Document:

Common Share Purchase Warrant

 Exhibit 4.2 
 THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR STATE
SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE HOLDING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT IN A TRANSACTION COMPLETED IN ACCORDANCE WITH THE REGISTRATION STATEMENT, (B) TO THE CORPORATION, (C) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 903 OR RULE 904 OF REGULATION S
UNDER THE U.S. SECURITIES ACT, (D) IN COMPLIANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144 OR RULE 144A THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR
(E) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN
FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION TO SUCH EFFECT. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA. 
 UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE MAY 1, 2009. 
 COMMON SHARE PURCHASE WARRANTS 
 THESE WARRANTS
WILL BE VOID AND OF NO VALUE UNLESS EXERCISED BEFORE 4:00 P.M. (CENTRAL STANDARD TIME) ON DECEMBER 30, 2011 
 TRANSATLANTIC
PETROLEUM CORP. 
 (Incorporated under the Business Corporations Act (Alberta)) 
  

							
	 CERTIFICATE NO.
	  	W-001	  	10,000,000	  	Warrants

 THIS IS TO CERTIFY THAT, FOR VALUE RECEIVED, 
 Longfellow Energy LP 
 4801
Gaillardia Parkway, Suite 225 
 Oklahoma City, Oklahoma 73142 
 (the “holder”) is entitled to subscribe for and purchase, upon and subject to the terms and conditions hereinafter set forth, one fully paid and non-assessable Common Share (a “Common
Share”) in the capital of TransAtlantic Petroleum Corp. (the “Corporation”) (as constituted at December 30, 2008) for each whole warrant (a “Warrant”) represented hereby, at any time on or after the
date hereof but prior to 4:00 p.m. (Central Standard Time) on December 30, 2011 (the “Time of Expiry”) at and for a price of US$3.00 per Common Share (the “Exercise Price”). 
 The right to purchase Common Shares hereunder may only be exercised during the period herein specified by: 
  

	1.	completing, in the manner indicated, and executing the attached exercise form for that number of Common Shares which the holder is entitled and wishes to purchase;

  

	2.	surrendering this Warrant Certificate to the Corporation at its office at 5910 N. Central Expressway, Suite 1755, Dallas, Texas 75206, or at such other address as the Corporation
may designate from time to time by notice to the holder; and 

	3.	paying the appropriate subscription price for the Common Shares so subscribed for either by bank draft, certified cheque or money order payable in immediately available funds at par
in United States funds to or to the order of the Corporation. 

 Upon surrender and payment as aforesaid, the Corporation will, subject to the
terms hereof, issue to the person or persons named in the exercise form the number of Common Shares subscribed for and such person or persons will be shareholders of the Corporation in respect of such Common Shares as at the date of surrender and
payment notwithstanding any delay in the issuance of a share certificate in respect thereof. Within five business days after surrender and payment, the Corporation will mail to such person or persons, at the address or addresses specified in the
exercise form, a certificate or certificates evidencing the Common Shares subscribed for, or if requested by the holder, make available for pick-up at the Corporation’s office such certificate or certificates within five business days of the
satisfaction of the exercise requirements herein. If the holder subscribes for a number of Common Shares which is less than the maximum number of Common Shares which could be subscribed for as the result of the exercise of all of the Warrants
evidenced by this Warrant Certificate, the holder shall be entitled to receive a new Warrant Certificate (substantially in the form hereof) for that number of the Warrants not exercised so as to allow the purchase of those Common Shares that might
have been subscribed for hereunder but which were not then subscribed for and purchased by the holder. 
 In no event shall fractional Common Shares be
issued in connection with the exercise of the Warrants evidenced by this Warrant Certificate. In lieu of a fractional Common Share that would otherwise be issuable upon an exercise of the Warrants, there shall be paid to the holder by the
Corporation, within ten (10) business days after the date of surrender of this Warrant Certificate and satisfaction of the exercise requirements herein, an amount in lawful money of the United States equal to the then current market value of
such fractional share computed on the basis of the Current Market Price (as defined below) of the Common Shares on such date of exercise, provided that the Corporation shall not be required to make any payment, calculated as aforesaid, that is less
than US$10.00. 
 “Current Market Price” of the Common Shares at any date means the volume weighted average trading price per share for such
shares for the 10 consecutive Trading Days immediately preceding such date on the Toronto Stock Exchange or, if on such date the Common Shares are not listed on the Toronto Stock Exchange, on such stock exchange upon which such shares are listed and
as selected by the directors of the Corporation, or, if such shares are not listed on any stock exchange, then on such over-the-counter market as may be selected for such purpose by the directors of the Corporation, and, in the event the Common
Shares do not trade on any over-the-counter market, then in such manner as the directors of the Corporation determine, having regard to the parity and equality of the interests of the holders of Common Shares in the Corporation and “Trading
Days” means, with respect to a stock exchange, a day on which such exchange is open for the a transaction of business and with respect to an over-the-counter market, a day on which the Toronto Stock Exchange is open for the transaction of
business. 
 The Warrants evidenced by this Warrant Certificate are exercisable at any time and from time to time up to, but not after, the Time of Expiry,
upon payment in the manner and at the place provided for above. 
 Nothing contained herein shall confer on the holder or any other person any right to
subscribe for or purchase shares in the capital of the Corporation at any time subsequent to the Time of Expiry and from and after such time the Warrants evidenced by this Warrant Certificate and all rights hereunder shall expire and be of no
further force or effect. 
 If this Warrant Certificate is stolen, lost, mutilated or destroyed, the Corporation shall, on such reasonable terms as to
indemnity or otherwise as it may impose, deliver a replacement Warrant Certificate of like denomination, tenor and date as the Warrant Certificate so stolen, lost, mutilated or destroyed. 
  

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 The Warrants evidenced by this Warrant Certificate shall not entitle the holder to any rights whatsoever as a shareholder
of the Corporation. 
 The Exercise Price or the number of Common Shares or other securities or property purchasable upon exercise of the Warrants shall be
subject to adjustment from time to time in the events and in the manner provided for below: 
  

	 	(a)	If and whenever at any time after the date hereof and prior to the Time of Expiry the Corporation shall: 

  

	 	(i)	issue Common Shares (or securities convertible into Common Shares with no payment therefor (“Convertible Securities”)) as a stock dividend or make a distribution on
its outstanding Common Shares payable in Common Shares or Convertible Securities; 

  

	 	(ii)	subdivide, redivide or change its outstanding Common Shares into a greater number of shares; or 

  

	 	(iii)	consolidate, reduce or combine its outstanding Common Shares into a smaller number of shares; 

