Document:

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                                                                   EXHIBIT 10.14

                               DATED 29 MAY , 2002

                         SCHERING AKTIENGESELLSCHAFT (1)

                                     - and -

                                PHARMION GMBH (2)

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                     INTERIM SALES REPRESENTATION AGREEMENT

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<TABLE>
<CAPTION>
                                   PAGE INDEX
<S>      <C>                                                                    <C>
1.       DEFINITIONS                                                             4
2.       APPOINTMENT OF PHARMION                                                 6
3.       EXISTING MARKETING AUTHORIZATIONS                                       7
4        DEVELOPMENT AND COMMERCIALIZATION EFFORTS IN TERRITORY                  9
5.       COORDINATION OF DEVELOPMENT; ADDITIONAL INDICATIONS                    10
6.       CONSIDERATION                                                          10
7.       MANUFACTURE AND SUPPLY OF PRODUCT                                      11
8.       PRODUCT RETURNS                                                        12
9.       FORECASTING AND ORDERING                                               12
10.      PACKAGING AND LABELING; USE OF NAME                                    14
11.      QUALITY OF PRODUCT                                                     15
12.      DELIVERY                                                               16
13.      SUPPLY PRICE                                                           17
14.      INVENTORY                                                              17
15.      ADVERSE REPORTS; COMPLAINTS                                            19
16.      UNDERTAKINGS OF PHARMION; IMPROVEMENTS                                 20
17.      UNDERTAKINGS AND WARRANTIES OF SCHERING                                20
18.      RIGHT OF FIRST REFUSAL                                                 20
19.      CONFIDENTIALITY                                                        20
20.      INDEMNITIES AND INSURANCE                                              20
21.      DURATION AND TERMINATION                                               20
22.      CONSEQUENCES OF TERMINATION                                            21
23.      RIGHTS AND REMEDIES                                                    21
24.      FORCE MAJEURE                                                          21
25.      NOTICE                                                                 22
26.      ENTIRE AGREEMENT; VARIATIONS                                           22
27.      ADDITIONAL TERMS                                                       22
28.      GUARANTEE                                                              23
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                     INTERIM SALES REPRESENTATION AGREEMENT

THIS AGREEMENT is made the 29th day of May 2002

BETWEEN:

(1)      SCHERING AKTIENGESELLSCHAFT, a company registered in Germany and having
         its principal place of business at 13342 Berlin, Germany ("Schering")
         and

(2)      PHARMION GMBH, a company registered in Switzerland and having its
         Registered Office at Centralbahnstrasse 7, Basel 4010, Switzerland
         ("Pharmion")

RECITALS:

(A)      Schering is the owner or licensee of patents and trade marks relating
         to the Product (as hereinafter defined), and is currently marketing and
         selling the Product for the Initial Indication (as hereinafter
         defined), through an affiliated company, in North America.

(B)      Schering is the holder or is entitled to be registered as the holder of
         Marketing Authorizations (as hereinafter defined) for the Product in
         various countries of the Territory (as hereinafter defined), and is in
         a position to supply Product to Pharmion for distribution in the
         Territory on the terms hereinafter described.

(C)      Pharmion's personnel have expertise and experience in the development,
         registration, marketing and distribution of pharmaceutical products in
         the Territory.

(D)      Pharmion wishes to obtain rights to distribute the Product under the
         Trade Marks (as hereinafter defined) for the Initial Indication, and in
         coordination with Schering to develop the Product, obtain Marketing
         Authorizations for and distribute the Product under the Product Patents
         for Additional Indications (both as hereinafter

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         defined) in the Territory, and Schering is willing to grant such rights
         to Pharmion and to supply Product to Pharmion consistent with
         Schering's priority to supply Product for the Schering Territory (as
         hereinafter defined), all on the terms and conditions set out in this
         Agreement.

(E)      Pharmion acknowledges that Schering has certain manufacturing supply
         issues and that its immediate corporate objective is to assure an
         adequate supply of Product for sale in the Schering Territory; and both
         Parties have entered into this Agreement as an interim measure, pending
         a timely resolution of such manufacturing supply issues.

(F)      Schering and Pharmion have, today, entered into a Distribution and
         Development Agreement that is intended to come automatically into
         effect if such manufacturing supply issues can be resolved during the
         term of this Interim Sales Representation Agreement.

IT IS HEREBY AGREED AS FOLLOWS:

1.       DEFINITIONS AND INTERPRETATION

1.1      Capitalized terms not otherwise defined in this Agreement shall have
         the meanings ascribed to such terms in the Final Agreement, all of the
         definitions of which are hereby incorporated by reference. In addition,
         in this Agreement, the following terms shall have the following
         meanings unless the context requires otherwise:

         "AVENTIS SERVICES AGREEMENT" means the Sales Commission Services
         Agreement between Schering and Aventis Pharma Deutschland GmbH dated
         July 27, 2001.

         "FINAL AGREEMENT" means the Distribution and Development Agreement
         between Schering and Pharmion executed concurrently with this Agreement
         on the date hereof.

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         "INCEPTION DATE" means the first day of the calendar month following
         the month in which this Agreement has been executed and delivered.

         "INITIAL TERM" shall have the meaning provided in Section 21.1.

         "INVENTORY" means all of Schering's inventories of Product Manufactured
         for the Territory, consisting of Finished Goods packaged with Aventis
         labeling.

         "INVENTORY VALUE" has the meaning set out in Section 14.2 herein.

         "RENEWAL TERM" shall have the meaning provided in Section 21.1 herein.

         "REQUESTED ORDER" shall have the meaning set out in Section 9.2.2
         herein.

         "SHORT-DATED" means, with respect to Inventory, Inventory having a
         remaining shelf life as of the Inception Date of less than six months.

1.2      Construction and Interpretation

         In the interpretation of this Agreement:

         1.2.1    the headings are for convenience only and shall not affect the
                  interpretation hereof;

         1.2.2    references in this Agreement to Sections, Schedules and
                  Exhibits are to the sections of, and schedules and exhibits
                  to, this Agreement, except insofar as references are contained
                  in sections in this Agreement which are incorporated by
                  reference to the Final Agreement, in which case those
                  references are references to sections of, and schedules and
                  exhibits to the Final Agreement;

         1.2.3    unless the context otherwise requires the singular shall
                  include the plural and vice versa, reference to any gender
                  shall include reference to the

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                  other gender, and references to persons shall include bodies
                  corporate, unincorporated associations and partnerships;

         1.2.4    this Agreement includes the Schedules and Exhibits hereto; and

         1.2.5    all provisions in this Agreement which are incorporated by
                  reference to the Final Agreement shall have the same effect in
                  this Agreement as if such provisions had been set forth
                  verbatim in this Agreement.

2.       APPOINTMENT OF PHARMION

2.1      Subject to the terms and conditions of this Agreement, with effect from
         the Inception Date, Schering hereby grants to Pharmion the exclusive
         right:

2.1.1    to purchase the Product from Schering for resale in the Territory;

2.1.2    to advertise, market, promote, distribute, use and sell the Product
         under and by reference to the Trade Marks and under the Patents in the
         Territory for the Initial Indication and for any Additional Indications
         that are approved by the Development and Marketing Committee and
         covered by an appropriate Marketing Authorization in the country of
         sale;

2.1.3    to use the Data to apply for, obtain and or maintain Marketing
         Authorizations for the Product in the Initial Indication in countries
         in the Territory where there are no Existing Marketing Authorizations
         and in which it is commercially reasonable for Pharmion to do so;

2.1.4    to develop the Product under the Product Patents, Data and Improvements
         for any Additional Indications approved by the Development and
         Marketing Committee and to assist Schering in applying for and
         obtaining Marketing Authorizations for the sale of the Product for such
         Additional Indications in such countries within the Territory in which
         Pharmion deems it commercially reasonable to do so.

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2.1.5    to use the Product Marketing Materials in connection with the
         advertising, marketing, promotion and distribution of the Product in
         the Territory.

2.2      The provisions of Section 2.3 of the Final Agreement is hereby
         incorporated by reference into this Agreement.

2.3      From and after the Inception Date, Schering will transfer or procure
         the transfer to Pharmion of such elements of the Data, as well as the
         then current Product Marketing Materials, which Pharmion may request
         from time to time, all such materials having been provided by Aventis.
         To the extent needed by Pharmion or its Recognized Agents to be able to
         distribute the Product in given countries within the Territory,
         Schering will also procure the transfer to Pharmion of all available
         regulatory documentation relating to the Product for such countries,
         such documentation to include paper files and, if available, electronic
         versions. During the term of this Agreement, each Party shall, upon the
         reasonable request of the other, transfer such data developed by such
         Party as comprise Improvements, as well as such new Product Marketing
         Materials as have been developed by such Party. All such transfers
         shall be coordinated through the Development and Marketing Committee,
         and each Party shall have the right, consistent with Agency regulations
         in the countries within the Territory or the Schering Territory, to use
         the Product Marketing Materials developed by the other within its own
         territory.

3.       EXISTING MARKETING AUTHORIZATIONS

3.1      Schering will maintain the Existing Marketing Authorizations, and
         Schering shall bear all costs and expenses incurred in connection with
         such maintenance. Schering will appoint Pharmion or its designated
         Recognized Agent as Schering's exclusive distributor or subdistributor
         of the Product in the countries within the Territory.

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         Schering shall notify Pharmion in advance of any meeting related to the
         Product between Schering and any regulatory Agency in the Territory or
         the Schering Territory where, in the reasonable judgment of Schering,
         any such meeting could have an adverse effect on the development or
         sale by Pharmion of the Product in the Territory or the Manufacture and
         supply of the Product.

3.2      Schering shall keep Pharmion informed of any changes to the Existing
         Marketing Authorizations which Schering wishes to make or is required
         to make by an Agency in the Territory. However, in case an EMEA request
         disables the implementation of requirements of an Agency in the
         Schering Territory, then Schering may object to a change to the
         Existing Marketing Authorizations and the Parties will negotiate in
         good faith to solve this issue. In the event that a change requested by
         Pharmion and consented to by Schering or required by an Agency should
         require Schering to make any process or production changes, Schering
         shall make such change, and all incremental costs incurred by Schering
         in making and implementing such change shall be borne by Pharmion.
         However, if such change is also required by an Agency in the Schering
         Territory, then Schering and Pharmion shall share equally the cost of
         any such change. Schering will keep Pharmion informed of Manufacturing
         or other changes to the Product reportable to an Agency, including
         without limitation those changes submitted to the U.S. or Canadian
         Agency.

3.3      In case Pharmion exercises its rights pursuant to Section 2.1.3 of this
         Agreement Pharmion shall bear all costs and expenses incurred in
         connection with the application and maintenance of such Marketing
         Authorizations. Pharmion shall keep Schering informed about any such
         application for a Marketing Authorization.

3.4      The provisions of Sections 3.4, 3.5 and 3.6 of the Final Agreement are
         hereby incorporated by reference into this Agreement.

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4.       DEVELOPMENT AND COMMERCIALIZATION EFFORTS IN THE TERRITORY

4.1      Pharmion's Development Efforts: Pharmion shall use Commercially
         Reasonable Efforts to develop the Product for the Initial Indication
         and for any Additional Indications approved by the Development and
         Marketing Committee in all countries of the Territory where it is
         commercially reasonable to do so, taking into account (a) the
         commercial potential of the Product on a country-by-country basis, (b)
         Pharmion's reasonable judgment regarding the optimization of the sale
         of the Product in the Territory taken as a whole and (c) the current
         availability of supply of the Product from Schering (collectively, "the
         Product's Commercial Potential").

4.2      The provisions of Sections 4.3, 4.4, 4,5 and 4.6 of the Final Agreement
         are hereby incorporated by reference into this Agreement.

4.3      Transition of Order Processing, Distribution, Billing and Collection.
         Order processing, distribution, billing and collection services for
         sales of Product in the Territory are currently being conducted for
         Schering by Aventis Pharma Deutschland GmbH ("Aventis Deutschland")
         under the Aventis Services Agreement. Promptly following the Inception
         Date, Pharmion will use Commercially Reasonable Efforts and will work
         with Schering and Aventis Deutschland to arrange for the transition of
         such services to Pharmion in each of the countries within the Territory
         where the Product is currently being sold, with the goal of completing
         such transition by the end of July 2002. During the period between the
         Inception Date and the date on which such transition shall have been
         effected in any given country within the Territory, Schering shall
         provide to Pharmion the full benefits of the Aventis Services Agreement
         (subject to Pharmion bearing the 4.5% commission of Aventis under such
         Agreement), and all sales of Product from and after the Inception Date
         shall be for the account of Pharmion.

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5.       COORDINATION OF DEVELOPMENT EFFORTS; DEVELOPMENT FOR ADDITIONAL
         INDICATIONS

5.1      The provisions of Sections 5.1, 5.2, 5.3, 5.4 and 5.5 of the Final
         Agreement are hereby incorporated by reference into this Agreement.

5.2      Development for ACS Indication: During the term of this Agreement,
         Pharmion shall not seek to obtain approval of the Product in any
         country of the Territory for the ACS Indication.

6.       CONSIDERATION

6.1      Initial Rights Acquisition Fee: As payment of purchase price for the
         rights granted under this Agreement during its Initial Term, Pharmion
         shall pay to Schering via wire transfer (the "Initial Rights
         Acquisition Fee"):

         6.1.1    the sum of $2,000,000 (two million dollars), within five (5)
                  Business Days of the Inception Date; and

         6.1.2    the sum of $1,000,000 (one million dollars), within five (5)
                  Business Days of the end of the sixth month following the
                  Inception Date. If during the first sixth months of this
                  Agreement commencing on the Inception Date, deliveries of
                  Product to Pharmion by Schering were materially below the
                  amounts requested by Pharmion through the submission of
                  Requested Orders or if during this period there were material
                  disruptions in the timing of the delivery of Product by
                  Schering, but such short-falls in supply or disruptions of
                  supply were not at a level sufficient to constitute a Supply
                  Interruption Event under the provisions of the Final
                  Agreement, the Parties will negotiate in good faith a
                  reduction in the payment of this $1,000,000 (one million
                  dollars) amount.

6.2      Renewal Rights Acquisition Fee: Within five (5) Business Days of each
         extension of the term of this Agreement for a Renewal Term of 12
         calendar months, as contemplated by Section 21 hereof, Pharmion shall
         pay to Schering via wire

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         transfer the sum of $4,000,000 (four million dollars) (each a "Renewal
         Rights Acquisition Fee") as additional purchase price for the rights
         granted under this Agreement.

6.3      Business Commission: Pharmion shall pay Schering a business commission
         of eight percent (8%) on all of Pharmion's Net Sales during the term of
         this Agreement. Such commission shall be paid as follows:

         6.3.1    Within twenty (20) Business Days after March 31, June 30,
                  September 30 and December 31 of each year during the term of
                  this Agreement, commencing with the calendar quarter ending
                  September 30, 2002 (with the first such period covering the
                  period from the Inception Date through September 30, 2002),
                  Pharmion shall deliver to Schering a true and accurate report
                  setting forth for the preceding three (3) calendar months (or
                  in the case of the first such period the amount of time
                  between the Inception Date and the end of such calendar
                  quarter): (a) Net Sales and (b) the business commission
                  payable thereon. Except as otherwise provided, simultaneously
                  with the delivery of each such report, Pharmion shall pay to
                  Schering the amount, if any, due for the period of such
                  report, by wire transfer to a bank account specified by
                  Schering. If no payments are due, it shall be so reported.

         6.3.2    The provisions of Section 30 of the Final Agreement shall
                  apply to all such reports of Net Sales and the calculation of
                  the business commission due with respect to such Net Sales.

6.4      Partial Refund of Purchase Price: The provisions of Section 6.4 (a) of
         the Final Agreement are hereby incorporated by reference into this
         Agreement.

7.       MANUFACTURE AND SUPPLY OF PRODUCT

7.1      Requirements Purchase and Sale. Pharmion will purchase all of its
         requirements for the Product from Schering during the term of this
         Agreement and, provided

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         always that Pharmion fulfils its forecasting and ordering obligations
         hereunder, Schering will use its Commercially Reasonable Efforts to
         supply Pharmion the amounts of Product that it orders, provided,
         however, that during the term of this Agreement Schering shall not be
         required to divert production of the Product designated for the
         Schering Territory in order to satisfy Pharmion's requirements.
         Schering will supply Product to Pharmion as Finished Goods as long as
         Aventis is the Manufacturer and as Semi-Finished Goods thereafter, at
         which point Pharmion will be responsible for all further Packaging of
         the Product. Except as otherwise provided herein, Schering will supply
         the Product exclusively to Pharmion for sale in the Territory.

7.2      The provisions of Section 7.5 of the Final Agreement are hereby
         incorporated by reference into this Agreement.

7.3      Absence of Claim: Except as otherwise provided in Sections 6.1.2 and
         6.4, where Schering has complied with its obligations under this
         Section 7, Pharmion shall have no claim or remedy against Schering
         arising from Schering's cessation or failure to supply Product.

8.       PRODUCT RETURNS

8.1      Returns: Schering will accept returns of Product (including returns of
         short-dated Product), in accordance with Schering's standard policies,
         from entities within the Territory that purchased the Product prior to
         the Inception Date and which are returned prior to the First
         Anniversary of the Inception Date (whether from Schering or Aventis)
         and shall keep Pharmion informed, on a regular basis, of both the
         volume of such returns and the customers from whom such returned
         Product was obtained.

9.       FORECASTING AND ORDERING

9.1      Long-Range Forecast: On the Inception Date, and on a monthly basis
         thereafter, Pharmion shall furnish Schering with a rolling monthly
         forecast of the quantities by SKU that Pharmion intends to order during
         the succeeding twenty-one (21)

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         month period (the "Long-Range Forecast"). The first Long-Range Forecast
         delivered to Schering shall contain forecasts for the 21 month period
         beginning with the month immediately succeeding the "Initial Period".
         For the purposes of this Agreement, the "Initial Period" shall mean the
         month in which the Inception Date occurs, and the next full three
         months thereafter. The Long-Range Forecast shall represent the most
         current estimates for planning purposes but shall not be purchase
         commitments.

9.2      Firm Orders.

         9.2.1    During the Initial Period, Schering shall supply Pharmion with
                  such quantities of Product as requested by Pharmion up to the
                  amount of Finished Goods and Semi-Finished Goods (if any) on
                  hand for use in the Territory as of the Inception Date. To the
                  extent Pharmion requires an amount in excess of such amount,
                  Schering shall use Commercially Reasonable Efforts to supply
                  Pharmion with such excess amounts but Schering shall not be
                  required to divert production of Product designated for the
                  Schering Territory in order to satisfy Pharmion's requirements
                  during the Initial Period.

