Related Party Transactions and Outside Related Director Information

Pharmion Corporation (PHRM)

4/28/2006 Proxy Information

Celgene Corporation

Pursuant to agreements we have entered into with Celgene Corporation and Celgene UK Manufacturing II Limited, or CUK, we have obtained the exclusive marketing and distribution rights to Celgene’s formulation of thalidomide, Thalomid®, and related intellectual property in all countries outside of North America, Japan and China (other than Hong Kong). Under the agreements, as amended, we pay (i) Celgene a royalty/license fee of 8% on our net sales of thalidomide, and (ii) CUK product supply payments equal to 15.5% of our net sales of thalidomide. Furthermore, under our agreements with Celgene, to further the clinical development of thalidomide, particularly in multiple myeloma, we have also agreed to fund up to $8 million incurred by Celgene for the conduct of thalidomide clinical trials during 2005, 2006 and 2007. The agreements with Celgene and CUK each have a ten-year term running from the date of receipt of our first regulatory approval for thalidomide in the United Kingdom.

Indebtedness of Management

As part of the relocation package provided in connection with their transition to employment with us, we made the following loans to the following officers: (See page 31 of proxy for table),

These loans are evidenced by promissory notes. The loans to Ms. Herriott and Mr. Mast have four-year terms. The notes do not bear interest and are secured by a second deed of trust on the principal residences of each of the officers. We have agreed, for so long as these officers remain our employees, to make annual bonus payments to these officers in amounts sufficient to pay the loan amounts then due, on a pre-tax basis in the case of Mr. Mast. The remaining balances of the loans become due and payable upon the termination of the officers’ employment; provided, however, that if we terminate the officers’ employment without just cause, the remaining balances of the loans will be forgiven. Under applicable law, we cannot extend the term of or otherwise modify these notes.

Indemnification Agreements

Our bylaws provide that we will indemnify the members of our Board, our officers and any employee who serves as an officer or director of any corporation at our request to the fullest extent not prohibited by Delaware law.