Document:

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                                                                   EXHIBIT 10.73

                               DATED MAY 19, 2004

                          -----------------------------

                      IMPERIAL COLLEGE INNOVATIONS LIMITED

                                       AND

                   IMPERIAL COLLEGE OF SCIENCE AND TECHNOLOGY

                                       AND

                                CYTRX CORPORATION

                          -----------------------------

                            PATENT LICENCE AGREEMENT

                          -----------------------------

                                [WRAGGE&CO LOGO]

                           BIRMINGHAM LONDON BRUSSELS

      TEL +44 (0)870 903 1000 FAX +44 (0)870 904 1099 MAIL@WRAGGE.COM
                                 WWW.WRAGGE.COM
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THIS AGREEMENT is made on May 19, 2004

BETWEEN:

(1)      IMPERIAL COLLEGE INNOVATIONS LIMITED (Registered in England No 2060639)
         whose registered office is at Sherfield Building, Imperial College,
         London SW7 2AZ ("ICIL"), and

(2)      IMPERIAL COLLEGE OF SCIENCE, TECHNOLOGY & MEDICINE a college
         incorporated by royal charter, of Exhibition Road, London SW7 2AZ
         ("IMPERIAL"); and

(3)      CYTRX CORPORATION, a company established under the laws of the State of
         Delaware, U.S.A. and having its principal place of business at 11726
         San Vicente Boulevard, Suite 650, Los Angeles, California 90049 USA
         ("CYTRX").

 BACKGROUND:

(a)      Professor Parker is a full-time employee of Imperial, engaged by
         Imperial to carry out research. In the course of his normal employment
         duties for Imperial Professor Parker made inventions and developed
         technology, materials and know-how relating to the potential role of
         RIP140 in obesity and anorexia including without limitation inventions
         in respect of which a patent application has been made (defined below
         as the "Patent Application") and consequently Professor Parker's share
         in the Licensed Patents belongs to Imperial pursuant to Section 39 of
         the Patents Act 1977. In order to further the clinical applications and
         commercial exploitation of the above technology, Imperial has assigned
         to Innovations all its rights, title and interest in the Patent
         Application and Materials under an assignment agreement dated 14th May
         2004. Accordingly ICIL is the sole legal owner of the Patent
         Application and the Materials.
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(b)      CytRx is a biopharmaceutical company dedicated to the commercialisation
         of high value human therapeutics, including those for the treatment of
         obesity and diabetes.

(c)      CytRx wishes to obtain a licence to the Materials in the Field and the
         Licensed Patents (as defined below).

(d)      ICIL is willing to grant a licence to CytRx under the conditions set
         out in this Agreement including the payment of royalties and
         milestones.

In consideration of the mutual covenants and undertakings set out below, THE
PARTIES AGREE as follows:

1        DEFINITIONS

1.1      In this Agreement, the terms defined in this Clause shall have the
         meanings specified below:

         "AFFILIATE" means any company, partnership or other entity which
         directly or indirectly Controls, is Controlled by or is under common
         Control with any other entity.

         "AGREEMENT" means this agreement and any and all Schedules, appendices
         and other addenda to it as may be amended from time to time in
         accordance with the provisions of this agreement.

         "BIOLOGICAL MATERIALS" means tangible biological or biochemical
         materials that are necessary for the effective exercise of the Licensed
         Patents (e.g., reagents, cell lines, cDNAs, DNA constructs, animal
         models), to the extent that Imperial is free and able to grant access
         and commercialisation rights to such materials, which materials are set
         out in Schedule 2. Schedule 2 shall be periodically amended by mutual
         consent to include any additional Biological Materials that Imperial
         may furnish to CytRx.

         "BUSINESS DAY" means a day (other than a Saturday or Sunday) on which
         the banks are ordinarily open for business in both the City of London
         and the City of Los Angeles.
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         "COMBINATION PRODUCT" means a product (for which Marketing
         Authorisation has been granted) sold in the form of a combination
         product containing a Licensed Product as an active component and one or
         more Other Elements. As used herein, "OTHER ELEMENTS" shall mean either
         one or more active components which are not Licensed Products or one or
         more other components (such as a delivery device) which are not
         Licensed Products.

         "COMMENCEMENT DATE" means the date of this Agreement.

         "COMPETENT AUTHORITY" means any national or local agency, authority,
         department, inspectorate, minister, ministry official, parliament or
         public or statutory person or other entity (whether autonomous or not)
         of any government of any country having jurisdiction or authority over
         either any of the activities and functions contemplated or described by
         this Agreement or the Parties including the European Commission, the
         Court of First Instance and the European Court of Justice.

         "CONFIDENTIAL INFORMATION" means Know How and trade secrets or
         confidential information relating to the business affairs or finances
         of the other Party supplied or otherwise made available to them or
         coming into their possession in relation to the performance of this
         Agreement, irrespective of form.

         "CONTROL" means either (a) in the case of (i) corporate entities,
         direct or indirect ownership of at least fifty percent (50 %) of the
         stock or shares entitled to vote for the election of director, (ii)
         non-corporate entities, direct or indirect ownership of at least fifty
         percent (50 %) of the equity interest with the power to direct the
         management and policies of such noncorporate entities or (b) with
         respect to any item of or right under the Licensed Patents, the
         possession of (whether by ownership or licence, other than pursuant to
         this Agreement) or the ability of a Party to grant access to, or a
         licence or sublicence of, such item or right as provided for herein
         without violating the terms of any agreement or other arrangement with
         any Third Party existing at the time such Party would be required
         hereunder to grant the other Party such access or licence or
         sublicence. "CONTROLS" and "CONTROLLED BY" shall be construed
         accordingly.

         "CYTRX FOREGROUND IMPROVEMENTS" has the meaning set out in Clause 7.1.
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         "CYTRX MATERIALS IMPROVEMENTS" has the meaning set out in Clause 8.3.

         "CYTRX SUBLICENSEE" means any Third Party that acquires rights to the
         use of the Materials and under the Licensed Patents through CytRx or
         its Affiliates by virtue of this Agreement.

         "DIAGNOSTIC PRODUCT" means any preparation in the form of a device,
         compound, kit or service with utility in the diagnosis, prognosis,
         prediction or management of obesity, anorexia or diabetes in humans
         which contains or comprises:

         (a)      either in its entirety or in shortened form the RIP140 gene or
                  RIP140 gene product howsoever modified including without
                  limitation nucleotides, oligonucleotides, nucleic acid
                  vectors, peptides, polypeptides, proteins etc.; or

         (b)      an agent that binds to the RIP140 gene or an RIP140 gene
                  product (excluding the RIP140 protein or any subunit thereof)
                  with the purpose of enhancing, interfering with, silencing,
                  suppressing or modulating the expression thereof such agents
                  including without limitation complementary sequences, ligands,
                  cDNA, mRNA, tRNA, antibodies, antibody fragments, peptides,
                  fusion proteins, mimetics, aptamers, antisense (or other
                  nucleic acid based gene or gene product modulators),
                  ribozymes, molecular imprinted polymers, RNAi, microRNA,
                  dsRNA, siRNA, shRNA, vaccines, immunotherapeutics and gene
                  therapy products; or

         (c)      an agent (including without limitation small molecule
                  entities) that has a mechanism of action through interaction
                  with or binding to the RIP140 protein (or a subunit thereof);
                  and

         which have been identified by CytRx, a CytRx Affiliate or a CytRx
         Sublicensee as a direct result of (i) the use of the Materials (or the
         use of an Improvement to the Materials licensed to CytRx under Clauses
         8.1 and/or 8.2) or (ii) an activity that falls within a Valid Claim.
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         "DIRECTIVE" means any present or future directive, regulation,
         requirement, instruction, direction or rule of any Competent Authority
         including any amendment, extension or replacement thereof then in
         force.

         "DISCLOSING PARTY" means a Party which discloses Confidential
         Information to another Party.

         "DOCUMENTS" means any graphic, written or computer readable material on
         which Know How can be permanently stored.

         "EXPLOIT" means to develop, make, have made, use, have used, sell, have
         sold, or import, or have imported and "EXPLOITATION" shall be construed
         accordingly.

         "FDA" means the United States Food and Drug Administration, the
         equivalent Competent Authority in any country of the Territory or any
         successor bodies thereto.

         "FIELD" means the in vitro or in vivo screening of compounds, molecules
         or compositions of matter acting against or as agonists or antagonists
         of RIP140 to select compounds, molecules or compositions of matter
         which may be useful in the treatment or prevention of obesity, anorexia
         or diabetes.

         "FIRST COMMERCIAL SALE" means in respect of a Licensed Product the
         first commercial sale of any such product by CytRx, a CytRx Affiliate
         or a CytRx Sublicensee in any country after grant of a Marketing
         Authorisation.

         "FORCE MAJEURE" means any event outside the reasonable control of
         either Party affecting its ability to perform any of its obligations
         (other than payment) under this Agreement, including Act of God, fire,
         flood, lightning, war, revolution, act of terrorism, riot or civil
         commotion, but excluding strikes, lock-outs or other industrial action,
         whether of the affected Party's own employees or others, failure of
         supplies of power, fuel, transport, equipment, raw materials or other
         goods or services.

         "GAAP" means United States generally accepted accounting principles,
         consistently applied.
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         "IMPROVEMENT" means any improvement or enhancement or modification,
         whether patentable or otherwise.

         "IND" means investigational new drug application filed with, and
         accepted by, the FDA prior to Initiation of clinical trials in humans
         in the USA, or any comparable application filed with the Regulatory
         Authority of a country or group of countries other than the U.S.A. or
         any successor body thereto prior to Initiation of clinical trials in
         humans in that country or in that group of countries.

         "INITIATION" of a clinical trial shall mean the enrolment of the first
         human subject into the trial.

         "INVESTIGATION AUTHORISATION APPLICATION" means an IND, an IDE or any
         other equivalent application not covered by an IND or IDE required by a
         Competent Authority anywhere in the Territory.

         "KNOW-HOW" means unpatented technical and other information which is
         not in the public domain. Know-How includes Documents. The fact that an
         item is known to the public shall not be taken to exclude the
         possibility that a compilation including the item, and/or a development
         relating to the item, is (and remains) not known to the public.
         Know-How includes any rights including copyright, database or design
         rights protecting such Know-How.

         "LICENSED PATENTS" means (a) the Patent Application listed in Schedule
         1 which may be updated from time to time as applicable and as mutually
         agreed between the Parties, and any non-provisional applications
         claiming priority thereto; (b) any patents issued from any such
         applications described in (a) anywhere in the world; (c) any divisions,
         registrations, confirmations, reissues, re-examinations, extensions,
         renewals, continuations, continuations-in-part, revalidations,
         additions, substitutions, or renewals entitled to claim priority to any
         such patent applications or patents described in (a); and (d) all
         national, regional and foreign counterparts or other forms of
         protection, including supplementary protection certificates, claiming
         priority from the patents or patent applications described in (a) to
         (c) above.
<PAGE>
         "LICENSED PRODUCT" means any preparation for the treatment or
         prevention of obesity, anorexia or diabetes in humans that:

         (d)      incorporates either in its entirety or in shortened form the
                  RIP140 gene or RIP140 gene product howsoever modified
                  including without limitation nucleotides, oligonucleotides,
                  nucleic acid vectors, peptides, polypeptides, proteins etc.;
                  or

         (e)      is an agent that binds to the RIP140 gene or an RIP140 gene
                  product (excluding the RIP140 protein or any subunit thereof)
                  with the purpose of enhancing, interfering with, silencing,
                  suppressing or modulating the expression thereof such agents
                  including without limitation complementary sequences, ligands,
                  cDNA, mRNA, tRNA, antibodies, antibody fragments, peptides,
                  fusion proteins, mimetics, aptamers, antisense (or other
                  nucleic acid based gene or gene product modulators),
                  ribozymes, molecular imprinted polymers, RNAi, microRNA,
                  dsRNA, siRNA, shRNA, vaccines, immunotherapeutics and gene
                  therapy products; or

         (f)      is an agent (including without limitation small molecule
                  entities) that has a mechanism of action through interaction
                  with or binding to the RIP140 protein (or a subunit thereof);
                  and

         which have been identified by CytRx, a CytRx Affiliate or a CytRx
         Sublicensee as a direct result of (i) the use of the Materials (or the
         use of an Improvement to the Materials licensed to CytRx under Clauses
         8.1 and/or 8.2) or (ii) an activity that falls within a Valid Claim.

         "LICENCE" has the meaning set out in Clause 2.1.

         "LICENSED SERVICES" means services using the Licensed Patents,
         Materials or Licensed Products (for example a screening service against
         RIP140, where such service is provided to a Third Party).

         "MAJOR MARKET" means any one of the following: (i) the United States of
         America, (ii) the European Union, (iii) Japan, (iv) Canada or (v)
         Australia.
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         "MARKETING AUTHORISATION" means any approval (including all applicable
         pricing and governmental reimbursement approvals in those countries
         where such approvals are necessary to sell medicines to a substantial
         segment of that country's market for the medicine that is the subject
         of the marketing authorisation) required from the FDA or relevant
         Competent Authority to market and sell a Licensed Product in a
         particular country.

         "MARKETING AUTHORISATION APPLICATION" means an application for a
         Marketing Authorisation including but not limited to a New Drug
         Application or a Biologics License Application as required by the FDA
         or its foreign equivalents.

         "MATERIALS" means Biological Materials and Related Technology.

         "NET SALES VALUE" means in relation to any Licensed Product, the gross
         invoice price of Licensed Products sold, leased or disposed of by or on
         behalf of CytRx (including by any CytRx Affiliate or CytRx Sublicensee)
         to independent third parties in arm's length transactions exclusively
         for money or where a transaction is not at arm's length the price which
         would have been invoiced if the transaction had been at arms length
         less the following deductions applicable to the Licensed Product for:

         (a)      transportation charges and insurance charges paid by or on
                  behalf of CytRx (or any CytRx Affiliate or CytRx Sublicensee);

         (b)      sales and excise taxes or customs duties paid by or on behalf
                  of CytRx (or any CytRx Affiliate or CytRx Sublicensee) or any
                  other governmental charges imposed upon the sale of the
                  Licensed Product and paid by or on behalf of CytRx (or any
                  CytRx Affiliate or CytRx Sublicensee) (excluding income,
                  corporation or similar taxes);

         (c)      fees paid to distributors, consignees or agents in connection
                  with the sale of the Licensed Product;

         (d)      rebates and premiums actually granted or allowed in connection
                  with the sale of a Licensed Product;
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         (e)      allowances or credits actually given to customers on account
                  of governmental requirements, price differences, rejection,
                  outdating, returns or recalls of the Licensed Product;

         (f)      quantity discounts, cash discounts or chargebacks actually
                  granted in connection with the sale of the Licensed Product;
                  and

         (g)      provisions for price reductions actually given after any sale
                  of a product, for example but not by way of limitation for
                  late delivery.

         If an invoice in respect of the sale or lease of Licensed Products has
         not been paid within four months of the due date for payment of the
         invoice then ICIL shall credit (against future royalties, milestones
         and other amounts payable to ICIL) CytRx in respect of any royalties
         paid on such invoice (a "Bad Debt Credit"). The Bad Debt Credit will be
         given in respect of the Quarter in which the date four months from the
         due date for payment of the invoice falls. Should CytRx subsequently be
         paid in relation to an invoice in respect of which a Bad Debt Credit
         has been given then royalties on such invoice will again become payable
         by CytRx. The royalties will be payable in respect of the Quarter in
         which the payment is received.

