Document:

License and Co-Development

 Exhibit 10.1 
  

	
	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment. The omitted portions have been marked ******** and have been filed separately with the
Commission.
	

 License and Co-Development Agreement

  
 By and Between 
  
 Cell Therapeutics, Inc., 
 Cell Therapeutics Europe S.r.l. 
 and 
 Novartis International Pharmaceutical Ltd. 
  

 TABLE OF CONTENTS 
  

					
	 1.
	  	DEFINITIONS AND INTERPRETATION	  	1
	 2.
	  	LICENSES; ASSIGNMENT	  	13
	 3.
	  	GOVERNANCE	  	16
	 4.
	  	DISCLOSURE OF LICENSOR KNOW-HOW AND COOPERATION	  	19
	 5.
	  	DEVELOPMENT	  	19
	 6.
	  	COMMERCIALIZATION; MANUFACTURING AND SUPPLY; PHARMACOVIGILANCE	  	23
	 7.
	  	CO-DETAILING OPTION	  	25
	 8.
	  	FINANCIAL PROVISIONS	  	27
	 9.
	  	REPORTS AND PAYMENT TERMS	  	31
	 10.
	  	INTELLECTUAL PROPERTY RIGHTS	  	33
	 11.
	  	NON-COMPETITION	  	37
	 12.
	  	CONFIDENTIALITY	  	38
	 13.
	  	TERM AND TERMINATION	  	40
	 14.
	  	EFFECT OF TERMINATION	  	41
	 15.
	  	REPRESENTATIONS, WARRANTIES AND COVENANTS	  	43
	 16.
	  	INDEMNIFICATION; LIABILITY	  	50
	 17.
	  	PUBLICATIONS AND PUBLICITY	  	52
	 18.
	  	GENERAL PROVISIONS	  	53

  

					
	SCHEDULE A-1	 	–	  	COMPOUND - ********
	SCHEDULE A-2	 	–	  	COMPOUND - ********
	SCHEDULE B	 	–	  	LICENSOR PATENTS
	SCHEDULE C	 	–	  	OUTLINE OF DEVELOPMENT PLAN
	SCHEDULE D	 	–	  	MAJOR PHARMACEUTICAL COMPANIES
	SCHEDULE E	 	–	  	STRUCTURE OF PIXANTRONE
	SCHEDULE F	 	–	  	FORM OF ASSIGNMENT OF LICENSOR TRADEMARKS
	SCHEDULE G-1	 	–	  	TERM SHEET FOR PIXANTRONE OPTION
	SCHEDULE G-2	 	–	  	TERM SHEET FOR PIXANTRONE OPTION
	SCHEDULE H	 	–	  	MANUFACTURING AND SUPPLY AGREEMENT KEY TERMS AND PRINCIPLES
	SCHEDULE I	 	–	  	SAMPLE INVOICE
	SCHEDULE J	 	–	  	THIRD PARTY AGREEMENTS
	SCHEDULE K	 	–	  	LICENSOR PATENTS (PIXANTRONE)
	SCHEDULE L	 	–	  	THIRD PARTY EXPERT PROCEDURES

 The information marked by ******** has been omitted by a request for confidential treatment.

 The omitted portion has been filed separately with the Commission. 
  

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 LICENSE AND CO-DEVELOPMENT AGREEMENT 
 This AGREEMENT is made as of the 15th day of September, 2006 (the “Execution Date”), by and between Novartis International Pharmaceutical Ltd., a limited company organized and existing under the laws of Bermuda
(“Novartis”); Cell Therapeutics, Inc., a corporation organized and existing under the laws of the State of Washington (“CTI”); and Cell Therapeutics Europe S.r.l., a corporation organized and existing under the laws
of Italy (“CTI Europe” and, together with CTI, “Licensor”). Novartis and Licensor are each referred to individually as a “Party” and together as the “Parties.” 
 RECITALS 
 WHEREAS,
Licensor owns or Controls the Licensor Patents and Licensor Know-How (each as defined below) relating to the Product (as defined below); and 
 WHEREAS, Novartis wishes to obtain, and Licensor wishes to grant, an exclusive license to the Product on the terms and conditions set forth herein; 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Parties agree as follows. 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	 	1.1	Definitions. Unless the context otherwise requires, the terms in this Agreement with initial letters capitalized, shall have the meanings set forth below, or the meaning as
designated in the indicated places throughout this Agreement. 

 “Acceptable Label” means, for a specific indication (such as,
for the first line treatment of non small cell lung cancer in women), that the Product has been granted Regulatory Approval in the appropriate jurisdiction for such specific indication by achieving its primary survival end point in the corresponding
pivotal study(ies) and which primary survival end point for the Product was more favorable (with a difference which was statistically significant) than for the control arm in such pivotal study(ies). 
 “Accounting Standards” means, with respect to Licensor, US GAAP (United States Generally Accepted Accounting Principles) and, with
respect to Novartis, IFRS (International Financial Reporting Standards), in each case, as generally and consistently applied throughout such Party’s organization. 
 “Affiliate” means, with respect to a Party, any Person that controls, is controlled by, or is under common control with that Party. For the purpose of this definition, “control” shall mean
direct or indirect ownership of more than fifty percent (50%) of the shares of stock entitled to vote for the election of directors, in the case of a corporation, or more than fifty percent (50%) of the equity interest in the case of any
other type of legal entity, or any other arrangement whereby the Person has the power to elect a majority of the board of directors or equivalent governing body of a corporation or other entity, or the ability to cause the direction of the
management or policies of a corporation or other entity. The Parties acknowledge that in the case of certain entities organized under the laws of certain 

 countries, the maximum percentage ownership permitted by law for a foreign investor may be less than
fifty percent (50%), and that in such case such lower percentage shall be substituted in the preceding sentence, provided that such foreign investor has the power to direct the management and policies of such entity. 
 “Alliance Manager” shall have the meaning set forth in Section 3.1. 
 “April 30 License Agreement” means the License Agreement dated April 30, 1998 between the April 30 Licensors and PG-TXL
Company, L.L.C., a Delaware limited liability company. 
 “April 30 Licensors” means, collectively, Chun Li, Ph.D., Sidney
Wallace, M.D., David J Yang, Ph.D. and Dong Fang Yu, M.S. 
 “Bankruptcy” means, with respect to either Party,
(a) such Party shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency, or other similar law now or hereinafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, or shall consent to any such relief or to the appointment of or taking possession by any such official in
an involuntary case or other proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall take any corporate action to authorize any of the foregoing; (b) an involuntary case or other proceeding
shall be commenced against such Party seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency, or other similar law now or hereinafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of thirty (30) days; (c) a
decree or order for relief shall be entered against such Party under any bankruptcy, insolvency, or other similar law as now or hereafter in effect; or (d) the failure to pay its debts as they come due by, or the admission in writing of the
inability to pay its debts as they become due by, such Party. In the case of Licensor, for purposes of this definition, Party shall include CTI and each Subsidiary thereof. 
 “Calendar Quarter” means the respective periods of three consecutive calendar months ending on March 31, June 30,
September 30 and December 31. 
 “Change of Control” means any of the following events: (a) any Person (or
group of Persons acting in concert) becomes the beneficial owner, directly or indirectly, through a purchase, merger or other acquisition transaction or series of transactions, of more than forty percent (40%) of the total voting power of the
stock then outstanding of CTI normally entitled to vote in elections of directors; (b) any Person shall succeed in having sufficient of its nominees (who are not supported by a majority of the then current Board of Directors of CTI) elected to
the Board of Directors of CTI such that such nominees, when added to any existing directors remaining on the Board of Directors of CTI after such election who are Affiliates of or acting in concert with any such Person, shall constitute a majority
of the Board of Directors of CTI; (c) CTI consolidates with or merges into another corporation or entity, or any corporation or entity consolidates with or merges into CTI, in either event pursuant to a transaction in which more than fifty
percent (50%) of the total voting power of the stock outstanding of the surviving entity 
  

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 normally entitled to vote in elections of directors is not held by the parties holding at least fifty
percent (50%) of the outstanding shares of CTI preceding such consolidation or merger; or (d) CTI conveys, transfers or leases all or substantially all of its assets to any Person. 
 “Chugai Agreement” means the License Agreement dated October 19, 2001 between CTI Technologies, Inc. and Chugai Pharmaceutical Co.
Ltd. 
 “Claims” means all Third Party demands, claims, actions, proceedings and liability (whether criminal or civil, in
contract, tort or otherwise) for losses, damages, reasonable legal costs and other reasonable expenses of any nature whatsoever. 
 “Co-Detail” is a term of art as used in this Agreement, and notwithstanding any more general meaning of the word “detail” in common parlance in the pharmaceutical industry or the definition of the word
“Detail” in this Agreement, “Co-Detail” for purposes of this Agreement means the activities of Novartis and CTI or their Affiliates in regard to Detail ******** activities with respect to the Product. 
 “Co-Detailing Agreement” shall have the meaning set forth in Section 7.1(a). 
 “Co-Detailing Option” means the option described in Section 7. 
 “Co-Detailing Period” means the period, if any, commencing upon the execution of the Co-Detailing Agreement and continuing until the
earlier to occur of (i) ten (10) years thereafter or (ii) the expiration of the last to expire Valid Claim of the Licensor Patent Rights claiming the composition of matter of the Product or the use for which the Product is being sold
in the United States. 
 “Commercialize” means to market, promote, distribute, import, export, offer to sell and/or sell
Product and/or conduct other Commercialization, and “Commercialization” means commercialization activities relating to Product, including activities relating to marketing, promoting, distributing, importing, exporting, offering for
sale and/or selling Product. 
 “Commercially Reasonable Efforts” means, with respect to the efforts to be expended by a
Party hereunder, efforts and resources comparable to those used by such Party for a compound or product with similar market or commercial prospects at a similar stage in the product life cycle, taking into account the stage and risk of Development
or Commercialization of the compound or product, the cost effectiveness of efforts or resources while optimizing profitability, the competitiveness of alternative compounds or products that are or are expected to be in the marketplace, the scope and
duration of Patent rights or other property rights related to the compound or product, the profitability of the compound or product and alternative products or other relevant commercial factors. 
 “Competing Product” means any competing product, other than the Product, containing ******** as an active ingredient, which product has
received Regulatory Approval in a given country ********. 
 The information marked by ******** has been omitted by a request for confidential
treatment. 
 The omitted portion has been filed separately with the Commission. 
  

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 “Compound” means any of (i) ********, which has the structure set forth on
Schedule A-1, and its prodrugs and metabolites, (ii) ********, which has the structure set forth on Schedule A-2, and the prodrugs and metabolites of ********, and (iii) the acids, bases, isomers, enantiomers, esters, salts,
hydrates, solvates and polymorphs of any of the foregoing. 
 “Confidential Information” means all Know-How and other
proprietary information and data of a financial, commercial or technical nature which the disclosing Party or any of its Affiliates has supplied or otherwise made available to the other Party or its Affiliates, whether made available orally, in
writing or in electronic form. 
 “Confidentiality Agreement” means that certain Confidential Disclosure Agreement dated
October 17, 2001 by and between CTI and Novartis Pharmaceuticals Corporation. 
 “Control” or
“Controlled” means, with respect to any Know-How, Patent Rights, other intellectual property rights, or any proprietary or trade secret information, the legal authority or right (whether by ownership, license or otherwise) of a
Party to grant a license or a sublicense of or under such Know-How, Patent Rights, or intellectual property rights to another Person, or to otherwise disclose such proprietary or trade secret information to another Person, without breaching the
terms of any agreement with a Third Party, or misappropriating the proprietary or trade secret information of a Third Party. 
 “CPI” means the consumer price index industry data figure (CPI All Items Urban, series ID CUUR0000SAO) as published by the Bureau of Labor Statistics of the U.S. Department of Labor (web address: www.bls.gov).

 “CTI Personnel” shall have the meaning set forth in Section 7.2. 
 “CTI Sales Force” shall have the meaning set forth in Section 7.2. 
 “Detail” means face-to-face discussions with physicians and other health care practitioners who are permitted under applicable laws to
prescribe the Product, for the purpose of promoting the Product to such physicians or practitioners. 
 “Develop” or
“Development” means drug development activities, including, without limitation, test method development and stability testing, assay development and audit development, toxicology, formulation, quality assurance/quality control
development, statistical analysis, clinical studies, packaging development, regulatory affairs, and the preparation, filing and prosecution of NDAs and MAAs. 
 “Development Budget” means the budget for the Development activities to be undertaken by the Parties under the Development Plan, which Development Budget shall be included in the Development Plan.

 “Development Costs” means, with respect to the Compound and/or Product, reasonable expenses and other costs, including
regulatory expenses, incurred by or on behalf of a Party in connection with clinical trials in the Development of the Compound and/or Product in accordance with the approved Development Plan and Development Budget, including, without limitation, the
costs of clinical trials, the preparation, collation and/or 
 The information marked by ******** has been omitted by a request for
confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

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 validation of data from such clinical trials and the preparation of medical writing and publishing;
provided that Development Costs shall include the cost of Phase IIIB Clinical Trials and Phase IV Clinical Trials only if they are intended (or are subsequently used) to support expanded labeling for such Product, or to satisfy
requirements imposed by Regulatory Authorities in connection with Regulatory Approvals for such Product (including, by way of example, to support conditional approvals). Without limitation of the generality of the foregoing, Development Costs shall
include: 
 (a) all Out-of-Pocket Costs incurred by the Parties or their Affiliates; 
 (b) the direct and indirect costs of internal scientific, medical or technical personnel (including personnel expense, travel expenses and
infrastructure costs but for the avoidance of doubt, not including the costs of managerial, financial, legal or business development personnel) engaged in such efforts; 
 (c) the cost of clinical supply, costs for such efforts as agreed, including without limitation (i) costs of clinical supplies,
(ii) expenses incurred to purchase and/or package comparator drugs, and (iii) costs and expenses of disposal of clinical samples; and 
 (d) the costs of Regulatory Filings and of consultation and pre-submission meetings with Regulatory Authorities, to the extent such costs are to be considered Development Costs in accordance with the Development Plan.

 “Development Plan” means the Development plan setting out the activities to be undertaken by the Parties in
connection with the Development of the Compound and/or Product in the Territory, and the allocation of responsibilities between the Parties; provided that such allocation of responsibilities shall be consistent with Section 5. Attached hereto
as Schedule C is a preliminary outline of the initial Development Plan. 
 “Development Rights” shall have the
meaning set forth in Section 5.2(b). 
 “Development Rights Exercise Period” shall have the meaning set forth in
Section 5.2(c). 
 “Effective Date” means the date this Agreement enters into effect as determined in accordance with
Section 18.15. 
 “EMEA” means the European Medicines Agency and any successor agency thereto. 
 “Encumbrance” means any claim, charge, equitable interest, hypothecation, lien, mortgage, pledge, option, license, assignment, power of
sale, retention of title, right of pre-emption, right of first refusal or security interest of any kind. 
 “Execution Date”
shall have the meaning set forth in the first paragraph of this Agreement. 
 “Existing Third Party License Agreements”
means, collectively, (i) the PG-TXL License Agreement, (ii) the April 30 License Agreement, (iii) an Assignment dated February 1, 1999 from the April 30 Licensors to PG-TXL relating to US Patent, Serial 
  

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 No. 08/815,104, (iv) an Assignment dated February 1, 1999 from the April 30 Licensors
to PG-TXL relating to US Patent, Serial No. 09/050,662, (v) the letter dated March 11, 1997, from Charles B. Mullins, M.D., on behalf of The University of Texas System, to John Mendelsohn, M.D., on behalf of The University of
Texas M.D. Anderson Cancer Center and (vi) the letter dated July 26, 1999 from John Mendelsohn, M.D., on behalf of The University of Texas M.D. Anderson Cancer Center, to the April 30 Licensors. 
 “Field” means all fields of use, including the treatment, prophylaxis and/or diagnosis of any and all human or animal diseases or
conditions. 
 “First Line” means use of the Product as the initial treatment for a given condition or indication.

 “FDA” means the United States Food and Drug Administration, or a successor federal agency thereto. 
 “First Commercial Sale” means, with respect to a Product, the first arm’s length sale to a Third Party for use or consumption of any
such Product in a country after receipt of Product Approval in such country or, if no Regulatory Approval is required, the date upon which such Product is first Launched in such country. 
 “FTE” means the equivalent of one (1) qualified person devoting a number of hours equivalent to that of a full time employee, as
determined in accordance with the applicable Party’s customary procedures, but, in any event, excluding general managerial activities spent in managing such Party’s business, but no less than ********. 
 “FTE (Detailing)” means one (1) FTE sales representative having the requisite skills and devoted to Detailing the Product in
accordance with the Co-Detailing Agreement. In addition, with regard to FTEs (Detailing) who Detail a Product for CTI, such FTEs (Detailing) must primarily Detail the Product and must not at the same time Detail a product which would be considered
by doctors as a replacement for the Product. For the avoidance of doubt, FTE (Detailing) shall exclude any managerial activities. 
 “FTE (********)” means one (1) FTE ******** having the requisite skills and devoted to ******** activities related to the Product in accordance with the Co-Detailing Agreement. For the avoidance of doubt, FTE (********)
shall exclude any managerial activities. 
 “FTE Rate (Detailing)” means the actual cost of one (1) FTE (Detailing), not
to exceed ********. For the avoidance of doubt, FTE Rate (Detailing) shall include reasonable day-to-day business-related travel expenses, but shall exclude all travel expenses related to training. 
 “FTE Rate (********)” means the actual cost of one FTE (********). For the avoidance of doubt, FTE Rate (********) shall include
reasonable day-to-day business-related travel expenses, but shall exclude all travel expenses related to training. 
 “HSR
Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules promulgated thereunder. 
 The
information marked by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed separately with
the Commission. 
  

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 “HSR Filing Date” shall have the meaning set forth in Section 18.15. 
 “IND” means an Investigational New Drug application in the US filed with the FDA or the corresponding application for the investigation
of Products in any other country or group of countries, as defined in the applicable laws and regulations and filed with the Regulatory Authority of a given country or group of countries. 
 “Joint Development Committee” or “JDC” means the committee established as set forth in Section 3.4. 
 “Invention” shall have the meaning set forth in Section 10.1(a). 
 “Joint Invention” shall have the meaning set forth in Section 10.1(b). 
 “Joint Patents” means Patents claiming any Joint Invention. 
 “Joint Steering Committee” or “JSC” means the committee established as set forth in Section 3.2. 
 “Know-How” means all technical information, know-how and data, including inventions, discoveries, trade secrets, specifications, instructions, processes, formulae, materials, expertise and other
technology applicable to formulations, compositions, products or their manufacture, Development, registration, use or Commercialization or methods of assaying or testing them or processes for their manufacture, formulations containing them,
compositions incorporating or comprising them and including all biological, chemical, pharmacological, biochemical, toxicological, pharmaceutical, physical and analytical, safety, quality control, manufacturing, preclinical and clinical data,
instructions, processes, formulae, expertise and information, regulatory filings and copies thereof, relevant to the Development, manufacture, use or Commercialization of and/or which may be useful in studying, testing, Development, production or
formulation of products, or intermediates for the synthesis thereof. 
 “Launch” means, with respect to any country, the
first date of commercial sale of a Product to Third Parties in such country in such quantities as are customarily required for the general introduction of a pharmaceutical product in such country. 
 “Licensor Know-How” means any Know-How owned or Controlled by Licensor or its Affiliates as of the Execution Date or thereafter during
the term of this Agreement relating to ********. 
 “Licensor Patents” or “Licensor Patent Rights” means the
Patent Rights identified in Schedule B, which shall be updated from time to time, and any other Patent Rights owned or Controlled by Licensor or its Affiliates as of the Execution Date or thereafter during the term of this Agreement
having claims covering ********. 
 “Licensor Technology” means the Licensor Know-How and Licensor Patent Rights. 

The information marked by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

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 “Licensor Trademarks” means, collectively, the XYOTAXTM trademark and any other
trademark(s) and internet domain names (including www.xyotax.com) owned or Controlled by Licensor or any of its Affiliates, as may be selected by Licensor or its Affiliates for use on or in connection with the sale of the Product in the Territory.

 “MAA” means an application for the authorization for marketing of a Product in any country or group of countries outside
the United States, as defined in the applicable laws and regulations and filed with the Regulatory Authority of a given country or group of countries. 
 “Major European Countries” means ********. 
 “Major Pharmaceutical Company”
means (i) at a given time, a top ******** pharmaceutical company based on sales of ethical pharmaceuticals for the prior fiscal year as published by Pharmaceutical Executive or, in the event that Pharmaceutical Executive no longer publishes
such a list, a comparable publisher, and (ii) any of the companies listed on Schedule D. 
 “Manufacturing and Supply
Agreement” shall have the meaning set forth in Section 6.4(a). 
 “Milestones” means the milestones relating to
the Product as set forth in Section 8.2. 
 “Milestone Payments” means the payments to be made by Novartis to Licensor
upon the achievement of the corresponding Milestones as set forth in Section 8.2. 
 ******** 
 “NDA” means a New Drug Application in the United States for authorization for marketing of a pharmaceutical product, as defined in the
applicable laws and regulations and filed with the FDA. 
 “Negotiation Rights” shall have the meaning set forth in
Section 2.4(c). 
 “Net Sales” means the gross amounts invoiced by or on behalf of Novartis, its Affiliates and their
respective sublicensees for sales of Products to Third Parties that are not Affiliates or sublicensees of the selling party (unless such Affiliate or sublicensee is the end user of such Product, in which case the amount billed therefor shall be
deemed to be the amount that would be billed to a Third Party end user in an arm’s-length transaction), less the following deductions, determined in accordance with Novartis’ standard accounting methods as generally and consistently
applied by Novartis and without duplication, to the extent included in the gross invoiced sales price of any Product or otherwise directly paid or incurred by Novartis, its Affiliates or sublicensees with respect to the sale of such Product:

 (a) normal and customary trade and quantity discounts actually allowed and properly taken directly with respect to sales of the
Product; (b) amounts repaid or credited by reasons of defects, rejection, recalls, returns, field destroys, rebates and allowances of goods specifically identifiable to the Product; (c) chargebacks and other amounts paid on sale or
dispensing of such Product; (d) amounts payable resulting from governmental, 
 The information marked by ******** has been omitted by a
request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

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 regulatory or agency mandated rebate programs; (e) tariffs, duties, excise, sales, value-added and
other taxes (other than taxes based on income); (f) retroactive price reductions that are actually allowed or granted; (g) cash discounts actually granted for timely payment; (h) delayed ship order credits actually granted;
(i) discounts actually granted pursuant to indigent patient programs and patient discount programs, including, without limitation, “Together Rx” and coupon discounts; (j) deduction of a fixed percentage of one percent
(1%) for distribution and warehouse expenses; (k) amounts repaid or credited for uncollectible amounts on previously sold products; and (l) any other specifically identifiable amounts included in gross amounts invoiced for Products,
to the extent such amounts are customary exclusions from net sales calculations in the pharmaceutical industry for reasons substantially equivalent to those listed above and are reasonable in amount relative to similar deductions taken by Novartis
in calculating net sales of its other products. 
 In the event the Product is sold in a finished dosage form containing the Compound in
combination with one or more other active ingredients (a “Combination Product”), the Net Sales of the Product, for the purposes of this Agreement, shall be determined by multiplying the Net Sales (as defined above) of the
Combination Product by the fraction, A/(A+B) where A is the weighted (by sales volume) average sale price in a particular country of the Product when sold separately in finished form and B is the weighted average sale price in that country of the
other product(s) sold separately in finished form. In the event that such average sale price cannot be determined for both the Product and the other product(s) in combination, Net Sales for purposes of determining royalty payments shall be agreed by
the Parties based on the relative value contributed by each component, such agreement shall not be unreasonably withheld. 
 “Non-Compete Period” means ******** . 
 “Novartis Development Commencement Date” shall have the
meaning set forth in Section 5.2(b). 
 “NSCLC” means non-small cell lung cancer. 
 “Out-of-Pocket Costs” means reasonable, direct and documented expenses paid to Third Parties and specifically identifiable and incurred
in connection with the Development of the Compound and/or Product. Such expenses shall have been recorded as income statement items in accordance with the applicable Accounting Standards and, for the avoidance of doubt, shall not include pre-paid
amounts, capital expenditures or Licensor’s or its Affiliates’ employees’ travel expenses. 
 “Patents” or
“Patent Rights” means all patents and patent applications, including all divisionals, continuations, substitutions, continuations-in-part, re-examinations, reissues, additions, renewals, extensions, registrations, and supplemental
protection certificates and the like of any of the foregoing. 
 “Person” means any individual, partnership, limited
liability company, firm, corporation, association, trust, unincorporated organization or other entity. 
 The information marked by ********
has been omitted by a request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

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 “PG-TXL” means PG-TXL Company, L.P., a Delaware limited partnership. 
 “PG-TXL License Agreement” means the License Agreement dated November 13, 1998 between PG-TXL Company, L.P. and CTI, as amended by a
“First Amendment” dated May 5, 2000 and an “Amendment No. 1” dated February 1, 2006. 
 “Phase III
Clinical Trial” means a clinical study in patients designed to ascertain efficacy and safety of a Product for the purpose of preparing and submitting a Regulatory Filing to the competent Regulatory Authority in a particular country.

 “Phase IIIB Clinical Trial” means a Phase III Clinical Trial commenced before receipt of Product Approval in the
jurisdiction where such trial is being conducted, but which is not required for receipt of Product Approval and is conducted primarily for the purpose of Product support (i.e., providing additional drug profile data). 
 “Phase IV Clinical Trial” means a clinical study initiated in a country after receipt of Product Approval for a Product in such country.

