Document:

1999 Tellabs, Inc. Stock Bonus Plan

1999 TELLABS, INC.

STOCK BONUS PLAN

1. INTRODUCTION

1.1 The purpose of the 1999 Tellabs, Inc. Stock Bonus Plan (the "Plan")
is (i) to align the interests of the stockholders of Tellabs, Inc. ("Tellabs"),
and its direct and indirect subsidiaries from time to time (individually, a
"Subsidiary" and collectively, the "Subsidiaries") and recipients of
awards under this Plan by increasing the proprietary interests of such recipients in the
growth and success of Tellabs and (ii) to advance the interests of Tellabs and its
Subsidiaries by attracting and retaining key employees of and other individuals performing
services for (as determined by the Board or the Committee as described in
"Eligibility" below) Tellabs or its Subsidiaries.
1.2 Certain Definitions

"Board" shall mean the Board of Directors of Tellabs.

"Bonus Stock" shall mean shares of Common Stock awarded under the Plan.

"Bonus Stock Award" shall mean an award to an eligible employee of a right to
receive Bonus Stock under the Plan.

"Cause" shall mean any act of dishonesty, commission of an indictable criminal
offense, activities harmful to the reputation of Tellabs or a Subsidiary, the refusal to
perform or the substantial disregard of duties properly assigned or a significant violation
of any legal duty of loyalty to Tellabs or a Subsidiary, as determined by the Committee in
its sole discretion.

"Committee" shall mean the Compensation Committee of the Board of Tellabs or
any successor Committee thereto.

"Common Stock" means the common stock of Tellabs.

"Disability" shall mean disability as defined in Section 22(e)(3) of the
Internal Revenue Code of 1986, as amended from time to time or any successor thereto or as
determined by the Committee in its sole discretion.

"Fair Market Value" shall mean the average of the high and low transaction
prices of a share of Common Stock as reported in the National Association of Securities
Dealers Automated Quotation National Market System ("NASDAQNMS") on the date as
of which such value is being determined, or, if the Common Stock is not listed on the
NASDAQNMS, the average of the high and low transaction prices of a share of Common Stock on
the principal national stock exchange on which the Common Stock is traded on the date as of
which such value is being determined, or, if there shall be no reported transactions for
such date, on the next preceding date for which transactions were reported; provided,
however, that if Fair Market Value for any date cannot be so determined, Fair Market Value
shall be determined by the Committee by whatever means or method as the Committee, in the
good faith exercise of its discretion, shall at such time deem appropriate.

1.3 Administration

This Plan shall be administered by the Committee.  The Committee shall, subject to the
terms of this Plan, interpret this Plan and the application thereof, establish rules and
regulations it deems necessary or desirable for the administration of this Plan.  All such
interpretations, rules and regulations shall be conclusive and binding on all parties.

The Committee may delegate some or all of its power and authority hereunder to the
President and Chief Executive Officer or other executive officer of Tellabs or a Subsidiary
as the Committee deems appropriate.

1.4 Eligibility

Participants eligible to participate in this Plan shall consist of employees of,
individuals accepting employment with and other individuals providing services to (as
determined by the Board or the Committee) Tellabs or one of its Subsidiaries, provided
however, that in no event shall any person who is an executive officer (other than in
connection with the hiring of such officer) or member of the Tellabs Board be eligible to
participate in this Plan.  No other persons shall be eligible to participate in this
Plan.

2. BONUS STOCK AWARDS

2.1 Bonus Stock Awards

Tellabs shall grant Bonus Stock Awards to eligible participants from time to time as
determined by Board or the Committee.  Each such grant shall be evidenced by a notice sent
by Tellabs to each such participant to whom Bonus Stock Awards are made.
2.2 Terms of Bonus Stock Awards

Except as otherwise determined by the Board or the Committee and provided in the Bonus
Stock Award documents, Bonus Stock Awards shall be subject to the following terms and
conditions:

a. Number of Shares and Other Terms

The number of shares of Common Stock subject to a Bonus Stock Award granted pursuant to
this Plan shall be the number of such shares determined by the Board or the Committee.

