Document:

<PAGE>

                                                                    Exhibit 10.1

                                                                  EXECUTION COPY

          Confidential Materials omitted and filed separately with the
         Securities and Exchange Commission. Asterisks denote omissions.

                               AMENDMENT AGREEMENT

     This amendment (this "2007 Amendment") to the Amended and Restated
Strategic Alliance Agreement dated as of April 2, 2002 (the "2002 Agreement") by
and between PENWEST PHARMACEUTICALS CO., a corporation organized and existing
under the laws of the State of Washington, with its principal place of business
at 39 Old Ridgebury Road, Danbury, Connecticut 06810 ("Penwest"), and ENDO
PHARMACEUTICALS INC., a corporation organized and existing under the laws of the
State of Delaware, with its principal place of business at 100 Painters Drive,
Chadds Ford, Pennsylvania 19317 ("Endo"), is entered into by and between Penwest
and Endo this 7th day of January, 2007.

     WHEREAS, pursuant to the 2002 Agreement, Penwest and Endo have developed
and commercialized the Product, (as defined in the 2002 Agreement);

     WHEREAS, under the terms of the 2002 Agreement, Endo is required to pay
Royalties (as defined in the 2002 Agreement) to Penwest with respect to the
Product based on Net Realization (as defined in the 2002 Agreement) and other
factors set forth in the 2002 Agreement;

     WHEREAS, certain disagreements have arisen between Penwest and Endo
regarding the calculation of Royalties and other matters relating to the
parties' respective rights and obligations under the 2002 Agreement; and

     WHEREAS, in order to resolve their differences and for other reasons, the
parties desire to modify the 2002 Agreement to provide that Royalties be
calculated based on net sales of the Product in the United States and to change
certain related provisions of the 2002 Agreement;

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and conditions herein set forth, the receipt and sufficiency of which
consideration are hereby acknowledged, the parties agree as follows:

1.   DEFINITIONS

     Capitalized terms used in this 2007 Amendment and not defined in this 2007
Amendment shall have the meanings ascribed to them in the 2002 Agreement.

2.   NET SALES DEFINITION

     The Definitions Exhibit to the 2002 Agreement is hereby amended by
inserting immediately following Section 1.44 of the Definitions Exhibit to the
2002 Agreement the following:

     "1.45 "U.S. Product Net Sales" shall mean the gross amount invoiced by Endo
          and its Affiliates and sublicensees for the sale or other disposition
          of the Product to independent third parties in the United States less
          the following amounts, in each

                                      -1-

<PAGE>

          case determined in accordance with generally accepted accounting
          principles as consistently applied to all products of Endo: (i)
          discounts, including cash discounts, discounts to managed care or
          similar organizations or government organizations, rebates paid,
          credited, accrued or actually taken, including government rebates such
          as Medicaid chargebacks or rebates, and retroactive price reductions
          or allowances actually allowed or granted from the invoiced amount,
          and commercially reasonable and customary fees paid to distributors;
          (ii) credits or allowances actually granted upon claims, rejections or
          returns of such sales of Product, including recalls, regardless of the
          party requesting the claim, rejection, or return; and (iii) provisions
          for actual uncollectible accounts.

     1.46 "2007 Amendment" shall mean that certain Amendment Agreement dated as
          of January 7, 2007 by and between Penwest and Endo.

     1.47 "2007 Amendment Effective Date" shall mean January 7, 2007."

3.   CERTIFICATION EXCESS

     3.1 The 2002 Agreement is hereby amended by deleting Section 3.5.3 of the
2002 Agreement in its entirety and inserting the following new Section 3.5.3 in
its place:

     "3.5.3 In view of Penwest having elected, as of March 18, 2003, not to
          participate further in the U.S. Certification Period, Section 6.7
          shall apply and the other provisions of this Agreement shall remain in
          effect in accordance with their terms and the terms of Section 6.7;
          provided, however, that, as the U.S. Certification Period ended prior
          to the 2007 Amendment Effective Date and the parties have agreed that
          the Certification Excess arising from the U.S. Certification Period
          shall be deemed to be $28,000,000 and shall not be subject to further
          adjustment, audit or dispute between the parties, and Endo shall have
          the right to recoup such Certification Excess solely through the
          Royalty reduction mechanism set forth in the immediately following
          sentence. Commencing at such time as cumulative Royalties otherwise
          (i.e., without giving effect to Section 4.5.2) payable to Penwest
          pursuant to Section 4.5.1 exceed $41,000,000, Endo shall pay Penwest
          fifty percent (50%) of the Royalties otherwise due under Section 4.5.1
          until Endo has thereby recouped the $28,000,000 total Certification
          Excess."

     3.2 The parties hereby agree that the Certification Excess with respect to
the Product and the Certification Period for the Product in the United States
shall equal $28,000,000; that such amount shall not be subject to further
adjustment, audit or dispute between the parties; that neither of the parties
shall have any obligation under Section 3.7 of the 2002 Agreement, including
without limitation, no obligation on the part of Endo to issue invoices under
Section 3.7; and that Penwest's sole and exclusive liability with respect to the
Certification Excess with respect to the U.S. Certification Period and the
expenditures, costs and other resources devoted by the parties to U.S.
Certification Tasks during the Certification Period is the reduction in
Royalties payable by Endo to Penwest set forth in Section 3.5.3 of the 2002
Agreement, as

                                      -2-

<PAGE>

amended by this 2007 Amendment; provided, however, that, for the sake of
clarity, the parties further acknowledge and agree that all amounts previously
borne or paid by Penwest with respect to the U.S. Certification Period shall not
be remitted to or otherwise recoupable by Penwest.

4.   ROYALTIES AND OTHER PAYMENTS

     4.1 The 2002 Agreement is hereby amended by deleting Section 4.5 in its
entirety and inserting the following new Section 4.5 in its place:

     "4.5 Royalties; Recoupment of Certification Excess.