         9.2.2    To the extent consistent with the volume limitations set forth
                  in Section 9.3 below, the first three (3) months of the
                  Long-Range Forecast, as updated monthly, shall be treated by
                  both Parties as a request from Pharmion for a non-cancelable
                  legally binding commitment on the part of Schering to supply,
                  and on the part of Pharmion to purchase, the quantity of
                  Product by SKU as set forth in the Long-Range Forecast (each a
                  "Requested Order"). Within ten (10) Business Days following
                  the receipt of each month's Long-Range Forecast, Schering
                  shall notify Pharmion of its ability to fulfill such 3 month
                  commitment and if Schering shall accept such 3 month order in
                  writing, then it shall be a binding commitment on the part of
                  Schering to deliver, and on the part of Pharmion to purchase
                  the quantities specified (a "Firm Order"). If Schering
                  notifies Pharmion that it is able to supply some, but less
                  than all of the amount requested by Pharmion, then such lesser
                  quantity shall constitute a binding commitment

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                  on the part of Schering to deliver and on the part of Pharmion
                  to purchase the lesser quantities so specified (a "Firm
                  Partial Order"). In the event of a Firm Partial Order,
                  Schering shall use Commercially Reasonable Efforts to increase
                  the amount supplied to Pharmion in subsequent periods to
                  reduce the cumulative shortfall in supply. However, Pharmion
                  hereby acknowledges that circumstances may arise in which
                  Schering is unable to enter into a binding commitment to
                  deliver any of the Product desired by Pharmion in the first 3
                  months of a given Long-Range Forecast or to make up the
                  shortfall in supply occasioned by a Firm Partial Order.

9.3      Variations of Long-Range Forecasts:

         The provisions of Sections 9.3.1 and 9.3.2 of the Final Agreement are
         hereby incorporated by reference into this Agreement.

9.4      Terms of Firm Orders: Any Firm Orders, Firm Partial Orders, or related
         purchase orders, purchase order releases, confirmations, acceptances,
         advices and similar documents submitted by either Party in conducting
         the activities contemplated under this Agreement are for administration
         purposes only and shall not add to or modify the terms of this
         Agreement. To the extent of any conflict or inconsistency between this
         Agreement and any such document, the terms and conditions of this
         Agreement shall control as to a particular order, unless otherwise
         agreed to in writing by the Parties.

10.      PACKAGING AND LABELING; USE OF NAME

10.1     Packaging and Labeling.

         10.1.1   During the term of this Agreement, all Product shall be sold
                  under the Schering label, with Pharmion or its Recognized
                  Agent, as applicable, designated as the distributor of the
                  Product.

         10.1.2   Schering shall be responsible for ensuring that all Packaging
                  and labeling, including, but not limited to, the package
                  make-up, package inserts and

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                  other elements relating to Packaging as well as all
                  promotional material, complies with all laws and regulations
                  applicable to such Packaging and labeling in the Territory.

         10.1.3   Pharmion shall provide the information required under this
                  Section 10 to Schering in advance of delivery requirements for
                  the Product set forth in this Agreement.

         10.1.4   In case Schering or the Manufacturer requires changes to the
                  Packaging for technical reasons (e.g. changes to Packaging
                  technology or equipment), Schering shall bear all costs of
                  such changes and the obsolete inventory of Packaging and label
                  materials, if any, resulting therefrom.

         10.1.5   After each change of Packaging material, twenty-five (25)
                  samples of each new Packaging material shall be provided to
                  Pharmion.

10.2     The provisions of Section 10.2 of the Final Agreement are hereby
         incorporated by reference into this Agreement.

11.      QUALITY OF PRODUCT

11.1     Manufacturing and Product Changes

         11.1.1   PRODUCT CHANGES: Except for the Required Changes defined in
                  Section 11.1.2 below, Schering shall not make or allow to be
                  made any changes to the Product, Specifications, Manufacturing
                  or Packaging that would require variations to the Marketing
                  Authorization or notification in any country of the Territory,
                  without the prior written consent of Pharmion, such consent
                  not to be unreasonably withheld or delayed. Schering will use
                  Commercially Reasonable Efforts to ensure that the timing of
                  Schering's notice to Pharmion of any such change shall permit
                  adequate time for Pharmion to make any necessary regulatory
                  filings and obtain any necessary approval of the corresponding
                  variation to the Marketing

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                  Authorization thereof from Agencies prior to the change being
                  implemented.

         11.1.2   REQUIRED CHANGES: The following changes shall constitute
                  Required Changes: (i) changes to the Specifications or
                  Manufacturing or Packaging processes that are required by laws
                  (including, without limitation, GMP), or by medical or
                  scientific concerns as to the toxicity, safety and/or efficacy
                  of the Product (collectively "Required Changes"); (ii) changes
                  to the Specifications or Manufacturing or Packaging processes
                  which arise out of the change of Manufacturer from Aventis to
                  a third party; and (iii) changes which Schering reasonably
                  considers necessary or desirable and which do not change the
                  character or identity of the Product in such a way as to have
                  an adverse effect on Pharmion's interest in the Product in the
                  Territory. The Parties shall cooperate in making such Required
                  Changes promptly. All costs of making such Required Change
                  shall be borne by Schering. If, despite the exercise of
                  Commercially Reasonable Efforts, Schering is unable to make or
                  have such Required Change made without material adverse
                  effects on the Product in the Schering Territory, Schering
                  shall not be required to make such change.

         11.1.3   The provisions of Sections 11.1.3 and 11.1.4 of the Final
                  Agreement are hereby incorporated by reference into this
                  Agreement.

11.2     The provisions of Sections 11.2, 11.3 and 11.4 of the Final Agreement
         are hereby incorporated by reference into this Agreement.

12.      DELIVERY

12.1     Subject to Section 9.2.2 of this Agreement, the provisions of Sections
         12.1, 12.2, 12.3, 12.4, 12.5 and 12.6 of the Final Agreement are hereby
         incorporated by reference into this Agreement.

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13.      SUPPLY PRICE

13.1     Schering shall supply Product to Pharmion at the Manufacturer's Supply
         Price plus a five percent (5%) mark-up.

13.2     The provisions of Sections 13.2, 13.3, 13.4 and 13.5 of the Final
         Agreement are hereby incorporated by reference into this Agreement.

14.      INVENTORY

14.1     Halt of Shipments. As of the Inception Date, Schering will instruct
         Aventis Deutschland to halt temporarily all shipments of Product in the
         Territory under the Aventis Services Agreement for a period of five (5)
         Business Days pending the inventory taking described below.

14.2     Purchase of Inventory. Pharmion shall purchase all Inventory on hand
         that is not damaged or Short-Dated as of the Inception Date for the
         average price per kilogram (as set out in Schedule 1) paid by Schering
         to Aventis under the terms of the Aventis Supply Agreement for
         Inventory purchased between 2 October 2001 and the Inception Date (the
         "Inventory Value"). At the Inception Date, Schering shall deliver an
         estimate of the Inventory Value (the "Estimated Inventory Value") to
         Pharmion and Pharmion shall pay an amount equal to the Estimated
         Inventory Value to Schering within five (5) business days of the
         Inception Date. The Inventory Value shall be finally determined, and a
         reimbursement of any difference between the final Inventory Value and
         the Estimated Inventory Value shall be made to Schering or Pharmion, as
         the case may be, as follows:

14.2.1   As soon as practicable after the Inception Date, Schering shall conduct
         a final Inventory count at those principal locations of Aventis at
         which the Inventory is located (as specified in Schedule 1 to this
         Agreement) to determine the quantities of Inventory outstanding at such
         locations as of the Inception Date that is not damaged or Short-Dated.
         Pharmion and one or more of its agents or

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         representatives shall have the right to observe the final Inventory
         count and determination. Based upon such count, and with respect to
         other Aventis locations in which Inventory is located, based upon
         records maintained by Aventis, Schering shall prepare and deliver a
         Statement of Inventory Value (the "Statement of Inventory Value") to
         Pharmion. Subject to Section 14.2.2, the Statement of Inventory Value
         delivered by Schering to Pharmion shall be final, binding and
         conclusive on the parties hereto.

14.2.2   Pharmion may dispute any amounts reflected on the Statement of
         Inventory Value, but only on the basis that the amounts reflected on
         the Statement of Inventory Value were not calculated in accordance with
         Schedule 4, or that the Inventory was not correctly counted or is
         otherwise damaged or Short-Dated; provided, however, that Pharmion
         shall have notified Schering in writing of each disputed item,
         specifying the amount thereof in dispute and setting forth, in
         reasonable detail, the basis for such dispute, within fifteen (15)
         Business Days of Schering's delivery of the Statement of Inventory
         Value to Pharmion. In the event of such a dispute, Schering and
         Pharmion shall attempt to reconcile their differences, and any
         resolution by them as to any disputed amounts shall be final, binding
         and conclusive on the parties hereto. If Schering and Pharmion are
         unable to resolve any such dispute within thirty (30) Business Days
         after Pharmion's delivery of its notice of dispute to Schering,
         Schering and Pharmion shall submit the items remaining in dispute for
         resolution to a mutually acceptable independent accounting firm of
         international reputation (the "Independent Accounting Firm"), which
         shall, within twenty (20) Business Days after such submission,
         determine and report to Schering and Pharmion upon such remaining
         disputed items, and such report shall be final, binding and conclusive
         on Seller and Purchaser. The fees and disbursements of the Independent
         Accounting Firm shall be allocated to Pharmion in the same proportion
         as the aggregate amount of such remaining disputed items so submitted
         to the Independent Accounting Firm that is unsuccessfully disputed by
         Pharmion (as finally determined by the Independent Accounting Firm)
         bears to the total amount of such remaining disputed items so
         submitted, and the balance shall be paid by Schering. In acting under
         this Agreement, the Independent Accounting Firm shall be entitled to
         the privileges and immunities of arbitrators.

                                      18
<PAGE>

14.2.3   The Statement of Inventory Value shall be deemed final for the purposes
         of this Section 14 upon the earlier of (i) the failure of Pharmion to
         notify Schering of a dispute within fifteen (15) Business Days after
         Schering's delivery of the Statement of Inventory Value to Pharmion or
         (ii) the resolution of all disputes pursuant to Section 14.2.2. Within
         five (5) Business Days of the Statement of Inventory Value being deemed
         final, a payment shall be made as follows:

         (a)      In the event that the amount of the final Inventory Value
                  reflected on the Statement of Inventory Value is less than the
                  Estimated Inventory Value, then Schering shall pay an amount
                  equal to such difference to an account designated by Pharmion,
                  by wire transfer in immediately available funds;

                  or

         (b)      In the event that the amount of the final Inventory Value
                  reflected on the Statement of Inventory Value exceeds the
                  Estimated Inventory Value, then Pharmion shall pay an amount
                  equal to such excess to an account designated by Schering, by
                  wire transfer in immediately available funds.

14.3     Delivery of Inventory. Deliveries of Inventory shall be made Ex Works
         ("EXW") (as such term is defined in the INCOTERMS 2000), at the sites
         of the Aventis Affiliates where the respective part of Inventory is in
         stock. These Aventis Affiliates are listed in Schedule 1.

14.4     Obsolete Inventory. Any Inventory that has been purchased by Pharmion
         in accordance with this Article 14 that remains unsold on or after
         August 15, 2002 will no longer be distributed. Pharmion will deliver
         such remaining Inventory to Schering Delivery Duty Unpaid ("DDU") (as
         such term is defined in the INCOTERMS 2000) and Schering will destroy
         such Inventory. Schering will repay to Pharmion an amount equal to the
         value of the Obsolete Inventory calculated by using the average price
         (as set out in Schedule 4).

15.      ADVERSE REACTIONS; COMPLAINTS

15.1     The provisions of Sections 14.1, 14.2, 14.3 and 14.4 of the Final
         Agreement are hereby incorporated by reference into this Agreement.

                                      19
<PAGE>

16.      UNDERTAKINGS OF PHARMION; IMPROVEMENTS

16.1     The provisions of Section 15.1 (except clause 15.1.13), 15.2 and 15.3
         of the Final Agreement are hereby incorporated by reference into this
         Agreement.

17.      UNDERTAKINGS AND WARRANTIES OF SCHERING

17.1     The provisions of Section 16.1 and 16.2 of the Final Agreement are
         hereby incorporated by reference into this Agreement.

18.      RIGHT OF FIRST REFUSAL

         The provisions of Section 17 of the Final Agreement are hereby
         incorporated by reference into this Agreement.

19.      CONFIDENTIALITY

         The provisions of Section 18 of the Final Agreement are hereby
         incorporated by reference into this Agreement.

20.      INDEMNITIES AND INSURANCE

         The provisions of Section 19 of the Final Agreement are hereby
         incorporated by reference into this Agreement.

21.      DURATION AND TERMINATION

21.1     This Agreement will come into force on the Inception Date and, subject
         to the parties' rights of termination in Sections 21.2 and 21.3
         hereunder, will continue in force for a period of twelve (12) months
         commencing on the first day of month following the month in which the
         Inception Date occurred (the "Initial Term").

                                      20
<PAGE>

         The Initial Term will be automatically renewed for an additional period
         of twelve (12) months and thereafter for an additional twelve (12)
         months period term (each a "Renewal Term"), unless Pharmion has
         terminated this Agreement pursuant to Section 21.2.

         If the Manufacturing Milestone Date occurs during either the Initial
         Term or a Renewal Term, this Agreement will terminate simultaneously
         with the Effective Date of the Final Agreement.

21.2     Pharmion may terminate this Agreement with effect as of the end of the
         Initial Term or the respective Renewal Term by giving written notice
         at any time prior to the last two months of the then pending term of
         this Agreement if a Supply Interruption Event has occurred.

21.3     The provisions of Section 20.2 and 20.3 of the Final Agreement are
         hereby incorporated by reference into this Agreement.

22.      CONSEQUENCES OF TERMINATION

22.1     The provisions of Section 21.1, 21.2 and 21.4 of the Final Agreement
         are hereby incorporated by reference into this Agreement.

23.      RIGHTS AND REMEDIES

23.1     The provisions of Section 22.1 and 22.2 of the Final Agreement are
         hereby incorporated by reference into this Agreement.

24.      FORCE MAJEURE

         Neither Party shall be in breach of this Agreement if there is any
         total or partial failure of performance by it of its duties and
         obligations under this Agreement by reason of force majeure. If either
         Party is unable to perform its duties and obligations under this
         Agreement as a direct result of force majeure, such Party shall give
         written notice to the other of such inability stating the reason in

                                      21
<PAGE>

         question. The operation of this Agreement shall be suspended during the
         period in which the force majeure continues. Forthwith upon the reason
         ceasing to exist, the Party relying upon it shall give notice to the
         other of this fact. If the force majeure continues for a period of more
         than ninety (90) days, the Party not relying on force majeure shall be
         entitled to terminate this Agreement forthwith by written notice to the
         other.

25.      NOTICE

25.1     The provisions of Section 24.1 and 24.2 of the Final Agreement are
         hereby incorporated by reference into this Agreement.

26.      ENTIRE AGREEMENT/VARIATIONS

26.1     This Agreement and the Final Agreement constitute the entire agreement
         and understanding between the parties and supersedes all prior oral or
         written understandings, arrangements, representations or agreements
         between them relating to the subject matter of this Agreement. No
         director, employee or agent of either of the parties is authorised to
         make any representation or warranty to the other not contained in this
         Agreement, and each of the parties acknowledges that it has not relied
         on any such oral or written representations or warranties.

26.2     No variations, amendments, modifications or supplements to this
         Agreement shall be valid unless made in writing in English and signed
         by a duly authorised representative of each of the parties.

27.      ADDITIONAL TERMS

         The following additional Sections of the Final Agreement are hereby
         incorporated by reference into this Agreement:

         (a)      Section 26 -- Severance of Terms
         (b)      Section 27 -- Publication/Presentation/Press Release

                                       22
<PAGE>

         (c)      Section 28 -- Partnership/Agency
         (d)      Section 29 -- Assignment
         (e)      Section 30 -- Audit Rights
         (f)      Section 31 -- Novartis Agreement
         (g)      Section 32 -- Governing Law and Jurisdiction

28.      GUARANTEE

         Pharmion Corporation hereby unconditionally guarantees the prompt
         payment and full performance by Pharmion of its obligations under this
         Agreement, subject to Pharmion Corporation having all of the rights,
         remedies and defenses of Pharmion under this Agreement.

Remainder of page intentionally left blank.

                                      23
<PAGE>

AS WITNESS, the hands of the parties or their duly authorised representatives
the day and year first above written.

SCHERING AKTIENGESELLSCHAFT

By: /s/ Klaus Pohle                         By: /s/ Ulrich Kostlin

Name: Prof. Dr. Klaus Pohle                 Name: Dr. Ulrich Kostlin

Title: Vice Chairman of the Executive Board Title: Member of the Executive Board

PHARMION GMBH                               PHARMION CORPORATION

By: /s/ Patrick J. Mahaffy                  By: /s/ Patrick J. Mahaffy

Name: Patrick J. Mahaffy                    Name: Patrick J. Mahaffy

Title: Director                             Title: President & CEO<PAGE>

                                                                   EXHIBIT 10.15

                               DATED 29 MAY, 2002

                         SCHERING AKTIENGESELLSCHAFT (1)

                                     - and -

                                PHARMION GMBH (2)

                      -------------------------------------

                     DISTRIBUTION AND DEVELOPMENT AGREEMENT

                      -------------------------------------

<PAGE>

                                   PAGE INDEX

<TABLE>
<S>      <C>                                                                                          <C>
1.       DEFINITIONS                                                                                   4
2.       APPOINTMENT OF PHARMION                                                                      11
3.       EXISTING MARKETING AUTHORIZATIONS                                                            13
4        DEVELOPMENT AND COMMERCIALIZATION EFFORTS IN TERRITORY                                       15
5.       COORDINATION OF DEVELOPMENT; ADDITIONAL INDICATIONS                                          18
6.       CONSIDERATION                                                                                21
7.       MANUFACTURE AND SUPPLY OF PRODUCT                                                            24
8.       PRODUCT RETURNS                                                                              28
9.       FORECASTING AND ORDERING                                                                     29
10.      PACKAGING AND LABELING; USE OF NAME                                                          32
11.      QUALITY OF PRODUCT                                                                           33
12.      DELIVERY                                                                                     36
13.      SUPPLY PRICE                                                                                 39
14.      ADVERSE REPORTS; COMPLAINTS                                                                  42
15.      UNDERTAKINGS OF PHARMION; IMPROVEMENTS                                                       43
16.      UNDERTAKINGS AND WARRANTIES OF SCHERING                                                      46
17.      RIGHT OF FIRST REFUSAL                                                                       48
18.      CONFIDENTIALITY                                                                              48
19.      INDEMNITIES AND INSURANCE                                                                    50
20.      DURATION AND TERMINATION                                                                     52
21.      CONSEQUENCES OF TERMINATION                                                                  53
22.      RIGHTS AND REMEDIES                                                                          54
23.      FORCE MAJEURE                                                                                54
24.      NOTICE                                                                                       55
25.      ENTIRE AGREEMENT; VARIATIONS                                                                 56
26.      SEVERANCE OF TERMS                                                                           56
27.      PUBLICATIONS/ PRESS RELEASES                                                                 57
28.      PARTNERSHIP; AGENCY                                                                          57
29.      ASSIGNMENT                                                                                   57
30.      AUDIT RIGHTS                                                                                 57
31.      NOVARTIS AGREEMENT                                                                           59
32.      GOVERNING LAW AND JURISDICTION                                                               59
32.      GUARANTEE                                                                                    60
</TABLE>

<PAGE>

                     DISTRIBUTION AND DEVELOPMENT AGREEMENT

THIS AGREEMENT is made the 29th day of May 2002

BETWEEN:

(1)      SCHERING AKTIENGESELLSCHAFT, a company registered in Germany and having
         its principal place of business at 13342 Berlin, Germany ("Schering")
         and

(2)      PHARMION GMBH, a company registered in Switzerland and having its
         Registered Office at Centralbahnstrasse 7, Basel 4010, Switzerland
         ("Pharmion")

RECITALS:

(A)      Schering is the owner or licensee of patents and trade marks relating
         to the Product (as hereinafter defined), and is currently marketing and
         selling the Product for the Initial Indication (as hereinafter
         defined), through an affiliated company, in North America.