         No royalties shall be payable by CytRx to ICIL in relation to any
         disposals of Licensed Products among CytRx and any of CytRx's
         Affiliates (or any CytRx Sublicensee or any Affiliates of such CytRx
         Sublicensee) provided that the recipient does not consume or use the
         Licensed Products save for testing, quality control and research and
         development purposes where such testing, quality control and research
         and development relates to the testing, quality control and research
         and development of such Licensed Products. No royalties shall be paid
         on any sales or donations of Licensed Products by CytRx (or any CytRx
         Affiliate or CytRx Sublicensee) at or below CytRx's (or CytRx
         Affiliate's or CytRx Sublicensee's) fully loaded cost for the Licensed
         Products as part of any government or other charitable assistance
         program.

         In the event that a Licensed Product is sold as part of a Combination
         Product in any country, the Net Sales Value of the Licensed Product in
         that country for the purposes of
<PAGE>
         determining royalty payments shall be determined by multiplying the Net
         Sales Value of the Combination Product in that country by the fraction
         (A/A+B) where A is the average sale price in the relevant Quarter (as
         hereinafter defined) of the Licensed Product in that country when sold
         separately in finished form and B is the average sale price in the
         relevant Quarter of the Other Element in that country sold separately
         in finished form.

         In the event that the average sale price of the Licensed Product in
         that country can be determined but the average sale price of the Other
         Element in that country cannot be determined, the Net Sales Value of
         the Licensed Product in that country for the purposes of determining
         royalty payments shall be calculated by multiplying the Net Sales Value
         of the Combination Product in that country by the fraction (C/D) where
         C is the selling Party's average sales price in the relevant Quarter of
         the Licensed Product and D is the average selling price in the relevant
         Quarter of the Combination Product in that country.

         If the average sale price of the Other Element in that Quarter can be
         determined but the average price of the Licensed Product in that
         country cannot be determined, Net Sales Value of the Combination
         Product in that country for the purposes of determining royalty
         payments shall be calculated by multiplying the Net Sales Value of the
         Combination Product in that country by the following formula: one (1)
         minus E/D where E is the average selling price in the relevant Quarter
         of the Other Element in that country and D is the average selling price
         of the Combination Product in that country in the relevant Quarter.

         If the average sale price of both the Product and the Other Element
         cannot be determined, the Net Sales Value of Product shall be
         reasonably agreed upon by the Parties and if the Parties fail to agree
         on a calculation method within thirty (30) days of commencing
         negotiations the matter shall be referred to Expert's Decision
         Procedure in Schedule 3.

         "NON-COMMERCIALLY SENSITIVE" means that CytRx in its sole discretion
         has determined that (a) no information relating to the CytRx Foreground
         Improvement is confidential and (b) it does not wish to Exploit such an
         Improvement itself or by way of the grant of commercial licences.
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         "NON-SEVERABLE IMPROVEMENT" means an Improvement to the technology
         disclosed in the Licensed Patents that cannot be Exploited without
         infringing a Valid Claim of the Licensed Patents.

         "OPTION NOTICE" has the meaning set out in Clause 15.1.

         "PARTY" means ICIL, Imperial or CytRx.

         "PATENT APPLICATION" means the PCT application PCT/2004/000413 filed on
         3rd February 2004 and claiming priority from UK priority patent
         application number 0302446.0 filed 3rd February 2003 entitled
         "Screening for Modulators of Fat Storage".

         "PATENTING TERRITORIES" means USA, Canada, Australia, Europe (EPO
         designating all states), Japan, New Zealand and Mexico.

         "PATENT RIGHTS" - shall mean patent applications and patents, author
         certificates, inventor certificates, utility certificates, improvement
         patents and models and certificates of addition and all foreign
         counterparts thereof, including any divisional applications and
         patents, refilings, renewals, continuations, continuations-in-part,
         patents of addition, extensions, reissues, substitutions,
         confirmations, registrations, revalidation and additions of or to any
         of them, as well as any supplementary protection certificates and
         equivalent protection rights in respect of any of them.

         "PHASE I CLINICAL TRIAL" means the first administration of a Licensed
         Product in human subjects that would satisfy the requirements of 21 CFR
         312.21(a) or its non-U.S.A. equivalent.

         "PHASE II CLINICAL TRIAL" means a human clinical trial in any country
         that is intended to initially evaluate the effectiveness of a Licensed
         Product in the targeted patient population for a particular indication
         or indications in human subjects with the disease or indication under
         study that would satisfy the requirements of 21 CFR 312.21(b) or its
         non-U.S.A. equivalent.

         "PHASE III CLINICAL TRIAL" means a controlled human clinical trial in
         any country involving patients with the disease or condition of
         interest the results of which could be
<PAGE>
         used to establish safety and efficacy of a Licensed Product as a basis
         for a Marketing Authorisation that would satisfy the requirements of
         U.S. 21 CFR 312.21(c) or its non-U.S.A. equivalent.

         "QUARTER" means each period of three (3) months ending on March 31,
         June 30, September 30, or December 31 and "QUARTERLY" shall be
         construed accordingly.

         "RECIPIENT PARTY" means a Party that receives Confidential Information
         from another Party.

         "RELATED TECHNOLOGY" means Know-How, technical information, research
         and development information, test results, and data necessary for the
         effective exercise of the Licensed Patents by the Licensee in order to
         identify and/or generate and/or develop Licensed Products and/or
         Diagnostic Products which are Controlled by ICIL and have been
         developed by the Research Group .

         "RESEARCH GROUP" MEANS Professor Malcolm Parker and/or his associates
         in their laboratories at the Institute of Reproductive and
         Developmental Biology at Imperial.

         "RIP140" means (a) nuclear receptor interacting protein 140 also known
         as Nrip1 (nuclear receptor interacting protein 1), and /or (b) a target
         protein for nuclear receptor interacting protein 140 and/or (c) a
         complex of nuclear receptor interacting protein 140 and its target
         protein(s).

         "ROYALTY" means the sums payable by CytRx to ICIL based on Net Sales
         Value of Licensed Products as set out in Clauses 4.11 to 4.13.

         "SEVERABLE IMPROVEMENT" means an Improvement to the technology
         disclosed in the Licensed Patents that can be Exploited without
         infringing a Valid Claim of the Licensed Patents.

         "SIGNATURE FEE" has the meaning set out in Clause 4.1.2.

         "SUBLICENSING REVENUE" means milestone payments and upfront fees that
         CytRx receives from a CytRx Sublicensee in consideration of a
         sublicence of the Licence (in
<PAGE>
         whatever form, for example but not limited to cash, warrants, loans,
         debentures, swaps etc.), but excluding the following payments: (a)
         royalties, (b) payments made in consideration for the issuance of
         equity or debt securities of CytRx at fair market value (taking into
         account customary discounts for restricted securities), and (c)
         payments specifically committed to the development of Licensed
         Products, Diagnostic Products or Licensed Services on behalf, or for
         the benefit of a Sublicensee subject to such payments and their
         application to such development being available for audit under clause
         5.7 .

         "THIRD PARTY" means any person or entity other than ICIL, Imperial or
         CytRx and their respective Affiliates.

         "U.S.A." means the United States of America and its territories,
         possessions and commonwealths.

         "VALID CLAIM" means a claim of an issued and unexpired patent included
         within the Licensed Patents which has not been held permanently
         revoked, unenforceable or invalid by a decision of a court or other
         governmental agency of competent jurisdiction unappealed within the
         time allowed for appeal, and which has not been admitted to be invalid
         or unenforceable through reissue or disclaimer or otherwise.

         "YEAR" means the period of twelve months commencing on the Commencement
         Date and on each successive anniversary of the Commencement Date and
         ending on the day before each successive anniversary of the
         Commencement Date.

1.2      The headings to clauses are inserted for convenience only and shall not
         affect the interpretation or construction of this Agreement.

1.3      Words imparting the singular shall include the plural and vice versa.
         References to persons include an individual, company, corporation, firm
         or partnership.

1.4      The words and phrases "other", "including" and "in particular" shall
         not limit the generality of any preceding words or be construed as
         being limited to the same class as any preceding words where a wider
         construction is possible.
<PAGE>
1.5      References to any statute or statutory provisions of the United
         Kingdom, the USA or the European Union, shall include (i) any
         subordinate legislation made under it, (ii) any provision which it has
         superseded or re-enacted (whether with or without modification), and
         (iii) any provision which subsequently supersedes it or re-enacts it
         (whether with or without modification).

2        GRANT OF LICENCE

2.1      ICIL grants to CytRx and, and for such time as they hold that status,
         its Affiliates:

         2.1.1    a worldwide, exclusive licence, with the right to grant
                  sublicences, under the Licensed Patents to do all acts which
                  would otherwise infringe the Licensed Patents including,
                  without limitation, the right to Exploit the Licensed Products
                  and Diagnostic Products and provide Licensed Services or
                  otherwise do all acts which would otherwise infringe a Valid
                  Claim of the Licensed Patents; and

         2.1.2    a worldwide, exclusive license, with the right to grant
                  sublicenses in connection with a grant of sublicences of the
                  Licensed Patents, to use the Biological Materials in the
                  Field, including, without limitation, the right to Exploit the
                  Licensed Products and Diagnostic Products and provide Licensed
                  Services; and

         2.1.3    a worldwide, non-exclusive license, with the right to grant
                  sublicenses in connection with a grant of sublicences of the
                  Licensed Patents, to use the Related Technology in the Field,
                  including, without limitation, the right to Exploit the
                  Licensed Products and Diagnostic Products and provide Licensed
                  Services

         (all the licences in this Clause 2.1 being the "LICENCE").

2.2      CytRx and/or its Affiliates grants to ICIL and Imperial an irrevocable,
         royalty-free, non-assignable (other than to successors in business),
         non-sublicensable, non-exclusive license for (a) ICIL and Imperial and
         every employee, student, agent and appointee of Imperial to use the
         Licensed Patents, Materials and Related Technology solely for internal
         non-commercial academic research and teaching purposes and (b) for ICIL
         and Imperial to make the Licensed Patents, Materials and Related
         Technology available to
<PAGE>
         other academic institutions solely for non-commercial research and
         teaching purposes under written material transfer agreements that
         adequately protect any intellectual property rights created through
         such research; provided that in the case of both (a) and (b) and
         subject to Clause 2.3, ICIL and/or Imperial shall not jeopardize the
         confidential nature of any Know-How. Imperial shall have the right to
         use the Licensed Patents, Materials and Related Technology as enabling
         technology in non-commercial research projects, including projects
         which benefit from external funding.

2.3      If Imperial's scientific research activities conducted by the Research
         Group for non-commercial purposes in relation to the Materials in the
         Field or Licensed Patents or Improvements licensed to Imperial under
         Clause 7.2 where such Improvements have been disclosed to the Research
         Group at Imperial produce information that Imperial wishes to present
         or publish within twenty four (24) months of the date of this
         Agreement, then the proposed text shall be disclosed to CytRx in
         advance of its submission for presentation or publication. CytRx shall
         have thirty (30) Business Days to review the text during which period
         the information may not be presented or published. CytRx may suggest
         amendments or omissions to be made to any proposed text, which Imperial
         shall reasonably accept, provided that such amendments are reasonably
         necessary to prevent any commercial damage to CytRx except where
         failure to publish would materially prevent the advancement of medical
         science;

2.4      If Imperial's scientific research activities conducted by the Research
         Group for non-commercial purposes in relation to the:

         2.4.1    Materials within the Field,

         2.4.2    Licensed Patents within the Field; or

         2.4.3    Improvements within the Field licensed to Imperial under
                  Clause 7.2 where such Improvements have been disclosed to the
                  Research Group at Imperial

         produce information that Imperial wishes to present or publish after
         twenty four (24) months of the date of this Agreement, then Imperial
         shall use reasonable efforts to ensure
<PAGE>
         that the proposed text shall be disclosed to CytRx at least thirty (30)
         days in advance of its submission for presentation or publication.

2.5      Sub-licensing.

         CytRx shall be entitled to grant sub-licences of its rights under the
         terms and conditions of Clause 2.1 of this Agreement to any person,
         provided that:

         (a)      the sub-licence shall include performance and financial
                  obligations on the sub-licensee which are at least equivalent
                  to the obligations on CytRx under this Agreement;

         (b)      the sub-licence shall continue following the termination of
                  this Agreement for any reason as a licence between ICIL and
                  the sub-licensee pursuant to clause 14.5.2, provided that if
                  the royalties and other consideration provided for in the
                  sub-licence are less that that provided for in this Agreement
                  such royalties or other consideration shall be increased to be
                  the same as provided for in this Agreement and further
                  provided that the sub-licensee agrees in writing to such new
                  financial terms and to the substitution of CytRx by ICIL;

         (c)      within thirty (30) days of the grant of any sub-licence CytRx
                  shall provide to ICIL a summary of the material terms of the
                  sub-licence and a written agreement from the sub-licensee to
                  be bound by the provisions of this Agreement to the extent
                  applicable;

         (d)      except in the case of the continuation of the licence pursuant
                  to Clause 2.5(b) CytRx shall be responsible for any breach of
                  the sub-licence by the sub-licensee, as if the breach had been
                  that of CytRx under this Agreement, and CytRx shall indemnify
                  ICIL against any loss, damages, costs, claims or expenses
                  which are awarded against or suffered by ICIL as a result of
                  any such breach by the sub-licensee; and
<PAGE>
         (e)      no sub-licence shall carry any right to sub-sub-licence all of
                  the rights granted to CytRx under this Agreement without the
                  consent of ICIL (such consent not to be unreasonably withheld)
                  save that a sub-licence can be sub-licensed for the purposes
                  of manufacture or co-marketing without the consent of ICIL.

2.6      CytRx shall use commercially reasonable endeavours to ensure that all
         of the Licensed Products marketed by it and its sub-licensees are of
         satisfactory quality and comply with all material applicable laws in
         each country. CytRx shall maintain, or cause a CytRx Sublicensee to
         maintain, adequate product liability insurance from the date of first
         commercial sale of a Licensed Product for the term of this Agreement.

2.7      CytRx or any CytRx Sublicensees shall be exclusively responsible for
         the technical and commercial development and manufacture of Licensed
         Products and for incorporating any modifications or developments
         thereto that may be necessary or desirable and for all Licensed
         Products sold or supplied, and accordingly CytRx shall indemnify ICIL
         in the terms of Clause 12.7.

3        MATERIALS

3.1      Within a reasonable time after the Commencement Date Imperial will, at
         the cost of CytRx, and in accordance with shipping instructions from
         CytRx, deliver sufficient Materials as set out in Schedule 2 to CytRx
         at its laboratories in Worcester, Massachusetts, U.S.A. to allow CytRx
         to develop RIP140 screening assays and functional assays in their own
         laboratories.

4        CONSIDERATION

4.1      In consideration of the grant of the Licence to CytRx, CytRx shall on
         signature of this Agreement:

         4.1.1    allot and issue to ICIL, credited as fully paid, {***} shares
                  of common stock in CytRx (the "CONSIDERATION SHARES"); and

         4.1.2    pay ICIL {***} (the "SIGNATURE FEE").
<PAGE>
4.2      In the event of a delisting from Nasdaq of the Consideration Shares
         within the Lock In Period (as defined below):

         4.2.1    the Consideration Shares shall be immediately cancelled and
                  returned to CytRx; and

         4.2.2    CytRx shall pay ICIL {***}.

4.3      The Consideration Shares will rank pari passu in all respects with the
         existing issued shares of CytRx common stock. CytRx shall cause the
         consideration shares to be listed on the Nasdaq Small Cap market or
         such other principal market on which CytRx's common stock is then
         traded.