          4.5.1 U.S. Product Net Sales. With respect to Product sold or
               otherwise disposed of in the United States in a calendar year,
               Endo hereby agrees to pay to Penwest Royalties equal to the
               following percentages of such calendar year U.S. Product Net
               Sales:

<TABLE>
<CAPTION>
               Calendar Year                            Royalty Rate (as a percentage
               U.S. Product Net Sales                   of U.S. Product Net Sales)
               ----------------------                   -----------------------------
<S>                                                     <C>
               Amounts less than $150,000,000           22%

               Amounts greater than or equal to         25%
               $150,000,000 and less than $[**]

               Amounts greater than or equal to $[**]   [**]%
               and less than $[**]

               Amounts greater than or equal to $[**]   [**]%
               and less than $[**]

               Amounts greater than or equal to $[**]   [**]%
               and less than $1,000,000,000

               Amounts greater than or equal to         30%
               $1,000,000,000
</TABLE>

          4.5.2 Notwithstanding Section 4.5.1, the first $41,000,000 in
               cumulative Royalties otherwise payable by Endo to Penwest
               pursuant to Section 4.5.1 (including, for purposes of clarity,
               Royalties on all U.S. Product Net Sales commencing with the
               commercial launch of the Product in 2006) shall not be payable
               and the corresponding U.S. Product Net Sales shall be excluded
               from Endo's Royalty obligations under Section 4.5.1; provided,
               however, that such corresponding U.S. Product Net Sales shall not
               be excluded from the calculation of Calendar Year U.S. Product
               Net Sales for purposes of calculating the Royalty rate under
               Section 4.5.1 or of Calendar Year U.S. Product Net Sales for
               purposes of Section 4.10. Any

                                      -3-

<PAGE>

               exclusion pursuant to this Section 4.5.2 shall be reflected in
               the statements provided for in Section 4.7.

          4.5.3 With respect to Product sold or otherwise disposed of in the
               Territory outside the United States, Endo hereby agrees to pay to
               Penwest Royalties equal to the Applicable Percentage of the
               relevant Net Realization from all units of the Product sold by
               Endo and its distributors and licensees in the Territory outside
               the United States; provided that unless otherwise agreed by the
               parties, development and commercialization of the Product in the
               Territory outside the United States shall be subject to Section
               5.1(c) of the 2007 Amendment.

          4.5.4 Bundling; Certain Other Sales. Endo, its Affiliates and
               sublicensees shall be permitted to bundle the Product together
               with any other product(s) in any sale or transfer of the Product;
               provided however that the revenues from such product bundles
               shall be equitably allocated and none of Endo, its Affiliates or
               sublicensees shall disproportionately discount the Product
               compared to the other product(s) in the bundle. None of Endo, its
               Affiliates or sublicensees shall make commercial sales of the
               Product to independent third parties except in arm's-length
               transactions for monetary consideration.

     4.2 The 2002 Agreement is hereby amended by deleting Section 4.6.1 in its
entirety and inserting the following new Section 4.6.1 in its place:

          "4.6.1 Endo has agreed to make the payments specified in Section 4.5
               hereof, which payments shall be deemed allocable one-third for
               Penwest's anticipated contributions of know-how, resources, time
               and money, and two-thirds to the licenses contained in Sections
               6.3.1, 6.5, 6.6, 6.9.2 and 6.11 hereof. Royalties shall be paid
               in accordance with Section 4.5 hereof, irrespective of whether
               any Penwest Patents or patents on Penwest Product Technology
               cover the Product; provided, however, that in the event of an
               occurrence of a condition set forth in Section 6.7 (b) or (c)
               hereof, but subject (in the case of Section 6.7(c) hereof) to the
               provisions of Section 5.10 hereof, Endo shall be obligated to pay
               to Penwest only that portion of the Royalties that are allocated
               to the licenses in Section 6.3.1, 6.5, 6.6, 6.9.2 and 6.11 hereof
               as described above (i.e., the Net Realization or U.S. Product Net
               Sales in the applicable nation shall be reduced by one-third
               prior to the calculation of the proportion thereof to be paid to
               Penwest as Royalties hereunder); and provided further that if
               there are any U.S. Product Net Sales from the Product sold in the
               United States to which no license to U.S. Penwest Patents or to
               U.S. Penwest Product Technology Patents (including patent
               applications, as if patents had issued thereon) is applicable to
               the making, using, sale, offer for sale, or import thereof, such
               U.S. Product Net Sales shall be reduced by one-third prior to the
               calculation of the proportion thereof to be paid to Penwest as
               Royalties

                                      -4-

<PAGE>

               hereunder (it being agreed that any such reduction in U.S.
               Product Net Sales shall not reduce U.S. Product Net Sales for
               purposes of calculating the Royalty Rate under Section 4.5.1 or
               U.S. Product Net Sales under Section 4.10). For clarity and
               without limiting the provisions of Section 5.10, no royalty
               reduction shall apply as a result of the occurrence of a
               condition set forth in Section 6.7(a) and, in any case, the
               maximum royalty reduction under this Section 4.6.1 shall be a
               one-third reduction, regardless of whether multiple bases for a
               royalty reduction hereunder occur."