(B)      Schering is the holder or is entitled to be registered as the holder of
         Marketing Authorizations (as hereinafter defined) for the Product in
         various countries of the Territory (as hereinafter defined), and is in
         a position to supply Product to Pharmion for distribution in the
         Territory on the terms hereinafter described.

(C)      Pharmion's personnel have expertise and experience in the development,
         registration, marketing and distribution of pharmaceutical products in
         the Territory.

(D)      Pharmion wishes to obtain rights to the Marketing Authorizations and to
         distribute the Product under the Trade Marks (as hereinafter defined)
         for the Initial Indication, and to develop, obtain Marketing
         Authorizations for and distribute the Product under the Product Patents
         for Additional Indications (both as hereinafter defined) in the
         Territory, and Schering is willing to grant such rights to Pharmion and
         to supply Pharmion's requirements of the Product, all on the terms and
         conditions set out in this Agreement.

                                      3
<PAGE>

(E)      Schering and Pharmion have, today, entered into a Sales Representation
         Agreement as an interim measure pending a timely resolution of certain
         manufacturing supply issues, and this Agreement is intended to
         automatically come into effect if such issues can be resolved during
         the term of the Sales Representation Agreement.

IT IS HEREBY AGREED AS FOLLOWS:

1.   DEFINITIONS AND INTERPRETATION

     1.1. In this Agreement, the following terms shall have the following
          meanings unless the context requires otherwise:

         "ACS INDICATION" means the treatment of Acute Coronary Syndrome.

         "ADDITIONAL INDICATION" means any indication other than the Initial
         Indication, including (without limitation) the ACS Indication.

         "AFFILIATE" means any corporation, firm, partnership, organization or
         entity that directly or indirectly controls, is controlled by or is
         under common control with such entity. For the purpose of this
         definition the term "control" means direct or indirect ownership of at
         least fifty percent (50%) of the outstanding equity voting stock (or
         such lesser percentage which is the maximum allowed to be owned by a
         foreign corporation in a particular jurisdiction) of an entity.

         "AGENCY" means any governmental authority in the Territory responsible
         for granting approvals and clearance for marketing and sale of the
         Product.

         "AVENTIS" means Aventis Behring GmbH

         "AVENTIS SUPPLY AGREEMENT" means the Manufacturing and Supply Agreement
         entered into on July 27, 2001 by Aventis and Schering for the
         Manufacture and supply of Product to Schering - a copy of which
         agreement, as the same exists on the date hereof, has been provided to
         Pharmion - and any amendments to such Manufacturing and Supply
         Agreement.

                                      4
<PAGE>

         "BULK" means the purified drug concentrate (PDC) as active ingredient
         in a form intended for further processing into Product for sale in the
         Territory or the Schering Territory.

         "BUSINESS DAY" means every day except a Saturday, Sunday or a day which
         is a statutory holiday in Germany, Switzerland or in the United States.

         "CHIRON" means Chiron Corporation.

         "CHIRON LICENSE AGREEMENT" means the Schering-Chiron Hirudin License
         Agreement entered into between Chiron and Schering dated August 7/14,
         2001 and effective from October 2, 2001.

         "COMMERCIALLY REASONABLE EFFORTS" means efforts by a Party consistent
         with the prudent exercise of business judgments which shall not be less
         than for the development, manufacturing, registration or
         commercialization (as the case may be) of such Party's own
         pharmaceutical products of similar commercial potential.

         "COMPONENT" means any excipients, raw materials and packaging materials
         used in the Manufacturing and/or packaging of the Product.

         "CONTROL" OR "CONTROLLED" means possession of the ability to grant a
         license or sublicense of patent rights, know-how, Data or other
         intangible rights as provided for herein without violating the terms of
         any agreement or other arrangement with any third party.

         "DATA" means information in the possession and Control of Schering
         relating to the Product and the Marketing Authorizations and necessary
         or desirable for the marketing and sale of the Product in the Territory
         or for the clinical development of the Product for Additional
         Indications in the Territory including, without limitation, any such
         information relating to the pre-clinical and clinical testing and
         approval of the Product, any adverse patient reactions to the Product
         and any toxicological, pharmacological or pharmacokinetic studies
         relating to the Product.

         "DEVELOPMENT AND MARKETING COMMITTEE" means the Development and
         Marketing Committee described in Section 5.1.

                                      5
<PAGE>

         "DEVELOPMENT PLAN" means an outline proposal for the development of the
         Product for an Additional Indication, to be submitted to the
         Development and Marketing Committee in accordance with Section 5.3.

         "EFFECTIVE DATE" means the first day of the calendar month following
         the month in which the Manufacturing Milestone Date occurred, provided
         that the Manufacturing Milestone Date occurs during the term of the
         Interim Agreement.

         "EMEA" means The European Agency for the Evaluation of Medical
         Products.

         "EXISTING MARKETING AUTHORIZATIONS" means those Marketing
         Authorizations held by or on behalf of Schering and listed in Schedule
         3 to this Agreement.

         "FDA" means the United States Food and Drug Administration.

         "FINISHED GOODS" means Product packaged and ready for sale to the
         ultimate customer.

         "FIRM ORDER" shall have the meaning set forth in Section 9.2.

         "GMP" means current good manufacturing practices as established by the
         relevant Agency in each country within the Territory in which the
         Product is then being marketed or sold.

         "IMPROVEMENTS" means all improvements, modifications or adaptations to
         any part of the Data made or acquired by either Party during the term
         of this Agreement but excluding any clinical data generated by a Party
         and any data and improvements relating to the formulation or
         Manufacture of the Product.

         "INCEPTION DATE" means the first day of the calendar month following
         the month in which the Interim Agreement is executed and delivered.

         "INITIAL INDICATION" means the treatment of heparin-induced
         thrombocytopenia type II.

                                      6
<PAGE>

         "INTERIM AGREEMENT" means the Interim Sales Representation Agreement
         between Schering and Pharmion executed concurrently with this Agreement
         on the date hereof.

         "LONG-RANGE FORECAST" has the meaning set out in Section 9.1 herein.

         "MANUFACTURE" OR "MANUFACTURING" means all the operations required to
         manufacture, test, release, handle, store, ship and destroy the
         Product, or any step thereof, as the case may be.

         "MANUFACTURER" means (i) initially Aventis and (ii) any successor
         entity chosen by Schering for Manufacturing and Packing the Product for
         supply in the Territory in accordance with the procedures contemplated
         by Section 7.6 hereof.

         "MANUFACTURER'S SUPPLY PRICE" means the amount(s) payable by Schering
         to the Manufacturer with respect to Product.

         "MANUFACTURING MILESTONE DATE" means the date on which Schering shall
         have delivered to Pharmion written notice signed by its Head of
         Production that Aventis has produced three standard batches of Bulk
         that it is then holding as safety stock.

         "MARKETING AUTHORIZATIONS" means any approvals, product and/or
         establishment licenses, marketing authorizations or registrations of
         any federal, state or local Agency necessary for the commercial
         manufacture, use, storage, import, export, transport, marketing or sale
         of the Product in any country or regulatory jurisdiction of the
         Territory.

         "NET SALES" means the amount invoiced by Pharmion or Schering as the
         case may be for sales of Product to a third party less deductions for:
         (i) shipping, freight charges or insurance paid; (ii) sales and excise
         taxes and any other direct taxes paid by the selling Party; (iii)
         customs duties and surcharges and other governmental charges incurred
         in connection with the exportation and importation of such Product;
         (iv) rebates, premiums, non-cash rebates or allowances actually
         incurred; (v) quantity discounts, cash discounts or chargebacks
         actually incurred in the ordinary course of business in connection with
         the sale of such Product; and (vi) allowances or credits actually
         incurred to customers, not in excess of the selling price of such
         Product on

                                      7
<PAGE>

         account of governmental laws, written regulations or code, price
         differences, rejection, outdating, spoiled, damaged, recalls or returns
         of such Product.

         "PACK" OR "PACKING" means the operations which comprise the labeling
         and packaging of the Product or any step thereof, as the case may be.

         "PACKAGING" means the packaging in which the Product is supplied by
         Schering to Pharmion.

         "PARTIES" means Schering and Pharmion and "PARTY" means either of them
         as the context indicates.

         "PATENTS" means patents that relate to the Product owned or Controlled
         by Schering as of the Effective Date which are listed in Schedule 1 to
         this Agreement, and any continuations, continuations-in-part,
         divisions, provisionals or any substitute applications, any patent
         issued with respect to any such patent applications, any reissue,
         reexamination, renewal or extension (including any supplemental patent
         certificate) of any such patent, and any confirmation patent or patent
         of addition based on any such patent, and all foreign counterparts of
         any of the foregoing.

         "PROCESS PATENTS" means those Patents that relate to the Manufacture or
         formulation of the Product.

         "PRODUCT" means pharmaceutical products containing the recombinant
         hirudin analogue known as Lepirudin sold under the Trade Mark and more
         particularly identified in the Marketing Authorizations.

         "PRODUCT MARKETING MATERIALS" means all marketing materials used with
         respect to the Product in the Territory that are in existence as of the
         Effective Date, in any form, to the extent such materials are in the
         possession and Control of Schering and are legally permitted to be
         transferred to Pharmion including, without limitation, all advertising
         materials, product data, price lists, mailing lists, customer lists,
         sales materials, marketing information, promotional materials,
         scientific and commercial publications, market research, artwork for
         the production of packaging components, television masters and other
         materials associated with the Product in the Territory. Product
         Marketing Materials shall also include marketing materials developed by

                                      8
<PAGE>

         Schering during the term of the Agreement for use in connection with
         the sale of the Product in the Schering Territory or developed by
         Pharmion for use in connection with the sale of the Product in the
         Territory.

         "PRODUCT PATENTS" means all Patents other than Process Patents.

         "QUALIFIED PERSON" shall mean the qualified person working for the
         Manufacturer who is responsible for batch release (as described in
         detail in Directive 75/319/EEC and 2001/83/EC) as set out in Section
         12.5.

         "RECAPTURE AMOUNT" means, at any point in time, the aggregate amount of
         payments made by Pharmion from time to time to Schering pursuant to
         Sections 6.1, 6.2 and 6.3 hereof or pursuant to Section 6.1 and 6.2 of
         the Interim Agreement.

         "RECOGNIZED AGENT" shall mean an entity other than an Affiliate of
         Pharmion through which Pharmion regularly distributes and sells
         products in a particular region and who has been appointed in
         accordance with the terms of Section 3.5 of this Agreement.

         "REQUESTED ORDER" shall have the meaning set out in Section 9.2.2 of
         the Interim Agreement.

         "SCHERING TERRITORY" means the United States of America and Canada.

         "SEMI-FINISHED GOODS" shall mean the Product finished and filled in
         unlabelled vials.

         "SKU" means stock keeping unit, the unit of finished packs as prepared
         for distribution to the market.

         "SPECIFICATIONS" means all Manufacturing, Packing, quality assurance
         and quality release specifications, standard test methods and sampling
         plans as approved by any Agency.

         "SUPPLY INTERRUPTION EVENT" shall be deemed to have occurred upon the
         completion of either (i) two (2) consecutive quarters or (ii) any three
         (3) quarters in a period of seven (7) consecutive quarters, in each
         case during which Pharmion has received

                                      9
<PAGE>

         less than fifty percent (50%) of the amount of Finished Goods or
         Semi-Finished Product for which Pharmion had placed a Firm Order,
         without regard to the limitation on quantities set out in Sections 9.5
         or the application of Sections 7.3, 7.4 and 7.6.

         "TECHNICAL ASSISTANCE AGREEMENT" means the Technical Assistance
         Agreement entered into by Schering and Aventis as described in Section
         2.3 of the Manufacturing and Supply Agreement.

         "TERRITORY" means all countries of the world except the United States
         of America and Canada.

         "TRADE MARKS" means the trade marks, including registrations and
         applications for registration thereof (and all renewals, modifications
         and extensions thereof), listed on Schedule 2 attached hereto, and used
         in connection with the Product in the Territory.

     1.2. Construction and Interpretation

         In the interpretation of this Agreement:

         1.2.1    the headings are for convenience only and shall not affect the
                  interpretation hereof;

         1.2.2    references in this Agreement to Sections, Schedules and
                  Exhibits are to the sections of, and schedules and exhibits
                  to, this Agreement;

         1.2.3    unless the context otherwise requires the singular shall
                  include the plural and vice versa, reference to any gender
                  shall include reference to the other gender, and references to
                  persons shall include bodies corporate, unincorporated
                  associations and partnerships; and

         1.2.4    this Agreement includes the Schedules and Exhibits hereto.

                                      10
<PAGE>

1.3      Effectiveness of this Agreement

         This Agreement shall become effective upon, and only upon, the
         occurrence of the Manufacturing Milestone Date during the term of the
         Interim Agreement (including any renewal term). If such condition is
         met, then this Agreement shall become effective on the Effective Date
         and the Interim Agreement shall terminate and be of no further force
         and effect from and after the Effective Date. If the term of the
         Interim Agreement (including any renewal term) expires prior to the
         occurrence of the Manufacturing Milestone Date, then this Agreement
         shall never come into effect and neither Party shall have any rights or
         obligations under this Agreement.

2.       APPOINTMENT OF PHARMION

2.1      Subject to the terms and conditions of this Agreement, with effect from
         the Effective Date, Schering hereby grants to Pharmion the exclusive
         right:

2.1.1    to purchase the Product from Schering for resale in the Territory;

2.1.2    to advertise, market, promote, distribute, use and sell the Product
         under and by reference to the Trade Marks and under the Patents in the
         Territory for the Initial Indication and for any Additional Indications
         that are approved by the Development and Marketing Committee and
         covered by an appropriate Marketing Authorization in the country of
         sale;

2.1.3    to acquire the Existing Marketing Authorizations within the Territory
         as contemplated by Section 3, and to use the Data to apply for, obtain
         and or maintain Marketing Authorizations for the Product in the Initial
         Indication in all countries in the Territory which are in the European
         Union and in such other countries in the Territory in which it is
         commercially reasonable for Pharmion to do so.

2.1.4    to develop the Product under the Product Patents, Data and Improvements
         for any Additional Indications approved by the Development and
         Marketing Committee and to apply for and obtain Marketing
         Authorizations for the sale of the Product for such Additional
         Indications in such countries within the Territory in which Pharmion
         deems it commercially reasonable to do so.

                                      11

<PAGE>

2.1.5    to use the Product Marketing Materials in connection with the
         advertising, marketing, promotion and distribution of the Product in
         the Territory.

2.2      Pharmion will not seek customers or establish any branch or
         distribution depot for the Product in any country which is outside the
         Territory. Pharmion will not supply the Product to any customer outside
         the Territory or to any customer within the Territory for resale
         outside the Territory.

2.3      Subject as hereinafter provided, Schering will not, during the term of
         the Agreement:

         2.3.1    seek customers or establish any branch or distribution depot
                  for the Product in any country which is within the Territory;
                  or

         2.3.2    supply the Product in the Territory for use or resale in the
                  Territory to any person other than Pharmion, unless Schering
                  (a) receives orders for such supply which have not been
                  directly or indirectly solicited by or on behalf of Schering
                  and (b) Schering is then advised by its counsel that it is
                  obliged to respond to such unsolicited orders and supply
                  Product in relation to such orders to comply with European
                  Union or national or international competition law or other
                  legislative requirements. In the event that Schering believes
                  that the foregoing criteria shall have been met as to any
                  order, it shall promptly so advise Pharmion, identifying the
                  purchaser and the quantity of Product sold in connection with
                  such transaction.

2.4      From and after the Effective Date, Schering will transfer or procure
         the transfer to Pharmion of such elements of the Data, as well as the
         then current Product Marketing Materials, which Pharmion may request
         from time to time and that are not otherwise contained in the materials
         transferred as part of the Existing Marketing Authorizations
         transferred in accordance with Section 3.1, all such materials having
         been provided by Aventis. During the term of this Agreement, each Party
         shall, upon the reasonable request of the other, transfer such data
         developed by such Party as comprise Improvements, as well as such new
         Product Marketing Materials as have been developed by such Party. All
         such transfers shall be coordinated through the Development and
         Marketing Committee, and each Party shall have the right, consistent
         with Agency regulations in the countries within the Territory or the
         Schering

                                      12

<PAGE>

         Territory, to use the Product Marketing Materials developed by the
         other within its own territory.