4.4      Subject to Clause 4.5, the Consideration Shares shall not be sold,
         disposed of or otherwise transferred (in whole or part) by ICIL for a
         period of seven (7) months after the Commencement Date (the "LOCK IN
         PERIOD"). Any public resale of the Consideration Shares after the Lock
         In Period will be subject to compliance with all U.S. securities laws,
         which require the registration of those shares or an applicable
         exemption from registration, such as the rule known as "Rule 144".
         CytRx agrees that upon signature of this Agreement, CytRx will use its
         commercially reasonable best efforts to comply with all U.S. securities
         laws in order for ICIL to be in a position to execute a public resale
         of the Consideration Shares immediately after the Lock In Period and
         will file a registration statement with the US Securities and Exchange
         Commission covering ICIL's public resale of the Consideration Shares
         and use its commercially reasonable best efforts to have that
         registration become effective prior to the end of the Lock In Period.
         ICIL will provide reasonable assistance to CytRx in this regard .

4.5      The Consideration Shares will be transferable by ICIL to the inventors
         of the Licensed Patents before the end of the Lock In Period but the
         inventors will be not be able to further sell, dispose of or transfer
         such Consideration Shares (in whole or part) during the Lock in Period.

         Milestones
<PAGE>
4.6      Subject to Clauses 4.7, 5.4 and 5.5, CytRx shall pay to ICIL the
         following payments upon achievement of the specified milestones by
         CytRx or a CytRx Affiliate or a CytRx Sublicensee for the first
         Licenced Product to reach such milestone:

<TABLE>
<S>                                                      <C>
         Payable upon Initiation of the first Phase I       {***}
         Clinical Trial
         Payable upon Initiation of the first Phase II      {***}
         Clinical Trial
         Payable upon Initiation of the first Phase III     {***}
         Clinical Trial
         Payable upon first grant of Marketing              {***}
         Authorisation in a Major Market
</TABLE>

4.7      CytRx shall pay to ICIL {***} of any Sublicensing Revenue. In relation
         to milestone payments, if {***} of any milestone payment received by
         CytRx from a CytRx Sublicensee is less than the sum payable by CytRx in
         respect of the same milestone under Clause 4.6, then CytRx shall pay
         ICIL the amount set out in Clause 4.6.

4.8      If CytRx is paid any Sublicensing Revenue in the form of non-cash
         consideration, ICIL and CytRx will meet to agree the value of such
         non-cash consideration and the {***} proportion payable to ICIL will be
         paid immediately (unless otherwise agreed between the parties) by CytRx
         to ICIL, at the option of CytRx, in cash or in kind. If CytRx and ICIL
         cannot agree, then the issue will be referred to the Expert's Decision
         Procedure in Schedule 3.

4.9      CytRx shall pay to ICIL {***} of any fees received by CytRx from the
         provision by CytRx of Licensed Services.

4.10     CytRx shall notify ICIL in writing within thirty (30) days upon the
         achievement of each milestone set forth in Clause 4.6 and shall make
         the appropriate milestone payment within thirty (30) days of the
         achievement of such milestone.

         ROYALTIES

4.11     Subject to Clause 4.12, CytRx shall pay to ICIL a royalty of {***} of
         Net Sales Value of Licensed Product(s) sold by CytRx or a CytRx
         Affiliate or a CytRx Sublicensee. CytRx
<PAGE>
         shall only be obliged to pay royalties to ICIL on sales by a CytRx
         Sublicensee or a CytRx Affiliate on receipt by CytRx of royalty
         payments from a CytRx Sublicensee or a CytRx Affiliate in respect of
         such sales.

4.12     Where in addition to the rights licensed by ICIL to CytRx under this
         Agreement, CytRx (or a CytRx Affiliate or CytRx Sublicensee) requires
         one or more licences from a Third Party to carry out research in
         relation to, or Exploit, a Licensed Product (each, a "THIRD PARTY
         LICENCE") because, absent such Third Party Licence, CytRx's (or a CytRx
         Affiliate or CytRx Sublicensee's) research relating to, or the
         Exploitation of, the Licensed Product would infringe a claim of a
         patent or patent application or other intellectual property of such
         Third Party, the provisions of this Clause 4.12 shall apply. Any
         royalty payments on Licensed Products due to such Third Party from
         CytRx (or a CytRx Affiliate or CytRx Sublicensee) under any Third Party
         Licence shall be credited against any royalty payments due to ICIL
         under Clause 4.11, provided however, that under no circumstances shall
         the aggregate of the set offs in this Clause 4.12 reduce the royalty
         rate for payments due to ICIL from CytRx under Clause 4.11 to below
         {***}.

4.13     CytRx shall pay to ICIL a royalty of {***} of Net Sales Value (such
         definition being varied mutatis mutandis to substitute Diagnostic
         Products for Licensed Products) of Diagnostic Product(s) sold by CytRx
         or a CytRx Affiliate or a CytRx Sublicensee. CytRx shall only be
         obliged to pay royalties to ICIL on sales by a CytRx Sublicensee on
         receipt by CytRx of royalty payments from a CytRx Sublicensee in
         respect of such sales.

4.14     All royalties due to ICIL under this Agreement for any Licensed Product
         shall be payable on a country-by-country basis until the last Valid
         Claim for that country expires.

4.15     For the purpose of calculating royalties under this Clause 4, a
         Licensed Product or a Diagnostic Product shall be regarded as sold,
         leased or licensed by CytRx when invoiced, or if not invoiced, when
         shipped or delivered by CytRx. If a Licensed Product is transferred to
         and further sold on by an Affiliate, the royalty on each such Licensed
         Product shall be calculated on prices at which it is sold by the
         Affiliate; provided, however, that in no event shall royalty be paid
         more than once on each Licensed Product.
<PAGE>
5        PROVISIONS RELATING TO PAYMENT OF CONSIDERATION

5.1      All sums payable under this Agreement by CytRx shall be paid in US
         Dollars. For any payment to CytRx (where ICIL is due a share of that
         payment) and where CytRx receives the payment in a currency other than
         US Dollars, CytRx will convert the relevant sum due to ICIL into US
         Dollars. CytRx will use the conversion rate reported in the Wall Street
         Journal two (2) Business Days before the day on which CytRx pays ICIL.

5.2      Within fifty (50) days of the end of each Quarter (and within fifty
         (50) days of termination of this Agreement) after the First Commercial
         Sale of each Licensed Product in any country, CytRx shall prepare a
         statement which shall show on a country-by-country basis for the
         previous Quarter all monies due to ICIL under Clause 4.11. That
         statement shall include details of Net Sales Value showing the country
         of the sales and the total Net Sales Value on a Licensed Product by
         Licensed Product and/or Diagnostic Product by Diagnostic Product basis
         together with the quantities sold in such country and shall be
         submitted to ICIL within such fifty (50) day period together with
         remittance of the monies due.

5.3      All lump sum payments under this Agreement (including the Signature Fee
         and milestone payments) shall be paid by CytRx within thirty (30) days
         of the due date (which in the case of milestone payments shall be in
         accordance with Clause 4.10).

5.4      If the US$/L rate exceeds 2.00:1.00 at the time that a milestone
         payment is due under Clause 4.10 then that milestone payment will be
         increased using the following formula:

         5.4.1    If the US$/L rate (as shown in the Wall Street Journal
                  averaged over the five Business Days before that milestone
                  payment is due under Clause 4.10) is between 2.0001 and 2.1000
                  then the appropriate milestone payment set out in Clause 4.6
                  will be increased by seven and a half percent (7.5%);

         5.4.2    If the US$/L rate (as shown in the Wall Street Journal
                  averaged over the five Business Days before that milestone
                  payment is due under Clause 4.10) is between 2.1001 and 2.2000
                  then the appropriate milestone payment set out in Clause 4.6
                  will be increased by twelve percent (12.0%);
<PAGE>
         5.4.3    If the US$/L rate (as shown in the Wall Street Journal
                  averaged over the five Business Days before that milestone
                  payment is due under Clause 4.10) is between 2.2001 and 2.3000
                  then the appropriate milestone payment set out in Clause 4.6
                  will be increased by sixteen percent (16.0%); and

         5.4.4    If the US$/L rate (as shown in the Wall Street Journal
                  averaged over the five Business Days before that milestone
                  payment is due under Clause 4.10) increases above 2.3000 then
                  the appropriate milestone payment set out in Clause 4.6 will
                  be not be increased by more than sixteen percent (16.0%).

5.5      If the US$/L rate goes below 1.700:1.000 at the time that a milestone
         payment is due under Clause 4.10 then that milestone payment will be
         decreased using the following formula:

         5.5.1    If the US$/L rate (as shown in the Wall Street Journal
                  averaged over the five Business Days before that milestone
                  payment is due under Clause 4.10) is between 1.69999 and
                  1.69000 then the appropriate milestone payment set out in
                  Clause 4.6 will be decreased by seven and a half percent
                  (7.5%);

         5.5.2    If the US$/L rate (as shown in the Wall Street Journal
                  averaged over the five Business Days before that milestone
                  payment is due under Clause 4.10) is between 1.68999 and
                  1.68000 then the appropriate milestone payment set out in
                  Clause 4.6 will be decreased by twelve percent (12.0%);

         5.5.3    If the US$/L rate (as shown in the Wall Street Journal
                  averaged over the five Business Days before that milestone
                  payment is due under Clause 4.10) is between 1.67999 and
                  1.67000 then the appropriate milestone payment set out in
                  Clause 4.6 will be decreased by sixteen percent (16.0%); and

         5.5.4    If the US$/L rate (as shown in the Wall Street Journal
                  averaged over the five Business Days before that milestone
                  payment is due under Clause 4.10) falls below 1.67:1 then the
                  appropriate milestone payment set out in Clause 4.6 will not
                  be decreased by any more than sixteen percent (16.0%).
<PAGE>
5.6      All payments shall be made free and clear of and without deduction or
         deferment in respect of any disputes or claims whatsoever and/or as far
         as is legally possible in respect of any taxes imposed by or under the
         authority of any government or public authority. Any tax (other than
         VAT) which CytRx is required to pay or withhold in respect of the
         payments to be made to ICIL hereunder shall be deducted from the amount
         otherwise due provided that, in regard to any such deduction, CytRx
         shall give ICIL reasonable assistance, which shall include the
         provision of such documentation as may be required by any revenue
         authority and other revenue services, as may be necessary to enable
         ICIL to claim exemption therefrom or obtain a repayment thereof or a
         reduction thereof and shall upon request provide such additional
         documentation from time to time as is needed to confirm the payment of
         tax.

5.7      CytRx shall keep and shall procure that CytRx Sublicensees keep true
         and accurate records and books of account containing all data necessary
         for the production of the royalty statements under Clause 5.2 and the
         calculation of the amounts payable by it to ICIL pursuant to this
         Agreement. Those records and books of account shall be kept for two (2)
         years following the end of the Year to which they relate. Upon ICIL's
         written request and, except as set forth in Clause 5.7.6, at ICIL's
         expense, a firm of independent certified accountants appointed by ICIL
         (which accountants shall not have performed auditing or other services
         for any Party or their Affiliates):

         5.7.1    shall be given access to and shall be permitted to examine and
                  copy any books and records of CytRx, its Affiliates
                  Sublicensees at all reasonable times on Business Days in a
                  manner calculated so as not to disturb the business affairs of
                  the auditee for the purpose of certifying that the Net Sales
                  Value or other relevant sums calculated by CytRx, its
                  Affiliates and Sublicensees during any Year and previous Years
                  were reasonably calculated, true and accurate or, if this is
                  not their opinion, certify the Net Sales Value figure or other
                  relevant sums for such period which in their judgment is true
                  and correct;
<PAGE>
         5.7.2    the examination in Clause 5.7.1 may cover books and records
                  that are in existence and currently held by Cytrx, its
                  Affiliates or Sublicensees at the date of the inspection;

         5.7.3    prior to any such examination taking place, such firm of
                  accountants shall undertake to CytRx that they shall keep all
                  information and data contained in such books and records,
                  strictly confidential and shall not disclose such information
                  or copies of such books and records to any third person
                  including ICIL, but shall only use the same for the purpose of
                  calculations which they need to perform in order to issue the
                  certificate to which this Clause envisages;

         5.7.4    any such access examination and certification shall occur no
                  more than once per Year, save that in the event that the
                  certification of the accountant shows that CytRx has underpaid
                  sums to ICIL by more than the greater of five thousand US
                  Dollars ($5,000) and five percent (5%) of the amount properly
                  owing, such access, examination and certification shall occur
                  no more than twice in the Year following the certification of
                  such discrepancy;

         5.7.5    CytRx and CytRx Sublicensees shall make available personnel to
                  answer queries on all books and records required for the
                  purpose of that certification; and

         5.7.6    the cost of the accountant shall be the responsibility of
                  CytRx if the certification shows it to have underpaid monies
                  to ICIL by more than the greater of five thousand US Dollars
                  ($5,000) and five percent (5%) of the amount properly owing,
                  or shall be the responsibility of ICIL otherwise.

5.8      If the accountant concludes that additional royalties or other sums
         under this Agreement were owed for the two (2) year period prior to the
         inspection, CytRx shall pay the additional royalties or other sums
         within thirty (30) days of the date ICIL delivers to CytRx such
         accountant's written report so concluding. No additional royalties or
         other sums under this Agreement shall be payable by CytRx in relation
         to any period more than two (2) years before any inspection. In the
         event that the accountant concludes that there has been an overpayment
         of royalties or other sums under this Agreement, then subject to
<PAGE>
         Clause 14.5.5, the amount of the overpayment shall be credited against
         the next and any following royalty or milestone payments of CytRx under
         this Agreement.

5.9      No royalties payable by CytRx to ICIL shall be refundable or creditable
         against any other sum payable by CytRx to ICIL under this Agreement.

5.10     All payments due to ICIL under the terms of this Agreement are
         expressed to be exclusive of value added or other sales tax howsoever
         arising.

5.11     All payments made to ICIL under this Agreement shall be made to the
         bank account of ICIL as notified by ICIL to CytRx from time to time.

6        CONDUCT IN RELATION TO THE FIELD

6.1      CytRx shall, at its own expense, use Reasonable Commercial Efforts to
         develop and commercialise at least one Licensed Product (being either a
         product directed at the treatment or prevention of obesity or a product
         directed at the treatment or prevention of diabetes or a product
         directed at the treatment or prevention of both clinical indications)
         under the Licence. For the purposes of this Clause 6.1 "REASONABLE
         COMMERCIAL EFFORTS" shall mean efforts which are similar to the efforts
         used by CytRx in pursuing the development, commercialisation and
         marketing of other products under similar commercial circumstances that
         have similar commercial value, status and potential to the Licensed
         Product in question. In the event that CytRx has not developed any
         other products under similar commercial circumstances that have similar
         commercial value, status and potential to the Licensed Product in
         question then the efforts of CytRx shall be those employed by similar
         companies to CytRx in terms of their size and financial resources.
         Notwithstanding the foregoing, and for the avoidance of doubt, CytRx
         shall not be required by this Clause 6.1 or otherwise to continue with
         its commercialisation or development efforts of any Licensed Product in
         any country if for safety, efficacy, technical or reasonable business
         reasons it decides in good faith to abandon the same.