     4.3 The 2002 Agreement is hereby amended by deleting Section 4.7 in its
entirety and inserting the following new Section 4.7 in its place:

          "4.7 Timing of Royalty Payments. All Royalties shall be due quarterly
               within 60 days following the end of each calendar quarter for Net
               Realization and/or U.S. Product Net Sales in such calendar
               quarter. Each payment shall be accompanied by a statement of Net
               Realization and/or U.S. Product Net Sales for the quarter and the
               calculation of the Royalties payable hereunder. In addition,
               within twenty (20) days following the end of each calendar
               quarter, an estimated statement of Net Realization and/or U.S.
               Product Net Sales for the quarter and the calculation of
               estimated Royalties for such completed quarter payable hereunder
               shall be provided by the party paying Royalties. Notwithstanding
               the foregoing, (a) all Royalties due for calendar year 2006 shall
               be due within sixty (60) days following the end of calendar year
               2006 and shall be accompanied by a statement of Net Realization
               and/or U.S. Product Net Sales for the year and the estimated
               statement of Net Realization and/or U.S. Product Net Sales for
               the year shall be provided to Penwest within twenty (20) days
               following the end of such year, and (b) the statements and
               calculations required under this Section 4.7 shall be provided to
               Penwest, whether or not any Royalties are actually due hereunder
               as a result of the operation of Section 4.5.2. All Royalties and
               all other amounts payable under this Agreement will bear interest
               at the rate of one and one-half percent (1.5%) per month (or the
               maximum interest allowable by applicable law, whichever is less),
               from the thirty-first (31st) day after the date due through the
               date of payment. Notwithstanding the foregoing, if any
               adjustments or inaccuracies in the amounts paid or payable are
               determined by the auditors of either Penwest or Endo in their
               review of financial results as provided in Section 4.8 hereof,
               and the other party agrees to such adjustment, such adjustments
               for the immediately preceding quarter may be reconciled and
               described in the next due written report and the Royalty payment
               then next due shall be adjusted to reflect the determination of
               such auditors and such agreement."

     4.4 The 2002 Agreement is hereby amended by inserting the following new
Section 4.10 immediately following Section 4.9 of the 2002 Agreement:

                                      -5-

<PAGE>

     "4.10 Success Payments. Endo will make each of the following
          non-creditable, one-time success payments to Penwest within sixty (60)
          days following the end of the calendar quarter in which the
          corresponding event first occurs during the term of this Agreement:

<TABLE>
<CAPTION>
          Event                           Success Payment
          -----                           ---------------
<S>                                       <C>
          Calendar year U.S. Product
          Net Sales exceed $400,000,000   $15,000,000

          Calendar year U.S. Product
          Net Sales exceed $[**]          $25,000,000

          Calendar year U.S. Product
          Net Sales exceed $[**]          $50,000,000"
</TABLE>

     4.5 The 2002 Agreement is hereby amended by inserting the following new
Section 4.11 immediately following Section 4.10 of the 2002 Agreement, as
amended by this 2007 Amendment:

     "4.11 Milestones and Licensing Fees from Sublicensing in the United States.
     (a) Endo shall, within 60 days following the receipt by Endo or any of its
     Affiliates of any license fees and milestone payments in connection with
     the licensing or sublicensing of the Product in the United States(or other
     amounts included in Applicable Sublicense Consideration as provided below),
     other than royalties received from the licensee or sublicensee based on
     Product sales by the licensee or sublicensee and any amounts received by
     Endo or its Affiliates expressly reflecting payment or reimbursement by the
     licensee or sublicensee of Endo's or its Affiliates' actual fully allocated
     cost in performing activities or services pursuant to such license or
     sublicense after the effective date thereof (such license fees and
     milestone payments, collectively, "Applicable Sublicense Consideration"),
     pay Penwest [**] of all Applicable Sublicense Consideration. Applicable
     Sublicense Consideration shall also include any amounts received by Endo or
     any of its Affiliates for the sale of debt or equity securities in excess
     of the fair market value thereof and any payment or reimbursement amounts
     received by Endo or any of its Affiliates for costs incurred by Endo or its
     Affiliates in performing activities or services pursuant to such license or
     sublicense in excess of Endo's or its Affiliates' actual fully allocated
     cost therefor. The obligations and rights of Endo and Penwest under Section
     4.8, including without limitation, with respect to recordkeeping and audit
     rights, shall apply to Applicable Sublicense Consideration and the
     derivation of Applicable Sublicense Consideration.

     (b) Endo shall, within 14 days of the execution of any agreement for the
     licensing or sublicensing of the Product in the United States, provide
     Penwest with a copy of such agreement. Penwest acknowledges and agrees that
     any such agreement provided to Penwest shall constitute confidential
     information of Endo for purposes of Section 10.1 of

                                      -6-

<PAGE>

     this Agreement."

5.   ALLIANCE COMMITTEE AND MARKETING PLANS

     5.1 The parties acknowledge and agree that:

               (a) nothing in the 2002 Agreement, as amended by this 2007
Amendment, shall be construed as providing, or shall provide the Alliance
Committee or Penwest with any oversight or decision-making authority with
respect to the marketing, promotion and sale by Endo of, or other activities of
Endo with respect to, the Product in the United States; and

               (b) notwithstanding anything in Section 1.25 of the Definitions
Exhibit to the 2002 Agreement to the contrary, the Manufacturing and Marketing
Plan(s) with respect to the Product in the United States shall not be subject to
adoption or approval by Penwest or the Alliance Committee.

               (c) in connection with the above Sections 5.1(a) and 5.1(b), and
notwithstanding anything to the contrary in the 2002 Agreement, the 2002
Agreement is hereby amended in its entirety to give effect to the following
terms (and to the extent there is any inconsistency between the 2002 Agreement
as amended by this 2007 Amendment and the following terms, the following terms
shall control):

                    (i) the parties acknowledge and agree that there will be no
further Certification Periods anywhere in the Territory and that further
development and commercialization of the Product in the Territory outside the
United States, if any, shall be accomplished through licensing of the
development and commercialization activities relating to the Product to third
parties selected by mutual agreement of the parties;

                    (ii) the parties acknowledge and agree that any fees,
royalties, payments, or other revenue received by the parties with respect to
the Product through the licensing activities for the Product outside the United
States ("Licensing Revenue") contemplated under the foregoing clause (i) shall
be divided equally between the parties after payment of any third-party expenses
associated with entering into such licenses, and the receiving party will remit
to the other party such other party's share of such Licensing Revenue within
thirty (30) days of receiving any such Licensing Revenue;

                    (iii) the parties acknowledge and agree that there shall be
no Minimum Net Realization applicable to Endo's or its Affiliates' or
sublicensee's activities relating to the Product anywhere in the Territory, and
all references (express or implied) relating to Minimum Net Realization in the
2002 Agreement or this 2007 Amendment shall have no effect; and

               (d) For the avoidance of doubt, Section 6.4 of the 2002 Agreement
shall continue to operate as it did immediately prior to the 2007 Amendment
Effective Date.

