Document:

EXHIBIT 10.51

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.

                                   COMMERCIAL

                        CONTRACT MANUFACTURING AGREEMENT

                                     BETWEEN

                        OSG NORWICH PHARMACEUTICALS, INC.

                                       AND

                               CELGENE CORPORATION

                                 APRIL 26, 2004

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

<PAGE>

         THIS COMMERCIAL CONTRACT  MANUFACTURING  AGREEMENT (the "Agreement") is
made this 26th day of April, 2004 (the "Agreement Date"), by and between Celgene
Corporation  ("Celgene"),  a  Delaware  corporation  with a  principal  place of
business at 7 Powder  Horn  Drive,  Warren,  New Jersey  07059,  and OSG NORWICH
PHARMACEUTICALS,  INC ("NPI"), a Delaware  corporation with a principal place of
business at 6826 State Highway 12, Norwich, NY 13815 USA.

                                    RECITALS

         A.       Celgene is engaged in the  business  of,  among other  things,
developing and gaining regulatory approval for certain pharmaceutical products.

         B.       NPI is in the business of contract manufacturing and packaging
pharmaceutical products, and providing related services.

         C.       Celgene has agreed to purchase from NPI, and NPI has agreed to
provide  to  Celgene,  certain  manufacturing  and  quality  assurance  services
relating to certain of Celgene's products, on the terms and conditions set forth
herein.

         NOW,  THEREFORE,  in consideration  of the mutual  covenants  contained
herein, Celgene and NPI (the "Parties") agree as follows:

                            ARTICLE 1 - DEFINITIONS

The  following  terms used in this  Agreement  shall have the meanings set forth
below.  Other terms of less general  applicability are defined where appropriate
and are listed in the List of Defined Terms in the Appendix.

         1.1      "Confidential  Information"  means  any  and  all  trademarks,
trademark applications,  trade names, copyrights,  patents, patent applications,
technical information,  know-how, formulae,  processes,  clinical studies, trade
secrets,   confidential  and/or  proprietary  information  and  other  know-how,
information,    documents   and/or    materials,    technology,    formulations,
specifications,  testing data and analytical methods and other information which
would be  considered a trade secret  under the Uniform  Trade  Secrets Act as in
force and effect in the State of New York.

         1.2      "Manufacture",  or any variation thereof, means all operations
necessary  to produce  the  Products to the  specified  state of  completion  in
accordance with the terms and conditions of this Agreement. Without limiting the
foregoing,  the term "Manufacture"  shall include (i) all receipt and storage of
Materials  incident to such operations,  and (ii) the performance of all quality
control  procedures  pertaining to the Products which are required by applicable
regulations  on the  Agreement  Date,  and/or  which  become  required  by  such
regulations after the Agreement Date.

         1.3      "Product" or "Products"  means those  products of Celgene more
fully  described  on Schedule 1.3 in the  presentation  forms listed in Schedule
1.3.

                                       1

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

<PAGE>

         1.4      "Materials"  means raw  materials  (chemicals)  and  packaging
materials used to Manufacture and package Products.

         1.5      "Specifications"   mean   the   written   methods,   formulae,
procedures,   specifications,   tests  (and  testing  protocols)  and  standards
pertaining to each  presentation form of the Products set forth in Schedule 1.5,
as modified from time to time.

         1.6      "Laws, Rules and Regulations" means current Good Manufacturing
Practices as  promulgated by the U.S. 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 / agency.

         1.7      "Latent  Defect"  means a deviation to Product  Specifications
that was discovered after the Product was shipped to the Celgene.

         1.8      "Supply Term" means the period  starting on the Agreement Date
and  continuing  for  the  initial  term of this  Agreement  and any  subsequent
extension  period as set forth in Section  7.1  hereof,  subject to any  earlier
termination of this Agreement pursuant to Section 7.2 hereof.

                         ARTICLE 2 - SUPPLY OF PRODUCT

         2.1      OBLIGATIONS OF THE PARTIES.

                  (a)      RELATIONSHIP OF THE PARTIES.  No  partnership,  joint
venture,  or agency  relationship is created between the Parties with respect to
this Agreement.

                  (b)      MANUFACTURE  OF  PRODUCTS.  Subject  to the terms and
conditions  hereof,  NPI  shall  Manufacture  Products  in  accordance  with all
applicable Laws, Rules and Regulations,  and the Specifications  provided to NPI
by Celgene.

                  (c)      PRODUCT  RECALLS.  Celgene shall be  responsible  for
conducting  product  recalls and shall promptly  notify NPI of any recall notice
for  supplied  Products.  NPI  shall  use  commercially  reasonable  efforts  to
cooperate  with  and  assist  Celgene  in the  performance  of such  duties  and
obligations.  NPI shall  promptly  notify  Celgene if it  receives  any  notice,
including a recall  notice,  which is related to any Product.  NPI shall pay for
all out-of-pocket cost and expenses excluding consequential damages arising from
any recall resulting from NPI's breach of this Agreement.

                  (d)      ADVERSE DRUG  EXPERIENCE  REPORTS.  Celgene  shall be
responsible  for filing,  with the  responsible  regulatory  body in any country
where Celgene markets  products,  any and all adverse drug reaction reports that
it receives.

                  (e)      PRODUCT   COMPLAINTS.    Celgene   shall   have   the
responsibility  for  fielding,  investigating,  and  responding  to all  Product
complaints.  NPI shall provide reasonable  cooperation in promptly investigating
and  reporting  to  Celgene  the  results  of  investigations  for  all  Product
complaints that may involve the Products not meeting the Specifications.

                                       2

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

<PAGE>

         2.2      TECHNOLOGY RIGHTS. Subject to the terms and conditions hereof,
NPI  shall  have the  right to use  Celgene's  Confidential  Information,  which
relates in any way to the  Products,  solely to  Manufacture  the  Products  for
Celgene or Celgene's  successors or assigns.  The Parties  acknowledge and agree
that Celgene is the owner of its  Confidential  Information  and that NPI has no
ownership rights thereto, and no right to use Celgene's Confidential Information
except as provided in this Agreement.

         2.3      PURCHASE,  RECEIPT AND  STORAGE OF  MATERIALS.  Celgene  shall
supply the active pharmaceutical  ingredient ("API") for the Products to NPI, at
no cost to NPI. NPI shall,  at its own cost, be responsible to receive and store
such API,  and  purchase,  receive and store all other  Materials to support the
Manufacture of Products.

         2.4      SHIPMENT OF FINISHED  GOODS.  All finished,  labeled  Products
delivered  hereunder  to Celgene  shall have proper  dating on the  labels.  All
Products  delivered to Celgene  hereunder shall be shipped Free Carrier (FCA per
INCOTERMS 2000) NPI plant by a common carrier ("Carrier")  approved and paid for
by Celgene.  NPI shall ship such  quantities to the  destinations(s)  and at the
time(s)  specified in the  Purchase  Order (as defined in Section 3.1 hereof) by
Celgene or its  designee.  Celgene will  designate  an approved  Carrier or will
provide a schedule  of  approved  Carriers of which NPI will choose one from the
list.

         2.5      LABELING AND PACKAGING OF SUPPLIED PRODUCTS. Celgene shall, at
its own cost and expense,  supply NPI with the mechanical  design of artwork for
all Products  labeling  ("Printed  Matter") to be used by NPI in connection with
packaging  the Products.  Each set of such artwork,  and each partial set and/or
alteration  or amendment  thereto,  for each piece of Printed  Matter,  shall be
identified by a unique item control number or code (the "Code")  supplied by the
Celgene, or Celgene's designated vendor, which is consistent with NPI's existing
control  practices.  All  physical  specifications  of all Printed  Matter shall
comply with NPI's control numbering system,  quality control  requirements,  and
reasonable  manufacturing  process constraints as provided by NPI. Celgene shall
specify the Code for each item of Printed  Matter to be supplied with each order
for Products  hereunder.  All  Products  delivered  to Celgene  hereunder  shall
include the Printed Matter as specified in the Purchase Order for such shipment.

         2.6      INSPECTIONS.  Upon  reasonable  prior written  notice,  during
NPI's regular  business hours, and subject to NPI's normal  confidentiality  and
safety regulations governing visitors,  Celgene's representatives shall have the
right to enter and inspect the facility at which the  Products are  Manufactured
and to receive upon request samples of the Products being Manufactured.

                        ARTICLE 3 - PURCHASE OF PRODUCT

         3.1      PURCHASE  OBLIGATION.  Celgene shall purchase and receive from
NPI, and NPI shall sell and deliver to Celgene or its designated  agent Products
to be ordered  pursuant  to the terms  hereof in the  quantities  and timing set
forth in each purchase  order issued by Celgene (each a "Purchase  Order").  The
cost of shipping all such Products shall be borne by Celgene.  Title and risk to
Products  shipped by NPI in  accordance  with the terms and  conditions  of this
Agreement shall pass to Celgene upon acceptance by the Carrier.

                                       3

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

<PAGE>

         3.2      PRODUCTION SCHEDULING.  At least thirty (30) days prior to the
start of each calendar quarter during the Supply Term, Celgene or its designated
agent shall, by written notice  hereunder,  deliver to NPI: (i) a Purchase Order
setting forth the Products to be purchased  during the next succeeding  calendar
quarter (the "Next Quarter") and the quantity in amounts at or above the minimum
order  quantities  set forth in  Schedule  3.2 hereto and the  desired  delivery
date(s)  (which  date(s)  shall be no more than once per month  during  the Next
Quarter)  for each  quantity  so  ordered;  and  (ii) a  written  forecast  (the
"Forecast") of Celgene's expected  requirements of Products and the presentation
forms thereof for the next three (3) calendar  quarters  after the Next Quarter,
together  with the expected  quantity and delivery  date(s) for each quantity so
forecast  to be ordered  during such  quarters.  NPI shall  provide  capacity to
accommodate  Product  volume  increases  in  the  Next  Quarter  and  subsequent
quarterly  forecasts of at least 25%.  Celgene may not reject as  non-conforming
orders  filled  within 10% of the requested  order  quantity,  provided that the
Products are otherwise satisfactory.

                  (a)      RELEASE FOR SHIPMENT.  NPI shall release for shipment
quantities  of Product  consistent  with each  Purchase  Order.  If there is any
discrepancy  between  the  terms  of a  Purchase  Order  and the  terms  of this
Agreement, the terms of this Agreement shall control.

                  (b)      LIMITATIONS.  In no event shall NPI be  obligated  to
deliver to Celgene in the Next Quarter more than *** percent (***%) of the total
quantity set forth in the last forecast  issued by Celgene for the Next Quarter.
If the Purchase Order in the Next Quarter is more than *** percent (***%) of the
total quantity set forth in such Next Quarter forecast, NPI shall use reasonable
efforts to determine  feasibility  of meeting the  Purchase  Order  request.  If
feasible,  NPI shall produce and invoice  Celgene for any premium costs required
to deliver the product  that  exceeds  *** percent  (***%) of such Next  Quarter
forecast.  If the  Purchase  Order in the Next  Quarter is less than *** percent
(***%) of the  immediately  preceding Next Quarter  forecast,  NPI shall invoice
Celgene a carrying fee for raw materials  held in inventory  that are reasonably
allocable to such  shortfall,  in an amount equal to *** percent (***%) of NPI's
cost of such excess raw materials.

         3.3      TESTING  AND  CERTIFICATE  OF  ANALYSIS.  NPI shall  provide a
certificate of analysis ("Certificate of Analysis") to Celgene or its designated
agent with each shipment of supplied Product made hereunder. Such Certificate of
Analysis  shall  certify with respect to each  shipment and lot  (identified  by
batch/lot or control number): (i) the quantity of the shipment and (ii) that the
Product delivered was manufactured in accordance with the Specifications and the
Master Batch Records and documented according to requirements of Laws, Rules and
Regulations and applicable production standard operating procedures.

         3.4      TESTING  UPON  DELIVERY.  Promptly  following  receipt  of the
Products in any  shipment,  Celgene may check the  compliance of such batch with
the  Specifications.  Such  compliance  check shall be  performed  by  Celgene's
quality assurance and control  departments and shall be certified by the head of
such  department  (or  his/her  designee).  If Celgene  deems that any  Products
delivered  to Celgene  hereunder  fail to conform  to the  Specifications,  then
Celgene  shall  notify  NPI  thereof  in writing  (such  notice to include  test
results)  within *** days from delivery of such  Products to Celgene,  or in the
case of Products  having  Latent  Defects,  which upon diligent  examination  in
accordance  with  the  quality  control  testing  procedures  and

                                       4

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

<PAGE>

set out in the  Specifications  upon  receipt  could not have  been  discovered,
within *** days after Celgene's  discovery of such Latent Defect.  Celgene shall
retain the non-conforming  Products and NPI shall have the right to inspect such
Products.

