Document:

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                                 EXHIBIT 10.35

                      TRUSTAR/sm/ DIRECTED TRUST AGREEMENT

This Agreement is made by and between the undersigned Employer and Delaware
Charter Guarantee & Trust Company, a Delaware corporation conducting business
under the trade name of Trustarsm Retirement Services. The Employer has adopted
the Plan (as defined in Section .01 hereof) for the benefit of its employees.
Any change to the name of the Plan shall not affect this Agreement.

The Employer and the Trustee mutually agree as follows:

SECTION .01 - DEFINITIONS.

For the purposes of this Agreement, capitalized terms in this Agreement shall
have the meaning set out in this Section unless otherwise clearly required by
context.

"81-100 trust" shall mean the group trust that meets the requirements of Revenue
Ruling 81-100.

"Account" shall mean, with regard to each Member, the portion of the Trust Fund
that is attributable to that Member.

"Annuity Contract" shall mean an individual or group annuity contract issued by
an insurer to the Trustee for the purpose of funding annuity benefits under the
Plan.

"Beneficiary" shall mean the person or persons named by a Member to receive any
benefits under the Plan when the Member dies.

"Contributions" shall mean (i) the amounts described in the Plan Documents
allowable as contributions to the Plan (ii) that are forwarded to the Trustee to
be held and invested in the Trust as set forth herein.

"Employer" shall mean the employer identified in Exhibit A attached to this
Trust.

"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended, or the corresponding provisions of any successor law.

"IRC" shall mean the Internal Revenue Code of 1986, as amended, or the
corresponding provisions of any successor law.

"Insurer" shall mean an insurance company that issues a policy or contract with
regard to the Plan and which policy or contract is held in the Trust in the
event that any such policy or contract is issued.

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"Investment Manager" shall mean an investment manager, as defined in Section
3(38) of ERISA, that has been retained to provide investment advice or
management with regard to the Plan. The employer shall give the Trustee notice
of the identity of each Investment Manager and of any new or terminating
Investment Managers.

"Member" shall mean a participant in the Plan with respect to whom there is an
Account, as defined in this Agreement. For the purposes of the operation of this
Trust only, the term Member shall also include a person who has an interest in
the Trust as the result of an assignment under a Qualified Domestic Relations
Order (as defined ERISA Section206(d) and IRC Section414(p)).

"Named Fiduciary" shall mean the person or other entity designated as such in
the Plan Documents. The Employer shall give the Trustee notice of the identity
of each Named Fiduciary and of any new or terminating Named Fiduciaries. The
Trustee shall not be designated as a Named Fiduciary and any attempt to do so
shall be void and of no effect.

"Plan" shall mean the employee pension benefit plan (as defined in ERISA
Section3(2)(A)) identified in Exhibit A.

"Plan Administrator" shall mean the person or other entity designated as such in
the Plan Documents. The Employer shall give the Trustee notice of the identity
of the Plan Administrator and of any replacement of the Plan Administrator. The
Trustee shall not be designated as Plan Administrator and any attempt to do so
shall be void and of no effect.

"Plan Documents" shall mean the documents under which the Plan is established
and maintained.

"Plan Year" shall mean the plan year defined in the Plan Documents. The Employer
shall give the Trustee Notice of such definition and any changes to it.

"Successor Trustee" shall mean a trustee appointed by the Employer under
Section.03 of this Agreement to succeed the Trustee.

"Trust" shall mean the directed trust established as set forth in this document.

"Trust Fund" shall mean the Trust Fund described in Section.02.

"Trustee" shall mean Delaware Charter Guarantee & Trust Company, a Delaware
corporation conducting business under the trade name of Trustar/sm/ Retirement
Services.

SECTION .02 - THE TRUST AND TRUST FUND.

By signing this Agreement, the Employer establishes the Trust to hold and
distribute the Trust Fund in accordance with the provisions of the Plan
Documents. Except to the extent that ERISA applies, the laws of the State of
Delaware shall govern, control, and determine all questions arising with respect
to

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a Trustee acting pursuant to the provisions of this Agreement, including the
validity of its provisions. This Agreement shall be interpreted in a manner
consistent with the intent to satisfy the relevant provisions of IRC Section
401(a) and such other provisions of the IRC that apply to the Plan.

The Trust Fund consists of the assets held at any time, and from time to time,
by the Trustee under the Trust (including assets held by an 81-100 trust which
may be maintained or administered by an Investment Manager, or assets held by a
custodian, transfer agent, broker/dealer, or other entity subject to a proper
arrangement with the Trustee) and shall consist of contributions received by the
Trustee and all manner of investments, and the proceeds thereof, attributable to
those contributions. The Trust Fund shall include only those assets that the
Trustee accepts and which are actually received by the Trustee. The Trust Fund
shall be valued at current fair market value as of the last day of the Plan Year
and, at the discretion of the Trustee, may be valued more frequently. The
valuation shall take into consideration investment earnings credited, expenses
charged, payments made, and changes in the values of the assets held in the
Trust Fund. The Account of a Member shall be credited with its share of the
gains and losses of the Trust Fund. That part of a Member's Account invested in
a funding arrangement or other investment vehicle which establishes an account
or accounts for such Member thereunder shall be credited with the gains or
losses from such account or accounts. That part of a Member's Account, which is
invested in other funding arrangements or other investment vehicles shall be
credited with a proportionate share of the gains or losses of such investments.
The share shall be determined by multiplying the gain or loss of the investment
by the ratio of (i) the part of the Member's Account invested in such funding
arrangement or other investment vehicle to (ii) the total of the Trust Fund
invested in such funding arrangement or other investment vehicle.

The corpus or income of the Trust Fund shall not be used for, or diverted to,
purposes other than for the exclusive benefit of the Members, retired Members,
or their Beneficiaries.

SECTION .03 - THE TRUSTEE.

The Trustee accepts this appointment by executing this Agreement. The Trustee
represents and warrants that it is duly qualified to act in a fiduciary
capacity, as Trustee, in accordance with the terms and conditions of this Trust.

The Employer may remove the Trustee upon thirty (30) days prior notice. The
Trustee may resign at any time upon thirty (30) days notice to the Employer, or,
with the consent of the Employer, the Trustee may resign with less than thirty
(30) days prior notice. Upon such removal or resignation of the Trustee, the
Employer shall appoint a Successor Trustee who shall have the same powers and
duties as those conferred upon the Trustee hereunder. The Successor Trustee must
accept such appointment in writing for the appointment to become valid, at which
point only will the Trustee's appointment as such be considered to have
terminated and the Successor Trustee shall become the Trustee under this
Agreement.

If the Successor Trustee fails to accept the appointment, or if the Employer
fails to appoint a Successor Trustee within thirty (30) days of the resignation
or removal of the Trustee, then the Employer shall

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appoint the President, or such other officer of the Employer who is eligible,
Successor Trustee and such person shall be deemed to have filed his or her
acceptance of appointment as the Successor Trustee.

When appointment has been accepted, or deemed accepted, by a Successor Trustee,
the removed or resigning Trustee must assign, transfer, pay over, and deliver to
the Successor Trustee all of the Trust Fund, less any unpaid fees or expenses,
and such relevant records as the Trustee may possess. No Successor Trustee shall
be obliged to examine the accounts, records, and acts of any previous Trustee or
Trustees, and such Successor Trustee in no way or manner shall be responsible
for any action or omission to act on the part of any previous Trustee.

The Employer shall notify the Insurer of any change of Trustee.

SECTION .04 - DUTIES OF THE TRUSTEE.

The Trustee shall accept Contributions forwarded to the Trustee to be held in
the Trust and shall hold the Trust Fund and administer it according to the
provisions of this Agreement. The Trustee has no duty to demand or require that
Contributions be made to the Trust, nor shall the Trustee be liable to determine
the amount of any Contributions to the Trust or the adequacy of such
Contributions to meet or discharge any liabilities of the Employer or the Plan.

The Plan Administrator administers the Plan. The Trustee is not responsible for
any aspect of its administration. A Named Fiduciary may appoint an Investment
Manager to manage, including the power to acquire and dispose of, any assets of
the Plan. The Trustee is not responsible for any aspect of an Investments
Manager's advice, control or management. The Trustee is not required to look
into any action taken by the Employer, the Plan Administrator, a Named
Fiduciary, a Member, or an Investment Manager, and will be fully protected in
taking, permitting, or omitting any action on the basis of their instructions or
direction. Any instructions, notice, or direction by the Employer, the Plan
Administrator, a Named Fiduciary, a Member, or an Investment Manager, given in
accordance with the provisions of the Plan Documents shall be given or made as
described in this Agreement; any attempted instruction, direction, or notice
made in any other format shall be void and of no effect and the Trustee shall
not act on such. The Employer will indemnify the Trustee by satisfying any
liabilities the Trustee may incur in acting according to the Trust provisions
upon written instruction, direction, or notice from the Employer, the Plan
Administrator, a Named Fiduciary, Member, or an Investment Manager.