     5.2 Endo hereby agrees that (a) on an annual basis, at least thirty (30)
days prior to the start of each calendar year, Endo shall provide to Penwest a
Manufacturing and Marketing Plan

                                      -7-

<PAGE>

with respect to the Product in the United States for such calendar year and (b)
it shall provide quarterly updates to such Plan to Penwest within thirty (30)
days of the start of each of the first, second and third calendar quarter of
each calendar year.

6.   MISCELLANEOUS.

     6.1 Except as set forth herein, no other portion of the 2002 Agreement is
hereby amended and the terms of the 2002 Agreement shall continue in full force
and effect. The parties agree that all references in the 2002 Agreement to "this
Agreement" shall be deemed to include the provisions of this 2007 Amendment.

     6.2 This 2007 Amendment, together with the 2002 Agreement, constitutes the
entire agreement and supersedes all prior agreements and understandings, both
written and oral between the parties hereto with respect to the subject matter
hereof.

     6.3 This 2007 Amendment shall be binding upon and inure to the benefit of
the parties hereto and their successors and permitted assigns; provided,
however, that except (i) as permitted under this 2007 Amendment or the 2002
Agreement, or (ii) as part of the transfer of all or substantially all assets to
a single buyer or pursuant to a merger or other corporate reorganization,
neither party shall assign or delegate any of its rights or obligations
hereunder at any time without the prior written consent of the other party
hereto, which consent shall not be unreasonably withheld.

     6.4 Any terms of this 2007 Amendment may be amended, modified or waived
only in a writing signed by both parties.

     6.5 This 2007 Amendment shall be governed by, and construed and enforced in
accordance with, the laws of the State of New York without regard to its
conflict of laws rules.

     6.6 The parties acknowledge that they intend to issue a joint press release
regarding the subject matter of this 2007 Amendment. Neither party shall issue
any press release or make any public announcements regarding the subject matter
of this 2007 Amendment and related provisions of the 2002 Agreement, as amended
hereby, without the prior written consent of the other party, which will not be
unreasonably withheld; provided, however, that notwithstanding the foregoing,
either party shall have the right to issue press releases and to make public
announcements regarding the subject matter of this 2007 Amendment and related
provisions of the 2002 Agreement, as amended hereby, without the consent of the
other party in order to comply with disclosure obligations that are imposed by
applicable law, regulation or legal process, including without limitation by
rules and regulations under applicable securities laws and by rules and
regulations of any stock exchange or NASDAQ, provided that the party complying
with any such disclosure requirement shall, if practicable, provide the other
party with an opportunity to review and comment on the content of any such
disclosure, to the extent such content has not previously been disclosed
publicly.

                                      -8-

<PAGE>

IN WITNESS WHEREOF, Penwest and Endo have executed this 2007 Amendment effective
as of the date first written above.

PENWEST PHARMACEUTICALS CO.             ENDO PHARMACEUTICALS INC.

By: /s/ Jennifer Good                   By: /s/ Peter A. Lankau
    ---------------------------------       ------------------------------------
Printed Name: Jennifer Good             Printed Name: Peter A. Lankau
Title: President and CEO                Title: President and CEO

                                      -9-SUBSCRIPTION
AGREEMENT

Cyclacel Pharmaceuticals, Inc.
200 Connell
Drive
Suite 1500
Berkeley Heights, NJ
07922

Gentlemen:

The undersigned (the
‘‘Investor’’) hereby confirms its
agreement with you as follows:

1.    This
Subscription Agreement (this
‘‘Agreement’’) is made as of the
date set forth below between Cyclacel Pharmaceuticals, Inc., a Delaware
corporation (the ‘‘Company’’), and
the Investor.

2.    The Company has authorized the
sale and issuance to certain investors of up to an aggregate of
4,249,668 units (the ‘‘Units’’),
each consisting of (i) one share (the
‘‘Share,’’ collectively, the
‘‘Shares’’) of its common stock, par
value $0.001 per share (the ‘‘Common
Stock’’), and (ii) one warrant (the
‘‘Warrant,’’ collectively, the
‘‘Warrants’’) to purchase 0.25
shares of Common Stock (and the fractional amount being the
‘‘Warrant Ratio’’), in substantially
the form attached hereto as Exhibit  B, subject to
adjustment by the Company’s Board of Directors, or a committee
thereof, for a purchase price of $8.47125 per Unit (the
‘‘Purchase Price’’). The Shares
issuable upon exercise of the Warrants are referred to herein as the
‘‘Warrant Shares’’ and, together
with the Units, the Shares and the Warrants, are referred to herein as
the
‘‘Securities’’).

