<PAGE>

                                                                   Exhibit 10.11

                               CytRx Corporation
                         2000 LONG-TERM INCENTIVE PLAN

                                   ARTICLE I
                                    PURPOSE

     1.1  GENERAL.  The purpose of the CytRx Corporation 2000 Long-Term
          -------
Incentive Plan (the "Plan") is to promote the success, and enhance the value, of
CytRx Corporation (the "Company"), by linking the personal interests of its
employees, officers, consultants and directors to those of Company shareholders
and by providing such persons with an incentive for outstanding performance.
The Plan is further intended to provide flexibility to the Company in its
ability to motivate, attract, and retain the services of employees, officers,
consultants and directors upon whose judgment, interest, and special effort the
successful conduct of the Company's operation is largely dependent.
Accordingly, the Plan permits the grant of incentive awards from time to time to
selected employees, officers, consultants and directors.

                                   ARTICLE 2
                                 EFFECTIVE DATE

     2.1  EFFECTIVE DATE.  The Plan shall be effective as of the date upon which
          --------------
it shall be approved by the Board (the "Effective Date").  However, the Plan
shall be submitted to the shareholders of the Company for approval within 12
months of the Board's approval thereof.  No Incentive Stock Options granted
under the Plan may be exercised prior to approval of the Plan by the
shareholders and if the shareholders fail to approve the Plan within 12 months
of the Board's approval thereof, any Incentive Stock Options previously granted
hereunder shall be automatically converted to Non-Qualified Stock Options
without any further act.  In the discretion of the Committee, Awards may be made
to Covered Employees which are intended to constitute qualified performance-
based compensation under Code Section 162(m).

                                   ARTICLE 3
                                  DEFINITIONS

     3.1  DEFINITIONS.  When a word or phrase appears in this Plan with the
          -----------
initial letter capitalized, and the word or phrase does not commence a sentence,
the word or phrase shall generally be given the meaning ascribed to it in this
Section or in Section 1.1 unless a clearly different meaning is required by the
context.  The following words and phrases shall have the following meanings:

          (a) "Award" means any Option, Stock Appreciation Right, Restricted
     Stock Award, Performance Unit Award, Dividend Equivalent Award, or Other
     Stock-Based Award, or any other right or interest relating to Stock or
     cash, granted to a Participant under the Plan.
<PAGE>

          (b) "Award Agreement" means any written agreement, contract, or other
     instrument or document evidencing an Award.

          (c) "Board" means the Board of Directors of the Company.

          (d) "Change in Control" means and includes each of the following:

              (1) The acquisition by any individual, entity or group (within the
          meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a
          "Person") of beneficial ownership (within the meaning of Rule 13d-3
          promulgated under the Exchange Act) of 25% or more of the combined
          voting power of the then outstanding voting securities of the Company
          entitled to vote generally in the election of directors (the
          "Outstanding Company Voting Securities"); provided, however, that for
          purposes of this subsection (1), the following acquisitions shall not
          constitute a Change of Control: (i) any acquisition by a Person who is
          on April 1, 2000 the beneficial owner of 25% or more of the
          Outstanding Company Voting Securities, (ii) any acquisition directly
          from the Company, (iii) any acquisition by the Company, (iv) any
          acquisition by any employee benefit plan (or related trust) sponsored
          or maintained by the Company or any corporation controlled by the
          Company, or (v) any acquisition by any corporation pursuant to a
          transaction which complies with clauses (i), (ii) and (iii) of
          subsection (3) of this definition; or

              (2) Individuals who, as of April 1, 2000, constitute the Board
          (the "Incumbent Board") cease for any reason to constitute at least a
          majority of the Board; provided, however, that any individual becoming
          a director subsequent to April 1, 2000 whose election, or nomination
          for election by the Company's stockholders, was approved by a vote of
          at least a majority of the directors then comprising the Incumbent
          Board shall be considered as though such individual were a member of
          the Incumbent Board, but excluding, for this purpose, any such
          individual whose initial assumption of office occurs as a result of an
          actual or threatened election contest with respect to the election or
          removal of directors or other actual or threatened solicitation of
          proxies or consents by or on behalf of a Person other than the Board;
          or

              (3) Consummation of a reorganization, merger or consolidation or
          sale or other disposition of all or substantially all of the assets of
          the Company (a "Business Combination"), in each case, unless,
          following such Business Combination, (i) all or substantially all of
          the individuals and entities who were the beneficial owners of the
          Outstanding Company Voting Securities immediately prior to such
          Business Combination beneficially own, directly or indirectly, more
          than 60% of the combined voting power of the then outstanding voting
          securities entitled to vote

                                      -2-
<PAGE>

          generally in the election of directors of the corporation resulting
          from such Business Combination (including, without limitation, a
          corporation which as a result of such transaction owns the Company or
          all or substantially all of the Company's assets either directly or
          through one or more subsidiaries) in substantially the same
          proportions as their ownership, immediately prior to such Business
          Combination of the Outstanding Company Voting Securities, and (ii) no
          Person (excluding any corporation resulting from such Business
          Combination or any employee benefit plan (or related trust) of the
          Company or such corporation resulting from such Business Combination)
          beneficially owns, directly or indirectly, 25% or more of the combined
          voting power of the then outstanding voting securities of such
          corporation except to the extent that such ownership existed prior to
          the Business Combination, and (iii) at least a majority of the members
          of the board of directors of the corporation resulting from such
          Business Combination were members of the Incumbent Board at the time
          of the execution of the initial agreement, or of the action of the
          Board, providing for such Business Combination; or

              (4) Approval by the stockholders of the Company of a complete
          liquidation or dissolution of the Company.