3.       EXISTING MARKETING AUTHORIZATIONS

3.1      Schering will, at the expense of Pharmion, apply for a transfer of
         ownership of the Existing Marketing Authorizations naming Pharmion or a
         designated Recognized Agent as the new Marketing Authorization holder
         in place of Schering. In those countries of the Territory where the
         Marketing Authorizations have not yet been transferred to Schering,
         Schering will, where practicable, procure that such Marketing
         Authorizations are transferred directly to Pharmion or such designated
         Recognized Agent. Schering will procure the transfer to Pharmion of all
         available regulatory documentation relating to the Product for such
         countries, such documentation to include paper files and, if available,
         electronic versions to enable Pharmion to apply for and maintain
         Marketing Authorizations in such countries. In cases where the
         foregoing procedure is not reasonably practicable, such Marketing
         Authorizations will first be transferred to Schering and then to
         Pharmion or any such designated Recognized Agent. All costs incurred by
         Schering in effecting transfer of Existing Marketing Authorizations
         directly to Pharmion or such designated Recognized Agent (and not to
         Schering) shall be reimbursed by Pharmion. The Parties hereby agree to
         use Commercially Reasonable Efforts to complete the filing of the
         transfer of the Marketing Authorizations within six (6) months of the
         Effective Date. Schering, in collaboration, with Pharmion, will
         establish a mutually acceptable communication and interaction process
         to facilitate a smooth transfer of the Marketing Authorizations.

3.2      Until such time as each of the foregoing changes of holder is effected:
         (i) Schering will maintain the Existing Marketing Authorizations, and
         Schering shall bear all costs and expenses incurred in connection with
         such maintenance, and (ii) Schering will appoint Pharmion or its
         designated Recognized Agent as Schering's exclusive distributor or
         subdistributor of the Product in the country within the Territory in
         which such change of ownership has not yet been effected. For the
         avoidance of doubt, the Parties agree that if Pharmion has not, within
         three (3) months of the Effective Date for EMEA countries and six (6)
         months of the Effective Date for non-EMEA countries, nominated
         Recognized Agents who have been accepted by the Parties in accordance
         with Section 3.5 below, then Schering may transfer (or direct Aventis
         to transfer as appropriate) Existing Marketing Authorizations directly
         to Pharmion, and Pharmion

                                      13
<PAGE>

         shall be responsible for their maintenance until such time as the
         Recognized Agents are appointed.

3.3      Following the transfer of ownership, Pharmion shall keep Schering
         informed of any changes to the Existing Marketing Authorizations which
         Pharmion wishes to make or is required to make, and, except for changes
         which Pharmion is required to make by an Agency in the Territory, no
         changes to the Existing Marketing Authorizations will be made by
         Pharmion or the Recognized Agents without the prior written consent of
         Schering, such consent not to be unreasonably withheld or delayed.
         However, in case an EMEA request disables the implementation of
         requirements of an Agency in the Schering Territory, then Schering may
         object to a change to the Existing Marketing Authorizations and the
         Parties will negotiate in good faith to solve this issue. In the event
         that a change requested by Pharmion and consented to by Schering or
         required by an Agency should require Schering to make any process or
         production changes, Schering shall make such change, and all
         incremental costs incurred by Schering in making and implementing such
         change shall be borne by Pharmion. However, if such change is also
         required by an Agency in the Schering Territory, then Schering and
         Pharmion shall share equally the cost of any such change. Schering will
         keep Pharmion informed of Manufacturing or other changes to the Product
         reportable to an Agency, including without limitation those changes
         submitted to the U.S. or Canadian Agency and Pharmion shall be
         responsible for making any necessary regulatory filings and obtaining
         any necessary approvals of the resulting variations to the Marketing
         Authorizations from Agencies, in accordance with the terms of Section
         11.1 below.

3.4      Pharmion will not use the Data or the Marketing Authorizations which it
         obtains except as required for the purposes of this Agreement and
         within the Territory. Pharmion will not grant access to the Data to any
         third party (other than a Recognized Agent, or a medical professional
         or an investigator or another consultant who has entered into
         confidentiality and other applicable obligations equivalent to those
         set out in this Agreement and who requires access to such Data in
         connection with the development or distribution of the Product) or
         refer, or authorize reference, to its Marketing Authorization dossier
         to enable it or any such third party to obtain a product license for
         any products whatsoever.

                                      14
<PAGE>

3.5      Schedule 5 to this Agreement sets forth a list of those persons
         Pharmion wishes to appoint as Recognized Agents for the Product in each
         country of the Territory - to the extent known as of the Inception
         Date. If, after the Inception Date, Pharmion wishes to appoint further
         Recognized Agents, the names of such Recognized Agents will be proposed
         to the President of Specialized Therapeutics, Berlipharm, Inc. (an
         Affiliate of Schering) who will respond to Pharmion within ten (10)
         Business Days. In the event that, within such ten (10) Business Days,
         Schering does not consent to the appointment of any such Recognized
         Agent and Pharmion nevertheless wishes to proceed with such
         appointment, the issue will be referred to both the CEO of Pharmion and
         the President of Specialized Therapeutics, Berlipharm, Inc. for
         resolution. In the event that within ten (10) Business Days of such
         referral, such individuals cannot resolve the disagreement, Pharmion
         shall have the right to appoint such Recognized Agent without the
         consent of Schering unless Schering can demonstrate that such
         appointment is likely to have a material adverse effect on Schering or
         its interests in the Product.

3.6      Notwithstanding the appointment by Pharmion of the Recognized Agents,
         it is expressly agreed between the Parties that Pharmion shall retain
         full responsibility for the performance of all of its obligations under
         this Agreement and shall be responsible for all acts or omissions of
         the Recognized Agents in the same way as if such acts or omissions were
         those of Pharmion itself. Schering shall have no obligation to
         communicate with Recognized Agents but only with Pharmion.

4.       DEVELOPMENT AND COMMERCIALIZATION EFFORTS IN THE TERRITORY

4.1      Pharmion's Development Efforts: Pharmion shall use Commercially
         Reasonable Efforts to develop the Product for the Initial Indication
         and for any Additional Indications approved by the Development and
         Marketing Committee in all countries of the Territory where it is
         commercially reasonable to do so, taking into account both the
         commercial potential of the Product on a country-by-country basis and
         Pharmion's reasonable judgment regarding the optimization of the sale
         of the Product in the Territory taken as a whole (collectively, "the
         Product's Commercial Potential"). Such efforts shall include pursuing
         and obtaining Marketing Authorizations for the Product in all countries
         of the Territory where it is commercially reasonable to do so, taking
         into account the Product's Commercial Potential. Pharmion shall bear
         all costs of obtaining and maintaining Marketing Authorizations for the
         Product in the Territory.

                                      15
<PAGE>

         Within 180 days of the Effective Date, Pharmion agrees to provide
         Schering with a written plan for obtaining Marketing Authorizations for
         the Product in the Initial Indication in those countries in which
         Existing Marketing Authorizations are not available, as required by
         this Section 4.1.

         Schering shall be notified in advance of any meeting related to the
         Product between Pharmion or the Recognized Agents and any Agencies in
         the Territory where, in the reasonable judgment of Pharmion, any such
         meeting could have an adverse effect on the development or sale by
         Schering of the Product in the Schering Territory or the Manufacture
         and supply of the Product. Similarly, Pharmion shall be notified in
         advance of any meeting related to the Product between Schering and any
         regulatory agencies in the Schering Territory where, in the reasonable
         judgment of Schering, any such meeting could have an adverse effect on
         the development or sale by Pharmion of the Product in the Territory or
         the Manufacture and supply of the Product.

4.2      If: (a) in any country of the Territory in which Existing Marketing
         Authorizations exist, Pharmion either: (i) fails to use Commercially
         Reasonable Efforts to market the Product, for reasons other than
         Pharmion's judgment relating to the Product's Commercial Potential; or
         (ii) decides to withdraw the Marketing Authorizations or (b) in any
         country of the Territory in which Existing Marketing Authorizations do
         not exist, Pharmion either: (i) decides not to apply for a Marketing
         Authorization, for reasons other than Pharmion's judgment relating to
         the Product's Commercial Potential, or (ii) having opted to apply for
         such Marketing Authorizations pursuant to its written plan, fails to
         proceed diligently with such applications, then in each such case
         Pharmion shall first provide Schering with an appropriate written
         notice and shall grant Schering a period of three months during which
         the Parties - if Schering decides to take up the matter - will
         negotiate in good faith and on commercially reasonable terms to
         retransfer the rights to the Product in the respective country of the
         Territory to Schering. If the Parties come to an agreement any such
         country shall be removed from the Territory, and such country shall
         thenceforth be part of the Schering Territory.

4.3      Pharmion's Marketing Efforts: Pharmion shall use Commercially
         Reasonable Efforts to commercialize Product in each country of the
         Territory in which a Marketing

                                      16
<PAGE>

         Authorization is granted and in which it is commercially reasonable to
         do so, taking into account the Product's Commercial Potential.

4.4      Non-Compete Obligation of Pharmion: Pharmion shall not develop,
         manufacture, have manufactured, market or sell a direct thrombin
         inhibitor for the Initial Indication (other than the Product) or any
         other product for the Initial Indication in the Territory. Such
         non-compete obligation shall expire, as far as any countries of the
         European Union are concerned, five years from the Effective Date of
         this Agreement.

4.5      Non-Compete Obligation of Schering: Schering shall not develop,
         manufacture, have manufactured, market or sell a direct thrombin
         inhibitor for the Initial Indication or any other product for the
         Initial Indication in any country of the Territory (for as long as such
         country is part of the Territory), provided however, that,
         notwithstanding the foregoing, Schering may at any time:

         (i)      manufacture, have manufactured, market or sell a product which
                  includes, as an approved indication, the Initial Indication,
                  where such product is developed, manufactured, marketed or
                  sold by Schering only for indications other than the Initial
                  Indication; and

         (ii)     develop, manufacture, have manufactured, market or sell any
                  product (including a direct thrombin inhibitor) for the
                  Initial Indication where such product is acquired by Schering
                  from a third party, either by way of a corporate acquisition
                  or by way of a product acquisition where the product which
                  competes with the Product accounts for less than twenty-five
                  percent (25%) of the value of the assets to be acquired by
                  Schering.

         The non-compete obligation set out in this section shall expire, as far
         as any countries of the European Union are concerned, five years from
         the Effective Date of this Agreement.

4.6      Pharmion and Schering shall cooperate with one another to keep the
         other Party informed of any significant interface or communication with
         the Agencies which might adversely affect Schering's or Pharmion's or
         the Recognized Agents' activities under this Agreement. With respect to
         any country in the Territory in which the Existing Marketing
         Authorization has not yet been transferred to Pharmion or a designated

                                      17
<PAGE>

         Recognized Agent, Schering shall consult with Pharmion on the content
         and tenor of any significant communication to or from the Agencies
         regarding the Product in the Territory prior to such communication and
         before initiating or responding to the Agencies.

5.       COORDINATION OF DEVELOPMENT EFFORTS; DEVELOPMENT FOR ADDITIONAL
         INDICATIONS

5.1      Development and Marketing Committee: Within thirty (30) days of the
         Effective Date, Schering and Pharmion will establish a Development and
         Marketing Committee. The Development and Marketing Committee will be
         composed of six (6) members, three representatives appointed by
         Schering and three representatives appointed by Pharmion. Such
         representatives will include individuals with expertise in areas such
         as clinical development, manufacturing, marketing and regulatory
         affairs. Either Party may replace any or all of its representatives at
         any time upon written notice to the other Party. The Development and
         Marketing Committee will meet (in person, telephonically or via
         videoconference) at least quarterly or more frequently if reasonably
         requested by either Party.

5.2      Functions of Development and Marketing Committee: The Development and
         Marketing Committee shall: (a) exchange information on the development
         of the Product in the Schering Territory and the Territory, including
         the exchange of information regarding ongoing and new clinical studies,
         regulatory strategy and commercial development, Improvements and new
         Product Marketing Materials; (b) discuss the need, desirability of,
         structure and/or allocation of costs of any clinical studies or other
         development efforts relating to the Product to be carried out in the
         Schering Territory or the Territory; (c) discuss actions planned by
         either Party in respect of the Product where such actions could
         reasonably be expected to have a material impact on the Product in the
         Territory or the Schering Territory; (d) discuss collaboration in the
         development of the Product for indications other than the Initial
         Indication; and (e) discuss in good faith other issues relating to the
         marketing of the Product in the Territory and the Schering Territory.

5.3      Development of Product for Additional Indications: Neither Party shall
         proceed with the development of the Product for an Additional
         Indication without first submitting a Development Plan to the
         Development and Marketing Committee. If a Development Plan submitted by
         a Party is not unanimously approved by the members of the

                                      18
<PAGE>

         Development and Marketing Committee, then the dispute shall be referred
         to the CEO of Pharmion and the President of Specialized Therapeutics,
         Berlipharm, Inc. for resolution. In the event that the dispute is not
         resolved by these individuals, Schering shall have the final right to
         decide whether either Party may proceed with such plan. Where the
         development of a Product for an Additional Indication being sought
         exclusively by Pharmion and approved by the Development and Marketing
         Committee or by Schering requires process development or manufacturing
         changes, Pharmion will reimburse Schering for all costs incurred by
         Schering in making such changes unless the Parties have agreed to share
         the costs of such development pursuant to Section 5.4 below, in which
         case Schering's process development and manufacturing costs will be
         included in the costs to be divided between the Parties.

5.4      Sharing of Cost and Data: Where Schering and Pharmion agree, prior to
         the commencement of any clinical study or other study related to the
         Product for the Initial Indication or an Additional Indication, that
         the results of such study may be used for regulatory or commercial
         purposes in both the Schering Territory and the Territory, the costs of
         the study shall be shared by the Parties and the cost allocation,
         structure, timelines and other details of the study shall be agreed
         between the Parties in good faith taking account of the relative
         importance and value to each Party of the study in question. The
         results of and data generated by any study jointly funded by the
         Parties will be owned by Schering but Schering hereby grants Pharmion
         an exclusive license to use such results and data for the purpose of
         obtaining Marketing Authorization for the Product in an Additional
         Indication in the Territory or for such other uses in connection with
         the sale of the Product for the Initial Indication and the Additional
         Indication in the Territory as are permitted under the laws of the
         particular country within the Territory for the term of and subject to
         the conditions of this Agreement.

5.5      Funded Studies: In the event that either Party (a "Non Funding Party")
         is unwilling to share in the cost of any clinical or other study to be
         carried out by the other Party (the "Funding Party") and approved by
         the Development and Marketing Committee with respect to the Product,
         and such study generates data which the Funding Party reasonably
         believes may be used by the Non Funding Party to obtain Marketing
         Authorization for the Product in an Additional Indication in any
         country(ies) of the Territory or the Schering Territory, as the case
         may be, then the following provisions shall apply:

                                      19
<PAGE>

         The Funding Party shall, by notice, require the Non Funding Party to
         decide within ninety (90) days of receipt of a data package containing
         a summary of the clinical data whether the Non Funding Party elects to
         use such data for the purpose of obtaining Marketing Authorization for
         the Product in an Additional Indication in any country(ies) of the
         Territory or the Schering Territory as the case may be. If the Non
         Funding Party so elects, then:

         (i)      the Parties shall agree upon a development programme for such
                  purpose and the Non Funding Party shall undertake to perform
                  the necessary work at its own cost and to reimburse the
                  Funding Party, by means of a royalty of 5% on Net Sales of the
                  Product for such Additional Indication, up to an amount equal
                  to 75% of the costs incurred by the Funding Party in
                  generating the clinical data made available by the Funding
                  Party to the Non Funding Party for the purpose of obtaining
                  Marketing Authorization for the Product in the relevant
                  Additional Indication in the Territory or the Schering
                  Territory as the case may be: and

         (ii)     the results of and data generated by any study funded by the
                  Funding Party will be owned by the Funding Party but such
                  Party shall grant to the Non-Funding Party an exclusive
                  license to use such results and data for the purpose of
                  obtaining Marketing Authorization for the Product in an
                  Additional Indication in the Territory or the Schering
                  Territory, as the case may be, or for such other uses in
                  connection with the sale of the Product for the Initial
                  Indication and the Additional Indication in such territory as
                  are permitted under the laws of the particular country within
                  such territory for the term of and subject to the conditions
                  of this Agreement..

5.6      Development for ACS Indication: In the event that Pharmion elects, at
         its sole discretion and succeeds in obtaining approval of the Product
         in any country of the Territory for the ACS Indication on the basis of
         Data provided by Schering as of the Effective Date and without carrying
         out pivotal clinical trials in the ACS Indication, then Pharmion shall
         pay to Schering an additional royalty of 5% of incremental Net Sales of
         Product resulting from Marketing Authorization for the ACS Indication.
         Such incremental Net Sales will be deemed to be those Net Sales in
         excess of the average monthly sales of Product in the six months prior
         to approval of the Product for the

                                      20
<PAGE>

         ACS Indication. Pharmion shall pay Schering a royalty of 7% (in lieu of
         5%) on annual incremental Net Sales in excess of (euro)100 million (one
         hundred million Euros).

6.       CONSIDERATION

6.1      Purchase Price Payable on Execution: Pharmion shall pay to Schering via
         wire transfer the sum of $10,000,000 (ten million dollars) as partial
         payment of purchase price for the rights granted under this Agreement,
         within five (5) Business Days of the Effective Date.

6.2      Purchase Price Payable on First Anniversary of Effective Date: Within
         five (5) Business Days of the first anniversary of the Effective Date,
         Pharmion shall pay to Schering via wire transfer the sum of $10,000,000
         (ten million dollars) as additional purchase price for the rights
         granted under this Agreement.

6.3      Additional Purchase Price: Pharmion shall make the following payments
         to Schering as additional purchase price for the rights granted under
         this Agreement, within twenty (20) Business Days after the end of the
         calendar quarter in which the first achievement of each of the
         corresponding events occurs (except in the case of (d) which shall be
         paid within 60 days after the closing of the year described in such
         clause):

         (a)      $2,000,000 (two million dollars) when Pharmion's cumulative
                  Net Sales reach $30,000,000 (thirty million dollars);

         (b)      $2,500,000 (two million, five hundred thousand dollars) when
                  Pharmion's cumulative Net Sales reach $40,000,000 (forty
                  million dollars);

         (c)      $2,500,000 (two million, five hundred thousand dollars) when
                  Pharmion's cumulative Net Sales reach $60,000,000 (sixty
                  million dollars);

         (d)      $2,500,000 (two million, five hundred thousand dollars) at the
                  end of the first calendar year in which the Manufacturer
                  Supply Price of Product sold during such year in the aggregate
                  represents 15% (fifteen percent) or less of Pharmion's Net
                  Sales during such calendar year.

         Pharmion shall deliver to Schering, within twenty (20) Business Days
         after the end of the calendar quarter in which the first achievement of
         each of the foregoing events occurs (except in the case of (e) which
         shall be delivered within 60 days after the closing of the year
         described in such clause) a certificate of its chief financial officer

                                      21

<PAGE>

         setting forth in reasonable detail the data relating to the particular
         achievement giving rise to the payment of such additional purchase
         price, together with the payment of the applicable additional purchase
         price. Net Sales of Pharmion recorded under the Interim Agreement shall
         be included in calculating the cumulative Net Sales described above.