                  (a)      UNDISPUTED  CLAIMS.  NPI  shall,  if it  agrees  with
Celgene's  non-conformance  assessment,  replace any such Products with an equal
quantity of Products complying with the Specifications at no cost to Celgene and
without undue delay subject to the  provisions of Section 8.3 of this  Agreement
(force  majeure).  Celgene  shall  dispose  of any  Products  which  are  not in
compliance  with the  Specifications  at NPI's cost, and in compliance  with all
applicable laws, except that, upon request,  Celgene shall follow any reasonable
instructions from NPI to return such Products to NP1 at NPI's cost.

                  (b)      DISPUTED CLAIMS. If NPI does not agree with Celgene's
non-conformance  assessment,  then NPI shall notify Celgene of such disagreement
within  *** days of  receipt  of notice of  deficiency.  If the  Parties  cannot
themselves  resolve  such  disagreement  within ***  business  days of Celgene's
receipt of NPI's  notice of  disagreement,  then the matter  shall be  submitted
(without  undue  delay) to an  independent  qualified  laboratory  agreed by the
Parties to determine whether the Products in question conform to Specifications.
The  assessment  of such  laboratory  shall be binding  upon the Parties and any
related  expense shall be borne by the Party whose analysis was in error. In the
event that NPI is the Party in error, NPI shall replace the applicable  Products
in  accordance  with Section  3.4(a)  above as if it had not disputed  Celgene's
non-conformance assessment.

         3.5      VIOLATIONS. Each Party shall notify the other of any violation
of any Laws, Rules and Regulations applicable to the Products alleged by a third
party promptly following receipt of notice of such allegation.

                     ARTICLE 4 - PRICING AND PAYMENT TERMS

         4.1      PRICING.  The price (the  "Price") for  Products  Manufactured
hereunder is shown in Schedule 4.1.

                  (a)      MATERIAL PRICES. Starting the January after the first
full calendar year of commercial  production of Product,  NPI may notify Celgene
of any changes in  Material  pricing.  Changes to  Material  pricing may include
supplier price increases or decreases,  and may include adjustments to yield and
scrap  losses  associated  with  the  overall  capability  of the  manufacturing
process.  NPI shall provide Celgene with at least *** days' prior written notice
of any changes in Material  pricing,  and NPI shall reasonably  substantiate any
increase in Material  pricing in such written  notice.  NPI shall have the right
adjust Material pricing no more than once in any twelve (12) month period.

                  (b)      NON-MATERIAL  COSTS.  Components of NPI's cost of the
Products and the Manufacture thereof, other than the cost of Materials, shall be
hereinafter referred to as "Non-Material  Costs." Non-Material Costs included in
the Price set forth in Schedule 4.1 attached  hereto  shall be  considered  firm
during the first *** months of commercial production of Product.  After such ***
month period and for each  subsequent  *** month period  during the

                                       5

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

<PAGE>

Supply  Term,  NPI  shall  have the  right  to  adjust  Non-Material  Costs by a
percentage  equal  to the  percentage  increase  in  the  Producer  Price  Index
published by the Bureau of Labor  Statistics,  U.S.  Department of Labor for the
preceding  *** month  period.  Any  adjustment  to  Non-Material  Costs shall be
effective for all orders  received by NPI after written  notice of such increase
by NPI to Celgene, such notice showing the calculation of such increase.

         4.2      PAYMENT  TERMS.   The  Price  for  all  Product   Manufactured
hereunder  shall  be due and  owing  to NPI  net  ***  days  from  shipment  and
notification to Celgene  thereof,  unless such Product is held for more than ***
days,  then  payment  shall be due net *** days  from  Celgene's  receipt  of an
invoice upon release of such Product. NPI may withhold subsequent  deliveries of
Product or take other  action it deems  appropriate  should  Celgene fail to pay
within the stated terms.

         4.3      CAPITAL.  Capital investment to be paid by Celgene is shown in
Schedule  4.3. NPI shall  invoice  Celgene at time of purchase and payment terms
shall be net *** days from the date of Celgene's receipt of an invoice therefor.

         4.4      PRE-PRODUCTION. Validation and other start-up costs to be paid
by  Celgene  are shown in  Schedule  4.4.  NPI shall  invoice  Celgene  for such
services  rendered monthly and payment terms shall be net *** days from the date
of Celgene's receipt of an invoice therefor.

         4.5      PRODUCT  SCRAP.  In the event  that NPI incurs  Product  scrap
costs  which  are (i)  caused  by  process  capability  issues  inherent  in the
production  formulation  and/or design and (ii) not within the control of NPI or
its personnel and (iii) not caused by the failure of NPI and/or its personnel to
comply with all Laws,  Rules and Regulations  with respect to the Manufacture of
such  Product,  Celgene  shall  replace  the  API for the  Product  scrapped  at
Celgene's expense,  and NPI may invoice Celgene for environmental  disposal fees
actually incurred and documented by NPI for the scrapped  Product.  NPI shall be
responsible  for all other  costs and  expenses  associated  with such  scrapped
Product.  In the event that NPI incurs  Product  scrap  costs  which are (a) not
caused by process  capability  issues  inherent  in the  production  formulation
and/or design or (b) within the control of NPI or its personnel or (c) caused by
the  failure of NPI  and/or its  personnel  to comply  with all Laws,  Rules and
Regulations, NPI shall be responsible for all costs and expenses associated with
such scrapped Product,  including,  without limitation,  reimbursing Celgene for
the out-of-pocket API costs therefore.

                         ARTICLE 5 - CHANGE MANAGEMENT

         5.1      REQUIRED MANUFACTURING CHANGES. With respect to changes to the
Specifications  or manufacturing  process which are required by applicable Laws,
Rules  and  Regulations  or by action  (or  inaction)  of any  legally-competent
government or other  regulatory  body or authority,  or by medical or scientific
concerns  as  to  the  toxicity,   safety,   and/or  efficacy  of  the  Products
(collectively, "Required Manufacturing Changes"), the Parties shall cooperate in
making such  changes  promptly.  The cost of  effecting  Required  Manufacturing
Changes  shall  be borne  by NPI;  provided,  however,  that if such  costs  are
material  and  ongoing,  Celgene and NPI shall  negotiate  in good faith a price
adjustment to compensate NPI for such material and ongoing costs. In cooperating
in making such changes,  Celgene shall be  responsible  for  communicating

                                       6

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

<PAGE>

with regulatory agencies with respect to the health  registrations and marketing
authorizations  for the Products.  Required  Manufacturing  Changes:  (i) do not
include  changes to the  labeling  only  (which  are dealt  with in Section  5.3
hereof), and (ii) do include changes resulting from or arising out of changes to
or withdrawal of third party  Materials.  Celgene shall be  responsible  for the
costs associated with any required change in sourcing of the API,  including any
regulatory submission charges and process validation costs.

         5.2      DISCRETIONARY  MANUFACTURING  CHANGES. With respect to changes
to the  Specifications or the  manufacturing  process for Products which are not
Required  Manufacturing  Changes  (collectively,   "Discretionary  Manufacturing
Changes"),  the Parties shall, to the extent  commercially  reasonable under the
circumstances,  cooperate in making such changes and the Party  initiating  such
change(s)  shall bear all the costs  associated with and resulting from any such
changes.  If the proposed  change requires a prospective  process  validation or
regulatory submission, then the costs to execute and resource such validation or
submission shall be the  responsibility  of the initiating Party. All regulatory
submissions will be filed by Celgene.

         5.3      LABELING  CHANGES.  With  respect to  changes  to the  Printed
Matter,  the Parties shall cooperate in making such changes promptly and Celgene
shall,  unless otherwise agreed,  reimburse NPI for all remaining obsolete stock
of Products, all inventory of Printed Matter (at NPI's actual out-of-pocket cost
plus *** percent (***%)) and all remaining  obsolete work in process of Products
resulting from any such change or amendment to the Printed Matter.  Celgene may,
at any time  during the  Supply  Term,  change or amend any item of the  Printed
Matter by notice  hereunder,  such change or  amendment  to be  effective  after
appropriate advance written notice thereof.

         5.4      CHANGES TO  SPECIFICATIONS.  Celgene  may make  changes to the
Specifications  from  time-to-time,  provided that all such  changes,  including
Required Manufacturing Changes, are to be communicated to NPI in writing.

         5.5      AUTHORIZATIONS.  During the Supply Term,  NPI shall obtain and
maintain  in  force  all  licenses  and  authorizations  necessary  for  NPI  to
Manufacture  Products.  Celgene shall bear all costs associated with maintenance
of the health  registrations  for the  Products.  Except as may be  required  by
Sections  5.1 or 5.2  hereof,  NPI shall  bear the full cost and  expense  of so
obtaining and maintaining such licenses and  authorizations.  Celgene shall give
NPI all help reasonably  necessary to assist NPI in so obtaining and maintaining
such licenses and  authorizations and shall bear the full cost and expense of so
assisting NPI. In the event Celgene  Products  require licenses in a new country
or territory, Celgene shall pay the costs of new license requirements.

                  ARTICLE 6 - LIABILITIES AND INDEMNIFICATION

         6.1      REPRESENTATIONS AND WARRANTIES.

                  (a)      NPI.  NPI hereby  represents  and warrants to Celgene
that (i) it has the power and  authority  to enter  into this  Agreement  and to
perform its  obligations  hereunder;  (ii) all work to be  performed  under this
Agreement,  including the  Manufacture of all Products,

                                       7

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

<PAGE>

shall be performed in a professional  manner,  in accordance with all applicable
Laws, Rules and  Regulations,  including all health and safety  ordinances;  and
(iii) NPI has all  licenses,  permits  and  other  authorizations  necessary  to
fulfill its obligations under this Agreement.

                  (b)      CELGENE.  Celgene  hereby  represents and warrants to
NPI that (i) it has the power and authority to enter into this  Agreement and to
perform  its  obligations  hereunder;  (ii) it is the  owner of all  proprietary
information,  or the  holder  of  licenses  thereto,  necessary  to allow NPI to
Manufacture the Products,  and, to its knowledge, no Products, when Manufactured
in  accordance  with the  Specifications,  will  infringe upon the rights of any
third party; and (iii) it has all licenses,  permits,  and other  authorizations
necessary to fulfill its obligations under this Agreement.

         6.2      PRODUCT  WARRANTIES.  NPI  represents  and warrants to Celgene
that the Products  shall,  on the date of delivery to the Carrier:  (i) meet the
requirements therefore set forth in the Specifications;  (ii) not be adulterated
within the meaning of Section 501 of the United States Food,  Drug and Cosmetics
Act and the regulations  promulgated thereunder as each may be amended from time
to time  (collectively,  the "Act");  and (iii) comply in all material  respects
with all federal,  state and local laws (including  without limitation all Laws,
Rules  and  Regulations)  applicable  to  the  Manufacture  of the  Products  in
accordance with the Specifications.  NPI makes no warranties with respect to the
Products  other  than those  specifically  set forth in this  section.  No other
warranty  is   expressed   or  implied  by  NPI   including   any   warranty  of
merchantability  or fitness for a particular  purpose and none shall be implied.
Further,  all  warranties  with respect to the  Products  shall not apply to any
Product that is  subsequently  altered by the Celgene or the Carrier.  NPI shall
not be liable for  Celgene's  consequential,  incidental,  special  or  indirect
damages  resulting  from the use,  handling,  transportation,  or storage of the
Product,  even if NPI has been made aware of the  possibility  of such  damages.
Except as otherwise  set forth  herein,  the extent of NPI  liability  shall not
exceed contract value.

         6.3      CELGENE  INSURANCE.  Celgene  shall  provide NPI with evidence
that it has in place the following  policies  with a reputable  and  responsible
insurance  carrier,  which shall remain in full force and effect  throughout the
Supply  Term:  (i)  all  risk  property   insurance  policy  covering  the  full
replacement cost of Celgene's property in NPI's possession or under its control;
(ii) general liability including product and completed  operations coverage in a
minimum  amount of $***  insuring  NPI against  liability  for injury to persons
occurring  in, upon,  or adjacent to NPI's  facilities.  Celgene  shall  provide
evidence  that NPI has been named as an  additional  insured  under the policies
described herein during the Supply Term.

         6.4      NPI INSURANCE. NPI shall provide Celgene with evidence that it
has in place with a reputable and  responsible  insurance  carrier,  which shall
remain in full force and effect  throughout the Supply Term, a minimum amount of
$*** insuring NPI against liability for Product defects.