 (each of the events enumerated in the clauses (i), (ii) and (iii), above, being hereinafter referred to as a “Common Share
Reorganization”), the Exercise Price shall be adjusted effective immediately after the record date or effective date, as the case may be, which is used to determine the holders of outstanding Common Shares for the happening of a Common
Share Reorganization, by multiplying the Exercise Price in effect immediately prior to such record date or effective date by a fraction, the numerator of which shall be the number of Common Shares outstanding on such record date or effective date
before giving effect to such Common Share Reorganization, and the denominator of which shall be the number of Common Shares outstanding immediately after giving effect to such Common Share Reorganization (including, in the case of an issuance or
distribution of Convertible Securities, the number of Common Shares that would have been outstanding had such securities been converted into Common Shares on such date). 
 To the extent that any adjustment in the Exercise Price occurs pursuant to this paragraph (a) as a result of the fixing by the Corporation of a record date for the distribution of Convertible Securities, the
Exercise Price shall be readjusted immediately after the expiry of any relevant conversion right to the Exercise Price which would then be in effect based upon the number of Common Shares actually issued and remaining issuable after such expiry and
shall be further readjusted in such manner upon the expiry of any further such right. 
 If and whenever at any time after the date hereof
and prior to the Time of Expiry a Common Share Reorganization shall occur and any such event results in an adjustment in the Exercise Price, the number of Common Shares purchasable pursuant to each of the Warrants evidenced by this Warrant
Certificate shall be adjusted contemporaneous with the adjustment of the Exercise Price, by multiplying the number of Common Shares theretofore purchasable on the exercise thereof by a fraction, the numerator of which shall be the Exercise Price in
effect immediately prior to such adjustment and the denominator of which shall be the Exercise Price resulting from such adjustment. 
  

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	 	(b)	If and whenever at any time after the date hereof and prior to the Time of Expiry, the Corporation shall fix a record date for the issuance of rights, options or warrants to all or
substantially all of the holders of the outstanding Common Shares, pursuant to which such shareholders are entitled, directly or indirectly, during a period expiring not more than 45 days after such record date (the “Rights
Period”), to subscribe for or purchase (x) Common Shares at a price per share to the shareholder less than 90% of the Current Market Price for the Common Shares on such record date or (y) securities (in this paragraph (b)
referred to as “Exchangeable Securities”) exchangeable for or convertible into Common Shares at an effective subscription price per Common Share (giving effect to the terms of such subscription or purchase and of such exchange or
conversion privilege) less than 90% of the Current Market Price for the Common Shares on such record date (any of such events being hereinafter called a “Rights Offering”), then the Exercise Price shall be adjusted effective
immediately after the end of the Rights Period to a price determined by multiplying the Exercise Price in effect immediately prior to the end of the Rights Period by a fraction: 

  

	 	(i)	the numerator of which shall be the aggregate of: 

  

	 	(A)	the number of Common Shares outstanding as of the record date for the Rights Offering, and 

  

	 	(B)	a number determined by dividing: (I) either (1) the product of the number of Common Shares actually issued upon the exercise of the rights, warrants, or options
distributed under the Rights Offering and the price per share at which such Common Shares are acquired; or, as the case may be, (2) the product of the effective subscription price of the Exchangeable Securities and the number of Common Shares
issuable under such Exchangeable Securities distributed under the Rights Offering; by (II) the Current Market Price of the Common Shares as of the record date for the Rights Offering; and 

  

	 	(ii)	the denominator of which shall be the number of Common Shares outstanding immediately after the end of the Rights Period (after giving effect to the Rights Offering, including the
number of Common Shares actually issued upon exercise of the rights, warrants or options distributed under the Rights Offering and the number of Common Shares issuable if all Exchangeable Securities actually issued under the Rights Offering were
exchanged for or converted into Common Shares). 

 To the extent that Exchangeable Securities are not exchanged for or
converted into Common Shares prior to the expiry thereof, the Exercise Price as determined pursuant to this paragraph (b) will be readjusted to the Exercise Price which would be in effect based upon the number of Common Shares (or other
securities) actually delivered on the exchange or conversion of such Exchangeable Securities. 
 Any Common Shares owned by or held for the
account of the Corporation or any subsidiary (as defined in the Business Corporations Act (Alberta)) of the Corporation shall be deemed not to be outstanding for the purpose of any such computation. 
  

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	 	(c)	If and whenever at any time after the date hereof and prior to the Time of Expiry the Corporation shall fix a record date for the issue or the distribution to all or substantially
all of the holders of one or more classes of outstanding Common Shares of: (i) shares of the Corporation of any class other than Common Shares; (ii) rights, options or warrants to acquire Common Shares or securities exchangeable for or
convertible into Common Shares (excluding those exercisable for a period expiring not more than 45 days after such record date and excluding those with a price per share (or having an effective exchange or conversion price or exercise price per
share) not less than the Current Market Price of the Common Shares on such record date); (iii) evidences of indebtedness; or (iv) any property or other assets (including cash), and if such issuance or distribution does not constitute a
Common Share Reorganization or a Rights Offering (any of such non-excluded events being herein called a “Special Distribution”), the Exercise Price shall be adjusted effective immediately after such record date to a price determined
by multiplying the Exercise Price in effect on such record date by a fraction: 

  

	 	(i)	the numerator of which shall be: 

  

	 	(1)	the product obtained when the number of Common Shares outstanding on such record date is multiplied by the Current Market Price of the Common Shares on such record date; less

  

	 	(2)	the fair market value, as determined by resolution of the directors of the Corporation (whose determination shall be conclusive), to the holders of the Common Shares of the shares,
rights, options, warrants, evidences of indebtedness or property or other assets issued or distributed in the Special Distribution less the fair market value, as determined by resolution of the directors of the Corporation (whose determination shall
be conclusive) of the consideration, if any, received therefor by the Corporation; and 

  

	 	(ii)	the denominator of which shall be the product obtained when the number of Common Shares outstanding on such record date is multiplied by the Current Market Price of the Common
Shares on such record date. 

 To the extent that such distribution is not so made, the Exercise Price shall be readjusted to
the Exercise Price which would then be in effect if such record date had not been fixed or to the Exercise Price which would then be in effect based upon such shares or rights, options or warrants or evidences of indebtedness or assets actually
distributed. 
 Any Common Shares owned by or held for the account of the Corporation or any subsidiary (as defined in the Business
Corporations Act (Alberta)) of the Corporation shall be deemed not to be outstanding for the purpose of any such computation. 
  

	 	(d)	 If and whenever at any time after the date hereof and prior to the Time of Expiry there shall be a reclassification of the Common Shares at any time outstanding or
a change of the outstanding Common Shares into other securities (other than a Common Share Reorganization), or a consolidation, arrangement, amalgamation, merger or other reorganization of the Corporation with or into any other corporation or other
entity (other than a consolidation, arrangement, amalgamation, merger or other reorganization which does not result in any reclassification of the outstanding Common Shares or a change of the Common Shares into other shares but, for greater
certainty, including any continuance 

  

