<SEC-DOCUMENT>0001571049-15-001622.txt : 20150304
<SEC-HEADER>0001571049-15-001622.hdr.sgml : 20150304
<ACCEPTANCE-DATETIME>20150304122715
ACCESSION NUMBER:		0001571049-15-001622
CONFORMED SUBMISSION TYPE:	424B5
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20150304
DATE AS OF CHANGE:		20150304

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Cyclacel Pharmaceuticals, Inc.
		CENTRAL INDEX KEY:			0001130166
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				911766850
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-187801
		FILM NUMBER:		15672403

	BUSINESS ADDRESS:	
		STREET 1:		200 CONNELL DRIVE
		STREET 2:		SUITE 1500
		CITY:			BERKELEY HEIGHTS
		STATE:			NJ
		ZIP:			07922
		BUSINESS PHONE:		908-517-7330

	MAIL ADDRESS:	
		STREET 1:		200 CONNELL DRIVE
		STREET 2:		SUITE 1500
		CITY:			BERKELEY HEIGHTS
		STATE:			NJ
		ZIP:			07922

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	XCYTE THERAPIES INC
		DATE OF NAME CHANGE:	20001218
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>t1500500_424b5.htm
<DESCRIPTION>FINAL PROSPECTUS SUPPLEMENT
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Filed Pursuant to Rule 424(b)(5)<BR>
Registration No. 333-187801</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #FF4040"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Prospectus Supplement<BR>
<B>(to Prospectus dated April 22, 2013)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CYCLACEL PHARMACEUTICALS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>10,000,000 Shares of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are offering up to 10,000,000 shares
of our common stock. For a more detailed description of our common stock, see the section entitled &ldquo;Description of the Common
Stock We are Offering&rdquo; beginning on page S-18 of this prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our common stock is listed on The NASDAQ Global
Market under the symbol &ldquo;CYCC.&rdquo; On March 2, 2015, the last reported sale price of our common stock on The NASDAQ Global
Market was $1.69 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>An investment in our securities involves a high degree of risk.
Please read &ldquo;Risk Factors&rdquo; beginning on page S-12 of this prospectus supplement, page 13 of the accompanying
prospectus and the documents incorporated by reference into this prospectus supplement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these securities or determined if this prospectus supplement or the accompanying
prospectus is truthful or complete. Any representation to the contrary is a criminal offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have retained H.C. Wainwright &amp; Co.,
LLC to act as our exclusive sole book runner, or the placement agent, in connection with the common stock offered by this prospectus
supplement. The placement agent has agreed to use its reasonable best efforts to sell the common stock offered by this prospectus
supplement. We have agreed to pay the placement agent the placement agent fees set forth in the table below, which assumes that
we sell all of the common stock we are offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Per Share</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%">Public Offering Price</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">1.00</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">10,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Placement agent fees (1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.07</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">700,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Proceeds, before expenses, to us</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.93</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9,300,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(1)</TD><TD>In addition to the placement agent fees, we have agreed to pay
                                         the placement agent a non-accountable expense allowance of $50,000. See &ldquo;Plan of
                                         Distribution&rdquo; beginning on page S-16 of this prospectus supplement for a
                                         description of the compensation payable to the placement agent.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Delivery of the shares will take place on or
about March 9, 2015, subject to the satisfaction of certain conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>H.C.
Wainwright &amp; Co.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">The date of this prospectus supplement is March 3,
2015.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="toc"></A><B><U>Table of Contents</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 90%">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Page</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Prospectus Supplement</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_001"><FONT STYLE="font-size: 10pt; text-transform: uppercase">About
    This Prospectus Supplement</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 1</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_002"><FONT STYLE="font-size: 10pt; text-transform: uppercase">Prospectus
    Supplement Summary</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 2</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_003"><FONT STYLE="font-size: 10pt; text-transform: uppercase">The
    Offering</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 11</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_004"><FONT STYLE="font-size: 10pt; text-transform: uppercase">Risk
    Factors</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 12</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_005"><FONT STYLE="font-size: 10pt; text-transform: uppercase">Special
    Note Regarding Forward-Looking Information</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 15</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_006"><FONT STYLE="font-size: 10pt; text-transform: uppercase">Use
    of Proceeds</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 16</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_007"><FONT STYLE="font-size: 10pt; text-transform: uppercase">Dilution</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 16</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_008"><FONT STYLE="font-size: 10pt; text-transform: uppercase">Plan
    of Distribution</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 16</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_009"><FONT STYLE="font-size: 10pt; text-transform: uppercase">Description
    of the Common Stock We are Offering</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 18</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_0012"><FONT STYLE="text-transform: uppercase">Dividend Policy</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 19</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_010"><FONT STYLE="font-size: 10pt; text-transform: uppercase">Legal
    Matters</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 19</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_011"><FONT STYLE="font-size: 10pt; text-transform: uppercase">Experts</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 20</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_012"><FONT STYLE="font-size: 10pt; text-transform: uppercase">Where
    You Can Find More Information</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 20</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><A HREF="#a_013"><FONT STYLE="font-size: 10pt; text-transform: uppercase">Incorporation
    of Documents by Reference</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">S- 20</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 90%">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Page</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Prospectus</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B001">ABOUT THIS PROSPECTUS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B002">PROSPECTUS SUMMARY</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">3</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B003">RISK FACTORS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">13</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B004">RATIO OF EARNINGS TO FIXED CHARGES</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">13</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B005">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">13</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B006">USE OF PROCEEDS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">14</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B007">PLAN OF DISTRIBUTION</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">14</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B008">SECURITIES WE MAY OFFER</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">17</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B009">DESCRIPTION OF COMMON STOCK</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">18</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B010">DESCRIPTION OF PREFERRED STOCK</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">24</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B011">DESCRIPTION OF WARRANTS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">34</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B012">DESCRIPTION OF DEBT SECURITIES</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">39</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B013">DESCRIPTION OF RIGHTS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">47</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B014">DESCRIPTION OF PURCHASE CONTRACTS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">49</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B015">DESCRIPTION OF UNITS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">50</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B016">LEGAL MATTERS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">51</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B017">EXPERTS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">51</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B018">WHERE YOU CAN FIND MORE INFORMATION</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">51</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_B019">INCORPORATION OF DOCUMENTS BY REFERENCE</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">51</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">You should only rely on the information contained in, or incorporated
by reference in, this prospectus supplement and the accompanying prospectus. We and the placement agent have not authorized anyone
to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely
on it.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">This prospectus supplement and the accompanying prospectus do not
constitute an offer to sell, or a solicitation of an offer to purchase, the securities offered by this prospectus supplement and
the accompanying prospectus in any jurisdiction where it is unlawful to make such offer or solicitation. You should not assume
that the information contained in this prospectus supplement, the accompanying prospectus and the documents incorporated by reference
herein and therein is accurate as of any date other than the dates of the specific information. Neither the delivery of this prospectus
supplement nor any distribution of securities pursuant to this prospectus supplement shall, under any circumstances, create any
implication that there has been no change in the information set forth or incorporated by reference into this prospectus supplement
or in our affairs since the date of this prospectus supplement. Our business, financial condition, results of operations and prospectus
may have changed since then.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_001"></A><B>ABOUT THIS PROSPECTUS
SUPPLEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">This document is in two parts. The first part
is this prospectus supplement, which describes the terms of this offering and also adds to and updates information contained in
the accompanying prospectus and the documents incorporated by reference into this prospectus supplement and the accompanying prospectus.
The second part, the accompanying prospectus dated April 22, 2013, including the documents incorporated by reference therein,
provides more general information. Generally, when we refer to &ldquo;this prospectus,&rdquo; we are referring to both parts of
this document combined together with all documents incorporated by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">To the extent
there is a conflict between the information contained in this prospectus supplement or any &ldquo;free writing prospectus&rdquo;
we may authorize to be delivered to you, on the one hand, and the information contained in the accompanying prospectus or in any
document incorporated by reference that was filed with the Securities and Exchange Commission, or SEC, before the date of this
prospectus supplement, on the other hand, you should rely on the information in this prospectus supplement or such free writing
prospectus, as the case may be. If any statement in one of these documents is inconsistent with a statement in another document
having a later date, the statement in the document having the later date modifies or supersedes the earlier statement. You should
rely only on the information contained in or incorporated by reference into this prospectus supplement or contained in or incorporated
by reference into the accompanying prospectus to which we have referred you. We have not authorized anyone to provide you with
information that is different. If anyone provides you with different or inconsistent information, you should not rely on it. The
information contained in, or incorporated by reference into, this prospectus supplement and contained in, or incorporated by reference
into, the accompanying prospectus is accurate only as of the respective dates thereof, regardless of the time of delivery of this
prospectus supplement and the accompanying prospectus or of any sale of securities. It is important for you to read and consider
all information contained in this prospectus supplement and the accompanying prospectus, including the documents incorporated
by reference herein and therein, in making your investment decision</FONT>. <FONT STYLE="font-size: 10pt">You should also read
and consider the information in the documents to which we refer you in &ldquo;Where You Can Find More Information&rdquo; and &ldquo;Incorporation
of Documents by Reference&rdquo; on page S-20 of this prospectus supplement and any &ldquo;free writing prospectus&rdquo;
we may authorize to be delivered to you. The information incorporated by reference is considered to be part of this prospectus
supplement, and information that we file later with the SEC will automatically update and supersede this information.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We further note that the representations, warranties
and covenants made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference herein
were made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk
among the parties to such agreements, and should not be deemed to be a representation, warranty or covenant to you. Moreover,
such representations, warranties or covenants were accurate only as of the date when made. Accordingly, such representations,
warranties and covenants should not be relied on as accurately representing the current state of our affairs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">This prospectus supplement, the accompanying
prospectus, and the information incorporated herein and therein by reference include trademarks, service marks and trade names
owned by us or other companies. All trademarks, service marks and trade names included or incorporated by reference into this
prospectus supplement or the accompanying prospectus are the property of their respective owners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are offering to sell, and seeking offers
to buy, our common stock only in jurisdictions where offers and sales are permitted. The distribution of this prospectus supplement
and the accompanying prospectus and the offering of the shares of common stock in certain jurisdictions may be restricted by law.
Persons outside the United States who come into possession of this prospectus supplement and the accompanying prospectus must
inform themselves about, and observe any restrictions relating to, the offering of the shares of common stock and the distribution
of this prospectus supplement and the accompanying prospectus outside the United States. This prospectus supplement and the accompanying
prospectus do not constitute, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy,
any securities offered by this prospectus supplement and the accompanying prospectus by any person in any jurisdiction in which
it is unlawful for such person to make such an offer or solicitation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The terms &ldquo;Cyclacel,&rdquo; the &ldquo;Company,&rdquo;
&ldquo;we&rdquo; and &ldquo;us&rdquo; in this prospectus supplement refer to Cyclacel Pharmaceuticals, Inc. and its subsidiaries,
unless the context otherwise requires.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_002"></A><B>PROSPECTUS SUPPLEMENT
SUMMARY </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>This summary highlights information contained
elsewhere or incorporated by reference into this prospectus supplement and the accompanying prospectus. This summary does not
contain all of the information that you should consider before deciding to invest in our securities. You should read this entire
prospectus supplement and the accompanying prospectus carefully, including the &ldquo;Risk Factors&rdquo; section contained in
this prospectus supplement and our consolidated financial statements and the related notes and the other documents incorporated
by reference into this prospectus supplement and in the accompanying prospectus, to determine whether an investment in our common
stock is appropriate for you.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Recent Developments</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>DSMB Recommendation on SEAMLESS Phase 3 Trial of Sapacitabine
in Acute Myeloid Leukemia </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On December 16, 2014, we announced the enrollment
of 486 patients, continuation to final analysis and recommendations of the independent Data and Safety Monitoring Board, or DSMB,
of our Phase 3 SEAMLESS study of sapacitabine oral capsules in acute myeloid leukemia, or AML. The DSMB determined that the planned
futility boundary had been crossed, but saw no reasons for recruited
 patients to discontinue from the study and recommended that patients stay on treatment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">All patients will continue
to be followed-up until mature data becomes available for final analysis. The DSMB conducted its planned interim analysis for
futility after 247 events and the final safety review of 470 randomized patients. The DSMB found no safety concerns. However,
the DSMB determined that the planned futility boundary had been crossed and determined that based on available interim data, it
would be unlikely for the study to reach statistically significant improvement in survival.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The interim analysis for
futility is primarily driven by the deaths within the first six months of patients entering into the trial. Of 247 deaths in SEAMLESS,
173 (70%) occurred in the first six months, meaning survival curves beyond 6 months are poorly estimated. Furthermore, follow-up
of European patients is significantly shorter than that of U.S. patients as the study opened for European accrual in April
2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We remain blinded and
in accordance with the DSMB's recommendations will follow-up patients as provided by the study protocol until the prespecified
424 events have been observed. We currently estimate that mature data for final analysis will become available between the second
half of 2015 and the first half of 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Cash and Cash Equivalents</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Although we have not finalized our full
financial results for the fiscal year ended December 31, 2014, we expect to report that we had approximately $24.2 million of
cash, cash equivalents and investment securities as of December 31, 2014. This amount is preliminary, has not been audited and
is subject to change upon completion of the ongoing audit of our consolidated financial statements as of and for the year ended
December 31, 2014. Additional information and disclosures would be required for a more complete understanding of our financial
position and results of operations as of December 31, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Deficiency and Compliance Notices from The NASDAQ Stock Market</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On February 2, 2015, we received a written
notification from The NASDAQ Stock Market LLC indicating that we were not in compliance with NASDAQ Listing Rule 5450(a)(1) because
the minimum bid price of our shares of common stock was below $1.00 per share for the previous 30 consecutive business days. Pursuant
to the NASDAQ Listing Rule 5810(c)(3)(A), we have been granted a 180-calendar day compliance period, or until August 3, 2015,
to regain compliance with the minimum bid price requirement. During the compliance period, our shares of common stock will continue
to be listed and traded on The NASDAQ Global Market. To regain compliance, the</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

</DIV>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">closing bid price of our shares of common stock must meet or exceed
$1.00 per share for at least ten consecutive business days during this 180-day grace period. If we are not in compliance by August
3, 2015, we may be afforded a second 180-calendar day grace period if we transfer the listing of our shares of common stock to
The NASDAQ Capital Market. To qualify, we would be required to meet the continued listing requirement for market value of publicly
held shares and all other initial listing standards for The NASDAQ Capital Market, except for the minimum bid price. In addition,
we would be required to notify NASDAQ of our intent to cure the minimum bid price deficiency by effecting a reverse stock split,
if necessary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;If we do not regain compliance within
the allotted compliance period(s), including any extensions that may be granted by NASDAQ, NASDAQ will provide notice that our
shares of common stock will be subject to delisting. We would then be entitled to appeal NASDAQ&rsquo;s determination to a NASDAQ
Hearings Panel and request a hearing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We intend to consider available options to
resolve the noncompliance with the minimum bid price requirement. No determination regarding our response has been made at this
time. There can be no assurance that we will be able to regain compliance with the minimum bid price requirement or will otherwise
be in compliance with other NASDAQ listing criteria.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Our Business</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are a pioneer company in the field of cell
cycle biology with a vision to improve patient healthcare with orally available innovative medicines. Our goal is to develop and
commercialize small molecule drugs that target the various phases of cell cycle control for the treatment of cancer and other
serious diseases, particularly those of high unmet medical need.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our strategy is to build a diversified biopharmaceutical
business focused in hematology and oncology based on a development pipeline of novel drug candidates. As a development stage enterprise,
substantially all efforts of the Company to date have been devoted to performing research and development, conducting clinical
trials, developing and acquiring intellectual property, raising capital and recruiting and training personnel.</P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B>Drug Candidates</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">The cell cycle, the biological process
by which cells progress and divide, lies at the heart of cancer. In normal cells, the cell cycle is controlled by a complex series
of signaling pathways by which a cell grows, replicates its DNA and divides. This process also includes mechanisms to ensure errors
are corrected, and if not, the cells commit suicide or apoptosis. In cancer, as a result of genetic mutations, this regulatory
process malfunctions, resulting in uncontrolled cell proliferation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">We have generated several families
of anticancer drugs that act on the cell cycle including sapacitabine, seliciclib, and CYC065. We believe that these drug candidates
are differentiated in that they are orally-available and interact with unique target profiles and mechanisms and have the potential
to treat multiple cancer indications.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">Our lead candidate,
sapacitabine, is a novel, orally-available, nucleoside analog. A number of nucleoside drugs, such as
gemcitabine and cytarabine, also known as Ara-C, both generic drugs, are in wide use as conventional chemotherapies. Both
sapacitabine and its major metabolite, CNDAC, have demonstrated potent anti-tumor activity in both blood and solid tumors in
preclinical studies. In a liver metastatic mouse model, sapacitabine was shown to be superior to gemcitabine and
fluorouracil, or 5-FU, two widely used nucleoside analogs, in delaying the onset and growth of liver metastasis. We hold the
worldwide rights to commercialize sapacitabine, except for Japan, for which Daiichi Sankyo Co.,&nbsp;Ltd., or Daiichi Sankyo,
has a right of first negotiation.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

</DIV>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">The U.S. Food and Drug Administration,
or FDA, and the European Medicines Agency, or EMA, have designated sapacitabine as an orphan drug for the treatment of both Acute
Myeloid Leukemia, or AML, and Myelodysplastic Syndromes, or MDS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">We are currently evaluating sapacitabine
in a Phase 3 study being conducted under a Special Protocol Assessment, or SPA, with the FDA for the front-line treatment of AML
in the elderly. We are also exploring sapacitabine in Phase 2 studies for MDS, non-small cell lung cancer, or NSCLC, and chronic
lymphocytic leukemia, or CLL and in a Phase 1 study in solid tumors in combination with seliciclib, another of our drug candidates.
Sapacitabine has been evaluated in approximately 1,000 patients to date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">In our second development program
we are evaluating cyclin dependent kinase, or CDK, inhibitors. CDKs are involved in cancer cell growth, metastatic spread and
DNA damage repair. Seliciclib, our lead CDK inhibitor, selectively inhibits a spectrum of enzyme targets - CDK2/E, CDK2/A, CDK7
and CDK9 - that are central to the process of cell division and cell cycle control. In breast and lung tumors overexpression of
cyclin E is associated with poor prognosis and drug resistance. Resistant breast and lung tumor cell lines overexpressing cyclin
E are resensitized to apoptotic cell killing by seliciclib. NSCLC cell lines with Ras-activating mutations, such as KRAS and NRAS,
have been found to be sensitive to seliciclib-induced apoptosis. Seliciclib will also be evaluated in an investigator- initiated
clinical study to treat rheumatoid arthritis, or RA, supported by an approximately $1.5 million grant from the UK's Medical Research
Council. Enabled by the clinical development experience in solid tumors, investigators believe that seliciclib's mechanism of
action and oral administration route may be of benefit in treating patients with RA. To date, seliciclib has been evaluated in
approximately 450 patients in several Phase 1 and 2 studies and has shown signs of anti-cancer activity. We have retained worldwide
rights to commercialize seliciclib. Seliciclib has completed a Phase 2B randomized study in third-line NSCLC and is currently
undergoing a study in solid tumors in combination with our own drug candidate, sapacitabine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">Our second generation
CDK inhibitor, CYC065, is a highly selective inhibitor of CDKs targeting CDK2, CDK5 and CDK9 enzymes. CYC065 has
increased anti-proliferative potency and improved pharmaceutical properties compared to seliciclib. Independent investigators
have reported that CYC065 reverses resistance in breast cancer cells that have become resistant to trastuzumab and is
active against leukemia cells. Investigational new drug (IND)-enabling studies with CYC065 have been completed and were
supported by a $1.9 million grant from the Biomedical Catalyst of the United Kingdom government.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in">In addition to
these development programs, in our polo-like kinase (PLK) inhibitor program, we have discovered CYC140 and other potent and selective
small molecule inhibitors of PLK1, a kinase active during cell division, targeting the mitotic phase of the cell cycle. PLK was
discovered by Professor David Glover, our Chief Scientist. We have received a grant award of approximately $3.7 million from the
Biomedical Catalyst of the United Kingdom government to complete IND-directed preclinical development of CYC140.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in">We currently
retain virtually all marketing rights worldwide to the compounds associated with our drug programs. To optimize our commercial
return, we intend to enter into selected partnering arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Lead Development Programs</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Our pipeline and expertise in cell cycle biology</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">Our core area of expertise is in cell
cycle biology and we focus primarily on the development of orally-available anticancer agents that target the cell cycle with
the aim of slowing the progression or shrinking the size of tumors, and enhancing the quality of life and improving survival rates
of cancer patients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have retained rights to commercialize
our clinical development candidates and our business strategy is to enter into selective partnership arrangements with these programs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 6pt"><B><I>Oncology Development Programs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have generated several families of anticancer drugs that act on the cell cycle, including nucleoside
analogs, CDK inhibitors, PLK inhibitors and Aurora Kinase/vascular endothelial growth factor, or AK/VEGFR2, inhibitors. In our
development programs, we have been an early adopter of biomarker analysis to help evaluate whether our drug candidates are having
their intended effect through their assumed mechanisms at different doses and schedules. Biomarkers are proteins or other substances
whose presence in the blood can serve as an indicator or marker of diseases. Biomarker data from early clinical trials may also
enable us to design subsequent trials more efficiently and to monitor patient compliance with trial protocols. For example, we
reported that sapacitabine efficacy is enhanced in tumor cells that are defective in homologous recombination DNA repair. In another
example, we reported that sensitivity to our PLK1 inhibitor CYC140 correlated with protein 53, or p53 status, in a panel of esophageal
cancer cell lines, which could be used as a predictive biomarker in clinical trials to identify responders. We believe that in
the longer term biomarkers may allow the selection of patients more likely to respond to our drugs in clinical trials and increase
the benefit to patients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Although a number of pharmaceutical and biotechnology companies
are currently attempting to develop nucleoside analogs, CDK inhibitors, PLK inhibitors and AK and/or VEGFR inhibitor drugs, we
believe that our drug candidates, are differentiated in that they are orally-available and demonstrate unique target profiles
and mechanisms. For example, we believe that our sapacitabine is the only orally-available nucleoside analog presently being tested
in Phase 3 trials in previously untreated AML and in Phase 2 for high risk MDS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Sapacitabine</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Sapacitabine (previously known as CYC682)
is an orally-available nucleoside analog. Both sapacitabine and CNDAC, its major metabolite, have demonstrated potent anti-tumor
activity in preclinical studies. Sapacitabine is an orally-available prodrug of CNDAC, which is a novel nucleoside analog, or
a compound with a structure similar to a nucleoside. A prodrug is a compound that has a therapeutic effect after it is metabolized
within the body. CNDAC has a significantly longer residence time in the blood when it is produced in the body through metabolism
of sapacitabine than when it is given directly. Sapacitabine acts through a novel mechanism whereby the compound interferes with
DNA synthesis through the incorporation of CNDAC into DNA during replication or repair, triggering a beta-elimination reaction and
leading to the formation of SSBs, which can activate the G2 checkpoint transcription coupled nucleotide excision repair, or TC-NER.
During subsequent rounds of replication, SSBs are converted to double-strand breaks (DSBs); these can be repaired by the homologous
recombination repair (HRR) pathway, or, if unrepaired, result in cell death.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are currently exploring
sapacitabine in both hematological cancers and solid tumors. Approximately 1,000 patients have received sapacitabine in Phase
1, 2 and 3 studies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

</DIV>


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<DIV STYLE="padding: 6pt; border: Black 1pt solid; width: 97%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Hematological Cancers</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><I>SEAMLESS, randomized Phase 3, pivotal
trial of sapacitabine in elderly patients with AML</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The SEAMLESS study is being conducted under
an SPA agreement that Cyclacel reached with the FDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">The study is chaired by Hagop
M. Kantarjian, M.D., Chairman and Professor, Department of Leukemia, The University of Texas MD Anderson Cancer Center.
SEAMLESS is a multicenter, randomized, Phase 3 study of sapacitabine as a front-line treatment in approximately 485 elderly
patients aged 70 years or older with newly diagnosed AML who are not candidates for or have refused intensive induction
chemotherapy. In SEAMLESS an investigational arm of oral sapacitabine administered in alternating cycles with intravenous
decitabine is compared with a control arm of intravenous decitabine administered alone. The primary efficacy endpoint is
overall survival.  SEAMLESS completed enrollment in December 2014 with approximately 110 centers participating from the
United States and Europe. Also in December 2014, the DSMB conducted a planned interim analysis for
futility after 247 events, or patient deaths, and the final safety review of 470 randomized patients. The DSMB found no
safety concerns. However, the planned futility boundary has been crossed and the DSMB determined that, based on available
interim data, it would be unlikely for the study to reach statistically significant improvement in survival. The DSMB saw no
reasons why patients should discontinue treatment on their assigned arm and recommended that recruited patients stay on
treatment.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">The interim analysis for futility
is primarily driven by the events within the first 6 months of patients entering into the trial. Of 247 events in SEAMLESS, 173
(70%) have occurred in the first 6 months. This means that the survival curves beyond 6 months are poorly estimated at this time.
Furthermore, follow up of European patients is significantly shorter than that of U.S. patients as the study
opened for European accrual in April 2014. It is important to have complete follow up of all patients to ensure that a potential
treatment effect beyond 6 months is not missed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">We remain blinded and, in accordance
with the DSMB&rsquo;s recommendations, will follow-up patients as per the study protocol until the prespecified 424 events have
been observed. This is estimated to occur between the second half of 2015 and the first half of 2016. Depending on the final data,
we may meet with regulatory authorities in Europe and the U.S. to discuss registration submissions for sapacitabine for the AML
indication.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><I>Pilot/Lead-in study of sapacitabine in elderly patients
with AML</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-indent: 0.5in">Results from a
single-arm, multicenter, Phase 1/2 clinical trial examining the safety and efficacy of oral sapacitabine administered
sequentially with intravenous decitabine, the same regimen as in the investigational arm of SEAMLESS, were reported during a
poster session at the 2012 American Society of Hematology, or ASH, Annual Meeting. Forty-six patients
were treated with alternating cycles of sapacitabine and decitabine. Median age was 77 years (range 70-90). Thirty-three
patients (72%) were 75 years or older. Median overall survival was 238 days, or approximately 8 months. The number of
patients still alive at 3 months was 38 (83%), at 6 months 30 (65%), at 12 months 16 (35%) and at 18 months 12 (26%). Sixteen
patients (35%) survived 1 year or longer. Among 33 patients who were 75 years or older, median overall survival was 263 days,
or approximately 9 months, and one-year survival was 36%. Nineteen patients (41%) responded with 10 complete responses (CRs), 4
partial responses (PRs) and 5 major hematological improvements (HIs). Median time to response was 2 cycles, i.e., one cycle
of decitabine and one cycle of sapacitabine (range 1-10). Twenty-seven patients (59%) received 5 or more cycles of treatment.
Two dose-limiting toxicities (DLT) were observed (lung infection/sepsis, typhlitis). Thirty-day mortality from all causes was
4%. Sixty-day mortality from all causes was 13% with one death from typhlitis considered to be possibly related to decitabine
by investigator assessment.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Phase 2 randomized study of sapacitabine
in patients with previously untreated or first relapse AML</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">SEAMLESS builds on promising one year survival
observed in elderly patients with AML enrolled in a Phase 2 study of single agent sapacitabine.&nbsp; In December 2007, we initiated
a multicenter, randomized Phase 2 clinical trial of oral sapacitabine in 60 elderly patients with AML aged 70 years or older who
were previously untreated or in first relapse. The Phase 2 study, led by Dr. Kantarjian, had a primary endpoint of one year survival
and randomized patients to one of three dosing schedules of sapacitabine. Secondary objectives were to assess complete remission,
or CR, partial remission, or PR, duration of CR or CRp, or major hematological improvement and their corresponding durations,
transfusion requirements, number of hospitalized days and safety. The study used a selection design with the objective of identifying
a dosing schedule among three different arms, A. 200 mg twice daily for seven days every 3-4 weeks, B. 300 mg twice daily for
seven days every 3-4 weeks, and C. 400 mg twice daily for three days per week for two weeks every 3-4 weeks, which would produce
a better one year survival rate in the event that all three dosing schedules were active.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In November 2012, the results from the Phase
2 study were published in The Lancet Oncology, demonstrating the safety and efficacy of sapacitabine in this patient population.
Between December 27, 2007 and April 21, 2009, a total of 105 patients were enrolled and treated in the Phase 2 study.
Their median age was 77 years (range 70&mdash;91). The group was comprised of a randomized cohort of 60 patients and an expanded,
non-randomly assigned cohort enrolling a further 45 patients. Of the 105 patients, 86 were previously untreated and 19 in first
relapse. Approximately 50% of patients had AML de novo and 50% had AML preceded by antecedent hematological disorder (AHD), such
as MDS or myeloproliferative disease, or treatment-related AML. All but one enrolled patients had intermediate or unfavorable
cytogenetics. The randomized cohort of patients were assigned to one of three dosing schedules: 200 mg twice a day for 7 days
(Arm A); 300 mg twice a day for 7 days (Arm B); and 400 mg twice a day for 3 days each week for 2 weeks (Arm
 C). All schedules were given in 28 day cycles. The 3-day dosing schedule in Arm C was selected for further clinical
development in elderly patients with untreated AML. This decision was based on the schedule&rsquo;s overall efficacy profile,
which included a one-year survival rate of 30%, median overall survival of 213 days and durable complete remissions (CRs)
in 25% of patients. The median overall survival of patients from all arms who achieved CR was 525 days (95% C.I. 192&mdash;798).
The most common grade 3&mdash;4 adverse events regardless of causality were anemia, neutropenia, thrombocytopenia, febrile neutropenia
and pneumonia. Seven deaths were thought to be probably or possibly related to sapacitabine treatment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>&nbsp;</I></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

