Document:

Form of Common Stock Purchase Warrant, dated July 27, 2010

 Exhibit 4.6 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR HYPOTHECATED ABSENT REGISTRATION OF SUCH TRANSACTION PURSUANT TO THE SECURITIES ACT
OR PURSUANT TO AN AVAILABLE EXEMPTION THEREFROM. 
 COMMON STOCK PURCHASE WARRANT 

To Purchase [—] Shares of Common Stock of 

CELL THERAPEUTICS, INC. 
  

			
	Initial Issuance Date: July 27, 2010	 	Warrant No. WC-[—]

THIS COMMON STOCK PURCHASE WARRANT (this “Warrant”) certifies that, for value received,
[—] (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the six (6) month and
one (1) day anniversary of the Initial Issuance Date (the “Initial Exercise Date”) and on or before the close of business on the four (4) year, six (6) month, and one (1) day anniversary of the Initial Issuance
Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from Cell Therapeutics, Inc., a Washington corporation (the “Company”), up to [—]
shares (the “Warrant Shares”) of common stock, no par value per share (the “Common Stock”) of the Company; provided, however, that in no event shall Holder be entitled to subscribe for and
purchase from the Company the Warrant Shares (or any portion thereof) unless and until (i) the shareholders of the Company approve, after the Initial Issuance Date, an amendment to the Company’s amended and restated articles of
incorporation to increase the authorized shares of Common Stock available for issuance thereunder by 400,000,000 shares as required by applicable law (the “Shareholder Approval”) and such amendment (the “Amendment”)
has been become effective or (ii) the Company notifies the Holder that the Warrant Shares (or any portion thereof) are otherwise reserved for issuance in accordance with Section 6(e) of this Warrant, in which case the Holder will be
entitled to exercise this Warrant for the number of Warrant Shares set forth in such notice from the Company; provided, further, that in no event shall this Warrant be exercisable before the Initial Exercise Date. The purchase price of
one share of Common Stock under this Warrant shall be equal to the Exercise Price (as defined in Section 2(b) of this Warrant). This Warrant is issued pursuant to the [—] dated
[—] by and among the Company and certain other parties named therein (the “Agreement”). 

Section 1. Reserved. 

Section 2. Exercise. 

(a) Exercise of Warrant. Subject to the receipt of the Shareholder Approval and the effectiveness of the Amendment
or to the extent of notification by the Company pursuant to Section 6(e) of this Warrant and the reservation of the shares contemplated 

 

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thereby, the exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the
Termination Date by (1) delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly
executed facsimile copy of a Notice of Exercise in the form attached to this Warrant (the “Notice of Exercise”); provided, however, within five (5) Trading Days (as defined below) of the date said Notice of
Exercise is delivered to the Company, if this Warrant is exercised in full, the Holder shall have surrendered this Warrant to the Company, and (2) payment to the Company of the aggregate Exercise Price (as defined in Section 2(b) of
this Warrant) of the shares thereby purchased (as well as all taxes required to be paid by the Holder, if any, pursuant to Section 2(e)(vii) of this Warrant) by wire transfer or cashier’s check drawn on a United States bank.
Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and this Warrant has been exercised in
full. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal
to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise
within one (1) Business Day (as defined below) of receipt of such notice. In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. The Holder and any
assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at
any given time may be less than the amount stated on the face of this Warrant. 
 “Business
Day” means any day except Saturday, Sunday, any day which shall be a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close. 
 (b) Exercise Price. The exercise price per share of the Common Stock under this Warrant shall
be $0.42, subject to adjustment hereunder (the “Exercise Price”). 
 (c) Cashless
Exercise. If at the time of exercise of this Warrant there is no effective registration statement registering (or the prospectus contained therein is not available for) the issuance of the Warrant Shares to the Holder and also at such time of
exercise all of the Warrant Shares are not then registered for resale by the Holder into the market at market prices from time to time on an effective registration statement for use on a continuous basis (or the prospectus contained therein is not
available for use), then this Warrant may also be exercised at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by
dividing [(A-B) (X)] by (A), where: 
  

					
	(A)	 	=	  	the VWAP (as defined below) on the Trading Day immediately preceding the date of such election;

 

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	(B)	 	=	  	the Exercise Price of this Warrant, as adjusted; and
			
	(X)	 	=	  	the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless
exercise.

 “VWAP” means, for any date, the price determined by the first of the
following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market (as defined below), the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading
Market on which the Common Stock is then listed or quoted for trading as reported by Bloomberg L.P. (“Bloomberg”) (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)); (b) if the Common
Stock is then listed or quoted on the OTC Bulletin Board and the OTC Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board; (c) if
the Common Stock is not then quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its
functions of reporting prices), the most recent bid price per share of the Common Stock so reported; or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by
the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company. 

“Trading Day” means a day on which the Common Stock is traded on a Trading Market. 

“Trading Market” means the following markets or exchanges on which the Common Stock is listed or quoted
for trading on the date in question: the NYSE Amex; The NASDAQ Capital Market; The NASDAQ Global Market; The NASDAQ Global Select Market; the New York Stock Exchange; or the Borsa Italiana S.p.A. (MTA International). 

In addition, if at the time this Warrant is exercisable the Company has not obtained the Shareholder Approval at the
Shareholder Meeting or any adjournment thereof and a sufficient number of authorized shares of the Company have otherwise become available for reservation following the Initial Issuance Date as provided in the third sentence of
Section 6(e), the foregoing “cashless exercise” shall be available to the Holder to the extent of such otherwise reserved shares underlying this Warrant. Upon receipt of Shareholder Approval and the Company’s amendment of
its articles of incorporation to increase its authorized share capital in accordance with the Shareholder Approval, this right shall terminate. 
  

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 (d) Holder’s Restrictions. Notwithstanding
anything to the contrary contained in this Warrant, this Warrant shall not be exercisable by the Holder to the extent (but only to the extent) that the Holder or any of its affiliates would beneficially own 4.99% or more (the “Maximum
Percentage”) of the Common Stock; provided, however, that the Holder, upon not less than 61 days’ prior notice to the Company, may increase or decrease the Maximum Percentage set forth in this
Section 2(d), provided that the Maximum Percentage in no event exceeds 9.99% of the Common Stock and the provisions of this Section 2(d) shall continue to apply. Any such increase or decrease will not be effective
until the 61st day after such notice is delivered to the
Company. To the extent the above limitation applies, the determination of whether this Warrant shall be exercisable (vis-à-vis other convertible, exercisable or exchangeable securities owned by the Holder) and of which warrants shall be
exercisable (as among all warrants owned by the Holder) shall, subject to such Maximum Percentage limitation, be determined on the basis of the first submission to the Company for conversion, exercise or exchange (as the case may be). No prior
inability to exercise this Warrant pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability. For the purposes of this paragraph,
beneficial ownership and all determinations and calculations (including, without limitation, with respect to calculations of percentage ownership) shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and the rules and regulations promulgated thereunder. The provisions of this paragraph shall be implemented in a manner otherwise than in strict conformity with the terms of this paragraph to correct
this paragraph (or any portion of this Warrant) which may be defective or inconsistent with the intended Maximum Percentage beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give
effect to such Maximum Percentage limitation. The limitations contained in this paragraph shall apply to a successor Holder of this Warrant. The holders of Common Stock shall be third party beneficiaries of this paragraph and the Company may not
waive this paragraph without the consent of holders of a majority of its Common Stock. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing to
the Holder the number of shares of Common Stock then outstanding, including by virtue of any prior conversion or exercise of convertible or exercisable securities into Common Stock, including, without limitation, pursuant to this Warrant.

 (e) Mechanics of Exercise. 

(i) Authorization of Warrant Shares. If and when the Company obtains the Shareholder Approval and the Amendment
becomes effective or to the extent of notification by the Company pursuant to Section 6(e) of this Warrant and the reservation of the shares contemplated thereby, the Company covenants that all Warrant Shares which may be issued upon the
exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment of the Exercise Price therefor, be duly authorized, validly issued, fully paid and nonassessable and free
from all taxes, liens and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). 
  

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 (ii) Delivery of Certificates Upon Exercise. Certificates
representing Warrant Shares shall be transmitted by the transfer agent of the Company to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission
(“DWAC”) system if the Company is a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to, or resale of the Warrant Shares by, the Holder, or
(B) this Warrant is being exercised, after the six month anniversary of the Initial Issuance Date, via cashless exercise, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise within three
(3) Business Days from the delivery to the Company of the Notice of Exercise, surrender of this Warrant (if required) and payment of the aggregate Exercise Price as set forth above (including, by cashless exercise, if permitted)
(“Warrant Share Delivery Date”). If all or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the issuance or resale of the Warrant Shares or if the legend is not required
under applicable securities laws, such Warrant Shares shall be issued free of all legends on or before the Warrant Share Delivery Date. This Warrant shall be deemed to have been exercised on the first date on which the Notice of Exercise has been
properly delivered to the Company, the Company has received the Exercise Price (or documentation of cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(e)(vii) of this Warrant
before the issuance of such shares have been paid. The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all
purposes, on the first date on which the Notice of Exercise has been properly delivered to the Company, the Company has received the Exercise Price (or documentation of cashless exercise, if permitted) and all taxes required to be paid by the
Holder, if any, pursuant to Section 2(e)(vii) of this Warrant before the issuance of such shares have been paid. 

(iii) Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall,
at the request of a Holder and upon surrender of this Warrant, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased
Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 

(iv) Rescission Rights. If the Company fails to cause its transfer agent to transmit to the Holder a certificate or
certificates representing the Warrant Shares pursuant to this Section 2(e) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise. 

(v) Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other
rights available to the Holder, but only after the Company obtains the Shareholder Approval and the Amendment becomes effective or to the extent of notification by the Company pursuant to Section 6(e)

  

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of this Warrant and the reservation of the shares contemplated thereby, if the Company fails to cause its transfer agent to transmit to the Holder a certificate or certificates representing the
Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date pursuant to this Section 2(e), and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise)
shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (1) pay in cash to the Holder the
amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the
Company was required to deliver to the Holder in connection with the exercise at issue times (B) the price at which the sell order giving rise to such purchase obligation was executed, and (2) at the option of the Holder, either reinstate
the portion of this Warrant and equivalent number of Warrant Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise
and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise
to such purchase obligation of $10,000, under clause (1) of the immediately preceding sentence, the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to
the Holder in respect of the Buy-In, together with applicable confirmations and other evidence reasonably requested by the Company. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in
equity, including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of this Warrant as required
pursuant to the terms of this Warrant. 
 (vi) No Fractional Shares or Scrip. No fractional shares or
scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay a cash adjustment in respect of such
final fraction in an amount equal to such fraction multiplied by the Exercise Price. 
 (vii) Charges, Taxes
and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall
be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in
a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder; and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto. 
  

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 (viii) Closing of Books. After the Company obtains the Shareholder
Approval and the Amendment becomes effective or to the extent of notification by the Company pursuant to Section 6(e) of this Warrant and the reservation of the shares contemplated thereby, the Company will not close its shareholder books or
records in any manner which prevents the timely exercise of this Warrant pursuant to the terms of this Warrant. 

Section 3. Certain Adjustments. 

(a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (A) pays a
stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of
Common Stock issued by the Company pursuant to this Warrant), (B) subdivides outstanding shares of Common Stock into a larger number of shares, (C) combines (including by way of reverse stock-split) outstanding shares of Common Stock into
a smaller number of shares, or (D) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the
number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event and the number of
shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective
immediately after the record date for the determination of shareholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 (b) Subsequent Rights Offerings. If the Company, at any time while this Warrant is outstanding, shall
issue rights, options or warrants to all holders of Common Stock (and not to the Holder) entitling them to subscribe for or purchase shares of Common Stock at a price per share less than the VWAP at the record date for the determination of
shareholders entitled to receive such rights, options or warrants, then, the Exercise Price shall be multiplied by a fraction, of which the denominator shall be the number of shares of the Common Stock outstanding on the date of issuance of such
rights or warrants plus the number of additional shares of Common Stock offered for subscription or purchase, and of which the numerator shall be the number of shares of Common Stock outstanding on the date of issuance of such rights or warrants
plus the number of shares which the aggregate offering price of the total number of shares so offered (assuming receipt by the Company in full of all consideration payable upon exercise of such rights, options or warrants) would purchase at such
VWAP. Such adjustment shall be made whenever such rights or warrants are issued, and shall become effective immediately after the record date for the determination of shareholders entitled to receive such rights, options or warrants. 

 

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 (c) Pro Rata Distributions. If the Company, at any time before the
Termination Date, shall distribute to all holders of Common Stock (and not to Holders of the Warrants) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other
than the Common Stock (which shall be subject to Section 3(b) of this Warrant), then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately before the record date fixed for
determination of shareholders entitled to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of such record date, and of which the numerator shall be such VWAP on such record date less the then per share
fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors of the Company (the
“Board”) in good faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share
of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after such record date. 

