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| (Mark One) |                                                                                                                                                                                                 |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| T          | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934                                                                                                                  |
|       |                                                                                                                                                                                                 |
|       | For the fiscal year ended December 31, 2010                                                                                                                                                          |
| or         |
|       |                                                                                                                                                                                                 |
| £     | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIESEXCHANGE ACT OF 1934                                                                                                                  |
|       |                                                                                                                                                                                                 |
|       | For the transition period from _______________ to _______________                      |

| Delaware                                 | 58-1642740          |
|------------------------------------------|---------------------|
| (State or other jurisdiction of          | (I.R.S. Employer    |
| incorporation or organization)           | Identification No.) |
|                                     |                |
| 11726 San Vicente Blvd, Suite 650,       |                |
| Los Angeles, California                  | 90049               |
| (Address of principal executive offices) | (Zip Code)          |

| Title of each class                                           | Name of exchange on which registered |
|---------------------------------------------------------------|--------------------------------------|
| Common Stock, $0.001 par value per share                      | The NASDAQ Capital Market            |
| Series A Junior Participating Preferred Stock Purchase Rights |                                 |

| Large accelerated filer £ | Accelerated filer T | Non-accelerated filer £                  | Smaller reporting company £ |
|--------------------------------|---------------------|-----------------------------------------------|----------------------------------|
|                           |                | (Do not check if a smaller reporting company) |                             |

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|                                                                                                                       | Page   |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                       |   |   |
| “SAFE HARBOR” STATEMENT                                                                                        | 3      |   |
| PART I                                                                                                                     |   |   |
| Item 1. BUSINESS                                                                                                           | 4      |   |
| Item 1A. RISK FACTORS                                                                                                      | 14     |   |
| Item 2. PROPERTIES                                                                                                         | 23     |   |
| Item 3. LEGAL PROCEEDINGS                                                                                                  | 24     |   |
| PART II                                                                                                                    |   |   |
| Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | 25     |   |
| Item 6. SELECTED FINANCIAL DATA                                                                                            | 27     |   |
| Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                        | 28     |   |
| Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                        | 38     |   |
| Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                        | 38     |   |
| Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTAINS ON ACCOUNTING AND FINANCIAL DISCLOSURE                               | 38     |   |
| Item 9A. CONTROLS AND PROCEDURES                                                                                           | 38     |   |
| Item 9B. OTHER INFORMATION                                                                                                 | 39     |   |
| PART III                                                                                                                   |   |   |
| Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                                            | 40     |   |
| Item 11. EXECUTIVE COMPENSATION                                                                                            | 44     |   |
| Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS                    | 61     |   |
| Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE                                         | 62     |   |
| Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                            | 63     |   |
| PART IV                                                                                                                    |   |   |
| Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES                                                                           | 64     |   |
| SIGNATURES                                                                                                                 | 68     |   |

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| Technology                |  Product Candidate | Indication(s)                               |  Stage of Development |
|---------------------------|-------------------------|---------------------------------------------|----------------------------|
|                      |                    |                                        |                       |
| Doxorubicin prodrug       | INNO-206                | Soft tissue sarcomas                        | Phase II (2H11)            |
|                      |                    | Pancreatic cancer                           | Phase II (2H11)            |
| Tyrosine kinase inhibitor | Bafetinib               | B-CLL (B-cell chronic lymphocytic leukemia) | Phase II                   |
|                      |                    | Advanced prostate cancer                    | Phase II                   |
|                      |                    | Brain cancer                                | Phase I                    |
| Synthetic retinoid        | Tamibarotene            | Non-small-cell lung cancer                  | Phase IIb                  |
|                      |                    | APL (acute promyelocytic leukemia)          | Pivotal Phase II           |

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|   | · | after administration, INNO-206 rapidly binds circulating albumin through the EMCH linker; |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | circulating albumin preferentially accumulates in tumors, bypassing uptake by other non-tumor sites, including the heart, liver and the gastrointestinal tract; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | once albumin-bound INNO-206 reaches the tumor, the acidic environment of the tumor causes cleavage of the acid sensitive linker; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | free doxorubicin is released at the site of the tumor and is taken up by the cancer cells. |
|--------|--------|--------------------------------------------------------------------------------------------|

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|   | · | commercially reasonable royalties based on a percentage of net sales (as defined in the agreement); |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | a percentage of non-royalty sub-licensing income (as defined in the agreement); and |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | milestones of $1 million for each additional final marketing approval that we obtain. |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | commercially reasonable royalties based on a percentage of net sales (as defined in the Nippon Shinyaku license agreement), dependent on reaching certain revenue thresholds; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | annual minimum payments if sales of bafetinib do not meet specified levels; and |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | a percentage of non-royalty sub-licensing income (as defined in the license agreement). |
|--------|--------|-----------------------------------------------------------------------------------------|

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|   | · | fund our clinical trials and pursue regulatory approval of our existing and possible future product candidates; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | expand our research and development activities; |
|--------|--------|-------------------------------------------------|

|   | · | finance our general and administrative expenses; |
|--------|--------|--------------------------------------------------|

|   | · | acquire or license new technologies; |
|--------|--------|--------------------------------------|

|   | · | prepare, file, prosecute, maintain, enforce and defend our patent and other proprietary rights; and |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | develop and implement sales, marketing and distribution capabilities to successfully commercialize any product for which we obtain marketing approval and choose to market ourselves. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | difficulty in securing centers to conduct trials; |
|--------|--------|---------------------------------------------------|

|   | · | difficulty in enrolling patients in conformity with required protocols or projected timelines; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | requirements for clinical trial design imposed by the FDA; |
|--------|--------|------------------------------------------------------------|

|   | · | unexpected adverse reactions by patients in trials; |
|--------|--------|-----------------------------------------------------|

----

|   | · | difficulty in obtaining clinical supplies of the product; |
|--------|--------|-----------------------------------------------------------|

|   | · | changes in or our inability to comply with FDA or foreign governmental product testing, manufacturing or marketing requirements; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | regulatory inspections of clinical trials or manufacturing facilities, which may, among other things, require us or our manufacturers or licensees to undertake corrective action or suspend or terminate the affected clinical trials if investigators find them not to be in compliance with applicable regulatory requirements; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | inability to generate statistically significant data confirming the safety and efficacy of the product being tested; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | modification of the product during testing; and |
|--------|--------|-------------------------------------------------|

|   | · | reallocation of our limited financial and other resources to other clinical programs. |
|--------|--------|---------------------------------------------------------------------------------------|

----

----

|   | · | we may become involved in time-consuming and expensive litigation, even if the claim is without merit; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | we may become liable for substantial damages for past infringement if a court decides that our technology infringes a competitor’s patent; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a court may prohibit us from selling or licensing our product without a license from the patent holder, which may not be available on commercially acceptable terms, if at all, or which may require us to pay substantial royalties or grant cross licenses to our patents; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we may have to redesign our product candidates or technology so that it does not infringe patent rights of others, which may not be possible or commercially feasible. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | they are “incidental” to a physician’s services, |
|--------|--------|--------------------------------------------------------------------|

|   | · | they are “reasonable and necessary” for the diagnosis or treatment of the illness or injury for which they are administered according to accepted standard of medical practice, |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | they are not excluded as immunizations, and |
|--------|--------|---------------------------------------------|

|   | · | they have been approved by the FDA. |
|--------|--------|-------------------------------------|

|   | · | succeed in developing competitive products sooner than us or our strategic partners or licensees; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | obtain FDA or foreign governmental approvals for their products before we can obtain approval of any of our products; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | obtain patents that block or otherwise inhibit the development and commercialization of our product candidate candidates; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | develop products that are safer or more effective than our products; |
|--------|--------|----------------------------------------------------------------------|

|   | · | devote greater resources than us to marketing or selling products; |
|--------|--------|--------------------------------------------------------------------|

|   | · | introduce or adapt more quickly than us to new technologies and other scientific advances; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | introduce products that render our products obsolete; |
|--------|--------|-------------------------------------------------------|

|   | · | withstand price competition more successfully than us or our strategic partners or licensees; |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | negotiate third-party strategic alliances or licensing arrangements more effectively than us; and |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | take better advantage than us of other opportunities. |
|--------|--------|-------------------------------------------------------|

----

|   | · | commercially reasonable royalties based on a percentage of net sales (as defined in the agreement); |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | a percentage of non-royalty sub-licensing income (as defined in the agreement); and |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | milestones of $1,000,000 for each additional final marketing approval that we might obtain. |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | commercially reasonable royalties based on a percentage of net sales (as defined in the agreement), dependent on reaching certain revenue thresholds; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | annual minimum payments if sales of bafetinib do not meet specified levels; and |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | a percentage of non-royalty sub-licensing income (as defined in the agreement). |
|--------|--------|---------------------------------------------------------------------------------|

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|   | · | announcements of regulatory developments or technological innovations by us or our competitors; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | changes in our relationship with our licensors and other strategic partners; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | our quarterly operating results; |
|--------|--------|----------------------------------|

|   | · | litigation involving or affecting us; |
|--------|--------|---------------------------------------|

|   | · | shortfalls in our actual financial results compared to our guidance or the forecasts of stock market analysts; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | developments in patent or other technology ownership rights; |
|--------|--------|--------------------------------------------------------------|

|   | · | acquisitions or strategic alliances by us or our competitors; |
|--------|--------|---------------------------------------------------------------|

|   | · | public concern regarding the safety of our products; and |
|--------|--------|----------------------------------------------------------|

|   | · | government regulation of drug pricing. |
|--------|--------|----------------------------------------|

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|              |   | High   |   |   | Low    |   |
|-------------------|--------|--------|--------|--------|--------|--------|
| Fiscal Year 2010: |   |   |   |   |   |   |
| Fourth Quarter    |   | $      | 1.11   |   |   | $      | 0.73 |   |
| Third Quarter     |   | $      | 0.97   |   |   | $      | 0.62 |   |
| Second Quarter    |   | $      | 1.29   |   |   | $      | 0.73 |   |
| First Quarter     |   | $      | 1.56   |   |   | $      | 1.07 |   |
|              |   |   |   |   |   |   |   |   |
| Fiscal Year 2009: |   |   |   |   |   |   |   |   |
| Fourth Quarter    |   | $      | 1.29   |   |   | $      | 0.71 |   |
| Third Quarter     |   | $      | 1.72   |   |   | $      | 0.84 |   |
| Second Quarter    |   | $      | 1.09   |   |   | $      | 0.34 |   |
| First Quarter     |   | $      | 0.45   |   |   | $      | 0.24 |   |
|              |   |   |   |   |   |   |   |   |

| Plan Category                                                                            |   | (a)Number of Securitiesto be Issued UponExercise ofOutstanding Options,Warrants and Rights |       |   | (b)Weighted-AverageExercise Price ofOutstanding Options,Warrants and Rights |   |   | Number of SecuritiesRemaining Availablefor Issuance UnderEquityCompensationPlans (ExcludingSecurities Reflectedin Column (a)) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|------------|--------|-----------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity compensation plans approved by our security holders:                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                       |       |   |                                                                        |   |   |                                                                                                                          |   |
| 2000 Long-Term Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                       | 7,243,090  |   |                                                                        | $      | 1.08   |                                                                                                                          |   |   | — |   |
| 2008 Stock Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                       | 2,565,500  |   |                                                                        |   | 0.83   |                                                                                                                          |   |   | 7,434,500 |   |
| Equity compensation plans not approved by our security holders:                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                       |       |   |                                                                        |   |   |                                                                                                                          |   |   |   |   |
| Outstanding warrants (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                       | 9,062,074  |   |                                                                        |   | 1.47   |                                                                                                                          |   |   | — |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                       | 18,870,664 |   |                                                                        | $      | 1.26   |                                                                                                                          |   |   | 7,434,500 |   |

| (1) | The warrants shown were issued in discreet transactions from time to time as compensation for services rendered by consultants, advisors or other third parties, and do not include warrants sold in private placement transactions. The material terms of such warrants were determined based upon arm’s-length negotiations with the service providers. The warrant exercise prices approximated the market price of our common stock at or about the date of grant, and the warrant terms range from one to ten years from the grant date. The warrants contain customary anti-dilution adjustments in the event of a stock split, reverse stock split, reclassification or combination of our outstanding common stock and similar events and certain of the warrants contain anti-dilution adjustments triggered by other corporate events, such as dividends and sales of equity below market price. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Comparison of Cumulative Total Returns |
|----------------------------------------|

|                        | December 31, |
|-----------------------------|--------------|
|                        | 2006         | 2007 | 2008 | 2009 | 2010 |
| CytRx Corporation           | 185.43       | 275.72 | 42.29 | 157.89 | 142.41 |
| NASDAQ Stock Market Index   | 110.39       | 122.14 | 73.32 | 106.58 | 125.93 |
| NASDAQ Pharmaceutical Index | 97.87        | 102.94 | 95.76 | 107.62 | 116.66 |