SECTION .05 - DIRECTED POWERS OF THE TRUSTEE.

The Trustee shall have the following powers with respect to the Trust Fund as
appropriate under this Agreement and subject to written direction, notice or
instruction by the Plan Administrator, Named Fiduciary, Investment Manager, or
Member, as appropriate under the Plan Documents. In no event shall the Trustee
be required to review such directions or instructions, and the Employer shall
indemnify and protect the Trustee from any claims resulting from following such
directions. The Trustee shall have the power:

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a)   to receive and hold Contributions forwarded to it under this Agreement and
     to invest the Trust Fund in one or more of the following as directed by the
     Plan Administrator, a Named Fiduciary, a Member, or an Investment Manager:

     1)   81-100 trust; provided, however, that as long as the Trustee holds any
          units in an 81-100 trust hereunder, the instruments establishing and
          or amending any such 81-100 trust shall be adopted and made part of
          this Trust as though fully set forth herein;

     2)   Custodial arrangements;

     3)   Loans to Members, provided such loans are duly authorized by the Plan
          Documents and that such authorization meets the requirements of both
          ERISA and the IRC;

     4)   Cash or other short-term investments including money market funds;

     5)   Common or preferred stock of the Employer or an affiliate of the
          Employer, provided the securities are qualifying employer securities,
          as defined in ERISA Section407, and are regularly traded on a
          national securities exchange ("Qualifying Employer Securities");

     6)   Annuity Contracts with the Insurer which provide for either guaranteed
          benefits or the investment of Plan assets in one or more separate
          accounts maintained by the Insurer, or both;

     7)   Exchange traded debt and equity securities, mutual fund shares; and

     8)   Such assets, securities, or investment options as may be necessary to
          effectuate the purpose of this Trust.

b)   to sell, exchange, convey, transfer, or otherwise dispose of any property
     held by it, by private contract or at public auction;

c)   to vote on all matters as directed by the Employer or the Member pertaining
     to all securities and mutual fund shares held in the Trust Fund (other than
     Qualifying Employer Securities). The Trustee shall vote any securities and
     mutual fund shares that may be held by it solely as directed by the
     Employer or the Member in accordance with this Trust Agreement. If the
     Trustee receives timely directions on how to vote securities or mutual fund
     shares with regard to fewer than all of the securities or mutual fund
     shares subject to the vote, the Trustee shall vote such undirected
     securities or mutual fund shares in the same proportion as those for which
     it has received timely direction. The Trustee shall be under no duty to
     investigate any matter relating to a vote and shall have no power or
     authority to vote other than as set forth in this agreement;

     1.   if any securities and mutual fund shares are held in an alternate
          arrangement (other than a self-directed brokerage account), including
          an 81-100 trust, a sub-trust, ancillary trust

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          or in a custodial arrangement, to inform the trustee or custodian of
          such alternate arrangement of the voting directions the Trustee has
          received with regard to securities or mutual fund shares held in such
          alternate arrangement and to identify the securities or mutual fund
          shares with respect to which the Trustee has received partial or no
          direction or instruction. Those securities shall then be voted in
          accordance with the documents governing the 81-100 trust, sub-trust,
          ancillary trust or custodial arrangement. Nothing in this agreement
          shall be held as changing or affecting such other trusts or
          agreements. The Trustee shall have no power or authority to act
          otherwise than as set out in this paragraph with regard to votes on
          the securities and mutual fund shares described in this paragraph;

     2.   to vote and tender Qualifying Employer Securities held hereunder in
          the manner described in the Plan, or if Qualifying Employer Securities
          are held in a sub-trust or ancillary trust to inform the trustee of
          the voting directions the Trustee has received and to identify the
          Qualifying Employer Securities with respect to which the Trustee has
          received no direction or instruction;

     3.   to vote and tender securities and mutual fund shares held in a
          self-directed brokerage account in the manner described in the Plan
          and any applicable brokerage account agreements;

g)   to open such brokerage accounts with a broker/dealer on behalf of the
     Trust, as may be necessary to effect transactions in securities held in the
     Trust Fund.

SECTION .06 - COMPLEMENTARY POWERS OF THE TRUSTEE.

In exercising its powers under Section 05 of this Agreement and discharging its
duties generally under this Agreement, the Trustee shall have the following
powers with respect to the Trust Fund:

a)   to employ, and pay reasonable compensation to, agents, brokers,
     broker/dealers, attorneys, accountants, custodians, sub-trustees, ancillary
     trustees, or other persons, whose advice or services the Trustee may deem
     necessary in carrying out its duties and powers under this Agreement;

b)   to make, execute, acknowledge, and deliver any instruments that may be
     necessary to carry out the powers granted it including, custodial, 81-100
     trust, sub-trust or ancillary trust agreements;

c)   to consult with legal counsel, including the Employer's counsel, with
     respect to the meaning or construction of, or the Trustee's obligations or
     duties under, the Plan Documents, and Trust, or with respect to any action
     or proceeding or any question of law. The Trustee shall be fully protected
     with respect to any action it takes in good faith pursuant to the advice of
     such counsel;

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d)   to enforce any right, obligation, or claim and, in its absolute discretion,
     to protect in any way the interest of the Trust Fund and, if the Trustee
     considers such action for the best interests of the Trust Fund, to abstain
     from the enforcement of any right, obligation, or claim and to abandon any
     property which it has held;

e)   to institute, maintain, or defend any litigation necessary in connection
     with the administration of the Trust, provided the Trustee shall be under
     no duty or obligation to do so unless it shall be indemnified to its
     satisfaction against all expenses and liabilities which it may sustain or
     be paid reasonable compensation for its own extraordinary services in
     connection therewith;

f)   to hold assets in the Trustee's name or in the name of a nominee and to
     cause assets to be held by such custodian, 81-100 trust, sub-trustee or
     ancillary trustee, transfer agent, broker/dealer, or other party as
     appropriate to carrying out the Trustee's duties under this Agreement;

g)   to do all things necessary, in the Trustee's judgement, for the proper
     performance of the Trustee's duties under this Agreement;

h)   to assume, until advised to the contrary, that the Trust is qualified under
     IRC Sections401(a);

i)   to terminate the Plan's participation in an 81-100 trust, sub-trust or
     ancillary trust, or custodial arrangement if such trust or arrangement
     limits participation to qualified plans and the Trustee learns of a
     determination by the Internal Revenue Service or a court of competent
     jurisdiction that the Plan is no longer qualified or that continued
     participation in the 81-100 trust, sub-trust or ancillary trust or
     custodial arrangement would have adverse tax consequences for the Plan; and

j)   to make appropriate custodial arrangements with a benefits paying agent for
     the payment of benefits under the Plan.

SECTION .07 - EXPENSES.

The Trustee shall be reimbursed by the Employer for all expenses incurred by the
Trustee in exercising its powers and carrying out its duties under this
Agreement and for such reasonable compensation for the Trustee as may be agreed
upon in writing from time to time by the Employer and the Trustee. If, and to
the extent, the Employer does not timely pay such expenses and compensation,
they shall be paid from the Trust Fund, either as directed by the Employer, Plan
Administrator, a Named Fiduciary, or Investment Manager, as appropriate in
accordance with the Plan Documents or pro rata with respect to each of the
investments of each Member's Account and, within the Member's Account, pro rata
with regard to the securities, Mutual fund shares or other investments
attributable to that Member's Account including investments in 81-100 trusts,
sub-trusts or ancillary trusts, or custodial arrangements. The Trustee may also
pay other expenses of the Plan, as directed by the Plan Administrator, a Named
Fiduciary, or Investment Manager, as appropriate in accordance with the Plan,
from the Trust fund in the same manner as described above. The Trustee is hereby
authorized to collect expenses and

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compensation as described above.

SECTION .08 - ACCOUNTING.

The Trustee or its designee shall maintain true and accurate records and
accounts reflecting all receipts and disbursements of the Trust Fund and
containing a description of all Trust Fund assets held hereunder. These records
will be open, at the Trustee's regular place of business, to inspection and
audit by the Employer, the Plan Administrator, Investment Manager, and a Named
Fiduciary at all reasonable times.

Writing (handwriting, typing, printing), photostating, photographing,
microfilming, magnetic impulse, mechanical or electrical recording, or other
forms of data compilation shall be acceptable means of keeping records.

The Trustee or its designee shall file all reports, returns, and information
required to be filed by Trustees under ERISA and the IRC and regulations and
rulings issued under ERISA and the IRC.

The Trustee or its designee shall file with the Employer an accounting of its
transactions as soon as practical after the first day of each Plan Year or any
other date specified. Any such report or accounting is open to inspection by a
Member for a period of sixty (60) days following the date it is filed. At the
end of the sixty-day period, the Trustee is released and discharged as to any
matters set forth in the report or account, except with respect to any act or
omission as to which a Member, the Employer, the Plan Administrator, or the
Named Fiduciary has filed a written objection within the sixty-day period.