          (e) "Code" means the Internal Revenue Code of 1986, as amended from
     time to time.

          (f) "Committee" means the committee of the Board described in Article
     4.

          (g) "Company" means CytRx Corporation, a Delaware corporation.

          (h) "Covered Employee" means a covered employee as defined in Code
     Section 162(m)(3).

          (i) "Disability" shall mean any illness or other physical or mental
     condition of a Participant that renders the Participant incapable of
     performing his customary and usual duties for the Company, or any medically
     determinable illness or other physical or mental condition resulting from a
     bodily injury, disease or mental disorder which, in the judgment of the
     Committee, is permanent and continuous in nature.  The Committee may
     require such medical or other evidence as it deems necessary to judge the
     nature and permanency of the Participant's condition.  Notwithstanding the
     above, with respect to an Incentive Stock Option, Disability shall mean
     Permanent and Total Disability as defined in Section 22(e)(3) of the Code.

          (j) "Dividend Equivalent" means a right granted to a Participant under
     Article 11.

                                      -3-
<PAGE>

          (k) "Effective Date" has the meaning assigned such term in Section
     2.1.

          (l) "Fair Market Value", on any date, means (i) if the Stock is listed
     on a securities exchange or is traded over the Nasdaq National Market, the
     closing sales price on such exchange or over such system on such date or,
     in the absence of reported sales on such date, the closing sales price on
     the immediately preceding date on which sales were reported, or (ii) if the
     Stock is not listed on a securities exchange or traded over the Nasdaq
     National Market, the mean between the bid and offered prices as quoted by
     Nasdaq for such date, provided that if it is determined that the fair
     market value is not properly reflected by such Nasdaq quotations, Fair
     Market Value will be determined by such other method as the Committee
     determines in good faith to be reasonable.

          (m) "Incentive Stock Option" means an Option that is intended to meet
     the requirements of Section 422 of the Code or any successor provision
     thereto.

          (n) "Non-Qualified Stock Option" means an Option that is not an
     Incentive Stock Option.

          (o) "Option" means a right granted to a Participant under Article 7 of
     the Plan to purchase Stock at a specified price during specified time
     periods.  An Option may be either an Incentive Stock Option or a Non-
     Qualified Stock Option.

          (p) "Other Stock-Based Award" means a right, granted to a Participant
     under Article 12, that relates to or is valued by reference to Stock or
     other Awards relating to Stock.

          (q) "Parent" means a corporation which owns or beneficially owns a
     majority of the outstanding voting stock or voting power of the Company.
     For Incentive Stock Options, the term shall have the same meaning as set
     forth in Code Section 424(e).

          (r) "Participant" means a person who, as an employee, officer,
     consultant or director of the Company or any Subsidiary, has been granted
     an Award under the Plan.

          (s) "Performance Unit" means a right granted to a Participant under
     Article 9, to receive cash, Stock, or other Awards, the payment of which is
     contingent upon achieving certain performance goals established by the
     Committee.

          (t) "Plan" means the CytRx Corporation 2000 Long-Term Incentive Plan,
     as amended from time to time.

                                      -4-
<PAGE>

          (u) "Restricted Stock Award" means Stock granted to a Participant
     under Article 10 that is subject to certain restrictions and to risk of
     forfeiture.

          (v) "Retirement" means a Participant's voluntary termination of
     employment with the Company, Parent or Subsidiary after attaining age 55.

          (w) "Stock" means the $0.001 par value common stock of the Company and
     such other securities of the Company as may be substituted for Stock
     pursuant to Article 14.

          (x) "Stock Appreciation Right" or "SAR" means a right granted to a
     Participant under Article 8 to receive a payment equal to the difference
     between the Fair Market Value of a share of Stock as of the date of
     exercise of the SAR over the grant price of the SAR, all as determined
     pursuant to Article 8.

          (y) "Subsidiary" means any corporation, limited liability company,
     partnership or other entity of which a majority of the outstanding voting
     stock or voting power is beneficially owned directly or indirectly by the
     Company.  For Incentive Stock Options, the term shall have the meaning set
     forth in Code Section 424(f).

          (z) "1933 Act" means the Securities Act of 1933, as amended from time
     to time.

          (z) "1934 Act" means the Securities Exchange Act of 1934, as amended
     from time to time.

                                   ARTICLE 4
                                 ADMINISTRATION

     4.1  COMMITTEE.  The Plan shall be administered by the Compensation
          ---------
Committee of the Board or, at the discretion of the Board from time to time, by
the Board.  The Committee shall consist of two or more members of the Board.  It
is intended that the directors appointed to serve on the Committee shall be
"non-employee directors" (within the meaning of Rule 16b-3 promulgated under the
1934 Act) and "outside directors" (within the meaning of Code Section 162(m) and
the regulations thereunder) to the extent that Rule 16b-3 and, if necessary for
relief from the limitation under Code Section 162(m) and such relief is sought
by the Company, Code Section 162(m), respectively, are applicable.  However, the
mere fact that a Committee member shall fail to qualify under either of the
foregoing requirements shall not invalidate any Award made by the Committee
which Award is otherwise validly made under the Plan.  The members of the
Committee shall be appointed by, and may be changed at any time and from time to
time in the discretion of, the Board.  During any time that the Board is acting
as administrator of the Plan, it shall have all the powers of the Committee
hereunder, and

                                      -5-
<PAGE>

any reference herein to the Committee (other than in this Section 4.1) shall
include the Board.

