Restricted Stock Award Agreement



 Exhibit 10.4 
 CELL THERAPEUTICS, INC. 
 2007 EQUITY INCENTIVE PLAN 

RESTRICTED STOCK AWARD AGREEMENT 
 THIS RESTRICTED STOCK AWARD AGREEMENT (this “Award Agreement”) is dated as of March 21, 2011 (the “Award Date”) by and between Cell Therapeutics, Inc., a
Washington corporation (the “Company”), and James Bianco (the “Participant”). 
 W I T N E S
S E T H 
 WHEREAS, pursuant to the Cell Therapeutics, Inc. 2007 Equity Incentive Plan (the “Plan”),
the Company hereby grants to the Participant, effective as of the date hereof, a restricted stock award (the “Award”), upon the terms and conditions set forth herein and in the Plan. 

NOW THEREFORE, in consideration of services rendered and to be rendered by the Participant, and the mutual promises made herein
and the mutual benefits to be derived therefrom, the parties agree as follows: 
 1.    Defined
Terms. Capitalized terms used herein and not otherwise defined herein shall have the meaning assigned to such terms in the Plan. 
 2.    Grant. Subject to the terms of this Award Agreement, the Company hereby grants to the Participant an Award with respect to an aggregate of 2,500,000
restricted shares of common stock of the Company (the “Restricted Shares”). 

3.    Vesting; Forfeiture. 

(a)    Vesting in General. Subject to Sections 3(b), (c) and (d) below, the Award shall vest and
become nonforfeitable in two equal installments (subject to adjustment under Section 4.3 of the Plan) with one-half of the total number of Restricted Shares subject to the Award vesting on each of (i) September 21, 2011 and
(ii) March 21, 2012. 
 (b)    Involuntary Termination. Notwithstanding any other provision
to the contrary contained herein or in the Plan, in the event the Participant’s employment with the Company is terminated by the Company without Cause or if the Participant resigns from his employment with the Company for Good Reason (such a
termination of the Participant’s employment is referred to as an “Involuntary Termination”), the portion of the Award that is outstanding and unvested immediately prior to the Involuntary Termination shall accelerate and become
one hundred percent (100%) vested upon the Involuntary Termination; provided that the Participant signs and does not revoke a Release and such Release becomes effective not later than the Deadline. For purposes of this Agreement,
“Cause,” “Deadline,” “Good Reason” and “Release” shall have the meanings ascribed to such terms as set forth in that certain Employment Agreement, effective as of January 1, 2011, by and between the
Participant and the Company. 
 (c)    Termination Date. Notwithstanding any other provision herein
and except as expressly provided in Section 3(b) with respect to an Involuntary Termination, upon the date on which the Participant ceases to be employed by the Company or a Subsidiary (regardless of








 
the reason for such termination of employment, whether with or without cause, voluntarily or involuntarily, or due to death or disability) (the “Termination Date”), the
Participant’s Restricted Shares (and related Restricted Property as defined in Section 8 hereof), to the extent such shares have not become vested pursuant to Section 3(a) or Section 3(b) as of the Termination Date, shall be
forfeited to the Company as provided in Section 3(d upon the Termination Date. 
 (d)    Forfeiture
Procedures. Upon the occurrence of any forfeiture of Restricted Shares pursuant to Section 3(c), such unvested, forfeited shares and related Restricted Property shall be automatically transferred to the Company as of the applicable
forfeiture date without any other action by the Participant (or the Participant’s beneficiary or personal representative in the event of the Participant’s death or disability, as applicable). No consideration shall be paid by the Company
with respect to such transfer. The Company may exercise its powers under Section 7(d) hereof and take any other action necessary or advisable to evidence such transfer. The Participant (or the Participant’s beneficiary or personal
representative in the event of the Participant’s death or disability, as applicable) shall deliver any additional documents of transfer that the Company may request to confirm the transfer of such unvested, forfeited shares and related
Restricted Property to the Company. 
 4.    Continuance of Employment. Except as
expressly provided in Section 3(b), the vesting schedule requires continued employment through each applicable vesting date as a condition to the vesting of the applicable installment of the Award and the rights and benefits under this Award
Agreement. Employment for only a portion of the vesting period, even if a substantial portion, will not entitle the Participant to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of
employment as provided in Section 3 above. 
 Nothing contained in this Award Agreement or the Plan constitutes an
employment or service commitment by the Company, confers upon the Participant any right to remain employed by or in service to the Company or any of its Subsidiaries, interferes in any way with the right of the Company or any of its Subsidiaries at
any time to terminate such employment or services, or affects the right of the Company or any of its Subsidiaries to increase or decrease the Participant’s other compensation or benefits. Nothing in this paragraph, however, is intended to
adversely affect any independent contractual right of the Participant without his consent thereto. 

