Company:   Celsion Corporation
                                   10220-1 Old Columbia Road,
                                   Columbia, Maryland 21046-1705.
                                   Attention: Anthony Deasey,
                                   Chief Financial Officer

                  With a copy to:  Venable, Baetjer and Howard, LLP
                                   Mercantile Bank and Trust Building
                                   2 Hopkins Plaza, Suite 1800
                                   Baltimore, Maryland 21201
                                   Attn:  Greg Cross

                  If to Executive: Dr. William E. Gannon, Jr.
                                   515 5th Street, N.E.
                                   Washington, D.C. 20002

The  foregoing  addresses may be changed by notice given in the manner set forth
in this Section 15.

         16.  Disputes.  The parties  shall attempt in good faith to resolve all
claims,  disputes and other disagreements  arising hereunder by negotiation.  In
the event that a dispute  between the parties  cannot be resolved  within thirty
(30) days of written  notice  from one party to the other  party,  such  dispute
shall,  at the request of either party,  after  providing  written notice to the
other party,  be submitted to  arbitration  in Columbia,  Maryland in accordance
with the  arbitration  rules of the  American  Arbitration  Association  then in
effect.  The notice of  arbitration  shall  specifically  describe  the  claims,
disputes or other matters in issue to be submitted to  arbitration.  The parties
shall jointly  select a single  arbitrator  who shall have the authority to hold
hearings and to render a decision in accordance  with the  arbitration  rules of

                                       19
<PAGE>

the American Arbitration Association.  If the parties are unable to agree within
ten (10)  days,  the  arbitrator  shall be  selected  by the Chief  Judge of the
Circuit Court for Howard County. The discovery rights and procedures provided by
the Federal Rules of Civil  Procedure  shall be available and enforceable in the
arbitration  proceeding.  The written  decision of the  arbitrator  so appointed
shall be  conclusive  and binding on the parties and  enforceable  by a court of
competent  jurisdiction.  The expenses of the arbitration shall be borne equally
by the  parties to the  arbitration,  and each party  shall pay for and bear the
cost of its own experts, evidence and legal counsel, unless the arbitrator rules
otherwise in the  arbitration.  Both parties  agree to use their best efforts to
cause a final  decision to be rendered  with respect to the matter  submitted to
arbitration within sixty (60) days after its submission.

         17. Miscellaneous.

         17.1 This Agreement  contains the entire  understanding  of the parties
hereto with  respect-to  the  employment of Executive by Company during the term
hereof,  and  the  provisions  hereof  may  not  be  altered,  amended,  waived,
terminated  or  discharged in any way  whatsoever  except by subsequent  written
agreement executed by the party charged therewith. This Agreement supersedes all
prior employment  agreements,  understandings and arrangements between Executive
and Company pertaining to the terms of the employment of Executive.  A waiver by
either of the parties of any of the terms or conditions of this Agreement, or of
any breach hereof,  shall not be deemed a waiver of such terms or conditions for
the future or of any other term or condition hereof, or of any subsequent breach
hereof.

                                       20
<PAGE>

         17.2  The  provisions  of  this  Agreement  are  severable,  and if any
provision of this Agreement is invalid, void, inoperative or unenforceable,  the
balance  of the  Agreement  shall  remain in  effect,  and if any  provision  is
inapplicable to any circumstance, it shall nevertheless remain applicable to all
other circumstances.

         17.3  Company  shall  have  the  right  to  deduct  and  withhold  from
Executive's  compensation  the  amounts  required to be  deducted  and  withheld
pursuant  to any  present or future law  concerning  the  withholding  of income
taxes.  In the event that  Company  makes any payments or incurs any charges for
Executive's  account or  Executive  incurs any personal  charges  with  Company,
Company shall have the right and Executive hereby  authorizes  Company to recoup
such  payments or charges by deducting  and  withholding  the  aggregate  amount
thereof from any compensation otherwise payable to Executive hereunder.

         17.4 This Agreement shall be construed and  interpreted  under the laws
of the State of Maryland  applicable  to contracts  executed and to be performed
entirely therein.