     4.2  ACTION BY THE COMMITTEE.  For purposes of administering the Plan, the
          -----------------------
following rules of procedure shall govern the Committee.  A majority of the
Committee shall constitute a quorum.  The acts of a majority of the members
present at any meeting at which a quorum is present, and acts approved
unanimously in writing by the members of the Committee in lieu of a meeting,
shall be deemed the acts of the Committee.  Each member of the Committee is
entitled to, in good faith, rely or act upon any report or other information
furnished to that member by any officer or other employee of the Company or any
Parent or Subsidiary, the Company's independent certified public accountants, or
any executive compensation consultant or other professional retained by the
Company to assist in the administration of the Plan.

     4.3  AUTHORITY OF COMMITTEE.  Except as provided below, the Committee has
          ----------------------
the exclusive power, authority and discretion to:

          (a)  Designate Participants;

          (b) Determine the type or types of Awards to be granted to each
     Participant;

          (c) Determine the number of Awards to be granted and the number of
     shares of Stock to which an Award will relate;

          (d) Determine the terms and conditions of any Award granted under the
     Plan, including but not limited to, the exercise price, grant price, or
     purchase price, any restrictions or limitations on the Award, any schedule
     for lapse of forfeiture restrictions or restrictions on the exercisability
     of an Award, and accelerations or waivers thereof, based in each case on
     such considerations as the Committee in its sole discretion determines;

          (e) Accelerate the vesting or lapse of restrictions of any outstanding
     Award, based in each case on such considerations as the Committee in its
     sole discretion determines;

          (f) Determine whether, to what extent, and under what circumstances an
     Award may be settled in, or the exercise price of an Award may be paid in,
     cash, Stock, other Awards, or other property, or an Award may be canceled,
     forfeited, or surrendered;

          (g) Prescribe the form of each Award Agreement, which need not be
     identical for each Participant;

                                      -6-
<PAGE>

          (h) Decide all other matters that must be determined in connection
     with an Award;

          (i) Establish, adopt or revise any rules and regulations as it may
     deem necessary or advisable to administer the Plan;

          (j) Make all other decisions and determinations that may be required
     under the Plan or as the Committee deems necessary or advisable to
     administer the Plan;

          (k) Amend the Plan or any Award Agreement as provided herein; and

          (l) Adopt such modifications, procedures, and subplans as may be
     necessary or desirable to comply with provisions of the laws of non-U.S.
     jurisdictions in which the Company or any Parent or Subsidiary may operate,
     in order to assure the viability of the benefits of Awards granted to
     participants located in such other jurisdictions and to meet the objectives
     of the Plan.

     Not withstanding the above, the Board or the Committee may expressly
delegate to a special committee consisting of one or more directors who are also
officers of the Company some or all of the Committee's authority under
subsections (a) through (g) above with respect to those eligible Participants
who, at the time of grant are not, and are not anticipated to be become, either
(i) Covered Employees or (ii) persons subject to Section 16 of the 1934 Act.

     4.4. DECISIONS BINDING.  The Committee's interpretation of the Plan, any
          -----------------
Awards granted under the Plan, any Award Agreement and all decisions and
determinations by the Committee with respect to the Plan are final, binding, and
conclusive on all parties.

                                   ARTICLE 5
                           SHARES SUBJECT TO THE PLAN

     5.1. NUMBER OF SHARES.  Subject to adjustment as provided in Section 14.1,
          ----------------
the aggregate number of shares of Stock reserved and available for Awards or
which may be used to provide a basis of measurement for or to determine the
value of an Award (such as with a Stock Appreciation Right or Performance Unit
Award) shall be 1,000,000, of which not more than 10% may be granted as Awards
of Restricted Stock or unrestricted Stock Awards.

     5.2. LAPSED AWARDS.  To the extent that an Award is canceled, terminates,
          -------------
expires or lapses for any reason, any shares of Stock subject to the Award will
again be available for the grant of an Award under the Plan and shares subject
to SARs or other Awards settled in cash will be available for the grant of an
Award under the Plan.

                                      -7-
<PAGE>

     5.3. STOCK DISTRIBUTED.  Any Stock distributed pursuant to an Award may
          -----------------
consist, in whole or in part, of authorized and unissued Stock, treasury Stock
or Stock purchased on the open market.

     5.4. LIMITATION ON AWARDS.  Notwithstanding any provision in the Plan to
          --------------------
the contrary (but subject to adjustment as provided in Section 14.1), the
maximum number of shares of Stock with respect to one or more Options and/or
SARs that may be granted during any one calendar year under the Plan to any one
Participant shall be 200,000; provided, however, that in connection with his or
her initial employment with the Company, a Participant may be granted Options or
SARs with respect to up to an additional 200,000 shares of Stock, which shall
not count against the foregoing annual limit.  The maximum fair market value
(measured as of the date of grant) of any Awards other than Options and SARs
that may be received by any one Participant (less any consideration paid by the
Participant for such Award) during any one calendar year under the Plan shall be
$500,000.

                                   ARTICLE 6
                                  ELIGIBILITY

     6.1. GENERAL.  Awards may be granted only to individuals who are employees,
          -------
officers, consultants or directors of the Company or a Parent or Subsidiary.

