Document:

Access Agreement

 Exhibit 10.1 
 ACCESS AGREEMENT 
 THIS ACCESS AGREEMENT (the “Agreement”) is made the 16th day of June, 2008 (the
“Effective Date”) between CELL THERAPEUTICS INC., a Washington corporation (“CTI”) and BAYER SCHERING PHARMA AG (formerly known as Schering Aktiengesellschaft), a German corporation (“BAYER”). CTI and BAYER are
sometimes referred to in this Addendum individually as a “Party” and collectively as the “Parties”. 
 WHEREAS: 
  

	 (A)
	 Pursuant to that certain Asset Purchase Agreement, dated as of August 15, 2007 (the “Asset Purchase
Agreement”), by and between CTI and Biogen IDEC Inc., formerly known as IDEC Pharmaceuticals Corporation, (“BIIB”), as of December 21, 2007, CTI purchased certain assets from BIIB relating to the pharmaceutical product currently
marketed and sold as ZEVALIN® (Ibritumomab Tiuxetan), consisting of Indium-111 Ibritumomab Tiuxetan and Yttrium-90 Ibritumomab Tiuxetan (the “Product”), such that CTI has the
exclusive right to develop, market and sell the Product in the United States of America, together with all of its territories and possessions, and the Commonwealth of Puerto Rico (collectively, the “United States”).

  

	(B)	Pursuant to that certain Collaboration and License Agreement, dated as of June 9, 1999, by and between Schering Aktiengesellschaft and IDEC Pharmaceuticals Corporation, as
amended by (i) that certain First Amendment to Collaboration and License Agreement, dated April, 2004, by and between Schering Aktiengesellschaft and BIIB, and (ii) that certain letter agreement amendment, dated September 16, 2005, by
and between Schering Aktiengesellschaft and BIIB (the “License Agreement”), BAYER has an exclusive license (inter alia) to use, develop, market, sell, import for sale and distribute the Product in all countries of the world except the
United States. 

  

	(B)	On March 20, 2008, BAYER received a positive opinion from the European Committee for Medicinal Products for Human Use (“CHMP”) recommending the Product for the
following indication: “The [90Y]-radiolabelled Zevalin is indicated as consolidation therapy after remission induction in previously untreated patients with follicular lymphoma. The benefit of Zevalin following rituximab in combination with
chemotherapy has not been established.” 

  

	(C)	CTI wishes to obtain access to the clinical data submitted by BAYER to the European Commission in support of BAYER’s application to use the Product for the indication described
in the preceding paragraph for the purpose of obtaining regulatory approval in the United States for the use of the Product for the FIT Indication described at Section 1(b) below, and BAYER is willing to provide access to such clinical data on
the terms and conditions set out in this Agreement. 

  

	(D)	BIIB has provided its consent to the grant of access to clinical data by BAYER to CTI in the form of a letter attached as Schedule 1 to this Agreement. 

  

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 NOW, THEREFORE, the Parties agree as follows: 
  

	1.	Definitions. As used in this Agreement, the following terms will have the meanings ascribed to them below: 

  

	 	(a)	“Affiliate” means an entity which, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with CTI or BAYER, as
the case may be. As used in this definition, “control” means the direct or indirect ownership of fifty percent (50%) or more of the stock, having the right to vote for the directors thereof, or the possession of the power to direct or
cause the direction of the management and policies of an entity, whether through the ownership of the outstanding voting securities or by contract or otherwise. 

  

	 	(b)	“FDA” means the United States Food and Drug Administration. 

  

	 	(c)	“FIT Data” means the clinical data submitted by BAYER to the European Commission as of the Effective Date for the purpose of obtaining Regulatory Approval of the Licensed
Product in Europe as consolidation therapy after remission induction in previously untreated patients with follicular lymphoma. 

  

	 	(d)	“FIT Indication” means the use of Zevalin as consolidation therapy after remission induction in previously untreated patients with follicular lymphoma including such use
subject to restrictions or exceptions. 

  

	 	(e)	“Information” means techniques and data relating to the Product and/or the FIT Data, including, but not limited to, biological materials, inventions, practices, methods,
knowledge, know-how, skill, experience, test data (including pharmacological, toxicological and clinical test data), analytical and quality control data, marketing, pricing, distribution, cost, sales, manufacturing, patent data or descriptions.

  

	 	(f)	“Product” has the meaning given to it in Recital A of this Agreement. 

  

	 	(g)	“Regulatory Approval” means any approvals, product and/or establishment licenses, BLAs, BLA equivalents, registrations or authorizations of any federal, state or local
regulatory agency, department, bureau or other governmental entity, necessary for the commercial manufacture, use, storage, import, export, transport, marketing or sale of the Product in a regulatory jurisdiction. 

  

	 	(h)	“US FIT Approval” means a Regulatory Approval granted by the FDA for the use of the Product for the FIT Indication (whether in the form of an additional Regulatory
Approval or in the form of a label variation), including such a Regulatory Approval for the use of the Product for the FIT Indication with subset restrictions. 