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to a jurisdiction outside of Canada), or a transfer, sale or conveyance of the undertaking or assets of the Corporation as an entirety or substantially as an
entirety to another corporation or other entity (any of such events being herein called a “Capital Reorganization”), the holder, upon any exercise of its right hereunder to purchase Common Shares after the effective date of such
Capital Reorganization, shall be entitled to receive, and shall accept, for the same aggregate consideration, in lieu of the number of Common Shares to which the holder was theretofore entitled upon such exercise, the aggregate number of shares,
other securities or other property which the holder would have been entitled to receive as a result of such Capital Reorganization if, on the effective date thereof, the holder had been the registered holder of the number of Common Shares that the
holder was theretofore entitled to acquire upon such exercise. The Corporation shall, acting reasonably, give effect to this provision by requiring such successor entity to (prior to or contemporaneously with any such Capital Reorganization), enter
into an agreement or new Warrant Certificate which shall provide, to the extent possible, for the application of the provisions set forth in this Warrant Certificate with respect to the rights and interests thereafter of the holder to the end that
the provisions set forth in this Warrant Certificate shall thereafter correspondingly be made applicable, as nearly as may reasonably be, with respect to any shares, other securities or property to which the holder is entitled on the exercise of its
acquisition rights thereafter and upon entering into such new Warrant Certificate or agreement and the completion of such Capital Reorganization, the Corporation shall cease to have any obligations (including the obligation to issue any Common
Shares) hereunder and the holder shall cease to have any rights hereunder; provided that if the Corporation enters into a Capital Reorganization that includes any continuance to a jurisdiction outside of Canada, the new Warrant Certificate shall be
governed by the laws of such new jurisdiction. Any Warrant Certificate or agreement entered into between the Corporation, any successor to the Corporation or such successor entity shall provide for adjustments which shall be as nearly equivalent as
may be practicable to the adjustments provided in this paragraph and which shall apply to successive Capital Reorganizations. 
  

	 	(e)	The adjustments to the Exercise Price and number or type of Common Shares or other securities or property of the Corporation provided for herein are cumulative and such adjustments
shall be made successively whenever any of the relevant events referred to herein shall occur. For purposes of the adjustments set forth above, the following provisions shall apply: 

  

	 	(i)	no adjustment in the Exercise Price shall be required unless such adjustment would result in a change of at least 1% of the then prevailing Exercise Price and no adjustment shall be
made pursuant to paragraph (a) in the number of Common Shares purchasable upon exercise of any of the Warrants evidenced hereby unless a corresponding adjustment to the Exercise Price is required hereunder; provided, however, that any
adjustment which, except for the provisions of this clause (i), would otherwise have been required to be made, shall be carried forward and taken into account in any subsequent adjustment; 

  

	 	(ii)	 if a dispute shall at any time arise with respect to adjustments provided for herein, such dispute shall be conclusively determined by the Corporation’s
auditors (except in cases where any determination relating to adjustments is to be made by the board of directors of the Corporation) or, if they are unable or unwilling to act, by such other firm of independent chartered accountants as may 

  

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be selected by action of the directors and any such determination shall be binding upon the Corporation and the holder; 
  

	 	(iii)	if the Corporation shall set a record date to determine holders of outstanding Common Shares entitled to receive any dividend or distribution or any subscription or purchase rights
and shall, thereafter and before the distribution to such shareholders of any such dividend, distribution or subscription or purchase rights, abandon its plan to pay or deliver such dividend, distribution, subscription or purchase rights, then no
adjustment in the Exercise Price or the number of Common Shares purchasable upon exercise of any of the Warrants evidenced hereby shall be required solely by reason of the setting of such record date; 

  

	 	(iv)	in the absence of a resolution of the directors fixing a record date for a Common Share Reorganization, Rights Offering or Special Distribution, the Corporation shall be deemed to
have fixed as the record date therefor the date on which the Common Share Reorganization, Rights Offering or Special Distribution is effected; and 

  

	 	(v)	as a condition precedent to the taking of any action which would require any adjustment in any attribute of the Warrants, including the Exercise Price and the number or class of
shares or other securities which are to be received upon the exercise thereof, the Corporation shall take any corporate action which may, in the opinion of counsel, be necessary in order that the Corporation have unissued and reserved in its
authorized capital and may validly and legally issue as fully paid and non-assessable all shares or other securities that the holder is entitled to receive on the total exercise thereof in accordance with the provisions thereof.

  

	 	(f)	No adjustment in the Exercise Price or in the number of Common Shares purchasable upon exercise shall be made in respect of any event described in paragraphs (a), (b),
(c) or (d) other than the events referred to in clauses (ii) and (iii) of paragraph (a), if the holder of Warrants is entitled to participate in such event on the same terms mutatis mutandis as if such holder had
exercised such holder’s Warrants and acquired Common Shares, prior to or on the effective date or record date of such event; provided that such participation shall be subject to receipt of all necessary regulatory approvals.

  

	 	(g)	In any case in which the terms of the Warrants evidenced by this certificate shall require that an adjustment become effective as of a particular time, the Corporation may defer
issuing to the holder in respect of any Warrants exercised after the record date for the event giving rise to the adjustment and before the event the kind and amount of shares, warrants or other securities to which the holder would be entitled upon
such exercise by reason of the relevant adjustment, provided, however, that the Corporation shall deliver to the holder an appropriate instrument evidencing such holder’s right, upon the occurrence of the event requiring the adjustment, to the
relevant adjustment. 

  

	 	(h)	 If the purchase price provided for in any right, warrant, option or other convertible security issued as described in subsection (b) or (c) is decreased,
or the rate of conversion at which any convertible securities which are issued as described in subsection (b) or (c) is increased, the Exercise Price shall forthwith be changed so as to decrease the Exercise Price to such Exercise Price as
would have been obtained had the adjustment made in connection with the issuance of all such rights, options or securities been made upon the basis of such purchase price as so decreased or such rate as so increased. Likewise, if the 

  

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purchase price provided for in any right, warrant, option or other convertible security issued as described in subsection (b) or (c) is increased,
or the rate of conversion at which any convertible securities which are issued as described in subsection (b) or (c) is decreased, the Exercise Price shall forthwith be changed so as to increase the Exercise Price to such Exercise Price as
would have been obtained had the adjustment made in connection with the issuance of all such rights, options or securities been made upon the basis of such purchase price as so increased or such rate as so decreased. 
 On the happening of each and every event referred to above that gives rise to an adjustment, the applicable provisions of these Warrants shall, ipso facto, be deemed to
be amended accordingly and the Corporation shall take all necessary action so as to comply with such provisions as so amended. The Corporation shall promptly send to the holder notice of any and all adjustments hereunder as well as any adjustment to
the Common Shares of the Corporation pursuant to the terms of the Articles of the Corporation. 
 The Corporation covenants that, so long as any Warrants
remain outstanding it will give notice to the holder of its intention to fix a record date that is prior to the Expiry Time for any event referred to in subsections (a)(i), (b), (c) or (d) hereof which may give rise to an adjustment in the
number of Common Shares to be received on exercise or the Exercise Price. Such notice shall specify the particulars of such event and the record date for such event, provided that the Corporation shall only be required to specify in the notice such
particulars of the event as shall have been fixed and determined on the date on which the notice is given. The notice shall be given in each case not less than 15 days prior to such applicable record date. The Corporation covenants that it will not
close its transfer books or take any other corporate action which might deprive the holder of the opportunity to exercise its right of acquisition pursuant thereto during the period of 15 days after the giving of the notices set forth in this
paragraph. 
 Subject to compliance with all securities laws in regard thereto, the Warrants represented by this Warrant Certificate and all rights granted
hereunder shall be assignable and transferable to any party by the holder hereof. Subject to compliance with all securities laws in regard thereto, the holder of this Warrant Certificate may at any time prior to the Expiry Time, upon delivery to the
Corporation (in the same manner as provided for exercise) of this Warrant Certificate and a duly completed and executed transfer in the form as attached hereto (the “Transfer Form”), and upon payment of reasonable charges of the
Corporation (if requested), transfer and re-register the Warrants represented by this Warrant Certificate into the name of another holder. The Corporation reserves the right to require evidence, to its sole reasonable satisfaction, of compliance
with all applicable securities laws prior to giving effect to any assignment or transfer of the Warrants represented hereby. 
 Within 14 days of receipt of
this Warrant Certificate and the duly completed and executed Transfer Form and evidence of compliance with applicable securities law, as provided for above, the Corporation will cause to be mailed or delivered to such person or persons at the
address or addresses specified in the Transfer Form, a certificate or certificates evidencing the number of Warrants to be transferred. 
 Any notice to the
holder shall be valid and effective if delivered or sent by courier or ordinary post to the holder at the address appearing on the face page hereof. 
 Notwithstanding any provision to the contrary contained herein, no Common Shares will be issued pursuant to the exercise of any Warrant if the issuance of such securities would constitute a violation of the securities laws of any applicable
jurisdiction, and the certificates evidencing the Common Shares thereby issued may bear such legend as may, in the opinion of legal counsel to the Corporation, be necessary in order to avoid a violation of any securities laws of any applicable
jurisdiction or to comply with the requirements of any stock exchange on which the Common Shares of the Corporation are listed, 