                                   ARTICLE 7
                                 STOCK OPTIONS

     7.1. GENERAL.  The Committee is authorized to grant Options to Participants
          -------
on the following terms and conditions:

          (a) EXERCISE PRICE.  The exercise price per share of Stock under an
              --------------
     Option shall be determined by the Committee, provided that the exercise
     price for any Option shall not be less than the Fair Market Value as of the
     date of the grant.

          (b) TIME AND CONDITIONS OF EXERCISE.  The Committee shall determine
              -------------------------------
     the time or times at which an Option may be exercised in whole or in part,
     subject to Section 7.1(e).  The Committee also shall determine the
     performance or other conditions, if any, that must be satisfied before all
     or part of an Option may be exercised.  The Committee may waive any
     exercise provisions at any time in whole or in part based upon factors as
     the Committee may determine in its sole discretion so that the Option
     becomes exerciseable at an earlier date.

          (c) PAYMENT.  The Committee shall determine the methods by which the
              -------
     exercise price of an Option may be paid, the form of payment, including,
     without limitation, cash, shares of Stock, or other property (including

                                      -8-
<PAGE>

     "cashless exercise" arrangements), and the methods by which shares of Stock
     shall be delivered or deemed to be delivered to Participants; provided,
     however, that if shares of Stock are used to pay the exercise price of an
     Option, such shares shall have been held by the Participant for at least
     six months.

          (d) EVIDENCE OF GRANT.  All Options shall be evidenced by a written
              -----------------
     Award Agreement between the Company and the Participant.  The Award
     Agreement shall include such provisions, not inconsistent with the Plan, as
     may be specified by the Committee.

          (e) EXERCISE.  In no event may any Option be exercisable for more than
              --------
     ten years from the date of its grant.

     7.2. INCENTIVE STOCK OPTIONS.  The terms of any Incentive Stock Options
          -----------------------
granted under the Plan must comply with the following additional rules:

          (a) EXERCISE PRICE.  The exercise price per share of Stock shall be
              --------------
     set by the Committee, provided that the exercise price for any Incentive
     Stock Option shall not be less than the Fair Market Value as of the date of
     the grant.

          (b) EXERCISE.  In no event may any Incentive Stock Option be
              --------
     exercisable for more than ten years from the date of its grant.

          (c) LAPSE OF OPTION.  An Incentive Stock Option shall lapse under the
              ---------------
     earliest of the following circumstances; provided, however, that the
     Committee may, prior to the lapse of the Incentive Stock Option under the
     circumstances described in paragraphs (3), (4) and (5) below, provide in
     writing that the Option will extend until a later date, but if Option is
     exercised after the dates specified in paragraphs (3), (4) and (5) below,
     it will automatically become a Non-Qualified Stock Option:

               (1) The Incentive Stock Option shall lapse as of the option
          expiration date set forth in the Award Agreement.

               (2) The Incentive Stock Option shall lapse ten years after it is
          granted, unless an earlier time is set in the Award Agreement.

               (3) If the Participant terminates employment for any reason other
          than as provided in paragraph (4) or (5) below, the Incentive Stock
          Option shall lapse, unless it is previously exercised, three months
          after the Participant's termination of employment; provided, however,
          that if the Participant's employment is terminated by the Company for
          cause (as determined by the Company), the Incentive Stock Option shall
          (to the extent not previously exercised) lapse immediately.

                                      -9-
<PAGE>

               (4) If the Participant terminates employment by reason of his
          Disability, the Incentive Stock Option shall lapse, unless it is
          previously exercised, one year after the Participant's termination of
          employment.

               (5) If the Participant dies while employed, or during the three-
          month period described in paragraph (3) or during the one-year period
          described in paragraph (4) and before the Option otherwise lapses, the
          Option shall lapse one year after the Participant's death.  Upon the
          Participant's death, any exercisable Incentive Stock Options may be
          exercised by the Participant's beneficiary, determined in accordance
          with Section 13.5.

          Unless the exercisability of the Incentive Stock Option is accelerated
     as provided in Article 13, if a Participant exercises an Option after
     termination of employment, the Option may be exercised only with respect to
     the shares that were otherwise vested on the Participant's termination of
     employment.

          (d) INDIVIDUAL DOLLAR LIMITATION.  The aggregate Fair Market Value
              ----------------------------
     (determined as of the time an Award is made) of all shares of Stock with
     respect to which Incentive Stock Options are first exercisable by a
     Participant in any calendar year may not exceed $100,000.00.

          (e) TEN PERCENT OWNERS.  No Incentive Stock Option shall be granted to
              ------------------
     any individual who, at the date of grant, owns stock possessing more than
     ten percent of the total combined voting power of all classes of stock of
     the Company or any Parent or Subsidiary unless the exercise price per share
     of such Option is at least 110% of the Fair Market Value per share of Stock
     at the date of grant and the Option expires no later than five years after
     the date of grant.

          (f) EXPIRATION OF INCENTIVE STOCK OPTIONS.  No Award of an Incentive
              -------------------------------------
     Stock Option may be made pursuant to the Plan after the day immediately
     prior to the tenth anniversary of the Effective Date.

          (g) RIGHT TO EXERCISE.  During a Participant's lifetime, an Incentive
              -----------------
     Stock Option may be exercised only by the Participant or, in the case of
     the Participant's Disability, by the Participant's guardian or legal
     representative.

          (h) DIRECTORS.  The Committee may not grant an Incentive Stock Option
              ---------
     to a non-employee director.  The Committee may grant an Incentive Stock
     Option to a director who is also an employee of the Company or Parent or
     Subsidiary but only in that individual's position as an employee and not as
     a director.