In preparing its reports, the Trustee shall be permitted to rely upon, and deem
accurate without the need for independent verification, reports furnished to the
Employer, Plan Administrator, or Trustee by the Insurer, any Investment Manager,
and any investment fund or custodian.

SECTION .09 - AMENDMENT.

The Employer and the Trustee jointly reserve the right to amend this Agreement
by written instrument executed by both parties at any time upon terms mutually
acceptable, and effective as agreed by the Employer and the Trustee.

The Trustee may amend this Agreement (including any Exhibits) at any time by
written instrument, provided that such amendment is, in the Trustee's opinion,
required by applicable law or regulations. Copies of the amended Agreement shall
be sent to the Employer by the Trustee or its designee no less than 60 days
prior to the effective date of such change set out in the amended Agreement
(which shall be effective irrespective of when or whether such copy is received
by the Employer).

No amendment described in this Section 09 shall permit any part of the corpus or
income of the Trust Fund to be used for, or diverted to, purposes other than for
the exclusive benefit of Members, retired Members or their Beneficiaries.

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SECTION .10 - TERMINATION.

The Employer reserves the right to terminate this Agreement by a written
instrument delivered to the Trustee. This Agreement shall automatically
terminate upon the dissolution or liquidation of the Employer unless a successor
corporation or business organization agrees in writing to assume the obligations
of the Plan and this Trust.

Any Annuity Contract held in the Trust Fund at the time this Trust is terminated
shall be transferred to the Employer and the remainder of the assets of the
Trust Fund shall be transferred to the person or institution authorized in
writing by the Employer to receive such assets.

If the Employer does not direct the transfer of the remainder of the assets of
the Trust Fund to a person or institution authorized in writing by the Employer
to receive such assets or the Trustee is not informed of the identity of any
such person, the Trustee shall seek appointment of an appropriate recipient. The
Trustee shall be paid all expenses incurred in doing so.

In the event of the termination of the Trust on account of termination of the
Plan, the assets of the Trust Fund shall be applied to provide the benefits
specified in the Plan upon termination of the Plan.

SECTION .11 - INSURER.

With regard to any portion of the assets of the Trust Fund consisting of Annuity
Contracts issued by an Insurer, such Insurer shall in no event be deemed to be a
party to this Trust or to be responsible for its validity. The obligations and
responsibilities of the Insurer shall be measured and determined solely by the
terms of the Annuity Contract and it shall not be required to do any act not
provided in, or any act contrary to, the provisions of such Annuity Contract.

The Insurer shall not be required to look into the terms of this Agreement or
question any action of the Trustee, nor shall it be responsible to see that any
action of the Trustee is authorized. The Insurer shall act only upon the
direction of the Trustee and shall be fully discharged from any and all
liability for any amount paid to the Trustee or paid in accordance with the
direction of the Trustee or for any change made, or action taken, upon such
direction and shall not be obligated to see that any money paid by it to the
Trustee or to any person shall be properly distributed or applied. Any
instrument executed by the Trustee may be treated as conclusive. The Insurer
shall be without liability in taking, permitting, or omitting any action on the
faith of any such instrument and shall incur no liability or responsibility for
doing so.

Notices, proposed contract amendments, rate or fee changes, or other
communications regarding any Annuity Contracts that may be held hereunder will
be sent directly to either the Employer or the Trustee. The Trustee shall not
take any action with respect to any such notice, proposed amendment, change, or
other communication unless the Trustee receives appropriate written direction
from the

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Employer. Any rights of a contractholder under any such Annuity Contract,
including rights to discontinue, amend, or otherwise modify the Annuity Contract
shall be exercised only upon the specific written direction of the Employer.

SECTION .12 - LIMITATION ON RIGHTS AND REMEDIES.

In any action or proceeding involving the Trust Fund, or the administration of
the Trust Fund, only the Trustee and the Employer shall be the necessary
parties. Unless otherwise ordered by the court entertaining jurisdiction
thereover, no other person having or claiming to have an interest in the Trust
Fund shall be entitled to any notice or service of process. Any final judgment
entered in such an action or proceeding shall be conclusive upon all persons
claiming under this Agreement.

SECTION .13 - LIMITATION OF TRUSTEE'S LIABILITY.

a)   Any direction, instruction, or notice by the Trustee or to the Trustee by a
     Member, the Employer, the Plan Administrator, the Investment Manager, a
     Named Fiduciary, the Insurer, or other person pursuant to any of the
     provisions of this Plan and Trust shall be in writing and delivered by
     regular mail, and shall be effective only upon actual receipt. The Employer
     and the Trustee may agree in writing that any such direction, instruction,
     or notice may be given by alternative methods, including facsimile
     transmission, telephone, or electronic transmission to any e-mail address
     or fax or telephone number and shall, with regard to such alternate means
     of giving any such direction, instruction, or notice, provide for the use
     of identifying numbers or procedures that must be followed with regard to
     the giving of any such direction, instruction, or notice. The Employer
     shall inform the Plan Administrator, Named Fiduciary, Members, and any
     Investment Manager of such agreed upon alternative methods. The Trustee
     shall not be under any duty or obligation to act on any notice,
     instruction, or direction received in a form other than those agreed upon
     between the Employer and the Trustee. The Trustee may absolutely rely upon
     any and all such directions, instructions, or notices reasonably believed
     by it to be genuine and shall be fully protected in acting in accordance
     therewith. The Employer agrees to indemnify and hold the Trustee harmless
     against any loss, cost, claim damage, expense, and liability (including
     attorney's fees) and other costs it may incur in acting upon such notice,
     instructions, or directions. Except for the Trustee's own negligence, the
     Trustee shall incur no liability for any act or failure to act pursuant to
     this Agreement, unless a higher standard of care is imposed by ERISA.

b)   The Trustee is not liable for the acts or omissions of any Investment
     Manager, the Employer, the Plan Administrator, or the Insurer, nor is the
     Trustee under any obligation to invest or otherwise manage any asset of the
     Plan which is subject to the management of a properly appointed Investment
     Manager. The Employer, the Plan Administrator, the Trustee, and any
     properly appointed Investment Manager may execute a letter of agreement as
     a part of this Plan delineating the duties, responsibilities, fee
     structure, and liabilities of the Investment Manager with respect to any
     part of the Trust Fund under the control of the Investment Manager.

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c)   The Trustee may assume that the Employer, the Plan Administrator, the
     Investment Manager, and the Insurer are appropriately discharging their
     duties under the Plan Documents and this Agreement unless and until it is
     notified to the contrary in writing by any person known to the Trustee to
     be a Member in the Plan, the Employer, or a governmental agency with
     jurisdiction. In the event the Trustee receives said written notice, then
     the Trustee shall take any actions it deems appropriate, including, if the
     Trustee so desires, applying to a court of competent jurisdiction and/or
     Federal regulatory authorities for guidance with respect to disposition of
     the Trust Fund.

d)   The Trustee shall have no authority or discretion for the management and
     control of the Trust Fund beyond implementation of instructions, notice, or
     directions received by the Trustee in accordance with this Agreement, it
     being contemplated that all Plan assets will be under the control or
     direction of the Insurer or a properly appointed Investment Manager, or
     subject to Member, Employer, Plan Administrator, or Named Fiduciary
     direction. The Trustee shall not be responsible for reviewing reports
     provided by the Insurer or any Investment Manager. The Trustee will be
     under no duty of inquiry or review with regard to any direction,
     instruction, or notice that it may receive in accordance with this
     Agreement.

e)   The duties and responsibilities of the Trustee shall be limited to those
     set forth in this Agreement and nothing contained in this Agreement shall
     be deemed, either expressly or by implication, to impose any additional
     duties, powers, or responsibilities on the Trustee.

SECTION .14 - SECTION 404(c) COMPLIANCE.

The Trustee shall have no duty or responsibility to review any aspect of the
Plan or its administration relating to compliance with ERISA Section404(c).

SECTION .15 - MISCELLANEOUS.

a)   Third Parties Dealing with Trustee. To the extent permitted by law, no
     person shall be obliged to see to the application of any money paid or
     property delivered to the Trustee, nor shall any such person be required to
     take cognizance of the provisions of this Agreement. In general, each
     person dealing with the Trustee may act upon any advice, request, or
     representation in writing by the Trustee, or the Trustee's duly authorized
     agent, and shall not be liable to any person in so doing.

b)   Certificate of Authority from Third Parties. The Trustee may require
     delivery to it of a copy of any certificate, notice, or other instrument or
     information believed by it to be necessary to perform its duties hereunder
     and may rely and act upon the basis of any such certificate, notice,
     instrument, or other information furnished to the Trustee which it believes
     to be reliable and to have been signed, made, or presented by the proper
     party or parties.

