Document:

Form of Registartion Rights Agreement Dated 12/12/2007

 Exhibit 4.2 
 CELL THERAPEUTICS, INC. 
 REGISTRATION RIGHTS AGREEMENT 
 December 12, 2007 

 Cell Therapeutics, Inc., a corporation organized under the laws of the State of Washington (the
“Company”), proposes to exchange the Outstanding Notes (as defined in the Exchange Agreement) held by the investors listed on each Schedule 1 (the “Investors”) of the respective Exchange Agreements
(the “Exchange Agreement”), dated December 11, 2007, by and between the Investors and the Company and signatory hereto, for an additional number of shares of Common Stock set forth opposite such Investor’s name
under the column “Number of Common Shares” on Schedule 1 thereto (such shares being referred to herein as the “Exchange Shares”) and the principal amount of 5.75% Convertible Senior Notes due 2011 issued under an
indenture substantially in the form set forth on Exhibit A of the Exchange Agreement set forth opposite such Investor’s name under the column “Aggregate Principal Amount of Exchange Notes” on Schedule 1 thereto (such
notes being referred to herein as the “Exchange Notes”, and collectively with the Exchange Shares, the “Securities”) upon the terms and subject to the conditions set forth in such Exchange Agreement.
As an inducement to the Investors to enter into the Exchange Agreement, the Company agrees with the Investors for the benefit of Holders (as defined herein) from time to time of the Registrable Securities (as defined herein) as follows: 

 

	 	1.	Definitions. 

 Capitalized terms used herein without
definition shall have the meanings ascribed to them in the Purchase Agreement. As used in this Registration Rights Agreement (this “Agreement”), the following defined terms shall have the following meanings: 
 “Additional Interest” has the meaning assigned thereto in Section 7(a) hereof. 
 “Affiliate” of any specified person means any other person which, directly or indirectly, is in control of, is controlled by, or is
under common control with such specified person. For purposes of this definition, control of a person means the power, direct or indirect, to direct or cause the direction of the management and policies of such person whether by contract or
otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Applicable Amount” means, at the time of computation of any Additional Interest, (i) with respect to the Securities, the principal amount of the Securities then outstanding, and (ii) with respect to shares of
Common Stock which have been issued upon conversion of the Securities pursuant to the Indenture and not sold by a Holder, the principal amount of Securities that was converted into such number of shares. 
 “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in the City of
New York, State of New York are authorized or obligated by law or executive order to close. 
 “Commission” means the United
States Securities and Exchange Commission, or any other federal agency at the time administering the Exchange Act or the Securities Act, whichever is the relevant statute for the particular purpose. 
 “Common Stock” means the Company’s common stock, without par value. 
 “DTC” means The Depository Trust Company. 

 “Effectiveness Period” has the meaning assigned thereto in Section 2(b)(i) hereof.

 “Effective Time” means the time at which the Commission declares any Shelf Registration Statement effective or at which
time any Shelf Registration Statement otherwise becomes effective. 
 “Exchange Act” means the United States Securities
Exchange Act of 1934, as amended. 
 “Exchange Date” means the date of the exchange of the Outstanding Notes and of the
original issuance of the Securities. 
 “Holder” means any person that is the record owner of Registrable Securities (and
includes any person that has a beneficial interest in any Registrable Security in book-entry form). 
 “Indenture” means the
Indenture, dated as of or around December 12, 2007, by and between the Company and U.S. Bank National Association, pursuant to which the Securities are to be issued, and as amended and supplemented from time to time in accordance with its
terms. 
 “Majority of Holders” means Holders holding over fifty percent (50%) of the aggregate principal amount of
Registrable Securities outstanding. 
 “Managing Underwriter” has the meaning assigned thereto in Section 8 hereof.

 “Notice and Questionnaire” means a Notice of Registration Statement and Selling Securityholder Election and Questionnaire
substantially in the form of Appendix A hereto. 
 “Notice Holder” has the meaning assigned thereto in
Section 3(a)(i) hereof. 
 The term “person” means an individual, partnership, limited liability company, corporation,
trust or unincorporated organization, or a government or agency or political subdivision thereof. 
 “Prospectus” means the
prospectus included in any Shelf Registration Statement, as amended or supplemented by any prospectus supplement with respect to the terms of the Offering of any portion of the Registrable Securities covered by any Shelf Registration Statement and
by all other amendments and supplements to such prospectus, including all material incorporated by reference in such prospectus and all documents filed after the date of such prospectus by the Company under the Securities Act or the Exchange Act and
incorporated by reference therein. 
 “Registrable Securities” means all or any portion of the Securities issued from time
to time under the Indenture or the Exchange Agreement, as applicable, and the shares of Common Stock issuable upon conversion of the Securities. 
 “Restricted Security” means any Security or share of Common Stock issuable upon conversion thereof except any such Security or share of Common Stock that (i) has been registered pursuant to an effective registration
statement under the Securities Act and sold in a manner contemplated by the Shelf Registration Statement, (ii) has been transferred in 

  

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compliance with Rule 144 under the Securities Act (or any successor provision thereto) or is transferable pursuant to paragraph (k) of such Rule 144 (or
any successor provision thereto) or (iii) has otherwise been transferred and a new Security or share of Common Stock not subject to transfer restrictions under the Securities Act has been delivered by or on behalf of the Company in accordance
with Section 2.6 of the Indenture. 
 “Registration Default” has the meaning assigned thereto in Section 7(a)
hereof. 
 “Securities Act” means the United States Securities Act of 1933, as amended. 
 “Shelf Registration” means a registration effected pursuant to Section 2 hereof. 
 “Shelf Registration Statement” means a “shelf” registration statement filed under the Securities Act providing for the
registration of, and the sale on a continuous or delayed basis by the Holders of, all of the Registrable Securities pursuant to Rule 415 under the Securities Act and/or any similar rule that may be adopted by the Commission, filed by the Company
pursuant to the provisions of Section 2 of this Agreement, including the Prospectus contained therein, any amendments and supplements to such registration statement and Prospectus, including post-effective amendments, and all exhibits and all
material incorporated by reference in such registration statement and Prospectus, and any additional “shelf” registration statements filed under the Securities Act to permit the registration and sale of Registrable Securities pursuant to
Section 3(a)(ii) hereof. 
 “Strategic Partner” means (i) a pharmaceutical or biotechnology company with book
equity of at least U.S. $200,000,000, (ii) a pharmaceutical or biotechnology company with sales of at least U.S. $150,000,000, or (iii) a publicly traded, or division or subdivision of a publicly traded, pharmaceutical or biotechnology
company with market capitalization in excess of U.S. $200,000,000. 
 “Suspension Period” has the meaning assigned thereto
in Section 2(c) hereof. 
 “Trust Indenture Act” means the Trust Indenture Act of 1939, or any successor thereto, and
the rules, regulations and forms promulgated thereunder, as the same shall be amended from time to time. 
 The term
“underwriter” means any underwriter, or any person deemed to be an underwriter pursuant to the Securities Act and Exchange Act and the respective rules and regulations thereunder, as in effect at any relevant time, of Registrable
Securities in connection with an offering thereof under a Shelf Registration Statement. 
 Wherever there is a reference in this Agreement to
a percentage of the “principal amount” of Registrable Securities or to a percentage of Registrable Securities, each share of Common Stock issued upon conversion of the Securities which is a Registrable Security shall represent a principal
amount or percentage of Registrable Securities determined based on the aggregate principal amount of Securities that were converted into shares of Common Stock (as adjusted for any stock splits, stock dividends, recapitalizations, combinations,
reorganizations and like events) as of the date of determination. 
  

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	 	2.	Shelf Registration. 

 (a) The Company shall, as soon
as practicable, but no later than ninety (90) calendar days following the Exchange Date, file with the Commission a Shelf Registration Statement to provide for the offer and sale of the Registrable Securities by the Holders from time to time in
accordance with the methods of distribution elected by such Holders and, thereafter, shall use its best efforts to cause such initial Shelf Registration Statement to be declared effective under the Securities Act no later than one-hundred eighty
(180) calendar days following the Exchange Date; provided, however, that the Company may, upon written notice to all the Holders (which notice shall contain no material nonpublic information), postpone having the Shelf
Registration Statement declared effective for a period not to exceed sixty (60) days if the Company is in possession of material non-public information other than any of the results of the Company’s clinical trails, the disclosure of which
would have a material adverse effect on the business, operations, properties, condition (financial or otherwise) of the Company and its subsidiaries, taken as a whole; provided further, however, that only Holders who are Notice Holders
shall be entitled to be named as a selling securityholder in any Shelf Registration Statement as of the date it is declared effective or to use the Prospectus forming a part thereof for offers and resales of Registrable Securities. None of the
Company’s securityholders (other than Holders of Registrable Securities) shall have the right to include any of the Company’s other securities in the Shelf Registration Statement. Notwithstanding anything to the contrary contained herein,
neither the Company nor any of its subsidiaries or affiliates shall disclose the name of any Investors in any filing, announcement, release or otherwise without the prior written consent of the applicable investor. The receipt of a Notice &
Questionnaire shall be considered a valid consent for the purposes of this Section 2 for use of the information contained in such Notice & Questionnaire. 
 (b) Subject to Section 2(c) hereof, the Company shall use its best efforts: 
 (i) to keep any Shelf
Registration Statement continuously effective, supplemented and amended as required by the provisions of Section 3(j) hereof, in order to permit the Prospectus forming a part thereof to be usable by Holders until the earlier of: (x) all of
the Holders of Registrable Securities are able to sell all Registrable Securities immediately without restriction pursuant to Rule 144(k) under the Securities Act or any successor rule thereto, provided, however, that the Effectiveness
Period shall in no event terminate prior to the date that is two years after the Exchange Date, (y) all Registrable Securities registered under the Shelf Registration Statements have been sold, or (z) all Registrable Securities have ceased
to be outstanding (such period being referred to herein as the “Effectiveness Period”); and 
 (ii) after the
Effective Time of the initial Shelf Registration Statement, to take the actions provided for in Section 3(a)(ii) hereof after the receipt of a completed and signed Notice and Questionnaire from any Holder of Registrable Securities that is not
then a Notice Holder; provided, however, that nothing in this subparagraph shall relieve such holder of the obligation to return a completed and signed Notice and Questionnaire to the Company in accordance with Section 2(a)(ii)
hereof. 
 (iii) If at any time the Securities are convertible into securities other than Common Stock, the Company shall, or shall cause any
successor under the Indenture to, cause such securities to be included in the Shelf Registration Statement no later than the date on which the securities may then be convertible into such securities. 
  

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 (c) After the Effective Time of the initial Shelf Registration Statement, the Company may suspend the use
of any Prospectus by written notice to the Notice Holders for a period not to exceed an aggregate of 30 calendar days in any 12-month calendar period and not in excess of 10 consecutive calendar days in any such 12-month calendar period (each such
period, a “Suspension Period”) if: 
 (i) an event has occurred and is continuing, as a result of which the Shelf
Registration Statement would, in the Company’s reasonable judgment, contain an 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 not misleading; and

 (ii) the Company determines in good faith that the disclosure of such event at such time would have a material adverse effect on the
Company and its subsidiaries taken as a whole. 
  