  

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	 	(i)	“Third Party” means any entity other than CTI or BAYER. 

  

	 	(e)	“US Net Sales” means the amount invoiced by CTI, its Affiliates or its sublicensees on account of sales of the Product to Third Parties in the United States , less
reasonable and customary deductions applicable to the Product for (i) transportation charges and charges such as insurance relating thereto paid by the selling party; (ii) sales and excise taxes or customs duties paid by the selling party
and any other governmental charges imposed upon the sale of the Product and paid by the selling party; (iii) distributors fees or rebates or allowances actually granted, allowed or incurred in the ordinary course of business in connection with
the sale of the Product in an arms length transaction; (iv) quantity discounts, cash discounts or chargebacks actually granted, allowed or incurred in the ordinary course of business in connection with the sale of the Product, not in excess of
the selling price of the Product, on account of governmental requirements, rejection, outdating, recalls or return of the Product. 

 For the purpose of calculating US Net Sales, the Parties recognize that (a) a Party’s customers may include persons in the chain of commerce who enter into agreements with a Party as to price even though title to the Product does
not pass directly from a Party to such customers, and even though payment for such Product is not made by such customers directly to a Party, and (b) in such cases, chargebacks paid by a Party to or through a Third Party (such as a wholesaler)
can be deducted by a Party from gross revenue in order to calculate US Net Sales. For example, CTI may distribute a product to a hospital through a network of pharmacies managed by a contractor. Neither the contractor nor the distributing pharmacies
take title to the product. Instead, they perform their role (order, processing, receipt of product, etc.) for a fixed fee. The contractor adds the fee to the CTI sales price, then collects the total amount from the hospital. The contractor then
remits the amount collected, net of the fee, to CTI. As CTI never receives the fee, it is excluded from the calculation of US Net Sales. 
 Any deductions listed above which involve a payment by a Party shall be taken as a deduction against aggregate sales for the period in which the payment or deduction is made. Sales of the Product between CTI and its Affiliates or
sublicensees shall be excluded from the computation of US Net Sales except where any such Affiliate or sublicense is an end user of the Product. US Net Sales shall be accounted for in accordance with International Accounting Standards consistently
applied. 
  

	2.	Access. 

  

	2.1	 Within thirty (30) days of the Effective Date, BAYER will transfer the FIT Data to CTI by providing the final SAS datasets (source data, derived data sets and
the respective programs), annotated CRFs, data management handbook, and the statistical analysis plan. In addition, the complete Clinical Study Report, 

  

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including Appendices, will be electronically transmitted. To the extent requested by CTI, BAYER agrees to supply to CTI such of the following data as are
reasonably available to BAYER and may be disclosed by BAYER to CTI without any breach of contract, law or regulation: (i) the electronic common technical document (including all modules used in the European MAA filing); (ii) financial
disclosure information and CVs for investigators and subinvestigators; documentation of ethics committee approvals of the protocol and amendments (including lists of names and qualifications of all members of each ethics committee); and
(iii) such other information relating to the FIT Data as CTI may reasonably require for the purpose of obtaining the US FIT Approval. 

  

	2.2	CTI will use the FIT Data solely as permissible in connection with the development and commercialization of the Product in the United States. The Parties agree that BAYER owns the
FIT Data and that CTI is entitled to use the FIT Data solely for the purpose set out in the preceding sentence. BAYER makes no representation or warranty as to the fitness or adequacy of the FIT Data for the purpose of obtaining the US Fit Approval
or for any other purpose. 

  

	3.	Payments. In consideration of the grant by BAYER of access to the FIT Data, CTI agrees to make the following payments to BAYER: 

  

	3.1	Within five (5) days of the Effective Date , CTI shall pay to BAYER via wire transfer the sum of $2,000,000 (two million US dollars) as a non-refundable, non-creditable upfront
payment. 

  

	3.2	Within five (5) days of the grant of US FIT Approval, CTI shall pay to BAYER via wire transfer the sum of $3,000,000 (three million US dollars) as a non-refundable,
non-creditable milestone payment. 

  

	3.3	CTI shall pay to BAYER a royalty on US Net Sales of the Product as follows: 

  

	 	(a)	The royalty rate shall be seven percent (7%) of US Net Sales. 

  

	 	(b)	CTI shall pay royalties hereunder with respect to US Net Sales made on or after January 1, 2009, and shall continue to pay such royalties until the aggregate amount paid to
BAYER by CTI under this Agreement totals $11,500,000 (eleven million, five hundred thousand US dollars). 

 For avoidance of
doubt, the Parties hereby expressly agree and declare that royalties will be payable by CTI to BAYER on all US Net Sales of the Product regardless of the indication(s) for which the Product is approved.  
  