5.    Dividend and Voting Rights. After the Award Date, the Participant shall be entitled to
cash dividends and voting rights with respect to the Restricted Shares subject to the Award even though such shares are not vested; provided, however, that such rights shall terminate immediately as to any Restricted Shares that are forfeited
pursuant to Section 3 above; and provided, further, that the Participant agrees that promptly following any such forfeiture of Restricted Shares, the Participant will make a cash payment to the Company equal to the amount of any cash dividends
received by the Participant in respect of any such unvested, forfeited shares. To the extent the shares are forfeited after the record date and before the payment date for a particular dividend, the Participant shall, promptly after the dividend is
paid, make a cash payment to the Company equal to the amount of any such cash dividend received by the Participant in respect of such forfeited shares. 







 6.    Restrictions on Transfer. Prior to the time
that they have become vested pursuant to Section 3 hereof, neither the Restricted Shares, nor any interest therein, amount payable in respect thereof, or Restricted Property (as defined in Section 8 hereof) may be sold, assigned,
transferred, pledged or otherwise disposed of, alienated or encumbered, either voluntarily or involuntarily. The transfer restrictions in the preceding sentence shall not apply to (a) transfers to the Company, or (b) transfers by will or
the laws of descent and distribution. 
 7.    Stock Certificates. 

(a)    Book Entry Form. The Company shall issue the Restricted Shares subject to the Award either: (a) in
certificate form as provided in Section 7(b) below; or (b) in book entry form, registered in the name of the Participant with notations regarding the applicable restrictions on transfer imposed under this Award Agreement. 

(b)    Certificates to be Held by Company; Legend. Any certificates representing the Restricted Shares that
may be delivered to the Participant by the Company prior to vesting shall be redelivered to the Company to be held by the Company until the restrictions on such shares shall have lapsed and the shares shall thereby have become vested or the shares
represented thereby have been forfeited hereunder. Such certificates shall bear the following legend and any other legends the Company may determine to be necessary or advisable to comply with all applicable laws, rules, and regulations: 

“The ownership of this certificate and the shares of stock evidenced hereby and any interest therein are subject
to substantial restrictions on transfer under an Agreement entered into between the registered owner and Cell Therapeutics, Inc. A copy of such Agreement is on file in the office of the Secretary of Cell Therapeutics, Inc.” 

(c)    Delivery of Certificates Upon Vesting. Promptly after the vesting of any shares of Restricted Stock
pursuant to Section 3 hereof and the satisfaction of any and all related tax withholding obligations pursuant to Section 9, the Company shall, as applicable, either remove the notations on any Restricted Shares issued in book entry form
which have vested or deliver to the Participant a certificate or certificates evidencing the number of Restricted Shares which have vested (or, in either case, such lesser number of shares as may result after giving effect to Section 9). The
Participant (or the beneficiary or personal representative of the Participant in the event of the Participant’s death or disability, as the case may be) shall deliver to the Company any representations or other documents or assurances as the
Company or its counsel may determine to be necessary or advisable in order to ensure compliance with all applicable laws, rules, and regulations with respect to the grant of the Award and the delivery of Shares in respect thereof. The Shares so
delivered shall no longer be Restricted Shares hereunder. 
 (d)    Stock Power; Power of Attorney.
Concurrently with the execution and delivery of this Award Agreement, the Participant shall deliver to the Company an executed stock power in the form attached hereto as Exhibit A, in blank, with respect to the Restricted Shares. The Company
shall not deliver any share certificates in accordance with this Award Agreement unless and until the Company shall have received such stock power executed by the 







 
Participant. The Participant, by acceptance of the Award, shall be deemed to appoint, and does so appoint by execution of this Award Agreement, the Company and each of its authorized
representatives as the Participant’s attorney(s)-in-fact to effect any transfer of unvested forfeited shares (or shares otherwise reacquired by the Company hereunder) to the Company as may be required pursuant to the Plan or this Award
Agreement and to execute such documents as the Company or such representatives deem necessary or advisable in connection with any such transfer. 
 8.    Adjustments upon Specified Events. Upon the occurrence of certain events relating to the Company’s stock contemplated by Section 4.3 of the Plan,
the Committee shall make adjustments in accordance with such section in the number and kind of securities that may become vested under the Award. If any adjustment is made under Section 4.3 of the Plan and the Restricted Shares are not fully
vested upon such event or prior thereto, the restrictions applicable to such Restricted Shares shall continue in effect with respect to any consideration, property or other securities (the “Restricted Property” and, for the purposes
of this Award Agreement, “Restricted Shares” shall include “Restricted Property”, unless the context otherwise requires) received in respect of such Restricted Shares. Such Restricted Property shall vest at such times and in such
proportion as the Restricted Shares to which the Restricted Property is attributable vest, or would have vested pursuant to the terms hereof if such Restricted Shares had remained outstanding. To the extent that the Restricted Property includes any
cash (other than regular cash dividends), such cash shall be invested, pursuant to policies established by the Committee, in interest bearing, FDIC-insured (subject to applicable insurance limits) deposits of a depository institution selected by the
Committee, the earnings on which shall be added to and become a part of the Restricted Property. 