(d) Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company effects any
merger or consolidation of the Company with or into another person, (ii) the Company effects any sale of all or substantially all of its assets in one transaction or a series of related transactions, (iii) any tender offer or exchange
offer (whether by the Company or another person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange a material portion of the Company’s shares for other securities, cash or property, or (iv) the
Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental
Transaction”), then the Company shall make appropriate provision to ensure that the Holder will thereafter receive upon an exercise of this Warrant at any time after the consummation of a Fundamental Transaction but before the Termination
Date, in lieu of the Warrant Shares (or other stock, securities, cash, assets or other property whatsoever) issuable upon the exercise of this Warrant immediately before such Fundamental Transaction, such shares of stock, securities, cash, assets or
any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had this Warrant been exercised immediately before
such Fundamental Transaction (without regard to any limitations on the exercise of this Warrant). If any holder of Common Stock is given any choice as to the stock, securities, cash, assets or any other property whatsoever (including warrants or
other purchase or subscription rights) to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to what it receives upon any exercise of this Warrant following such Fundamental Transaction. [Notwithstanding
anything in this Section 3(d) to the contrary, in the event of a Fundamental Transaction that is (1) an all cash transaction where the Company is not the Successor Entity (as 

 

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defined below), (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act where the Company is not the Successor Entity, or (3) a Fundamental Transaction
involving a person or entity not traded on a national securities exchange, including, but not limited to, The Nasdaq Global Select Market, The Nasdaq Global Market, or The Nasdaq Capital Market where the Company is not the Successor Entity, such
Successor Entity shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction, purchase this Warrant from the Holder by paying to the Holder an amount of cash
equal to the Black Scholes Value (as defined below) of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction, provided that the foregoing right shall not be exercisable by the Holder
with respect to a Fundamental Transaction under clause (ii) above in this paragraph that results from the Company entering into a license or other agreement that licenses pixantrone (BBR 2778) to an unaffiliated and unrelated person or
entity so long as the Company together with its Subsidiaries continues to have bona fide, substantial and continuing business operations and activities after such license or other agreement is entered into (it being understood and agreed that
(A) the foregoing right shall become immediately exercisable by the Holder with respect to such Fundamental Transaction for a period of 30 days commencing on the date that the Company together with its Subsidiaries ceases to have bona fide,
substantial and continuing business operations and activities at any time after such license or other agreement is entered into, (B) the Company shall provide the Holder with prompt written notice of such cessation, and (C) Black Scholes
Value with respect to such Fundamental Transaction shall always be determined as of the day of consummation of such Fundamental Transaction but (I) the remaining option time shall be equal to (W) the time between the date of the public
announcement of such Fundamental Transaction and the Termination Date if such cessation occurs on or prior to the one (1) year anniversary of the consummation of such Fundamental Transaction, or (X) the time between the date of such
cessation and the Termination Date if such cessation occurs after the one (1) year anniversary of the consummation of such Fundamental Transaction (as applicable), and (II) the risk-free interest rate shall be equal to (Y) a risk-free
interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of such Fundamental Transaction and the Termination Date if such cessation occurs on or prior to the one (1) year
anniversary of the consummation of such Fundamental Transaction, or (Z) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of such cessation and the Termination Date if such
cessation occurs after the one (1) year anniversary of the consummation of such Fundamental Transaction (as applicable)). “Black Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model
obtained from the “OV” function on Bloomberg determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate
for a period equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (ii) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the
“HVT” function on Bloomberg as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (iii) the underlying price per 

 

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share used in such calculation shall be the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental
Transaction, and (iv) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination
Date.]1
 The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of
the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and
approved by the Holder (without unreasonable delay) prior to the Fundamental Transaction. The provisions of this paragraph shall apply similarly and equally to successive Fundamental Transactions and shall be applied as if this Warrant (and any
subsequent warrants) were fully exercisable and without regard to any limitations on the exercise of this Warrant (provided that the Holder shall continue to be entitled to the benefit of the Maximum Percentage, applied however with respect
to shares of capital stock registered under the Exchange Act and thereafter receivable upon exercise of this Warrant (or any such other warrant)). 

(e) Calculations. All calculations under this Section 3 shall be made to the nearest cent or the
nearest share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury
shares, if any) issued and outstanding. 
 (f) Notice to Holder. 

(i) Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to this Section 3,
the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. 

(ii) Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock; (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock; (C) the Company shall authorize the granting to all holders of the Common Stock
rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights; (D) the approval of any shareholders of the Company shall be required in connection with any reclassification of the Common Stock, any
consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property;
or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or 
  

	1
	Note: The bracketed language will not be included in Warrants issued to Holders in exchange for their existing Series 3 Warrants or any prior series of existing
warrants that does not have this bracketed language. 

  

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winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register (as defined
below) of the Company, at least twenty (20) calendar days before the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined, or (y) the
date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange
their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in
the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or
any of its subsidiaries, the Company shall forthwith file such notice with the Commission pursuant to a Current Report on Form 8-K. If and to the extent that this Warrant has become exercisable, the Holder is entitled to exercise this Warrant during
the period commencing on the date of such notice to the effective date of the event triggering such notice. 

Section 4. Transfer of Warrant. 

(a) Transferability. Subject to Section 4(b) of this Warrant, this Warrant and all rights hereunder are
transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or
attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.

 (b) Restrictions on Transfer. This Warrant was originally issued in a transaction exempt from
registration under the Securities Act, and this Warrant and the Warrant Shares may not be offered, sold or otherwise transferred in the absence of such registration or an applicable exemption therefrom. Holder shall notify the Company of such sale,
transfer, assignment, hypothecation or other disposition in such detail as is reasonably requested by the Company and shall provide the Company with evidence satisfactory to the Company, including, at the Company’s discretion, an opinion of
counsel satisfactory to the Company, that such sale, transfer, assignment, hypothecation or other disposition will be exempt from the registration and prospectus delivery 

 

 11 

 
requirements of applicable federal and state securities laws and regulations. Holder hereby consents to the Company making a notation in its records or giving any transfer agent of this Warrant
or the Warrant Shares an order to implement such restriction on transferability. 
 (c) New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation of this Warrant at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 4(a) and Section 4(b) of this Warrant, as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a
new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date set forth on the first page of this
Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto. 

(d) Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for
that purpose (the “Warrant Register”), in the name of the record Holder from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner of this Warrant for the purpose of any exercise of
this Warrant or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. 

Section 5. Representations and Warranties of the Holder. 

(a) Holder Status. At the time Holder was offered this Warrant and the Warrant Shares, it was, and as of the date
hereof it is, and on each date on which it exercises any Warrants for cash it will be, an institutional “accredited investor” as defined under Regulation D under the Securities Act (“Regulation D”) and/or meets the
definition of “qualified institutional buyer” as defined in Rule 144A(a)(1) under the Securities Act, and is not an entity formed for the sole purpose of acquiring this Warrant and the Warrant Shares. The Holder is not required to be
registered as a broker-dealer under Section 15 of the Exchange Act. 
 (b) Experience of Holder.
Holder has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in this Warrant and the Warrant Shares, and has so evaluated the merits
and risks of such investment. The Holder has had access to such information as it deemed necessary in order to conduct any due diligence it has determined it wants to do in connection with the purchase of this Warrant or any Warrant Shares. The
Holder is able to bear the economic risk of an investment in this Warrant and the Warrant Shares and, at the present time, is able to afford a complete loss of such investment. Holder understands that nothing in this Warrant, the Agreement any other
materials presented to Holder in connection with the purchase and sale of this Warrant and the Warrant Shares constitutes legal, tax or investment advice. Holder acknowledges that it must rely on legal, tax and investment advisors of its own
choosing in connection with its purchase of this Warrant and the Warrant Shares. 
  

 12 

 (c) Purchase for Own Account; No General Solicitation or General
Advertising. Holder is acquiring this Warrant and the Warrant Shares for its own account, in the ordinary course of its business and not with a view toward, or for resale in connection with, the public sale or distribution thereof in a manner
that would violate the Securities Act. Holder is not acquiring this Warrant or the Warrant Shares as a result of any “general solicitation” or “general advertising,” as such terms are used in Regulation D under the
Securities Act, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general
solicitation or general advertising. 
 (d) Rule 144; Restricted Nature of Warrants and Warrant Shares.
Holder has read and understands Rule 144 of the Securities Act and further understands that until such time as the same are no longer required under applicable requirements of the Securities Act or applicable state securities laws, this Warrant and
the Warrant Shares shall be restricted securities within the meaning of the federal securities laws and this Warrant and any certificates representing the Warrant Shares, and all certificates or other instruments issued in exchange therefor or in
substitution thereof, shall bear a customary restrictive legend substantially in the form set forth below, and that the Company will make a notation on its records and give instructions to its transfer agent in order to implement the restrictions on
transfer set forth and described therein: 
 “The Securities represented hereby have not been registered with the
Securities and Exchange Commission or the securities commission of any state in reliance upon an exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered, sold, pledged or
hypothecated absent registration of such transaction pursuant to the Securities Act or pursuant to an available exemption therefrom.” 

Section 6. Miscellaneous. 

(a) Title to Warrant. Before the Termination Date and subject to compliance with applicable laws and
Section 4 of this Warrant, this Warrant and all rights hereunder are transferable, in whole or in part, at the office or agency of the Company by the Holder in person or by duly authorized attorney, upon surrender of this Warrant
together with the Assignment Form annexed hereto properly endorsed. 
 (b) No Rights as Shareholder Until
Exercise. This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder of the Company before the exercise of this Warrant. 

(c) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of
evidence reasonably satisfactory to it of 
  

 13 

 
the loss, theft, destruction or mutilation of this Warrant, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which shall not include the posting
of any bond), and upon surrender and cancellation of such Warrant, if mutilated, the Company will make and deliver a new Warrant of like tenor and dated as of such cancellation, in lieu of such Warrant. 

(d) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration
of any right required or granted herein shall be a Saturday, Sunday or a legal holiday, then such action may be taken or such right may be exercised on the next succeeding day not a Saturday, Sunday or legal holiday. 

(e) Authorized Shares. The Company shall use its reasonable best efforts to obtain the Shareholder Approval at the
Company’s annual meeting of shareholders on or about September 16, 2010 (the “Shareholder Meeting”); provided, however, that no good faith adjournment or cancellation of the Shareholder Meeting shall
constitute a failure on the part of the Company to use its reasonable best efforts to obtain the Shareholder Approval; provided, further, that the foregoing requirement to use reasonable best efforts to obtain Shareholder Approval
shall terminate upon a Change of Control Transaction (as defined below) if the Company or the successor in such Change of Control Transaction has a sufficient number of shares of Common Stock authorized and reserved for the exercise in full of this
Warrant. In the event the Company does not obtain the Shareholder Approval at the Shareholder Meeting or any adjournment thereof, the Company further agrees to use its reasonable best efforts to obtain the Shareholder Approval at subsequent meetings
of shareholders to be called at least every one hundred thirty-five (135) days after the adjournment or completion of any meeting of shareholders until the Shareholder Approval is obtained. For the avoidance of doubt, (i) promptly upon
receipt of the Shareholder Approval, the Company shall amend its articles of incorporation to increase its authorized share capital and a portion of the additional authorized shares of Common Stock shall be reserved for issuance upon exercise of
this Warrant to the extent necessary so that 100% of the shares issuable upon exercise of this Warrant are reserved for issuance, or, (ii) in the event that any authorized shares of the Company otherwise become available for reservation
following the Initial Issuance Date, the Company shall reserve all such shares for issuance upon exercise of this Warrant until 100% of the shares issuable upon exercise of this Warrant are reserved for issuance; provided, however,
that (i) the foregoing obligation shall not require the Company to eliminate or use any reserve for its equity incentive plans regardless of whether the shares of Common Stock issuable pursuant to such equity incentive plans have been granted
or otherwise allocated, (ii) if shares of Common Stock must be reserved pursuant to the terms of any outstanding warrants to purchase Common Stock issued on or about May 27, 2010, such shares shall be reserved in priority to the
requirement to reserve shares for issuance upon exercise of this Warrant and (iii) any such shares that become available shall be reserved pro rata among this Warrant and all other warrants originally issued on or about the date hereof (or in
exchange or substitution therefor) or that otherwise have a provision substantially similar to this provision. The Company shall provide the Holder with written notice of any shares of Common Stock that become reserved for issuance upon exercise of
this Warrant after the Initial Issuance Date pursuant to the preceding sentence. Also for the avoidance of doubt, the Company shall not be required to reserve for issuance upon exercise of this Warrant more shares of Common Stock than the number of
shares then required for exercise in full of this Warrant. 
  

 14 

 After this Warrant has become exercisable, (a) the Company covenants
that during the period this Warrant is outstanding it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this
Warrant to the extent exercisable, (b) the Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the
necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant, and (c) the Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. 

Except and to the extent as waived or consented to by the Holder and subject to the receipt of the Shareholder Approval
and the effectiveness of the Amendment or notification by the Company pursuant to Section 6(e) and the reservation of the shares contemplated thereby, the Company shall not by any action, including, without limitation, amending its
certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms
of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against
impairment. Without limiting the generality of the foregoing and subject to the receipt of the Shareholder Approval and the effectiveness of the Amendment or notification by the Company pursuant to Section 6(e) and the reservation of the
shares contemplated thereby, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately before such increase in par value, (ii) take all such action as may be
necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant, and (iii) use commercially reasonable efforts to obtain all such authorizations,
exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant. 

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is
exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof. 