         6.5      CELGENE INDEMNITY. Notwithstanding anything to the contrary in
this  Agreement,  Celgene shall  indemnify,  defend and hold harmless NPI, NPI's
affiliates, and each of their respective officers,  directors (past, present and
future) employees, representatives and

                                       8

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

<PAGE>

agents from and against any and all third party claims, loss, damage, liability,
payment,  and  obligation,  and  all  expenses,   including  without  limitation
reasonable legal fees (collectively,  "Losses") whether such Losses are based in
contract, strict liability,  negligence,  warranty,  statutes or regulations, or
any other  legal  theory,  including  without  limitation  injury to or death of
persons  and/or  property  or  contamination  of or  adverse  effect on  humans,
animals,  aquatic  life  or  the  environment,  based  upon,  arising  out of or
otherwise in respect of: (1) the  Manufacture,  use, sale or distribution of the
Products,  provided such Products were in  compliance  with the  warranties  set
forth in the first sentence of Section 6.2, (ii) any claim threatened or brought
against NPI alleging  that the  Specifications  for any Product,  including  the
labeling for such Product,  violate any applicable United States federal, state,
or  local  rule,  regulation,   law  or  ordinance,  to  the  extent  that  such
Specifications  were provided to NPI by Celgene,  provided such Products were in
compliance  with the  warranties set forth in the first sentence of Section 6.2,
(iii) any inaccuracy in or breach of any representation,  warranty,  or covenant
made by Celgene in this Agreement;  (iv) the willful misconduct or any negligent
or reckless acts or omissions of any of Celgene's officers,  directors,  agents,
affiliates,  employees  and/or  representatives,  or any allegations of the same
made by any third  party;  (v) any  claim  threatened  or  brought  against  NPI
alleging that the Manufacture,  in accordance with the design or  Specifications
of any Product,  as provided to NPI by Celgene,  infringes upon any intellectual
property  interest of a third party,  (vi) any product warranty claim or product
liability claim  threatened or brought against NPI with respect to the Products,
provided such Products were in compliance  with the  warranties set forth in the
first  sentence of Section  6.2,  and (vii) any claim,  including  damage to any
property,   or   injury   to  any   person   (including   Celgene's   employees,
representatives,  agents,  associates,  or other  persons  invited by Celgene to
inspect NPI's  facilities  on behalf of Celgene),  arising out of, or related to
the  inspection  of  NPI's  facilities  contemplated  by  Section  2.6  of  this
Agreement,  provided that such damage or injury is not caused by the  negligence
or willful misconduct of any NPI employee,  contractor or agent or any defect in
such facilities.

         6.6      NPI  INDEMNITY.  Notwithstanding  anything to the  contrary in
this  Agreement,  NPI shall  indemnify,  defend and hold  harmless  Celgene  and
Celgene's  affiliates,  and each of their respective officers,  directors (past,
present and future) employees,  representatives  and agents from and against any
and all Losses,  based upon,  arising out of or otherwise in respect of: (i) the
failure  of  the  Products   transferred  to  Celgene   hereunder  to  meet  the
requirements  of Section 6.2 hereof,  (ii) bodily  injury or property  damage in
connection with the Manufacture of the Products;  (iii) any breach by NPI of any
representation,  warranty  or covenant  of this  Agreement;  or (iv) the willful
misconduct  or any  negligent  or  reckless  acts or  omissions  of any of NPI's
officers,  directors, agents, affiliates,  employees and/or representatives,  or
any allegations of the same made by any third party.

         6.7      JOINT NEGLIGENCE.  If any Loss incurred by or rendered against
either  Party  is  determined  by an  independent  tribunal  to be  due  to  the
negligence or willful misconduct of both NPI and Celgene, then the Parties shall
share the costs attributable to such Loss (including but not limited to the cost
of defense  thereof) in accordance with the proportion of each Party's  relative
fault,  as determined  by the  independent  tribunal.  Each Party shall give the
other notice of any Loss to which it believes the preceding sentence applies and
the Parties shall  cooperate in the defense thereof in accordance with the terms
of this Section 6.7.

                                       9

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

<PAGE>

         6.8      NOTICE AND  OPPORTUNITY  TO DEFEND.  Promptly  after  becoming
aware of a Loss as to which a Party is  entitled to  indemnification  under this
Agreement,  such  Party  (the  "Claiming  Party")  shall  notify  the other (the
"Indemnifying  Party") of such Loss.  The  failure  or delay in  providing  such
notice shall not relieve the Indemnifying Party of its obligations other than to
the extent it was materially  prejudiced by such failure or delay.  Upon receipt
of such notice,  the  Indemnifying  Party will handle and control the defense of
such Loss. If both Parties claim indemnification  hereunder for the same Loss or
if the Indemnifying Party in good faith rejects the claim of indemnity, then the
Claiming  Party will  handle and  control  the  defense of the Loss  against it,
pending final resolution of the Parties'  respective  claims for or with respect
to indemnity hereunder.  At the time of such resolution,  defense costs incurred
pursuant to the preceding  sentence shall be apportioned  between the Parties in
the same manner as the Parties share ultimate  liability for the underlying Loss
pursuant  to  Sections  6.5,  6.6 or 6.7  hereof.  In all  cases,  the Party not
handling and  controlling  such defense shall cooperate in such defense and may,
at its own expense,  participate in such defense  through counsel of its choice.
An Indemnifying Party shall not dispose of or agree to dispose of a Loss without
the prior written  approval of the Claiming  Party which  approval  shall not be
unreasonably withheld, conditioned or delayed.

                        ARTICLE 7 - TERM AND TERMINATION

         7.1      TERM.  Subject to the  provisions  of Section 7.2 hereof,  the
initial term of this  Agreement  shall  commence on the Agreement Date and shall
continue in full force and effect,  unless otherwise  terminated earlier,  for a
period of *** months from the commencement  date of commercial  production.  The
term of this  Agreement  shall be extended  automatically  for *** terms  unless
Celgene  gives NPI  written  notice at least ***  before the  expiration  of the
then-current term that the term shall not be extended.

         7.2      TERMINATION.  This Agreement may not be terminated at any time
except in accordance  with the terms and conditions of Section 7.2.

                  (a)      DEFAULT.  This Agreement may be terminated by written
notice by either Party if the other Party  breaches  any  material  provision of
this Agreement and does not remedy such breach within *** days of written notice
of breach unless such breach cannot be remedied  within such *** day period,  in
which case such  breach  must be  remedied  as soon as  commercially  reasonable
diligence will permit.

                  (b)      TERMINATION WITHOUT CAUSE.  Celgene may, at any time,
terminate its obligation to purchase or supply Product, by giving written notice
to NPI at least *** days prior to the effective date of such termination.

                  (c)      TERMINATION  WITH CAUSE.  Either Party may  terminate
this  Agreement at any time  effective  upon delivery of written  notice of such
termination,  upon  the  occurrence  of  any  of  the  following:  (i)  improper
assignment of this Agreement by the  non-terminating  Party;  (ii) an assignment
for the benefit of creditors by the non-terminating Party; or (iii) commencement
of voluntary  or  involuntary  liquidation  proceedings  by the  non-terminating
Party.

                                       10

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

<PAGE>

         7.3      EFFECTS OF  TERMINATION.  Except in the event of a termination
of this  Agreement  by Celgene  pursuant to  Sections  7.2(a) or (c), if NPI has
quantities  of raw  materials  or  packaging  materials  in  excess  of  Celgene
requirements therefore after expiration or termination of this Agreement,  or if
NPI is required to order quantities of such raw materials or packaging materials
in excess of Celgene requirements therefore after termination of this Agreement,
Celgene  shall,  upon such  termination,  purchase all  finished  product at the
agreed  prices and such  Materials  at NPI  out-of-pocket  cost plus *** percent
(***%) F.O.B. producing plant.

                         ARTICLE 8 - GENERAL PROVISIONS

         8.1      CONFIDENTIALITY.  During the Supply Term,  and for a period of
five (5) years thereafter,  the Parties, and all of their respective  employees,
agents,  representatives,  and advisors, shall maintain in confidence all of the
other  Party's  Confidential  Information,  and shall not disclose  Confidential
Information to any third party,  or use  Confidential  Information in any way or
for the  benefit  of any  person  other  than  as  expressly  permitted  in this
Agreement.  For the  purposes  of  this  covenant,  the  Parties  shall  have no
obligation with respect to any information  which: (i) has been either published
or is otherwise in the public  domain or  subsequently  enters the public domain
without breach of the confidentiality  obligations  hereunder;  (ii) is lawfully
acquired from a third party under no obligation of confidentiality,  directly or
indirectly,  to the owner of the Confidential  Information;  or (iii) is legally
required to be disclosed pursuant to applicable law, regulation,  court order or
in  connection  with a legal  proceeding.  If either Party is required by law to
disclose  the  other's  Confidential  Information,  the  disclosing  Party  will
promptly notify the owner of the Confidential Information of the requirement and
will  cooperate in all  reasonable  respects with the owner of the  Confidential
Information to limit the amount of information to be disclosed.

         8.2      INTELLECTUAL PROPERTY.

                  (a)      NPI 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  Manufacture  of
Products that consists of or relates to the Products,  the use,  formulation  or
manufacture  thereof,  or any other  material,  product or process  belonging to
Celgene  or  its  licensors,   or  to  any  improvement(s),   enhancement(s)  or
refinement(s)  of any of same,  shall be the sole property of Celgene  ("Celgene
Inventions").  NPI 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  Confidential  Information
hereunder and be subject to the confidentiality provisions of Section 8.1 above.

                  (b)      Upon  the  termination  of  this  Agreement,  or upon
Celgene's earlier request, NPI will deliver to Celgene all of Celgene's property
relating  to, and all  tangible  embodiments  of,  Celgene  Inventions  in NPI's
possession or control.

                                       11

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

<PAGE>

                  (c)      NPI 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.

                  (d)      NPI agrees that if Celgene is unable because of NPI's
unavailability,  dissolution, or for any other reason, to secure NPI'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, then
NPI hereby  irrevocably  designates  and  appoints  Celgene and  Celgene's  duly
authorized officers and agents as NPI's agent and  attorney-in-fact,  to act for
and in NPI'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 NPI.

                  (e)      NPI  represents  and warrants  that each employee and
independent  contractor  of NPI  has  executed  a  written  agreement  with  NPI
sufficient for NPI to fulfill its obligations to Celgene under this Section 8.2,
including,  without limitation,  an obligation on the part of each such employee
and independent contractor to assign any and all Celgene Inventions to NPI.

         8.3      FORCE MAJEURE.

                  (a)      NPI shall not be subject to any  liability  for delay
in  performance  or  nonperformance  hereunder  as a result and to the extent of
contingencies and circumstances  beyond its reasonable control  (including,  but
not limited  to,  fire,  flood,  or other  natural  catastrophe,  strike,  labor
trouble,  accident,  riot,  war, act of governmental  authority,  or act of God)
interfering with the Production, supply, transportation or receipt of Product or
with the supply of any Materials used in the Manufacture thereof.

                  (b)      Except where the nature of the event shall prevent it
from doing so, if NPI  suffers  such  force  majeure  it shall  promptly  notify
Celgene in writing after the occurrence of such force majeure and shall in every
instance,  to the extent reasonable and lawful under the circumstances,  use its
best efforts to remove or remedy such cause with all reasonable dispatch.

                  (c)      When the force majeure  conditions in question  cease
to exist,  NPI shall promptly  notify Celgene in writing about the force majeure
termination.

                  (d)      Should  a  circumstance   of  force  majeure  prevent
performance  of this  Agreement by NPI for a continuous  three (3) month period,
Celgene may  terminate  this  Agreement  upon thirty (30) days  written  notice,
provided that such notice is given during the continuance of such force majeure.

         8.4      SEVERABILITY.  If any provision of this  Agreement is found or
declared  to be  invalid  or  unenforceable  by any  court  or  other  competent
authority having  jurisdiction,  such finding or declaration will not invalidate
any other provision hereof and this Agreement shall thereafter  continue in full
force and effect, except that such invalid or unenforceable  provision,  and (if
necessary) other provisions  thereof,  shall be reformed by a court of competent
jurisdiction

                                       12

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

<PAGE>

so as to effect, insofar as is practicable,  the intention of the Parties as set
forth in this  Agreement,  provided that if such court is unable or unwilling to
effect such reformation, the invalid or unenforceable provisions shall be deemed
deleted to the same extent as if they had never existed.

         8.5      GOVERNING LAW;  VENUE.  The provisions of this Agreement shall
be governed in the internal laws of the State of New Jersey,  USA without regard
to the conflict of laws and rules thereof.  Any action, suit or other proceeding
initiated by either Party hereto under or in connection  with this Agreement may
be  brought  in any  Federal  or  state  court in the  State of New York  having
jurisdiction  over the subject matter thereof as the Party bringing such action,
suit or proceeding  shall elect.  The Parties  hereby  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 under this Agreement.

         8.6      REMEDIES. No right or remedy herein conferred upon the Parties
is intended  to be  exclusive  of any other right or remedy,  and each and every
right or remedy shall be cumulative and in addition to any other right or remedy
given hereunder or now or hereafter existing at law or in equity or by statute.