         Collectively, the payments described in the foregoing Sections 6.1, 6.2
         and 6.3 shall be referred to as the "Purchase Price".

6.4      Partial Refund of Purchase Price. Upon the occurrence of a Supply
         Interruption Event, Schering shall be obligated to continue to supply
         Product to Pharmion to the extent provided in this Agreement unless
         Pharmion exercises its right to be paid the Recapture Amount as
         provided in clause (a) below.

         (a)      Payment of Recapture Amount. Unless Pharmion has exercised its
                  right to obtain Manufacturing rights as set forth in clause
                  (b) below, Pharmion shall have the right and option,
                  exercisable at any time within thirty (30) days following the
                  occurrence of a Supply Interruption Event, by delivering
                  written notice to Schering, to cause Schering to pay by wire
                  transfer to a bank account designated by Pharmion that portion
                  of the Recapture Amount as is calculated as set forth below:

<TABLE>
<CAPTION>
             Period of
Occurrence of Supply Interruption Event                    Percent of Recapture Amount
---------------------------------------                    ---------------------------
<S>                                                        <C>
Prior to 1st Anniversary of Inception Date                             80%

Between 1st Anniversary and
2nd Anniversary of Inception Date                                      70%

Between 2nd Anniversary and
3rd Anniversary of Inception Date                                      60%

Between 3rd Anniversary and
4th Anniversary of Inception Date                                      45%

Between 4th Anniversary and
5th Anniversary of Inception Date                                      30%

Between 5th Anniversary and
6th Anniversary of Inception Date                                      10%

After 6th Anniversary of Inception Date                                 0%
</TABLE>

                                      22

<PAGE>

                  The payment to Pharmion of the percentage of the Recapture
                  Amount shall be without prejudice to any other rights or
                  remedies that Pharmion may have against Schering under German
                  law under this Agreement, provided that Pharmion shall not be
                  entitled to any duplicative recovery against Schering for
                  damages based upon the same cause of action. Upon the payment
                  to Pharmion of the percentage of the Recapture Amount as set
                  forth above, this Agreement shall terminate and the provisions
                  of Section 21 (Consequences of Termination) shall thereafter
                  apply.

         (b)      Transfer of Manufacturing Rights. Unless Pharmion has
                  exercised its option to be paid the Recapture Amount as set
                  forth in clause (a) above, upon the occurrence and during the
                  continuation of a Supply Interruption Event, upon thirty (30)
                  days prior written notice from Pharmion to Schering, Schering
                  will permit Pharmion to Manufacture or have Manufactured the
                  Product for the term of this Agreement under the Patents and
                  by reference to the Trade Marks, and to supply such Product in
                  the Territory. Upon such grant of Manufacturing rights to
                  Pharmion, Schering will, if requested by Pharmion, provide to
                  Pharmion all such reasonable access to Manufacturing know-how,
                  Data and other information within the Control of Schering as
                  is reasonably necessary to enable Pharmion to Manufacture or
                  have Manufactured Product according to the requirements of the
                  Marketing Authorizations. Such know-how, Data and other
                  information will be treated as confidential unless the
                  exceptions specified in Section 18.1 apply. To the extent that
                  confidential Data, know-how or other information is required
                  to be disclosed by Schering for the purpose of Manufacturing
                  or having Manufactured the Product, Pharmion will adopt
                  measures to prevent unauthorized disclosure thereof and shall
                  enforce obligations of confidentiality on any employees or
                  other third parties to which any such confidential Data,
                  know-how or other information is disclosed. Any third party
                  manufacturer must be acceptable to Schering (such acceptance
                  not to be unreasonably withheld) and Schering must have the
                  right on reasonable notice to inspect the facilities where the
                  Product is being Manufactured. At such time as Pharmion's
                  designated manufacturer is capable of Manufacturing the
                  Product on behalf of Pharmion in accordance with the Marketing
                  Authorizations, (i) the requirement contained in Section 7.1
                  of Pharmion to purchase all of its requirements for the
                  Product from

                                      23

<PAGE>

                  Schering and (ii) the last sentence of Section 7.4 shall, in
                  each case, no longer apply.

6.5      Credit of Payments Under Interim Agreement. All payments made by
         Pharmion to Schering under the Interim Agreement in respect of the
         Initial Rights Acquisition Fee or any Renewal Rights Acquisition Fee as
         defined in Sections 6.1 and 6.2 of the Interim Agreement shall be fully
         credited against the payments of Purchase Price described in Sections
         6.1 and 6.2 of this Agreement, applied in the sequence in which such
         payments of Purchase Price are due.

6.6      Adjustment to Purchase Price. If during the term of the Interim
         Agreement, deliveries of Product to Pharmion by Schering were
         materially below the amounts requested by Pharmion through the
         submission of Requested Orders or if during the term of the Interim
         Agreement there were material disruptions in the timing of the delivery
         of Product by Schering, but such short-falls in supply or disruptions
         of supply were not at a level sufficient to constitute a Supply
         Interruption Event under the provisions of this Agreement, the Parties
         will negotiate in good faith a reduction of the payments of Purchase
         Price called for by Section 6.1, 6.2 and 6.3, to take into account the
         reduced market potential for the Product in the Territory.

7.       MANUFACTURE AND SUPPLY OF PRODUCT

7.1      Requirements Purchase and Sale. Subject to Sections 7.3, 7.4, 7.5 and
         7.6 below, Pharmion will purchase all of its requirements for the
         Product from Schering during the term of this Agreement and Schering
         will supply the Product to Pharmion in accordance with Section 12,
         provided always that Pharmion fulfils its forecasting and ordering
         obligations hereunder and subject always to the overall limitation on
         quantities set out in Section 9.3.1 below. Schering will supply Product
         to Pharmion as Finished Goods as long as Aventis is the Manufacturer
         and as Semi-Finished Goods thereafter, at which point Pharmion will be
         responsible for all further Packaging of the Product. Except as
         otherwise provided herein, Schering will supply the Product exclusively
         to Pharmion for sale in the Territory.

7.2      European Union Limitation. Pharmion's obligation to purchase all of its
         requirements for the Product from Schering for sale in the European
         Union shall expire on the fifth

                                      24
<PAGE>

         anniversary of the Effective Date, unless Pharmion notifies Schering in
         writing at least six (6) months prior to said fifth anniversary of its
         intention to continue to purchase all of its requirements for such
         Product for sale in the European Union from Schering for the remainder
         of the term of this Agreement. If no such notice is given, Pharmion
         shall purchase and Schering shall supply such quantities of the Product
         for sale in the European Union as are agreed between them on an annual
         basis and included in the Long-Range Forecast, as contemplated by
         Section 9. For the avoidance of doubt, it is understood and agreed that
         this subsection 7.2 shall apply only to Pharmion's requirements for the
         European Union, and nothing contained in this subsection shall be
         construed to limit Schering's obligation to supply Pharmion's
         requirements of the Product for countries in the remainder of the
         Territory.

7.3      If, for any reason during the term of the Agreement, Schering decides
         to cease marketing of the Product in the Schering Territory and
         therefore wishes to permanently cease supply of the Product in the
         Territory, the following provisions shall apply:

7.3.1    Except in the circumstances described in Section 7.4 below, Schering
         shall give Pharmion at least twenty-four (24) months' prior notice of
         cessation of supply. Schering shall use Commercially Reasonable Efforts
         during the twenty-four (24) month notice period to locate another
         Manufacturer willing and able to supply the Product to Pharmion on
         similar terms as to supply and price but not otherwise to those
         contained in this Agreement. Schering does not warrant that such an
         alternative Manufacturer will be found.

7.3.2    If Schering locates another Manufacturer as aforesaid, the terms and
         conditions under which the Product will be Manufactured and supplied
         will be negotiated in good faith between Pharmion and the said
         Manufacturer, and such terms and conditions will be incorporated into
         an agreement between Pharmion and the said Manufacturer.

7.3.3    If Schering fails, within a period of six (6) months from commencement
         of the twenty-four (24) month notice period to locate another supplier
         in accordance with the terms of Section 7.3.2 above or if Pharmion, on
         reasonable grounds, rejects such alternative supplier (such decision to
         be taken by Pharmion no later than four (4) weeks after receipt of
         details of the proposed supplier from Schering), then Schering will
         permit Pharmion, with effect from the expiry of the twenty-four (24)
         month notice period

                                      25
<PAGE>

         referred to above, to Manufacture or have Manufactured the Product for
         the term of this Agreement under the Patents and by reference to the
         Trade Marks, and to supply such Product in the Territory on the terms
         set out in Section 7.6 below.

7.3.4    If Schering grants Manufacturing rights to Pharmion pursuant to Section
         7.3.3, then Schering will, if requested by Pharmion, provide to
         Pharmion all such reasonable access to Manufacturing know-how, Data and
         other information within the Control of Schering as is reasonably
         necessary to enable Pharmion to Manufacture Product according to the
         requirements of the Marketing Authorizations. Such know-how, Data and
         other information will be treated as confidential unless the exceptions
         specified in Section 18.1 apply. To the extent that confidential Data,
         know-how or other information is required to be disclosed by Schering
         for the purpose of Manufacturing or having Manufactured the Product,
         Pharmion will adopt measures to prevent unauthorized disclosure thereof
         and shall enforce obligations of confidentiality on any employees or
         other third parties to which any such confidential Data, know-how or
         other information is disclosed. Any third party manufacturer must be
         acceptable to Schering (such acceptance not to be unreasonably withheld
         or delayed) and Schering must have the right on reasonable notice to
         inspect the facilities where the Product is being manufactured.

7.4      Schering may permanently cease supplying the Product without giving the
         twenty-four (24) months notice required under Section 7.3.1 if an
         Agency in the Schering Territory requires the Product to be withdrawn
         from a market in the Schering Territory for reasons of drug safety or
         if Schering makes a commercially reasonable decision to withdraw the
         Product from a market in the Schering Territory for reasons of drug
         safety. In such event, Schering will give Pharmion such notice as is
         reasonable in the circumstances. Schering will further notify Pharmion
         of the reasons for the action and shall discuss in good faith whether
         the concerns can be resolved in a reasonable manner. Following notice
         by Schering pursuant to this Section 7.4, the provisions of Sections
         7.3.2, 7.3.3 and 7.3.4 shall apply mutatis mutandis. In addition,
         Schering may permanently cease supplying the Product on provision of
         twelve (12) months notice in the event that, either: (i) the contract
         Manufacturer then supplying Product to Schering agrees to continue
         supply of Product to Pharmion on the same terms as Product was supplied
         to Schering prior to termination; or (ii) such contract Manufacturer
         agrees to novate the applicable supply agreement to Pharmion.

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<PAGE>

7.5      Aventis Supply Agreement: Pharmion has been provided with a copy of the
         Aventis Supply Agreement, as the same exists on the date hereof, and
         acknowledges that, as long as Product to be supplied by Schering to
         Pharmion hereunder is Manufactured by Aventis and/or its authorized
         sub-contractors, the supply of such Product is subject to the terms and
         conditions of the Aventis Supply Agreement and any amendments thereto
         which were consented to by Pharmion. Schering will promptly notify
         Pharmion of any proposed amendment to the Aventis Supply Agreement
         (whether proposed by Aventis or Schering) and provide Pharmion with the
         text of any such proposed amendment and an opportunity to discuss the
         changes contemplated by such proposed amendment with Schering and will
         take any reasonable comments by Pharmion into account. Promptly after
         the execution of any such amendment, Schering will provide a copy of
         such amendment in its final form to Pharmion. Pharmion shall be deemed
         to have accepted any such amendment unless it notifies Schering, within
         ten (10) Business Days of its receipt of such amendment, of Pharmion's
         decision to reject the provisions of such amendment.

7.6      Change of Manufacturer: Pharmion is aware that Schering intends, on or
         before July 27, 2009 to transfer Manufacture of the Product from
         Aventis to another Manufacturer. Schering shall only select a
         Manufacturer that holds current Manufacturing authorisation with, or
         holds an internationally recognized equivalent certificate to, the
         standards detailed in European Community Directive 91/356/EEC. Schering
         will notify Pharmion promptly and in any event at least twelve (12)
         months before such transfer of Manufacture is expected to be completed
         and the Parties will negotiate in good faith any necessary changes to
         Sections 9 and 12 of this Agreement, and any procedures developed
         thereunder. Pharmion acknowledges that the transfer of Manufacture from
         Aventis to another Manufacturer is likely to result in changes to the
         Manufacturing process and specifications of the Product, some of which
         may require variations to the Marketing Authorizations. Such variations
         to the Marketing Authorizations will be made by Pharmion at its own
         expense. However, Schering will use Commercially Reasonable Efforts to
         ensure that the change of Manufacturer will not affect the safety or
         efficacy of the Product. The necessary steps for the improvement of the
         Manufacturing process and the change of the Manufacturer will be
         handled within the scope of variation reports submitted to the EMEA.
         Schering will cooperate with Pharmion by providing the available
         Manufacturing and other data required to support any required
         application for variation of Marketing Authorizations. Pharmion is
         obliged to submit the variations related to changes of the
         Manufacturing

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<PAGE>

         process/Manufacturer without delay to the Agencies in the countries
         within the Territory in which it holds a Marketing Authorization and in
         which it is marketing and selling the Product. Such change of
         Manufacturer may also require changes to the forecasting and ordering
         procedures listed in this Agreement, and the Parties agree to make any
         reasonable changes to such procedures resulting from such change of
         Manufacturer. Costs associated with such change of Manufacturer will be
         borne by Schering except where such costs are associated with changes
         requested by Pharmion or where additional work is required only in
         order to comply with new regulatory or other requirements in the
         Territory, in which case such costs will be reimbursed by Pharmion.

7.7      Safety Stock. Schering will request Aventis under the Aventis Supply
         Agreement to produce and maintain two batches of Bulk in order to
         reduce any gap in supply. Schering will allocate thirty percent (30%)
         of such safety stock batches for production for Pharmion to alleviate a
         gap in supply, and Pharmion will reimburse Schering 30,000 Euros per
         year towards the cost of maintaining such safety batches.

7.8      Communication: Schering will keep Pharmion informed, on a regular
         basis, of key developments in the plan for transfer of Manufacturing.

7.9      Absence of Claim. Except as otherwise provided in Section 6.4, where
         Schering has complied with its obligations under this Section 7,
         Pharmion shall have no claim or remedy against Schering arising from
         Schering's cessation or failure to supply Product.

7.10     Chiron License. In case Pharmion takes over the full or partial
         responsibility for the Manufacture of Product under the terms of this
         Agreement Pharmion will use Commercially Reasonable Efforts to obtain a
         license from Chiron under the Chiron License Agreement. In such
         scenario, pending receipt by Pharmion of such a direct license from
         Chiron, Schering will grant to Pharmion the appropriate sublicense
         subject to the terms of the Chiron License Agreement.

8.       PRODUCT RETURNS

8.1      Returns: Schering will accept returns of Product, in accordance with
         Schering's standard policies, from entities within the Territory that
         purchased the Product prior to

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<PAGE>

         the Inception Date and which are returned prior to the First
         Anniversary of the Inception Date (whether from Schering or Aventis)
         and shall keep Pharmion informed, on a regular basis, of both the
         volume of such returns and the customers from whom such returned
         Product was obtained.

9.       FORECASTING AND ORDERING

9.1      Long-Range Forecast: On the Effective Date, and on a monthly basis
         thereafter, Pharmion shall furnish Schering with a rolling monthly
         forecast of the quantities by SKU that Pharmion intends to order during
         the succeeding twenty-one (21) month period (the "Long-Range
         Forecast"). The Long-Range Forecast shall represent the most current
         estimates for planning purposes but shall not be purchase commitments.

9.2      Firm Orders:

         To the extent consistent with the volume limitations set forth in
         Section 9.3 below, the first three (3) months of the Long-Range
         Forecast, as updated monthly, shall be non-cancelable legally binding
         commitments on the part of Schering to supply and on the part of
         Pharmion to purchase, the quantity of Product by SKU as set forth in
         the Long-Range Forecast (each such first 3 month commitment, a "Firm
         Order"). Pharmion shall confirm monthly each Firm Order for the next
         three month period in writing to Schering; provided, however, that
         Pharmion's failure to deliver such confirmation shall not impact
         Pharmion's obligation to purchase such quantities.

9.3      Variations of Long-Range Forecasts:

         9.3.1    With every monthly update of the Long-Range Forecast, each of
                  months four through six can be increased or decreased without
                  regard to SKU by twenty percent (20%) of the quantity forecast
                  in the Long-Range Forecast of the previous month. Each of
                  months seven through eighteen can be increased or decreased
                  without regard to SKU by fifty percent (50%) of the quantity
                  forecasted in the Long-Range Forecast of the previous month.
                  Within each Long-Range Forecast period the quantity forecast
                  for any given month may not exceed three hundred and sixty
                  percent (360%) of the quantity forecast for the fourth month
                  of such Long-Range Forecast, always subject to the limitation
                  on

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<PAGE>

                  monthly order increase or decrease set out above in this
                  Section 9.3.1. Unless consented to in writing by the Parties,
                  each Firm Order must be for that quantity of Product that is
                  consistent with the variations permitted in the Long-Range
                  Forecast under this Section 9.3.1.

         9.3.2    If Schering is informed by the Manufacturer that the
                  Manufacturer anticipates that it will be unable to meet any
                  Firm Order for Product, Schering shall promptly notify
                  Pharmion

9.4      Terms of Firm Orders: Any Firm Orders, or related purchase orders,
         purchase order releases, confirmations, acceptances, advices and
         similar documents submitted by either Party in conducting the
         activities contemplated under this Agreement are for administration
         purposes only and shall not add to or modify the terms of this
         Agreement. To the extent of any conflict or inconsistency between this
         Agreement and any such document, the terms and conditions of this
         Agreement shall control as to a particular order, unless otherwise
         agreed to in writing by the Parties.

9.5      Priority of Supply for the Initial Indication: Schering shall use
         Commercially Reasonable Efforts to satisfy Pharmion's requirements for
         Product with respect to the Initial Indication. However, Schering's
         obligation to supply Product under this Agreement shall (in addition to
         the other limitations included in this Section 9) at all times be
         subject to the condition that Schering is able to obtain a sufficient
         supply of such Product for sale both inside and outside the Territory
         with respect to the Initial Indication. In the event that Product
         available to Schering for such purpose is in short supply, Schering
         shall notify Pharmion of such shortage as soon as possible. In the
         event there is a short supply of Product with respect to the Initial
         Indication and Schering cannot supply Product to Pharmion in an amount
         equal to Pharmion's Firm Order, then Schering shall allocate Product
         between the Schering Territory and the Territory in proportions
         equivalent to the average of:

         (i)      the percentage of total units of Product sold with respect to
                  the Initial Indication in the Schering Territory and in the
                  Territory, and

         (ii)     the percentage of total Net Sales of Product sold with respect
                  to the Initial Indication in the Schering Territory and in the
                  Territory,

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<PAGE>

         in each case during the six (6) months preceding such period of short
         supply; provided, however, that a minimum of thirty percent (30%) of
         the available Product will be allocated to each Party.