“Change of Control Transaction” means the occurrence after the Initial Issuance Date of any of
(i) an acquisition by an individual, legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the Company, by
contract or 
  

 15 

 
otherwise) of in excess of 33% of the voting securities of the Company, (ii) the Company merges into or consolidates with any other person, or any person merges into or consolidates with the
Company and, after giving effect to such transaction, the shareholders of the Company immediately before such transaction own less than 66% of the aggregate voting power of the Company or the successor entity of such transaction, (iii) the
Company sells or transfers all or substantially all of its assets to another person and the shareholders of the Corporation immediately before such transaction own less than 66% of the aggregate voting power of the acquiring entity immediately after
the transaction, or (iv) a replacement at one time or within a one-year period of more than one-half of the members of the Board which is not approved by a majority of those individuals who are members of the Board on the date hereof (or by
those individuals who are serving as members of the Board on any date whose nomination to the Board was approved by a majority of the members of the Board who are members on the date hereof), or (v) the execution by the Company of an agreement
to which the Company is a party or by which it is bound, providing for any of the events set forth in clauses (i) through (iv) above. 

(f) Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this
Warrant shall be determined in accordance with the provisions of the Agreement. 
 (g) Restrictions. The
Holder acknowledges that Warrant Shares acquired upon the exercise of this Warrant, if not issued to the Holder pursuant to an effective registration statement and the Holder’s exercise is not via a “cashless exercise” effected more
than six months after the issuance of this Warrant, will have the restrictions upon resale imposed by state and federal securities laws, as further described in Section 4. 

(h) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the
part of Holder shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant or the Agreement, if the Company willfully and knowingly fails to comply
with any provision of this Warrant which results in any material damages to the Holder, other than a failure to obtain the Shareholder Approval, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 (i) Notices. Any notice, request or other document required or permitted to be given or delivered to
the Holder by the Company, or vice versa, shall be delivered in accordance with the notice provisions of the Agreement. 

(j) Limitation of Liability. No provision of this Warrant, in the absence of any affirmative action by Holder to
exercise this Warrant or purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a shareholder of the Company, whether such
liability is asserted by the Company or by creditors of the Company. 
  

 16 

 (k) Remedies. After the Company obtains the Shareholder Approval and
the Amendment becomes effective or to the extent of the notification by the Company pursuant to Section 6(e) and the reservation of the shares contemplated thereby, the Holder, in addition to being entitled to exercise all rights granted
by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. Subject to the receipt of the Shareholder Approval and the effectiveness of the Amendment or notification by the Company pursuant to
Section 6(e) and the reservation of the shares contemplated thereby, the Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and
hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. 

(l) Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations
evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of all holders from time to time
of this Warrant and shall be enforceable by any such holder or holder of Warrant Shares. 
 (m) Amendment.
This Warrant may be modified or amended or the provisions of this Warrant waived with the written consent of the Company and the Holder. 

(n) Severability. Subject to the receipt of the Shareholder Approval and the effectiveness of the Amendment or
notification by the Company pursuant to Section 6(e) and the reservation of the shares contemplated thereby, wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant. 
 (o) Headings. The headings used in this Warrant are for
the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant. 
 [Remainder of this Page
Intentionally Left Blank.] 
  

 17 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized. 
 Dated: July 27, 2010 

 

	
	CELL THERAPEUTICS, INC.
	
	  

	 Louis A. Bianco
 Executive Vice
President,
 Finance and Administration

[Signature page to Warrant] 
  

 NOTICE OF EXERCISE 

TO: Cell Therapeutics, Inc. 

(1) The undersigned hereby elects to purchase
                 Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the
exercise price in full, together with all applicable transfer taxes, if any. 
 (2) Payment shall take the form of (check
applicable box): 
 [    ] in lawful money of the United States; or 

[    ] if so allowed, the cancellation of such number of Warrant Shares as is necessary, in accordance with the
formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c). 

(3) Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as
is specified below: 
  

					
	  
	 		 	

 The Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of a certificate
to: 
  

					
	  
	 		 	
	  
	 		 	
	  
	 		 	

 ASSIGNMENT FORM 

(To assign the foregoing warrant, execute 

this form and supply required information. 

Do not use this form to exercise the warrant.) 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to 

                         
                                         
                                         
          whose address is 
  

			
	  
	 	.                             
                                   
		
	  
  
	 	

                         
                                         
                                         
             Dated:                     ,
             
  

							
	Holder’s Signature:	  		  	  
	  	
				
	Holder’s Address:	  		  	  
	  	
				
		  		  	  
	  	

  

					
	Signature Guaranteed:	 	  
	 	

 NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant,
without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to
assign the foregoing Warrant.Form of Securities Purchase Agreement, dated July 25, 2010

 Exhibit 10.3 

SECURITIES PURCHASE AGREEMENT 

This Securities Purchase Agreement (this “Agreement”) is dated as of July 25, 2010, among Cell Therapeutics, Inc.,
a Washington corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser” and collectively the “Purchasers”).

 WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration
requirements of Section 5 of the Securities Act (as defined below) contained in Section 4(2) thereof and/or Regulation D thereunder, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly,
desires to purchase from the Company, (i) shares of Preferred Stock (as defined below), and (ii) Warrants (as defined below) pursuant to an exemption from the registration requirements of Section 5 of the Securities Act (as defined
below) contained in Section 4(2) thereof and/or Regulation D thereunder, in each case as more fully described in this Agreement. 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the
receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows: 
 ARTICLE I. 

DEFINITIONS 
 1.1
Definitions. In addition to the terms defined elsewhere in this Agreement, (a) capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Certificate of Designation (as defined herein) and
(b) the following terms have the meanings set forth in this Section 1.1: 

“Action” shall have the meaning ascribed to such term in Section 3.1(j) of this Agreement.

 “Affiliate” means any Person that, directly or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with a Person (as such terms are used in and construed under Rule 405 of the Securities Act). With respect to a Purchaser, any investment fund or managed account that is managed on a
discretionary basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of such Purchaser. 

“Articles of Incorporation” means the Company’s Amended and Restated Articles of Incorporation, as
amended from time to time. 
 “Business Day” means any day except Saturday, Sunday, any day
which shall be a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close. 

 

 1 

 “Certificate of Designation” means the Articles of
Amendment to the Articles of Incorporation filed by the Company with the Secretary of State of the State of Washington on or prior to the Closing Date, in the form of Exhibit A attached hereto. 

“Closing” means the closing of the purchase and sale of the Securities on the Closing Date pursuant to
Section 2.1 of this Agreement. 
 “Closing Date” means July 27, 2010.

 “Commission” means the U.S. Securities and Exchange Commission. 

“Common Stock” means the common stock of the Company, no par value per share, and any other class of
securities into which such securities may hereafter be reclassified or changed into. 
 “Common Stock
Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof, pursuant to the terms of such securities, to acquire at any time Common Stock, including, without limitation, any debt, preferred
stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock. 

“Company Counsel” means O’Melveny & Myers LLP. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder. 
 “Form S-3” shall have the meaning ascribed to such term in
Section 3.1(f) of this Agreement. 
 “GAAP” shall have the meaning ascribed to such
term in Section 3.1(h) of this Agreement. 
 “Indebtedness” means (a) any
liabilities for borrowed money or amounts owed in excess of $250,000 (other than trade accounts payable incurred in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness
of others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary
course of business, and (c) the present value of any lease payments in excess of $250,000 due under leases required to be capitalized in accordance with GAAP. 

“Intellectual Property Rights” shall have the meaning ascribed to such term in Section 3.1(o)
of this Agreement. 
 “Investment Company Act” means the Investment Company Act of 1940, as
amended. 
  

 2 

 “Legend Removal Date” shall have the meaning ascribed to
such term in Section 4.1(c). 
 “Liens” means a lien, charge, security interest,
encumbrance, right of first refusal, preemptive right or other restriction (other than, in the case of the Securities, restrictions provided in the Transaction Documents or as otherwise agreed or imposed by a Purchaser). 

“Losses” shall have the meaning assigned to such term in Section 4.7. 

“Material Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b) of
this Agreement. 
 “Material Permits” shall have the meaning ascribed to such term in
Section 3.1(m) of this Agreement. 
 “Per Share Purchase Price” equals $1,000,
subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement and prior to Closing. 

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

“Preferred Stock” means 4,060 shares of the Company’s Series 6 Preferred Stock issued hereunder and
having the rights, preferences and privileges set forth in the Certificate of Designation. 

“Proceeding” means any action, claim, suit, investigation or proceeding whether commenced or threatened.

 “Prospectus” means the final prospectus filed for the Registration Statement, including the
documents incorporated by reference in the Registration Statement, including the documents incorporated by reference in such final prospectus. 

“Prospectus Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the
Securities Act that is filed with the Commission pursuant to Section 4.14 of this Agreement, including the documents incorporated by reference therein. 

“Purchaser Party” shall have the meaning ascribed to such term in Section 4.7 of this
Agreement. 
 “Registration Statement” means the automatically effective registration statement
on Form S-3 (Commission File No. 333-161442) filed by the Company with the Commission pursuant to the Securities Act for the registration of the Preferred Stock and the Underlying Shares, as such Registration Statement may be amended and
supplemented from time to time (including pursuant to Rule 462(b) of the Securities Act), 
  

 3 

 
including all documents filed as part thereof or incorporated by reference therein, and including all information deemed to be a part thereof at the time of effectiveness pursuant to Rule 430B of
the Securities Act. 
 “Required Approvals” shall have the meaning ascribed to such term in
Section 3.1(e) of this Agreement. 
 “Rule 144” means Rule 144 promulgated by the
Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 

“SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h) of this
Agreement. 
 “Securities” means the Preferred Stock, the Underlying Shares, the Warrants and
the Warrant Shares. 
 “Securities Act” means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder. 
 “Shareholder Approval” means the approval of
the Company’s shareholders as required by applicable law, after the Initial Issuance Date (as defined in the Warrants), of an amendment to the Articles of Incorporation to increase the authorized number of shares of Common Stock available for
issuance thereunder by 400,000,000 shares. 
 “Short Sales” means all “short sales” as
defined in Rule 200 of Regulation SHO of the Exchange Act (but shall be deemed to not include the location and/or reservation of borrowable shares of Common Stock).

“Stated Value” means $1,000 per share of Preferred Stock, subject to increase as set forth in
Section 3(a) of the Certificate of Designation. 
 “Subscription Amount” means, as to each
Purchaser, the aggregate amount to be paid for the Preferred Stock purchased hereunder as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,” in United States
dollars and in immediately available funds. 
 “Subsidiary” shall have the meaning ascribed to
such term in Section 3.1(a) of this Agreement. 
 “Trading Day” means a day on which
the Common Stock is traded on a Trading Market. 
 “Trading Market” means the following markets
or exchanges on which (and if) the Common Stock is listed or quoted for trading on the date in question: the NYSE Amex; The NASDAQ Capital Market; The NASDAQ Global Market; The NASDAQ Global Select Market; the New York Stock Exchange; or the Borsa
Italiana S.p.A. (MTA International). 
  

 4 

 “Transaction Documents” means this Agreement, the
Certificate of Designation, the Warrants and any other documents or agreements executed and delivered to the Purchasers in connection with the transactions contemplated hereunder. 

“Underlying Shares” means the shares of Common Stock issued and issuable upon conversion of the Preferred
Stock in accordance with the terms of the Certificate of Designation. 
 “Washington Counsel”
means K&L Gates LLP. 
 “Warrants” means the Common Stock purchase warrants delivered to the
Purchasers at the Closing on the Closing Date in accordance with Section 2.2(a) of this Agreement, which warrants shall be exercisable as set forth therein, and have a term of exercise beginning six months and one day after the Initial
Issuance Date and expire four years, six months and one day after the Initial Issuance Date, in the form of Exhibit D attached hereto; provided, however, that the exercisability of the Warrants shall be subject to, and
conditioned upon, receipt of the Shareholder Approval. 
 “Warrant Shares” means the shares of
Common Stock to be issuable upon exercise of the Warrants, subject to, and conditioned upon, receipt of the Shareholder Approval. 

“WS” means Weinstein Smith LLP with offices located at 420 Lexington Avenue, Suite 2620, New York, New
York 10170-0002. 
 ARTICLE II. 

PURCHASE AND SALE 

2.1 Closing At the Closing, upon the terms set forth herein, the Company shall sell, and the Purchasers shall purchase, in the
aggregate, severally and not jointly, $4,060,000 of Preferred Stock, with each Purchaser purchasing Preferred Stock with an aggregate Stated Value equal to such Purchaser’s Subscription Amount, and Warrants as determined pursuant to
Section 2.2(a) of this Agreement at the Per Share Purchase Price. The aggregate number of shares of Preferred Stock sold hereunder shall be 4,060. The Preferred Stock and the Warrants are being issued and sold pursuant to an exemption
from Section 5 of the Securities Act contained in Section 4(2) thereof and/or Regulation D thereunder. Each Purchaser shall deliver to the Company via wire transfer or certified check immediately available funds equal to its Subscription
Amount and the Company shall deliver to each Purchaser its respective shares of Preferred Stock and Warrants as determined pursuant to Section 2.2(a) of this Agreement and the other items set forth in Section 2.2 of this
Agreement deliverable at the Closing on the Closing Date. The Closing shall occur at 7:00 a.m., Los Angeles time, at the offices of O’Melveny & Myers, LLP, 1999 Avenue of the Stars, Suite 700, Los Angeles, California 90067 or such
other time and location as the parties shall mutually agree, immediately after the closing of the transactions contemplated by the Warrant Exchange Agreement. 
  