</DIV>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<DIV STYLE="padding: 6pt; border: Black 1pt solid; width: 97%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: left; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Randomized Phase 2 clinical trial in older
patients with MDS as a second-line treatment</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In September 2008, we advanced sapacitabine
into an open-label, multi-center, randomized Phase 2 trial as a second-line treatment in patients aged 60 or older with intermediate-2
or high-risk MDS after treatment failure of front-line hypomethylating agents, such as azacitidine and/or decitabine. The Phase
2 study randomized 63 patients aged 60 years or older with MDS of intermediate-2 (n=52) or high-risk (n=11) classification by
the International Prognostic Scoring System, or IPSS, at study entry to receive sapacitabine every 4 weeks on one of 3 dosing
schedules: 200 mg twice daily for 7 days (Arm G), 300 mg once daily for 7 days (Arm H), or 100 mg once daily for 5 days per week
for 2 weeks (Arm I). The primary efficacy endpoint of the study is one-year survival with the objective of identifying
a dosing schedule that produces a better one-year survival rate in the event that all three dosing schedules are active.
All patients in the study progressed after receiving azacitidine, decitabine, or both agents. Secondary objectives are to assess
the number of patients who have achieved CR or CRp, PR, hematological improvement and their corresponding durations, transfusion
requirements, number of hospitalization days and safety.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In December 2013 at the 2013 American Society
of Hematology, or ASH, Meeting and Exposition, we announced primary endpoint data from the ongoing, open-label, multicenter,
randomized Phase 2 trial of oral sapacitabine capsules in older patients with myelodysplastic syndromes after treatment failure
of front-line hypomethylating agents, such as azacitidine and/or decitabine. The median overall survival for each arm was approximately
9.7 months for Arm G, 9.7 months for Arm H, and 7.6 months for Arm I. The median overall survival for all three arms was approximately
8.6 months. One-year survival was 38% for Arm G, 24% for Arm H, and 33% for Arm I. Nine patients had responded (2 CRs, 2 CRp,
and 5 major HIs): 19% for Arm G, 10% for Arm H and 14% for Arm I and the time to response was one to four cycles. Median number
of cycles was three with a range of one to over 23 and 30 patients received four or more cycles. Additionally, 23 patients achieved
stable disease lasting longer than 16 weeks. The 30 day mortality from all causes was 5% in each of the three arms and ten patients
(approximately 16%) were still alive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Median survival after treatment failure
of front-line hypomethylating agents, such as azacitidine and/or decitabine, for patients with intermediate-2 or high-risk disease
per IPSS, is reported in the literature to range between 5.6 and 4.3 months. Patients with high-risk IPSS scores also have a high
probability of experiencing transformation of their MDS into AML, an aggressive form of blood cancer with typically poor survival.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;<I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Solid Tumors</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Phase 2 clinical trial in patients with
NSCLC</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are also evaluating sapacitabine
in a Phase 2, single arm, multicenter, clinical trial in patients with NSCLC who have had at least one prior chemotherapy.
This study builds on the observation of prolonged stable disease of four months or longer experienced by heavily pretreated NSCLC
patients enrolled in two Phase 1 studies of sapacitabine. The multicenter Phase 2 trial is led by Philip D. Bonomi, M.D.,
at Rush University Medical Center, Chicago. The primary objective of the study is to evaluate the rate of response and stable
disease in patients with previously treated NSCLC. Secondary objectives are to assess progression-free survival, duration of response,
duration of stable disease, one year survival, overall survival and safety.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Forty-eight patients have been treated with
two dosing schedules, either twice daily or once a day. In the twice daily schedule 15 patients were treated with escalating doses.
The recommended Phase 2 dose was reached at 75 mg twice daily for 5 days per week for 2 weeks every 3 weeks. Among 12 patients
treated at this recommended Phase 2 dose, 4 achieved stable disease. All 4 responders had at least 2 prior therapies and have
been discontinued from the study. Responders received an average of 7 treatment cycles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In the once daily schedule 33 patients were
treated with escalating doses. Maximum tolerated dose has not been reached at the upper limit of the dosing range as per protocol.
Patients are currently being entered into the 200 mg once daily dosing level for 5 days per week for 2 weeks every 3 weeks. Among
25 patients treated with daily doses ranging from 100 mg to 175 mg, two patients achieved PR and 10 stable disease. The two PR
responders had 3 or 4 prior therapies, respectively, and one remains on study. Among the 10 stable disease responders, 9 had at
least 2 prior therapies and 2 remain on study. Responders received an average of 10 treatment cycles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Phase 1 clinical trial of sapacitabine and
seliciclib in patients with advanced cancers</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In an ongoing Phase 1, single-arm,
dose escalation study, sapacitabine and seliciclib are administered sequentially in patients with incurable advanced
solid tumors unresponsive to conventional treatment or for which no effective therapy exists. Sapacitabine is dosed twice
daily for 7 days (Day 1-7) and seliciclib twice daily for 3 days (Day 8-11) for three week cycles. At least 3 patients
were enrolled at each escalating dose level. The first tumor imaging study is conducted after 2 cycles of treatment and every
3 cycles thereafter. The primary objective of the study is to determine the maximum tolerated dose, or MTD, and recommended Phase
2 dosing schedule of sapacitabine and seliciclib administered sequentially. The secondary objective is to evaluate the
antitumor activity of sequential treatment and to explore the pharmacodynamic effect of this treatment in skin and peripheral
blood mononuclear cells. At the 2013 American Society of Clinical Oncology Annual Meeting we reported that of
38 patients with incurable solid tumors and adequate organ function enrolled in the Phase 1 study, 16 were found to
be BRCA mutation carriers. Sapacitabine was administered twice daily for seven days followed by seliciclib twice daily for three
days. Four patients with BRCA-deficient pancreatic, breast or ovarian cancers had confirmed partial responses to the drug regimen.
Based on available follow-up to date, three patients are experiencing durable partial responses, with the longest lasting more
than 78 weeks. Researchers observed stable disease of 12 weeks or more in eight additional patients, including two patients with
ovarian and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

</DIV>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">breast cancers who carried BRCA mutations and whose stable disease
lasted 64 and 21 weeks, respectively. The maximum tolerated doses were 50 mg sapacitabine twice daily and 1,200 mg seliciclib
twice daily. Dose-limiting toxicities included reversible transaminase elevations and neutropenia. Adverse events were mild to
moderate in intensity. Results of skin biopsies after treatment showed a 2.3-fold increase in DNA damage induced by sapacitabine,
as measured by gamma-H2AX immunohistochemistry. Additional DNA damage occurred after treatment with seliciclib with a 0.58-fold
further increase in gamma-H2AX staining.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">BRCA1 and BRCA2, or breast cancer susceptibility
genes, are tumor suppressor genes that help ensure the stability of DNA, the cell&rsquo;s genetic material, and help prevent uncontrolled
cell growth. Genetic testing for BRCA-status is routinely available. BRCA mutation has been linked to predisposition to breast
and ovarian cancer. According to the US National Cancer Institute, during her life time a woman has a 60% chance of developing
breast cancer and 15-40% chance of developing ovarian cancer if she inherits a harmful BRCA mutation. These risks are 5 times
and over 10 times more likely than for women without the mutation, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Orphan Designation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>European Union</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">During May 2008, we received designation from
the EMA for sapacitabine as an orphan medicine in two separate indications: AML and MDS. The EMA&rsquo;s Committee for Orphan
Medicinal Products, or COMP, adopted a positive opinion on our application to designate sapacitabine as an orphan medicinal product
for the indications of AML and MDS. The objective of European orphan medicines legislation is to stimulate research and development
of medicinal products for rare diseases by providing incentives to industry. An orphan designation in the European Union confers
a range of benefits to sponsor companies including market exclusivity for a period of 10 years, EMA scientific advice on protocol
development, direct access to the centralized procedure for review of marketing authorizations, EMA fee reductions and eligibility
for grant support from European agencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>United States</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In June 2010, we announced that the FDA granted
orphan drug designation to our sapacitabine product candidate for the treatment of both AML and MDS. An orphan designation in
the United States confers a range of benefits to sponsor companies, including market exclusivity for a period of seven years from
the date of drug approval, the opportunity to apply for grant funding from the United States government to defray costs of clinical
trial expenses, tax credits for clinical research expenses and a potential waiver of the FDA&rsquo;s application user fee. Orphan
status is granted by the FDA to promote the development of new drug therapies for the treatment of diseases that affect fewer
than 200,000 individuals in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Seliciclib</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Although our current clinical
development priorities are focused on sapacitabine only, our second drug candidate, seliciclib, is a novel, orally-available,
CDK inhibitor. The compound selectively inhibits a spectrum of enzyme targets,  CDK2, -7 and -9 that are central to the
process of cell division and cell cycle control. The target profile of seliciclib is differentiated from the published target
profile of other CDK inhibitors. Its selectivity is differentiated by recent publications by independent investigators which
showed that seliciclib (i) is more active against NSCLC cells with K-Ras or N-Ras mutations than those with wild type Ras and
(ii) overcomes resistance to letrozole in breast cancer cells caused by a particular form of cyclin E in complex with CDK2.
Preclinical studies have shown that the drug works by inducing cell apoptosis, or cell suicide, in multiple phases of the
cell cycle. To date, seliciclib has been evaluated in approximately 450 patients in several Phase 1 and 2 studies and has
shown signs of anti-cancer activity. Seliciclib will also be evaluated in an investigator-initiated clinical study to treat
rheumatoid arthritis, or RA, supported by an approximately $1.5 million grant from the UK&rsquo;s Medical Research Council.
Seliciclib may work for RA by targeting proliferating fibroblasts, a different type of approach than conventional RA
therapies. We have retained worldwide rights to commercialize
seliciclib.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

</DIV>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<DIV STYLE="padding: 6pt; border: Black 1pt solid; width: 97%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Phase 2 clinical trial in patients with NSCLC</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Four Phase 2 trials have been conducted in
cancer patients to evaluate the tolerability and antitumor activities of seliciclib alone or in combination with standard chemotherapies
used in the treatment of advanced NSCLC and also breast cancer. Interim data from two Phase 2 open-label studies of a total
of 52 patients with NSCLC, suggests that seliciclib treatment neither aggravated the known toxicities of standard first and second-line
chemotherapies nor appeared to cause unexpected toxicities, although these trials were not designed to provide statistically significant
comparison.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In December 2010, we announced topline
results from APPRAISE, our Phase 2b, randomized discontinuation, double-blinded, placebo-controlled, study of oral seliciclib
capsules as a third line or later treatment in patients with NSCLC. APPRAISE was led by Chandra P. Belani, M.D. at Milton S. Hershey
Medical Center, Penn State University. Topline results, after unblinding the treatment assignment among randomized patients, showed
that there was no difference between the seliciclib and placebo arms in terms of progression free survival, or PFS (48 versus
53 days respectively). However, an increase in median overall survival, or OS, was observed favoring the seliciclib arm
over the placebo arm (388 versus 218 days respectively). A total of 187 patients from 21 centers in the United States were entered
in the study after having progressed on at least two prior therapeutic regimens for their NSCLC. Of these, 53 (28%) were randomized,
27 on seliciclib and 26 on placebo. Forty-five out of 53 randomized patients (85%) received 3 or more prior therapies and 45 out
of 53 randomized patients (85%) previously received at least one EGFR inhibitor drug (22 on seliciclib and 23 on placebo). Fourteen
patients were crossed-over to the seliciclib arm after their cancer progressed while they were receiving placebo. Study data demonstrated
seliciclib to be safe at the administered dose. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Published preclinical work indicated that K-Ras
mutational status, cyclin D1 and cyclin E1 protein levels correlated strongly with tumor sensitivity to seliciclib. In
order to explore this possible molecular rationale for the difference in OS, we retrospectively collected and analyzed available
biopsy samples from APPRAISE patients who granted informed consent. As only 30 patient samples were available from 152 consenting
APPRAISE patients, results of the retrospective analysis were insufficient to allow meaningful correlation.
A new prospectively designed study is required to test the hypothesis that these biomarkers can predict therapeutic effect of
seliciclib in patients with advanced stage NSCLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Phase 2 clinical trials in patients with NPC</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In November 2007, we commenced a Phase 2 multicenter,
international, study of oral seliciclib as a single agent in patients with nasopharyngeal cancer, or NPC. The
primary objective is to evaluate 6-month progression free survival, or PFS, of two dosing schedules of seliciclib in approximately
75 patients with previously treated NPC. Secondary objectives are OS, response rate, response duration, safety and tolerability.
The first part of the study is designed to confirm safety and tolerability of 400 mg twice a day for four days per week or 800
mg once a day for four days per week of seliciclib. It is open to approximately 12 to 24 patients with advanced solid tumors as
well as patients with NPC. The second part of the study, which is dependent on clinical data from the lead-in phase and available
resources to fund the study, is designed to detect major differences between the two dosing schedules of seliciclib and a placebo
group in terms of 6-month PFS in approximately 51 patients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In May 2009, at the ASCO annual meeting, we
reported interim data from the lead-in portion of the Phase 2 study which demonstrated that oral seliciclib could be safely administered
in two dosing schedules which were well tolerated and met the criteria for proceeding to the randomized stage of the study. Seliciclib
treatment resulted in prolonged stable disease in 70% of previously-treated NPC patients, including 3 with stable disease lasting
longer than 8 months, suggesting seliciclib inhibits tumor growth in NPC. The data support further clinical development of oral
seliciclib in NPC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>CYC065</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">CYC065 is a highly-selective, orally-available,
2nd generation inhibitor of CDK2, -5 and -9. These CDK enzymes play pivotal roles in cancer cell growth, metastatic spread and
DNA damage repair. Pharmacological inhibition of CDK2 and CDK9 has been shown to have potent anticancer effects in certain tumor
types resistant to established treatments. CYC065 causes apoptotic cell death of cancer cells at sub-micromolar concentrations.
Antitumor efficacy has been achieved in vivo with once a day oral dosing at well tolerated doses. Translational biology supports
the development of CYC065 as a stratified medicine for solid tumors as well as orphan diseases including adult and pediatric leukemias.
Published preclinical studies show that CYC065 has the potential for development in acute myeloid leukemia, chronic lymphocytic
leukemia and drug-resistant breast cancer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

</DIV>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">CYC065 is mechanistically similar to
Cyclacel's first generation CDK inhibitor, seliciclib, but with significantly improved potency <I>in vitro</I> and <I>in
vivo</I>. CYC065 causes proportionally greater CDK9 inhibition, leading to improved efficacy in hematological malignancies
and more prolonged down regulation of MCL-1, a biomarker of cell survival. CYC065 has improved metabolic stability and
improved efficacy and dose potency compared with seliciclib. CYC065's physicochemical properties enable dosing by oral or intravenous
routes. In September 2014, at the 2014 Society of Hematologic Oncology (SOHO) meeting, we presented preclinical data
demonstrating the therapeutic potential of CYC065 to treat acute leukemias and, in particular, those with rearrangements in
the mixed lineage leukemia (MLL) gene. The data showed that in vitro all human AML and acute lymphocytic leukemia (ALL) cell
lines with MLL rearrangements (MLLr) tested were sensitive to CYC065 and that the drug inhibited MLL-driven gene expression.
Potent anticancer activity of CYC065 was demonstrated in vivo in AML xenograft models resulting in over 90% inhibition of
tumor growth. We received a grant award of approximately $1.9 million from the Biomedical Catalyst of the United Kingdom
government to support the investigational new drug (IND)-directed preclinical development of CYC065 which was completed in
2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>PLK inhibitors</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In our PLK inhibitor program we have
discovered potent and selective small molecule inhibitors of PLK1, a kinase active during cell division, targeting the
mitotic phase of the cell cycle. At the 2012 Annual Meeting of the American Association of Cancer Research, or AACR,
we reported that one of these compounds, CYC140, was selected for further preclinical development. In a panel of esophageal
cancer cell lines, sensitivity to CYC140 correlated with p53 status. Esophageal cell lines lacking functional p53 showed
the greatest sensitivity to CYC140. Short drug exposure times demonstrated differential sensitivity between cancerous
esophageal cells versus control, outlining the potential broad therapeutic index for CYC140 in treating esophageal cancers,
and in particular those with non-functional p53. Status of p53 could be used as a predictive biomarker in clinical trials
to identify responders. PLK was discovered by Professor David Glover, our Chief Scientist. We have received a grant award of
approximately $3.7 million from the Biomedical Catalyst of the United Kingdom government to complete IND-directed preclinical
development of CYC140.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Aurora kinase inhibitors</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Aurora kinases, or AK, are a family of serine/threonine
protein kinases discovered by Professor David Glover, our Chief Scientist, which are only expressed in actively dividing cells
and are crucial for the process of cell division, or mitosis. These proteins, which have been found to be over-expressed in many
types of cancer, have generated significant scientific and commercial interest as cancer drug targets. VEGFR2 is a receptor protein
that plays a key regulatory role in the angiogenesis pathway, or blood vessel formation. VEGFR is targeted by recently approved
drugs such as bevacizumab and sorafenib indicated for the treatment of several solid cancers, such as breast, colorectal, kidney,
liver and lung.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">At the Annual Meeting of the AACR 2012 we
reported that collaborators tested the activity of CYC3, our novel Aurora Kinase A specific inhibitor, in pancreatic
cancer cell lines. The collaborators reported that CYC3 suppresses pancreatic cancer cell growth, inducing mitotic arrest
and apoptosis. CYC3 was also shown to act synergistically against pancreatic cancer cell lines in combination with paclitaxel
at a 10-fold lower dose resulting in comparable anti-proliferative activity to standard paclitaxel dosing. As
myelosuppression is associated with paclitaxel administration, the CYC3/low-dose paclitaxel combination was compared with
high-dose paclitaxel in an <I>in vitro</I> granulocyte and macrophage assay in which the CYC3/low-dose paclitaxel combination
displayed less myelotoxicity. The collaborators reported that the combination merits further investigation and has the
potential for improved therapeutic index <I>in vivo</I>. In June 2007, we initiated and completed a multicenter Phase 1
pharmacologic clinical trial of CYC116, an orally-available inhibitor of Aurora kinase A and B and VEGFR2, in patients with
advanced solid tumors. We have retained worldwide rights to commercialize CYC116 and our other Aurora kinase inhibitors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Non-oncology Programs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Cell Cycle Inhibitors in Autoimmune &amp; Inflammatory Diseases</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Preclinical results from several independent
investigators suggest that cell cycle inhibitors such as seliciclib and its backup molecules arrest the progress of the cell cycle
and may have therapeutic benefit in the treatment of patients with autoimmune and inflammatory diseases as well as in diseases
characterized by uncontrolled cell proliferation. Published data indicate potential benefit in glomerulonephritis, graft-versus-host
disease, idiopathic pulmonary fibrosis, lupus nephritis, polycystic kidney disease and RA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

</DIV>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Corporate Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our corporate headquarters are located at 200
Connell Drive, Suite 1500, Berkeley Heights, New Jersey, 07922, and our telephone number is (908) 517-7330. This is also where
our marketing, medical and regulatory functions are located. Our research facility is located in Dundee, Scotland, which is also
the center of our translational work and development programs. Our Internet address is www.cyclacel.com. The information on our
website is not a part of, and should not be construed as being incorporated by reference into, this prospectus supplement or the
accompanying prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