 “PIONEER Study” means the multinational, randomized clinical trial (PGT305), with approximately 600 PS2 chemotherapy-naive
women with advanced stage NSCLC, pursuant to which (i) each study arm of approximately 300 patients will be randomized to receive either the Product or paclitaxel once every three weeks, and (ii) the primary endpoint is superior overall
survival with several secondary endpoints including disease control, response rate in patients with measurable disease, time to disease progression, and disease-related symptoms. 
 “Pixantrone” means the anthracenedione which has the structure set forth on Schedule E, its prodrugs and metabolites, as well
as its and their acids, bases, isomers, enantiomers, esters, salts, hydrates, solvates and polymorphs and any related compound with the same mechanism of action (collectively, the “Pixantrone Compound”), including any product which
incorporates or comprises the Pixantrone Compound in finished dosage form. 
 “Pixantrone Assets” means Pixantrone and all
Patent Rights, Know-How and other intellectual property owned or Controlled by Licensor or its Affiliates relating to Pixantrone. 
 “Pixantrone Exercise Notice” shall have the meaning set forth in Section 2.4(a). 
 “Pixantrone
License” shall have the meaning set forth in Section 2.4(a). 
 “Pixantrone Option” shall have the meaning set
forth in Section 2.4(a). 
 “Pixantrone Option Know-How” means any Know-How owned or Controlled by Licensor or its
Affiliates as of the Execution Date or thereafter relating to Pixantrone, its use, composition, formulation, preparation or manufacture or which is necessary or useful for the Development, registration, manufacture or Commercialization of
Pixantrone. 
 “Pixantrone Option Period” shall have the meaning set forth in Section 2.4(a). 
  

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 “Pixantrone Pivotal Study” means the multinational clinical trial (PIX301), Pixantrone
versus other chemotherapeutic agents for third-line single agent treatment of patients with relapsed aggressive non-Hodgkin’s Lymphoma, which is a randomized, controlled, Phase III comparative trial designed for approximately 320 patients
split equally between arms. 
 “Product” means a product incorporating or comprising the Compound in finished dosage
pharmaceutical form, including XYOTAXTM, (a) the Development, registration, manufacture, Commercialization or use of which would, but for the license granted hereunder, infringe the Licensor Patents or (b) which incorporates or
embodies Licensor Know-How. 
 “Product Approval” means, with respect to a Product in any country or jurisdiction, all
approvals (including where required, pricing and reimbursement approvals) necessary to market and sell such Product in such country or jurisdiction; provided that with respect to Europe, “Product Approval” means ********.

 “Radiosensitization” means the use of the Product to make tumor cells more sensitive to radiation therapy. 
 “Regulatory Approval” means, with respect to the Product in any country or jurisdiction, any approval (including where required, pricing
and reimbursement approvals), registration, license or authorization from a Regulatory Authority in a country or other jurisdiction that is necessary to market and sell such Product in such country or jurisdiction. 
 “Regulatory Authority” means any governmental agency or authority responsible for granting Regulatory Approvals for Products, including
the FDA, the EMEA and any national regulatory authorities. 
 “Regulatory Filings” means, with respect to the Compound or
Product, any submission to a Regulatory Authority of any appropriate regulatory application, and shall include, without limitation, any submission to a regulatory advisory board, marketing authorization application, and any supplement or amendment
thereto. For the avoidance of doubt, Regulatory Filings shall include any IND, NDA or the corresponding application in any other country or group of countries. 
 “Sales Report” means a written report or reports showing each of: (a) the Net Sales of each Product in each country in the Territory during the reporting period by Novartis, its Affiliates and
sublicensees and (b) the royalties, payable in US Dollars, which shall have accrued under Section 8.3 with respect to such Net Sales and the basis of calculating those royalties. 
 “Second Line” means use of the Product as the second treatment for a given condition or indication. 
 The information marked by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

 11 

 “Subsidiary” means the following: an entity shall be deemed to be a
“Subsidiary” of another Person if such Person directly or indirectly owns, beneficially or of record (i) an amount of voting securities or other equity interests in such Person that is sufficient to enable such Person to elect at
least a majority of the members of such Person’s board of directors or other governing body, or (ii) at least fifty percent (50%) of the outstanding equity interests of such Person. 
 “Territory” means all countries of the world. 
 “Third Party” means any Person other than a Party or an Affiliate of a Party. 
 “Third Party Collaboration” means a license, purchase, collaboration, co-promotion, co-Development, co-marketing, co-detailing or any similar arrangement with a Third Party. 
 “Third Party Expert Procedures” means the dispute resolution procedures set forth on Schedule L. 
 “Transfer” means, directly or indirectly, to sell, transfer, assign, pledge, encumber, hypothecate or similarly dispose of, either
voluntarily or involuntarily, or to enter into any contract, option or other arrangement or understanding with respect to the sale, transfer, assignment, pledge, Encumbrance, hypothecation or similar disposition of, any equity securities
beneficially owned by a Person or any interest in any equity securities beneficially owned by a Person. 
 “United States” or
“US” means the United States of America, its territories and possessions, including, without limitation, the Commonwealth of Puerto Rico. 
 “US JMC” means the committee established as set forth in Section 3.6. 
 “USD” or “US$” means the lawful currency of the United States. 
 “Valid Claim”
means a claim of an issued patent that has not expired or been revoked, held invalid or unenforceable by a patent office, court or other governmental agency of competent jurisdiction in a final and non-appealable judgment (or judgment from which no
appeal was taken within the allowable time period) or a claim within a patent application that has not been revoked, cancelled, withdrawn, held invalid or abandoned and which has not been pending for more than ********. 
  

	 	1.2	Interpretation. In this agreement unless otherwise specified: 

  

	 	(a)	“includes” and “including” shall mean includes and including without limitation; 

  

	 	(b)	a Party includes its permitted assignees and/or the respective successors in title to substantially the whole of its undertaking; 

  

	 	(c)	a statute or statutory instrument or any of their provisions is to be construed as a reference to that statute or statutory instrument or such provision as the same may have
been or may from time to time hereafter be amended or re-enacted; 

 The information marked by ******** has been omitted by a
request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

 12 

	 	(d)	words denoting the singular shall include the plural and vice versa and words denoting any gender shall include all genders; 

  

	 	(e)	the Schedules and other attachments form part of the operative provision of this Agreement and references to this Agreement shall, unless the context otherwise requires,
include references to the recitals and the Schedules and attachments; 

  

	 	(f)	the headings in this Agreement are for information only and shall not be considered in the interpretation of this Agreement; and 

  

	 	(g)	general words shall not be given a restrictive interpretation by reason of their being preceded or followed by words indicating a particular class of acts, matters or things.

  

	2.	LICENSES; ASSIGNMENT 

  

	 	2.1	Licensor Technology License; Licensor Trademarks Assignment. 

  

	 	(a)	Subject to the terms and conditions of this Agreement, Licensor hereby grants to Novartis an exclusive (even as to Licensor), sub-licensable (pursuant to Section 2.2)
license, under the Licensor Technology to Develop, register, make, have made, use and Commercialize the Compound and Product in the Field in the Territory. Licensor will not have any right to Develop, register, make, have made, use or Commercialize
the Compound or Product except pursuant to and in accordance with this Agreement and the Manufacturing and Supply Agreement, and will not license, directly or indirectly, any Third Party the right to perform any of the foregoing activities with
respect to the Compound or Product in the Field in the Territory. 

  

	 	(b)	On the Effective Date, Licensor shall transfer and assign all of its right, title and interest in and to the Licensor Trademarks to Novartis or an Affiliate thereof. In order
to effectuate such assignment, on the Effective Date, Licensor shall execute and deliver to Novartis a written assignment(s) of all of its right, title and interest in and to the Licensor Trademarks, substantially in the form of
Schedule F. Such Licensor Trademarks may not be transferred, licensed (except as provided in Section 2.3(b)), assigned or otherwise disposed of by Novartis prior to the Novartis Development Commencement Date.

  

	 	2.2	Sublicense Rights. Novartis may sublicense the rights granted to it by Licensor under this Agreement in whole or in part at any time to any of its Affiliates, distributors or
subcontractors. Novartis may sublicense the rights granted to it by Licensor under this Agreement in whole or in part at any time to any Third Party upon the prior written consent of Licensor, which shall not be unreasonably withheld, conditioned or
delayed. 

  

	 	2.3	Sublicense and License to Licensor. 

  

	 	(a)	Subject to the terms and conditions of this Agreement, Novartis hereby grants to Licensor (i) a co-exclusive (with Novartis) sublicense of the licenses granted to
Novartis under Section 2.1(a) solely to Develop and Commercialize the Product 

  

 13 

 prior to the Novartis Development Commencement Date and (ii) a non-exclusive sublicense of the
licenses granted to Novartis under Section 2.1(a) solely to perform Licensor’s Development obligations, if any, under this Agreement following the Novartis Development Commencement Date and to manufacture the Compound and/or Product
pursuant to Section 6.4(a) and under the Manufacturing and Supply Agreement. Licensor shall not further sublicense such rights without the prior written consent of Novartis. 
  

	 	(b)	Subject to the terms and conditions of this Agreement, Novartis hereby grants to Licensor a non-exclusive royalty-free license to use the Licensor Trademarks solely in
connection with (i) the manufacture, Development and Commercialization of the Product prior to the Novartis Development Commencement Date and (ii) the performance of Licensor’s Development obligations, if any, under this Agreement and
Licensor’s obligations under the Manufacturing and Supply Agreement. Licensor shall not sublicense such rights without the prior written consent of Novartis. 

  

	 	2.4	Pixantrone Option. 

  

	 	(a)	Licensor hereby grants Novartis an exclusive option (the “Pixantrone Option”), exercisable in Novartis’ sole discretion, to receive an exclusive
worldwide sublicensable license (a “Pixantrone License”) with respect to the Pixantrone Assets on the terms and conditions set forth on the Term Sheet attached hereto as Schedule G-1 or Schedule G-2, as
determined in accordance with Section 2.4(b) below. The Pixantrone Option shall be exercisable, in Novartis’ sole discretion, at any time during the period (the “Pixantrone Option Period”) commencing on the Effective Date
and ending on the later to occur of (i) three hundred sixty-five (365) days following the date upon which the data-base has been locked on the Pixantrone Pivotal Study or (ii) thirty (30) days following the expiration of the
Development Rights Exercise Period. Licensor shall promptly notify Novartis in writing of the locking of such data-base. If Novartis elects to exercise the Pixantrone Option, it shall provide written notice thereof (the “Pixantrone Exercise
Notice”) to Licensor. If Novartis provides the Pixantrone Exercise Notice to Licensor, then for one hundred eighty (180) days (the “Negotiation Period”) after receipt by Novartis of the information package specified in
Section 2.4(c)(i) below, Novartis shall have the Negotiation Rights hereinafter defined. If the Pixantrone Option expires without Novartis’ having provided the Pixantrone Exercise Notice to Licensor, then Novartis shall have no further
rights under this Section 2.4 with respect to the Pixantrone Assets. 

  

	 	(b)	If Novartis provides the Pixantrone Exercise Notice to Licensor at any time after Xyotax Abandonment (as defined below) by Novartis, then the terms set forth in
Schedule G-1 shall apply to the Pixantrone License to be negotiated by the Parties pursuant to this Section 2.4. If Novartis provides the Pixantrone Exercise Notice to Licensor at any other time during the Pixantrone Option Period,
then the terms set forth in Schedule G-2 shall apply to the Pixantrone License to be negotiated by the Parties pursuant to this Section 2.4. For purposes of this Section 2.4, “Xyotax Abandonment” shall mean
either (i) the Development Rights Exercise Period shall have expired without Novartis having exercised its Development Rights or (ii) Novartis shall have terminated the Development Rights Exercise Period pursuant to
Section 5.2(c)(ii). 

  

 14 

	 	(c)	“Negotiation Rights” shall mean the following rights: 

  

	 	(i)	To request and receive an information package from Licensor and its Affiliates pertaining to the Pixantrone Assets, which shall include all Patents and Know-How owned or
Controlled by Licensor or its Affiliates pertaining to the Pixantrone Assets (including all Development reports and all interim reports and data regarding the Pixantrone Pivotal Study); 

  

	 	(ii)	To meet with and discuss the Pixantrone Assets, including the Pixantrone Pivotal Study, with Licensor’s and its Affiliates’ scientific personnel;

  

	 	(iii)	To receive samples from Licensor and its Affiliates of the compound(s) included in the Pixantrone Assets and to conduct tests on such compounds; 

  

	 	(iv)	To conduct any other due diligence regarding the Pixantrone Assets, including the Pixantrone Pivotal Study; and 

  

	 	(v)	To negotiate with Licensor pursuant to Section 2.4(d) below. 

  

	 	(d)	During the Negotiation Period, Licensor and Novartis shall use commercially reasonable efforts to negotiate in good faith the details of a mutually acceptable exclusive
license agreement with respect to the Pixantrone Assets. Such agreement shall be on the terms set forth in Schedule G-1 or Schedule G-2, as applicable, and both Parties hereby agree that an exclusive license agreement on such
terms shall be acceptable. From the Execution Date until the expiration of the Negotiation Period, neither Licensor nor its Affiliates shall (i) provide any Negotiation Rights to any Third Party or otherwise solicit or encourage (including by
way of furnishing information), or maintain discussions or negotiations, or take any other action to facilitate or consummate, any inquiries or the making of any proposal, relating to a Third Party Collaboration with respect to the Pixantrone Assets
or (ii) enter into a Third Party Collaboration with respect to the Pixantrone Assets. For avoidance of doubt, the preceding sentence shall not restrict Licensor from activities related solely to a potential acquisition, merger or consolidation
transaction which would constitute a Change of Control of CTI. 

  

	 	(e)	In the event that Novartis sends the Pixantrone Exercise Notice, but the Parties or their designated Affiliates do not enter into a license agreement for the Pixantrone
Assets within the Negotiation Period, then Licensor shall not, for a period of six (6) months following the date of the expiration of the Negotiation Period, enter into a Third Party Collaboration with respect to the Pixantrone Assets upon
terms that are more favorable (in the aggregate) to the Third Party than those last-offered to Novartis in connection with the Parties’ negotiations of a license agreement for the Pixantrone Assets during the Negotiation Period.

  

	 	(f)	Beginning on the Effective Date and thereafter on a continuing basis until the expiration of the Pixantrone Option, Licensor, without additional consideration,

  

 15 

 shall disclose to Novartis or its designated Affiliate all Pixantrone Option Know-How. Such disclosure
shall include all Pixantrone Option Know-How pertaining to the manufacture and Development of Pixantrone, including manufacturing batch records, Development reports (including all interim reports and data regarding the Pixantrone Pivotal Study),
analytical results, raw material and excipient sourcing information, quality audit findings and any other relevant technical information. From time to time until the expiration of the Pixantrone Option, at the request of Novartis, Licensor or its
Affiliates, shall, at Novartis’ cost and subject to availability, provide to Novartis or its designated Affiliate de minimis quantities of Pixantrone for use in connection with activities under this Agreement. Licensor will provide reasonable
assistance to Novartis or its designated Affiliate in connection with understanding the Pixantrone Option Know-How. 
  

	 	(g)	Prior to expiration or termination of the Pixantrone Option, Licensor shall not sell, transfer, dispose of, enter into a Third Party Collaboration with respect to or grant or
permit to exist any Encumbrance on any of the Pixantrone Assets. 

  

	3.	GOVERNANCE 

  

	 	3.1	Alliance Managers. Within fifteen (15) days following the Effective Date, each Party will appoint a senior representative having a general understanding of drug
manufacturing, Development and Commercialization issues to act as its alliance manager under this Agreement (“Alliance Manager”). The Alliance Managers will be primarily responsible for facilitating the flow of information and
otherwise promoting communication, coordination and collaboration within and among the Joint Steering Committee and the other committees and between the Parties; providing single point communication for seeking consensus both internally within the
respective Party’s organization and together regarding key global strategy and planning issues, as appropriate, including facilitating review of external corporate communications; and raising cross-Party and/or cross-functional disputes to the
JSC in a timely manner. Each Party may replace its Alliance Manager on written notice to the other Party. 

  

	 	3.2	Joint Steering Committee. 

  

	 	(a)	The Parties will establish a Joint Steering Committee, composed of two senior executives of CTI and two senior executives of Novartis (which senior executives for each Party,
collectively, shall have a general understanding of drug manufacturing, Development and Commercialization issues) and each Party’s Alliance Manager. 

  

	 	(b)	Within thirty (30) days of the Effective Date, each Party will designate its initial members to serve on the JSC and notify the other Party of the dates of availability for the
first meeting of the JSC. Each Party may replace its representatives on the JSC on written notice to the other Party. 

  

	 	(c)	The JSC will: (i) oversee the collaborative activities of the Parties under this Agreement; (ii) prior to the Novartis Development Commencement Date, review
Commercialization activities with respect to the Product, including reviewing and 

  

 16 

 approving a Commercialization plan and any amendments thereto; (iii) review Development activities
hereunder and review and approve the Development Plan and recommendations made by the JDC regarding proposed amendments to the Development Plan; (iv) until such time as CTI is no longer supplying Product, serve as a forum for keeping
Novartis’ manufacturing representatives informed of issues relating to manufacture and supply of Compound and/or Product; and (v) consider and act upon such other matters as specified in this Agreement. The JSC also may, at any time it
deems necessary or appropriate, establish additional joint committees, including a manufacturing committee, and delegate responsibilities to such joint committees. The JSC will also be responsible for resolving disputes that may arise between the
Parties or among the Parties’ respective representatives on the JDC, US JMC or any other committee established by the Parties hereunder. Each Party may from time to time invite a reasonable number of participants, in addition to its
representatives, to attend JSC meetings in a non-voting capacity, with the consent of the other Party (which shall not be unreasonably withheld). Prior to the Novartis Development Commencement Date, CTI shall appoint one of its representatives on
the JSC to act as chairperson of the JSC. Following the Novartis Development Commencement Date, Novartis shall appoint one of its representatives on the JSC to act as chairperson of the JSC. The chairperson shall set agendas for JSC meetings,
provided that the agendas will include any matter requested by either Party. The chairperson shall be responsible for recording, preparing and, within a reasonable time, issuing draft minutes of each JSC meeting, which draft minutes shall be subject
to review and approval by all JSC members. 
  

	 	(d)	Each Party shall in good faith consult with the other and take such other Party’s views into account in respect of any matter before the JSC or any other committee
established by the Parties hereunder. Decisions of the JSC shall be made by unanimous vote, with each Party’s representatives to the JSC collectively having one vote. In the event of a disagreement among the JSC, the matter shall be referred to
the President of Novartis Oncology (or a designee with similar authority to resolve such dispute) and the Chief Executive Officer of CTI, who shall attempt in good faith to resolve such disagreement. If they cannot resolve such issue within thirty
(30) days of the matter being referred to them, then (i) if the date of the expiration of such thirty (30) day period is prior to the Novartis Development Commencement Date, the resolution and/or course of conduct shall be determined
by CTI, in its sole discretion or (ii) if the date of the expiration of such thirty (30) day period is on or after the Novartis Development Commencement Date, the resolution and/or course of conduct shall be determined by Novartis, in its
sole discretion. However, in no event shall CTI or Novartis, as the case may be, in exercising its final decision-making authority, have the right: 

  

	 	(i)	to modify or amend the terms and conditions of this Agreement; or 

  

	 	(ii)	to determine any such issue in a manner that would conflict with the express terms and conditions of this Agreement. 

  

	 	3.3	Meetings of the Joint Steering Committee. The JSC shall meet quarterly and at such other times as the Parties may agree. The first meeting of the JSC shall be held as soon as
reasonably practicable, but in no event later than ninety (90) days 

  

 17 

 after the Effective Date. Meetings shall be held at such place or places as are mutually agreed or by
teleconference or videoconference; provided, however, that there shall be at least one face-to-face meeting per calendar year, unless the Parties otherwise agree. 
  

	 	3.4	Joint Development Committee. 

  

	 	(a)	Following the Novartis Development Commencement Date, the Parties will establish a Joint Development Committee, with equal representation from both Parties, which shall
oversee all Development activities (including clinical Development) with respect to the Compound and/or Product during the term of this Agreement, including the review and preparation for approval by the JSC of the Development Plan and all updates
and amendments thereto pursuant to Section 5.1. Decisions of the JDC shall be made by unanimous vote, with each Party’s representatives to the JDC collectively having one vote. Details regarding the composition of the JDC, meeting
logistics and specific responsibilities of the JDC will be established by the JSC. Disputes within or issues that cannot be resolved by the JDC will be raised to the JSC for resolution. The JDC may appoint a joint project team, having an equal
number of representatives of each Party, which will meet telephonically or in person at least once each month to review and direct day-to-day activities under the Development Plan. Notwithstanding the foregoing, each Party shall have the right to
have its own internal project team, which will not include any representation by the other Party. 

  

	 	(b)	During any period prior to the formation of the JDC or after the JDC has disbanded, any necessary or appropriate responsibilities or functions that would be performed by the
JDC were it in existence shall be performed by the JSC, provided that the JSC shall not be required to review the Development Plan quarterly pursuant to Section 5.1(a). 

  

	 	3.5	Disbanding of JDC. The JDC shall disband at any time upon the determination of the JSC, subject to being re-formed by the JSC from time to time as the JSC deems necessary or
appropriate. 

  

	 	3.6	US Joint Marketing Committee. In the event that CTI exercises the Co-Detailing Option, the Parties will establish a Joint Marketing Committee for the US (“US
JMC”) during the Co-Detailing Period. The US JMC shall be the primary forum for CTI to provide its input regarding commercial strategy with respect to the Product in the US; provided, however, that (i) all marketing activities for the
Product in the Territory (including the US and including decisions by the US JMC) will be determined and controlled by Novartis and (ii) all strategies and decisions relating to the establishment of the pricing for the Product shall be made
solely by Novartis without consultation with CTI. The US JMC shall review and approve, at least annually, a Commercialization plan, which plan will include, among other things, strategies and budgets for Commercialization of the Product in the
United States, including the number of sales representatives, ******** and Details. Details regarding the composition of the US JMC and meeting logistics of the US JMC will be established by the JSC following successful exercise of the Co-Detailing
Option. 

 The information marked by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

 18 

	 	3.7	Costs of Committee Participation. The Parties agree that the costs incurred by each Party in connection with its participation in JSC, JDC, US JMC or other committee meetings
shall be borne solely by such Party. 

  

	4.	DISCLOSURE OF LICENSOR KNOW-HOW AND COOPERATION 

  

	 	4.1	Disclosure of Licensor Know-How. Beginning on the Effective Date and thereafter on a continuing basis during the term of this Agreement, Licensor, without additional
consideration, shall disclose to Novartis or its designated Affiliate all Licensor Know-How. Such disclosure shall include all Licensor Know-How pertaining to the manufacture and Development of the Compound and/or Product, including manufacturing
batch records, Development reports (including all interim reports and data regarding the PIONEER Study), analytical results, raw material and excipient sourcing information, quality audit findings and any other relevant technical information.

  

	 	4.2	Cooperation. From time to time during the term of this Agreement at the request of Novartis, Licensor or its Affiliates, shall, at Novartis’ cost and subject to
availability, provide to Novartis or its designated Affiliate de minimis quantities of the Compound and/or Product that it has in its possession for use in connection with activities under this Agreement. Licensor will provide reasonable assistance
to Novartis or its designated Affiliate in connection with understanding and using the Licensor Know-How for purposes consistent with the Development Plan and the licenses and rights granted to Novartis hereunder, including by providing information
to assist Novartis or its designated Affiliate in developing formulations of the Product and its related activities. 

  

	5.	DEVELOPMENT 

  

	 	5.1	Development Plan. 

  

	 	(a)	The Development Plan and all updates and amendments thereto shall be subject to the review and comment by the JDC and approval of the JSC. The JDC will review the Development
Plan at least every Calendar Quarter. 

  

	 	(b)	Within thirty (30) days following the Effective Date, Licensor will prepare an initial draft Development Plan based on the outline attached hereto as
Schedule C and submit such initial draft Development Plan for review, comment and approval by the JSC. Prior to the Novartis Development Commencement Date, Licensor will be responsible for preparing and submitting to the JSC updates and
amendments to the Development Plan from time to time for review, comment and approval by the JSC, as determined by Licensor. Novartis will have the opportunity to review and provide comments through the JSC on the Development Plan and updates and
amendments thereto, and Licensor will reasonably take into account Novartis’ comments on the Development Plan. If Licensor refuses to accept any material comments by Novartis on the Development Plan, Licensor shall promptly provide Novartis
with a written explanation of the reason for such refusal. 

  

 19 

	 	(c)	Following the Novartis Development Commencement Date, Novartis will be responsible for preparing and submitting to the JDC updates and amendments to the Development Plan from
time to time for review and comment by the JDC and approval by the JSC, as determined by Novartis. CTI will have the opportunity to review and provide comments through the JDC and JSC on the Development Plan and updates and amendments thereto, and
Novartis will reasonably take into account CTI’s comments on the Development Plan. 

  

	 	5.2	Responsibility for Development. 

  

	 	(a)	Prior to the exercise by Novartis of its Development Rights, Licensor will be solely responsible for Development of the Compound and Product in the Territory in accordance
with the Development Plan and applicable Launch plans. 

  

	 	(b)	Novartis shall have the right (the “Development Rights”) at any time during the Development Rights Exercise Period, in its sole discretion, to elect
to be solely responsible for Development of the Compound and Product in the Territory by written notice to Licensor. In the event that Novartis exercises its Development Rights, then from and after the date of such exercise (the “Novartis
Development Commencement Date”), Novartis will be solely responsible for Development of the Compound and Product in the Territory in accordance with the Development Plan. 

  

	 	(c)	Upon receipt by Licensor or its Affiliate of Product Approval with an Acceptable Label with respect to the Product in either the United States or Europe, Licensor shall
promptly give written notice thereof to Novartis, including, to the extent not previously provided, a copy of such Product Approval, all related documentation and any additional documents and information reasonably requested by Novartis
(collectively, the “Product Approval Information Package”). The “Development Rights Exercise Period” means the period beginning on the Effective Date and continuing until the earlier to occur of (i) the
expiration of thirty (30) days following receipt by Novartis of the Product Approval Information Package or (ii) Novartis’ determination, in its sole discretion, to terminate the Development Rights Exercise Period by written notice to
Licensor. 

  

	 	(d)	As between the Parties, Licensor shall be the sponsor of any clinical trials with respect to the Product in the Territory commenced prior to the exercise by Novartis of its
Development Rights and will retain liability for such trials and the activities related thereto. Upon exercise by Novartis of its Development Rights, Novartis shall have the right to take over control and responsibility for any such clinical trials
with respect to the Product that are in progress as of the Novartis Development Commencement Date and shall have the right to continue, modify or terminate any such trials in its sole discretion. As between the Parties, Novartis shall be the sponsor
of any clinical trials with respect to the Product in the Territory commenced after the Novartis Development Commencement Date and will retain liability for such trials and the activities related thereto. 