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c)   No Liability for Actions of Employer and Plan Administrator. To the extent
     permitted by law, the Trustee shall not be responsible for any act or
     omission of the Employer, the Plan Administrator, the Investment Manager,
     or the Named Fiduciary. The Trustee shall be under no duty to inquire into
     any rule, regulation, instruction, direction, or order purporting to have
     been issued by the Employer, the Plan Administrator, the Investment
     Manager, or Named Fiduciary.

d)   Other. Notwithstanding anything else in this Agreement, the Trustee has the
     right, but not the obligation, to seek guidance from a court of competent
     jurisdiction or Federal regulatory authorities with respect to the handling
     and disposition of the Trust Fund.

e)   Assignment or Alienation. No interest under this Trust may be alienated,
     anticipated, encumbered or assigned, voluntarily or involuntarily and any
     such attempted assignment, alienation, anticipation, or encumbrance shall
     be void and of no effect. Nothing in this Agreement, however, shall prevent
     an assignment or alienation that the Plan Administrator advises the Trustee
     is necessary to fulfil the requirements of a Qualified Domestic Relations
     Order, as defined in ERISA Section206(d) and IRC Section414(p).

f)   No Reversion. Except as may be specifically permitted by the Plan
     Documents, under no circumstances shall any asset held in the Trust Fund or
     any Contributions made to the Trust ever revert to or be used or enjoyed
     by, the Employer or used for any other purpose than the funding or
     provision of benefits to eligible Members or their Beneficiaries or the
     satisfaction of other lawful obligations of the Plan prior to the
     satisfaction of all liabilities under the Plan. The Trustee shall be under
     no obligation to return any asset of the Trust Fund to the Employer, unless
     the Trustee has received written certification from the Employer that all
     Plan liabilities have been satisfied and that the Plan has been terminated
     or written certification that the amount requested by the Employer is the
     result of a bona fide mistake of fact described in IRC Section401(a)(2)
     and is in accord with the provisions of the Plan Documents. The Trustee may
     rely completely on such written certification.

g)   Construction. This Agreement shall be interpreted in a manner consistent
     with the requirements of IRC Section401(a), so that the Trust remains tax
     exempt under IRC Section501. If the terms of this Agreement conflict with
     relevant terms of ERISA, the IRC, or Delaware law, the requirements of
     those laws shall be deemed to be part of this Agreement and shall supersede
     any other provision in this Trust Document that is to the contrary. This
     Agreement shall be construed as though jointly drafted by the Trustee and
     the Employer and according to the fair intent of the language as a whole
     and not for or against anyone. The term "including" shall be construed
     providing examples only and as being without limitation.

h)   Authority of Individuals. Each individual signing this Agreement represents
     and warrants that she or he has, individually or in concert with the other
     persons signing this Agreement on behalf of the same entity, the authority
     to sign this Agreement and thereby bind that entity to the terms and
     conditions of this Agreement.

                                      -12-

<PAGE>

SECTION .16 - EXECUTION.

This Agreement shall be executed in counterparts,  each of which shall be deemed
an original.

SECTION .17 - WAIVER.

It is understood and agreed that no failure or delay to exercise, nor any single
or partial exercise of, any right, power, or privilege given or arising under
this Agreement shall operate as a waiver of future rights to exercise any such
right, power, or privilege.

SECTION .18 - CHANGE IN PLAN TERMS.

Changes to the Plan Documents or the operation of the Plan shall not serve to
increase or decrease the responsibility, duties, or obligations of the Trustee
under this Agreement. The Trustee and the Employer may negotiate and make any
changes to this Agreement that appropriately reflect such changes. Absent such
negotiated changes, the Trustee shall be obligated to no more than continued
performance under this Agreement as if the changes to the Plan Documents had not
occurred.

                                      -13-

<PAGE>

IN WITNESS WHEREOF, the undersigned have executed this Agreement to be effective
as of the date both the Employer and the Trustee have both signed this
Agreement.

FOR THE EMPLOYER
(Name of Employer)

Name:     /s/  William J. Walljasper
     -----------------------------------
Title:  Vice President Human Resources

Date:   April 22, 2003

The undersigned hereby accepts appointment as Trustee hereunder and agrees to be
bound by the terms of this Agreement.

ACCEPTANCE OF THE TRUSTEE

Delaware Charter Guarantee & Trust Company,  a Delaware  corporation  conducting
business under the trade name of Trustarsm Retirement Services

Name: /s/ Lori N. Richards
     -----------------------------------

Title: Director of Finance
      ----------------------------------

Dated: April 29, 2003
      ----------------------------------

                                      -14-

<PAGE>

                                    Exhibit A
                                    ---------

Name of Employer:
                 -----------------------

Name of Plan:
             ---------------------------

                                      -15-Non-Exclusive License Agreement between U of M Med School and Co. covering RNA

 EXHIBIT 10.2 
  
 NON-EXCLUSIVE LICENSE AGREEMENT 
  
 This Agreement, effective as of April 15, 2003 (the “Effective Date”), is between the University of Massachusetts Medical School (“Medical
School”), a public institution of higher education of the Commonwealth of Massachusetts having an address of 55 Lake Avenue North, Worcester, MA 01655 and CytRx Corporation (“Company”), a Delaware corporation having an address of
11726 San Vicente Blvd., Suite 650, Los Angeles, CA 90049. 
  
 R
E C I T A L S 
  
 WHEREAS, Medical School is owner by
assignment of the invention claimed in the United States Patent Application listed in Exhibit A pertaining to the Medical School’s invention disclosure number UMMC 01-36 entitled RNA Sequence-Specific Mediators of RNA Interference; 

 
 WHEREAS, Company desires to obtain a non-exclusive license in the field of
therapeutics limited to the narrowed fields of other Medical School license agreements; specifically, using RNAi to inhibit HCMV Immediate Early (IE) gene expression in Retinitis applications, using RNAi to inhibit mutant SOD1 gene expression in
Amytrophic Lateral Sclerosis (ALS) applications, and using RNAi to inhibit gene targets implicated in Type II Diabetes and Obesity under the rights of Medical School in any patent rights claiming those inventions; and 
  
 WHEREAS, Medical School is willing to grant Company a non-exclusive license
on the terms set forth in this Agreement. 
  
 NOW, THEREFORE,
Medical School and Company hereby agree as follows: 
  
 1. Definitions. 
  
 1.1.
“Affiliate” means any legal entity (such as a corporation, partnership, or limited liability company) that is controlled by Company. For the purposes of this definition, the term “control” means (a) beneficial ownership of
at least fifty percent (50%) of the voting securities of a corporation or other business organization with voting securities or (b) a fifty percent (50%) or greater interest in the net assets or profits of a partnership or other business
organization without voting securities. 
  
 1.2.
“Biological Materials” means the tangible biological materials described on Exhibit A, as well as tangible materials that are routinely produced through use of the original materials, including, for example, any progeny
derived from a cell line, monoclonal antibodies produced by hybridoma cells, DNA or RNA replicated from isolated DNA or RNA, recombinant proteins produced through use of isolated DNA or RNA, and substances routinely purified from a source material
included in the original materials (such as recombinant proteins isolated from a cell 

 
extract or supernatant by non-proprietary affinity purification methods). These Biological Materials shall be listed on Exhibit A, which will be periodically
amended to include any additional Biological Materials that Medical School may furnish to Company. 
  
 1.3. “Combination Product” means a product that contains a Licensed Product component and at least one other essential functional
component. 
  
 1.4. “Confidential Information”
means any confidential or proprietary information furnished by one party (the “Disclosing Party”) to the other party (the “Receiving Party”) in connection with this Agreement, provided that such information is specifically
designated as confidential. Such Confidential Information shall include, without limitation, any diligence reports furnished to Medical School under Section 3.1. and royalty reports furnished to Medical School under Section 5.2. 
  
 1.5. “Field” means therapeutics, prophylactics, and
diagnostics arising from the limited use of RNAi to inhibit HCMV Immediate Early (IE) gene expression in Retinitis applications, using RNAi to inhibit mutant SOD1 gene expression in Amyotrophic Lateral Sclerosis (ALS) applications, and using RNAi to
inhibit gene targets implicated in Type II Diabetes and Obesity. 
  
 1.6. “Licensed Product” means any product that cannot be developed, manufactured, used, or sold without (a) infringing one or more claims under the Patent Rights or (b) using or incorporating some portion of one or more
Biological Materials. 
  
 1.7. “Net Sales” means the
gross amount billed or invoiced on sales by Company and its Affiliates and Sublicensees of Licensed Products, less the following: (a) customary trade, quantity, or cash discounts and commissions to non-affiliated brokers or agents to the extent
actually allowed and taken; (b) amounts repaid or credited by reason of rejection or return; (c) to the extent separately stated on purchase orders, invoices, or other documents of sale, any taxes or other governmental charges levied on the
production, sale, transportation, delivery, or use of a Licensed Product which is paid by or on behalf of Company; (d) outbound transportation costs prepaid or allowed and costs of insurance in transit; and (e) allowance for bad debt that is
customary and reasonable for the industry and in accordance with generally accepted accounting principles. Notwithstanding anything to the contrary in this Section 1.7, Net Sales does not include sales of Licensed Products at or below the fully
burdened cost of manufacturing solely for research or clinical testing or for indigent or similar public support or compassionate use programs. 
  