</DIV>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_003"></A><B>THE OFFERING</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 30%; font-size: 10pt"><FONT STYLE="font-size: 10pt"><B>Securities offered by us</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 3%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 67%; font-size: 10pt"><FONT STYLE="font-size: 10pt">10,000,000 shares
    of our common stock.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><B>Common stock outstanding immediately after
    this offering(1)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt">34,388,485 shares
    of common stock.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><B>Use of proceeds</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt">We intend to use the net proceeds from the
    sale of our common stock offered hereby for continued clinical development of sapacitabine in MDS and other indications
    and Phase 1 clinical trials of our CDK inhibitor CYC065, and general corporate purposes. See &ldquo;Use of Proceeds&rdquo; on Page
    S-16.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><B>Risk factors</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt">You should read the description of risks set
    in the &ldquo;Risk Factors&rdquo; sections on Page S-12 of this prospectus supplement and page 13 of the accompanying
    prospectus or otherwise incorporated by reference in this prospectus supplement and the accompany prospectus for a discussion
    of material risks that prospective purchasers of shares of our common stock should consider before investing in our securities.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt"><B>NASDAQ Symbol</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt">CYCC.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(1) The number of shares of our common stock that will be
issued and outstanding immediately after this offering as shown above is based on&nbsp;24,388,485 shares of common stock
issued and outstanding as of March 2, 2015, and excludes the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">1,010,298
                                         shares of common stock issuable upon the exercise of outstanding options at a weighted-average
                                         exercise price of $14.24 per share;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 58.5pt; text-indent: -22.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">221,657
                                         shares of common stock available for issuance under our 2006 Equity Incentive Plan;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 58.5pt; text-indent: -22.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">1,341,129
                                         shares of common stock issuable upon the exercise of outstanding warrants at a weighted-average
                                         exercise price of $13.05 per share; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 58.5pt; text-indent: -22.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">20,381
                                         shares of common stock, subject to adjustment, that are issuable upon the conversion
                                         of 335,273 shares of convertible preferred stock that are issued and outstanding.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 58.5pt; text-indent: -22.5pt">&nbsp;</P></DIV>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_004"></A><B>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Investing in our securities involves a high
degree of risk. Before purchasing our securities, you should carefully consider the following risk factors and those set forth
in the accompanying prospectus, together with those risk factors set forth in our most recent Annual Report on Form 10-K for the
year ended December 31, 2013, which is incorporated by reference into this prospectus supplement. You should also carefully consider
all of the other information in this prospectus supplement, the accompanying prospectus, or incorporated by reference into this
prospectus supplement and the accompanying prospectus. Any of these risks could have a material adverse impact on our business,
prospects, results of operations and financial condition and could therefore have a negative effect on the trading price of our
common stock and you might lose all or part of your investment in our securities. Additionally, risks not currently known to us
or that we now deem immaterial may also harm us and negatively affect your investment. The following risks are presented as of
the date of this prospectus supplement and we expect that these will be updated from time to time in our periodic and current
reports filed with the SEC, which will be incorporated herein by reference. Please refer to these subsequent reports for additional
information relating to the risks associated with investing in our common stock. See &ldquo;Where You Can Find More Information&rdquo;
and &ldquo;Incorporation of Documents by Reference.&rdquo; <I>If any of the risks described below or in our Annual
Report actually occur, our business, financial condition and results of operations could suffer. As a result, the trading price
of our stock could decline, perhaps significantly, and you could lose all or part of your investment. The risks discussed below
and in our Annual Report also include forward-looking statements and our actual results may differ substantially from those discussed
in these forward-looking statements. See the section entitled &ldquo;Forward-Looking Information.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><B>Risks Related to Securities
Regulations and Investment in Our Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Our common stock may have a volatile public trading price.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">An active public market for our common stock
has not developed. Our stock can trade in small volumes which may make the price of our stock highly volatile. The last reported
price of our stock may not represent the price at which you would be able to buy or sell the stock. The market prices for securities
of companies comparable to us have been highly volatile. Often, these stocks have experienced significant price and volume fluctuations
for reasons that are both related and unrelated to the operating performance of the individual companies. In addition, the stock
market as a whole and biotechnology and other life science stocks in particular have experienced significant recent volatility.
Like our common stock, these stocks have experienced significant price and volume fluctuations for reasons unrelated to the operating
performance of the individual companies. Factors giving rise to this volatility may include</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%; font-size: 10pt"><FONT STYLE="font-size: 10pt">disclosure of actual or potential clinical results with
    respect to product candidates we are developing;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%; font-size: 10pt"><FONT STYLE="font-size: 10pt">regulatory developments in both the United States and
    abroad;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%; font-size: 10pt"><FONT STYLE="font-size: 10pt">developments concerning proprietary rights, including
    patents and litigation matters;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%; font-size: 10pt"><FONT STYLE="font-size: 10pt">public concern about the safety or efficacy of our product
    candidates or technology, or related technology, or new technologies generally;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 94%; font-size: 10pt"><FONT STYLE="font-size: 10pt">concern about the safety or efficacy of our product
    candidates or technology, or related technology, or new technologies generally;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">public announcements by our competitors or others; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt"></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">general market conditions and comment s by securities analysts and
    investors.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Additionally, on December 16, 2014 we announced
the enrollment of 486 patients, continuation to final analysis and recommendations of the DSMB of the Company&rsquo;s Phase 3
SEAMLESS study of sapacitabine oral capsules in acute myeloid leukemia, or AML. The DSMB determined that the planned futility
boundary has been crossed, but saw no reason for patients to discontinue from the study. As a result of this announcement, the
last reported sale price of our common stock on The NASDAQ Global Market on December 16, 2014 dropped to $0.68 from a last reported
sale price of our common stock on December 15, 2014 of $2.83.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Our common and preferred stock may experience extreme price
and volume fluctuations, which could lead to costly litigation for us and make an investment in us less appealing.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The market price of our common and preferred
stock may fluctuate substantially due to a variety of factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.38in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>additions to
                                         or departures of our key personnel;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.38in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>announcements
                                         of technological innovations or new products or services by us or our competitors; announcements
                                         concerning our competitors or the biotechnology industry in general;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.38in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>new regulatory
                                         pronouncements and changes in regulatory guidelines;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.38in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>general and
                                         industry-specific economic conditions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.38in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes in financial
                                         estimates or recommendations by securities analysts;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.38in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>variations in
                                         our quarterly results; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.38in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>announcements
                                         about our collaborators or licensors; and changes in accounting principles.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The market prices of the securities of biotechnology
companies, particularly companies like us without product revenues and earnings, have been highly volatile and are likely to remain
highly volatile in the future. This volatility has often been unrelated to the performance of particular companies. In the past,
companies that experience volatility in the market price of their securities have often faced securities class action litigation.
Moreover, market prices for stocks of biotechnology-related and technology companies frequently reach levels that bear no relationship
to the performance of these companies. These market prices generally are not sustainable and are highly volatile. Whether or not
meritorious, litigation brought against us could result in substantial costs, divert our management&rsquo;s attention and resources
and harm our financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.1pt">In particular, on December 16, 2014 we
announced the enrollment of 486 patients, continuation to final analysis and recommendations of the DSMB of the Company&rsquo;s
Phase 3 SEAMLESS study of sapacitabine oral capsules in acute myeloid leukemia, or AML. The DSMB determined that the planned futility
boundary has been crossed, but saw no reason for patients to discontinue from the study. As a result of this announcement, the
last reported sale price of our common stock on The NASDAQ Global Market on December 16, 2014 dropped to $0.68 from a last reported
sale price of our common stock on December 15, 2014 of $2.83.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Our common shares could be delisted
from the NASDAQ Global Market, which could negatively impact the price of our common shares and our ability to access the capital
markets.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.1pt">Our common shares are currently listed on
the NASDAQ Global Market. Our ability to retain our listing is contingent upon compliance with NASDAQ listing requirements. The
listing standards of NASDAQ provide, among other things, that a company may be delisted if the bid price of its stock decreases
below $1.00 for a period of 30 consecutive business days and the company is unable to meet the minimum bid requirement within
the period provided by the NASDAQ Global Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.1pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.1pt">As previously announced by us, on February
2, 2015, we received a written notification from The NASDAQ Stock Market LLC indicating that we were not in compliance with NASDAQ
Listing Rule 5450(a)(1) because the minimum bid price of our shares of common stock was below $1.00 per share for the previous
30 consecutive business days. Pursuant to the NASDAQ Listing Rule 5810(c)(3)(A), we have been granted a 180-calendar day compliance
period, or until August 3, 2015, to regain compliance with the minimum bid price requirement. During the compliance period, our
shares of common stock will continue to be listed and traded on The NASDAQ Global Market. To regain compliance, the closing bid
price of our shares of common stock must meet or exceed $1.00 per share for at least ten consecutive business days during this
180-day grace period. If we are not in compliance by August 3, 2015, we may be afforded a second 180-calendar day grace period
if we transfer the listing of our shares of common stock to The NASDAQ Capital Market. To qualify, we would be required to meet
the continued listing requirement for market value of publicly held shares and all other initial listing standards for The NASDAQ
Capital Market, except for the minimum bid price. In addition, we would be required to notify NASDAQ of our intent to cure the
minimum bid price deficiency by effecting a reverse stock split, if necessary. Any such alternative would likely result in it
being more difficult for us to raise additional capital through the public or private sale of equity securities and for investors
to dispose of our common stock. In addition, there can be no assurance that our common stock would be eligible for trading on
any such alternative exchange or markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.1pt">If we do not regain compliance within the
allotted compliance period(s), including any extensions that may be granted by NASDAQ, NASDAQ will provide notice that our shares
of common stock will be subject to delisting. We would then be entitled to appeal NASDAQ&rsquo;s determination to a NASDAQ Hearings
Panel and request a hearing. We intend to consider available options to resolve the noncompliance with the minimum bid price requirement.
No determination regarding our response has been made at this time. There can be no assurance that we will be able to regain compliance
with the minimum bid price requirement or will otherwise be in compliance with other NASDAQ listing criteria. There can also be
no assurance that any application to NASDAQ will be approved or that any appeal would be granted by the NASDAQ Hearings Panel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23.1pt">Further declines in the trading price of our
common shares may cause us to fail to meet certain of the continuing listing standards of NASDAQ, which could result in the delisting
of our common shares. If our shares cease to be traded on the NASDAQ or on another national securities exchange, the price at
which you may be able to sell your common shares of the company may be significantly less than their current trading price or
you may not be able to sell them at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Risks Related to This Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Management will have broad discretion as to the use of the
proceeds from this offering, and we may not use the proceeds effectively.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our management will have broad discretion in
the application of the net proceeds from this offering and could spend the proceeds in ways that do not improve our results of
operations or enhance the value of our common stock. You will be relying on the judgment of our management with regard to the
use of these net proceeds, and you will not have the opportunity, as part of your investment decision, to assess whether the net
proceeds are being used appropriately. It is possible that the net proceeds will be invested in a way that does not yield a favorable,
or any, return for us. Our failure to apply these funds effectively could have a material adverse effect on our business and cause
the price of our common stock to decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>You will experience immediate and substantial dilution in
the net tangible book value per share of the common stock you purchase.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Since the price per share of our common stock
being offered is substantially higher than the net tangible book value per share of our common stock, you will suffer immediate
dilution in the net tangible book value of the common stock you purchase in this offering. After giving effect to the sale of
10,000,000 shares of our common stock in this offering at the offering price of $1.00 per share, and after deducting
the placement agent fees and estimated offering expenses payable by us, you will experience immediate dilution of $0.08
per share, representing the</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">difference between our as adjusted pro forma net tangible book
value per share as of September 30, 2014 after giving effect to this offering, and the offering price. See the section entitled
&ldquo;Dilution&rdquo; below for a more detailed discussion of the dilution you will incur if you purchase the common stock in
this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Although we currently expect to raise gross proceeds of up
to $10.0 million in the offering, there is no certainty that such financing will be available.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Although we currently expect to raise gross
proceeds of up to $10.0 million in the offering, there is no certainty that such financing will be available
in such amounts, or at all. While the placement agent has agreed to use their reasonable best efforts to sell such securities,
the placement agent will not be obligated to purchase any securities that are not sold. In addition, as a result of the offering
being made on a best efforts basis with no minimum, we may raise substantially less than the maximum total offering amounts currently
contemplated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>You may experience future dilution as a result of future
equity offerings.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In order to raise additional capital, we may
in the future offer additional shares of our common stock or other securities convertible into or exchangeable for our common
stock. We cannot assure you that we will be able to sell shares or other securities in any other offering at a price per share
that is equal to or greater than the price per share paid by investors in this offering, and investors purchasing shares or other
securities in the future could have rights superior to existing stockholders. The price per share at which we sell additional
shares of our common stock or other securities convertible into or exchangeable for our common stock in future transactions may
be higher or lower than the price per share in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>A substantial number of shares of our common stock may be
sold in this offering, which could cause the price of our common stock to decline.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In this offering we will sell 10,000,000 shares,
or approximately 41% of our outstanding common stock as of immediately prior to the offering. This sale
and any future sales of a substantial number of shares of our common stock in the public market, or the perception that such sales
may occur, could adversely affect the price of our common stock. We cannot predict the effect, if any, that market sales of those
shares of common stock or the availability of those shares of common stock for sale will have on the market price of our common
stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_005"></A><B>SPECIAL NOTE REGARDING
FORWARD-LOOKING INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Certain statements contained or incorporated
by reference into this prospectus supplement, the accompanying prospectus and any related free writing prospectus constitute forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E
of the Exchange Act, including statements, other than statements of historical facts, included or incorporated in this prospectus
supplement, the accompanying prospectus and any related free writing prospectus regarding our strategy, anticipated agreements
with marketing partners, progress and timing of research and product development results, anticipated clinical trial timelines
or results, projected regulatory timelines, future operations, financial position, future revenues, projected costs, prospects,
plans, and objectives of management. The words &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;would,&rdquo;
&ldquo;expect,&rdquo; &ldquo;intend,&rdquo; &ldquo;plan,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo;
&ldquo;predict,&rdquo; &ldquo;potential,&rdquo; &ldquo;continue,&rdquo; or &ldquo;appear&rdquo; or the negative of these terms
or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain
these identifying words. We cannot guarantee that we actually will achieve the plans, intentions or expectations disclosed in
our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events
could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. In evaluating
such forward-looking statements, you should specifically consider various factors, including the risks outlined under the heading
&ldquo;Risk Factors&rdquo; contained in any related free writing prospectus and in this prospectus supplement and the accompanying
prospectus, and in our most recent annual report on Form 10-K and any subsequent filings with the SEC. The discussion of risks
and uncertainties set forth in those filings is not necessarily a complete or exhaustive list of all risks facing the Company
at any particular point in time. We operate in a highly competitive, highly regulated and rapidly changing environment, and our
business is in a state of evolution. Therefore, it is likely that new risks will emerge, and that the nature and elements of existing
risks will change, over time. It is not possible for management to predict all such risk factors or changes therein, or to assess
either the impact of all such risk factors on our business or the extent to which any individual risk factor,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">combination of factors, or new or altered factors, may cause results
to differ materially from those contained in any forward-looking statement. Also, these forward-looking statements represent our
estimates and assumptions only as of the date such forward-looking statements are made. We are not under any obligation, and we
expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information,
future events or otherwise. All subsequent forward-looking statements attributable to Cyclacel or to any person acting on its
behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We cannot assure you that the forward-looking
statements in this prospectus supplement, the accompanying prospectus, any related free writing prospectus and the documents incorporated
by reference herein and therein will prove to be accurate. In addition, if our forward-looking statements prove to be inaccurate,
the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not
regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans
in any specified time frame, if at all. We may not update these forward-looking statements, even though our situation may change
in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_006"></A><B>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We estimate that the net proceeds from this
offering will be approximately $9.2 million, after deducting the placement agent fees estimated offering
expenses payable by us. We intend to use the net proceeds of this offering for continued clinical development of sapacitabine
in MDS and other indications and Phase 1 clinical trials of our CDK inhibitor CYC065, and general corporate purposes. As a
result, our management will retain broad discretion in the allocation and use of the net proceeds of this offering, and investors
will be relying on the judgment of our management with regard to the use of these net proceeds. Pending application of the net
proceeds for the purposes as described above, we intend to invest these net proceeds in interest bearing investment grade securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_007"></A><B>DILUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our historical net tangible book value as
of September 30, 2014 was approximately $19.7 million, or $0.87 per share of common stock. Pro forma net tangible book value
per share is calculated by subtracting our total liabilities from our total tangible assets, which is total assets less intangible
assets, and dividing this amount by the number of shares of common stock outstanding as of September 30, 2014, plus any issuances
of common stock from September 30, 2014, through and immediately prior to the date of the offering . After giving effect to the
sale by us of the shares of common stock offered in this offering, at an offering price of $1.00 per share
and after deducting placement agent fees and estimated offering expenses payable by us, our pro forma net tangible book value
as of September 30, 2014, would have been approximately $31.5 million, or $0.92 per share
of common stock. This represents an immediate increase in pro forma net tangible book value of $0.05 per share
to our existing stockholders and an immediate and substantial dilution of $0.08 per share to new investors.
The following table illustrates this per share dilution:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 76%; padding-left: 10pt; font-size: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Offering price
    per share</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right">1.00</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 10pt; font-size: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Historical net tangible
    book value per share as of September 30, 2014</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">0.87</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 10pt; font-size: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Increase per share after
    the offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">0.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 10pt; font-size: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Pro forma net tangible book
    value per share after this offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">0.92</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 10pt; font-size: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Dilution per share to new
    investors</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">0.08</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The foregoing illustration does not reflect
potential dilution from the conversion of outstanding preferred stock, or exercise of options or warrants to purchase shares of
our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><A NAME="a_008"></A><B>PLAN
OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Pursuant to an engagement letter, dated as
of March 3, 2015, between us and H.C. Wainwright&nbsp;&amp; Co., LLC, we have engaged H.C. Wainwright&nbsp;&amp; Co., LLC
as our exclusive placement agent and sole book runner to solicit offers to purchase the common stock offered by this prospectus
supplement.&nbsp;H.C. Wainwright&nbsp;&amp; Co., LLC is not purchasing any common stock for its own account in this offering,
and is not required to arrange the purchase or sale of any additional specific number or dollar amount of the securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">H.C. Wainwright&nbsp;&amp; Co., LLC has agreed
to use its reasonable best efforts to arrange for the sale of all of the securities in this offering. There is no requirement
that any minimum number of shares or dollar amount of shares be sold in this offering and there can be no assurance that we will
sell all or any of the shares being offered.&nbsp;The engagement letter provides that the obligations of H.C. Wainwright&nbsp;&amp;
Co., LLC and the investors are subject to certain conditions precedent, including, among other things, the absence of any material
adverse change in our business and the receipt of certain opinions, letters and certificates from us or our counsel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We currently anticipate that the closing of
this offering will occur on or about March 9, 2015, subject to customary closing
conditions.&nbsp;On the closing date, the following will occur:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 1%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 93%; font-size: 10pt"><FONT STYLE="font-size: 10pt">we will receive funds in the amount
    of the aggregate purchase price; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 1%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 93%; font-size: 10pt"><FONT STYLE="font-size: 10pt">H.C. Wainwright&nbsp;&amp; Co.,
    LLC, as placement agent, will receive the placement agent fees in accordance with the terms of the engagement letter; and
    </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 1%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 93%; font-size: 10pt"><FONT STYLE="font-size: 10pt">we will deliver the shares of common
    stock to the investors. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We have agreed to pay H.C. Wainwright&nbsp;&amp;
Co., LLC an aggregate fee equal to 7% on aggregate gross proceeds in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We have also agreed to pay H.C. Wainwright&nbsp;&amp;
Co., LLC a non-accountable expense allowance of $50,000.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following table shows the per share and
total placement agent fees we will pay in connection with the sale of our common stock, assuming the purchase of all of the common
stock we are offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 75%; border-collapse: collapse">
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Per
    share placement agent fees</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 9%; text-align: right">0.07</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 1%; font-size: 10pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Total</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">700,000</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; font-size: 10pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We estimate the total expenses of this offering
which will be payable by us, excluding the placement agent fees, will be approximately $100,000. After deducting&nbsp;the&nbsp;fees due to the placement agent and our estimated offering expenses, we expect the net proceeds
from this offering to be approximately $9.2 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We have agreed to indemnify H.C. Wainwright&nbsp;&amp;
Co., LLC and certain other persons against certain liabilities relating to or arising out of H.C. Wainwright&nbsp;&amp; Co., LLC&rsquo;s
activities under the engagement letter. We have also agreed to contribute to payments H.C. Wainwright&nbsp;&amp; Co., LLC may
be required to make in respect of such liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">H.C. Wainwright&nbsp;&amp; Co., LLC may be
deemed to be an underwriter within the meaning of Section&nbsp;2(a)(11) of the Securities Act, and any commissions received by
it and any profit realized on the resale of the common stock sold by it while acting as principal might be deemed to be underwriting
discounts or commissions under the Securities Act.&nbsp;As an underwriter, H.C. Wainwright&nbsp;&amp; Co., LLC would be required
to comply with the requirements of the Securities Act and the Exchange Act, including, without limitation, Rule 415(a)(4) under
the Securities Act and Rule 10b-5 and Regulation M under the Exchange Act.&nbsp;These rules and regulations may limit the timing
of purchases and sales of shares of common stock by H.C. Wainwright&nbsp;&amp; Co., LLC acting as principal.&nbsp;Under these
rules and regulations, H.C. Wainwright&nbsp;&amp; Co., LLC:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt">may not engage in any stabilization activity
    in connection with our securities; and </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-size: 10pt">may not bid for or purchase any of our securities
    or attempt to induce any person to purchase any of our securities, other than as permitted under the Exchange Act, until it
    has completed its participation in the distribution. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt">A copy of the engagement letter and the form
of securities purchase agreement we entered into are included as exhibits to our current report on Form 8-K that we
filed with the SEC in connection with the consummation of this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt">The transfer agent for our common stock to
be issued in this offering is American Stock Transfer &amp; Trust Company.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><A NAME="a_009"></A><B>DESCRIPTION
OF THE COMMON STOCK WE ARE OFFERING</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In this offering, we are offering a maximum
of 10,000,000 shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Common Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are authorized to issue 100,000,000 shares
of common stock, $0.001 par value. As of March 2, 2015, 24,388,485 shares of common stock were issued and outstanding. The following
descriptions of our common stock and provisions of our amended and restated certificate of incorporation and amended and restated
by-laws are only summaries, and we encourage you to review complete copies of these documents, which have been filed as exhibits
to our periodic reports with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Dividends, Voting Rights and Liquidation</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Holders of common stock are entitled to one
vote for each share held of record on all matters submitted to a vote of the stockholders, and do not have cumulative voting rights.
Subject to preferences that may be applicable to any outstanding shares of preferred stock, holders of common stock are entitled
to receive ratably such dividends, if any, as may be declared from time to time by our board of directors out of funds legally
available for dividend payments. All outstanding shares of common stock are fully paid and non-assessable, and the shares of common
stock to be issued upon completion of this offering will be fully paid and non-assessable. The holders of common stock have no
preferences or rights of conversion, exchange, pre-emption or other subscription rights. There are no redemption or sinking fund
provisions applicable to the common stock. In the event of any liquidation, dissolution or winding-up of our affairs, holders
of common stock will be entitled to share ratably in our assets that are remaining after payment or provision for payment of all
of our debts and obligations and after liquidation payments to holders of outstanding shares of preferred stock, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Delaware Law and Certain Charter and By-law Provisions</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The provisions of (1) Delaware law, (2) our
amended and restated certificate of incorporation, and (3) our amended and restated bylaws discussed below could discourage or
make it more difficult to accomplish a proxy contest or other change in our management or the acquisition of control by a holder
of a substantial amount of our voting stock. It is possible that these provisions could make it more difficult to accomplish,
or could deter, transactions that stockholders may otherwise consider to be in their best interests or in our best interests.
These provisions are intended to enhance the likelihood of continuity and stability in the composition of our board of directors
and in the policies formulated by the board of directors and to discourage certain types of transactions that may involve an actual
or threatened change of control of us. These provisions are designed to reduce our vulnerability to an unsolicited acquisition
proposal. The provisions also are intended to discourage certain tactics that may be used in proxy fights. Such provisions also
may have the effect of preventing changes in our management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Delaware Statutory Business Combinations
Provision. </I>We are subject to the anti-takeover provisions of Section 203 of the Delaware General Corporation Law. In general,
Section 203 prohibits a publicly-held Delaware corporation from engaging in a &ldquo;business combination&rdquo; with an &ldquo;interested
stockholder&rdquo; for a period of three years after the date of the transaction in which the person became an interested stockholder,
unless the business combination is, or the transaction in which the person became an interested stockholder was, approved in a
prescribed manner or another prescribed exception applies. For purposes of Section 203, a &ldquo;business combination&rdquo; is
defined broadly to include a merger, asset sale or other transaction resulting in a financial benefit to the interested stockholder,
and, subject to certain exceptions, an &ldquo;interested stockholder&rdquo; is a person who, together with his or her affiliates
and associates, owns (or within three years prior, did own) 15% or more of the corporation&rsquo;s voting stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Classified Board of Directors. </I>Our amended
and restated certificate of incorporation and amended and restated bylaws provide that our board of directors is divided into
three classes, each serving staggered three-year terms ending at the annual meeting of our stockholders. All directors elected
to our classified board of directors will serve until the election and qualification of their respective successors or their earlier
resignation or removal. The board of directors is authorized to create new directorships and to fill such positions so created
and is permitted to specify the class to which any such new position is assigned. The person filling such position would serve
for the term applicable to that class. The board of directors (or its remaining members, even if less than a quorum) is also empowered
to fill vacancies on the board of directors occurring for any reason for the remainder of the term of the class of directors in
which the vacancy occurred. These provisions are likely to increase the time required for stockholders to change the composition
of the board of directors. For example, in general, at least two annual meetings will be necessary for stockholders to effect
a change in a majority of the members of the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Advance Notice Provisions for Stockholder
Proposals and Stockholder Nominations of Directors. </I>Our amended and restated bylaws provide that, for nominations to the board
of directors or for other business to be properly brought by a stockholder before a meeting of stockholders, the stockholder must
first have given timely notice of the proposal in writing to our Secretary. For an annual meeting, a stockholder&rsquo;s notice
generally must be delivered not less than 90 days nor more than 120 days prior to the anniversary of the mailing date of the proxy
statement for the previous year&rsquo;s annual meeting. Detailed requirements as to the form of the notice and information required
in the notice are specified in the amended and restated bylaws. If it is determined that business was not properly brought before
a meeting in accordance with our bylaw provisions, such business will not be conducted at the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Special Meetings of Stockholders. </I>Special
meetings of the stockholders may be called only by our board of directors pursuant to a resolution adopted by a majority of the
total number of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>No Stockholder Action by Written Consent.
</I>Our amended and restated certificate of incorporation and amended and restated bylaws do not permit our stockholders to act
by written consent. As a result, any action to be effected by our stockholders must be effected at a duly called annual or special
meeting of the stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Super-Majority Stockholder Vote Required
for Certain Actions. </I>The Delaware General Corporation Law provides generally that the affirmative vote of a majority of the
shares entitled to vote on any matter is required to amend a corporation&rsquo;s certificate of incorporation or bylaws, unless
the corporation&rsquo;s certificate of incorporation or bylaws, as the case may be, requires a greater percentage. Our amended
and restated certificate of incorporation requires the affirmative vote of the holders of at least 66 2/3% of our outstanding
voting stock to amend or repeal any of the provisions inconsistent with the provisions discussed in the section of this prospectus
entitled &ldquo;Classified Board of Directors&rdquo;. This 66 2/3% stockholder vote would be in addition to any separate class
vote that might in the future be required pursuant to the terms of any preferred stock that might then be outstanding. In addition,
a 66 2/3% vote is also required for any amendment to, or repeal of, our amended and restated bylaws by the stockholders. Our amended
and restated bylaws may be amended or repealed by a simple majority vote of the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_0012"></A>DIVIDEND POLICY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have never declared nor paid any cash dividends
on our common stock and do not currently anticipate declaring or paying any cash dividends on our outstanding shares of common
stock in the foreseeable future. We are, however, required to make or accrue quarterly dividend payments on our Preferred Stock.
Except for dividends that may be paid on the Preferred Stock, we currently intend to retain all of our future earnings, if any,
to finance operations. Any future determination relating to our dividend policy will be made at the discretion of our Board of
Directors and will depend on a number of factors, including future earnings, capital requirements, financial conditions, future
prospects, contractual restrictions and other factors that our Board of Directors may deem relevant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_010"></A><B>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The validity of the securities offered hereby
will be passed upon for us by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., New York, New York. Ellenoff Grossman &amp;
Schole LLP, New York, New York is representing the placement agent in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_011"></A><B>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The consolidated financial statements of Cyclacel
Pharmaceuticals, Inc. at December 31, 2012, and for each of the two years in the period ended December 31, 2012 appearing in Cyclacel
Pharmaceuticals, Inc.&rsquo;s Annual Report (Form 10-K) for the year ended December 31, 2013 have been audited by Ernst &amp;
Young LLP (US), independent registered public accounting firm, as set forth in
their report thereon, included therein, and incorporated herein by reference. Such consolidated financial statements are incorporated
herein by reference in reliance upon such report given on the authority of such firm as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The consolidated financial statements of Cyclacel
Pharmaceuticals, Inc. for the year ended December 31, 2013, appearing in Cyclacel Pharmaceuticals, Inc.&rsquo;s Annual Report
on Form 10-K for the year ended December 31, 2013, have been audited by McGladrey LLP, independent registered public accounting
firm, as set forth in its report thereon, included therein, and incorporated herein by reference. Such consolidated financial
statements are incorporated herein by reference in reliance upon such report given on the authority of such firm as experts in
accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_012"></A><B>WHERE YOU CAN FIND MORE
INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have filed with the SEC a registration statement
on Form S-3 (File No. 333-187801), of which this prospectus supplement and the accompanying prospectus are a part, under the Securities
Act, to register the shares of common stock offered by this prospectus supplement. However, this prospectus supplement and the
accompanying prospectus do not contain all of the information contained in the registration statement and the exhibits and schedules
to the registration statement. We encourage you to carefully read the registration statement and the exhibits and schedules to
the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As a public company, we are required to file
annual, quarterly and current reports, proxy statements and other information with the SEC. You may read and copy any of our materials
on file with the SEC at the SEC&rsquo;s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Our filings are available
to the public over the Internet at the SEC&rsquo;s website at http://www.sec.gov. Please call the SEC at 1-800-SEC-0330 for further
information on the Public Reference Room.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We also maintain a web site at www.cyclacel.com,
through which you can access our SEC filings. The information on our website is not a part of, and should not be construed as
being incorporated by reference into, this prospectus supplement or the accompanying prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_013"></A><B>INCORPORATION OF DOCUMENTS
BY REFERENCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In this document, we &ldquo;incorporate by
reference&rdquo; certain information we file with the SEC, which means that we can disclose important information to you by referring
to that information. The information incorporated by reference is considered to be a part of this prospectus supplement. Any statement
contained in a document incorporated by reference herein shall be deemed to be modified or superseded for all purposes to the
extent that a statement contained in this prospectus supplement or in any other subsequently filed document that is also incorporated
or deemed to be incorporated by reference, modifies or supersedes such statement. Any statement so modified or superseded shall
not be deemed, except as so modified or superseded, to constitute a part of this prospectus supplement. We incorporate by reference
the documents listed below (other than any portions thereof that are not deemed &ldquo;filed&rdquo; with the SEC):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 86%; font-size: 10pt"><FONT STYLE="font-size: 10pt">Our Annual Report on Form 10-K for the year ended December
    31, 2013 filed on April 1, 2014;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Our Quarterly Reports on Form 10-Q filed on May 13, 2014, August
    12, 2014 and November 12, 2014;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 86%; font-size: 10pt"><FONT STYLE="font-size: 10pt">Our Current Reports on Form 8-K filed on March 21, 2014,
    April 4, 2014, May 23, 2014, May 28, 2014, September 11, 2014, December 4, 2014, December 16, 2014, February 6, 2015, February
    20, 2015 and March 4, 2015;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 86%; font-size: 10pt"><FONT STYLE="font-size: 10pt">Our definitive Proxy Statement relating to our 2014
    annual meeting of stockholders filed on April 2, 2014;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 86%; font-size: 10pt"><FONT STYLE="font-size: 10pt">The description of our common stock contained in our
    Registration Statement on Form 8-A, filed on March 8, 2004 (File No. 000-50626), which incorporates by reference the description
    of the shares of our common stock contained in our Registration Statement on Form S-1 (File No. 333-109653) filed on December
    22, 2003 and declared effective by the SEC on March 17, 2004, and any amendment or reports filed with the SEC for purposes
    of updating such description; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%">&nbsp;</TD>
    <TD STYLE="width: 3%; font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 86%; font-size: 10pt"><FONT STYLE="font-size: 10pt">The description of our preferred stock contained in
    our Registration Statement on Form 8-A, filed on October 27, 2004 (File No. 000-50626), which incorporates by reference the
    description of the shares of our preferred stock contained in our Registration Statement on Form S-1 (File No. 333-119585)
    filed on October 7, 2004 and declared effective by the SEC on November 1, 2004, and any amendment or reports filed with the
    SEC for purposes of updating such description.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">All reports and other documents subsequently
filed by us pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act of 1934, as amended, or the Exchange
Act (other than Current Reports on Form 8-K furnished under Item 2.02 or Item 7.01, including any financial statements or other
exhibits relating thereto furnished pursuant to Item 9.01 of Form 8-K unless we otherwise state therein) after the date of this