 5 

 2.2 Deliveries; Closing Conditions. 

(a) At the Closing, the Company shall deliver or cause to be delivered to each Purchaser the following: 

(i) a legal opinion of Company Counsel, substantially in the form of Exhibit B attached hereto; 

(ii) a legal opinion of Washington Counsel, substantially in the form of Exhibit C attached hereto;

 (iii) a certificate evidencing a number of shares of Preferred Stock equal to such Purchaser’s
Subscription Amount divided by the Stated Value, registered in the name of such Purchaser; and 
 (iv) a Warrant
registered in the name of such Purchaser to purchase up to 1,428.5714 shares of Common Stock for each share of Preferred Stock purchased by such Purchaser, with an exercise price equal to $0.42 per share, subject to adjustment therein, in the form
of Exhibit D attached hereto. 
 (b) At the Closing, each Purchaser shall deliver or cause to be delivered
to the Company such Purchaser’s Subscription Amount by wire transfer to the account as specified in writing by the Company. 

(c) The respective obligations of the Company, on the one hand, and the Purchasers, on the other hand, hereunder in
connection with the Closing are subject to the following conditions being met: 
 (i) the accuracy in all
material respects on the Closing Date of the representations and warranties contained herein (unless made as of a specified date therein) of the Company (with respect to the obligations of the Purchasers) and the Purchasers (with respect to the
obligations of the Company); 
 (ii) all obligations, covenants and agreements of the Company (with respect to
the obligations of the Purchasers) and the Purchasers (with respect to the obligations of the Company) required to be performed at or prior to the Closing Date shall have been performed in all material respects; 

(iii) the delivery by the Company (with respect to the obligations of the Purchasers) and the Purchasers (with respect to
the obligations of the Company) of the items set forth in Section 2.2(a) and (b) of this Agreement; 

(iv) there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and 

(v) from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended on the
Company’s principal U.S. Trading Market (and the Underlying Shares shall be listed for trading thereon) and, at any 

 

 6 

 
time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on
securities whose trades are reported by such service, on any U.S. Trading Market. 
 ARTICLE III. 

REPRESENTATIONS AND WARRANTIES 

3.1 Representations and Warranties of the Company. Except as set forth in the SEC Reports, which shall qualify any representation
or warranty otherwise made herein to the extent of such disclosure, the Company hereby makes the following representations and warranties set forth below to each Purchaser as of the date hereof and as of the Closing Date: 

(a) Subsidiaries. All of the direct and indirect subsidiaries (each, a “Subsidiary”) of the
Company are set forth on the Company’s most recently filed Annual Report on Form 10-K. The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all the
issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. 

(b) Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or
otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its
business as currently conducted. Neither the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the
Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction
Document, (ii) a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s
ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification except where the revocation, limitation or curtailment could not have or reasonably be expected to result in a Material Adverse Effect.

 (c) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter
into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents by the

  

 7 

 
Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is
required by the Company, its board of directors or its shareholders in connection therewith other than in connection with the Required Approvals and the Shareholder Approval. Each Transaction Document has been (or upon delivery will have been) duly
executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies. 
 (d) No Conflicts. The execution, delivery and
performance of the Transaction Documents by the Company, the issuance and sale of the Securities and the consummation by the Company of the other transactions contemplated hereby and thereby do not and will not, subject to receipt of the Shareholder
Approval, (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a
default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination,
amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company
or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company
or a Subsidiary is bound or affected, except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect. 

(e) Filings, Consents and Approvals. Other than the Shareholder Approval and related matters, the Company is not
required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person or other entity of any kind,
including, without limitation, any Trading Market or Commissione Nazionale per le Societa e la Borsa (“CONSOB”) in connection with the execution, delivery and performance by the Company of the Transaction Documents, except
for any filings required to be made under applicable federal and state securities laws and the listing applications with respect to the listing of the Underlying Shares required pursuant to Section 4.9 (collectively, the
“Required Approvals”), and except where the failure to obtain any such consent, waiver, authorization or order, give any such notice, or make any such filing or registration could not have or reasonably be expected to result in a
Material Adverse Effect. 
  

 8 

 (f) Issuance of the Securities. The Preferred Stock and the Warrants
are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Underlying Shares are
duly authorized and, when issued in accordance with the terms of the Preferred Stock, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. Subject to the receipt of the Shareholder Approval and
the effectiveness of the Amendment (as defined in the Warrants) or notification by the Company pursuant to Section 6(e) of the Warrants and the reservation of the shares contemplated thereby, the Warrant Shares will be duly authorized and, when
issued in accordance with the terms of the Warrants following satisfaction of the foregoing, the Warrant Shares will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company (i) as of the
Closing, will have reserved from its duly authorized capital stock the shares of Common Stock issuable upon conversion of the Preferred Stock, and (ii) following receipt of the Shareholder Approval or upon other availability (as provided in the
Warrant) for reservation of a sufficient number of authorized shares of the Company after the date hereof, will reserve from its duly authorized capital stock the shares of Common Stock issuable upon exercise of the Warrants. The Preferred Stock and
the Underlying Shares are being issued pursuant to an exemption from Section 5 of the Securities Act contained in Section 4(2) thereof and/or Regulation D thereunder and, assuming the accuracy of the Purchasers’ representations and
warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby). The Company has prepared and filed with the
Commission in accordance with the provisions of the Securities Act the Registration Statement. The Registration Statement was automatically effective upon filing with the Commission on August 19, 2009. The Registration Statement is effective
pursuant to the Securities Act and available for the resale of the Preferred Stock and the Underlying Shares thereunder and the Company has not received any written notice that the Commission has issued or intends to issue a stop-order or other
order with respect to the Registration Statement or the Prospectus or that the Commission otherwise has (i) suspended or withdrawn the effectiveness of the Registration Statement, or (ii) issued any order preventing or suspending the use
of the Prospectus, in either case, either temporarily or permanently or intends or has threatened in writing to do so. Upon receipt of the Preferred Stock and the Underlying Shares upon conversion thereof, the Purchasers will have good and
marketable title to such securities and, following the filing of the Prospectus Supplement pursuant to Section 4.14, the Preferred Stock and the Underlying Shares will be immediately freely tradable on each Trading Market (subject to
Section 4.19 and assuming compliance by the Purchasers with Section 4.14 with respect the Selling Purchaser Information). At the time the Registration Statement and any amendments thereto became effective, at the date of this
Agreement and at each deemed effective date thereof pursuant to Rule 430B(f)(2) of the Securities Act, the Registration Statement and any amendments thereto complied and will comply in all material respects with the requirements of the
Securities Act and did not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading; and the Prospectus and any
amendments or supplements thereto, at the time 
  

 9 

 
the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, complied and will comply in all material respects with the requirements of the Securities Act and did not
and will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The Company meets all of the
requirements for the use of a registration statement on Form S-3 (“Form S-3”) pursuant to the Securities Act for the resale of the Preferred Stock and the Underlying Shares, and the Commission has not notified the Company of
any objection to the use of the form of the Registration Statement pursuant to Rule 401(g)(1) of the Securities Act. The Registration Statement, as of its effective date, meets the requirements set forth in Rule 415(a)(1)(x) pursuant to the
Securities Act. The Company (i) has not distributed any offering material in connection with the offering and sale of any of the Securities, and (ii) until no Purchaser holds any of the Securities, shall not distribute any offering
material in connection with the offering and sale of any of the Securities to, or by, the Purchasers, in each case, other than the Registration Statement, the Prospectus, the Prospectus Supplement or any amendment or supplement thereto required
pursuant to applicable law or Section 4 and the Transaction Documents. The Company is a “well-known seasoned issuer” as defined in Rule 405 as promulgated under the Securities Act. 

(g) Capitalization. Except as disclosed in the SEC Reports, the Company has not issued any capital stock since its
most recently filed periodic report pursuant to the Exchange Act, other than pursuant to the Exchange Agreements entered into with certain holders of the Company’s outstanding 4% Convertible Senior Subordinated Notes on May 16, 2010 (the
“Exchange Agreements”), pursuant to the Securities Purchase Agreement entered into with certain purchasers on May 23, 2010 for the issuance and sale of shares of Series 5 Preferred Stock and warrants exercisable to
purchase shares of Common Stock, the exercise of employee stock options pursuant to the Company’s stock option plans, the issuance of shares of Common Stock to employees, directors and consultants pursuant to the Company’s equity incentive
plans, and pursuant to the conversion or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report pursuant to the Exchange Act. No Person has any right of first refusal, preemptive right, right
of participation or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Securities and for various outstanding series of convertible debt, options and
warrants described in the SEC Reports, and except as contemplated by the Exchange Agreement entered into with certain holders of outstanding warrants on the date hereof (the “Warrant Exchange Agreement”) and for the warrants issued
thereunder, and except for the Rodman Warrants (as defined below), there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may
become bound to issue additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers,
and other than pursuant to warrants (the “Rodman Warrants”) to be issued to 
  

 10 

 
Rodman & Renshaw, LLC (“Rodman”) in connection with the transactions contemplated by this Agreement, if any), and will not result in a right of any holder of Company
securities to adjust the exercise, conversion, exchange or reset price under any of such securities, other than pursuant to the Warrant Exchange Agreement. All of the outstanding shares of capital stock of the Company are validly issued, fully paid
and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Other than
the Shareholder Approval and related matters, no further approval or authorization of any shareholder, the Board of Directors of the Company or others is required for the issuance and sale of the Securities. Except as disclosed in the SEC Reports or
as contemplated by this Agreement or as otherwise agreed by a Purchaser, there are no shareholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the
knowledge of the Company, between or among any of the Company’s shareholders. 
 (h) SEC Reports;
Financial Statements. The Company has complied in all material respects with requirements to file all reports, schedules, forms, statements and other documents required to be filed by it pursuant to the Securities Act and the Exchange Act,
including, without limitation, pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials,
including the exhibits thereto and documents incorporated by reference therein, together with the Prospectus and the Prospectus Supplement, being collectively referred to herein as the “SEC Reports”) on a timely basis or has
received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the
Securities Act and the Exchange Act, as applicable, the rules and regulations of the Commission promulgated thereunder and other federal, state and local laws, rules and regulations applicable to it, and none of the SEC Reports, when filed,
contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
The financial statements of the Company included in the SEC Reports, together with the related notes and schedules thereto, comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission and
all other applicable rules and regulations with respect thereto as in effect at the time of filing. Such financial statements, together with the related notes and schedules, have been prepared in accordance with United States generally accepted
accounting principles (“GAAP”) applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not
contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. 
  

 11 

 (i) Material Changes; Undisclosed Events, Liabilities or
Developments. Except as disclosed in the SEC Reports and except for the deposit of $39.3 million in cash with the trustee for the Company’s 4% convertible senior subordinated notes for the repayment in full of the outstanding amount due on
such notes on July 1, 2010 and except for the VAT Disclosure (as defined below), since the date of the latest audited financial statements included within the SEC Reports, (i) there has been no event, occurrence or development that has had
or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of
business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not
altered its method of accounting, and (iv) the Company has not issued any equity securities to any officer, director or Affiliate except pursuant to existing Company equity incentive plans. Except for the issuance of the Securities contemplated
by this Agreement, the transactions contemplated by the Warrant Exchange Agreement or as set forth in the SEC Reports and the Prospectus, or as otherwise disclosed to the Purchasers, no event, liability or development has occurred or exists with
respect to the Company or its Subsidiaries or their respective business, properties, operations or financial condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made
that has not been publicly disclosed at least one Business Day prior to the date that this representation is made. 

(j) Litigation. Except as disclosed in the SEC Reports, except that on July 12, 2010, CONSOB (1) notified
the Company that CONSOB began its preliminary investigation for its decision on the administrative proceedings regarding the two claimed violations by the Company of the provisions of Section 114, paragraph 1 of the Italian Legislative Decree
no. 58/98 due to the asserted late disclosure of certain information reported, at CONSOB’s request, in the press release disseminated on December 19, 2008 and March 23, 2009 (as such claimed violations are further described in the
Company’s Form 10-Q for the fiscal quarter ended March 31, 2010) and (2) provided the Company with a preliminary investigation report in reply to the Company’s defenses to such allegations submitted on January 8, 2010 and
except that on (1) June 25, 2010, the Italian Tax Authority (or ITA) issued notices of assessment to CTI (Europe) based on the ITA’s audit of CTI (Europe)’s Value Added Tax (or VAT) returns for the years 2006 and 2007 based on
similar findings of the 2003 and 2005 assessments (which 2003 and 2005 assessments were further described in the Company’s Form 10-Q for the fiscal quarter ended March 31, 2010) and the assessments, including interest and penalties, for
the years 2006 and 2007 are €2.5 million (or approximately $3.1 million) and €.8 million (or approximately $1.1 million), respectively and (2) July 14, 2010, the ITA issued a notice of deposit payment to CTI (Europe)
based on the 2005 assessment, including interest and collection fees, for an amount of €0.9 million (or approximately $1.1 million) as of June 30, 2010 payable in the third quarter of 2010 (such disclosure regarding VAT shall be
referred to herein as the “VAT Disclosure”), there is no Proceeding pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any
court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) 
  

 12 

 
(collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities, or
(ii) could, if there were an unfavorable decision, reasonably be expected to result in a Material Adverse Effect. Except as disclosed in the SEC Reports and except for a shareholder derivative action, Souda v. John H. Bauer et. al. (Case No
2:10-cv-00905) filed on June 1, 2010 and related to the three prior shareholder derivative actions described in the Company’s Form 10-Q for the fiscal quarter ended March 31, 2010, neither the Company nor any Subsidiary, nor any
director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. Except as disclosed in the SEC Reports, there has not
been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or
other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary pursuant to the Exchange Act or the Securities Act. 