  

	 	(e)	Licensor represents and warrants that all changes to the protocol and statistical plan for the PIONEER Study requested by the FDA prior to the date hereof have been made.
Licensor shall not make any changes to the protocol and statistical plan for the PIONEER Study without the prior written consent of Novartis and amendment to the Special Protocol Agreement with the FDA. 

  

 20 

	 	5.3	Development Costs. 

  

	 	(a)	CTI shall be solely responsible for all costs associated with the Development of the Product prior to the Novartis Development Commencement Date. After the Novartis
Development Commencement Date, (i) Novartis shall be solely responsible for all costs associated with its Development of the Product, except as set forth in Section 5.3(b), and (ii) Novartis shall be responsible for the reimbursement
of CTI and it Affiliates pursuant to Section 5.3(c). 

  

	 	(b)	Notwithstanding anything contained in this Agreement to the contrary, following the Novartis Development Commencement Date, Licensor shall reimburse Novartis for twenty
percent (20%) of all Development Costs incurred by Novartis or its Affiliates anywhere in the Territory relating to any clinical study sponsored by Novartis or its Affiliates or investigator sponsored study funded by Novartis or its Affiliates,
which study, in either case, is intended (or is subsequently used) to support expanded labeling for such Product, or to satisfy requirements imposed by Regulatory Authorities in connection with Regulatory Approvals for such Product (including, by
way of example, to support conditional approvals). Such reimbursement shall be made quarterly in arrears, payable in accordance with Section 9.1(c); provided, that if Licensor fails to reimburse Novartis for any such Development Costs, Novartis
shall have the right to offset the amount thereof, in whole or in part, against any Milestone Payments or royalties due to Licensor hereunder and such failure to so reimburse shall not be considered a breach hereof. After the Novartis Development
Commencement Date, CTI shall not fund or otherwise support any investigator sponsored study with respect to the Product without the prior written consent of Novartis. 

  

	 	(c)	Following the Novartis Development Commencement Date, Novartis shall reimburse Licensor solely for (i) fifty percent (50%) of all Development Costs incurred by
Licensor or its Affiliates after the Novartis Development Commencement Date in connection with clinical trials for the Product in the Territory that were commenced by Licensor prior to the Novartis Development Commencement Date and which Novartis
elects to continue pursuant to Section 5.2(d), provided that such reimbursement obligation shall in no event exceed fifty percent (50%) of the budget for any such trial for the applicable period as set forth in the Development Budget in
effect immediately prior to Novartis’ exercise of its Development Rights; (ii) fifty percent (50%) of all Development Costs incurred by Licensor or its Affiliates after the Novartis Development Commencement Date directly in connection
with the winding down and termination of clinical trials for the Product in the Territory that were commenced by Licensor prior to the Novartis Development Commencement Date and which Novartis elects not to continue pursuant to Section 5.2(d);
and (iii) Out-of-Pocket Costs incurred after the Novartis Development Commencement Date and paid to Third Parties by Licensor or its Affiliates in connection with manufacturing scale-up for the Product, such Out-of-Pocket Costs not to exceed
the amount budgeted therefor in the Development Budget. The aggregate amount of such reimbursements shall be made quarterly in arrears, payable in accordance with Section 9.1(c). 

  

 21 

	 	5.4	Regulatory. 

  

	 	(a)	The JDC will approve all regulatory plans and strategies and the schedule for regulatory submissions. Pursuant to Section 4.1, Licensor will provide Novartis with copies
of any correspondence or other documentation it has submitted to, or received from, any Regulatory Authority relating to the Compound or Product. 

  

	 	(b)	Licensor shall be solely responsible, at its sole expense, for obtaining Regulatory Approvals for Products in the Territory prior to the exercise by Novartis of its
Development Rights. Prior to the Novartis Development Commencement Date, all Regulatory Filings submitted in any country in the Territory in connection with obtaining Regulatory Approvals to test or market the Compound or Product, including all IND,
NDA and MAA submissions and other Regulatory Filings relating to the Compound or Product, shall be owned by, and submitted by and in the name of, Licensor or its Affiliates. Licensor will promptly deliver to Novartis copies of all relevant
regulatory correspondence or other documents received by Licensor or its Affiliates with respect to the Compound or Product. Prior to making any Regulatory Filing or submitting any correspondence or other documentation to any Regulatory Authority
with respect to the Compound or Product, Licensor shall deliver to Novartis a copy thereof in draft form. Novartis will have the opportunity to review and provide comments thereon and Licensor will reasonably take into account Novartis’
comments. Novartis will have the right to be present at all meetings with Regulatory Authorities. 

  

	 	(c)	Within thirty (30) days after Novartis’ exercise of its Development Rights, Licensor or its Affiliates, without additional consideration, will transfer to Novartis
or its designated Affiliate all Regulatory Approvals and Regulatory Filings in the Territory and provide complete copies of the same to Novartis or its designated Affiliates. Following the Novartis Development Commencement Date, (i) Novartis
shall be solely responsible, at its sole expense (subject to Section 5.3(b)), for obtaining any Regulatory Approvals for Product in the Territory and (ii) all Regulatory Filings submitted in any country in the Territory in connection with
obtaining Regulatory Approvals to test or market the Compound or Product, including all IND, NDA and MAA submissions and other Regulatory Filings relating to the Compound or Product, shall be owned by, and submitted by and in the name of, Novartis,
its Affiliates or designees. 

  

	 	(d)	Licensor shall fully cooperate with and provide reasonable assistance to Novartis in connection with Regulatory Filings in the Territory relating to the Compound or Product,
including by executing any required documents, providing access to personnel and providing Novartis with copies of all reasonably required documentation. 

  

	 	(e)	To the extent required, Licensor shall grant or cause to be granted to Novartis and its Affiliates or sublicensees cross-reference rights to any relevant drug master files
and other filings submitted by Licensor or its Affiliates with any Regulatory Authority with respect to the Compound or Product. Licensor also shall use 

  

 22 

 commercially reasonable efforts to assist Novartis and its Affiliates or sublicensees in obtaining
cross-reference rights to any relevant drug master files and other filings submitted by Third Parties with any Regulatory Authority with respect to the Compound or Product. If Novartis exercises the Development Rights, Novartis shall grant or cause
to be granted to Licensor and its Affiliates or sublicensees cross-reference rights to the portions of any drug master files and other filings submitted by Novartis or its Affiliates with any Regulatory Authority in regard to the Compound or Product
that specifically relate to Licensor’s polymer technology. 
  

	 	(f)	Novartis shall have the right to disclose the existence of, and the results from, any clinical trials conducted under this Agreement in accordance with its standard policies.
Licensor shall have the right to disclose the existence of, and the results from, any clinical trials conducted under this Agreement upon prior review and approval by the JDC or as otherwise permitted by Section 17. 

  

	 	5.5	Compliance. Each Party agrees that in performing its obligations under the Development Plan (a) it shall comply with all applicable current international regulatory
standards, including cGMP, cGLP, cGCP and other rules, regulations and requirements and (b) it will not employ or use any person that to its actual knowledge has been debarred under Section 306(a) or 306(b) of the U.S. Federal Food, Drug
and Cosmetic Act. 

  

	 	5.6	Subcontracting. Novartis may subcontract the performance of Development activities with respect to the Compound and/or Product hereunder to Affiliates or Third Parties at its
discretion, upon the approval of the JDC. Licensor may subcontract the performance of Development activities with respect to the Compound and/or Product hereunder to Affiliates or Third Parties at its discretion, upon the approval of the JDC.

  

	6.	COMMERCIALIZATION; MANUFACTURING AND SUPPLY; PHARMACOVIGILANCE 

  

	 	6.1	Commercialization. 

  

	 	(a)	Prior to the exercise by Novartis of its Development Rights, Licensor shall have the right, at its sole expense, to engage in Commercialization activities with respect to the
Product, provided that (i) Novartis will have the opportunity to review and provide comments on any such proposed activities and Licensor will reasonably take into account Novartis’ comments and (ii) Novartis shall have the right, in
its sole discretion and at its own expense, to engage in marketing studies and other appropriate commercialization activities with respect to the Product. 

  

	 	(b)	Following the Novartis Development Commencement Date, Novartis will be solely responsible for all aspects of Commercialization of the Product in the Territory, including
planning, implementation, distribution, booking of sales, pricing and reimbursement, except for the opportunity for Licensor to provide input into the marketing activities through the JSC and/or US JMC, as appropriate. Novartis will undertake such
activities at its sole expense. Promptly following the Novartis Development Commencement Date, the Parties will 

  

 23 

 cooperate in taking such actions as may be requested by Novartis to transfer Commercialization
responsibilities to Novartis. Following the Novartis Development Commencement Date, neither Licensor nor any of its Affiliates shall undertake or participate in any aspect of Commercialization of the Product in the Territory, without the prior
written consent of Novartis. 
  

	 	6.2	Diligence. During the term of this Agreement, Novartis shall use Commercially Reasonable Efforts to promote the Product in the Territory; provided that it is recognized and
acknowledged by Licensor that such obligation to use Commercially Reasonable Efforts shall not require Novartis to Develop and Commercialize the Product in every country in the Territory. In addition to the provisions of Section 18.5, and
notwithstanding any other provision hereof, Novartis’ obligations under this Section 6.2 may be delayed or suspended at such time and for so long as Novartis determines in good faith that there exists any safety (including toxicity),
efficacy, regulatory, technical, medical, or legal or similar issue or issues regarding the competitive position of the Product that could adversely affect the Product. 

  

	 	6.3	US JMC. In the event that CTI exercises the Co-Detailing Option, during the Co-Detailing Period, Novartis will consult with CTI through the US JMC regarding the
Commercialization planning and strategy in the US for the Product, provided, however, that all such decisions will be at the sole discretion of Novartis. 

  

	 	6.4	Manufacturing and Supply. 

  

	 	(a)	Prior to the exercise by Novartis of its Development Rights, Licensor will be solely responsible for the manufacture and supply of the Compound and Product, including for use
in all clinical and pre-clinical studies, provided that Novartis shall have the right to review and provide comments on any such proposed activities, including that Licensor shall in good faith consult with Novartis and seriously consider
Novartis’ views and advice in respect of any manufacturing related matters, contracts and decisions (e.g., as to identity of major suppliers and any manufacturing related issues which may materially impact the registration or commercialization
of the Product). 

  

	 	(b)	Following the exercise by Novartis of its Development Rights, Novartis or its designated sublicensee(s) will be solely responsible for the manufacture and supply of the
Compound and Products being Developed or Commercialized under this Agreement. Pursuant to the exercise of its manufacturing rights, Novartis shall engage CTI to supply the Compound and/or Product to it pursuant to a Manufacturing and Supply
Agreement (the “Manufacturing and Supply Agreement”) which shall be entered into between the Parties or their designated Affiliates within one hundred eighty (180) days following the Effective Date. The Manufacturing and Supply
Agreement shall include customary provisions and incorporate the key terms and principles contained in Schedule H. 

  

	 	6.5	Pharmacovigilance. Within six (6) months following the Effective Date, the Parties shall agree upon and implement a procedure for the mutual exchange of adverse event
reports and safety information associated with the Product. Details of the operating procedure respecting such adverse event reports and safety 

  

 24 

 information exchange shall be the subject of a mutually-agreed written pharmacovigilance agreement
between the Parties which shall be entered into within such six (6) month period. 
  

	7.	CO-DETAILING OPTION 

  

	 	7.1	Co-Detailing Option. 

  

	 	(a)	Effective following the Novartis Development Commencement Date, CTI will have the option (“Co-Detailing Option”) to obtain the right to Co-Detail the Product
in the US in accordance with this Section, the terms and conditions of this Agreement and the terms and conditions of the Co-Detailing Agreement as described below. Following the Novartis Development Commencement Date, the Co-Detailing Option shall
be exercisable by CTI by written notice to Novartis given at any time during the period commencing ******** and ending ******** days thereafter. In the event CTI exercises the Co-Detailing Option, CTI and Novartis or its designated Affiliate shall
negotiate in good faith to enter into a Co-Detailing agreement (the “Co-Detailing Agreement”) with respect to Co-Detailing of the Product in the US, which shall contain the terms and conditions set forth in this Section 7 and
such other terms and conditions as are customary for agreements of such type. 

  

	 	(b)	Novartis shall have the right to terminate the Co-Detailing Option (or CTI’s Co-Detailing activities pursuant to this Section 7 and the Co-Detailing Agreement) at
any time upon written notice to CTI in the event that either CTI or any of its Affiliates becomes subject to any “corporate integrity” agreement or any other agreement, consent decree, order or obligation imposing restrictions or
obligations, which restrictions or obligations are beyond those required by law in general and, as they apply to or affect CTI or Novartis or their respective Affiliates with respect to the Product, are more extensive in scope or time or otherwise,
or are more restrictive than those obligations and restrictions, if any, imposed on Novartis or its Affiliates with respect to the Product independently of such aforesaid “corporate integrity” agreement or other agreement, decree, order or
obligation. 

  

	 	7.2	Staffing Levels. Upon commencement of the Co-Detailing Period, CTI will establish, or will have established prior to such point, a commercial organization of appropriate size
as determined by Novartis sufficient to perform the required Co-Detailing activities, including field based sales representatives (the “CTI Sales Force”) and up to ******** that have experience levels and background equivalent to
the Novartis sales and ********, respectively (such CTI Sales Force and ********, collectively, the “CTI Personnel”), in each case which meet any other reasonable requirements established by Novartis, provided that, except by mutual
agreement (i) in no event shall the CTI Personnel consist of more than ******** FTEs, (ii) at no time shall the number of CTI’s FTEs (Detailing) exceed ******** of the aggregate number of CTI’s and Novartis’ FTEs (Detailing)
and (iii) at no time shall the number of CTI’s FTEs (********) exceed ******** of the aggregate number of CTI’s and Novartis’ FTEs (********). After the ******** year of the Co-Detailing Period, 

 The information marked by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed
separately with the Commission. 
  

 25 

 the US JMC shall make such adjustments to the CTI Personnel as it deems appropriate in light of all
relevant considerations, subject (unless otherwise agreed by the Parties) to the restrictions set forth in clauses (i), (ii) and (iii) above. Promptly following exercise of the Co-Detailing Option, the US JMC shall establish
commercially reasonable parameters regarding the composition, qualifications and training of the CTI Personnel. Novartis shall provide appropriate training to the CTI Personnel at the facilities of Novartis or its designee. CTI shall be solely
responsible for all travel expenses incurred by CTI Personnel in connection with such training. The CTI Personnel will be hired, trained and in territory at least ******** days prior to ********. CTI will have no right to sublicense or assign the
Co-Detailing right nor to use any contract service organization to conduct Co-Detailing or ******** activities. 
  

	 	7.3	FTE Funding. In the event that Novartis exercises its Development Rights and CTI exercises the Co-Detailing Option, Novartis shall reimburse CTI for the cost of CTI’s
FTEs (Detailing) actually Co-Detailing the Product and its FTEs (********) actually working on the Product during the Co-Detailing Period, ********. Such reimbursements shall be made quarterly in arrears, payable in accordance with
Section 9.1(c), at the FTE Rate (Detailing) and FTE Rate (********), as applicable, but (i) in no event shall either such rate materially exceed ********, and (ii) in no event shall the aggregate amount of such reimbursement
obligation exceed ******** in any calendar year. In no event shall CTI be entitled to compensation or other payments from Novartis or its Affiliates pursuant to Section 7 except as specifically set forth in this Section 73. 

 

	 	7.4	Co-Detailing Activities. During the Co-Detailing Period, Novartis, in consultation with the US JMC, shall establish the sales and ******** field force deployment, strategies,
performance standards and training procedures and a written plan for Product Commercialization activities in the US. (Without limiting the generality of the foregoing, Novartis shall in its sole discretion determine whether, and the extent to which,
the CTI ******** will engage in any activities relating to investigator sponsored studies, including interactions with physicians relating to the conduct of such studies.) Following establishment of such written plan, the Parties shall use
Commercially Reasonable Efforts to perform their respective activities in accordance with such plan. In addition, Novartis shall establish commercially reasonable standards required to be met by each Party’s field sales force and ******** in
connection with the Detailing and ******** activities relating to the Product. During the Co-Detailing Period, the CTI Sales Force and CTI ******** shall be required to meet the same performance standards as the Novartis field sales and ********
force. Each Party will cause its sales and ******** teams and its other employees and agents to comply with all applicable laws, regulations and industry guidelines and Novartis policies in connection with the Co-Detailing and any other activity
with respect to the 

 The information marked by ******** has been omitted by a request for confidential treatment. 

The omitted portion has been filed separately with the Commission. 
  

 26 

 Product. Neither Party shall make any false or misleading representations to customers or others
regarding the other Party or its Affiliates or the Product and will not make any statements, representations, warranties or guarantees with respect to the efficacy, safety, specifications, features or capabilities of the Product that are not
consistent with the applicable current package insert or other documentation accompanying or describing the Product, including the disclaimers that have been provided by Novartis or any of its Affiliates to CTI; provided that the Parties may
distribute information concerning the Product or its use, including scientific articles, reference publications and healthcare economic information, in accordance with applicable laws, regulations and industry guidelines and Novartis policies, and
subject to the direction and oversight of the US JMC. For the avoidance of doubt, in Co-Detailing activities with respect to the Product, each Party shall use promotional, advertising, communication and educational materials and information that
have been approved by Novartis or its Affiliates in their sole discretion, without consultation with CTI, in accordance with any internal procedures as applicable. Neither Party shall make any negative statements about any other products of the
other Party or any of its Affiliates in an effort to promote the Product. 
  

	 	7.5	Termination of Co-Detailing. Novartis may, in its sole discretion, terminate the Co-Detailing and ******** activities of CTI (and, in such event, the Co-Detailing Period
shall terminate) in the event of the occurrence of any of the following: (a) CTI fails to establish CTI Personnel that meet the parameters regarding their composition, qualifications and training established pursuant to Section 7.2 prior
to Launch of the Product in the US; (b) the CTI Personnel fail to meet the performance standards established pursuant to Section 7.4 for ********; (c) as specifically provided in Section 7.1(b); or (d) as specifically
provided in Section 13.5 upon a Change of Control. 

  

	8.	FINANCIAL PROVISIONS 

  

	 	8.1	Purchase of Common Stock. Concurrently herewith, CTI and Novartis Pharma AG, an Affiliate of Novartis, have entered into a separate Securities Purchase Agreement pursuant to
which Novartis Pharma AG will purchase and CTI will sell shares of CTI’s common stock on the terms provided therein. 

  

	 	8.2	Milestone Payments. In consideration of the granting of the licenses and rights to Novartis hereunder, in the event that Novartis exercises its Development Rights, then from
and after the Novartis Development Commencement Date, upon achievement of each of the applicable Milestones set forth in clause (a) below, the corresponding one-time Milestone Payments shall be payable by Novartis to Licensor in accordance with
Section 9.1(a). In the event that any Milestone is achieved prior to the Novartis Development Commencement Date, upon Novartis’ exercise of its Development Rights (and transfer by Licensor to Novartis of the applicable Product Approval, to
the extent not previously transferred) the corresponding one-time Milestone Payment shall be payable by Novartis to Licensor in accordance with Section 9.1(a). 

 The information marked by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

 27 

	 	(a)	Milestone Payments. 

  

			
	 MILESTONE
	  	 PAYMENT

	 Product Approvals in the US:
	  	
		
	 •      Receipt by Novartis or receipt by Licensor and transfer to Novartis of Product Approval for the
Product with an Acceptable Label in the US for First Line treatment of NSCLC or Second Line treatment of NSCLC
	  	 ********

		
	 •      Receipt by Novartis or receipt by Licensor and transfer to Novartis of Product Approval for the
Product with an Acceptable Label in the US for the treatment of Ovarian cancer
	  	 ********

		
	 •      Receipt by Novartis or receipt by Licensor and transfer to Novartis of the first Product Approval
for the Product with an Acceptable Label in the US for the treatment of any one of the following cancers: Breast, Prostate, Head and Neck or Radiosensitization
	  	 ********

		
	 Product Approvals in Europe:
	  	
		
	 •      Receipt by Novartis or receipt by Licensor and transfer to Novartis of Product Approval for the
Product with an Acceptable Label in Europe for First Line treatment of NSCLC or Second Line treatment of NSCLC
	  	 ********

		
	 •      Receipt by Novartis or receipt by Licensor and transfer to Novartis of Product Approval for the
Product with an Acceptable Label in Europe for the treatment of Ovarian cancer
	  	 ********

		
	 •      Receipt by Novartis or receipt by Licensor and transfer to Novartis of the first Product Approval
for the Product with an Acceptable Label in Europe for the treatment of any one of the following cancers: Breast, Prostate, Head and Neck or Radiosensitization
	  	 ********

		
	 Product Approvals in Japan:
	  	
		
	 •      Receipt by Novartis or receipt by Licensor and transfer to Novartis of Product Approval for the
Product with an Acceptable Label in Japan for First Line treatment of NSCLC or Second Line treatment of NSCLC
	  	 ********

		
	 •      Receipt by Novartis or receipt by Licensor and transfer to Novartis of Product Approval for the
Product with an Acceptable Label in Japan for the treatment of Ovarian cancer
	  	 ********

 The information marked by ******** has been omitted by a request for confidential treatment.

 The omitted portion has been filed separately with the Commission. 
  

 28 

			
	 •      Receipt by Novartis or receipt by Licensor and transfer to Novartis of the first Product Approval
for the Product with an Acceptable Label in Japan for the treatment of any one of the following cancers: Breast, Prostate, Head and Neck or Radiosensitization
	  	********
		
	 Sales Milestones:
	  	
		
	 •      The first achievement of Net Sales of Product in the Territory in any Calendar Year of
US$1 billion
	  	 ********

		
	 •      The first achievement of Net Sales of Product in the Territory in any Calendar Year of
US$1.5 billion
	  	 ********

		
	 •      The first achievement of Net Sales of Product in the Territory in any Calendar Year of
US$2 billion
	  	 ********

		
	Total Potential Milestone Payments to Licensor	  	 US$270 million

  

	 	(b)	For the avoidance of doubt: (i) a Milestone shall be deemed achieved by the relevant Party if achieved by such Party or its Affiliate, (ii) each Milestone Payment
shall be payable only on the first occurrence of the Milestone, (iii) none of the Milestone Payments shall be payable more than once and (iv) in the event that all of the Sales Milestones set forth in Section 8.2(a) above are achieved
in a single calendar year, the aggregate Milestone Payments payable by Novartis in accordance with Section 9.1(a) with respect to such Sales Milestones would be US$150 million. 

  

	 	8.3	Royalty Payments. In consideration of the granting of the licenses and rights to Novartis hereunder, during the applicable Royalty Term (as defined in
Section 9.2) Novartis will make royalty payments to Licensor on Net Sales of Products in the Territory by Novartis, its Affiliates and their respective sublicensees, at the applicable rates set forth below. 

  

			
	 Aggregate Net Sales of Product in
 the Territory in any Calendar Year
	  	Royalty Rate
	The Portion of Net Sales less than or equal to US$750 million	  	********
		
	The Portion of Net Sales over US$750 million	  	********

  

	 	8.4	Third Party Obligations. 

  

	 	(a)	In the event that Novartis determines that it is necessary to obtain a license from a Third Party to Patent Rights or Know-How in order to enable it to Develop, register,
manufacture, use, sell or import Product, then ******** of all 

 The information marked by ******** has been omitted by a
request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

 29 

 of the royalties or other payments paid to such Third Party(ies) shall be creditable in whole or in part
by Novartis in its discretion against (i) royalty payments due to Licensor by Novartis with respect to the Net Sales of such Product and/or (ii) any subsequent Milestone Payments that become due hereunder; provided, that if the Third Party
Patent Rights or Know-How (x) were obtained by the Third Party pursuant to, or are asserted by the Third Party based, directly or indirectly, on contractual relationships with Licensor, its Affiliates or their respective predecessors or
(y) are asserted by any party (or its successors or assigns) to an Existing Third Party License Agreement, then one hundred percent (100%) of such royalties and other payments will be so creditable. Notwithstanding the above, Novartis
shall not be entitled to so deduct such royalties or other payments unless it shall have given Licensor written notice at least three (3) months prior to such deduction of its intention to do so together with a description of why it believes it
was necessary to obtain such license from a Third Party. 
  

	 	(b)	Licensor shall remain responsible for the payment of royalties and other payment obligations, if any, due to Third Parties under any Licensor Technology which has been
licensed to Licensor and is sublicensed to Novartis hereunder, including without limitation any payments due under the Existing Third Party License Agreements. 

  

	 	(c)	To the extent required under any license agreement pursuant to which a Third Party licenses intellectual property to a Party in respect of the Product, either Party may
disclose to the Third Party information regarding the Development status and Net Sales of the Products which are the subject of such license agreement; provided, however, that such disclosure is limited to the amount required under the license
agreement and is subject to confidentiality undertakings with respect to the information at least as restrictive as the terms of this Agreement. 

  

	 	8.5	Reduction in Royalty Rate. For any period during the Royalty Term in which (i) the sale of a Product in any country is not covered by a Valid Claim of Licensor Patents
covering the composition of matter of such Product or the use for which such Product is being sold in such country or (ii) a product containing the Compound (including a generic version of the Product or Compound) is being sold by a Third Party
in any country, then the royalty applicable to Net Sales of such Product in such country during such period shall be reduced by ********. 

  

	 	8.6	No Projections. Licensor and Novartis acknowledge and agree that nothing in this Agreement shall be construed as representing an estimate or projection of anticipated
sales of any Product, and that the Milestones and Net Sales levels set forth in Sections 8.2 and 8.3 or elsewhere in this Agreement or that have otherwise been discussed by the Parties are merely intended to define the Milestone Payments and
royalty obligations to Licensor in the event such Milestones and/or Net Sales levels are achieved. NEITHER LICENSOR NOR NOVARTIS MAKES ANY REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, THAT IT WILL BE ABLE TO SUCCESSFULLY COMMERCIALIZE ANY
PRODUCT OR, IF COMMERCIALIZED, THAT ANY PARTICULAR NET SALES LEVEL OF SUCH PRODUCT WILL BE ACHIEVED. 

