CYTRX CORP
EXTENSION OF FINANCIAL ADVISORY AGREEMENT
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<DESCRIPTION>EXTENSION OF FINANCIAL ADVISORY AGREEMENT
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  <p align=center><font size=2 face="Times New Roman"><b>CAPPELLO CAPITAL CORP.<br></b>Investment Bankers</font></p> <p align=right><font size=2 face="Times New Roman">EXHIBIT 10.2</font></p> <p align=center>
<img src="g52908ex10_2.gif" width="94" height="94"></p> <p align="center"></p> <p align="center"></p> <p align="center"></p> <p align="center"></p> <p align="center"></p> <p align=right><font size=2 face="Times New Roman"><b>Confidential</b></font></p>
<p><font size=2 face="Times New Roman">January 1, 2002</font></p> <p><font size=2 face="Times New Roman">Mr. Jack J. Luchese<br> President and Chief Executive Officer<br> CytRx Corporation<br> 154 Technology Parkway<br> Technology Park<br> Atlanta,
Georgia 30092</font></p> <p><font size=2 face="Times New Roman">Dear Mr. Luchese,</font></p> <p><font size=2 face="Times New Roman">This letter shall confirm the extension of the Engagement Agreement (the &#147;Agreement&#148;) dated as of December
12, 2000 (the &#147;Agreement&#148;), by and between Cappello Capital Corp. (&#147;Advisor&#148;) and CytRx Corporation (&#147;Company&#148;).&#160; The amendments are as follows:</font></p>
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<td width="95%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">1.)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Term of the Agreement, as defined therein, shall run from the date of receipt by Advisor of the
Company&#146;s signed acceptance of this letter until twelve months thereafter, and may be further extended by mutual consent of the parties (&#147;Term&#148;).</font></p> </td> </tr>
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<td width="95%" colspan="2" valign=top> <p><font size=2 face="Times New Roman">2.)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company agrees to pay the Advisor a monthly retainer of $10,000 per month for a period of six (6)
months, payable on the first day of each month, commencing as of January 1, 2002, and ending as of June 30, 2002.</font></p> </td> </tr> </table> <p><font size=2 face="Times New Roman">All other terms and provisions of the Agreement shall otherwise
remain unchanged. </font></p> <p><font size=2 face="Times New Roman">If this meets with your approval, please indicate your acceptance of the above by signing where indicated below and returning this letter by facsimile and mail to the
undersigned.&#160; Thank you for the opportunity to be of service.</font></p> <p><font size=2 face="Times New Roman">Sincerely,</font></p>
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<td width="24%" valign=bottom> <p align=center><font size=2 face="Times New Roman">/s/ GERARD K. CAPPELLO</font></p> </td>
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<td width="24%" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>Gerard K. Cappello<br> President and CEO<br> Cappello Capital Corp.</b></font></p> </td>
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<td width="33%" valign=top> <p align=center><Font size="2" face="Times New Roman"> &nbsp;</font></p> </td> </tr> </table> <p align=center><font size=2 face="Times New Roman">1299 Ocean Avenue , Suite 306, Santa Monica, California 90401<br> Telephone
310.393.663 2 Fax 310.393.4838 </font></p> <p align=center><font size=2 face="Times New Roman"><b>NASD - SIPC</b></font></p> <BR>

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<td width="76%" valign=top> <p><font size=2 face="Times New Roman"><b>CytRx Corporation -- Cappello Capital Corp.</b></font></p> </td>
<td width="23%" valign=top> <p align=right><font size=2 face="Times New Roman"><b>Confidential</b></font></p> </td> </tr>
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<td width="76%" valign=top> <p><font size=2 face="Times New Roman">Engagement Extension &#150; January 1, 2002 &#150; Page 2</font></p> </td>
<td width="23%" valign=top> <p align=right>&nbsp;</p> </td> </tr> </table> <p><font size=2 face="Times New Roman"><b>AGREED AND ACCEPTED</b>:</font></p> <p><font size=2 face="Times New Roman">The foregoing accurately sets forth our understanding and
agreement with respect to the matters set forth herein.</font></p>
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<td width="100%" colspan="4" valign=bottom> <p><font size=2 face="Times New Roman">CYTRX CORPORATION</font></p> </td> </tr>
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<td width="5%" valign=bottom> <p><font size=2 face="Times New Roman">By:</font></p> </td>
<td width="21%" valign=bottom> <p align=center><font size=2 face="Times New Roman">/s/ JACK J. LUCHESE</font></p> </td>
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<td width="5%" valign=bottom> <p><font size=2 face="Times New Roman">Title:</font></p> </td>
<td width="21%" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>President &amp; CEO</b></font></p> </td>
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<td width="5%" valign=bottom> <p><font size=2 face="Times New Roman">Date:</font></p> </td>
<td width="21%" valign=bottom> <p align=center><font size=1 face="Times New Roman"><b>February 11, 2002</b></font></p> </td>
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