	 	3.	Registration Procedures. 

 In connection with the
Shelf Registration Statements, the following provisions shall apply: 
 (a) (i) not less than twenty (20) calendar days prior to the time
the Company in good faith intends to have the initial Shelf Registration Statement declared effective, the Company shall distribute the Notice and Questionnaire to the Holders of Registrable Securities. The Company shall take action to name as a
selling securityholder in the initial Shelf Registration Statement at the Effective Time each Holder that completes, executes and delivers a Notice and Questionnaire to the Company (a “Notice Holder”) prior to or on the tenth
(10th) calendar day after such Holder’s receipt thereof so that such Holder is permitted to deliver the Prospectus forming a part thereof to purchasers of such Holder’s Registrable Securities in accordance with applicable law. The
Company shall not be required to take any action to name any Holder as a selling securityholder in the initial Shelf Registration Statement at the time of its effectiveness or to enable any Holder to use the Prospectus forming a part thereof for
resales of Registrable Securities unless such Holder has returned a completed and signed Notice and Questionnaire to the Company in a timely manner. 
 (ii) After the Effective Time of the initial Shelf Registration Statement, the Company shall, upon the request of any Holder of Registrable Securities that is not then a Notice Holder, promptly send a Notice and
Questionnaire to such Holder. After the Effective Time of the initial Shelf Registration Statement, the Company shall (A) as promptly as practicable, after the date a completed and signed Notice and Questionnaire is delivered to the Company,
and in any event within five (5) Business Days or, if the Company is required to file with the Commission a new Shelf Registration, thirty (30) calendar days, after such date, prepare and file with the Commission (1) a supplement to
the Prospectus or, if required by applicable law, a post-effective amendment to the Shelf Registration Statement or an additional Shelf Registration Statement, and (2) any other document required by applicable law, so that the Holder delivering

  

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such Notice and Questionnaire is named as a selling securityholder in a Shelf Registration Statement and is permitted to deliver the Prospectus to purchasers
of such Holder’s Registrable Securities in accordance with applicable law, and (B) use its best efforts to cause any post-effective amendment or such additional Shelf Registration Statement to become effective under the Securities Act as
promptly as is practicable; but in any event by the date that is (i) ten (10) Business Days after the date of such post-effective amendment, or (ii) forty-five (45) calendar days after the date such additional Shelf Registration
Statement is required to be filed; provided, however, that if a Notice and Questionnaire is delivered to the Company during a Suspension Period, the Company shall not be obligated to take the actions set forth in this clause (ii) until
the termination of such Suspension Period. 
 (b) The Company shall furnish to each Notice Holder no fewer than five (5) Business Days
prior to the initial filing of the Shelf Registration Statement, a copy of such Shelf Registration Statement, and shall furnish to such holders no fewer than two (2) Business Days prior to the filing of any amendment to the Shelf Registration
Statement, a copy of such amendment, and shall use its best efforts to reflect in each such document when so filed with the Commission such comments as such holders and their respective counsel reasonably may propose; provided,
however, that the Company shall make the final decision as to the form and content of each such document. The Shelf Registration Statement shall additionally contain, in substantially the form provided by the Notice Holders and their respective
counsel, information relating to the “Selling Shareholders” and “Plan of Distribution” sections. If any such Shelf Registration Statement refers to any Notice Holder by name or otherwise as the holder of any securities of the
Company, then such Notice Holder shall have the right to require (i) the insertion therein of language, in form and substance reasonably satisfactory to such Notice Holder, to the effect that the holding by such Notice Holder of such securities
is not to be construed as a recommendation by such Notice Holder of the investment quality of the Company’s securities covered thereby and that such holding does not imply that such Notice Holder will assist, in meeting any future financial
requirements of the Company or (ii) in the event that such reference to such Notice Holder by name or otherwise is not required by the Securities Act or any similar Federal statute then in force, the deletion of the reference to such Notice
Holder in any amendment or supplement to the Registration Statement filed or prepared subsequent to the time that such reference ceases to be required. 
 (c) The Company shall promptly take such action as may be necessary so that (i) each of the Shelf Registration Statements and any amendment or supplement thereto and the Prospectus forming a part thereof and any
amendment or supplement thereto (and each report or other document incorporated therein by reference in each case) complies in all material respects with the Securities Act and the Exchange Act and the respective rules and regulations thereunder, as
in effect at any relevant time, (ii) each of the Shelf Registration Statements and any amendment or supplement thereto does not, when it becomes effective, contain an 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 not misleading, (iii) each Prospectus forming a part of any Shelf Registration Statement, and any amendment or supplement to such Prospectus, in the form delivered to purchasers
of the Registrable Securities during the Effectiveness Period, does not include 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 circumstances in which they were
made, not misleading, and (iv) a Prospectus filed in compliance with Rule 424 (or any similar provision then in force) under the Securities Act shall be filed within two (2) Business Days of the time the Shelf Registration Statement
becomes effective. 
  

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 (d) The Company shall promptly give notice to each Notice Holder, and shall confirm such notice in
writing if so requested by any such Notice Holder: 
 (i) when the initial Shelf Registration Statement has been filed with the Commission and
when the initial Shelf Registration Statement has become effective; 
 (ii) when any supplement to the Prospectus, Shelf Registration
Statement or post-effective amendment to a Shelf Registration has been filed with the Commission and, with respect to a Shelf Registration Statement or any post-effective amendment, when the same has been declared effective by the Commission;

 (iii) of any request by the Commission for amendments or supplements to any Shelf Registration Statement or the Prospectus included
therein or for additional information; 
 (iv) of the issuance by the Commission of any stop order suspending the effectiveness of any Shelf
Registration Statement or the initiation of any proceedings for such purpose; 
 (v) of the receipt by the Company of any notification with
respect to the suspension of the qualification of the securities included in any Shelf Registration Statement for sale in any jurisdiction or the initiation of any proceeding for such purpose; and 
 (vi) of the happening of any event or the existence of any state of facts that requires the making of any changes in any Shelf Registration Statement or
the Prospectus included therein so that, as of such date, such Shelf Registration Statement and Prospectus do not contain an untrue statement of a material fact and do not omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading (which advice shall be accompanied by an instruction to such Holders to suspend the use of the Prospectus until the requisite changes have been made, which notice need not specify the nature of the event
giving rise to such suspension). 
 (e) The Company shall use its best efforts to prevent the issuance, and if issued to obtain the
withdrawal at the earliest possible time, of any order suspending the effectiveness of any Shelf Registration Statement. 
 (f) The Company
shall, as promptly as reasonably practicable, furnish to each Notice Holder, upon their request and without charge, at least one conformed copy of the Shelf Registration Statement and any amendment or supplement thereto, including financial
statements but excluding schedules, all documents incorporated or deemed to be incorporated therein by reference and all exhibits (unless requested in writing to the Company by such Notice Holder). 
 (g) The Company shall, during the Effectiveness Period, deliver to each Notice Holder, without charge, as many copies of each Prospectus in which the
Notice Holder is listed as a selling securityholder included in the applicable Shelf Registration Statement and any amendment or supplement thereto as such Notice Holder may reasonably request; and the 

  

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Company consents (except during a Suspension Period or during the continuance of any event described in Section 3(d) (iii)-(vi) above, limited, in
the case of Section 3(d)(v), to the jurisdiction in question thereunder) to the use of the Prospectus and any amendment or supplement thereto by each of the Notice Holders in connection with the offering and sale of the Registrable Securities
covered by the Prospectus and any amendment or supplement thereto during the Effectiveness Period. 
 (h) Prior to any offering of
Registrable Securities pursuant to a Shelf Registration Statement, the Company shall (i) register or qualify or cooperate with the Notice Holders and their respective counsel in connection with the registration or qualification (or exemption
from such registration or qualification) of such Registrable Securities for offer and sale under the securities or “blue sky” laws of such jurisdictions within the United States as any Notice Holder may reasonably request in writing,
(ii) keep such registrations or qualifications or exemptions therefrom in effect and comply with such laws so as to permit the continuance of offers and sales in such jurisdictions for so long as may be necessary to enable any Notice Holder or
underwriter, if any, to complete its distribution of Registrable Securities pursuant to such Shelf Registration Statement, and (iii) take any and all other actions necessary or advisable to enable the disposition in such jurisdictions of such
Registrable Securities; provided, however, that in no event shall the Company be obligated to (A) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to so qualify
but for this Section 3(h), or (B) subject itself to general or unlimited service of process in any such jurisdiction if it is not otherwise so subject. 
 (i) Unless any Registrable Securities shall be in book-entry only form, the Company shall cooperate with the Notice Holders to facilitate the timely preparation and delivery of certificates representing Registrable
Securities to be sold pursuant to any Shelf Registration Statement, which certificates, if so required by any securities market or exchange upon which any Registrable Securities are quoted or listed, shall be penned, lithographed or engraved, or
produced by any combination of such methods, on steel engraved borders, and which certificates shall be free of any restrictive legends and in such permitted denominations and registered in such names as Notice Holders may request in connection with
the sale of Registrable Securities pursuant to such Shelf Registration Statement. 
 (j) Upon the occurrence of any event or the existence of
any fact contemplated by paragraph 3(d)(vi) above, subject to Section 2(c) hereof, the Company shall promptly, but in any event within ten (10) Business Days following such occurrence or existence, prepare and file (and have declared
effective) a post-effective amendment to any Shelf Registration Statement or an amendment or supplement to the related Prospectus included therein or file any other document with the Commission so that, as thereafter delivered to purchasers of the
Registrable Securities, the Prospectus will not include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading. If the Company notifies the Notice Holders of the occurrence
of any event or the existence of any fact contemplated by paragraph 3(d)(vi) above, the Notice Holder shall suspend the use of the Prospectus and keep the notification provided pursuant to paragraph 3(d)(vi) above confidential until (i) such
Notice Holder has received copies of the supplemented or amended Prospectus contemplated by the preceding sentence or (ii) such Notice Holder is advised in writing by the Company that the use of the Prospectus may be resumed and has received
copies of any 

  

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additional or supplemental filings that are incorporated by reference in the Prospectus. Notwithstanding the foregoing, but subject to Section 8 hereof,
the Company shall not be required to amend or supplement the Shelf Registration Statement, any related Prospectus or any document incorporated by reference for a period not to exceed an aggregate of sixty (60) calendar days in any 12-month
calendar period if the Company is in possession of material non-public information the disclosure of which would have a material adverse effect on the business, operations, prospects, condition (financial or otherwise) of the Company and its
subsidiaries, taken as a whole. 
 (k) Not later than the Effective Time of a Shelf Registration Statement, the Company shall provide a CUSIP
number for the debt securities to be sold pursuant to a Shelf Registration Statement. 
 (l) The Company shall comply with the Securities Act
and the Exchange Act and the respective rules and regulations thereunder, as in effect at any relevant time, and make generally available to its securityholders earnings statements (which need not be audited) satisfying the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than ninety (90) days after the end of any 12-month period (or ninety (90) days after the end of any
12-month period if such period is a fiscal year), or such shorter period as required by the Securities Act and the Exchange Act and the respective rules and regulations thereunder, as in effect at any relevant time. 
 (m) Not later than the Effective Time of the initial Shelf Registration Statement, the Company shall use its best efforts to cause the Indenture to be
qualified under the Trust Indenture Act; in connection with such qualification, the Company shall cooperate with the Trustee under the Indenture to effect such changes to the Indenture as may be required for such Indenture to be so qualified in
accordance with the terms of the Trust Indenture Act; and the Company shall execute, and shall use all efforts to cause the Trustee to execute, all documents that may be required to effect such changes and all other forms and documents required to
be filed with the Commission to enable such Indenture to be so qualified in a timely manner. In the event that any such amendment or modification referred to in this Section 3(m) involves the appointment of a new trustee under the Indenture,
the Company shall appoint a new trustee thereunder pursuant to the applicable provisions of the Indenture. 
 (n) The Company shall make
reasonably available for inspection by one or more representatives of the Notice Holders, designated in writing by a Majority of Holders whose Registrable Securities are included in a Shelf Registration Statement, any underwriter participating in
any disposition pursuant to any Shelf Registration Statement, and any attorney, accountant or other agent retained by such Notice Holders or any such underwriter (i) all relevant financial and other records, pertinent corporate documents and
properties of the Company and its subsidiaries, and (ii) cause the Company’s officers, directors and employees to make available for inspection all information reasonably requested by such Notice Holders or any such underwriter, attorney,
accountant or agent in connection with such Shelf Registration Statement, in each case, as is customary for similar due diligence examinations; provided, however, that such persons shall, at the Company’s request, first agree in
writing with the Company that any information that is reasonably and in good faith designated by the Company in writing as confidential at the time of delivery or inspection, as the case may be, of such information shall be 

  