 The information marked
by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed separately with the Commission.

  

 30 

	9.	REPORTS AND PAYMENT TERMS 

  

	 	9.1	Payment Terms. 

  

	 	(a)	Licensor shall provide Novartis with written notice of the achievement of each Milestone which is achieved prior to the Novartis Development Commencement Date, within thirty
(30) days after such achievement. Novartis shall provide CTI with written notice of the achievement of each Milestone which is achieved after the Novartis Development Commencement Date, within thirty (30) days after such achievement. After
receipt of such notice (if applicable), Licensor shall submit an invoice to Novartis substantially in the form of Schedule I with respect to the corresponding Milestone Payment, provided that no such invoice shall be submitted prior to
the Novartis Development Commencement Date and Novartis shall not be obligated to pay any Milestone unless and until Novartis exercises its Development Rights hereunder. Novartis shall make the Milestone Payment within sixty (60) days after
receipt of the invoice. 

  

	 	(b)	Within thirty (30) days after each Calendar Quarter during the term of this Agreement following the First Commercial Sale of a Product by Novartis, its Affiliates or
sublicensees, Novartis will provide to Licensor the Sales Report, including the royalties due with respect to such Calendar Quarter. Licensor shall submit an invoice to Novartis substantially in the form of Schedule I with respect to
such royalty amount. Novartis shall pay such royalty amount within ******** days after receipt of the invoice. 

  

	 	(c)	Each Party shall provide to the other Party an invoice for any other amounts due to it under this Agreement. Payments on such invoices shall be made within ******** of the
other Party’s receipt of the applicable invoice. Invoices to Novartis shall be substantially in the form set forth in Schedule I. 

  

	 	(d)	Payments to each Party shall be made by electronic wire transfer of immediately available funds to the account of the Party, as designated in writing to the other Party.

  

	 	(e)	For the avoidance of doubt, no payments shall become due and payable and neither Party will be obligated to reimburse the other Party for any costs incurred by the other
Party under or in connection with this Agreement unless and until this Agreement becomes effective in accordance with Section 18.15 and Novartis exercises its Development Rights. 

  

	 	(f)	Unless otherwise specified by CTI to Novartis in writing in accordance with Section 18.9, all payments by Novartis to Licensor hereunder shall be made to CTI.

  

	 	9.2	Royalty Term. Royalties will be payable on a Product-by-Product and country-by-country basis from First Commercial Sale of such Product in such country until the later of
(a) the expiration of the last to expire Valid Claim of the Licensor 

 The information marked by ******** has been omitted
by a request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

 31 

 Patent Rights claiming the composition of matter of such Product or the use of such Product which, but
for the licenses granted in this Agreement, would be infringed by the Development, registration, manufacture, use or Commercialization of such Product in such country or (b) ******** from the First Commercial Sale of any such Product in such
country (“Royalty Term”). Following the Royalty Term on a Product-by-Product and country-by-country basis, Novartis’ licenses under Section 2.1(a) with respect to such Product shall continue in effect, but become fully
paid-up, royalty-free, exclusive, transferable, perpetual and irrevocable. 
  

	 	9.3	Currency. All payments under this Agreement shall be payable in USD. When conversion of payments from any foreign currency is required to be undertaken by Novartis, the USD
equivalent shall be calculated using Novartis’ then-current standard exchange rate methodology applied in its external reporting (which is ultimately based on official rates such as Reuters and the European Central Bank) for the conversion of
foreign currency sales into USD. 

  

	 	9.4	Taxes. Licensor will pay any and all taxes levied on account of any payments made to it under this Agreement. If any taxes are required to be withheld by Novartis, Novartis
will (a) deduct such taxes from the payment made to Licensor, (b) timely pay the taxes to the proper taxing authority and (c) send proof of payment to Licensor. 

  

	 	9.5	Records and Audit Rights. 

  

	 	(a)	Each Party shall keep complete, true and accurate books and records in accordance with its Accounting Standards in sufficient detail for the other Party to determine the
payments due and costs incurred under this Agreement, including the royalties, Development Costs and, during the Co-Detailing Period, FTE utilization. Each Party will keep such books and records for at least ******** years following the end of
the fiscal year to which they pertain. 

  

	 	(b)	During the term of this Agreement and for ******** years thereafter, each Party (“Auditing Party”) shall have the right to appoint an independent,
internationally recognized accounting firm (“Auditor”) to audit the relevant records of the other Party and its Affiliates (and, in the case of Novartis, its sublicensees) which are authorized to sell Product or perform obligations
of the Party pursuant to this Agreement (“Audited Party”) to confirm Net Sales, royalties, Development Costs, FTE utilization (with respect to Licensor) and other payments for a period covering not more than the preceding
******** fiscal years; provided, however, that the Auditor is reasonably acceptable to the Audited Party and before beginning its audit, executes an undertaking reasonably acceptable to the Audited Party by which the Auditor shall keep
confidential all information reviewed during such audit and any other agreement customarily required by the Audited Party relating to access to its premises and books and records. The Auditor shall have the right to disclose to the Auditing Party
only its conclusions regarding the audit, which will remain Confidential Information of the Audited Party, subject to Section 12. 

 The information marked by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed
separately with the Commission. 
  

 32 

	 	(c)	The Audited Party shall make its records (and those of its Affiliates and sublicensees, as applicable) available for inspection by the Auditor during regular business hours
at the facility(ies) of the Audited Party where such records are customarily kept, upon reasonable notice from the Auditing Party solely to verify the accuracy of the reports given, payments due and costs shared under this Agreement. Such audit
right may only be exercised once per calendar year by the Auditing Party and only once with respect to records covering any specific fiscal year. 

  

	 	(d)	The Auditing Party shall bear the full cost of such audit, unless it discloses an underpayment of royalties or overbooking of costs by the Audited Party of more than
******** of the amount of royalties, costs or FTE funding due or incurred over the audited period, in which case, the Audited Party shall bear the full cost of such audit. The Audited Party shall promptly remit to the Auditing Party the amount
of any underpayment of royalties or the amount due because of any overbooking of costs or FTEs, and Novartis may credit against any subsequent royalties due to Licensor the amount of any overpayment of royalties. 

  

	10.	INTELLECTUAL PROPERTY RIGHTS 

  

	 	10.1	Ownership of Inventions. 

  

	 	(a)	All inventions arising from the Parties’ activities under this Agreement, including patent applications and patents covering such inventions (collectively,
“Inventions”), made solely by employees or consultants of a Party shall be owned by such Party. 

  

	 	(b)	All Inventions made jointly by employees or consultants of both Parties (“Joint Inventions”) shall be owned jointly by the Parties in equal shares.

  

	 	(c)	Determination of inventorship shall be made in accordance with US patent laws. 

  

	 	(d)	Licensor’s rights in any Inventions made under this Agreement and its interest in any Joint Inventions shall be included in the Licensor Technology for purposes of this
Agreement, including Section 2.1. 

  

	 	(e)	In the event of any disagreement between the Parties regarding the inventorship or ownership of any Invention, the Parties shall refer such dispute to a neutral Third Party
patent attorney or other appropriately qualified person who is neither a current or former employee or director of, nor a current or former consultant or outside counsel to, either Party and who is mutually agreed upon by the Parties.

  

	 	10.2	Patent Prosecution. 

  

	 	(a)	The Licensor Patent Rights in existence as of the Execution Date are listed in Schedule B hereto. The Parties shall update such Schedule as appropriate (and at
least once per Calendar Quarter) to add to Schedule B each Patent filed after the Execution Date that is owned or Controlled by Licensor or its Affiliates which would constitute a Licensor Patent hereunder. 

 The information marked by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

 33 

	 	(b)	Licensor, at its expense, will be responsible for filing, prosecuting and maintaining the Licensor Patent Rights, with Novartis having the right to review and comment on
drafts of substantive patent submissions with respect thereto. Licensor will keep Novartis regularly and fully informed of the status of such Licensor Patent Rights and provide copies of all substantive documentation submitted to, or received from,
the patent offices in connection therewith. 

  

	 	(c)	Licensor shall give timely notice to Novartis of any decision not to file applications for, or to cease prosecution and/or maintenance of, or not to continue to pay the
expenses of prosecution and/or maintenance of, any Licensor Patent Right on a country-by-country basis and, in such case, shall permit Novartis, at its sole discretion and expense, to file or to continue prosecution or maintenance of such Licensor
Patent Right. Licensor will provide such notice at least ******** days prior to any filing or payment due date, or any other due date that requires action, in connection with such Patent Right. If Novartis assumes responsibility for any Licensor
Patent Right pursuant to this Section, then Novartis shall have the right to offset the amount of all costs incurred by Novartis in connection with filing, prosecuting and maintaining such Licensor Patent Right, if not previously reimbursed, in
whole or in part, against any Milestone Payments or royalties due to Licensor hereunder. 

  

	 	(d)	Novartis, at its expense, will be solely responsible for filing, prosecuting and maintaining any Patent Rights owned solely by Novartis at its own expense.

  

	 	(e)	Novartis, at its expense, will be responsible for filing, prosecuting and maintaining the Joint Patents, with Licensor having the right to review and comment on drafts of
substantive patent submissions with respect thereto. Novartis will keep Licensor regularly and fully informed of the status of such Joint Patents and provide copies of all substantive documentation submitted to, or received from, the patent offices
in connection therewith. Licensor will assist Novartis in connection with the prosecution and maintenance of such Joint Patents, including by providing access to relevant persons and executing all required documentation. 

  

	 	(f)	Novartis shall give timely notice to Licensor of any decision not to file applications for, or to cease prosecution and/or maintenance of, or not to continue to pay the
expenses of prosecution and/or maintenance of, any Joint Patent on a country-by-country basis and, in such case, shall permit Licensor, at its sole discretion and expense, to file or to continue prosecution or maintenance of such Joint Patent.
Novartis will provide such notice at least ******** days prior to any filing or payment due date, or any other due date that requires action, in connection with such Patent Right. 

  

	 	(g)	The Parties agree that Joint Patents shall be exclusively licensed to Novartis in accordance with the terms of this Agreement. 

  

	 	10.3	Patent Infringement. 

  

	 	(a)	Each Party will promptly notify the other of any infringement by a Third Party of any Licensor Patent Rights or Joint Patents of which it becomes aware, including

 The information marked by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

 34 

 any “patent certification” filed by a Third Party FDA application which references the
foregoing (collectively “Third Party Infringement”), provided that in the event of a “patent certification,” such notice shall be given within ******** days. 
  

	 	(b)	Prior to the exercise by Novartis of its Development Rights, the Parties shall mutually agree on a case-by-case basis which Party (the “Selected Party”) will
have the first right to take any action in connection with a Third Party Infringement, and the other Party (the “Other Party”) shall have the right, at its own expense, to be represented in any such action by counsel of its own
choice. If the Selected Party fails to bring an action or proceeding with respect to, or to terminate, infringement of any such Licensor Patent Right or Joint Patent (i) within ******** days following the notice of alleged infringement or
(ii) prior to ******** days before the time limit, if any, set forth in the appropriate laws and regulations for the filing of such actions or for the prevention of the loss of a material right, whichever comes first, the Other Party shall
have the right to bring and control any such action at its own expense and by counsel of its own choice, and the Selected Party shall have the right, at its own expense, to be represented in any such action by counsel of its own choice; provided,
however that if the Selected Party notifies the Other Party in writing prior to ten (10) days before such time limit for the filing of any such action that the Selected Party intends to file such action before the time limit, then the Selected
Party shall be obligated to file such action before the time limit, and the Other Party will not have the right to bring and control such action. 

  

	 	(c)	After the exercise by Novartis of its Development Rights, Novartis will have the first right to take any action in connection with a Third Party Infringement as it reasonably
determines appropriate (including the right to take control of any ongoing action or proceeding at the time of such exercise which is being controlled by Licensor), and Licensor shall have the right, at its own expense, to be represented in any such
action by counsel of its own choice. If Novartis fails to bring an action or proceeding with respect to, or to terminate, infringement of any such Licensor Patent Right or Joint Patent (i) within ******** days following the notice of alleged
infringement or (ii) prior to ******** days before the time limit, if any, set forth in the appropriate laws and regulations for the filing of such actions, whichever comes first, Licensor shall have the right, upon written approval of Novartis
(such approval not to be unreasonably withheld), to bring and control any such action at its own expense and by counsel of its own choice, and Novartis shall have the right, at its own expense, to be represented in any such action by counsel of its
own choice; provided, however, that if Novartis notifies Licensor in writing prior to ten (10) days before such time limit for the filing of any such action that Novartis intends to file such action before the time limit, then Novartis shall be
obligated to file such action before the time limit, and Licensor will not have the right to bring and control such action. 

  

	 	(d)	At the request and expense of the Party controlling a Third Party Infringement action, the other Party shall provide reasonable assistance in connection therewith, including
by executing any required documents and joining as a party to the action if required. 

 The information marked by ******** has
been omitted by a request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

 35 

	 	(e)	Any recoveries resulting from an action relating to a claim of Third Party Infringement shall first be applied against payment of each Party’s costs and expenses in
connection therewith. In the event that Novartis brought such action, any remainder shall be retained by (or if received by Licensor, paid to) Novartis; provided, however, that if any such remainder is pursuant to a Licensor Patent covering a
Product on which Licensor is entitled to a royalty hereunder, then Licensor’s written designee shall be entitled to a royalty on such remainder at the applicable rate set forth in Section 8.3 as if the amount of such remainder were Net
Sales. In the event that Licensor brought such action, ********. 

  

	 	10.4	Defense of Actions. 

  

	 	(a)	In the event that a declaratory judgment or similar action alleging the invalidity or non-infringement of any of the Licensor Patent Rights or Joint Patents is initiated by
any Third Party, each Party will promptly notify the other. Prior to the exercise by Novartis of its Development Rights, the Parties shall mutually agree on a case-by-case basis which Party will have the right to defend and control such action.
After the exercise by Novartis of its Development Rights, Novartis shall have the right to defend and control such action. In the event that Novartis is defending and controlling any such action, then, at Novartis’ request and expense, Licensor
shall provide reasonable assistance to Novartis in connection therewith, including by executing any required documents and joining as a party to the action if required. The Party defending and controlling any such action shall give the other Party
timely notice of any proposed settlement of any such proceeding relating to a Licensor Patent Right or Joint Patent and shall not enter into such settlement admitting the invalidity of, or otherwise impairing Licensor’s or, if Novartis is such
other Party, Novartis’ rights in, such Patent Rights without the prior written consent of such other Party. 

  

	 	10.5	Trademarks. 

  

	 	(a)	Prior to the exercise by Novartis of its Development Rights, Licensor shall have the right, pursuant to the license granted to Licensor pursuant to Section 2.3(b), to
brand the Product using the Licensor Trademarks. 

  

	 	(b)	After the exercise by Novartis of its Development Rights, Novartis shall have the right to brand the Product using Novartis related trademarks and trade names and any other
trademarks and trade names it determines appropriate for the Product, which may vary by country or within a country (“Product Marks”). Novartis shall own all rights in the Product Marks and register and maintain the Product Marks in
the countries and regions it determines reasonably necessary. In addition, Novartis shall have the right to brand the Product using the Licensor Trademarks. In the event that CTI exercises the Co-Detailing Option, Novartis shall use, solely in the
United States and during the Co-Detailing Period, in 

 The information marked by ******** has been omitted by a request for
confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

 36 

 connection with all packaging, literature, labels and other printed matters, to the extent permitted by
law, the statement with a reasonable degree of prominence that the Product is licensed from CTI together with the CTI name or logo; provided, however, that Novartis’ obligation under this sentence shall not apply to any primary packaging of the
Product (i.e., packaging that is in direct contact with the Product itself, including but not limited to vials, blister packs, tablets and capsules, other than pill bottles). 
  

	 	10.6	Drug Price Competition and Patent Term Restoration Act. 

  

	 	(a)	The Parties agree to cooperate in an effort to avoid loss of any Patent Rights which may otherwise be available to the Parties hereto under the provisions of the Drug Price
Competition and Patent Term Restoration Act of 1984 or comparable laws outside the US, including by executing any documents as may be reasonably required. In particular, the Parties shall cooperate with each other in obtaining patent term
restoration or supplemental protection certificates or their equivalents in any country and region where applicable to the Licensor Patent Rights or Joint Patents. Licensor shall provide all reasonable assistance to Novartis, including permitting
Novartis to proceed with applications for such in the name of Licensor, if so required. 

  

	 	(b)	The Parties shall cooperate in determining, if applicable, which of Licensor Patent Rights the Parties will attempt to extend, which determination shall be made by the JSC.

  

	 	(c)	Each Party shall provide reasonable assistance to the other, including by executing any required documents and providing any relevant patent information to the other so that the NDA
or MAA applicant, as applicable, may inform the FDA or other Regulatory Authority. 

  

	11.	NON-COMPETITION 

  

	 	11.1	Non-Competition. During the Non-Compete Period, neither Party shall, anywhere in the Territory, market, promote, advertise, sell or offer to sell (or license or collaborate
with a Third Party pursuant to a Third Party Collaboration to do any of the foregoing) a Competing Product. Notwithstanding any other provision hereof, this Section 11.1 shall not apply to (i) activities conducted by either Party or its
Affiliates pursuant to and in accordance with this Agreement or (ii) the conduct of Third Parties that are parties to standard distribution agreements of Novartis or its Affiliates with Third Parties in countries where Novartis does not have a
commercial entity established. 

  

	 	11.2	Acquired Competing Products. 

  

	 	(a)	If a Party (the “Subject Party”) is acquired by, acquires or merges with or into a Third Party and the entity which the Subject Party acquires or is acquired
by or with which it merges is directly or indirectly marketing, promoting, advertising, selling or offering to sell (or collaborating with a Third Party pursuant to a Third Party Collaboration to do any of the foregoing) a Competing Product, then
the Subject Party shall use reasonable commercial efforts to divest or exclusively out-license 

  

 37 

 its rights to such Competing Product to a Third Party as soon as is practicable. In the event the Subject
Party is unable to divest or exclusively out-license such Competing Product to a Third Party within ******** of the consummation of such acquisition or merger, such Party shall not directly or indirectly conduct any further marketing, promoting,
advertising, selling or offering to sell activities (or collaborate with a Third Party pursuant to a Third Party Collaboration to do any of the foregoing) with respect to such Competing Product until the Non-Compete Period has expired.
Notwithstanding the foregoing, the Subject Party shall be permitted to complete clinical trials and other studies which were on-going at the time such Competing Product was acquired. 
  

	 	(b)	Notwithstanding the foregoing paragraph (a), if Novartis is the Subject Party, it shall have the right, exercisable within ******** of the consummation of such
acquisition or merger, to elect to retain rights to the Competing Product, in which case, (i) it shall pay royalties on Net Sales of the Competing Product as if it were a Product hereunder during the Non-Compete Period or (ii) if the
Competing Product is being sold by a Third Party pursuant to a Third Party Collaboration, it shall pay royalties on payments received by it in respect of sales of or profits earned on the Competing Product. 

  

	 	11.3	Affiliates. For purposes of this Section 11, any act or activity undertaken, or failure to act, by an Affiliate of a Party, which, if committed by such Party
would constitute a breach of this Section 11, shall constitute a breach by such Party. 

  

	 	11.4	Generic Products. Notwithstanding the foregoing, none of the provisions of this Section 11 shall apply to any generic pharmaceutical product Controlled by
Novartis or its Affiliates ********. 

  

	12.	CONFIDENTIALITY 

  

	 	12.1	Duty of Confidence. 

  

	 	(a)	Subject to the other provisions of this Section 12, all Confidential Information disclosed by a Party or its Affiliates under this Agreement will be maintained in
confidence and otherwise safeguarded by the recipient Party. The recipient Party may only use the Confidential Information for the purposes of this Agreement and pursuant to the rights granted to the recipient Party under this Agreement. Subject to
the other provisions of this Section 12, each Party shall hold as confidential such Confidential Information of the other Party or its Affiliates in the same manner and with the same protection as such recipient Party maintains its own
confidential information. Subject to the other provisions of this Section 12, a recipient Party may only disclose Confidential Information of the other Party to employees, agents, contractors, consultants and advisers of the Party and its
Affiliates and sublicensees and to Third Parties to the extent reasonably necessary 

 The information marked by ******** has
been omitted by a request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

 38 

 for the purposes of, and for those matters undertaken pursuant to, this Agreement; provided that such
Persons are bound to maintain the confidentiality of the Confidential Information in a manner consistent with the confidentiality provisions of this Agreement. 
  

	 	(b)	With respect to Licensor’s obligations under this Section 12, all Licensor Know-How shall be considered Confidential Information of Novartis and Licensor shall
maintain in confidence and otherwise safeguard such Licensor Know-How as such in accordance with this Section 12. 

  

	 	12.2	Exceptions. The obligations under this Section shall not apply to any information to the extent the recipient Party can demonstrate by competent evidence that such
information: 

  

	 	(a)	is (at the time of disclosure) or becomes (after the time of disclosure) known to the public or part of the public domain through no breach of this Agreement by the recipient
Party or its Affiliates; 

  

	 	(b)	was known to, or was otherwise in the possession of, the recipient Party or its Affiliates prior to the time of disclosure by the disclosing Party or its Affiliate;

  

	 	(c)	is disclosed to the recipient Party or an Affiliate on a non-confidential basis by a Third Party who is entitled to disclose it without breaching any confidentiality
obligation to the disclosing Party or any of its Affiliates; or 

  

	 	(d)	is independently developed by or on behalf of the recipient Party or its Affiliates, as evidenced by its written records, without reference to the Confidential Information
disclosed by the disclosing Party or its Affiliates under this Agreement. 

  

	 	12.3	Authorized Disclosures. 

  

	 	(a)	In addition to disclosures allowed under Section 12.1, Novartis may disclose Confidential Information belonging to Licensor or its Affiliates to the extent such disclosure is
necessary in the following instances: (i) filing or prosecuting Patent Rights as permitted by this Agreement; (ii) in connection with Regulatory Filings for Products Novartis has a license or right to Develop hereunder;
(iii) prosecuting or defending litigation as permitted by this Agreement; (iv) complying with applicable court orders or governmental regulations; or (v) to the extent otherwise necessary or appropriate in connection with exercising
the license and other rights granted to it hereunder. 

  

	 	(b)	In the event the recipient Party is required to disclose Confidential Information of the disclosing Party by law or in connection with bona fide legal process, such disclosure shall
not be a breach of this Agreement; provided that the recipient Party (i) informs the disclosing Party as soon as reasonably practicable of the required disclosure, (ii) limits the disclosure to the required purpose, and (iii) at the
disclosing Party’s request and expense, assists in an attempt to object to or limit the required disclosure. 

  

 39 

	13.	TERM AND TERMINATION 

  

	 	13.1	Term. The term of this Agreement will commence upon the Effective Date and shall continue on a Product-by-Product and country-by-country basis until the expiration of
the last-to-expire Royalty Term with respect to such Product in such country, unless earlier terminated as provided in this Agreement. 

  

	 	13.2	Termination upon Expiration of the Development Rights Exercise Period. In the event that Novartis does not exercise its Development Rights during the Development Rights
Exercise Period, this Agreement shall automatically terminate upon expiration or termination of the Development Rights Exercise Period. 

  

	 	13.3	Termination by Either Party for Cause. 

  

	 	(a)	If either Novartis or Licensor is in material breach of any material obligation hereunder, the non-breaching Party may give written notice to the breaching Party specifying
the claimed particulars of such breach, and in the event such material breach is not cured within ninety (90) days after such notice, the non-breaching Party shall have the right thereafter to terminate this Agreement immediately by giving
written notice to the breaching Party to such effect; provided, however, that if such breach is capable of being cured, but cannot be cured within such ninety (90) day period, and the breaching Party initiates actions to cure such breach within
such period and thereafter diligently pursues such actions, the breaching Party shall have such additional period as is reasonable in the circumstances to cure such breach. Any termination by any Party under this Section shall be without
prejudice to any damages or other legal or equitable remedies to which it may be entitled from the other Party. 

  

	 	(b)	Either Licensor or Novartis may terminate this Agreement without notice upon the Bankruptcy of the other Party. 

  

	 	13.4	Termination by Novartis Without Cause. Novartis may terminate this Agreement without cause at any time after the Effective Date (i) in its entirety on thirty
(30) days written notice prior to the exercise by Novartis of its Development Rights or (ii) on a Product-by-Product or country-by-country basis on one hundred eighty (180) days written notice after the exercise by Novartis of its
Development Rights. 

  

	 	13.5	Change of Control. In the event of a Change of Control of CTI which involves a Major Pharmaceutical Company, Novartis may, by written notice to Licensor (or the
successor entity) within ******** days after the Change of Control is consummated (or, if the Change of Control occurs prior to Novartis’ exercise of its Development Rights, within ******** days after the Novartis Development Commencement
Date), terminate ******** 

 The information marked by ******** has been omitted by a request for confidential treatment.

 The omitted portion has been filed separately with the Commission. 
  

 40 

	 	13.6	Rights in Bankruptcy. 

  

	 	(a)	All licenses granted under or pursuant to this Agreement are, and will otherwise be deemed to be, for purposes of Section 365(n) of the US Bankruptcy Code (the
“Code”), licenses of rights to “intellectual property” as defined under Section 101 of the Code. The Parties agree that Novartis, as licensee of such rights under this Agreement, will retain and may fully exercise all
of its rights and elections under the Code. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against any Licensor under the Code, Novartis will be entitled to a complete duplicate of (or complete
access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, and the same, if not already in its possession, will be promptly delivered to it (i) upon any such commencement of a bankruptcy
proceeding upon its written request therefor, unless such Licensor elects to continue to perform all of its obligations under this Agreement, or (ii) if not delivered under (i) above, following the rejection of this Agreement by or on
behalf of such Licensor upon written request therefor by Novartis. 