	3.4	CTI shall make royalty payments under this Agreement in United States Dollars to BAYER quarterly within thirty (30) days following the end of each calendar quarter for which
royalties are due. Each royalty payment shall be accompanied by a report summarizing the US Net Sales in units sold during the relevant three-month period. 

  

	3.5	CTI shall pay any and all taxes levied on account of, or measured exclusively by, any royalty payment it receives under this Agreement. If laws or regulations require that taxes be
withheld, CTI will (i) deduct those taxes from the remittable royalty, (ii) timely pay the taxes to the proper taxing authority, and (iii) send proof of payment to BAYER within sixty (60) days following that payment.

  

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	3.6	Any payment required under any provision of this Agreement to be made to either Party or any report required to be made by either Party shall be made to or by an Affiliate of that
Party if designated by that Party as the appropriate recipient or reporting entity. 

  

	3.7	In the event CTI grants licenses or sublicenses to others to make or sell the Product in the United States , such licenses or sublicenses shall include an obligation for the
licensee or sublicense to account for and report its US Net Sales of such Product on the same basis as if such sales were US Net Sales by CTI, and CTI shall pay royalties to BAYER as if the US Net Sales of the sublicensee were US Net Sales of CTI.

  

	4.	Confidentiality 

  

	4.1	Except to the extent expressly authorized by this Agreement or otherwise agreed in writing, the Parties agree that, for the term of this Agreement and for seven (7) years
thereafter, the receiving Party shall keep confidential and shall not publish or otherwise disclose or use for any purpose other than as provided for in this Agreement any Information and other information and materials furnished to it by the other
Party pursuant to this Agreement (collectively “Confidential Information”), except to the extent that it can be established by the receiving Party that such Confidential Information: 

  

	 	(a)	was already known to the receiving Party, other than under an obligation of confidentiality, at the time of disclosure by the other Party; 

  

	 	(b)	was generally available to the public or otherwise part of the public domain at the time of its disclosure to the receiving Party; 

  

	 	(c)	became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the receiving Party in breach of
this Agreement; 

  

	 	(d)	was disclosed to the receiving Party, other than under an obligation of confidentiality, by a Third Party who had no obligation to the disclosing Party not to disclose such
information to others; or 

  

	 	(e)	was subsequently developed by the receiving Party without use of the Confidential Information as demonstrated by competent written records. 

 Notwithstanding the foregoing, the Parties agree that FIT Data shall constitute Confidential Information and that CTI shall keep confidential and shall
not publish or otherwise disclose or use the FIT Data for any purpose other than as provided in this Agreement for as long as the FIT Data are not generally available to the public. 
  

	4.2	 Each Party may disclose Confidential Information hereunder to the extent that such disclosure is reasonably necessary for exercising its rights and carrying out its
obligations under this Agreement provided that such Party takes all necessary precautions to ensure that the recipient of any such disclosure is made aware of the confidential nature of the Confidential Information and is required to comply 

  

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with obligations of confidentiality and non-use equivalent to those set out in this Agreement. If a Party is required by law or regulation to disclose the
other Party’s Confidential Information to any legal or regulatory body, the disclosing Party will, except where impracticable (for example, in the event of medical emergency), give reasonable advance notice to the other Party of such disclosure
requirement and will use its reasonable efforts to secure confidential treatment of such Confidential Information required to be disclosed. 

  

	4.3	This Article 4 shall survive the termination or expiration of this Agreement for a period of seven (7) years. 

  

	4.4	The Parties agree that neither shall make any public announcement of the execution of this Agreement without first obtaining the consent of the other Party to such public
announcement, such consent not to be unreasonably withheld. 

  

	5.	Liability and Indemnification 

  

	5.1	Each Party will defend, indemnify and hold harmless the other Party and its Affiliates, directors, officers, agents, representatives, consultants and employees (referred to as the
“Indemnified Party”) from and against any and all losses suffered or incurred by the Indemnified Party that result from or arise out of: (a) any breach by the other Party of any representation, warranty, covenant or agreement in this
Agreement; or (b) any failure by either Party to comply with any applicable law or regulation in connection with performing its obligations under this Agreement, or (iii) any negligence or intentional misconduct by either Party in
connection with performing its obligations under this Agreement, in each case except to the extent that such loss arises from (i) the negligence or willful failure to perform its obligations hereunder of the Indemnified Party, or (ii) the
Indemnified Party’s breach of this Agreement, or (iii) the Indemnified Party’s violation of any applicable law or regulation. 

  

	5.2	Notwithstanding the foregoing, in no event shall either Party be liable for any special, indirect, incidental, punitive or consequential damages, including loss of anticipated
profits or losses from business disruption, whether in contract, warranty, negligence, strict liability or otherwise, arising under the terms of this Agreement. 

  

	6.	Term and Termination 

  

	6.1	This Agreement shall come into force as of the Effective Date. Unless sooner terminated as provided in Section 6.2 below, the Agreement shall continue in effect until the date
on which CTI is no longer paying a royalty on US Net Sales. Section 2.2 and Article 4 of this Agreement shall survive termination or expiration of the Agreement for any reason. 