                                      -10-
<PAGE>

                                   ARTICLE 8
                           STOCK APPRECIATION RIGHTS

     8.1. GRANT OF STOCK APPRECIATION RIGHTS.  The Committee is authorized to
          ----------------------------------
grant Stock Appreciation Rights to Participants on the following terms and
conditions:

          (a) RIGHT TO PAYMENT.  Upon the exercise of a Stock Appreciation
              ----------------
     Right, the Participant to whom it is granted has the right to receive the
     excess, if any, of:

              (1) The Fair Market Value of one share of Stock on the date of
         exercise; over

              (2) The grant price of the Stock Appreciation Right as determined
         by the Committee, which shall not be less than the Fair Market Value of
         one share of Stock on the date of grant.

          (b) OTHER TERMS.  All awards of Stock Appreciation Rights shall be
              -----------
     evidenced by an Award Agreement.  The terms, methods of exercise, methods
     of settlement, form of consideration payable in settlement, and any other
     terms and conditions of any Stock Appreciation Right shall be determined by
     the Committee at the time of the grant of the Award and shall be reflected
     in the Award Agreement.

                                   ARTICLE 9
                               PERFORMANCE UNITS

     9.1. GRANT OF PERFORMANCE UNITS.  The Committee is authorized to grant
          --------------------------
Performance Units to Participants on such terms and conditions as may be
selected by the Committee.  The Committee shall have the complete discretion to
determine the number of Performance Units granted to each Participant, subject
to Section 5.4.  All Awards of Performance Units shall be evidenced by an Award
Agreement.

     9.2. RIGHT TO PAYMENT.  A grant of Performance Units gives the Participant
          ----------------
rights, valued as determined by the Committee, and payable to, or exercisable
by, the Participant to whom the Performance Units are granted, in whole or in
part, as the Committee shall establish at grant or thereafter.  The Committee
shall set performance goals and other terms or conditions to payment of the
Performance Units in its discretion which, depending on the extent to which they
are met, will determine the number and value of Performance Units that will be
paid to the Participant.

     9.3. OTHER TERMS.  Performance Units may be payable in cash, Stock, or
          -----------
other property, and have such other terms and conditions as determined by the
Committee and reflected in the Award Agreement.

                                      -11-
<PAGE>

                                   ARTICLE 10
                            RESTRICTED STOCK AWARDS

     10.1.  GRANT OF RESTRICTED STOCK.  The Committee is authorized to make
            -------------------------
Awards of Restricted Stock to Participants in such amounts and subject to such
terms and conditions as may be selected by the Committee.  All Awards of
Restricted Stock shall be evidenced by a Restricted Stock Award Agreement.

     10.2.  ISSUANCE AND RESTRICTIONS.  Restricted Stock shall be subject to
            -------------------------
such restrictions on transferability and other restrictions as the Committee may
impose (including, without limitation, limitations on the right to vote
Restricted Stock or the right to receive dividends on the Restricted Stock).
These restrictions may lapse separately or in combination at such times, under
such circumstances, in such installments, upon the satisfaction of performance
goals or otherwise, as the Committee determines at the time of the grant of the
Award or thereafter.

     10.3.  FORFEITURE.  Except as otherwise determined by the Committee at the
            ----------
time of the grant of the Award or thereafter, upon termination of employment
during the applicable restriction period or upon failure to satisfy a
performance goal during the applicable restriction period, Restricted Stock that
is at that time subject to restrictions shall be forfeited and reacquired by the
Company; provided, however, that the Committee may provide in any Award
Agreement that restrictions or forfeiture conditions relating to Restricted
Stock will be waived in whole or in part in the event of terminations resulting
from specified causes, and the Committee may in other cases waive in whole or in
part restrictions or forfeiture conditions relating to Restricted Stock.

     10.4.  CERTIFICATES FOR RESTRICTED STOCK.  Restricted Stock granted under
            ---------------------------------
the Plan may be evidenced in such manner as the Committee shall determine.  If
certificates representing shares of Restricted Stock are registered in the name
of the Participant, certificates must bear an appropriate legend referring to
the terms, conditions, and restrictions applicable to such Restricted Stock.

                                   ARTICLE 11
                              DIVIDEND EQUIVALENTS

     11.1   GRANT OF DIVIDEND EQUIVALENTS.  The Committee is authorized to grant
            -----------------------------
Dividend Equivalents to Participants subject to such terms and conditions as may
be selected by the Committee.  Dividend Equivalents shall entitle the
Participant to receive payments equal to dividends with respect to all or a
portion of the number of shares of Stock subject to an Award, as determined by
the Committee.  The Committee may provide that Dividend Equivalents be paid or
distributed when accrued or be deemed to have been reinvested in additional
shares of Stock, or otherwise reinvested.

                                      -12-
<PAGE>

                                   ARTICLE 12
                            OTHER STOCK-BASED AWARDS

     12.1.  GRANT OF OTHER STOCK-BASED AWARDS.  The Committee is authorized,
            ---------------------------------
subject to limitations under applicable law, to grant to Participants such other
Awards that are payable in, valued in whole or in part by reference to, or
otherwise based on or related to shares of Stock, as deemed by the Committee to
be consistent with the purposes of the Plan, including without limitation shares
of Stock awarded purely as a "bonus" and not subject to any restrictions or
conditions, convertible or exchangeable debt securities, other rights
convertible or exchangeable into shares of Stock, and Awards valued by reference
to book value of shares of Stock or the value of securities of or the
performance of specified Parents or Subsidiaries.  The Committee shall determine
the terms and conditions of such Awards.