----

|                                                                                    |   | 2010   |       |   | 2009   |   |       | 2008   |   |   | 2007        |   |   | 2006   |        |
|-----------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|--------|-------------|
| Statement of Operations Data:                                                           |   |   |       |   |   |   |       |   |   |   |        |   |   |   |        |
| Revenues                                                                                |   |   |       |   |   |   |       |   |   |   |        |   |   |   |        |
| Service revenue                                                                         |   | $      | —    |   |   | $      | 9,400,000  |   |   | $      | 6,166,000   |   |   | $      | 7,242,000   |   |   | $ | 1,859,000 |   |
| Licensing  revenue                                                            |   |   | 100,000    |   |   |   | 100,000    |   |   |   | 100,000     |   |   |   | 101,000     |   |   |   | 101,000 |   |
| Grant revenue                                                                           |   |   | —    |   |   |   | —    |   |   |   | —     |   |   |   | 116,000     |   |   |   | 106,000 |   |
| Total revenues                                                                          |   | $      | 100,000    |   |   | $      | 9,500,000  |   |   | $      | 6,266,000   |   |   | $      | 7,459,000   |   |   | $ | 2,066,000 |   |
|                                                                                    |   |   |       |   |   |   |       |   |   |   |        |   |   |   |        |   |   |   |   |   |
| Deemed dividend for anti-dilution adjustments made to outstanding common stock warrants |   |   | —    |   |   |   | —    |   |   |   | (757,000    | )      |   |   | —     |   |   |   | (488,000 | ) |
| Net Profit (loss) applicable to common stockholders                                     |   | $      | 408,460    |   |   | $      | (4,800,000 | )      |   | $      | (27,803,000 | )      |   | $      | (21,890,000 | ) |   | $ | (17,240,000 | ) |
| Basic and diluted profit (loss) per share applicable to common stock                    |   | $      | 0.00       |   |   | $      | (0.05      | )      |   | $      | (0.30       | )      |   | $      | (0.26       | ) |   | $ | (0.25 | ) |
|                                                                                    |   |   |       |   |   |   |       |   |   |   |        |   |   |   |        |   |   |   |   |   |
| Balance Sheet Data:                                                                     |   |   |       |   |   |   |       |   |   |   |        |   |   |   |        |   |   |   |   |   |
| Cash, cash equivalents and marketable securities                                        |   | $      | 26,892,000 |   |   | $      | 32,643,000 |   |   | $      | 25,042,000  |   |   | $      | 60,450,000  |   |   | $ | 30,381,000 |   |
| Total assets                                                                            |   | $      | 36,697,000 |   |   | $      | 35,277,000 |   |   | $      | 28,324,000  |   |   | $      | 64,146,000  |   |   | $ | 31,636,000 |   |
| Total stockholders’ equity                                                        |   | $      | 30,568,000 |   |   | $      | 28,348,000 |   |   | $      | 15,698,000  |   |   | $      | 40,224,000  |   |   | $ | 5,150,000 |   |
|                                                                                    |   |   |       |   |   |   |       |   |   |   |        |   |   |   |        |   |   |   |   |   |

| In-process research and development                  |   | $      | 8.0    |   |
|------------------------------------------------------|--------|--------|--------|--------|
| Leasehold interests                                  |   |   | .1     |   |
| Prepaid expenses                                     |   |   | .3     |   |
| Accounts payable                                     |   |   | (6.1   | )      |
| Net assets acquired through issuance of common stock |   | $      | 2.3    |   |
|                                                 |   |   |   |   |

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----

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|   | · | our ability to advance product candidates into pre-clinical and clinical trials; |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | the scope, rate and progress of our pre-clinical trials and other research and development activities; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | the scope, rate of progress and cost of any clinical trials we commence; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | future clinical trial results; |
|--------|--------|--------------------------------|

|   | · | the terms and timing of any collaborative, licensing and other arrangements that we may establish; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | the cost and timing of regulatory approvals; |
|--------|--------|----------------------------------------------|

|   | · | the cost and timing of establishing sales, marketing and distribution capabilities; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | the cost of establishing clinical and commercial supplies of our product candidates and any products that we may develop; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | the effect of competing technological and market developments. |
|--------|--------|----------------------------------------------------------------|

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|                                                        |   | Quarters Ended                        |    |
|-------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                        |   | March 31                              |    |   | June 30 |   |   | September 30 |   |   | December 31 |   |
|                                                        |   | (In thousands, except per share data) |    |
| 2010                                                        |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Total revenues                                              |   | $                                     | — |   |   | $ | — |   |   | $ | — |   |   | $ | 100 |   |
| Net income (loss)                                           |   |                                  | (611    | ) |   |   | 1,294 |   |   |   | (4,414 | ) |   |   | 4,140 |   |
| Net income (loss) applicable to common stockholders         |   | $                                     | (611    | ) |   | $ | 1,294 |   |   | $ | (4,414 | ) |   | $ | 4,140 |   |
| Basic and diluted loss per share applicable to common stock |   | $                                     | (0.01   | ) |   | $ | 0.01 |   |   | $ | (0.04 | ) |   | $ | 0.04 |   |
|                                                        |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                                        |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                                              |   | $                                     | 1,483   |   |   | $ | 1,000 |   |   | $ | 6,954 |   |   | $ | 100 |   |
| Net income (loss)                                           |   |                                  | (3,973  | ) |   |   | (2,226 | ) |   |   | 3,863 |   |   |   | (2,983 | ) |
| Net income (loss) applicable to common stockholders         |   | $                                     | (3,973  | ) |   | $ | (2,226 | ) |   | $ | 3,863 |   |   | $ | (2,983 | ) |
| Basic and diluted loss per share applicable to common stock |   | $                                     | (0.04   | ) |   | $ | (0.02 | ) |   | $ | 0.04 |   |   | $ | (0.03 | ) |

----

----

|                |   | OperatingLeases (1)(2) |   |   | EmploymentAgreements (3) |   |    | Subtotal |   |   | Research andDevelopment (4) |   |   | Total  |    |
|---------------------|--------|------------------------|--------|--------|--------------------------|--------|---------|----------|--------|--------|-----------------------------|--------|--------|--------|---------|
| 2011                |   | $                      | 547    |   |                     | $      | 2,455   |     |   | $      | 3,002                       |   |   | $      | 8,667   |   |   | $ | 11,669 |   |
| 2012                |   |                   | 471    |   |                     |   | — |     |   |   | 471                         |   |   |   | 3,240   |   |   |   | 3,711 |   |
| 2013                |   |                   | 332    |   |                     |   | — |     |   |   | 332                         |   |   |   | — |   |   |   | 332 |   |
| 2014                |   |                   | 386    |   |                     |   | — |     |   |   | 386                         |   |   |   | — |   |   |   | 386 |   |
| 2015 and thereafter |   |                   | 55     |   |                     |   | — |     |   |   | 55                          |   |   |   | — |   |   |   | 55 |   |
| Total               |   | $                      | 1,791  |   |                     | $      | 2,455   |     |   | $      | 4,246                       |   |   | $      | 11,907  |   |   | $ | 16,153 |   |

| (1) | Operating leases are primarily facility lease related obligations, as well as equipment and software lease obligations with third party vendors. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  (2) |   The Company is entitled to receive future rental income under subleases in place which would be offset against future operating lease obligations as follows: $350,000 in 2011 and $235,000 in 2012. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Employment agreements include management contracts, which have been revised from time to time, provide for minimum salary levels, adjusted annually at the discretion of the Company’s Compensation Committee, as well as for minimum bonuses that are payable. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Research and development obligations relate primarily to clinical trials. Most of these purchase obligations are cancelable. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

----

|                                       |   | Years Ended December 31, |    |
|--------------------------------------------|--------|--------------------------|---------|
|                                       |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
|                                       |   | (In thousands)           |    |
| Research and development expenses          |   | $                        | 8,207   |   |   | $ | 5,621 |   |   | $ | 9,913 |   |
| Non-cash research and development expenses |   |                     | 92      |   |   |   | 62 |   |   |   | (224 | ) |
| Impairment loss on fixed assets            |   |                     | — |   |   |   | 1,187 |   |   |   | — |   |
| Employee stock option expense              |   |                     | 208     |   |   |   | 672 |   |   |   | 777 |   |
|                                       |   | $                        | 8,507   |   |   | $ | 7,542 |   |   | $ | 10,466 |   |

|                                                                      |   | Year Ended December 31, |   |
|---------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                      |   | 2010                    |   |   | 2009 |   |   | 2008 |   |
|                                                                      |   | (In thousands)          |   |
| General and administrative expenses                                       |   | $                       | 6,831  |   |   | $ | 7,128 |   |   | $ | 9,134 |   |
| Stock, stock option and warrant expenses to non-employees and consultants |   |                    | 614    |   |   |   | 421 |   |   |   | 189 |   |
| Employee stock option expense                                             |   |                    | 791    |   |   |   | 1,579 |   |   |   | 1,610 |   |
|                                                                      |   | $                       | 8,236  |   |   | $ | 9,128 |   |   | $ | 10,933 |   |

----

----

----

----

| Name                       | Age | Class ofDirector(1) | Position                                                                      |
|----------------------------|-----|---------------------|-------------------------------------------------------------------------------|
| Max Link, Ph.D.            | 70  | III                 | Director, Chairman of the Board (2) (3) (4)                                   |
| Steven A. Kriegsman        | 69  | II                  | Director, Chief Executive Officer, President                                  |
| Marvin R. Selter           | 83  | II                  | Director, Vice Chairman of the Board (2) (3) (4)                              |
| Louis Ignarro, Ph.D.       | 69  | I                   | Director                                                                      |
| Joseph Rubinfeld, Ph.D.    | 78  | I                   | Director                                                                      |
| Richard L. Wennekamp       | 68  | II                  | Director (2) (3) (4)                                                          |
| John Caloz                 | 59  | —             | Chief Financial Officer                                                       |
| Daniel Levitt, M.D., Ph.D. | 63  | —             | Chief Medical Officer                                                         |
| D. Scott Geyer             | 56  | —             | Sr. Vice President-Manufacturing                                              |
| D. Scott Wieland           | 51  | —             | Sr. Vice President-Drug Development                                           |
| Benjamin S. Levin          | 34  | —             | General Counsel, Vice President — Legal Affairs and Corporate Secretary |
| David J. Haen              | 32  | —             | Vice President – Business Development                                   |

| (1) | Our Class II directors serve until the 2011 annual meeting of stockholders, our Class III director serves until the 2012 annual meeting of stockholders, and our Class I directors serve until the 2013 annual meeting of stockholders. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Members of our Audit Committee. Mr. Selter is the Chairman of the Committee. |
|-----|------------------------------------------------------------------------------|

| (3) | Members of our Nominating and Corporate Governance Committee. Mr. Wennekamp is Chairman of the Committee. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (4) | Members of our Compensation Committee. Mr. Wennekamp is Chairman of the committee. |
|-----|------------------------------------------------------------------------------------|

----

----

----

----

----

----

|   | · | Initiate up to three clinical trials for bafetinib in patients with CLL, prostate cancer and brain cancer |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Finalize INNO-206 formulation for clinical development |
|--------|--------|--------------------------------------------------------|

|   | · | Initiate up to three clinical trials for INNO-206 in patients with pancreatic cancer, soft tissue sarcomas and stomach cancer |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | Continue development of tamibarotene for APL, and consider expansion of tamibarotene development into new indications |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | Review potential in-licensing and acquisition opportunities in oncology |
|--------|--------|-------------------------------------------------------------------------|

|   | · | Seek opportunities to spin out, sell or partner molecular chaperone assets |
|--------|--------|----------------------------------------------------------------------------|

|   | · | Dispose of some or all of the Company’s RXi stock to raise working capital |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | Continue compliance with financial and legal regulations, remain in good standing with all financial and legal regulatory agencies |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | base salary; |
|--------|--------|--------------|

|   | · | annual bonuses; and |
|--------|--------|---------------------|

|   | · | equity incentive compensation. |
|--------|--------|--------------------------------|

----

|   | · | the negotiated terms of each executive’s employment agreement, if any; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | an internal review of the executive’s compensation, both individually and relative to other named executive officers; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | each executive’s individual performance; and |
|--------|--------|----------------------------------------------------|

|   | · | to a lesser extent, base salaries paid by comparable companies. |
|--------|--------|-----------------------------------------------------------------|

----

----

|   | · | links the creation of stockholder value with executive compensation; |
|--------|--------|----------------------------------------------------------------------|

|   | · | provides increased equity ownership by executives; |
|--------|--------|----------------------------------------------------|

|   | · | functions as a retention tool, because of the vesting features included in all options granted by the Compensation Committee; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | helps us to maintain competitive levels of total compensation. |
|--------|--------|----------------------------------------------------------------|

----

| Richard L. Wennekamp, Chairman | Marvin R. Selter | Dr. Max Link |
|--------------------------------|------------------|--------------|