  

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provided that, at any time, in the opinion of legal counsel to the Corporation, such legends are no longer necessary in order to avoid a violation of any
such laws, or the holder of any such legended certificate, at that holder’s expense, provides the Corporation with evidence satisfactory in form and substance to the Corporation (which may include an opinion of legal counsel satisfactory to the
Corporation) to the effect that such holder is entitled to sell or otherwise transfer such Common Shares in a transaction in which such legends are not required, such legended certificate may thereafter be surrendered to the Corporation in exchange
for a certificate which does not bear such legend. 
 The Corporation represents and warrants that it is duly authorized to create and deliver these Warrants
and to issue the Common Shares that may be issued hereunder and that these Warrants, when signed by the Corporation as herein provided, will be a valid obligation of the Corporation enforceable against the Corporation in accordance with the
provisions hereof. The Corporation hereby covenants and agrees that, subject to the provisions hereof, it will cause the Common Shares from time to time duly subscribed for and purchased in the manner herein provided, and the certificates evidencing
such Common Shares, to be duly issued and delivered, and that at all times up to and including the Time of Expiry, while these Warrants remain outstanding, it shall have sufficient authorized capital to satisfy its obligations hereunder should the
holder determine to exercise the right in respect of all the Common Shares for the time being purchasable pursuant to the Warrants. All Common Shares issued upon the exercise of the right to purchase herein provided (upon payment therefor of the
amount at which such Common Shares may at the time be purchased pursuant to the provisions hereof), shall be issued as fully paid and non-assessable Common Shares. 
 The Corporation represents and warrants that it has requested that the Common Shares issuable hereunder be listed and posted for trading on the Toronto Stock Exchange (the “TSX”) and has received the conditional approval of the
TSX therefor. The Corporation covenants to use its reasonable best efforts to ensure that the conditions set forth in such approval are satisfied as soon as practicable. 
 Time shall be of the essence hereof. 
 The Warrants evidenced by this Warrant Certificate shall be governed by and construed
in accordance with the laws of the Province of Alberta and the laws of Canada applicable therein and shall be treated in all respects as an Alberta contract. 
 The Warrants evidenced by this Warrant Certificate shall not be valid for any purpose whatsoever until signed by the Corporation. 
 IN WITNESS
WHEREOF the Corporation has caused this Warrant Certificate to be executed and delivered by its proper officer, duly authorized in that regard. 
 DATED as of the 30th day of December, 2008. 
  

			
		 	TRANSATLANTIC PETROLEUM CORP.
		 	
		 	 Per: /s/ Jeffrey S.
Mecom                    

  

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 EXERCISE FORM 
 TO: TRANSATLANTIC PETROLEUM CORP. 
 The undersigned holder of the within Warrants hereby exercises the right to acquire
                         Common Shares without nominal or par value in the capital of TransAtlantic Petroleum Corp. at a
price of US$3.00 per share (or such other number of other securities or property to which such Warrants entitle the undersigned in lieu thereof or in addition thereto) on the terms specified in the within Warrant Certificate and encloses and tenders
herewith a certified cheque, bank draft or money order payable at par to or to the order of “TransAtlantic Petroleum Corp.” in lawful money of the United States for the aggregate subscription price of
US$                . 
 The undersigned represents, warrants and
certifies as follows (one of the following must be checked): 
  

					
	 ̈	  	A.	  	The undersigned holder (i) at the time of exercise of this Warrant is not in the United States; (ii) is not a “U.S. person” as defined in Regulation S under the United
States Securities Act of 1933, as amended (the “U.S. Securities Act”) and is not exercising this Warrant on behalf of a “U.S. person”; and (iii) did not execute or deliver this Exercise Form in the United
States.
			
	 ̈	  	B.	  	The undersigned holder (i) originally acquired the Warrants on its own behalf directly from the Corporation at a time when the holder was an accredited investor, as defined in Rule
501(a) under the U.S. Securities Act (an “Accredited Investor”); (ii) is exercising the Warrants solely for its own account and not on behalf of any other person; and (iii) is an Accredited Investor on the date
hereof.
			
	 ̈	  	C.	  	An exemption from registration under the U.S. Securities Act and any applicable state securities law is available, and attached hereto is an opinion of counsel to such effect, it being
understood that any opinion of counsel tendered in connection with the exercise of Warrants must be in form and substance satisfactory to the Corporation.

 The undersigned holder understands that (i) unless box A is checked, the certificate representing the Common
Shares will bear a legend restricting transfer without registration under the U.S. Securities Act and applicable state securities laws unless an exemption from registration is available; and (ii) Common Shares will not be registered or
delivered to an address in the United States unless box B or box C is checked. 
 The undersigned hereby directs that the Common Shares hereby subscribed for
be issued and delivered as follows: 
  

					
	 Name in Full
  
	  	 Address in Full
  
	  	 Number of Shares
  

 OR 
  

	 ̈	held for pick-up at the office of the Corporation 

 (Please state full
names in which share certificates are to be issued, stating whether Mr., Mrs. or Miss) 
 DATED this
             day of                         ,
            . 
  

					
		 		 	 
		 		 	(Signature of Subscriber)

  

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 Instructions: 
  

	1.	The registered holder may exercise its right to receive Common Shares by completing this form and surrendering this form and the Warrant Certificate representing the Warrants being
exercised to the Corporation at its principal office. 

  

	2.	If the Exercise Form indicates that Common Shares are to be issued to a person or persons other than the registered holder of the Certificate, the signature of such holder on the
Exercise Form must be guaranteed by a chartered bank, a trust company or a member firm of an approved signature guarantee medallion program. The guarantor must affix a stamp bearing the actual words: “SIGNATURE GUARANTEED”.