                                   ARTICLE 13
                        PROVISIONS APPLICABLE TO AWARDS

     13.1.  STAND-ALONE, TANDEM, AND SUBSTITUTE AWARDS.  Awards granted under
            ------------------------------------------
the Plan may, in the discretion of the Committee, be granted either alone or in
addition to, in tandem with, or in substitution for, any other Award granted
under the Plan.  If an Award is granted in substitution for another Award, the
Committee may require the surrender of such other Award in consideration of the
grant of the new Award.  Awards granted in addition to or in tandem with other
Awards may be granted either at the same time as or at a different time from the
grant of such other Awards.

     13.2.  TERM OF AWARD.  The term of each Award shall be for the period as
            -------------
determined by the Committee, provided that in no event shall the term of any
Incentive Stock Option or a Stock Appreciation Right granted in tandem with the
Incentive Stock Option exceed a period of ten years from the date of its grant
(or, if Section 7.2(e) applies, five years from the date of its grant).

     13.3.  FORM OF PAYMENT FOR AWARDS.  Subject to the terms of the Plan and
            --------------------------
any applicable law or Award Agreement, payments or transfers to be made by the
Company or a Parent or Subsidiary on the grant or exercise of an Award may be
made in such form as the Committee determines at or after the time of grant,
including without limitation, cash, Stock, other Awards, or other property, or
any combination, and may be made in a single payment or transfer, in
installments, or on a deferred basis, in each case determined in accordance with
rules adopted by, and at the discretion of, the Committee.

     13.4.  LIMITS ON TRANSFER.  No right or interest of a Participant in any
            ------------------
unexercised or restricted Award may be pledged, encumbered, or hypothecated to
or in favor of any party other than the Company or a Parent or Subsidiary, or
shall be subject to any lien, obligation, or liability of such Participant to
any other party other than the Company or a Parent or Subsidiary.  No
unexercised or restricted Award shall be assignable or transferable by a
Participant other than by will or the laws of descent and

                                      -13-
<PAGE>

distribution or, except in the case of an Incentive Stock Option, pursuant to a
domestic relations order that would satisfy Section 414(p)(1)(A) of the Code if
such Section applied to an Award under the Plan; provided, however, that the
Committee may (but need not) permit other transfers where the Committee
concludes that such transferability (i) does not result in accelerated taxation,
(ii) does not cause any Option intended to be an Incentive Stock Option to fail
to be described in Code Section 422(b), and (iii) is otherwise appropriate and
desirable, taking into account any factors deemed relevant, including without
limitation, any state or federal tax or securities laws or regulations
applicable to transferable Awards.

     13.5   BENEFICIARIES.  Notwithstanding Section 13.4, a Participant may, in
            -------------
the manner determined by the Committee, designate a beneficiary to exercise the
rights of the Participant and to receive any distribution with respect to any
Award upon the Participant's death.  A beneficiary, legal guardian, legal
representative, or other person claiming any rights under the Plan is subject to
all terms and conditions of the Plan and any Award Agreement applicable to the
Participant, except to the extent the Plan and Award Agreement otherwise
provide, and to any additional restrictions deemed necessary or appropriate by
the Committee.  If no beneficiary has been designated or survives the
Participant, payment shall be made to the Participant's estate.  Subject to the
foregoing, a beneficiary designation may be changed or revoked by a Participant
at any time provided the change or revocation is filed with the Committee.

     13.6.  STOCK CERTIFICATES.  All Stock issued under the Plan is subject to
            ------------------
any stop-transfer orders and other restrictions as the Committee deems necessary
or advisable to comply with federal or state securities laws, rules and
regulations and the rules of any national securities exchange or automated
quotation system on which the Stock is listed, quoted, or traded.  The Committee
may place legends on any Stock certificate or issue instructions to the transfer
agent to reference restrictions applicable to the Stock.

     13.7   ACCELERATION UPON DEATH OR DISABILITY.  Notwithstanding any other
            -------------------------------------
provision in the Plan or any Participant's Award Agreement to the contrary, upon
the Participant's death or Disability during his employment or service as a
director, all outstanding Options, Stock Appreciation Rights, and other Awards
in the nature of rights that may be exercised shall become fully exercisable and
all restrictions on outstanding Awards shall lapse.  Any Option or Stock
Appreciation Rights Awards shall thereafter continue or lapse in accordance with
the other provisions of the Plan and the Award Agreement.  To the extent that
this provision causes Incentive Stock Options to exceed the dollar limitation
set forth in Section 7.2(d), the excess Options shall be deemed to be Non-
Qualified Stock Options.

     13.8.  ACCELERATION UPON A CHANGE IN CONTROL.  Except as otherwise provided
            -------------------------------------
in the Award Agreement, upon the occurrence of a Change in Control, all
outstanding Options, Stock Appreciation Rights, and other Awards in the nature
of rights that may be exercised shall become fully exercisable and all
restrictions

                                      -14-
<PAGE>

on outstanding Awards shall lapse; provided, however that such acceleration will
not occur if, in the opinion of the Company's accountants, such acceleration
would preclude the use of "pooling of interest" accounting treatment for a
Change in Control transaction that (a) would otherwise qualify for such
accounting treatment, and (b) is contingent upon qualifying for such accounting
treatment. To the extent that this provision causes Incentive Stock Options to
exceed the dollar limitation set forth in Section 7.2(d), the excess Options
shall be deemed to be Non-Qualified Stock Options.