         17.5 The captions and section  headings in this  Agreement are not part
of the provisions hereof, are merely for the purpose of reference and shall have
no force or effect for any purpose whatsoever, including the construction of the
provisions of this Agreement.

         17.6 To the extent any provision of this Agreement  contemplates action
after  termination  hereof or creates a cause of action or claim on which action
may be brought by either party,  such provision,  cause of action or claim shall
survive termination of Executive's employment or termination of this Agreement.

                                       21
<PAGE>

                  17.7  Executive  may not assign his  rights nor  delegate  his
duties  under  this  Agreement;  provided,  however,  that  notwithstanding  the
foregoing  this  Agreement  shall  inure to the  benefit  of  Executive's  legal
representatives,  executors,  administrators or successors and to the successors
or assigns of Company.

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

                             CELSION CORPORATION

                             By:/s/Anthony P. Deasey
                                ------------------------------------------
                                   Anthony Deasey, Chief Financial Officer

                                 /s/William E. Gannon, Jr.
                                --------------------------
                                Dr. William E. Gannon, Jr.

                                       22May 8, 2002

PERSONAL AND CONFIDENTIAL

Mr. Anthony P. Deasey
Executive President Finance and Administration
  And Chief Financial Officer
Celsion Corporation
10220-I Old Columbia Road
Columbia, Maryland   21046

Dear Mr. Deasey:

         1.  Celsion   Corporation   (together   with  any  present  and  future
subsidiaries  and  affiliates  of Celsion  Corporation,  the  "Company")  hereby
retains  Legg  Mason  Wood  Walker,  Incorporated  ("Legg  Mason")  to  serve as
financial  advisor to the Company for the twelve month period  commencing on May
1, 2002.

         2. In such  capacity,  Legg Mason shall be  available  for advice,  and
shall advise the Company,  with respect to such financial matters as the Company
shall from time to time  request,  including  matters  relating to (a) strategic
partnering  opportunities  related to its Microfocus BPH 800 ("BPH 800") product
for the treatment of Benign Prostatic  Hyperplasia,  (b) the structure,  timing,
and financial  terms of any such strategic  partnering  transaction for BPH 800,
(c)  alternative  corporate  structures  that  may be  available  to  assist  in
maximizing  shareholder  value in connection with the research,  development and
commercialization  of BPH 800 and or therapies  or products  that the Company is
developing  or plans to  develop  from  time to time,  (d)  matters  potentially
impacting the Company related to any such transaction or series of transactions;
and (e) future funding of the business.

         3. In  connection  with our  engagement,  Legg Mason will  develop,  in
consultation with the Company, a list of entities that Legg Mason believes might
be potential  strategic partners of the Company in connection with BPH 800. Legg
Mason will initiate  discussions  with  potential  partners,  participate in the
negotiation  of possible  transactions  and advise the Company as to negotiating
strategy and other  matters in  connection  therewith.  The Company will furnish
Legg Mason with such  information  and  material  regarding  the  Company as the
Company  has or  reasonably  can  produce or obtain as Legg Mason may request in