b. Vesting and Forfeiture

One-half of the number of shares of Common Stock subject to a Bonus Stock Award shall vest
and be payable on the first anniversary of the date of the Bonus Stock Award and the other
half of such number shall vest and be payable on the second anniversary of the Bonus Stock
Award, in each case, subject to Section 2.3(b), if the holder of such award remains
continuously in the employment or service of Tellabs or a Subsidiary until such anniversary
date.  Such holder shall forfeit the unvested portion of any such shares if such holder
does not remain continuously in the employment or service of Tellabs or a Subsidiary as
specified above, except as otherwise provided in Section 2.3(b) hereof.

c. Share Certificates

Upon the vesting of a portion of a Bonus Stock Award pursuant to Section 2.2(b) or 2.3(b),
in each case subject to Tellabs' or a Subsidiary's rights to require payment of any taxes
in accordance with Section 3.2, a certificate or certificates evidencing ownership of the
number of shares of Common Stock so vested shall be delivered to and in the name of the
holder of such award.  Notwithstanding the foregoing, in lieu of the delivery of shares
representing all or a portion of the vested portion of a Bonus Stock Award, the Committee
may, in its sole discretion, deliver to the holder cash in an amount equal to the Fair
Market Value on the date such shares become vested equal to all or a portion of the vested
portion of such award, less any applicable withholding, as required by Section 3.2, as the
case may be.

 

2.3 Termination of Employment/Service

a. Termination Resulting in Forfeiture

Except as otherwise determined by the Board or the Committee and provided in the Bonus
Stock Award documents, if (i) employment/service with Tellabs or a Subsidiary of the holder
of a Bonus Stock Award is terminated by Tellabs or a Subsidiary for Cause, (ii) such
employment/service terminates by reason of the holder's Disability or death, or (iii) a
holder terminates his employment/service with Tellabs or a Subsidiary for any reason, the
portion of such award which is not vested pursuant to Section 2.2(b) shall be forfeited by
such holder and such portion shall be cancelled by Tellabs.
b. Other Termination

Except as otherwise determined by the Board or the Committee and provided in the Bonus
Stock Award documents, if Tellabs or a Subsidiary terminates the employment/service of the
holder of a Bonus Stock Award for any reason other than as provided in Section 2.3(a), the
portion of such award which is not otherwise vested shall vest pursuant to Section 2.2(b)
without regard to such termination and be payable within thirty (30) days of such
termination, in accordance with Section 2.2(c).

3. GENERAL
3.1 Amendments

The Board or the Committee may amend this Plan as it shall deem advisable.  No amendment
may impair the rights of a holder of an outstanding award without the consent of such
holder.

3.2 Tax Withholding

Tellabs shall have the right to require, prior to the issuance or delivery of any shares
of Common Stock or the payment of any cash pursuant to an award made hereunder, payment by
the holder of such award of any federal, provincial, local or other taxes which may be
required to be withheld or paid in connection with such award.  The Committee may allow
shares of Common Stock to be delivered or withheld having an aggregate Fair Market Value
not in excess of the minimum amount required to be withheld and in such event, any fraction
of a share of Common Stock which would be required to satisfy such an obligation shall be
disregarded and the remaining amount due shall be paid in cash by the holder.

3.3 Adjustment

In the event of any stock split, stock dividend, recapitalization, reorganization, merger,
consolidation, combination, exchange of shares, liquidation, spin-off or other similar
change in capitalization or event, or any distribution to holders of Common Stock other
than a regular cash dividend, the number and class of securities available under this Plan,
and the number and class of securities subject to each outstanding Bonus Stock Award shall
be adjusted or modified accordingly, as determined by the Committee, which adjustment may
include providing for payment of an asset not constituting a security upon the vesting of
an outstanding Bonus Stock Award.  The decision of the Committee regarding any such
adjustment shall be final, binding and conclusive.  If any such adjustment would result in
a fractional security being (i) available under this Plan, such fractional security shall
be disregarded, or (ii) subject to an award under this Plan, Tellabs shall pay the holder
of such award, in connection with the first vesting of such award, in whole or in part,
occurring after such adjustment, an amount in cash determined by multiplying (a) the
fraction of such security (rounded to the nearest hundredth) by (b) the excess, if any, of
the Fair Market Value on the vesting date.

3.4 No Assignment

It is a condition of this Plan, and the rights of all holders of Bonus Stock Awards shall
be subject thereto, that no right or interest of any such holder shall be assignable or
transferable in whole or in part, either directly or by operation of law or otherwise,
including, but not by way of limitation, execution, levy, garnishment, attachment, pledge
or bankruptcy, and no right or interest of any such holder under this Plan shall be liable
for, or subject to, any obligation of any such holder, including claims for alimony or the
support of any spouse.