3.    The
offering and sale of the Units (the
‘‘Offering’’) are being made
pursuant to (1) an effective Registration Statement on Form S-3
(including the Prospectus contained therein (the
‘‘Base Prospectus’’), the
‘‘Registration Statement’’) filed by
the Company with the Securities and Exchange Commission (the
‘‘Commission’’), (2) if applicable,
certain ‘‘free writing prospectuses’’ (as
that term is defined in Rule 405 under the Securities Act of 1933, as
amended (the ‘‘Act’’)), that have
been or will be filed with the Commission and delivered to the Investor
on or prior to the date hereof and (3) a Prospectus Supplement (the
‘‘Prospectus Supplement’’ and
together with the Base Prospectus, the
‘‘Prospectus’’) containing certain
supplemental information regarding the Securities and terms of the
Offering that will be filed with the Commission and delivered to the
Investor (or made available to the Investor by the filing by the
Company of an electronic version thereof with the
Commission).

4.    The Company and the Investor agree
that the Investor will purchase from the Company and the Company will
issue and sell to the Investor the Units set forth below for the
aggregate purchase price set forth below. The Units shall be purchased
pursuant to the Terms and Conditions for Purchase of Units attached
hereto as Annex I and incorporated herein by this reference as
if fully set forth herein. The Investor acknowledges that the Offering
is not being underwritten by the placement agents (the
‘‘Placement Agents’’) named in the
Prospectus Supplement and that there is no minimum offering
amount.

5.    The manner of settlement of the Shares
included in the Units purchased by the Investor shall be determined by
such Investor as follows (check
one):

			
	[            ] 	A.	Delivery
by electronic book-entry at The Depository Trust Company
(‘‘DTC’’), registered in the
Investor’s name and address as set forth below, and released by
American Stock Transfer & Trust Company, the Company’s
transfer agent (the ‘‘Transfer
Agent’’), to the Investor at the Closing (as defined
in Section 3.1 of Annex I hereto). NO LATER THAN ONE
(1) BUSINESS DAY AFTER THE EXECUTION OF THIS AGREEMENT BY THE INVESTOR
AND THE COMPANY, THE INVESTOR SHALL:
 

			
		(I) 	DIRECT
THE BROKER-DEALER AT WHICH THE ACCOUNT OR ACCOUNTS TO BE CREDITED WITH
THE SHARES ARE MAINTAINED TO SET UP A DEPOSIT/WITHDRAWAL AT CUSTODIAN
(‘‘DWAC’’)
INSTRUCTING THE TRANSFER AGENT TO CREDIT SUCH ACCOUNT OR ACCOUNTS WITH
THE SHARES, AND 

			
		(II) 	REMIT
BY WIRE TRANSFER THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE PURCHASE
PRICE FOR THE UNITS BEING PURCHASED BY THE INVESTOR TO THE FOLLOWING
ACCOUNT:

		JPMorgan Chase Bank, N.A.
ABA #
021000021
Account Name: Cyclacel Pharmaceuticals, Inc.
Account
Number:
304887366

—OR—

			
	[            ] 	B.	Delivery
versus payment (‘‘DVP’’) through DTC
(i.e., the Company shall deliver Shares registered in the
Investor’s name and address as set forth below and released by
the Transfer Agent to the Investor through DTC at the Closing directly
to the account(s) at Lazard Capital Markets LLC
(‘‘LCM’’) identified by the Investor
and simultaneously therewith payment shall be made by LCM by wire
transfer to the Company). NO LATER THAN ONE (1) BUSINESS DAY AFTER
THE EXECUTION OF THIS AGREEMENT BY THE INVESTOR AND THE COMPANY, THE
INVESTOR SHALL:

			
		(I) 	NOTIFY
LCM OF THE ACCOUNT OR ACCOUNTS AT LCM TO BE CREDITED WITH THE SHARES
BEING PURCHASED BY SUCH INVESTOR,
AND 

			
		(II) 	CONFIRM
THAT THE ACCOUNT OR ACCOUNTS AT LCM TO BE CREDITED WITH THE SHARES
BEING PURCHASED BY THE INVESTOR HAVE A MINIMUM BALANCE EQUAL TO THE
AGGREGATE PURCHASE PRICE FOR THE UNITS BEING PURCHASED BY THE INVESTOR.
 

IT IS THE
INVESTOR’S RESPONSIBILITY TO (A) MAKE THE NECESSARY WIRE
TRANSFER OR CONFIRM THE PROPER ACCOUNT BALANCE IN A TIMELY MANNER AND
(B) ARRANGE FOR SETTLEMENT BY WAY OF DWAC OR DVP IN A TIMELY MANNER. IF
THE INVESTOR DOES NOT DELIVER THE AGGREGATE PURCHASE PRICE FOR THE
UNITS OR DOES NOT MAKE PROPER ARRANGEMENTS FOR SETTLEMENT IN A TIMELY
MANNER, THE UNITS MAY NOT BE DELIVERED AT CLOSING TO THE INVESTOR OR
THE INVESTOR MAY BE EXCLUDED FROM THE CLOSING
ALTOGETHER.

6.    The executed
Warrant shall be delivered in accordance with the terms
thereof.

7.    The Investor represents that, except as
set forth below, (a) it has had no position, office or other material
relationship within the past three years with the Company or persons
known to it to be affiliates of the Company, (b) it is not a NASD
member or an Associated Person (as such term is defined under the NASD
Membership and Registration Rules Section 1011) as of the Closing, and
(c)  neither the Investor nor any group of Investors (as
identified in a public filing made with the Commission) of which the
Investor is a part in connection with the Offering, acquired, or
obtained the right to acquire, 20% or more of the Common Stock
(or securities convertible into or exercisable for Common Stock) or the
voting power of the Company on a post-transaction basis.
Exceptions:

	
		
	

(If no
exceptions, write ‘‘none.’’ If left blank,
response will be deemed to be
‘‘none.’’)