                                       1
<PAGE>

connection with the performance of its  obligations  hereunder.  Legg Mason will
assist  the  Company  in  preparing  a  document  or  documents   (collectively,
"Documents") to describe the Company and its management,  products and financial
status for use in discussions with prospective partners.  The Company represents
and  warrants  that,  except as it may  specifically  indicate in  writing,  all
information  made  available  to Legg Mason by the Company or  contained  in the
Documents  will, at all times during the period of the  engagement of Legg Mason
hereunder, be complete and correct in all material respects and will not contain
any  untrue  statement  of a  material  fact or omit to  state a  material  fact
necessary in order to make the statements therein not misleading in light of the
circumstances  under  which  such  statements  are  made.  The  Company  further
represents and warrants that any projections provided to Legg Mason or contained
in the  Documents  will have been  prepared in good faith and will be based upon
assumptions which in light of the  circumstances  under which they are made, are
reasonable.  The Company acknowledges and agrees that, in rendering its services
hereunder,  Legg  Mason  will be using  and  relying,  without  any  independent
investigation  or  verification  thereof,  on  information  that  is or  will be
furnished to Legg Mason by or on behalf of the Company and on publicly available
information,  and Legg Mason  will not in any  respect  be  responsible  for the
accuracy or completeness of any of the foregoing kinds of information  (included
in the Documents or otherwise).  The Company also  acknowledges  and agrees that
Legg Mason will not  undertake  to make an  independent  appraisal of any of the
assets of the  Company or any of its  subsidiaries  or  affiliates.  The Company
understands  that, in rendering  services  hereunder,  Legg Mason will also rely
upon the advice of counsel to the Company  and other  advisors to the Company as
to  legal,  tax and  other  matters  relating  to any  transaction  or  proposed
transaction contemplated by this Agreement.

         4. For the purposes of this Agreement:

            (a)   A  "Transaction"  shall mean a Sale Event or a Financing (each
                  as defined herein) involving the Company. A "Sale Event" shall
                  mean any transaction or series or combination of transactions,
                  other  than in the  ordinary  course  of  trade  or  business,
                  whereby,  directly  or  indirectly,  control  of or a material
                  interest in the Company or its subsidiaries or affiliates,  or
                  any of their  respective  businesses (a  "Business") or any of
                  their respective assets (including,  without  limitation,  the
                  BPH 800), is transferred for consideration, including, without
                  limitation,  a sale or exchange of capital stock or assets,  a
                  lease of assets with or without a purchase option, a merger or
                  consolidation, a recapitalization, a tender or exchange offer,
                  a  leveraged  buy-out,  the  formation  of a joint  venture or
                  partnership,  or any similar  transaction;  provided  that any
                  transaction,  or portion of a transaction, in which securities
                  of the Company or any of its  subsidiaries  are issued or sold

                                       2
<PAGE>

                  by the  Company  shall  constitute  a  Financing  (as  defined
                  herein)  and not a Sale Event . A  "Financing"  shall mean any
                  transaction  in which  securities of the Company are issued or
                  sold by the Company.  For example,  in a transaction  in which
                  (i)  securities  of the Company are issued to an investor  and
                  (ii) the  investor  subsequently  purchases  the BPH 800,  the
                  portion  of  the   transaction   in  clause  (i)  above  shall
                  constitute a Financing and the portion of the  transaction  in
                  clause (ii) above shall  constitute a Sale Event.  In no event
                  will any one portion of a Transaction  constitute  both a Sale
                  Event and a Financing.

            (b)   Except as provided in subsection  3(c) below,  "consideration"
                  shall  mean the  full  transaction  value  of any  Sale  Event
                  including,  without  limitation,  the total value of all cash,
                  securities, other property and any contingent, earned or other
                  consideration paid or payable,  directly or indirectly,  by an
                  acquiring  party to a selling party or to a participant in the
                  transaction in connection with a Sale Event.  The value of any
                  such securities  (whether debt or equity) or other property or
                  items of value shall be determined  as follows:  (i) the value
                  of  securities  that are  freely  tradable  in an  established
                  public  market shall be the average of the high and low market
                  prices of such  securities on the ten (10) trading days ending
                  on the  trading  day  prior to the  public  announcement  Sale
                  Event;  (ii) the  value of  securities  which  are not  freely
                  tradable or which have no established public market, or if the
                  consideration   utilized   consists  of  property  other  than
                  securities,  the value of such  securities  or other  property
                  shall be the fair  market  value  thereof and (iii) the sum of
                  all lease  payments.  "Consideration"  shall also  include the
                  face value of any indebtedness  (except to trade creditors) to
                  which the Sale Event is subject or to which the Company or its
                  subsidiaries  or  affiliates  (or portion  thereof) to be sold
                  remains   obligated,   or  indebtedness  that  is  assumed  in
                  connection  therewith,  and the  value of any  payments  to be
                  received by the  principals  of the Company for entering  into
                  non-compete   or  similar   agreements.   In  the  case  of  a
                  recapitalization,  "consideration" shall include the aggregate
                  amount  of  indebtedness  incurred  or  equity  raised  by the
                  Company  or  a  successor  thereof  in  connection  with  such
                  recapitalization.  If any consideration to be paid is computed
                  in a  foreign  currency,  the value of such  foreign  currency
                  shall, for purposes hereof,  be converted into U.S. Dollars at
                  the prevailing  official exchange rate on the date or dates on
                  which such consideration is paid.