6.2      CytRx shall provide a report to ICIL on each anniversary of the
         Commencement Date which shall be deemed Confidential Information and
         shall include:
<PAGE>
         6.2.1    the status and any outcomes of research and development
                  carried out by CytRx, any CytRx Affiliate or CytRx Sublicensee
                  in the Field;

         6.2.2    a general statement on the progress of the development by
                  CytRx,any CytRx Affiliate or CytRx Sublicensee of Licensed
                  Products;

         6.2.3    in addition to CytRx's ongoing obligation under Clause 4.10,
                  confirmation of the achievement of any of the milestones in
                  Clause 4.6 by CytRx, its Affiliates or Sublicensees; and

         6.2.4    following the payment of the milestone payment payable upon
                  Initiation of the first Phase II Clinical Trial a
                  commercialisation plan showing all past, current and proposed
                  actions by CytRx, a CytRx Affiliate of CytRx Sublicensee to
                  market any Licensed Product that has reached at least the
                  Initiation of a Phase II Clinical Trial.

6.3      Any failure by CytRx, a CytRx Affiliate or CytRx Sublicensee to comply
         with a timetable or action set out in a report under Clause 6.2 shall
         not of itself be deemed to be a failure to employ Reasonable Commercial
         Efforts.

6.4      ICIL's receipt of any report under Clause 6.2 shall not be taken to
         waive or qualify the Licensee's obligations under Clause 6.1

7        IMPROVEMENTS TO THE LICENSED PATENTS.

7.1      Both Severable Improvements and Non-Severable Improvements made by
         CytRx and any Patent Rights therein ("CYTRX FOREGROUND Improvements")
         will be owned by CytRx. CytRx shall have responsibility for filing any
         Patent Rights relating to CytRx Foreground Improvements and shall own
         any subsequent patents. Except as set forth in Clause 7.2, Imperial and
         ICIL shall have no rights in CytRx Foreground Improvements or be
         entitled to any additional payments with respect to CytRx's
         exploitation of the CytRx Foreground Improvements.

7.2      CytRx will notify ICIL of all Non-Commercially Sensitive CytRx
         Foreground Improvements which are limited to Non-Severable Improvements
         (after CytRx has taken
<PAGE>
         all steps it believes necessary to protect such Improvements). Upon
         such notification CytRx will grant to Imperial a royalty-free
         non-exclusive, non-sublicensable, world-wide licence to use such
         Non-Severable Improvements solely for the purpose of teaching and
         scientific research for non-commercial purposes.

7.3      Both Severable Improvements and Non-Severable Improvements made by
         Imperial and any Patent Rights therein ("IC FOREGROUND Improvements")
         will be owned by ICIL. Imperial's obligations set out in Clause 2.3 in
         relation to the publication of its results shall apply to all IC
         Foreground Improvements arising from the Research Group.

7.4      For 24 months after the date of this Agreement, ICIL and/or Imperial
         shall notify CytRx of all Severable and Non-Severable Improvements
         arising from the Research Group promptly after they are created, the
         date that such notification is received by CytRx being the
         "NOTIFICATION DATE".

7.5      If under Clause 7.4 ICIL notifies CytRx of the creation of a
         Non-Severable Improvement made by Imperial it shall also state in such
         notice whether or not it intends to patent such Non-Severable
         Improvement. CytRx shall within forty five (45) days of the
         Notification Date inform ICIL whether it wishes to takes a licence of
         such Non-Severable Improvement.

7.6      If CytRx does not reply within such forty five (45) day period or
         states that it does not wish to take a licence of the Non-Severable
         Improvement then ICIL shall be free to Exploit, license or assign such
         Non-Severable Improvement as it sees fit.

7.7      If CytRx notifies ICIL in accordance with Clause 7.5 that it wishes to
         take a licence of such Non-Severable Improvement and ICIL has indicated
         that it intends to file a patent on such Non-Severable Improvement then
         ICIL will be entitled to control in its sole discretion the prosecution
         of any Patent Rights relating to such Non-Severable Improvement, and
         such control shall include, but not be limited to, deciding which
         patent attorney shall have the conduct of the prosecution, what claims
         to prosecute and the terms of such claims, which countries in which to
         file for Patent Rights, the conduct of any defence to an opposition (if
         any) and whether to appeal any decision. Such Patent Rights
<PAGE>
         will become part of the Licensed Patents and will be automatically
         licensed to CytRx under Clause 2.1.1 of this Agreement provided that
         such licence will be limited to the Field. ICIL and CytRx will decide
         what proportion of the patenting costs associated with the prosecution
         of such Patent Rights will be paid by either Party, which will be
         dependant on factors such as the scope of the claims and their
         relationship to the subject matter of this Agreement and the benefit
         that each Party is likely to obtain from such patent protection. In
         default of agreement the dispute will be subject to the dispute
         resolution procedure in Clause 11.

7.8      If CytRx notifies ICIL in accordance with Clause 7.5 that it wishes to
         take a licence of such Non-Severable Improvement and ICIL has indicated
         that it does not intend to file a patent on such Non-Severable
         Improvement and CytrX believes that the Non-Severable Improvement
         should be patented then:

         7.8.1    ICIL shall file for Patent Rights in relation to such
                  Non-Severable Improvement and shall own all subsequent Patents
                  Rights; and

         7.8.2    the length of time that publication is delayed under Clause
                  2.3 in relation to any such Improvement shall be extended by
                  thirty (30) Business Days to a total of sixty (60) Business
                  Days.

7.9      CytRx will be entitled to control in its sole discretion the
         prosecution of any Patent Rights filed under Clause 7.8.1, and such
         control shall include, but not be limited to, deciding which patent
         attorney shall have the conduct of the prosecution, what claims to
         prosecute and the terms of such claims, which countries in which to
         file for Patent Rights, the conduct of any defence to an opposition (if
         any) and whether to appeal any decision. If ICIL file and prosecute the
         Patent Rights then CytRx will within 30 days or receipt of an invoice
         from ICIL, pay the patenting costs associated with the filing and
         prosecution of such Patent Rights and such Patent Rights will become
         part of the Licensed Patents and will be automatically licensed to
         CytRx under Clause 2.1.1 of this Agreement.

7.10     If CytRx notifies ICIL in accordance with Clause 7.5 that it wishes to
         take a licence of such Non-Severable Improvement and neither ICIL nor
         CytRx wishes to patent such
<PAGE>
         Non-Severable Improvement then it will be automatically licensed to
         CytRx (a) to the extent that it falls within the scope of a Valid Claim
         of the Licensed Patents under Clause 2.1.1 of this Agreement in
         addition to the Licensed Patents, and to extent that it does not falls
         within the scope of a Valid Claim of the Licensed Patents under clauses
         2.1.2 or 2.1.3 as appropriate depending on the nature of the
         Improvement.

7.11     ICIL grants CytRx a first right to be granted a worldwide, exclusive
         licence to commercialise any Severable Improvements in the Field to the
         Licensed Patents made by Imperial and notified to CytRx under Clause
         7.4, where such Severable Improvements are unencumbered by any rights
         of any Third Party. In relation to any Severable Improvement CytRx
         shall notify ICIL within sixty (60) Business Days of the Notification
         Date for that Severable Improvement (the "DECISION PERIOD") whether or
         not it wishes to take a licence of such Severable Improvement. If CytRx
         notifies ICIL that it does wish to take a licence then the parties will
         negotiate in good faith to agree terms. If:

         7.11.1   CytRx notifies ICIL that it does not wish to take a licence of
                  such Severable Improvement; or

         7.11.2   CytRx does not notify ICIL within the Decision Period; or

         7.11.3   the Parties cannot agree the terms of a licence to such
                  Severable Improvement within six (6) months of the end of the
                  Decision Period (the "NEGOTIATION PERIOD")

         then ICIL will be free, subject to Clause 7.12, to license or assign
         the Severable Improvement to a Third Party.

7.12     If a Third Party makes a genuine offer to take a licence or an
         assignment of a Severable Improvement that ICIL is free to license or
         assign under Clause 7.11 (a "THIRD PARTY OFFER") (in circumstances
         where CytRx and ICIL have previously failed to agree terms under
         7.11.3) within a period of twenty four (24) months from the end of the
         Negotiation Period then ICIL will notify CytRx immediately and CytRx
         will have the option to match the Third Party Offer within forty-five
         (45) days of being so notified. If CytRx does match the offer then it
         shall be granted a licence or assignment of the Severable
<PAGE>
         Improvement provided that it executes a licence or assignment agreement
         within forty-five (45) days (or such longer period agreed by the
         Parties) of being notified by ICIL of the Third Party Offer. The
         Parties will use reasonable endeavours to agree and execute the licence
         or assignment agreement within the three (3) month period. If the
         Parties do not execute a licence or assignment agreement in respect of
         the Severable Improvement within the three (3) month period then ICIL
         will be free to license or assign the Severable Improvement to a Third
         Party without any further reference to CytRx.

8        IMPROVEMENTS TO THE MATERIALS

8.1      If the Research Group at Imperial creates an Improvement to the
         Biological Materials within 24 months of the date of this Agreement
         then such Improvement will be owned by ICIL and become part of the
         Biological Materials. It will be exclusively licensed to CytRx for the
         Field under the terms of Clause 2.1.2 of this Agreement and Imperial
         will supply CytRx with a reasonable quantity of such Biological
         Materials within a reasonable time of notification of the Improvement
         under Clause 7.4.

8.2      If the Research Group at Imperial creates an Improvement to the Related
         Technology within 24 months of the date of this Agreement then such
         Improvement will become part of the Related Technology and will be
         non-exclusively licensed to CytRx for the Field under the terms of
         Clause 2.1.3 of this Agreement.

8.3      Any Improvement made by CytRx to the Materials and any Patent Rights
         therein ("CYTRX MATERIALS IMPROVEMENTS") will be owned by CytRx. CytRx
         shall have responsibility for filing any Patent Rights relating to
         CytRx Materials Improvements and shall own any subsequent patents.

9        PROSECUTION OF THE PATENTS

9.1      Subject to Clause 9.3, CytRx will control in its sole discretion the
         prosecution of any Patent Rights included within the Licensed Patents.
         Such control shall include, but not be limited to, deciding which
         patent attorney shall have the conduct of the prosecution, what claims
         to prosecute and the terms of such claims, the conduct of any defence
         to an opposition (if any) and whether to appeal any decision.
<PAGE>
9.2      Subject to Clause 9.4, CytRx shall only be obliged to prosecute the
         Licensed Patents within the Patenting Territories but it may at its
         sole discretion prosecute the Licensed Patents outside such
         territories. CytRx and its Affiliates and Sublicensees shall not
         conduct screening activities relating to the identification of Licensed
         Products or Diagnostic Products outside of the Patenting Territories.

9.3      CytRx will not narrow any claims, or abandon any patent applications
         within the Licensed Patents in any Patenting Territory without the
         consent of ICIL, such consent not to be unreasonably withheld or
         delayed.

9.4      If CytRx does not wish to apply for, maintain or register Patent Rights
         in connection with the Licensed Patents in one or more of the Patenting
         Territories then ICIL shall not unreasonably withhold its consent to
         the removal of such country from the list of Patenting Territories.
         ICIL shall have the right to file, maintain or register patent
         applications at its own expense in such country so removed, and such
         applications and resultant patents shall not be subject to this
         Agreement.

9.5      CytRx will pay for all ongoing and future patent expenses in relation
         to the Licensed Patents prosecuted under Clause 9.1 incurred from the
         Commencement Date until termination or expiry of the Agreement and will
         instruct and settle all costs directly with the relevant patent agents
         or other bodies requiring payment for patent expenses or maintenance
         fees as authorized by a letter of instruction from ICIL.

9.6      CytRx shall be entitled to register this licence, if possible in
         abbreviated form, in whichever territories it wishes. Imperial and ICIL
         shall provide all reasonable assistance to CytRx to:

         9.6.1    register this Agreement throughout the world; and

         9.6.2    prosecute any Patent Rights within the Licensed Patents

         including, without limitation, providing scientific support and advice,
         providing laboratory notebooks and signing further documentation and
         handing over any current files relating to the prosecution of the
         Licensed Patents. CytRx will meet Imperial's and
<PAGE>
         ICIL's reasonable out of pocket external legal costs and travel
         expenses incurred in providing such assistance.

10       PROCEEDINGS RELATING TO THE LICENSED PATENTS

10.1     Each Party shall notify the other promptly during the term of the
         Agreement if it becomes aware of:

         10.1.1   any proceedings or applications emanating from a Third Party
                  challenging the validity or enforceability of the Licensed
                  Patents including, without limitation, any revocation,
                  interference or opposition proceedings; or

         10.1.2   a Third Party taking or threatening to take any proceedings
                  for infringement of any patents of that Third Party by reason
                  of CytRx's or CytRx Sublicensees' operation of the Licensed
                  Patents or the manufacture, use or sale of Licensed Products;
                  or

         10.1.3   any patent infringement or potential patent infringement of
                  the Licensed Patents by a Third Party (all such proceedings in
                  Clauses 10.1.1 to 10.1.3 being "ACTIONS").

10.2     CytRx shall have the first right at its sole discretion and cost to
         conduct (or have a CytRx Sublicensee conduct) any lawsuits, claims or
         proceedings relating to any Actions. ICIL and Imperial shall provide
         CytRx (or the CytRx Sublicensee) with all reasonable assistance in
         relation to any such lawsuits, claims or proceedings and shall, if
         necessary, consent to be joined as a party to them.

10.3     If CytRx (or the CytRx Sublicensee) does not bring or defend any Action
         within ninety (90) days of the date that such Action is first notified
         by one Party to both of the other Parties then ICIL can bring or defend
         such Action and CytRx and Imperial shall provide reasonable assistance
         to ICIL at ICIL's cost. ICIL can require CytRx to grant a sublicence
         under this Agreement to any infringer that is the subject of an Action
         brought by ICIL under this Clause 10.3, provided that the terms of such
         sub-licence are reasonably acceptable to CytRx and Imperial.
<PAGE>
10.4     If CytRx brings proceedings against a Third Party for infringement of
         the Licensed Patents, or any of them, and ICIL is joined in as a party
         to such proceedings then ICIL will have the option to pay two percent
         (2%) of the legal costs associated with such proceedings including two
         percent (2%) of any costs awarded against the Parties. If ICIL
         exercises this option then it will share any damages awarded (after all
         patenting costs incurred in relation to the Licensed Patents at the
         point that the damages are awarded have been deducted from such damages
         and paid to the Party who incurred such patenting costs) in the
         proportion ninety eight percent (98%) to CytRx and two percent (2%) to
         ICIL. If CytRx pays all the legal costs it shall retain all the damages
         awarded.

10.5     If ICIL brings proceedings against a Third Party for infringement of
         the Licensed Patents, or any of them, and CytRx is joined in as a party
         to such proceedings then CytRx will have the option to pay half the
         legal costs associated with such proceedings including half of any
         costs awarded against the Parties. If CytRx exercises this option then
         it will share any damages awarded (after all patenting costs incurred
         in relation to the Licensed Patents at the point that the damages are
         awarded have been deducted from such damages and paid to CytRx) in the
         proportion fifty per cent (50%) to CytRx and fifty percent (50%) to
         ICIL. If ICIL pays all the legal costs it shall retain all the damages
         awarded.