         8.7      ATTACHMENTS.  The  attachments  to this  Agreement  are hereby
incorporated  in and made a part of this  Agreement.  The Parties may, by mutual
consent,  amend any  attachment  hereto at any time  during  the term  hereof by
executing a version of such  attachments  dated after the then  current  version
thereof.

         8.8      WAIVER:  AMENDMENT.  Any  waiver by either  Party  hereto of a
breach or a default of any provision of this Agreement by any other Party hereto
shall not be construed as a waiver of any  succeeding  breach of the same or any
other provision, nor shall any delay or omission on the part of any Party hereto
to exercise or avail itself of any right,  power or privilege that it has or may
have hereunder operate as a waiver of any such right, power or privilege by such
Party.  Any amendment or  supplementation  of this Agreement  shall be effective
only if in writing signed by both of the Parties hereto.

         8.9      COUNTERPARTS.   This   Agreement   may  be   executed  in  two
counterparts,  each of  which  shall be  deemed  an  original  but both of which
together shall constitute one and same instrument.  The Parties have agreed that
for this purpose, facsimile signatures will be accepted as originals.

         8.10     SURVIVAL. The provisions of Sections 2.1(c), 2.1(e), 2.2, 3.4,
3.5,  6.1,  6.2,  6.5,  6.6,  6.7,  6.8 and 7.3 and Article 8 shall  survive the
expiration or  termination  of this Agreement for as long as necessary to permit
their full discharge.

         8.11     ENTIRE   AGREEMENT.   This  Agreement  and  all  exhibits  and
attachments  hereto constitute the full understanding of the Parties, a complete
allocation of risk between them,  and a complete and exclusive  statement of the
terms and conditions of their  agreement  relating to the Manufacture of Product
hereunder  and  supersedes  and  replaces  any and all prior or  contemporaneous
agreements,  arrangements,  understandings, and negotiations, whether written or
oral,  that may exist  between the Parties  with  respect to the subject  matter
hereof.

                                       13

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

<PAGE>

Except as provided otherwise in this Agreement,  no conditions,  usage of trade,
course of dealing or  performance,  understanding  or  agreement  purporting  to
modify,  vary,  explain or supplement  the terms or conditions of this Agreement
shall be binding on the Parties unless  described as a modification or amendment
of this  Agreement  made in writing  and signed by the  Parties to be bound.  No
modification  hereof shall be effected by the  acknowledgement  or acceptance of
any purchase order or shipping instruction forms containing terms and conditions
at variance with those set forth in this Agreement.

         8.12     ASSIGNMENT.  Neither  this  Agreement  nor any  claim  arising
directly or indirectly  out of or in connection  with the  performance of either
Party  hereunder  shall be assignable  by either Party hereto  without the prior
written consent of the other Party,  which shall not be  unreasonably  withheld.
The foregoing  shall not include merger or  acquisition  of either Party,  or an
assignment by Celgene to an affiliate of Celgene or to any successor in interest
(by license or otherwise) to Celgene's business with respect to the Product, but
in any event,  notification  must be provided in writing  within *** days of any
such merger,  acquisition,  or assignment.  No such assignment or transfer shall
relieve or release the assignor or  transferor  from any of its  liabilities  or
obligations under this Agreement.

         8.13     NOTICE.  All  communications  under this Agreement shall be in
writing  and  shall  be  either  faxed,  sent by  courier  (Federal  Express  or
equivalent),  or mailed by first-class mail, postage pre-paid, to the fax number
and/or address specified below. If faxed, such communication  shall be deemed to
be given when  sent;  provided,  however,  that such fax shall be  confirmed  by
sending a hard copy by courier or first-class mail (by methods specified herein)
within one (1)  working  day of the  sending of such fax.  If sent by courier or
mailed by  first-class  mail as specified  below,  such  communication  shall be
deemed to be given either two (2) business days after sending (for communication
sent by courier) or five (5) business days after mailing (for communication sent
by mail).  Either Party may change its address for notice  purposes by complying
with the provisions of this Section 8.13. All communications  hereunder shall be
sent:

                  (a)      if to NPI, at its  address  shown below or such other
                           address   as  it  may  give  to   Celgene  by  notice
                           hereunder:

                                     President
                                     OSG Norwich Pharmaceuticals, Inc.
                                     6826 State Highway 12
                                     Norwich, NY  13815
                                     Fax:  (607) 335-3100

                  (b)      if to  Celgene,  at its  address  shown below or such
                           other  address  as it  may  give  to  NPI  by  notice
                           hereunder:

                                     President
                                     Celgene Corporation
                                     7 Powder Horn Drive
                                     Warren, NJ  07059
                                     Fax:  732-805-3931

                                      14

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

<PAGE>

                                     with a copy to: ***
                                                     Celgene Corporation
                                                     7 Powder Horn Drive
                                                     Warren, NJ  07059
                                                     Fax:  732-805-3931

                                     [End of text; signature page follows]

                                       15

*** - 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 caused  this  Agreement  to be
executed  by their duly  authorized  representatives  as of the date first above
written.

CELGENE                                     OSG NORWICH PHARMACEUTICALS,
                                            INC.

(Celegne)                                   (NPI)

By:                                         By:

***                                         ***
-------------------------------------       ------------------------------------

TITLE:                                      TITLE:

***                                         ***
-------------------------------------       ------------------------------------

                                       16

*** - indicates  material omitted pursuant to a Confidential  Treatment  Request
and filed separately with the Securities and Exchange Commission.EXHIBIT 10.52

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.

                         FINISHED GOODS SUPPLY AGREEMENT
                                 (REVLIMID(TM))

         This Finished Goods Supply Agreement (the  "Agreement")  dated this 8th
day of September 2004 between Penn Pharmaceutical Services Limited, ("Penn") and
Celgene Corporation, a Delaware corporation ("Celgene").

                                    RECITALS

         Whereas, Penn and Celgene desire to establish a relationship,  pursuant
to which Penn (or its  appropriate  Affiliates,  as defined herein) will supply,
and  Celgene (or its  appropriate  Affiliates)  will  purchase,  the  Commercial
Products, as defined herein.

         In consideration of the foregoing premise, and the mutual covenants and
obligations set forth herein, Celgene and Penn hereby agree as follows:

                                   ARTICLE 1

                                   DEFINITIONS

         1.1.     "AFFILIATE"  shall mean, with respect to any party, any person
or entity  which,  directly or  indirectly  through one or more  intermediaries,
controls,  is  controlled  by, or is under common  control with,  such party.  A
person or entity shall be deemed to control a  corporation  (or other entity) if
such person or entity possesses,  directly or indirectly, the power to direct or
cause the direction of the management and policies of such corporation (or other
entity)  whether  through the  ownership  of voting  securities,  by contract or
otherwise.

         1.2.     "API"   shall  mean  the  active   pharmaceutical   ingredient
lenalidomide, [3-(4'aminoisoindoline-l'-one)-1-piperidine-2,6-dione],  Celgene's
compound CC-5013.

         1.3.     "BATCH" shall mean one (1)  production  lot of the  Commercial
Products as defined in Exhibit A.

         1.4.     "BATCH  RECORD"  shall mean the document  created as and after
each  Batch is  manufactured  that,  if  complete  and  accurate,  reflects  and
incorporates  all  aspects of the  Master  Batch  Formula,  the  Certificate  of
Analysis, and any MD Reports issued, with respect to such Batch.

         1.5.     "CERTIFICATE OF ANALYSIS"  shall mean a certificate  issued by
Penn stating that a Batch has been  manufactured  in accordance  with the Master
Batch Formula and stating the Test results.

         1.6.     "COMMERCIAL   PRODUCTS"   shall  mean  the   formulations   of
Revlimid(TM)   (lenalidomide)  in  capsule  form  for  oral   administration  as
identified in the NDA.

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

<PAGE>

         1.7.     "CONFIDENTIAL  INFORMATION"  shall  mean,  with  respect  to a
party,  all information of any kind whatsoever  (including  without  limitation,
data, compilations, formulae, models, patent disclosures, procedures, processes,
projections,  protocols, results of experimentation and testing, specifications,
strategies and techniques),  and all tangible and intangible embodiments thereof
of any kind whatsoever (including without limitation,  apparatus,  compositions,
documents, drawings, machinery, patent applications, records and reports), which
is  disclosed by such party to the other party and is marked,  identified  as or
otherwise acknowledged to be confidential at the time of disclosure to the other
party. Notwithstanding the foregoing,  Confidential Information of a party shall
not  include  information  which  the  other  party  can  establish  by  written
documentation  (a) to have  been  publicly  known  prior to  disclosure  of such
information  by the  disclosing  party to the other  party,  (b) to have  become
publicly  known,  without  fault on the part of the other party,  subsequent  to
disclosure of such  information by the disclosing  party to the other party, (c)
to have been  received by the other party at any time from a source,  other than
the disclosing party,  rightfully having possession of and the right to disclose
such  information,  (d) to have been otherwise known by the other party prior to
disclosure of such  information by the disclosing  party to the other party,  or
(e) to have been  independently  developed  by  employees or agents of the other
party without the use of such  information  disclosed by the disclosing party to
the other party.

         1.8.     "DMF" shall mean the Drug Master File that  relates to the API
and that Celgene shall maintain.

         1.9.     "FDA"   shall   mean   the   United   States   Food  and  Drug
Administration, and any successor agency thereto.

         1.10.    "FFDCA"  shall mean the United  States  Federal  Food Drug and
Cosmetic Act as amended from time to time.

         1.11.    "cGMPS"  shall  mean  current  Good  Manufacturing   Practices
promulgated by the FDA.

         1.12.    "HAZARDOUS  WASTE"  shall  mean all waste  that is  defined as
hazardous by applicable federal,  state, and local laws and regulations,  to the
extent  that  such  waste  arises  out of Penn's  Processing  and  Packaging  of
Commercial Products in accordance with this Agreement.

         1.13.    "IN-PROCESS   MATERIALS"  shall  mean  the  API  and  the  Raw
Materials  with respect to a Batch during the time period  beginning at the time
Penn begins Processing  Commercial  Products in accordance with the Master Batch
Formula  and  ending at the Penn  Approval  Date (as  defined  in clause  2.7.1.
herein).

         1.14.    "INTELLECTUAL   PROPERTY"   shall  mean   Celgene's   and  its
Affiliates'  rights  existing  as of the  date  hereof  and as may be  developed
hereafter in and to all Confidential Information, proprietary information, trade
secrets,  patent  rights,  technology,  know-how,  developments,   improvements,
techniques, data, methods, processes, instructions,  formulae, recipes, drawings
and specifications  necessary to manufacture and supply the Commercial  Products
hereunder.

                                       2

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

<PAGE>

         1.15.    "LABEL"  OR  "LABELING"  shall  mean (1)  written,  printed or
graphic materials, as set forth in the Master Packaging Record or (2) the act of
supplying  written,  printed  or graphic  materials,  as set forth in the Master
Packaging  Record,  including  (i) upon the  Commercial  Product,  (ii) upon any
container or wrapper utilized with the Commercial Product, or (iii) accompanying
the Commercial Product, including, without limitation, package outserts.

         1.16.    "MD REPORT" or  "MANUFACTURING  DEVIATION REPORT" shall mean a
report indicating any deviation from the Processing and Packaging procedures set
forth in the Master Batch Record.

         1.17.    "MASTER BATCH FORMULA" shall mean the document  containing the
formulas for API and Raw Materials and the  description  of the Process,  as set
forth in EXHIBIT A.

         1.18.    "MASTER  BATCH  RECORD"  shall mean the Master Batch  Formula,
Master  Packaging  Record  and  Specifications,  as such may be  amended  by the
parties pursuant to clause 2.3.1.

         1.19.    "MASTER PACKAGING  RECORD" shall mean the document  containing
the procedures and  specifications  for Packaging and Labeling,  as set forth in
EXHIBIT B.

         1.20.    "MSDS" shall mean the Material Safety Data Sheet for the API.

         1.21.    "NDA" shall mean the New Drug  Application  for the Commercial
Product to be filed with the FDA by Celgene, and any supplements thereto.

         1.22.    "NON-CONFORMING  BATCH"  shall  mean any  Batch  that does not
comply with the Specifications or any batch processed in violation of cGMPs.

         1.23.    "NON-HAZARDOUS  WASTE"  shall  mean  all  rejected  Commercial
Product or  In-Process  Materials  or waste  arising  out of  Processing  and/or
Packaging,  including without limitation,  rejected or unusable Raw Materials or
API, disposable  manufacturing  equipment  (including filters used in Processing
and  Packaging),  wash  rinse,  and  previously  used  or  discarded  protective
clothing, except to the extent that any of the foregoing is Hazardous Waste.