----

| Name and Principal Position                    | Year   |   | Salary ($) |    |   | Bonus($)(1) |   |    | OptionAwards($) (2) |   |   | All OtherCompensation ($)(3) |   |   | Total($) |    |
|------------------------------------------------|--------|--------|------------|---------|--------|-------------|--------|---------|---------------------|--------|--------|------------------------------|--------|--------|----------|---------|
| Steven A. Kriegsman                            |   |   |       |    |   |        |   |    |                |   |   |                         |   |   |     |    |
| President and Chief Executive Officer          | 2010   |   |       | 650,000 |   |        |   | 450,000 |                |   |   | 564,750                      |   |   |     | 10,000  |   |   |   | 1,674,750 |   |
|                                           | 2009   |   |       | 550,000 |   |        |   | 450,000 |                |   |   | 906,000                      |   |   |     | 10,000  |   |   |   | 1,916,000 |   |
|                                           | 2008   |   |       | 551,000 |   |        |   | 150,000 |                |   |   | 517,800                      |   |   |     | 10,000  |   |   |   | 1,228,800 |   |
| John Y. Caloz                                  |   |   |       |    |   |        |   |    |                |   |   |                         |   |   |     |    |   |   |   |   |   |
| Chief Financial Officer and Treasurer          | 2010   |   |       | 325,000 |   |        |   | 25,000  |                |   |   | 37,650                       |   |   |     | — |   |   |   | 387,650 |   |
|                                           | 2009   |   |       | 275,000 |   |        |   | 80,000  |                |   |   | 137,750                      |   |   |     | — |   |   |   | 492,750 |   |
| Daniel Levitt, M.D., M.D., Ph.D.               |   |   |       |    |   |        |   |    |                |   |   |                         |   |   |     |    |   |   |   |   |   |
| Chief Medical Officer                          | 2010   |   |       | 375,000 |   |        |   | 135,000 |                |   |   | 188,250                      |   |   |     | — |   |   |   | 698,250 |   |
|                                           | 2009   |   |       | 83,894  |   |        |   | — |                |   |   | 405,000                      |   |   |     | — |   |   |   | 488,894 |   |
|                                           |   |   |       |    |   |        |   |    |                |   |   |                         |   |   |     |    |   |   |   |   |   |
| Benjamin S. Levin General Counsel,             |   |   |       |    |   |        |   |    |                |   |   |                         |   |   |     |    |   |   |   |   |   |
| General Counsel, Vice President — Legal  | 2010   |   |       | 315,000 |   |        |   | 85,000  |                |   |   | 75,300                       |   |   |     | — |   |   |   | 475,300 |   |
| Affairs and Secretary                          | 2009   |   |       | 276,000 |   |        |   | 75,000  |                |   |   | 119,100                      |   |   |     | — |   |   |   | 470,100 |   |
|                                           | 2008   |   |       | 276,000 |   |        |   | 55,000  |                |   |   | 125,300                      |   |   |     | — |   |   |   | 456,300 |   |
| Scott Wieland, Ph.D.                           |   |   |       |    |   |        |   |    |                |   |   |                         |   |   |     |    |   |   |   |   |   |
| Senior Vice President – Drug Development | 2010   |   |       | 315,000 |   |        |   | 75,000  |                |   |   | 75,300                       |   |   |     | — |   |   |   | 465,300 |   |
|                                           | 2009   |   |       | 275,000 |   |        |   | 75,000  |                |   |   | 105,750                      |   |   |     | — |   |   |   | 455,750 |   |
|                                           | 2008   |   |       | 255,500 |   |        |   | 73,250  |                |   |   | 43,730                       |   |   |     | — |   |   |   | 372,480 |   |

| (1) | Bonuses to the named executive officers reported above were paid in December of the applicable year. |
|-----|------------------------------------------------------------------------------------------------------|

| (2) | The values shown in this column represent the aggregate grant date fair value of equity-based awards granted during the fiscal year, in accordance with ASC 718, “Share Based-Payment”.  At the 2009 Annual Meeting of Stockholders held on July 1, 2009, the Company’s stockholders approved an amendment to the Company’s 2000 Long-Term Incentive Plan to allow for a one-time stock option re-pricing program for employees and officers.  Pursuant to the re-pricing program, 3,265,500 eligible stock options held by ten eligible employees and officers were amended to reduce the exercise prices of the options to $1.15 per share, which was the closing sale price of CytRx’s common stock as reported on The NASDAQ Capital Market on the July 1, 2009 completion date of the re-pricing program, and to impose a new option vesting schedule.  The values in this column include the incremental  increase in the fair value of the re-priced options over the fair value of the original award. The fair value of the stock options at the date of grant was estimated using the Black-Scholes option-pricing model, based on the assumptions described in Note 15 of the Notes to Financial Statements included in this Annual Report. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | This amount represents life insurance premiums. |
|-----|-------------------------------------------------|

----

| Name                                                           | Grant Date |   | All OtherOption Awards(# of CytRxShares) |    |   | Exercise Price ofOption Awards($/Share) |   |   | Grant DateFair Value ofOption Awards($) |   |
|---------------------------------------------------------------------|------------|--------|------------------------------------------|---------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|
| Steven A. Kriegsman                                                 | 12/14/2010 |   |                                     | 750,000 |   |                                    | $      | 1.01   |                                    |   | $ | 564,750 |   |
| President and Chief Executive Officer                               |       |   |                                     |    |   |                                    |   |   |                                    |   |   |   |   |
|                                                                |       |   |                                     |    |   |                                    |   |   |                                    |   |   |   |   |
| John Y. Caloz                                                       | 12/14/2010 |   |                                     | 50,000  |   |                                    | $      | 1.01   |                                    |   | $ | 37,650 |   |
| Chief Financial Officer and Treasurer                               |       |   |                                     |    |   |                                    |   |   |                                    |   |   |   |   |
|                                                                |       |   |                                     |    |   |                                    |   |   |                                    |   |   |   |   |
| Daniel Levitt, M.D., Ph.D.                                          | 12/14/2010 |   |                                     | 250,000 |   |                                    | $      | 1.01   |                                    |   | $ | 188,250 |   |
| Chief Medical Officer                                               |       |   |                                     |    |   |                                    |   |   |                                    |   |   |   |   |
|                                                                |       |   |                                     |    |   |                                    |   |   |                                    |   |   |   |   |
| Benjamin S. Levin                                                   | 12/14/2010 |   |                                     | 100,000 |   |                                    | $      | 1.01   |                                    |   | $ | 75,300 |   |
| General Counsel, Vice President — Legal Affairs and Secretary |       |   |                                     |    |   |                                    |   |   |                                    |   |   |   |   |
|                                                                |       |   |                                     |    |   |                                    |   |   |                                    |   |   |   |   |
| Scott Wieland, Ph.D.                                                | 12/14/2010 |   |                                     | 100,000 |   |                                    | $      | 1.01   |                                    |   | $ | 75,300 |   |
| Senior Vice President – Drug Development                      |       |   |                                     |    |   |                                    |   |   |                                    |   |   |   |   |

|   | · | designate participants; |
|--------|--------|-------------------------|

|   | · | determine the types of awards to grant to each participant and the number, terms and conditions of any award; |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | establish, adopt or revise any rules and regulations as it may deem necessary or advisable to administer the Plan; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | make all other decisions and determinations that may be required under, or as the Compensation Committee deems necessary or advisable to administer, the Plan. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | the achievement by CytRx or a parent or subsidiary of a specific financial target; |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | CytRx’s stock price; |
|--------|--------|----------------------------|

|   | · | the achievement by an individual or a business unit of CytRx or a subsidiary of a specific financial target; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | the achievement of specific 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; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | any combination of the goals set forth above. |
|--------|--------|-----------------------------------------------|

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Option Awards                                          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Number of Securities UnderlyingUnexercised Options (#) |   |   |   |   |   |
| Name                                                                     |   | Exercisable                                            |   |   |   |   |   | Unexercisable |   |   | Option Exercise Price (3)($) |   | Option Expiration Date |
| Steven A. Kriegsman                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                   | — |   |   |   | (1 | ) |   |   | 750,000 |   |   |   | 1.01 |   | 12/14/20 |
| President and Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                   | 250,140 |   |   |   | (1 | ) |   |   | 499,860 |   |   |   | 1.05 |   | 12/10/19 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 208,360 |   |   |   | (1 | ) |   |   | 91,640 |   |   |   | 0.37 |   | 11/21/18 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 324,945 |   |   |   | (1 | ) |   |   | 125,055 |   |   |   | 1.15 |   | 4/07/18 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 350,000 |   |   |   | (1 | ) |   |   | — |   |   |   | 1.15 |   | 4/18/17 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 200,000 |   |   |   | (1 | ) |   |   | — |   |   |   | 1.15 |   | 6/16/16 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 300,000 |   |   |   | (1 | ) |   |   | — |   |   |   | 0.79 |   | 5/17/15 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 250,000 |   |   |   | (2 | ) |   |   | — |   |   |   | 1.15 |   | 6/19/13 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 750,000 |   |   |   | (2 | ) |   |   | — |   |   |   | 1.15 |   | 6/20/13 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| John Y. Caloz                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                   | — |   |   |   | (1 | ) |   |   | 50,000 |   |   |   | 1.01 |   | 12/14/20 |
| Chief Financial Officer and Treasurer                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                   | 41,690 |   |   |   | (1 | ) |   |   | 83,310 |   |   |   | 1.05 |   | 12/10/19 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 31,950 |   |   |   | (1 | ) |   |   | 18,050 |   |   |   | 0.30 |   | 01/02/19 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 33,335 |   |   |   | (2 | ) |   |   | 16,665 |   |   |   | 0.37 |   | 11/21/18 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 16,665 |   |   |   | (2 | ) |   |   | 8,335 |   |   |   | 1.15 |   | 04/07/18 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 16,665 |   |   |   | (2 | ) |   |   | 8,335 |   |   |   | 1.15 |   | 12/06/17 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 49,995 |   |   |   | (2 | ) |   |   | 25,005 |   |   |   | 1.15 |   | 10/26/17 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Daniel Levitt, M.D., Ph.D.                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                   | — |   |   |   | (1 | ) |   |   | 250,000 |   |   |   | 1.01 |   | 12/14/20 |
| Chief Medical Officer                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                   | 194,530 |   |   |   | (1 | ) |   |   | 305,470 |   |   |   | 1.06 |   | 11/21/18 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Benjamin S. Levin                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                   | — |   |   |   | (1 | ) |   |   | 100,000 |   |   |   | 1.01 |   | 12/14/20 |
| General Counsel, Vice President — Legal                                                                                                                                                                                                                                                                                                                                                                                |   |                                                   | 33,350 |   |   |   | (1 | ) |   |   | 66,650 |   |   |   | 1.05 |   | 12/10/19 |
| Affairs and Secretary                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                   | 69,450 |   |   |   | (1 | ) |   |   | 30,650 |   |   |   | 0.37 |   | 11/21/18 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 83,330 |   |   |   | (1 | ) |   |   | 16,670 |   |   |   | 1.15 |   | 4/07/18 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 100,000 |   |   |   | (1 | ) |   |   | — |   |   |   | 1.15 |   | 4/18/17 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 90,000 |   |   |   | (1 | ) |   |   | — |   |   |   | 1.15 |   | 6/16/16 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 150,000 |   |   |   | (1 | ) |   |   | — |   |   |   | 0.79 |   | 5/17/15 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 160,000 |   |   |   | (2 | ) |   |   | — |   |   |   | 1.15 |   | 7/15/14 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Scott Wieland, Ph.D.                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | — |   |   |   | (1 | ) |   |   | 100,000 |   |   |   | 1.01 |   | 12/14/20 |
| Senior Vice President – Drug Development                                                                                                                                                                                                                                                                                                                                                                               |   |                                                   | 33,350 |   |   |   | (1 | ) |   |   | 66,650 |   |   |   | 1.05 |   | 12/10/19 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 16,665 |   |   |   | (2 | ) |   |   | 8,335 |   |   |   | 1.15 |   | 11/21/18 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 19,800 |   |   |   | (2 | ) |   |   | 10,200 |   |   |   | 0.57 |   | 07/01/18 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 16,665 |   |   |   | (2 | ) |   |   | 8,335 |   |   |   | 1.15 |   | 12/06/17 |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   | 75,000 |   |   |   | (2 | ) |   |   | — |   |   |   | 1.15 |   | 4/30/17 |