3.5 No Right of Employment/Service

Neither this Plan nor any award made hereunder shall confer upon any person any right to
continued employment/service by Tellabs or any Subsidiary or affiliate thereof or affect in
any manner the right of Tellabs or any Subsidiary or affiliate thereof to terminate the
employment/service of any person at any time without liability hereunder.

3.6 Right as Stockholder

No person shall have any right as a stockholder of Tellabs with respect to any shares of
Common Stock or other equity security of Tellabs which is subject to an award hereunder
unless and until such person becomes a stockholder of record with respect to such shares of
Common Stock or equity security.  Tellabs' obligation to deliver shares of Common Stock
pursuant to this Plan shall be unfunded, and Tellabs shall not be obligated to set aside
any of its assets for the purpose of satisfying its obligations hereunder.  The claims of
holders of Bonus Stock Awards shall be solely those of an unsecured creditor of Tellabs.

3.7 Beneficiary Designation

Each holder of a Bonus Stock Award under the Plan may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or successively) to whom any
benefit under the Plan is to be paid in case of his or her death before he or she receives
any or all of such benefit.  Each such designation shall revoke all prior designations by
the same holder, shall be in a form prescribed by Tellabs or its Subsidiary, and will be
effective only when filed by the holder in writing with the person or persons designated by
Tellabs or its Subsidiary to receive such designations during the holder's lifetime.  In
the absence of any such designation, benefits remaining unpaid at the holder's death shall
be paid to the holder's estate.

3.8 Requirements of Law

The granting of Bonus Stock Awards and the issuance of Common Stock under the Plan shall be
subject to all applicable laws, rules, regulations, and to such approval by any
governmental agencies or national securities exchanges or NASDAQNMS as may be required

3.8 Governing Law

The corporate law of the State of Delaware shall govern all issues concerning the relative
rights of Tellabs and the holders of Bonus Stock Awards with respect to this Plan.  The law
of the State of Illinois, except its law with respect to choice of law, shall be
controlling in all other matters relating to the Plan.

3.8 Effective Date

This Plan shall become effective on the date adopted by the Board.EMPLOYMENT AGREEMENT

AGREEMENT dated as of November 16, 1998 between ACCESS
Pharmaceuticals, Inc. a Delaware corporation located at 2600 Stemmons
Freeway, Suite 176, Dallas, Texas 75207-2107, (the "Company"), and
David P. Nowotnik, Ph.D., an individual residing at 1018 San Jacinto
Drive, #1516, Irving, TX 75063  (the "Executive").

                          W I T N E S S E T H:

WHEREAS, the Company desires that Executive serve as the Company's
Vice President Research and Development; and

WHEREAS, in order to induce Executive to agree to serve in such
capacity, the Company hereby offers Executive certain compensation and
benefits of employment, as described herein.

WHEREAS, Executive is willing to serve in this position on the terms
and conditions hereinafter set forth;

NOW, THEREFORE, in consideration of the premises and of the mutual
covenants contained herein, the Company and Executive hereby agree as
follows:

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1.   Employment

The Company hereby agrees to employ Executive and Executive hereby
agrees to be employed upon the terms and conditions hereinafter set
forth.  During the term of this Agreement, Executive shall serve as the
Vice President of Research and Development of the Company. Executive
shall be responsible to the President of the Company, rendering the
services and performing the duties prescribed by the President of the
Company

The Executive agrees, while employed hereunder, to perform his duties
faithfully and to the best of his ability.  The Executive shall be employed
at the Company's offices in Dallas, Texas, and his principal duties shall
be performed primarily in Dallas, Texas, except for business trips
reasonable in number and duration.

2.   Term

The employment of the Executive hereunder shall begin on the
date hereof and shall continue in full force and effect for a period of one
(1) year, and thereafter shall be automatically renewed for successive
one-year periods unless the Company gives the Executive written notice
of termination within six (6) months prior to the end of any such period
or until the occurrence of a Termination Date, as defined in Section 5
(the "Term").

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3.   Compensation

3.1.   As compensation for the Executive's services during the Term, the
Company shall pay the Executive an annual base salary at the rate of
$165,000, payable monthly on the last day of each month during the
Term.  Prior to the end of each year during the Term, the Compensation
Committee of the Company shall undertake an evaluation of the services
of the Executive during the year then ended in accordance with the
Company's compensation program at the date hereof (the "Program").
The Company shall consider the performance of the Executive, his
contribution to the success of the Company and entities under common
control with the Company (collectively, "Affiliates"), and other factors
and shall fix an annual base salary to be paid to the Executive during the
ensuring year.