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kept confidential by such persons and shall be used solely for the purposes of exercising rights under this Agreement, unless such disclosure is made in
connection with a court proceeding or required by law, or such records, information or documents become available to the public generally or through a third party without an accompanying obligation of confidentiality or the content of such
disclosure was already known and independently developed by the relevant Notice Holder; provided further, however, that, if the foregoing inspection and information gathering would otherwise disrupt the Company’s conduct of its
business, such inspection and information gathering shall, to the greatest extent possible, be coordinated on behalf of the Notice Holders and the other parties entitled thereto by one counsel designated by and on behalf of the Notice Holders and
other parties. 
 (o) The Company will use its best efforts to cause the Common Stock issuable upon conversion of the Securities to be quoted
or listed on the Nasdaq Global Market or other market or stock exchange on which the Common Stock primarily trades on or prior to the Effective Time of each Shelf Registration Statement hereunder. 
 (p) The Company will cooperate and assist in any filings required to be made with Financial Industry Regulatory Authority or other market or stock
exchange on which the Common Stock may trade. 
 (q) The Company shall use its best efforts to take all other steps necessary to effect the
registration, offering and sale of the Registrable Securities covered by each Shelf Registration Statement contemplated hereby, including, without limitation, entering into an underwriting agreement in customary form (if the distribution of
Registrable Securities is to be made pursuant to an underwritten public offering) and such other customary agreements as may be necessary, desirable or appropriate, and taking all such other necessary actions in connection therewith. 
 (r) The Company shall: 
 (i) (A) make
reasonably available for inspection by requesting Notice Holders, any underwriter participating in any disposition pursuant to the Shelf Registration Statement, and any attorney selected in accordance with Section 4(b) hereof, one accountant
and any other agent retained by such holders or any such underwriter all relevant financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries and (B) cause the Company’s officers, directors
and employees to supply all information reasonably requested by such holders or any such underwriter, attorney, accountant or agent in connection with the Shelf Registration Statement, in each case, as is customary for similar due diligence
examinations; provided, however, that all records, information and documents that are designated in writing by the Company, in good faith, as confidential shall be kept confidential by such holders and any such underwriter, attorney,
accountant or agent, unless such disclosure is made in connection with a court proceeding or required by law, or such records, information or documents become available to the public generally or through a third party without an accompanying
obligation of confidentiality; and provided further that, if the foregoing inspection and information gathering would otherwise disrupt the Company’s conduct of its business, such inspection and information gathering shall, to the greatest
extent possible, be coordinated on behalf of the requesting Notice Holders and the other parties entitled thereto by one counsel designated by and on behalf of Notice Holders and other parties; 
  

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 (ii) in connection with any underwritten offering conducted pursuant to Section 8 hereof, make such
representations and warranties to the Notice Holders participating in such underwritten offering and to the Managing Underwriter, in form, substance and scope as are customarily made by the Company to underwriters in primary underwritten offerings
of equity and convertible debt securities; 
 (iii) in connection with any underwritten offering conducted pursuant to Section 8 hereof,
obtain opinions of counsel to the Company (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the Managing Underwriter) addressed to each requesting Notice Holder, covering such matters as are customarily
covered in opinions requested in primary underwritten offerings of equity and convertible debt securities and such other matters as may be reasonably requested by such Notice Holders and underwriters (it being agreed that the matters to be covered
by such opinions shall include, without limitation, as of the date of the opinion and as of the Effective Time or the date of the most recent post-effective amendment thereto, as the case may be, the absence from the Shelf Registration Statement and
the Prospectus, including the documents incorporated by reference therein, of an untrue statement of a material fact or the omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of the
Prospectus, in light of the circumstances under which they were made) not misleading); 
 (iv) in connection with any underwritten offering
conducted pursuant to Section 8 hereof, obtain “cold comfort” letters and updates thereof from the independent public accountants of the Company (and, if necessary, from the independent public accountants of any subsidiary of the
Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Shelf Registration Statement), addressed to each requesting Notice Holder (if such Notice Holder has
provided such letter, representations or documentation, if any, required for such cold comfort letter to be so addressed) and the underwriters, in customary form and covering matters of the type customarily covered in “cold comfort”
letters in connection with primary underwritten offerings; 
 (v) in connection with any underwritten offering conducted pursuant to
Section 8 hereof, deliver such documents and certificates as may be reasonably requested by any Notice Holders and the Managing Underwriter, if any, including without limitation certificates to evidence compliance with Section 3(j) hereof
and with any conditions contained in the underwriting agreement or other agreements entered into by the Company. 
  

	 	4.	Registration Expenses. 

 The Company shall bear all
fees, costs and expenses incurred in connection with the performance by the Company of all of its obligations under Sections 2 and 3 of this Agreement whether or not any of the Shelf Registration Statements are declared effective. Such fees, costs
and expenses shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with the Financial Industry Regulatory Authority, and
(B) of compliance with United States federal and 

  

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state securities or “blue sky” laws (including, without limitation, reasonable fees and disbursements of the counsel specified in the next sentence
in connection with “blue sky” qualifications of the Registrable Securities under the laws of such jurisdictions as a Majority of the Holders whose Registrable Securities are included in a Shelf Registration Statement may designate)),
(ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities in a form eligible for deposit with The Depository Trust Company), (iii) duplication expenses relating to copies of any
Shelf Registration Statement, Prospectus and other documents delivered to any Holder hereunder, (iv) fees and disbursements of counsel and independent accountants for the Company in connection with the Shelf Registration Statement, and
(v) reasonable fees and disbursements of the Trustee and its counsel and of the registrar and transfer agent for the Common Stock. In addition, the Company shall bear or reimburse the Notice Holders for the reasonable fees and disbursements of
one firm of legal counsel for the Holders, which shall be selected by written consent of a majority of the then current Holders and be a nationally recognized law firm experienced in securities law matters designated by the Company. In addition, the
Company shall pay the internal expenses of the Company (including, without limitation, all salaries and expenses of officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in
connection with the listing of the Registrable Securities on any securities exchange on which similar securities of the Company are then listed and the fees and expenses of any person, including special experts, retained by the Company. 

 

	 	5.	Indemnification and Contribution. 

 (a)
Indemnification by the Company. The Company shall indemnify and hold harmless each Holder, each Investor, any underwriter, each person, if any, who controls any such Holder, such Investor or any underwriter within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act and the respective officers, directors, partners, employees, representatives and agents of any such Holder, such Investor, any underwriter or any controlling person, from
and against any loss, claim, damage, liability, cost or expense whatsoever as incurred (including, but not limited to, attorneys’ fees and any and all expenses whatsoever incurred in investigating, preparing or defending against any litigation,
commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation), joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as any such loss, claim, damage, liability, cost or expense (or action in respect thereof) arises out of, or is based upon, any untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement or
any amendment thereto or supplement thereof or any related preliminary prospectus or the Prospectus or any amendment thereto or supplement thereof, or arises out of, or is based upon, the omission or alleged omission to state therein any material
fact required to be stated therein or necessary to make the statements therein, in light of the circumstance in which they were made, not misleading; provided, however, that the Company shall not be liable to any such indemnified party
in any such case to the extent that any such loss, claim, damage, liability, cost or expense arises out of, or is based upon, any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in
conformity with written information furnished to the Company by or on behalf of such indemnified party specifically for use therein; provided further, however, that the Company shall not be liable to any such indemnified party in any
such case to the extent that such loss, claim, damage, liability, cost or expense arises from an 

  

 - 12 - 

 
offer or sale by a Notice Holder of Registrable Securities during a Suspension Period, if such indemnified party is a Notice Holder that received from the
Company a notice of the commencement of such Suspension Period prior to the making of such offer or sale. The foregoing indemnity agreement is in addition to any liability that the Company may otherwise have to any indemnified party, and the Company
hereby confirms that it will indemnify the indemnified party with respect to any breach by the Company of its indemnity obligations hereunder. The Company shall not be liable under this Section 5(a) for any settlement of any action effected
without its written consent, which shall not be unreasonably withheld; provided, however, that with respect to actions pursuant to clauses (i), (ii) and (iii) of Section 5(c), no such consent shall be required. 
 (b) Indemnification by the Notice Holders. Each Notice Holder, severally and not jointly, shall indemnify and hold harmless the Company, each
Investor, each underwriter, each other Holder, each person, if any, who controls the Company, each Investor, any underwriter or another Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and the
respective officers, directors, partners, employees, representatives and agents of the Company, each Investor, any underwriter, any other Holder or any controlling person, from and against any loss, claim, damage, liability, cost or expense
whatsoever as incurred (including, but not limited to, attorneys’ fees and any and all expenses whatsoever incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and
all amounts paid in settlement of any claim or litigation), joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or otherwise, insofar as any such loss, claim, damage, liability, cost or
expense (or action in respect thereof) arises out of, or is based upon, any untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement or any amendment thereto or any related preliminary prospectus
or the Prospectus or any amendment thereto or supplement thereof, or arises out of, or is based upon, the omission or alleged omission to state therein, in light of the circumstances in which they were made, any material fact required to be stated
therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission made therein was made in reliance upon and
in conformity with written information furnished to the Company by or on behalf of such Notice Holder specifically for use therein. In no event shall the liability of any selling Notice Holder hereunder be greater in amount than the dollar amount of
the net proceeds received by such Notice Holder upon the sale of the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation. The foregoing indemnity agreement is in addition to any
liability that any Notice Holder may otherwise have to the Company, each Investor and any such other person. 
 (c) Notices of Claims,
Etc. Promptly after receipt by an indemnified party under this Section 5 of notice of any claim or the commencement of any action, the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under
this Section 5, notify the indemnifying party in writing of the claim or the commencement of that action; provided, however, that the failure to notify the indemnifying party shall not relieve it from any liability that it may have under
this Section 5. If any such claim or action shall be brought against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it wishes,
jointly with any other 

  

 - 13 - 

 
similarly notified indemnifying party, to assume the defense thereof with counsel satisfactory to the indemnified party. After notice from the indemnifying
party to the indemnified party of its election to assume the defense of such claim or action, the indemnifying party shall not be liable to the indemnified party under this Section 5 for any legal or other expenses subsequently incurred by the
indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that the indemnified party shall have the right to employ counsel to represent jointly the indemnified party and its
respective officers, directors, partners, employees, representatives, agents and controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be sought by the indemnified party against the
indemnifying party under this Section 5 if (i) employment of such counsel has been authorized in writing by the indemnifying party, or (ii) such indemnifying party shall not have employed counsel satisfactory to the indemnified party
to have charge of the defense of such proceeding within thirty (30) days of the receipt of notice thereof, or (iii) such indemnified party shall have reasonably concluded that the representation of such indemnified party and those
officers, directors, partners, employees, representatives, agents and controlling persons by the same counsel representing the indemnifying party would be inappropriate under applicable standards of professional conduct due to actual or potential
differing interests between them or where there may be one or more defenses available to them that are different from, additional to or in conflict with those available to the indemnifying party, and in any such event ((i), (ii) or (iii)) the
fees and expenses of such separate counsel shall be paid by the indemnifying party as incurred. It is understood that the indemnifying party shall not be liable for the fees and expenses of more than one separate firm (in addition to local counsel
in each jurisdiction) for all indemnified parties in connection with any proceeding or related proceedings. No indemnifying party shall, without the prior written consent of the indemnified parties, effect any settlement or compromise of, or consent
to the entry of judgment with respect to, any pending or threatened claim, investigation, action, suit or proceeding in respect of which indemnity or contribution may be or could have been sought hereunder (whether or not the indemnified party or
parties are actual or potential parties thereto) unless (A) such settlement, compromise or judgment (1) includes an unconditional release of such indemnified party from all liability arising out of such claim, investigation, action, suit
or proceeding, and (2) does not include a statement as to or an admission of fault, culpability or failure to act by or on behalf of any indemnified party, and (B) the indemnifying party confirms in writing its indemnification obligations
hereunder with respect to such settlement, compromise or judgment. 
 (d) Contribution. If the indemnification provided for in this
Section 5 is unavailable or insufficient to hold harmless an indemnified party under subsections (a) or (b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of
the losses, claims, damages, costs, expenses or liabilities (or actions in respect thereof) referred to in subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the
indemnifying party or parties on the one hand and the indemnified party on the other from the registration of the Registrable Securities pursuant to the Shelf Registration, or (ii) if the allocation provided by the foregoing clause (i) is
not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying party or parties on the one hand and the indemnified
party on the other in connection with the statements or omissions that resulted in such losses, claims, damages, costs, expenses or liabilities (or actions in respect thereof) as well as any other relevant equitable considerations. The relative
fault of 

  

 - 14 - 

 
the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Company on the one hand or such Holder or such other indemnified party, as the case may be, on the other, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. The amount paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to in the first sentence of this Section 5(d) shall be
deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any action or claim which is the subject of this Section 5(d). The Company and the Holders agree that it
would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to herein.
Notwithstanding any other provision of this Section 5(d), no Holder of the Registrable Securities shall be required to contribute any amount in excess of the amount by which the net proceeds received by such Holder from the sale of its
Registrable Securities pursuant to the Shelf Registration Statement exceeds the amount of damages which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this
Section 5(d), each officer, director, partner, employee, representative or agent of an indemnified party, and each person, if any, who controls such indemnified party within the meaning of the Securities Act or the Exchange Act, shall have the
same rights to contribution as such indemnified party and each officer, director, partner, employee, representative and agent of the Company, and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange
Act, shall have the same rights to contribution as the Company. The Holders’ respective obligations to contribute pursuant to this Section 5(d) are several in proportion to the respective amount of Registrable Securities they have sold
pursuant to a Shelf Registration Statement and not joint. The remedies provided for in this Section 5(d) are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity.

