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                                   EXHIBIT 10

                                 AMENDMENT NO. 2
                                       TO
                            1995 EMPLOYMENT AGREEMENT
                                     BETWEEN
                                CYTRX CORPORATION
                                       AND
                                 JACK J. LUCHESE

         This Amendment No. 2 ("Amendment") to Employment Agreement is made and
executed this 1st day of August, 1997, by and between CYTRX CORPORATION ("CytRx"
or the "Company"), a Delaware corporation having its principal place of business
at 154 Technology Parkway, Technology Park/Atlanta, Norcross, Georgia 30092, and
JACK J. LUCHESE ("Mr. Luchese") who currently resides at 3030 Castle Pines
Drive, Duluth, Georgia 30136.

         WHEREAS, the Company and Mr. Luchese have heretofore entered into an
amended and restated Employment Agreement, dated as of March 7, 1995, as amended
on April 16, 1997 (as amended, the "1995 Agreement");

         WHEREAS, the Compensation Committee of the Board of Directors of the
Company approved an extension of the 1995 Agreement to December 31, 1999;

         WHEREAS, the Company and Mr. Luchese desire to modify the 1995
Agreement to extend the term thereof;

         NOW, THEREFORE, in consideration of the mutual covenants and promises
made in this Amendment, the parties do hereby agree as follows:

1.       Paragraph 2 of the 1995 Agreement be and hereby is deleted in its
entirety and the following is substituted therefor:

         "2. Term and Renewal. The term of Mr. Luchese's employment
         hereunder will be for a period commencing on January 1, 1995,
         and continuing until December 31, 1998 (the "Expiration
         Date"), unless Mr. Luchese's employment is terminated by
         either party pursuant to Paragraph 7 of this Agreement."

2.       Effect of Amendment. All provisions of the 1995 Agreement not modified
by the provisions of this Amendment shall remain in full force and effect.

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         IN WITNESS WHEREOF, the parties hereto have executed this Amendment 
under seal on the day and year first above written.



                                       /s/ Jack J. Luchese 
                                       ---------------------    
                                       Jack J. Luchese



Attest:                                CYTRX CORPORATION:

                                       /s/ William B. Fleck
- --------------------                   -----------------------
Corporate Secretary                    By:    William B. Fleck                
(CORPORATE SEAL)                       Title: Vice President - Human Resources

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