 In any transfers of Licensed Products between Company and an Affiliate or Sublicensee, Net Sales shall be calculated based on the final sale of the
Licensed Product to an independent third party. In the event that Company or an Affiliate or Sublicensee receives non-monetary consideration for any Licensed Products, Net Sales shall be calculated based on the fair market value of such
consideration. . 
  

 2 

 In the case of Combination Products, Net Sales means the gross amount billed or invoiced on sales of the
Combination Product less the deductions set forth above, multiplied by a proration factor that is determined as follows: 
  
 (i) If all components of the Combination Product were sold separately during the same or immediately preceding Royalty Period, the
proration factor shall be determined by the formula [A / (A+B)], where A is the aggregate gross sales price of all Licensed Product components during such period when sold separately from the other essential functional components, and B is the
aggregate gross sales price of the other essential functional components during such period when sold separately from the Licensed Product Components; or 
  
 (ii) If all components of the Combination Product were not sold separately during the same or immediately preceding Royalty Period, the
proration factor shall be determined by the formula [C / (C+D)], where C is the aggregate fully absorbed cost of the Licensed Product components during the prior Royalty Period and D is the aggregate fully absorbed cost of the other essential
functional components during the prior Royalty Period, with such costs being determined in accordance with generally accepted accounting principles. 
  
 1.8. “Patent Rights” means the U.S. patent applications listed on Exhibit A, and any divisional, continuation, or
continuation-in-part of such patent applications to the extent the claims are directed to subject matter specifically described therein, as well as any patent issued thereon and any reissue or reexamination of such patent, and any foreign
counterparts to such patents and patent applications. Exhibit A shall be periodically amended to include any additional Patent Rights that may arise. “Medical School Patent Rights” means Patent Rights assigned to the Medical School
and the joint owners Massachusetts Institute of Technology, the Whitehead Institute for Biomedical Research, and Max-Planck-Gesellschaft Zur Foerderung Der Wissenschaften E.V. 
  
 1.9. “Royalty Period” means the partial calendar quarter commencing on the date on which the first Licensed
Product is sold or used every complete or partial calendar quarter thereafter during which either (a) this Agreement remains in effect or (b) Company has the right to complete and sell work-in-progress and inventory of Licensed Products pursuant to
Section 6.5. 
  
 1.10. “Sublicensee” means any permitted
sublicensee of the rights granted Company under this Agreement, as further described in Section 2.2. 
  
 1.11. “Sublicense Income” means any payments that Company receives from a Sublicensee in consideration of the sublicense of the rights granted
Company under Section 2.1., including without limitation license fees, royalties, milestone payments, and license maintenance fees, but excluding the following payments: (a) payments made in consideration for the issuance 
  

 3 

 
of equity or debt securities of Company at fair market value, and (b) payments specifically committed to the development of Licensed Products. 
  
 2. Grant of Rights. 
  
 2.1. Subject to the terms of this Agreement, Medical School hereby grants to
Company and its Affiliates a non-exclusive, worldwide, royalty-bearing license (with the right to sublicense) under its commercial rights in the Patent Rights and Biological Materials to develop, make, have made, use, and sell Licensed Products in
the Field. 
  
 2.2. Sublicenses. Company shall have the right to
grant sublicenses of its rights under Section 2.1. with the consent of Medical School, which consent shall not be unreasonably withheld or delayed. All sublicense agreements executed by Company pursuant to this Article 2 shall expressly bind the
Sublicensee to the terms of this. Company shall promptly furnish Medical School with a fully executed copy of any such sublicense agreement. 
  
 3. Company Obligations Relating to Commercialization. 
  
 3.1. Diligence Requirements. Company shall use diligent efforts or shall cause its Affiliates or Sublicensees to use
diligent efforts to develop Licensed Products and to introduce Licensed Products into the commercial market; thereafter, Company or its Affiliates or Sublicensees shall make Licensed Products reasonably available to the public. Specifically, Company
or its Affiliates or Sublicensees shall fulfill the following obligations: 
  
 (a) Within ninety (90) days after the Effective Date, Company shall furnish Medical School with a written research and development plan under which Company intends to develop Licensed Products. 
  
 (b) Within sixty (60) days after each anniversary of the
Effective Date, Company shall furnish Medical School with a written report on the progress of its efforts during the prior year to develop and commercialize Licensed Products, including without limitation research and development efforts, efforts to
obtain regulatory approval, marketing efforts, and sales figures. The report shall also contain a discussion of intended efforts and sales projections for the current year. 
  
 (c) Company shall endeavor to obtain all necessary governmental approvals for the manufacture, use and sale
of Combination Product and Licensed Product. Specifically, Company shall: 
  
 (i) Within eight (8) years after the Effective Date, file an Investigational New Drug Application (“IND”) or its equivalent covering at least one Combination Product or Licensed Product with the U.S. Food
and Drug Administration (“FDA”); 
  

 4 

 (ii) Within thirteen (13) years after the Effective Date, file a New Drug Application
(“NDA”) with the FDA covering at least one Combination Product or Licensed Product; 
  
 (iii) Within eighteen (18) months after receiving FDA approval of the NDA for a Combination Product or Licensed Product, market at least
one Combination Product or Licensed Product in the U.S.; and 
  
 (iv) reasonably fill the market demand for any Combination Product or Licensed Product following commencement of marketing of such product at any time during the exclusive period of this Agreement. 
  
 (d) Within eighteen (18) months after the Effective Date,
Company shall successfully undertake a public or private offering of raising ten million dollars ($10,000,000). 
  
 (e) In addition to the obligations set forth above, Company or its Affiliates or Sublicensees shall spend (either directly or through
sponsored research by Company or its Affiliates or Sublicensees at the Medical School) an aggregate of not less than {***} per calendar year for the development of Combination Product and/or Licensed Product commencing with the year 2004.

  
 Company shall have the responsibility to finance its obligations in this
Section 3.1, and the Medical School shall provide reasonable cooperation to Company in this regard. In the event that Medical School determines that Company (or an Affiliate or Sublicensee) has not fulfilled its obligations under this Section 3.1.,
Medical School shall furnish Company with written notice of such determination. Within sixty (60) days after receipt of such notice, Company shall either (i) fulfill the relevant obligation or (ii) negotiate with Medical School a mutually acceptable
schedule of revised diligence obligations, failing which Medical School shall have the right, immediately upon written notice to Company, to terminate this Agreement. 
  
 3.2. Indemnification. 
  
 (a) Indemnity. Company shall indemnify, defend, and hold harmless Medical School and its trustees, officers, faculty, students, employees, and
agents and their respective successors, heirs and assigns (the “Indemnitees”), against any liability, damage, loss, or expense (including reasonable attorneys fees and expenses of litigation) incurred by or imposed upon any of the
Indemnitees in connection with any claims, suits, actions, demands or judgments arising out of any theory of liability (including without limitation actions in the form of tort, warranty, or strict liability and regardless of whether such action has
any factual basis) concerning any product, process, or service that is made, used, or sold pursuant to any right or license granted under this Agreement; provided, however, that such indemnification shall not apply to any liability, damage, loss, or
expense to the extent directly attributable to (i) the negligent activities 
  

 5 

 
or intentional misconduct of the Indemnitees or (ii) the settlement of a claim, suit, action, or demand by Indemnitees without the prior written approval of
Company. 
  
 (b) Procedures. The Indemnitees agree to
provide Company with prompt written notice of any claim, suit, action, demand, or judgment for which indemnification is sought under this Agreement. Company agrees, at its own expense, to provide attorneys reasonably acceptable to Medical School to
defend against any such claim. The Indemnitees shall cooperate fully with Company in such defense and will permit Company to conduct and control such defense and the disposition of such claim, suit, or action (including all decisions relative to
litigation, appeal, and settlement); provided, however, that any Indemnitee shall have the right to retain its own counsel, at the expense of Company, if representation of such Indemnitee by the counsel retained by Company would be inappropriate
because of actual or potential differences in the interests of such Indemnitee and any other party represented by such counsel. Company agrees to keep Medical School informed of the progress in the defense and disposition of such claim and to
consult with Medical School with regard to any proposed settlement. 
  
 (c) Insurance. Company shall maintain insurance or self-insurance that is reasonably adequate to fulfill any potential obligation to the Indemnitees, but in any event not less than one million dollars ($1,000,000) for injuries to any
one person arising out of a single occurrence and five million dollars ($5,000,000) for injuries to all persons arising out of a single occurrence. Company shall provide Medical School, upon request, with written evidence of such insurance or
self-insurance. Company shall continue to maintain such insurance or self-insurance after the expiration or termination of this Agreement during any period in which Company or any Affiliate or Sublicensee continues to make, use, or sell a product
that was a Licensed Product under this Agreement and thereafter for a period of two (2) years. 
  