| (1) | These options vest in 36 equal monthly installments, subject to the option holder’s remaining in our continuous employ through such dates. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | These options vest in three annual installments, subject to the option holder’s remaining in our continuous employ through such dates. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|  (3) |  The reported options with prices of $1.15 were re-priced to that exercise price on July 1, 2009 at $1.15. |
|-----------|-----------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                                                                                                                                                                         |   |                 |   | Termination w/o Cause orfor Good Reason |      |   |                       |   |      |      |   |   |           |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|-----------------------------------------|-----------|--------|----------------------------|--------|-----------|-----------|--------|--------|----------------|--------|
| Name                                     |   | Benefit              |   | Before Change inControl ($)             |      |   | After Change inControl ($) |   |      | Death ($) |   |   | Disability ($) |   |   | Change inControl ($) |   |
| Steven A. Kriegsman                                                                                                                                                                                                          |   | Severance Payment(4) |   |                                    | 1,400,000 |   |                       |   | 1,400,000 |      |   |   | 1,400,000      |   |   |   | 1,400,000 |   |   |   | — |   |
| President and Chief                                                                                                                                                                                                          |   | Stock Options (1)    |   |                                    | —   |   |                       |   | —   |      |   |   | —        |   |   |   | — |   |   |   | 58,650 |   |
| Executive Officer                                                                                                                                                                                                            |   | Health Insurance (2) |   |                                    | 97,930    |   |                       |   | 97,930    |      |   |   | —        |   |   |   | 97,930 |   |   |   | 97,930 |   |
|                                                                                                                                                                                                                         |   | Life Insurance       |   |                                    | 10,000    |   |                       |   | 10,000    |      |   |   | —        |   |   |   | 10,000 |   |   |   | — |   |
|                                                                                                                                                                                                                         |   | Bonus                |   |                                    | 300,000   |   |                       |   | 300,000   |      |   |   | 300,000        |   |   |   | 300,000 |   |   |   | — |   |
|                                                                                                                                                                                                                         |   | Tax Gross Up (3)     |   |                                    | —   |   |                       |   | 0         |      |   |   | —        |   |   |   | — |   |   |   | — |   |
| John Y. Caloz                                                                                                                                                                                                                |   | Severance Payment(4) |   |                                    | 167,500   |   |                       |   | 167,500   |      |   |   | —        |   |   |   | — |   |   |   | — |   |
| Chief Financial Officer                                                                                                                                                                                                      |   | Stock Options (1)    |   |                                    | —   |   |                       |   | —   |      |   |   | —        |   |   |   | — |   |   |   | 23,482 |   |
| Daniel Levitt, M.D., Ph.D.                                                                                                                                                                                                   |   | Severance Payment(4) |   |                                    | 225,000   |   |                       |   | 225,000   |      |   |   | —        |   |   |   | — |   |   |   | — |   |
| Chief Medical Officer                                                                                                                                                                                                        |   |                 |   |                                    |      |   |                       |   |      |      |   |   |           |   |   |   |   |   |   |   |   |   |
| Benjamin S. Levin                                                                                                                                                                                                            |   | Severance Payment    |   |                                    | 170,000   |   |                       |   | 170,000   |      |   |   | —        |   |   |   | — |   |   |   | — |   |
| General Counsel, Vice                                                                                                                                                                                                        |   | Stock Options (1)    |   |                                    | —   |   |                       |   | —   |      |   |   | —        |   |   |   | — |   |   |   | 19,616 |   |
| President — Legal                                                                                                                                                                                                      |   |                 |   |                                    |      |   |                       |   |      |      |   |   |           |   |   |   |   |   |   |   |   |   |
| Affairs and Secretary                                                                                                                                                                                                        |   |                 |   |                                    |      |   |                       |   |      |      |   |   |           |   |   |   |   |   |   |   |   |   |
| Scott Wieland, Ph.D.                                                                                                                                                                                                         |   | Severance Payment(4) |   |                                    | 165,000   |   |                       |   | 165,000   |      |   |   | —        |   |   |   | — |   |   |   | — |   |
| Senior Vice President –                                                                                                                                                                                                |   | Stock Options (1)    |   |                                    | —   |   |                       |   | —   |      |   |   | —        |   |   |   | — |   |   |   | 4,488 |   |
| Drug Development                                                                                                                                                                                                             |   |                 |   |                                    |      |   |                       |   |      |      |   |   |           |   |   |   |   |   |   |   |   |   |

| (1) | Represents the aggregate value of stock options that vest and become exercisable immediately upon each of the triggering events listed as if such events took place on December 31, 2010, determined by the aggregate difference between the stock price as of December 31, 2010 and the exercise prices of the underlying options. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents the cost as of December 31, 2010 for the family health benefits provided to Mr. Kriegsman for a period of two years. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| (3) | Mr. Kriegsman’s employment agreement provides that if a change in control (as defined in our 2000 Long-Term Incentive Plan) occurs during the term of the employment agreement, and if, during the term and within two years after the date on which the change in control occurs, Mr. Kriegsman’s employment is terminated by us without “cause” or by him for “good reason” (each as defined in his employment agreement), then, to the extent that any payment or distribution of any type by us to or for the benefit of Mr. Kriegsman resulting from the termination of his employment is or will be subject to the excise tax imposed under Section 4999 of the Internal Revenue Code of 1986, as amended, we will pay Mr. Kriegsman, prior to the time the excise tax is payable with respect to any such payment (through withholding or otherwise), an additional amount that, after the imposition of all income, employment, excise and other taxes, penalties and interest thereon, is equal to the sum of (i) the excise tax on such payments plus (ii) any penalty and interest assessments associated with such excise tax. Based on Mr. Kriegsman’s past compensation and the estimated payment that would result from a termination of his employment following a change in control, we have estimated that a gross-up payment would not be required. “Good reason” as defined in Mr. Kriegsman’s employment agreement includes any change in Mr. Kriegsman’s duties or title that are inconsistent with his position as Chief Executive Officer. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Severance payments are prescribed by our employment agreements with the named executive officers and represent a factor of their annual base compensation ranging from six months to two years. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   Name (1)                                                                                                                   |   | Fees Earned orPaid in Cash($) (2) |    |   | OptionAwards($) (3) |   |   |   Total ($) |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|--------|---------------------|--------|--------|------------------|--------|
| Max Link, Ph.D.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              | 120,250 |   |                |   | 35,000 |             |   |   | 155,250 |   |
| Chairman                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              |    |   |                |   |   |             |   |   |   |   |
| Marvin R. Selter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              | 108,250 |   |                |   | 35,000 |             |   |   | 143,250 |   |
| Vice Chairman                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                              |    |   |                |   |   |             |   |   |   |   |
| Louis Ignarro, Ph.D.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                              | 41,250  |   |                |   | 35,000 |             |   |   | 76,250 |   |
| Director                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              |    |   |                |   |   |             |   |   |   |   |
| Joseph Rubinfeld, Ph.D.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                              | 65,250  |   |                |   | 35,000 |             |   |   | 100,250 |   |
| Director                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              |    |   |                |   |   |             |   |   |   |   |
| Richard L. Wennekamp                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                              | 101,250 |   |                |   | 35,000 |             |   |   | 136,250 |   |
| Director                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              |    |   |                |   |   |             |   |   |   |   |

| (1) | Steven A. Kriegsman does not receive additional compensation for his role as a Director. For information relating to Mr. Kriegsman’s compensation as President and Chief Executive Officer, see the Summary Compensation Table above. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The amounts in this column represent cash payments made to Non-Employee Directors for attendance at meetings during the year. |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

| (3) | In July 2010, we granted stock options to purchase 50,000 shares of our common stock at an exercise price equal to the current market value of our common stock to each non-employee director, which had a grant date fair value of $35,000 calculated in accordance with FASB ASC Topic 718, excluding the effect of estimated forfeitures related to service-based vesting conditions. The amount recognized for these awards was calculated using the Black Scholes option-pricing model, and reflect grants from our 2000 Long-Term Incentive Plan, which is described in Note 14 of the Notes to Consolidated Financial Statements. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Shares ofCommon Stock |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|------------|
| Name of Beneficial Owner                                                                                                                                     |   | Number                |       |   | Percent |   |
| Louis Ignarro, Ph.D.(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                  | 668,916    |   |   |   | * |   |
| Steven A. Kriegsman(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                  | 6,916,917  |   |   |   | 6.2 | % |
| Max Link, Ph.D.(3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                  | 289,519    |   |   |   | * |   |
| Joseph Rubinfeld, Ph.D.(4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                  | 227,000    |   |   |   | * |   |
| Marvin R. Selter(5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                  | 572,451    |   |   |   | * |   |
| Richard L. Wennekamp(6)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                  | 220,000    |   |   |   | * |   |
| Dan Levitt, M.D., Ph.D.(7)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                  | 277,778    |   |   |   | * |   |
| John Y. Caloz (8)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                  | 223,615    |   |   |   | * |   |
| Scott Wieland, Ph.D.(9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                  | 232,508    |   |   |   | * |   |
| Benjamin S. Levin(10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                  | 722,240    |   |   |   | * |   |
| All executive officers and directors as a group (eleven persons)(11)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                  | 10,427,339 |   |   |   | 9.1 | % |

| (1) | Includes 577,000 shares subject to options or warrants. |
|-----|---------------------------------------------------------|

| (2) | Includes 2,895,817 shares subject to options or warrants. Mr. Kriegsman’s address is c/o CytRx Corporation, 11726 San Vicente Boulevard, Suite 650, Los Angeles, CA 90049. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes 234,543 shares subject to options or warrants. |
|-----|---------------------------------------------------------|

| (4) | Includes 227,000 shares subject to options or warrants. |
|-----|---------------------------------------------------------|

| (5) | The shares shown are owned, of record, by the Selter Family Trust or Selter IRA Rollover. Includes 215,000 shares subject to options or warrants owned by Mr. Selter. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Includes 215,000 shares subject to options or warrants. |
|-----|---------------------------------------------------------|

| (7) | Includes 277,778 shares subject to options or warrants. |
|-----|---------------------------------------------------------|

| (8) | Includes 223,615 shares subject to options or warrants. |
|-----|---------------------------------------------------------|

| (9) | Includes 232,508 shares subject to options or warrants. |
|-----|---------------------------------------------------------|

| (10) | Includes 722,240 shares subject to options or warrants. |
|------|---------------------------------------------------------|

| (11) | Includes 5,896,896 shares subject to options or warrants. |
|------|-----------------------------------------------------------|

----

|   | · | that all related person transactions, all material terms of the transactions, and all the material facts as to the related person’s direct or indirect interest in, or relationship to, the related person transaction must be communicated to the Audit Committee; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | that all related person transactions, and any material amendment or modification to any related person transaction, be reviewed and approved or ratified by the Audit Committee, as required by NASDAQ Marketplace Rules. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | information provided by members of our board of directors in connection with the required annual evaluation of director independence; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | pertinent responses to the Directors’ and Officers’ Questionnaires submitted periodically by our officers and directors and provided to the Audit Committee by our management; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | background information on nominees for director provided by the Nominating and Corporate Governance Committee of our board of directors; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | any other relevant information provided by any of our directors or officers. |
|--------|--------|------------------------------------------------------------------------------|

----

|   | · | “related person” has the meaning given to such term in Item 404(a) of Securities and Exchange Commission Regulation S-K (“Item 404(a)”); and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “related person transaction” means any transaction for which disclosure is required under the terms of Item 404(a) involving the Company and any related persons. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ExhibitNumber | Description                                                                                                              |  Footnote |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 2.1           | Agreement and Plan of Merger, dated as of June 6, 2008, among CytRx Corporation, CytRx Merger Subsidiary, Inc., Innovive Pharmaceuticals, Inc., and Steven Kelly                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (x)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 3.1           | Restated Certificate of Incorporation of CytRx Corporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (a)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 3.2           | Restated By-Laws of CytRx Corporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (a)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 4.1           | Shareholder Protection Rights Agreement dated April 16, 1997 between CytRx Corporation and American Stock Transfer &Trust Company, as Rights Agent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (b)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 4.2           | Amendment No. 1 to Shareholder Protection Rights Agreement, dated February 11, 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (g)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 4.3           | Amendment No. 2 to Shareholder Protection Rights Agreement, dated March 30, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (s)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 4.4           | Securities Purchase Agreement, dated July 24, 2009, between CytRx Corporation and the purchasers listed on the signature pages thereto                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (aa)           |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 4.5           | Form of Common Stock Purchase Warrant to be issued by CytRx Corporation to purchasers under the Securities Purchase Agreement, dated July 24, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (aa)           |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 10.1*         | CytRx Corporation 2000 Long-Term Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (e)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 10.2*         | Amendment No. 1 to CytRx Corporation 2000 Long-Term Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (h)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 10.3*         | Amendment No. 2 to CytRx Corporation 2000 Long-Term Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (h)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 10.4*         | Amendment No. 3 to CytRx Corporation 2000 Long-Term Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (i)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 10.5*         | Amendment No. 4 to CytRx Corporation 2000 Long-Term Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (i)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 10.6*         | CytRx Corporation 2008 Stock Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (z)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 10.7†   | License Agreement, dated December 7, 2001, by and between CytRx Corporation and Vical Incorporated                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (f)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 10.8†   | Agreement between CytRx Corporation and Dr. Robert Hunter regarding SynthRx, Inc., dated October 20, 2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | (i)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 10.9          | Office Lease between The Kriegsman Capital Group, LLC and Douglas Emmett Joint Venture, dated April 13, 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | (i)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 10.10         | Assignment, Assumption and Consent, effective July 1, 2003, by and among CytRx Corporation, The Kriegsman Capital Group, LLC and Douglas Emmett Joint Venture, concerning Office Lease dated April 13, 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (i)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 10.11         | Asset Sale and Purchase Agreement dated October 4, 2004, by and among CytRx Corporation, Biorex Kutato Es Fejleszto RT., and BRX Research and Development Company Ltd                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (k)            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           |
| 10.12         | Sublease dated March 14, 2005 between Innovive Pharmaceuticals, Inc. and Friedman, Billings, Ramsey Group, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (m)            |