prospectus supplement shall be deemed to be incorporated by reference in this prospectus supplement and to be part hereof from
the date of filing of such reports and other documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We hereby undertake to provide without charge
to each person, including any beneficial owner, to whom a copy of this prospectus supplement is delivered, upon written or oral
request of any such person, a copy of any and all of the information that has been or may be incorporated by reference in this
prospectus supplement, including any exhibits that are specifically incorporated by reference in such documents. Requests for
such copies should be directed as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Cyclacel Pharmaceuticals, Inc.<BR>
200 Connell Drive, Suite 1500<BR>
Berkeley Heights, NJ 07922<BR>
(908) 517-7330</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: right"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>$75,000,000</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CYCLACEL PHARMACEUTICALS,&nbsp;INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Common Stock<BR>
Preferred Stock<BR>
Warrants<BR>
Debt Securities<BR>
Rights<BR>
Purchase Contracts<BR>
Units</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may, from time to time at prices and
on terms to be determined at or prior to the time of one or more offerings, issue up to $75,000,000 of any combination of the securities
described in this prospectus, either individually or in units. We may also offer common stock or preferred stock upon conversion
of the debt securities, common stock upon conversion of the preferred stock, or common stock, preferred stock or debt securities
upon the exercise of warrants, rights or performance of purchase contracts; or any combination of these securities upon the performance
of purchase contracts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 31.5pt">This prospectus described the general terms
of these securities and the general manner in which these securities will be offered.&nbsp; We will provide you with the specific
terms of any offering in one or more supplements to this prospectus. The prospectus supplements will also describe the specific
manner in which these securities will be offered and m ay also supplement, update or amend information contained in this document.&nbsp;
You should read this prospectus and any prospectus supplement, as well as any documents incorporated by reference into this prospectus
or any prospectus supplement, carefully before you invest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 31.5pt">Our common stock is listed on The NASDAQ
Global Market under the symbol &ldquo;CYCC,&rdquo; and our preferred stock is listed on the NASDAQ Global Market under the symbol
&ldquo;CYCCP.&rdquo; On April&nbsp;17, 2013, the last reported sale price of our common stock was $5.00 per share, and the last
reported sale price of our preferred stock was $8.50. The applicable prospectus supplement will contain information, where applicable,
as to any other listing, if any, on The NASDAQ Global Market or any securities market or other securities exchange of the securities
covered by the prospectus supplement. Prospective purchasers of our securities are urged to obtain current information as to the
market prices of our securities, where applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 31.5pt"><B>Investing in our securities involves
a high degree of risk. Before deciding whether to invest in our securities, you should consider carefully the risks that we have
described on page&nbsp;13 of this prospectus under the caption &ldquo;Risk Factors.&rdquo; We may include specific risk factors
in supplements to this prospectus under the caption &ldquo;Risk Factors.&rdquo; This prospectus may not be used by us to offer
or sell our securities unless accompanied by a prospectus supplement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 31.5pt">Our securities may be sold directly by
us to investors, through agents designated from time to time or to or through agents, underwriters or dealers. For additional information
on the methods of sale, you should refer to the section entitled &ldquo;Plan of Distribution&rdquo; in this prospectus and in the
applicable prospectus supplement. If any agents, underwriters or agents are involved in the sale of our securities with respect
to which this prospectus is being delivered, the names of such underwriters or agents and any applicable fees, commissions or discounts
and over-allotment options will be set forth in a prospectus supplement. The price to the public of such securities and the net
proceeds that we expect to receive from such sale will also be set forth in a prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of
this prospectus. Any representation to the contrary is a criminal offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The date of this prospectus is April&nbsp;22,
2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="btoc"></A><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 93%; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Page</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B001">ABOUT THIS PROSPECTUS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B002">PROSPECTUS SUMMARY</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">3</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B003">RISK FACTORS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">13</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B004">RATIO OF EARNINGS TO FIXED CHARGES</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">13</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B005">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">13</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B006">USE OF PROCEEDS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">14</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B007">PLAN OF DISTRIBUTION</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">14</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B008">SECURITIES WE MAY&nbsp;OFFER</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">17</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B009">DESCRIPTION OF COMMON STOCK</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">18</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B010">DESCRIPTION OF PREFERRED STOCK</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">24</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B011">DESCRIPTION OF WARRANTS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">34</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B012">DESCRIPTION OF DEBT SECURITIES</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">39</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B013">DESCRIPTION OF RIGHTS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">47</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B014">DESCRIPTION OF PURCHASE CONTRACTS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">49</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B015">DESCRIPTION OF UNITS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">50</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B016">LEGAL MATTERS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">51</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B017">EXPERTS</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">51</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B018">WHERE YOU CAN FIND MORE INFORMATION</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">51</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><A HREF="#a_B019">INCORPORATION OF DOCUMENTS BY REFERENCE</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">51</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>You should read this prospectus and the
documents incorporated by reference carefully before you invest. Such documents contain important information you should consider
when making your investment decision. See &ldquo;Incorporation of Documents by Reference&rdquo; on page&nbsp;51. You should rely
only on the information provided in this prospectus or documents incorporated by reference in this prospectus. We have not authorized
anyone to provide you with different information. The information contained in this prospectus is accurate only as of the date
of this prospectus and any information we have incorporated by reference is accurate only as of the date of the document incorporated
by reference, regardless of the time of delivery of this prospectus or of any sale of our common stock. Our business, financial
condition, results of operations and prospects may have changed since that date.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B001" TITLE="ABOUT THIS PROSPECTUS"></A><B>ABOUT THIS PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus is part of a registration
statement that we filed with the Securities and Exchange Commission, or SEC, utilizing a &ldquo;shelf&rdquo; registration process.
Under this shelf registration process, we may offer shares of our common stock, preferred stock, warrants to purchase common stock,
and/or debt securities, either individually or in units, in one or more offerings, with a total value of up to $75,000,000. This
prospectus provides you with a general description of the securities we may offer. Each time we offer a type or series of securities
under this prospectus, we will provide a prospectus supplement that will contain specific information about the terms of that offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus does not contain all of
the information included in the registration statement. For a more complete understanding of the offering of the securities, you
should refer to the registration statement, including its exhibits. The prospectus supplement may also add, update or change information
contained or incorporated by reference in this prospectus. However, no prospectus supplement will fundamentally change the terms
that are set forth in this prospectus or offer a security that is not registered and described in this prospectus at the time of
its effectiveness. This prospectus, together with the applicable prospectus supplements and the documents incorporated by reference
into this prospectus, includes all material information relating to the offering of securities under this prospectus. You should
carefully read this prospectus, the applicable prospectus supplement, the information and documents incorporated herein by reference
and the additional information under the heading &ldquo;Where You Can Find More Information&rdquo; before making an investment
decision.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You should rely only on the information
we have provided or incorporated by reference in this prospectus or any prospectus supplement. We have not authorized anyone to
provide you with information different from that contained or incorporated by reference in this prospectus. No dealer, salesperson
or other person is authorized to give any information or to represent anything not contained or incorporated by reference in this
prospectus. You must not rely on any unauthorized information or representation. This prospectus is an offer to sell only the securities
offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You should assume that the information in
this prospectus or any prospectus supplement is accurate only as of the date on the front of the document and that any information
we have incorporated herein by reference is accurate only as of the date of the document incorporated by reference, regardless
of the time of delivery of this prospectus or any sale of a security. To the extent there is a conflict between the information
contained in this prospectus and the prospectus supplement, you should rely on the information in the prospectus supplement, provided
that if any statement in one of these documents is inconsistent with a statement in another document having a later date &mdash;
for example, a document incorporated by reference in this prospectus or any prospectus supplement &mdash; the statement in the
document having the later date modifies or supersedes the earlier statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We further note that the representations,
warranties and covenants made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference
in the accompanying prospectus were made solely for the benefit of the parties to such agreement, including, in some cases, for
the purpose of allocating risk among the parties to such agreements, and should not be deemed to be a representation, warranty
or covenant to you. Moreover, such representations, warranties or covenants were accurate only as of the date when made. Accordingly,
such representations, warranties and covenants should not be relied on as accurately representing the current state of our affairs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus may not be used to consummate
sales of our securities, unless it is accompanied by a prospectus supplement. To the extent there are inconsistencies between any
prospectus supplement,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">this prospectus and any documents incorporated by reference,
the document with the most recent date will control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Unless the context otherwise requires, &ldquo;Cyclacel,&rdquo;
&ldquo;the Company,&rdquo; &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our&rdquo; and similar terms refer to Cyclacel Pharmaceuticals
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B002" TITLE="PROSPECTUS SUMMARY"></A><B>PROSPECTUS SUMMARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following is a summary of what we believe
to be the most important aspects of our business and the offering of our securities under this prospectus. We urge you to read
this entire prospectus, including the more detailed consolidated financial statements, notes to the consolidated financial statements
and other information incorporated by reference from our other filings with the SEC or included in any applicable prospectus supplement.
Investing in our securities involves risks. Therefore, carefully consider the risk factors on page&nbsp;13 of this prospectus and
in any prospectus supplements and in our most recent annual and quarterly filings with the SEC, as well as other information in
this prospectus and any prospectus supplements and the documents incorporated by reference herein or therein, before purchasing
our securities. Each of the risk factors could adversely affect our business, operating results and financial condition, as well
as adversely affect the value of an investment in our securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Our Business</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are a biopharmaceutical company dedicated
to the development and commercialization of novel, mechanism-targeted drugs to treat human cancers and other serious diseases.
We are focused on delivering leading edge therapeutic management of cancer patients based on a clinical development pipeline of
novel drug candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Clinical programs</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Oncology Development Programs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our clinical development priorities are
focused on orally-available sapacitabine in the following indications:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">Acute Myeloid Leukemia,
or AML, in the elderly;</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">Myelodysplastic syndromes,
or MDS; and</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">Non-small cell lung cancer,
or NSCLC.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The U.S. Food and Drug Administration, or
FDA, and the European Medicines Agency, or EMA, have designated sapacitabine as an orphan drug for the treatment of both AML and
MDS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are currently evaluating sapacitabine
in a Phase 3 study being conducted under a Special Protocol Assessment, or SPA, with the FDA for the front-line treatment of AML
in the elderly. We are also exploring sapacitabine in Phase 2 studies for MDS, NSCLC and chronic lymphocytic leukemia, or CLL,
and in a Phase 1 study in solid tumors in combination with our own drug candidate, seliciclib.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In our second development program, we are
evaluating cyclin dependent kinase, or CDK, inhibitors. CDKs are involved in cancer cell growth, metastatic spread and DNA damage
repair. Seliciclib, our lead CDK inhibitor, selectively inhibits a spectrum of enzyme targets - CDK2/E, CDK2/A, CDK7 and CDK9 -
that are central to the process of cell division and cell cycle control. In breast and lung tumors, overexpression of cyclin E
is associated with poor prognosis and drug resistance. Resistant breast and lung tumor cell lines overexpressing cyclin E are resensitized
to apoptotic cell killing by seliciclib. NSCLC cell lines with Ras-activating mutations, such as KRAS and NRAS, have been found
to be</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">sensitive to seliciclib-induced apoptosis. To date, seliciclib
has been evaluated in approximately 450 patients in several Phase 1 and 2 studies and has shown signs of anti-cancer activity.
We have retained worldwide rights to commercialize seliciclib. Seliciclib has completed a Phase 2B randomized study in third-line
NSCLC and is currently undergoing a study in solid tumors in combination with our own drug candidate, sapacitabine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our second generation CDK inhibitor, CYC065,
is a highly selective inhibitor of CDK&rsquo;s targeting CDK -2, -5 and -9 enzymes. CYC065 has shown to have increased anti-proliferative
potency and improved pharmaceutical properties compared to seliciclib. Investigational new drug (IND)-enabling studies with CYC065
are in progress supported by a $1.9 million grant from the UK Government&rsquo;s Biomedical Catalyst.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to these development programs,
we have allocated limited resources, if the funds are available, to other programs allowing us to maintain and build on our core
competency in cell cycle biology and related drug discovery. In our polo-like kinase, or Plk, inhibitor program, we have discovered
potent and selective small molecule inhibitors of Plk1, a kinase active during cell division, targeting the mitotic phase of the
cell cycle.&nbsp; Plk was discovered by Professor David Glover, our Chief Scientist, and CYC116, an orally-available inhibitor
of Aurora kinase, or AK, A and B and Vascular Endothelial Growth Factor Receptor 2, or VEGFR2, has completed a multicenter Phase
1 trial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We also have a number of earlier stage programs
for which limited or no resources will be allocated in the foreseeable future. For example, extensive preclinical data published
by independent investigators evidence activity by our CDK inhibitors, including seliciclib, in various autoimmune and inflammatory
diseases and conditions associated with aberrant cell proliferation including graft-versus-host disease, idiopathic pulmonary fibrosis,
lupus nephritis, polycystic kidney disease and rheumatoid arthritis. In our GSK-3 inhibitor program, we have demonstrated evidence
of activity in preclinical models of Type 2 Diabetes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Sapacitabine</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Sapacitabine (previously known as CYC682)
is an orally-available nucleoside analogue. Both sapacitabine and CNDAC, its major metabolite, have demonstrated potent anti-tumor
activity in preclinical studies. Sapacitabine is an orally-available prodrug of CNDAC, which is a novel nucleoside analog, or a
compound with a structure similar to a nucleoside. A prodrug is a compound that has a therapeutic effect after it is metabolized
within the body. CNDAC has a significantly longer residence time in the blood when it is produced in the body through metabolism
of sapacitabine than when it is given directly. Sapacitabine acts through a novel mechanism whereby the compound interferes with
DNA synthesis through the incorporation of CNDAC into DNA during replication or repair, triggering a b-elimination reaction and
leading to the formation of SSBs, which can activate the G2 checkpoint transcription coupled nucleotide excision repair, or TC-NER.
During subsequent rounds of replication, SSBs are converted to double-strand breaks (DSBs); these can be repaired by the homologous
recombination repair (HRR) pathway, or, if unrepaired, result in cell death.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are currently exploring sapacitabine
in both hematological cancers and solid tumors and over 500 patients have received sapacitabine in Phase 1, 2 and 3 studies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Hematological Cancers</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Randomized Phase 3 pivotal trial, SEAMLESS, as
a front-line treatment in elderly patients aged 70 years or older with newly diagnosed AML who are not candidates for intensive
induction chemotherapy</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The SEAMLESS study is being conducted under
an SPA agreement that Cyclacel reached with the FDA. SEAMLESS builds on promising one year survival observed in elderly patients
aged 70 years or older with newly diagnosed AML or AML in first relapse enrolled in a Phase 2 study of single agent sapacitabine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The SEAMLESS study is chaired by Hagop M.
Kantarjian, M.D., Chairman and Professor, Department of Leukemia, The University of Texas MD Anderson Cancer Center, Houston, Texas.
SEAMLESS is a multicenter, randomized, Phase 3 study comparing two treatment arms. In Arm A, sapacitabine is administered in alternating
cycles with decitabine and in Arm C decitabine is administered alone. The primary efficacy endpoint is overall survival and the
study is designed to demonstrate an improvement in overall survival. Approximately 242 patients per arm, or a total of 485 patients
from approximately 50 centers, will be enrolled. The SEAMLESS study is designed to have a 90% probability of detecting a 27.5%
difference in overall survival and a prespecified interim analysis for futility will be performed and reviewed by the Data Safety
Monitoring Board, or DSMB. In addition, the DSMB will periodically convene to review data for safety or efficacy from each approximately
100 patients enrolled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In December&nbsp;2012, the DSMB met and
recommended that the study should continue as planned after reviewing available data from 119 randomized patients. The DSMB noted
that no safety or efficacy concerns were identified. Results from an on-going, multicenter, Phase 1/2 clinical trial examining
the safety and efficacy of oral sapacitabine administered sequentially with decitabine, the same treatment regimen as Arm A in
SEAMLESS, was reported during a poster session at the 2012 American Society of Hematology, or ASH, Annual Meeting in Atlanta, Georgia.
Forty-six patients were treated with alternating cycles of sapacitabine and decitabine. Median age was 77 years (range 70-90).
Thirty-three patients (72%) were 75 years or older. Median overall survival was 238 days, or approximately 8 months. The number
of patients still alive at 3 months was 38 (83%), at 6 months 30 (65%), at 12 months 16 (35%) and at 18 months 12 (26%). Sixteen
patients (35%) survived 1 year or longer. Among 33 patients who were 75 years or older, median overall survival was 263 days, or
approximately 9 months, and 1-year survival was 36%. Nineteen patients (41%) responded with 10 complete responses (CRs), 4 partial
responses (PRs) and 5 major hematological improvements (HIs). Median time to response was 2 cycles, i.e., one cycle of decitabine
and one cycle of sapacitabine (range 1-10). Twenty-seven patients (59%) received 5 or more cycles of treatment. Two dose-limiting
toxicities (DLT) were observed (lung infection/sepsis, typhlitis). Thirty-day mortality from all causes was 4%. Sixty-day mortality
from all causes was 13% with one death from typhlitis considered to be possibly related to decitabine by investigator assessment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Phase 2 randomized clinical trial in elderly patients
with AML previously untreated or in first relapse</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In December&nbsp;2007, we initiated an open-label,
multicenter, randomized Phase 2 clinical trial of oral sapacitabine in 60 elderly patients with AML aged 70 or older who are previously
untreated or in first relapse. The Phase 2 study, led by Dr.&nbsp;Kantarjian, had a primary endpoint of 1-year survival rate of
three dosing schedules of sapacitabine in elderly patients with previously untreated or first relapsed AML. Secondary objectives
were to assess complete remission, or CR, partial remission, or PR, duration of CR</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">or CRp, or major hematological improvement and their corresponding
durations, transfusion requirements, number of hospitalized days and safety. The study uses a selection design with the objective
of identifying a dosing schedule among three different arms, A. 200 mg twice daily for seven days every 3-4 weeks, B. 300 mg twice
daily for seven days every 3-4 weeks, and C. 400 mg twice daily for three days per week for two weeks every 3-4 weeks, which produces
a better one year survival rate in the event that all three dosing schedules are active.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In November&nbsp;2012, the results from
the Phase 2 study were published in The Lancet Oncology, demonstrating the safety and efficacy of sapacitabine in this patient
population. The Phase 2 study enrolled and treated between December&nbsp;27, 2007 and April&nbsp;21, 2009, a total of 105 patients
aged 70 years or above with untreated or first relapse AML. The median age of patients was 77 years (range 70&mdash;91). The group
was comprised of a randomized cohort of 60 patients and an expanded, non-randomly assigned cohort enrolling a further 45 patients.
Of the 105 patients, 86 were previously untreated and 19 in first relapse. Approximately 50% of patients had AML de novo and 50%
had AML preceded by antecedent hematological disorder (AHD), such as MDS or myeloproliferative disease, or treatment-related AML.
All but one enrolled patients had intermediate or unfavorable cytogenetics. The randomized cohort of patients were randomly assigned
to one of three dosing schedules: 200 mg twice a day for 7 days (group A); 300 mg twice a day for 7 days (group B); and 400 mg
twice a day for 3 days each week for 2 weeks (group C). All schedules were given in 28 day cycles. The 3-day dosing schedule in
group C was selected for further clinical development in elderly patients with untreated AML. This decision was based on the schedule&rsquo;s
overall efficacy profile, which included a 1-year survival rate of 30%, median overall survival of 213 days and durable complete
remissions (CRs) in 25% of patients. The median overall survival of patients from all groups who achieved CR was 525 days (95%
C.I. 192&mdash;798). The most common grade 3&mdash;4 adverse events regardless of causality were anemia, neutropenia, thrombocytopenia,
febrile neutropenia and pneumonia. Seven deaths were thought to be probably or possibly related to sapacitabine treatment. Approximately
31% of all patients received sapacitabine for at least 4 cycles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Randomized Phase 2 clinical trial in
older patients with MDS as a second-line treatment</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In September&nbsp;2008, we advanced sapacitabine
into an open-label, multi-center, randomized Phase 2 trial as a second-line treatment in patients aged 60 or older with intermediate-2
or high-risk MDS after treatment failure of front-line hypomethylating agents, such as azacitidine and/or decitabine. The Phase
2 study randomized 63 patients aged 60 years or older with MDS of intermediate-2 (n=52) or high-risk (n=11) classification by the
International Prognostic Scoring System (IPSS) at study entry to receive sapacitabine every 4 weeks on one of 3 dosing schedules:
200 mg twice daily for 7 days (Arm G), 300 mg once daily for 7 days (Arm H), or 100 mg once daily for 5 days per week for 2 weeks
(Arm I). The primary efficacy endpoint of the study is 1-year survival with the objective of identifying a dosing schedule that
produces a better 1-year survival rate in the event that all three dosing schedules are active. All patients in the study progressed
after receiving azacitidine, decitabine, or both agents. Secondary objectives are to assess the number of patients who have achieved
CR or CRp, PR, hematological improvement and their corresponding durations, transfusion requirements, number of hospitalization
days and safety.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In October&nbsp;2012, at The Eighth Annual
Hematologic Malignancies 2012 Conference, we reported updated data from the ongoing Phase 2 trial. Median overall survival to date
for all 63 patients in the study was 252 days or approximately 8 months. Median overall survival for 41 out of 63 patients with
10% or more blasts in their bone marrow was 274 days or approximately 9 months. Updated median survival for all three arms was
252 days (approximately 8 months). The median survival for each arm is 291 days (approximately 10 months) for Arm G, 274 days (approximately
9 months) for Arm H, and 227</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">days (approximately 8 months) for Arm I. Twenty-seven percent
of all patients received 6 or more cycles. Twenty-two percent of patients were still alive and longer follow-up is needed to assess
1-year survival and overall survival of each arm.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Median survival for patients with intermediate-2
or high-risk disease, as defined by the International Prognostic Scoring System (IPSS), is 4.3 to 5.6 months as reported in literature.
Patients with high IPSS scores also have a high probability of experiencing transformation of their MDS into AML, an aggressive
form of blood cancer with typically poor survival.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Solid Tumors</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Phase 2 clinical trial in patients with
NSCLC</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are evaluating sapacitabine in patients
in a Phase 2, open label, single arm, multicenter, clinical trial in patients with NSCLC who have had one prior chemotherapy. This
study builds on the observation of prolonged stable disease of four months or longer experienced by heavily pretreated NSCLC patients
involved in two Phase 1 studies of sapacitabine. The multicenter Phase 2 trial is led by Philip D. Bonomi, M.D., at Rush University
Medical Center, Chicago. The primary objective of the study is to evaluate the rate of response and stable disease in patients
with previously treated NSCLC. Secondary objectives are to assess progression-free survival, duration of response, duration of
stable disease, one year survival, overall survival and safety.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Forty-eight patients have been treated with
two dosing schedules, either twice daily or once a day. In the twice daily schedule 15 patients were treated with escalating doses.
The recommended Phase 2 dose was reached at 75 mg twice daily for 5 days per week for 2 weeks every 3 weeks. Among 12 patients
treated at this recommended Phase 2 dose, 4 achieved stable disease. All 4 responders had at least 2 prior therapies and have been
discontinued from the study. Responders received an average of 7 treatment cycles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the once daily schedule 33 patients were
treated with escalating doses. Maximum tolerated dose has not been reached at the upper limit of the dosing range as per protocol.
Patients are currently being entered into the 200 mg once daily dosing level for 5 days per week for 2 weeks every 3 weeks. Among
25 patients treated with daily doses ranging from 100 mg to 175 mg, two patients achieved PR and 10 stable disease. The two PR
responders had 3 or 4 prior therapies, respectively, and one remains on study. Among the 10 stable disease responders, 9 had at
least 2 prior therapies and 2 remain on study. Responders received an average of 10 treatment cycles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Phase 1 clinical trial of sapacitabine
and seliciclib in patients with advanced cancers</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In an open label Phase 1, single-arm dose
escalation study, sapacitabine and seliciclib were administered sequentially in patients with incurable advanced solid tumors unresponsive
to conventional treatment or for which no effective therapy exists. Sapacitabine was dosed twice daily for 7 days (Day 1-7) and
seliciclib twice daily for 3 days (Day 8-11). One treatment cycle is three weeks. At least 3 patients were enrolled at each escalating
dose level. The first tumor imaging study is conducted after 2 cycles of treatment and every 3 cycles thereafter. The primary objective
of the study is to determine the maximum tolerated dose, or MTD, and recommended Phase 2 dosing schedule of sapacitabine and seliciclib
administered sequentially. The secondary objective was to evaluate the antitumor activity of sequential treatment and to explore
the pharmacodynamic effect of this treatment in skin and peripheral blood mononuclear cells. We reported at the 2012 American Society
of Clinical Oncology Annual Meeting that</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">34 heavily-pretreated patients with advanced solid tumors had
been treated with escalating doses. The MTD for sequential administration of sapacitabine and seliciclib was reported as sapacitabine
50 mg twice daily followed by seliciclib 1200 mg twice daily. Pharmacodynamic effects of sapacitabine and seliciclib were observed
in skin biopsies showing a 2.3-fold increase in H2AX staining post-sapacitabine and a further 0.58-fold increase post-seliciclib.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Among 19 patients treated at the MTD, 3
partial responses (PR) occurred in patients with breast, ovarian and pancreatic cancer and 1 stable disease in a patient with ovarian
cancer. Thirteen out of the 19 patients are BRCA-mutation carriers, in their germ line. . Stable disease was achieved in 6 additional
patients treated with the other dosing schedules. The number of treatment cycles administered ranges from 2 to over 15 cycles.
The breast cancer patient who achieved PR remains on study with over 15 cycles and both ovarian cancer patients remain on study
with over 2 and 12 cycles, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">BRCA1 and BRCA2, or breast cancer susceptibility
genes, are tumor suppressor genes that help ensure the stability of DNA, the cell&rsquo;s genetic material, and help prevent uncontrolled
cell growth. Genetic testing for BRCA-status is routinely available. BRCA mutation has been linked to predisposition to breast
and ovarian cancer. According to the US National Cancer Institute, during her life time a woman has a 60% chance of developing
breast cancer and 15-40% chance of developing ovarian cancer if she inherits a harmful BRCA mutation. These risks are 5 times and
over 10 times more likely than for women without the mutation, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Orphan Designation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>European Union</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During May&nbsp;2008, we received designation
from the EMA for sapacitabine as an orphan medicine in two separate indications: AML and MDS. The EMA&rsquo;s Committee for Orphan
Medicinal Products, or COMP, adopted a positive opinion on our application to designate sapacitabine as an orphan medicinal product
for the indications of AML and MDS. The objective of European orphan medicines legislation is to stimulate research and development
of medicinal products for rare diseases by providing incentives to industry. An orphan designation in the European Union confers
a range of benefits to sponsor companies including market exclusivity for a period of 10 years, EMA scientific advice on protocol
development, direct access to the centralized procedure for review of marketing authorizations, EMA fee reductions and eligibility
for grant support from European agencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>United States</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In June&nbsp;2010, we announced that the
FDA granted orphan drug designation to our sapacitabine product candidate for the treatment of both AML and MDS. An orphan designation
in the United States confers a range of benefits to sponsor companies, including market exclusivity for a period of seven years
from the date of drug approval, the opportunity to apply for grant funding from the United States government to defray costs of
clinical trial expenses, tax credits for clinical research expenses and a potential waiver of the FDA&rsquo;s application user
fee. Orphan status is granted by the FDA to promote the development of new drug therapies for the treatment of diseases that affect
fewer than 200,000 individuals in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Seliciclib</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Although our current clinical development
priorities are focused on sapacitabine only, our second drug candidate, seliciclib, is a novel, first-in-class, orally-available,
CDK inhibitor. The compound selectively inhibits a spectrum of enzyme targets - CDK2, CDK5, CDK7 and CDK9 - that are central to
the process of cell division and cell cycle control. The target profile of seliciclib is differentiated from the published target
profile of other CDK inhibitors. Its selectivity is differentiated by recent publications by independent investigators which showed
that seliciclib (i)&nbsp;is more active against NSCLC cells with K-Ras or N-Ras mutations than those with wild type Ras and (ii)&nbsp;overcomes
resistance to letrozole (Femara&reg;) in breast cancer cells caused by a particular form of cyclin E in complex with CDK2. Preclinical
studies have shown that the drug works by inducing cell apoptosis, or cell suicide, in multiple phases of the cell cycle. To date,
seliciclib has been evaluated in approximately 450 patients in several Phase 1 and 2 studies and has shown signs of anti-cancer
activity. We have retained worldwide rights to commercialize seliciclib.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Phase 2 clinical trial in patients with
NSCLC</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Four Phase 2 trials have been conducted
in cancer patients to evaluate the tolerability and antitumor activities of seliciclib alone or in combination with standard chemotherapies
used in the treatment of advanced NSCLC or breast cancer. Interim data from two Phase 2 open-label studies of a total of 52 patients
with NSCLC, suggests that seliciclib treatment neither aggravated the known toxicities of standard first and second-line chemotherapies
nor appeared to cause unexpected toxicities, although these trials were not designed to provide statistically significant comparison.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December&nbsp;21, 2010, we announced
topline results from APPRAISE, our Phase 2b, randomized discontinuation, double-blinded, placebo-controlled, study of oral seliciclib
capsules as a third line or later treatment in patients with NSCLC. APPRAISE was led by Chandra P. Belani, M.D. at Milton S. Hershey
Medical Center, Penn State University. Topline results, after unblinding the treatment assignment among randomized patients, showed
that there was no difference between the seliciclib and placebo arms in terms of progression free survival, or PFS, (48 versus
53 days respectively) but an increase in median overall survival, or OS, was observed favoring the seliciclib arm over the placebo
arm (388 versus 218 days respectively). A total of 187 patients from 21 centers in the United States were entered in the study
after having progressed on at least two prior therapeutic regimens for their NSCLC. Of these, 53 (28%) were randomized, 27 on seliciclib
and 26 on placebo. Forty-five out of 53 randomized patients (85%) received 3 or more prior therapies and 45 out of 53 randomized
patients (85%) previously received at least one EGFR inhibitor drug (22 on seliciclib and 23 on placebo). Fourteen patients were
crossed-over to the seliciclib arm after their cancer progressed while they were receiving placebo. Study data demonstrated seliciclib
to be safe at the administered dose. There was no difference between the seliciclib and placebo arms in terms of PFS of 48 days
on the seliciclib arm versus 53 days on the placebo arm. However an increase in median overall survival was observed of 388 days
on the seliciclib arm versus 218 days on the placebo arm.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Published pre-clinical work indicated that
K-Ras mutational status, cyclin D1 and cyclin E1 protein levels correlated strongly with tumor sensitivity towards seliciclib.
In order to explore this possible molecular rationale for the difference in OS, we retrospectively collected and analyzed available
biopsy samples from APPRAISE patients who granted informed consent. As only 30 patient samples were available from the 152 APPRAISE
patients who gave consent, results of the retrospective analysis were insufficient to allow meaningful correlation. A new prospectively
designed study is required to test</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">the hypothesis that these biomarkers can predict therapeutic
effect of seliciclib in patients with advanced stage NSCLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Phase 2 clinical trials in patients with
NPC</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In November&nbsp;2007, we commenced a Phase
2 multicenter, international, blinded randomized study of oral seliciclib as a single agent in patients with nasopharyngeal cancer
, or NPC. The primary objective is to evaluate 6-month progression free survival, or PFS, of two dosing schedules of seliciclib
in approximately 75 patients with previously treated NPC. Secondary objectives are OS, response rate, response duration, safety
and tolerability. The first part of the study is designed to confirm safety and tolerability of 400 mg twice a day for four days
per week or 800 mg once a day for four days per week of seliciclib. It is open to approximately 12 to 24 patients with advanced
solid tumors as well as patients with NPC. The second part of the study, which is dependent on clinical data from the lead-in phase
and available resources to fund the study, is designed to detect major differences between the two dosing schedules of seliciclib
and a placebo group in terms of 6-month PFS in approximately 51 patients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In May&nbsp;2009, at the ASCO annual meeting,
we reported interim data from the lead-in portion of the Phase 2 study which demonstrated that oral seliciclib could be safely
administered in two dosing schedules which were well tolerated and met the criteria for proceeding to the randomized stage of the
study. Seliciclib treatment resulted in prolonged stable disease in 70% of previously-treated NPC patients, including 3 with stable
disease lasting longer than 8 months, suggesting seliciclib inhibits tumor growth in NPC. The data support further clinical development
of oral seliciclib in NPC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>CYC065</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">CYC065 is a highly-selective, orally-available,
2nd generation inhibitor of CDK -2, -5 and -9; enzyme complexes that play pivotal roles in cancer cell growth, metastatic spread
and DNA damage repair. CYC065 causes apoptotic cell death of cancer cells at sub-micromolar and antitumor efficacy has been achieved
in vivo with once a day oral dosing at well tolerated doses. CYC065 has been shown to target key components of leukemogenic and
survival pathways in acute leukemias, including the MCL1 anti-apoptotic protein, and also transcription, driven by the rearranged
mixed lineage leukemia gene. Strong preclinical data supports expansion into solid tumor indications which overexpress cyclin E
or CDK5 such as trastuzumab resistant breast cancer and metastatic pancreatic cancer. CYC065 is currently in IND-directed preclinical
development.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition CYC065 was shown to have preclinical
efficacy in proliferative kidney disease models (Cyclacel data on file). Cyclacel discovered CYC065 and other novel CDK inhibitors
in collaboration with the Cancer Research UK Centre for Cancer Therapeutics at The Institute of Cancer Research.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Plk inhibitors</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In our Plk inhibitor program, CYC140, we
have discovered potent and selective small molecule inhibitors of Plk1, a kinase active during cell division, targeting the mitotic
phase of the cell cycle. At the 2012 Annual Meeting of the AACR we reported on one of these compounds selected for further preclinical
development. In a panel of esophageal cancer cell lines, sensitivity to CYC140 correlated with p53 status. Esophageal cell lines
lacking functional p53 showed the greatest sensitivity to CYC140. Short drug exposure times demonstrated differential sensitivity
between cancerous esophageal cells versus control, outlining the potential broad therapeutic index for CYC140 in treating esophageal</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">cancers, and in particular those with non-functional p53. Status
of p53 could be used as a predictive biomarker in clinical trials to identify responders. Plk was discovered by Professor David
Glover, our Chief Scientist.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Aurora kinase inhibitors</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Aurora kinases, or AK, are a family of serine/threonine
protein kinases discovered by Professor David Glover, our Chief Scientist, which are only expressed in actively dividing cells
and are crucial for the process of cell division, or mitosis. These proteins, which have been found to be over-expressed in many
types of cancer, have generated significant scientific and commercial interest as cancer drug targets. VEGFR2 is a receptor protein
that plays a key regulatory role in the angiogenesis pathway, or blood vessel formation. VEGFR is targeted by recently approved
drugs such as bevacizumab and sorafenib indicated for the treatment of several solid cancers, such as breast, colorectal, kidney,
liver and lung. At the Annual Meeting of the AACR 2012 we reported that collaborators testing of the activity of CYC3, our novel
Aurora Kinase A specific inhibitor, in pancreatic cancer cell lines. They reported that CYC3 suppresses pancreatic cancer cell
growth, inducing mitotic arrest and apoptosis. CYC3 was also shown to act synergistically against pancreatic cancer cell lines
in combination with paclitaxel at a 10-fold lower dose resulting in comparable anti-proliferative activity to standard paclitaxel
dosing. As myelosuppression is associated with paclitaxel administration, the CYC3/low-dose paclitaxel combination was compared
with high-dose paclitaxel in an in vitro granulocyte and macrophage assay in which the CYC3/low-dose paclitaxel combination displayed
less myelotoxicity. They reported that the combination merits further investigation and has the potential for improved therapeutic
index in vivo. In June&nbsp;2007, we initiated and completed a multicenter Phase 1 pharmacologic clinical trial of CYC116, an orally-available
inhibitor of Aurora kinase A and B and VEGFR2, in patients with advanced solid tumors. Further work on this program will be undertaken
if we have a sufficient level of resources available to direct to the program. We have retained worldwide rights to commercialize
CYC116 and our other Aurora kinase inhibitors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Non-oncology Programs</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cell Cycle Inhibitors in Autoimmune&nbsp;&amp; Inflammatory
Diseases</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Preclinical results from several independent
investigators suggest that cell cycle inhibitors such as seliciclib and its backup molecules arrest the progress of the cell cycle
and may have therapeutic benefit in the treatment of patients with autoimmune and inflammatory diseases as well as in diseases
characterized by uncontrolled cell proliferation. Published data indicate potential benefit in graft-versus-host disease, idiopathic
pulmonary fibrosis, glomerulonephritis, lupus nephritis, polycystic kidney disease and rheumatoid arthritis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Corporate Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our corporate headquarters are located at
200 Connell Drive, Suite&nbsp;1500, Berkeley Heights, New Jersey, 07922, and our telephone number is (908) 517-7330. This is also
where our marketing, medical and regulatory functions are located. Our research facility is located in Dundee, Scotland, which
is also the center of our translational work and development programs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Offerings Under This Prospectus</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under this prospectus, we may offer shares
of our common stock and preferred stock, various series of debt securities and/or warrants, rights or purchase contracts to purchase
any of such securities, either individually or in units, with a total value of up to $75,000,000, from time to time at prices and
on terms to be determined by market conditions at the time of the offering.&nbsp; This prospectus provides you with a general description
of the securities we may offer. Each time we offer a type or series of securities under this prospectus, we will provide a prospectus
supplement that will describe the specific amounts, prices and other important terms of the securities, including, to the extent
applicable:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;&nbsp;</P>