 (e) Survival. The indemnity and contribution provisions contained in this Section 5 shall remain operative and in full force
and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Investor, any underwriter, any Holder, any officer, director, partner, employee, representative or agent of any Investor,
any underwriter, or any Holder, or any person controlling any Investor, any underwriter or any Holder, or by or on behalf of the Company, its officers, directors, partners, employees, representatives or agents or any person controlling the Company,
and (iii) any sale of Registrable Securities pursuant to a Shelf Registration Statement. 
  

	 	6.	Holder’s Obligations. 

 Each Holder agrees, by
acquisition of the Registrable Securities, that no Holder of Registrable Securities shall be entitled to sell any of such Registrable Securities pursuant to a Shelf Registration Statement or to receive a Prospectus relating thereto, unless such
Holder has furnished the Company with a Notice and Questionnaire as required pursuant to Section 3(a) hereof (including all the information required to be included in such Notice and Questionnaire) 

  

 - 15 - 

 
and the information set forth in the next sentence. Each Notice Holder agrees to promptly furnish to the Company all information required to be disclosed in
order to make the information previously furnished to the Company by such Notice Holder not misleading and any other information regarding such Notice Holder and the distribution of such Registrable Securities as may be required to be disclosed in
the Shelf Registration Statement under applicable law, pursuant to comments from the Commission or as the Company may from time to time reasonably request. Any sale of any Registrable Securities by any Notice Holder shall constitute a representation
and warranty by such Notice Holder that the information relating to such Notice Holder and its plan of distribution is as set forth in the Prospectus delivered by such Notice Holder in connection with such disposition, that such Prospectus does not,
as of the time of such sale, contain any untrue statement of a material fact relating to such Notice Holder or its plan of distribution, and that such Prospectus does not, as of the time of such sale, omit to state any material fact relating to or
provided by such Notice Holder or its plan of distribution necessary in order to make the statements in such Prospectus, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the
extent, that such untrue statement or omission was made in reliance on and in conformity with written information furnished to the Company by or on behalf of such Notice Holder. 
  

	 	7.	Additional Interest. 

 (a) Notwithstanding any
postponement of the effectiveness of the Shelf Registration Statement pursuant to Section 2(a) hereof, if: 
 (i) on or prior to the
ninetieth (90th) day following the Exchange Date, such initial Shelf Registration Statement to provide for the offer and sale of the Registrable Securities by the Holders is not filed with the Commission, or 
 (ii) on or prior to the one-hundred eightieth (180th) day following the Exchange Date, such initial Shelf Registration Statement is not declared
effective by the Commission, or 
 (iii) after the effectiveness date of any Shelf Registration Statement, (A) such Shelf Registration
Statement ceases to be effective or usable for the offer and sale of Registrable Securities (other than due to a Suspension Period), and the Company fails to file (and have declared effective), within five (5) Business Days, a post-effective
amendment to such Shelf Registration Statement or amendment or supplement to the Prospectus contained therein or such other document with the Commission to make such Shelf Registration Statement effective or such Prospectus usable, or (B) the
Suspension Periods exceed sixty (60) calendar days, whether or not consecutive, in any 12-month calendar period, or 
 (iv) the Company
shall have failed to timely comply with any of its obligations set forth in Section 3(a)(ii) hereof, provided that such failure is not solely due to the failure of a Holder of Registrable Securities to perform its obligations set forth in
Section 3(a)(ii) hereof (each of (i) through (iv) a “Registration Default”), 
 the Company shall be required to pay
additional interest (“Additional Interest”), from and including the day following such Registration Default to but excluding the day on which such 

  

 - 16 - 

 
Registration Default is cured, at a rate per annum equal to an additional one-half of one percent per annum (0.50%) of the Applicable Amount for each 30-day
period following the date of a Registration Default. The Company shall notify the Trustee as promptly as possible, but in no event later than three (3) Business Days after each and any date on which a Registration Default occurs. The
requirement of the Company to pay Additional Interest ceases on the day such Registration Default is cured. 
 (b) In the case of a
Registration Default described in Sections 7(a)(i)-(iii) above, Additional Interest, if any, shall be payable only to Notice Holders of the Securities and, in respect of a Registration Default described in Section 7(a)(iv) above,
Additional Interest, if any, shall be payable only to Notice Holders of the Securities to whom such Registration Default relates. 
 (c) Any
amounts to be paid as Additional Interest pursuant to paragraph (a) of this Section 7 shall be paid by wire transfer of immediately available funds or by federal funds check on the first interest payment date in respect of the Registrable
Securities following the date on which such Additional Interest begins to accrue. 
 (d) Except as provided in Section 7(a) and 10(a)
hereof, the Additional Interest as set forth in this Section 7 shall be the exclusive cash remedy available to the Holders of Registrable Securities for such Registration Default. In no event shall the Company be required to pay Additional
Interest in excess of the applicable maximum amount of four and one-half percent (4.5%) per annum as set forth above, or twelve percent (12%) per annum when combined with the stated interest on the Securities, regardless of whether one or
multiple Registration Defaults exist. 
  

	 	8.	Underwritten Offering. 

 Any holder of Registrable
Securities who desires to do so may sell Registrable Securities (in whole or in part) in an underwritten offering; provided, however, the Company shall not be required to facilitate an underwritten offering pursuant to the Shelf
Registration Statement by any holders unless the offering relates to at least $10,000,000 principal amount of Securities or the equivalent number of shares of Common Stock in which such Securities are convertible. In any such underwritten offering,
the investment banker or investment bankers and manager or managers (the “Managing Underwriter”) that will administer the offering will be selected by, and the underwriting arrangements with respect thereto (including the
size of the offering) will be approved by, the holders of a majority of the Registrable Securities to be included in such offering; provided, however, that such investment bankers and managers and underwriting arrangements must be
reasonably satisfactory to the Company. No holder may participate in any underwritten offering contemplated hereby unless (a) such holder agrees to sell such holder’s Registrable Securities to be included in the underwritten offering in
accordance with any approved underwriting arrangements, (b) such holder completes and executes all reasonable questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up letters and other documents required under the terms
of such approved underwriting arrangements and (c) if such holder is not then an Notice Holder, such holder returns a completed and signed Notice and Questionnaire to the Company in accordance with Section 3(a)(ii) hereof within a
reasonable amount of time before such underwritten offering. The holders participating in any underwritten 

  

 - 17 - 

 
offering shall be responsible for any underwriting discounts and commissions and fees and, subject to Section 4 hereof, expenses of their own counsel.
The Company shall pay all expenses customarily borne by issuers, including but not limited to filing fees, the fees and disbursements of its counsel and independent public accountants and any printing expenses incurred in connection with such
underwritten offering. Notwithstanding the foregoing or the provisions of Section 3(n) hereof, upon receipt of a request from the Managing Underwriter or a representative of holders of a majority of the Registrable Securities to be included in
an underwritten offering to prepare and file an amendment or supplement to the Shelf Registration Statement and Prospectus in connection with an underwritten offering, the Company may delay the filing of any such amendment or supplement for up to
sixty (60) days if the Company is in possession of material non-public information the disclosure of which would have a material adverse effect on the business, operations, prospects, condition (financial or otherwise) of the Company and its
subsidiaries, taken as a whole. 
  

	 	9.	Rule 144 and 144A. 

 The Company covenants to the
Holders of the Registrable Securities that the Company shall use its best efforts to make available, upon request of any holder of Registrable Securities, to such holder or beneficial owner of Registrable Securities in connection with any sale
thereof and any prospective purchaser of such Registrable Securities designated by such holder or beneficial owner, the information required by Rule 144A(d)(4) under the Securities Act in order to permit resales of such Registrable Securities
pursuant to Rule 144A of the Securities Act, and to timely file the reports required to be filed by it under the Exchange Act or the Securities Act (including the reports under Section 13 and 15(d) of the Exchange Act referred to in
subparagraph (c)(1) of Rule 144 of the Securities Act) and the rules and regulations adopted by the Commission thereunder, all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under
the Securities Act within the limitations of the exemption provided by Rule 144 under the Securities Act, as such may be amended from time to time, or any similar or successor rule or regulation hereafter adopted by the Commission. Upon the request
of any Holder of Registrable Securities in connection with that Holder’s sale pursuant to Rule 144, the Company shall deliver to such Holder a written statement as to whether it had complied with such requirements. 
  

	 	10.	Miscellaneous. 

 (a) Specific Performance.
The parties hereto acknowledge that there would be no adequate remedy at law if the Company fails to perform any of its obligations hereunder and that the Investors and the Holders from time to time may be irreparably harmed by any such failure, and
accordingly agree that such Investors and such Holders, in addition to any other remedy to which they may be entitled at law or in equity and without limiting the remedies available to the Notice Holders under Section 7 hereof, shall be
entitled to compel specific performance of the obligations of the Company under this Agreement in accordance with the terms and conditions of this Agreement, in any court of the United States or any State thereof having jurisdiction. 
 (b) Amendments and Waivers. This Agreement, including this Section 10(b), may be amended, and waivers or consents to departures from the
provisions hereof may be given, only by a written instrument duly executed by the Company and a Majority of Holders. Each Holder 

  

 - 18 - 

 
of Registrable Securities outstanding at the time of any such amendment, waiver or consent or thereafter shall be bound by any amendment, waiver or consent
effected pursuant to this Section 10(b), whether or not any notice, writing or marking indicating such amendment, waiver or consent appears on the Registrable Securities or is delivered to such Holder. 
 (c) Other Registration Rights. The Company will not, on or after the date of this Agreement, enter into any agreement with respect to its
securities that is inconsistent with the rights granted to the holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof. The Company shall not permit any securities other than the Registrable Securities
to be included in any Shelf Registration Statement without consent of a majority of the then current Holders. The rights granted to the holders of Registrable Securities hereunder do not in any way conflict with and are not inconsistent with the
rights granted to the holders of the Company’s securities under any agreement in effect on the date hereof. 
 (d) Third Party
Beneficiary. The holders of Registrable Securities shall be third party beneficiaries to the agreements made hereunder between the Company, on the one hand, and the Purchasers and the Investors, on the other hand, and shall have the right to
enforce such agreements directly to the extent they may deem such enforcement necessary or advisable to protect its rights or the rights of holders of Registrable Securities hereunder. 
 (e) Notices. All notices and other communications provided for or permitted hereunder shall be made in writing, shall be delivered by hand
delivery, by telecopier, by courier guaranteeing overnight delivery or by first-class mail, return receipt requested, and shall be deemed given (i) when made, if made by hand delivery, (ii) upon confirmation, if made by telecopier
(provided notice is also given by some other means permitted by this Section 10(e)), (iii) one Business Day after being deposited with such courier, if made by overnight courier, or (iv) on the date indicated on the notice of receipt,
if made by first-class mail, to the parties as follows: 
  

	 	(x)	if to a Holder of Registrable Securities, at the most current address given by such Holder to the Company in a Notice and Questionnaire or any amendment thereto;

  

	 	(y)	if to the Company, to: 

 Cell Therapeutics, Inc.

 201 Elliott Avenue West, Suite 400 
 Seattle, Washington 98119 
 Attention: Louis A. Bianco 
 Telephone: (206) 282-7100 
 Facsimile:
(206) 272-4397 
 with a copy to: 
 Heller Ehrman LLP 
 333 Bush Street 
 San Francisco, California 94104 
 Attention: Karen Dempsey, Esq. 
 Facsimile: (415) 772-6268 
  

 - 19 - 

	 	(z)	if to the Investors, to the address of each Investor set forth on Schedule I hereto, with a copy to such counsel as they may indicate on Schedule I hereto; 

or to such other address as such person may have furnished to the other persons identified in this Section 10(e) in writing in accordance herewith. 