 3.3. Use of Medical School Name. In accordance with Section 6.3., Company and its Affiliates and Sublicensees shall not use the name “University of Massachusetts Medical School” or any variation of
that name in connection with the marketing or sale of any Licensed Products. 
  
 3.4. Marking of Licensed Products. To the extent commercially feasible and consistent with prevailing business practices, Company shall mark, and shall cause its Affiliates and Sublicensees to mark, all
Licensed Products that are manufactured or sold under this Agreement with the number of each issued patent under the Patent Rights that applies to such Licensed Product. 
  
 3.5. Compliance with Law. Company shall comply with, and shall ensure that its Affiliates and Sublicensees comply
with, all local, state, federal, and international laws and regulations relating to the development, manufacture, use, and sale of Licensed Products. Company expressly agrees to comply with the following: 
  
 (a) Company or its Affiliates and Sublicensees shall obtain
all necessary approvals from the United States Food & Drug Administration and any similar 
  

 6 

 
governmental authorities of any foreign jurisdiction in which Company or an Affiliate or Sublicensee intends to make, use, or sell Licensed Products.

  
 (b) Company and its Affiliates and
Sublicensees shall comply with all United States laws and regulations controlling the export of certain commodities and technical data, including without limitation all Export Administration Regulations of the United States Department of Commerce.
Among other things, these laws and regulations prohibit, or require a license for, the export of certain types of commodities and technical data to specified countries. Company hereby gives written assurance that it will comply with, and will cause
its Affiliates and Sublicensees to comply with, all United States export control laws and regulations, that it bears sole responsibility for any violation of such laws and regulations by itself or its Affiliates and Sublicensees, and that it will
indemnify, defend, and hold Medical School harmless (in accordance with Section 3.1.) for the consequences of any such violation. 
  
 4. Consideration for Grant of Rights. 
  
 4.1. License Fee. In partial consideration of the rights granted Company under this Agreement, Company shall pay to Medical School, within thirty
(30) days after the Effective Date, (a) a license fee of {***}, and (b) a payment in the amount of {***} to reimburse Medical School for its actual expenses incurred as of January 31, 2003 in connection with obtaining the Patent Rights. These
license fee payments are nonrefundable and are not creditable against any other payments due to Medical School under this Agreement. 
  
 4.2. Equity. In partial consideration of the license granted to Company under this Agreement, on or about April 18, 2003, Company shall issue to Medical
School a total number of shares of Common Stock of Company, ($.01 par value per share) equal to {***} of the outstanding shares of Company. Company shall register the shares that are issued to the Medical School within ninety (90) days after their
issuance and those shares will then be unrestricted. 
  
 4.3.
License Maintenance Fee. Beginning on the anniversary of the Effective Date, and in each calendar year during the term of the Agreement, Company shall pay to Medical School {***}. This annual license maintenance fee is nonrefundable and is
not creditable against any other payments due to Medical School under this Agreement. 
  
 4.4. Royalties. In partial consideration of the rights granted Company under this Agreement, Company shall pay to Medical School a royalty of {***} of Net Sales of Licensed Products by Company and its
Affiliates. 
  
 (a) If there is a competing product in the
marketplace, no royalties are due for a Licensed Product that is within the definition of “Licensed Product” because it uses or incorporates only Biological Materials. 
  

 7 

 (b) If during the Royalty Period, patents under the Patent Rights have expired or have been abandoned in
a particular country, (i) no royalty is payable by Company, if there is a competing product in that country, and (ii) if Company reduces its prices for Licensed Products in that country, even if there is no competing product in that country, Company
and Medical School shall negotiate in good faith a reduction in the royalty rate to reflect the reduction in Company’s gross margins caused by the price reduction. 
  
 (c) Company shall pay Medical School {***} of Net Sales of commercial clinical laboratory services by Company and its
Affiliates. 
  
 4.5. Minimum Royalty. At the beginning of
each calendar year during the term of this Agreement, beginning January 1, 2016, Company shall pay to Medical School a minimum royalty of {***}. If the actual royalty payments to Medical School in any calendar year are less than the minimum royalty
payment required for that year, Company shall have the right to pay Medical School the difference between the actual royalty payment and the minimum royalty payment in full satisfaction of its obligations under this Section, provided such minimum
payment is made to Medical School within sixty (60) days after the conclusion of the calendar year. Waiver of any minimum royalty payment by Medical School shall not be construed as a waiver of any subsequent minimum royalty payment. If Company
fails to make any minimum royalty payment within the sixty-day period, such failure shall constitute a material breach of its obligations under this Agreement, and Medical School shall have the right to terminate this Agreement in accordance with
Section 7.3. 
  
 4.6. Third-Party Royalties. If Company is legally
required to make royalty payments to Medical School under any agreement other than this Agreement (the “Other Medical School Licenses”), or to one or more third parties in the same Royalty Period for which royalties are due under Section
4.5 or 4.7 in order for Company to make, use or sell Licensed Products or have its sublicense make, use, or sell Licensed Products: 
  

	 	(a)	 	in the case of any payments to Medical School under Other Medical School Licenses with respect to Licensed Products under this Agreement, the royalty payment made by Company to
Medical School under this Agreement for the applicable Royalty Payment shall be reduced by fifty percent (50%) of the aggregate amounts payable for the same Royalty Period under the Other Medical School Licenses (before making any similar reduction
in those payments pursuant to a corresponding reduction clause in those agreements), with a minimum floor of {***} of Net Sales of Licensed Products or {***} of the Sublicense Income to be paid under this Agreement; and 

  

	 	(b)	 	in the case of payments to one or more third parties, an offset of fifty percent (50%) of the amount paid to third parties may be taken by Company against any royalties payable by
Company to the Medical School under this Agreement with a minimum floor of {***} of Net Sales of Licensed Products or {***} of all Sublicense Income, 

  

 8 

	 	 
provided that in no event shall the royalty payments under Section 4.5 and 4.7, when aggregated with any other offsets and credits allowed under this
Agreement, be reduced by more than fifty percent (50%); in the case of payments to one or more third parties, Medical School shall receive {***} of the Sublicense Income net of the foregoing third party payments; and 

  

	 	(c)	 	in the case of both payments under Other Medical School Licenses and to third parties in the same Royalty Period, the reduction described in (i) above shall first be made, and then
the offset described in (ii) above shall be taken, provided that only a pro rata amount of the offset pursuant to (ii) above shall be taken against the royalties payable under this Agreement (with the pro-ration calculated based on the relative
royalty rates under this Agreement and the Other Medical School Licenses), with a minimum floor under this Agreement of {***} of Net Sales of Licensed Products and {***} of Sublicense Income. 

  
 By way of illustration, assume a royalty of {***} under the Other Medical
School Licenses of Net Sales of Licensed Products and a payment of {***} of Net Sales of Licensed Products to a third party. The reduction and offsets calculation would be as follows: 
  

	 	(i)	 	The {***} of Net Sales of Licensed Products would be reduced to {***} of Net Sales of Licensed Products (i.e., a reduction of 50% of the {***} of Net Sales of Licensed Products
under Other Medical School Licenses); and 

  
 (ii)
The remaining {***} of Net Sales of Licensed Products would be offset by an amount equal to {***} of Net Sales of Licensed Products, for a net royalty to the Medical School under this Agreement of {***} of Net Sales of Licensed Products (i.e., the
offset of 50% of the {***} of Net Sales of Licensed Products payable to the third party is allocated pro rata against Medical School under this Agreement, with 33 1/3% of this net offset of {***} of Net Sales of Licensed Products being allocated to the royalties under this Agreement (the {***} royalty rate under this Agreement divided by the
{***} royalty rate under this Agreement plus the {***} royalty rate under the Other Medical School Licenses)). 
  
 5. Royalty Reports; Payments; Records. 
  
 5.1. First Sale. Company shall report to Medical School the date of first commercial sale of each Licensed Product within thirty (30) days of
occurrence in each country. 
  
 5.2. Reports and Payments.
Within sixty (60) days after the conclusion of each Royalty Period, Company shall deliver to Medical School a report containing the following information: 
  

 9 

 (a) the number of Licensed Products sold to independent third parties in each country,
and the number of Licensed Products used by Company and its Affiliates in the provision services in each country; 
  
 (b) the gross sales price for each Licensed Product by Company and its Affiliates or Sublicensees during the applicable Royalty Period in
each country; 
  
 (c) calculation of Net Sales for
the applicable Royalty Period in each country, including a listing of applicable deductions; and 
  
 (d) total royalty payable on Net Sales in U.S. dollars, together with the exchange rates used for conversion. 
  
 If no royalties are due to Medical School for any Royalty Period, the report shall so state.
Concurrent with this report, Company shall remit to Medical School any payment due for the applicable Royalty Period. Medical School shall instruct Company as to the method of payment. The contents of all such reports shall be the confidential and
proprietary information of Company. To the extent permitted by applicable law, Medical School shall use reasonable efforts to maintain the confidentiality of such reports. 
  