     13.9.  ACCELERATION UPON CERTAIN EVENTS NOT CONSTITUTING A CHANGE IN
            -------------------------------------------------------------
CONTROL.  In the event of the occurrence of any circumstance, transaction or
-------
event not constituting a Change in Control (as defined in Section 3.1) but which
the Board of Directors deems to be, or to be reasonably likely to lead to, an
effective change in control of the Company of a nature that would be required to
be reported in response to Item 6(e) of Schedule 14A of the 1934 Act, the
Committee may in its sole discretion declare all outstanding Options, Stock
Appreciation Rights, and other Awards in the nature of rights that may be
exercised to be fully exercisable, and/or all restrictions on all outstanding
Awards to have lapsed, in each case, as of such date as the Committee may, in
its sole discretion, declare, which may be on or before the consummation of such
transaction or event.  To the extent that this provision causes Incentive Stock
Options to exceed the dollar limitation set forth in Section 7.2(d), the excess
Options shall be deemed to be Non-Qualified Stock Options.

     13.10. ACCELERATION FOR ANY OTHER REASON.  Regardless of whether an event
            ---------------------------------
has occurred as described in Section 13.8 or 13.9 above, the Committee may in
its sole discretion at any time determine that all or a portion of a
Participant's Options, Stock Appreciation Rights, and other Awards in the nature
of rights that may be exercised shall become fully or partially exercisable,
and/or that all or a part of the restrictions on all or a portion of the
outstanding Awards shall lapse, in each case, as of such date as the Committee
may, in its sole discretion, declare.  The Committee may discriminate among
Participants and among Awards granted to a Participant in exercising its
discretion pursuant to this Section 13.10.

     13.11  EFFECT OF ACCELERATION.  If an Award is accelerated under Section
            ----------------------
13.8 or 13.9, the Committee may, in its sole discretion, provide (i) that the
Award will expire after a designated period of time after such acceleration to
the extent not then exercised, (ii) that the Award will be settled in cash
rather than Stock, (iii) that the Award will be assumed by another party to the
transaction giving rise to the acceleration or otherwise be equitably converted
in connection with such transaction, or (iv) any combination of the foregoing.
The Committee's determination need not be uniform and may be different for
different Participants whether or not such Participants are similarly situated.

     13.12. PERFORMANCE GOALS.  The Committee may (but need not) determine that
            -----------------
any Award granted pursuant to this Plan to a Participant (including, but not
limited to, Participants who are Covered Employees) shall be determined solely
on the basis of

                                      -15-
<PAGE>

(a) the achievement by the Company or a Parent or Subsidiary of a specified
target return, or target growth in return, on equity or assets, (b) the
Company's, Parent's or Subsidiary's stock price, (c) the achievement by an
individual or a business unit of the Company, Parent or Subsidiary of a
specified target, or target growth in, revenues, net income or earnings per
share, (d) the achievement of objectively determinable goals with respect to (i)
product development milestones, (ii) corporate financings, (iii) merger and
acquisition activities, (iv) licensing transactions, (v) development of
strategic partnerships or alliances, or (vi) acquisition or development of new
technologies, or (e) any combination of the goals set forth in (a) through (d)
above. If an Award is made on such basis, the Committee shall establish goals
prior to the beginning of the period for which such performance goal relates (or
such later date as may be permitted under Code Section 162(m) or the regulations
thereunder) and the Committee has the right for any reason to reduce (but not
increase) the Award, notwithstanding the achievement of a specified goal. Any
payment of an Award granted with performance goals shall be conditioned on the
written certification of the Committee in each case that the performance goals
and any other material conditions were satisfied.

     13.13.  TERMINATION OF EMPLOYMENT.  Whether military, government or other
             -------------------------
service or other leave of absence shall constitute a termination of employment
shall be determined in each case by the Committee at its discretion, and any
determination by the Committee shall be final and conclusive.  A termination of
employment shall not occur in a circumstance in which a Participant transfers
from the Company to one of its Parents or Subsidiaries, transfers from a Parent
or Subsidiary to the Company, or transfers from one Parent or Subsidiary to
another Parent or Subsidiary.

                                      -16-
<PAGE>

                                   ARTICLE 14
                          CHANGES IN CAPITAL STRUCTURE

     14.1.  GENERAL. In the event of a corporate transaction involving the
            -------
Company (including, without limitation, any stock dividend, stock split,
extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, split-up, spin-off, combination or exchange of shares), the
authorization limits under Section 5.1 and 5.4 shall be adjusted
proportionately, and the Committee may adjust Awards to preserve the benefits or
potential benefits of the Awards.  Action by the Committee may include: (i)
adjustment of the number and kind of shares which may be delivered under the
Plan; (ii) adjustment of the number and kind of shares subject to outstanding
Awards; (iii) adjustment of the exercise price of outstanding Awards; and (iv)
any other adjustments that the Committee determines to be equitable.  Without
limiting the foregoing, in the event a stock dividend or stock split is declared
upon the Stock, the authorization limits under Section 5.1 and 5.4 shall be
increased proportionately, and the shares of Stock then subject to each Award
shall be increased proportionately without any change in the aggregate purchase
price therefor.