(f) Parties in Interest. The parties to this Agreement intend that all Holders of Registrable Securities shall be entitled to receive the
benefits of this Agreement and that any Notice Holder shall be bound by the terms and provisions of this Agreement by reason of such election with respect to the Registrable Securities which are included in a Shelf Registration Statement. All of the
terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the respective successors and assigns of the parties hereto and any Holder from time to time of the Registrable Securities to the
aforesaid extent. In the event that any transferee of any Holder of Registrable Securities shall acquire Registrable Securities, in any manner, whether by gift, bequest, purchase, operation of law or otherwise, such transferee shall, without any
further writing or action of any kind, be entitled to receive the benefits of and, if a Notice Holder, be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement to the aforesaid extent.

 (g) Addition of Authorized Parties to this Agreement. Without the consent or affirmative vote of any Investors, the Company may
amend this Agreement to add additional parties to this Agreement, upon entering into an authorized supplemental indenture to permit such parties who are holders of Existing Subordinated Notes and Existing 2002 Senior Subordinated Notes (as such
terms are defined in the Indenture) to exchange those Notes for Securities issued under the Indenture on substantially the terms and conditions set forth in the Exchange Agreement. 
 (h) Counterparts; Facsimile Signatures. This Agreement may be executed in any number of counterparts and by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Facsimile signatures shall constitute original signatures for all purposes of this Agreement.

 (i) Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the
meaning hereof. 
 (j) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of
New York, without giving effect to any provisions relating to conflicts of law. 
 (k) Severability. In the event that any one or more
of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and
of the remaining provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties hereto shall be enforceable to the fullest extent permitted by law. 
  

 - 20 - 

 (l) Survival. The respective indemnities, agreements, covenants, representations, warranties and
other provisions set forth in this Agreement or made pursuant hereto shall remain in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of any Investor, any Holder, or any
officer, director, partner, employee, representative or agent of such Investor or Holder, any agent or underwriter, any officer, director, partner, employee, representative or agent of such agent or underwriter, or any controlling person of any of
the foregoing, and shall survive the transfer and registration of the Registrable Securities of such Holder. 
  

	 	11.	Submission to Jurisdiction; Appointment of Agent for Service. 

 The Company agrees that any suit, action or proceeding against the Company arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in any state or federal court in The
City of New York, New York, and waives any objection which it may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive jurisdiction of such courts in any suit, action or proceeding. The
Company expressly accepts the non-exclusive jurisdiction of any such court in respect of any such suit, action or proceeding. The Company agrees that a final judgment in any such proceeding brought in any such court shall be conclusive and binding
thereupon and may be enforced in any other court in the jurisdiction to which the Company is or may be subject by suit upon such judgment. 
 [Remainder of Page Intentionally Left Blank] 
  

 - 21 - 

 Please confirm that the foregoing correctly sets forth the agreement between the Company and you.

  

			
	Very truly yours,
	
	Cell Therapeutics, Inc.
		
	By:	 	  

	Name:	 	Louis A. Bianco
	Title:	 	Executive VP, Finance & Administration

 Accepted as of the date hereof: 
 [INVESTOR] 
  

			
	By:	 	  

	Name:	 	
	Title:	 	

 [Signature Page to Registration Rights Agreement] 
  

 - 22 - 

 APPENDIX A 
 CELL THERAPEUTICS, INC. 
 FORM OF NOTICE OF REGISTRATION STATEMENT AND SELLING 
 SECURITYHOLDER ELECTION AND QUESTIONNAIRE 
 [5.75]% CONVERTIBLE SENIOR NOTES DUE 2011 
 NOTICE 
 Cell Therapeutics, Inc. (the “Company”) has filed, or intends shortly to file, with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-3 or such other Form
as may be available (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 [5.75]% Convertible Senior Notes due
2011 (CUSIP No. [            ]) (the “Notes”), and common stock, no par value (the “Common Stock”), issuable upon conversion of the Notes (the “Shares”
and together with the Notes, the “Transfer Restricted Securities”) in accordance with the terms of the Registration Rights Agreement, dated as of December 11, 2007 (the “Registration Rights Agreement”), between the Company
and the investors signatory thereto. A copy of the Registration Rights Agreement is available from the Company. All capitalized terms not otherwise defined herein have the meanings ascribed thereto in the Registration Rights Agreement. 

To sell or otherwise dispose of any Transfer Restricted Securities pursuant to the Shelf Registration Statement, a beneficial owner of Transfer
Restricted Securities generally will be required to be named as a Selling Securityholder in the related Prospectus, deliver a Prospectus to purchasers of Transfer Restricted Securities, be subject to certain civil liability provisions of the
Securities Act and be bound by those provisions of the Registration Rights Agreement applicable to such beneficial owner (including certain indemnification rights and obligations, as described below). To be included in the Shelf Registration
Statement, this Notice and Questionnaire must be completed, executed and delivered to the Company at the address set forth herein for receipt prior to or on the 20th calendar day from the receipt hereof (the “Notice and Questionnaire
Deadline”). Beneficial Owners that do not complete and return this Notice and Questionnaire prior to the Notice and Questionnaire Deadline and deliver it to the Company as provided below will not be named as Selling Securityholders in the Shelf
Registration Statement and, therefore, will not be permitted to sell any Transfer Restricted Securities pursuant to the Shelf Registration Statement. 
 Certain legal consequences arise from being named as a Selling Securityholder in the Shelf Registration Statement and the related Prospectus. Accordingly, holders and beneficial owners of Transfer Restricted
Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a Selling Securityholder in the Shelf Registration Statement and the related Prospectus. 

 ELECTION 
 The undersigned holder (the “Selling Securityholder”) of Transfer Restricted Securities hereby elects to include in the Shelf Registration Statement the Transfer Restricted Securities beneficially owned by
it and listed below in Item III (unless otherwise specified under Item III). The undersigned, by signing and returning this Notice and Questionnaire, understands that it will be bound with respect to such Transfer Restricted Securities by the terms
and conditions of this Notice and Questionnaire and the Registration Rights Agreement. 
 Pursuant to the Registration Rights Agreement, the
Selling Securityholder has agreed to indemnify and hold harmless the Company, any underwriter, each other Holder, their respective officers, directors, partners, employees, representatives and agents, and each person, if any, who controls the
Company, any underwriter and any other Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against certain losses arising in connection with statements concerning the Selling
Securityholder made in the Shelf Registration Statement or the related Prospectus in reliance upon the information provided in this Notice and Questionnaire. 
 The Selling Securityholder hereby provides the following information and represents and warrants that such information is accurate and complete: 
 QUESTIONNAIRE 
  

	I.	A. Full Legal Name of Selling Securityholder: 

 B. Full
legal name of registered holder (if not the same as (a) above) through which Transfer Restricted Securities listed in (3) below are held: 
  

			
	  
	  	

 C. Full legal name of DTC participant (if applicable and if not the same as (b) above)
through which Transfer Restricted Securities listed in Item III are held: 
  

			
	  
	  	

 D. Taxpayer identification or social security number of Selling Securityholder: 
  

			
	  
	  	

 II. Address for notices to Selling Securityholder: 
  

			
	  
	  	
	  
	  	

  

			
	Telephone:	 	  

	Fax:	 	  

  

 - 2 - 

			
	Email:	 	  

	Contact Person:	 	  

  

	III.	Beneficial ownership of Transfer Restricted Securities: 

 A. Type of Transfer Restricted Securities beneficially owned, and principal amount of Notes or number of shares of Common Stock, as the case may be, beneficially owned: 
  

			
	  
	  	

 B. CUSIP No(s). of such Transfer Restricted Securities beneficially owned: 
  

			
	  
	  	

 C. Amount of Transfer Restricted Securities that the undersigned wishes to be included in the
Shelf Registration Statement: 
  

			
	  
	  	

  

	IV.	Beneficial ownership of the Company’s securities owned by the Selling Securityholder: 

 EXCEPT AS SET FORTH BELOW IN THIS ITEM IV, THE UNDERSIGNED IS NOT THE BENEFICIAL OR REGISTERED OWNER OF ANY SECURITIES OF THE COMPANY OTHER THAN THE
TRANSFER RESTRICTED SECURITIES LISTED ABOVE IN ITEM III (“Other Securities”). 
 A. Type and amount of Other Securities
beneficially owned by the Selling Securityholder: 
  

			
	  
	  	

 B. CUSIP No(s). of such Other Securities beneficially owned: 
  

			
	  
	  	

  

	V.	Relationship with the Company: 

 Except as set forth below,
neither the undersigned 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 its predecessors or affiliates) during
the past three years. 
 State any exception here: 

			
	  
	  	
	  
	  	
	  
	  	

  

 - 3 - 

	VI.	Nature of the Selling Securityholder: 

 (a) Identify any
natural person or other person having voting and investment control over the Company securities owned by the Selling Securityholder. 
  

			
	  
	  	

 Is the Selling Securityholder a reporting company under the Exchange Act, a majority owned
subsidiary of a reporting company under the Exchange Act or a registered investment company under the Investment Company Act? If so, please state which one. 
  

			
	  
	  	

 If the entity is a majority owned subsidiary of a reporting company, identify the majority
stockholder that is a reporting company. 
 (b) Is the Selling Securityholder a registered broker-dealer? 
          ̈  Yes              ̈  No 
 If yes, state whether the Selling Securityholder received the Transfer Restricted Securities as compensation for underwriting activities and, if so,
provide a brief description of the transaction(s) involved. 
  

			
	  
	  	

 State whether the Selling Securityholder is an affiliate of a broker-dealer and if so, list the
name(s) of the broker-dealer affiliate(s). For the purposes of this Item VI(b), an “affiliate” of a broker-dealer includes any company that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under
common control with, such broker-dealer, and does not include individuals employed by any such broker-dealers or by their affiliates. 
          ̈  Yes              ̈  No 
 If the answer is “Yes”, you must answer the following: 
 If the Selling Securityholder is an affiliate of a registered broker-dealer, the Selling Securityholder purchased the Transfer Restricted Securities (i) in the ordinary course of business, and (ii) at the
time of the purchase of the Transfer Restricted Securities, had no agreements or understanding, directly or indirectly, with any person to distribute the Transfer Restricted Securities. 
          ̈  Yes              ̈  No 
 If the answer is “No”, state any exceptions here: 
 If the answer is “No”, this may affect your ability to be included in the Shelf Registration Statement. 
  

 - 4 - 

 VII. Plan of Distribution: 
 Except as set forth below, the undersigned (including its donees or pledgees) intends to distribute the Transfer Restricted Securities listed above in Item III pursuant to the Shelf Registration Statement only as
follows (if at all). Such Transfer Restricted Securities may be sold from time to time directly by the undersigned or, alternatively, through underwriters, broker-dealers or agents. If the Transfer Restricted Securities are sold through underwriters
or broker-dealers, the Selling Securityholder will be responsible for underwriting discounts or commissions or agent’s commissions. Such Transfer Restricted Securities may be sold in one or more transactions at fixed prices, at prevailing
market prices at the time of sale, at varying prices determined at the time of sale, or at negotiated prices. Such sales may be effected in transactions (which may involve crosses or block transactions): 
 1. on any national securities exchange or quotation service on which the Transfer Restricted Securities may be listed or quoted at the time of sale;

 2. in the over-the-counter market; 
 3. in transactions otherwise than on such exchanges or services or in the over-the-counter market; or 
 4. through the writing of
options. 
 In connection with sales of the Transfer Restricted Securities or otherwise, the undersigned may enter into hedging transactions
with broker-dealers, which may in turn engage in short sales of the Transfer Restricted Securities and deliver Transfer Restricted Securities to close out such short positions, or loan or pledge Transfer Restricted Securities to broker-dealers that
in turn may sell such securities. State any exceptions here: 
  

			
	  
	  	
	  
	  	

 By signing below, the Selling Securityholder acknowledges that it understands its obligation to
comply, and agrees it will comply, with the prospectus delivery requirements and other provisions of the Securities Act and Exchange Act and the respective rules and regulations promulgated thereunder, particularly Regulation M thereunder (or any
successor rules or regulations), in connection with any offering of Transfer Restricted Securities pursuant to the Shelf Registration Statement. 
 If the Selling Securityholder transfers all or any portion of the Transfer Restricted Securities listed in Item III 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 Notice and Questionnaire and the Registration Rights Agreement and agrees to deliver a notice of such transfer to the Trustee and the Company (i) in 

  

 - 5 - 

 
the case of a transfer of the Notes or the shares of Common Stock issuable upon conversion of the Notes, in substantially the form attached as Exhibit 1 to
this Notice and Questionnaire, or (ii) in the case of a transfer of shares of Common Stock issuable upon conversion of the Warrants, in substantially the form attached as Exhibit 2 to this Notice and Questionnaire. 
 By signing below, the Selling Securityholder consents to the disclosure of the information contained herein in its answers to Items I through VI above
and the inclusion of such information in the Shelf Registration Statement and the related Prospectus. The Selling Securityholder understands that such information will be relied upon by the Company in connection with the preparation or amendment of
the Shelf Registration Statement and the related Prospectus. 
 In accordance with the Selling Securityholder’s obligation under the
Registration Rights Agreement to provide such information as may be required by law for inclusion in the Shelf Registration Statement, 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 and pursuant to the Registration Rights Agreement shall be made in writing at the address set
forth below. 
 Once this Notice and Questionnaire is executed by the Selling Securityholder and received by the Company, the terms of this
Notice and 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 Transfer Restricted Securities beneficially owned by such Selling Securityholder and listed in Item III above. It shall be governed by, and construed in accordance with, the laws of the State of New
York without regard to the conflict of laws provisions thereof. 
 IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused
this Notice and Questionnaire to be executed and delivered either in person or by its authorized agent. 
 Dated: 
  

			
	BENEFICIAL OWNER
	
	  

		
	By:	 	  

	Name:	 	
	Title:	 	

  

 - 6 - 

 Please return the completed and executed Notice and Questionnaire for receipt prior to or on the 20th calendar day from
receipt hereof to: 
 Cell Therapeutics, Inc. at: 
 201 Elliott Avenue West, Suite 400 
 Seattle, Washington 98119 
 Attention: Louis A. Bianco 
 with a copy to:

 Heller Ehrman LLP at: 
 333 Bush Street San
Francisco, California 94104 
 Attention: Karen Dempsey, Esq. 
  