         1.24.    "PACKAGE" or  "PACKAGING"  shall mean the  procedures  used in
packing the Commercial  Products into  containers,  bottles,  cartons,  shipping
cases or any other like matter,  or the materials  thereof,  as set forth in the
Master Packaging Record.

         1.25.    "PENN  APPROVAL  DATE"  shall  mean the  date on which  Penn's
quality assurance department approves each Batch for shipment in compliance with
the Master Batch Record.

         1.26.    "PERSON" shall mean an individual,  corporation,  partnership,
limited  liability  company,  trust,  business trust,  association,  joint stock
company,  joint venture,  pool, syndicate,  sole proprietorship,  unincorporated
organization,   governmental   authority   or  any  other  form  of  entity  not
specifically listed herein.

         1.27.    "PPI" shall mean the Producer Price Index for *** as published
by the Office of National Statistics in the UK.

                                       3

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

<PAGE>

         1.28.    "PROCESS"  or  "PROCESSING"   shall  mean  the  pharmaceutical
manufacturing  procedures,  or any part thereof,  involved in manufacturing  the
Commercial  Product  from the API and Raw  Materials  as set forth in the Master
Batch Formula.

         1.29.    "RAW  MATERIALS"  shall  mean  the  excipients  necessary  for
Processing (exclusive of the API) as listed in the Master Batch Formula.

         1.30.    "RAW MATERIAL  COST" shall mean the cost of Raw Materials used
to manufacture the Commercial Products,  determined in accordance with generally
accepted accounting  principles and consistent with Penn's accounting  practices
for other manufactured products.

         1.31.    "SPECIFICATIONS"  shall  mean  the  appropriate  standards  of
identity,  strength,  quality and purity for the Raw Materials,  API, In-Process
Materials and Commercial Product, and the Tests thereof, as set forth in EXHIBIT
C.

         1.32.    "STORE" or "STORAGE"  shall mean the warehousing of Commercial
Products  according  to cGMP and  other  applicable  U.S.  laws and  regulations
subject to clause 2.7.1.

         1.33.    "TEST" or "TESTING" shall mean the analytical  procedures,  as
applicable,  for Raw Materials, API, In-Process Materials and Commercial Product
as set forth in the Specifications.

                                   ARTICLE 2
                        MANUFACTURE, SUPPLY AND PURCHASE

         2.1.     LICENSE GRANT.  Celgene hereby grants to Penn a  non-exclusive
license to use and practice the Intellectual  Property solely to manufacture the
Commercial  Products  for  Celgene in  accordance  with the  provisions  of this
Agreement.  The Intellectual  Property licensed hereunder is sufficient to allow
Penn to perform  its  obligations  hereunder.  Except as provided in this clause
2.1,  Penn  acknowledges  that it has no  intellectual  property  rights  in the
Commercial Products or in the API.

         2.2.     SUPPLY  AND  PURCHASE  OBLIGATIONS.  During  the  term of this
Agreement, Penn shall manufacture and supply Commercial Products exclusively for
Celgene.  Celgene  shall  purchase  a minimum  ***  percent  (***) of its annual
requirements of Commercial Products from Penn pursuant to clause 2.6.4 below and
subject to clause 2.6.2 below unless Penn fails to supply conforming  Commercial
Products  (subject  to  clause  2.6.3  below)  for any  two (2) out of four  (4)
consecutive  calendar  quarters.  Upon  the  written  request,  and at the  sole
expense,  of  Penn,  Celgene  shall  permit  an  independent   certified  public
accounting firm, selected by Penn and reasonably  acceptable to Celgene, to have
access during normal  business hours to such of the records of Celgene as may be
reasonably  necessary to verify that the Commercial Products supplied to Celgene
pursuant to this  Agreement  represents  at least *** percent (***) of Celgene's
requirements during the preceding year.

         2.3.     MANUFACTURING PRACTICES.

                  2.3.1.   MASTER BATCH RECORD. Penn shall Process, Test (unless
Penn is requested by Celgene to conduct a full analysis),  Package and Label the
Commercial Products in conformity with the Master Batch Record. Unless otherwise
required  by law,  Penn shall not

                                       4

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

<PAGE>

make any changes to the Master Batch Record  without prior written  consent from
Celgene, which consent shall not be unreasonably withheld.  Celgene shall notify
Penn in writing of any proposed  changes to the Master Batch Record.  Penn shall
use reasonable  commercial  efforts to promptly  implement  changes  directed by
Celgene to the Master Batch Record at Celgene's sole expense, including, but not
limited to, any required capital equipment  expenditures.  The Price (as defined
in clause 3.1),  shall be increased to incorporate the costs associated with any
such changes to the Master Batch Record as applicable. Penn shall notify Celgene
and obtain prior  written  approval  (such  approval  shall not be  unreasonably
withheld) for any proposed changes related to the Commercial Product outside the
Master Batch Record prior to their implementation by Penn.

                  2.3.2.   REGULATORY  COMPLIANCE.  Penn shall  manufacture  the
Commercial  Products in accordance  with cGMPs and all applicable  U.S.  federal
laws and regulations.

                  2.3.3.   TECHNICAL  REQUIREMENTS.  Penn shall  comply with the
technical requirements set forth on EXHIBIT D.

         2.4.     RAW MATERIALS, LABELING AND PACKAGING.

                  2.4.1.   RAW MATERIALS.  Penn shall purchase the Raw Materials
necessary for manufacturing Commercial Products as specified in the Master Batch
Formula from vendors  mutually agreed to in writing by the parties,  the cost of
which shall be included in the Price.

                  2.4.2.   LABELING  AND  PACKAGING.   Penn  shall  acquire  all
Labeling and  Packaging for the  Commercial  Products to the bulk stage and such
Labeling and Packaging shall be in accordance with the Master Packaging  Record,
the cost of which shall be included in the Price.  Penn shall afford Celgene the
opportunity to approve,  on a sample basis, and Celgene shall review and approve
the Labels for the  Commercial  Products so as to assure that the labels conform
to all applicable laws,  rules,  regulations and requirements of all appropriate
regulatory authorities.  Should Celgene desire or be required to make any change
to any such  Labels,  Celgene  shall  revise  and update  all  artwork  and text
associated  with such change and provide such changes to Penn or its Affiliates.
Penn shall make all commercially  reasonable and necessary arrangements to print
such changed Labels and shall provide printer's proofs to Celgene for review and
approval.  Celgene shall  promptly  provide Penn with any necessary  corrections
thereto or notify Penn of its approval of such proofs.  Celgene shall  reimburse
Penn for the cost of preparing the printer's  proofs, as well as all other costs
associated with such new Labels including,  but not limited to, reimbursement of
costs relating to unusable or superseded Labels; provided, however, that Celgene
shall not be  responsible  for any such costs that result from Penn's failure to
act within commercially reasonable care and diligence.

         2.5.     API.

                  2.5.1.   API  DELIVERY.  At least  ninety  (90) days  prior to
Celgene's first firm purchase order submitted under clause 2.6.4,  Celgene shall
identify the source of the API to Penn and shall  furnish the API to Penn,  free
of charge, in such quantities as are necessary to enable Penn to manufacture the
Commercial  Products ordered.  Celgene or its designee will ship to Penn the API
released with a certificate of analysis for the API.

                                       5

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

<PAGE>

                  2.5.2.   API  SEGREGATION.  Penn shall keep all API segregated
from  other  materials  within its  reasonable  control  so as to  maintain  the
integrity of the  substance  and shall not allow any samples of the substance to
be used or Tested by any party not under its direct supervisory  control for any
purposes.  Penn shall perform only such Tests and analysis as it deems necessary
for this Agreement and shall maintain the  confidentiality  of such Test results
in compliance with clause 8 below.  The API shall remain the property of Celgene
until used by Penn in the Processing.

                  2.5.3.   API VERIFICATION.  Penn shall verify the quantity and
quality of all API received by Penn  according to the methods and procedures set
forth in the  Specifications  within  sixty  (60) days of receipt by Penn of the
API. Within such sixty (60) day period,  Penn shall inform Celgene in writing of
any  discrepancies  in the quantity  and/or  quality of the API received and the
documents accompanying each shipment of the API.

                  2.5.4.   TIMELY API DISCREPANCY. If Penn notifies Celgene of a
discrepancy  in the  quantity  or quality of the API within  such sixty (60) day
period,  Celgene shall endeavor in good faith to ship  additional API within the
time period necessary for Penn to manufacture  Commercial  Product in accordance
with the  completion  date for delivery of  Commercial  Product  pursuant to the
applicable  purchase order.  Penn shall not be liable to Celgene for any losses,
liabilities or claims resulting directly or indirectly from the late delivery of
API by Celgene.

                  2.5.5.   LEGAL NOTICE OF DISCREPANCY;  OR API DAMAGE.  If Penn
fails to inform Celgene of any discrepancy in the quantity or quality of the API
within  such  sixty  (60) day period or if there is damage to the API within the
foregoing  sixty (60) day period and Penn  cannot  demonstrate  that such damage
occurred prior to delivery to Penn or if any such damage is the result of Penn's
failure to handle the API in accordance with the terms of this  Agreement,  then
Penn  shall (a) at Penn's  option  return  the API to Celgene or dispose of same
according to Celgene's  instructions  and (b) at  Celgene's  option,  either (i)
purchase  from  Celgene  replacement  API for a value  equal to  Celgene's  then
current API cost for the API that is lost, damaged or destroyed,  or (ii) credit
Celgene on it's next invoice for an amount equal to Celgene's  then-current cost
for such API.

                  2.5.6.   OTHER  API   DAMAGE  OR  LOSS.   Subject  to  Celgene
notifying  Penn of the  replacement  value of the API at or about  the time Penn
receives such item,  Penn shall assume  responsibility  and  liability  for, and
shall defend,  indemnify and hold Celgene harmless from and against, any loss of
or damage to the API while Penn has custody and control over the API, In-Process
Materials  and/or the  finished  Commercial  Product.  Such  responsibility  and
liability shall commence upon Penn's receipt of the API at Penn's  manufacturing
facility and end upon the delivery of the Commercial Product to a common carrier
at the  manufacturing  facility  for shipment to Celgene.  Without  limiting the
generality  of the  foregoing,  lost or  damaged  API shall be  disposed  of and
replaced or credited as provided in clause 2.5.5.

         2.6.     FORECASTS AND ORDERS.

                  2.6.1.   FORECASTS.  Beginning  with the first  full  calendar
quarter,  not less  than  forty-five  (45)  days  prior to the first day of each
calendar quarter, Celgene shall prepare and provide Penn with a written forecast
of the estimated  Commercial Product  requirements of

                                       6

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

<PAGE>

Celgene and its Affiliates for each of the following four (4) calendar quarters.
Without  the prior  written  consent  of Penn,  Celgene  shall not  increase  or
decrease the quantity  estimated for the first calendar quarter of each forecast
by more than  twenty-five  percent  (25%) from the  quantity  estimated  for the
second calendar quarter of the previous forecast.

                  2.6.2.   PURCHASE  REQUIREMENTS.  Celgene shall be required to
purchase not less than one hundred  percent (100%) of the quantity of Commercial
Product  forecasted for such first calendar  quarter in the most recent forecast
under clause 2.6.1 above.

                  2.6.3.   SUPPLY  REQUIREMENTS.  Each  calendar  quarter,  Penn
shall  manufacture,  supply and deliver to Celgene such quantities of Commercial
Products as Celgene  orders  pursuant to clause 2.6.4  below,  up to one hundred
percent (100%) of the quantity  forecasted for such calendar quarter in the most
recent  forecast  under  clause'  2.6.1 above.  Penn shall use its  commercially
reasonable  efforts  to  manufacture  and supply to Celgene  any  quantities  of
Commercial  Products as Celgene orders pursuant to clause 2.6.4 below, in excess
of one hundred  percent  (100%) of the  quantity  forecasted  for such  calendar
quarter in the most recent  forecast  under clause 2.6.1  above,  provided  that
Celgene has furnished  Penn with the necessary  amount of API pursuant to clause
2.5.1 above to enable  Penn to  manufacture  the  additional  quantity.  If Penn
becomes  aware  of any  circumstances  that may  cause  Penn to  default  in its
obligation above to deliver such quantities of conforming Commercial Products as
Celgene  forecasted  for any calendar  quarter,  Penn shall give Celgene  prompt
written notice describing such circumstances, together with a proposed course of
action to remedy such  failure;  provided,  however,  that the provision of such
notice shall not relieve Penn of its delivery obligations hereunder.

                  2.6.4.   ORDERS.  Celgene shall  purchase  Commercial  Product
hereunder by submitting  firm purchase orders to Penn. Each purchase order shall
be in writing in a form  reasonably  acceptable  to Penn,  and shall specify the
Commercial Products ordered, the quantity ordered and the required delivery date
therefor,  which  shall not be less than ninety (90) days after the date of such
purchase order. The minimum size of any order for Commercial Products shall be a
single Batch with larger orders being in whole number  multiples of a Batch.  In
the event of a conflict  between the terms and  conditions of any purchase order
and this Agreement, the terms and conditions of this Agreement shall prevail.