                                   ARTICLE 15
                    AMENDMENT, MODIFICATION AND TERMINATION

     15.1.  AMENDMENT, MODIFICATION AND TERMINATION.  The Board or the Committee
            ---------------------------------------
may, at any time and from time to time, amend, modify or terminate the Plan
without shareholder approval; provided, however, that the Board or Committee may
condition any amendment or modification on the approval of shareholders of the
Company if such approval is necessary or deemed advisable with respect to tax,
securities or other applicable laws, policies or regulations.

     15.2   AWARDS PREVIOUSLY GRANTED.  At any time and from time to time, the
            -------------------------
Committee may amend, modify or terminate any outstanding Award without approval
of the Participant; provided, however, that, subject to the terms of the
applicable Award Agreement, such amendment, modification or termination shall
not, without the Participant's consent, reduce or diminish the value of such
Award determined as if the Award had been exercised, vested, cashed in or
otherwise settled on the date of such amendment or termination.  No termination,
amendment, or modification of the Plan shall adversely affect any Award
previously granted under the Plan, without the written consent of the
Participant.

                                   ARTICLE 16
                               GENERAL PROVISIONS

     16.1.  NO RIGHTS TO AWARDS.  No Participant or employee, officer,
            -------------------
consultant or director shall have any claim to be granted any Award under the
Plan, and

                                      -17-
<PAGE>

neither the Company nor the Committee is obligated to treat Participants and
employees, officers, consultants or directors uniformly.

     16.2.  NO SHAREHOLDER RIGHTS.  No Award gives the Participant any of the
            ---------------------
rights of a shareholder of the Company unless and until shares of Stock are in
fact issued to such person in connection with such Award.

     16.3.  WITHHOLDING.  The Company or any Parent or Subsidiary shall have the
            -----------
authority and the right to deduct or withhold, or require a Participant to remit
to the Company, an amount sufficient to satisfy federal, state, and local taxes
(including the Participant's FICA obligation) required by law to be withheld
with respect to any taxable event arising as a result of the Plan.  With respect
to withholding required upon any taxable event under the Plan, the Committee
may, at the time the Award is granted or thereafter, require or permit that any
such withholding requirement be satisfied, in whole or in part, by withholding
from the Award shares of Stock having a Fair Market Value on the date of
withholding equal to the minimum amount (and not any greater amount) to be
withheld for tax purposes, all in accordance with such procedures as the
Committee establishes.

     16.4.  NO RIGHT TO EMPLOYMENT OR OTHER STATUS.  Nothing in the Plan or any
            --------------------------------------
Award Agreement shall interfere with or limit in any way the right of the
Company or any Parent or Subsidiary to terminate any Participant's employment or
status as a consultant or director at any time, nor confer upon any Participant
any right to continue as an employee, officer, consultant or director of the
Company or any Parent or Subsidiary.

     l6.5.  UNFUNDED STATUS OF AWARDS.  The Plan is intended to be an "unfunded"
            -------------------------
plan for incentive and deferred compensation.  With respect to any payments not
yet made to a Participant pursuant to an Award, nothing contained in the Plan or
any Award Agreement shall give the Participant any rights that are greater than
those of a general creditor of the Company or any Parent or Subsidiary.

     16.6.  RELATIONSHIP TO OTHER BENEFITS.  No payment under the Plan shall be
            ------------------------------
taken into account in determining any benefits under any pension, retirement,
savings, profit sharing, group insurance, welfare or benefit plan of the Company
or any Parent or Subsidiary unless provided otherwise in such other plan.

     16.7.  EXPENSES.  The expenses of administering the Plan shall be borne by
            --------
the Company and its Parents or Subsidiaries.

     16.8.  TITLES AND HEADINGS.  The titles and headings of the Sections in the
            -------------------
Plan are for convenience of reference only, and in the event of any conflict,
the text of the Plan, rather than such titles or headings, shall control.

                                      -18-
<PAGE>

     16.9.  GENDER AND NUMBER.  Except where otherwise indicated by the context,
            -----------------
any masculine term used herein also shall include the feminine; the plural shall
include the singular and the singular shall include the plural.

     16.10. FRACTIONAL SHARES.  No fractional shares of Stock shall be issued
            -----------------
and the Committee shall determine, in its discretion, whether cash shall be
given in lieu of fractional shares or whether such fractional shares shall be
eliminated by rounding up.

     16.11. GOVERNMENT AND OTHER REGULATIONS.  The obligation of the Company to
            --------------------------------
make payment of awards in Stock or otherwise shall be subject to all applicable
laws, rules, and regulations, and to such approvals by government agencies as
may be required.  The Company shall be under no obligation to register under the
1933 Act, or any state securities act, any of the shares of Stock issued in
connection with the Plan.  The shares issued in connection with the Plan may in
certain circumstances be exempt from registration under the 1933 Act, and the
Company may restrict the transfer of such shares in such manner as it deems
advisable to ensure the availability of any such exemption.

     16.12. GOVERNING LAW.  To the extent not governed by federal law, the Plan
            --------------
and all Award Agreements shall be construed in accordance with and governed by
the laws of the State of Georgia.

     16.13  ADDITIONAL PROVISIONS.  Each Award Agreement may contain such other
            ---------------------
terms and conditions as the Committee may determine; provided that such other
terms and conditions are not inconsistent with the provisions of this Plan.

     The foregoing is hereby acknowledged as being the CytRx Corporation 2000
Long-Term Incentive Plan as adopted by the Board of Directors of the Company on
August 24, 2000.

                                      CYTRX CORPORATION

                                      By:  /s/ Mark W. Reynolds
                                           --------------------

                                      Its: Vice President, Finance
                                           -----------------------

                                      -19-