 - 7 - 

 EXHIBIT 1 TO NOTICE AND QUESTIONNAIRE 
 NOTICE OF TRANSFER PURSUANT 
 TO REGISTRATION STATEMENT 
 Cell Therapeutics, Inc. 
 201 Elliott Avenue West, Suite 400 
 Seattle, Washington 98119 
  

	Re:	Cell Therapeutics, Inc. 

 [5.75]% Convertible Senior Notes
due 2011 (the “Notes”) 
 Ladies and Gentlemen: 
 Please be advised                      that has transferred
$             aggregate principal amount of the above-referenced Notes or              shares of the Company’s
common stock issued on conversion or repurchase of Notes, pursuant to the Registration Statement on Form S-3 (File No. 333-             ) filed by the Company. 
 We hereby certify that the prospectus delivery requirements, if any, of the Securities Act of 1933, as amended, have been satisfied with respect to the
transfer described above and that the above named beneficial owner of the Notes or common stock is named as a selling securityholder in the Prospectus, dated
                    , or in amendments or supplements thereto, and that the aggregate principal amount of the Notes or number of shares of
common stock transferred are [all] [a portion of] the Notes or common stock listed in such Prospectus, as amended or supplemented, opposite such owner’s name. 
  

			
	Very truly yours,
		
	[name]	 	
		
	By:	 	  

		 	(Authorized Signature)

 Dated:Form of Exchange Agreement

 Exhibit 10.1 
 FORM OF EXCHANGE AGREEMENT 
 This
Exchange Agreement (this “Agreement”) is made and entered into as of this 12th day of December, 2007, by and between
                     (the “Holder”), and Cell Therapeutics, Inc., a Washington corporation (the “Company”).

 RECITALS 
 [WHEREAS, the Holder currently holds $             principal amount of the Company’s 5.75% Convertible Subordinated Notes of the Company due June 15, 2008 (the
“Outstanding Notes”); ] 
 [WHEREAS, the Holder currently holds
$             principal amount of the Company’s 5.75% Convertible Senior Subordinated Notes of the Company due June 15, 2008 (the “Outstanding Notes”);]

 WHEREAS, the Holder desires to exchange the Outstanding Notes for the Company’s [5.75]% Convertible Senior Notes due [December 15],
2011 (the “Exchange Notes”) and shares of the Company’s common stock, no par value (the “Common Shares”), on the terms and conditions set forth in this Agreement (the “Note Exchange”);

 WHEREAS, the Company desires to issue to the Holder
$             principal amount of Exchange Notes and          Common Shares in exchange for the Outstanding Notes in the Note
Exchange; 
 WHEREAS, the board of directors of the Company has authorized the issuance of the Exchange Notes to be issued pursuant to the
Indenture dated December 12, 2007, entered into by the Company and the trustee (the “Trustee”) named therein (the “Indenture”), substantially in the form of Exhibit A hereto; and 
 WHEREAS, in connection with the issuance of the Exchange Notes the Company will agree to provide the Holder registration rights pursuant to the
Registration Rights Agreement, to be entered into by the Company, the Holder and the other holders of Outstanding Notes exchanging such notes for Exchange Notes (the “Registration Rights Agreement”), substantially in the form of Exhibit
B hereto. 
 NOW, THEREFORE, in consideration of the premises and the agreements set forth below, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 ARTICLE I 
 Exchange 
 Section 1.1 Exchange
and Sale of the Exchange Notes. Upon the terms and subject to the conditions of this Agreement, at the Closing (as defined herein), the Company shall issue and exchange, subject to Section 1.2 hereof, to the Holder, and the Holder agrees to
accept from the 

  

 - 1 - 

 
Company, $             in aggregate principal amount of Exchange Notes and
             Common Shares for $             aggregate principal amount of Outstanding Notes, as set forth in
Schedule 1. 
 Section 1.2 Cancellation of Outstanding Notes. Pursuant to Section 2.10 of each indenture (the
“Relevant Indenture”) relating to the Outstanding Notes, Holder hereby agrees to deliver such Holder’s Outstanding Notes to the Trustee for cancellation in connection with the Note Exchange. Holder acknowledges that the cancellation
of the Outstanding Notes shall have the effects specified in the Relevant Indenture governing the applicable Outstanding Notes. 
 Section 1.3 Private Placement. In consideration of and for such Note Exchange, the Company agrees to issue Holder that number of Exchange Notes and Common Shares set forth on Schedule I hereto. The issuance of the Exchange Notes
and Common Shares to Holder will be made without registration of the Exchange Notes or Common Shares under the Securities Act of 1933, as amended (together with the rules and regulations thereunder, the “Securities Act”), in
reliance upon the exemption therefrom provided by Section 4(2) of the Securities Act and in reliance on similar exemptions under state securities or “blue sky” laws. Holder acknowledges that the Company is relying upon the truth and
accuracy of, and the Holder’s compliance with, its representations, warranties, agreements, acknowledgments and understandings set forth herein in order to determine the availability of such exemptions and the eligibility of the Holder for the
Note Exchange. 
 Section 1.4 Registration Rights. Concurrently with the execution and delivery hereof, the Company and Holder
will enter into a Registration Rights Agreement in substantially the form of Exhibit B hereto (the “Registration Rights Agreement”). Holder and its direct and indirect transferees of the Securities will be entitled to the benefits
of the Registration Rights Agreement, pursuant to which the Company will agree, among other things, to file (i) a registration statement (the “Registration Statement”) on the appropriate form with the Securities and Exchange
Commission (the “Commission”) registering the resale of the Securities under the Securities Act, and (ii) to use its best efforts to cause any such Registration Statement to be declared effective. 
 Section 1.5 Closing Mechanics. The closing of the transactions contemplated by this Agreement shall occur at the offices of Heller Ehrman
LLP, 333 Bush Street, San Francisco, California 94104, or such other location as may be mutually acceptable in each case at 9:00 a.m., San Francisco time, on December 12, 2007 or at such other time on the same date or such other date as the
parties may agree in writing (such time and date, the “Closing Date”). Prior to the Closing Date and pursuant to the terms of the indenture governing the Exchange Notes, the Company shall cause the Trustee to register one or more
global securities representing the Exchange Notes in the name of Cede & Co., the nominee of the Depositary Trust Company (“DTC”), and Holder shall instruct its broker or other participant in the DTC Fast Automated
Securities Transfer Program to transfer and deliver the Outstanding Notes to the Trustee via a “one-sided withdrawal”. On the Closing Date, the Company shall cause the Trustee to credit such aggregate amount of Exchange Notes to such
Holder’s or its designee’s balance account, as set forth on Schedule I attached hereto; provided, however, that the Holder acknowledges that the issuance of the Exchange Notes or Common Shares may be delayed due to procedures and mechanics
within the system of the DTC and that such delay will not be a default under this 

  

 - 2 - 

 
Agreement so long as (i) the Company is using its best efforts to effect the issuance of one or more global notes, (ii) such delay is no longer
than three (3) business days and (iii) interest shall accrue on such Exchange Notes from the date of the Indenture. On the Closing Date the Company shall cause its transfer agent to credit the amount of Common Shares to the Holder’s
or its designee’s balance account, as set forth on Schedule I attached hereto. 
 Section 1.6 Conditions to Closing.
(i) The obligation of the Holder hereunder to consummate the transactions contemplated hereby at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are
for the Holder’s sole benefit and may be waived by the Holder at any time in its sole discretion by providing the Company with prior written notice thereof: 
 (a) The Company and the Trustee shall have executed and delivered the Indenture; 
 (b) The Company shall
have executed and delivered the Exchange Notes in the aggregate principal amount and the Shares in the amounts set forth in Section 1.1; or, if delivery through DTC is delayed as set forth in Section 1.5 above, such Exchange Notes shall be
delivered to Holder no later than three (3) business days after the Closing Date. 
 (c) The Company shall have executed and delivered
the Registration Rights Agreement; 
 (d) The Company shall have submitted an additional share listing application for the shares of common
stock, no par value (the “Common Stock”), of the Company issuable upon conversion of the Exchange Notes and the Common Shares with the Nasdaq Global Market and shall cause the shares of Common Stock issuable upon conversion of the
Exchange Notes and the Common Shares to be approved by the Nasdaq Global Market for listing no later than 15 days after the Closing; 
 (e)
The Company shall have delivered to the Holder a certificate of the Company, dated the Closing Date, executed by an officer of the Company certifying in such capacity and on behalf of the Company (i) as to the incumbency and signature of the
officer of the Company who executed this Agreement and the Exchange Notes, (ii) as to the adoption of resolutions of the board of directors of the Company which are in full force and effect on the Closing Date, authorizing the execution and
delivery of this Agreement, the Indenture, the Registration Rights Agreement, the Exchange Notes, and the Common Shares; 
 (f) The Company
shall have delivered to the Holder a certificate of an officer of the Company, dated the Closing Date, to the effect that the representations and warranties of the Company in this Agreement that are qualified as to materiality are true and correct
as so qualified and all representations and warranties of the Company in this Agreement that are not so qualified are true and correct in all material respects, in each case, on and as of the Closing Date with the same effect as if made on the
Closing Date and that the Company has complied in all material respects with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to the Closing Date; 
  

 - 3 - 

 (g) Subsequent to the execution and delivery of this Agreement and prior to the Closing Date, there shall
have been no suspension or material limitation of trading in the Common Stock on the Nasdaq Global Market; 
 (h) The Exchange Notes and the
Common Shares satisfy the requirements set forth in Rule 144A(d)(3) under the Securities Act (as defined below); and 
 (ii) The obligation
of the Company hereunder to consummate the transactions contemplated hereby at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s
sole benefit and may be waived by the Company at any time in its sole discretion by providing the Holder with prior written notice thereof: 
 (a) Holder shall have executed and delivered to the Company the Registration Rights Agreement; 
 (b) The Holder shall have delivered, or caused to be delivered, to the Company (i) the Outstanding Notes being exchanged pursuant to this Agreement in accordance with the written instructions of the Company and (ii) all
documentation related to the right, title and interest in and to all of the Outstanding Notes, and whatever documents of conveyance or transfer may be necessary or reasonably desirable to transfer to and confirm in the Company all right, title and
interest in and to (free and clear of any mortgage, lien, pledge, charge, security interest, encumbrance, title retention agreement, option, equity or other adverse claim thereto) the Outstanding Notes; 
 (c) The representations and warranties of the Holder in this Agreement shall be true and correct in all material respects on and as of the
Closing Date with the same effect as if made on the Closing Date and that the Holder shall have complied in all material respects with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to the
Closing Date; 
 Section 1.7 Exchange of Additional Notes. Simultaneously with or after the Closing, the Company may issue, to
one or more other holders of Outstanding Notes (the “Other Holders”), subject to the terms of the Indenture, Exchange Notes on substantially the same terms and conditions offered to the Holder. 
 ARTICLE II 
 Representations and
Warranties of the Holder 
 The Holder hereby makes the following representations and warranties, each of which is true and correct on
the date hereof and the Closing Date and shall survive the Closing Date and the transactions contemplated hereby to the extent set forth herein. 
 Section 2.1 Existence and Power. 
 (a) The Holder is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization and has the power, authority and capacity to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate the transactions contemplated hereby. 
  