9.    Tax Withholding. Upon any vesting of the Restricted Shares, the Company shall
automatically withhold and reacquire the appropriate number of whole Restricted Shares, valued at their then Fair Market Value (as such term is defined in the Plan), to satisfy any withholding obligations of the Company or its Subsidiaries with
respect to such vesting at the minimum applicable withholding rates. In the event that the Company cannot legally satisfy such withholding obligations by withholding and reacquiring Restricted Shares, or in the event that the Participant makes or
has made an election pursuant to Section 83(b) of the Code or the occurrence of any other withholding event with respect to the Award, the Company (or a Subsidiary) shall be entitled to require a cash payment by or on behalf of the Participant
and/or to deduct from other compensation payable to the Participant any sums required by federal, state or local tax law to be withheld with respect to such vesting of any Restricted Shares or such Section 83(b) election or other withholding
event. 
 10.    Notices. Any notice to be given under the terms of this Award
Agreement shall be in writing and addressed to the Company at its principal office to the attention of the Secretary, and to the Participant at the Participant’s last address reflected on the Company’s payroll records. Any notice shall be
delivered in person or shall be enclosed in a properly sealed envelope, addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or branch post office regularly maintained by
the United States Government. Any such notice shall be given only when received, but if the Participant is no longer employed by the Company or a Subsidiary, shall be deemed to have been duly given five








 
business days after the date mailed in accordance with the foregoing provisions of this Section 10. 
 11.    Plan. The Award and all rights of the Participant under this Award Agreement are subject to the terms and conditions of the provisions of the Plan,
incorporated herein by reference. The Participant agrees to be bound by the terms of the Plan and this Award Agreement. The Participant acknowledges having read and understanding the Plan, the Prospectus for the Plan, and this Award Agreement.
Unless otherwise expressly provided in other sections of this Award Agreement, provisions of the Plan that confer discretionary authority on the Board or the Committee do not (and shall not be deemed to) create any rights in the Participant unless
such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the Committee so conferred by appropriate action of the Board or the Committee under the Plan after the date hereof. 

12.    Entire Agreement. This Award Agreement and the Plan constitute the entire agreement and
supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan may be amended pursuant to Section 10.1 of the Plan. This Award Agreement may be amended by the
Committee from time to time. Any such amendment must be in writing and signed by the Company. Any such amendment that materially and adversely affects the Participant’s rights under this Award Agreement requires the consent of the Participant
in order to be effective with respect to the Award. The Company may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely affect the interests of the Participant hereunder, but no such waiver shall
operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. 

13.    Counterparts. This Award Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 

14.    Section Headings. The section headings of this Award Agreement are for convenience of
reference only and shall not be deemed to alter or affect any provision hereof. 

15.    Governing Law. This Award Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Washington without regard to conflict of law principles thereunder. 
 [Remainder of
page intentionally left blank] 







 IN WITNESS WHEREOF, the Company has caused this Award Agreement to be executed on its
behalf by a duly authorized officer and the Participant has hereunto set his hand as of April 8, 2011. 
  

			
	 CELL THERAPEUTICS, INC.,
 a Washington corporation

		
	By:	 	/s/ Frederick W. Telling
	
	 Frederick W. Telling

Chairman of the Compensation Committee

	
	 PARTICIPANT

	
	 /s/ James A. Bianco, M.D. 

	 Signature

	 James A. Bianco, M.D.

	Print Name









 EXHIBIT A 
 STOCK POWER 
 FOR VALUE RECEIVED and pursuant to that certain
Restricted Stock Award Agreement between Cell Therapeutics, Inc., a Washington corporation (the “Company”), and the individual named below (the “Individual”) dated as of
                            , 2011, the Individual, hereby sells, assigns and transfers to the Company, an
aggregate                      Shares of the Company, standing in the Individual’s name on the books of the Company and represented by stock
certificate number(s)
                                         
                                        to which this
instrument is attached, and hereby irrevocably constitutes and appoints
                                         
                                         
                   as his attorney in fact and agent to transfer such shares on the books of the Company, with full power of substitution in the premises.

 Dated                     ,
                 
  

	
	  
	Signature
	  
	Print Name


  
  
 (Instruction: Please do not fill in any blanks other than the signature line. The purpose of the assignment is to enable the Company to exercise its sale/purchase option set forth in the Restricted
Stock Award Agreement without requiring additional signatures on the part of the Individual.)