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<TD STYLE="text-align: left">designation or classification;</TD>
</TR></TABLE>

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<TD STYLE="text-align: left">aggregate principal amount
or aggregate offering price;</TD>
</TR></TABLE>

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<TD STYLE="text-align: left">maturity, if applicable;</TD>
</TR></TABLE>

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<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">rates and times of payment
of interest or dividends, if any;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
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<TD STYLE="text-align: left">redemption, conversion or
sinking fund terms, if any;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">voting or other rights, if
any; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">conversion or exercise prices,
if any.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The prospectus supplement also may add,
update or change information contained in this prospectus or in documents we have incorporated by reference into this prospectus.
However, no prospectus supplement will offer a security that is not registered and described in this prospectus at the time of
its effectiveness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">We may sell the securities directly to
investors or to or through agents, underwriters or dealers. We, and our agents or underwriters, reserve the right to accept or
reject all or part of any proposed purchase of securities. If we offer securities through agents or underwriters, we will include
in the applicable prospectus supplement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the names of those agents
or underwriters;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">applicable fees, discounts
and commissions to be paid to them;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">details regarding over-allotment
options, if any; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the net proceeds to us.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus may not be used to consummate
a sale of any securities unless it is accompanied by a prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B003" TITLE="RISK FACTORS"></A><B>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Investing in our securities involves
risk. The prospectus supplement applicable to each offering of our securities will contain a discussion of the risks applicable
to an investment in Cyclacel. Prior to making a decision about investing in our securities, you should carefully consider the specific
factors set forth below as well as the specific factors discussed under the heading &ldquo;Risk Factors&rdquo; in the applicable
prospectus supplement, together with all of the other information contained or incorporated by reference in the prospectus supplement
or appearing or incorporated by reference in this prospectus. You should also consider the risks, uncertainties and assumptions
discussed under the heading &ldquo;Risk Factors&rdquo; included in our most recent Annual Report on Form&nbsp;10-K, as revised
or supplemented by our subsequent quarterly reports on Form&nbsp;10-Q or our current reports on Form&nbsp;8-K, which are on file
with the SEC and are incorporated herein by reference, and which may be amended, supplemented or superseded from time to time by
other reports we file with the SEC in the future.&nbsp; The risks and uncertainties we have described are not the only ones we
face. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our operations.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B004" TITLE="RATIO OF EARNINGS TO FIXED CHARGES"></A><B>RATIO OF EARNINGS TO FIXED CHARGES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Any time debt securities are offered pursuant
to this prospectus, we will provide a table setting forth our ratio of earnings to fixed charges on a historical basis in the applicable
prospectus supplement, if required.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B005" TITLE="SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS"></A><B>SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The SEC encourages companies to disclose
forward-looking information so that investors can better understand a company&rsquo;s future prospects and make informed investment
decisions. This prospectus contains such &ldquo;forward-looking statements&rdquo; within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements may be made directly in this prospectus, and they may also be made a part of this
prospectus by reference to other documents filed with the SEC which is known as &ldquo;incorporation by reference.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Words such as &ldquo;may,&rdquo; &ldquo;anticipate,&rdquo;
&ldquo;estimate,&rdquo; &ldquo;expects,&rdquo; &ldquo;projects,&rdquo; &ldquo;intends,&rdquo; &ldquo;plans,&rdquo; &ldquo;believes&rdquo;
and words and terms of similar substance used in connection with any discussion of future operating or financial performance identify
forward-looking statements. All forward-looking statements are management&rsquo;s present expectations of future events and are
subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the
forward-looking statements. Forward-looking statements might include one or more of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">anticipated results of financing
activities;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">anticipated agreements with
marketing partners;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">anticipated clinical trial
timelines or results;</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">anticipated research and
product development results;</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">projected regulatory timelines;</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">descriptions of plans or
objectives of management for future operations, products or services;</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">forecasts of future economic
performance; and</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">descriptions or assumptions
underlying or relating to any of the above items.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Please also see the discussion of risks
and uncertainties under the heading &ldquo;Risk Factors&rdquo; beginning on page&nbsp;13.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In light of these assumptions, risks and
uncertainties, the results and events discussed in the forward-looking statements contained in this prospectus or in any document
incorporated by reference might not occur. Investors are cautioned not to place undue reliance on the forward-looking statements,
which speak only as of the date of this prospectus or the date of the document incorporated by reference in this prospectus. We
are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether
as a result of new information, future events or otherwise. All subsequent forward-looking statements attributable to Cyclacel
or to any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred
to in this section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B006" TITLE="USE OF PROCEEDS"></A><B>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We cannot assure you that we will receive
any proceeds in connection with securities offered pursuant to this prospectus. Unless we indicate otherwise in the applicable
prospectus supplement, we currently intend to use the net proceeds from this offering for general corporate purposes, including
general working capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have not determined the amounts we plan
to spend on any of the areas listed above or the timing of these expenditures. As a result, our management will have broad discretion
to allocate the net proceeds, if any, we receive in connection with securities offered pursuant to this prospectus for any purpose.
Pending application of the net proceeds as described above, we intend to invest the net proceeds of the offering in short-term,
investment-grade, interest-bearing securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may set forth additional information
on the use of net proceeds from the sale of securities we offer under this prospectus in a prospectus supplement relating to the
specific offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B007" TITLE="PLAN OF DISTRIBUTION"></A><B>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">We may offer securities under this prospectus
from time to time pursuant to underwritten public offerings, negotiated transactions, block trades or a combination of these methods.
We may sell the securities (1)&nbsp;through underwriters or dealers, (2)&nbsp;through agents or (3)&nbsp;directly to one or more
purchasers, or through a combination of such methods. We may distribute the securities from time to time in one or more transactions
at:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">a fixed price or prices,
which may be changed from time to time;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">market prices prevailing
at the time of sale;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">prices related to the prevailing
market prices; or</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">negotiated prices.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">We may directly solicit offers to purchase
the securities being offered by this prospectus. We may also designate agents to solicit offers to purchase the securities from
time to time. We will name in a prospectus supplement any underwriter or agent involved in the offer or sale of the securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">If we utilize a dealer in the sale of the
securities being offered by this prospectus, we will sell the securities to the dealer, as principal. The dealer may then resell
the securities to the public at varying prices to be determined by the dealer at the time of resale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">If we utilize an underwriter in the sale
of the securities being offered by this prospectus, we will execute an underwriting agreement with the underwriter at the time
of sale, and we will provide the name of any underwriter in the prospectus supplement which the underwriter will use to make resales
of the securities to the public. In connection with the sale of the securities, we, or the purchasers of the securities for whom
the underwriter may act as agent, may compensate the underwriter in the form of underwriting discounts or commissions. The underwriter
may sell the securities to or through dealers, and the underwriter may compensate those dealers in the form of discounts, concessions
or commissions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">With respect to underwritten public offerings,
negotiated transactions and block trades, we will provide in the applicable prospectus supplement information regarding any compensation
we pay to underwriters, dealers or agents in connection with the offering of the securities, and any discounts, concessions or
commissions allowed by underwriters to participating dealers. Underwriters, dealers and agents participating in the distribution
of the securities may be deemed to be underwriters within the meaning of the Securities Act of 1933, as amended, or the Securities
Act, and any discounts and commissions received by them and any profit realized by them on resale of the securities may be deemed
to be underwriting discounts and commissions. We may enter into agreements to indemnify underwriters, dealers and agents against
civil liabilities, including liabilities under the Securities Act, or to contribute to payments they may be required to make in
respect thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If so indicated in the applicable prospectus
supplement, we will authorize underwriters or other persons acting as our agents to solicit offers by certain institutions to purchase
securities from us pursuant to delayed delivery contracts providing for payment and delivery on the date stated in the prospectus
supplement. Each contract will be for an amount not less than, and the aggregate amount of securities sold pursuant to such contracts
shall not be less nor more than, the respective amounts stated in the prospectus supplement. Institutions with whom the contracts,
when authorized, may be made include commercial and savings banks, insurance companies, pension funds, investment companies, educational
and charitable institutions and other institutions, but shall in all cases be subject to our approval. Delayed delivery contracts
will not be subject to any conditions except that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the purchase by an institution
of the securities covered under that contract shall not at the time of delivery be prohibited under the laws of the jurisdiction
to which that institution is subject; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">if the securities are also
being sold to underwriters acting as principals for their own account, the underwriters shall have purchased such securities not
sold for delayed delivery. The underwriters and other persons acting as our agents will not have any responsibility in respect
of the validity or performance of delayed delivery contracts.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">Shares of our common stock sold pursuant
to the registration statement of which this prospectus is a part will be authorized for quotation and trading on The NASDAQ Global
Market. The applicable prospectus supplement will contain information, where applicable, as to any other listing, if any, on The
NASDAQ Global Market or any securities market or other securities exchange of the securities covered by the prospectus supplement.
We can make no assurance as to the liquidity of or the existence of trading markets for any of the securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">In order to facilitate the offering of
the securities, certain persons participating in the offering may engage in transactions that stabilize, maintain or otherwise
affect the price of the securities. This may include over-allotments or short sales of the securities, which involve the sale by
persons participating in the offering of more securities than we sold to them. In these circumstances, these persons would cover</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">such over-allotments or short positions by making purchases
in the open market or by exercising their over-allotment option. In addition, these persons may stabilize or maintain the price
of the securities by bidding for or purchasing the applicable security in the open market or by imposing penalty bids, whereby
selling concessions allowed to dealers participating in the offering may be reclaimed if the securities sold by them are repurchased
in connection with stabilization transactions. The effect of these transactions may be to stabilize or maintain the market price
of the securities at a level above that which might otherwise prevail in the open market. These transactions may be discontinued
at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In compliance with the guidelines of the
Financial Industry Regulatory Authority,&nbsp;Inc., or FINRA, the maximum consideration or discount to be received by any FINRA
member or independent broker dealer may not exceed 8% of the aggregate amount of the securities offered pursuant to this prospectus
and any applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The underwriters, dealers and agents may
engage in other transactions with us, or perform other services for us, in the ordinary course of their business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B008" TITLE="SECURITIES WE MAY"></A><B>SECURITIES WE MAY&nbsp;OFFER</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The descriptions of the securities contained
in this prospectus, together with the applicable prospectus supplements, summarize all the material terms and provisions of the
various types of securities that we may offer. We will describe in the applicable prospectus supplement relating to any securities
the particular terms of the securities offered by that prospectus supplement. If we indicate in the applicable prospectus supplement,
the terms of the securities may differ from the terms we have summarized below. We will also include information in the prospectus
supplement, where applicable, about material United States federal income tax considerations relating to the securities, and the
securities exchange, if any, on which the securities will be listed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may sell from time to time, in one or
more offerings:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">common stock;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">preferred stock;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">warrants to purchase common
stock;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">debt securities;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">rights;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">purchase contracts; and/or</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">units.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus may not be used to consummate
a sale of securities unless it is accompanied by a prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B009" TITLE="DESCRIPTION OF COMMON STOCK"></A><B>DESCRIPTION OF COMMON STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are authorized to issue 100,000,000 shares
of common stock, $0.001 par value per share. As of April&nbsp;1, 2013, 10,831,779 shares of common stock were issued and outstanding.
The following descriptions of our common stock and provisions of our amended and restated certificate of incorporation and amended
and restated by-laws are only summaries, and we encourage you to review complete copies of these documents, which have been filed
as exhibits to our periodic reports with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Transfer Agent</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our transfer agent and registrar for our
common stock is American Stock Transfer&nbsp;&amp; Trust Company, LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Listing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our common stock is listed for quotation
on The NASDAQ Global Market under the symbol &ldquo;CYCC.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Dividends, Voting Rights and Liquidation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of common stock are entitled to
one vote for each share held of record on all matters submitted to a vote of the stockholders, and do not have cumulative voting
rights. Subject to preferences that may be applicable to any outstanding shares of preferred stock, holders of common stock are
entitled to receive ratably such dividends, if any, as may be declared from time to time by our board of directors out of funds
legally available for dividend payments. All outstanding shares of common stock are fully paid and non-assessable, and the shares
of common stock to be issued upon completion of this offering will be fully paid and non-assessable. The holders of common stock
have no preferences or rights of conversion, exchange, pre-emption or other subscription rights. There are no redemption or sinking
fund provisions applicable to the common stock. In the event of any liquidation, dissolution or winding-up of our affairs, holders
of common stock will be entitled to share ratably in our assets that are remaining after payment or provision for payment of all
of our debts and obligations and after liquidation payments to holders of outstanding shares of preferred stock, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Delaware Law and Certain Charter and By-law Provisions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The provisions of (1)&nbsp;Delaware law,
(2)&nbsp;our amended and restated certificate of incorporation, and (3)&nbsp;our amended and restated bylaws discussed below could
discourage or make it more difficult to accomplish a proxy contest or other change in our management or the acquisition of control
by a holder of a substantial amount of our voting stock. It is possible that these provisions could make it more difficult to accomplish,
or could deter, transactions that stockholders may otherwise consider to be in their best interests or in our best interests. These
provisions are intended to enhance the likelihood of continuity and stability in the composition of our board of directors and
in the policies formulated by the board of directors and to discourage certain types of transactions that may involve an actual
or threatened change of control of us. These provisions are designed to reduce our vulnerability to an unsolicited acquisition
proposal. The provisions also are intended to discourage certain tactics that may be used in proxy fights. Such provisions also
may have the effect of preventing changes in our management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Delaware Statutory Business Combinations
Provision.</I> We are subject to the anti-takeover provisions of Section&nbsp;203 of the Delaware General Corporation Law. In general,
Section&nbsp;203 prohibits a publicly-held Delaware corporation from engaging in a &ldquo;business combination&rdquo; with an &ldquo;interested
stockholder&rdquo; for a period of three years after the date of the transaction in which the person became an interested stockholder,
unless the business combination is, or the transaction in which the person became an interested stockholder was, approved in a
prescribed manner or another prescribed exception applies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For purposes of Section&nbsp;203, a &ldquo;business combination&rdquo;
is defined broadly to include a merger, asset sale or other transaction resulting in a financial benefit to the interested stockholder,
and, subject to certain exceptions, an &ldquo;interested stockholder&rdquo; is a person who, together with his or her affiliates
and associates, owns (or within three years prior, did own) 15% or more of the corporation&rsquo;s voting stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Classified Board of Directors; Removal
of Directors for Cause.</I> Our amended and restated certificate of incorporation and amended and restated bylaws provide that
our board of directors is divided into three classes, each serving staggered three-year terms ending at the annual meeting of our
stockholders. All directors elected to our classified board of directors will serve until the election and qualification of their
respective successors or their earlier resignation or removal. The board of directors is authorized to create new directorships
and to fill such positions so created and is permitted to specify the class to which any such new position is assigned. The person
filling such position would serve for the term applicable to that class. The board of directors (or its remaining members, even
if less than a quorum) is also empowered to fill vacancies on the board of directors occurring for any reason for the remainder
of the term of the class of directors in which the vacancy occurred. Members of the board of directors may only be removed for
cause and only by the affirmative vote of 80% of our outstanding voting stock. These provisions are likely to increase the time
required for stockholders to change the composition of the board of directors. For example, in general, at least two annual meetings
will be necessary for stockholders to effect a change in a majority of the members of the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Advance Notice Provisions for Stockholder
Proposals and Stockholder Nominations of Directors.</I> Our amended and restated bylaws provide that, for nominations to the board
of directors or for other business to be properly brought by a stockholder before a meeting of stockholders, the stockholder must
first have given timely notice of the proposal in writing to our Secretary. For an annual meeting, a stockholder&rsquo;s notice
generally must be delivered not less than 45&nbsp;days nor more than 75&nbsp;days prior to the anniversary of the mailing date
of the proxy statement for the previous year&rsquo;s annual meeting. For a special meeting, the notice must generally be delivered
by the later of 90&nbsp;days prior to the special meeting or ten days following the day on which public announcement of the meeting
is first made. Detailed requirements as to the form of the notice and information required in the notice are specified in the amended
and restated bylaws. If it is determined that business was not properly brought before a meeting in accordance with our bylaw provisions,
such business will not be conducted at the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Special Meetings of Stockholders.</I>
Special meetings of the stockholders may be called only by our board of directors pursuant to a resolution adopted by a majority
of the total number of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>No Stockholder Action by Written Consent.</I>
Our amended and restated certificate of incorporation and amended and restated bylaws do not permit our stockholders to act by
written consent. As a result, any action to be effected by our stockholders must be effected at a duly called annual or special
meeting of the stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Super-Majority Stockholder Vote Required
for Certain Actions.</I> The Delaware General Corporation Law provides generally that the affirmative vote of a majority of the
shares entitled to vote on any matter is required to amend a corporation&rsquo;s certificate of incorporation or bylaws, unless
the corporation&rsquo;s certificate of incorporation or bylaws, as the case may be, requires a greater percentage. Our amended
and restated certificate of incorporation requires the affirmative vote of the holders of at least 80% of our outstanding voting
stock to amend or repeal any of the provisions discussed in this section of this prospectus entitled &ldquo;Anti-Takeover Provisions&rdquo;
or to reduce the number of authorized shares of common stock or preferred stock. This 80% stockholder vote would be in addition
to any separate class vote that might in the future be required pursuant to the terms of any preferred stock that might then be
outstanding. In addition, an 80% vote is also required for any amendment to, or repeal of, our amended and restated bylaws by the
stockholders. Our amended and restated bylaws may be amended or repealed by a simple majority vote of the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Outstanding Common Stock Purchase Agreement with Aspire Capital
Fund</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>General</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December&nbsp;14, 2012, we entered into
a common stock purchase agreement (&ldquo;the <B>Purchase Agreement</B>&rdquo;) with Aspire Capital Fund, LLC (&ldquo;<B>Aspire
Capital</B>&rdquo;).&nbsp; Upon execution of the Purchase Agreement, Aspire purchased 158,982 shares of common stock for an aggregate
purchase price of $1.0 million based the closing price of our common stock December&nbsp;13, 2012, the date upon which the business
terms were agreed. Under the terms of the Purchase Agreement, Aspire has committed to purchase up to an additional 1,455,787 shares
from time to time as directed by us over the next two years at prices derived from the market prices on or near the date of each
sale. However, such commitment is limited to an additional $19.0 million of share purchases. In consideration for entering into
the Purchase Agreement, concurrent with the execution of the Purchase Agreement, we issued to 74,548 shares of our common stock
to Aspire in lieu of a commitment fee. &nbsp;Additionally, as of April&nbsp;17, 2013, we issued approximately 650,000 shares of
common stock, or an aggregate of $3.4 million to Aspire Capital under the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Purchase of Shares under the Purchase Agreement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Purchase Agreement, on any trading
day selected by us on which the closing price of our common stock is not less than $1.00 per share, we may direct Aspire Capital
to purchase up to 100,000 shares of our common stock per trading day so long as no sale pursuant to such Purchase Notice may exceed
$500,000 per trading day. The Purchase Price of such shares is equal to the lesser of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the lowest sale price of
our common stock on the purchase date; or</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the arithmetic average of
the three lowest closing sale prices for our common stock during the twelve consecutive trading days ending on the trading day
immediately preceding the purchase date.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, on any date on which we submit
a Purchase Notice to Aspire Capital in an amount equal to 100,000 shares we also have the right to direct Aspire Capital to purchase
an amount of stock equal to up to 30% of the aggregate shares of the Company&rsquo;s common stock traded on The NASDAQ Capital
Market on the next trading day, subject to the VWAP Purchase Share Volume Maximum and the VWAP Minimum Price Threshold, which is
equal to the greater of (a)&nbsp;90% of the closing price on the NASDAQ Global Market on the business day immediately preceding
the VWAP Purchase Date or (b)&nbsp;such higher price as set forth by the Company in the VWAP Purchase Notice. The VWAP Purchase
Price of such shares is the lower of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(a)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">The closing sale price on
the VWAP Purchase Date; or</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(b)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">96% of the volume-weighted
average price for our common stock traded on the NASDAQ Global Market during normal trading hours:</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">on the VWAP Purchase Date,
if the aggregate shares traded on the NASDAQ Global Market have not exceeded the VWAP Purchase Share Volume Maximum; or</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the portion of the VWAP Purchase
Date until such time as the sooner to occur of (i)&nbsp;the time at which the aggregate shares traded on the NASDAQ Global Market
has exceeded the VWAP Purchase Share Volume Maximum or (ii)&nbsp;the time at which the sale price of the common stock falls below
the VWAP Minimum Price Threshold.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Purchase Price will be adjusted for
any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction occurring
during the period(s)&nbsp;used to compute the Purchase Price. We may deliver multiple Purchase Notices and VWAP Purchase Notices
to Aspire Capital from time to time during the term of the Purchase Agreement, so long as the most recent purchase has been completed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Minimum Share Price</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 40pt">Under the Purchase Agreement, the Company
and Aspire Capital may not effect any sales of shares of our common stock on any trading day that the closing sale price of our
common stock is less than $1.00 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 40pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Compliance with The NASDAQ Global Market Price</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Purchase Agreement provides that the
number of shares that may be sold pursuant to the Purchase Agreement shall be limited to 1,689,317, or the Exchange Cap, which
represents 19.99% of our outstanding shares as of December&nbsp;14, 2012, unless shareholder approval or an exception pursuant
to the rules&nbsp;of the NASDAQ Global Market is obtained to issue more than 19.99%, to be in compliance with the applicable listing
maintenance rules&nbsp;of the NASDAQ Global Market. This limitation shall not apply if, at any time the Exchange Cap is reached
and at all times thereafter, the average price paid for all shares issued and sold under the Purchase Agreement is equal to or
greater than $6.29, the closing sale price of our common stock on December&nbsp;14, 2012. We are not required or permitted to issue
any shares of common stock under the Purchase Agreement if such issuance would breach our obligations under the rules&nbsp;or regulations
of the NASDAQ Global Market. We currently do not intend to seek stockholder approval of the transactions contemplated by the Purchase
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Beneficial Ownership Limitation</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Purchase Agreement, the Company
and Aspire Capital may not effect any sales of shares of our common stock if such shares proposed to be issued and sold, when aggregated
with all other shares of our common stock beneficially owned by Aspire Capital and its affiliates, would result in the beneficial
ownership by Aspire Capital and its affiliates of more than 19.99% of our then issued and outstanding shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Events of Default</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Generally, Aspire Capital may terminate
the Purchase Agreement upon the occurrence of any of the following events of default:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the effectiveness of any
registration statement that is required to be maintained effective pursuant to the terms of the Registration Rights Agreement
between us and Aspire Capital lapses for any reason (including, without limitation, the issuance of a stop order) or is unavailable
to Aspire Capital for sale of our shares of common stock, and such lapse or unavailability continues for a period of ten consecutive
business days or for more than an</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: left">aggregate of thirty business days in any 365-day
period, which is not in connection with a post-effective amendment to any such registration statement; provided, however, that
in connection with any post-effective amendment to such registration statement that is required to be declared effective by the
SEC, such lapse or unavailability may continue for a period of no more than twenty consecutive business days, which such period
shall be extended for an additional twenty business days if we receive a comment letter from the SEC in connection therewith;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the suspension from trading
or failure of our common stock to be listed on a Principal Market (as defined in the Purchase Agreement) for a period of three
(3)&nbsp;consecutive business days;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the delisting of our common
stock from the NASDAQ Capital Market, provided our common stock is not immediately thereafter trading on the New York Stock Exchange,
the NASDAQ Global Select Market, the NASDAQ Global Market, the NYSE Amex Equities or the OTCOB or OTCOX market places of the OTC
markets;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">our transfer agent&rsquo;s
failure to issue to Aspire Capital shares of our common stock which Aspire Capital is entitled to receive under the Purchase Agreement
within five business days after an applicable purchase date;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">any breach by us of the
representations, warranties, covenants or other term or condition contained in the Purchase Agreement or any related agreements
that would reasonably be expected to have a material adverse effect except, in the case of a breach of a covenant which is reasonably
curable, only if such breach continues for a period of at least five business days;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">if at any time the issuance
of shares of common stock upon the submission of a Purchase Notice or VWAP Purchase Notice under this Agreement would result in
the issuance of an aggregate of number of shares of common stock that would exceed the number of shares of common stock that we
may issue under this agreement without breaching our obligations under the rules&nbsp;or regulations of the NASDAQ Global Market;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">if we become insolvent
or are generally unable to pay our debts as they become due; or</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">any participation or threatened
participation in insolvency or bankruptcy proceedings by or against us.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60.5pt; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Our Termination Rights</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Purchase Agreement may be terminated
by us at any time, at our discretion, without any cost to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>No Short-Selling or Hedging by Aspire Capital</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Aspire Capital has agreed that neither it
nor any of its agents, representatives and affiliates shall engage in any direct or indirect short-selling or hedging, which establishes
a net short position with respect to our common stock during any time prior to the termination of the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Effect of Performance of the Purchase Agreement on Our Stockholders</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Purchase Agreement does not limit the
ability of Aspire Capital to sell any or all of the 1,689,317 shares registered in this offering. It is anticipated that shares
registered in this offering will be sold over a period of up to approximately 24 months from the date of this prospectus. The sale
by Aspire Capital of a significant amount of shares registered in this offering at any given time could cause the market price
of our common stock to decline or to be highly volatile. Sales to Aspire Capital by us pursuant to the Purchase Agreement also
may result in dilution to the interests of other holders of our common stock. However, we have the right to control the timing
and amount of sales of our shares to Aspire Capital, and the Purchase Agreement may be terminated by us at any time at our discretion
without any penalty or cost to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Amount of Potential Proceeds to be Received under the Purchase
Agreement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with entering into the Purchase
Agreement, we authorized the sale to Aspire Capital of up to $20.0 million of shares of our common stock. However, we estimate
that we will sell no more than 1,698,317 shares to Aspire Capital under the Purchase Agreement (exclusive of the Commitment Shares).
Subject to any required approval by our board of directors, we have the right but not the obligation to issue more than the 1,698,317
shares to Aspire Capital under the Purchase Agreement. In the event we elect to issue more than 1,689,317 shares under the Purchase
Agreement, we will be required to file a new registration statement and have it declared effective by the SEC. The number of shares
ultimately offered for sale by Aspire Capital is dependent upon the number of shares purchased by Aspire Capital under the Purchase
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P> <!-- Field: Page; Sequence: 25; Value: 1 -->
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B010" TITLE="DESCRIPTION OF PREFERRED STOCK"></A><B>DESCRIPTION OF PREFERRED STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have the authority to issue up to 5,000,000
shares of preferred stock. As of April&nbsp;17, 2013, 420,862 shares of our preferred stock were outstanding (see &ldquo;6% Convertible
Exchangeable Preferred Stock&rdquo; below). The description of preferred stock provisions set forth below is not complete and is
subject to and qualified in its entirety by reference to our certificate of incorporation and the certificate of designations relating
to each series of preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we offer a specific series of preferred
stock under this prospectus, we will describe the terms of the preferred stock in the prospectus supplement for such offering and
will file&nbsp;a copy of the certificate establishing the terms of the preferred stock with the SEC. To the extent required, this
description will include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the title and stated value;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the number of shares offered,
the liquidation preference, if any, per share and the purchase price;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the dividend rate(s), period(s)&nbsp;and/or
payment date(s), or method(s)&nbsp;of calculation for such dividends;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether dividends will