         2.7.     STORAGE, DELIVERY AND ACCEPTANCE.

                  2.7.1.   STORAGE.  Penn shall have no  obligation to Store the
Commercial  Product and may ship the Commercial  Product to Celgene  immediately
following the Penn Approval Date.

                  2.7.2.   DELIVERY. All Commercial Products supplied under this
Agreement shall be shipped F.O.B. Penn's place of manufacture. Celgene shall pay
all freight,  insurance  charges,  taxes  (excluding  Value Added Tax  ("VAT")),
import and export duties,  inspection  fees and other charges  applicable to the
sale and transport of Commercial Products purchased by Celgene hereunder.  Title
and risk of loss  and  damages  to  Commercial  Products  purchased  by  Celgene
hereunder shall pass to Celgene upon delivery to Celgene's  designated  carrier.
Penn shall  provide a copy of a complete  and  accurate  Batch Record to Celgene
within  five  (5)  business  days  following  the  Penn  Approval  Date  for the
applicable Batch of Commercial Products.

                                       7

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

<PAGE>

                  2.7.3.   REJECTION AND CURE.

                           (i)      REJECTION.   The  Batch   Records  shall  be
accepted as complete and accurate unless Celgene notifies Penn in writing within
thirty (30) days of delivery of Commercial  Products that Celgene has determined
that either the Commercial Products do not conform to the Specifications or that
the Batch Records are not complete; provided, however, in the case of Commercial
Product  having latent  defects,  which upon diligent  examination in accordance
with all quality control testing procedures set out in the  Specifications  upon
receipt could not have been discovered,  Celgene must give notice to Penn within
twenty (20) days after  discovery  of such  defect,  setting  forth the specific
basis for such  rejection.  Upon written  notification by Celgene of a deficient
Batch Record or  Non-Conforming  Batch, Penn shall review the specific basis for
such  rejection and upon  acceptance of such  rejection,  Penn shall correct the
deficiency  to  the  Batch  Record  or  replace  the  Non-Conforming   Batch  or
non-conforming  portion  thereof  within  forty-five  (45) business days with no
additional cost to Celgene (subject to clause 2.7.3 (ii) below).

                           (ii)     DISPUTES.   If  prior  to  either  Celgene's
acceptance  of the Batch  Record,  or Celgene's  notification  to Penn of latent
defects,  the parties disagree  concerning  whether the Commercial Product meets
Specifications  or whether the Batch  Records  are  complete,  either  party may
request,  in writing,  at any time,  that an  independent  laboratory be used to
determine whether the Commercial Product meets Specifications.  Thereafter,  the
parties shall, within fourteen (14) days, promptly name a reputable and mutually
acceptable  independent  laboratory (the  "Laboratory") that has been or will be
qualified for the appropriate  testing method(s) set forth in the NDA and in the
absence of  agreement  by the  parties,  the  dispute  shall be  referred to the
laboratory used by the Home Office  Forensic  Science Service from time to time.
The  Laboratory  shall  Test the  Commercial  Product  for  compliance  with the
Specifications,  and such Test results obtained by the Laboratory shall be final
and controlling.

                           (iii)    CURE. If the Laboratory  determines that the
Commercial  Product  meets  Specifications,  Celgene  shall  (1) pay to Penn the
amount invoiced for such Commercial  Product  pursuant to clause 3.2 below,  and
all other  expenses  reasonably  attributable  or resulting  from the Laboratory
referral  and (2) pay to the  Laboratory  the amount of the fees  charged by the
Laboratory  for such  Testing.  If the  Laboratory  findings  indicate that such
sample fails to conform to the  applicable  Specifications,  then Penn shall (a)
replace  each   non-conforming   shipment  of   Commercial   Products,   or  the
non-conforming  portion thereof,  with conforming Commercial Products as soon as
reasonably  practicable  and in any event within  forty-five  (45) business days
after receipt of the Laboratory findings with no additional cost to Celgene; (b)
pay to the  Laboratory the amount of the fees charged by the Laboratory for such
Testing and all other  expenses  reasonably  attributable  or resulting from the
Laboratory  referral;  and (c) reimburse Celgene for the required additional API
necessary to manufacture conforming Commercial Product.

                  2.7.4.   COVER. If Penn fails to timely deliver to Celgene the
quantity  of  conforming  Commercial  Products  that  Celgene  orders  under any
purchase  order  pursuant to clause  2.6.4 above  (subject to clauses  2.6.3 and
2.7.3 above),  after  providing  written notice to Penn,  Celgene shall have the
right  to  purchase  substitute  Commercial  Products  from  a  third  party  in
substitution  for the  quantity of  conforming  Commercial  Products  which Penn
failed to deliver

                                       8

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

<PAGE>

hereunder.  Penn  shall  reimburse  Celgene  within  fourteen  (14) days for the
difference  between the cost of obtaining such  substitute  Commercial  Products
(plus any commercially  reasonable charges,  expenses or commissions incurred by
Celgene in connection with effecting cover,  and any other  reasonable  expenses
incident to such failure),  less the price which would have been due to Penn for
the like quantity of Commercial Products if supplied by Penn hereunder, provided
always that Celgene shall be obliged to use its reasonable commercial efforts to
purchase the substitute  Commercial  Products at the best price available in the
open market and on the best commercial terms available.  Any purchase by Celgene
under this clause 2.7.4 shall be deemed a purchase from Penn for the purposes of
calculating Celgene's annual purchase requirements hereunder.

                                   ARTICLE 3
                             PRICE AND PAYMENT TERMS

         3.1.     PRICE.   Celgene  shall  purchase  from  Penn  all  Commercial
Products  which are  accepted  pursuant  to clause 2.6 above at a price equal to
that quoted in Penn  proposal  number ***,  per Batch,  subject to clause  2.3.1
above,  clause  3.2  below  and the  Technical  Requirements  in  Exhibit D (the
"Price").  On each  anniversary  of the date of first  manufacture of Commercial
Product,  Penn may  increase  the Price based on the greater  price  increase of
either PPI or Raw Material Cost during the preceding  year. Such new Price shall
be  effective  for all  orders  received  by Penn after  written  notice of such
increase by Penn to Celgene, such notice,  showing in reasonably specific detail
the calculation of such increase.

         3.2.     INVOICING.  Upon shipment of  Commercial  Products to Celgene,
Penn shall submit invoices therefore to Celgene.  Celgene shall pay each invoice
in full  within *** days  after the date of  Celgene's  receipt of such  invoice
(subject to clause 2.7.3 above).  Invoices will be issued in US Dollars  whereby
the conversion to US Dollars will be based upon the currency  exchange rate that
is  prevailing  on the day the invoice is issued as published  in the  Financial
Times.

         3.3.     SALES AND USE TAXES.  Celgene shall be solely  responsible for
the  payment of all  federal,  state,  or local  sales,  use,  excise or similar
charge,  or other tax assessment  (other than that assessed against income,  and
VAT),  assessed or charged on the sale of  Commercial  Products sold pursuant to
this Agreement.

         3.4.     AUDIT RIGHT.  Upon the written request of Celgene and not more
than once in each  calendar  year,  Penn shall permit an  independent  certified
public accounting firm,  selected by Celgene and reasonably  acceptable to Penn,
to have access  during normal  business  hours to such of the records of Penn as
may be reasonably  necessary to verify the accuracy of Penn's calculation of any
price  increase  hereunder for any period ending not more than  thirty-six  (36)
months prior to the date of such request.  The accounting firm shall disclose to
Celgene  only  whether  the  calculations  are  correct or not and the  specific
details concerning any discrepancies. If such accounting firm concludes that the
price increase was overstated  during the audited  period,  Penn shall reimburse
Celgene for the amount  overpaid  by Celgene  hereunder  for such period  within
thirty (30) days of the date  Celgene  delivers to Penn such  accounting  firm's
written report.  The fees and expenses  charged by such accounting firm shall be
paid by  Celgene;  PROVIDED,  HOWEVER,  if the  audit  discloses  that the price
increase  was  overstated  during the audited

                                       9

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

<PAGE>

period by more than five percent (5%), then Penn shall pay the accounting firm's
reasonable fees and expenses.

                                   ARTICLE 4
                       FURTHER OBLIGATIONS OF THE PARTIES

         4.1.     REGULATORY   CORRESPONDENCE.   Penn  and  Celgene  shall  make
available (or cause to be made  available) to each other as soon as  practicable
(but in any event within five (5) days) of receipt of regulatory  correspondence
regarding  regulatory  letters,  recalls,  adverse  experiences  and  all  other
regulatory  correspondence  bearing on the safety and efficacy of the Commercial
Products which may concern chemistry, manufacturing and control (CMC) issues.

         4.2.     PRODUCT INQUIRIES AND COMPLAINTS. Celgene will promptly submit
to Penn all Commercial Product safety and efficacy inquiries, Commercial Product
quality  complaints  and  adverse  drug event  reports  received by it which may
concern CMC issues,  together with all available  evidence and other information
relating  thereto.   Except  as  otherwise   required  by  law  or  governmental
regulation,  Celgene will be responsible for investigating and responding to all
such inquiries,  complaints and adverse events regarding  Commercial Product. It
shall be the  responsibility  of Celgene to comply with all  federal,  state and
local  governmental  reporting  requirements  regarding  adverse drug events and
Commercial  Product  quality  matters,  except  where such events or matters are
caused by acts or omissions of Penn, in which case Celgene may,  consistent with
applicable law and  regulation,  request Penn's  assistance in such  compliance.
Celgene will forward a copy of FDA submissions  concerning CMC issues within ten
(10) business days of submission.

         4.3.     RECALL. In the event either party believes it may be necessary
to conduct a recall,  field correction,  market withdrawal,  stock recovery,  or
other similar action with respect to any Commercial  Products which were sold by
Penn or its  Affiliates  to Celgene or its  Affiliates  under this  Agreement (a
"Recall"),  Penn and  Celgene  shall  consult  with each other as to how best to
proceed, it being understood and agreed that the final decision as to any Recall
of any Commercial Product shall be made by Celgene; provided, however, that Penn
shall not be prohibited  hereunder from taking any action that it is required to
take by applicable law. Celgene shall bear all costs in connection with any such
Recall; provided,  however, that Penn shall reimburse Celgene for all reasonable
out-of-pocket  expenses  incurred by Celgene in connection  with any such Recall
attributable  to any  negligence  on the  part of Penn or as a  result  a latent
defect as set out in clause 2.7.3.

         4.4.     RESPONSE TO COMPLAINTS AND/OR ADVERSE DRUG EVENTS. Pursuant to
any reported  complaint and/or adverse drug event, if the nature of the reported
complaint  and/or adverse drug event requires  Testing,  Penn will, at Celgene's
reasonable  request and expense,  perform  analytical  Testing  according to the
Specifications  of  corresponding  retention  samples  and  provide  the results
thereto to Celgene as soon as reasonably  practicable;  PROVIDED,  HOWEVER, Penn
shall be responsible  for the reasonable  costs of such Testing and reporting to
the FDA or any other  governmental  regulatory  agency if it is determined  that
such  reported  complaint  and/or  adverse  drug  event is  attributable  to any
negligence  on the part of Penn or as a result of a latent  defect as set out in
clause 2.7.3.

                                       10

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

<PAGE>

         4.5.     ADDITIONAL WORK. If Celgene requires additional work from Penn
related to the  Commercial  Products not specified  herein,  including,  but not
limited  to,  stability  testing,  such work,  if  accepted  by Penn in its sole
discretion,  shall be  accomplished  on a purchase order basis and is beyond the
scope of this Agreement.

                                   ARTICLE 5
                         REPRESENTATIONS AND WARRANTIES

         5.1.     GENERAL WARRANTIES.  Each party hereby represents and warrants
to the other party as follows:

                  5.1.1.   CORPORATE EXISTENCE. Such party is a corporation duly
organized,  validly  existing  and  in  good  standing  under  the  laws  of the
jurisdiction in which it is incorporated.

                  5.1.2.   AUTHORIZATION  AND ENFORCEMENT OF  OBLIGATIONS.  Such
party (a) has the  corporate  power and  authority  and the legal right to enter
into this Agreement and to perform its obligations hereunder,  and (b) has taken
all  necessary  corporate  action on its part to  authorize  the  execution  and
delivery of this  Agreement and the  performance of its  obligations  hereunder.
This Agreement has been duly executed and delivered on behalf of such party, and
constitutes a legal, valid,  binding obligation,  enforceable against such party
in accordance with its terms.