(k) Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect
to any of the employees of the Company which could reasonably be expected to result in a Material Adverse Effect. The Company and its Subsidiaries believe that their relationships with their employees are good. No executive officer, to the knowledge
of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any
restrictive covenant, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in
compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 (l)
Compliance. Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any
Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by
which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute,
rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except as disclosed herein and except in each case as
could not reasonably be expected to have a Material Adverse Effect. 
 (m) Regulatory Permits. Except as
disclosed in the SEC Reports, (i) the Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to

  

 13 

 
conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could not have or reasonably be expected to result in a Material Adverse
Effect (“Material Permits”), and (ii) neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit. 

(n) Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real
property owned by them that is material to the business of the Company and the Subsidiaries and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free
and clear of all Liens, except for Liens which do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the
payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and
enforceable leases with which the Company and the Subsidiaries are in compliance. 
 (o) Patents and
Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other similar
intellectual property rights currently employed by them in connection with the business currently operated by them that are necessary for use in the conduct of their respective businesses as described in the SEC Reports, except where the failure to
so have could not reasonably be expected to have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Neither the Company nor any Subsidiary has received any written notice that any of the Intellectual
Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person, except for such as could not reasonably be expected to have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual
Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights of others. 

(p) Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage. To the best knowledge
of the Company, such insurance contracts are accurate and complete. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost. 

(q) Transactions With Affiliates and Employees. None of the officers or directors of the Company and, to the
knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other
arrangement providing for the furnishing of services to or 
  

 14 

 
by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity
in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including restricted stock programs and stock option agreements under any stock option plan of the Company. 

(r) Sarbanes-Oxley. The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002, as
amended, which are applicable to it as of the date hereof. 
 (s) Certain Fees. Other than to Rodman, no
brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by
the Transaction Documents, other than as specifically set forth in the Prospectus Supplement. The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type
contemplated in this Section 3.1(s) that may be due in connection with the transactions contemplated by the Transaction Documents. 

(t) Investment Company. The Company is not, and immediately after receipt of payment for the Securities will not
be, an “investment company” within the meaning of the Investment Company Act. 
 (u) Registration
Rights. No Person has any right to cause the Company to effect the registration pursuant to the Securities Act of any securities of the Company, which rights will interfere with the transactions contemplated hereunder. 

(v) Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of
the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock pursuant to the Exchange Act nor has the Company received any notification
that the Commission is currently contemplating terminating such registration. Except as disclosed in the SEC Reports, the Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock
is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. Except as disclosed in the SEC Reports, the Company is, and has no reason to believe that it
will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. 

(w) Application of Takeover Protections. The Company and its Board of Directors have taken all necessary action, if
any, in order to render inapplicable any control share acquisition, business combination, poison pill (other than with respect to that certain Shareholder Rights Agreement dated as of December 28, 2009, between the

  

 15 

 
Company and Computershare Trust Company, N.A., a federally chartered trust company as Rights Agent) (including any distribution under a rights agreement), or other similar anti-takeover provision
pursuant to the Articles of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company fulfilling their obligations or
exercising their rights pursuant to the Transaction Documents, including without limitation, as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities. 

(x) Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the
Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that it believes constitutes or might constitute material,
non-public information which is not otherwise disclosed in the Prospectus Supplement. The Company understands and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company. All
disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company, its business and the transactions contemplated hereby is true and correct and does not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties
with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 of this Agreement. 

(y) No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth
in Section 3.2 of this Agreement, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any
security, under circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company in a manner that would require shareholder approval pursuant to the rules of any Trading Market on which any of the
securities of the Company are listed or designated. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of any Trading Market. 

(z) Indebtedness. The SEC Reports set forth as of the dates thereof all outstanding secured and unsecured
Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness disclosed to the Purchasers except for any such default
that could not have or reasonably be expected to result in a Material Adverse Effect. 
 (aa) Tax Status.
Except for matters that could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect and except as disclosed in the SEC Reports and except for the VAT Disclosure, the Company and each Subsidiary
has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against the
Company or any Subsidiary. 
  

 16 

 (bb) Foreign Corrupt Practices. Neither the Company, nor to the
knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic
political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution
made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 (cc) Accountants. Stonefield Josephson, Inc. (i) to the knowledge of the Company, is an
independent public accountant as required by the Exchange Act and is an independent registered public accounting firm within the meaning of the Sarbanes-Oxley Act of 2002, as amended, as required by the rules of the Public Company Accounting
Oversight Board, and (ii) expressed its opinion with respect to the audited financial statements and related schedules included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009. 

(dd) Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that
each of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company further acknowledges that no Purchaser is acting as a
financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or any of their respective representatives or agents
in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The Company further represents to each Purchaser that the Company’s decision to
enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives. 

(ee) Acknowledgement Regarding Purchasers’ Trading Activity. Anything in this Agreement or elsewhere herein to
the contrary notwithstanding (except for Sections 3.2(f), 3.2(g) and 4.19 of this Agreement which shall control), it is understood and acknowledged by the Company (i) that none of the Purchasers have been asked to
agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities for any specified term,
(ii) that past or future open market or other transactions by any Purchaser, including Short Sales, and specifically including, without limitation, Short Sales or “derivative” transactions, before or after the closing of this or
future transactions, may negatively impact the market price of the Company’s publicly-traded securities, (iii) that any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a party, directly
or indirectly, 
  

 17 

 
presently may have a “short” position in the Common Stock, and (iv) that each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length
counter-party in any “derivative” transaction. The Company further understands and acknowledges that (A) one or more Purchasers may engage in hedging activities at various times during the period that the Securities are outstanding,
and (B) such hedging activities (if any) could reduce the value of the existing shareholders’ equity interests in the Company at and after the time that the hedging activities are being conducted. The Company acknowledges that such
aforementioned hedging activities do not constitute a breach of any of the Transaction Documents. 
 (ff)
Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of
any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any
Person any compensation for soliciting another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement agent in connection with the
placement of the Securities. 
 (gg) Shell Company Status. The Company is not, and has never been, an
issuer identified in Rule 144(i)(1) of the Securities Act. 
 (hh) Regulation D Compliance. Neither the
Company, nor any person acting on its behalf and at its direction, (i) has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with the offer and sale of
the Preferred Stock and Warrants and issuance of the Warrant Shares, (ii) has made, directly or indirectly, any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause the offer and sale
of the Preferred Stock and Warrants and issuance of the Warrant Shares to be integrated with prior offerings by the Company for purposes of the Securities Act in a manner that would require registration of such offer and sale under the Securities
Act, or (iii) will take any action or steps referred to in clause (ii) above that would cause the offer and sale of the Preferred Stock and Warrants and the issuance of the Warrants Shares to be integrated with future offerings by
the Company in a manner that requires registration of such offer and sale under the Securities Act. 
 (ii)
Rule 144 Holding Period. In the absence of an order or directive from a governmental authority to the contrary, the Company will not take a position that the holding period for the Warrants or the Warrant Shares did not commence on the
Closing Date. 
  

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 3.2 Representations and Warranties of the Purchasers. Each Purchaser, for itself and
for no other Purchaser, hereby represents and warrants as of the execution and delivery of this Agreement on the date first above written in this Agreement to the Company as follows: 

(a) Organization; Authority. Such Purchaser is an entity duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its
obligations hereunder and thereunder. The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or similar action on the part of such Purchaser.
Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser,
enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited
by applicable law. 
 (b) No Intent to Take Over. Such Purchaser has no present actual intent to seek to
effect, or to assist others in effecting, a hostile acquisition of the Company. 
 (c) Purchaser Status.
At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on which it exercises any Warrants for cash it will be an institutional “accredited investor” as defined under Regulation D
under the Securities Act and/or meets the definition of “qualified institutional buyer” as defined in Rule 144A(a)(1) under the Securities Act, and is not an entity formed for the sole purpose of acquiring the Securities. Such
Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act. 
 (d)
Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the
prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser has had access to such information as it deemed necessary in order to conduct any due diligence it has determined it wants to do
in connection with the purchase and sale of the Securities and its decision to participate in such purchase and sale. Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a
complete loss of such investment. Such Purchaser understands that nothing in the Agreement or any other materials presented to the Purchaser in connection with the purchase and sale of the Securities constitutes legal, tax or investment advice. Such
Purchaser acknowledges that it must rely on legal, tax and investment advisors of its own choosing in connection with its purchase of the Securities. 

(e) Purchase for Own Account; No General Solicitation or General Advertising. Such Purchaser is acquiring the
Securities for its own account, in the ordinary course of its business and not with a view toward, or for resale in connection with, the public sale or distribution thereof in a manner that would violate the Securities Act. Such Purchaser is not
acquiring the Securities as a result of any “general 
  

 19 

 
solicitation” or “general advertising,” as such terms are used in Regulation D under the Securities Act, including advertisements, articles, notices or other communications
published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising. 

(f) Rule 144; Restricted Nature of Securities. Such Purchaser has read and understands Rule 144 and further
understands that until such time as the same are no longer required under applicable requirements of the Securities Act or applicable state securities laws, the Securities shall be restricted securities within the meaning of the federal securities
laws and the Securities and any certificates representing the Securities, and all certificates or other instruments issued in exchange therefor or in substitution thereof, may bear a customary restrictive legend in the form set forth below, and that
the Company will make a notation on its records and give instructions to its transfer agent in order to implement the restrictions on transfer set forth and described therein: 

“The Securities represented hereby have not been registered with the Securities and Exchange Commission or the securities
commission of any state in reliance upon an exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered, sold, pledged or hypothecated absent registration of such transaction
pursuant to the Securities Act or pursuant to an available exemption therefrom.” 
 Subject to
Section 4.19, the Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security interest in some or all of the Securities to a
financial institution that is an “accredited investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement and, if required under the terms of such arrangement, such Purchaser
may transfer pledged or secured Securities to the pledgees or secured parties. Subject to Section 4.19, such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee,
secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or
secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities. 

(g) Short Sales and Confidentiality Prior to the Date Hereof. Other than consummating the transactions contemplated
hereunder, such Purchaser has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, executed any purchases or sales, including Short Sales, of the securities of the Company during
the period commencing as of the time that such Purchaser first learned of the specific purchase and sale transaction being effected pursuant to this Agreement and ending immediately prior to the execution and delivery hereof. Notwithstanding the
foregoing, in the case of a Purchaser that is a multi-managed 
  

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investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to
purchase the Securities covered by this Agreement. Other than to other Persons party to this Agreement and to its counsel, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with the transaction expressly
contemplated by this Agreement (including the existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with
respect to the identification of the availability of, or securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future. 

(h) No Government Review. Such Purchaser understands that no U.S. federal or state agency or any other government
or governmental agency has passed upon or made any recommendation or endorsement of the Securities purchased hereunder. 

(i) Beneficial Ownership. Immediately following such Purchaser’s purchase of Securities hereunder, such
Purchaser, together with its Affiliates, will not beneficially own more than 4.99% of the Common Stock. For purposes hereof beneficial ownership and all determinations and calculations (including, without limitation, with respect to calculations of
percentage ownership) shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. 

ARTICLE IV. 