----

|         |                                                                                                                                                                   |   |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 10.13*       | Third Amended and Restated Employment Agreement dated May 17, 2005 between CytRx Corporation and Steven A. Kriegsman                                                   | (n)    |
|         |                                                                                                                                                                   |   |
| 10.14        | First Amendment to Office Lease dated October 14, 2005, by and between CytRx Corporation and Douglas Emmett 1993, LLC                                                  | (o)    |
|         |                                                                                                                                                                   |   |
| 10.15† | NS-187 License Agreement dated December 28, 2005 between Innovive Pharmaceuticals, Inc. and Nippon Shinyaku Co., Ltd.                                                  | (m)    |
|         |                                                                                                                                                                   |   |
| 10.16† | License Agreement dated April 17, 2006 between Innovive Pharmaceuticals, Inc. and KTB Tumorforschungs GmbH                                                             | (p)    |
|         |                                                                                                                                                                   |   |
| 10.17        | Royalty Agreement dated August 28, 2006 between CytRx Corporation and Kenneth R. Council, as Trustee of the ALS Charitable Remainder Trust, dated August 28, 2006 | (r)    |
|         |                                                                                                                                                                   |   |
| 10.18† | License Agreement dated December 6, 2006 between Innovive Pharmaceuticals, Inc. and TMRC Co., Ltd.                                                                     | (t)    |
|         |                                                                                                                                                                   |   |
| 10.19        | Form of Purchase Agreement, dated as of April 17, 2007, by and between CytRx Corporation and each of the selling stockholders named therein                            | (v)    |
|         |                                                                                                                                                                   |   |
| 10.20        | Second Amendment to Office Lease dated June 30, 2008, by and between CytRx Corporation and Douglas Emmett 1993, LLC                                                    | (z)    |
|         |                                                                                                                                                                   |   |
| 10.21        | Sub-Sublease dated December 4, 2008, by and between CytRx Oncology Corporation and Red Pine Advisors LLC                                                               | (z)    |
|         |                                                                                                                                                                   |   |
| 10.22        | Third Amendment to Office Lease dated December 1, 2009, by and between CytRx Corporation and Douglas Emmett 1993, LLC                                                  | (bb)   |
|         |                                                                                                                                                                   |   |
| 10.23        | Stock Redemption Agreement dated as of March 22, 2010, by and between RXi Pharmaceuticals Corporation and CytRx Corporation                                            | (cc)   |
|         |                                                                                                                                                                   |   |
| 10.24        | Agreement for Clinical Services dated December 6, 2010, by and between CytRx Corporation and Oncotherapeutics                                                          |   |
|         |                                                                                                                                                                   |   |
| 10.25*       | Employment Agreement dated January 1, 2011 between CytRx Corporation and Daniel Levitt, M.D., Ph.D.                                                                    |   |
|         |                                                                                                                                                                   |   |
| 10.26*       | Employment Agreement dated January 1, 2011, between CytRx Corporation and Scott Geyer                                                                                  |   |
|         |                                                                                                                                                                   |   |
| 10.27*       | Employment Agreement dated January 1, 2011, between CytRx Corporation and Benjamin S. Levin                                                                            |   |
|         |                                                                                                                                                                   |   |
| 10.28*       | Employment Agreement dated January 1, 2011, between CytRx Corporation and Scott Wieland                                                                                |   |
|         |                                                                                                                                                                   |   |
| 10.29*       | Employment Agreement dated January 1, 2011, between CytRx Corporation and John Y. Caloz                                                                                |   |
|         |                                                                                                                                                                   |   |
| 23.1         | Consent of BDO USA, LLP                                                                                                                                                |   |
|         |                                                                                                                                                                   |   |
| 31.1         | Certification of Chief Executive Officer Pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                      |   |
|         |                                                                                                                                                                   |   |
| 31.2         | Certification of Chief Financial Officer Pursuant to 15 U.S.C. Section 7241, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                      |   |
|         |                                                                                                                                                                   |   |
| 32.1         | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                      |   |
|         |                                                                                                                                                                   |   |
| 32.2         | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                      |   |

|   | * Indicates a management contract or compensatory plan or arrangement. |
|--------|------------------------------------------------------------------------|

|   | † Confidential treatment has been requested or granted for certain portions which have been blanked out in the copy of the exhibit filed with the Securities and Exchange Commission. The omitted information has been filed separately with the Securities and Exchange Commission. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a)    | Incorporated by reference to the Registrant’s Form 10-K filed on April 1, 2008                                        |
|--------|-----------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                        |
| (b)    | Incorporated by reference to the Registrant’s 8-K filed on April 17, 1997                                             |
|   |                                                                                                                        |
| (c)    | Incorporated by reference to the Registrant’s 10-Q filed on August 14, 1997                                           |
|   |                                                                                                                        |
| (d)    | Incorporated by reference to the Registrant’s Proxy Statement filed on April 30, 1998                                 |
|   |                                                                                                                        |
| (e)    | Incorporated by reference to the Registrant’s Form 10-K filed on March 27, 2001                                       |
|   |                                                                                                                        |
| (f)    | Incorporated by reference to the Registrant’s Form 8-K filed on December 21, 2001                                     |
|   |                                                                                                                        |
| (g)    | Incorporated by reference to the Registrant’s Form 10-K filed on April 1, 2002                                        |
|   |                                                                                                                        |
| (h)    | Incorporated by reference to the Registrant’s Proxy Statement filed June 11, 2002                                     |
|   |                                                                                                                        |
| (i)    | Incorporated by reference to the Registrant’s 10-K filed on May 14, 2004                                              |
|   |                                                                                                                        |
| (j)    | Incorporated by reference to the Registrant’s 10-Q filed on August 16, 2004                                           |
|   |                                                                                                                        |
| (k)    | Incorporated by reference to the Registrant’s 8-K filed on October 5, 2004                                            |
|   |                                                                                                                        |
| (l)    | Incorporated by reference to the Registrant’s 8-K filed on January 21, 2005                                           |
|   |                                                                                                                        |
| (m)    | Incorporated by reference to the CytRx Oncology Corp (f/k/a Innovive Pharmaceuticals, Inc.) Form 10 filed on April 20, 2006 |
|   |                                                                                                                        |
| (n)    | Incorporated by reference to the Registrant’s 10-Q filed on August 15, 2005                                           |
|   |                                                                                                                        |
| (o)    | Incorporated by reference to the Registrant’s 8-K filed on October 20, 2005                                           |
|   |                                                                                                                        |
| (p)    | Incorporated by reference to the CytRx Oncology Corp (f/k/a Innovive Pharmaceuticals, Inc.) 10-Q filed on November 14, 2006 |
|   |                                                                                                                        |
| (q)    | Incorporated by reference to the Registrant’s 8-K filed on March 3, 2006                                              |
|   |                                                                                                                        |
| (r)    | Incorporated by reference to the Registrant’s 10-Q filed on November 13, 2006                                         |
|   |                                                                                                                        |
| (s)    | Incorporated by reference to the Registrant’s 10-K filed on April 2, 2007                                             |
|   |                                                                                                                        |
| (t)    | Incorporated by reference to the CytRx Oncology Corp (f/k/a Innovive Pharmaceuticals, Inc.) 10-K filed on March 21, 2007    |
|   |                                                                                                                        |
| (u)    | Incorporated by reference to the Registrant’s 10-Q filed on May 10, 2007                                              |
|   |                                                                                                                        |
| (v)    | Incorporated by reference to the Registrant’s 8-K filed on April 18, 2007                                             |
|   |                                                                                                                        |
| (w)    | Incorporated by reference to the Registrant’s 10-Q filed on August 9, 2007                                            |
|   |                                                                                                                        |
| (x)    | Incorporated by reference to the Registrant’s 8-K filed on June 9, 2008                                               |
|   |                                                                                                                        |
| (y)    | Incorporated by reference to the Registrant’s 10-Q filed on August 11, 2008                                           |
|   |                                                                                                                        |
| (z)    | Incorporated by reference to the Registrant’s 10-K filed on March 13, 2009                                            |
|   |                                                                                                                        |
| (aa)   | Incorporated by reference to the Registrant’s 8-K filed on July 27, 2009                                              |
|   |                                                                                                                        |
| (bb)   | Incorporated by reference to the Registrant’s 8-K filed on December 4, 2009                                           |
|   |                                                                                                                        |
| (cc)   | Incorporated by reference to the RXi Pharmaceuticals Corporation Current Report on Form 8-K filed on March 23, 2010         |

----

|                 | CYTRX CORPORATION |                                  |
|----------------------|-------------------|---------------------------------------|
|                 |              |                                  |   |
| Date: March 11, 2011 | By:               | /s/ STEVEN A. KRIEGSMAN          |   |
|                 |              | Steven A. Kriegsman                   |   |
|                 |              | President and Chief Executive Officer |   |
|                 |              |                                  |   |

| Signature                                                                                                                                                                                                                                                                                                                                                   | Title                                                          | Date           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|----------------|
| /s/ STEVEN A. KRIEGSMAN                                                       | Director, President and Chief Executive Officer                | March 11, 2011 |
| Steven A. Kriegsman                                                                                                                                                                                                                                                                                                                                         | (Principal Executive Officer)                                  |           |
|                                                                                                                                                                                                                                                                                                                                                        |                                                           |           |
| /s/ JOHN Y. CALOZ                                                                                                     | Chief Financial Officer                                        | March 11, 2011 |
| John Y. Caloz                                                                                                                                                                                                                                                                                                                                               | (Principal Financial Officer and Principal Accounting Officer) |           |
|                                                                                                                                                                                                                                                                                                                                                        |                                                           |           |
| /s/ MAX LINK                                                                                                          | Chairman of the Board                                          | March 11, 2011 |
| Max Link, Ph.D.                                                                                                                                                                                                                                                                                                                                             |                                                           |           |
|                                                                                                                                                                                                                                                                                                                                                        |                                                           |           |
| /s/ MARVIN R. SELTER                                                                                                  | Vice-Chairman of the Board                                     | March 11, 2011 |
| Marvin R. Selter                                                                                                                                                                                                                                                                                                                                            |                                                           |           |
|                                                                                                                                                                                                                                                                                                                                                        |                                                           |           |
| /s/ LOUIS IGNARRO                                                                                                     | Director                                                       | March 11, 2011 |
| Louis Ignarro, Ph.D.                                                                                                                                                                                                                                                                                                                                        |                                                           |           |
|                                                                                                                                                                                                                                                                                                                                                        |                                                           |           |
| /s/ JOSEPH RUBINFELD                                                                                                  | Director                                                       | March 11, 2011 |
| Joseph Rubinfeld, Ph.D.                                                                                                                                                                                                                                                                                                                                     |                                                           |           |
|                                                                                                                                                                                                                                                                                                                                                        |                                                           |           |
| /s/ RICHARD L. WENNEKAMP                                                                                                                                                                                                                                                                                                                               | Director                                                       | March 11, 2011 |
| Richard L. Wennekamp                                                                                                                                                                                                                                                                                                                                        |                                                           |           |

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| CytRx Corporation                                                         |   |
|---------------------------------------------------------------------------|--------|
| Consolidated Balance Sheets                                               | F-2    |
| Consolidated Statements of Operations                                     | F-3    |
| Consolidated Statements of Stockholders’ Equity                     | F-4    |
| Consolidated Statements of Cash Flows                                     | F-5    |
| Notes to Consolidated Financial Statements                                | F-6    |
| Reports of Independent Registered Public Accounting Firm                  | F-21   |
| Financial Statement Schedule II — Valuation and Qualifying Accounts | F-23   |

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|                                                                                                                                                                           |   | December 31, |         |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------------|
|                                                                                                                                                                           |   | 2010         |         |   | 2009 |   |
| ASSETS                                                                                                                                                                         |   |         |         |   |   |   |
| Current assets:                                                                                                                                                                |   |         |         |   |   |   |
| Cash and cash equivalents                                                                                                                                                      |   | $            | 6,324,430    |   |   | $ | 9,893,590 |   |
| Marketable securities                                                                                                                                                          |   |         | 20,567,861   |   |   |   | 22,750,000 |   |
| Proceeds from sale of RXi, received January 6, 2011                                                                                                                            |   |         | 6,938,603    |   |   |   | — |   |
| Receivable                                                                                                                                                                     |   |         | 259,006      |   |   |   | 139,680 |   |
| Income taxes recoverable                                                                                                                                                       |   |         | 519,158      |   |   |   | 519,158 |   |
| Interest receivable                                                                                                                                                            |   |         | 117,624      |   |   |   | 130,779 |   |
| Assets held for sale                                                                                                                                                           |   |         | —      |   |   |   | 73,634 |   |
| Prepaid expenses and other current assets                                                                                                                                      |   |         | 1,247,145    |   |   |   | 1,088,074 |   |
| Total current assets                                                                                                                                                           |   |         | 35,973,827   |   |   |   | 34,594,915 |   |
| Equipment and furnishings, net                                                                                                                                                 |   |         | 319,191      |   |   |   | 174,959 |   |
| Goodwill                                                                                                                                                                       |   |         | 183,780      |   |   |   | 183,780 |   |
| Other assets                                                                                                                                                                   |   |         | 220,292      |   |   |   | 323,235 |   |
| Total assets                                                                                                                                                                   |   | $            | 36,697,090   |   |   | $ | 35,276,889 |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                     |   |         |         |   |   |   |   |   |
| Current liabilities:                                                                                                                                                           |   |         |         |   |   |   |   |   |
| Accounts payable                                                                                                                                                               |   | $            | 1,027,924    |   |   | $ | 1,066,055 |   |
| Accrued expenses and other current liabilities                                                                                                                                 |   |         | 2,663,910    |   |   |   | 2,492,450 |   |
| Warrant liabilities                                                                                                                                                            |   |         | 2,437,281    |   |   |   | 3,370,701 |   |
| Total current liabilities                                                                                                                                                      |   |         | 6,129,115    |   |   |   | 6,929,206 |   |
| Commitment and contingencies                                                                                                                                              |   |         |         |   |   |   |   |   |
| Stockholders’ equity:                                                                                                                                                    |   |         |         |   |   |   |   |   |
| Preferred Stock, $.01 par value, 5,000,000 shares authorized, including 15,000 shares of Series A Junior Participating Preferred Stock; no shares issued and outstanding       |   |         | —      |   |   |   | — |   |
| Common stock, $.001 par value, 175,000,000 shares authorized; 109,840,445  and 109,538,821 shares issued and outstanding at December 31, 2010 and 2009, respectively |   |         | 109,840      |   |   |   | 109,539 |   |
| Additional paid-in capital                                                                                                                                                     |   |         | 229,253,122  |   |   |   | 227,441,591 |   |
| Treasury stock, at cost (633,816 shares held, at December 31, 2010 and 2009, respectively)                                                                                     |   |         | (2,279,238   | ) |   |   | (2,279,238 | ) |
| Accumulated deficit                                                                                                                                                            |   |         | (196,515,749 | ) |   |   | (196,924,209 | ) |
| Total stockholders’ equity                                                                                                                                               |   |         | 30,567,975   |   |   |   | 28,347,683 |   |
| Total liabilities and stockholders’ equity                                                                                                                               |   | $            | 36,697,090   |   |   | $ | 35,276,889 |   |

