WARRANT REPURCHASE AGREEMENT

Exhibit 10.2

WARRANT REPURCHASE AGREEMENT

This Warrant Repurchase Agreement (this “ Agreement ”) is dated as of October 16, 2006, among Cell Therapeutics, Inc., a Washington corporation (the “ Company ”), and the warrant holder identified on the signature page hereto (the “ Holder ”).

WHEREAS, the Company and the Holder are party to a Securities Purchase Agreement, dated as of September 18, 2006 (the “ Purchase Agreement ”), pursuant to which the Holder received that Greenshoe Common Stock Purchase Warrant to purchase the number of shares of Common Stock set forth on the signature page hereto (the “ Warrant ”);

WHEREAS, the Company wishes to repurchase the Warrant from the Holder at a price of $0.20 per share issuable upon exercise of the Warrant (the “ Repurchase Price ”); and

WHEREAS, subject to the terms and conditions set forth in this Agreement, the Company and the Holder desire to void the sale of the above referenced transaction to the extent more fully described in this Agreement.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Holder agree as follows:

1. Repurchase . As soon as practicable following the date of this Agreement, the parties agree that (i) the Holder will deliver the Warrant to the Company and (ii) within one business day following receipt of the Warrant, the Company will wire to the