  

	 	(b)	All rights, powers and remedies of Novartis provided for in this Section 13.6 are in addition to and not in substitution for any and all other rights, powers and
remedies now or hereafter existing at law or in equity (including, without limitation, under the Code). In the event of the Bankruptcy of Licensor, Novartis, in addition to the rights, power and remedies expressly provided herein, shall be entitled
to exercise all other such rights and powers and resort to all other such remedies as may now or hereafter exist at law or in equity (including, without limitation, under the Code). The Parties agree that they intend the following Novartis rights to
extend to the maximum extent permitted by law, including, without limitation, for purposes of the Code: (i) the right of access to any intellectual property (including all embodiments thereof) of Licensor, or any Third Party with whom Licensor
contracts to perform an obligation of Licensor under this Agreement which is necessary for the Development, registration, manufacture and/or Commercialization of Products in the Territory; (ii) the right to contract directly with any Third
Party described in (i) to complete the contracted work, and (iii) the right to cure any breach of or default under any such agreement with a Third Party and set off the costs thereof against amounts payable to Licensor under this
Agreement. 

  

	14.	EFFECT OF TERMINATION 

  

	 	14.1	Termination by Novartis for Cause. Upon termination of this Agreement by Novartis pursuant to Section 13.3 after the Novartis Development Commencement Date:

  

	 	(a)	any licenses granted by Novartis to Licensor will terminate and revert to Novartis; 

  

 41 

	 	(b)	any licenses and other rights granted by Licensor to Novartis will remain in effect in accordance with their respective terms (including, without limitation, Sections 8
and 9); provided that Novartis shall have the right to offset the full amount of any damages it has suffered as a result of Licensor’s breach against any Milestone Payments and/or royalties which would otherwise be payable in accordance with
Section 8; 

  

	 	(c)	Novartis shall have the right in its discretion to assume responsibility for the prosecution and/or maintenance of all Licensor Patents, the provisions of
Section 10.2(e) shall apply thereto with respect to all countries (and not only with respect to countries which were Novartis’ responsibility pursuant to said Section prior to the termination of this Agreement) in the Territory and
Licensor shall cooperate in transferring to Novartis such prosecution and/or maintenance rights assumed by Novartis; 

  

	 	(d)	the provisions of Section 11 shall survive with respect to Licensor in accordance with its terms; 

  

	 	(e)	the provisions of Section 2.4 shall survive in accordance with its terms; provided that, notwithstanding anything herein to the contrary, the terms of the Pixantrone
License shall be those set forth in Schedule G-2; and 

  

	 	(f)	except as set forth in this Section 14.1 and in Section 14.6, the rights and obligations of the Parties hereunder shall terminate as of the date of such
termination. 

  

	 	14.2	Termination by Licensor for Cause or by Novartis Without Cause. Upon termination of this Agreement by Licensor pursuant to Section 13.3, or by Novartis pursuant to
Section 13.4: 

  

	 	(a)	any licenses and other rights granted by either Party to the other will terminate and revert to the granting Party; 

  

	 	(b)	Novartis shall provide CTI with copies of its patent files for any Licensor Patents being prosecuted or maintained by it under Section 10.2 and shall cooperate in
transferring prosecution rights to CTI; 

  

	 	(c)	if such termination occurs after the Novartis Development Commencement Date, CTI shall have a worldwide, exclusive license (with the right to sublicense with the prior
written consent of Novartis, which consent shall not be unreasonably withheld) under the Novartis Patent Rights that have been used by Novartis to make, use, sell or import the Product, and Joint Patents, to make, have made, use, sell, have sold,
offer for sale and import the Product for commercially reasonable royalty to be negotiated in good faith by the Parties; provided that in the event the Parties are unable to agree upon such royalty within ninety (90) days following such
termination of this Agreement, such matter shall be resolved in accordance with the Third Party Expert Procedures; 

  

	 	(d)	at CTI’s request, Novartis, without consideration, shall assign the Licensor Trademarks to Licensor or its designated Affiliate; 

  

 42 

	 	(e)	in the event Novartis terminates this Agreement pursuant to Section 13.4, Section 2.4 shall survive in accordance with its terms; and 

  

	 	(f)	except as set forth in this Section 14.2 and in Sections 14.5 and 14.6, the rights and obligations of the Parties hereunder shall terminate as of the date of such
termination. 

  

	 	14.3	Termination upon Expiration of Development Rights Exercise Period. Upon termination of this Agreement pursuant to Section 13.2, all rights and obligations of the
Parties under this Agreement (except Section 2.4, which shall survive in accordance with its terms, and as otherwise provided in Sections 14.5 and 14.6) shall terminate without further liability or obligation of any Party to the other
Party hereunder. 

  

	 	14.4	[Intentionally Omitted]. 

  

	 	14.5	Regulatory Filings and Licensor Trademarks. In the event that this Agreement automatically terminates pursuant to Section 13.2, or this Agreement is terminated by
Novartis or Licensor for any reason other than termination by Novartis pursuant to Section 13.3, Novartis shall transfer and assign to CTI the Licensor Trademarks and the Regulatory Filings which had been previously transferred and assigned to
Novartis by Licensor and which are relevant to the jurisdictions in the Territory in which this Agreement has been terminated. 

  

	 	14.6	Survival. Expiration or termination of this Agreement shall not relieve the Parties of any obligation accruing prior to such expiration or termination. Without
limiting the foregoing, the provisions of Sections 9, 10.1, 10.2(e) and (f), 13.6, 14 (including the additional Sections that survive in accordance with the express terms of Section 14), 16, 17.2 and 18 shall survive expiration or
termination of this Agreement. The provisions of Section 12 (Confidentiality) shall survive the termination or expiration of this Agreement for a period of ******** years. 

  

	 	14.7	Termination Not Sole Remedy. Termination is not the sole remedy under this Agreement and, whether or not termination is effected and notwithstanding anything contained
in this Agreement to the contrary, all other remedies will remain available except as agreed to otherwise herein. 

  

	15.	REPRESENTATIONS, WARRANTIES AND COVENANTS 

  

	 	15.1	Representations and Warranties by Each Party. Each Party represents and warrants to the other as of the Execution Date that: 

  

	 	(a)	it is a corporation duly organized, validly existing, and in good standing under the laws of its jurisdiction of formation; 

  

	 	(b)	it has full corporate power and authority to execute, deliver, and perform this Agreement, and has taken all corporate action required by law and its organizational documents
to authorize the execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement; 

 The information marked by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed
separately with the Commission. 
  

 43 

	 	(c)	this Agreement constitutes a valid and binding agreement enforceable against it in accordance with its terms (except as the enforceability thereof may be limited by
Bankruptcy, bank moratorium or similar laws affecting creditors’ rights generally and laws restricting the availability of equitable remedies and may be subject to general principles of equity whether or not such enforceability is considered in
a proceeding at law or in equity); 

  

	 	(d)	other than compliance with the HSR Act, all consents, approvals and authorizations from all governmental authorities or other Third Parties required to be obtained by such
Party in connection with this Agreement have been obtained; 

  

	 	(e)	the execution and delivery of this Agreement and all other instruments and documents required to be executed pursuant to this Agreement, and the consummation of the
transactions contemplated hereby do not and shall not (i) conflict with or result in a breach of any provision of its organizational documents, (ii) result in a breach of any agreement to which it is a party; or (iii) violate any law;
and 

  

	 	(f)	******** 

  

	 	15.2	Representations and Warranties by Licensor. Licensor represents and warrants to Novartis as of the Execution Date that: 

  

	 	(a)	Schedule B sets forth a complete and accurate list of all Licensor Patent Rights in existence as of the Execution Date; 

  

	 	(b)	Licensor is the sole and exclusive owner or exclusive licensee of all of the Licensor Patent Rights and Licensor Trademarks free from Encumbrances and is listed in the
records of the appropriate United States and/or foreign governmental agencies as the sole and exclusive owner of record or exclusive licensee for each registration, grant and application included in the Licensor Patent Rights or Licensor Trademarks,
as the case may be; 

 The information marked by ******** has been omitted by a request for confidential treatment. 

The omitted portion has been filed separately with the Commission. 
  

 44 

	 	(c)	Licensor has the right to grant to Novartis the licenses under the Licensor Technology that it purports to grant hereunder and to assign the Licensor Trademarks and
Regulatory Filings to Novartis hereunder; 

  

	 	(d)	Licensor has the right to use and disclose and to enable Novartis to use and disclose (in each case under appropriate conditions of confidentiality) the Licensor Know-How
free from Encumbrances (other than Encumbrances imposed by this Agreement); 

  

	 	(e)	to the knowledge of Licensor, the issued patents in the Licensor Patent Rights are valid and enforceable without any claims, challenges, oppositions, interference or other
proceedings pending or threatened and Licensor has filed and prosecuted patent applications within the Licensor Patent Rights in good faith and complied with all duties of disclosure with respect thereto. In addition, to Licensor’s knowledge,
Licensor has not committed any act, or omitted to commit any act, that may cause the Licensor Patent Rights to expire prematurely or be declared invalid or unenforceable; 

  

	 	(f)	except to the extent not yet due, all necessary and material application, registration, maintenance and renewal fees in respect of the Licensor Patent Rights and Licensor
Trademarks in existence as of the Execution Date have been paid and, except to the extent not yet due, all necessary documents and certificates have been filed with the relevant agencies for the purpose of maintaining such Licensor Patent Rights and
Licensor Trademarks; 

  

	 	(g)	except for the agreements listed on Schedule J, Licensor has not granted to any Third Party or other Person, including any academic organization or agency, any rights
to the Compound or Product; 

  

	 	(h)	to the best of Licensor’s knowledge, the Development, registration, manufacture, use or Commercialization of the Compound and/or Product do not infringe the Patent
Rights or misappropriate the Know-How of any Third Party, nor has Licensor received any written notice alleging such infringement; 

  

	 	(i)	Licensor has not initiated or been a party to any proceedings or claims in which it alleges that any Third Party is or was infringing or misappropriating any Licensor
Technology, nor have any such proceedings been threatened by Licensor in writing, nor does Licensor know of any valid basis for any such proceedings; 

  

	 	(j)	Licensor has exercised commercially reasonable efforts to obtain from all individuals who participated in any respect in the invention or authorship of any Licensor
Technology or Licensor Trademarks effective assignments of all ownership rights of such individuals in such Licensor Technology, either pursuant to written agreement or by operation of law; 

  

	 	(k)	no officer or employee of Licensor is subject to any agreement with any other Third Party which requires such officer or employee to assign any interest in any Licensor
Technology relating to the Compound and/or Product to any Third Party; 

  

 45 

	 	(l)	Licensor has taken all reasonable precautions to preserve the confidentiality of the Licensor Know-How; 

  

	 	(m)	Licensor has not entered into a government funding relationship that would result in rights to any Compound or Product residing in the US Government, National Institutes of
Health or other agency, and the licenses granted hereunder are not subject to overriding obligations to the US Government as set forth in Public Law 96-517 (35 U.S.C. 200-204), as amended, or any similar obligations under the laws of any other
country; 

  

	 	(n)	other than the Existing Third Party License Agreements, there are no agreements or arrangements to which Licensor or any of its Affiliates is a party relating to the Product,
Compound, Licensor Patent Rights, Licensor Know-How and/or Licensor Trademarks that would limit the rights granted to Novartis under this Agreement with respect to the Products, Compound, Licensor Patent Rights, Licensor Know-How and/or Licensor
Trademarks or that restrict or will result in a restriction on Novartis’ or its Affiliates’ ability to Develop, manufacture, register, use or Commercialize the Compound and/or the Product in the Territory; 

  

	 	(o)	(i) the License Agreement dated as of October 3, 2001 between CTI and CTI Technologies, Inc. has been terminated and is no longer in force or effect and
(ii) Licensor has delivered to Novartis a copy of the executed written termination; 

  

	 	(p)	CTI owns one hundred percent (100%) of the capital stock of CTI Europe, free of all Encumbrances; and 

  

	 	(q)	no representation or warranty by Licensor in this Agreement, and no information contained herein or otherwise delivered by or on behalf of Licensor or its Affiliates to
Novartis in connection with the transactions contemplated in this Agreement contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements contained herein or therein not misleading in
light of the circumstances under which such statements were made. 

  

	 	15.3	Representations and Warranties by Licensor Regarding Pixantrone. Licensor hereby makes all of the representations and warranties set forth in paragraphs (b) - (o)
of Section 15.2, provided that, for purposes of such representations and warranties, the term “Pixantrone” is deemed substituted for the terms “Compound” and “Product” in such paragraphs and in the definitions of
Licensor Patents, Licensor Know-How and other defined terms as used therein. In addition, Licensor represents and warrants that Schedule K sets forth a complete and accurate list of all Licensor Patent Rights in existence as of the
Execution Date, giving effect to the proviso in the previous sentence. Schedule K shall be updated from time to time to reflect the change in status of the patent filings and include any additional patent filings relevant to Pixantrone.

  

	 	15.4	Covenants of Licensor. 

  

	 	(a)	Licensor covenants and agrees that it will not grant any interest in the Licensor Patents or Licensor Know-How which is inconsistent with the terms and

  

 46 

 conditions of this Agreement, nor shall Licensor assign its right, title or interest in or to the
Licensor Patents or Licensor Know-How to any Third Party or cause or permit any of the Licensor Technology to be subject to any Encumbrances other than this Agreement. 
  

	 	(b)	Licensor covenants and agrees that if, at any time after execution of this Agreement, it becomes aware that it or any employee, agent or subcontractor of Licensor who
participated, or is participating, in the performance of any activities hereunder is on, or is being added to the FDA Debarment List or any of the three (3) FDA Clinical Investigator Restriction Lists referenced in Section 15.1(f), it will
provide written notice of this to Novartis within two (2) business days of its becoming aware of this fact. 

  

	 	(c)	CTI covenants and agrees that it will not Transfer any capital stock of CTIT or CTI Europe without the prior written consent of Novartis. 

  

	 	(d)	Licensor covenants and agrees that it shall maintain insurance with respect to its activities and obligations under this Agreement in such amounts as are commercially
reasonable in the industry for companies conducting similar business and shall require any of its Affiliates undertaking activities under this Agreement to do the same. 

  

	 	15.5	Existing Third Party License Agreements. 

  

	 	(a)	Licensor represents and warrants to Novartis as of the Execution Date as follows: 

  

	 	(i)	Licensor has provided Novartis with a complete, current and accurate copy of each of the Existing Third Party License Agreements, including all amendments of each, as such
agreements exist on the date hereof; 

  

	 	(ii)	except as expressly provided in the Existing Third Party License Agreements, neither Licensor nor its Affiliates has any commitments or agreements with any Third Party which
would materially, individually or in the aggregate, interfere with or preclude the fulfillment of its obligations or the exercise by Novartis of its rights under this Agreement; 

  

	 	(iii)	Licensor has carried out all requirements under each of the Existing Third Party License Agreements that are necessary to enable it to validly grant sublicenses and other
rights to Novartis pursuant to the terms of this Agreement, and to validly supply and distribute the Compound and Product pursuant to the terms of the Manufacturing and Supply Agreement, and there are no other requirements under the Existing Third
Party License Agreements necessary to enable Licensor to validly grant sublicenses or to supply and distribute the Compound and Product; 

  

	 	(iv)	except for the April 30 Licensors and PG-TXL (whose rights are described in the respective Existing Third Party License Agreement to which such entity is a party), no
Third Party has any right, title or interest in or to the Compound or Product in the Territory; 

  

 47 

	 	(v)	(A) Licensor has complied at all times with its obligations under the PG-TXL License Agreement and, to Licensor’s knowledge, PG-TXL has complied at all times with
its obligations under the April 30 License Agreement and (B) Licensor is not in default, and there are no circumstances existing on the date hereof which, with notice or the passage of time or both, could reasonably be expected to result
in a default under any of the Existing Third Party License Agreements; 

  

	 	(vi)	to Licensor’s knowledge, no other party to any of the Existing Third Party License Agreements is in default or breach of such agreement; 

  

	 	(vii)	the Existing Third Party License Agreements are in full force and effect and are legal, valid and binding agreements, enforceable in accordance with their terms except as
enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium and other laws relating to or affecting creditors’ rights generally and by general equitable principles; 

  

	 	(viii)	the letter dated July 26, 1999 from John Mendelsohn, M.D., on behalf of The University of Texas System MD Anderson Cancer Center, to the April 30 Licensors constitutes the
“letter to be dated on or about November 16, 1998, from John Mendelsohn, M.D. to the April 30 Licensors” described in the definition of “MD Anderson Release” in the PG-TXL License Agreement; 

  

	 	(ix)	there are no agreements, arrangements or understandings between PG-TXL and PG-TXL Company, L.L.C. that would restrict or limit Novartis’ rights hereunder or impose any
obligations (monetary or otherwise) on Novartis or its Affiliates in respect of the Compound or the Product; and 

  

	 	(x)	no Inventions (as defined in the Chugai Agreement) have been conceived or reduced to practice in connection with or as a result of activities by Chugai Pharmaceutical Co.
Ltd. or its affiliates under the Chugai Agreement. 

  

	 	(b)	Licensor covenants and agrees as follows: 

  

	 	(i)	with respect to each of the Existing Third Party License Agreements, CTI will not take any action or fail to take action that (A) constitutes a breach or default thereunder or
gives rise to any right of termination, cancellation or acceleration thereof, (B) affects the continuation, validity and effectiveness or terms thereof or (C) affects in any way Novartis’ rights under this Agreement, the Manufacturing
and Supply Agreement or any other agreement between the Parties or their respective Affiliates entered into in connection herewith; 

  

	 	(ii)	absent the prior written consent of Novartis, which may be given or withheld in its sole discretion, CTI will not (A) amend, alter or modify the terms of any Existing Third
Party License Agreement, (B) grant or withhold any consent or approval or waive any rights under any Existing 

  

 48 

 Third Party License Agreement or (C) take any action to terminate any Existing Third Party License
Agreement; 
  

	 	(iii)	on the Effective Date, CTI shall deliver to PG-TXL, in accordance with the notice delivery procedures set forth in Section 15.06 of the PG-TXL License Agreement, a
written notice in a form satisfactory to Novartis, which notice shall inform PG-TXL of this Agreement and the assignments set forth in this Section 15.5 of rights under the PG-TXL License Agreement and shall modify the notices provision to
require that PG-TXL send Novartis copies of any notices given pursuant to Section 15.06 of the PG-TXL License Agreement; 

  

	 	(iv)	CTI shall promptly deliver to Novartis copies of any and all notices given by or with respect to any party pursuant to any of the Existing Third Party License Agreements, including
without limitation any notice of a bankruptcy filing; 

  

	 	(v)	CTI shall provide prompt written notice to Novartis of any breach of any of the Existing Third Party License Agreements by CTI or any other party thereto; 

 

	 	(vi)	Novartis, on behalf of CTI may make payments owed by CTI to any other party to any of the Existing Third Party License Agreements under such Existing Third Party License
Agreement directly to such party; 

  

	 	(vii)	CTI will permit Novartis to cure any monetary or non-monetary default or breach by CTI of any Existing Third Party License Agreements and, subject to clause (xii) below,
to the extent CTI fails to take any actions necessary to cure any such default or breach of the PG-TXL License Agreement, CTI hereby assigns to Novartis all applicable rights under the PG-TXL License Agreement permitting CTI to take such actions;

  

	 	(viii)	in the event of the bankruptcy or similar proceeding of any other party to an Existing Third Party License Agreement, (A) CTI shall promptly and diligently exercise all rights
and remedies under the Code and/or other applicable law, including Section 365(n) of the Code, to preserve its license and other rights under such Existing Third Party License Agreement and (B) if CTI does not provide adequate assurance of
performance in such Bankruptcy proceeding, Novartis shall have the right to provide adequate assurance of performance in such proceeding; 

  

	 	(ix)	CTI hereby assigns to Novartis all of its rights under Sections 14.01(b), (c) and (d) and 14.02 of the PG-TXL License Agreement; 

  

	 	(x)	Novartis shall have the right to offset the full amount of any payments made and costs or expenses incurred by Novartis or its Affiliates in exercising any of its rights
under clauses (vi), (vii), (viii) and/or (ix) above and/or Section 14.01(c) of the PG-TXL License Agreement (which is assigned to Novartis pursuant to clause (ix) above), in whole or in part, against any Milestone Payments,
royalties, reimbursements or other amounts due to CTI hereunder; 

  

 49 

	 	(xi)	subject to clause (xii) below, CTI hereby designates and appoints Novartis its true and lawful attorney, with full power of substitution, in its name, place, and stead
to take any and all actions and execute and deliver any and all documents, instruments or agreements that are necessary or appropriate for Novartis to exercise its rights under this Section 15.5(b). This power of attorney shall be coupled with
an interest and shall expire upon the termination of this Agreement pursuant to Section 13; and 

  

	 	(xii)	anything herein to the contrary notwithstanding, (A) CTI shall remain liable under the Existing Third Party License Agreements, to the extent set forth therein, to
perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed, (B) the exercise by Novartis of any of the rights hereunder shall not release CTI from any of its duties or obligations under
the Existing Third Party License Agreements and (C) Novartis shall not have any obligation or liability under the Existing Third Party License Agreements by reason of this Agreement, nor shall Novartis be obligated to perform any of the
obligations or duties of CTI thereunder or to take any action to collect or enforce any of the Existing Third Party License Agreements. 

  

	16.	INDEMNIFICATION; LIABILITY 

  

	 	16.1	Indemnification by Licensor. Licensor shall indemnify and hold Novartis and its Affiliates, and their respective officers, directors, employees, contractors, agents
and assigns, harmless from and against any Claims against Novartis or any of the foregoing persons arising or resulting from: 

  

	 	(a)	Licensor’s actions in connection with the Development and manufacture of the Compound and/or Product under this Agreement or the Manufacturing and Supply Agreement;

  

	 	(b)	the negligence or willful misconduct of Licensor; or 

  

	 	(c)	the breach of any of the covenants, warranties and representations made by Licensor to Novartis under this Agreement. 

 Licensor shall only be obliged to so indemnify and hold Novartis harmless to the extent that such Claims do not arise from the breach, negligence or
willful misconduct of Novartis. 
  

	 	16.2	Indemnification by Novartis. Novartis shall indemnify and hold Licensor and its Affiliates, and their respective officers, directors, employees, contractors, agents and
assigns, harmless from and against any Claims against Licensor or any of the foregoing persons arising or resulting from: 

  

	 	(a)	Novartis’, its Affiliates’ and its sublicensees’ actions in connection with the Development or Commercialization of the Compound and/or Product under this
Agreement; 

  

 50 

	 	(b)	the negligence or willful misconduct of Novartis; or 

  

	 	(c)	the breach of any of the covenants, warranties and representations made by Novartis to Licensor under this Agreement. 

 Novartis shall only be obliged to so indemnify and hold Licensor harmless to the extent that such Claims do not arise from the breach, negligence or
willful misconduct of Licensor. 
  

	 	16.3	Indemnification Procedure. 

  

	 	(a)	A Party hereto or any of its Affiliates seeking indemnification hereunder (“Indemnified Party”) shall notify the other Party (“Indemnifying
Party”) in writing reasonably promptly after the assertion against the Indemnified Party of any claim or allegation by a Third Party (“Third Party Claim”) in respect of which the Indemnified Party intends to base a claim
for indemnification hereunder, but the failure or delay so to notify the Indemnifying Party shall not relieve the Indemnifying Party of any obligation or liability that it may have to the Indemnified Party except to the extent that the Indemnifying
Party demonstrates that its ability to defend or resolve such Third Party Claim is adversely affected thereby. 

  

	 	(b)	Subject to the provisions of sub-Sections (d) and (e) below, the Indemnifying Party shall have the right, upon written notice given to the Indemnified Party within
thirty (30) days after receipt of the notice from the Indemnified Party of any Third Party Claim to assume the defense and handling of such Third Party Claim, at the Indemnifying Party’s sole expense, in which case the provisions of
sub-Section (c) below shall govern. 

  

	 	(c)	The Indemnifying Party shall select counsel reasonably acceptable to the Indemnified Party in connection with conducting the defense and handling of such Third Party Claim,
and the Indemnifying Party shall defend or handle the same in consultation with the Indemnified Party, and shall keep the Indemnified Party timely apprised of the status of such Third Party Claim. The Indemnifying Party shall not, without the prior
written consent of the Indemnified Party, agree to a settlement of any Third Party Claim which could lead to liability or create any financial or other obligation on the part of the Indemnified Party for which the Indemnified Party is not entitled
to indemnification hereunder, or would involve any admission of wrongdoing on the part of the Indemnified Party. The Indemnified Party shall cooperate with the Indemnifying Party, at the request and expense of the Indemnifying Party, and shall be
entitled to participate in the defense and handling of such Third Party Claim with its own counsel and at its own expense. Notwithstanding the foregoing, in the event the Indemnifying Party fails to conduct the defense and handling of any Third
Party Claim in good faith after having assumed such, then the provisions of sub-Section (e) below shall govern. 

  

 51 

	 	(d)	If the Indemnifying Party does not give written notice to the Indemnified Party, within thirty (30) days after receipt of the notice from the Indemnified Party of any
Third Party Claim, of the Indemnifying Party’s election to assume the defense and handling of such Third Party Claim, the provisions of sub-Section (e) below shall govern. 

  

	 	(e)	The Indemnified Party may, at the Indemnifying Party’s expense, select counsel reasonably acceptable to the Indemnifying Party in connection with conducting the defense
and handling of such Third Party Claim and defend or handle such Third Party Claim in such manner as it may deem appropriate, provided, however, that the Indemnified Party shall keep the Indemnifying Party timely apprised of the status of such Third
Party Claim and shall not settle such Third Party Claim without the prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld. If the Indemnified Party defends or handles such Third Party Claim, the
Indemnifying Party shall cooperate with the Indemnified Party, at the Indemnified Party’s request but at no expense to the Indemnified Party, and shall be entitled to participate in the defense and handling of such Third Party Claim with its
own counsel and at its own expense. 

  

	 	16.4	Mitigation of Loss. Each Indemnified Party will take all such reasonable steps and action as are necessary or as the Indemnifying Party may reasonably require in order
to mitigate any Claims under this Section. Nothing in this Agreement shall or shall be deemed to relieve any Party of any common law or other duty to mitigate any losses incurred by it. 

  

	 	16.5	Special, Indirect and Other Losses. IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATES BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL
DAMAGES OR FOR ANY ECONOMIC LOSS OR LOSS OF PROFITS SUFFERED BY THE OTHER PARTY, EXCEPT TO THE EXTENT ANY SUCH DAMAGES ARE REQUIRED TO BE PAID TO A THIRD PARTY AS PART OF A THIRD PARTY CLAIM. 