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|                                                                                    |   | Years Ended December 31, |        |
|-----------------------------------------------------------------------------------------|--------|--------------------------|-------------|
|                                                                                    |   | 2010                     |        |   | 2009 |   |   | 2008 |   |
| Revenue:                                                                                |   |                     |        |   |   |   |   |   |   |
| Service revenue                                                                         |   | $                        | —     |   |   | $ | 9,400,397 |   |   | $ | 6,166,150 |   |
| Licensing revenue                                                                       |   |                     | 100,000     |   |   |   | 100,000 |   |   |   | 100,000 |   |
|                                                                                    |   |                     | 100,000     |   |   |   | 9,500,397 |   |   |   | 6,266,150 |   |
| Expenses:                                                                               |   |                     |        |   |   |   |   |   |   |   |   |   |
| Research and development                                                                |   |                     | 8,506,937   |   |   |   | 7,541,998 |   |   |   | 10,465,591 |   |
| General and administrative                                                              |   |                     | 8,235,993   |   |   |   | 9,127,845 |   |   |   | 10,932,522 |   |
| In-process research and development                                                     |   |                     | —     |   |   |   | — |   |   |   | 8,012,154 |   |
| Depreciation and amortization                                                           |   |                     | 107,666     |   |   |   | 475,316 |   |   |   | 624,980 |   |
|                                                                                    |   |                     | 16,850,596  |   |   |   | 17,145,159 |   |   |   | 30,035,247 |   |
| Loss before other income                                                                |   |                     | (16,750,596 | ) |   |   | (7,644,762 | ) |   |   | (23,769,097 | ) |
| Other income:                                                                           |   |                     |        |   |   |   |   |   |   |   |   |   |
| Interest and dividend income                                                            |   |                     | 303,592     |   |   |   | 349,490 |   |   |   | 1,203,629 |   |
| Other income, net                                                                       |   |                     | 95,827      |   |   |   | 93,950 |   |   |   | 219,489 |   |
| Gain on warrant derivative liability                                                    |   |                     | 933,420     |   |   |   | 656,905 |   |   |   | — |   |
| Gain on sale of affiliate’s shares - RXi Pharmaceutical                           |   |                     | 15,826,217  |   |   |   | 1,224,951 |   |   |   | — |   |
| Equity in loss of affiliate – RXi Pharmaceutical                                  |   |                     | —     |   |   |   | — |   |   |   | (3,915,514 | ) |
|                                                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| Net profit (loss) before provision for income taxes                                     |   |                     | 408,460     |   |   |   | (5,319,466 | ) |   |   | (26,261,493 | ) |
| Income tax benefit (expense)                                                            |   |                     | —     |   |   |   | 519,158 |   |   |   | (873,003 | ) |
| Net profit (loss)                                                                       |   |                     | 408,460     |   |   |   | (4,800,308 | ) |   |   | (27,134,496 | ) |
| Deemed dividend for anti-dilution adjustments made to outstanding common stock warrants |   |                     | —     |   |   |   | — |   |   |   | (756,954 | ) |
| Net profit (loss)                                                                       |   |                     | 408,460     |   |   |   | (4,800,308 | ) |   |   | (27,891,450 | ) |
| Add: Loss of noncontrolling interest                                                    |   |                     | —     |   |   |   | — |   |   |   | 88,375 |   |
| Net profit (loss) attributable to CytRx Corporation                                     |   | $                        | 408,460     |   |   | $ | (4,800,308 | ) |   | $ | (27,803,075 |   |
| Basic and diluted profit (loss) per share                                               |   | $                        | 0.00        |   |   | $ | (0.05 | ) |   | $ | (0.30 | ) |
| Basic weighted average shares outstanding                                               |   |                     | 109,484,492 |   |   |   | 99,978,124 |   |   |   | 91,383,934 |   |
| Diluted weighted average shares outstanding                                             |   |                     | 111,442,278 |   |   |   | 99,978,124 |   |   |   | 91,383,934 |   |

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|                                                                       |   |          |        |   | Additional |   |    |        |   |   |        |   |   |           |         |   |     |   |
|----------------------------------------------------------------------------|--------|---------------|-------------|--------|------------|--------|---------|-------------|--------|--------|-------------|--------|--------|----------------|--------------|--------|----------|--------|
|                                                                       |   | Common Stock  |        |   | Paid-In    |   |    | Accumulated |   |   | Treasury    |   |   | Noncontrolling |         |   |     |   |
|                                                                       |   | Shares Issued |        |   | Amount     |   |    | Capital     |   |   | Deficit     |   |   | Stock          |         |   | Interest |   |   | Total |   |
| Balance at December 31, 2007                                               |   |          | 90,397,867  |   |       | $      | 90,398  |        |   | $      | 203,905,691 |   |   | $              | (161,492,812 | )      |     | $      | (2,279,238 | ) |   | $ | (448,671 | ) |   | $ | 40,312,414 |   |
| Issuance of stock options/warrants for compensation, services and licenses |   |          | —     |   |       |   | — |        |   |   | 2,029,209   |   |   |           | —      |   |     |   | — |   |   |   |   |   |   |   | 2,029,209 |   |
| Options and warrants exercised                                             |   |          | 1,006,402   |   |       |   | 1,006   |        |   |   | 975,782     |   |   |           | —      |   |     |   | — |   |   |   |   |   |   |   | 976,788 |   |
| Common stock issued in connection with the acquisition of Innovive         |   |          | 2,574,179   |   |       |   | 2,574   |        |   |   | 2,339,832   |   |   |           | —      |   |     |   | — |   |   |   |   |   |   |   | 2,342,406 |   |
| Deemed dividend for anti-dilution adjustment                               |   |          |        |   |       |   | — |        |   |   | 756,954     |   |   |           | (756,954     | )      |     |   | — |   |   |   |   |   |   |   | — |   |
| Dividend of RXi stock                                                      |   |          | —     |   |       |   | — |        |   |   | —     |   |   |           | (2,828,014   | )      |     |   | — |   |   |   |   |   |   |   | (2,828,014 | ) |
| Net loss                                                                   |   |          | —     |   |       |   | — |        |   |   | —     |   |   |           | (27,046,121  | )      |     |   | — |   |   |   | (88,375 | ) |   |   | (27,134,496 | ) |
| Balance at December 31, 2008                                               |   |          | 93,978,448  |   |       | $      | 93,978  |        |   | $      | 210,007,468 |   |   | $              | (192,123,901 | )      |     | $      | (2,279,238 | ) |   | $ | — |   |   | $ | 15,698,307 |   |
| Common stock and warrants issued in connection with private placements     |   |          | 15,252,040  |   |       |   | 15,253  |        |   |   | 14,230,710  |   |   |           | —      |   |     |   | — |   |   |   |   |   |   |   | 14,245,963 |   |
| Issuance of stock options/warrants for compensation and services           |   |          | —     |   |       |   | — |        |   |   | 2, 867,638  |   |   |           | —      |   |     |   | — |   |   |   |   |   |   |   | 2,867,638 |   |
| Common stock issued for services                                           |   |          | 50,000      |   |       |   | 50      |        |   |   | 42,950      |   |   |           | —      |   |     |   | — |   |   |   |   |   |   |   | 43,000 |   |
| Options and warrants exercised                                             |   |          | 258,333     |   |       |   | 258     |        |   |   | 292,825     |   |   |           | —      |   |     |   | — |   |   |   |   |   |   |   | 293,083 |   |
| Net loss                                                                   |   |          | —     |   |       |   | — |        |   |   | —     |   |   |           | (4,800,308   | )      |     |   | — |   |   |   | — |   |   |   | (4,800,308 | ) |
| Balance at December 31, 2009                                               |   |          | 109,538,821 |   |       | $      | 109,539 |        |   | $      | 227,441,591 |   |   | $              | (196,924,209 | )      |     | $      | (2,279,238 | ) |   | $ | — |   |   | $ | 28,347,683 |   |
| Issuance of stock options/warrants for compensation and services           |   |          | —     |   |       |   | — |        |   |   | 1,620,088   |   |   |           | —      |   |     |   | — |   |   |   |   |   |   |   | 1,620,088 |   |
| Common stock issued for services                                           |   |          | 50,000      |   |       |   | 50      |        |   |   | 44,450      |   |   |           | —      |   |     |   | — |   |   |   |   |   |   |   | 44,500 |   |
| Options and warrants exercised                                             |   |          | 251,624     |   |       |   | 251     |        |   |   | 146,993     |   |   |           | —      |   |     |   | — |   |   |   |   |   |   |   | 147,244 |   |
| Net profit                                                                 |   |          | —     |   |       |   | — |        |   |   | —     |   |   |           | 408,460      |   |     |   | — |   |   |   | — |   |   |   | 408,460 |   |
| Balance at December 31, 2010                                               |   |          | 109,840,445 |   |       | $      | 109,840 |        |   | $      | 229,253,122 |   |   | $              | (196,515,749 | )      |     | $      | (2,279,238 | ) |   | $ | — |   |   | $ | 30,567,975 |   |