be cumulative or non-cumulative and, if cumulative, the date from which dividends will accumulate;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the procedures for any
auction and remarketing, if any;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the provisions for a sinking
fund, if any;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the provisions for redemption,
if applicable;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">any listing of the preferred
stock on any securities exchange or market;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether the preferred stock
will be convertible into our common stock, and, if applicable, the conversion price (or how it will be calculated) and conversion
period;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether the preferred stock
will be exchangeable into debt securities, and, if applicable, the exchange price (or how it will be calculated) and exchange
period;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">voting rights, if any,
of the preferred stock;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">a discussion of any material
and/or special U.S. federal income tax considerations applicable to the preferred stock;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the relative ranking and
preferences of the preferred stock as to dividend rights and rights upon liquidation, dissolution or winding up of the affairs
of Cyclacel; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">any material limitations
on issuance of any class or series of preferred stock ranking pari passu with or senior to the series of preferred stock as to
dividend rights and rights upon liquidation, dissolution or winding up of Cyclacel.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have previously issued 2,990,000 shares
of preferred stock in one series, designated as 6% Convertible Exchangeable Preferred Stock, of which 420,862 are currently outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Transfer Agent</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our transfer agent and registrar for our
6% Convertible Exchangeable Preferred Stock is American Stock Transfer&nbsp;&amp; Trust Company, LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Listing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our 6% Convertible Exchangeable Preferred
Stock is listed for quotation on The NASDAQ Global Market under the symbol &ldquo;CYCCP.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>6% Convertible Exchangeable Preferred Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our board of directors has designated 2,990,000
shares of the preferred stock that were issued as convertible preferred stock on November&nbsp;3, 2004. The shares of convertible
preferred stock are duly and validly issued, fully paid and non-assessable. These shares will not have any preemptive rights if
we issue other series of preferred stock. The convertible preferred stock is not subject to any sinking fund. We have no obligation
to retire the convertible preferred stock. The convertible preferred stock has a perpetual maturity and may remain outstanding
indefinitely, subject to the holder&rsquo;s right to convert the convertible preferred stock and our right to cause the conversion
of the convertible preferred stock and exchange or redeem the convertible preferred stock at our option. Any convertible preferred
stock converted, exchanged or redeemed or acquired by us will, upon cancellation, have the status of authorized but unissued shares
of convertible preferred stock. We will be able to reissue these cancelled shares of convertible preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Dividends</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">When and if declared by our board of directors
out of the legally available funds, holders of the convertible preferred stock are entitled to receive cash dividends at an annual
rate of 6% of the liquidation preference of the convertible preferred stock. Dividends are payable quarterly on the first day of
February, May, August&nbsp;and November. If any dividends are not declared, they will accrue and be paid at such later date, if
any, as determined by our board of directors. Dividends on the convertible preferred stock will be cumulative from the issue date.
Dividends will be payable to holders of record as they appear on our stock books not more than 60&nbsp;days nor less than 10&nbsp;days
preceding the payment dates, as fixed by our board of directors. If the convertible preferred stock is called for redemption on
a redemption date between the dividend record date and the dividend payment date and the holder does not convert the convertible
preferred stock (as described below), the holder shall receive the dividend payment together with all other accrued and unpaid
dividends on the redemption date instead of receiving the dividend on the dividend date. Dividends payable on the convertible preferred
stock for any period greater or less than a full dividend period will be computed on the basis of a 360-day year consisting of
twelve 30-day months. Accrued but unpaid dividends will not bear interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we do not pay or set aside cumulative
dividends in full on the convertible preferred stock and any other preferred stock ranking on the same basis as to dividends, all
dividends declared upon shares of the convertible preferred stock and any other preferred stock ranking on the same basis as to
dividends will be declared on a pro rata basis until all accrued dividends are paid in full. For these purposes, &ldquo;pro rata&rdquo;
means that the amount of dividends declared per share on the convertible preferred stock and any other preferred stock ranking
on the same basis as to dividends bear to each other will be the same ratio that accrued and unpaid dividends per share on the
shares of the convertible preferred stock and such</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">other preferred stock bear to each other. We will not be able
to redeem, purchase or otherwise acquire any of our stock ranking on the same basis as the convertible preferred stock as to dividends
or liquidation preferences unless we have paid or set aside full cumulative dividends, if any, accrued on all outstanding shares
of convertible preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Unless we have paid or set aside cumulative
dividends in full on the convertible preferred stock and any other of the convertible preferred stock ranking on the same basis
as to dividends:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">we may not declare or pay
or set aside dividends on common stock or any other stock ranking junior to the convertible preferred stock as to dividends or
liquidation preferences, excluding dividends or distributions of shares, options, warrants or rights to purchase common stock
or other stock ranking junior to the convertible preferred stock as to dividends; or</TD>
</TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">we will not be able to
redeem, purchase or otherwise acquire any of our other stock ranking junior to the convertible preferred stock as to dividends
or liquidation preferences, except in very limited circumstances.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.5pt; text-indent: -22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under Delaware law, we may only make dividends or distributions
to our stockholders from:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">our surplus; or</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the net profits for the
current fiscal year or the fiscal year before which the dividend or distribution is declared under certain circumstances.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.5pt; text-indent: -22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As previously disclosed, our Board of Directors
did not declare the quarterly cash dividend with respect to each of the four quarters of fiscal year 2009, the first, second and
third quarters of fiscal year 2010, the second, third and fourth quarters of fiscal year 2011 and the first, second and third quarters
of fiscal year 2012.&nbsp; On January&nbsp;11, 2013, our Board of Directors did declare a quarterly cash dividend in the amount
of $0.15 per share on the Preferred Stock with respect to the fourth quarter of fiscal year 2012.&nbsp; The cash dividend was paid
on February&nbsp;1, 2013 to the holders of record of the Preferred Stock as of the close business on January&nbsp;22, 2013. In
addition, on April&nbsp;5, 2013, the Board of Directors declared a quarterly dividend payable on May&nbsp;1, 2013 to the holders
of record of the Preferred Stock as of the close of business on April&nbsp;19, 2013. To the extent that any dividends payable on
the Preferred Stock are not paid, such unpaid dividends are accrued. As the Company failed to pay in an aggregate amount equal
to at least six quarterly dividends (whether or not consecutive) on the Preferred Stock, the size of the Company&rsquo;s Board
was increased by two members and the holders of the Preferred Stock, voting separately as a class, voted on May&nbsp;24, 2011 and
elected two directors to fill the vacancies created thereby, which directorships shall terminate when the Company pays all accrued
but unpaid dividends.&nbsp; As of April&nbsp;17, 2013, approximately $800,000 of dividends remain unpaid.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Conversion</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Conversion Rights</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of our convertible preferred stock
may convert the convertible preferred stock at any time into a number of shares of common stock determined by dividing the $10
liquidation preference by the conversion price of $164.50, being the original conversion price of $2.35 as adjusted following two
reverse stock splits, subject to adjustment as described below. This conversion price is equivalent to a conversion rate of approximately
0.06079 shares of common stock for each share of convertible preferred stock. We will not make any adjustment to the conversion
price for accrued or unpaid dividends upon conversion. We will not issue fractional shares of common stock upon conversion. However,
we will instead pay cash for each fractional share based upon the market price of the common stock on the last business day prior
to the conversion date. If we call the convertible preferred stock for redemption, the</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">holder&rsquo;s right to convert the convertible preferred stock
will expire at the close of business on the business day immediately preceding the date fixed for redemption, unless we fail to
pay the redemption price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Automatic Conversion</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Unless we redeem or exchange the convertible
preferred stock, we may elect to convert some or all of the convertible preferred stock into shares of our common stock if the
closing price of our common stock has exceeded 150% of the conversion price for at least 20 out of 30 consecutive trading days
ending within five trading days prior to the notice of automatic conversion. If we elect to convert less than all of the shares
of convertible preferred stock, we shall select the shares to be converted by lot or pro rata or in some other equitable manner
in our discretion. On or after November&nbsp;3, 2007, we may not elect to automatically convert the convertible preferred stock
if full cumulative dividends on the convertible preferred stock for all past dividend periods have not been paid or set aside for
payment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Conversion Price Adjustment &mdash; General</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The conversion price of $164.50 will be adjusted if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">we divide or distribute
common stock on shares of our common stock;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">we subdivide or combine
our common stock;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(3)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">we issue to all holders
of common stock certain rights or warrants to purchase our common stock at less than the current market price;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.35pt; text-indent: -27.35pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(4)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">we divide or distribute
to all holders of our common stock shares of our capital stock or evidences of indebtedness or assets, excluding:</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.35pt; text-indent: -27.35pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">those rights, warrants,
dividends or distributions referred to in (1)&nbsp;or (3), or</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.35pt; text-indent: -0.25in; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">dividends and distributions
paid in cash;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.35pt; text-indent: -0.25in; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(5)</FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">we made a dividend or distribution
consisting of cash to all holders of common stock;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(6)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">we purchase common stock
pursuant to a tender offer made by us or any of our subsidiaries; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.35pt; text-indent: -27.35pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(7)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">a person other than us
or any of our subsidiaries makes any payment on a tender offer or exchange offer and, as of the closing of the offer, the board
of directors is not recommending rejection of the offer. We will only make this adjustment if the tender or exchange offer increases
a person&rsquo;s ownership to more than 25% of our outstanding common stock, and only if the payment per share of common stock
exceeds the current market price of our common stock. We will not make this adjustment if the offering documents disclose our
plan to engage in any consolidation, merger, or transfer of all or substantially all of our properties and if specified conditions
are met.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.35pt; text-indent: -27.35pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we implement a stockholder rights plan,
this new rights plan must provide that, upon conversion of the existing convertible preferred stock the holders will receive, in
addition to the common stock issuable upon such conversion, the rights under such rights plan regardless of whether the rights
have separated from the common stock before the time of conversion. The distribution of rights or warrants pursuant to a stockholder
rights plan will not result in an adjustment to the conversion price of the convertible preferred stock until a specified triggering
event occurs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The occurrence and magnitude of certain
of the adjustments described above is dependent upon the current market price of our common stock. For these purposes, &ldquo;current
market price&rdquo; generally means the lesser of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the closing sale price on
certain specified dates, or</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the average of the closing
prices of the common stock for the ten trading day period immediately prior to certain specified dates.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.5pt; text-indent: -22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may make a temporary reduction in the
conversion price of the convertible preferred stock if our board of directors determines that this decrease would be in our best
interest. We may, at our option, reduce the conversion price if our board of directors deems it advisable to avoid or diminish
any income tax to holders of common stock resulting from any dividend or distribution of stock or rights to acquire stock or from
any event treated as such for income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Conversion Price Adjustment &mdash; Merger, Consolidation
or Sale of Assets</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we are involved in a transaction in which
shares of our common stock are converted into the right to receive other securities, cash or other property, or a sale or transfer
of all or substantially all of our assets under which the holders of our common stock shall be entitled to receive other securities,
cash or other property, then appropriate provision shall be made so that the shares of convertible preferred stock will convert
into:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">if the transaction is a common
stock fundamental change, as defined below, common stock of the kind received by holders of common stock as a result of common
stock fundamental change in accordance with paragraph (1)&nbsp;below under the subsection entitled &ldquo;&mdash; Fundamental
Change Conversion Price Adjustments,&rdquo; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.35pt; text-indent: -27.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">if the transaction is not
a common stock fundamental change, and subject to funds being legally available at conversion, the kind and amount of the securities,
cash or other property that would have been receivable upon the recapitalization, reclassification, consolidation, merger, sale,
transfer or share exchange by a holder of the number of shares of common stock issuable upon conversion of the convertible preferred
stock immediately prior to the recapitalization, reclassification, consolidation, merger, sale, transfer or share exchange, after
giving effect to any adjustment in the conversion price in accordance with paragraph (2)&nbsp;below under the subsection entitled
&ldquo;&mdash; Fundamental Change Conversion Price Adjustments.&rdquo;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt; text-indent: -27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The company formed by the consolidation,
merger, asset acquisition or share acquisition shall provide for this right in its organizational document. This organizational
document shall also provide for adjustments so that the organizational document shall be as nearly practicably equivalent to adjustments
in this section for events occurring after the effective date of the organizational document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following types of transactions, among
others, would be covered by this adjustment:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">we recapitalize or reclassify
our common stock, except for</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt; text-indent: -27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">a change in par value,</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72.7pt; text-indent: -9.35pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">a change from par value to
no par value,</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72.7pt; text-indent: -9.35pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">a change from no par value
to par value, or</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72.7pt; text-indent: -9.35pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">a subdivision or combination
of our common stock.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">we consolidate or merge into
any other person, or any merger of another person into us, except for a merger that does not result in a reclassification, conversion,
exchange or cancellation of common stock,</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.35pt; text-indent: -27.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(3)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">we sell, transfer or lease
all or substantially all of our assets and holders of our common stock become entitled to receive other securities, cash or other
property, or</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.35pt; text-indent: -27.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">undertake any compulsory
share exchange.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt; text-indent: -27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Fundamental Change Conversion Price Adjustments</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If a fundamental change occurs, the conversion
price will be adjusted as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">in the case of a common stock
fundamental change, the conversion price shall be the conversion price after giving effect to any other prior adjustments effected
pursuant to the preceding paragraphs, multiplied by a fraction, the numerator of which is the purchaser stock price, as defined
below, and the denominator of which is the applicable price, as defined below. However, in the event of a common stock fundamental
change in which:</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt; text-indent: -27.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">100% of the value of the
consideration received by a holder of our common stock is common stock of the successor, acquirer or other third party, and cash,
if any, paid with respect to any fractional interests in such common stock resulting from such common stock fundamental change,
and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-indent: -27.35pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">All of our common stock shall
have been exchanged for, converted into or acquired for, common stock of the successor, acquirer or other third party, and any
cash with respect to fractional interests,</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 95.05pt; text-indent: -31.7pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">the conversion price shall
be the conversion price in effect immediately prior to such common stock fundamental change multiplied by a fraction, the numerator
of which is one (1)&nbsp;and the denominator of which is the number of shares of common stock of the successor, acquirer or other
third party received by a holder of one share of our common stock as a result of the common stock fundamental change; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 95.05pt; text-indent: -31.7pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">in the case of a non-stock
fundamental change, the conversion price shall be the lower of:</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt; text-indent: -27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">the conversion price after
giving effect to any other prior adjustments effected pursuant to the preceding paragraph and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 94.5pt; text-indent: -31.5pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in; text-align: left"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">the product of</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -9pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">A.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the applicable price, and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">B.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-size: 10pt">a fraction, the numerator of which is $10 and the denominator of which is (x)&nbsp;the amount
of the redemption price for one share of convertible preferred stock if the redemption date were the date of the non-stock fundamental
change (or if the date of such non-stock fundamental change falls within the period beginning on the first issue date of the convertible
preferred stock through October&nbsp;31, 2005, the twelve-month period commencing November&nbsp;1, 2005 and the twelve-month period
commencing November&nbsp;1, 2006, the product of 106.0%, 105.4% or 104.8%, respectively, and $10) plus (y)&nbsp;any then-accrued
and unpaid distributions on one share of convertible preferred stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of convertible preferred stock may
receive significantly different consideration upon conversion depending upon whether a fundamental change is a non-stock fundamental
change or a common stock fundamental change. In the event of a non-stock fundamental change, the shares of convertible preferred
stock will convert into stock and other securities or property or assets, including</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">cash, determined by the number of shares of common stock receivable
upon conversion at the conversion price as adjusted in accordance with (2)&nbsp;above. In the event of a common stock fundamental
change, under certain circumstances, the holder of convertible preferred stock will receive different consideration depending on
whether the holder converts his or her shares of convertible preferred stock on or after the common stock fundamental change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Definitions for the Fundamental Change Adjustment Provision</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">&ldquo;<B>applicable price</B>&rdquo; means:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">in a non-stock fundamental
change in which the holders of common stock receive only cash, the amount of cash received by a holder of one share of common
stock, and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">in in the event of any other
fundamental change, the average of the daily closing price for one share of common stock during the 10 trading days immediately
prior to the record date for the determination of the holders of common stock entitled to receive cash, securities, property or
other assets in connection with the fundamental change or, if there is no such record date, prior to the date upon which the holders
of common stock shall have the right to receive such cash, securities, property or other assets.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.5pt; text-indent: -22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B>common stock fundamental change</B>&rdquo;
means any fundamental change in which more than 50% of the value, as determined in good faith by our board of directors, of the
consideration received by holders of our common stock consists of common stock that, for the 10 trading days immediately prior
to such fundamental change, has been admitted for listing or admitted for listing subject to notice of issuance on a national
securities exchange or quoted on The NASDAQ National Market, except that a fundamental change shall not be a common stock fundamental
change unless either:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">we continue to exist after
the occurrence of the fundamental change and the outstanding convertible preferred stock continues to exist as outstanding convertible
preferred stock, or</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.3pt; text-indent: -22.3pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">not later than the occurrence
of the fundamental change, the outstanding convertible preferred stock is converted into or exchanged for shares of preferred
stock, which preferred stock has rights, preferences and limitations substantially similar, but no less favorable, to those of
the convertible preferred stock.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.3pt; text-indent: -22.3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B>fundamental change</B>&rdquo;
means the occurrence of any transaction or event or series of transactions or events pursuant to which all or substantially all
of our common stock shall be exchanged for, converted into, acquired for or shall constitute solely the right to receive cash,
securities, property or other assets, whether by means of an exchange offer, liquidation, tender offer, consolidation, merger,
combination, reclassification, recapitalization or otherwise. However, for purposes of adjustment of the conversion price, in the
case of any series of transactions or events, the fundamental change shall be deemed to have occurred when substantially all of
the common stock shall have been exchanged for, converted into or acquired for, or shall constitute solely the right to receive,
such cash, securities, property or other assets, but the adjustment shall be based upon the consideration that the holders of our
common stock received in the transaction or event as a result of which more than 50% of our common stock shall have been exchanged
for, converted into or acquired for, or shall constitute solely the right to receive, such cash, securities, property or other
assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B>non-stock fundamental change</B>&rdquo;
means any fundamental change other than a common stock fundamental change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B>purchaser stock price</B>&rdquo;
means the average of the daily closing price for one share of the common stock received by holders of the common stock in the common
stock fundamental change during the 10 trading days immediately prior to the date fixed for the determination of the holders of
the common stock entitled to receive such common stock or, if there is no such date, prior to the date upon which the holders of
the common stock shall have the right to receive such common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Liquidation Rights</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the event of our voluntary or involuntary
dissolution, liquidation, or winding up, the holders of the convertible preferred stock shall receive a liquidation preference
of $10 per share and all accrued and unpaid dividends through the distribution date. Holders of any class or series of preferred
stock ranking on the same basis as your convertible preferred stock as to liquidation shall also be entitled to receive the full
respective liquidation preferences and any accrued and unpaid dividends through the distribution date. Only after the preferred
stock holders have received their liquidation preference and any accrued and unpaid dividends will we distribute assets to common
stock holders or any of our other stock ranking junior to the shares of convertible preferred stock upon liquidation. If upon such
dissolution, liquidation or winding up, we do not have enough assets to pay in full the amounts due on the convertible preferred
stock and any other preferred stock ranking on the same basis with the convertible preferred stock as to liquidation, the holders
of the convertible preferred stock and such other preferred stock will share ratably in any such distributions of our assets:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">first in proportion to the
liquidation preferences until the preferences are paid in full, and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">then in proportion to the
amounts of accrued but unpaid dividends.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.3pt; text-indent: -22.3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">After we pay any liquidation preference
and accrued dividends, holders of the convertible preferred stock will not be entitled to participate any further in the distribution
of our assets. The following events will not be deemed to be a dissolution, liquidation or winding up of Cyclacel:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the sale of all or substantially
all of the assets;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">our merger or consolidation
into or with any other corporation; or</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">our liquidation, dissolution,
winding up or reorganization immediately followed by a reincorporation as another corporation.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.5pt; text-indent: -22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Optional Redemption</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may redeem the convertible preferred
stock, out of legally available funds, in whole or in part, at our option, at the redemption prices listed below. The redemption
price for the 12-month period beginning:&nbsp; November&nbsp;1, 2012 is $10.12; November&nbsp;1, 2013 is $10.06; and $10.00 at
November&nbsp;1, 2014 and thereafter. In each case we will pay accrued and unpaid dividends to, but excluding, the redemption date.
We are required to give notice of redemption not more than 60 and not less than 20&nbsp;days before the redemption date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we redeem less than all of the shares
of convertible preferred stock, we shall select the shares to be redeemed by lot or pro rata or in some other equitable manner
in our sole discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Exchange Provisions</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may exchange the convertible preferred
stock in whole, but not in part, for debentures on any dividend payment date on or after November&nbsp;1, 2005 at the rate of $10
principal amount of debentures for each outstanding share of convertible preferred stock. Debentures will be issuable in denominations
of $1,000 and integral multiples of $1,000, as discussed in the section entitled &ldquo;Description of Debentures&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">below. If the exchange results in an amount of debentures that
is not an integral multiple of $1,000, we will pay in cash an amount in excess of the closest integral multiple of $1,000. We will
mail written notice of our intention to exchange the convertible preferred stock to each record holder not less than 30 nor more
than 60&nbsp;days prior to the exchange date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We refer to the date fixed for exchange
of the convertible preferred stock for debentures as the &ldquo;exchange date.&rdquo; On the exchange date, the holder&rsquo;s
rights as a stockholder of Cyclacel shall cease, the shares of convertible preferred stock will no longer be outstanding, and will
only represent the right to receive the debentures and any accrued and unpaid dividends, without interest. We may not exercise
our option to exchange the convertible preferred stock for the debentures if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">full cumulative dividends
on the convertible preferred stock to the exchange date have not been paid or set aside for payment, or</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">an event of default under
the indenture would occur on conversion, or has occurred and is continuing.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.3pt; text-indent: -22.3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Voting Rights</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of our convertible preferred stock
have no voting rights except as described below or as required by law. Shares of our convertible preferred stock held by us or
any entity controlled by us will not have any voting rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we have not paid dividends on the convertible
preferred stock or on any outstanding shares of preferred stock ranking on the same basis as to dividends with the convertible
preferred stock in an aggregate amount equal to at least six quarterly dividends whether or not consecutive, we will increase the
size of our board of directors by two additional directors. So long as dividends remain due and unpaid, holders of the convertible
preferred stock, voting separately as a class with holders of preferred stock ranking on the same basis as to dividends having
like voting rights, will be entitled to elect two additional directors at any meeting of stockholders at which directors are to
be elected. These directors will be appointed to classes on the board as determined by our board of directors. These voting rights
will terminate when we have declared and either paid or set aside for payment all accrued and unpaid dividends. The terms of office
of all directors so elected will terminate immediately upon the termination of these voting rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have not declared dividends with respect
to at least six quarters and, therefore, the holders of the preferred stock, voting separately as a class, are entitled to elect,
and have elected, two directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Without the vote or consent of the holders
of at least a majority of the shares of convertible preferred stock, we may not:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">adversely change the rights,
preferences and limitations of the convertible preferred stock by modifying our certificate of incorporation or bylaws, or</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">authorize, issue, reclassify
any of our authorized stock into, increase the authorized amount of, or authorize or issue any convertible obligation or security
or right to purchase, any class of stock that ranks senior to the convertible preferred stock as to dividends or distributions
of assets upon liquidation, dissolution or winding up of the stock.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.3pt; text-indent: -22.3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No class vote on the part of convertible
preferred stock shall be required (except as otherwise required by law or resolution of our board of directors) in connection with
the authorization, issuance or increase in the authorized amount of any shares of capital stock ranking junior to or on parity
with the convertible preferred stock both as to the payment of dividends and as to distribution of assets upon our</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">liquidation, dissolution or winding up, whether voluntary or
involuntary, including our common stock and the convertible preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, without the vote or consent
of the holders of at least a majority of the shares of convertible preferred stock we may not:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">enter into a share exchange
that affects the convertible preferred stock,</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">consolidate with or merge
into another entity, or</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">permit another entity to
consolidate with or merge into us.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">unless the convertible preferred stock remains outstanding and
its rights, privileges and preferences are unaffected or it is converted into or exchanged for convertible preferred stock of the
surviving entity having rights, preferences and limitations substantially similar, but no less favorable, to the convertible preferred
stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In determining a majority under these voting
provisions, holders of convertible preferred stock will vote together with holders of any other preferred stock that rank on parity
as to dividends and that have like voting rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B011" TITLE="DESCRIPTION OF WARRANTS"></A><B>DESCRIPTION OF WARRANTS</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may issue warrants to purchase shares
of our common stock, preferred stock and/or debt securities in one or more series together with other securities or separately,
as described in the applicable prospectus supplement. Below is a description of certain general terms and provisions of the warrants
that we may offer. Particular terms of the warrants will be described in the warrant agreements and the prospectus supplement relating
to the warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The applicable prospectus supplement will
contain, where applicable, the following terms of and other information relating to the warrants:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the specific designation
and aggregate number of, and the price at which we will issue, the warrants;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the currency or currency
units in which the offering price, if any, and the exercise price are payable;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the designation, amount and
terms of the securities purchasable upon exercise of the warrants;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">if applicable, the exercise
price for shares of our common stock and the number of shares of common stock to be received upon exercise of the warrants;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">if applicable, the exercise
price for shares of our preferred stock, the number of shares of preferred stock to be received upon exercise, and a description
of that series of our preferred stock;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">if applicable, the exercise
price for our debt securities, the amount of debt securities to be received upon exercise, and a description of that series of
debt securities;</TD>
</TR></TABLE>