                                       3
<PAGE>

         5. Legg Mason  shall  develop,  update and review with the Company on a
regular basis a list (the "List") of parties which  reasonably might be expected
to be interested  in a  Transaction.  In addition,  the Company shall furnish to
Legg Mason the names of all  parties  with  which the  Company  has had  contact
regarding a  Transaction  during the term hereof,  and shall refer to Legg Mason
all  parties  who  contact  the  Company  or  its  subsidiaries,  affiliates  or
representatives  during  the  term  hereof  regarding  a  Transaction;  all such
additional  parties shall be included on the List. Legg Mason shall contact only
such parties on the List as the Company approves in advance of such contact.

         6. As compensation  for the services  rendered by Legg Mason hereunder,
the Company shall pay or cause Legg Mason to be paid as follows:

            (a)   An initial fee of $75,000,  payable upon the execution of this
                  Agreement. The initial fee shall be earned when paid and shall
                  be  nonrefundable,  provided  that such fee shall be  credited
                  against any fees that may be payable  pursuant  to  subsection
                  6(b) below.

            (b)   If a Transaction occurs, or the parties to a Transaction reach
                  a  preliminary  or  definitive  agreement  in  respect of such
                  Transaction, either:

                  (i)      during the term of Legg Mason's engagement hereunder,
                           regardless  of  whether  the party or  parties to the
                           Transaction  were identified by Legg Mason or whether
                           Legg   Mason   rendered    advice    concerning   the
                           Transaction, or

                  (ii)     at any time  during a period of 24  months  following
                           the  effective  date of  termination  of Legg Mason's
                           engagement hereunder,  and the Transaction involves a
                           party  included (or which should have been  disclosed
                           to Legg Mason pursuant to Section 5) on the List,

                           then,  upon  consummation  of  the  Transaction,  the
                           Company   shall   pay  to  Legg   Mason  (X)  if  the
                           Transaction is a Sale Event the following percentages
                           of the consideration involved in such Sale Event:

                           Consideration                           Percentage
                           -----------------------------------------------------
                           On the first $50 million .......................2.50%
                           Plus on the amount between $50 million
                             and $100 million .............................2.00%
                           Plus on the amount between $100 million
                             and $200 million .............................1.50%

                                       4
<PAGE>

                           Plus on all amounts above $200 million .........1.00%
                           or (Y) if the Transaction is a Financing, a fee equal
                           to  6.00%  of  the  aggregate  gross  amount  of  the
                           Financing.

                  Provided that if the counter  party to a Transaction  with the
                  Company  is  Boston  Scientific  Corporation  or  any  of  its
                  subsidiaries  or  affiliates,  the  Company  shall pay to Legg
                  Mason the following percentages of the consideration involved,
                  based on the amount of time  elapsed  between  the date hereof
                  and the  execution of a definitive  agreement  containing  the
                  material terms of a Transaction.
<TABLE>
<CAPTION>

                  In the event of a Sale:

                    Consideration                           0-45 days      46 - 90 days      91+ days
                    ---------------------------------------------------------------------------------
<S>                                                        <C>             <C>              <C>
                    On the first 50 million                      2.0%             2.25%          2.5%

                    Plus on the amount between
                    $50 million and $100 million                1.60%             1.80%         2.00%

                    Plus on the amount between
                    $100 million and $200 million               1.20%             1.35%         1.50%

                    Plus on all amounts above
                    $200 million                                 .80%              .70%         1.00%