OTHER AGREEMENTS OF THE PARTIES 

4.1 Removal of Legends. Certificates evidencing the Underlying Shares and Warrant Shares shall not contain any legend (including
the legend set forth in Section 3.2(f) hereof): (i) while a registration statement (including the Registration Statement) covering the resale of such security is effective under the Securities Act, (ii) following any sale of such
Underlying Shares or Warrant Shares pursuant to Rule 144, (iii) if such Underlying Shares or Warrant Shares are eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information
required under Rule 144 as to such Underlying Shares or Warrant Shares and without volume or manner-of-sale restrictions or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial
interpretations and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the transfer agent for its Common Stock (the “Transfer Agent”) promptly after the filing of
the Prospectus Supplement if required by the Transfer Agent to effect the Company’s compliance with the preceding sentence. The Company agrees that following the filing of the Prospectus Supplement or at such time as such legend is no longer
required under this Section 4.1, it will, no later than three Trading Days following the delivery by a Purchaser to the Company or the Transfer Agent of a certificate representing Underlying Shares or Warrant Shares, as applicable,
issued with a restrictive legend (such third Trading Day, the “Legend Removal Date”), deliver or cause to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends. The
Company may 
  

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not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4. Certificates for Underlying
Shares and Warrant Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed by such
Purchaser. 
 4.2 Furnishing of Information. Until the earlier of the time that (i) no Purchaser owns Preferred
Stock or Underlying Shares or (ii) the Warrants have expired, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the
date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act, and the Company shall not terminate its status as an issuer required to file reports pursuant to the Exchange Act
even if the Exchange Act or the rules and regulations thereunder would no longer require or otherwise permit such termination other than in connection with a Fundamental Transaction (as defined in the Warrants) in which the Company is not the
surviving entity or in which all of the capital stock of the Company is acquired by an unaffiliated and unrelated Person. As long as any Purchaser owns Securities, if the Company is not required to file reports pursuant to the Exchange Act other
than in connection with a Fundamental Transaction in which the Company is not the surviving entity or in which all of the capital stock of the Company is acquired by an unaffiliated and unrelated Person, it will prepare and furnish to the Purchasers
and make publicly available in accordance with Rule 144(c)(1) of the Securities Act such information as is required for the Purchasers to sell the Securities under Rule 144 of the Securities Act. The Company further covenants that it will take such
further action as any holder of Securities may reasonably request, to the extent required from time to time to enable such Person to sell such Securities without registration pursuant to the Securities Act within the requirements of the exemption
provided by Rule 144 of the Securities Act. The Company represents and warrants that it is in material compliance with all of the requirements (including, without limitation, the reporting, submission and posting requirements) of Rule 144(c)(1) of
the Securities Act and Rule 405 of Regulation S-T, each as in effect and amended as of the date hereof. 
 4.3
Integration. After this transaction, the Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the
offer or sale of the Securities such that the rules of the Trading Market would require shareholder approval of this transaction prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such
subsequent transaction. 
 4.4 Securities Laws Disclosure; Publicity. The Company shall (a) issue a press release
disclosing the material terms of the transactions contemplated hereby simultaneously with the execution and delivery hereof (the “Press Release”), and (b) by 8:30 a.m. (New York City time) on the fourth (4th) Trading Day
following the date hereof, file a Current Report on Form 8-K disclosing the material terms of the transactions contemplated hereby and including the Transaction Documents as exhibits thereto. From and after the issuance of the Press Release, no
Purchaser shall be in possession of any material, non-public information received from the Company, any of its Subsidiaries or any of their respective officers, directors, employees or agents, that is not disclosed in the Press Release. The Company
and each Purchaser shall consult 
  

 22 

 
with each other in issuing any other press releases with respect to the transactions contemplated hereby, and, except as may be required by law, neither the Company nor any Purchaser shall issue
any such press release or otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the
Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or
communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or any Trading Market, without the prior
written consent of such Purchaser, except (i) as required by federal securities law in connection with any registration statement contemplated by Section 4.14 or filing of final Transaction Documents (including signature pages
thereto) with the Commission and (ii) to the extent such disclosure is required by law or any Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this subclause
(ii). 
 4.5 Non-Public Information. Except with respect to the material terms and conditions of the transactions
contemplated by the Transaction Documents, the Company covenants and agrees that neither it nor any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that the Company believes constitutes
material non-public information, unless prior thereto such Purchaser shall have executed a written agreement regarding the confidentiality and use of such information. Notwithstanding the foregoing (but subject to the terms of any such written
agreement), to the extent the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent, the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality with
respect to, or a duty not to trade on the basis of, such material, non-public information. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 4.6 Use of Proceeds. The Company will use the proceeds from the offering for general corporate purposes. 

4.7 Indemnification of Purchasers. Subject to the provisions of this Section 4.7, the Company will indemnify and hold
each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title),
each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons
with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling Persons (each, a “Purchaser Party”) harmless from any and all losses, liabilities,
obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation (collectively, “Losses”) that any such
Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents, (b) any action
instituted against a Purchaser, or any of them or their respective Affiliates, by any shareholder of the Company who 

 

 23 

 
is not an Affiliate of such Purchaser or any governmental or regulatory agency, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon
a material breach of such Purchaser’s representations, warranties or covenants of the Transaction Documents or any agreements or understandings such Purchaser may have with any such shareholder or any material violations by the Purchaser of
state or federal securities laws or any conduct by such Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance) or (c) any untrue or alleged untrue statement of a material fact contained in the Registration
Statement, the Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus that covers resales of the Preferred Stock and Underlying Shares, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements therein (in light of the circumstances under which they were made) not misleading (except to the extent, but only to the extent, that such untrue
statements or alleged untrue statements or omissions or alleged omissions are based solely upon information regarding a Purchaser furnished in writing to the Company by a Purchaser expressly for use therein). If any action shall be brought against
any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own
choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense
of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ
counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company
shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (i) for any settlement by a Purchaser Party effected without the
Company’s prior written consent, which shall not be unreasonably withheld or delayed or (ii) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the
representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. 

4.8 Reservation and Registration of Common Stock. As of the Closing, the Company will have reserved and the Company shall continue
to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue all of the Underlying Shares. 

4.9 Listing of Common Stock. The Company hereby agrees to use commercially reasonable efforts to maintain the listing of the
Common Stock on a Trading Market, and the Company shall list all of the Underlying Shares on each of The NASDAQ Capital Market and the Borsa Italiana S.p.A. (MTA International) no later than the Closing Date. The Company further agrees that if the
Company applies to have the Common Stock traded on any other Trading Market, it will include in such application all of the Underlying Shares and will take such other action as is necessary to cause all of the Underlying Shares to be listed on such
other Trading Market as promptly as possible. The Company will take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market, other than in 

 

 24 

 
connection with a Fundamental Transaction (as defined in the Warrants) in which the Company is not the surviving entity or in which all of the capital stock of the Company is acquired by an
unaffiliated and unrelated Person, and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of such Trading Market. 

4.10 Equal Treatment of Purchasers. No consideration shall be offered or paid to any Person to amend or consent to a waiver or
modification of any provision of this Agreement unless the same consideration is also offered to all of the parties to this Agreement. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company
and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or
voting of the Securities or otherwise. 
 4.11 Certain Transactions and Confidentiality After The Date Hereof.
Notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions in
any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release to be issued simultaneously with the execution and delivery hereof as described in
Section 4.4 of this Agreement, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the
transactions contemplated by this Agreement are first publicly announced pursuant to such initial press release as described in Section 4.4 of this Agreement and (iii) no Purchaser shall have any duty of confidentiality to the
Company or its Subsidiaries after the issuance of such press initial release as described in Section 4.4 of this Agreement. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby
separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s
assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. 

4.12 [Reserved.] 

4.13 Additional Issuance of Securities. The Company agrees that for the period commencing on the date hereof and ending on the
thirtieth (30th) day after the date hereof, neither the Company nor any of its Subsidiaries shall, without the prior consent of the Purchasers, (i) directly or indirectly, issue, offer, pledge, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of any share of Common Stock or any securities convertible into or exercisable or exchangeable for Common
Stock or file any registration statement under the Act (other than a Registration Statement on Form S-8) with respect to any of the foregoing, or (ii) enter into any swap or any other agreement or any transaction that transfers, in whole or in
part, directly or indirectly, the economic consequence of ownership of the Common Stock, whether any such swap or transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other
securities, in cash or otherwise. The 
  

 25 

 
provisions of this Section 4.13 shall not apply to (A) the Securities to be issued and sold hereunder or issuable upon conversion or exercise of the Securities,
(B) issuances of shares of Common Stock upon the exercise of the warrants issued to Rodman in connection with the transactions contemplated by this Agreement, if any, (C) issuances of shares of Common Stock issuable upon conversion of
currently outstanding convertible notes, (D) issuances of shares of Common Stock upon the exercise of currently outstanding warrants or amendments to the warrant agreements related thereto, (E) granting options or other securities under
the Company’s incentive compensation plans existing on the date hereof or issuances of shares of Common Stock issuable in connection with outstanding awards thereunder as of the date hereof, (F) issuances of shares of Common Stock issuable
pursuant to agreements in effect as of the date hereof or amendments related thereto, (G) issuances of shares of Common Stock in connection with strategic acquisitions, (H) issuances of shares of Common Stock subject to shareholder
approval or (I) the transactions contemplated by the Warrant Exchange Agreement; provided, however, that in the case of clauses (C) and (D) above, no shares of Common Stock shall be issued as a result of an
amendment to such securities after the date hereof and prior to the expiration of the restricted period. In addition, the provisions of this Section 4.13 shall not apply to issuances of shares of Common Stock issuable upon exchange of
currently outstanding convertible notes. 
 4.14 Registration Statement. As soon as practicable (and in any event within
three (3) Business Days of the date of this Agreement), the Company shall file a Prospectus Supplement providing for the resale by the Purchasers of the Preferred Stock and Underlying Shares (provided that no Preferred Stock or Underlying
Shares of any Purchaser need be covered by such Prospectus Supplement if such Purchaser has not provided the information (including the duly completed Purchaser Questionnaire required under Section 4.20) with respect to such Purchaser
necessary for such Prospectus Supplement to comply with the Securities Act and the rules and regulations of the Commission promulgated thereunder (such information, the “Selling Purchaser Information”)). The Company shall use
commercially reasonable efforts to keep the Registration Statement effective at all times until no Purchaser owns any Preferred Stock or Underlying Shares. The Company shall ensure that the Registration Statement (including any amendments or
supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in the case of
prospectuses, in the light of the circumstances in which they were made) not misleading (provided that each Purchaser has complied with its obligations hereunder with respect to Selling Purchaser Information). After the date hereof and during any
period in which a Prospectus or Prospectus Supplement relating to any of the Preferred Stock and the Underlying Shares is required to be delivered by any Purchaser pursuant to the Securities Act (including in circumstances where such requirement may
be satisfied pursuant to Rule 172 of the Securities Act), (i) the Company will notify the Purchasers promptly of the time when any subsequent amendment to the Registration Statement, other than documents incorporated by reference, has been
filed with the Commission and/or has become effective or any subsequent supplement to the Prospectus that relates to the Preferred Stock and the Underlying Shares or any of the Purchasers or any subsequent amendment to the Prospectus or any
supplement or amendment to the Prospectus Supplement has been filed with the Commission and of any comment letter from the Commission or any request by the Commission for any amendment or supplement to the Registration Statement, any amendment to
the Prospectus, any supplement to the Prospectus that relates to the Preferred Stock and the 
  

 26 

 
Underlying Shares or any of the Purchasers or any amendment or supplement to the Prospectus Supplement or for additional information, (ii) the Company will prepare and file with the
Commission, promptly upon a Purchaser’s request, any amendments or supplements to the Registration Statement, Prospectus or Prospectus Supplement that, in such Purchaser’s reasonable opinion, may be necessary or advisable in connection
with any distribution (if any) of the Preferred Stock and the Underlying Shares by such Purchaser (provided, however, that the failure of such Purchaser to make such request shall not relieve the Company of any obligation or liability
hereunder, or affect such Purchaser’s right to rely on the representations and warranties made by the Company in this Agreement), (iii) the Company will not file any amendment or supplement to the Registration Statement, Prospectus or
Prospectus Supplement, other than documents incorporated by reference, relating to the Preferred Stock and the Underlying Shares unless a copy thereof has been submitted to each Purchaser within a reasonable period of time before the filing and no
Purchaser has reasonably objected in writing thereto (provided, however, that (A) the failure of any Purchaser to make such objection shall not relieve the Company of any obligation or liability hereunder, or affect any
Purchaser’s right to rely on the representations and warranties made by the Company in this Agreement, and (B) the Company has no obligation to provide a Purchaser any advance copy of such filing or to provide such Purchaser an opportunity
to object to such filing if such filing does not name such Purchaser or specifically discuss the Preferred Stock and the Underlying Shares as contemplated hereby) and the Company will furnish to each Purchaser at the time of filing thereof a copy of
any document that upon filing is deemed to be incorporated by reference into the Registration Statement, Prospectus or Prospectus Supplement, except for those documents available via EDGAR, and (iv) the Company will cause each amendment or
supplement to the Prospectus or the Prospectus Supplement, other than documents incorporated by reference, to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act (without reliance on
Rule 424(b)(8) of the Securities Act). Each Purchaser, as to itself only, represents, warrants, and covenants to the Company that such Purchaser’s Selling Purchaser Information shall not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein, or necessary to make the statements therein (in the case of prospectuses, in the light of the circumstances in which they were made) not misleading, that such Purchaser shall indemnify and hold
harmless the Company, from and against all Losses, as incurred, to the extent arising out of or based upon any breach thereof, and that notwithstanding anything to the contrary contained herein, in no event shall the liability of any Purchaser under
this Section 4.14 be greater in amount than the dollar amount of the net proceeds received by such Purchaser upon the sale of the securities giving rise to the indemnification obligation hereunder. Furthermore, each Purchaser, as to
itself only, covenants to promptly notify the Company in writing of any inaccuracies or changes in the Purchaser’s Selling Purchaser Information subsequent to the date such Purchaser delivered the Purchaser Questionnaire required under
Section 4.20 at any time while the Registration Statement remains effective. Until the earliest of (a) the date a Purchaser no longer holds any of the Preferred Stock acquired hereunder or any of the Underlying Shares obtained upon
conversion thereof, (b) the date such Purchaser is able to sell all of such Preferred and Underlying Shares without volume limitations pursuant to Rule 144(b)(1) and without the requirement for the Company to be in compliance with Rule
144(c)(1) and (c) the second anniversary of the filing of the Prospectus Supplement, in the event that (i) the Company fails to file the Prospectus Supplement within three (3) Trading Days of the date hereof or (ii) following the
filing of the Prospectus Supplement, the Company 
  