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<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the date on which the right
to exercise the warrants will begin and the date on which that right will expire or, if you may not continuously exercise the
warrants throughout that period, the specific date or dates on which you may exercise the warrants;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether the warrants will
be issued in fully registered form or bearer form, in definitive or global form or in any combination of these forms, although,
in any case, the form of a warrant included in a unit will correspond to the form of the unit and of any security included in
that unit;</TD>
</TR></TABLE>

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<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">any applicable material U.S.
federal income tax consequences;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the identity of the warrant
agent for the warrants and of any other depositaries, execution or paying agents, transfer agents, registrars or other agents;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the proposed listing, if
any, of the warrants or any securities purchasable upon exercise of the warrants on any securities exchange;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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<TD STYLE="text-align: left">if applicable, the date from
and after which the warrants and the common stock, preferred stock and/or debt securities will be separately transferable;</TD>
</TR></TABLE>

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<TD STYLE="text-align: left">if applicable, the minimum
or maximum amount of the warrants that may be exercised at any one time;</TD>
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<TD STYLE="text-align: left">information with respect
to book-entry procedures, if any;</TD>
</TR></TABLE>

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<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the anti-dilution provisions
of the warrants, if any;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">any redemption or call provisions;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether the warrants may
be sold separately or with other securities as parts of units; and</TD>
</TR></TABLE>

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<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">any additional terms of the
warrants, including terms, procedures and limitations relating to the exchange and exercise of the warrants. We will describe
the particular terms of any warrants that we may offer under this prospectus in more detail in the applicable prospectus supplement
and the related warrant agreements and warrant certificates.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Outstanding Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following is a brief summary of the
terms of our outstanding warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<TD STYLE="text-align: left"><I>The April&nbsp;2006 Warrants
</I>&mdash; On April&nbsp;26, 2006, as part of a private placement, the Company sold warrants to purchase up to 367,347 shares
of common stock at an exercise price of $49.00 per share of common stock, such warrants expiring at 5:00&nbsp;p.m., Eastern Time,
on April&nbsp;26, 2013. As of April&nbsp;17, 2013, there were 367,347 shares available for purchase under the April&nbsp;2006
Warrants.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left"><I>The February&nbsp;2007
Warrants</I> &mdash; On February&nbsp;16, 2007, as part of a &ldquo;registered direct&rdquo; offering of our units, we sold warrants
to purchase up to an aggregate of 151,773 shares of common stock at an exercise price of $59.08 per share of common stock, such
warrants expiring at 5:00&nbsp;p.m., Eastern Time, on February&nbsp;16, 2014. As of April&nbsp;17, 2013, there were 151,773 shares
available for purchase under the February&nbsp;2007 Warrants.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left"><I>The July&nbsp;2009 Warrants
</I>&mdash; On July&nbsp;29, 2009, as part of a &ldquo;registered direct&rdquo; offering of our units, we sold warrants to purchase
up to an aggregate of 98,893 shares of common stock at an exercise price of $7.00 per share of common stock, such warrants expiring
at 5:00&nbsp;p.m., Eastern Time, on July&nbsp;29, 2014. As of April&nbsp;17, 2013, warrants to purchase up to 98,893 shares of
common stock remain outstanding. Unless otherwise specified in the applicable warrant, except upon at least 61&nbsp;days&rsquo;
prior notice from the holder to us, the holder will not have the right to exercise any portion of the warrant if the holder, together
with its affiliates, would beneficially own in excess of 9.99% of the number of shares of our common stock outstanding immediately
after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the warrants.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left"><I>The January&nbsp;13, 2010
Warrants</I> &mdash; On January&nbsp;13, 2010, as part of a &ldquo;registered direct&rdquo; offering of our units, we sold warrants
to purchase up to an aggregate of 101,785 shares of</TD>
</TR></TABLE>

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<TD STYLE="text-align: left">common stock at an exercise price of $22.82 per share
of common stock, such warrants expiring at 5:00&nbsp;p.m., Eastern Time, on January&nbsp;13, 2015. Unless otherwise specified in
the applicable warrant, except upon at least 61 days&rsquo; prior notice from the holder to us, the holder will not have the right
to exercise any portion of the warrant if the holder, together with its affiliates, would beneficially own in excess of 4.99% of
the number of shares of our common stock outstanding immediately after giving effect to the exercise, as such percentage ownership
is determined in accordance with the terms of the warrants. As of April&nbsp;17, 2013, there were 101,785 shares available for
purchase under the January&nbsp;13, 2010 Warrants.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left"><I>The January&nbsp;25, 2010
Warrants</I> &mdash; On January&nbsp;25, 2010, as part of a &ldquo;registered direct&rdquo; offering of our units, we sold warrants
to purchase up to an aggregate of 100,714 shares of common stock at an exercise price of $19.95 per share of common stock, such
warrants expiring at 5:00&nbsp;p.m. Eastern Time, on January&nbsp;25, 2015. Unless otherwise specified in the applicable warrant,
except upon at least 61 days&rsquo; prior notice from the holder to us, the holder will not have the right to exercise any portion
of the warrant if the holder, together with its affiliates, would beneficially own in excess of 4.99% of the number of shares
of our common stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in
accordance with the terms of the warrants. As of April&nbsp;17, 2013, there were 100,714 shares available for purchase under the
January&nbsp;25, 2010 Warrants. We refer to the February&nbsp;2007 Warrants, July&nbsp;2009 Warrants, January&nbsp;13, 2010 and
January&nbsp;25, 2010 Warrants collectively as the Registered Direct Warrants.</TD>
</TR></TABLE>

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<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left"><I>The Kingsbri</I>dge <I>Warrant
</I>&mdash; On November&nbsp;24, 2009, we issued to Kingsbridge Capital Limited, or Kingsbridge, an amended and restated warrant
to purchase an aggregate of 25,000 shares of our common stock at an exercise price of $9.80 per share, such warrant expiring on
June&nbsp;10, 2013. The Kingsbridge Warrant may not be exercised to the extent that such exercise would cause the warrant holder
to beneficially own (or be deemed to beneficially own) a number of shares of our common stock that would exceed 9.9% of our then
outstanding shares of common stock following such exercise. As of April&nbsp;17, 2013, there were 14,285 shares available for
purchase under the Kingsbridge Warrant.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left"><I>The Warrants and the Option
Warrants</I> &mdash; On October&nbsp;7, 2010, as part of a private placement, we sold warrants to purchase up to an aggregate
of 594,513 shares of common stock at an exercise price of $13.44 per share of common stock, such warrants expiring at 5:00&nbsp;p.m.
Eastern Time, on October&nbsp;7, 2015.&nbsp;&nbsp; We refer to these warrants as the October&nbsp;2010 Warrants.&nbsp; On October&nbsp;7,
2010, we also sold, as part of the private placement, options to purchase up to 594,513 shares of common stock and warrants to
purchase up to an aggregate of 297,258 shares of common stock at an exercise price of $13.44 per share of common stock, such warrants
expiring at 5:00&nbsp;p.m. Eastern Time on the date that is five years from the date of issuance of such warrants (the &ldquo;Option
Warrant&rdquo;).&nbsp; None of the Option Warrants were purchased.&nbsp; Unless otherwise specified in the October&nbsp;2010 Warrant,
except upon at least 61&nbsp;days&rsquo; prior notice from the holder to us, the holder will not have the right to exercise any
portion of such warrant if the holder, together with its affiliates, would beneficially own in excess of 4.99%, 9.99% or 19.99%
, as applicable, of the number of shares of our common stock outstanding immediately after giving effect to the exercise, as such
percentage ownership is determined in accordance with the terms of the October&nbsp;2010 Warrants. As of April&nbsp;17, 2013,
there were 594,513 shares available for purchase under the October&nbsp;2010 Warrants.</TD>
</TR></TABLE>