                  In the event of a Financing:
                                                            0-45 days      46 - 90 days      91+ days
                                                            -----------------------------------------
                    Consideration                                4.8%              5.4%          6.0%
</TABLE>

                  (c)      Compensation  which is payable to Legg Mason pursuant
                           to  subsection  6(b) shall be paid by the  Company to
                           Legg Mason at the closing of a Transaction,  provided
                           that  compensation  with  respect  to  a  Sale  Event
                           attributable to that part of  consideration  which is
                           contingent  upon the  occurrence of some future event
                           (e.g.,  the  realization  of  earnings   projections)
                           ("Contingent Consideration") or otherwise is deferred
                           ("Deferred  Consideration")  shall  be  paid  by  the
                           Company  to Legg Mason at the time of receipt of such
                           consideration.

                  (d)      In  the  event  that  Contingent   Consideration   or
                           Deferred  Consideration  described in subsection 6(c)
                           above is  payable  by an  individual,  group or legal
                           entity other than the  Company,  or by a successor to
                           the Company,  after the closing of a Sale Event,  the

                                       5
<PAGE>

                           Company shall cause such individual, group, entity or
                           successor to pay  compensation  payable to Legg Mason
                           hereunder,  or,  at the  closing,  to  enter  into an
                           agreement  to pay  such  compensation  to Legg  Mason
                           according to the terms hereof.

                  (e)      In  the  event  a  Financing  has  occurred  and  the
                           investor or investors in the  Financing has or have a
                           right  (whether  through  an  option,  right of first
                           refusal or  otherwise)  that it  acquired  during the
                           term of this  Agreement  or within  24  months  after
                           termination thereof to acquire subsequently assets of
                           the Company (including,  without limitation,  the BPH
                           800),  a material  interest in the Company or control
                           of the Company, then the exercise of such right shall
                           constitute a Sale Event hereunder,  regardless of the
                           amount of time that  passes  prior to such  exercise,
                           and  the  Company  will  pay  to  Legg  Mason,   upon
                           consummation of the transaction, the fee specified in
                           clause (X) of  subsection  6(b) above with respect to
                           such Sale  Event.  Any fee that has  previously  been
                           paid under  subsection  6(b) above  shall be credited
                           against any fee due under this subsection 6(e).

                  (f)      The Company hereby grants Legg Mason a right of first
                           refusal to  represent  the  Company as its  exclusive
                           financial  advisor,  on the same terms and conditions
                           as are  contained in this  Agreement,  in the event a
                           Financing has been consummated during the term hereof
                           and within two years of the closing of the  Financing
                           the Company  seeks to effect a Sale Event (other than
                           a Sale covered by  subsection  6(e)  above).  Nothing
                           herein  constitutes an obligation of Legg Mason to so
                           represent the Company; provided, however, that in the
                           event that Legg Mason does not  exercise its right of
                           first refusal within five (5) business days following
                           notice from the Company  that it is  contemplating  a
                           Sale Event,  such right of first refusal shall expire
                           and be null  and  void  and of no  further  force  or
                           effect.

         7. In  addition  to the  fees  described  in  Section  6 above  and the
obligation of the Company to pay certain  expenses set forth in Section 8 below,
and whether or not any Transaction is  consummated,  the Company will pay all of
Legg  Mason's  reasonable   out-of-pocket   expenses   (including  document  and
presentation  material  expenses  and the  fees  and  expenses  of its  counsel)
incurred in  negotiating  the terms of and in carrying out its duties under this
engagement.   Upon   request,   Legg  Mason  will  submit   reasonable   back-up
documentation  for all such  expenses.  Such  out-of-pocket  expenses  shall not
exceed  $25,000  without the Company's  prior approval and shall be payable upon
request by Legg Mason.

                                       6
<PAGE>

         8.  In  connection  with  engagements  of the  nature  covered  by this
Agreement,   it  is  Legg  Mason's  practice  to  provide  for  indemnification,
contribution,  and  limitation  of  liability.  By signing this  Agreement,  the
Company agrees to the  provisions  attached to this  Agreement  (Attachment  A),
which provisions are expressly incorporated by reference herein.