 5.3. Payments in U.S. Dollars. All payments due under this Agreement shall be payable in United States dollars.
Conversion of foreign currency to U.S. dollars shall be made at the conversion rate existing in the United States (as reported in the Wall Street Journal) on the last working day of the calendar quarter preceding the applicable Royalty
Period. Such payments shall be without deduction of exchange, collection, or other charges. 
  
 5.4. Payments in Other Currencies. If by law, regulation, or fiscal policy of a particular country, conversion into United States dollars or transfer of funds of a convertible currency to the United States is
restricted or forbidden, Company shall give Medical School prompt written notice of such restriction, which notice shall satisfy the sixty-day payment deadline described in Section 5.2. Company shall pay any amounts due Medical School through
whatever lawful methods Medical School reasonably designates; provided, however, that if Medical School fails to designate such payment method within thirty (30) days after Medical School is notified of the restriction, Company may deposit such
payment in local currency to the credit of Medical School in a recognized banking institution selected by Company and identified by written notice to Medical School, and such deposit shall fulfill all obligations of Company to Medical School with
respect to such payment. 
  
 5.5. Records. Company shall
maintain, and shall cause its Affiliates to maintain, complete and accurate records of Licensed Products that are made, used, sold, or performed under this Agreement and any amounts payable to Medical School in relation to such Licensed Products,
which records shall contain sufficient information to permit Medical School to confirm the accuracy of any reports delivered to Medical School under Section 5.2. The relevant party shall 
  

 10 

 
retain such records relating to a given Royalty Period for at least three (3) years after the conclusion of that Royalty Period, during which time Medical
School shall have the right, at its expense, to cause its internal accountants or an independent, certified public accountant to inspect such records during normal business hours for the sole purpose of verifying any reports and payments delivered
under this Agreement. Such accountant shall not disclose to Medical School any information other than information relating to accuracy of reports and payments delivered under this Agreement. The parties shall reconcile any underpayment or
overpayment within thirty (30) days after the accountant delivers the results of the audit. In the event that any audit performed under this Section reveals an underpayment in excess of the greater of (a) five thousand dollars ($5,000) or (b) ten
percent (10%) in any Royalty Period, Company shall bear the full cost of such audit. Medical School may exercise its rights under this Section only once every year and only with reasonable prior notice to Company. 
  
 5.6. Late Payments. Any payments by Company that are not paid on or
before the date such payments are due under this Agreement shall bear interest, to the extent permitted by law, at two percentage points above the Prime Rate of interest as reported in the Wall Street Journal on the date payment is due, with
interest calculated based on the number of days that payment is delinquent. 
  
 5.7. Method of Payment. All payments under this Agreement should be made in the name of the “Medical School of Massachusetts” and sent to the address identified below. Each payment should reference
this Agreement and identify the obligation under this Agreement that the payment satisfies. 
  
 5.8. Withholding and Similar Taxes. Royalty payments and other payments due to Medical School under this Agreement shall be reduced by reason of any withholding or similar taxes applicable to such payments to
Medical School, which shall be paid by Company as required by applicable law and reported by Company to the Medical School. 
  
 6. Confidential Information; Publications; Publicity. 
  
 6.1. Confidential Information. 
  
 (a) Designation. Confidential Information that is disclosed in writing shall be marked with a legend indicating its
confidential status (such as “Confidential” or “Proprietary”). Confidential Information that is disclosed orally or visually shall be documented in a written notice prepared by the Disclosing Party and delivered to the Receiving
Party within thirty (30) days of the date of disclosure; such notice shall summarize the Confidential Information disclosed to the Receiving Party and reference the time and place of disclosure. 
  
 (b) Obligations. For a period of five (5) years after disclosure of
any portion of Confidential Information, the Receiving Party shall (i) maintain such Confidential Information in strict confidence, except that the Receiving Party may disclose or permit the disclosure of any 
  

 11 

 
Confidential Information to its directors, officers, employees, consultants, and advisors who are obligated to maintain the confidential nature of such
Confidential Information and who need to know such Confidential Information for the purposes of this Agreement; (ii) use such Confidential Information solely for the purposes of this Agreement; and (iii) allow its trustees or directors, officers,
employees, consultants, and advisors to reproduce the Confidential Information only to the extent necessary for the purposes of this Agreement, with all such reproductions being considered Confidential Information. 
  
 (c) Exceptions. The obligations of the Receiving Party under
Subsection 6.1.(b) above shall not apply to the extent that the Receiving Party can demonstrate that certain Confidential Information (i) was in the public domain prior to the time of its disclosure under this Agreement; (ii) entered the public
domain after the time of its disclosure under this Agreement through means other than an unauthorized disclosure resulting from an act or omission by the Receiving Party; (iii) was independently developed or discovered by the Receiving Party without
use of the Confidential Information; (iv) is or was disclosed to the Receiving Party at any time, whether prior to or after the time of its disclosure under this Agreement, by a third party having no fiduciary relationship with the Disclosing Party
and having no obligation of confidentiality with respect to such Confidential Information; or (v) is required to be disclosed to comply with applicable laws or regulations, or with a court or administrative order, provided that the Disclosing Party
receives reasonable prior written notice of such disclosure. 
  
 (d) Ownership and Return. The Receiving Party acknowledges that the Disclosing Party (or any third party entrusting its own information to the Disclosing Party) claims ownership of its Confidential Information in the possession of
the Receiving Party. Upon the expiration or termination of this Agreement, and at the request of the Disclosing Party, the Receiving Party shall return to the Disclosing Party all originals, copies, and summaries of documents, materials, and other
tangible manifestations of Confidential Information in the possession or control of the Receiving Party, except that the Receiving Party may retain one copy of the Confidential Information in the possession of its legal counsel solely for the
purpose of monitoring its obligations under this Agreement. 
  
 6.2. Publications. Medical School and its employees will be free to publicly disclose (through journals, lectures, or otherwise) the results of any research in the Field or relating to the subject matter of the Patent Rights, except
as otherwise provided by written agreement between Medical School and Company (e.g., a sponsored research agreement). 
  
 6.3. Publicity Restrictions. Company shall not use the name of Medical School or any of its trustees, officers, faculty, students, employees, or
agents, or any adaptation of such names, or any terms of this Agreement in any promotional material or other public announcement or disclosure without the prior written consent of Medical School. The foregoing notwithstanding, Company shall have the
right to disclose such information without the consent of Medical School in any prospectus, offering memorandum, or other document or filing required by 
  

 12 

 
applicable securities laws or other applicable law or regulation, provided that Company shall have given Medical School at least ten (10) days (or such prior
shorter period in order to enable Company to make a timely announcement, while affording the Medical School the maximum feasible time to review the announcement) prior written notice of the proposed text for the purpose of giving Medical School the
opportunity to comment on such text. 
  
 7.
Term and Termination. 
  
 7.1. Term. This Agreement
shall commence on the Effective Date and shall remain in effect until (a) the expiration of all issued patents within the Patent Rights or (b) for a period of ten (10) years after the Effective Date if no such patents have issued within that
ten-year period, unless earlier terminated in accordance with the provisions of this Agreement. 
  
 7.2. Termination for Default. In the event that either party commits a material breach of its obligations under this Agreement and fails to cure
that breach within sixty (60) days after receiving written notice thereof, the other party may terminate this Agreement immediately upon written notice to the party in breach. 
  
 7.4. Force Majeure. Neither party will be responsible for delays resulting from causes beyond the reasonable control
of such party, including without limitation fire, explosion, flood, war, strike, or riot, provided that the nonperforming party uses commercially reasonable efforts to avoid or remove such causes of nonperformance and continues performance under
this Agreement with reasonable dispatch whenever such causes are removed. 
  
 7.5. Effect of Termination. The following provisions shall survive the expiration or termination of this Agreement: Articles 1 and 8; Sections 3.2., 3.5., 5.2. (obligation to provide final report and payment),
6.1., 7.5., and 9.9. Upon the early termination of this Agreement, Company and its Affiliates or Sublicensees may complete and sell any work-in-progress and inventory of Licensed Products that exist as of the effective date of termination, provided
that (a) Company is current in payment of all amounts due Medical School under this Agreement, (b) Company pays Medical School the applicable royalty on such sales of Licensed Products in accordance with the terms and conditions of this Agreement,
and (c) Company and its Affiliates or Sublicensees shall complete and sell all work-in-progress and inventory of Licensed Products within six (6) months after the effective date of termination. 
  
 8. Dispute Resolution. 
  
 8.1. Procedures Mandatory. The parties agree that any dispute arising
out of or relating to this Agreement shall be resolved solely by means of the procedures set forth in this Article, and that such procedures constitute legally binding obligations that are an essential provision of this Agreement; provided, however,
that all procedures and deadlines specified in this Article may be modified by written agreement of the parties. If either party fails to observe the procedures of 
  

 13 

 
this Article, as modified by their written agreement, the other party may bring an action for specific performance in any court of competent jurisdiction.