9.6      Priority of Supply for the Additional Indications: In the event that
         Pharmion and Schering are marketing the Product for the Initial
         Indication and either Pharmion or Schering markets the Product for an
         Additional Indication (the "Marketing Party") such that Firm Orders
         placed by the Marketing Party for supply of Product (together with
         those placed by the other Party) would cause the Manufacturer to exceed
         the normal maximum capacity of its Manufacturing facility (the "Output
         Ceiling"), as determined by the written statement of such Manufacturer,
         then

         (a)      Schering will allocate Product such that each of Pharmion and
                  Schering will receive an allocation of Product equal to the
                  average of the last two quarterly orders placed by such Party
                  for the Product with respect to the Initial Indication in its
                  territory, provided that such orders were made to reasonably
                  meet the market needs for the Initial Indication; and

         (b)      Schering will then allocate an amount equal to the excess of
                  the Output Ceiling over the aggregate amount of allocations
                  under Section 9.6(a) (the "Additional Indication Allocation")
                  to the Marketing Party; and

         (c)      In the event that Pharmion and Schering are each a Marketing
                  Party, Schering will then allocate the Additional Indication
                  Allocation between Schering and Pharmion on the basis of
                  proportionality of orders placed by each of the Parties for
                  the Product in the Additional Indication, subject to the
                  application of the calculation rules contained in the
                  provisions of Section 9.5 mutatis mutandis; and

         (d)      In the event that the Additional Indication Allocation is
                  insufficient to fulfill the remaining orders for the Product
                  (the "Unfulfilled Orders"), then Schering will notify Pharmion
                  of such fact as soon as possible and then (i) both Parties
                  shall together request the Manufacturer for an expansion in
                  capacity (in order to raise the Output Ceiling) sufficient to
                  satisfy Unfulfilled Orders for the ensuing three years and
                  (ii) in the event that the Manufacturer is unwilling to, or
                  cannot, increase the Output Ceiling, then the Marketing Party
                  with Unfulfilled

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<PAGE>

                  Orders shall have the right, at its own expense and risk, to
                  contract with another production company (the "Back-Up
                  Manufacturer") for the production and supply of Product to the
                  extent necessary to attract such manufacturer, and Section
                  7.3.4 shall apply mutatis mutandis to the extent Pharmion is
                  the Marketing Party seeking the Back-Up Manufacturer; and

         (e)      In the event that firm orders placed by both Pharmion and
                  Schering as a Marketing Party exceed the capacity of the
                  Back-Up Manufacturer to satisfy Unfulfilled Orders, Schering
                  will then allocate Product Manufactured by the Back-Up
                  Manufacturer to each Marketing Party on the basis of the
                  calculation rules contained in the provisions of Section 9.5
                  mutatis mutandis.

9.7      Output Ceiling. Schering hereby represents to Pharmion that to its
         knowledge the Output Ceiling of Aventis on the Effective Date is
         Finished Goods that equate to 90 kg of Bulk per annum. Schering shall
         promptly notify Pharmion upon receipt of any notice from Aventis of any
         change in the Output Ceiling. In addition, upon a change in the
         Manufacturer contemplated by Section 7.6, Schering shall notify
         Pharmion of the Output Ceiling of such Manufacturer when its
         Manufacturing of Product commences on a commercial scale and thereafter
         upon receipt of any notice from the Manufacturer of any change in the
         Output Ceiling.

10.      PACKAGING AND LABELING; USE OF NAME

10.1     Packaging and Labeling.

         10.1.1   Pharmion shall be responsible for all costs of developing new
                  Packaging and labeling for the Product, provided, however,
                  that for obsolete inventory of Packaging and labeling
                  materials, such responsibility will only extend to obsolete
                  inventories sufficient for up to six (6) months, and shall
                  provide Schering all art work (from vendors approved by
                  Pharmion) and wording to be applied to each Product, which
                  shall be consistent with Agency approved labeling for the
                  Product in the Territory.

         10.1.2   Pharmion shall be responsible for ensuring that all Packaging
                  and labeling, including, but not limited to, the package
                  make-up, package inserts and other elements relating to
                  Packaging as well as all promotional material, complies

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<PAGE>

                  with all laws and regulations applicable to such Packaging and
                  labeling in the Territory.

         10.1.3   Pharmion shall provide the information required under this
                  Section 10 to Schering in advance of delivery requirements for
                  the Product set forth in this Agreement.

         10.1.4   In case Schering or the Manufacturer requires changes to the
                  Packaging for technical reasons (e.g. changes to Packaging
                  technology or equipment), Schering shall bear all costs of
                  such changes and the obsolete inventory of Packaging and label
                  materials, if any, resulting therefrom.

         10.1.5   After each change of Packaging material, twenty-five (25)
                  samples of each new Packaging material shall be provided to
                  Pharmion.

10.2     Name Use: Schering grants Pharmion a non-exclusive, royalty-free
         limited right and sub-license, under Schering's rights pursuant to the
         Aventis Supply Agreement, to use the "Aventis" name solely for the
         purpose of identifying Aventis as the Manufacturer on all Packaging
         materials, labels, inserts and any other printed matter included in the
         Product to the extent required by law, regulations and codes of
         practice in the Territory, on a country-by-country basis.

11.      QUALITY OF PRODUCT

11.1     Manufacturing and Product Changes

         11.1.1   PRODUCT CHANGES: Except for the Required Changes defined in
                  Section 11.1.2 below, Schering shall not make or allow to be
                  made any changes to the Product, Specifications, Manufacturing
                  or Packaging that would require variations to the Marketing
                  Authorization or notification in any country of the Territory,
                  without the prior written consent of Pharmion, such consent
                  not to be unreasonably withheld or delayed. Schering will use
                  Commercially Reasonable Efforts to ensure that the timing of
                  Schering's notice to Pharmion of any such change shall permit
                  adequate time for Pharmion to make any necessary regulatory
                  filings and obtain any necessary approval of the

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<PAGE>

                  corresponding variation to the Marketing Authorization thereof
                  from Agencies prior to the change being implemented.

         11.1.2   REQUIRED CHANGES: The following changes shall constitute
                  Required Changes: (i) changes to the Specifications or
                  Manufacturing or Packaging processes that are required by laws
                  (including, without limitation, GMP), or by medical or
                  scientific concerns as to the toxicity, safety and/or efficacy
                  of the Product (collectively "Required Changes"); (ii) changes
                  to the Specifications or Manufacturing or Packaging processes
                  which arise out of the change of Manufacturer from Aventis to
                  a third party as provided in Sections 7.5 ; and (iii) changes
                  which Schering reasonably considers necessary or desirable and
                  which do not change the character or identity of the Product
                  in such a way as to have an adverse effect on Pharmion's
                  interest in the Product in the Territory. The Parties shall
                  cooperate in making such Required Changes promptly. If a
                  Required Change is necessary because of laws that apply in the
                  Territory but not in the Schering Territory, all costs of
                  making such Required Change shall be borne by Pharmion.
                  Conversely, if a Required Change is necessary because of laws
                  that apply in the Schering Territory but not in the Territory,
                  all costs of making such Required Change shall be borne by
                  Schering. If a Required Change is required by Agencies in both
                  the Territory and the Schering Territory, then Schering and
                  Pharmion shall share equally the cost of such Required Change.
                  If, despite the exercise of Commercially Reasonable Efforts,
                  Schering is unable to make or have such Required Change made
                  without material adverse effects on the Product in the
                  Schering Territory, Schering shall not be required to make
                  such change.

         11.1.3   DISCRETIONARY CHANGES: Pharmion may request changes to the
                  Specifications or Manufacturing or Packaging process that are
                  not Required Changes, including, but not limited to, changes
                  to the existing Product, Product line extensions, or changes
                  to the existing or additional Packaging because the Product
                  will be commercialized in countries other than those where the
                  Product is commercialized as of the Effective Date
                  (collectively "Discretionary Changes"). Schering shall use
                  Commercially Reasonable Efforts to have such Discretionary
                  Changes made unless Schering in good faith considers that such
                  Discretionary Changes requested by Pharmion will have a
                  material adverse effect on the Product or on Schering's
                  ability to

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<PAGE>

                  Manufacture the Product or on Schering's interests in the
                  Product in the Schering Territory.

         11.1.4   COSTS OF DISCRETIONARY CHANGES: Any and all costs associated
                  with Discretionary Changes which are not requested by Schering
                  (including internal administrative costs and the use of
                  external technical consultants by Schering with the written
                  consent of Pharmion, which shall not be unreasonably withheld
                  or delayed, in effectuating such changes) shall be borne by
                  Pharmion. Any and all costs associated with Discretionary
                  Changes initiated by Schering shall be borne by Schering.

11.2     Representations and Warranties by Schering Regarding Manufacturing:
         Schering hereby warrants that during the Term:

         11.2.1   it will use Commercially Reasonable Efforts to have or procure
                  the necessary expertise, personnel, facilities and equipment
                  to Manufacture and Pack the Product as Finished Goods or
                  Semi-Finished Goods in accordance with this Agreement;

         11.2.2   it will use Commercially Reasonable Efforts to procure that
                  the premises, plant and machinery, equipment and procedures
                  used with respect to Product are in compliance with applicable
                  GMP or guidelines of other relevant Agencies; and

         11.2.3   all Product will be Manufactured and Packed by or on behalf of
                  Schering in material compliance with applicable provisions of
                  the requirements of any relevant Agency and in accordance with
                  the Specifications.

11.3     Stability and Record-Keeping: Schering shall ensure that the
         Manufacturer shall:

         11.3.1   select and retain samples of each batch and lot of Finished
                  Goods or Semi-Finished Goods and conduct an ongoing stability
                  program in accordance with the provisions of any Marketing
                  Authorization on selected batches and maintain all legally
                  required samples, documents, and records including, without
                  limitation, batch and lot production, quality control and
                  stability records, for such period as is required by any
                  Agency in the Territory, and

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<PAGE>

         11.3.2   make available for review by Pharmion, at any reasonable time,
                  all records relevant to the performance of the Manufacturer
                  hereunder and necessary for the discharge by Pharmion of its
                  obligations as Marketing Authorization holder in the
                  Territory, including written investigations of any deviations
                  that may have been generated from Manufacturing, Packaging,
                  inspection or testing processes.

11.4     Inspection: Upon reasonable notice to Schering, and in a manner
         calculated not to unreasonably interfere with Schering's or the
         Manufacturer's conduct of business, Schering shall, subject to delivery
         to Schering and the Manufacturer of appropriate confidentiality
         agreements, allow Pharmion's employees or representatives to inspect
         the Manufacturing, Packaging, testing, storing, stability and quality
         control facilities and/or programs of the Manufacturer or Schering
         which relate to the Product in the Territory and which Pharmion
         reasonably needs to inspect in order to discharge its obligations as
         Marketing Authorization holder in the Territory. The right of
         inspection shall not be deemed to encompass a GMP audit.

12.      DELIVERY

12.1     Delivery Dates: Unless otherwise agreed to by the Parties, deliveries
         shall be made on a monthly basis. Product ordered for a particular
         month shall be delivered within ninety (90) days of the date in which
         such month in the Long-Range Forecast first becomes a Firm Order. At
         the time Pharmion places a Firm Order, Pharmion will provide Schering
         with specific delivery dates. To the extent that such delivery dates
         are consistent with such ninety (90) day period, Schering shall
         acknowledge such delivery dates in its order confirmations, whereupon
         such delivery dates shall become binding.

12.2     Delivery: Deliveries of Product shall be made Ex Works ("EXW") (as such
         term is defined in the INCOTERMS 2000) Manufacturer's Packing facility.
         Title in the Product and all risks of loss or damage to Product shall
         remain with Schering until Product is delivered to the carrier for
         shipment at the EXW point at which time title and all risks of loss or
         damage shall transfer to Pharmion. Schering agrees to, in accordance
         with Pharmion's reasonable written instructions, arrange for shipping
         and insurance, to be paid by Pharmion from the EXW point to such
         locations as are requested by Pharmion. Pharmion may select the freight
         carrier used by Schering to

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<PAGE>

         ship the Product and may monitor Schering's shipping and freight
         practices as they pertain to this Agreement; provided, however, if the
         freight carrier selected by Pharmion fails to arrive on the scheduled
         date and time, all risks of loss or damage shall transfer to Pharmion
         at the time when the selected carrier was scheduled to arrive.

12.3     Timing of Delivery: Schering shall use Commercially Reasonable Efforts
         to meet the delivery dates and order quantities indicated in Pharmion's
         binding and accepted Firm Orders for the Product. If any circumstances
         occur that could result in any delivery delay or significant variation
         in quantity, Schering shall immediately inform Pharmion thereof in
         sufficient detail for Pharmion to assess the likelihood that such
         delivery delay or variation in quantity will adversely affect its
         inventory situation. Any shipment delivered that is within plus or
         minus five percent (+/-5%) of the quantity ordered and/or plus or minus
         five (+/-5) Business Days of the delivery date specified on the
         relevant Firm Order will be considered as delivered on time.

12.4     Inspection and Acceptance

         12.4.1   DEFECTS

                  (a)      Promptly, but in no case later than eight (8)
                           Business Days of receipt of a shipment of Product,
                           Pharmion shall inspect (or have inspected) such
                           shipment for transport damages, completeness and, as
                           far as reasonably possible, any other defects.
                           Pharmion shall promptly, and in no event more than
                           eight (8) Business Days after receipt of such
                           Product, notify Schering of such defect.

                  (b)      Within forty-five (45) days after the Inception Date,
                           the Parties will agree upon the quality control
                           procedures to be used by Pharmion to determine if the
                           Product is in compliance with Specifications (the
                           "Quality Control Procedures"). Pharmion shall
                           promptly, and in no event more than eight (8)
                           Business Days after such defect was discovered using
                           the Quality Control Procedures (but in no event later
                           than forty-five (45) days after receipt of such
                           shipment) notify Schering if any shipment of Product
                           includes Product that is not in conformance with the
                           applicable Specifications

                                      37

<PAGE>

         12.4.2   LATENT DEFECTS: In the case of Product with latent defects not
                  readily discoverable within the forty-five (45) days set forth
                  in Section 12.4.1(b) using the Quality Control Procedures,
                  Pharmion shall promptly, and in no event more than eight (8)
                  Business Days of discovery of such latent defect, notify
                  Schering of such latent defect.

         12.4.3   FAILURE TO NOTIFY: If Pharmion fails to notify Schering of a
                  defect in accordance with Section 12.4.1 or 12.4.2, the
                  Product shall be deemed to be acceptable to Pharmion.

         12.4.4   DISAGREEMENT REGARDING DEFECTIVE PRODUCT: If Schering does not
                  agree with Pharmion's analysis that a shipment includes a
                  Product with a defect ("Defective Product"), then the parties
                  will submit the Shipment Samples (as defined in Section 12.6)
                  taken from the batch corresponding to the allegedly Defective
                  Product, to a mutually agreeable independent testing
                  laboratory to verify the alleged nonconformity in accordance
                  with the testing procedures set forth in the Technical
                  Assistance Agreement. Such independent laboratory shall
                  determine if the Shipment Samples are in compliance with the
                  Specifications using the Quality Control Procedures. The
                  findings of such independent laboratory shall be binding upon
                  the Parties. The fees and expenses charged by such laboratory
                  shall be paid by the Party in error.

         12.4.5   REPLACEMENT OF DEFECTIVE PRODUCT: If any shipment of Product
                  does not comply with the Specifications, for reasons primarily
                  attributable to Schering or the Manufacturer, Schering shall
                  remedy or have remedied such defect at its own cost and in
                  agreement with Pharmion. If this is not possible or advisable
                  for regulatory, technical, quality, medical or economic
                  reasons, the shipment shall be properly destroyed and/or
                  disposed of at Schering's expense. Schering shall not be
                  entitled to any remuneration for any such unusable shipment.
                  Schering shall use Commercially Reasonable Efforts to provide
                  a replacement delivery as quickly as possible contingent upon
                  the receipt or availability of all Pharmion supplied
                  Components and Bulk.

         12.4.6   ABSENCE OF CLAIM: Except as otherwise provided in this
                  Agreement, where Schering has complied with its obligations
                  under this Section 12, Pharmion

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<PAGE>

                  shall have no claim or remedy against Schering arising from
                  the delivery of defective Product.

12.5     Certificates of Analysis and Compliance: Schering shall deliver to
         Pharmion, together with each delivery of each batch of Product, the
         corresponding Certificate of Compliance and the Certificate of Analysis
         relating to such batch. The Certificate of Analysis shall give full
         analytical results with respect to regulatory Specifications for each
         batch. The Qualified Person working for the Manufacturer shall sign a
         Certificate of Compliance confirming that the Product has been made and
         tested in accordance with the master batch record, the Specifications
         and the test methods specified in the approved registration dossier.
         Schering shall promptly inform Pharmion of significant events and/or
         results including, but not limited to, quality incidents and batch
         deviations which may have occurred during the Manufacturing and/or
         Packing and which might affect the quality of the Product.

12.6     Shipment Samples: Schering shall ensure that Manufacturing and quality
         control documentation as well as sufficient and representative retained
         samples of the relevant Semi-Finished Goods or Finished Goods
         ("Shipment Samples") are maintained, in compliance with GMP. The
         responsible persons for quality control for both Parties shall agree
         upon the amount of Shipment Samples to be retained for this purpose.
         The amount of retained shipment samples shall be sufficient to perform
         at least two (2) full tests, as described in Section 5.5 of the
         Technical Assistance Agreement.

13.      SUPPLY PRICE

13.1     Schering shall supply Product to Pharmion at the Manufacturer's Supply
         Price plus a five percent (5%) mark-up (the "Supply Payment").

13.2     For as long as Aventis is the Manufacturer, increases in Manufacturer's
         Supply Price will be calculated in accordance with the provisions of
         Article 7 of the Aventis Supply Agreement. Schering shall keep Pharmion
         informed of all proposed and actual increases in the Manufacturer's
         Supply Price as soon as such increases are notified to Schering.