11       DISPUTE RESOLUTION PROCEDURE

11.1     The Parties will use all reasonable endeavours to resolve disputes
         arising out of this Agreement. The Parties may refer any dispute to the
         CEO of CytRx and Managing Director of ICIL, who shall co-operate in
         good faith to resolve the dispute as amicably as possible within 15
         Business Days of the dispute being referred to them.

11.2     If the CEO of CytRx and Managing Director of ICIL fail to resolve the
         dispute in the allotted time, the Parties may within that period on the
         written request of both Parties agree in writing to enter into an
         alternative dispute resolution procedure with the assistance of a
         mediator agreed by the parties or, in default of such agreement
         appointed by the Centre for Dispute Resolution, Harbour Exchange
         Square, London.
<PAGE>
11.3     If the alternative dispute procedure fails to resolve the dispute then
         the dispute will be resolved by arbitration in accordance with Clause
         26.

12       REPRESENTATIONS AND WARRANTIES

12.1     Each Party represents, warrants, undertakes and agrees for the benefit
         of the other that:

         12.1.1   it has full power to enter into and perform this Agreement;

         12.1.2   so far as it is aware the execution and delivery of this
                  Agreement and the performance of and compliance with its terms
                  and provisions will not:

                  (i)      conflict with or result in a breach of, or constitute
                           a default under, any agreement or instrument to which
                           it is a party or by which it is bound or with its
                           memorandum and articles of association or certificate
                           of incorporation; or

                  (ii)     conflict with or result in a breach of any law,
                           regulation or order of any court.

12.2     ICIL represents, warrants, undertakes and agrees that:

         12.2.1   full and accurate details of all registrations of and
                  applications for registration of the Licensed Patents as at
                  the Commencement Date are set out Schedule 1;

         12.2.2   to the best of its actual knowledge (and without having made
                  any special enquiries) it is the sole legal and beneficial
                  owner of the Licensed Patents and Materials;

         12.2.3   to the best of its actual knowledge (and without having made
                  any special enquiries) it does not know of any reason why the
                  Patent Application will not be granted at least in part and
                  with commercially significant claims or any Patent Rights
                  based on it will not be granted in any country;

         12.2.4   to the best of its actual knowledge (and without having made
                  any special enquiries) it does not know of any activities
                  carried out now by any Third Party
<PAGE>
                  which if carried out after any of the Licensed Patents are
                  granted would infringe such Licensed Patents;

         12.2.5   to the best of its knowledge (and without having made any
                  special enquiries) it does not own nor is it licensed to use
                  any intellectual property that relates to RIP140 in the area
                  of obesity or diabetes other than the Licensed Patents;

         12.2.6   to the best of its knowledge (and without having made any
                  special enquiries) it does not own nor is it licensed to use
                  any intellectual property that:

                  (a)      would prevent CytRx Exploiting the rights granted
                           under this Agreement; or

                  (b)      would result in CytRx being liable to pay a royalty
                           or any other sum, in addition to the sums set out in
                           Clause 4 above, to Exploit the Licensed Patents or
                           Materials; or

         12.2.7   to the best of its actual knowledge and without having
                  conducted any special enquiries, all necessary registration,
                  maintenance and renewal fees currently due in connection with
                  the Licensed Patents have been made and all necessary
                  documents and certificates in connection with such Licensed
                  Patents have been filed with the relevant patent or other
                  authorities in the United Kingdom for the purposes of
                  maintaining such Licensed Patents;

12.3     Imperial represents, warrants, undertakes and agrees that it will use
         its best endeavours to ensure that any Biological Materials supplied to
         CytRx under this Agreement are in accordance with the description of
         such Biological Materials. If they are found by CytRx not be in
         accordance with such description then, without prejudice to any other
         rights accrued by CytRx as a result of the breach of Imperials
         obligation in this Clause 12.3, Imperial will use its best endeavours
         to provide Biological Materials in accordance with the description.

12.4     Without limiting the scope of Clause 12.2 and 12.3, ICIL does not give
         any warranty, representation or undertaking:
<PAGE>
         12.4.1   as to the efficacy, scope or usefulness of the Licensed
                  Patents or Materials; or

         12.4.2   except as expressly set forth in clause 12.2.6 that the use of
                  any of the Licensed Patents or Related Technology, the
                  manufacture, sale or use of the Licensed Products or the
                  exercise of any of the rights granted under this Agreement
                  after the date of this Agreement will not infringe any other
                  intellectual property or other rights of any other person; or

         12.4.3   that the Licensed Patents or Materials or any other
                  information communicated by ICIL to CytRx under or in
                  connection with this Agreement will produce Licensed Products
                  of satisfactory quality or fit for the purpose for which CytRx
                  intended; or

         12.4.4   subject to Clause 10.2, as imposing any obligation on ICIL to
                  bring or prosecute actions or proceedings against third
                  parties for infringement or to defend any action or
                  proceedings for revocation of any of the Licensed Patents; or

         12.4.5   as imposing any liability on ICIL in the event that any third
                  party supplies Licensed Products to end-user customers.

12.5     CytRx acknowledges that the Materials and Related Technology are at an
         early stage of development. Accordingly, but subject to Clause 12.3,
         specific results cannot be guaranteed and any results, materials,
         information or other items (together "Delivered Items") provided under
         this Agreement are provided "as is" and without any express or implied
         warranties, representations or undertakings other than that the
         Delivered Items have been created and provided in good faith. As
         examples, but without limiting the foregoing, ICIL does not give any
         warranty that Delivered Items are of merchantable or satisfactory
         quality, are fit for any particular purpose, or are viable,
         uncontaminated, safe or non-toxic.

12.6     Except as expressly stated in this Clause 12, no representations, or
         warranty whatsoever are made or given by or on behalf of the Parties.
<PAGE>
12.7     Subject always to the provisions of Clause 12.11, CytRx shall indemnify
         ICIL and Imperial against any loss, damages, costs, expenses or other
         liabilities which are awarded against or incurred by ICIL and Imperial
         as a result of any claim or threatened claim against them by a Third
         Party concerning the use by CytRx, its Affiliates or any of its
         sub-licensees of the Licensed Patents or Materials or otherwise in
         connection with the manufacture, use or sale of or any other dealing in
         any of the Licensed Products by CytRx or its Affiliates or any of its
         sub-licensees (hereinafter a "CLAIM"), provided:

         12.7.1   CytRx shall not be obligated to indemnify ICIL and/or Imperial
                  under this Clause if it is shown by evidence acceptable in a
                  court of law having jurisdiction over the subject matter and
                  meeting the appropriate degree of proof for such action, that
                  the Claim was the result of the negligence, failure to
                  reasonably act or wilful misconduct of any employee or agent
                  of ICIL and/or Imperial or the conduct of any activity to be
                  performed by ICIL and/or Imperial pursuant to this Agreement;
                  and

         12.7.2   CytRx shall have no obligation under this Clause 12.7 unless
                  ICIL and/or Imperial:

                  (a)      gives CytRx prompt written notice of any Claim for
                           which it seeks to be indemnified under this
                           Agreement;

                  (b)      CytRx is granted full authority and control over the
                           defence (at the cost of CytRx), including settlement,
                           against such Claim; and

                  (c)      ICIL and/or Imperial co-operates as reasonably
                           required with CytRx and its agents in defence of such
                           Claim at the cost of CytRx.

12.8     Imperial and/or ICIL shall have the right to participate in the defence
         of any such Claim referred to in Clause 12.7 utilising attorneys of its
         choice at its own cost and expense, provided, however, that CytRx shall
         have full authority and control to handle any such Claim, including any
         settlement or other disposition thereof, for which the ICIL and/or
         Imperial seeks indemnification under Clause 12.7.
<PAGE>
12.9     CytRx undertakes to make no claim against any employee, student, agent
         or appointee of ICIL or Imperial, being a claim which seeks to enforce
         against any of them any liability whatsoever in connection with this
         Agreement or its subject matter save that CytRx can apply for
         injunctive relief in relation to an employee, student, agent or
         appointee of ICIL or Imperial if they have (or are threatening to)
         wilfully disclose any Confidential Information under this Agreement.

12.10    In any event, the maximum liability of ICIL to CytRx under or otherwise
         in connection with this Agreement or its subject-matter shall not
         exceed the return of all monies paid by CytRx under this Agreement,
         together with interest on the balance of such monies from time to time
         outstanding, accruing from day to day at the National Westminster Bank
         plc base rate from time to time in force.

12.11    Notwithstanding any other provision of this Agreement, no Party shall
         be liable to any other Party to this Agreement in contract, tort,
         negligence, breach of statutory duty or otherwise for any loss, damage,
         costs or expenses of any nature whatsoever incurred or suffered by that
         other party or its Affiliates of an indirect or consequential nature
         including without limitation any economic loss or other loss of
         turnover, profits, business or goodwill.

13       CONFIDENTIALITY

13.1     The Parties each undertake and agree to:

         13.1.1   only use the Confidential Information for the purposes
                  envisaged under this Agreement and not to use the same for any
                  other purpose whatsoever;

         13.1.2   ensure that only those of its officers and employees who are
                  directly concerned with the carrying out of this Agreement
                  have access to the Confidential Information on a strictly
                  applied "need to know" basis and are informed of the secret
                  and confidential nature of it;

         13.1.3   keep the Confidential Information secret and confidential and
                  not to directly or indirectly disclose or permit to be
                  disclosed the same to any Third Party excluding
<PAGE>
         any consultants or other advisors for any reason without the prior
         written consent of the Disclosing Party;

13.2     Subject to clause 24, the Parties each agree not to disclose any of the
         terms of this Agreement or its existence to any Third Party without the
         prior consent of the other Party, except as may be required by law or
         to fulfil any other obligations under this Agreement.

13.3     The obligations of confidence referred to in Clause 13.1 shall not
         extend to any Confidential Information which:

         13.3.1   is or becomes generally available to the public otherwise than
                  by reason of breach by a Recipient Party of the provisions of
                  this Clause;

         13.3.2   is known to the Recipient Party and is at its free disposal
                  (having been generated independently by the Recipient Party or
                  a Third Party in circumstances where it has not been derived
                  directly or indirectly from the Disclosing Party's
                  Confidential Information prior to its receipt from the
                  Disclosing Party provided that evidence of such knowledge is
                  furnished by the Recipient Party to the Disclosing Party
                  within 28 days of receipt of that Confidential Information);

         13.3.3   is subsequently disclosed to the Recipient Party without
                  obligations of confidence by a Third Party owing no such
                  obligations to the Disclosing Party in respect of that
                  Confidential Information; or

         13.3.4   is required by law to be disclosed (including as part of any
                  regulatory submission or approval process) and then only when
                  prompt written notice of this requirement has been given to
                  the Disclosing Party so that it may, if so advised, seek
                  appropriate relief to prevent such disclosure provided always
                  that in such circumstances such disclosure shall be only to
                  the extent so required and shall be subject to prior
                  consultation with the Disclosing Party with a view to agreeing
                  timing and content of such disclosure.

13.4     All Confidential Information disclosed by one Party to the other shall
         remain the property of the Disclosing Party. In the event that a court
         or Competent Authority assumes partial
<PAGE>
         or complete control over the assets of a Recipient Party based on the
         insolvency or bankruptcy of that Party, the Recipient Party shall:

         13.4.1   promptly notify such court or Competent Authority:

         (a)      that Confidential Information received from the Disclosing
                  Party under this Agreement remains the property of the
                  Disclosing Party; and

         (b)      of the confidentiality obligations under this Agreement; and

         13.4.2   to the extent permitted by law, take all steps necessary or
                  desirable to maintain the confidentiality and security of the
                  Disclosing Party's Confidential Information and to ensure that
                  the court or Competent Authority maintains that Confidential
                  Information in confidence in accordance with this Agreement.

13.5     The obligations of the Parties under Clause 13.1 to 13.4 shall survive
         the expiration or termination of this Agreement for whatever reason for
         a period of 7 years.

13.6     The Parties understand and agree that remedies in damages may be
         inadequate to protect against any breach of any of the provisions of
         this Clause 13 by either Party or their employees, officers or any
         other person acting in concert with it or on its behalf. Accordingly,
         each Party shall be entitled to seek the granting of interim and final
         injunctive relief by a court of competent jurisdiction in the
         discretion of that court against any action that constitutes any breach
         of this Clause without the necessity of posting a bond or proving
         damages.

14       DURATION AND TERMINATION

14.1     The term of this Agreement shall extend to the expiry of the last Valid
         Claim in any country or the earlier termination of this Agreement in
         accordance with Clauses 14.2 or 14.3 below.

14.2     CytRx shall have the right to terminate this Agreement upon three (3)
         months written notice.
<PAGE>
14.3     CytRx shall have the right to terminate the Agreement and the Licence
         forthwith in the event that:

         (a)      ICIL or Imperial commit a material or persistent breach of any
                  of their material obligations under this Agreement which is
                  incapable of remedy; or

         (b)      ICIL or Imperial fail to remedy, where it is capable of
                  remedy, or persists in any breach of any of their obligations
                  under this Agreement after having been required in writing to
                  remedy or desist from such breach within a period of sixty
                  (60) days of receipt of a notice from CytRx detailing such
                  breach and of its intention to exercise its rights under this
                  Clause.

14.4     ICIL shall have the right to terminate the Agreement and the Licence
         forthwith in the event that:

         (a)      CytRx commits a material or persistent breach of any of its
                  material obligations under this Agreement which is incapable
                  of remedy; or

         (b)      CytRx fails to remedy, where it is capable of remedy, or
                  persists in any material breach of any of its obligations
                  under this Agreement after having been required in writing to
                  remedy or desist from such breach within a period of sixty
                  (60) days of receipt of a notice from ICIL detailing such
                  breach and of its intention to exercise its rights under this
                  Clause.

14.5     Upon termination or expiry of this Agreement for any reason whatsoever:

         14.5.1   the relationship of the Parties hereunder shall cease save as
                  (and to the extent) expressly provided for in this Clause
                  14.5;

         14.5.2   ICIL shall grant licences to each CytRx Sublicensee on the
                  equivalent terms as those set out in this Agreement which will
                  allow such CytRx Sublicensee to continue to Exploit or use the
                  rights granted to it by CytRx under this Agreement (with no
                  obligation for CytRx to make payments to ICIL based on sales
                  of Licensed Products by the CytRx Sublicensee), provided
                  always that the termination of this Agreement was not caused
                  directly or indirectly by a CytRx
<PAGE>
                  Sublicensee in which case ICIL shall have no obligation under
                  this Clause 14.5.2 with respect to such CytRx Sublicensee;

         14.5.3   CytRx and any CytRx Sublicensee shall be entitled to fulfill
                  any orders which, as at the date of termination, they are
                  contracted to fulfill and otherwise sell or dispose of any
                  stock which is in their possession, custody or control at the
                  date of termination provided that CytRx shall pay royalties on
                  such sales on the terms of this Agreement. Within six (6)
                  months of the date of expiry or termination of this Agreement,
                  CytRx will return to ICIL or dispose of all Materials or
                  Related Technology in its possession and cease to Exploit
                  Licensed Products which incorporate Biological Materials that
                  have been provided to CytRx under this Agreement by ICIL or
                  Imperial, provided that, following termination of this
                  Agreement by CytRx, CytRx may continue to Exploit Licensed
                  Products subject to CytRx continuing to comply with the
                  provisions of Clauses 4 and 5 relating to the payment of
                  milestones and royalties and Clauses 12.7 to 12.11. If
                  following termination of this Agreement CytRx does so continue
                  to Exploit Licensed Products in any country where there is no
                  Valid Claim still in force the royalty payable pursuant to
                  Clause 4 on Licensed Products sold in that country will be
                  reduced by fifty (50) per cent;

         14.5.4   CytRx shall have no obligation to prosecute, maintain or
                  enforce the Licensed Patents and any patented Non-Severable
                  Improvements and shall transfer to ICIL all right and title to
                  the Licensed Patents, any patented Non-Severable Improvements
                  and intellectual property rights in any Related Technologies;
                  and

         14.5.5   Any overpayments made by CytRx to ICIL, that have not been
                  credited against royalties or other amounts payable by CytRx
                  to ICIL under Clause 5.8 will become immediately due and
                  payable by ICIL to CytRx.