  

	3.	If the Exercise Form is signed by a trustee, executor, administrator, curator, guardian, attorney, officer of a corporation or any person acting in a fiduciary or representative
capacity, the certificate must be accompanied by evidence of authority to sign satisfactory to the Corporation. 

  

 - 11 - 

 TRANSFER FORM 
 TO: TRANSATLANTIC PETROLEUM CORP. 
 FOR VALUE RECEIVED, the undersigned holder of the within Warrants hereby sells, assigns and transfers to
                            ,
             Warrants of TransAtlantic Petroleum Corp. registered in the name of the undersigned on the records of the Corporation and irrevocably appoints
                     the attorney of the undersigned to transfer the said securities on the books or register with full power of substitution.

 The undersigned hereby directs that the Warrants hereby transferred be issued and delivered as follows: 
  

					
	 Name in Full
  
	  	 Address in Full*
  
	  	 Number of Warrants
  

 OR 
  

	 ̈	held for pick-up at the office of the Corporation 

 (Please state full
names in which share certificates are to be issued, stating whether Mr., Mrs. or Miss) 
 DATED this
             day of
                            ,
            . 
  

					
	  	 	  	 	  
	  	 	  	 	  
		 		 	(Signature of Warrantholder)

 Instructions: 
  

	1.	Signature of the Warrantholder must be the signature of the person appearing on the face of this Warrant Certificate. Signature of the transferee must be of the person in whose name
the Warrants will be issued. 

  

	2.	If the Transfer Form is signed by a trustee, executor, administrator, curator, guardian, attorney, officer of a corporation or any person acting in a fiduciary or representative
capacity, the certificate must be accompanied by evidence of authority to sign satisfactory to the Corporation. 

  

	3.	The signature on the Transfer Form must be guaranteed by a chartered bank or trust company, or a member firm of an approved signature guarantee medallion program. The guarantor must
affix a stamp bearing the actual words: “SIGNATURE GUARANTEED”. 

  

	4.	If this Warrant Certificate bears a legend on the first page restricting the transfer without registration under the United States Securities Act of 1933, as amended (the “U.S.
Securities Act”), this Transfer Form must be accompanied by one of the following: (a) a declaration to the effect that the Warrants are being transferred outside the United States in compliance with Rule 904 of Regulation S under the U.S.
Securities Act in a form satisfactory to the Corporation, or (b) an opinion of counsel to the effect that the transfer is in compliance with the requirements of the U.S. Securities Act and all applicable state securities laws, or other evidence
thereof (which opinion or other evidence must be in form and substance satisfactory to the Corporation).Employment Agreement between the Company and James A. Bianco

 Exhibit 10.1 
 CELL THERAPEUTICS, INC. 
 JAMES BIANCO EMPLOYMENT AGREEMENT 
 This Employment Agreement is entered into as of December 31, 2008, (the “Effective Date”) by and between Cell Therapeutics, Inc. (the
“Company”), and James A. Bianco (the “Executive”) (the “Agreement”) and effective January 1, 2009. This Agreement will automatically terminate on December 31, 2010 unless it is amended prior to such time to
extend the termination date. 
 1. Duties and Scope of Employment. 
 (a) Positions and Duties. As of the Effective Date, Executive will continue to serve as Chief Executive Officer of the Company
reporting directly to the Company’s Board of Directors (the “Board”). Executive will render such business and professional services in the performance of his duties, consistent with Executive’s position within the Company, as
will reasonably be assigned to him by the Board. 
 (b) Board Membership. During Executive’s employment, at each
annual meeting of the Company’s stockholders at which Executive’s term as a member of the Board has otherwise expired, the Company will nominate Executive to serve as a member of the Board. Executive’s service as a member of the Board
will be subject to any required stockholder approval. While a member of the Board, Executive will be permitted to attend all meetings of the Board and executive sessions thereof, on substantially the same basis as other members of the Board, except
as is prohibited by applicable law or listing standard and except any meeting of the Independent Directors held in an executive session. Notwithstanding the preceding sentence, Executive will not have the right to attend any portion of a meeting or
executive session where the item of discussion relates to Executive’s employment, including (but not limited to) his compensation, performance, and/or service on the Board. 
 (c) Obligations. During Executive’s employment, Executive will perform his duties faithfully and to the best of his ability
and will devote his full business efforts and time to the Company. For the duration of Executive’s employment, Executive agrees not to actively engage in any other employment, occupation or consulting activity for any direct or indirect
remuneration without the prior written approval of the Board. Notwithstanding the foregoing, Executive may serve on civic or charitable boards, fulfill speaking engagements and manage personal investments, provided that they do not materially
interfere with Executive’s responsibilities and are otherwise not competitive and do not conflict with the Company’s business in any manner. Executive may also serve in non-executive roles (including as a non-executive chairman of a board
or a similar role) for other entities, provided Executive receives prior written approval from the Board, which approval shall not be unreasonably withheld. As of the Effective Date, the Board has approved Executive’s role as a consultant and
as a member of the Board of Directors of Aequus Biopharma, Inc. Executive shall comply with the Company’s policies and rules, as they may be in effect from time to time during Executive’s employment. 

 2. At-Will Employment. The parties agree that the Executive’s employment with the Company
constitutes “at-will” employment and may be terminated at any time with or without cause or notice. Executive understands and agrees that neither his job performance nor promotions, commendations, bonuses or the like from the Company give
rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of his employment with the Company. 
 3. Compensation. 
 (a) Base Salary. During Executive’s employment, the
Company will pay Executive as compensation for his services a base salary at the annualized rate of Six Hundred Fifty Thousand Dollars ($650,000) (the “Base Salary”); provided that the Compensation Committee of the Board (the
“Committee”) shall reconsider such Base Salary on or before February 28, 2009 and, in its’ sole discretion after due consideration, determine to maintain or increase such Base Salary for the remainder of Executive’s
employment. The Base Salary will be paid periodically in accordance with the Company’s normal payroll practices and be subject to the usual, required withholding. 
 (b) Annual Bonus. Executive will be eligible to earn an annual performance bonus each calendar year based upon Executive’s
actual achievement for the calendar year relative to certain specified objective or subjective performance goals, as determined by the Committee in its sole discretion. Specifically: 
 (i) Executive will be eligible to earn a target bonus for a calendar year of performance based upon Executive’s achievement of
specified reasonable and achievable individual, financial and/or business goals (the “Target Bonus Goals”), which goals are established, after consultation with Executive, by the Committee no later than sixty (60) days after the
beginning of each calendar year of performance; provided that the Target Bonus Goals for the 2009 calendar year of performance shall be established by February 28, 2009. Executive will be eligible to receive a target bonus of at least fifty
percent (50%) of his Base Salary upon one hundred percent (100%) achievement of the Target Bonus Goals. For purposes of clarity, the Committee may approve individual Target Bonus Goals which, if achieved, will result in some portion of the
target bonus being achieved, as determined by the Committee in its’ sole discretion. The Committee may also, in its’ sole discretion, approve discretionary bonuses in any amount at any time. 
 (ii) Executive will be eligible to earn additional bonus amounts for a calendar year of performance based upon Executive’s
achievement of specified individual, financial and/or business goals which are considered “stretch” goals that are achievable upon Executive’s outstanding performance for the calendar year of performance (the “Stretch Bonus
Goals”), which goals and the additional bonus amounts that are eligible to be earned upon one hundred percent (100%) achievement of one or more of such goals shall be established, after consultation with Executive, by the Committee no
later than sixty (60) days after the beginning of each calendar year of performance; provided that the Stretch Bonus Goals and amount of additional bonus that may be earned for the 2009 calendar year of performance shall be established by
February 28, 2009. 
  