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<TD STYLE="text-align: left"><I>July&nbsp;2011 Warrants
</I>&mdash; On July&nbsp;7, 2011, as part of an underwritten offering for an aggregate of 1,088,235 units, we sold warrants to
purchase up to an aggregate of 544,117 shares of common stock, each warrant to purchase 0.5 shares of common stock at an exercise
price of $9.52 per share, such warrants expiring at 5:00&nbsp;p.m. Eastern Time on July&nbsp;7, 2016.&nbsp; We refer to these
warrants as the July&nbsp;2011 Warrants.&nbsp; As of April&nbsp;17, 2013, there were 544,117 shares available for purchase under
the October&nbsp;2010 Warrants.</TD>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Exercisability.</I> The exercise price
and number of shares of common stock issuable upon exercise of all of the warrants may be adjusted in certain circumstances, including
in the event of a stock dividend, or our recapitalization, reorganization, merger or consolidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Exercise of Warrants.</I> All of the
warrants except the October&nbsp;2010 Warrants may be exercised upon surrender of the warrant on or prior to the expiration date
at the offices of the warrant agent, with the exercise form set forth in the warrant completed and executed as indicated, either
accompanied by full payment of the exercise price, by certified check payable to us, for the number of warrants being exercised
or, under certain circumstances, by means of a cashless exercise, as provided for in the warrant. Notwithstanding the foregoing,
the holder will not be required to physically surrender the warrant unless and until the aggregate warrant shares represented by
the warrant are exercised. The warrants and Option Warrants may be exercised in the same manner, except that such securities are
exercisable by delivery of a written notice, with payment made within two trading days of the delivery of the notice of exercise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Cashless Exercise.</I> If, at any time
during the exercisability period of any of the warrants, the holder is not permitted to sell shares of common stock issuable upon
exercise of the relevant warrant pursuant to the registration statement or an exemption from registration is not available, and
the fair market value of our common stock exceeds the exercise price of the warrants, the holder may elect to effect a cashless
exercise of the warrants, in whole or in part, by surrendering the warrants to us, together with delivery to us of a duly executed
exercise notice, and canceling a portion of the relevant warrant in payment of the purchase price payable in respect of the number
of shares of our common stock purchased upon such exercise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Buy-in Right.</I> If we fail to issue
shares of common stock to the holder of a warrant within three business days of our receipt of a duly executed exercise notice,
then the holder or any third party on behalf of the holder may, for such holder&rsquo;s account, purchase in an open market transaction
or otherwise, shares of common stock to deliver in satisfaction of a sale by the holder of shares of common stock issuable upon
such exercise that the holder anticipated receiving from us. At such holder&rsquo;s request and in its discretion, either (i)&nbsp;pay
cash to the holder in an amount equal to the holder&rsquo;s total purchase price (including brokerage commissions, if any) for
the shares of common stock so purchased (the &ldquo;Buy-In Price&rdquo;), at which point the Company&rsquo;s obligation to deliver
such certificate (and to issue such shares of common stock) shall terminate, or (ii)&nbsp;promptly honor its obligation to deliver
to the holder a certificate or certificates representing such shares and pay cash to the holder in an amount equal to the excess
(if any) of the Buy-In Price over the product of (A)&nbsp;such number of shares of common stock, times (B)&nbsp;the Closing Bid
Price (as defined in such warrants) on the date of exercise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Transferability.</I> Subject to applicable
laws and the restriction on transfer set forth in the relevant subscription agreement, none of the warrants may be transferred
by the holder without our consent, such consent not to be unreasonably withheld or delayed, upon surrender of the warrants to us
together with the appropriate instruments of transfer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Exchange Listing.</I> We do not plan
on making an application to list any of the warrants on The NASDAQ Global Market, any national securities exchange or other nationally
recognized trading system. The common stock underlying the warrants is listed on the NASDAQ Global Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Fundamental Transactions.</I> In the
event of any fundamental transaction, as described in the warrants, and generally including any merger with or into another entity
(whether or not we are the surviving entity but excluding a migratory merger effected solely for the purpose of changing our jurisdiction
of incorporation), sale of all or substantially all of our assets, tender offer or exchange offer, our consummation of a stock
purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or
scheme of arrangement) or reclassification of our common stock, then upon any subsequent exercise of a warrant, the holder shall
have the right to receive, as alternative consideration, for each share of our common stock that would have been issuable upon
such exercise immediately prior to the occurrence of such fundamental transaction, the number of shares of common stock of the
successor or acquiring corporation or of Cyclacel, if it is the surviving corporation, and any additional consideration receivable
upon or as a result of such transaction by a holder of the number of shares of our common stock for which the warrant is exercisable
immediately prior to such event. Notwithstanding the foregoing, the holders of the warrants and the Option Warrants, in the event
of a fundamental transaction (i)&nbsp;in which holders of common stock receive all cash or substantially all cash or (ii)&nbsp;with
a person whose common stock or equivalent equity security is not quoted or listed on an eligible market, as defined in such warrant,
and, in either case, at the request of the holder delivered within 30&nbsp;days after consummation of the fundamental transaction,
we (or our successor entity) must purchase such warrant from the holder by paying to the holder, within seven business days after
such request (or, if later, on the effective date of the fundamental transaction), cash in an amount equal to the Black Scholes
value, as defined in such warrant, of the remaining unexercised portion of such warrant or Option Warrant on the date of such fundamental
transaction.&nbsp; Fundamental transactions shall not include any transaction in which the Company is not a voluntary party thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Waivers and Amendments.</I> The provisions
of each warrant may be amended and we may not take any action prohibited by such warrant, or omit to perform any act required to
be performed pursuant to such warrant, only with the written consent of the holder of that warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Rights as a Stockholder.</I> The warrant
holders do not have the rights or privileges of holders of common stock, including any voting rights, until they exercise their
warrants and receive shares of common stock. After the issuance of shares of common stock upon exercise of the warrants, each holder
will be entitled to one vote for each share held of record on all matters to be voted on by stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>No Fractional Shares.</I> No fractional
shares will be issued upon exercise of any of the warrants. With respect to all warrants, except the October&nbsp;2010 Warrants,
we will pay to the holder thereof, in lieu of the issuance of any fractional share which is otherwise issuable to the warrant holder,
an amount in cash based on the market value of the common stock on the last trading day prior to the exercise date. With respect
to the October&nbsp;2010 Warrants, the number of shares of common stock to be issued will be rounded up to the nearest whole number.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B012" TITLE="DESCRIPTION OF DEBT SECURITIES"></A><B>DESCRIPTION OF DEBT SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following description, together with
the additional information we include in any applicable prospectus supplements, summarizes the material terms and provisions of
the debt securities that we may offer under this prospectus. While the terms we have summarized below will apply generally to any
future debt securities we may offer pursuant to this prospectus, we will describe the particular terms of any debt securities that
we may offer in more detail in the applicable prospectus supplement. If we so indicate in a prospectus supplement, the terms of
any debt securities offered under such prospectus supplement may differ from the terms we describe below, and to the extent the
terms set forth in a prospectus supplement differ from the terms described below, the terms set forth in the prospectus supplement
shall control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may sell from time to time, in one or
more offerings under this prospectus, debt securities, which may be senior or subordinated. We will issue any such senior debt
securities under a senior indenture that we will enter into with a trustee to be named in the senior indenture. We will issue any
such subordinated debt securities under a subordinated indenture, which we will enter into with a trustee to be named in the subordinated
indenture. We have filed forms of these documents as exhibits to the registration statement, of which this prospectus is a part.
We use the term &ldquo;indentures&rdquo; to refer to either the senior indenture or the subordinated indenture, as applicable.
The indentures will be qualified under the Trust Indenture Act of 1939, as in effect on the date of the indenture. We use the term
&ldquo;debenture trustee&rdquo; to refer to either the trustee under the senior indenture or the trustee under the subordinated
indenture, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following summaries of material provisions
of the senior debt securities, the subordinated debt securities and the indentures are subject to, and qualified in their entirety
by reference to, all the provisions of the indenture applicable to a particular series of debt securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each indenture provides that debt securities
may be issued from time to time in one or more series and may be denominated and payable in foreign currencies or units based on
or relating to foreign currencies. Neither indenture limits the amount of debt securities that may be issued thereunder, and each
indenture provides that the specific terms of any series of debt securities shall be set forth in, or determined pursuant to, an
authorizing resolution and/or a supplemental indenture, if any, relating to such series.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will describe in each prospectus supplement
the following terms relating to a series of debt securities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the title or designation;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the aggregate principal amount
and any limit on the amount that may be issued;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the currency or units based
on or relating to currencies in which debt securities of such series are denominated and the currency or units in which principal
or interest or both will or may be payable;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether we will issue the
series of debt securities in global form, the terms of any global securities and who the depositary will be;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the maturity date and the
date or dates on which principal will be payable;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the interest rate, which
may be fixed or variable, or the method for determining the rate and the date interest will begin to accrue, the date or dates
interest will be payable and the record dates for interest payment dates or the method for determining such dates;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether or not the debt securities
will be secured or unsecured, and the terms of any secured debt;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the terms of the subordination
of any series of subordinated debt;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the place or places where
payments will be payable;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">our right, if any, to defer
payment of interest and the maximum length of any such deferral period;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the date, if any, after which,
and the price at which, we may, at our option, redeem the series of debt securities pursuant to any optional redemption provisions;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the date, if any, on which,
and the price at which we are obligated, pursuant to any mandatory sinking fund provisions or otherwise, to redeem, or at the
holder&rsquo;s option to purchase, the series of debt securities;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether the indenture will
restrict our ability to pay dividends, or will require us to maintain any asset ratios or reserves;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether we will be restricted
from incurring any additional indebtedness;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">a discussion on any material
or special U.S. federal income tax considerations applicable to a series of debt securities;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the denominations in which
we will issue the series of debt securities, if other than denominations of $1,000 and any integral multiple thereof; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">any other specific terms,
preferences, rights or limitations of, or restrictions on, the debt securities.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may issue debt securities that provide
for an amount less than their stated principal amount to be due and payable upon declaration of acceleration of their maturity
pursuant to the terms of the indenture. We will provide you with information on the federal income tax considerations and other
special considerations applicable to any of these debt securities in the applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Conversion or Exchange Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will set forth in the prospectus supplement
the terms, if any, on which a series of debt securities may be convertible into or exchangeable for our common stock or our other
securities. We will include provisions as to whether conversion or exchange is mandatory, at the option of the holder or at</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">our option. We may include provisions pursuant to which the
number of shares of our common stock or our other securities that the holders of the series of debt securities receive would be
subject to adjustment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Consolidation, Merger or Sale; No Protection in Event of
a Change of Control or Highly Leveraged Transaction</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The indentures do not contain any covenant
that restricts our ability to merge or consolidate, or sell, convey, transfer or otherwise dispose of all or substantially all
of our assets. However, any successor to or acquirer of such assets must assume all of our obligations under the indentures or
the debt securities, as appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Unless we state otherwise in the applicable
prospectus supplement, the debt securities will not contain any provisions that may afford holders of the debt securities protection
in the event we have a change of control or in the event of a highly leveraged transaction (whether or not such transaction results
in a change of control), which could adversely affect holders of debt securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Events of Default Under the Indenture</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following are events of default under
the indentures with respect to any series of debt securities that we may issue:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">if we fail to pay interest
when due and our failure continues for 90&nbsp;days and the time for payment has not been extended or deferred;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">if we fail to pay the principal,
or premium, if any, when due and the time for payment has not been extended or delayed;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">if we fail to observe or
perform any other covenant set forth in the debt securities of such series or the applicable indentures, other than a covenant
specifically relating to and for the benefit of holders of another series of debt securities, and our failure continues for 90&nbsp;days
after we receive written notice from the debenture trustee or holders of not less than a majority in aggregate principal amount
of the outstanding debt securities of the applicable series; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">if specified events of bankruptcy,
insolvency or reorganization occur as to us.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No event of default with respect to a particular
series of debt securities (except as to certain events of bankruptcy, insolvency or reorganization) necessarily constitutes an
event of default with respect to any other series of debt securities. The occurrence of an event of default may constitute an event
of default under any bank credit agreements we may have in existence from time to time. In addition, the occurrence of certain
events of default or an acceleration under the indenture may constitute an event of default under certain of our other indebtedness
outstanding from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If an event of default with respect to debt
securities of any series at the time outstanding occurs and is continuing, then the trustee or the holders of not less than a majority
in principal amount of the outstanding debt securities of that series may, by a notice in writing to us (and to the debenture trustee
if given by the holders), declare to be due and payable immediately the principal (or, if the debt securities of that series are
discount securities, that portion of the principal amount as may be specified in the terms of that series) of and premium and accrued
and unpaid interest, if any, on all debt securities of that series.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Before a judgment or decree for payment of the money due has
been obtained with respect to debt securities of any series, the holders of a majority in principal amount of the outstanding debt
securities of that series (or, at a meeting of holders of such series at which a quorum is present, the holders of a majority in
principal amount of the debt securities of such series represented at such meeting) may rescind and annul the acceleration if all
events of default, other than the non-payment of accelerated principal, premium, if any, and interest, if any, with respect to
debt securities of that series, have been cured or waived as provided in the applicable indenture (including payments or deposits
in respect of principal, premium or interest that had become due other than as a result of such acceleration). We refer you to
the prospectus supplement relating to any series of debt securities that are discount securities for the particular provisions
relating to acceleration of a portion of the principal amount of such discount securities upon the occurrence of an event of default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Subject to the terms of the indentures,
if an event of default under an indenture shall occur and be continuing, the debenture trustee will be under no obligation to exercise
any of its rights or powers under such indenture at the request or direction of any of the holders of the applicable series of
debt securities, unless such holders have offered the debenture trustee reasonable indemnity. The holders of a majority in principal
amount of the outstanding debt securities of any series will have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the debenture trustee, or exercising any trust or power conferred on the debenture trustee,
with respect to the debt securities of that series, provided that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the direction so given by
the holder is not in conflict with any law or the applicable indenture; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">subject to its duties under
the Trust Indenture Act, the debenture trustee need not take any action that might involve it in personal liability or might be
unduly prejudicial to the holders not involved in the proceeding.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A holder of the debt securities of any series
will only have the right to institute a proceeding under the indentures or to appoint a receiver or trustee, or to seek other remedies
if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the holder previously has
given written notice to the debenture trustee of a continuing event of default with respect to that series;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the holders of at least a
majority in aggregate principal amount of the outstanding debt securities of that series have made written request, and such holders
have offered reasonable indemnity to the debenture trustee to institute the proceeding as trustee; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the debenture trustee does
not institute the proceeding, and does not receive from the holders of a majority in aggregate principal amount of the outstanding
debt securities of that series (or at a meeting of holders of such series at which a quorum is present, the holders of a majority
in principal amount of the debt securities of such series represented at such meeting) other conflicting directions within 60&nbsp;days
after the notice, request and offer.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These limitations do not apply to a suit
instituted by a holder of debt securities if we default in the payment of the principal, premium, if any, or interest on, the debt
securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will periodically file statements with
the applicable debenture trustee regarding our compliance with specified covenants in the applicable indenture.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Modification of Indenture; Waiver</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The debenture trustee and we may change
the applicable indenture without the consent of any holders with respect to specific matters, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">to fix any ambiguity, defect
or inconsistency in the indenture; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">to change anything that does
not materially adversely affect the interests of any holder of debt securities of any series issued pursuant to such indenture.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, under the indentures, the rights
of holders of a series of debt securities may be changed by us and the debenture trustee with the written consent of the holders
of at least a majority in aggregate principal amount of the outstanding debt securities of each series (or, at a meeting of holders
of such series at which a quorum is present, the holders of a majority in principal amount of the debt securities of such series
represented at such meeting) that is affected. However, the debenture trustee and we may make the following changes only with the
consent of each holder of any outstanding debt securities affected:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">extending the fixed maturity
of the series of debt securities;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">reducing the principal amount,
reducing the rate of or extending the time of payment of interest, or any premium payable upon the redemption of any debt securities;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">reducing the principal amount
of discount securities payable upon acceleration of maturity;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">making the principal of or
premium or interest on any debt security payable in currency other than that stated in the debt security; or</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">reducing the percentage of
debt securities, the holders of which are required to consent to any amendment or waiver.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Except for certain specified provisions,
the holders of at least a majority in principal amount of the outstanding debt securities of any series (or, at a meeting of holders
of such series at which a quorum is present, the holders of a majority in principal amount of the debt securities of such series
represented at such meeting) may on behalf of the holders of all debt securities of that series waive our compliance with provisions
of the indenture. The holders of a majority in principal amount of the outstanding debt securities of any series may on behalf
of the holders of all the debt securities of such series waive any past default under the indenture with respect to that series
and its consequences, except a default in the payment of the principal of, premium or any interest on any debt security of that
series or in respect of a covenant or provision, which cannot be modified or amended without the consent of the holder of each
outstanding debt security of the series affected; provided, however, that the holders of a majority in principal amount of the
outstanding debt securities of any series may rescind an acceleration and its consequences, including any related payment default
that resulted from the acceleration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Discharge</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each indenture provides that we can elect
to be discharged from our obligations with respect to one or more series of debt securities, except for obligations to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">register the transfer or
exchange of debt securities of the series;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">replace stolen, lost or mutilated
debt securities of the series;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">maintain paying agencies;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">hold monies for payment in
trust;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">compensate and indemnify
the trustee; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">appoint any successor trustee.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In order to exercise our rights to be discharged
with respect to a series, we must deposit with the trustee money or government obligations sufficient to pay all the principal
of, the premium, if any, and interest on, the debt securities of the series on the dates payments are due.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Form, Exchange and Transfer</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will issue the debt securities of each
series only in fully registered form without coupons and, unless we otherwise specify in the applicable prospectus supplement,
in denominations of $1,000 and any integral multiple thereof. The indentures provide that we may issue debt securities of a series
in temporary or permanent global form and as book-entry securities that will be deposited with, or on behalf of, The Depository
Trust Company or another depositary named by us and identified in a prospectus supplement with respect to that series.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At the option of the holder, subject to
the terms of the indentures and the limitations applicable to global securities described in the applicable prospectus supplement,
the holder of the debt securities of any series can exchange the debt securities for other debt securities of the same series,
in any authorized denomination and of like tenor and aggregate principal amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Subject to the terms of the indentures and
the limitations applicable to global securities set forth in the applicable prospectus supplement, holders of the debt securities
may present the debt securities for exchange or for registration of transfer, duly endorsed or with the form of transfer endorsed
thereon duly executed if so required by us or the security registrar, at the office of the security registrar or at the office
of any transfer agent designated by us for this purpose. Unless otherwise provided in the debt securities that the holder presents
for transfer or exchange or in the applicable indenture, we will make no service charge for any registration of transfer or exchange,
but we may require payment of any taxes or other governmental charges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will name in the applicable prospectus
supplement the security registrar, and any transfer agent in addition to the security registrar, that we initially designate for
any debt securities. We may at any time designate additional transfer agents or rescind the designation of any transfer agent or
approve a change in the office through which any transfer agent acts, except that we will be required to maintain a transfer agent
in each place of payment for the debt securities of each series.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we elect to redeem the debt securities
of any series, we will not be required to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">issue, register the transfer
of, or exchange any debt securities of that series during a period beginning at the opening of business 15&nbsp;days before the
day of mailing of a notice of redemption of any debt securities that may be selected for redemption and ending at the close of
business on the day of the mailing; or</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">register the transfer of
or exchange any debt securities so selected for redemption, in whole or in part, except the unredeemed portion of any debt securities
we are redeeming in part.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Information Concerning the Debenture Trustee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The debenture trustee, other than during
the occurrence and continuance of an event of default under the applicable indenture, undertakes to perform only those duties as
are specifically set forth in the applicable indenture. Upon an event of default under an indenture, the debenture trustee under
such indenture must use the same degree of care as a prudent person would exercise or use in the conduct of his or her own affairs.
Subject to this provision, the debenture trustee is under no obligation to exercise any of the powers given it by the indentures
at the request of any holder of debt securities unless it is offered reasonable security and indemnity against the costs, expenses
and liabilities that it might incur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Payment and Paying Agents</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Unless we otherwise indicate in the applicable
prospectus supplement, we will make payment of the interest on any debt securities on any interest payment date to the person in
whose name the debt securities, or one or more predecessor securities, are registered at the close of business on the regular record
date for the interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will pay principal of and any premium
and interest on the debt securities of a particular series at the office of the paying agents designated by us, except that unless
we otherwise indicate in the applicable prospectus supplement, will we make interest payments by check which we will mail to the
holder. Unless we otherwise indicate in a prospectus supplement, we will designate the corporate trust office of the debenture
trustee in the City of New York as our sole paying agent for payments with respect to debt securities of each series. We will name
in the applicable prospectus supplement any other paying agents that we initially designate for the debt securities of a particular
series. We will maintain a paying agent in each place of payment for the debt securities of a particular series.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">All money we pay to a paying agent or the
debenture trustee for the payment of the principal of or any premium or interest on any debt securities which remains unclaimed
at the end of two years after such principal, premium or interest has become due and payable will be repaid to us, and the holder
of the security thereafter may look only to us for payment thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Governing Law</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The indentures and the debt securities will
be governed by and construed in accordance with the laws of the State of New York, except to the extent that the Trust Indenture
Act is applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Subordination of Subordinated Debt Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our obligations pursuant to any subordinated
debt securities will be unsecured and will be subordinate and junior in priority of payment to certain of our other indebtedness
to the extent described in a prospectus supplement. The subordinated indenture does not limit the amount of senior indebtedness
we may incur. It also does not limit us from issuing any other secured or unsecured debt.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B013" TITLE="DESCRIPTION OF RIGHTS"></A><B>DESCRIPTION OF RIGHTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may issue rights to our stockholders
to purchase shares of our common stock, preferred stock or the other securities described in this prospectus. We may offer rights
separately or together with one or more additional rights, debt securities, preferred stock, common stock, warrants or purchase
contracts, or any combination of those securities in the form of units, as described in the applicable prospectus supplement. Each
series of rights will be issued under a separate rights agreement to be entered into between us and a bank or trust company, as
rights agent. The rights agent will act solely as our agent in connection with the certificates relating to the rights of the series
of certificates and will not assume any obligation or relationship of agency or trust for or with any holders of rights certificates
or beneficial owners of rights. The following description sets forth certain general terms and provisions of the rights to which
any prospectus supplement may relate. The particular terms of the rights to which any prospectus supplement may relate and the
extent, if any, to which the general provisions may apply to the rights so offered will be described in the applicable prospectus
supplement. To the extent that any particular terms of the rights, rights agreement or rights certificates described in a prospectus
supplement differ from any of the terms described below, then the terms described below will be deemed to have been superseded
by that prospectus supplement. We encourage you to read the applicable rights agreement and rights certificate for additional information
before you decide whether to purchase any of our rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">We will provide in a prospectus supplement
the following terms of the rights being issued:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the date of determining the
stockholders entitled to the rights distribution;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the aggregate number of shares
of common stock, preferred stock or other securities purchasable upon exercise of the rights;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the exercise price;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the aggregate number of rights
issued;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether the rights are transferrable
and the date, if any, on and after which the rights may be separately transferred;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the date on which the right
to exercise the rights will commence, and the date on which the right to exercise the rights will expire;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the method by which holders
of rights will be entitled to exercise;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the conditions to the completion
of the offering, if any;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">the withdrawal, termination
and cancellation rights, if any;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether there are any backstop
or standby purchaser or purchasers and the terms of their commitment, if any;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether stockholders are
entitled to oversubscription rights, if any;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>





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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">any applicable U.S. federal
income tax considerations; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">any other terms of the rights,
including terms, procedures and limitations relating to the distribution, exchange and exercise of the rights, as applicable.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each right will entitle the holder of rights
to purchase for cash the principal amount of shares of common stock, preferred stock or other securities at the exercise price
provided in the applicable prospectus supplement. Rights may be exercised at any time up to the close of business on the expiration
date for the rights provided in the applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders may exercise rights as described
in the applicable prospectus supplement. Upon receipt of payment and the rights certificate properly completed and duly executed
at the corporate trust office of the rights agent or any other office indicated in the prospectus supplement, we will, as soon
as practicable, forward the shares of common stock, preferred stock or other securities, as applicable, purchasable upon exercise
of the rights. If less than all of the rights issued in any rights offering are exercised, we may offer any unsubscribed securities
directly to persons other than stockholders, to or through agents, underwriters or dealers or through a combination of such methods,
including pursuant to standby arrangements, as described in the applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10.1pt; text-indent: -10.1pt"><B>Rights Agent</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10.1pt; text-indent: -10.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The rights agent for any rights we offer
will be set forth in the applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B014" TITLE="DESCRIPTION OF PURCHASE CONTRACTS"></A><B>DESCRIPTION OF PURCHASE CONTRACTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may issue purchase contracts, including
contracts obligating holders to purchase from us, and for us to sell to holders, a specific or variable number of our debt securities,
shares of common stock, preferred stock, warrants or rights, or securities of an entity unaffiliated with us, or any combination
of the above, at a future date or dates. Alternatively, the purchase contracts may obligate us to purchase from holders, and obligate
holders to sell to us, a specific or variable number of our debt securities, shares of common stock, preferred stock, warrants,
rights or other property, or any combination of the above. The price of the securities or other property subject to the purchase
contracts may be fixed at the time the purchase contracts are issued or may be determined by reference to a specific formula described
in the purchase contracts. We may issue purchase contracts separately or as a part of units each consisting of a purchase contract
and one or more of our other securities described in this prospectus or securities of third parties, including U.S.&nbsp;Treasury
securities, securing the holder&rsquo;s obligations under the purchase contract. The purchase contracts may require us to make
periodic payments to holders or vice versa and the payments may be unsecured or pre-funded on some basis. The purchase contracts
may require holders to secure the holder&rsquo;s obligations in a manner specified in the applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The applicable prospectus supplement will
describe the terms of any purchase contracts in respect of which this prospectus is being delivered, including, to the extent applicable,
the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether the purchase contracts
obligate the holder or us to purchase or sell, or both purchase and sell, the securities subject to purchase under the purchase
contract, and the nature and amount of each of those securities, or the method of determining those amounts;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether the purchase contracts
are to be prepaid;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether the purchase contracts
are to be settled by delivery, or by reference or linkage to the value, performance or level of the securities subject to purchase
under the purchase contract;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">any acceleration, cancellation,
termination or other provisions relating to the settlement of the purchase contracts;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">any applicable U.S. federal
income tax considerations; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">whether the purchase contracts
will be issued in fully registered or global form.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81.35pt; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The preceding description sets forth certain
general terms and provisions of the purchase contracts to which any prospectus supplement may relate. The particular terms of the
purchase contracts to which any prospectus supplement may relate and the extent, if any, to which the general provisions may apply
to the purchase contracts so offered will be described in the applicable prospectus supplement. To the extent that any particular
terms of the purchase contracts described in a prospectus supplement differ from any of the terms described above, then the terms
described above will be deemed to have been superseded by that prospectus supplement. We encourage you to read the applicable purchase
contract for additional information before you decide whether to purchase any of our purchase contracts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B015" TITLE="DESCRIPTION OF UNITS"></A><B>DESCRIPTION OF UNITS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We may issue units consisting of common
stock, preferred stock, warrants, rights, purchase contracts and/or debt securities for the purchase of common stock, preferred
stock, warrants, rights, purchase contracts and/or debt securities in one or more series. In this prospectus, we have summarized
certain general features of the units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will evidence each series of units by
unit certificates that we will issue under a separate agreement. We will enter into the unit agreements with a unit agent. Each
unit agent will be a bank or trust company that we select. We will indicate the name and address of the unit agent in the applicable
prospectus supplement relating to a particular series of units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B016" TITLE="LEGAL MATTERS"></A><B>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mintz, Levin, Cohn, Ferris, Glovsky and
Popeo, P.C., New York, New York, will provide us with an opinion as to the legal matters in connection with the securities we are
offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B017" TITLE="EXPERTS"></A><B>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The consolidated financial statements of
Cyclacel Pharmaceuticals,&nbsp;Inc. for the year ended December&nbsp;31, 2010 and the period from August&nbsp;13, 1996 (inception)
to December&nbsp;31,&nbsp;2010, appearing in Cyclacel Pharmaceuticals,&nbsp;Inc.&rsquo;s Annual Report on Form&nbsp;10-K for the
year ended December&nbsp;31, 2012, have been audited by Ernst&nbsp;&amp; Young LLP (UK), independent registered public accounting
firm, as set forth in its report thereon, included therein, and incorporated herein by reference. Such consolidated financial statements
are incorporated herein by reference in reliance upon such report given on the authority of such firm as experts in accounting
and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The consolidated financial statements of
Cyclacel Pharmaceuticals,&nbsp;Inc. at December&nbsp;31, 2012, and for each of the two years in the period ended December&nbsp;31,
2012 and for the period from August&nbsp;13, 1996 (inception) to December&nbsp;31, 2012 incorporated by reference in this Pre-Effective
Amendment No. 1 to the Prospectus and Registration Statement have been audited by Ernst&nbsp;&amp; Young LLP (US), independent
registered public accounting firm, as set forth in their report thereon incorporated by reference elsewhere herein which, as to
the period from August&nbsp;13, 1996 (inception) to December&nbsp;31, 2012, are based in part on the report of Ernst&nbsp;&amp;
Young LLP (UK), independent registered public accounting firm. The financial statements referred to above are included in reliance
upon such reports given on the authority of such firms as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B018" TITLE="WHERE YOU CAN FIND MORE INFORMATION"></A><B>WHERE YOU CAN FIND MORE INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We file annual, quarterly and current reports
and other information with the SEC. These filings contain important information that does not appear in this prospectus. For further
information about us, you may read and copy any reports, statements and other information filed by us at the SEC&rsquo;s Public
Reference Room&nbsp;at 100 F Street, N.E., Room&nbsp;1580, Washington, D.C. 20549-0102. You may obtain further information on the
operation of the Public Reference Room&nbsp;by calling the SEC at 1-800-SEC-0330. Our SEC filings are also available on the SEC
Internet site at http://www.sec.gov, which contains reports, proxy and information statements, and other information regarding
issuers that file electronically with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_B019" TITLE="INCORPORATION OF DOCUMENTS BY REFERENCE"></A><B>INCORPORATION OF DOCUMENTS BY REFERENCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The SEC allows us to &ldquo;incorporate
by reference&rdquo; the information we file with it, which means that we can disclose important information to you by referring
you to those documents. The information incorporated by reference is considered to be part of this prospectus and information we
file later with the SEC will automatically update and supersede this information. The documents we are incorporating by reference
as of their respective dates of filing are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">Our Annual Report on Form&nbsp;10-K
for the year ended December&nbsp;31, 2012 filed on April&nbsp;1, 2013;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">Our&nbsp; Current Reports
on Form&nbsp;8-K filed on January&nbsp;17, 2013, February&nbsp;1, 2013 and March&nbsp;13, 2013, March&nbsp;27, 2013, March&nbsp;28,
2013, April&nbsp;4, 2013 and April 8, 2013;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">Our definitive Proxy Statement
relating to our 2013 annual meeting of stockholders filed on April&nbsp;3, 2013;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">The description of our common
stock contained in our Registration Statement on Form&nbsp;8-A, filed on March&nbsp;8, 2004 (File No.&nbsp;000-50626), which incorporates
by reference the description of the shares of our common stock contained in our Registration Statement on Form&nbsp;S-1 (File
No.&nbsp;333-109653) filed on December&nbsp;22, 2003 and declared effective by the SEC on March&nbsp;17, 2004, and any amendment
or reports filed with the SEC for purposes of updating such description; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
<TD STYLE="text-align: left">The description of our preferred
stock contained in our Registration Statement on Form&nbsp;8-A, filed on October&nbsp;27, 2004 (File No.&nbsp;000-50626), which
incorporates by reference the</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">description of the shares of our preferred stock
contained in our Registration Statement on Form&nbsp;S-1 (File No.&nbsp;333-119585) filed on October&nbsp;7, 2004 and declared
effective by the SEC on November&nbsp;1, 2004, and any amendment or reports filed with the SEC for purposes of updating such description.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.3pt; text-indent: -22.3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">You may request, orally or in writing, a
copy of these filings, which will be provided to you at no cost, by writing or calling us at: 200 Connell Drive, Suite&nbsp;1500,
Berkeley Heights, NJ 07922, telephone (908)&nbsp;517-7330. Information about us is also available at our website at http://www.cyclacel.com
.. However, the information in our website is not a part of this prospectus and is not incorporated by reference into this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To the extent that any statements contained
in a document incorporated by reference are modified or superseded by any statements contained in this prospectus, such statements
shall not be deemed incorporated in this prospectus except as so modified or superseded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">All documents subsequently filed by us pursuant
to Sections&nbsp;13(a), 13(c), 14 or 15(d)&nbsp;of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and prior
to the termination of this offering are incorporated by reference and become a part of this prospectus from the date such documents
are filed. Any statement contained in this prospectus or in a document incorporated by reference is modified or superseded for
purposes of this prospectus to the extent that a statement contained in any subsequent filed document modifies or supersedes such
statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CYCLACEL PHARMACEUTICALS, INC.</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><B>10,000,000 Shares
of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROSPECTUS SUPPLEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>H.C. Wainwright &amp; Co.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">March 3, 2015</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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