14.6     The obligation to make payments under this Agreement with respect to
         any period prior to its expiry or termination shall survive the expiry
         or termination of this Agreement.
<PAGE>
14.7     Termination of this Agreement for whatever reason shall not affect the
         accrued rights of the Parties arising in any way out of this Agreement
         as at the date of termination including without limitation the right to
         recover damages against each other and all provisions which are
         expressed or are implied to survive this Agreement shall remain in full
         force and effect.

15       COMMERCIALISATION OPTION

15.1     Following termination of this Agreement, if CytRx notifies in writing
         ICIL (an "OPTION NOTICE") that it no longer wishes to develop and/or
         market a Licensed Product for the treatment of obesity (an "OPTION
         PRODUCT") ICIL will have a first right to take over the development of
         such an Option Product and to purchase from CytRx at a commercially
         reasonable rate all information, data, intellectual property, Know-How,
         regulatory approval data, marketing authorisations relating to it.

15.2     If ICIL notifies CytRx in writing within thirty (30) days of the Option
         Notice that it wishes to enter into negotiations to take over the
         development of such an Option Product and to purchase the rights set
         out in Clause 15.1, then the Parties will promptly enter into
         negotiations to agree terms.

15.3     The value of the Option Product will be based on:

         15.3.1   the direct costs incurred by CytRx in developing the product
                  up to the date of any agreement between CytRx and ICIL to
                  transfer the development of such a Licensed Product and to
                  purchase the rights set out in Clause 15.1; and

         15.3.2   a premium to take account of the risk taken by CytRx in
                  developing the Option Product up to that point, the likelihood
                  of the product reaching the market and its potential sales.
                  The valuation of the Option Product shall be carried out by
                  the Parties according to reasonable and mutually agreed
                  principles at the time that ICIL notifies CytRx that it wishes
                  to enter into negotiations.

15.4     If the negotiations described in Clause 15.2 do not result in an
         executed agreement within seven (7) months of the date of the Option
         Notice then CytRx will be free to negotiate
<PAGE>
         with a Third Party and dispose to them the Option Product and all
         information, data, intellectual property, Know-How, regulatory approval
         data, marketing authorisations relating to it.

15.5     If ICIL notifies CytRx in writing within thirty (30) days of the Option
         Notice that it does not wish to enter into negotiations, or does not
         respond within such thirty (30) day period, then CytRx will be free to
         negotiate with a Third Party and dispose to them the Option Product and
         all information, data, intellectual property, Know-How, regulatory
         approval data, marketing authorisations relating to it.

16       ASSIGNMENT

16.1     This Agreement may not be assigned by either Party without the prior
         written consent of the other Party (such consent not to be unreasonably
         withheld and such consent or refusal of consent to be given within 30
         days of a request), except that either Party may assign the Agreement
         to any of its Affiliates or to a successor in connection with the
         merger, consolidation, or sale of all or substantially all of its
         assets or that portion of its business pertaining to the subject matter
         of the Agreement, with prompt notice to the other party of any such
         assignment. The Agreement shall inure to the benefit of and be binding
         upon the Parties and their respective lawful successors and assigns.

17       FORCE MAJEURE

17.1     If a Party (the "Non-Performing Party") is unable to carry out any of
         its obligations under this Agreement due to Force Majeure this
         Agreement shall remain in effect but the Affected Party's relevant
         obligations under this Agreement and the corresponding obligations of
         the other Party under this Agreement, shall be suspended for a period
         equal to the circumstance of Force Majeure.

18       WAIVER

18.1     Save as expressly provided in this Agreement neither Party shall be
         deemed to have waived any of its rights or remedies whatsoever provided
         by law or under this Agreement unless the waiver is made in writing,
         signed by a duly authorised representative of that
<PAGE>
         Party and may be given subject to any conditions thought fit by the
         grantor. Unless otherwise expressly stated any waiver shall be
         effective only in the instance and for the purpose for which it is
         given.

18.2     No delay or failure of any Party in exercising or enforcing any of its
         rights or remedies whatsoever shall operate as a waiver of those rights
         or remedies or so as to preclude or impair the exercise or enforcement
         of those rights or remedies. No single or partial exercise or
         enforcement of any right or remedy by any Party shall preclude or
         impair any other exercise or enforcement of that right or remedy by
         that Party.

19       SEVERANCE OF TERMS

19.1     If the whole or any part of this Agreement (including any one or more
         of the clauses of this Agreement or any sub-clause or paragraph or any
         part of one or more of these clauses) is or becomes or is declared
         illegal, invalid or unenforceable in any applicable jurisdiction for
         any reason (including both by reason of the provisions of any
         legislation and also by reason of any decision of any court or
         Competent Authority which either has jurisdiction over this Agreement
         or has jurisdiction over any of the Parties) then:

         19.1.1   in the case of the illegality, invalidity or un-enforceability
                  of the whole of this Agreement it shall terminate in relation
                  to the jurisdiction in question; or

         19.1.2   in the case of the illegality, invalidity or un-enforceability
                  of part of this Agreement that part shall be severed from this
                  Agreement in the jurisdiction in question and that illegality,
                  invalidity or un-enforceability shall not in any way
                  whatsoever prejudice or affect the remaining parts of this
                  Agreement which shall continue in full force and effect.

20       ENTIRE AGREEMENT/VARIATIONS

20.1     This Agreement constitutes the entire agreement and understanding
         between the Parties and supersedes all prior oral or written
         understandings, arrangements, representations or agreements between
         them relating to the subject matter of this Agreement. The Parties
         acknowledge that no claims shall arise in respect of any
         understandings, arrangements,
<PAGE>
         representations or agreements so superseded. No director, employee or
         agent of any Party is authorised to make any representation or warranty
         to another Party not contained in this Agreement, and each Party
         acknowledges that it has not relied on any such oral or written
         representations or warranties. Nothing in this Agreement removes or
         overrides any right of action by any Party in respect of any fraudulent
         misrepresentation, fraudulent concealment or other fraudulent action.

20.2     No variation, amendments, modification or supplement to this Agreement
         shall be valid unless made in writing in the English language and
         signed by a duly authorised representative or representatives of each
         Party.

21       NOTICES

21.1     Any notice or other communication to be given pursuant to or made under
         or in connection with the matters contemplated by this Agreement shall
         be in writing in the English language and shall be delivered by
         courier, sent by post or sent by facsimile to the address or facsimile
         number of the recipient set out in Schedule 4 or as specified by the
         recipient from time to time in accordance with this Clause 21. Notices
         sent by e-mail shall not be valid of themselves and must be confirmed
         in hard copy form by courier, by post or facsimile.

21.2     Any notice given pursuant to this Clause 21 shall be deemed to have
         been received:

         21.2.1   in the case of delivery by hand, when delivered; or

         21.2.2   in the case of sending by post:

         (a)      where posted in the country of the addressee, on the second
                  working day following the day of posting, and

         (b)      where posted in any other country, on the fifth working day
                  following the day of posting; or

         21.2.3   in the case of facsimile, on acknowledgement by the
                  recipient's facsimile receiving equipment on a Business Day if
                  the acknowledgement occurs before
<PAGE>
                  1700 hours local time of the recipient and in any other case
                  on the following Business Day.

22       COUNTERPARTS

22.1     This Agreement may be executed in any number of counterparts and by the
         different Parties on separate counterparts, each of which when so
         executed shall be an original of this Agreement, and all of which shall
         together constitute one and the same instrument. Complete sets of
         counterparts shall be lodged with each Party.

23       THIS AGREEMENT NOT TO CONSTITUTE A PARTNERSHIP; THIRD PARTIES.

23.1     Nothing on this Agreement and no action taken by the Parties pursuant
         to this Agreement shall constitute or be deemed to constitute a
         partnership association, joint-venture or other co-operative entity
         between the Parties and none of the Parties shall have any authority to
         bind the others in any way except as provided in this Agreement.

23.2     The Contracts (Rights of Third Parties) Act 1999 will not apply to this
         Agreement. No person who is not a party to this Agreement (including
         any employee, officer, agent, representative or subcontractor of either
         party) except any Affiliates of CytRx will have the right (whether
         under the Contracts (Rights of Third Parties) Act 1999 or otherwise) to
         enforce any term of this Agreement which expressly or by implication
         confers a benefit on that person without the express prior agreement in
         writing of the Parties which agreement must refer to this Clause 23.2.

24       PRESS RELEASES

24.1     Subject to Clause 24.2, no public announcement or other disclosure to
         Third Parties (except to Affiliates of the Parties) concerning this
         Agreement shall be made, whether directly or indirectly, by any Party
         to this Agreement without first obtaining the approval of the other
         Party and agreement upon the nature and text of such announcement or
         disclosure with the exception that:

         24.1.1   a Party may disclose the full terms of this Agreement to its
                  investment bankers, lawyers, accountants and other
                  professional advisors without the other Party's
<PAGE>
                  prior approval provided that such disclosure is made under the
                  terms of confidentiality whether express or implied; and

         24.1.2   a Party may disclose those terms which it is required by a
                  Directive to disclose and CytRx may file a copy of the
                  Agreement with the United States Securities and Exchange
                  Commission provided that it takes advantage of all provisions
                  to keep confidential as many terms of the Agreement as
                  possible.

         24.1.3   a Party may further disclose the terms where such disclosure
                  is a repeat of a previous disclosure or items included in such
                  previous disclosure..

24.2     CytRx will use reasonable commercial endeavours to provide a draft
         press release to ICIL by 18 May 2004. Such press release will not be
         issued for publication until its contents have been agreed by CytRx and
         ICIL. The Parties will use reasonable endeavours to agree the terms of
         such press release within a reasonable time with a view to CytRx
         publishing the press release on 19 or 20 May 2004.

25       GOVERNING LAW

25.1     The validity and construction and interpretation of this Agreement and
         any determination of the performance which it requires shall be
         governed by the internal laws of the State of New York, USA.

26       JURISDICTION

26.1     Subject to Clauses 11 and 26.2, all disputes between the Parties
         arising under, out of or relating to this Agreement or arising out of
         the circumstances and relationships contemplated by this Agreement
         including disputes relating to the validity, construction or
         interpretation of this Agreement and including its formation, validity,
         binding effect, interpretation, performance, breach or termination as
         well as non-contractual claims and including disputes relating to
         pre-contractual representations which result in any action or
         proceeding shall be referred to and finally resolved by arbitration
         under the Rules of the ICC International Court of Arbitration which
         Rules are deemed to be incorporated by reference into this Clause. The
         number of arbitrators shall be one. The place of
<PAGE>
         arbitration shall be New York. The language to be used in the arbitral
         proceedings shall be English.

26.2     Clauses 11 and 26.1 shall not prevent either Party applying for and
         obtaining interim relief from a court.

IN WITNESS OF THE ABOVE the Parties have signed this Agreement on the date
written at the head of this Agreement.

SIGNED by                           )     /s/ SUSAN SEARLE
for and on behalf of                )     ..................................
IMPERIAL COLLEGE INNOVATIONS        )     Authorised Signatory
LIMITED                             )

SIGNED by                           )     /s/ PETER BEARMAN
for and on behalf of                )     ..................................
IMPERIAL COLLEGE                    )     Authorised Signatory

SIGNED for and on behalf of         )     /s/ STEVEN KRIEGSMAN
CYTRX CORPORATION by                )     ..................................
                                    )     Authorised Signatory
<PAGE>
                                   SCHEDULE 1

                                LICENSED PATENTS

PCT application PCT/2004/000413 filed on 3rd February 2004 and claiming priority
from UK priority patent application number 0302446.0 filed 3rd February 2003
entitled "Screening for Modulators of Fat Storage"
<PAGE>
                                    SCHEDULE 2

                               BIOLOGICAL MATERIALS

-     ANIMALS: RIP140 null mice - upon request 3 pairs of heterozygous
      males and females

-     CELLS: RIP140 null cells called RIPKO-1.

-     RIP140/ NUCLEAR RECEPTOR RESPONSIVE REPORTER CELL LINES (e.g.,
      PPRE-luciferase, ERE Luc, SRE-Luc

-     DNA CLONES: Expression vectors for RIP140 and mutant version thereof.

-     EXPRESSION VECTORS FOR RIP140 expressed as GST or other fusion
      protein

-     REPORTER ASSAYS & NR VECTORS

-     ANTIBODIES: MP45 polyclonal antibody and 6D7 MAb.
<PAGE>
                                   SCHEDULE 3

                                EXPERT'S DECISION

1.    Any matter or dispute relating to (a) the calculation method for
      royalty payments to be made on any Combination Product or (b) the
      valuation of any Sublicensing Revenue received by CytRx in a form
      other than cash shall be referred to a person suitably qualified to
      determine that matter or dispute (an "EXPERT") who shall be
      nominated jointly by the Parties or, failing agreement between the
      Parties within twenty (20) Business Days of a written request by
      either Party to the other seeking to initiate the Experts' Decision
      procedure set out below, either Party may request the president or
      chairman for the time being of  The American Pharmaceutical
      Manufacturers Association or any successor body to it to nominate
      the Expert.

2.    The Parties shall within fourteen (14) days of the appointment of the
      Expert meet with him or her in order to agree a program for the exchange
      of any relevant information and the structure to be adopted for the
      negotiations.

3.    In all cases the terms of appointment of the Expert by whomsoever
      appointed shall include:

      3.1.  a commitment by the Parties to share equally the payment of
            the Expert's fee;

      3.2.  a requirement on the Expert to act fairly as between the
            Parties and according to the principles of natural justice;

      3.3.  a requirement on the Expert to hold professional indemnity
            insurance both then and for three (3) years following the date
            of his or her determination;

      3.4.  a commitment by the Parties to supply to the Expert all such
            assistance, documents and information as he or she may require
            for the purpose of his or her determination; and

      3.5.  a commitment by the Parties that all negotiations connected
            with the dispute shall be conducted in confidence and without
            prejudice to the rights of the Parties in any future
            proceedings.

4.    The Expert's recommendations shall be reduced to writing and once signed
      by their duly authorised representatives, shall be binding on the Parties
      (save in the case of negligence or manifest error on the part of the
      Expert).
<PAGE>
                                   SCHEDULE 4

                              Addresses for Notices

            ICIL and Imperial:      Imperial College Innovations

                                    Imperial College London

                                    12th Floor, EEE Building, South
                                    Kensington Campus, London SW7 2AZ, UK

                                    Facsimile: (0207) 589 3553 or (0207)
                                    594 6584

                                    Attention: Managing Director

            CytRx                   CytRx Corporation

                                    11726 San Vicente Boulevard,

                                    Suite 650,

                                    Los Angeles,

                                    California 90049 USA

                                    Facsimile: +310 826 5529

                                    Attention: Steven Kriegsman, CEO<PAGE>
                                                                   EXHIBIT 10.74

                 MUTUAL GENERAL RELEASE AND SEVERANCE AGREEMENT

            This Mutual General Release and Severance Agreement (the
"Agreement") is entered into by and between CytRx Corporation, a Delaware
Corporation (the "Company") and C. Kirk Peacock ("Peacock") as of the date on
which Peacock executes and dates this Agreement. The Company and Peacock are
referred to collectively as the "Parties."