 2 

 Whether or not any target bonus or additional bonus is earned by Executive will depend on
Executive’s actual performance for the calendar year relative to the established performance goals, as determined by the Committee, in its sole discretion. Notwithstanding anything stated herein to the contrary, Executive must be employed by or
providing services to the Company on the date bonus payments are made to be eligible to receive any target or additional bonus amounts (Executive will not receive any target or additional bonus amounts if Executive’s service terminates, for any
reason, prior to the date either such bonus amount is paid). 
 (c) Equity Compensation. Executive will be eligible to
receive equity awards at the discretion of the Board or the Committee, as applicable, under and pursuant to the terms of the Company’s equity plans. In its’ sole and absolute discretion, the Committee shall determine a reasonable strategy
for future equity awards on or before February 28, 2009. 
 4. Executive Benefits. 
 (a) Health Benefits. During Executive’s employment, Executive will be entitled to participate in the employee benefit plans
currently and hereafter maintained by the Company and generally available to other senior executives of the Company, including, without limitation, the Company’s group medical (including reimbursement of retainer fees for physician concierge
services (MD2), subject to a maximum cap on such reimbursements of Fifteen Thousand Dollars ($15,000) per year), dental, vision, and flexible-spending account plans. To the extent the Company cancels or changes the benefit plans and programs
generally available to other senior executives of the Company, the Company reserves the right to cancel or change the benefit plans and programs it offers to Executive on an equivalent basis. 
 (b) Life/Disability Insurance. The Company will pay the annual premiums for universal life insurance (or other non-term life
insurance) for the benefit of Executive and his beneficiaries, with a policy coverage amount of not less than Five Million Dollars ($5,000,000); provided that the total premiums for such life insurance paid by the Company shall not exceed Forty One
Thousand Five Hundred Dollars ($41,500) per year (such cap shall be adjusted annually based on the cost of living adjustments applicable to U.S. social security benefits beginning with calendar year 2010; Executive shall not be entitled to any tax
gross-up for this life insurance benefit). Furthermore, the Company will provide, at Executive’s expense, disability insurance for the benefit of Executive. Executive’s Base Salary will be increased by the amount of the annual premium for
such disability coverage and the Company’s records will reflect that the premiums for the disability policy have been paid by the Executive. The above benefits are subject to availability at reasonable cost and any limitations resulting from
Executive’s physical condition; provided that, in the event the annual premium cost of the above life insurance coverage shall increase above the premium cap specified above due to changes in Executive’s physical condition or other
factors, the Company shall pay the annual premiums for such coverage as may be available and which is as comparable to the above coverage as possible, with total annual premiums not to exceed the annual premium cap specified above. The policy will
accrue to the benefit of Executive and Executive will be entitled to the full ownership and benefit of the life insurance policy, even after termination of his employment for any reason. 
 (c) Health Club Membership. The Company will reimburse the Executive for the reasonable dues and expenses of maintaining his health
club membership, not to exceed Five Hundred Dollars ($500) per month (Executive shall not be entitled to any tax gross-up for this health club benefit). 
  

 3 

 (d) Chartered Aircraft. To the extent permitted by the Company’s travel
policy to be reviewed and approved from time to time by the Company’s audit committee: (i) the Company shall pay for Executive’s use of chartered aircraft for business purposes when cost effective and/or in the best interests of the
Company, and (ii) Executive’s family members may accompany Executive on such business trips, provided that Executive must pay the Company the amount necessary to ensure that such travel by Executive’s family members will not be
treated as taxable compensation to Executive. (Executive shall not be entitled to any tax gross-up for this chartered aircraft benefit). 
 (e) Tax Preparation. The Company shall reimburse Executive for all reasonable costs and expenses incurred by Executive for outside tax planning and tax return preparation services for Executive, up to a maximum
of Three Thousand Five Hundred Dollars ($3,500)(Executive shall not be entitled to any tax gross-up for this tax preparation benefit). 
 (f) Medical License Fees. The Company shall promptly reimburse Executive for all reasonable and necessary costs and expenses incurred by Executive to maintain Executive’s medical license (Executive shall
not be entitled to any tax gross-up for this benefit). 
 5. Vacation. Executive will be entitled to paid vacation of four
(4) weeks per year in accordance with the Company’s vacation policy, with the timing and duration of specific vacations mutually and reasonably agreed to by parties hereto. Any accrued but unused vacation time will be carried to the
following year, pursuant to Company policy. 
 6. Expenses. The Company will reimburse Executive for reasonable travel, entertainment
or other expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time. 

7. Severance. 
 (a)
Involuntary Termination. If Executive’s employment is terminated by the Company without Cause (as defined herein) or if Executive resigns from Executive’s employment for Good Reason (as defined herein)(for purposes of clarity, a
termination without Cause or for Good Reason does not include a termination that occurs as a result of Executive’s death or disability), and provided that such termination constitutes a “separation from service” as defined in Treasury
Regulation Section 1.409A-1(h) (“Separation”) and Executive signs and does not revoke a general release of all claims in the form prescribed by the Company (a “Release”) and such Release becomes effective within sixty
(60) days of Executive’s Separation (the “Deadline”), then, subject to Section 7(e) below, Executive shall receive: (i) two (2) years of Base Salary, which shall be paid in twenty-four (24) equal installments
pursuant to the Company’s regular payroll procedures, commencing on the Company’s first normal payroll date that occurs on or after the Deadline; (ii) any unvested portion of any outstanding options and/or any unvested shares of
Company common stock that have been issued under any stock option and stock incentive plans of the Company or otherwise will immediately vest and become 

  