  
 8.2. Dispute Resolution Procedures. 
  
 (a) Negotiation. In the event of any dispute arising out of or
relating to this Agreement, the affected party shall notify the other party, and the parties shall attempt in good faith to resolve the matter within ten (10) days after the date of such notice (the “Notice Date”). Any disputes not
resolved by good faith discussions shall be referred to senior executives of each party, who shall meet at a mutually acceptable time and location within thirty (30) days after the Notice Date and attempt to negotiate a settlement. 
  
 (b) Mediation. If the matter remains unresolved within sixty (60) days
after the Notice Date, or if the senior executives fail to meet within thirty (30) days after the Notice Date, either party may initiate mediation upon written notice to the other party, whereupon both parties shall be obligated to engage in a
mediation proceeding under the then current Center for Public Resources (“CPR”) Model Procedure for Mediation of Business Disputes, except that specific provisions of this Section shall override inconsistent provisions of the CPR Model
Procedure. The mediator will be selected from the CPR Panels of Neutrals. If the parties cannot agree upon the selection of a mediator within ninety (90) days after the Notice Date, then upon the request of either party, the CPR shall appoint the
mediator. The parties shall attempt to resolve the dispute through mediation until one of the following occurs: (i) the parties reach a written settlement; (ii) the mediator notifies the parties in writing that they have reached an impasse; (iii)
the parties agree in writing that they have reached an impasse; or (iv) the parties have not reached a settlement within one hundred and twenty (120) days after the Notice Date. 
  
 (c) Trial Without Jury. If the parties fail to resolve the dispute through mediation, or if neither party elects to
initiate mediation, each party shall have the right to pursue any other remedies legally available to resolve the dispute, provided, however, that the parties expressly waive any right to a jury trial in any legal proceeding under this Section.

  
 8.3. Preservation of Rights Pending Resolution.

  
 (a) Performance to Continue. Each party shall continue
to perform its obligations under this Agreement pending final resolution of any dispute arising out or relating to this Agreement; provided, however, that a party may suspend performance of its obligations during any period in which the other party
fails or refuses to perform its obligations. 
  
 (b)
Provisional Remedies. Although the procedures specified in this Article are the sole and exclusive procedures for the resolution of disputes arising out of relating to this Agreement, either party may seek a preliminary injunction or other
provisional equitable relief if, in its reasonable judgment, such action is necessary to avoid irreparable harm to itself or to preserve its rights under this Agreement. 
  

 14 

 (c) Statute of Limitations. The parties agree that all applicable statutes of limitation and
time-based defenses (such as estoppel and laches) shall be tolled while the procedures set forth in Subsections 8.2.(a) and 8.2(b) are pending. The parties shall take any actions necessary to effectuate this result. 
  
 9. Miscellaneous. 
  
 9.1. Representations and Warranties. Representations and Warranties.
Medical School represents and warrants that its employees have assigned to Medical School their entire right, title, and interest in the Patent Rights, that it has authority to grant the rights and licenses set forth in this Agreement, and that, to
its best knowledge, Medical School does not hold any other intellectual property rights that would be infringed by the exploitation of the Patent Rights. MEDICAL SCHOOL MAKES NO OTHER WARRANTIES CONCERNING THE PATENT RIGHTS AND BIOLOGICAL MATERIALS,
INCLUDING WITHOUT LIMITATION ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Specifically, Medical School makes no warranty or representation (a) that the exploitation of any Licensed Product will not infringe
any patents or other intellectual property rights of a third party, (b) regarding the validity or scope of the Patent Rights, and (c) that any third party is not currently infringing or will not infringe the Patent Rights. 
  
 9.2. Compliance with Law and Policies. Company agrees to comply with
applicable law and the policies of Medical School in the area of technology transfer and shall promptly notify Medical School of any violation that Company knows or has reason to believe has occurred or is likely to occur. The Medical School
policies currently in effect at 365 Plantation Street, Ste. 130, Worcester MA, 01605 campus are available online at www.umassmed.edu/research/policies. 
  
 9.3. Tax-Exempt Status. Company acknowledges that Medical School, as a public institution of the Commonwealth of Massachusetts, holds the status of
an exempt organization under the United States Internal Revenue Code. Company also acknowledges that certain facilities in which the licensed inventions were developed may have been financed through offerings of tax-exempt bonds. If the Internal
Revenue Service determines, or if counsel to Medical School reasonably determines, that any term of this Agreement jeopardizes the tax-exempt status of Medical School or the bonds used to finance Medical School facilities, the relevant term shall be
deemed an invalid provision and modified in accordance with Section 10.11. 
  
 9.4. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument. 

 

 15 

 9.5. Headings. All headings are for convenience only and shall not affect the meaning of any
provision of this Agreement. 
  
 9.6. Binding Effect. This
Agreement shall be binding upon and inure to the benefit of the parties and their respective permitted successors and assigns. 
  
 9.7. Assignment. This Agreement may not be assigned by either party without the prior written consent of the other party, except that Company may
assign this Agreement to an Affiliate 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 to which this Agreement relates. 
  
 9.8. Amendment and Waiver. This Agreement may be amended,
supplemented, or otherwise modified only by means of a written instrument signed by both parties. Any waiver of any rights or failure to act in a specific instance shall relate only to such instance and shall not be construed as an agreement to
waive any rights or fail to act in any other instance, whether or not similar. 
  
 9.9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts irrespective of any conflicts of law principles. 
  
 9.10. Notice. Any notices required or permitted under this Agreement
shall be in writing, shall specifically refer to this Agreement, and shall be sent by hand, recognized national overnight courier, confirmed facsimile transmission, confirmed electronic mail, or registered or certified mail, postage prepaid, return
receipt requested, to the following addresses or facsimile numbers of the parties: 
  
 If to Medical School: 
  
 Office
of Technology Management 
 Medical School of Massachusetts 
 365 Plantation Street, Suite 130 
 Worcester, MA 01605 
 Attention:      Joseph F.X. McGuirl 
                         Executive Director 
  
 Tel: (508) 856-1626 
 Fax: (508) 856-1482 
  

 16 

 If to Company: 
  

CytRx Corporation 
 11726 San Vicente
Blvd., Suite 650 
 Los Angeles, CA 90049 
 Attention:      Steven A. Kriegsman 
                         Chief Executive Officer 
  
 Tel: (310) 826-5449 
 Fax: (310) 826-5529 
  
 All notices under this Agreement shall be deemed
effective upon receipt. A party may change its contact information immediately upon written notice to the other party in the manner provided in this Section. 
  
 9.11. Severability. In the event that any provision of this Agreement shall be held invalid or unenforceable for any reason, such invalidity or
unenforceability shall not affect any other provision of this Agreement, and the parties shall negotiate in good faith to modify the Agreement to preserve (to the extent possible) their original intent. If the parties fail to reach a modified
agreement within sixty (60) days after the relevant provision is held invalid or unenforceable, then the dispute shall be resolved in accordance with the procedures set forth in Article 7. While the dispute is pending resolution, this Agreement
shall be construed as if such provision were deleted by agreement of the parties. 
  
 9.12. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior agreements or understandings between the parties relating
to its subject matter. 
  
 IN WITNESS WHEREOF, the parties have
caused this Agreement to be executed by their duly authorized representatives as of the date first written above. 
  

	 MEDICAL SCHOOL OF MASSACHUSETTS
	 	 CYTRX CORPORATION

				
	 By:
	 	 /s/ Joseph F.X. McGuirl

	 	 By:
	 	 /s/ Steven A. Kriegsman

	 	 	 Joseph F.X. McGuirl
	 	 Steven A. Kriegsman

	 	 	 Executive Director, CVIP
	 	 Chief Executive Officer

  
  

 17 

 EXHIBIT A 
  
 List of Patent Rights 
  
 UMMC 01-36 “RNA Sequence-Specific Mediators of RNA Interference” 
 Inventors: David P. Bartel, Philip A. Sharp, Thomas Tuschl, and Philip D. Zamore 
  

	 	I.	 	United States Patents and Application 

  
 USSN 60/265232 entitled “RNA Sequence-Specific Mediators of RNA Interference”, by 
 David P. Bartel, Philip A. Sharp, Thomas Tuschl, and Philip D. Zamore 
  
 USSN 09/821832 entitled “RNA Sequence-Specific Mediators of RNA Interference”, by 
 David P. Bartel, Philip A. Sharp, Thomas Tuschl, and Philip D. Zamore 
  

	 	II.	 	International (non-U.S.) Patents and Applications 

  
 PCT/US01/10188 entitle “RNA Sequence-Specific Mediators of RNA Interference”, by 
 David P. Bartel, Philip A. Sharp, Thomas Tuschl, and Philip D. Zamore

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