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|                                                                                          |   | Years Ended December 31, |        |
|-----------------------------------------------------------------------------------------------|--------|--------------------------|-------------|
|                                                                                          |   | 2010                     |        |   | 2009 |   |   | 2008 |   |
| Cash flows from operating activities:                                                         |   |                     |        |   |   |   |   |   |   |
| Net profit (loss) attributable to CytRx Corporation                                           |   | $                        | 408,460     |   |   | $ | (4,800,308 | ) |   | $ | (27,046,121 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities:                   |   |                     |        |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                 |   |                     | 107,666     |   |   |   | 475,316 |   |   |   | 624,980 |   |
| Retirement of fixed assets                                                                    |   |                     | 63,853      |   |   |   | 103,241 |   |   |   | 262 |   |
| Interest receivable on marketable securities                                                  |   |                     | —     |   |   |   | — |   |   |   | (48,452 | ) |
| Loss of noncontrolling interest                                                               |   |                     | —     |   |   |   | — |   |   |   | (88,375 | ) |
| Fair value adjustment of warrant liability                                                    |   |                     | (933,420    | ) |   |   | (656,905 | ) |   |   | — |   |
| Impairment loss on fixed assets                                                               |   |                     | —     |   |   |   | 1,187,305 |   |   |   | — |   |
|  Equity in loss of affiliate                                                             |   |                     | —     |   |   |   | — |   |   |   | 3,915,515 |   |
| Non-cash gain on transfer of RXi common stock                                                 |   |                     | —     |   |   |   | — |   |   |   | (226,579 | ) |
| Gain on sale of affiliate’s shares                                                      |   |                     | (15,826,217 | ) |   |   | (1,224,951 | ) |   |   | — |   |
| Non-cash expense on the acquisition of Innovive’s in-process research & development |   |                     | —     |   |   |   | — |   |   |   | 8,012,154 |   |
| Stock option and warrant expense                                                              |   |                     | 1,620,088   |   |   |   | 2,867,638 |   |   |   | 2,103,752 |   |
| Common stock issued for services                                                              |   |                     | 44,450      |   |   |   | 43,000 |   |   |   | 244,860 |   |
| Changes in assets and liabilities:                                                            |   |                     |        |   |   |   |   |   |   |   |   |   |
| Accounts receivable                                                                           |   |                     | (119,326    | ) |   |   | (12,400 | ) |   |   | 238,131 |   |
| Interest receivable                                                                           |   |                     | 13,155      |   |   |   | (130,779 | ) |   |   | — |   |
| Income taxes recoverable                                                                      |   |                     | —     |   |   |   | 303,535 |   |   |   | (215,623 | ) |
| Prepaid expenses and other current assets                                                     |   |                     | (56,127     | ) |   |   | (594,668 | ) |   |   | 478,965 |   |
| Accounts payable                                                                              |   |                     | (38,131     | ) |   |   | 397,633 |   |   |   | (1,181,116 | ) |
| Deferred revenue                                                                              |   |                     | —     |   |   |   | (9,400,397 | ) |   |   | (6,166,151 | ) |
| Accrued expenses and other current liabilities                                                |   |                     | 171,459     |   |   |   | (64,454 | ) |   |   | (56,146 | ) |
| Total adjustments                                                                             |   |                     | (14,952,550 | ) |   |   | (7,313,956 | ) |   |   | 7,636,177 |   |
| Net cash used in operating activities                                                         |   |                     | (14,544,090 | ) |   |   | (12,114,264 | ) |   |   | (19,409,944 | ) |
|                                                                                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                         |   |                     |        |   |   |   |   |   |   |   |   |   |
| Net Proceeds (Purchase) from sale of marketable securities                                    |   |                     | 2,182,139   |   |   |   | (22,750,000 | ) |   |   | 10,000,000 |   |
| Proceeds from sale of fixed assets                                                            |   |                     | —     |   |   |   | 119,929 |   |   |   | — |   |
| Proceeds from sale of assets held for sale                                                    |   |                     | 73,634      |   |   |   | — |   |   |   | — |   |
| Deconsolidation of subsidiary                                                                 |   |                     | —     |   |   |   | — |   |   |   | (10,359,278 | ) |
| Proceeds from sale of RXi shares                                                              |   |                     | 8,887,614   |   |   |   | 1,224,951 |   |   |   | — |   |
| Cash outlay in the acquisition of Innovive, relating to its accounts payable                  |   |                     | —     |   |   |   | — |   |   |   | (5,669,749 | ) |
| Purchases of equipment and furnishings                                                        |   |                     | (315,751    | ) |   |   | (195,449 | ) |   |   | (994,326 | ) |
| Net cash provided by (used in) investing activities                                           |   |                     | 10,827,636  |   |   |   | (21,600,569 | ) |   |   | (7,023,353 | ) |
|                                                                                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                         |   |                     |        |   |   |   |   |   |   |   |   |   |
| Net proceeds from exercise of stock options and warrants                                      |   |                     | 147,294     |   |   |   | 293,083 |   |   |   | 976,808 |   |
| Common stock issued in accordance with financing                                              |   |                     | —     |   |   |   | 18,273,568 |   |   |   | — |   |
| Net proceeds from issuances of common stock                                                   |   |                     | —     |   |   |   | — |   |   |   | — |   |
| Capital contributions from minority interest                                                  |   |                     | —     |   |   |   | — |   |   |   | — |   |
| Net cash provided by financing activities                                                     |   |                     | 147,294     |   |   |   | 18,566,651 |   |   |   | 976,808 |   |
|                                                                                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                                     |   |                     | (3,569,160  | ) |   |   | (15,148,182 | ) |   |   | (25,456,489 | ) |
| Cash and cash equivalents at beginning of year                                                |   |                     | 9,893,590   |   |   |   | 25,041,772 |   |   |   | 50,498,261 |   |
| Cash and cash equivalents at end of year                                                      |   | $                        | 6,324,430   |   |   | $ | 9,893,590 |   |   | $ | 25,041,772 |   |
|                                                                                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                             |   |                     |        |   |   |   |   |   |   |   |   |   |
| Cash paid during the years for income taxes                                                   |   | $                        | —     |   |   | $ | — |   |   | $ | 1,093,764 |   |
| Supplemental disclosures of non-cash financing activities:                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| Acquisition of property and equipment through accrued liabilities                             |   | $                        | —     |   |   | $ | — |   |   | $ | 130,955 |   |
| Warrants issued in connection with financing                                                  |   | $                        | —     |   |   | $ | 4,027,606 |   |   | $ | — |   |
| Warrants issued for prepaid services                                                          |   | $                        | —     |   |   | $ | 133,391 |   |   | $ | — |   |

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| (In thousands)            |   | Level I |         |   | Level II |   |    | Level III |   |   | Total   |   |
|---------------------------|--------|---------|--------------|--------|----------|--------|---------|-----------|--------|--------|---------|--------|
| Cash and cash equivalents |   | $       | 6,324   |   |     | $      | — |      |   | $      | — |   |   | $ | 6,324 |   |
| Marketable securities     |   |    | 20,568  |   |     |   | — |      |   |   | — |   |   |   | 20,568 |   |
| Proceeds from sale of RXi |   |    | 6,939   |   |     |   | — |      |   |   | — |   |   |   | 6,939 |   |
| Warrant Liability         |   |    | —      |   |     |   | 2,437   |      |   |   | — |   |   |   | 2,437 |   |

| (In thousands)            |   | Level I |         |   | Level II |   |    | Level III |   |   | Total   |   |
|---------------------------|--------|---------|--------------|--------|----------|--------|---------|-----------|--------|--------|---------|--------|
| Cash and cash equivalents |   | $       | 9,894   |   |     | $      | — |      |   | $      | — |   |   | $ | 9,894 |   |
| Marketable securities     |   |    | 22,750  |   |     |   | — |      |   |   | — |   |   |   | 22,750 |   |
| Warrant Liability         |   |    | —      |   |     |   | 3,371   |      |   |   | — |   |   |   | 3,371 |   |

|                             |   | Fair Value Measurements |    |
|----------------------------------|--------|-------------------------|---------|
|                             |   | as of December 31, 2009 |    |
| (in thousands)                   |   | Level 1                 |    |   | Level 2 |   |   | Level 3 |   |   | Total Losses |
| Long-lived assets held for sale: |   |                    |    |   |   |   |   |   |   |   |   |
| Plant and equipment, net         |   | $                       | — |   |   | $ | 74 |   |   | $ | — |   |  $ |  1,187 |

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| (in thousands)           |   |                    |   |
|--------------------------|--------|-------------------------|--------|
| Assets:                  |   |  December 31, 2009 |   |
| Plant and equipment, net |   | $                       | 74     |   |
| Assets held for sale     |   | $                       | 74     |   |

|                                  |   | 2010   |   |   | 2009   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|
| Equipment and furnishings             |   | $      | 398    |   |   | $      | 334 |   |
| Less — accumulated depreciation |   |   | (79    | )      |   |   | (159 | ) |
| Equipment and furnishings, net        |   |   | 319    |   |   |   | 175 |   |
|                                  |   |   |   |   |   |   |   |   |

|                                 |   | 2010   |    |   | 2009   |   |
|--------------------------------------|--------|--------|---------|--------|--------|--------|
| Professional fees                    |   | $      | 423     |   |   | $      | 423 |   |
| Research and development costs       |   |   | 2,031   |   |   |   | 1,255 |   |
| Wages, bonuses and employee benefits |   |   | 158     |   |   |   | 208 |   |
| Income taxes                         |   |   | — |   |   |   | — |   |
| Other                                |   |   | 52      |   |   |   | 606 |   |
| Total                                |   | $      | 2,664   |   |   | $      | 2,492 |   |

----

|                |   | Operating Leases (1)(2) |   |   | Employment Agreements (3) |   |    | Subtotal |   |   | Research and Development (4) |   |   | Tota   |    |
|---------------------|--------|-------------------------|--------|--------|---------------------------|--------|---------|----------|--------|--------|------------------------------|--------|--------|--------|---------|
| 2011                |   | $                       | 547    |   |                      | $      | 2,455   |     |   | $      | 3,002                        |   |   | $      | 8,667   |   |   | $ | 11,669 |   |
| 2012                |   |                    | 471    |   |                      |   | — |     |   |   | 471                          |   |   |   | 3,240   |   |   |   | 3,711 |   |
| 2013                |   |                    | 332    |   |                      |   | — |     |   |   | 332                          |   |   |   | — |   |   |   | 332 |   |
| 2014                |   |                    | 386    |   |                      |   | — |     |   |   | 386                          |   |   |   | — |   |   |   | 386 |   |
| 2015 and thereafter |   |                    | 55     |   |                      |   | — |     |   |   | 55                           |   |   |   | — |   |   |   | 55 |   |
| Total               |   | $                       | 1,791  |   |                      | $      | 2,455   |     |   | $      | 4,246                        |   |   | $      | 11,907  |   |   | $ | 16,153 |   |

| (1) | Operating leases are primarily facility lease related obligations, as well as equipment lease obligations with third party vendors. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| (2)  |  The Company is entitled to receive future rental income under subleases in place which would be offset against future operating lease obligations as follows: $350,000 in 2011 and $235,000 in 2012. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Employment agreements include management contracts, which have been revised from time to time, provide for minimum salary levels, adjusted annually at the discretion of the Company’s Compensation Committee, as well as for minimum bonuses that are payable. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Research and development obligations relate primarily to clinical trials. Most of these purchase obligations are cancelable. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

----

----

|                    |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|-------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Risk-free interest rate |   |   | 2.50   | %      |   |   | 1.95   | %      |   |   | 2.68 | % |
| Expected volatility     |   |   | 91     | %      |   |   | 97     | %      |   |   | 102 | % |
| Expected lives (years)  |   |   | 6      |   |   |   | 6      |   |   |   | 6 |   |
| Expected dividend yield |   |   | 0.00   | %      |   |   | 0.00   | %      |   |   | 0.00 | % |

|                                                                  |   | Stock Options |      |   | Weighted AverageExercise Price |   |
|-----------------------------------------------------------------------|--------|---------------|-----------|--------|--------------------------------|--------|
|                                                                  |   | 2010          |      |   | 2009                           |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Outstanding — beginning of year                                 |   |          | 8,012,090 |   |                           |   | 6,409,940 |   |   |   | 4,932,273 |   |   | $ | 1.99 |   |   | $ | 1.99 |   |   | $ | 2.46 |   |
| Granted                                                               |   |          | 1,715,500 |   |                           |   | 2,351,000 |   |   |   | 2,021,500 |   |   |   | 0.98 |   |   |   | 1.00 |   |   |   | 0.79 |   |
| Exercised                                                             |   |          | (223,633  | )      |                           |   | (8,333 | ) |   |   | (54,737 | ) |   |   | 0.66 |   |   |   | 0.37 |   |   |   | 0.92 |   |
| Forfeited                                                             |   |          | (626,497  | )      |                           |   | (713,018 | ) |   |   | (473,096 | ) |   |   | 1.01 |   |   |   | 2.57 |   |   |   | 2.08 |   |
| Expired                                                               |   |          | —   |   |                           |   | (27,499 | ) |   |   | (16,000 | ) |   |   | — |   |   |   | 1.07 |   |   |   | 1.00 |   |
| Outstanding — end of year                                       |   |          | 8,877,460 |   |                           |   | 8,012,090 |   |   |   | 6,409,940 |   |   |   | 1.07 |   |   |   | 1.02 |   |   |   | 1.99 |   |
| Exercisable at end of year                                            |   |          | 5,701,946 |   |                           |   | 4,998,400 |   |   |   | 4,109,839 |   |   | $ | 0.99 |   |   | $ | 1.16 |   |   | $ | 2.07 |   |
| Weighted average fair value of stock options granted during the year: |   | $             | 0.75      |   |                           | $      | 0.77 |   |   | $ | 0.63 |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|            |   |  Stock Options |      |   | Weighted AverageGrant Date FairValue per Share |   |
|---------------------------|--------|---------------------|-----------|--------|------------------------------------------------|--------|
|                      |   | 2010                |      |   | 2009                                           |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Nonvested at January 1,   |   |                | 3,013,690 |   |                                           |   | 2,300,100 |   |   |   | 1,721,952 |   |   | $ | 0.70 |   |   | $ | 1.52 |   |   | $ | 2.92 |   |
| Granted                   |   |                | 1,715,500 |   |                                           |   | 2,351,000 |   |   |   | 2,021,500 |   |   |   | 0.75 |   |   |   | 0.77 |   |   |   | 0.63 |   |
| Vested                    |   |                | (927,179  | )      |                                           |   | (924,392 | ) |   |   | (970,256 | ) |   |   | 0.75 |   |   |   | 2.10 |   |   |   | 2.10 |   |
| Pre-vested forfeitures    |   |                | (626,497  | )      |                                           |   | (713,018 | ) |   |   | (473,096 | ) |   |   | 0.62 |   |   |   | 2.11 |   |   |   | 1.74 |   |
| Nonvested at December 31, |   |                | 3,175,514 |   |                                           |   | 3,013,690 |   |   |   | 2,300,100 |   |   | $ | 0.75 |   |   | $ | 0.70 |   |   | $ | 1.52 |   |

|                                                             |   | Stock Options |     |   | Weighted AverageExercise Price |   |
|-----------------------------------------------------------------------|--------|---------------|----------|--------|--------------------------------|--------|
|                                                                  |   | 2010          |     |   | 2009                           |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Outstanding — beginning of year                                 |   |          | 995,000  |   |                           |   | 995,000 |   |   |   | 1,067,000 |   |   | $ | 0.91 |   |   | $ | 0.91 |   |   | $ | 1.44 |   |
| Granted                                                               |   |          | 395,000  |   |                           |   | — |   |   |   | 350,000 |   |   |   | 1.22 |   |   |   | — |   |   |   | 0.35 |   |
| Exercised                                                             |   |          | —  |   |                           |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Forfeited                                                             |   |          | —  |   |                           |   | — |   |   |   | (402,000 | ) |   |   | — |   |   |   | — |   |   |   | 1.85 |   |
| Expired                                                               |   |          | (395,000 | )      |                           |   | — |   |   |   | (20,000 | ) |   |   | 1.28 |   |   |   | — |   |   |   | 0.30 |   |
| Outstanding — end of year                                       |   |          | 995,000  |   |                           |   | 995,000 |   |   |   | 995,000 |   |   |   | 0.9 |   |   |   | 0.91 |   |   |   | 0.91 |   |
| Exercisable at end of year                                            |   |          | 707,541  |   |                           |   | 545,080 |   |   |   | 445,000 |   |   | $ | 1.00 |   |   | $ | 1.00 |   |   | $ | 1.18 |   |
| Weighted average fair value of stock options granted during the year: |   | $             | 0.87     |   |                           | $      | 0 |   |   | $ | 0.33 |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                    |   | 2010   |   |   | 2009   |   |    | 2008   |   |
|-------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
| Risk-free interest rate |   |   | 2.37   | %      |   |   | — |   |   |   | 2.68 | % |
| Expected volatility     |   |   | 92     | %      |   |   | — |   |   |   | 123 | % |
| Expected lives (years)  |   |   | 5      |   |   |   | — |   |   |   | 10 |   |
| Expected dividend yield |   |   | 0      | %      |   |   | — |   |   |   | 0 | % |