3.2   Notwithstanding the foregoing, the Company may change the
Program from time to time or institute a successor to the Program, but
the Executive's annual base salary shall in no event be less than his
annual base salary in effect on the date of change, adjusted regularly to
reflect increases in the cost of living and comparable compensation for
like positions.

3.3.   The executive shall participate in the Company incentive
compensation programs in accordance with the following subparagraphs
(i) and (ii):

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(i)  Incentive Plan - The executive shall be covered by the cash bonus
plan currently maintained by the Company and shall be afforded the
opportunity thereunder to receive a target award of 8.5% of annual base
salary payable in cash and 8.5% of annual base salary payable in Access
Common Stock, to be awarded upon the achievement of reasonable
performance goals; provided that the Company may from time to time
change the Program or institute a successor to the Program, so long as
the Executive continues to be eligible to receive bonus awards of
percentages of annual base salary in amounts at least equal to those
specified as in effect on the  date hereof.

(ii)   Stock Option Plan - Executive shall be entitled to participate in the
Company's stock option plan.  In accordance with this plan the Board
may from time to time, but without any obligation to do so, grant
additional stock options to the executive upon such terms and conditions
as the Board shall determine in its sole discretion.  If the Company no
longer has a class of stock publicly-traded by reason of a Change in
Control of the Company, as defined in Section 5.3, the Company's
obligation under this Section 3.3 will be satisfied through options granted
by the issuer with public stock then in control of the Company.

3.4   If the Executive is prevented by disability, for a period of six
consecutive months, from continuing fully to perform his obligations
hereunder, the Employee shall perform his obligations hereunder to the
extent he is able and after six months the Company may reduce his
annual base salary to reflect the extent of the disability; provided that in
no event may such rate, when added to payments received by him under

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any disability or qualified retirement or pension plan to which the
Company or an Affiliate contributes or has contributed, be less than
$60,000.  If there should be a dispute about the  Executive's disability,
disability shall be determined by the Board of Directors of the Company
based upon a report from a physician, reasonably acceptable to the
Executive, who shall have examined the Executive.  If the Executive
claims disability, the Executive agrees to submit to a physical
examination at any reasonable time or times by a qualified physician
designated by the President of the Company and reasonably acceptable
to the Executive.  Notwithstanding any provision in this Section, the
Company shall not be obligated to make any payments to Executive on
account of disability after the expiration of this Agreement.

4.   Executive Benefits
The Executive shall be entitled to participate in all "employee pension
benefit plans," all "employee welfare benefit plans" (each as defined in
the Employee Retirement Income Security Act of 1974) and all pay
practices and other compensation arrangements maintained by the
Company, on a basis at least as advantageous to the Executive as the
basis on which other executive employees of the Company are eligible
to participate. Executive shall, during the term of his employment
hereunder, continue to be provided with such benefits at a level at least
equivalent to the initial benefits provided or to be provided hereunder.
Without limiting the generality of the foregoing, the Executive shall be
entitled to the following employee benefits (collectively, with the benefits
contemplated by this Section 4, the "Benefits"):

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4.1   The Executive and the Executive's dependents shall be covered by
medical insurance, with only such contribution by the Executive toward
the cost of such insurance as may be required from time to time from
other executive officers of the Company.

4.2   Life Insurance. Executive shall be entitled to group term life
insurance coverage of $25,000, all premiums being paid by the
Company.

4.3   Long-Term Disability Insurance.  The Company shall maintain in
effect long-term disability insurance providing Executive in the event of
his disability (as defined in Section 3 hereof) with compensation annually
equal to at least $60,000.

4.4   The Executive shall be entitled to legal holidays and to annual paid
vacation aggregating at least three (3) weeks during year one and four
(4) weeks after year one during any calendar year.

4.5   The Company shall reimburse the Executive from time to time for
the reasonable expenses incurred by the Executive in connection with the
performance of his obligations hereunder.

4.6   During such times as the Company is eligible and financially
qualified to obtain the same, the Company shall maintain directors and
officers liability insurance applicable to the Executive in amounts
established by the Board of Directors.