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<PAGE>

13.3     Pharmion acknowledges that Schering is obliged to pay royalties to
         Chiron under the terms of the Chiron License Agreement in respect of
         the global Product sales. Pharmion will therefore make the following
         payments in addition to the Supply Payments for the term of the Chiron
         License Agreement:

                  4% on all payments from Pharmion to Schering in respect of
                  Product supplied to Pharmion by Schering ("Pharmion Supply
                  Payments") until the total of sales by Schering to Pharmion
                  for the Territory and sales by Schering to third parties in
                  the Schering Territory ("Schering Net Chiron Sales") reach
                  (euro)51,129,200 per calendar year;

                  3.5% on all Pharmion Supply Payments in respect of Schering
                  Net Chiron Sales between DM100 million and (euro)153,387,600
                  per calendar year;

                  3% on all Pharmion Supply Payments in respect of Schering Net
                  Chiron Sales between DM300 million and (euro)306,775,200 per
                  calendar year; and

                  2.5% on all Pharmion Supply Payments in respect of Schering
                  Net Chiron Sales in excess of (euro)306,775,200 per calendar
                  year.

         13.3.1   PAYMENT MECHANISM FOR CHIRON ROYALTIES. Pharmion shall pay the
                  royalties described in Section 13.3 to Schering on a calendar
                  quarterly basis, commencing with the quarter in which the
                  Effective Date occurs, based upon Pharmion Supply Payments
                  made during the preceding quarter, such payments to be made
                  within 45 days after the end of each such calendar quarterly
                  period. During the course of each calendar year, the royalty
                  rate paid by Pharmion to Schering on a quarterly basis, will
                  be the weighted average royalty rate applicable to the
                  Schering Net Chiron Sales achieved during the immediately
                  preceding calendar year, with the running rate for the
                  calendar year in which the Effective Date occurs being hereby
                  established at 4.0%. Within sixty (60) days after the
                  completion of each calendar year during the term of this
                  Agreement, Schering will deliver a certificate to Pharmion,
                  prepared by a senior officer in its accounting department,
                  setting forth a calculation of the royalties actually paid by
                  Schering to Chiron under the Chiron License Agreement, the
                  applicable percentage royalty rates utilized to determine such
                  royalties, the amount of minimum royalties paid to Chiron that

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<PAGE>

                  were not otherwise credited against running royalties payable
                  to Chiron, and an allocation of such payments between Schering
                  and Pharmion ("Allocated Royalty Payments"). Such certificate
                  shall also set forth a calculation of the amount by which the
                  Allocated Royalty Payments attributable to Pharmion Supply
                  Payments were either greater than or less than the royalty
                  payments actually made by Pharmion to Schering in respect of
                  Chiron royalties during the immediately preceding calendar
                  year. If such certificate shows that the amounts paid by
                  Pharmion to Schering during such calendar year exceeded the
                  Allocated Royalty Payments attributable to Pharmion, Schering
                  shall promptly pay the difference to Pharmion by wire
                  transfer, and, conversely, if such certificate shows that the
                  Allocated Royalty Payments attributable to Pharmion exceeded
                  the amounts paid by Pharmion to Schering during such calendar
                  year in respect of Chiron royalties, Pharmion shall promptly
                  pay the difference to Schering by wire transfer.

13.4     Payment for the Product shall be made by Pharmion to Schering in the
         following manner and provided that Pharmion has first received an
         invoice from Schering in respect thereof:

         13.4.1   payment shall be made within thirty (30) days of the end of
                  the calendar month in which Schering delivers the Product to
                  Pharmion and Pharmion accepts such Product in accordance with
                  Section 12.4.1;

         13.4.2   payment shall be made by Pharmion in Euro to such bank account
                  as Schering shall from time to time in writing designate; and

         13.4.3   payment shall be made together with any value added or other
                  sales tax which may be due thereon.

13.5     Payments not made on the due date shall bear interest beginning the due
         date and ending the payment date at the one-month EURIBOR fixed on the
         due date plus 1% per annum, calculated on the basis of a 360-day year,
         actual days elapsed. The interest rate shall be adjusted and interest
         shall be compounded in arrears each month from the due date.

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14.      ADVERSE REACTIONS; COMPLAINTS

14.1     Preparation of Standard Operating Procedure: Each Party will have
         reporting responsibility in its own territory and for exchange of drug
         related information arising out of its territory with the other Party.
         Within sixty (60) days of execution of this Agreement, the Parties
         agree to enter into a standard operating procedure to govern
         collection, investigation and reporting to regulatory authorities and
         to each other of Product-related adverse drug experience reports,
         quality reports, and complaint reports, such that each of the Parties
         can comply with its legal obligations worldwide. The standard operating
         procedure will be promptly amended as changes in legal obligations
         require.

14.2     Agency Action: The Parties agree to notify each other as soon as
         possible of any information received by a Party regarding any
         threatened or pending action by an Agency which may affect the safety
         or efficacy claims of the product or the continued marketing of the
         Product.

14.3     Each Party shall have the sole responsibility for responding to
         questions and complaints from its customers and for reporting adverse
         drug events (as defined by the applicable regulations) to the relevant
         health authorities in the countries in its respective territory in
         which it holds Marketing Authorization, unless otherwise required by
         applicable laws, rules or regulations. Each Party is responsible for
         providing submissions and information to appropriate regulatory
         authorities and the other Party regarding regulatory issues, including
         pharmaco-vigilance and safety submissions concerning the Product, in
         the Territory. Each Party will cooperate with the other Party in
         reporting adverse events as provided in this Article 14.

14.4     Product Recalls

         If any governmental authority having jurisdiction requires or
         reasonably requests either Party to recall any Product due to a defect
         in the Manufacture, processing, packaging or labeling of the Product or
         for any other reason whatsoever, such Party shall immediately notify
         the other Party to this Agreement. Each Party shall also have the right
         to initiate a recall in its own territory in the absence of a request
         from a governmental authority after consultation with the other Party.

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<PAGE>

         Prior to commencing any recall, the Party commencing such recall shall
         review with the other Party the proposed manner in which the recall is
         to be carried out. Each Party agrees to follow any reasonable advice of
         the other Party as to the manner of carrying out the recall, so long as
         such advice is not contrary to any instructions of any governmental
         authority involved in the recall. The Party commencing the recall shall
         carry out the recall in the manner agreed upon between Schering and
         Pharmion in as expeditious a manner as possible and in such a way as to
         cause the least disruption to sales of the Product and to preserve the
         goodwill and reputation attached to the Product and to the names of the
         Parties. Without prejudice to Pharmion's rights against Schering
         pursuant to this Agreement, Pharmion shall bear all costs of any
         product recall carried out in the Territory; provided that Schering
         shall promptly reimburse Pharmion for cost of any recall resulting from
         the Product having latent defect.

15.      UNDERTAKINGS OF PHARMION; IMPROVEMENTS

15.1     Throughout the term of this Agreement, Pharmion shall:

15.1.1   at its own expense, use Commercially Reasonable Efforts actively to
         promote sales of the Product, after the Effective Date, in all
         countries in the Territory in which it is commercially reasonable to do
         so, taking into account the Product's Commercial Potential;

15.1.2   obtain and maintain all necessary consents, permits and approvals to
         sell the Product in the Territory, including the Marketing
         Authorizations, and comply with all relevant laws and regulations in
         connection therewith;

15.1.3   recognise the exclusive ownership by Schering of the Patents and of any
         proprietary Schering name, logotype or Trade Marks furnished by
         Schering (including Schering's affiliates) for use in connection with
         the Product;

15.1.4   not, either while this Agreement is in effect or at any time
         thereafter, register, use or challenge or assist others to challenge
         the Trade Marks or attempt to obtain any right in or to any such name,
         logotype or trade mark similar to the Trade Marks in relation to the
         Product as defined in this Agreement;

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<PAGE>

15.1.5   subject to the provisions of Sections 6.4, 7 and 9.6(d), not grant
         sublicenses or assignments to third parties under the Patents or the
         Trade Marks and not pledge the Patents or the Trade Marks or make them
         the subject of any other rights in rem; provided that Pharmion shall
         have the right, without the consent of Schering but on written
         notification to Schering to sublicense its distribution and Data rights
         hereunder (but not any further rights under this Agreement) to: (i)
         Affiliates; and (ii) a Recognized Agent who would otherwise be
         prevented legally from distributing the Product in the country in which
         he has been selected to act as Recognized Agent.

15.1.6   ensure that each designated Recognized Agent shall fully abide by the
         terms and conditions in this Agreement, including without limitation
         the confidentiality obligations contained in Section 18 of this
         Agreement ;

15.1.7   notify Schering:

                  (a)      as soon as reasonably practicable of any complaints
                           received by it from customers, users or prescribers
                           in relation to the Product in the Territory; and

                  (b)      forthwith of any actual, suspected or alleged adverse
                           effect of or defects with or in the Manufacture of
                           the Product of which it becomes aware. In determining
                           what constitutes "forthwith" notification as referred
                           to above, Pharmion recognises and acknowledges that
                           at all times Schering is subject to certain
                           pharmacovigilance obligations under Directive
                           75/319/EEC and any applicable Regulations, Directives
                           or guidance amending, replacing or implementing the
                           same;

                  it being understood that once the standard operating
                  procedures contemplated by Section 14.1 are established
                  between the Parties, the foregoing notices shall be provided
                  in accordance with such procedures;

15.1.8   not cause or permit anything which may damage or endanger the Trade
         Marks or the Patents or other intellectual property of Schering or
         Schering's title to it or assist or allow others to do so;

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<PAGE>

15.1.9   notify Schering of any suspected infringement of the Trade Marks or the
         Patents and take such reasonable action as Schering may direct at
         Schering's expense in relation to such infringement.

15.1.10  not modify or alter the Trade Marks or do anything which might
         reasonably be expected to damage the Trade Marks;

15.1.11  indemnify Schering from any damage claims of third parties if Pharmion
         should use the Patents or the Trade Mark contrary to the provisions of
         this Agreement;

15.1.12  market, sell and distribute the Product only in livery and in packaging
         as notified by Pharmion to Schering and agreed by Schering, such
         agreement not to be unreasonably withheld or delayed. Pharmion will be
         responsible for the accuracy of any information which it supplies to
         Schering in connection with the requirements for the Manufacture,
         packaging, labelling, marketing and sale of the Product, to the extent
         that the accuracy of such information may relate to compliance with
         legal and regulatory requirements, and will indemnify Schering against
         any failure on its part to fulfil its obligations under this section;

15.1.13  following the transfer of the Marketing Authorizations, ensure the
         compliance of the Product' labels and packaging with the requirements
         of the Marketing Authorizations and notify Schering of any breach of
         those requirements; and

15.2     Pharmion hereby warrants that:

15.2.1   This Agreement is a legal and valid obligation binding upon Pharmion
         and enforceable in accordance with its terms. The execution, delivery
         and performance of the Agreement by Pharmion does not conflict with any
         agreement, instrument or understanding, oral or written, to which it is
         a party or by which it is bound, nor violate any law or regulation of
         any court, governmental body or administrative or other agency having
         jurisdiction over it.

15.2.2   Pharmion has not, and during the term of this Agreement will not, grant
         any right to any third party which would conflict with the rights
         granted to Schering hereunder.

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<PAGE>

15.2.3   Pharmion is a wholly owned subsidiary of Pharmion Corporation, a
         Delaware corporation. The execution, delivery and performance of the
         Agreement by Pharmion Corporation for purposes of the guarantee
         contained in Section 33 below does not conflict with any agreement,
         instrument or understanding, oral or written, to which Pharmion
         Corporation is a party or by which it is bound, nor violate any law or
         regulation of any court, governmental body or administrative or other
         agency having jurisdiction over it.

15.3     Improvements: Each Party shall forthwith disclose to the other Party
         details of all Improvements made by it during the term of the
         Agreement. Such Party shall grant to the other Party a non-exclusive,
         irrevocable, worldwide, royalty-free license, without limit of time,
         with the right to assign and to grant sub-licenses thereunder, to use
         all Improvements made by or on behalf of it during the term of this
         Agreement and to use and exploit all intellectual property rights in
         respect thereof owned by it or any assign or successor in title of it.

16.      UNDERTAKINGS AND WARRANTIES OF SCHERING

16.1     Throughout the term of this Agreement, Schering shall:

16.1.1   notify Pharmion:

                  (a)      as soon as reasonably practicable of any complaints
                           received by it from customers, users or prescribers
                           in relation to the Product in the Schering Territory;
                           and

                  (b)      forthwith of any actual, suspected or alleged adverse
                           effect of or defects with or in the Manufacture of
                           the Product of which it becomes aware. In determining
                           what constitutes "forthwith" notification as referred
                           to above, Pharmion recognises and acknowledges that
                           at all times Schering is subject to certain
                           pharmacovigilance obligations under Directive
                           2001/83/EC and any applicable Regulations, Directives
                           or guidance amending, replacing or implementing the
                           same, and Schering recognizes and acknowledges that
                           similar obligations will apply to Pharmion upon the
                           transfer of the Marketing Authorizations;

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<PAGE>

                  it being understood that once the standard operating
                  procedures contemplated by Section 14.1 are established
                  between the Parties, the foregoing notices shall be provided
                  in accordance with such procedures;

16.1.2   at its own expense, maintain the Trade Marks and the Patents, including
         the payment of all renewal fees, and not assign or license the Trade
         Marks to any person without Pharmion's prior written consent, such
         consent not to be unreasonably withheld;

16.1.3   at its own expense, take all such steps, including initiating
         proceedings, as Pharmion may reasonably require to stop any alleged
         infringement of the Trade Marks or the Patents in the Territory or to
         defend the Trade Marks or the Patents from any attack, including any
         invalidity or revocation proceedings; at Schering's request, Pharmion
         shall give Schering all reasonable assistance in respect of any such
         proceedings, subject to Schering meeting all reasonable costs and
         expenses incurred by Pharmion in giving such assistance. If Schering is
         not willing or interested in initiating action against an infringer,
         Pharmion shall be entitled, but not obligated, to enter an action in
         its own name based on the infringement of the Trade Marks or Patents
         subject to Schering's consent. Schering may only refuse its consent for
         good cause and will give Pharmion all assistance as Pharmion may
         reasonably request in connection with any such action;

16.1.4   Schering shall have the exclusive right to enter oppositions against
         the filing or registration of trade marks. The same shall apply for
         petitions for cancellations and actions for cancellations entered
         against the registration of the trade marks of third parties; and

16.1.5   not cause or permit anything which may damage or endanger the Trade
         Marks or the Patents or other intellectual property of Schering or
         Schering's title to it or assist or allow others to do so.

16.2     Schering hereby warrants that:

16.2.1   This Agreement is a legal and valid obligation binding upon Schering
         and enforceable in accordance with its terms. The execution, delivery
         and performance of the Agreement by Schering does not conflict with any
         agreement, instrument or understanding, oral or written, to which it is
         a Party or by which it is bound, nor violate

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<PAGE>

         any law or regulation of any court, governmental body or administrative
         or other agency having jurisdiction over it.

16.2.2   Schering has not, and during the term of this Agreement will not, grant
         any right to any third party which would conflict with the rights
         granted to Pharmion hereunder.

16.2.3   it is the owner or licensee of the Trade Marks and, unless indicated
         otherwise in Schedule 4, to the best of the knowledge and belief of
         Schering, the use of the Trade Marks and the supply of the Product in
         the Territory by Pharmion will not infringe the intellectual property
         rights of any third party; and

16.2.4   it is the owner of, or it has the right to use, and is entitled to
         permit Pharmion to use in accordance with the terms of this Agreement,
         the Data.

17.      RIGHT OF FIRST REFUSAL

         In the event that: (i) Schering or an Affiliate should decide to
         license or sell all of its rights to the Product in the Schering
         Territory to a third party; or (ii) Pharmion should decide to license
         or sell all of its rights to the Product in the Pharmion Territory, in
         each case in a stand-alone transaction, Schering or Pharmion, as the
         case may be, shall first provide the other Party with notice of this
         intention and shall provide the other Party with a period of six weeks
         during which the Parties - if the receiving Party so decides - will
         negotiate in good faith to obtain rights to the Product in the other
         Party's Territory. If the Parties shall not come to an agreement within
         such six weeks period, the disposing Party shall be entitled to license
         or sell such rights to any third party provided that it does not do so
         on terms more favorable to the third party than those offered to the
         other Party.

18.      CONFIDENTIALITY

18.1     Except to the extent expressly authorized by this Agreement or
         otherwise agreed in writing, the Parties agree that, for the term of
         this Agreement and for seven (7) years thereafter, the receiving Party
         shall keep confidential and shall not publish or otherwise disclose or
         use for any purpose other than as provided for it by this Agreement any
         Data or other information and materials furnished to it by the other
         Party pursuant to this Agreement (collectively "Confidential
         Information"), except to

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<PAGE>

         the extent that it can be established by the receiving Party that such
         Confidential Information:

         (a)      was already known to the receiving Party, other than under an
                  obligation of confidentiality, at the time of disclosure by
                  the other Party;

         (b)      was generally available to the public or otherwise part of the
                  public domain at the time of its disclosure to the receiving
                  Party;

         (c)      became generally available to the public or otherwise part of
                  the public domain after its disclosure and other than through
                  any act or omission of the receiving Party in breach of this
                  Agreement;

         (d)      was disclosed to the receiving Party, other than under an
                  obligation of confidentiality, by a third party who had no
                  obligation to the disclosing Party not to disclose such
                  information to others; or

         (e)      was subsequently developed by the receiving Party without use
                  of the Confidential Information as demonstrated by competent
                  written records.

18.2     Each Party may disclose Confidential Information hereunder to the
         extent that such disclosure is reasonably necessary for exercising its
         rights and carrying out its obligations under this Agreement and in
         complying with applicable governmental regulations or conducting
         preclinical or clinical trials as authorized under this Agreement,
         provided that if a Party is required by law or regulation to make any
         such disclosure of the other Party's Confidential Information it will,
         except where impracticable for necessary disclosures (for example, in
         the event of medical emergency), give reasonable advance notice to the
         other Party of such disclosure requirement and, except to the extent
         inappropriate in the case of patent applications, will use its
         reasonable efforts to secure confidential treatment of such
         Confidential Information required to be disclosed.

18.3     This Article 18 shall survive termination or expiration of this
         agreement for a period of ten (10) years.