----

|            |   |  Stock Options |     |   | Weighted AverageGrant Date FairValue per Share |   |
|---------------------------|--------|---------------------|----------|--------|------------------------------------------------|--------|
|                      |   | 2010                |     |   | 2009                                           |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Nonvested at January 1,   |   |                | 449,920  |   |                                           |   | 550,000 |   |   |   | 250,000 |   |   | $ | 1.38 |   |   | $ | 0.58 |   |   | $ | 1.00 |   |
| Granted                   |   |                | 395,000  |   |                                           |   | — |   |   |   | 350,000 |   |   |   | 0.87 |   |   |   | — |   |   |   | 0.33 |   |
| Vested                    |   |                | (162,461 | )      |                                           |   | (100,080 | ) |   |   | (50,000 | ) |   |   | 0.33 |   |   |   | 0.33 |   |   |   | 2.33 |   |
| Pre-vested forfeitures    |   |                | (395,000 | )      |                                           |   | — |   |   |   | — |   |   |   | 1.12 |   |   |   | — |   |   |   | — |   |
| Nonvested at December 31, |   |                | 287,459  |   |                                           |   | 449,920 |   |   |   | 550,000 |   |   | $ | 1.98 |   |   | $ | 1.38 |   |   | $ | 0.58 |   |

|  Range ofExercise Prices |              |   |   Number of Options |   |      | Weighted AverageRemainingContractual Life(years) |   |   |  Weighted AverageExercise Price |   |   | Number ofOptionsExercisable |   |   |  Weighted AverageContractual Life |   |      |  Weighted AverageExercise Price |   |
|-------------------------------|-------------------|--------|-------------------------------|--------|-----------|--------------------------------------------------|--------|--------|--------------------------------------|--------|--------|-----------------------------|--------|--------|----------------------------------------|--------|-----------|--------------------------------------|--------|
| $                             | 0.30 — 1.00 |   |                          |   | 2,152,607 |                                             |   |   | 7.22                                 |   |   | $                           | 0.59   |   |                                   |   | 1,703,405 |                                 |   |   | 7.22 |   |   | $ | 0.61 |   |
| $                             | 1.01 — 1.50 |   |                          |   | 7,127,983 |                                             |   |   | 7.00                                 |   |   |                        | 1.10   |   |                                   |   | 4,160,212 |                                 |   |   | 7.00 |   |   |   | 1.14 |   |
| $                             | 2.35 — 3.33 |   |                          |   | 528,000   |                                             |   |   | 3.55                                 |   |   |                        | 2.27   |   |                                   |   | 528,000   |                                 |   |   | 3.55 |   |   |   | 2.27 |   |
|                          |              |   |                          |   |      |                                             |   |   |                                 |   |   |                        |   |   |                                   |   |      |                                 |   |   |   |   |   |   |   |   |
|                          |              |   |                          |   | 9,808,590 |                                             |   |   | 6.86                                 |   |   | $                           | 1.05   |   |                                   |   | 6,391,617 |                                 |   |   | 6.86 |   |   | $ | 1.09 |   |

|                                            |   | 2008   |    |
|-------------------------------------------------|--------|--------|---------|
| Research and development — employee       |   | $      | 28,000  |   |
| General and administrative — employee     |   |   | 369,000 |   |
| Total employee stock-based compensation         |   | $      | 397,000 |   |
|                                            |   |   |    |   |
| Research and development — non-employee   |   | $      | 121,000 |   |
| General and administrative — non-employee |   |   | — |   |
| Total non-employee stock-based compensation     |   | $      | 121,000 |   |

|                                                             |   | Warrants |       |   | Weighted AverageExercise Price |   |
|------------------------------------------------------------------|--------|----------|------------|--------|--------------------------------|--------|
|                                                             |   | 2010     |       |   | 2009                           |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Outstanding — beginning of year                            |   |     | 15,418,178 |   |                           |   | 10,634,848 |   |   |   | 13,031,515 |   |   | $ | 1.50 |   |   | $ | 1.40 |   |   | $ | 1.87 |   |
| Granted                                                          |   |     | 1,200,000  |   |                           |   | 6,328,330 |   |   |   | — |   |   |   | 1.80 |   |   |   | 1.61 |   |   |   | — |   |
| Exercised                                                        |   |     | (40,000    | )      |                           |   | (250,000 | ) |   |   | (951,665 | ) |   |   | 0.26 |   |   |   | 1.16 |   |   |   | 0.97 |   |
| Forfeited                                                        |   |     | —    |   |                           |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Expired                                                          |   |     | (7,516,104 | )      |                           |   | (1,295,000 | ) |   |   | (1,445,002 | ) |   |   | 2.04 |   |   |   | 1.28 |   |   |   | 2.60 |   |
| Outstanding — end of year                                  |   |     | 9,062,074  |   |                           |   | 15,418,178 |   |   |   | 10,634,848 |   |   |   | 1.47 |   |   |   | 1.50 |   |   |   | 1.40 |   |
| Exercisable at end of year                                       |   |     | 8,762,074  |   |                           |   | 15,418,178 |   |   |   | 10,634,848 |   |   | $ | 1.50 |   |   | $ | 1.50 |   |   | $ | 1.40 |   |
| Weighted average fair value of warrants granted during the year: |   | $        | 0.55       |   |                           | $      | 1.61 |   |   | $ | — |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                              |              |   | Warrants Outstanding        |   |      |                                            |   |   |                                |   |
|---------------------------------------------------|-------------------|--------|-----------------------------|--------|-----------|-------------------------------------------------|--------|--------|-------------------------------------|--------|
|      Range of Exercise Prices |              |   |   Number ofShares |   |      | WeightedAverageRemainingContractual Life(years) |   |   |  WeightedAverageExercise Price |   |   | WarrantsNumber ofSharesExercisable |   |   |  ExercisableWeighted AverageExercise Price |   |
| $                                                 | 0.26 — 1.00 |   |                        |   | 1,320,000 |                                            |   |   | 3.75                                |   |   | $ | 0.49 |   |   |   | 1,020,000 |   |   | $ | 0.40 |   |
| $                                                 | 1.01 — 2.00 |   |                        |   | 7,257,493 |                                            |   |   | 2.65                                |   |   |   | 1.55 |   |   |   | 7,257,396 |   |   |   | 1.55 |   |
| $                                                 | 2.01 — 3.00 |   |                        |   | 324,581   |                                            |   |   | 4.83                                |   |   |   | 2.75 |   |   |   | 324,678 |   |   |   | 2.75 |   |
| $                                                 | 3.01 — 3.50 |   |                        |   | 160,000   |                                            |   |   | 4.86                                |   |   |   | 3.50 |   |   |   | 160,000 |   |   |   | 3.50 |   |
|                                              |              |   |                        |   | 9,062,074 |                                            |   |   | 2.93                                |   |   | $ | 1.47 |   |   |   | 8,762,074 |   |   | $ | 1.50 |   |

----

|                             |   | December 31, |    |
|----------------------------------|--------|--------------|---------|
|                             |   | 2010         |    |   | 2009 |   |
| Deferred tax assets:             |   |         |    |   |   |   |
| Net operating loss carryforwards |   | $            | 38,715  |   |   | $ | 35,285 |   |
| Tax credit carryforwards         |   |         | 8,663   |   |   |   | 8,957 |   |
| Equipment, furnishings and other |   |         | 8,554   |   |   |   | 8,142 |   |
|                             |   |         |    |   |   |   |   |   |
| Total deferred tax assets        |   |         | 55,932  |   |   |   | 52,384 |   |
| Deferred tax liabilities         |   |         | (830    | ) |   |   | (560 | ) |
| Net deferred tax assets          |   |         | 55,102  |   |   |   | 51,824 |   |
| Valuation allowance              |   |         | (55,102 | ) |   |   | (51,824 | ) |
|                             |   | $            | — |   |   | $ | — |   |

|                                               |   | Years ended December 31, |    |
|----------------------------------------------------|--------|--------------------------|---------|
|                                               |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
| Federal benefit at statutory rate                  |   | $                        | 139     |   |   | $ | (1,809 | ) |   | $ | (8,899 | ) |
| State income taxes, net of Federal taxes           |   |                     | 24      |   |   |   | (310 | ) |   |   | (1,525 | ) |
| Permanent differences                              |   |                     | 22      |   |   |   | (136 | ) |   |   | 16,272 |   |
| Book gain in excess of tax gain                    |   |                     | (3,630  | ) |   |   | — |   |   |   | — |   |
| Provision related to change in valuation allowance |   |                     | 3,278   |   |   |   | 3,651 |   |   |   | (5,073 | ) |
| Net change in research and development tax credits |   |                     | — |   |   |   | (2,826 | ) |   |   | (2,207 | ) |
| Other, net                                         |   |                     | 167     |   |   |   | 911 |   |   |   | (2,304 | ) |
|                                               |   | $                        | 0       |   |   | $ | (519 | ) |   | $ | 872 |   |

|                                                        |   | Quarters Ended                        |    |
|-------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                        |   | March 31                              |    |   | June 30 |   |   | September 30 |   |   | December 31 |   |
|                                                        |   | (In thousands, except per share data) |    |
| 2010                                                        |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Total revenues                                              |   | $                                     | — |   |   | $ | — |   |   | $ | — |   |   | $ | 100 |   |
| Net income (loss)                                           |   |                                  | (611    | ) |   |   | 1,294 |   |   |   | (4,414 | ) |   |   | 4,140 |   |
| Net income (loss) applicable to common stockholders         |   | $                                     | (611    | ) |   | $ | 1,294 |   |   | $ | (4,414 | ) |   | $ | 4,140 |   |
| Basic and diluted loss per share applicable to common stock |   | $                                     | (0.01   | ) |   | $ | 0.01 |   |   | $ | (0.04 | ) |   | $ | 0.04 |   |
|                                                        |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                                        |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                                              |   | $                                     | 1,483   |   |   | $ | 1,000 |   |   | $ | 6,954 |   |   | $ | 100 |   |
| Net income (loss)                                           |   |                                  | (3,973  | ) |   |   | (2,226 | ) |   |   | 3,863 |   |   |   | (2,983 | ) |
| Net income (loss) applicable to common stockholders         |   | $                                     | (3,973  | ) |   | $ | (2,226 | ) |   | $ | 3,863 |   |   | $ | (2,983 | ) |
| Basic and diluted loss per share applicable to common stock |   | $                                     | (0.04   | ) |   | $ | (0.02 | ) |   | $ | 0.04 |   |   | $ | (0.03 | ) |

----

----

----

----

|                                                                      |   |                         |       |   | Additions                     |   |    |                      |   |   |                    |   |
|---------------------------------------------------------------------------|--------|------------------------------|------------|--------|-------------------------------|--------|---------|---------------------------|--------|--------|-------------------------|--------|
|   Description                                                   |   | Balance at Beginning of Year |       |   | Charged to Costs and Expenses |   |    | Charged to Other Accounts |   |   |    Deductions |   |   |   Balance atEnd of Year |   |
| Reserve Deducted in the Balance Sheet from the Asset to Which it Applies: |   |                         |       |   |                          |   |    |                      |   |   |                    |   |   |   |   |
| Allowance for Deferred Tax Assets                                         |   |                         |       |   |                          |   |    |                      |   |   |                    |   |   |   |   |
| Year ended December 31, 2010                                              |   | $                            | 51,824,000 |   |                          | $      | — |                      |   | $      | 3,278,000               |   |   | $ | — |   |   | $ | 55,102,000 |   |
| Year ended December 31, 2009                                              |   | $                            | 48,998,000 |   |                          | $      | — |                      |   | $      | 2,826,000               |   |   | $ | — |   |   | $ | 51,824,000 |   |
| Year ended December 31, 2008                                              |   | $                            | 53,246,000 |   |                          | $      | — |                      |   | $      | —                 |   |   | $ | 4,248,000 |   |   | $ | 48,998,000 |   |

----