Exhibit 10.1

 

     Portions of this Exhibit have been
omitted pursuant to a request for
confidential treatment. The omitted
portions have been marked
******** and have been filed
separately with the Commission

 

AMENDMENT NO. 1

 

Amendment No. 1, dated as of February 1, 2006 (this “Amendment”) to the License
Agreement, dated as of November 13, 1998 (the “License”) by and between PG-TXL
Company, L.P. (“LP”), a Delaware limited partnership having the principal place
of business at 5124 Braeburn Drive, Bellaire, Texas 77401-4902 and Cell
Therapeutics, Inc., a Washington corporation (“CTI”).

 

Preliminary Statement. The parties wish to amend the License primarily to alter
the payment of certain potential milestones. For good and valuable
consideration, the receipt, sufficiency and adequacy as hereby acknowledged by
the parties, the parties hereby agree as follows:

 

(the information marked by ******** has been omitted by a request for
confidential treatment. The omitted portion has been separately filed with the
Commission.)

 

Section 1.0 Payment. Within five (5) business days from the date hereof, CTI
shall pay to LP $******** in cash to LP’s account at:

 

********

********

********

ABA/Routing and Transit #********

Account Name: ********

Account Number: ********

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Section 2.0 Amendments to License. The License is hereby amended as follows as
of the date hereof:

 

(a) Section 3.02. Section 3.02 of the License is hereby amended to read in full
as follows:

 

“SECTION 3.02. Milestone Payments. CTI shall make the following payments to
PG-TXL within ten (10) business days, unless otherwise noted, after the first
achievement of each of the corresponding milestones (each milestone and
corresponding payment shall be a stand-alone event and shall in no way be
dependent upon the achievement of any other milestone):

 

PG-TXL

Milestone Event

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PG-TXL

Milestone

Payment

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Oncology/PG-TXL

         Successful Completion of a Phase II Clinical Trial in Japan    $  *
******* Successful Completion of a Phase III Clinical Trial in the U.S.
occurring after December 31, 2005      * ******* Successful Completion of a
Phase III Clinical Trial in a Major Market Country or an EMEA country occurring
after December 31, 2005      * ******* Successful Completion of a Phase III
Clinical Trial in Japan      * ******* Thirty (30) business days after
submission for Marketing Approval in a Major Market Country or with the EMEA
that is accepted for filing/prosecution (i.e., not rejected) by the relevant
regulator in such Major Market County or by the EMEA    $  * ******* Regulatory
Approval for the first indication in the U.S.      * ******* Regulatory Approval
for the first indication in a Major Market Country or any EMEA Country      *
******* Regulatory Approval for the first indication in Japan      * *******

Additional Products:

         Commencement of a Phase I Clinical Trial in the U.S. for the second
compound protected by the PG-TXL Patent Rights      * ******* Commencement of a
Phase I Clinical Trial in the U.S. for the third compound protected by the
PG-TXL Patent Rights      * *******

 

(b) Successful Completion. The definition of “Successful Completion” appearing
in Section 1.01 of the License is hereby amended to read in full as follows:

 

“Successful Completion means, with respect to a Phase II or Phase III Clinical
Trial, that (i) such Clinical Trial has achieved each of its primary endpoints
at a level that is statistically significant or (ii) Regulatory Approval is
obtained in a listed jurisdiction regardless of the location(s) where such
Clinical Trial was carried out.”

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(c) Section 15.11 of the License is hereby amended by adding the following
paragraph at the end thereof:

 

“If LP believes that CTI is in default of a payment obligation under
Section 3.02, it shall first give CTI written notice thereof setting forth in
reasonable detail the bases for its conclusion. During the thirty (30) day
period following CTI’s receipt thereof, the parties shall attempt to resolve any
differences. If, after expiration of such thirty (30) day period (or such longer
period as the parties may agree), the parties shall not have reached a
resolution, each party may pursue any rights it may have hereunder including
providing a notice of default under Section 12.02 (which notice shall have a
date no earlier than the date of notice related to a purported default).”

 

Section 3.0 Amended Section 3.02 Governs. From and after the date hereof, the
parties hereto agree that the License, as amended hereby, shall govern any
amounts due and owing under Section 3.02 of the License. Neither party shall
have any rights or obligations under Section 3.02 prior to the Amendment
contemplated hereby and each party hereby agrees that all prior notices or
claims that it may have had or made with respect to Section 3.02 of the License
prior to this Amendment shall have not force or effect and are withdrawn.

 

Section 4.0 Restricted Shares. Pursuant to two letters each dated November 13,
1998, CTI granted to Sidney Wallace, M.D. and to Chun Li, M.D. certain rights to
Restricted Shares and Restricted Share Rights, as defined therein. Within ten
(10) business days after the date hereof, CTI shall issue and deliver to
Dr. Wallace all his remaining Restricted Shares and to Dr. Li all his remaining
Restricted Shares. All such shares shall be without further restriction on
vesting or transfer.

 

Section 5.0 Miscellaneous. This Amendment shall be governed by and interpreted
under the laws of the State of New York as applied to contracts entered into and
performed entirely in New York by New York residents. The sections and paragraph
headings contained herein are for purposes of convenience only and are not
intended to define or limit the contents of said sections or paragraphs. This
Amendment may be executed in one or more counterparts (and by facsimile), each
of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. There are no covenants, promises, agreements,
warranties, representations, conditions or understandings, either oral or
written, between the parties other than as set forth herein and in the License
Agreement with respect to the subject matter hereof. All costs and expenses,
including, without limitation, fees and disbursements of counsel, financial
advisors and accountants, incurred in connection with this Amendment shall be
paid by the party incurring such costs and expenses.

 

IN WITNESS WHEREOF, LP and CTI have caused this Amendment to be executed as of
the date first written above by their respective officers thereunto duly
authorized.

 

PG-TXL COMPANY, L.P.

By:

  Fem.CADeT Incorporated, its General Partner      

By:

 

/S/    SIDNEY WALLACE, M.D.

Name:

 

Sidney Wallace, M.D.

Title:

 

President

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CELL THERAPEUTICS, INC. By:  

/S/    JAMES A. BIANCO

Name:

 

James A. Bianco

Title:

 

President & Chief Executive Officer