  

	 	16.6	No Exclusion. Neither Party excludes any liability for death or personal injury caused by its negligence or that of its employees, agents or sub-contractors.

  

	17.	PUBLICATIONS AND PUBLICITY 

  

	 	17.1	Publications. 

  

	 	(a)	Any proposed written public disclosures or written publications of Licensor relating to a Product shall require the written consent of Novartis prior to their release;
provided, that the foregoing shall not apply to information which is not of a scientific or technical nature and which is in the public domain or, subject to the provisions of Section 17.2(b), any public disclosures required by law or
governmental regulation or by the rules of any recognized stock exchange or quotation system. Prior to the Novartis Development Commencement Date, Novartis shall make no such public disclosures or written publications without Licensor’s prior
written consent. 

  

 52 

	 	(b)	Notwithstanding any other provisions of this Agreement, after the Novartis Development Commencement Date, Novartis and/or any of its Affiliates shall have the right to
disclose, publish and have published the existence of, and the results from, any clinical trials conducted under this Agreement in accordance with its standard policies; provided, however, that Novartis shall, wherever practicable, provide Licensor
a reasonable opportunity to review in advance any such disclosure or publication and will reasonably consider any Licensor comments thereon. 

  

	 	17.2	Publicity. 

  

	 	(a)	Each Party agrees not to issue any press release or other public statement, whether oral or written, disclosing the existence of this Agreement, the terms hereof or any information
relating to this Agreement without the prior written consent of the other Party, provided however, that neither Party will be prevented from complying with any duty of disclosure it may have pursuant to law or governmental regulation or pursuant to
the rules of any recognized stock exchange or quotation system and Novartis may issue press releases and other public statements as it deems appropriate in connection with the Development and Commercialization of Products under this Agreement.

  

	 	(b)	In the event of a disclosure required by law, governmental regulation or the rules of any recognized stock exchange or quotation system, the Parties shall coordinate with
each other with respect to the timing, form and content of such required disclosure to the extent practicable under the circumstances, and, if so requested by the other Party, the Party subject to such obligation shall use commercially reasonable
efforts to obtain an order protecting to the maximum extent possible the confidentiality of such provisions of this Agreement as reasonably requested by the other Party. If the Parties are unable to agree on the form or content of any required
disclosure, such disclosure shall be limited to the minimum required, as determined by the disclosing Party in consultation with its legal counsel. Without limiting the foregoing, each Party shall consult with the other Party on the provisions of
this Agreement, together with exhibits or other attachments attached hereto, to be redacted in any filings made by CTI and/or Novartis with the Securities and Exchange Commission or as otherwise required by law. 

  

	18.	GENERAL PROVISIONS 

  

	 	18.1	Assignment. Neither Party may assign its rights and obligations under this Agreement without the other Party’s prior written consent, except that (a) either Party
may assign its rights and obligations under this Agreement or any part hereof to one or more of its Affiliates without the consent of the other Party, provided that any such assignment shall cease to be effective at such time as any entity which was
an Affiliate ceases to be an Affiliate; and (b) either Party may assign this Agreement in its entirety to a successor to all or substantially all of its business (in the case of Licensor, subject to Novartis’ rights under
Section 13.5). The assigning Party shall provide the other Party with prompt written notice of any such assignment. Any permitted assignee shall assume all obligations of its assignor under this Agreement, and no permitted assignment shall
relieve the assignor of liability hereunder. Any attempted assignment in contravention of the foregoing shall be void. 

  

 53 

	 	18.2	Extension to Affiliates. Each Party shall have the right to extend the rights and immunities granted in this Agreement to one or more of its Affiliates. All applicable
terms and provisions of this Agreement, except this right to extend, shall apply to any such Affiliate to which this Agreement has been extended to the same extent as such terms and provisions apply to the Party extending such rights and immunities.
The Party extending the rights and immunities granted hereunder shall remain primarily liable for any acts or omissions of its Affiliates. 

  

	 	18.3	Severability. Should one or more of the provisions of this Agreement become void or unenforceable as a matter of law, then this Agreement shall be construed as if such
provision were not contained herein and the remainder of this Agreement shall be in full force and effect, and the Parties will use their commercially reasonable efforts to substitute for the invalid or unenforceable provision a valid and
enforceable provision which conforms as nearly as possible with the original intent of the Parties. 

  

	 	18.4	Governing Law. This Agreement shall be governed by and construed under the laws of the State of New York, US, without giving effect to the conflicts of laws provision
thereof. 

  

	 	18.5	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, accident, war, act of terrorism, act of God or of the government of any country or of any local government,
or by cause unavoidable or beyond the control of any Party hereto. In such event, the Party affected will use commercially reasonable efforts to resume performance of its obligations. 

  

	 	18.6	Waivers and Amendments. The failure of any Party to assert a right hereunder or to insist upon compliance with any term or condition of this Agreement shall not
constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition by the other Party. Subject to Section 18.19, no waiver shall be effective unless it has been given in writing and signed by the
Party giving such waiver. Subject to Section 18.19, no provision of this Agreement may be amended or modified other than by a written document signed by authorized representatives of each Party. 

  

	 	18.7	Relationship of the Parties. Nothing contained in this Agreement shall be deemed to constitute a partnership, joint venture, or legal entity of any type between
Licensor and Novartis, or to constitute one as the agent of the other. Moreover, each Party agrees not to construe this Agreement, or any of the transactions contemplated hereby, as a partnership for any tax purposes. Each Party shall act solely as
an independent contractor, and nothing in this Agreement shall be construed to give any Party the power or authority to act for, bind, or commit the other. 

  

 54 

	 	18.8	Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns.

  

	 	18.9	Notices. All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been duly given when
(a) delivered by hand (with written confirmation of receipt), (b) sent by fax (with written confirmation of receipt), provided that a copy is sent by an internationally recognized overnight delivery service (receipt requested), or
(c) when received by the addressee, if sent by an internationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and fax numbers set forth below (or to such other addresses and fax numbers
as a Party may designate by notice): 

 If to Licensor: 
 c/o Cell Therapeutics, Inc. 
 501 Elliott Avenue West 
 Suite 400 
 Seattle, Washington 98119 
 Attention: Louis A. Bianco 
 Fax: (206) 272-4397 
 with a copy to: 
 O’Melveny & Myers LLP 
 275 Battery Street, Suite 2600 
 San Francisco, CA 94111 
 Attention: Michael J. Kennedy 
 Fax: (415) 984-8701 
 If to Novartis: 
 Novartis
International Pharmaceutical Ltd. 
 “Hurst Holme”, 12 Trott Road 
 P.O. Box HM 2899 
 Hamilton, HM LX 
 Bermuda 
 Attn: Board of Directors 
 Fax: ******** 
 The information marked by ******** has been omitted by a request for confidential treatment.

 The omitted portion has been filed separately with the Commission. 
  

 55 

 with a copy to: 
 Novartis Pharma AG 
 Lichtstrasse 35 
 Post Office Box 4002 
 Basel, Switzerland 
 Attn: Legal Department 
 Fax: ******** 
 and 
 Novartis
Pharma AG 
 Lichtstrasse 35 
 Post Office Box 4002 
 Basel, Switzerland 
 Attn: Head, Business Development and Licensing 
 Fax: ******** 
  

	 	18.10	Further Assurances. Novartis and Licensor hereby covenant and agree without the necessity of any further consideration, to execute, acknowledge and deliver any and all such
other documents and take any such other action as may be reasonably necessary to carry out the intent and purposes of this Agreement. 

  

	 	18.11	Compliance with Law. Each Party shall perform its obligations under this Agreement in accordance with all applicable laws. No Party shall, or shall be required to, undertake
any activity under or in connection with this Agreement which violates, or which it believes, in good faith, may violate, any applicable law. 

  

	 	18.12	No Third Party Beneficiary Rights. This Agreement is not intended to and shall not be construed to give any Third Party any interest or rights (including, without limitation,
any third party beneficiary rights) with respect to or in connection with any agreement or provision contained herein or contemplated hereby. 

  

	 	18.13	Entire Agreement; Confidentiality Agreement. 

  

	 	(a)	This Agreement, together with its Schedules and the documents to be delivered in connection with this Agreement, sets forth the entire agreement and understanding of the
Parties as to the subject matter hereof and supersedes all proposals, oral or written, and all other prior communications between the Parties with respect to such subject matter. In the event of any conflict between a substantive provision of this
Agreement and any Schedule hereto, the substantive provisions of this Agreement shall prevail. 

  

	 	(b)	The Parties acknowledge and agree that, as of the Effective Date, all confidential information disclosed pursuant to the Confidentiality Agreement by a Party or its
Affiliates shall be included in the Confidential Information subject to this Agreement and the Confidentiality Agreement shall terminate and have no further force or effect as between the Parties or their Affiliates; provided, that the foregoing
shall not relieve any Person of any right or obligation accruing under the Confidentiality Agreement prior to the Effective Date. 

 The information marked by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed
separately with the Commission. 
  

 56 

	 	18.14	Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. 

  

	 	18.15	HSR Filing. Each of Novartis and CTI agrees to prepare and make appropriate filings under the HSR Act relating to this Agreement and the transactions contemplated hereby as
soon as reasonably practicable after the Execution Date (the “HSR Filing Date”). The Parties agree to cooperate in the antitrust clearance process and to furnish promptly to the Federal Trade Commission (FTC), the Antitrust Division
of the Department of Justice and any other agency or authority, any information reasonably requested by them in connection with such filings. Other than the provisions of this Section 18.15 and Sections 12, 17, 18.4, 18.6 and 18.9, the
rights and obligations of the Parties under this Agreement shall not become effective until the waiting period provided by the HSR Act shall have terminated or expired without any action by any government agency or challenge to the transaction (the
date of such termination or expiration shall be the “Effective Date” of this Agreement). Upon the occurrence of the Effective Date, all provisions of this Agreement shall become effective automatically without the need for further
action by the Parties. In the event that antitrust clearance from the FTC and Antitrust Division of the Department of Justice is not obtained within ******** days after the Execution Date, or such other date as the Parties may mutually agree, this
Agreement may be terminated by either Party. In the event a provision of this Agreement needs to be deleted or substantially revised in order to obtain regulatory clearance of this transaction, the Parties will negotiate in good faith in accordance
with Section 18.3. 

  

	 	18.16	Cumulative Remedies. No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to in this
Agreement or otherwise available under law. 

  

	 	18.17	Waiver of Rule of Construction. Each Party has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement.
Accordingly, any rule of construction that any ambiguity in this Agreement shall be construed against the drafting Party shall not apply. 

  

	 	18.18	Compliance with Law. Nothing in this Agreement shall be deemed to permit a Party to export, re-export or otherwise transfer any Product sold under this Agreement without
compliance with applicable laws. 

  

	 	18.19	Licensor Obligations; Delegation of Authority. 

  

	 	(a)	All representations, warranties, covenants and agreements of the Licensor hereunder shall be joint and several obligations of the various entities comprising the Licensor.

  

	 	(b)	CTI Europe agrees that CTI shall have the exclusive right and authority to act for and on its behalf with respect to all matters which are the subject of this

 The information marked by ******** has been omitted by a request for confidential treatment. 
 The omitted portion has been filed separately with the Commission. 
  

 57 

	 	 	Agreement and to exercise any and all powers, authority and discretion conferred upon Licensor, including, without limitation, (i) receiving or giving all notices,
instructions, other communications, consents or agreements that may be necessary, required or given with respect thereto; (ii) asserting, settling, compromising, or defending, or determining not to assert, settle, compromise or defend, any
claims by or against Novartis or its Affiliates hereunder; (iii) making such changes, amendments or modifications to this Agreement and the Schedules attached hereto as CTI determines in its sole discretion; and (iv) otherwise representing
its interests hereunder from and after the Execution Date. Novartis and its Affiliates shall be entitled to rely conclusively on the actions, notices, instructions and decisions of CTI as to any matter pertaining to this Agreement and no Party
hereto shall have any cause of action against Novartis or any of its Affiliates for any action taken by them in reliance upon such actions, notices, instructions or decisions of CTI. All notices, instructions and other communications given by
Novartis and its Affiliates to Licensor as to any matter pertaining to this Agreement may be given solely to CTI and all such notices, instructions and other communications shall be deemed to have been given to all Licensor entities.

 [Signatures on next page] 
  

 58 

 IN WITNESS WHEREOF, the Parties intending to be bound have caused this Agreement to be executed by their
duly authorized representatives. 
  

									
	 NOVARTIS INTERNATIONAL
 PHARMACEUTICAL LTD.
	 		 	CELL THERAPEUTICS, INC.
					
	By:	 	/s/    EMIL BOCK	 		 	By:	 	/s/    JAMES A. BIANCO
					
	Name:	 	Emil Bock	 		 	Name:	 	James A. Bianco, M.D.
					
	Title:	 	Member of the Board of Directors	 		 	Title:	 	President and Chief Executive Officer
				
	By:	 	/s/    TONESAN AMISSAH	 		 	CELL THERAPEUTICS EUROPE S.r.l.
					
	Name:	 	Tonesan Amissah	 		 	By:	 	/S/    JAMES A. BIANCO
					
	Title:	 	Member of the Board of Directors	 		 	Name:	 	James A. Bianco, M.D.
					
		 		 		 	Title:	 	Chairman

 [LICENSE AND CO-DEVELOPMENT
AGREEMENT]Securities Purchase Agreement

 Exhibit 10.2 
 NOVARTIS PHARMA AG 
 AND 
 CELL THERAPEUTICS, INC. 
 SECURITIES PURCHASE AGREEMENT 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page
	 1.
	  	Purchase and Sale of Securities.	  	1
		  	1.1	  	 Sale of the Securities.
	  	1
			
	 2.
	  	Closing Date; Deliveries.	  	1
		  	2.1	  	 Closing Date
	  	1
		  	2.2	  	 Deliveries.
	  	2
		  	2.3	  	 Further Assurances.
	  	2
			
	 3.
	  	Representations and Warranties of the Company.	  	2
		  	3.1	  	 Organization, Good Standing and Qualification.
	  	2
		  	3.2	  	 Capitalization and Voting Rights.
	  	2
		  	3.3	  	 Subsidiaries
	  	3
		  	3.4	  	 Corporate Authorization
	  	4
		  	3.5	  	 No Conflict
	  	4
		  	3.6	  	 Authorization
	  	5
		  	3.7	  	 Liabilities
	  	5
		  	3.8	  	 Governmental Consents
	  	5
		  	3.9	  	 Litigation
	  	5
		  	3.10	  	 Employees and Consultants
	  	6
		  	3.11	  	 Intellectual Property
	  	6
		  	3.12	  	 Compliance with Other Instruments
	  	7
		  	3.13	  	 Agreements; Action
	  	7
		  	3.14	  	 Registration Rights
	  	8
		  	3.15	  	 Title to Property and Assets.
	  	8
		  	3.16	  	 Financial Statements and SEC Filings.
	  	8
		  	3.17	  	 Controls
	  	9
		  	3.18	  	 Employee Benefit Plans
	  	10
		  	3.19	  	 Tax Returns and Payments
	  	10
		  	3.20	  	 Insurance
	  	10
		  	3.21	  	 Labor Agreements and Actions
	  	11
		  	3.22	  	 Investment Company
	  	11
		  	3.23	  	 Environmental Matters.
	  	11
		  	3.24	  	 Securities Laws
	  	12
		  	3.25	  	 Offering.
	  	12
		  	3.26	  	 Licenses and Other Rights; Compliance with Laws
	  	12
		  	3.27	  	 Broker or Finders
	  	13
		  	3.28	  	 Corporate Records
	  	13
		  	3.29	  	 Market Listing
	  	13
		  	3.30	  	 Related Party Transactions
	  	13
		  	3.31	  	 Accountants
	  	13
		  	3.32	  	 Reliance
	  	13

  

 i 

							
	 	  	 	  	 	  	Page
	 4.
	  	Representations and Warranties of the Investor.	  	14
		  	 4.1
	  	 Authorization, Governmental Consents and Compliance with Other Instruments
	  	14
		  	 4.2
	  	 Purchase Entirely for Own Account
	  	14
		  	 4.3
	  	 Investment Experience and Accredited Investor Status
	  	14
		  	 4.4
	  	 Reliance
	  	14
			
	 5.
	  	Conditions to Closing of Investor.	  	14
		  	 5.1
	  	 Representations and Warranties Correct.
	  	15
		  	 5.2
	  	 Covenants
	  	15
		  	 5.3
	  	 Compliance Certificate
	  	15
		  	 5.4
	  	 Legal Opinions
	  	15
		  	 5.5
	  	 Certification of Resolutions and Officers
	  	15
		  	 5.6
	  	 Certain Events
	  	15
		  	 5.7
	  	 Good Standing Certificate
	  	15
		  	 5.8
	  	 Other Agreements
	  	16
		  	 5.9
	  	 Proceedings and Documents
	  	16
		  	 5.10
	  	 Continued Market Listing
	  	16
		  	 5.11
	  	 No Suspension, Etc.
	  	16
			
	 6.
	  	Conditions to Closing of the Company.	  	16
		  	 6.1
	  	 Representations and Warranties Correct
	  	16
			
	 7.
	  	Mutual Conditions to Closing	  	16
		  	 7.1
	  	 Qualifications
	  	16
		  	 7.2
	  	 Absence of Litigation
	  	16
		  	 7.3
	  	 License and Co-Development Agreement
	  	17
			
	 8.
	  	Additional Covenants and Agreements.	  	17
		  	 8.1
	  	 Inspection of Books and Records
	  	17
		  	 8.2
	  	 HSR Filing
	  	17
		  	 8.3
	  	 Securities Compliance
	  	17
		  	 8.4
	  	 Registration and Listing
	  	17
		  	 8.5
	  	 Consents
	  	17
		  	 8.6
	  	 Use of Proceeds
	  	18
		  	 8.7
	  	 Ordinary Course
	  	18
			
	 9.
	  	Miscellaneous.	  	18
		  	 9.1
	  	 Termination
	  	18
		  	 9.2
	  	 Effect of Termination
	  	18
		  	 9.3
	  	 Survival of Warranties
	  	18
		  	 9.4
	  	 Indemnification
	  	18
		  	 9.5
	  	 Attorney’s Fees
	  	19
		  	 9.6
	  	 Remedies
	  	19
		  	 9.7
	  	 Successors and Assigns
	  	19
		  	 9.8
	  	 Entire Agreement
	  	19
		  	 9.9
	  	 Governing Law
	  	19

  

 ii 

							
	 	  	 	  	 	  	Page
		  	9.10	  	Counterparts	  	19
		  	9.11	  	 Titles and Subtitles
	  	19
		  	9.12	  	 Nouns and Pronouns
	  	19
		  	9.13	  	 Notices
	  	20
		  	9.14	  	 Finder’s Fee
	  	21
		  	9.15	  	 Expenses
	  	21
		  	9.16	  	 Amendments and Waivers
	  	21
		  	9.17	  	 Severability
	  	21
		  	9.18	  	Confidentiality and Publicity	  	21
		  	9.19	  	 Definitions
	  	23
			
		  	 Annex A – Disclosure Schedule
	  	
			
		  	 Exhibit A –Form of Registration Rights Agreement
	  	
		  	 Exhibit B – Form of License and Co-Development Agreement
	  	

  

 iii 

 SECURITIES PURCHASE AGREEMENT 
 THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”) is made as of the 15th day of September, by and between Novartis Pharma AG (“Novartis” or the “Investor”), a corporation organized under the
laws of Switzerland, with its principal place of business at Lichtstrasse 35, CH-4002, Basel, Switzerland, and Cell Therapeutics, Inc. (the “Company”), a Washington corporation with its principal place of business at 501 Elliott
Avenue West, Suite 400, Seattle, Washington 98119. Novartis and the Company are each referred to individually as a “Party” and together as “Parties.” 
 THE PARTIES HEREBY AGREE AS FOLLOWS: 
 1. Purchase and
Sale of Securities. 
 1.1 Sale of the Securities. 
 (a) Subject to the terms and conditions of this Agreement, the Company shall issue and sell to the Investor and the Investor shall
purchase from the Company 8,670,520 shares (the “Securities”) of the Company’s common stock, no par value per share (the “Common Stock”), for a purchase price of $1.73 per share (the “Purchase
Price”), or an aggregate purchase price for the Securities of Fifteen Million Dollars ($15,000,000). 
 (b) The
issuance and sale of the Securities to the Investor (the “Offering”) will be made without registration of the Securities under the Securities Act of 1933, as amended (together with the rules and regulations of the Securities and
Exchange Commission (the “Commission”) promulgated thereunder, the “Securities Act”), in reliance upon the exemption therefrom provided by Section 4(2) of the Securities Act. 
 (c) The Investor and its direct and indirect transferees of the Securities will be entitled to the benefits of a Registration Rights
Agreement (to the extent provided therein) to be dated on or about the date hereof, among the parties hereto (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 Commission registering the resale of the Securities under the Securities Act, and (ii) to use its best efforts to cause such Registration
Statement to be declared effective. 
 (d) Simultaneous with the execution and delivery of this Agreement, the License and
Co-Development Agreement has been executed and delivered. Pursuant to that agreement, the Company will, among other things, grant Novartis International Pharmaceutical Ltd. an exclusive worldwide license to certain of its product candidates and
related intellectual property as set forth therein. 
 2. Closing Date; Deliveries. 
 2.1 Closing Date. Subject to the terms and conditions of this Agreement, the closing of the purchase and sale of the Securities (the
“Closing”) shall be held on the second (2nd) business day after the satisfaction or waiver of
all of the conditions to the Closing (other than those conditions that by their nature are to be satisfied or waived at the Closing) or such other date upon which the Company and the Investor may agree. The date of the Closing is hereinafter
referred to as the “Closing Date.” 

 2.2 Deliveries. 
 (a) Deliveries by the Company. At the Closing, the Company shall deliver to the Investor the Securities in certificated
form. The Company will also make all such deliveries as are contemplated by Section 5 of this Agreement in connection with the Closing. 
 (b) Deliveries by the Investor. At the Closing, the Investor shall deliver the aggregate Purchase Price by wire transfer of same day funds per the Company’s wiring instructions (which shall have
been delivered to the Investor not less than two business days before the Closing Date). The Investor will also make all such deliveries as are contemplated by Section 6 of this Agreement in connection with the Closing. 
 2.3 Further Assurances. The Company and the Investor hereby covenant and agree without the necessity of any further consideration, to execute,
acknowledge and deliver any and all such other documents and take any such other action as may be reasonably necessary to carry out the intent and purposes of this Agreement. 
 3. Representations and Warranties of the Company. The Company hereby represents and warrants to the Investor that the statements contained in this Section 3 are true and correct as of the date hereof:

 3.1 Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Washington. The Company has all requisite corporate power and corporate authority to own and operate its properties and assets, to carry on its business as now conducted and as proposed to be conducted, to
enter into this Agreement, to issue and sell the Securities and to carry out the other transactions contemplated hereunder. The Company, and each subsidiary of the Company listed on Exhibit 21.1 of the Company’s Annual Report on Form 10-K/A for
the year ended December 31, 2005 (each a “Subsidiary” and collectively, the “Subsidiaries”), is qualified to transact business and is in good standing in each jurisdiction in which the failure to qualify would
have, or could reasonably be expected to have, individually or in the aggregate, a material adverse effect on the business, properties, financial condition or results of operations of the Company and its Subsidiaries taken as a whole (a
“Material Adverse Effect”). The Company has delivered to the Investor true, correct and complete copies of the Company’s Amended and Restated Articles of Incorporation (the “Certificate of Incorporation”) and
the Company’s Amended and Restated Bylaws (the “Bylaws”) in effect on the date hereof. 
 3.2 Capitalization and
Voting Rights. 
 (a) The authorized capital of the Company as of the date hereof consists of: 
 (i) Preferred Stock. 10,000,000 shares of Preferred Stock, no par value per share (the “Preferred Stock”), of
which no shares are issued and outstanding. 
  

 2 

 (ii) Common Stock. 200,000,000 shares of Common Stock, of which 110,410,023 shares
are issued and outstanding as of August 31, 2006. There has been no material increase in the number of outstanding shares since August 31, 2006. 
 (b) Except as set forth in the Company’s Public Filings, there are: (i) no outstanding options, warrants, rights (including conversion or preemptive rights) or agreements pursuant to which the Company is or
may become obligated to issue, sell or repurchase any shares of its capital stock or any other securities of the Company; (ii) no restrictions on the transfer of capital stock or any other securities of the Company imposed by the Certificate of
Incorporation or Bylaws of the Company, or any agreement to which the Company is a party, any order of any court or any governmental agency to which the Company is subject, or any statute other than those imposed by relevant state and federal
securities laws; (iii) no cumulative voting rights for any of the Company’s capital stock; and (iv) to the Company’s knowledge, no options or other rights to purchase shares of capital stock or any other securities from
stockholders of the Company granted by such stockholders. 
 (c) As of the date hereof, of the authorized Common Stock
(i) 800,000 shares are reserved for issuance upon exercise of outstanding warrants disclosed in the Company’s Public Filings, (ii) 6,361,794 shares are reserved for issuance upon exercise of outstanding options under the 1994 Equity
Incentive Plan, the 2003 Equity Incentive Plan and the Novuspharma S.p.A. Stock Option Plan (collectively, the “Plans”), (iii) 1,219,444 shares are reserved for issuance upon vesting of outstanding restricted stock units
awarded under the Plans, (iv) 15,666 shares are reserved for issuance upon vesting of outstanding restricted share rights, (v) 4,085,188 shares are reserved for issuance upon conversion of the Company’s outstanding 4% Convertible
Senior Subordinated Notes due 2010, (vi) 2,740,700 shares are reserved for issuance upon conversion of the Company’s outstanding 5.75% Convertible Senior Subordinated Notes due 2008, (vii) 837,941 shares are reserved for issuance upon
conversion of the Company’s outstanding 5.75% Convertible Subordinated Notes due 2008, (viii) 2,662,590 shares are reserved for issuance upon conversion of the Company’s outstanding 6.75% Convertible Senior Notes due 2010, and
(ix) 27,455,028 shares are reserved for issuance upon conversion of the Company’s 7.5% Convertible Senior Notes due 2011. Other than as set forth in the preceding sentence, there are no other shares of Common Stock reserved for issuance.