  

	6.2	If either Party materially breaches this Agreement at any time, and such breach, if curable, is not cured within sixty (60) days of written notice thereof from the
non-breaching Party, the non-breaching Party shall have the right to terminate the Agreement with immediate effect. 

  

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	6.3	Termination or expiration of the Agreement for any reason shall be without prejudice to any rights which shall have accrued to the benefit of either Party prior to such termination
or expiration, including damages arising from any breach hereunder. 

  

	7.	Miscellaneous. 

  

	7.1	Applicable Law: This Agreement shall be governed by and construed in accordance with the laws of the State of New York without giving effect to principles of conflict of laws.

  

	7.1	Assignment: Either Party may assign any of its rights under this Agreement to any Affiliate provided, however, that such assignment shall not relieve the assigning Party of its
responsibilities for performance of its obligations under the Agreement. Either Party may assign, without the consent of the other Party, all of its rights and obligations under this Agreement to a Third Party in connection with a merger or similar
reorganization or the sale of all or substantially all of its assets. This Agreement shall survive any such merger or reorganization of either Party with or into, or such sale of assets to, another party, and no consent for such merger,
reorganization or sale shall be required hereunder. Other than as provided in the preceding sentences of this Section 7.1, neither Party may assign any of its rights under this Agreement to a Third Party without the prior written consent of the
other Party. This Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Parties. Any assignment not in accordance with this Agreement shall be void. 

  

	7.3	Entire Agreement. This Agreement and the attached Schedule, which is incorporated herein, together with the Confidentiality Agreement between CTI, BAYER and BIIB dated [date]
constitute the entire agreement between the Parties with respect to the subject matter hereof and all prior agreements with respect hereto are superseded. Each Party confirms that it is not relying on any representations, warranties, covenants or
understandings of any kind, nature or description whatsoever of the other Party, except such as are specifically set forth herein. 

  

	7.4	Amendment: No amendment or modification hereof will be binding upon the Parties unless set forth in a writing specified to be an explicit amendment to this Agreement duly
executed by authorized representatives of each of the Parties. 

  

	7.5	Headings: The headings used in this Agreement are intended for convenience only and will not be considered part of the written understanding among the Parties and will not
affect the construction of this Agreement. 

  

	7.6	Independent Contractors: It is expressly agreed that BAYER, on the one hand, and CTI, on the other hand, will be independent contractors and that neither the relationship
between the Parties nor this Agreement will be construed as creating a partnership, joint venture or agency except as any agency is otherwise specifically authorized herein. Neither BAYER, on the one hand, nor CTI, on the other hand, will have the
authority to make any statements, representations or commitments of any kind, or to take any action or to incur any liability or obligation which will be binding on the other, without the prior written consent of the other Party to do so.

  

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	7.7	Waiver: The waiver by either Party of any right hereunder or the failure to perform or of a breach by the other Party will not be deemed a waiver of any other right hereunder
or of any other breach or failure by said other Party whether of a similar nature or otherwise. 

  

	7.8	Force Majeure: Neither Party shall be responsible to the other for any failure or delay in performing any of its obligations under this Agreement or for other nonperformance
hereunder if such delay or nonperformance is caused by strike, stoppage of labor, lockout or other labor trouble, fire, flood or other weather event, earthquake, accident, explosion, war, act of terrorism, act of God or act of the government of any
country or of any local government or any other cause beyond the reasonable control of the defaulting Party (each a “Force Majeure Event”). In the case of a Force Majeure Event, the affected Party shall promptly notify the other Party and
exercise commercially reasonable efforts to pursue resolution of the Force Majeure Event and shall keep the other Party informed of the efforts to resume performance. 

  

	7.9	Notices: Any and all notices required or permitted to be given to a Party pursuant to the provisions of this Agreement will be in writing and will be effective and deemed to
provide such Party with sufficient notice under this Agreement on the earliest of the following: (a) at the time of personal delivery, if delivery is in person; (b) at the time of transmission by facsimile, addressed to the other party at
its facsimile number specified herein (or hereafter modified by subsequent notice to the Parties hereto), with confirmation of receipt made by both telephone and printed confirmation sheet verifying successful transmission of the facsimile; or
(c) one business day after deposit with an express overnight courier for United States deliveries, or two business days after such deposit for deliveries outside the United States, with proof of delivery from the courier requested. All notices
not delivered personally or by facsimile will be sent properly addressed to the Party to be notified at the address set out below or at such other address as a Party may designate by one of the indicated means of notice herein to the other Party
hereto: 

  

	 	(a)	if to BAYER 

 Bayer Schering Pharma AG 
 Muellerstrasse 178 
 D-13342 Berlin

 Germany 
 Attention: General
Counsel, Law and Patents 
 Telecopy No.: 49 30 468 16716 
 Telephone No.: 49 30 4681 6289 
  

	 	(b)	if to CTI 

 Cell Therapeutics, Inc. 
 501 Elliott Avenue, Suite 400 
 Seattle,
Washington 98119 
 Attention: James A. Bianco, M.D. 
 Telephone: 206 284 5774 
 Facsimile: 206 284 6114 
  

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 IN WITNESS WHEREOF, the Parties have executed this Addendum in duplicate originals by their proper officers as of the
date and year first above written. 
  