 4 

 
exercisable and will remain exercisable for a period of two (2) years following the date of Executive’s Separation (except with respect to any
options granted pursuant to a plan intended to qualify under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”)), subject to the terms of the applicable plan and award agreement; (iii) the Company shall
reimburse Executive for monthly premiums paid to continue Executive’s (and, if applicable, Executive’s eligible spouse and dependents) Company health insurance under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”)
for two (2) years from the date that Executive (and, if applicable, Executive’s eligible spouse and dependents) lose health care coverage as an employee under the Company’s health plans until the earlier of: (1) a date two
(2) years after the date health care coverage is lost as an employee; or (2) a date on which the Executive is covered under the medical plan of another employer, which does not exclude pre-existing conditions; (iv) the Company shall
continue to pay premiums to maintain any life insurance for Executive, existing and paid for by the Company as of the date of Executive’s Separation, for two (2) years following Executive’s Separation, which payments shall be made on
each regularly scheduled due date for such payments beginning with the first regularly scheduled due date that occurs on or after the Deadline (with any payments due prior to such time being made on such date); and (v) all accrued but unused
vacation and sick leave will be paid upon Executive’s termination of employment. 
 (b) Voluntary Termination;
Termination for Cause. If Executive’s employment with the Company terminates voluntarily, other than for Good Reason by Executive or for Cause by the Company, then (i) all vesting of unvested or restricted shares of Company common
stock or of any outstanding options under any stock option and stock incentive plans of the Company or otherwise held by Executive will terminate immediately; (ii) all payments of compensation by the Company to Executive hereunder will
terminate immediately (except as to amounts already earned), and (iii) Executive will only be eligible for severance benefits in accordance with the Company’s established policies as then in effect. 
 (c) Involuntary Termination after a Change of Control. In the event of a Change of Control (as defined below) and Executive is
terminated without Cause or voluntarily terminates for Good Reason (for purposes of clarity, a termination without Cause or for Good Reason does not include a termination that occurs as a result of Executive’s death or disability) and provided
that such termination constitutes a Separation and Executive signs and does not revoke a Release and such Release becomes effective by the Deadline, then, subject to Section 7(e), Executive shall not receive the severance set forth in
Section 7(a) above and shall instead receive the following: (i) a lump sum payment equal to two (2) years of Base Salary, plus an amount equal to the greater of the average of the three (3) prior years’ bonuses or thirty
percent (30%) of Executive’s Base Salary, which shall be paid on the Company’s first normal payroll date that occurs on or after the Deadline, (ii) the Company shall reimburse Executive for monthly premiums paid to continue
Executive’s (and, if applicable, Executive’s eligible spouse and dependents) Company health insurance under COBRA for two (2) years from the date that Executive (and, if applicable, Executive’s eligible spouse and dependents)
lose health care coverage as an employee under the Company’s health plans until the earlier of: (1) a date two (2) years after the date health care coverage is lost as an employee; or (2) a date on which the Executive is covered
under the medical plan of another employer, which does not exclude pre-existing conditions; (iii) the Company shall continue to pay premiums to maintain any life insurance for Executive, existing and paid for by the Company as of the date of
Executive’s 

  

 5 

 
Separation, for two (2) years following Executive’s Separation, which payments shall be made on each regularly scheduled due date for such payments
beginning with the first regularly scheduled due date that occurs on or after the Deadline (with any payments due prior to such time being made on such date); and (iv) all accrued but unused vacation and sick leave will be paid upon
Executive’s termination of employment. 
 (d) Code Section 409A. For purposes of Code Section 409A, each
payment that is paid under Sections 7(a) and/or (c) above is hereby designated as a separate payment. Notwithstanding anything stated herein to the contrary, each of the separate payments made within six (6) months of Executive’s
Separation, to the extent subject to Code Section 409A, is intended to be exempt from Code Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii); provided that (i) to the extent that any of such payments do not
qualify to be exempt from Code Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii) or otherwise exceeds the limit set forth in Treasury Regulation Section 1.409A-1(b)(9)(iii)(A) or any similar limit promulgated by
the Treasury or the IRS, and (ii) if the Company (for this purpose, “employer” as defined in Treasury Regulation Section 1.409A-1(h)(3)) is publicly traded on an established securities market or otherwise at the time of
Executive’s Separation and, at the time of Executive’s Separation Executive is a “specified employee,” as defined in Treasury Regulation Section 1.409A-1(i), then the portion of the payments that does not qualify or
otherwise exceeds such limit shall not be paid during the six (6) month period following Executive’s Separation and shall instead be paid on the first business day following the expiration of such six (6) month period or, if earlier,
the date of Executive’s death, and any remaining payments shall continue to be paid in accordance with this Section 7. 
 (e) Forfeiture of Severance Benefits. Notwithstanding the foregoing, Executive will forfeit, and if already paid, repay to the Company on an after-tax basis, any severance benefits set forth in Section 7 (a) or (c) if:
(i) the Company is required to restate financials due to the material noncompliance of the Company with any financial reporting requirement under the U.S. securities laws during any period for which Executive was Chief Executive Officer of the
Company; (ii) Executive acts in a manner that would have constituted Cause had he been employed at the time of such act; and/or (iii) Executive otherwise violates the terms of this Agreement, including but not limited to the provisions of
Section 12. 
 (f) No Mitigation. Executive shall not be required to mitigate the amount of any payment or benefit
contemplated by this Section 7, nor shall any such payment or benefit be reduced by any earnings or benefits that the Executive may receive from any other source. 
 8. Change of Control Benefits. In the event of a Change of Control during Executive’s employment, any unvested portion of any outstanding options and/or any unvested shares of Company common stock that
have been issued under any stock option and stock incentive plans of the Company or otherwise held by Executive at the time of the Change of Control will have such vesting accelerated so as to become 100% vested and exercisable and will remain
exercisable for a period of two (2) years following the date of Executive’s Separation (except with respect to any options granted pursuant to a plan intended to qualify under Section 423 of the Code), subject to the terms of the
applicable plan and award agreement. Thereafter, any outstanding options and/or shares of Company common stock that have been issued under any stock option and stock incentive plans of the Company or otherwise held by Executive will be subject to
the terms, definitions and provisions of the applicable plan and award agreements. 
  

 6 

 9. Gross-Up. In the event that any compensation and other benefits provided for in this Agreement
following a Change of Control, Involuntary Termination, or Voluntary Termination for Good Reason constitute “parachute payments” within the meaning of Section 280G of the Code and will be subject to the excise tax imposed by
Section 4999 of the Code, then the Executive will receive (i) a payment from the Company sufficient to pay such excise tax, and (ii) an additional payment from the Company sufficient to pay the excise tax and federal and state income
taxes arising from the payments made by the Company to Executive pursuant to this sentence. Any payment required pursuant to this Section 9 will be paid as soon as practicable after a determination is made pursuant to this Section; provided
that, in any event, such payment will be paid by the end of the calendar year next following the calendar year in which Executive remits the related taxes in compliance with Treasury Regulation Section 1.409A-3(i)(1)(v). Any determination
required under this Section shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon the Executive and the Company for all purposes. In the
event that the excise tax incurred by Executive is determined by the Internal Revenue Service to be greater or lesser than the amount so determined by the Accountants, the Company and Executive agree to promptly make such additional payment,
including interest and any tax penalties, to the other party as the Accountants reasonably determine is appropriate to ensure that the net economic effect to Executive under this Section, on an after-tax basis, is as if the Code Section 4999
excise tax did not apply to Executive. For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on interpretations of the Code for
which there is a “substantial authority” tax reporting position. The Company and the Executive will furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under
this Section. The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section. Except as specifically described in this section, the Company has no obligation to pay Executive a
gross-up for any other income or excise tax that might be owed by the Executive as a result of any compensation to Executive. 
 10.
Definitions. 
 (a) Cause. For purposes of this Agreement, “Cause” is defined as (i) gross
negligence or willful misconduct in the performance of Executive’s duties to the Company after written notice to Executive and the failure to cure same within ten (10) days after receipt of written notice; (ii) refusal or failure to
act in accordance with any lawful specific direction or order of the Board after written notice to Executive of such refusal or failure and failure to cure the same within ten (10) days after receipt of written notice; (iii) commission of
any act of fraud with respect to the Company; (iv) Executive’s material breach of any written agreement or material policy of the Company after written notice to Executive of such breach and failure to cure, if curable, the same within ten
(10) days after receipt of written notice; and (v) Executive’s conviction of, or plea of nolo contendre to, a crime which adversely affects the Company’s business or reputation, in each case as determined by the Board.