 (d) Except as set forth in the Company’s Public Filings, the Company is not a party to or is not subject to any
agreement or understanding relating to, and to the Company’s knowledge there is no agreement or understanding between any Persons which affects or relates to, the voting of shares of capital stock of the Company or the giving of written
consents by a stockholder or director of the Company. 
 3.3 Subsidiaries. Except as set forth in the Company’s Public Filings:

 (a) The Company does not presently own or control, directly or indirectly, any other corporation, association, partnership,
trust, joint venture or other business entity and does not currently own or control, directly or indirectly, any capital stock or other 
  

 3 

 ownership interest, directly or indirectly, in any corporation, association, partnership, trust, joint
venture or other entity. Each of the Subsidiaries is duly organized and validly existing under the laws of its jurisdiction or organization, is in good standing under such laws and is duly qualified to do business as a foreign corporation in each
jurisdiction in which a failure to so qualify would have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
 (b) All the outstanding shares of capital stock of each Subsidiary are validly issued, fully paid and nonassessable, and are owned by the
Company free and clear of any Encumbrances. 
 (c) There are no options, warrants, convertible securities, or other rights,
agreements, arrangements or commitments of any character relating to the capital stock of any Subsidiary. 
 (d) There are no
voting trusts, stockholder agreements, proxies or other agreements or understandings in effect with respect to the voting or transfer of any shares of capital stock of or any other interests in any Subsidiary. 
 3.4 Corporate Authorization. All corporate action on the part of the Company, its officers, directors and its stockholders necessary for
the authorization, execution and delivery of this Agreement, the Registration Rights Agreement and the License and Co-Development Agreement (such agreements, other than this Agreement, the “Ancillary Agreements”), the performance of
all obligations of the Company hereunder and thereunder and the authorization, issuance and delivery of the Securities to be issued and sold hereunder, has been taken. This Agreement and the Ancillary Agreements have been duly executed and delivered
by the Company and (assuming the due authorization, execution and delivery by the other party to such agreements) constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance with their terms (except
as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws of general application now or hereafter in effect relating to or affecting enforcement of creditors rights generally and by
general principles of equity, regardless of whether such enforcement is considered in a proceeding at law or in equity). 
 3.5 No
Conflict. The execution, delivery and performance of this Agreement and the Ancillary Agreements and compliance with the provisions hereof and thereof by the Company, will not: 
 (a) violate any provision of law, statute, ordinance, rule or regulation or any ruling, writ, injunction, order, judgment or decree of any
court, administrative agency or other Governmental Authority, the violation of which would have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; 
 (b) conflict with or result in any breach of any of the terms, conditions or provisions of, or constitute (with due notice or lapse of
time, or both) a default (or give rise to any right of termination, cancellation or acceleration) under (i) any material agreement, document, instrument, contract, understanding, arrangement, note, indenture, mortgage or lease to which the
Company is a party or under which the Company or any of its assets is bound or affected, (ii) the Certificate of Incorporation, or (iii) the Bylaws; or 
  

 4 

 (c) result in the creation of any Encumbrance upon any of the Securities or on any of the
properties or assets of the Company or any Subsidiary. 
 3.6 Authorization. The Securities have been duly authorized and, when issued
pursuant to the terms of this Agreement, will be validly issued, fully paid and non-assessable, free of any preemptive or similar rights and any Encumbrances; will have been issued in compliance with all applicable federal, state and foreign
securities laws, will not have been issued in violation of or subject to any preemptive or similar right that does or will entitle any person to acquire any capital stock or other security from the Company upon issuance or sale of the Securities and
will not be subject to any restriction upon the voting or transfer thereof pursuant to applicable law or the Certificate of Incorporation, the Bylaws or governing documents or any agreement to which the Company or any Subsidiary thereof is a party
or by which any of them may be bound. 
 3.7 Liabilities. Except as set forth in the Company’s Public Filings, since
June 30, 2006, the Company has not incurred any unpaid indebtedness for money borrowed or any other contractual liabilities other than in the ordinary course of business or in excess of $1,000,000 in the aggregate. 
 3.8 Governmental Consents. No Consent, filing, order, registration, approval, authorization qualification of, with or from any Governmental
Authority, is required by the Company for the execution, delivery and performance of this Agreement or consummation of the Offering and the other transactions contemplated by the Ancillary Agreements, including the issuance, sale and delivery of the
Securities, except (i) such Consents as may be required under the rules of the Nasdaq Stock Market or state securities or “blue sky” laws, which Consents, if required, shall be obtained by the Company prior to the Closing,
(ii) the approval of the Commission of a resale registration statement on Form S-3 as contemplated by the Registration Rights Agreement or (iii) as may be required pursuant to the Hart-Scott-Rodino Premerger Notification Act (“HSR
Act”), if applicable. No consent, approval or authorization of the stockholders of the Company is required in connection with the issuance of the Securities. 
 3.9 Litigation. Except as set forth in Section 3.9 of the Disclosure Schedule attached as Annex A to this Agreement (the “Disclosure Schedule”): there is no action, suit, proceeding
or investigation pending or, to the Company’s knowledge, currently threatened against the Company or any Subsidiary; to the Company’s knowledge, there is no action, suit, proceeding or investigation pending or currently threatened against
a stockholder of the Company in his, her or its capacity as such; to the knowledge of the Company, there has not occurred any event nor does there exist any condition on the basis of which any action, suit, proceeding or investigation might properly
be instituted with any substantial chance of recovery; to the Company’s knowledge, there are no legal actions or investigations pending or threatened involving the employment by or with the Company of any of the Company’s current or former
employees, their use in connection with the Company’s business of any information or techniques allegedly proprietary to any of their former employers, or their obligations under any agreements with prior employers or alleging a violation of
any federal, state or local statute or common law relationship with the Company; to the Company’s knowledge, there is no pending or contemplated, any investigation 
  

 5 

 by the Commission involving the Company or any current or former director or officer of the Company; the Company is not a
party to any order, writ, injunction, judgment or decree of any court; and the Company has not received any stop order or other order suspending the effectiveness of any registration statement of the Company and, to the Company’s knowledge, the
Commission has not issued any such order. There is no action, suit, proceeding or investigation by the Company currently pending or that the Company intends to initiate. 
 3.10 Employees and Consultants. Except as set forth in Section 3.10 of the Disclosure Schedule: 
 (a) Neither the execution nor delivery of this Agreement or the Ancillary Agreements, nor the carrying on of the Company’s business by the employees of the Company or its Subsidiaries, nor the conduct of the
Company’s business as proposed, will, to the Company’s knowledge, conflict with or result in a breach of the terms, conditions or provisions of, or constitute a default under, any material contract, covenant or instrument under which any
of such employees is now obligated. 
 (b) Each employee of, or consultant to, the Company or its Subsidiaries, who has or is
proposed to have access to confidential or proprietary information of the Company or its Subsidiaries, is a signatory to, and is bound by, an agreement with the Company relating to nondisclosure, proprietary information and assignment of patent,
copyright and other intellectual property rights. 
 (c) No employee of, or consultant to, the Company or its Subsidiaries is
in violation of any term of any employment contract, patent disclosure agreement or any other contract or agreement relating to the Company including, but not limited to, those matters relating to (i) the relationship of any such employee with
the Company or to any other party as a result of the nature of the Company’s business as currently conducted, or (ii) unfair competition, trade secrets or proprietary information. 
 (d) The Company does not believe it is or will be necessary to utilize any inventions of any of its employees made prior to their
employment by the Company or its Subsidiaries. 
 3.11 Intellectual Property. The Company and each Subsidiary owns or licenses, free
and clear of Encumbrances, all patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service
marks and trade names currently employed by them in the connection with the business now conducted or contemplated to be conducted by them that are necessary or advisable for the conduct of such business (“Intellectual Property”) of
the Company and the Subsidiaries, except where failure to own, license or possess or otherwise to be able to acquire such intellectual property would not singly, or in the aggregate, have a Material Adverse Effect. To the knowledge of the Company,
the Company’s business, as currently conducted or contemplated to be conducted, does not and will not infringe on or conflict with the rights or intellectual property of third parties, and neither the Company nor any Subsidiary has received any
notice of infringement of or conflict with asserted rights of others with 
  

 6 

 respect to any intellectual property that, singly or in the aggregate, if the subject of unfavorable
decision, ruling or finding, would have a Material Adverse Effect, in each case except as described in Section 3.11 of the Disclosure Schedule. 
 (b) (i) To the Company’s knowledge, the Company’s rights in the Intellectual Property are valid and enforceable; (ii) all material registration, maintenance and renewal fees in respect of the
Intellectual Property have been paid on time; (iii) the Company and its Subsidiaries have taken, and will continue to take, all actions which are necessary or advisable in order to protect the Intellectual Property consistent with prudent
commercial practices in the biotechnology industry; (iv) to the knowledge of the Company, no Person is infringing or otherwise violating any Intellectual Property; (v) other than the Material IP Contracts, there are no outstanding material
options, licenses or agreements of any kind relating to or affecting the Intellectual Property; and (vi) there are no material breaches or defaults of, or any disputes or threatened disputes concerning, any of the Material IP Contracts.

 (c) Schedule 3.11(b) contains a complete and accurate list of all material agreements granting any rights (including,
without limitation, licenses, options and covenants not to sue) with respect to any of the Intellectual Property (collectively, the “Material IP Contracts”), specifically indicating, as applicable, each amendment thereto.

 3.12 Compliance with Other Instruments. Neither the Company nor any Subsidiary has taken any action that conflicts with,
constitutes a default under, or results in a violation or default of any provision of the Certificate of Incorporation or the Bylaws or of any instrument, judgment, order, writ or decree. 
 3.13 Agreements; Action. 
 (a) Except as set forth in the Company’s Public Filings or in Section 3.13(a) of the Disclosure Schedule, there are no agreements, understandings, transactions or proposed transactions between the Company or any Subsidiary and any
of its officers, directors, or affiliates of a nature that would be required to be disclosed pursuant to the provisions of Item 404 of Regulation S-K, as of the date hereof and none of any such individuals or entities has any interest in any
party to any such agreement, understanding, transaction or proposed transaction. 
 (b) Except as set forth in the
Company’s Public Filings, neither the Company nor any Subsidiary thereof has (i) declared or paid any dividends, or authorized or made any distribution upon or with respect to any class or series of its capital stock (other than a dividend
or distribution by a wholly-owned Subsidiary to the Company or to another wholly-owned Subsidiary of the Company), (ii) made any loans or advances to any Person, other than ordinary advances to employees for travel expenses, or (iii) sold,
exchanged or otherwise disposed of any of its assets or rights, other than in the ordinary course of business or in an aggregate amount greater than $1,000,000. 
 (c) All material agreements to which the Company and the Subsidiaries are parties and which are required to have been filed by the Company
pursuant to the 
  

 7 

 Securities Act, the Exchange Act, and the rules and regulations thereunder have been filed by the Company
with the Commission. As of the date hereof, except as disclosed in the Company’s Public Filings and except for those agreements that by their terms are no longer in effect, each such agreement is in full force and effect and is binding on the
Company and, to the Company’s knowledge, is binding upon such other parties, in each case in accordance with its terms, and neither the Company nor, to the Company’s knowledge, any other party thereto is in breach of or default under any
such agreement. Except as disclosed in the Company’s Public Filings, the Company has not received any written notice regarding the termination of any such agreements. 
 (d) Except as set forth in the Company’s Public Filings, there are no agreements, understandings, instruments, contracts or proposed
transactions to which the Company or any Subsidiary is a party or by which it is bound that may involve (i) obligations (contingent or otherwise) of, or payments to, the Company or such Subsidiary in excess of $5,000,000, other than obligations
of, or payments to, the Company or a Subsidiary arising from purchase or sale agreements entered into in the ordinary course of business, (ii) an agreement granting an Encumbrance on assets of the Company or any Subsidiary, except for
Encumbrances for taxes not yet due and payable or otherwise in the ordinary course of business, or (iii) the license of any patent, copyright, trade secret or other proprietary right to or from the Company or a Subsidiary, other than licenses
arising from the purchase of “off the shelf” or other standard products in the ordinary course of business. 
 3.14 Registration
Rights. Except as described in the Company’s Public Filings, the Company has not granted or agreed to grant any registration rights with respect to shares of the Company’s capital stock or any other security under the Securities Act
including piggyback rights, to any Person. 
 3.15 Title to Property and Assets. Each of the Company and each Subsidiary owns or
leases all such properties as are necessary to the conduct of their respective businesses as presently operated and as proposed to be operated as described in the Company’s Public Filings. The Company and each Subsidiary have good and
marketable title in fee simple to all real property and good and marketable title to all personal property owned by them, in each case free and clear of all Encumbrances except such as could not reasonably be expected to have a Material Adverse
Effect; and any real property and buildings held under lease or sublease by the Company and any Subsidiary are held by them under valid, subsisting and enforceable leases or subleases with such exceptions as are not material to, and do not interfere
with, the use made and proposed to be made of such property and buildings by the Company and such Subsidiary. 
 3.16 Financial Statements
and SEC Filings. 
 (a) The Company is subject to and in compliance with the reporting requirements of Section 13 or
15(d) of the Securities Exchange Act of 1934, as amended (together with the rules and regulations of the Commission promulgated thereunder, the “Exchange Act”) and files reports with the Commission on the EDGAR System. The Common
Stock is registered pursuant to Section 12(g) of the Exchange Act and the outstanding shares of Common Stock are listed for quotation on the Nasdaq National 
  

 8 

 Market, and the Company has taken no action designed to, or likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act or de-listing the Common Stock from the Nasdaq National Market, nor has the Company received any notification (written or oral) that the Commission or the Nasdaq National Market is
contemplating terminating such registration or listing or that the Company is not in compliance with the continuing listing or maintenance requirements of the Nasdaq National Market. 
 (b) The Company and the Subsidiaries have filed in a timely manner each document or report required to be filed by each pursuant to the
Exchange Act, including, without limitation, the Company’s Public Filings. 
 (c) As of their respective filing dates,
each of the Company’s Public Filings complied in all material respects with the requirements of the Securities Act or the Exchange Act, as applicable, and the rules and regulations of the Commission thereunder applicable to the Company’s
Public Filings, and none of the Company’s Public Filings contained or contains any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in the light
of the circumstances existing at the time it is delivered to a purchaser, not misleading. 
 (d) As of their respective filing
dates, the financial statements of the Company included in the Company’s Public Filings (the “Financial Statements”) complied as to form in all material respects with then applicable accounting requirements and with the
published rules and regulations of the Commission with respect thereto, were prepared in accordance with generally accepted accounting principles in the United States, applied consistently with the past practices of the Company, and as of their
respective dates, fairly presented in all material respects the financial position of the Company and the results of its operations as of the time and for the periods indicated therein (except as may be indicated in the notes thereto or, in the case
of the unaudited statements, as permitted by Form 10-Q, and Regulations S-K and S-X of the Commission). 
 (e) Since
June 30, 2006, the Company has conducted its business in the ordinary course, and there has not been any material adverse change in the financial condition or operations of the Company. Except as set forth in the Financial Statements, the
Company has no material liabilities, contingent or otherwise, other than (i) liabilities incurred in the ordinary course of business subsequent to June 30, 2006 and (ii) obligations under contracts and commitments incurred in the
ordinary course of business and not required under GAAP to be reflected in financial statements, which, in both cases, individually or in the aggregate, are not material to the financial condition or operating results of the Company. Except as
disclosed in the Financial Statements, the Company is not a guarantor or indemnitor of any indebtedness of any other person, firm or corporation. 
 3.17 Controls. Except as disclosed in the Company’s Public Filings, the Company has established and maintains disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-15(e) and 15d-15(e)) that are
effective in all material respects to 
  

 9 

 ensure that material information relating to the Company, including any consolidated Subsidiaries, is
made known to its chief executive officer and chief financial officer by others within those entities. 
 (b) Except as
disclosed in the Company’s Public Filings, the Company maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or
specific authorization, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles as applied in the United States and to maintain accountability for
assets, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. 
 3.18 Employee Benefit Plans. Except as set forth in the Company’s
Public Filings, there are no “employee benefit plans” as such term is defined in Section 3(3) of the Employee Retirement Income Security Act of 1974 (“ERISA”) maintained by the Company or any Subsidiary or any stock
purchase plan, stock option plan, fringe benefit plan, bonus plan or any other deferred compensation agreement, plan, practice or pending arrangement sponsored, maintained or to which contributions are made by the Company by or on behalf of current
or former employees of the Company or any Subsidiary, their dependents or any other party. Other than as set forth in Section 3.18 of the Disclosure Schedule, the Company has no current plans to substantially alter the benefits or coverage
available under any of the employee benefit, employee pension benefit or other plans, arrangements or practices referred to above, and has retained the right to amend, modify or terminate any such plan, arrangement or practice. The Company and its
Subsidiaries are in compliance in all material respects with applicable laws governing such employee benefit, employee pension benefit or other plans arrangements or practices. 
 3.19 Tax Returns and Payments. Each of the Company and each Subsidiary has prepared and timely filed all federal, state, local, foreign and other
material tax returns that are required to be filed by it and has paid or made provision for the payment of all taxes, assessments, governmental or other similar charges, including, without limitation, all material sales and use taxes and all taxes
which the Company or the Subsidiary is obligated to withhold from amounts owing to employees, creditors and third parties, with respect to the periods covered by such tax returns (whether or not such amounts are shown as due on any tax return).
There is no tax Encumbrance, whether imposed by any federal, state, local, foreign or other taxing authority, outstanding against the assets, properties or business of the Company or any Subsidiary. Neither the Internal Revenue Service nor any other
taxing authority is now asserting, nor is threatening to assert, against the Company or any Subsidiary any deficiency or claim for additional taxes or interest thereon or penalties in connection therewith; nor does any material deficiency or claim
or, to the Company’s knowledge, any basis for such deficiency or claim exist. 
 3.20 Insurance. The Company and the Subsidiaries
maintain insurance of the types, against such losses and in the amounts and with such insurers as are customary in the Company’s industry and otherwise reasonably prudent, including risks customarily insured against by similarly situated
companies, all of which insurance is in full force and effect. 
  

 10 

 3.21 Labor Agreements and Actions. No collective bargaining agreement covering any employee of the
Company or any Subsidiary exists that is binding on either the Company or any Subsidiary, and, to the Company’s knowledge, no petition has been filed or proceeding instituted by an employee or group of employees of either the Company or any
Subsidiary with the National Labor Relations Board seeking recognition of a bargaining representative. To the Company’s knowledge, no organizational effort currently is being made or threatened by or on behalf of any labor union to organize any
employees of either the Company or any Subsidiary, and there is no threatened, imminent or current labor strike, dispute or organized work stoppage in effect by the employees of either the Company or any Subsidiary which could have or result in a
Material Adverse Effect. 
 3.22 Investment Company. The Company is not and, after giving effect to the offering and sale of the
Securities, will not be an “investment company” as such term is defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”). The Company shall conduct its business in a manner so that it will
not become subject to the Investment Company Act. 
 3.23 Environmental Matters. (a) To the Company’s knowledge, neither the
Company nor any of its Subsidiaries is in violation of any Environmental Law (as hereinafter defined) and to the Company’s knowledge, no material expenditures are or will be required in order to comply with any Environmental Law. As used in
this Agreement, “Environmental Law” shall mean any applicable federal, state and local law, ordinance, rule or regulation that regulates, fixes liability for, or otherwise relates to, the handling, use (including use in industrial
processes, in construction, as building materials, or otherwise), treatment, storage and disposal of hazardous and toxic wastes and substances, and to the discharge, leakage, presence, migration, actual Release (as hereinafter defined) or threatened
Release (whether by disposal, a discharge into any water source or system or into the air, or otherwise) of any pollutant or effluent. 
 (b) Neither the Company nor any of its Subsidiaries has used, generated, manufactured, refined, treated, transported, stored, handled, disposed, arranged for the disposal, transferred, produced, processed or released
(hereinafter together defined as “Release” ) any Hazardous Materials (as hereinafter defined) on, from or affecting any Property (as hereinafter defined) in any manner or by any means in violation of any Environmental Laws and to
the Company’s knowledge after due investigation, there is no threat of such Release. As used herein, the term “Property” shall include, without limitation, land, buildings and laboratory facilities owned or leased by the
Company or as to which the Company now has any duties, responsibilities (for cleanup, remedy or otherwise) or liabilities under any Environmental Laws, or as to which the Company or any Subsidiary of the Company may have such duties,
responsibilities or liabilities because of past acts or omissions of the Company or any such Subsidiary or their predecessors, or because the Company or any such Subsidiary or their predecessors in the past was such an owner or operator of, or bore
some other relationship with, such land, buildings or laboratory facilities. The term “Hazardous Materials” shall include, without 
  

 11 

 limitation, any flammable explosives, petroleum products, petroleum by-products, radioactive materials,
hazardous wastes, hazardous substances, toxic substances or related materials as defined by Environmental Laws. 
 (c) The
Company has not received written notice that the Company or any of its Subsidiaries is or may be a party potentially responsible for costs incurred at a cleanup site or corrective action under any Environmental Laws. The Company has not received any
written requests for information in connection with any inquiry by any Governmental Authority or Third Party concerning disposal sites, arrangement for disposal or other environmental matters. 
 (d) The stockholders of the Company have had no control over, or authority with respect to, the waste disposal operations of the Company
or any of its Subsidiaries. 
 3.24 Securities Laws. Neither the Company nor anyone acting on its behalf has offered securities of the
Company for sale to, or solicited any offers to buy the same from, or sold securities of the Company to, any Person, in any case so as to subject the Company, its promoter, directors or officers to any liability under the Securities Act, the
Securities Exchange Act or any state securities or blue sky law, or any other applicable laws. 
 3.25 Offering. 
 (a) The Company has complied in all respects with all applicable federal and state securities laws in connection with the offer, issuance
and sale of the Securities hereunder. 
 (b) The offer, sale and issuance of the Securities to be issued in conformity with
the terms of this Agreement constitute transactions which are exempt from the registration requirements of the Securities Act and from all applicable state registration or qualification requirements, other than those with which the Company has
complied or will comply with prior to the Closing. Neither the Company nor its Subsidiaries or any authorized agent acting on their behalf will take any action hereafter that would cause the loss of any such exemptions. 
 (c) The Company meets the requirements for the use of Form S-3 under the Securities Act. 
 3.26 Licenses and Other Rights; Compliance with Laws. Each of the Company and each Subsidiary has such permits, licenses, consents, exemptions,
franchises, authorizations and other approvals of, and has made all filings with and given all notices (each, a “Consent”) to, all governmental or regulatory authorities and self-regulatory organizations and all courts and other
tribunals as are necessary to own, lease, license and operate its respective properties and to conduct its business, and, is in all material respects complying therewith, except where the failure to have any such Consent would not, singly or in the
aggregate, have a Material Adverse Effect. Each of the Company and each Subsidiary is in compliance in all material respects with the rules, regulations and applicable laws and orders of the authorities and governing bodies having jurisdiction with
respect thereto; and no event has occurred (including), without limitation, the receipt of any notice from any authority or governing body) that would result in 
  

 12 

 or, after notice or lapse of time or both, would result in, revocation, suspension or termination of any such Consent or
would result in or, after notice or lapse of time or both, would result in any other impairment of the rights of the holder of any such Consent; except where such failure to be in compliance or the occurrence of any such event or the presence of any
such restriction would not, singly or in the aggregate, have a Material Adverse Effect. Except as disclosed in the Company’s Public Filings, neither the Company nor any Subsidiary has ever entered into or been subject to any judgment, consent
decree, compliance order or administrative order with respect to any aspect of the business, affairs, properties or assets of the Company or such Subsidiary. 
 3.27 Broker or Finders. No finder, broker, agent, financial person or other intermediary has acted on behalf of the Company in connection with this Agreement, the Ancillary Agreements or any transaction
contemplated hereby or thereby. 
 3.28 Corporate Records. The minute books of the Company and its Subsidiaries provided to the
Investor contain a complete summary of all meetings and written consents of the Company’s Board of Directors, committees thereof and stockholders since January 1, 2003 and reflect all material transactions of the Company accurately in all
material respects. 
 3.29 Market Listing. The Common Stock is listed for trading on the NASDAQ National Market and the Company is in
compliance with the rules, regulations and requirements of the NASDAQ National Market relating to the continued listing of the Common Stock. 
 3.30 Related Party Transactions. Except with respect to transactions that were not required to be disclosed at the time of such transaction, all transactions that have occurred between or among the Company, on the one hand, and any
of its officers or directors, or any affiliate or affiliates of any such officer or director on the other hand, prior to the date hereof have been disclosed in the Company’s Public Filings. 
 3.31 Accountants. Grant Thornton, LLP, which examined certain of the Company’s Financial Statements, was, to the best of the Company’s
knowledge, an independent public accounting firm as required by the Securities Act and the Securities Exchange Act at the time of such examination through its resignation on August 31, 2005. Stonefield Josephson, Inc., which examined certain of
the Company’s Financial Statements is, to the best of the Company’s knowledge, an independent public accounting firm as required by the Securities Act and the Securities Exchange Act. 
 3.32 Reliance. The Company understands that the foregoing representations and warranties shall be deemed to have been relied upon by the Investor.
No representation or warranty by the Company in this Agreement, and no written statement contained in any document, certificate or other writing delivered by the Company to the Investor contains any untrue statement of material fact or omits to
state any material fact necessary to make the statements herein or therein, in light of the circumstances under which they were made, not misleading. 
  

 13 

 4. Representations and Warranties of the Investor. The Investor hereby represents and warrants to the Company that
the statements contained in Section 4 are true and correct as of the date hereof: 
 4.1 Authorization, Governmental Consents and
Compliance with Other Instruments. All corporate action on the part of the Investor necessary for the authorization, execution and delivery of this Agreement and the performance of all obligations of the Investor hereunder has been taken or will
be taken prior to the Closing. This Agreement constitutes a valid and legally binding obligation of the Investor, enforceable in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other laws of general application relating to or affecting enforcement of creditors rights. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any
federal, state or local Governmental Authority on the part of the Investor is required in connection with the consummation of the transactions contemplated by this Agreement, except for filings required pursuant to securities laws or as may be
required by the HSR Act. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby and thereby will not result in any violation or be in conflict with or constitute, with or without the
passage of time and giving of notice, either a default under any provision of the Investor’s corporate charter or by-laws or any instrument, judgment, order, writ, decree or contract to which the Investor is a party or by which it is bound.