					
	SIGNED for and on behalf of	 		 	
	BAYER SCHERING PHARMA AG.	 		 	
			
	/s/ Ulrich Grahé	 		 	/s/ Dr. Gunnar Riemann
	Name: Ulrich Grahé	 		 	Name: Dr. Gunnar Riemann
	Title: General Counsel	 		 	Title: Member of the Board
	Date: June 16, 2008	 		 	Date: June 13, 2008

  

					
	SIGNED for and on behalf of	 		 	
	CELL THERAPEUTICS, INC.	 		 	
			
	/s/ James Bianco	 		 	 
	Name: James Bianco	 		 	
	Title: President and CEO	 		 	
	Date: June 16, 2008	 		 	

  

 9Employment Agreement

 Exhibit 10.2 
 EMPLOYMENT AGREEMENT 
 THIS AGREEMENT is made this 23rd day of April, 2008, by and between Cell
Therapeutics, Inc., a corporation (“CTI” or the “Company”), and Craig Philips, (“Employee”). 
 WITNESSETH:

 WHEREAS, the Company entered into a Consulting Letter Agreement with Employee on or about April 23, 2008; 
 WHEREAS, the Board of Directors of the Company desires to hire Employee and Employee desires to be hired by the Company under the terms and conditions of
this Agreement; 
 WHEREAS, the Company and Employee desire to enter into an agreement expressly indicating the terms and conditions of their
relationship and providing for certain arrangements upon the termination of Employee’s relationship with the Company. 
 AGREEMENT:

 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the Company and Employee hereby agree as
follows: 
 1. Employment. Beginning on August 1, 2008, the Company shall employ Employee as President of the Company and
Employee hereby accepts such employment and shall serve the Company, to perform such reasonable and customary duties commensurate with his position as may be assigned to him by the Chief Executive Officer of the Company. Employee shall report to the
Chief Executive Officer. During his employment, Employee shall devote his full time and best efforts to the business and welfare of the Company, provided that it shall not be a violation of this Agreement for Executive to serve on civic or
charitable boards or committee, fulfill occasional speaking or teaching engagements, or manage his personal investments, as long as such activities do not materially interfere with Employee’s responsibilities to the Company or constitute a
conflict of interest with the Company. Such duties shall be rendered primarily at the Company’s facility in Seattle, Washington, provided that, Employee shall undertake such travel as is reasonably necessary in connection with the performance
of his duties. 
 2. Salary and Bonus. The Company will pay Employee for his services an annual base salary of Four Hundred and Two
Thousand Dollars ($402,000) subject to annual review by CTI’s Compensation Committee as approved by the Board of Directors of the Company, in their sole discretion. Salary shall be paid bi-monthly in the gross amount of Sixteen Thousand Seven
Hundred Fifty Dollars ($16,750) in accordance with customary Company policies and practices or in accordance with such changes in policy as may be authorized by the Board of Directors of the Company. Employee shall also be entitled to participate,
on a pro rata basis, in CTI’s 2008 cash bonus program for its Strategic Management Team (“SMT”), as established by CTI’s Compensation Committee, which bonus plan should provide Employee annually with the opportunity to earn a
bonus of up to 60% of Employee’s annual base salary for overachievement, 

 
40% of annual base salary for 100% achievement, or less in the event of underachievement; provided, however, that the foregoing shall not be construed to
guarantee a bonus to Employee. Target bonuses for future years shall be determined by CTI’s Compensation Committee. 
 3.
Benefits. While employed by the Company, Employee shall be entitled (i) to participate in any Employee Benefit Plans which are maintained or established by the Company for its senior executive employees generally; (ii) a monthly car
allowance of Seven Hundred Fifty Dollars ($750); and (iii) to four (4) weeks paid vacation leave per year accrued at the rate of 6.66 hours per pay period. Subject to the Employee’s compliance with the policies and procedures approved
by the Board and applicable to all senior executives of the Company, including but not limited to the Company Travel Policy, the Company shall promptly reimburse the Employee for all expenses and disbursements reasonably incurred in the performance
of his duties hereunder during the Period of Employment. 
 4. Noncompetition. Employee agrees that while he is employed by the
Company and for the eighteen months (18 months) following termination of his employment he will not, except in furtherance of his employment with the Company, without the prior written consent of the Company, either directly or indirectly
(i) solicit business from, or compete with the Company for the business of, any customer of the Company, or (ii) operate, control, advise, be engaged by, perform any consulting services for, invest in (other than less than one percent of
the outstanding stock in a publicly held corporation which is traded over-the-counter or on a recognized securities exchange) or otherwise become associated in any capacity with, any business, company, partnership, organization, proprietorship, or
other entity who or which researches, sells, manufacturers or distributes oncology drugs or oncology products in those geographical areas in which the Company conducts or has conducted such business during Employee’s employment. 
 5. Nondisclosure. Employee shall enter into Company’s standard form Invention and Proprietary Information Agreement contemporaneously with
execution of this Agreement. 
 6. Noninterference. Employee agrees that while he is employed by the Company and for Severance Period,
he will not, except in furtherance of his employment with the Company, and for an eighteen (18) month period thereafter, without the prior written consent of the Company, directly or indirectly solicit, induce, or attempt to solicit or induce
any employee, agent, or other representative or associate of the Company to terminate its relationship with the Company or in any way interfere with such a relationship or a relationship between the Company and any of its suppliers or distributors.