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Notwithstanding the foregoing, the Company may from time to time
change or substitute a plan or program under which one or more of the
Benefits are provided to the Executive, provided that the Company first
obtains the written consent of the Executive, which the Executive agrees
not unreasonably to withhold, taking into account his personal situation.

5.   Termination Date; Consequences for Compensation and Benefits

5.1.   Definition of Termination Date.  The first to occur of the
following events shall  be  the Termination Date:

5.1.1  The date on which the Executive becomes entitled to receive long-
term disability payments by reason of total and permanent disability;

5.1.2. The Executive's death;

5.1.3. Voluntary resignation after one of the following events shall have
occurred, which event shall be specified to the Company by the
Executive at the time of resignation:  material reduction in the
responsibility, authority, power or duty of the Executive or a material
breach by the Company of any provision of this Agreement, which
breach continues for 30 days following notice by the

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Executive to the Company setting forth the nature of the breach
("Resignation with Reason");

5.1.4.  Voluntary resignation not accompanied by a notice of reason
described in Section 5.1.3 ("General Resignation");

5.1.5   Discharge of the Executive by the Company after one of the
following events shall have occurred, which event shall be specified in
writing to the Executive by the Company at the time of discharge:

(i) a felonious act committed by Executive during his employment
hereunder, (ii) any act or omission on the part of Executive not
requested or approved by the Company constituting willful malfeasance
or gross negligence in the performance of his duties hereunder,  (iii)
conviction of the Executive or the entry of a plea of guilty or nolo
contendere by the Executive to any crime involving moral turpitude, (iv)
any material breach of any term of this Agreement by the Executive
which is not cured within 30 days after written notice from the President
of the Company to the Employee setting forth the nature of the breach
("Discharge for Cause");

For purposes of this subparagraph (5.1.5), no act or failure to act on the
Executive's part shall be considered "willful" unless done or omitted to
be done by Executive not in good faith and without reasonable belief that
Executive's action or omission was in the best interest of the

<PAGE>
Company. Notwithstanding the foregoing, Executive shall not be deemed to
have been discharged for Cause unless and until there shall have been
delivered to Executive a copy of a Notice of Termination (as defined
below) from the President of the Company stating that in his good faith
opinion Executive was guilty of conduct set forth in clauses (i), (ii), (iii)
or (iv) above of this subparagraph (5.1.5) and specifying the particulars
thereof in detail.

5.1.6 Discharge of the Executive by the Company not accompanied by
a notice of cause described in Section 5.1.5 ("General Discharge").

For purposes of this Agreement "Notice of Termination" shall mean a
notice which indicates the specific termination provision in this
Agreement relied upon and sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Executive's
employment under the provision so indicated.  Each Notice of
Termination shall be delivered at least sixty (60) days prior to the
effective date of termination.

<PAGE>
5.2   Consequences for Compensation and Benefits

 (a)  If the Termination Date occurs by reason of disability, death,
General Resignation or Discharge for Cause, the Company shall pay
compensation to the Executive through the Termination Date and shall
pay to the Executive all Benefits accrued through the Termination Date,
payable in accordance with the respective terms of the plans, practices
and arrangements under which the Benefits were accrued.

(b) If the Termination Date occurs by reason of General Discharge or
Resignation with Reason, (i) all stock options held by the Executive shall
become immediately exercisable and shall remain exercisable for 30 days
after the Termination Date, (ii) the Company shall continue the health
coverage contemplated by Section 4.1 for a period of 6 months
thereafter, and (iii) the Executive shall be entitled to receive, within 60
days after the Termination Date, the amount set forth in Section 5.2.1.

5.2.1 The Executive's annual base salary at the Termination Date,
multiplied by one half (0.5) (i.e., .5 times base salary).

5.3  Change in Control.  In the event of the occurrence of a Change in
Control (as defined below), this Agreement may be terminated by
Executive upon the occurrence thereafter of one or more of the following
events:

<PAGE>
1) Termination by Executive of his employment with the Company may
be made within (1) year after a Change in Control and upon the
occurrence of any of the following events:

(a.)  A significant adverse change in the nature or scope of the
Executive's authorities, powers, functions, responsibilities or duties as
a result of the Change in Control, a reduction in the aggregate of
Executive's existing Base Salary and existing Incentive Compensation
received from the Company, or termination of Executive's rights to any
existing Executive Benefit to which he was entitled immediately prior to
the Change in Control or a reduction in scope or value thereof without
the prior written consent of Executive;

