X0202 4 2007-12-27 0 0000891293 CELL THERAPEUTICS INC CTIC 0001355850 Eramian Daniel G 501 ELLIOTT AVE. W. SUITE #400 SEATTLE WA 98119 0 1 0 0 EVP, Corporate Communications Common Stock 2007-12-27 4 A 0 120000 0 A 204313 D Incentive Stock Option (right to buy) 1.89 2007-12-27 4 A 0 36000 0 A 2017-12-27 Common Stock 36000 36000 D 1/3 of the shares underlying the award will vest one year from the date of grant, or December 27, 2008. The remaining 2/3 of the award have contingent vesting terms based on the Company's achievement of the following performance criteria over the next three years as follows: (a) 1/3 of the award will vest upon the Company obtaining FDA approval of CT-2103 (Xyotax) if such approval is obtained prior to December 31, 2010 and (b) 1/3 of the award shall vest if the Company has obtained a specific annual net sales threshold for Zevalin prior to December 31, 2010. In each case, vesting is also contingent upon the individual's continued service with the Company. Grant will vest over two years, with 25% to vest six months from the date of grant, 25% to vest on the one year anniversary of the date of grant, 25% to vest 18 months from the date of grant, and the entire award to be fully vested two years from the date of grant, with each such vesting period subject to the officer's continued service with the Company. Louis A. Bianco, Attorney-in-fact for Daniel G. Eramian 2007-12-31