                  5.1.3.   CONSENTS.  All  necessary  consents,   approvals  and
authorizations of all governmental  authorities and other Persons required to be
obtained by such party in connection with its performance of this Agreement have
been obtained.

                  5.1.4.   NO  CONFLICT.  The  execution  and  delivery  of this
Agreement and the performance of such party's  obligations  hereunder (a) do not
conflict with or violate any requirement of applicable laws or regulations,  and
(b)  do  not  conflict  with,  or  constitute  a  default  under,  any  material
contractual obligation of such party.

                  5.1.5.   INSURANCE.  Each party shall  maintain  comprehensive
general  liability  insurance,  including  product  liability  insurance against
claims regarding the manufacture of Commercial Products under this Agreement, in
such amounts as it customarily  maintains for similar  products and  activities.
Each party shall maintain such  insurance  during the term of this Agreement and
thereafter  for so long as it  customarily  maintains  insurance  for itself for
similar  products and  activities.  Each party shall  provide the other proof of
such  insurance  upon the request of the other party from time to time, and give
the  other  party  at  least  thirty  (30)  days  notice  of  any  cancellation,
termination  or  change  in  such  insurance.  Either  party  may  substitute  a
self-insurance   program  on  notice  to  the  other   party  with   information
demonstrating to the reasonable  satisfaction of the other party the adequacy of
such program.

         5.2.     PENN'S  WARRANTIES.  During the term of this  Agreement,  Penn
hereby represents and warrants as follows:

                  5.2.1.   MANUFACTURING  METHODS.  Penn  shall  Process,  Test,
Package and Label the  Commercial  Products in accordance  with the Master Batch
Record, and with any regulations

                                       11

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

<PAGE>

applicable to the manufacture of the Commercial Product of the FDA and any other
applicable U.S. regulatory  agencies.  The Commercial Product shall, at the time
it is shipped to Celgene,

                           (i)      not be adulterated or misbranded  within the
meaning of the FFDCA or within the meaning of any applicable  state or municipal
law in which the definitions of adulteration  and misbranding are  substantially
the same as those contained in the FFDCA;

                           (ii)     not be articles that may not,  under Section
505 of the FFDCA or any  other  provision  of the FFDCA or any other  applicable
law, statute or regulation, be introduced into interstate commerce;

                           (iii)    have  been  manufactured,   processed,   and
packed in  compliance  with all  requirements  under the FFDCA  (including  drug
establishment  registration and applicable good manufacturing practice) or under
any other applicable laws, rules, or regulations of the United States; and

                           (iv)     conform  to  the   Specifications   for  the
Commercial Products as documented on the Master Batch Record

                  5.2.2.   REGULATORY  COMPLIANCE.  Penn  shall  comply  in  all
material respects with any law, regulation, ordinance, order, injunction, decree
or  governmental  requirement  applicable to the  manufacture  of the Commercial
Product,  the  handling  of the  Hazardous  Waste  prior to pick-up by the waste
contractor, and the handling and disposal of the Non-Hazardous Waste.

                  5.2.3.   LICENSING REQUIREMENTS. Penn shall maintain in effect
all required governmental permits, licenses, orders,  applications and approvals
necessary for the Processing,  Testing,  Packaging,  and Labeling and Penn shall
Process, Test, Package and Label in accordance with all such permits,  licenses,
orders, applications and approvals.

                  5.2.4.   PROMPT  RESPONSE.  Penn shall promptly respond to all
reasonable inquiries from Celgene pertaining to the Commercial Product.

                  5.2.5.   PROMPT   DELIVERY.   Without   limiting   the   other
provisions of this Agreement, Penn shall use its commercially reasonable efforts
at all times to minimize Commercial Product delivery time.

                  5.2.6.   DISCLAIMER.  PENN MAKES NO OTHER WARRANTIES,  EXPRESS
OR  IMPLIED,  WITH  RESPECT  TO  THE  COMMERCIAL  PRODUCTS  INCLUDING,   WITHOUT
LIMITATION,  ANY  WARRANTY  OF  MERCHANTABILITY  OR  WARRANTY  OF FITNESS  FOR A
PARTICULAR PURPOSE.

         5.3.     CELGENE'S  WARRANTIES.  During  the  term of  this  Agreement,
Celgene hereby represents and warrants as follows:

                  5.3.1.   API  Integrity.  The  API  shall,  at the  time it is
shipped to Penn,

                                       12

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

<PAGE>

                           (i)      not be adulterated or misbranded  within the
meaning of the FFDCA or within the meaning of any applicable  state or municipal
law in which the definitions of adulteration  and misbranding are  substantially
the same as those contained in the FFDCA;

                           (ii)     not be articles that may not,  under Section
505 of the FFDCA or any  other  provision  of the FFDCA or any other  applicable
law, statute or regulation, be introduced into interstate commerce;

                           (iii)    have  been  manufactured,   processed,   and
packed in  compliance  with all  requirements  under the FFDCA  (including  drug
establishment  registration and applicable good manufacturing practice) or under
any other applicable laws, rules, or regulations of the United States; and

                           (iv)     conform to the Specifications for the API as
documented on the certificate of analysis included with each delivery of API.

                  5.3.2.   PROMPT  RESPONSE.  Celgene shall promptly  respond to
all reasonable inquiries from Penn pertaining to the Commercial Products.

                  5.3.3.   REGULATORY   DOSSIERS.   Celgene   shall  assume  all
responsibility  for  maintaining  the DMF,  NDA,  and any  supplements  thereto,
including making additional filings with the FDA.

                  5.3.4.   NECESSARY  LICENSES.  Celgene shall, at its own cost,
obtain and maintain any and all Federal and state  licenses  with respect to the
marketing, sale and distribution of the Commercial Products.

                                   ARTICLE 6
                          INDEMNIFICATION AND LIABILITY

         6.1.     PENN'S INDEMNITY  OBLIGATIONS.  Subject to clauses 6.2 and 6.5
below, Penn shall indemnify and hold harmless Celgene,  its Affiliates and their
respective  successors  and  permitted  assigns  (and the  respective  officers,
directors, stockholders,  partners and employees of each) (together the "Celgene
Indemnitees") from and against any and all costs, losses,  liabilities,  claims,
actions,  proceedings,   damages  and  expenses  (including  without  limitation
reasonable  attorneys' fees and expenses) (herein  "Damages") to the extent that
such  Damages  relate to or arise  (a) from the  manufacture  of the  Commercial
Products by Penn not in conformance with the Master Batch Record, (b) any breach
by Penn or its  Affiliates of this  Agreement;  or (c) any breach by Penn of any
representation, warranty or obligation herein, provided however, Penn shall have
no obligation to indemnify  Celgene to the extent such Damages  relate to Penn's
use or any use by Penn's Affiliates of the Intellectual Property

         6.2.     EXCLUSION OF LIABILITY.  Subject to clause 6.4,  neither party
shall  under  any   circumstances  be  liable  for  any  indirect,   special  or
consequential  loss, or loss of anticipated  profit or loss of profit  howsoever
arising whether in contract,  tort (including negligence) or breach of statutory
duty or otherwise except with respect to the indemnity  obligations provided for
under  clauses  6.1  and  6.3 as they  may  relate  to  damages  awarded  and/or
settlement  monies paid to third

                                       13

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

<PAGE>

parties in relation to death or personal  injury  claims  asserted by such third
parties ("Third Party Damages") arising out of negligence or willful  misconduct
and consequently, for the avoidance of doubt:

         nothing in this Agreement shall limit the type of Damages against which
the  Celgene  Indemnitees  are  entitled  to be  indemnified  and held  harmless
pursuant  to clause 6.1 to the extent  that such  Damages  comprise  Third Party
Damages caused by Penn's negligence or willful misconduct; and

         nothing in this Agreement shall limit the type of Damages against which
the Penn  Indemnitees are entitled to be indemnified and held harmless  pursuant
to clause 6.3 to the extent  that such  Damages  comprise  Third  Party  Damages
caused by Celgene's negligence or willful misconduct.

         6.3.     CELGENE'S INDEMNITY  OBLIGATIONS.  Celgene shall indemnify and
hold  harmless  Penn,  its  Affiliates,  and  their  respective  successors  and
permitted  assigns  (and  the  respective  officers,  directors,   stockholders,
partners and employees of each) (together the "Penn  Indemnitees")  and keep the
Penn Indemnitees  indemnified  against all Damages (including but not limited to
any  Damages  arising  out of  claims,  actions or  litigation  brought by third
parties relating to the use of Intellectual  Property by any Penn Indemnitee) in
connection  with or arising out of any use of any API or Commercial  Products by
any Penn Indemnitee, Celgene or any third party (which third party shall include
but not be limited to permitted  sub-contractors  assigns and agents in addition
to consumers and end-users)  provided that this  indemnity  shall not operate to
the extent  that such  Damages  have  arisen out of (a) the  manufacture  of the
Commercial  Products not in conformance with the Master Batch Record, or (b) any
breach by any Penn Indemnitee of this Agreement,  including any  representation,
warranty or obligation herein. Said "any use of any API or Commercial  Products"
with respect to any Penn Indemnitee shall mean any use that occurs in the course
of performing under this Agreement.

         6.4.     NO  EXCLUSION.  Notwithstanding  any other  provision  of this
Agreement  neither party seeks to exclude  liability for loss arising from death
or personal injury caused by negligence or willful misconduct.

         6.5.     LIMITATION OF  LIABILITY.  Subject to clause 6.4 the aggregate
liability of Penn (whether in contract, tort (including negligence) or breach of
statutory  duty or  otherwise) to Celgene for any Damages  (whether  asserted by
Celgene or third parties) of whatever nature and however caused,  other than any
Third Party Damages,  shall be limited to and in no  circumstances  shall exceed
the greater of:

         two times the Price paid to Penn for the Commercial Products from which
such damage flowed; or

         in relation to a bona fide claim  brought  against  Penn for which Penn
has insurance, monies recovered by Penn from its insurers; or

                                       14

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

<PAGE>

         in relation to a bona fide claim  brought  against  Penn for which Penn
has insurance,  monies which would have been recovered by Penn from its insurers
had Penn taken all  appropriate  steps in a timely  manner to make a claim under
any relevant insurance policy.

         6.6.     PROCEDURES.  A party (the  "indemnitee") that intends to claim
indemnification   under  this  clause  6  shall  notify  the  other  party  (the
"indemnitor")  promptly in writing of any action,  claim or liability in respect
of which  the  indemnitee  believes  it is  entitled  to claim  indemnification,
provided  that the failure to give  timely  notice to the  indemnitor  shall not
release the indemnitor from any liability to the indemnitee except to the extent
the indemnitor is prejudiced  thereby.  The indemnitor  shall have the right, by
notice to the  indemnitee,  to assume the  defense  of any such  action or claim
within the fifteen (15) day period after the  indemnitor's  receipt of notice of
any action or claim with counsel of the indemnitor's choice and at the sole cost
of the indemnitor. If the indemnitor so assumes such defense, the indemnitee may
participate  therein through counsel of its choice,  but at the sole cost of the
indemnitee;  PROVIDED,  HOWEVER,  that the indemnitor  shall be obligated to pay
fees  and  expenses  of  such  indemnitee's  counsel  if  representation  of the
indemnitee by the counsel retained by the indemnitor would be inappropriate  due
to actual or potential  differing interests between the indemnitee and any other
party  represented by such counsel in the  investigation and defense of any such
action, claim or liability. The party not assuming the defense of any such claim
shall render all reasonable  assistance to the party assuming such defense,  and
all reasonable  out-of-pocket  costs of such assistance shall be for the account
of the  indemnitor.  No such  claim  shall be  settled  other  than by the party
defending  the same,  and then only with the  consent of the other  party  which
shall not be unreasonably  withheld;  provided that the indemnitee shall have no
obligation  to  consent  to any  settlement  of any such  action or claim  which
imposes on the  indemnitee  any liability or obligation  which cannot be assumed
and performed in full by the indemnitor,  and the indemnitee shall have no right
to  withhold  its consent to any  settlement  of any such action or claim if the
settlement involves only the payment of money by the indemnitor or its insurer.

         6.7.     LIMITATIONS ON  INDEMNIFICATION.  Notwithstanding any contrary
provision herein, including, but not limited to, clause 6.3 above, neither party
shall be entitled to  indemnification  with  respect to any claim or suit to the
extent such claim or suit  results  from (1) its own or any of its  Indemnitee's
gross  negligence or (2) willful  misconduct  on its or any of its  Indemnitee's
part

                                   ARTICLE 7
                        RELATIONSHIP BETWEEN THE PARTIES

         7.1.     INDEPENDENT  CONTRACTOR.  The  relationship  between  Penn and
Celgene is solely that of seller and buyer, it being  understood that each party
is acting as an  independent  contractor  for its own account and this Agreement
does not establish a joint venture,  agency,  partnership  or  employer/employee
relationship between the parties. Neither party shall have authority to conclude
contracts  or  otherwise  to act for or bind  the  other  party  in any  manner,
whatsoever,  as agent or otherwise. Any and all contracts and agreements entered
into by either  party shall be for that  party's sole account and risk and shall
not bind the other party in any respect.