(b.)  The merger, consolidation or reorganization of the Company or
transfer of all or a significant portion of its business and/or assets (by
liquidation, merger, consolidation, reorganization or otherwise) unless
the successor or successors to which all or a significant portion of its
business and/or assets have been transferred (directly or by operation of
law) shall have assumed all duties and obligations of the Company under
this Agreement pursuant to Section 11.5 hereof; or

(c.) The Company shall relocate its principal executive offices or require
Executive to have as his principal location of work any location which
is in excess of 50 miles from the location thereof immediately prior to
the relocation date or to travel from his office in the course of
discharging his responsibilities or duties hereunder more than thirty (30)

<PAGE>
consecutive calendar days or an aggregate of more than ninety (90)
calendar days in any consecutive 365-calendar day period without in
either case his prior consent.

2)   Subsequent to a change in control of the Company, the failure by
the Company to obtain the assumption of the obligation to perform this
Agreement by any successor as contemplated in Section 11.5 hereof or
otherwise; or

3)   Subsequent to a Change in Control of the Company, any purported
termination of Executive's employment which is not effected pursuant to
a Notice of Termination satisfying the requirement of Section 5.1.5
hereof.

5.3.1  A Change in Control of the Company shall occur upon the first to
occur of the date when (a)  a person or group "beneficially owns" (as
defined in Rule 13d-3 promulgated under the Securities Exchange Act of
1934) in the aggregate 50% or more of the outstanding shares of capital
stock entitled to vote generally in the election of the Directors of the
Company or (b) there occurs a sale of all or substantially all of the
business and/or assets of the Company.

5.3.2   If a Change in Control of the Company shall have occurred
within six (6) months prior to the Termination Date or the Executive
terminates this Agreement under Section 5.3 the Executive will be
entitled to receive, within 60 days after the Termination Date, the
Executive's annual base salary at the

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Termination Date multiplied by one
(1) (i.e., one times base salary), all stock options held by the Executive
shall become immediately exercisable and shall remain exercisable for
30 days after the Termination Date.  The Company shall continue the
health coverage contemplated by Section 4.1 for a period of one (1)
year thereafter.

5.4  Liquidated Damages: No Duty to Mitigate Damages The amounts
payable pursuant to Sections 5.2 and 5.3 shall be deemed liquidated
damages for the early termination of this Agreement and shall be paid
to the Executive regardless of any income the Executive may receive
from any other employer, and the Executive shall have no duty of any
kind to seek employment from any other employer during the balance of
the Term.

6.   Indemnification

To the fullest extent permitted by law, the Company shall indemnify the
Executive and hold him harmless from and against all loss, cost, liability
and expense (including reasonable attorney's fees) arising from the
Executive's service to the Company or any Affiliate, whether as officer,
director, employee, fiduciary of any employee benefit plan or otherwise.

<PAGE>
7.   Agreement Not to Compete

The Executive agrees that, while serving as an Executive of the
Company, he will not, without the written consent of the President of the
Company, serve as an employee or director of any business entity other
than the Company and its Affiliates, but may serve as a director of a
reasonable number of not-for-profit corporations and may devote a
reasonable amount of  time to charitable and community service.

8.   Agreement Not to Solicit

For one year following any Termination Date, regardless of the reason,
the Executive shall not solicit any employee of the Company or an
Affiliate to leave such employment and to provide services to the
Executive or any business entity by which the Executive is employed or
in which the Executive has a material financial interest.  Soliciting a
former employee of the Company and its Affiliates to provide such
services shall not be a violation of this Agreement.

9.   Confidential Information

Unless the Executive shall first secure consent of the Company, the
Executive shall not disclose or use, either during or after the Term for
a period of five (5) years, any secret or confidential information of the
Company or

<PAGE>
any Affiliate, whether or not developed by the Executive,
except as required by his duties to the Company or the Affiliate.

Executive will sign a Confidential Disclosure and Limited Use
Agreement, which shall control over this Agreement if any conflict exists
between it and this Agreement.