 - 4 - 

 (b) The execution of this Agreement by the Holder and the consummation by the Holder of the transactions
contemplated hereby do not and will not constitute or result in a breach, violation, conflict or default under any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license to which the Holder is a party, whether
written or oral, express or implied, or any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body on
the part of the Holder or on the part of any other party thereto or cause the acceleration or termination of any obligation or right of the Holder, except for such breaches, conflicts, defaults, rights or violations which would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect on the ability of the Holder to perform its obligations hereunder. As used in this Agreement, the term “Material Adverse Effect” shall mean a material
adverse effect on the business, condition (financial or otherwise), properties or results of operations of the party, or would materially adversely affect the ability of the party to perform its obligations under this Agreement, the Indenture, the
Registration Rights Agreement and the Exchange Notes. 
 Section 2.2 Valid and Enforceable Agreement; Authorization. This
Agreement has been duly executed and delivered by the Holder and constitutes a legal, valid and binding obligation of the Holder, enforceable against the Holder in accordance with its terms, except that such enforcement may be subject to
(a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity. 
 Section 2.3 Title to Outstanding Notes. The Holder is the sole legal and beneficial owner of and has good and valid title to the Outstanding
Notes in the aggregate principal amount set forth in Section 1.1, free and clear of any mortgage, lien, pledge, charge, security interest, encumbrance, title retention agreement, option, equity or other adverse claim thereto. The Holder has
not, in whole or in part, (i) assigned, transferred, hypothecated, pledged or otherwise disposed of the Outstanding Notes or its rights in such Outstanding Notes, or (ii) given any person or entity any transfer order, power of attorney or
other authority of any nature whatsoever with respect to such Outstanding Notes. The Holder has acquired all Outstanding Notes in compliance with all applicable securities laws. 
 Section 2.4 Investment Decision. The Holder is either (i) a “qualified institutional buyer” within the meaning of Rule 144A
under the Securities Act or (ii) an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act, and in either case was not organized for the purpose of acquiring the Exchange Notes or the shares of
the Common Stock, into which the Exchange Notes may be converted (the “Underlying Common Stock”). The Holder (or its authorized representative) is familiar with the Company’s objectives and business plan, has had the
opportunity to review the Company’s filings with the Commission, including, without limitation, the Company’s Annual Report on Form 10-K filed on March 16, 2007 and amended by Form 10-K/A filed on April 30, 2007, the
Company’s Quarterly Reports on Form 10-Q filed on each of May 10, 2007, August 9, 2007 and November 9, 1007, the Company’s Definitive Proxy Statement filed on August 28, 2007, the Company’s Preliminary 

  

 - 5 - 

 
Proxy Statement filed on November 30, 2007 and the Company’s Current Reports on Form 8-K filed on January 23, 2007, January 29,
2007, January 30, 2007, February 6, 2007, February 12, 2007, February 14, 2007, March 15, 2007, March 30, 2007, April 16, 2007, April 27, 2007, May 2,
2007, July 27, 2007, August 6, 2007, August 8, 2007, August 21, 2007, August 22, 2007, August 29, 2007, September 25, 2007, October 15, 2005, November 8, 2007,
and December 3, 2007 (all of such filings with the Commission referred to, collectively, as the “SEC Documents”). 
 The Holder has reviewed copies of each of the Indenture and the Registration Rights Agreement, including copies of each of the Indenture and Registration Rights Agreement marked to show the differences between such documents and the
respective indenture and registration rights agreement related to the Outstanding Notes, and has had an opportunity to ask questions of the Company and to obtain from representatives of the Company such information as is necessary to determine the
changes reflected in each such document, including the changes to the terms of the Exchange Notes compared with the Outstanding Notes. The Holder has had such opportunity to ask questions of the Company and its representative and to obtain from
representatives of the Company such information as is necessary to permit it to evaluate the merits and risks of its investment in the Company and has independently, without reliance upon any representatives of the Company and based on such
information as the Holder deemed appropriate, made its own analysis and decision to enter into this Agreement. Holder acknowledges the following disclosure to be set forth in the Company’s Form 8-K to be filed in connection with the Exchange
Agreement, and that it has had the opportunity to discuss this matter with the Company to its satisfaction: “Based on language (the “Disputed Language”) contained in the Articles of Amendment to the Company’s Articles of
Incorporation (the “Amendment”) filed in connection with the issuance of the Company’s Series A, Series B and Series C Convertible Preferred Stock (the “Preferred Stock”), certain holders thereof (the
“Shareholders”) have asserted a right to consent (or not) to the transactions contemplated by this Agreement (the “Exchange”). Attached as Exhibit 99.2 hereof is a letter received from Tang Capital Management, LLC, on
December 11, 2007, a holder of the Series B Preferred Stock which alleges such right (the “Letter”). The Company is of the view that inclusion of the Disputed Language in the Amendments constitute a scrivener’s error without
legal force or effect, and is in the process of filing Articles of Correction with the Secretary of State of Washington in accordance with Section 23B.01.240 of the Revised Code of Washington. Although the Company disagrees with the statements
in the Letter that such consent is required, it is nevertheless possible that the Shareholders will prevail in a claim that they are entitled to have such Preferred Stock be redeemed as if the Exchange were to have caused a Triggering Event based
upon such alleged rights or otherwise seek to challenge the validity of the Exchange on the basis thereof.” The Holder has had the opportunity to consult with its accounting, tax, financial and legal advisors to be able to evaluate the risks
involved in the exchange of the Outstanding Notes pursuant hereto and to make an informed investment decision with respect to such exchange. 
 The Holder acknowledges that the Company is relying on the truth and accuracy of the foregoing representations and warranties in the offering of the Exchange Notes to the Holder without having first registered the Exchange Notes or the
Underlying Common Stock under the Securities Act. 
  

 - 6 - 

 Section 2.5 Acquisition Entirely for Own Account. The Holder is acquiring the Exchange Notes
only for investment purposes for its own account and not towards, or for resale in connection with, the public sale or distribution of all or any part thereof. The Holder is acquiring the Exchange Notes to be issued to the Holder hereunder in the
ordinary course of its business. 
 Section 2.6 Restricted Securities. The Holder understands that neither the Exchange Notes,
the Underlying Common Stock, nor the Common Shares have been registered under the Securities Act, and are being issued hereunder by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other
things, the bona fide nature of the investment intent and the accuracy of the Holder’s representations as expressed herein. The Holder understands that the Exchange Notes (and the Underlying Common Stock) and the Common Shares are
“restricted securities” under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Holder must hold the Exchange Notes (and the Underlying Common Stock) and the Common Shares indefinitely unless they are
registered with the Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available. The Holder further acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Exchange Notes (and the Underlying Common Stock) and Common Shares, and on requirements relating to the
Company which may be outside the Holder’s control, and which, except as set forth in the Registration Rights Agreement, the Company is under no obligation and may not be able to satisfy. 
 Section 2.7 No Public Market. The Holder understands that no public market now exists for the Exchange Notes, and that the Company has made
no assurance that a public market will ever exist for the Exchange Notes. 
 Section 2.8 Legends. The Holder understands that the
Exchange Notes and any shares of Underlying Common Stock, will bear one or more of the legends required by the Indenture, and the removal of such legends shall be governed by the terms of the Indenture or applicable securities law. 
 Section 2.9 Affiliate Status. The Holder is not, and has not been during the preceding three months, an “affiliate” of the
Company as such term is defined in Rule 144 under the Securities Act. 
 Section 2.10 Professional Advice. With respect to
the tax, accounting and other economic considerations involved in the Note Exchange, the Holder is not relying on the Company or any of its affiliates, and the Holder has carefully considered and has, to the extent the Holder believes such
discussion is necessary, discussed with the Holder’s professional legal, tax, accounting and financial advisors the implications of the Note Exchange for the Holder’s particular tax, accounting and financial situation. 
 Section 2.11 Holding Period. The Holder has held the Outstanding Notes for at least two (2) years, or has acquired such Notes from a
Holder who is and was not an affiliate of the Company. Holder understands that the Company’s transfer agents will be entitled to rely on this representation to issue the Common Shares without legends pursuant to Rule 144(d)(3) of the Securities
Act. 
  

 - 7 - 

 ARTICLE III 
 Representations, Warranties and Covenants of the Company 
 The Company hereby makes the following
representations, warranties, and covenants each of which is true and correct on the date hereof and shall survive the date of the Closing and the transactions contemplated hereby to the extent set forth herein. 
 Section 3.1 Subsidiaries. All of the direct and indirect subsidiaries (each, a “Subsidiary”) of the Company are set forth on the
Company’s most recently filed 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. 
 Section 3.2 Existence and Power. 
 (a) 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. 
 (b) The execution of this Agreement by the Company and the consummation by the Company of
the transactions contemplated hereby (i) does not require the consent, approval, authorization, order, registration or qualification of, or filing with, any governmental authority or court, or body or arbitrator having jurisdiction over the
Company other than as contemplated in or by the Registration Rights Agreement, state securities regulators, the Nasdaq Global Market, the DTC and The PORTAL Market; and (ii) does not and will not constitute or result in a breach, violation or
default under any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license, whether written or oral, express or implied, or with the Company’s Certificate of Incorporation or by-laws, or any statute, law,
ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body on the part of the Company or on the part of any other party
thereto or cause the acceleration or termination of any obligation or right of the Company or any other party thereto, except, in the case of clause (ii) for such breaches, violations or defaults which would not reasonably be expected to,
singly or in the aggregate, result in a Material Adverse Effect (as defined above), or except as set forth in Section 2.4 hereof. 
 Section 3.3 Valid and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company
in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and
(b) general principles of equity. 
  

 - 8 - 

 Section 3.4 Capitalization. At the Closing, the authorized capital stock of the Company will
consist of 100,000,000 shares of Common Stock and 10,000,000 shares of preferred stock, no par value. As of the close of business on December 7, 2007, there were 52,115,677 shares of Common Stock issued and outstanding, 6,850 shares of Series A
Preferred Stock issued and outstanding, 15,380 shares of Series B Preferred Stock issued and outstanding, 8,284 shares of Series C Preferred Stock issued and outstanding, and 4,700 shares of Series D Preferred Stock issued and outstanding. All such
issued and outstanding shares have been duly authorized and validly issued, and are fully paid and non-assessable, and were issued in compliance with all applicable state and federal laws concerning the issuance of securities and all applicable
pre-emptive, participation, rights of first refusal and other similar rights. 
 Section 3.5 Valid Issuance of the Exchange
Notes. The Exchange Notes, when issued and delivered in accordance with the terms and for the consideration set forth in this Agreement and the Indenture, will constitute legal and binding obligations of the Company, be validly issued and free
of restrictions on transfer other than restrictions on transfer under this Agreement, applicable state and federal securities laws and liens or encumbrances created by or imposed by the Holder, and enforceable against the Company in accordance with
their terms, except that such enforcement may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles
of equity. Assuming the accuracy of the representations of the Holder in Article II of this Agreement and subject to the filing of Form D pursuant to Regulation D under the Securities Act and other similar filings required under state securities
laws, the Exchange Notes will be issued in compliance in all material respects with all applicable federal and state securities laws. The Underlying Common Stock has been duly reserved for issuance, and upon issuance in accordance with the terms of
the Company’s Certificate of Incorporation, as amended, will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under applicable federal and state securities laws and liens
or encumbrances created by or imposed by the Holder. Based in part upon the representations of the Holder in Article II of this Agreement, the Exchange Notes and the Underlying Common Stock, when issued and delivered in accordance with the terms of
the Exchange Notes and the Indenture, will be issued in compliance in all material respects with all applicable federal and state securities laws. 
 Section 3.6 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 under the
Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein
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 and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state

  

 - 9 - 

 
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 comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at
the time of filing. Such financial statements 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. 

Section 3.7 Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements
included within the SEC Reports, except as specifically disclosed in 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, (iv) the Company has not declared or made
any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any
officer, director or Affiliate, except pursuant to existing Company stock option plans. Except for the issuance of the Exchange Notes and Common Shares contemplated by this Agreement or as set forth in Section 2.4, 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.