  

 7 

 (b) Change of Control. For purposes of this Agreement, “Change of
Control” of the Company is defined as: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the “beneficial owner” (as defined in Rule
13d-3 under said Act), directly or indirectly, of securities of the Company representing 33% or more of the total voting power represented by the Company’s then outstanding voting securities; or (ii) a change in the composition of the
Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” will mean directors who either (i) are members of the Company as of the date hereof,
or (ii) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose election or
nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); or (iii) the date of the consummation of a merger or consolidation of the Company with any other corporation that has
been approved by the shareholders of the Company, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation, or the shareholders of the Company approve a plan of complete liquidation of the Company; or (iv) the date of the consummation of the sale or disposition by the Company of all or substantially all the Company’s assets.

 (c) Good Reason. For purposes of this Agreement, “Good Reason” is defined as a voluntary resignation by
Executive upon thirty (30) days prior written notice to the Company, within sixty (60) days following the occurrence of one or more of the following events without Executive’s prior written consent: (i) a material reduction in
Executive’s responsibilities, authority, titles or offices resulting in material diminution of his position, excluding for this purpose an isolated, insubstantial, inadvertent action not taken in bad faith; (ii) a reduction of more than
ten percent (10%) of Executive’s Base Salary, other than as a part of an across-the-board salary reduction applicable to executive officers of the Company; (iii) relocation of Executive’s primary place of business for the
performance of his duties to a location which is more than fifty (50) miles from its prior location; or (iv) a material breach by the Company of this Agreement; and provided further that the Company shall have thirty (30) days after
delivery of such notice to cure, and only if the Company does not cure within that time shall there be Good Reason. 
 11. Confidential
Information. Executive agrees that the Company’s Confidential Information and Invention Assignment Agreement (the “Confidential Information Agreement”) that Executive has previously signed will remain in full force and effect
throughout the term of this Agreement. 
 12. Confidential Nature of Severance Payments. 
 (a) Noncompete. Executive agrees that, while he is employed by the Company and for the two (2) year period following
termination of his employment, he will not (except in furtherance of his employment with the Company), without the prior written consent of the Company, either directly or indirectly (i) solicit business from, or compete with the 

  

 8 

 
Company or any Company affiliate for the business of, any customer of the Company or any Company affiliate, (ii) operate, control, advise, be engaged
by, perform any consulting services for, invest in (other than less than one percent (1%) of the outstanding stock in a publicly held corporation which is traded over-the-counter or on a recognized securities exchange), or (iii) otherwise
become associated in any capacity with, any business, company, partnership, organization, proprietorship, or other entity who or which researches, sells, manufacturers or distributes oncology drugs or oncology products in those geographical areas in
which the Company or any Company affiliate conducts or has conducted such business during Executive’s employment. 
 (b)
Non-Solicitation. Executive agrees that while he is employed by the Company and for an two (2) year period thereafter, he will not (except in furtherance of his employment with the Company), without the prior written consent of the
Company, directly or indirectly solicit, induce, or attempt to solicit or induce any employee, agent, or other representative or associate of the Company or any Company affiliate to terminate its relationship with the Company or any Company
affiliate or in any way interfere with such a relationship or a relationship between the Company or any Company affiliate and any of its suppliers or distributors. 
 (c) Understanding of Covenants. The Executive represents that he (i) is familiar with the foregoing covenants not to compete
and not to solicit, and (ii) is fully aware of his obligations hereunder, including, without limitation, the reasonableness of the length of time, scope and geographic coverage of these covenants. 
 13. Assignment. This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives of
Executive upon Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose, “successor”
means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company. None of the rights of
Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution. Any other attempted assignment, transfer, conveyance or other disposition of
Executive’s right to compensation or other benefits will be null and void. 
 14. Notices. All notices, requests, demands and
other communications called for hereunder will be in writing and will be deemed given (i) on the date of delivery if delivered personally, (ii) one (1) day after being sent by a well established commercial overnight service, or
(iii) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later
designate in writing: 
 If to the Company: 
 Cell Therapeutics, Inc. 
 501 Elliot Avenue West, Suite 400 
 Seattle, Washington 98819 
 Attn: Chairman of
the Board 
  

 9 

 If to Executive: 
 At the last address provided to the Company 
 or, in the event Executive changes residences, at the last residential address known by the Company. 
 15.
Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said provision. 

16. Arbitration. 
 (a) Executive agrees that any dispute or controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof, will be settled by binding
arbitration to be held in King County, Washington in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association (the “Rules”). The arbitrator may grant injunctions or
other relief in such dispute or controversy. The decision of the arbitrator will be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction.

 (b) The arbitrator(s) will apply Washington law to the merits of any dispute or claim, without reference to rules of
conflicts of law. The arbitration proceedings will be governed by federal arbitration law and by the Rules, without reference to state arbitration law. The Executive hereby consents to the personal jurisdiction of the state and federal courts
located in Washington for any action or proceeding arising from or relating to this Agreement or relating to any arbitration in which the parties are participants. 
 (c) EXECUTIVE HAS READ AND UNDERSTANDS THIS SECTION, WHICH DISCUSSES ARBITRATION. EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT,
EXECUTIVE AGREES TO SUBMIT ANY CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO BINDING ARBITRATION, AND THAT THIS ARBITRATION
CLAUSE CONSTITUTES A WAIVER OF EXECUTIVE’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, DISCRIMINATION CLAIMS. 
 17. Integration. This Agreement, together with the Confidential Information Agreement, represents the entire agreement and understanding between
the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral. No waiver, alteration, or modification of any of the provisions of this Agreement will be binding unless in writing and
signed by duly authorized representatives of the parties hereto. 
  

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 18. Waiver of Breach. The waiver of a breach of any term or provision of this Agreement, which
must be in writing, will not operate as or be construed to be a waiver of any other previous or subsequent breach of this Agreement. 
 19.
Tax Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable taxes. 
 20. Legal
Fees. Following receipt of appropriate invoices and receipts, the Company shall reimburse Executive for up to fifteen thousand dollars ($15,000) of reasonable costs and expenses (including fees and disbursements of counsel) actually incurred by
Executive in negotiating the terms and conditions of this Agreement. 
 21. Governing Law. This Agreement will be governed by the laws
of the State of Washington. 
 22. Acknowledgment. Executive acknowledges that he has had the opportunity to discuss this matter with
and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement. 
  

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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by their
duly authorized officers, as of the date and year set forth below. 
  

									
	Cell Therapeutics, Inc.	 		 	
					
	By:	 	/s/ Frederick W. Telling, Ph.D.	 		 	Date:	 	December 31, 2008
	Title:	 	Chairman, Compensation Committee	 		 		 	
				
	James A. Bianco, M.D.	 		 		 	
				
	/s/ James A. Bianco, M.D.	 		 	Date:	 	December 31, 2008

  

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