 7. Termination. The Company shall have the right to terminate Employee’s employment with the Company at any time with or
without Cause (as defined below) by giving Employee fifteen (15) days notice in writing, providing that all earned but unpaid salary and benefits, including any accrued but unpaid vacation pay or paid time off amounts, are paid and/or
delivered, as applicable. Employee may terminate his employment by giving the Company fifteen (15) days’ advance notice in writing. Employee’s employment shall terminate automatically in the event of his Disability (as defined below)
or death. 
  

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 8. Termination Benefits. 
 (a) In the event Employee’s employment is terminated without Cause by the Company or by the Employee for Good Cause (as defined
below), he will be entitled to (i) an amount equivalent to eighteen (18) months (the “Severance Period”) of Employee’s base salary (which severance payments shall not be at less than his initial base salary rate set forth in
paragraph 2 above), payable pursuant to Company’s normal payroll procedure (“Severance Pay”) during the Severance Period, which shall be paid beginning thirty (30) days after the later of such termination or the
effectiveness of the Release, and (ii) direct payment by the Company to the COBRA administrator for continuing Employee’s medical, dental and vision coverage for himself and his dependents under the Consolidation Omnibus Budget
Reconciliation Act of 1985, as amended (“COBRA”) for the Severance Period, provided Employee makes a timely election for such continued coverage, and (iii) accelerated vesting of any unvested equity, including stock options and
restricted stock, that has vesting dates within one year from the date of Employee’s termination, (clauses (i) and (ii) and (iii), collectively, the “Severance Pay”). The Severance Pay shall be conditioned upon
(A) timely execution by Employee of a general release of claims (the “Release”) in a form reasonably acceptable to Employer, (B) voluntary resignation from all of Employee’s positions with the Company, and (C) continued
compliance with the provisions of this Agreement, including the covenants contained in Sections 4, 5 and 6 of this Agreement. 
 (b) In the event Employee is terminated without Cause or Employee voluntarily terminates his employment in connection with or within twelve (12) months following a Change of Control of the Company, he will be entitled to the Severance
Pay described in and subject to the provisions of paragraph 8(a) above. Additionally, and notwithstanding Section 8(a)(iii), he will be entitled to all equity vesting acceleration as set forth in the Consulting Letter Agreement referenced
in the recitals to this Agreement. 
 (c) In the event Employee’s employment is terminated by the Company at any time
with Cause, he will not be entitled to Severance Pay, pay in lieu of notice or any other such compensation (other than earned but unpaid salary and benefits, including any accrued but unpaid vacation pay or paid time off amounts). 
 (d) In the event Employee’s employment is terminated by the Company because of Disability, in addition to any short-term or long-term
disability benefits he may be entitled to under any Company group disability plans, he will be paid for all earned but unpaid salary and benefits, including any accrued but unpaid vacation pay or paid time off amounts, as well as a pro rata share of
his target bonus for the year in which his termination occurs, to be paid on the date such bonus would have been paid had Employee remained employed by the Company and in accordance with the Company’s payroll procedures. In addition, the
Company will pay the COBRA premiums for Employee’s COBRA coverage for the period of time Employee is eligible for COBRA. 
 (e) Notwithstanding the foregoing, if the Company (for this purpose, “employer” as defined in Treas. Reg. 1.409A-1(h)(3)) is publicly traded on an established securities market or otherwise at the time of Employee’s
termination of employment, (A) the amount, if any, payable to Employee pursuant to this Section 8 during the first six months of the 

  

