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DOCUMENT TITLE:  CELL THERAPEUTICS, INC. 2007 EQUITY INCENTIVE PLAN .
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Clause Heading
1.1 - Background.
1.2 - Purpose of the Plan.
SECTION 2 - DEFINITIONS
3.1 - The Committee.
3.2 - Authority of the Committee.
3.3 - Delegation by the Committee.
3.4 - Decisions Binding.
4.1 - Number of Shares.
4.2 - Lapsed Awards.
4.3 - Adjustments in Awards and Authorized Shares.
5.1 - Grant of Options.
5.2 - Award Agreement.
5.3 - Exercise Price.
5.3.1 - Nonqualified Stock Options.
5.3.2 - Incentive Stock Options.
5.3.3 - Substitute Options.
5.4.1 - Expiration Dates.
5.4.2 - Committee Discretion.
5.5 - Exercisability of Options.
5.6 - Payment.
5.7 - Restrictions on Share Transferability.
5.8.1 - Exercisability.
5.8.2 - Termination of Service.
5.8.3 - Company and Subsidiaries Only.
5.8.4 - Expiration; Other Terms.
6.1 - Grant of SARs.
6.1.1 - Number of Shares.
6.1.2 - Exercise Price and Other Terms.
6.2 - Exercise of Tandem SARs.
6.3 - Exercise of Affiliated SARs.
6.4 - Exercise of Freestanding SARs.
6.5 - SAR Agreement.
6.6 - Expiration of SARs.
6.7 - Payment of SAR Amount.
7.1 - Grant of Restricted Stock.
7.2 - Restricted Stock Agreement.
7.3 - Transferability.
7.4 - Other Restrictions.
7.4.1 - General Restrictions.
7.4.3 - Legend on Certificates.
7.5 - Removal of Restrictions.
7.6 - Voting Rights.
7.7 - Dividends and Other Distributions.
7.8 - Return of Restricted Stock to Company.
SECTION 8 - CASH AWARDS
9.1.1 - Generally.
9.1.2 - Options and SARs.
9.1.3 - Restricted Stock.
9.1.4 - Cash Awards.
9.2 - Deferrals.
9.3 - No Effect on Employment or Service.
9.4 - Participation.
9.5 - Limitations on Awards.
9.6 - Indemnification.
9.7 - Successors.
9.8 - Beneficiary Designations.
9.9 - Limited Transferability of Awards.
9.10 - No Rights as Shareholder.
9.11 - Tax Matters.
10.1 - Amendment, Suspension, or Termination.
10.2 - Duration of the Plan.
11.1 - Withholding Requirements.
11.2 - Withholding Arrangements.
11.3 - Liability for Applicable Taxes.
12.1 - Gender and Number.
12.2 - Severability.
12.3 - Requirements of Law.
12.4 - Securities Law Compliance.
12.5 - Governing Law.
12.6 - Captions.