         9.  The  Company  represents  and  warrants  to Legg  Mason  that  this
Agreement has been duly authorized and represents the legal, valid,  binding and
enforceable  obligation  of the Company and that neither this  Agreement nor the
consummation of the  transactions  contemplated  hereby requires the approval or
consent  of  any  governmental  or  regulatory   agency  or  violates  any  law,
regulation, contract or order binding on the Company.

         10.  Except as  contemplated  by the terms  hereof  or as  required  by
applicable  law,  Legg Mason shall keep  confidential  all  material  non-public
information  provided  to it by or on  behalf  of the  Company,  and  shall  not
disclose such information to any third party,  other than such of its employees,
affiliates,  agents and advisors as Legg Mason  reasonably  determines to have a
need to know in  order  to  permit  Legg  Mason  to  discharge  its  obligations
hereunder.  The Documents and any other  confidential  information or data about
the Company will be made  available to a potential  Transaction  party only upon
its  execution  of a  confidentiality  agreement  prepared  by  Legg  Mason  and
acceptable to the Company. Legg Mason will destroy all confidential  information
in its possession,  including any and all documents  prepared on the basis of or
containing or reflecting  any  confidential  information  in the event that this
engagement is terminated  prior to consummation  of a Transaction  and, upon the
Company's request,  shall certify in writing to the Company that it has done so.
Notwithstanding  any such destruction or termination,  Legg Mason shall continue
to keep confidential any confidential information or data about the Company that
it learns during the course of its engagement hereunder.

         11. Legg Mason is being  retained to serve as financial  advisor solely
to the Company,  and it is agreed that the  engagement of Legg Mason is not, and
shall not be deemed to be, on behalf of, and is not intended to confer rights or
benefits upon, any shareholder or creditor of the Company or its subsidiaries or
upon any other person or entity.  No one other than the Company is authorized to
rely upon this engagement of Legg Mason or any statements,  conduct or advice of
Legg Mason, and no one other than the Company is intended to be a beneficiary of
this engagement.  All opinions,  advice or other assistance  (whether written or
oral) given by Legg Mason in connection with this engagement are intended solely
for the  benefit  and use of the  Company  and will be treated by the Company as
confidential,  and no opinion, advice or other assistance of Legg Mason shall be
used for any other purpose or reproduced, disseminated, quoted or referred to at
any time,  in any  manner  or for any  purpose,  nor  shall any  public or other
references to Legg Mason (or to such  opinions,  advice or other  assistance) be
made without the express prior written consent of Legg Mason.

                                       7
<PAGE>

         12. The Company agrees that, following the closing or consummation of a
Transaction,  Legg Mason has the right to place  advertisements in financial and
other newspapers and journals at its own expense, describing its services to the
Company  hereunder,  provided  that Legg  Mason  will  submit a copy of any such
advertisements  to the Company for its prior approval,  which approval shall not
unreasonably be withheld.

         13. The term of this  engagement  will  continue  until the earliest of
April 30, 2003, the closing or consummation of a Transaction or until terminated
in the manner  provided for in this  Section.  Either party may  terminate  Legg
Mason's  engagement  hereunder at any time by giving the other party at least 30
days' prior written notice.  Within 30 days after the effective date of any such
termination,  Legg  Mason  will  deliver  to the  Company a copy of the List (as
described in Section 5 above) as then constituted. The provisions of Sections 2,
6, 7, 8, 10 and 12 hereof shall survive any  expiration or  termination  of this
Agreement.

         14. The  Company  represents  and  warrants  that there are no brokers,
representatives  or other persons which have an interest in any compensation due
to Legg Mason from any transaction contemplated herein.