 Section 3.8 Legal Proceedings. No legal or governmental proceedings or investigations are pending or, to the knowledge of the
Company, threatened to which the Company is a party or to which the property of the Company or any of its subsidiaries is subject that are not described in the SEC Reports, except for such proceedings or investigations which would not reasonably be
expected to, singly or in the aggregate, result in a Material Adverse Effect. 
 Section 3.9 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 

  

 - 10 - 

 
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. 
 Section 3.10 Compliance with Laws; Permits. The Company and its subsidiaries
possess all certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to have such certificates, authorizations and
permits would not reasonably be expected to have a Material Adverse Effect, and none of the Company and its subsidiaries has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or
permit which would reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect. The Company and its subsidiaries are and have been in compliance with all applicable laws, statutes, ordinances, rules, regulations,
orders, judgments, decisions, decrees, standards, and requirements relating to their respective businesses, except where any such non-compliance would not reasonably be expected to have a Material Adverse Effect. 
 Section 3.11 Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to 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 neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit. 
 Section 3.12 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 as 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. 
 Section 3.13 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 the Intellectual Property Rights used by the Company or any Subsidiary violates or
infringes upon the rights of any person. 
  

 11 

 Section 3.14 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. 
 Section 3.15 Transactions with Affiliates and Employees. Except as set forth in the SEC Reports, 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 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. 
 Section 3.16 Sarbanes-Oxley. The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the date hereof and of the Closing Date. 
 Section 3.17 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 of 1940, as amended. 
 Section 3.18 Registration
Rights. No Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company, which rights are currently not satisfied, other than with regards to an aggregate of 4,211,856 shares of
Common Stock issued in the acquisition of Systems Medicine, Inc. in July 2007. 
 Section 3.19 Listing and Maintenance
Requirements. The Company’s 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 under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. Except as set forth in the SEC Reports, the Company has not, in the 12 months
preceding the date hereof, received notice from any Nasdaq 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 Nasdaq market. 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 
  

 - 12 - 

 Section 3.20 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 (including any distribution under a rights agreement) or other similar anti-takeover provision under the
Company’s Certificate of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Holder as a result of the Holder and the Company fulfilling their obligations or
exercising their rights under this Agreement, the Indenture or the Registration Rights Agreement (the “Exchange Documents”), including without limitation as a result of the Company’s issuance of the Exchange Notes and Common
Shares and the Purchasers’ ownership of the Exchange Notes and Common Shares. 
 Section 3.21 Disclosure. Except with
respect to the material terms and conditions of the exchange contemplated by the Exchange Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Holder or its agents or counsel with any
information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the SEC Reports. The Company understands and confirms that the Holder 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 Holder 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 the
Holder does not make or has not made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Article II hereof. 
 Section 3.22 Solvency. Except as disclosed in the SEC Reports, based on the financial condition of the Company as of the Closing Date, during
the next 12 months, the Company’s assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements
of the business conducted by the Company, and projected capital requirements and capital availability thereof. The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. 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. 
 Section 3.23 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, 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.

 Section 3.24 Acknowledgment Regarding Holder’s Note Exchange. The Company acknowledges and agrees that the Holder is
acting solely in the capacity of an arm’s length purchaser with respect to the Exchange Documents and the transactions contemplated thereby. 

  

 - 13 - 

 
The Company further acknowledges that the Holder is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect
to the Exchange Documents and the transactions contemplated thereby and any advice given by the Holder or any of its respective representatives or agents in connection with the Exchange Documents and the transactions contemplated thereby is merely
incidental to the Holder’s Note Exchange. The Company further represents to the Holder that the Company’s decision to enter into this Agreement and the other Exchange Documents has been based solely on the independent evaluation of the
transactions contemplated hereby by the Company and its representatives. 
 Section 3.25 Acknowledgement Regarding Holder’s
Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding , it is understood and acknowledged by the Company (i) that the Holder has not been asked to agree, nor has the Holder 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 the Holder, 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 the Holder, and counter-parties in “derivative” transactions to which the Holder is a party, directly or indirectly, presently may have a “short” position in the
Common Stock, and (iv) that the Holder 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 Holder may engage in hedging activities at various times during the period that the Common Shares are outstanding and (b) such hedging activities (if any) could reduce the value of the existing stockholders’ 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 Exchange Documents. 
 Section 3.26 No Integrated Offering. Assuming the accuracy of Holder’s representations and warranties set forth in Section 2.4,
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 for purposes of any applicable shareholder approval provisions of the Nasdaq Stock Market or would require registration of the Common Shares under the Securities Act.
The issuance and sale of the securities hereunder does not contravene the rules and regulations of the Nasdaq Global Market. 
 Section 3.27 No Material Adverse Effect. Since the respective dates as of which information is given in the SEC Reports, there has not been any event or occurrence having a Material Adverse Effect on the Company or its
subsidiaries, except as reflected or disclosed in a subsequent SEC Document. 
 Section 3.28 Nasdaq Listing Approval. The Common
Shares and the shares of Common Stock issuable upon conversion of the Exchange Notes shall have been approved by the Nasdaq Global Market for listing no later than 15 days after the date of the Closing. 
  

 - 14 - 

 Section 3.29 PORTAL Listing. The Exchange Notes shall have been approved for trading on The
PORTAL Market of FINRA no later than 15 days after the date of the Closing. 
 Section 3.30 CUSIP Number. The Company shall have
obtained a Committee on Uniform Securities Identification Procedures number (CUSIP number) for the Exchange Notes no later than 15 days after the date of the Closing. 
 Section 3.31 DTC. The Exchange Notes shall have been included in the book entry settlement system of the DTC no later than 15 days after the date of the Closing. 
 Section 3.32 Holding Period. For purposes of Rule 144 of the Securities Act, and based on Holder’s representation in Section 2.11
above, the Company acknowledges that the holding period for the Common Shares may be tacked pursuant to Rule 144(d)(3) onto the holding period of the Outstanding Notes, and the Company agrees to issue the Common Shares without any restrictive
legends. 
 ARTICLE IV 
 Miscellaneous Provisions 
 Section 4.1 [Voting. Holder agrees to vote the Common Shares acquired pursuant to
this Agreement, in favor of the proposal to increase the number of authorized shares of Common Stock the Company from One Hundred Million (100,000,000) to Two Hundred Million (200,000,000) at the Special Meeting of the Shareholders
scheduled to be held on January 28, 2008, or at any adjournment or postponement thereof, and at any subsequent special meeting of shareholders held for substantially the same purpose (the “Proposal”). Further, Holder hereby appoints
James A. Bianco, M.D. and Phillip M. Nudelman, Ph.D., and each of them, as proxies, with full power of substitution, to represent and vote for, and on behalf of, the Holder and its affiliates, all such shares in favor of the Proposal.] 

Section 4.2 Survival of Representations and Warranties. The agreements of the Company, as set forth herein, and the respective
representations and warranties of the Company and Holder as set forth herein in Sections 2 and 3, respectively, shall survive the Closing Date. 
 Section 4.3 Indemnification. From and after the date hereof, the Company agrees to indemnify the Holder against and in respect of all reasonably foreseeable damages (including reasonable attorney’s fees and costs related to
the inducement hereof) suffered by a non-breaching party resulting from the breach of any representation or warranty made by the Company herein. 
 Section 4.4 Notice. Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, or mailed first class mail (postage prepaid) with return receipt requested or sent by reputable
overnight courier service (charges prepaid): 
 (1) if to the Holder, at the most current address given by such Holder to the Company;
and 
 (2) if to the Company, at its address, as follows: 
 Cell Therapeutics, Inc. 
 501 Elliott Ave W, Suite 400 
 Seattle, WA 98119 
 Attention: Chief Financial Officer 
  

 - 15 - 

 with a copy to: 
 Heller Ehrman LLP 
 333 Bush Street 
 San Francisco, CA 94104 
 Attention: Karen Dempsey, Esq. 
 The Company
by notice to the Holder may designate additional or different addresses for subsequent notices or communications. Notices will be deemed to have been given hereunder when delivered personally, three business days after deposit in the U.S. mail
postage prepaid with return receipt requested and two business days after deposit postage prepaid with a reputable overnight courier service for delivery on the next business day. 
 Section 4.5 Entire Agreement. This Agreement and the other documents and agreements executed in connection with the Transaction embody the
entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede all prior and contemporaneous oral or written agreements, representations, warranties, contracts, correspondence, conversations,
memoranda and understandings between or among the parties or any of their agents, representatives or affiliates relative to such subject matter, including, without limitation, any term sheets, emails or draft documents. 
 Section 4.6 Assignment; Binding Agreement. This Agreement and the various rights and obligations arising hereunder shall inure to the benefit
of and be binding upon the parties hereto and their successors and assigns. 
 Section 4.7 Counterparts. This Agreement may be
executed in multiple counterparts, and on separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Any counterpart or other signature hereupon delivered by
facsimile shall be deemed for all purposes as constituting good and valid execution and delivery of this Agreement by such party. 
 Section 4.8 Remedies Cumulative. Except as otherwise provided herein, all rights and remedies of the parties under this Agreement are cumulative and without prejudice to any other rights or remedies available at law. 

Section 4.9 Governing Law. This Agreement shall in all respects be construed in accordance with and governed by the substantive laws of
the State of New York, without reference to its choice of law rules. 
 Section 4.10 No Third Party Beneficiaries or Other
Rights. Nothing herein shall grant to or create in any person not a party hereto, or any such person’s dependents or heirs, any right to any benefits hereunder, and no such party shall be entitled to sue any party to this Agreement with
respect thereto. 
  

 - 16 - 

 Section 4.11 Waiver; Consent. This Agreement may not be changed, amended, terminated,
augmented, rescinded or discharged (other than in accordance with its terms), in whole or in part, except by a writing executed by the parties hereto. No waiver of any of the provisions or conditions of this Agreement or any of the rights of a party
hereto shall be effective or binding unless such waiver shall be in writing and signed by the party claimed to have given or consented thereto. Except to the extent otherwise agreed in writing, no waiver of any term, condition or other provision of
this Agreement, or any breach thereof shall be deemed to be a waiver of any other term, condition or provision or any breach thereof, or any subsequent breach of the same term, condition or provision, nor shall any forbearance to seek a remedy for
any noncompliance or breach be deemed to be a waiver of a party’s rights and remedies with respect to such noncompliance or breach. 
 Section 4.12 Word Meanings. The words such as “herein”, “hereinafter”, “hereof”, and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words
appear unless the context otherwise requires. The singular shall include the plural, and vice versa, unless the context otherwise requires. The masculine shall include the feminine and neuter, and vice versa, unless the context otherwise requires.

 Section 4.13 No Broker. Neither party has engaged any third party as broker or finder or incurred or become obligated to pay
any broker’s commission or finder’s fee in connection with the transactions contemplated by this Agreement other than such fees and expenses for which it shall be solely responsible. 
 Section 4.14 Further Assurances. The Holder and the Company each hereby agree to execute and deliver, or cause to be executed and delivered,
such other documents, instruments and agreements, and take such other actions, as either party may reasonably request in connection with the transactions contemplated by this Agreement. 
 Section 4.15 Costs and Expenses. The Holder and the Company shall each pay their own respective costs and expenses incurred in connection
with the negotiation, preparation, execution and performance of this Agreement, including, but not limited to, attorneys’ fees. 
 Section 4.16 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
 Section 4.17 Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby. 
  

 - 17 - 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of the date
first above written. 
  

					
	HOLDER:	 	
		
	  
	 	
		
	 By:
	 	  

	 Name:
	 		 	
	 Title:
	 		 	

  

 Signature Page to Exchange Agreement 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of the date
first above written. 
  

					
	THE COMPANY:	 	
	
	CELL THERAPEUTICS, INC.
		
	 By:
	 	  

	 Name:
	 		 	
	 Title:
	 		 	

  

 Signature Page to Exchange Agreement 

 Schedule 1 
 [HOLDER NAME] 
  

					
	 Aggregate Principal Amount
 of Outstanding Notes
	 	 Aggregate Principal Amount

of Exchange Notes
	 	Number of Common Shares
	 		 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 		 
	 	 	 	 	 
	 		 
	 	 	 	 	 

 Exhibit A 
 Form of Indenture 

 Exhibit B 
 Form of Registration Rights Agreement

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