                                       15

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

<PAGE>

                                   ARTICLE 8
                      CONFIDENTIALITY AND PUBLIC DISCLOSURE

         8.1.     CONFIDENTIALITY.   Except  for  literature   and   information
intended for  disclosure to  customers,  and except as may be required to obtain
government approval to manufacture,  sell or use the Commercial  Products,  each
party will treat as confidential the Confidential Information, and will take all
necessary  precautions to assure the  confidentiality of such information.  Each
party agrees to return to the other party upon the  expiration or termination of
this  Agreement  all  Confidential  Information  acquired from such other party,
except as to such  information it may be required to retain under applicable law
or regulation, and except for one (1) copy of such information to be retained by
such party's legal department solely to monitor  compliance  hereunder.  Neither
party  shall,  during  the  period  of this  Agreement  or for  five  (5)  years
thereafter,  without the other  party's  express  prior  written  consent use or
disclose any such  Confidential  Information for any purpose other than to carry
out  its  obligations  hereunder.  Each  party,  prior  to  disclosure  of  such
Confidential  Information  to any  employee,  consultant or advisor shall ensure
that such person is bound in writing to observe the  confidentiality  provisions
of this  Agreement.  The  obligations  of  confidentiality  shall  not  apply to
information  that  the  receiving  party is  required  by law or  regulation  to
disclose,  provided  however  that  the  receiving  party  shall so  notify  the
disclosing  party of its  intent  and  cooperate  with the  disclosing  party on
reasonable measures to protect the confidentiality of the information.

         8.2.     PUBLIC  DISCLOSURE.  Except for such  disclosure  as is deemed
necessary,  in the  reasonable  judgment of a party,  to comply with  applicable
laws,  no  announcement,   news  release,  public  statement,   publication,  or
presentation  relating to the existence of this  Agreement,  the subject  matter
hereof, or either party's  performance  hereunder will be made without the other
party's  prior  written  approval,  which  approval  shall  not be  unreasonably
withheld or delayed.

                                   ARTICLE 9
                              TERM AND TERMINATION

         9.1.     TERM. Unless terminated  earlier pursuant to clause 9.2 below,
the initial term of this Agreement  shall expire on the date *** years after the
date  hereof;  PROVIDED,  HOWEVER,  that  the  term of this  Agreement  shall be
automatically  extended  for  up to  ***  successive  additional  terms  of  ***
thereafter  unless  either  party  gives to the other not less than ***  written
notice of  termination  prior to the  expiration  of the  initial  term,  or any
additional term, of this Agreement.

         9.2.     TERMINATION.

                  9.2.1.   BY  EITHER  PARTY.  A party  shall  have the right to
terminate this Agreement,  upon or after the breach of any material provision of
this  Agreement  by the other party if the other party has not cured such breach
within thirty (30) days (or ten (10) days in event of a payment  default)  after
receipt of written notice thereof from the  non-breaching  party describing such
breach in reasonable detail.

                  9.2.2.   BY CELGENE. Celgene shall have the right to terminate
this  Agreement,  on sixty (60) days  written  notice to Penn,  if Penn fails to
deliver to Celgene such quantities of

                                       16

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

<PAGE>

conforming  Commercial Products as Celgene orders pursuant to clause 2.6.4 above
(subject  to clause  2.6.3  above)  for any two (2) out of four (4)  consecutive
calendar quarters.

                  9.2.3.   EFFECT OF EXPIRATION AND  TERMINATION.  Expiration or
termination  of this  Agreement  shall not relieve the parties of any obligation
accruing  prior to such  expiration or  termination.  The  provisions of clauses
2.5.5,  2.5.6,  2.7.3,  2.7.4, 3.4, 4.3, 4.4, 5.1.5,  5.2.4, 5.3.2 and 9.2.3 and
Articles  6, 8 and 10  shall  survive  any  expiration  or  termination  of this
Agreement. Upon termination or expiration,  each party shall immediately deliver
to the other (and cause each of its employees,  agents and representatives to so
deliver),  at such party's expense,  all  Confidential  Information of the other
party, including without limitation any and all copies, duplications,  summaries
and/or notes thereof or derived therefrom,  regardless of the format,  except as
to such  information  it may be  required  to  retain  under  applicable  law or
regulation,  and except for one (1) copy of such  information  to be retained by
such  party's  legal  department  solely to monitor  compliance  hereunder.  The
following purchase obligations shall survive Termination under this clause 9.2:

                           (i)      In  the  event  that  Penn  terminates  this
Agreement  pursuant to clause 9.2.1 (Celgene's  breach),  Celgene shall purchase
Penn's inventory of Raw Materials, Packaging, Labeling, In-Process Materials and
Commercial  Products  that conform to the Master Batch Record at the prices paid
by Penn for such items, as reasonably documented by Penn.

                                   ARTICLE 10
                                  MISCELLANEOUS

         10.1.    FORCE MAJEURE.  Neither party shall incur any liability to the
other to the extent  that it is delayed in the  performance  of its  obligations
hereunder  solely by force  majeure.  For the purpose of this  Agreement  "force
majeure"  shall  mean any cause of delay  beyond the  reasonable  control of the
party liable to perform unless  conclusive  evidence to the contrary is provided
and  shall  include  but  not  be  limited  to  strikes,  lockouts,   industrial
disturbance,  riots,  sabotage,  act of war or piracy,  destruction of essential
equipment  by fire,  explosion,  storm,  flood,  earthquake,  or delay caused by
failure of power supplies or transport facilities, inability to obtain materials
(that is beyond Penn's control) or government  action  including but not limited
to priorities and quotas.

         10.2.    NOTICES.  All notices or other  communications  given pursuant
hereto by one party  hereto to the other  party  shall be in writing  and deemed
given  (a) when  delivered  by  messenger,  (b) when sent by  telecopier,  (with
receipt confirmed), (c) when received by the addressee, if sent by Express Mail,
Federal Express or other express delivery service  (receipt  requested),  or (d)
five  days  after  being  mailed  in  the  U.S.,  first-class  postage  prepaid,
registered  or  certified,  in  each  case  to  the  appropriate  addresses  and
telecopier  numbers set forth below (or to such other  addresses and  telecopier
numbers as a party may designate as to itself by notice to the other party):

         If to Penn, to it at:

         Penn Pharmaceutical Services Ltd
         Unit 23 & 24
         Tafarnaubach Industrial Estate

                                       17

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

<PAGE>

         Tredegar,
         Gwent
         NP22 3AA
         Attention: ***
         Telecopier: +44 1495 713616

         with a copy to:

         Addleshaw Goddard
         100 Barbirolli Square
         Manchester,
         M2 3AB
         Attention: ***
         Telecopier No.: +44 161 934 6060

         If to Celgene, to it at:

         Celgene Corporation
         7 Powder Horn Drive
         Warren, NJ 07059
         Attention: Chief Operating Officer
         Telecopier No.: (732) 271-4184

         with a copy to:

         Proskauer Rose, LLP
         1585 Broadway
         New York, NY 10036
         Attention: ***
         Telecopier No.: (212) 969-2900

         10.3.    ASSIGNMENT.  Neither  party  shall  assign  or  transfer  this
Agreement  to any Person,  in whole or in part,  provided  that,  each party may
assign or transfer this Agreement to any Affiliate or to any successor by merger
of such party or its pharmaceutical business to which this Agreement relates, or
upon a sale of all or substantially all of such parties assets, or the assets of
its pharmaceutical  business to which this Agreement relates,  without the prior
written  consent of the other party hereto (not to be  unreasonably  withheld or
delayed).  All of the terms and  provisions of this  Agreement  shall be binding
upon and inure to the benefit of and be  enforceable  by the parties  hereto and
their respective successors and permitted assigns.

         10.4.    SEVERABILITY. If any portion of this Agreement is held invalid
by a court of competent  jurisdiction,  such portion shall be deemed to be of no
force and effect and the Agreement shall be construed as if such portion had not
been  included  herein,  provided  however,  if the  deletion of such  provision
materially  impairs the commercial  value of this Agreement to either party, the
parties shall attempt to renegotiate such provision in good faith.

                                       18

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

<PAGE>

         10.5.    ENTIRE  AGREEMENT.  This  Agreement and all Exhibits  attached
hereto contain the sole and entire  agreement and  understanding  of the parties
hereto  and their  respective  Affiliates  and  representatives  related  to the
subject  matter hereof and supersede all oral or written  agreements  concerning
the subject matter made prior to the date of this Agreement.

         10.6.    AMENDMENT:  WAIVER. This Agreement cannot be amended, changed,
modified or  supplemented  orally,  and no amendment,  change,  modification  or
supplement of this Agreement shall be recognized nor have any effect, unless the
writing  in which it is set forth is signed by Penn and  Celgene,  nor shall any
waiver of any of the provisions of this Agreement be effective unless in writing
and signed by the party to be charged therewith.  The failure of either party to
enforce,  at any time, or for any period of time,  any  provision  hereof or the
failure of either party to exercise any option  herein shall not be construed as
a waiver of such  provision  or option and shall in no way affect  that  party's
right to enforce  such  provision  or  exercise  such  option.  No waiver of any
provision  hereof  shall be deemed to be, or shall  constitute,  a waiver of any
other provision, or with respect to any succeeding breach of the same provision.

         10.7.    GOVERNING LAW, DISPUTE RESOLUTION, ARBITRATION. This Agreement
shall be governed by, and construed in accordance with, the laws of the State of
New Jersey  and the  United  States,  as though  made and to be fully  performed
therein without regard to conflicts of laws principles thereof.

         The  parties  shall  initially  attempt in good  faith to  resolve  any
significant  controversy,  claim, allegation of breach or dispute arising out of
or  relating  to  this  Agreement  (hereinafter  collectively  referred  to as a
"Dispute") through  negotiations  between senior executives of Celgene and Penn.
If the Dispute is not resolved  within thirty (30) days (or such other period of
time  mutually  agreed  upon by the  parties)  of  notice  of the  Dispute  (the
"Executive Resolution Period"),  then the parties agree to submit the Dispute to
arbitration as provided herein. Unless otherwise mutually agreed by the parties,
only if the Dispute is not resolved  through  negotiations  as set forth herein,
may a party resort to arbitration.

         All Disputes  relating in any way to this  Agreement  shall be resolved
exclusively  through  arbitration  conducted in accordance  with the  Commercial
Arbitration Rules of the American Arbitration  Association as then in effect. In
the event either party  demands  arbitration,  it shall do so within thirty (30)
days after the  expiration of the Executive  Resolution  Period (or any mutually
agreed  extension)  and shall  include a request that such  arbitration  be held
within thirty (30) days of such demand. The arbitration hearing shall be held as
soon as practicable.  The arbitration hearing shall be held in Chicago, Illinois
and shall be before a single  arbitrator  selected by the parties in  accordance
with the Commercial  Arbitration Rules of the American  Arbitration  Association
pursuant to its rules on selection of arbitrators. The arbitrator shall render a
formal,  binding,   non-appealable   resolution  and  award  on  each  issue  as
expeditiously  as possible  but not more than ten (10)  business  days after the
hearing.  In  any  arbitration,  the  prevailing  party  shall  be  entitled  to
reimbursement  of its reasonable  attorneys'  fees and the parties shall use all
reasonable efforts to keep arbitration costs to a minimum.

         10.8.    SINGULAR AND PLURAL FORMS. The use herein of the singular form
shall also denote the plural  form,  and the use herein of the plural form shall
denote the singular form, as in each case the context may require.

                                       19

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

<PAGE>

         10.9.    HEADINGS.  The headings  contained in this  Agreement  are for
convenience  of reference only and shall not constitute a part hereof or define,
limit or otherwise affect the meaning of any of the terms or provisions hereof.

         10.10.   NO THIRD PARTY  BENEFICIARIES.  Except as expressly  set forth
herein,  this Agreement shall not create, or be construed to create,  any rights
enforceable by any Person not a party to this Agreement.

         10.11.   COUNTERPARTS.   This  Agreement  maybe  executed  in  two  (2)
counterparts, each of which shall be deemed an original, but both of which, when
taken together, shall constitute one and the same instrument.

                            [SIGNATURE PAGE FOLLOWS]

                                       20

*** - 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 caused  this  Agreement  to be
executed by their respective duly authorized officers as of the date first above
written.

                           PENN PHARMACEUTICAL SERVICES LTD

                           By:   ***
                              --------------------------------------------------

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

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

                           CELGENE CORPORATION

                           By:   ***
                              --------------------------------------------------

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

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

                                       21

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

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