         15.  The terms and  provisions  of this  Agreement  are  solely for the
benefit of the  Company  and Legg Mason and the other  Indemnified  Persons  and
their respective successors, assigns, heirs and personal representatives, and no
other  person  or  entity  shall  acquire  or have any  right by  virtue of this
Agreement.  This  Agreement  represents  the entire  understanding  between  the
Company and Legg Mason with respect to Legg Mason's  engagement  hereunder,  and
all prior  discussions  are merged herein.  This Agreement shall be governed by,
and  construed in  accordance  with,  the laws of the State of Maryland  without
regard to such state's  principles  of  conflicts  of laws,  and may be amended,
modified  or  supplemented  only by written  instrument  executed by each of the
parties hereto.

         16. The parties hereby submit to the  jurisdiction  of and venue in the
federal courts located in the City of Baltimore, Maryland in connection with any
dispute related to this Agreement,  any transaction  contemplated hereby, or any
other matter contemplated hereby.

                                       8
<PAGE>

If the foregoing  correctly  sets forth the entire  understanding  and agreement
between Legg Mason and the Company, please so indicate in the space provided for
that  purpose  below and return an executed  copy to us,  whereupon  this letter
shall constitute a binding agreement as of the date first above written.

                                    Very truly yours,

                                    LEGG MASON WOOD WALKER, INCORPORATED

                                    By:__________________________________
                                            Scott R. Cousino
                                            Managing Director

AGREED:

CELSION CORPORATION

By:______________________________________________
         Anthony P. Deasey
         Executive Vice President Finance and Administration
           And Chief Financial Officer

                                       9
<PAGE>

                                  ATTACHMENT A

                      LEGG MASON WOOD WALKER, INCORPORATED
                        INDEMNIFICATION, CONTRIBUTION AND
                       LIMITATION OF LIABILITY PROVISIONS

(a)      The Company  agrees to indemnify  and hold  harmless Legg Mason and its
         affiliates  and their  respective  officers,  directors,  employees and
         agents, and any persons controlling Legg Mason or any of its affiliates
         within  the  meaning of  Section  15 of the  Securities  Act of 1933 or
         Section 20 of the Securities  Exchange Act of 1934 (Legg Mason and each
         such other person or entity being referred to herein as an "Indemnified
         Person"), from and against all claims,  liabilities,  losses or damages
         (or  actions  in  respect  thereof)  or other  expenses  (collectively,
         "Damages")  which (A) are related to or arise out of (i) actions  taken
         or omitted to be taken  (including  any untrue  statements  made or any
         statements omitted to be made) by the Company or its affiliates or (ii)
         actions taken or omitted to be taken by an Indemnified  Person with the
         consent or in  conformity  with the actions or omissions of the Company
         or its affiliates or (B) are otherwise  related to or arise out of Legg
         Mason's  activities  on behalf of the Company.  The Company will not be
         responsible, however, Damages pursuant to clauses (A)(ii) or (B) of the
         preceding  sentence  which are finally  judicially  determined  to have
         resulted  primarily from such Indemnified  Person's gross negligence or
         willful misconduct.  In addition,  the Company agrees to reimburse each
         Indemnified Person for all out-of-pocket  expenses  (including fees and
         expenses  of  counsel)  actually  and  reasonably  incurred  as the are
         incurred by such Indemnified  Person in connection with  investigating,
         preparing, conducting or defending any such action or claim, whether or
         not in connection with enforcing the rights of such Indemnified  Person
         under this Agreement, unless such Indemnified Person is not entitled to
         indemnification pursuant to the preceding sentence.

(b)      If  for  any  reason  the  foregoing  indemnity  is  unavailable  to an
         Indemnified  Person  or  insufficient  to  hold an  Indemnified  Person
         harmless,  then the  Company  shall  contribute  to the amount  paid or
         payable  by  such  Indemnified  Person  as  a  result  of  such  claim,
         liability, loss, damage or expense in such proportion as is appropriate
         to reflect not only the  relative  benefits  received by the Company on
         the one hand and Legg Mason on the other,  but also the relative  fault
         of the  Company  and  Legg  Mason,  as well as any  relevant  equitable
         considerations,  subject  to  the  limitation  that  in any  event  the
         aggregate  contribution  of all  Indemnified  Persons  to  all  losses,
         claims,  liabilities,  damages and expenses shall not exceed the amount
         of fees actually  received by Legg Mason and its  affiliates  and their
         respective officers,  directors,  employees and agents, and any persons
         controlling  Legg  Mason  or any of its  affiliates  pursuant  to  this
         Agreement.  It is hereby further  agreed that the relative  benefits to
         the Company on the one hand and Legg Mason on the other with respect to
         any transaction or proposed transaction  contemplated by this Agreement