 27 

 
fails to keep the Registration Statement (or a replacement registration statement) effective so as to permit resales of the Preferred Stock and Underlying Shares by each Purchaser that has
provided its Selling Purchaser Information in accordance with this Agreement (and, if applicable, after the 6-month anniversary of the date hereof and prior to the one year anniversary of the date hereof, the Company also fails to meet the current
information requirements under Rule 144(c)(1) such that the Purchaser cannot sell all of its Preferred and Underlying Shares without volume limitations pursuant to Rule 144(b)(1)) for more than ten (10) consecutive calendar days or more than an
aggregate of fifteen (15) calendar days (which need not be consecutive calendar days) during any 12-month period (any such failure being referred to as an “Event”, and the date on which any such three (3) Trading Day
period or ten (10) or fifteen (15) calendar day period, as applicable, is exceeded under clauses (i) or (ii), as applicable, being referred to as an “Event Date”), then, in addition to any other rights such Purchaser
may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay
to each affected Purchaser an amount in cash, as partial liquidated damages and not as a penalty, equal to 2.0% of the pro rata portion of such Purchaser’s Subscription Amount that relates to the unsold Preferred Stock or Underlying Shares that
such Purchaser cannot sell under the Registration Statement as a result of such failure. The Company and each Purchaser agree that the maximum aggregate liquidated damages payable to an affected Purchaser under this Agreement shall be 10% of the
aggregate Subscription Amount that relates to the unsold Preferred Stock or Underlying Shares that such Purchaser cannot sell under the Registration Statement as a result of such failure. If the Company fails to pay any partial liquidated damages
pursuant to this Section 4.14 in full within ten (10) business days after the date payable, the Company will pay interest thereon at a rate of 15% per annum (or such lesser maximum amount that is permitted to be paid by
applicable law) to the Purchaser, accruing daily from the date such partial liquidated damages are due until such amounts, plus all such interest thereon, are paid in full. 

4.15 Notice of Commission Stop Orders. Promptly after it receives notice or obtains knowledge thereof, the Company will advise
each Purchaser of the issuance or threatened issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any other order preventing or suspending the use of the Prospectus or the Prospectus Supplement,
of the suspension of the qualification of the Preferred Stock and the Underlying Shares for offering or sale in any jurisdiction, or of the initiation or threatening of any proceeding for any such purpose or any examination pursuant to
Section 8(e) of the Securities Act, or if the Company becomes the subject of a proceeding under Section 8A of the Securities Act in connection with the offering of the Preferred Stock and the Underlying Shares; and it will promptly use its
commercially reasonable efforts to prevent the issuance of any stop or other order or to obtain its withdrawal if such a stop or other order should be issued. 

4.16 Delivery of Prospectus; Subsequent Changes. During any period in which a Prospectus or the Prospectus Supplement relating to
the Preferred Stock and the Underlying Shares is required to be delivered by any Purchaser pursuant to the Securities Act with respect to a pending sale of the Preferred Stock and the Underlying Shares (including in circumstances where such
requirement may be satisfied pursuant to Rule 172 of the Securities Act), the Company will comply in all material respects with the requirements imposed upon it by the Securities Act, as from time to time in force, and shall use commercially
reasonable best efforts 
  

 28 

 
to file on or before their respective due dates all reports and any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Sections 13(a),
13(c), 14, 15(d) or any other provision of the Exchange Act. If during such period any event occurs as a result of which the Prospectus or the Prospectus Supplement as then amended or supplemented would include an untrue statement of a material fact
or omit to state a material fact necessary to make the statements therein, in the light of the circumstances then existing, not misleading, or if during such period it is necessary to amend or supplement the Registration Statement, the Prospectus or
the Prospectus Supplement to comply with the Securities Act, the Company will promptly notify the Purchasers to suspend the offering of the Preferred Stock and the Underlying Shares during such period and the Company will promptly amend or
supplement, or file a free writing prospectus applicable to, the Registration Statement, the Prospectus or the Prospectus Supplement (at the expense of the Company) so as to correct such statement or omission or effect such compliance
(provided, however, that the obligations contained in this sentence shall only apply with respect to Selling Purchaser Information if the applicable Purchaser has notified the Company in writing of the event requiring the Company to
correct such statement or omission or effect such compliance). 
 4.17 Delivery of Registration Statement and Prospectus.
The Company will furnish to each Purchaser and its counsel (at the expense of the Company) copies of the Registration Statement, the Prospectus, the Prospectus Supplement (including all documents incorporated by reference therein) and all amendments
and supplements to the Registration Statement, the Prospectus or the Prospectus Supplement that are filed with the Commission during any period in which a Prospectus or Prospectus Supplement relating to the Preferred Stock and the Underlying Shares
is required to be delivered pursuant to the Securities Act (including all documents filed with the Commission during such period that are deemed to be incorporated by reference therein), in each case as soon as reasonably practicable and in such
quantities as such Purchaser may from time to time reasonably request and, at such Purchaser’s request, will also furnish copies of the Prospectus and the Prospectus Supplement to each exchange or market on which sales of the Preferred Stock
and the Underlying Shares may be made; provided, however, that the Company shall not be required to furnish any document to a Purchaser to the extent such document is available to such Purchaser or the public on EDGAR. 

4.18 Federal and State Securities Law Compliance. The Company covenants that it will take prior to (or by virtue of) the filing of
the Prospectus Supplement pursuant to Section 4.14 all such action as is necessary in order to obtain an exemption for, or to qualify the Preferred Stock and the Underlying Shares for sale to, and resale by, the Purchasers under all
applicable securities laws (including, without limitation, all federal securities laws and “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification)), and the Company shall provide evidence of
any such action so taken to the Purchasers promptly thereafter. The Company shall make all filings and reports relating to the offer and sale of the Preferred Stock and the Underlying Shares required under all applicable securities laws (including,
without limitation, all federal securities laws and “Blue Sky” laws of the states of the United States) following the Closing, and the Company shall comply with all applicable federal, state and local laws, statutes, rules, regulations and
the like relating to the offering and sale of the Preferred Stock and the Underlying Shares to, and by, the Purchasers. 
  

 29 

 4.19 Prohibition on Transfers Prior to Record Date. Notwithstanding anything
contained in this Agreement or otherwise to the contrary, each Purchaser agrees that it will not assign, sell, hypothecate, mortgage, pledge, convey, grant any interest in or over, or otherwise transfer any of its Securities until after 12:01 a.m.,
Seattle time on July 28, 2010. The obligations of each Purchaser under this Section 4.19 are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or
non-performance of the obligations of any other Purchaser under this Section 4.19 and no Purchaser shall have any right to pursue any action against any other Purchaser under this Section 4.19. This obligations hereunder are
separate as to each Purchaser and between the Company and each Purchaser only and not by and between any of the Purchasers. 

4.20 Purchaser Questionnaire. No later than 5:00 p.m., Los Angeles time on the Business Day following the date hereof, each
Purchaser shall complete, execute and deliver to the Company a Purchaser Questionnaire in the form of Exhibit E hereto so as to enable the Company to include such Purchaser’s Preferred Stock and Underlying Shares in the Prospectus
Supplement to be filed pursuant to Section 4.14. 
 ARTICLE V. 

MISCELLANEOUS 

5.1 Termination. This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only
and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been consummated before 11:59 p.m., Seattle time on July 27, 2010 through no fault
of such Purchaser; provided, however, that no such termination will affect the right of any party to sue for any breach by the other party (or parties). 

5.2 Fees and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees
and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all
transfer agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers. 

5.3 Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire
understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such subject matter, which the parties acknowledge have been merged into such documents,
exhibits and schedules; provided that the foregoing shall not have any effect on any agreements that a Purchaser has entered into with the Company or any of its Subsidiaries prior to the date hereof with respect to any prior investment
made by such Purchaser in the Company. 
 5.4 Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set
forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of 

 

 30 

 
transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than
5:30 p.m. (New York City time) on any Trading Day, (c) the second
(2nd) Trading Day following the date of mailing, if
sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages
attached hereto. 
 5.5 Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written
instrument signed, in the case of an amendment, by the Company and the holders of at least 67% of the Preferred Stock or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any default
with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall
any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. 
 5.6
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 

5.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and
permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to
any Person to whom such Purchaser assigns or transfers any Securities; provided such Purchaser provides prior written notice to the Company and such transferee agrees in writing to be bound, with respect to the transferred Securities, by the
provisions of the Transaction Documents that apply to the “Purchasers.” 
 5.8 No Third-Party Beneficiaries.
This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in
Section 4.7 of this Agreement. 
 5.9 Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party
agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates,
directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of
the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is

  

 31 

 
improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good
and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either party shall commence an action or proceeding to enforce any
provisions of the Transaction Documents, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such action or proceeding. 
 5.10 Survival. The representations, warranties and covenants contained
herein shall survive the Closing and the delivery of the Preferred Stock and Warrants and for a period of one year thereafter. 

5.11 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force
and effect as if such facsimile or “.pdf” signature page were an original thereof. 
 5.12 Severability. If any
term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as
that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including
any of such that may be hereafter declared invalid, illegal, void or unenforceable. 
 5.13 Rescission and Withdrawal
Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant
notice, demand or election in whole or in part without prejudice to its future actions and rights. 
 5.14 Replacement of
Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of
mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence 

 

 32 

 
reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party
costs (including customary indemnity) associated with the issuance of such replacement Securities. 
 5.15 Remedies. In
addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance pursuant to the Transaction Documents. The parties
agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agrees to waive and not to assert in any action for specific performance of
any such obligation the defense that a remedy at law would be adequate. 
 5.16 Independent Nature of Purchasers’
Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or
non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by
the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be
necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. For reasons
of administrative convenience only, each Purchaser and its respective counsel have chosen to communicate with the Company through WS. WS does not represent any of the Purchasers and only represents Rodman & Renshaw, LLC. The Company has
elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers. 

5.17 Liquidated Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing pursuant to
the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such
partial liquidated damages or other amounts are due and payable shall have been canceled. 
 5.18 Construction. The
parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto. 
  

 33 

 5.19 WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION
BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 (Signature Pages Follow) 
  

 34 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be
duly executed by their respective authorized signatories as of the date first indicated above. 
  

					
	CELL THERAPEUTICS, INC.	 		  	Address for Notice:
			
	  
	 		  	501 Elliott Avenue West, Suite 400
	 James A. Bianco, M.D.
 Chief
Executive Officer
	 		  	 Seattle, Washington 98119

Facsimile: (206) 272-4302
 Attention: Louis A.
Bianco

			
		 		  	With a copy to (which shall not constitute notice):
			
		 		  	 O’Melveny & Myers, LLP

Two Embarcadero Center

28th Floor

 San Francisco, California 94111

Facsimile: (415) 984-8701
 Attn: C. Brophy
Christensen, Esq.

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; 

PURCHASER SIGNATURE PAGES FOLLOW] 

[Signature page to Securities Purchase Agreement] 

 [PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above. 
  

			
	Name of Purchaser:	 	  

			
		
	Signature of Authorized Signatory of Purchaser:	 	  

			
		
	Name of Authorized Signatory:	 	  

			
		
	Title of Authorized Signatory:	 	  

			
		
	Email Address of Purchaser:	 	  

			
		
	Fax Number of Purchaser:	 	  

Address for Notice of Purchaser: 
  

					
	  
	 	
	  
	 	
	  
	 	
	Telephone:	 	  

	Facsimile:	 	  

	Attention:	 	  

With a copy to (which shall not constitute notice): 
  

					
	  
	 	
	  
	 	
	  
	 	
	Telephone:	 	  

	Facsimile:	 	  

	Attention:	 	  

Address for Delivery of Securities for Purchaser (if not same as address for notice): 

[Signature page to Securities Purchase Agreement] 

			
	 Subscription Amount:
	 	  

			
		
	 Shares of Preferred Stock:
	 	  

			
		
	 Warrant Shares:
	 	  

			
		
	 EIN Number:
	 	  

[Signature page to Securities Purchase Agreement] 

 EXHIBIT A 

CERTIFICATE OF DESIGNATION 

(See attached). 
  

 38 

 EXHIBIT B 

FORM OF OPINION OF COMPANY COUNSEL 

(See attached). 
  

 39 

 EXHIBIT C 

OPINION OF WASHINGTON COUNSEL 

(See attached). 
  

 40 

 EXHIBIT D 

FORM OF WARRANT 

(See attached) 
  

 41 

 EXHIBIT E 

PURCHASER QUESTIONNAIRRE 

Cell Therapeutics, Inc. (the “Company”) intends to file with the Securities and Exchange Commission (the
“Commission”) a prospectus supplement (“Prospectus Supplement”) to the base prospectus in the registration statement on Form S-3 (Commission File No. 333-161442) (the “Shelf Registration
Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”) of the Company’s Series 6 Preferred Stock and the Company’s Common Stock underlying the
Series 6 Preferred Stock (the “Registrable Securities”), in connection with that certain Securities Purchase Agreement for the Series 6 Preferred Stock, dated July 25, 2010 entered into by and among the Company, and the
Purchasers identified on the signature pages thereto (the “Purchase Agreement”). All capitalized terms used and not otherwise defined herein shall have the meanings given them in the Purchase Agreement. 