8.    The
Investor represents that it has received (or otherwise had made
available to it by the filing by the Company of an electronic version
thereof with the Commission) the Base Prospectus, dated February
12,  2007, which is a part of the Company’s Registration
Statement, the documents incorporated by reference therein and any free
writing prospectus (collectively, the ‘‘Disclosure
Package’’), prior to or in connection with the
receipt of this Agreement. The Investor acknowledges that, prior to the
delivery of this Agreement to the Company, the Investor will receive
certain additional information regarding the Offering, including
pricing information (the ‘‘Offering
Information’’). Such information may be provided to
the Investor by any means permitted under the Act, including the
Prospectus Supplement, a free writing prospectus and oral
communications.

2

9.    No offer by the Investor
to buy Units will be accepted and no part of the Purchase Price will be
delivered to the Company until the Investor has received the Offering
Information and the Company has accepted such offer by countersigning a
copy of this Agreement, and any such offer may be withdrawn or revoked,
without obligation or commitment of any kind, at any time prior to the
Company (or a Placement Agent on behalf of the Company) sending
(orally, in writing or by electronic mail) notice of its acceptance of
such offer. An indication of interest will involve no obligation or
commitment of any kind until the Investor has been delivered the
Offering Information and this Agreement is accepted and countersigned
by or on behalf of the Company.

Number of
Units:                                                                      

Purchase
Price Per
Unit: $                                                        

Aggregate
Purchase
Price: $                                                    

Please
confirm that the foregoing correctly sets forth the agreement between
us by signing in the space provided below for that
purpose.

		Dated as of:   February     ,
2007

		                                                                                

		INVESTOR

		By:                                                                          

		Print
Name:                                                            

		Title:                                                                        

		Address:                                                                 

		                                                                                

Agreed
and Accepted
this          day of February,
2007:

CYCLACEL PHARMACEUTICALS,
INC.

By:                                                                          

Title:

3

ANNEX I

TERMS AND
CONDITIONS FOR PURCHASE OF UNITS

1.    Authorization and
Sale of the Units.    Subject to the terms and conditions of
this Agreement, the Company has authorized the sale of the
Units.

2.    Agreement to Sell and Purchase the
Units; Placement Agent.

2.1    At
the Closing (as defined in Section 3.1), the Company will sell
to the Investor, and the Investor will purchase from the Company, upon
the terms and conditions set forth herein, the number of Units set
forth on the last page of the Agreement to which these Terms and
Conditions for Purchase of Units are attached as Annex I (the
‘‘Signature Page’’) for the
aggregate purchase price therefor set forth on the Signature
Page.

2.2    The Company proposes to
enter into substantially this same form of Subscription Agreement with
certain other investors (the ‘‘Other
Investors’’) and expects to complete sales of Units
to them. The Investor and the Other Investors are hereinafter sometimes
collectively referred to as the
‘‘Investors,’’ and this Agreement
and the Subscription Agreements executed by the Other Investors are
hereinafter sometimes collectively referred to as the
‘‘Agreements.’’

2.3    Investor
acknowledges that the Company has agreed to pay Lazard Capital Markets
LLC, Needham & Company, LLC and ThinkEquity Partners LLC (the
‘‘Placement Agents’’) a fee (the
‘‘Placement Fee’’) in respect of the
sale of Units to the
Investor.

2.4    The Company has entered
into a Placement Agent Agreement, dated February 12, 2007, (the
‘‘Placement Agreement’’), with the
Placement Agents that contains certain representations, warranties,
covenants and agreements of the Company that may be relied upon by the
Investor, which shall be a third party beneficiary thereof.

3.    Closings and Delivery of the Units and Funds.

3.1    Closing.    The
completion of the purchase and sale of the Units (the
‘‘Closing’’) shall occur at a place
and time (the ‘‘Closing Date’’) to
be specified by the Company and LCM, and of which the Investors will be
notified in advance by LCM, in accordance with Rule 15c6-1 promulgated
under the Securities Exchange Act of 1934, as amended (the
‘‘Exchange Act’’). At the Closing,
(a) the Company shall cause the Transfer Agent to deliver to the
Investor the number of Shares set forth on the Signature Page
registered in the name of the Investor or, if so indicated on the
Investor Questionnaire attached hereto as Exhibit A, in the
name of a nominee designated by the Investor, (b) the Company shall
cause to be delivered to the Investor a Warrant to purchase a number of
whole Warrant Shares determined by multiplying the number of Shares
(and Units) set forth on the signature page by the Warrant Ratio and
rounding down to the nearest whole number and (c) the aggregate
purchase price for the Units being purchased by the Investor will be
delivered by or on behalf of the Investor to the Company.

3.2    Conditions to the
Company’s
Obligations.

(a)    The
Company’s obligation to issue and sell the Units to the Investor
shall be subject to: (i) the receipt by the Company of the purchase
price for the Units being purchased hereunder as set forth on the
Signature Page and (ii) the accuracy of the representations and
warranties made by the Investor and the fulfillment of those
undertakings of the Investor to be fulfilled prior to the Closing
Date.

(b)    Conditions to the
Investor’s Obligations.    The Investor’s
obligation to purchase the Units will be subject to the accuracy of the
representations and warranties made by the Company and the fulfillment
of those undertakings of the Company to be fulfilled prior to the
Closing Date, including without limitation, those contained in the
Placement Agreement, and to the condition that the Placement Agents
shall not have: (a) terminated the Placement Agreement pursuant to the
terms thereof or (b) determined that the conditions to the closing in
the Placement Agreement have not been satisfied. The Investor’s
obligations are expressly 

4

not conditioned on the purchase by any or all
of the Other Investors of the Units that they have agreed to purchase
from the Company.