                                    RECITALS

            A.    Whereas, Peacock has been employed by the Company, as its
Chief Financial Officer, since August 16, 2003 pursuant to an employment
agreement dated August 1, 2003 (the "Employment Agreement"); and

            B.    Whereas, Peacock has alleged that he has suffered a
constructive discharge in violation of his Employment Agreement and other
rights; and

            C.    Whereas, the Company denies that it constructively discharged
Peacock or otherwise violated his rights; and

            D.    Whereas, the Parties wish to avoid the time, expense,
inconvenience, publicity, risks, and costs involved in litigation of Peacock's
threatened claims, and on the terms set forth below, the Parties desire to
extinguish the Employment Agreement and compromise and settle all disputes
between them, including, but not limited to, all claims arising out of or
relating to Peacock's employment with the Company or the termination of that
employment.

            NOW, therefore, in consideration of the foregoing stipulated facts,
and the mutual promises, agreements and understandings contained herein, the
Parties hereby agree as follows:

            1.    Settlement Consideration

            Subject to the terms and conditions set forth below, the Company
shall provide the following payments and compensation:

                  a.    The Company will pay Peacock One hundred twenty-three
thousand seven hundred fifty dollars ($123,750) (equal to nine (9) months
salary), with the Company to withhold appropriate taxes, by cashier's check
delivered to Peacock concurrent with his delivery of this executed Agreement.

                  b.    The Company will pay Peacock his full annual bonus of
twenty-four thousand seven hundred fifty dollars ($24,750) with the Company to
withhold appropriate taxes, by cashier's check delivered concurrent with his
delivery of this executed Agreement.

                  c.    Within two (2) business days from the date Peacock
delivers this executed Agreement, the Company will deposit into escrow, for
Peacock's benefit, with an escrow holder reasonably acceptable to the Parties,
the gross sum of one hundred twenty-three thousand seven hundred fifty dollars
($123,750) (equal to an additional nine (9) months of salary). Beginning with
the first day of the 11th month after the Severance Date, and also

                                       1
<PAGE>
beginning with the first day of each subsequent month through the 19th month
after the Severance Date, with each such month calculated as 30-day periods
following the Severance Date, Peacock may draw from the escrow account up to
thirteen thousand seven hundred fifty dollars ($13,750), depending upon his
earnings for the previous month. To effect a withdrawal, Peacock shall present
to the escrow officer an affidavit regarding his employment and consulting
income, if any, from the month preceding the date on which he draws from the
escrow account. At such time as the affidavit is presented to the escrow
officer, the escrow officer shall pay Peacock thirteen thousand seven hundred
fifty dollars ($13,750) minus income Peacock earned from employment and
consulting during the previous month. After the 18th month after the Severance
Date (as defined in this Agreement in Paragraph 7), and once Peacock has been
paid any amount to which he is entitled under this Agreement, any amount
remaining in escrow shall be returned to the Company. The Company agrees to pay
all fees and costs of the escrow and to cause to be created an escrow account
consistent with this Agreement and take all other steps to effect the intent of
this paragraph.

                  d.    The Company will pay for up to eighteen (18) months of
COBRA insurance coverage for Peacock, commencing on the Severance Date and
ending at the conclusion of eighteen (18) months following the Severance Date.
The Company's obligation to provide such coverage will cease on the date Peacock
obtains comparable coverage from another full-time employer. Peacock shall
provide the Company with notice that he has obtained comparable coverage
promptly, but not later than three business days after he obtains such coverage.
If Peacock is self-employed during the time the Company is required to provide
COBRA insurance coverage, the Company shall continue to provide COBRA insurance
coverage until eighteen (18) months from the Severance Date. In the event the
Company's COBRA policy is cancelled for any reason whatsoever during the period
in which Peacock is to receive such COBRA coverage, the Company will obtain and
pay for comparable insurance coverage from an alternative reputable insurance
provider (such as Aetna, Blue Cross or Travelers, by way of examples).

                  e.    Effective immediately, the Company shall vest options to
purchase 105,000 shares of the Company's common stock, which the Company granted
Peacock in connection with the commencement of his employment with the Company.
Peacock will have 10 years from the date such options were granted within which
to exercise such options, on either a cash or cashless basis.

                  f.    The Company will pay Peacock's counsel, Alschuler
Grossman Stein & Kahan LLP ("AGS&K"), the sum of seven thousand five hundred
dollars ($7,500), which the Company shall pay by cashier's check exchanged
concurrent with Peacock's delivery of this signed Agreement. The Company shall
issue a Tax Form 1099 only to AGS&K for this amount.

                  g.    On execution of this Agreement, the Company shall pay
Peacock a cashier's check for the gross sum of five thousand six hundred
thirty-two dollars ($5,632), less appropriate withholding taxes, which
constitutes payment in full for unused vacation to which he is entitled.

                                       2
<PAGE>
            2.    General Release by Mr. Peacock

            Except for the obligations set forth in this Agreement and those
claims expressly reserved hereby, Peacock on behalf of himself, his attorneys
and agents, hereby releases, acquits and forever discharges the Company and all
of its current or former shareholders, officers, directors, agents, attorneys,
employees, representatives, predecessors-in-interest, successors and assigns,
and all individuals or entities acting by, through, under or in concert with any
of them (collectively, the "Released Company Parties"), from any and all
charges, controversies, claims, wages, rights, agreements, actions, costs or
expenses, causes of action, obligations, damages, losses, promises and
liabilities of whatever kind or nature (such as claims for emotional distress,
wages and attorneys' fees), in law or equity or otherwise, whether known or
unknown, suspected or unsuspected, from the beginning of time to the date he
signs this Agreement, provided, however, that nothing in this Agreement or
provision shall be deemed a release of the following claims: (a) claims for
defense and indemnification to which Peacock may be entitled pursuant to common
or statutory law, including but not limited to Labor Code Section 2802 or
Corporations Code Section 317, by virtue of his role as an employee or officer
of the Company; (b) claims for outstanding, unpaid medical expenses submitted to
the Company's medical insurance plan; (c) claims for amounts to be paid and
stock options awarded pursuant to this Agreement; and (d) claims to enforce this
Agreement.

            Peacock expressly agrees that, other than those claims expressly
reserved herein, this Agreement and General Release extends to all claims of
every nature and kind, known or unknown, suspected or unsuspected, vested or
contingent, past, present or future, arising from or attributable to any alleged
act or omission of the Released Parties or their respective agents or
representatives, occurring prior to the execution of this Agreement, including,
without limitation, claims arising from the employment by, or the termination of
Peacock's employment with, any of the Released Parties.

            3.    General Release by the Company

            Except for the obligations set forth in this Agreement, the Company,
on behalf of itself, its attorneys, its officers, directors and agents, acquits
and forever discharges Peacock and his representatives, agents and assigns
(collectively, the "Released Peacock Parties"), from any and all charges,
controversies, claims, wages, rights, agreements, actions, costs or expenses,
causes of action, obligations, damages, losses, promises and liabilities of
whatever kind or nature (such as claims for attorneys' fees), in law or equity
or otherwise, whether known or unknown, suspected or unsuspected, from the
beginning of time to the date it signs this Agreement, provided, however, that
nothing in this Agreement or provision shall be deemed a release of the
following claims: (a) claims for defense and indemnification to which the
Company may be entitled pursuant to common or statutory law by reason of its
role as Peacock's employer; and (b) claims to enforce this Agreement.

            The Company, its attorneys, officers, directors, and agents
expressly agree that this Agreement and General Release extends to all claims of
every nature and kind, known or unknown, suspected or unsuspected, vested or
contingent, past, present or future, arising from or attributable to any alleged
act or omission of Peacock occurring prior to the execution of this

                                       3
<PAGE>
Agreement (except for representations and warranties and other obligations
created by this Agreement), including, without limitation, claims arising from
Peacock's employment.

            4.    Civil Code Section 1542 Waiver

            The Parties are aware of and have been advised by counsel of
California Civil Code Section 1542, which provides as follows:

            "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HER SETTLEMENT WITH THE
DEBTOR."

            With full awareness and understanding of this provision, as to the
claims released by this Agreement, the Parties hereby waive all rights, that
this provision or any comparable provision under any state or federal law may
give to them. They intend the mutual general releases set forth in this
Agreement to apply to claims which they do not presently know to exist at this
time. They understand that the facts with respect to which this Agreement is
given may hereafter prove to be different from the facts now known or believed
by them (other than as to representations and warranties contained herein), and
they hereby accept and assume the risk thereof and agree that this Agreement
shall be and shall remain, in all respects, effective and not subject to
termination or rescission by reason of any such difference in facts.

            5.    Representation and Warranty of No Fraud

            By signing this Agreement, in exchange for the Company's release of
unknown claims by waiving Civil Code section 1542 in Paragraph 4 above, Peacock
represents and warrants that during his employment with the Company, he did not
engage in fraud or other intentionally unlawful conduct relating in any way to,
or arising from or in connection with, his employment with the Company. The
Company represents and warrants that it is not aware of any fraud or other
intentionally unlawful conduct by Peacock with respect to performance of his
duties for the Company.

            6.    Supplemental Mutual General Releases With Civil Code Section
                  1542 Waivers

            As a material portion of the consideration for the Parties' releases
herein, the Parties each agree that they will each execute supplemental mutual
general releases and 1542 waivers in favor of each other, in the form of Exhibit
A hereto, within one (1) business day after Peacock's Severance Date and, again,
at the conclusion of the consulting period in Paragraph 9 below.

            7.    Resignation/Limited Duties/Indemnity

            Provided the Company has signed this Agreement and has delivered all
settlement compensation provided for in Paragraph 1, above, in accordance with
this Agreement, Peacock shall resign his employment with the Company effective
June 15, 2004, or a sooner date mutually agreeable to the parties (the
"Severance Date").

                                       4
<PAGE>
            Even after Peacock's employment has ended, the Company agrees that
it will continue to defend and indemnify Peacock as set forth under the
Company's Certificate or Articles of Incorporation and Bylaws in effect as of
August 16, 2003, against any and all claims, cause of action, inquiries, audits,
administrative or other proceedings, whether private, governmental or otherwise,
relating to or arising from his employment with the Company, or his role as a
corporate officer. The Company shall continue to insure Peacock as an additional
insured under its current policy of directors and officers liability insurance,
or under any replacements policies in effect, for events occurring while the
Company employed Peacock.

            Until the Severance Date, Peacock shall continue to be the Company's
CFO. However, Peacock shall not be required to execute any contracts on the
Company's behalf.

            8.    Mutual Non-Disparagement/References

            Peacock agrees that he will not, either directly or indirectly,
disparage or otherwise make negative remarks regarding the Company or its
then-current officers or directors, or its products or its potential products.
The Company agrees that it will not, either directly or indirectly, disparage or
otherwise make negative remarks regarding or relating to Peacock. In the event
that the Company's Human Resources Department receives inquiries about Peacock's
employment, it will not make disparaging remarks but will confirm only the
length of his employment, positions held and his annual salary as of the date of
his departure from the Company. Additionally, the Company's Board of Directors
and other officers will be instructed not to make disparaging remarks, directly
or indirectly, about Peacock, and their failure to comply shall be deemed a
breach of this Agreement by the Company. Employees shall be advised to refer all
inquires about Peacock to the Human Resources Department. Peacock's failure to
comply with the provisions of this Section shall be deemed a breach of this
Agreement by Peacock.

            The Company will provide Peacock with letters of reference in a form
acceptable to Peacock, which form is attached hereto as Exhibit B.

            Nothing in this Agreement shall prohibit the Parties from testifying
truthfully under oath, from responding truthfully to discovery responses and
subpoenas in any legal proceeding, from prosecuting legal action as a plaintiff
or defendant, from responding truthfully to inquiries from any government or
listing entity or agency, or from responding truthfully to inquiries from the
Company or its directors, officers or authorized agents.

            9.    Limited Consulting Relationship

            Subject to his other personal and professional commitments, Peacock
agrees to make himself reasonably available for ninety (90) days following the
Severance Date, up to a maximum of 20 hours per week, at an hourly rate of $100,
paid weekly, to assist the Company in transitioning Peacock's responsibilities
to a new CFO. The Company also will reimburse Peacock for any travel and other
expenses he incurs in connection with this consulting relationship. Amounts
earned by Peacock in this consulting relationship shall not be deducted from any
other amounts to which Peacock is entitled under this Agreement.

                                       5
<PAGE>
            10.   Confidentiality of Trade Secrets

            Except as required by law, for a period of five (5) years from the
execution of this Agreement, Peacock shall hold and keep secret and confidential
all "trade secrets" (within the meaning of applicable law) and other
confidential or proprietary information of the Company (collectively, such trade
secrets and other confidential or proprietary information of the Company shall
be referred to herein as "Confidential Information") provided, however, that
with respect to trade secrets, Peacock shall hold and keep secret and
confidential such trade secrets for as long as they remain trade secrets under
applicable law. Confidential Information does not include (a) information which
is now or hereafter becomes publicly known or available through no act or
failure on the part of Peacock, (b) information which is hereafter furnished to
Peacock by a third party, the disclosure of which does not constitute a
violation of an obligation by such third party to the Company and (c)
information which is independently developed or known by Peacock, without use or
reference to the Confidential Information.

            11.   Non-Solicitation

            For a period of one (1) year from the date of execution of this
Agreement, Peacock agrees not to induce any current employee of the Company at
the date of execution of this Agreement to terminate his or her employment with
the Company or solicit to hire any such person. Peacock shall not be prohibited
from soliciting to hire a former employee of the Company who has terminated his
or her employment with the Company independent of inducement by Peacock to do
so.

            12.   Arbitration

            The parties agree that if any controversy or claim shall arise out
of this Agreement or the breach hereof (other than claims (a) for equitable
relief, including specific performance, injunctive relief or temporary
restraining orders or (b) enforcing this Paragraph 10 or an arbitration award
granted in accordance herewith), and either party shall request that the matter
be settled by arbitration, the matter shall be settled exclusively by final and
binding arbitration before JAMS (or its successor pursuant to the United States
Arbitration Act, 9 U.S.C. Section 1 et seq.) in accordance with the provisions
of JAMS' Streamlined Arbitration Rules and Procedures in effect at such time, by
a single arbitrator, if the parties shall agree upon one, or by one
arbitrator-appointee designated by JAMS. All arbitration proceedings shall be
held in the City of Los Angeles, and each party agrees to comply in all respects
with any award made in such proceeding and to the entry of a judgment in any
jurisdiction upon any award rendered in such proceeding. All costs and expenses
of arbitration shall be borne by the Company. The losing party in such
arbitration, or as otherwise directed by the arbitrator or arbitrators, shall
pay the prevailing party's reasonable attorneys' fees incurred in connection
therewith.