                                       10
<PAGE>

         shall be deemed to be in the same proportion as (i) the total value the
         transaction or proposed transaction bears to (ii) the fees paid to Legg
         Mason with respect to such transaction.

(c)      No  Indemnified  Person shall have any  liability to the Company or any
         other person in connection with the services  rendered pursuant to this
         Agreement,  except for any  liability  for losses,  claims,  damages or
         liabilities  finally  judicially  determined to have resulted primarily
         from such Indemnified  Person's bad faith,  gross negligence or willful
         misconduct.

(d)      If indemnification is to be sought hereunder by any Indemnified Person,
         then  such   Indemnified   Person  shall  notify  the  Company  of  the
         commencement of any action or proceeding in respect thereof;  provided,
         however,  that the failure so to notify the  Company  shall not relieve
         the  Company  from any  liability  that it may  otherwise  have to such
         Indemnified Person except to the extent that such liability arises from
         such failure to notify.  Following such  notification,  the Company may
         elect in writing to assume the  defense of such  action or  proceeding,
         and,  upon such  election,  it shall not be liable for any legal  costs
         subsequently incurred by such Indemnified Person (other than reasonable
         costs of investigation) in connection therewith, unless (i) the Company
         has failed to provide  counsel of  recognized  standing and  reasonably
         satisfactory  to such  Indemnified  Person  in a timely  manner or (ii)
         representation  of such  Indemnified  Person by counsel provided by the
         Company could present such counsel with a conflict of interest.

(e)      The Company  agrees that it will not settle or compromise or consent to
         the entry of any judgment in any pending or threatened  claim,  action,
         suit or  proceeding in respect of which  indemnification  may be sought
         from the Company by any  Indemnified  Person  (whether any  Indemnified
         Person is an actual or potential party to such claim,  action,  suit or
         proceeding)  unless such settlement,  compromise or consent includes an
         unconditional  release of such  Indemnified  Person  hereunder from all
         liability arising out of such claim, action, suit or proceeding.

(f)      To the extent  officers or employees of Legg Mason appear as witnesses,
         are deposed,  or  otherwise  are involved in or assist with any action,
         hearing or proceeding  related to or arising from a Transaction or Legg
         Mason's  engagement  hereunder,  the Company  will pay Legg  Mason,  in
         addition to the fees set forth above,  Legg Mason's  customary per diem
         charges,  In addition,  if any Indemnified Person appears as a witness,
         is deposed or  otherwise  is  involved  in any  action  relating  to or
         arising from a Transaction or Legg Mason's  engagement  hereunder,  the
         Company  will  reimburse  such  Indemnified  Person  for  all  expenses
         (including  fees and  expenses  of  counsel)  actually  and  reasonably
         incurred by it by reason of it or any of its personnel  being  involved
         in any such action unless the action,  hearing or proceeding relates to
         or arises from Legg Mason's gross negligence or willful misconduct.

(g)      The  Company  waives  any right to a trial by jury with  respect to any
         claim or action  arising out of this  Agreement  or the actions of Legg
         Mason,  and consents to personal  jurisdiction,  service of process and

                                       11
<PAGE>

         venue in any court in which any claim covered by the provisions of this
         Attachment A may be brought against an Indemnified Person.

(h)      The  provisions  of this  Attachment  A  shall  be in  addition  to any
         liability the Company may have to any Indemnified  Person at common law
         or  otherwise,  and shall  survive the  expiration  of the term of this
         Agreement and the closing of any sale of the Company.

                                       12

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