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Severance Period shall not exceed two (2) times the amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of
the United States Internal Revenue Code (the “Code”) for the calendar year in which the termination of employment occurs, and (B) an amount equal to the amount, if any, by which the payments to Employee during such six-month period
are reduced pursuant to clause (A) of this Section 8(d) shall be paid to Employee pursuant to the terms of this Section 8 on the first business day following the expiration of such six-month period. For the avoidance of doubt, the
foregoing sentence is intended to cause all payments made to Employee under this Section 8 during the first six months of the Severance Period to qualify for the exception to deferred compensation set forth in Section 1.409A-1(b)(9)(iii)
of the United States Treasury Regulations. 
 9. Definitions. 
 (a) “Cause” shall mean: (1) gross negligence or willful misconduct in the performance of Employee’s duties to the
Company after written notice to Employee and the failure to cure same within ten (10) days after receipt of written notice; (2) refusal or failure to act in accordance with any lawful specific direction or order of the Board of Directors
after written notice to Employee of such refusal or failure and the failure to cure the same within ten (10) days after receipt of written notice; (3) commission of any act of fraud with respect to the Company; (4) Employee’s
material breach or any material provision of the Company’s confidentiality agreement, including without limitation, Employee’s theft or other misappropriation of Company property, breach by Employee of the Company’s Employee Invention
and Proprietary Information Agreement; or (5) conviction of a felony or a crime involving moral turpitude causing material harm to the standing and reputation of the Company, in each case as determined by the Board. 
 (b) “Change of Control” shall mean the occurrence of any of the following events: (1) any “person” (as such term
is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company
representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; (2) the consummation of the sale or disposition by the Company of all or substantially all of the
Company’s assets; (3) a merger, consolidation or other transaction of the Company with or into any other corporation, entity or person, other than a transaction in which the holders of at least 50% of the shares of capital stock of the
Company outstanding immediately prior thereto continue to hold (either by voting securities remaining outstanding or by their being converted into voting securities of the surviving entity or its controlling entity) at least 50% of the total voting
power represented by the voting securities of the Company or such surviving entity (or its controlling entity) outstanding immediately after such transaction; or (4) a change in the composition of the Board occurring within a two-year period,
as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” means directors who either (A) are Directors as of the effective date of the Plan, or (B) are elected, or nominated for
election, to the Board with the affirmative votes of at least a majority of the Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an actual or threatened proxy
contest relating to election of directors to the Company). 
  

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 (c) “Disability” shall mean the disability of Employee caused by any physical
or mental injury, illness or incapacity as a result of which Employee is unable, with or without reasonable accommodation, to effectively perform the essential functions of Employee’s duties for a continuous period of more than 180 days in any
365 day period, as determined by an independent licensed medical doctor, mutually agreed upon by Employee and the Company’s Board of Directors. 
 (d) “Good Cause” shall mean a voluntary termination by the Employee, upon 30 days prior written notice to the Company, within 60 days following the occurrence of one or more of the following events without
Employee’s prior written consent: (i) a material reduction in Employee’s responsibilities, authority, titles or offices resulting in diminution of his position, excluding for this purpose an isolated, insubstantial, inadvertent action
not taken in bad faith; (ii) a material reduction in Employee’s base salary; (iii) relocation of Employee’s primary place of business for the performance of his duties to a location which is more than 20 miles from its prior
location; or (iv) a material breach by the Company of this Agreement; and provided further that the Company shall have thirty (30) days after delivery of such notice to cure, and only if the Company does not cure within that time shall
there be Good Cause. 
 10. Non-Disparagement. Each party agrees to refrain from any disparagement, criticism, defamation, or slander
of the other, or tortious interference with the contracts and relationships of the other. 
 11. Remedy for Certain Breaches. Employee
acknowledges that in consideration for the covenants and provisions set forth in Sections 4, 5 and 6 hereof, the Company has granted to Employee the employment, salary, and benefits described herein, and that the provisions of such
Sections 4, 5 and 6 hereof were negotiated at arms’ length and are required for the fair and reasonable protection of the Company. Employee further acknowledges and agrees that a breach of any of the covenants, obligations, or agreements
set forth in Sections 4 through 6 hereof will result in irreparable and continuing damage to the Company in its business and property for which there will be no adequate remedy at law, and Employee agrees that in the event of any such breach
the Company and its successors or assigns shall be entitled to injunctive relief to restrain such breach by Employee, and to such other and further relief (including damages) as is proper under the circumstances. 
 12. Reformation of Agreement; Severability. The parties intend this Agreement to be enforced as written. However, in the event that any provision
of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable as against public policy, such court shall exercise its discretion in reforming such provision to the end that Employee shall be subject to ouch
restrictions and obligations as are reasonable under the circumstances and enforceable by the Company. In the event that a provision or term of this Agreement is found to be void or unenforceable to any extent for any reason, it is the agreed-upon
intent of the parties hereto that all remaining provisions or terms of the Agreement shall remain in full force and effect to the maximum extent permitted by law and the Agreement shall be enforceable as if such void or unenforceable provision or
term had never been a part hereof. 
  