            13.   Benitec

                  a.    Peacock agrees that for a period of two years from the
date he executes this Agreement, he will not accept employment or consult with
Benitec Ltd. ("Benitec"), or any entity at least 50% of which Benitec owns,
including owned through a Benitec subsidiary. If Benitec acquires a 50% or
greater interest in a company for which

                                       6
<PAGE>
Peacock is already employed, he may continue his employment with such company,
provided Peacock is not aware that such company was established with a plan to
be owned 50% or more by Benitec.

                  b.    Peacock acknowledges and agrees that his breach of this
provision regarding Benitec may cause the Company great or irreparable injury,
that it may be extremely difficult to ascertain the amount of compensation which
would afford the Company adequate relief from such a breach, that pecuniary
compensation alone would not afford adequate relief, and that in the event
Peacock commits such a breach of this provision, the Company will be entitled to
seek the remedy of injunctive relief, in addition to any and all other legal or
equitable remedies, to restrain and enjoin him from being employed by or
consulting for Benitec or any company of which Benitec owns at least 50%.

            14.   Company 10-K and 10-Q

            Provided that the Company's independent auditor, BDO Seidman, LLP
("BDO"), has completed its audit of the Company's 2003 financial statements and
issued its audit report related to such financial statements, Peacock agrees to
certify, as the Company's Chief Financial Officer, the Company's 2003 Annual
Report on Form 10-K (the "10-K"). Furthermore, provided that BDO has completed
its quarterly review of the Company's first quarter 2004 financial statements
and issued its review report, Peacock agrees to certify, as the Company's Chief
Financial Officer, the Company's Quarterly Report on Form 10-Q for the first
quarter of 2004 (the "10-Q").

            15.   Additional Representations and Obligations

                  a.    The Parties represent and warrant that they have not
assigned or in any way conveyed, transferred or encumbered all or any portion of
the claims released or rights covered by this Agreement.

                  b.    Peacock represents and warrants that he or others have
disclosed to the Company's Governance or Audit Committee all material areas of
conduct, of which Peacock is aware, engaged in by the Company or its officers,
directors or employees, that Peacock believes are relevant to the Company's
Governance and Audit Committee investigations of the propriety of Company
conduct. This representation and warranty does not include Peacock's contentions
regarding his constructive discharge, which the Company denies, and which are
among the claims released herein.

                  c.    The Parties represent and warrant that they have not
filed or requested to be filed or initiated any administrative charges or claims
or legal actions against any of the Released Company Parties or Released Peacock
Parties, including without limitation any state or federal court actions, any
workers' compensation or disability claims or any equal employment opportunity
complaint.

                  d.    The Parties agree and promise that they will not file
any charge, claim, suit, or action to pursue any claims released herein. If any
court of law or federal, state, or local administrative agency assumes
jurisdiction of any charge, claim, suit, or action on behalf of

                                       7
<PAGE>
any of the Parties based on the matters released herein, the Parties agree to
direct that court, board or agency to withdraw from, or to dismiss, the charge,
claim, suit, or action with prejudice.

                  e.    The Parties agree that if any of them commences, joins
in, or in any manner attempts to assert a claim released by this Agreement,
he/it shall pay to the other Party or Released Party against whom such claim is
released all costs and expenses, including all attorneys' fees, which that Party
or Released Party incurs in defending against such a claim.

                  f.    The Company represents and warrants that the Board of
Directors has approved this Agreement, and that the individual executing this
Agreement on behalf of the Company is fully authorized and empowered to do so
and to bind the Company.

            16.   Miscellaneous Provisions

                  a.    This Agreement is entered into in settlement and
compromise of disputed claims between the Parties and does not constitute and
shall not be construed as an admission by any of the Parties of any liability or
of any fact or matter whatsoever.

                  b.    If any portion, provision or part of this Agreement is
held, determined or adjudicated to be invalid, unenforceable or void for any
reason, each such portion, provision or part shall be severed from the remaining
portions, provisions or parts of this Agreement and shall not affect the
validity or enforceability of such remaining portions, provisions or parts.

                  c.    This Agreement shall be binding upon and inure to the
benefit of the Parties and their respective heirs, legal representatives,
successors and assigns.

                  d.    This Agreement shall be construed under and enforced in
accordance with the substantive laws of the State of California.

                  e.    This Agreement sets forth the entire agreement among the
Parties and supersedes all prior oral or written agreements, negotiations,
discussions, or understandings concerning the subject matter hereof, including
but not limited to the Employment Agreement, except that the terms of the
Company's stock option plan and Peacock's stock option agreement, as amended in
accordance with the terms of this Agreement, shall govern disposition of the
stock options awarded to Peacock, except as expressly modified by this
Agreement. The terms of the escrow regarding payment to be made in Paragraph
1(c) shall govern the escrow as long as it is consistent with Paragraph 1(c).
The terms of this Agreement may not be altered, amended, waived or modified,
except by a further written agreement signed by all of the Parties.

                  f.    This Agreement may be executed in counterparts (and
exchanged via telecopier), each of which shall constitute an original, but all
of which shall constitute one and the same agreement, provided that each signing
party shall have received a copy of the signature page signed by the other
party.

                  g.    The Parties to this Agreement each cooperated in its
drafting and preparation. Thus, the language of all parts of this Agreement
shall in all cases be construed as a

                                       8
<PAGE>
whole, according to its fair meaning and not strictly for or against any party
as the drafter thereof.

                  h.    Each party agrees to make, execute and deliver such
other instruments or documents, and to do or cause to be done such further or
additional acts, as reasonably may be necessary in order to effectuate the
purposes or to implement the terms of this Agreement.

                  i.    No waiver of any breach of any term or provision of this
Agreement shall be construed to be, nor shall be, a waiver of any other breach
of this Agreement. No waiver shall be binding unless in writing and signed by
the party waiving the breach.

                  j.    Section headings in this Agreement are included for
convenience of reference only.

                  k.    Any notices, demands, request or other communications
that any party desires or is required to deliver to any other party pursuant to
this Agreement shall be in writing and shall be delivered in a sealed envelope
marked "Confidential - To Be Opened by Addressee Only" by hand delivery or
overnight delivery (through a nationally recognized courier, such as UPS or
Federal Express) to the addresses set forth below. Unless notice of a different
address has been given in accordance with this paragraph, all such notices shall
be addressed as follows:

            To the Company:         CytRx Corporation
                                    Steve Kriegsman, CEO
                                    11726 San Vicente Blvd., Suite 650
                                    Los Angeles, CA 90049

            To Peacock:             Kirk Peacock
                                    To the address set forth in the
                                    Company's payroll records

                  l.    If any action (including but not limited to any
arbitration) is brought to enforce or interpret any provision of this Agreement,
or the rights or obligations of any party hereunder, the prevailing party shall
be entitled to recover, as an element of such party's costs of suit, and not as
damages, all reasonable outside attorneys' fees and costs incurred or sustained
by such prevailing party in connection with such action, including, without
limitation, legal fees and costs. The "prevailing party" shall be defined as the
party who is entitled to recover his or its costs of suit.

                  m.    The Parties hereto, and each of them, represent and
declare that in executing this Agreement, they rely solely upon their own
judgments, beliefs and knowledge, and on the advice and recommendations of their
own independently selected counsel, concerning the nature, extent and duration
of their rights and claims and that they have not been influenced to any extent
whatsoever in executing the same by any representations or statements covering
any matters made by any of the Parties hereto or by any person representing them
or any of them. The Parties acknowledge that no party hereto nor any of their
representatives has made

                                       9
<PAGE>
any promise, representation or warranty whatsoever, written or oral, as any
inducement to enter into this Agreement, except as expressly set forth in this
Agreement.

                  n.    The Parties, and each of them, further represent and
warrant that they have carefully read this Agreement and know and understand the
contents thereof, and that they signed this Agreement freely and voluntarily.

                  o.    Each party to this Agreement has made such investigation
of the facts pertaining to this Agreement and of all matters pertaining thereto
as he, she or it deems necessary.

                  p.    In entering into this Agreement, each party assumes the
risk of any misrepresentation, concealment or mistake. If any party should
subsequently discover that any fact relied upon by him, her or it, or that his,
her or its understanding of the facts or of the law was incorrect, such party
shall not be entitled to any relief in such connection or otherwise, including,
without limiting the generality of the foregoing, any alleged right or claim to
set aside or rescind this Agreement. This Agreement is intended to be and is
final and binding between the Parties hereto with respect to released claims,
regardless of any claims of misrepresentation, promise made without the
intention of performing, concealment of fact, mistake of fact or law, or of any
other circumstance whatsoever.

                  q.    Except as provided in Paragraph 1(f), the Parties are
each solely responsible for their own attorneys' fees and costs incurred before,
from and after the date of this Agreement, and at all times thereafter, except
as may be awarded in connection with any proceedings arising regarding
enforcement, interpretation, implementation or modifiability of the Agreement.

                  r.    The representations, warranties and covenants contained
in this Agreement are deemed to and shall survive the execution and delivery of
this Agreement by all of the Parties.

                  s.    THE PARTIES REPRESENT AND WARRANT THAT THEY HAVE
THOROUGHLY READ AND CONSIDERED ALL ASPECTS OF THIS AGREEMENT, THAT THEY
UNDERSTAND ALL PROVISIONS OF THIS AGREEMENT, THAT THEY HAVE HAD THE OPPORTUNITY
TO CONSULT WITH COUNSEL THROUGHOUT THIS PROCESS AND THAT THEY ARE VOLUNTARILY
ENTERING INTO THE AGREEMENT OF THEIR OWN FREE WILL, WITHOUT DURESS OR COERCION
OF ANY KIND.

Dated: May 12, 2004                  C. KIRK PEACOCK, AN INDIVIDUAL

                                     /s/ C. Kirk Peacock
                                     -------------------------------------------

Dated: May  12, 2004                 CYTRX CORPORATION

                                     By:   Steven A. Kriegsman
                                         ---------------------------------------
                                           Steven A. Kriegsman
                                           President and Chief Executive Officer

                                       10
<PAGE>
                                   EXHIBIT A

     Supplemental Mutual General Releases and Civil Code Section 1542 Waivers

                  Supplemental General Release by Mr. Peacock

            Except for the obligations set forth in the Mutual General Release
and Severance Agreement executed by Peacock and the Company (the "Agreement")
and these supplemental general releases and Civil Code Section 1542 waivers (the
"Release"), and those claims expressly reserved thereby, Peacock on behalf of
himself, his attorneys and agents, hereby releases, acquits and forever
discharges the Company and all of its current or former shareholders, officers,
directors, agents, attorneys, employees, representatives,
predecessors-in-interest, successors and assigns, and all individuals or
entities acting by, through, under or in concert with any of them (collectively,
the "Released Company Parties"), from any and all charges, controversies,
claims, wages, rights, agreements, actions, costs or expenses, causes of action,
obligations, damages, losses, promises and liabilities of whatever kind or
nature (such as claims for emotional distress, wages and attorneys' fees), in
law or equity or otherwise, whether known or unknown, suspected or unsuspected,
from the beginning of time to the date he signs this Release, provided, however,
that nothing in this Release shall be deemed a release of the following claims:
(a) claims for defense and indemnification to which Peacock may be entitled
pursuant to common or statutory law, including but not limited to Labor Code
Section 2802 or Corporations Code Section 317, by virtue of his role as an
employee or officer of the Company; (b) claims for outstanding, unpaid medical
expenses submitted to the Company's medical insurance plan; (c) claims for
amounts to be paid and stock options awarded pursuant to this Agreement; and (d)
claims to enforce the Agreement or this Release.

            Peacock expressly agrees that, other than those claims expressly
reserved in the Agreement and this Release, this Release extends to all claims
of every nature and kind, known or unknown, suspected or unsuspected, vested or
contingent, past, present or future, arising from or attributable to any alleged
act or omission of the Released Parties or their respective agents or
representatives, occurring prior to the execution of this Release, including,
without limitation, claims arising from the employment by, or the termination of
Peacock's employment with, any of the Released Parties.

                  Supplemental General Release by the Company

            Except for the obligations set forth in the Agreement and this
Release, the Company, on behalf of itself, his attorneys, its officers,
directors and agents, acquits and forever discharges Peacock and his
representatives, agents and assigns (collectively, the "Released Peacock
Parties"), from any and all charges, controversies, claims, wages, rights,
agreements, actions, costs or expenses, causes of action, obligations, damages,
losses, promises and liabilities of whatever kind or nature (such as claims for
attorneys' fees), in law or equity or otherwise, whether known or unknown,
suspected or unsuspected, from the beginning of time to the date it signs this
Release, provided, however, that nothing in this Release shall be deemed a
release of the following claims: (a) claims for defense and indemnification to
which the Company may be entitled pursuant to common or statutory law by reason
of its role as Peacock's employer; and (b) claims to enforce the Agreement or
this Release.

                                       11
<PAGE>
            The Company, its attorneys, officers, directors, and agents
expressly agree that the Agreement and this Release extend to all claims of
every nature and kind, known or unknown, suspected or unsuspected, vested or
contingent, past, present or future, arising from or attributable to any alleged
act or omission of Peacock occurring prior to the execution of this Release,
including, without limitation, claims arising from Peacock's employment.

                  Supplemental Civil Code Section 1542 Waiver

            The Parties are aware of and have been advised by counsel of
California Civil Code Section 1542, which provides as follows:

            "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HER SETTLEMENT WITH THE
DEBTOR."

            With full awareness and understanding of this provision, as to the
claims released by this Release, the Parties hereby waive all rights, that this
provision or any comparable provision under any state or federal law may give to
them. They intend the mutual general releases set forth in this Release to apply
to claims which they do not presently know to exist at this time. They
understand that the facts with respect to which this Release is given may
hereafter prove to be different from the facts now known or believed by them
(other than as to representations and warranties contained herein), and they
hereby accept and assume the risk thereof and agree that this Release shall be
and shall remain, in all respects, effective and not subject to termination or
rescission by reason of any such difference in facts.

                    Representation and Warranty of No Fraud

            By signing this Release, in exchange for the Company's release of
unknown claims by waiving Civil Code section 1542 above, Peacock represents and
warrants that up to the time of this Release, he did not engage in fraud or
other intentionally unlawful conduct relating in any way to, or arising from or
in connection with, his employment with the Company. The Company represents and
warrants that it is not aware of any fraud or other intentionally unlawful
conduct by Peacock with respect to performance of his duties for the Company.

Dated:          , 2004             C. KIRK PEACOCK, AN INDIVIDUAL
        --------

                                   ---------------------------------------------

Dated:  May 12, 2004               CYTRX CORPORATION

                                   By: /s/ Steven A. Kriegsman
                                       -----------------------------------------
                                           Steven A. Kriegsman
                                           President and Chief Executive Officer

                                       12
<PAGE>
                                   EXHIBIT B

                              Letter of Reference

                      [to be typed on Company letterhead]

                                      Date

Name
Company
Address
City, State Zip

Re: C. Kirk Peacock

Dear Name:

      I am writing to provide a reference for C. Kirk Peacock.

      Kirk Peacock was employed by CytRx Corporation (the "Company") and held
the title Chief Financial Officer during his employment. During the term of Mr.
Peacock's employment, he was responsible for finance, accounting and treasury
functions. Mr. Peacock played a significant and valuable role as a member of the
Company's senior management team. The Company valued not only his financial
skills, which are extremely high, but also his strategic insights and business
acumen.

      We wish Mr. Peacock the best in his future endeavors.

                                   Sincerely,

                                   Authorized Officer

                                       13

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