 4.2 Purchase Entirely for Own Account. By the Investor’s execution of this Agreement, the Investor hereby confirms that the
Securities will be acquired for investment for the Investor’s own account, not as a nominee or agent. 
 4.3 Investment Experience
and Accredited Investor Status. The Investor is an accredited investor (as defined in Regulation D promulgated under the Securities Act). The Investor is purchasing the Securities for its own account and has no intention of selling or
distributing any of such Securities or any arrangement or understanding with any other persons regarding the sale or distribution of such Securities except in accordance with the provisions of the Registration Rights Agreement and except as would
not result in a violation of the Securities Act; provided, however, that by making the representations herein, such Purchaser does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to
dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act. 
 4.4 Reliance. The Investor acknowledges that the Company and its counsel, for the purposes of the opinion to be delivered pursuant to Section 5.4(a) hereof, will rely upon the accuracy and truth of the representations set forth
in Sections 4.2 and 4.3 hereof and that Investor hereby consents to such reliance. 
 5. Conditions to Closing of Investor. The Investor’s
obligation to purchase the Securities and consummate the other transactions contemplated hereby at the Closing is subject to the fulfillment as of the Closing of the following conditions (unless waived in writing by the Investor): 
  

 14 

 5.1 Representations and Warranties Correct. 
 The representations and warranties made by the Company in Section 3 hereof shall be true and correct in all material respects as of the date of this
Agreement, and the representations and warranties made by the Company in Sections 3.1, 3.4, 3.5, 3.6, 3.8, and 3.25 be true and correct in all material respects as of the Closing Date with the same force and effect as though such representations and
warranties had been made on such Closing Date. 
 5.2 Covenants. All covenants, agreements and conditions contained in this Agreement
and the Ancillary Agreements to be performed by the Company on or prior to the Closing Date shall have been performed or complied with in all material respects. 
 5.3 Compliance Certificate. The Company shall have delivered to the Investor a certificate, dated as of the Closing Date, executed by the President and Chief Executive Officer of the Company, certifying to the
fulfillment of the conditions specified in Sections 5.1 and 5.2 of this Agreement. 
 5.4 Legal Opinions. The Investor shall have
received opinions from: 
 (a) O’Melveny & Myers LLP (or other legal counsel to the Company reasonably
satisfactory to the Investor) addressed to the Investor and Novartis International Pharmaceutical Ltd. and dated as of the Closing Date, in a form (including any supporting officer’s certificate) acceptable to Investor; and 
 (b) Local Washington counsel acceptable to the Investor addressed to the Investor and Novartis International Pharmaceutical Ltd. and dated
as of the Closing Date, in a form (including any supporting officer’s certificate) acceptable to the Investor. 
 5.5 Certification
of Resolutions and Officers. The Company shall have delivered to the Investor a certificate or certificates, dated the Closing Date, of the Secretary of the Company certifying as to (a) the resolutions of the Company’s Board of
Directors authorizing the execution and delivery of this Agreement and the Ancillary Agreements, the issuance of the Securities to the Investor, the execution and delivery of such other documents and instruments as may be required by this Agreement
or the Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby and certifying that such resolutions were duly adopted and have not been rescinded or amended as of said date, (b) the Certificate of
Incorporation, certifying that no amendments have been made to such Certificate of Incorporation since such date, (c) the Bylaws, certifying that no amendments have been made to such Bylaws since such date (b) the name and the signature of
the officers of the Company authorized to sign, as appropriate, this Agreement, the Ancillary Agreements and the other documents and certificates to be delivered pursuant to this Agreement or the Ancillary Agreements by either the Company or any of
its officers. 
 5.6 Certain Events. There shall not have occurred an Adverse Event. 
 5.7 Good Standing Certificate. The Company shall have delivered to the Investor (i) a good standing certificate dated as of a date not
earlier than five (5) business days prior to the Closing Date issued with respect to the Company by the Secretary of State of Washington. 
  

 15 

 5.8 Other Agreements. The Company shall have delivered to the Investor the Registration Rights
Agreement in the form of Exhibit A attached hereto and such agreement shall be in full force and effect. 
 5.9 Proceedings and
Documents. All corporate and other proceedings to have been taken and all waivers and consents to be obtained in connection with the transactions contemplated by this Agreement and the Ancillary Agreements shall have been taken or obtained, and
all documents incidental hereto and thereto shall be satisfactory to the Investor and its counsel, and the Investor and its counsel shall have received copies (executed or certified, as may be appropriate) of all documents which the Investor or its
counsel may reasonably have requested in connection with such transactions. 
 5.10 Continued Market Listing. On the Closing Date, the
Common Stock shall be listed for trading on the NASDAQ National Market and the Securities shall be approved for listing on the NASDAQ National Market. 
 5.11 No Suspension, Etc. Trading in the Common Stock shall not have been suspended by the NASDAQ National Market (except for any suspension of trading of limited duration agreed to by the Company, which
suspension shall be terminated prior to the Closing Date). 
 6. Conditions to Closing of the Company. The Company’s obligation to sell the
Securities and consummate the other transactions contemplated hereby at the Closing is subject to the fulfillment as of the Closing of the following condition: 
 6.1 Representations and Warranties Correct. The representations and warranties made by the Investor in Section 4 hereof shall be true and correct in all material respects as of the date of this Agreement,
and as of the Closing Date with the same force and effect as though such representations and warranties had been made on such Closing Date. 
 7. Mutual
Conditions to Closing. The obligations of each of the Investor and the Company to consummate the Closing are subject to the fulfillment as of the Closing Date of the following conditions: 
 7.1 Qualifications. All authorizations, consents, waivers, permits, approvals, qualifications and registrations to be obtained or effected with any
Governmental Authority, including, without limitation, necessary Blue Sky law permits and qualifications required by any state for the offer and sale to the Investor of the Securities shall have been duly obtained and effective as of the Closing
Date, and filings required under the HSR Act with respect to the transaction contemplated hereby and the Ancillary Agreements shall have been made and the required waiting period shall have elapsed or been terminated as of the Closing Date.

 7.2 Absence of Litigation. There shall be no injunction, action, suit, proceeding or investigation pending or currently threatened
against the Company or the Investor which questions the validity of this Agreement or any of the Ancillary Agreements, or the right of the Company or the Investor to enter into this Agreement or any of the Ancillary Agreements or to consummate the
transactions contemplated hereby or thereby. 
  

 16 

 7.3 License and Co-Development Agreement. The License and Co-Development Agreement shall have been
executed and delivered by the parties thereto and shall be in full force and effect, and there shall have been no amendments, alterations, modifications or waivers of any provision thereof since the date of this Agreement. 
 8. Additional Covenants and Agreements. 
 8.1
Inspection of Books and Records. The Company shall permit the Investor (so long as it holds at least twenty-five percent (25%) of the shares of Common Stock issued pursuant to this Agreement) from time to time, at the Investor’s
expense, to visit and inspect the Company’s properties, to examine its books of account and records and to discuss the Company’s affairs, finances and accounts with its officers, all at such reasonable times as may be requested by the
Investor; provided, however, that the Company shall not be obligated pursuant to this Section 8.1 to provide access to any information which it reasonably considers to be a trade secret or similar confidential information, the disclosure of
which would unfairly competitively disadvantage the Company. 
 8.2 HSR Filing. Each of the Investor and the Company agrees to prepare
and make appropriate filings under the HSR Act relating to this Agreement and the License and Co-Development Agreement and the transactions contemplated hereby and thereby as soon as reasonably practicable after the date hereof. The Parties agree to
cooperate in the antitrust clearance process and to furnish promptly to the Federal Trade Commission, the Antitrust Division of the Department of Justice and any other agency or authority, any information reasonably requested by them in connection
with such filings. 
 8.3 Securities Compliance. The Company shall take all necessary action and proceedings as may be required and
permitted by applicable law, rule and regulation, for the legal and valid resale of the Securities to subsequent holders. 
 8.4
Registration and Listing. The Company shall take all actions reasonably necessary to cause its Common Stock to continue to be registered under Sections 12(b) or 12(g) of the Securities Exchange Act, will comply in all respects with its reporting
and filing obligations under the Exchange Act, and will not take any action or file any document (whether permitted by the Securities Act or the rules promulgated thereunder) to terminate or suspend such registration or to terminate or suspend its
reporting and filing obligations under the Securities Exchange Act or Securities Act, expect as permitted herein. The Company will take all action necessary to maintain the listing and trading of the Common Stock on the NASDAQ National Market. The
Company shall use its best efforts to effect the listing of the Securities on the NASDAQ National Market, including submitting a notice of listing of additional shares with respect to the Securities to the Nasdaq Stock Market, Inc. 
 8.5 Consents. The Company shall not, prior to the Closing, take any action or enter into any material contract, arrangement, agreement or
understanding that would require the consent, waiver, approval or authorization of any third party to effect the transactions contemplated by this Agreement and the Ancillary Agreements. 
  

 17 

 8.6 Use of Proceeds. The Company shall use all payments received from the Investor pursuant to
this Agreement solely for the purpose of funding its internal working capital needs. 
 8.7 Ordinary Course. Between the date hereof
and the Closing Date the Company shall, and shall cause each of its Subsidiaries, to conduct its business in the ordinary course, consistent with past practices. 
 9. Miscellaneous. 
 9.1 Termination. This Agreement may be terminated at any time prior to the Closing: 
 (a) By mutual written agreement of the Company and the Investor; 
 (b) By either the Company or the Investor, by written notice to the other party (provided the terminating party is not then in material
breach of any representation, warranty, covenant or other agreement contained in this Agreement or any Ancillary Agreement) if the Closing shall not have been consummated on or before the forty-fifth (45th) day following the date hereof; 
 (c) By either the Company or the Investor by giving written notice to the other party if any governmental entity shall have issued an injunction or other ruling prohibiting the consummation of any of the transactions contemplated by this
Agreement or any Ancillary Agreement and such injunction or other ruling shall not be subject to appeal or shall have become final and unappealable; or 
 (d) By the Investor, if the Company has breached any material provision of this Agreement or the Ancillary Agreements, which breach remains uncured five (5) days after written notice thereof by the Investor to
the Company. 
 9.2 Effect of Termination. In the event of any termination of this Agreement pursuant to Section 9.1, all rights
and obligations of the parties hereunder shall terminate without any liability on the part of any party or its Affiliates in respect thereof; provided, however, that (i) Sections 9.4 through 9.10, 9.13, 9.14, 9.15, 9.16, 9.17, 9.18 and 9.19
shall survive any such termination and (ii) such termination shall not relieve the Company or the Investor of any liability on account of any breach of this Agreement. 
 9.3 Survival of Warranties. The representations and warranties of the Company and the Investor contained in this Agreement shall survive remain in
full force and effect for a period of one (1) year from the Closing Date, regardless of (a) any investigation made by or on behalf of officers, directors, partners, employees, agents, representatives or controlling persons, and
(b) delivery of and payment for the Securities. 
 9.4 Indemnification. The Company shall indemnify, defend and hold the Investor
and the Investor’s directors, officers, employees, agents and Affiliates harmless against any and all liabilities, loss, cost or damage, together with all reasonable costs and expenses related thereto (including legal and accounting fees and
expenses), arising from, relating to, or connected with the untruth, inaccuracy or breach of any statements, representations, warranties or covenants of the Company contained herein. The foregoing indemnification shall survive the termination of
this Agreement for any reason. 
  

 18 

 9.5 Attorney’s Fees. In the event that a final, binding and non-appealable ruling by a court
of competent jurisdiction holds that either Party breached its obligations under this Agreement, the breaching Party shall pay all reasonable legal fees and expenses of the non-breaching Party. 
 9.6 Remedies. In case any one or more of the covenants or agreements set forth in this Agreement shall have been breached by any party hereto, the
party or parties entitled to the benefit of such covenants or agreements may proceed to protect and enforce their rights either by suit in equity or action at law, including, but not limited to, an action for damages as a result of any such breach
or an action for specific performance of any such covenant or agreement contained in this Agreement. The rights, powers and remedies of the parties under this Agreement are cumulative and not exclusive of any other right, power or remedy which such
parties may have under any other agreement or law. No single or partial assertion or exercise of any right, power or remedy of a party hereunder shall preclude any other or further assertion or exercise thereof. 
 9.7 Successors and Assigns. Except as otherwise expressly provided herein, the terms and conditions of this Agreement shall inure to the benefit
of and be binding upon the respective successors and permitted assigns of the parties, including, without limitation, successors through merger, consolidation, reorganization, recapitalization, any similar transaction or otherwise. Neither this
Agreement nor any rights or duties of a party hereto may be assigned by the Company, in whole or in part, without the prior written consent of the Investor. This Agreement or any rights and/or obligations hereunder may be assigned by the Investor
without the prior written consent of the Company. 
 9.8 Entire Agreement. This Agreement and the other writings referred to herein or
delivered pursuant hereto which form a part hereof contain the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all prior and contemporaneous arrangements or understandings, whether written or
oral, with respect thereto. 
 9.9 Governing Law. This Agreement shall be governed by and construed under the laws of the State of New
York (without regard to the conflict of law principles thereof). 
 9.10 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 9.11
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
 9.12 Nouns and Pronouns. Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter
forms, and the singular form of names and pronouns shall include the plural and vice-versa. 
  

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 9.13 Notices. Unless otherwise provided, all notices, requests, consents and other communications hereunder to any
party shall be given in writing and shall be deemed effectively given upon personal delivery to the party to be notified or five business days after being duly sent by first class registered or certified mail, or other courier service, postage
prepaid, or the following business day after being telecopied with a confirmation copy by regular mail, and addressed or telecopied to the party to be notified at the address or telecopier number indicated for such party, as the case may be, set
forth below or such other address or telecopier number, as the case may be, as may hereafter be designated in writing by the addressees to the addressor listing all parties: 
 To the Company: 
 Cell Therapeutics, Inc. 
 501 Elliott Avenue West 
 Suite 400 
 Seattle, Washington 98119 

			
	Attention:	 	Louis A. Bianco
	Fax: (206) 272-4397

 With a copy (which shall not constitute notice) to: 
 O’Melveny & Myers LLP 
 275 Battery Street, Suite 2600 
 San Francisco, CA 94111 

			
	Attention:	 	Michael J. Kennedy
	Fax: (415) 984-8701

 To the Investor: 
 Novartis Pharma AG 
 Lichtstrasse 35 
 CH-4002 Basel 
 Switzerland 

			
	Attention:	  	Joseph E. Mamie
	Fax: 41 61 324 8111

 With a copy (which shall not constitute notice) to: 
 Novartis Pharma AG 
 Lichtstrasse 35 
 CH-4002 Basel 
 Switzerland 

			
	Attention:	 	Robert Pelzer
		 	General Counsel
	Fax: 41 61 324 6859

  

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 With a copy (which shall not constitute notice) to: 
 Kaye Scholer LLP 
 425 Park Avenue 
 New York, New York 10022 

			
	 Attention:
	  	Adam H. Golden, Esq.
	Fax: (212) 836-8689

 9.14 Finder’s Fee. The Investor agrees to indemnify and to hold harmless the Company
from any liability for any commission or compensation in the nature of a finder’s fee (and the reasonable costs and expenses of defending against such liability or asserted liability) for which the Investor or any of its officers, partners,
employees, or representatives is responsible. The Company agrees to indemnify and hold harmless the Investor from any liability for any commission or compensation in the nature of a finder’s fee (and the reasonable costs and expenses of
defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible. 
 9.15 Expenses. Except as otherwise contemplated herein, each party shall pay its own fees and expenses with respect to this Agreement. 
 9.16 Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and the Investor (other than the waiver of any condition set forth in Section 5, which may be waived in the sole discretion of the Investor, and other than the waiver of any condition
set forth in Section 6, which may be waived in the sole discretion of the Company). 
 9.17 Severability. If one or more
provisions of this Agreement are held to be unenforceable under applicable law, in any jurisdiction, such provision shall be ineffective, as to such jurisdiction, and the balance of the Agreement shall be interpreted as if such provision were so
excluded, without invalidating the remaining provisions of this Agreement; and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 9.18 Confidentiality and Publicity. (a) Confidentiality. Subject to the other provisions of this Section 9.18, all Confidential
Information disclosed by a Party or its Affiliates under this Agreement will be maintained in confidence and otherwise safeguarded by the recipient Party. The recipient Party may only use the Confidential Information for the purposes of this
Agreement and pursuant to the rights granted to the recipient Party under this Agreement. Subject to the other provisions of this Section 9.18, each Party shall hold as confidential such Confidential Information of the other Party or its
Affiliates in the same manner and with the same protection as such recipient Party maintains its own confidential information. Subject to the other provisions of this Section 9.18, a recipient Party may only disclose Confidential Information of
the other Party to employees, agents, contractors, consultants and advisers of the Party and its Affiliates and sublicensees and to third parties to the extent reasonably necessary for the purposes of, and for those matters undertaken pursuant to,
this Agreement; provided that such Persons are bound to maintain the confidentiality of the Confidential Information in a manner consistent with the confidentiality provisions of this Agreement. 
  

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 (b) Exceptions. The obligations under this Section shall not apply to any
information to the extent the recipient Party can demonstrate by competent evidence that such information: 
 (i) is (at the
time of disclosure) or becomes (after the time of disclosure) known to the public or part of the public domain through no breach of this Agreement by the recipient Party or its Affiliates; 
 (ii) was known to, or was otherwise in the possession of, the recipient Party or its Affiliates prior to the time of disclosure by the
disclosing Party or its Affiliate; 
 (iii) is disclosed to the recipient Party or an Affiliate on a non-confidential basis by
a third party who is entitled to disclose it without breaching any confidentiality obligation to the disclosing Party or any of its Affiliates; or 
 (iv) is independently developed by or on behalf of the recipient Party or its Affiliates, as evidenced by its written records, without reference to the Confidential Information disclosed by the disclosing Party or its
Affiliates under this Agreement. 
 (c) Authorized Disclosures. In the event the recipient Party is required to
disclose Confidential Information of the disclosing Party by law or in connection with bona fide legal process, such disclosure shall not be a breach of this Agreement; provided that the recipient Party (i) informs the disclosing Party as soon
as reasonably practicable of the required disclosure, (ii) limits the disclosure to the required purpose, and (iii) at the disclosing Party’s request and expense, assists in an attempt to object to or limit the required disclosure.

 (d) Publicity. Each Party agrees not to issue any press release or other public statement, whether oral or
written, disclosing the existence of this Agreement, the terms hereof or any information relating to this Agreement without the prior written consent of the other Party, provided however, that neither Party will be prevented from complying with any
duty of disclosure it may have pursuant to law or governmental regulation or pursuant to the rules of any recognized stock exchange or quotation system. In the event of a disclosure required by law, governmental regulation or the rules of any
recognized stock exchange or quotation system, the Parties shall coordinate with each other with respect to the timing, form and content of such required disclosure to the extent practicable under the circumstances, and, if so requested by the other
Party, the Party subject to such obligation shall use commercially reasonable efforts to obtain an order protecting to the maximum extent possible the confidentiality of such provisions of this Agreement as reasonably requested by the other Party.
If the Parties are unable to agree on the form or content of any required disclosure, such disclosure shall be limited to the minimum required, as determined by the disclosing Party in consultation with its legal 
  

 22 

 counsel. Without limiting the foregoing, each Party shall consult with the other Party on the provisions
of this Agreement, together with exhibits or other attachments attached hereto, to be redacted in any filings made by the Company and/or the Investor with the Securities and Exchange Commission or as otherwise required by law. 
 9.19 Definitions. As used in this Agreement, the following terms shall have the following meanings: 
 “Adverse Event” means either (i) the placement on hold of either the PIONEER Study or the Pixantrone Pivotal Study (each, as defined
in the License and Co-Development Agreement) due to study drug associated safety concerns or (ii) the Bankruptcy of the Company or any Subsidiary thereof. 
 “Affiliate” shall mean, with respect to any Person, any other Person that directly or indirectly, by itself or through one or more intermediaries, controls, or is controlled by, or is under common
control with, such Person. The term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise. Control will be presumed if one Person owns, either of record or beneficially, at least 50% of the voting stock of any other Person. 
 “Agreement” shall have the meaning set forth in the Preamble. 
 “Ancillary
Agreements” shall have the meaning set forth in Section 3.4. 
 “Bankruptcy” means with respect to a Person,
(a) such Person shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency, or other similar law now or hereinafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, or shall consent to any such relief or to the appointment of or taking possession by any such
official in an involuntary case or other proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall take any corporate action to authorize any of the foregoing; (b) an involuntary case or other
proceeding shall be commenced against such Person seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency, or other similar law now or hereinafter in effect or seeking the appointment
of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property; (c) a decree or order for relief shall be entered against such Person under any bankruptcy, insolvency, or other similar law
as now or hereafter in effect; or (d) the dissolution or liquidation of, or cessation of business in the ordinary course by, or the failure to pay its debts as they come due by, or the admission in writing of the inability to pay its debts as
they become due by, such Person. 
 “Bylaws” shall have the meaning set forth in Section 3.1. 
 “Certificate of Incorporation” shall have the meaning set forth in Section 3.1. 
 “Closing” shall have the meaning set forth in Section 2.1. 
  

 23 

 “Closing Date” shall have the meaning set forth in Section 2.1. 
 “Code” shall have the meaning set forth in Section 3.18. 
 “Common Stock” shall have the meaning set forth in Section 1.1(a). 
 “Commission” shall have the meaning set forth in Section 1.1(b). 
 “Company” shall have the meaning set forth in the Preamble. 
 “Company’s Public Filings” shall mean, collectively and including documents filed as exhibits thereto as incorporated therein, the
Company’s (i) Annual Report on Form 10-K/A for the year ended December 31, 2005, (ii) Quarterly Reports on Form 10-Q for the periods ended March 31, 2006 and June 30, 2006, (iii) Current Reports on Form 8-K filed
with the Commission on April 11, 2006, April 28, 2006, June 23, 2006, July 14, 2006 and August 3, 2006, and (iv) Proxy Statement for the Annual Meeting of Shareholders held on June 23, 2006. 
 “Confidential Information” means all proprietary information and data of a financial, commercial or technical nature which the
disclosing Party or any of its Affiliates has supplied or otherwise made available to the other Party or its Affiliates, whether made available orally, in writing or in electronic form. 
 “Consent” shall have the meaning set forth in Section 3.26. 
 “Disclosure Schedule” shall have the meaning set forth in Section 3.9. 
 “Encumbrance(s)” shall mean any security interest, pledge, mortgage, lien (including, without limitation, environmental and tax liens),
charge, encumbrance, adverse claim, or restriction of any kind, including, without limitation, any restriction on the use, voting, transfer, receipt of income or other exercise of any attributes of ownership. 
 “Environmental Law” shall have the meaning set forth in Section 3.23(a). 
 “ERISA” shall have the meaning set forth in Section 3.18. 
 “Exchange Act” shall have the meaning set forth in Section 3.16(a). 
 “Financial Statements” shall have the meaning set forth in Section 3.16(d). 
 “Governmental Authority” shall mean any nation or government, any federal, state, municipal, local, provincial, regional or other
political subdivision thereof, the National Association of Security Dealers, any self-regulatory organization or stock exchange, and any Person exercising executive, legislative, judicial regulatory or administrative functions of or pertaining to
government. 
 “Hazardous Materials” shall have the meaning set forth in Section 3.23(b). 
 “HSR Act” shall have the meaning set forth in Section 3.8. 
  

 24 

 “Intellectual Property” shall have the meaning set forth in Section 3.11.

 “Investment Company Act” shall have the meaning set forth in Section 3.22. 
 “Investor” shall have the meaning set forth in the Preamble. 
 “License and Co-Development Agreement” shall mean that certain License and Co-Development Agreement among the Company, CTI Technologies,
Inc., Cell Therapeutics Europe S.r.L. and Novartis International Pharmaceutical Ltd., dated as of the date hereof, a copy of which is attached as Exhibit D hereto. 
 “Material Adverse Effect” shall have the meaning set forth in Section 3.1. 
 “Material IP Contracts” shall have the meaning set forth in Section 3.11(b). 
 “Novartis”
shall have the meaning set forth in the Preamble. 
 “Offering” shall have the meaning set forth in Section 1.1(b).

 “Person” means any individual, partnership, firm, corporation, association, trust, unincorporated organization,
government or any department or agency thereof or other entity, as well as any syndicate or group that would be deemed to be a Person under Section 13(d)(3) of the Securities Exchange Act. 
 “Preferred Stock” shall have the meaning set forth in Section 3.2(a)(i). 
 “Property” shall have the meaning set forth in Section 3.23(b). 
 “Purchase Price” shall have the meaning set forth in Section 1.1(a). 
 “Registration Rights Agreement” shall have the meaning set forth in Section 1.1(c). 
 “Registration Statement” shall have the meaning set forth in Section 1.1(c). 
 “Securities” shall have the meaning set forth in Section 1.1(a). 
 “Securities Act” shall have the meaning set forth in Section 1.1(b). 
 “Subsidiary” or “Subsidiaries” shall have the meaning set forth in Section 3.1. 
 [Signatures on next page] 
  

 25 

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first above
written. 
  

			
	NOVARTIS PHARMA AG
		
	By:	 	 /s/    JOSEPH E. MAMIE

	Name:	 	 Joseph E. Mamie

	Title:	 	 Head Operational Treasury

		
	By:	 	 /s/    MATTHAIS RUNGE

	Name:	 	 Matthais Runge

	Title:	 	 Head Legal Oncology Region Europe

	
	CELL THERAPEUTICS, INC.
		
	By:	 	 /s/    JAMES A. BIANCO

	Name:	 	 James A. Bianco, M.D.

	Title:	 	 President and Chief Executive Officer

 [SIGNATURE PAGE TO SECURITIES
PURCHASE AGREEMENT] 

 Exhibit A 
 Form of Registration Rights Agreement 
 (See attached) 

 Exhibit B 
 Form of License and Co-Development Agreement 
 (See attached)

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