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<PAGE>

18.4     Publications. Each Party shall use Commercially Reasonable Efforts to
         ensure, as to any clinical study of the Product which is supported by
         such Party (a "Sponsoring Party") (whether for the Initial Indication
         or any Additional Indication), that the principal investigator for such
         study agrees to send to both Parties, or permit the Sponsoring Party to
         send to the other Party (the "Receiving Party"), prior to submission
         for publication, a copy of a manuscript describing the results of such
         clinical study. The Receiving Party will promptly review such
         manuscript and send any comments which it may have to the Sponsoring
         Party, no later than thirty (30) days after receipt of such manuscript.
         Provided such comments are given on a timely basis, the Sponsoring
         Party will give due consideration to the comments of the Receiving
         Party and will use Commercially Reasonable Efforts to ensure that such
         principal investigator will give due consideration to the comments of
         the Receiving Party and will not submit such manuscript for publication
         until the Sponsoring Party has had an opportunity to consider the
         comments of the Receiving Party. Nothing herein contained, however,
         shall preclude the Sponsoring Party or the principal investigator from
         submitting any such manuscript for publication after the procedures
         described above have been followed, nor shall either the Sponsoring
         Party or the principal investigator be required to accept any
         amendments, additions or deletions in any such manuscript proposed by
         the Receiving Party. Following publication of any such manuscript, each
         Party shall be entitled to make such manuscript available to physicians
         in its Territory, or the Schering Territory, as the case may be.

19.      INDEMNITIES AND INSURANCE

19.1     Schering will indemnify and hold Pharmion and its Affiliates, and their
         employees, officers and directors harmless against any loss, damages,
         action, suit, claim, demand, liability, expense, bodily injury, death
         or property damage (a "Loss"), that may be brought, instituted or arise
         against or be incurred by such persons to the extent such Loss is based
         on or arises out of: (a) the development or Manufacture of a Product by
         Schering or its Affiliates, the Manufacturer or their representatives,
         agents or subcontractors under this Agreement, or any actual or alleged
         violation of law resulting therefrom; or (b) the breach by Schering of
         any of its covenants, representations or warranties set forth in this
         Agreement; provided that the foregoing indemnification shall not apply
         to any Loss to the extent such Loss is caused by the negligent or
         wilful misconduct of Pharmion and its Affiliates.

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<PAGE>

19.2     Pharmion will indemnify and hold Schering, and its Affiliates, and
         their employees, officers and directors harmless against any Loss that
         may be brought, instituted or arise against or be incurred by such
         persons to the extent such Loss is based on or arises out of the
         development, Manufacture (but only if Pharmion is then entitled to
         Manufacture Product under the terms of this Agreement), use, sale,
         storage or handling of Product by Pharmion or its Affiliates or their
         representatives, agents or subcontractors under this Agreement, or any
         actual or alleged violation of law resulting therefrom; or (b) the
         breach by Pharmion of any of its covenants, representations or
         warranties set forth in this Agreement; provided that the foregoing
         indemnification shall not apply to any Loss to the extent such Loss is
         caused by the negligent or wilful misconduct of Schering or its
         Affiliates.

         Each Party entitled to be indemnified by the other Party (an
         "Indemnified Party") pursuant to Section 19.1 or 19.2 hereof shall give
         notice to the other Party (an "Indemnifying Party") promptly after such
         Indemnified Party has actual knowledge of any threatened or asserted
         claim as to which indemnity may be sought, and shall permit the
         Indemnifying Party to assume the defense of any such claim or any
         litigation resulting therefrom; provided that counsel for the
         Indemnifying Party, who shall conduct the defense of such claim or any
         litigation resulting therefrom, shall be approved by the Indemnified
         Party (whose approval shall not unreasonably be withheld) and the
         Indemnified Party may participate in such defense at such Party's
         expense (unless (i) the employment of counsel by such Indemnified Party
         has been authorized by the Indemnifying Party; or (ii) the Indemnified
         Party shall have reasonably concluded that there may be a conflict of
         interest between the Indemnifying Party and the Indemnified Party in
         the defense of such action, in each of which cases the Indemnifying
         Party shall pay the reasonable fees and expenses of one law firm
         serving as counsel for the Indemnified Party, which law firm shall be
         subject to approval, not to be unreasonably withheld, by the
         Indemnifying Party); and provided further, that the failure of any
         Indemnified Party to give notice as provided herein shall not relieve
         the Indemnifying Party of its obligations under this Agreement to the
         extent that the failure to give notice did not result in harm to the
         Indemnifying Party. No Indemnifying Party, in the defense of any such
         claim or litigation, shall, except with the approval of each
         Indemnified Party which approval shall not be unreasonably withheld,
         consent to entry of any judgment or enter into any settlement which (i)
         would result in injunctive or other relief being imposed against the
         Indemnified Party; or (ii) does not include as an unconditional term
         thereof giving by

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<PAGE>

         the claimant or plaintiff to such Indemnified Party of a release from
         all liability in respect to such claim or litigation. Each Indemnified
         Party shall furnish such information regarding itself or the claim in
         question as an Indemnifying Party may reasonably request in writing and
         shall be reasonably required in connection with the defense of such
         claim and litigation resulting therefrom.

19.3     Each Party shall obtain and maintain in full force and effect
         throughout the term of this Agreement insurance in respect of its
         obligations to indemnify the other under this Section 19. Each Party
         shall, on the request of the other, provide the other with a copy of
         any such insurance policy and shall pay all premiums due in respect of
         any such insurance policy as soon as they become due and on request
         provide evidence to the other that such payment has been made.

20.      DURATION AND TERMINATION

20.1     This Agreement will come into force on the Effective Date and, subject
         to the Parties' rights of termination in Sections 20.2 and 20.3
         hereunder, will continue in force for a period of twenty (20) years
         from the Effective Date. Within the twelve (12) month period
         immediately preceding expiry, the Parties shall discuss in good faith
         entering into a new form of co-operation with one another, to take
         effect after expiry of this Agreement as aforesaid.

20.2     In addition to its rights of termination in accordance with Section 23,
         Pharmion shall have the right at any time by giving notice in writing
         to Schering to terminate this Agreement forthwith if Schering:

         20.2.1   commits a material breach of this Agreement which is not
                  remedied within thirty (30) days of receipt of a notice from
                  Pharmion specifying the breach and requiring it to be remedied
                  (or, in the case of a breach not capable of being remedied
                  within such 30-day period, Schering has failed within such
                  period to take good faith steps to remedy such breach); or

         20.2.2   enters into liquidation whether compulsorily or voluntarily
                  (otherwise than for the purposes of amalgamation or
                  reconstruction), compounds with its creditors, has a receiver
                  or manager appointed in respect of all or any part of its
                  assets, or is the subject of an application for an
                  administration order or

                                      52
<PAGE>

                  undergoes any analogous or similar act or proceeding under the
                  laws of any other jurisdiction in consequence of debt.

20.3     In addition to its rights of termination in accordance with Section 23,
         Schering shall have the right at any time by giving notice in writing
         to Pharmion to terminate this Agreement forthwith if Pharmion:

         20.3.1   commits a material breach of this Agreement which is not
                  remedied within thirty (30) days of receipt of a notice from
                  Pharmion specifying the breach and requiring it to be remedied
                  (or, in the case of a breach not capable of being remedied
                  within such 30-day period, Pharmion has failed within such
                  period to take good faith steps to remedy such breach); or

         20.3.2   enters into liquidation whether compulsorily or voluntarily
                  (otherwise than for the purposes of amalgamation or
                  reconstruction), compounds with its creditors, has a receiver
                  or manager appointed in respect of all or any part of its
                  assets, or is the subject of an application for an
                  administration order or undergoes any analogous or similar act
                  or proceeding under the laws of any other jurisdiction in
                  consequence of debt.

21.      CONSEQUENCES OF TERMINATION

21.1     Subject to the provisions of this Section 21, upon termination or
         expiry of this Agreement:

21.1.1   Pharmion shall cease to make use of the Trade Marks, Patents and Data,
         and all rights in the Trade Marks, Patents and Data will revert to
         Schering; and

21.1.2   any Manufacturing rights held by Pharmion will cease.

21.2     Notwithstanding the provisions of Section 21.1, upon termination or
         expiry of this Agreement, Pharmion will be entitled:

21.2.1   to fulfil orders it has received for the Product in the Territory up to
         and including the date of termination, and, unless Schering is no
         longer supplying Product to Pharmion immediately prior to the date of
         termination, Schering shall supply or procure the

                                      53
<PAGE>

         supply of such Product to Pharmion on the terms of this Agreement to
         enable such orders to be fulfilled for a maximum of one (1) year after
         the date of termination; and

21.2.2   to use any stock of Product in its possession or ordered from Schering
         as at the date of termination to fulfil any orders referred to in
         Section 21.2.1 and, in addition, Pharmion shall be entitled to supply
         any Product forming part of such stock which are in excess of those
         required to fulfil such orders on terms to be agreed with Schering.

                  Where Pharmion supplies any Product in accordance with this
                  Section 21.2, it shall be entitled to do so under and by
                  reference to the Trade Marks and shall supply such Product
                  subject to the terms and conditions of this Agreement.

21.3     Pharmion will, at the request of Schering, as soon as reasonably
         practicable following the cessation of all Pharmion's supplies of
         Product in accordance with Section 21.2, apply for a change in
         ownership of the Marketing Authorizations naming Schering or Schering's
         nominee as the new Marketing Authorization holder in the place of
         Pharmion and return to Schering all Data and other information relating
         to the Product provided to Pharmion by Schering pursuant to this
         Agreement.

21.4     Termination or expiry of this Agreement for any reason shall be without
         prejudice to the accrued rights of either Party.

22.      RIGHTS AND REMEDIES

22.1     The failure on the part of either Party hereto to exercise or enforce
         any rights conferred upon it by this Agreement shall not be a waiver of
         any such rights nor shall any single or partial exercise of any right,
         power or privilege or further exercise thereof operate so as to bar the
         later exercise or enforcement thereof.

22.2     The rights and remedies herein provided are cumulative and not
         exclusive of any rights or remedies provided by law.

23.      FORCE MAJEURE

         Neither Party shall be in breach of this Agreement if there is any
         total or partial failure of performance by it of its duties and
         obligations under this Agreement by reason of

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         force majeure. If either Party is unable to perform its duties and
         obligations under this Agreement as a direct result of force majeure,
         such Party shall give written notice to the other of such inability
         stating the reason in question. Without prejudice to Pharmion's right
         to Manufacture Product pursuant to Sections 6.4, 7 and 9.6(d), the
         operation of this Agreement shall be suspended during the period in
         which the force majeure continues. Forthwith upon the reason ceasing to
         exist, the Party relying upon it shall give notice to the other of this
         fact. If the force majeure continues for a period of more than ninety
         (90) days, the Party not relying on force majeure shall be entitled to
         terminate this Agreement forthwith by written notice to the other.

24.      NOTICE

24.1     Any notice or other document required to be given under this Agreement
         shall be in writing and shall be served by:

24.1.1   delivery by hand;

24.1.2   sending the same by first class post or express or air mail or other
         fast postal services or registered or recorded delivery post; or

24.1.3   facsimile transmission (together with postal confirmation);

         addressed:

         if to Schering:            Schering AG
                                    D13342 Berlin
                                    Germany
                                    Attention: Legal Department

                                    Fax: +49-30-4 68-1 40 86

         if to Pharmion:            Pharmion GmbH
                                    c/o Pharmion Corporation
                                    4865 Riverbend Road
                                    Boulder, Colorado 80301 USA
                                    Attention: Chief Executive Officer

                                    Fax: +1 720 564-9191

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                                    with a copy to:

                                    Peter H. Jakes, Esq.
                                    Willkie Farr & Gallagher
                                    787 Seventh Avenue
                                    New York, New York 10019 USA

                                    Fax: +1 212 728-9230

         or to such other address as may be designated in writing from time to
         time by either Party to the other.

24.2     Any notice given under Section 24.1 shall be deemed to have been
         received:

         (i)      in the case of delivery by hand, when delivered;

         (ii)     in the case of pre-paid post, on the third day following the
                  day of posting; or

         (iii)    in the case of facsimile, on acknowledgement by the recipient
                  facsimile receiving equipment provided that the facsimile is
                  confirmed by post.

25.      ENTIRE AGREEMENT/VARIATIONS

25.1     This Agreement and the Interim Agreement constitute the entire
         agreement and understanding between the parties and supersedes all
         prior oral or written understandings, arrangements, representations or
         agreements between them relating to the subject matter of this
         Agreement. No director, employee or agent of either of the parties is
         authorised to make any representation or warranty to the other not
         contained in this Agreement, and each of the parties acknowledges that
         it has not relied on any such oral or written representations or
         warranties.

25.2     No variations, amendments, modifications or supplements to this
         Agreement shall be valid unless made in writing in English and signed
         by a duly authorised representative of each of the parties.

26.      SEVERANCE OF TERMS

26.1     If the whole or any part of this Agreement is or shall become or be
         declared illegal, invalid or unenforceable in any jurisdiction for any
         reason whatsoever:

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26.1.1   in the case of the illegality, invalidity or unenforceability of the
         whole of this Agreement, it shall terminate in relation to the
         jurisdiction in question; or

26.1.2   in the case of the illegality, invalidity or unenforceability of part
         of this Agreement, such part shall be severed from this Agreement in
         the jurisdiction in question, and such illegality, invalidity or
         unenforceability shall not in any way whatsoever prejudice or affect
         the remaining parts of this Agreement, which shall continue in full
         force and effect.

27.      PUBLICATION/PRESENTATION/PRESS RELEASE

         The text of any press release or other communication to be published by
         or in the media by or on behalf of either of the parties concerning the
         subject matter of this Agreement shall require the approval of both
         parties, which approval shall not be unreasonably withheld or delayed.

28.      PARTNERSHIP/AGENCY

         None of the provisions of this Agreement shall be deemed to constitute
         the relationship of partnership or agency between the parties, and
         neither shall have any authority to bind the other in any way except as
         provided in this Agreement.

29.      ASSIGNMENT

         Neither Party may assign the benefit or burden of this Agreement
         without the prior written consent of the other Party except to a
         successor to all or substantially all of such Party's business relating
         to the Product

30.      AUDIT RIGHTS

         Each Party shall maintain books of account relating to its payment
         obligations and reimbursement rights pursuant to this Agreement all in
         accordance with International Accounting Standards with appropriate
         controls to insure that transactions are properly recorded. Each Party
         shall have the right, at its own expense, to have an independent
         certified public accountant of its own selection, reasonably acceptable
         to

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         the other Party, examine at a time reasonably acceptable to the other,
         during normal business hours but not more than once each calendar year,
         the relevant books and records of account of the other, to determine
         whether appropriate accounting has been made hereunder. Such
         independent certified accountant shall treat as confidential and shall
         not disclose to the Party engaging such accountant any information
         other than that which is relevant to the rights of the engaging Party
         hereunder or the performance by the other Party of its obligations
         hereunder. In the event of a dispute between the independent certified
         public accountants of Pharmion and Schering with respect to any matter
         called for by this Agreement, the parties shall select a third
         independent public accounting firm to arbitrate the dispute, provided,
         that such firm shall have the authority only to select from among the
         positions of the original two firms that position which it deems most
         accurate. The fees of such third firm shall be borne by the Party whose
         position is not approved of by such arbitrator.

         If there is a dispute between the Parties following any audit performed
         pursuant to Section 30, either Party may refer the issue (an "Audit
         Disagreement") to an independent certified public accountant for
         resolution. In the event an Audit Disagreement is submitted for
         resolution by either Party, the Parties shall comply with the following
         procedures:

         i.       The Party submitting the Audit Disagreement for resolution
                  shall provide written notice to the other Party that it is
                  invoking the procedures of this Section 30.

         ii.      Within thirty (30) business days of the giving of such notice,
                  the Parties shall jointly select a recognised international
                  accounting firm to act as an independent expert to resolve
                  such Audit Disagreement.

         iii.     The Audit Disagreement submitted for resolution shall be
                  described by the Parties to the independent expert, which
                  description may be in written or oral form, within ten (10)
                  business days of the selection of such independent expert.

         iv.      The independent expert shall render a decision on the matter
                  as soon as practicable.

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         v.       The decision of the independent expert shall be final and
                  binding unless such Audit Disagreement involves alleged fraud,
                  breach of this Agreement or construction or interpretation of
                  any of the terms and conditions thereof.

         vi.      All fees and expenses of the independent expert, including any
                  third party support staff or other costs incurred with respect
                  to carrying out the procedures specified at the direction of
                  the independent expert in connection with such Audit
                  Disagreement, shall be borne by each Party in inverse
                  proportion to the disputed amounts awarded to the Party by the
                  independent expert through such decision (e.g. party A
                  disputes $100, the independent expert awards party A $60, then
                  party A pays forty (40%) percent and party B pays sixty (60%)
                  percent of the independent expert's costs)."

31.      NOVARTIS AGREEMENT

         Pharmion acknowledges that Aventis and Novartis AG, Switzerland, have
         entered into a freedom of suit agreement with respect to certain
         intellectual property rights in the area of Hirudin (the "Novartis
         Agreement") and that Schering has taken over the obligations from
         Aventis in a separate contract (the "Assignment Contract"). The
         Novartis Agreement and the Assignment Contract are attached in Schedule
         6. Pharmion agrees to be bound by the obligations of Schering under the
         Novartis Agreement and the Assignment Contract with respect to the
         Patents which are covered by such agreements.

32.      GOVERNING LAW AND JURISDICTION

         The validity, interpretation and performance of this Agreement as well
         as any disputes connected herewith shall be construed in accordance
         with the laws of Germany. The United Nations Convention on Contracts
         for The International Sale of Goods ("CISG") shall not apply. Each
         Party agrees and hereby submits to the exclusive jurisdiction of the
         functionally competent Court in the Court District of Frankfurt am
         Main, Germany, with respect to any dispute arising under or in
         connection with this Agreement, and each Party hereby waives any
         objection it may now have or hereafter have to such jurisdiction or the
         laying of venue in such courts.

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33.      GUARANTEE

         Pharmion Corporation hereby unconditionally guarantees the prompt
         payment and full performance by Pharmion of its obligations under this
         Agreement, subject to Pharmion Corporation having all of the rights,
         remedies and defenses of Pharmion under this Agreement.

Remainder of page intentionally left blank.

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AS WITNESS, the hands of the parties or their duly authorised representatives
the day and year first above written.

SCHERING AKTIENGESELLSCHAFT

By:    /s/ Klaus Pohle                      By:    /s/ Ulrich Kostlin

Name:  Prof. Dr. Klaus Pohle                Name:  Dr. Ulrich Kostlin

Title: Vice Chairman of the Executive Board Title: Member of the Executive Board

PHARMION GMBH                               PHARMION CORPORATION

By:    /s/ Patrick J. Mahaffy               By:    /s/ Patrick J. Mahaffy

Name:  Patrick J. Mahaffy                   Name:  Patrick J. Mahaffy

Title: Director                             Title: President & CEO

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