10.   Arbitration

Any dispute or differences concerning any provision of this Agreement
which cannot be settled by mutual accord between the parties shall be
settled by arbitration in Dallas, Texas in accordance with the rules then
in effect of the American Arbitration Association, except as otherwise
provided herein.  The dispute or differences shall be referred to a single
arbitrator, if the parties agree upon one, or otherwise to three
arbitrators, one to be appointed by each party and a third arbitrator to
be appointed by the first named arbitrators; and if either party shall
refuse or neglect to appoint an arbitrator within 30 days after the other
party shall have appointed an arbitrator and shall have served a written
notice upon the first mentioned party requiring such party to make such
appointment, then the arbitrator first appointed shall, at the request of
the party appointing him, proceed to hear and determine the matters in
difference as if he were a single arbitrator appointed by both parties for
the purpose, and the award or determination which shall be made by the
arbitrator shall be final and binding upon the parties hereto.

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The arbitrator or arbitrators shall each have not less than five-(5) year's
experience in dealing with the subject matter of the dispute or
differences to be arbitrated. Any award maybe enforced in any court of
competent jurisdiction.  The expenses of any such arbitration shall be
paid by the non-prevailing party, as determined by the final order of the
arbitrators.

11.   Miscellaneous

11.1   Notices

All notices in connection with this Agreement shall be in writing and
sent by postage prepaid first class mail, courier, or telefax, and if
relating to default or termination, by certified mail, return receipt
requested, addressed to each party at the address indicated below:

If to the Company:
Access Pharmaceuticals Inc.
2600 Stemmons Frwy.
Suite 176
Dallas, TX 75207
Attn: Chief Financial Officer

Copy To:
John J. Concannon III, Esq.,

<PAGE>
Bingham Dana LLP
150 Federal Street
Boston, MA 02110

If to the Executive:
David P. Nowotnik, Ph.D.
1018 San Jacinto Drive
Apt. #1516
Irving, TX 75063

Or to such other address as the addressee shall last have designated by
notice to the communicating party.  The date of giving of any notice
shall be the date of actual receipt.

11.2   Governing Law

This Agreement shall be deemed a contract made and performed in the
State of Texas, and shall be governed by the internal and substantive
laws of the State of Texas.

11.3   Severability

Whenever possible, each provision of this Agreement shall be interpreted
in such manner as to be effective and valid under applicable law, but if
any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or in the

<PAGE>
interpretation in any other jurisdiction;
however, such provision shall be deemed amended to conform to
applicable laws and to accomplish the intentions of the parties.

11.4   Entire Agreement; Amendment

This Agreement and the offer letter dated October 23, 1998, constitutes
the entire agreement of the parties and may be altered or amended or
any provision hereof waived only by an agreement in writing signed by
the party against whom enforcement of any alteration, amendment, or
waiver is sought.  No waiver by an party of any breach of this
Agreement shall be considered as a waiver of any subsequent breach.

11.5   Successors and Assigns

11.5.1   The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to expressly
assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no
such succession had taken place.  Failure of the Company to obtain such
agreement prior to the effectiveness of any such succession shall be a
breach of this Agreement and shall entitle Executive to compensation
from the Company in the same amount and on the same terms as
Executive would be entitled hereunder if Executive terminated his

<PAGE>
employment for Change of Control.  As used in this Section 11.5.1,
"Company" shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which executes and
delivers the Agreement provided for in this Section 11.5.1 or which
otherwise becomes bound by all the terms and provisions of this
Agreement by operation of law.

11.5.2   This Agreement is intended to bind and inure to the benefit of
and be enforceable by Executive and the Company, and their respective
successors and assigns, except that Executive may not assign any of his
rights or delegate any of his duties without the prior written consent of
the Company.

11.6   Assignability

Neither this Agreement nor any benefits payable to the Executive
hereunder shall be assigned, pledged, anticipated, or otherwise alienated
by the Executive, or subject to attachment or other legal process by any
creditor of the Executive, and notwithstanding any attempted assignment,
pledge, anticipation, alienation, attachment, or other legal process, any
benefit payable to the Executive hereunder shall be paid only to the
Executive or his estate.

<PAGE>
IN WITNESSES WHEREOF, the Company and its officers hereunto
duly authorized, and the Employee have signed and sealed this
Agreement as of the date first written above.

                                    ACCESS PHARMACEUTICALS, INC.
BY: /s/ David P. Nowotnik, Ph.D.    BY: /s/ Kerry P. Gray
   ----------------------------        ------------------------
    David P. Nowotnik, Ph.D.            Kerry P. Gray
    Title: Executive                    Title: President & CEO

    Date:  12/21/99                     Date: 11/10/99
          ----------                         ---------

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