3.3    Delivery of
Funds. 

(a)    Delivery by Electronic
Book-Entry at The Depository Trust Company.    If the Investor
elects to settle the Shares purchased by such Investor through delivery
by electronic book-entry at DTC, no later than one (1) business
day after the execution of this Agreement by the Investor and the
Company, the Investor shall remit by wire transfer the amount
of funds equal to the aggregate purchase price for the Units being
purchased by the Investor to the following account designated by the
Company and the Placement Agents pursuant to the terms of that certain
Escrow Agreement (the ‘‘Escrow
Agreement’’), dated as of February  12,
2007, by and among the Company, the Placement Agents and JPMorgan Chase
Bank, N.A. (the ‘‘Escrow
Agent’’):

JPMorgan Chase Bank,
N.A.
ABA # 021000021
Account Name: Cyclacel Pharmaceuticals,
Inc.
Account Number: 304887366

Such funds
shall be held in escrow until the Closing and delivered by the Escrow
Agent on behalf of the Investors to the Company upon the satisfaction,
in the sole judgment of the LCM, of the conditions set forth in
Section 3.2(b) hereof. The Placement Agents shall have no
rights in or to any of the escrowed funds, unless the Placement Agents
and the Escrow Agent are notified in writing by the Company in
connection with the Closing that a portion of the escrowed funds shall
be applied to the Placement Fee. The Company and the Investor agree to
indemnify and hold the Escrow Agent harmless from and against any and
all losses, costs, damages, expenses and claims (including, without
limitation, court costs and reasonable attorneys fees)
(‘‘Losses’’) arising under this
Section 3.3 or otherwise with respect to the funds held in
escrow pursuant hereto or arising under the Escrow Agreement, unless it
is finally determined that such Losses resulted directly from the
willful misconduct or gross negligence of the Escrow Agent. Anything in
this Agreement to the contrary notwithstanding, in no event shall the
Escrow Agent be liable for any special, indirect or consequential loss
or damage of any kind whatsoever (including but not limited to lost
profits), even if the Escrow Agent has been advised of the likelihood
of such loss or damage and regardless of the form of
action.

(b)    Delivery Versus Payment
through The Depository Trust Company.    If the Investor elects
to settle the Shares purchased by such Investor by delivery versus
payment through DTC, no later than one (1) business day after
the execution of this Agreement by the Investor and the
Company, the Investor shall confirm that the account or
accounts at LCM to be credited with the Units being purchased by the
Investor have a minimum balance equal to the aggregate purchase price
for the Units being purchased by the Investor.

3.4    Delivery of Shares.

(a)    Delivery by Electronic
Book-Entry at The Depository Trust Company.    If the Investor
elects to settle the Shares purchased by such Investor through delivery
by electronic book-entry at DTC, no later than one (1) business
day after the execution of this Agreement by the Investor and the
Company, the Investor shall direct the broker-dealer at which
the account or accounts to be credited with the Shares being purchased
by such Investor are maintained, which broker/dealer shall be a DTC
participant, to set up a Deposit/Withdrawal at Custodian
(‘‘DWAC’’) instructing American Stock
Transfer & Trust Company, the Company’s transfer agent, to
credit such account or accounts with the Shares by means of an
electronic book-entry delivery. Such DWAC shall indicate the settlement
date for the deposit of the Shares, which date shall be provided to the
Investor by LCM. Simultaneously with the delivery to the Company by the
Escrow Agent of the funds held in escrow pursuant to Section
3.3 above, the Company shall direct its transfer agent to credit
the Investor’s account or accounts with the Shares pursuant to
the information contained in the DWAC.

5

(b)    Delivery
Versus Payment through The Depository Trust Company.    If the
Investor elects to settle the Shares purchased by such Investor by
delivery versus payment through DTC, no later than one (1)
business day after the execution of this Agreement by the Investor and
the Company, the Investor shall notify LCM of the account or
accounts at LCM to be credited with the Shares being purchased by such
Investor. On the Closing Date, the Company shall deliver the Shares to
the Investor through DTC directly to the account(s) at LCM identified
by Investor and simultaneously therewith payment shall be made by LCM
by wire transfer to the Company.

4.    Representations,
Warranties and Covenants of the Investor.

The Investor
acknowledges, represents and warrants to, and agrees with, the Company
and the Placement Agents
that:

4.1    The Investor (a) is
knowledgeable, sophisticated and experienced in making, and is
qualified to make decisions with respect to, investments in shares
presenting an investment decision like that involved in the purchase of
the Units, including investments in securities issued by the Company
and investments in comparable companies, (b) has answered all questions
on the Signature Page and the Investor Questionnaire and the answers
thereto are true and correct as of the date hereof and will be true and
correct as of the Closing Date and (c) in connection with its decision
to purchase the number of Units set forth on the Signature Page, has
received and is relying only upon the Disclosure Package and the
documents incorporated by reference
therein.

4.2    (a) No action has been
or will be taken in any jurisdiction outside the United States by the
Company or the Placement Agents that would permit an offering of the
Units, or possession or distribution of offering materials in
connection with the issue of the Securities in any jurisdiction outside
the United States where action for that purpose is required, (b) if the
Investor is outside the United States, it will comply with all
applicable laws and regulations in each foreign jurisdiction in which
it purchases, offers, sells or delivers Securities or has in its
possession or distributes any offering material, in all cases at its
own expense and (c) the Placement Agents are not authorized to make and
have not made any representation, disclosure or use of any information
in connection with the issue, placement, purchase and sale of the
Units, except as set forth or incorporated by reference in the Base
Prospectus or the Prospectus
Supplement.

4.3    (a) The Investor has
full right, power, authority and capacity to enter into this Agreement
and to consummate the transactions contemplated hereby and has taken
all necessary action to authorize the execution, delivery and
performance of this Agreement, and (b) this Agreement constitutes a
valid and binding obligation of the Investor enforceable against the
Investor in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ and contracting
parties’ rights generally and except as enforceability may be
subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and
except as to the enforceability of any rights to indemnification or
contribution that may be violative of the public policy underlying any
law, rule or regulation (including any federal or state securities law,
rule or regulation).