In order to sell or otherwise dispose of any Registrable Securities pursuant to the Shelf Registration Statement, each holder of
Registrable Securities (i.e., each Purchaser under the Purchase Agreement) will be required to be named as a selling securityholder in the related Prospectus Supplement and deliver a base prospectus and the Prospectus Supplement to each purchaser of
the Registrable Securities. 
 If you wish to include the Registrable Securities beneficially owned by you in the Shelf
Registration Statement and Prospectus Supplement, you must complete, sign and deliver this Purchaser Questionnaire (“Questionnaire”) to the Company at the address set forth herein. If you fail to do so, you will not be named as a selling
securityholder in the Prospectus Supplement and may not be able to use the Shelf Registration Statement and the Prospectus forming a part thereof to resell the Registrable Securities that you hold. 

Please be aware that various legal consequences arise from being named as a selling securityholder in the Prospectus Supplement. We
strongly advise you to consult your own securities law counsel regarding the consequences of being named or not being named as a selling securityholder in the Prospectus Supplement. 

ELECTION 
 The
undersigned holder (the “Selling Securityholder”) of Registrable Securities hereby elects to include in the Shelf Registration Statement the Registrable Securities beneficially owned by it and listed below in Item (2). By signing
and returning this Questionnaire, the undersigned agrees to be bound with respect to such Registrable Securities by the terms and conditions of this Questionnaire and the Purchase Agreement. 

The Selling Securityholder hereby provides the following information to the Company and represents and warrants that such information is
accurate and complete: 
  

 42 

 QUESTIONNAIRE 

 

					
	1.	 	(a)	 	Full legal name of Selling Securityholder:
			
		 		 	  

			
		 	(b)	 	Full legal name of registered holder (if not the same as in (a) above) of Registrable Securities listed in Item (2) below:
			
		 		 	  

		
	2.	 	Beneficial ownership of Securities:
		
		 	Except as set forth below in this Item (2), the undersigned Selling Securityholder does not beneficially own any securities.
			
		 	(a)	 	Number (and type) of Registrable Securities beneficially owned:
			
		 		 	  

			
		 	(b)	 	Number (and type) of securities of the Company other than Registrable Securities beneficially owned:
			
		 		 	  

			
		 	(c)	 	Number (and type) of Registrable Securities which the undersigned wishes to be included in the Shelf Registration Statement:1
			
		 		 	  

		
	3.	 	Beneficial ownership of other securities of the Company:
		
		 	Except as set forth below in this Item (3), the undersigned Selling Securityholder is not the beneficial or registered owner of any Registrable Securities or any
other securities of the Company, other than the securities listed above in Item (2).
		
		 	State any exceptions here:
		
		 	  

		
		 	  

		
		 	  

		
	4.	 	Broker-Dealer Status:
		
		 	Is the Selling Securityholder a registered broker
dealer?  Yes   ̈  No   ̈
		
		 	Note that in general we will be required to identify any registered broker-dealer as an underwriter in the Prospectus Supplement.

 

	1	These would be the number of shares of Series 6 preferred stock and the number of shares of common stock underlying the Series 6 preferred stock held by the Selling
Securityholder. 

  

 43 

					
	5.	 	Affiliation with Broker-Dealers:
		
		 	Is the Selling Securityholder an affiliate2 of a registered broker-dealer?
		
		 	Yes   ̈  No   ̈
		
		 	If so, please answer the remaining questions in this section.
			
		 	(a)	 	Please describe the affiliation between the Selling Securityholder and any registered broker-dealers:
			
		 		 	  

			
		 		 	  

			
		 		 	  

			
		 	(b)	 	If the Registrable Securities were purchased by the Selling Securityholder other than in the ordinary course of business, please describe the circumstances:
			
		 		 	  

			
		 		 	  

			
		 		 	  

			
		 	(c)	 	If the Selling Securityholder, at the time of its receipt of Registrable Securities, has had any agreements or understandings, directly or indirectly, with any person to distribute
the Registrable Securities, please describe such agreements or understandings:
			
		 		 	  

			
		 		 	  

			
		 		 	  

		
		 	Note that if the Selling Securityholder is an affiliate of a broker-dealer and did not purchase its Registrable Securities in the ordinary course of business or at
the time of the purchase had any agreements or understandings, directly or indirectly, to distribute the securities, we must identify the Selling Securityholder as an underwriter in the Prospectus Supplement.
		
	6.	 	Beneficial Ownership by Natural Persons:
		
		 	If the Selling Securityholder is an entity, does any natural person have voting or investment power over the Registrable Securities held by the Selling Securityholder?3

		
		 	Yes   ̈  No   ̈
		
		 	If so, please state that person’s or persons’ name(s):
		
		 	  

		
		 	  

 

	2	An “affiliate” of a specified person or entity means a person or entity that directly, or indirectly through one or more intermediaries, controls or is
controlled by, or is under common control with, the person or entity specified. 

	3	Please answer “Yes” if any natural person, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares:
(a) voting power which includes the power to vote, or to direct the voting of, such security; and/or (b) investment power which includes the power to dispose, or to direct the disposition of, the Registrable Securities held by the Selling
Securityholder. 

  

 44 

					
	7.	 	Relationships with the Company:
		
		 	Except as set forth below, neither the Selling Securityholder nor any of its affiliates, officers, directors or principal equity holders (5% or more) has held any
position or office or has had any other material relationship with the Company (or their respective predecessors or affiliates) during the past three years.
		
		 	State any exceptions here:
		
		 	  

		
		 	  

		
		 	  

		
	8.	 	Plan of distribution:
		
		 	Except as set forth below, the undersigned Selling Securityholder intends to distribute the Registrable Securities listed above in Item (2) only as follows (if
at all):
		
		 	Following the issuance of the Series 6 Preferred Stock to the Selling Securityholder, the Selling Securityholder may offer, sell, transfer or otherwise dispose of,
Registrable Securities from time to time on any stock exchange on which the Registrable Securities are listed, in the over-the-counter market, in privately negotiated transactions or otherwise. The Selling Securityholder may offer, sell, transfer,
or otherwise dispose of these shares at fixed prices that may be changed, at market prices prevailing at the time of sale, at prices related to prevailing market prices or at prices otherwise negotiated. The Selling Securityholder will act
independently of the Company in making decisions with respect to the timing, manner and size of each sale, and the Company cannot assure you that any Selling Securityholder will sell all or any portion of the shares offered by such Selling
Securityholder. The Company will not receive any proceeds from the sales by the Selling Securityholder of Registrable Securities.
		
		 	The Selling Securityholder may offer and sell Registrable Securities by one or more of the following methods at various times:
		
		 	 •       block trades in which a broker or dealer will be engaged to
attempt to sell the shares as agent, but may position and resell a portion of the block as principal to facilitate the transaction;

		
		 	 •       purchases by a broker or dealer as principal and resale by the
broker or dealer for its own account pursuant to the Prospectus Supplement;

		
		 	 •       ordinary brokerage transactions and transactions in which the
broker solicits purchases;

		
		 	 •       “at the market” transactions to or through market makers
or into an existing market for our common stock;

		
		 	 •       privately negotiated transactions;

		
		 	 •       short sales;

		
		 	 •       options, swaps or other derivative transactions that may or may
not be listed on an exchange;

		
		 	 •       distributions to their respective partners, members, managers,
directors, employees, consultants or affiliates; or

		
		 	 •       any combination of the above methods or by any other legally
available means

		
		 	The Selling Securityholder may engage brokers and dealers, and any brokers or dealers may arrange for other brokers or dealers to participate in effecting sales of
the shares. These brokers or dealers may act as principals, or as agents of the Selling Securityholder. Broker-dealers may agree with the Selling Securityholder to sell a specified number of Registrable Securities at a stipulated price per share. If
a broker-dealer is unable to sell Registrable Securities acting as agent for the Selling Securityholder, it may purchase as principal any unsold Registrable Securities at the stipulated price. Broker-dealers who acquire Registrable Securities as
principals may thereafter resell the Registrable Securities from time to time in transactions on any stock exchange on which the Registrable Securities are then listed, at prices and on terms then prevailing at the time of sale, at prices related to
the then-current market price or in negotiated transactions. Broker-dealers may use block transactions and sales to and through brokerdealers, including transactions of the nature described above.

 

 45 

 Any underwriters, dealers, brokers or agents participating in the distribution of
Registrable Securities may receive compensation in the form of discounts, concessions, commissions or fees from the Selling Securityholder and/or purchasers of the Selling Securityholder’s shares, for which they may act, which compensation as
to a particular broker-dealer might be in excess of customary commissions. 
 Any brokers, dealers or agents that
participate in the distribution of shares may be deemed to be “underwriters” within the meaning of the Securities Act, and any discounts, concessions, commissions or fees received by them and any profit on the resale of shares sold by them
may be deemed to be underwriting discounts and commissions. 
 The Company will make copies of the Prospectus Supplement
available to the Selling Securityholders for purposes of satisfying the prospectus delivery requirements of the Securities Act, if applicable. 

The Selling Securityholder may enter into hedging transactions with broker-dealers and the broker-dealers may engage in short sales of
common shares in the course of hedging the positions they assume with the Selling Securityholder, including, without limitation, in connection with distributions of shares by those broker-dealers. The Selling Securityholder may enter into option or
other transactions with broker-dealers that involve the delivery of shares to the broker-dealers, who may then resell or otherwise transfer those securities. 

The Selling Securityholder and other persons participating in the sale or distribution of Registrable Securities will be subject to
applicable provisions of the Exchange Act, and the rules and regulations thereunder, including Regulation M; and the Company has advised the Selling Securityholder that Regulation M may apply. This regulation may limit the timing of purchases and
sales of any shares by the Selling Securityholder and any other person. The anti-manipulation rules under the Exchange Act may apply to sales of shares in the market and to the activities of the Selling Securityholders and its respective affiliates.
Furthermore, Regulation M may restrict the ability of any person engaged in the distribution of shares to engage in market-making activities with respect to the particular shares being distributed for a period of up to five business days before the
distribution. These restrictions may affect the marketability of the shares and the ability of any person or entity to engage in market-making activities with respect to the securities. 

The Selling Securityholder may also sell shares in accordance with Rule 144 under the Securities Act rather than pursuant to the
Prospectus Supplement, regardless of whether the shares are covered by the Prospectus Supplement. 
  

					
		 	State any exceptions here:
		
		 	  

		
		 	  

		
		 	  

The Selling Securityholder acknowledges that it understands its obligation to comply, and agrees that it will comply, with the provisions
of the Securities Act and the Securities Exchange Act of 1934 and the rules and regulations thereunder, particularly Regulation M (or any successor rules and regulations). 

In the event that the Selling Securityholder transfers all or any portion of the Registrable Securities listed in Item (2) above
after the date on which such information is provided to the Company, the Selling Securityholder agrees to notify the transferee(s) at the time of the transfer of its rights and obligations under this Questionnaire. 

By signing below, the Selling Securityholder consents to the disclosure of the information contained herein in its answers to Items
(1) through (8) above and the inclusion of such information in the Prospectus Supplement. The Selling Securityholder understands that such information will be relied upon by the Company in connection with the preparation of the Prospectus
Supplement. 
  

 46 

 In accordance with the Selling Securityholder’s obligation under the Purchase Agreement
to provide such information as may be required by law for inclusion in the Prospectus Supplement, the Selling Securityholder agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur
subsequent to the date hereof at any time while the Shelf Registration Statement remains effective. All notices hereunder shall be made in writing, by hand-delivery, first-class mail, or air courier guaranteeing overnight delivery to the address
below. 
 Once this Questionnaire is executed by the Selling Securityholder and received by the Company, the terms of this
Questionnaire, and the representations and warranties contained herein, shall be binding on, shall inure to the benefit of and shall be enforceable by the respective successors, heirs, personal representatives, and assigns of the Company and the
Selling Securityholder (with respect to the Registrable Securities beneficially owned by such Selling Securityholder and listed in Item (2) above). This Agreement shall be governed in all respects by the laws of the State of New York applicable
to agreements made and to be performed in such State. 
 IN WITNESS WHEREOF, the undersigned, by authority duly given, has
caused this Questionnaire to be executed and delivered either in person or by its duly authorized agent. 
  

			
	 Dated:
	 	  

 

			
	  

	Selling Securityholder
	(Print/type full legal name of beneficial owner of Registrable Securities)
		
	By:	 	  

		 	Name:
		 	Title:

 PLEASE RETURN THE COMPLETED
AND EXECUTED 
 QUESTIONNAIRE TO THE COMPANY AT: 

Cell Therapeutics, Inc. 

501 Elliott Avenue West, Suite 400 

Seattle, Washington 98119 

Attention: Louis A. Bianco 

Facsimile No.: (206) 272-4317 

Email: jbianco@ctiseattle.com 

with a copy to: 

O’Melveny & Myers, LLP 

Two Embarcadero Center,
28th Floor 

San Francisco, California 94111 

Facsimile: (415) 984-8701 

Attention: C. Brophy Christensen, Esq. 

Email: bchristensen@omm.com 
  

 47

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