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 13. Amendment to Comply with Section 409A of the Code. To the extent that this Agreement or
any part thereof is deemed to be a nonqualified deferred compensation plan subject to Section 409A of the Code and the Treasury Regulations and guidance promulgated thereunder, (a) the provisions of this Agreement shall be interpreted in a
manner to the maximum extent possible to comply in good faith with Code Section 409A, and (b) the parties hereto agree to amend this Agreement for purposes of complying with Code Section 409A promptly upon issuance of any Treasury
regulations or guidance thereunder, provided that any such amendment shall not change the present value of the benefits payable to Employee hereunder or otherwise materially adversely affect Employee or the Company without the consent of such party.

 14. Employee’s Cooperation. During Employee’s employment and thereafter, Employee shall cooperate with the Company and
its subsidiaries and Affiliates in any disputes with third parties, internal investigation or administrative, regulatory or judicial proceeding as reasonably requested by the Company (including, without limitation, Employee being available to the
Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to the Company all pertinent information
and turning over to the Company all relevant documents which are or may come into Employee’s possession, all at times and on schedules that are reasonably consistent with Employee’s other permitted activities and commitments). In the event
the Company requires Employee’s cooperation in accordance with this paragraph after Employee’s termination of employment, the Company shall reimburse Employee solely for reasonable travel expenses (including lodging and meals, upon
submission of receipts) and legal fees and shall, for any days of such cooperation (during the Severance Period, only for such days of cooperation in excess of seven (7) days), pay a per diem to Employee equal to the daily rate of his annual
base salary (computed by dividing his annual base salary by 240 days) as in effect immediately prior to the termination of his employment. 
 15. Withholding. The Company shall be entitled to deduct or withhold from any amounts owing from the Company to Employee any U.S. federal, state, local or foreign taxes imposed with respect to Employee’s compensation or other
payments from the Company, including, without limitation, wages, bonuses, dividends, the receipt or exercise of stock options and/or the receipt or vesting of stock. 
 16. Notices. Any notice required to be given under the terms of this Agreement shall be in writing and mailed to the recipient’s last known address or delivered in person. If sent by registered or
certified mail, such notice shall be effective when mailed; otherwise, it shall be effective upon delivery. 
 17. Assignment. No
rights of any kind under this Agreement shall, without the written consent of the Company, be transferable to or assignable by Employee, or be subject to alienation, encumbrance, garnishment, attachment, execution, or levy of any kind, voluntary or
involuntary. This Agreement shall be binding upon and shall inure to the benefit of the Company and its successors and assigns. 
 18.
Mitigation. In no event shall the Employee be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Employee under any of the provisions of this Agreement. Except as otherwise set forth
herein with respect to health insurance benefits, any severance benefits payable to the Employee shall not be subject to reduction for any compensation received from other employment. 
  

 6 

 19. Indemnification. The Employee shall be indemnified by the Company against liability as an
officer of the Company and any subsidiary or affiliate of the Company to the maximum extent permitted by applicable law. To the full extent permitted under the corporate governing documents of the Company existing as of the date of this Agreement,
and subject to the terms of any policies and procedures applicable to all directors and senior officers of the Company, the Company shall advance to the Employee payment of reasonable costs of defending against any claims covered by the foregoing
indemnification commitment. The Executive’s rights under this Section 19 shall continue so long as he may be subject to such liability, whether or not this Agreement may have terminated prior thereto. The Company shall maintain full
coverage of the Employee under all Director and Officer Liability Insurance Policies that the Company extends to other senior executives and directors, for a period no less than 5 years after the date of Employee’s termination. In the event of
any inconsistency between this Section 19 and the governing documents of the Company, this Section shall be construed broadly for the benefit of the Employee and shall be in addition to, and not in lieu or in limitation of, any rights arising
under any such arrangement. 
 20. Entire Agreement; Amendments, Waivers. This Agreement contains the entire agreement between the
parties with respect to the subject matter hereof and there shall be no implied terms in addition to the express terms contained herein. This Agreement may not be changed orally, but only by an Agreement, in writing, signed by Employee and an
officer of the Company specifically designated by the Board of Directors of the Company to execute such amendment. The terms or covenants of this Agreement may be waived only by a written instrument specifically referring to this Agreement, executed
by the party waiving compliance. The failure of the Company at any time or from time to time to require performance of any of Employee’s obligations under this Agreement shall in no manner affect the Company’s right to enforce any
provisions of this Agreement at a subsequent time; and the waiver by the Company of any right arising out of any breach shall not be construed as a waiver of any right arising out of any subsequent breach. 
 21. Capacity. Employee represents and warrants to the Company that he has full legal power and capacity to execute, deliver and perform this
Agreement. 
 22. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of
Washington, without giving effect to the conflicts of laws principles thereof. 
 IN WITNESS WHEREOF, the parties have executed this
Agreement on the date first above written. 
  

									
	 “COMPANY”
 Cell
Therapeutics, Inc.
	 		 		 	 “EMPLOYEE”
 Craig
Philips

					
	By:	 	/s/ James Bianco	 		 		 	/s/ Craig Philips
		 	James Bianco, M.D.	 		 		 	Craig Philips
		 	Chief Executive Officer	 		 		 	

  

 7

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