4.4    The Investor
understands that nothing in this Agreement, the Prospectus or any other
materials presented to the Investor in connection with the purchase and
sale of the Units constitutes legal, tax or investment advice. The
Investor has consulted such legal, tax and investment advisors as it,
in its sole discretion, has deemed necessary or appropriate in
connection with its purchase of
Units.

4.5    Since the date on which
the Placement Agents first contacted such Investor about the Offering,
the Investor has not engaged in any transactions in the securities of
the Company (including, without limitation, any Short Sales involving
the Company’s securities). Each Investor covenants that it will
not engage in any transactions in the securities of the Company
(including Short Sales) prior to the time that the transactions
contemplated by this Agreement are publicly disclosed. Each Investor
agrees that it will not use any of the Units acquired pursuant to this

6

Agreement to cover any short position in the
Common Stock if doing so would be in violation of applicable securities
laws. For purposes hereof, ‘‘Short Sales’’
include, without limitation, all ‘‘short
sales’’ as defined in Rule 200 promulgated under
Regulation SHO under the Exchange Act, whether or not against the box,
and all types of direct and indirect stock pledges, forward sales
contracts, options, puts, calls, short sales, swaps,
‘‘put equivalent positions’’ (as defined in
Rule 16a-1(h) under the Exchange Act) and similar arrangements
(including on a total return basis), and sales and other transactions
through non-US broker dealers or foreign regulated
brokers.

5.    Survival of Representations, Warranties and
Agreements; Third Party Beneficiary. Notwithstanding any
investigation made by any party to this Agreement or by the Placement
Agents, all covenants, agreements, representations and warranties made
by the Company and the Investor herein will survive the execution of
this Agreement, the delivery to the Investor of the Units being
purchased and the payment therefor. The Placement Agents and Lazard
Fréres & Co. shall be third party beneficiaries with respect
to the representations, warranties and agreements of the Investor in
Section 4 hereof.

6.    Notices.    All
notices, requests, consents and other communications hereunder will be
in writing, will be mailed (a) if within the domestic United States by
first-class registered or certified airmail, or nationally recognized
overnight express courier, postage prepaid, or by facsimile or (b) if
delivered from outside the United States, by International Federal
Express or facsimile, and will be deemed given (i) if delivered by
first-class registered or certified mail domestic, three business days
after so mailed, (ii) if delivered by nationally recognized overnight
carrier, one business day after so mailed, (iii) if delivered by
International Federal Express, two business days after so mailed and
(iv) if delivered by facsimile, upon electric confirmation of receipt
and will be delivered and addressed as
follows:

			
		(a) 	if to the
Company, to:

Cyclacel Pharmaceuticals,
Inc.
200 Connell Drive, Suite 1500
Berkeley Heights, NJ
07922
 Attention: Spiro Rombotis
Facsimile:    (866)
271-3466

with copies to:

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
The
Chrysler Center
666 Third Avenue
New York, New York 10017

Attention: Joel I. Papernik, Esq.
Facsimile:    (212)
983-3115

(b)    if to the Investor, at its
address on the Signature Page hereto, or at such other address or
addresses as may have been furnished to the Company in
writing.

7.    Changes.    This Agreement may not
be modified or amended except pursuant to an instrument in writing
signed by the Company and the
Investor.

8.    Headings.    The headings of the
various sections of this Agreement have been inserted for convenience
of reference only and will not be deemed to be part of this
Agreement.

9.    Severability.    In case any
provision contained in this Agreement should be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability
of the remaining provisions contained herein will not in any way be
affected or impaired thereby.

10.    Governing
Law.    This Agreement will be governed by, and construed in
accordance with, the internal laws of the State of New York, without
giving effect to the principles of conflicts of law that would require
the application of the laws of any other jurisdiction.

7

11.    Counterparts.    This
Agreement may be executed in two or more counterparts, each of which
will constitute an original, but all of which, when taken together,
will constitute but one instrument, and will become effective when one
or more counterparts have been signed by each party hereto and
delivered to the other parties. The Company and the Investor
acknowledge and agree that the Company shall deliver its counterpart to
the Investor along with the Prospectus Supplement (or the filing by the
Company of an electronic version thereof with the Commission).

12.    Confirmation of Sale.    The Investor
acknowledges and agrees that such Investor’s receipt of the
Company’s counterpart to this Agreement, together with the
Prospectus Supplement (or the filing by the Company of an electronic
version thereof with the Commission), shall constitute written
confirmation of the Company’s sale of Units to such
Investor.

13.    Press Release.    The Company and
the Investor agree that the Company shall issue a press release
announcing the Offering prior to the opening of the financial markets
in New York City on the business day immediately after the date
hereof.

14.    Termination.    In the event that the
Placement Agreement is terminated by the Placement Agents pursuant to
the terms thereof, this Agreement shall terminate without any further
action on the part of the parties hereto.

8

 EXHIBIT
A 

CYCLACEL PHARMACEUTICALS,
INC.

 INVESTOR QUESTIONNAIRE 

Pursuant to Section 3 of Annex I to the Agreement,
please provide us with the following information:

							
	1.			The
exact name that your Shares and Warrants are to be registered in. You
may use a nominee name if
appropriate:			 
	2.			The
relationship between the Investor and the registered holder listed in
response to item 1
above:			 
	3.			The mailing
address of the registered holder listed in response to item 1
above:			 
	4.			The Social
Security Number or Tax Identification Number of the registered holder
listed in the response to item 1
above:			 
	5.			Name of DTC
Participant (broker-dealer at which the account or accounts to be
credited with the Shares are
maintained):			 
	6.			DTC
Participant
Number:			 
	7.			Name
of Account at DTC Participant being credited with the
Shares:			 
	8.			Account Number
at DTC Participant being credited with the
Shares:			 
	

9

EXHIBIT
B

FORM OF
WARRANT 

10

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