Document:

ASSET SALE AGREEMENT

                         Dated:  26 February 2002

                               BETWEEN

                           BIOA PTY LIMITED

                                 AND

                             BIOTECHNOLOGY
                          AUSTRALIA PTY LIMITED

                                 AND

                 ACCESS PHARMACEUTICALS AUSTRALIA PTY LIMITED

                                 AND

                       ACCESS PHARMACEUTICALS, INC.

                                 AND

                       HUMAN THERAPEUTICS LIMITED

                         DIBBS BARKER GOSLING
                                Lawyers
                        Level 8 123 Pitt Street
                            SYDNEY NSW 2000
                             DX 101 Sydney
                         Tel:+61 2 8233 9500
                         Fax:+61 2 8233 9555
                         Ref:  GRC/JPR/3061160

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                           TABLE OF CONTENTS

1.   DEFINITIONS AND INTERPRETATION          1
2.   SALE OF ASSETS                          6
3.   PURCHASE CONSIDERATION                  6
4.   CONDUCT PENDING COMPLETION              7
5.   TITLE AND POSSESSION                    8
6.   COMPLETION                              8
7.   EMPLOYEES                               9
8.   POST COMPLETION                        10
9.   VENDORS' WARRANTIES                    12
10.  MUTUAL REPRESENTATIONS AND WARRANTIES  13
11.  LIMITATION OF LIABILITY                14
12.  NO MERGER                              16
13.  NOTICES                                16
14.  COSTS                                  18
15.  ENTIRE AGREEMENT                       18
16.  NO WAIVER                              18
17.  GOVERNING LAW AND JURISDICTION         18
18.  COUNTERPARTS                           18
19.  GST                                    19
20.  WITHHOLDING TAX                        19
21.  GUARANTEE                              19
22.  ASSIGNMENT                             22

SCHEDULE 1 PLANT AND EQUIPMENT
SCHEDULE 2 INTELLECTUAL PROPERTY
SCHEDULE 3 EMPLOYEES
SCHEDULE 4 WARRANTIES
SCHEDULE 5 SCHEDULE OF EXCEPTIONS
SCHEDULE 6 ASSIGNMENT DEED
SCHEDULE 7 FORM OF WARRANT

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                         ASSET SALE AGREEMENT

THIS AGREEMENT dated 26 February 2002

BETWEEN   BIOA PTY LIMITED (formerly known as BIOTECH
          AUSTRALIA PTY LIMITED) ABN 52 003 804 984 ("BA") and
          BIOTECHNOLOGY AUSTRALIA PTY LIMITED (to be known as
          BlOB PTY LIMITED) ABN 32 001 521 866
          ("Biotech") each of 28 Barcoo Street, Roseville, NSW 2069

AND       ACCESS PHARMACEUTICALS AUSTRALIA PTY
          LIMITED ACN 099 593 898 of 23 Greenfield Avenue, Middle Cove,
          NSW 2068 (the "Purchaser")

AND       ACCESS PHARMACEUTICALS, INC. of 2600 Stemmons
          Freeway, Suite 176, Dallas, TEXAS, 75207-2107, United States of
          America ("AccessUSA")

AND       HUMAN THERAPEUTICS LIMITED ABN 36 008 540 556 of
          28 Barcoo Street, Roseville, NSW 2069 ("HTLA")

RECITALS

A.   The Vendors are the legal and beneficial owners of the Assets.

B.   The Vendors have agreed to sell and the Purchaser has agreed to
purchase the Assets on the terms and conditions contained in this
agreement.

C.   AccessUSA has agreed to guarantee the performance by the
Purchaser of the Guaranteed Obligations under this agreement.

D.   HTLA has agreed to guarantee the performance by the Vendors of
the Vendors' Obligations under this agreement.

OPERATIVE PROVISIONS

1. DEFINITIONS AND INTERPRETATION

1.1   Definitions

In this agreement, including the recitals, unless contrary to or
inconsistent with the context:

"Assignment Deed" means the deed of assignment and consent between
Biotech, BA, the Purchaser, AccessUSA and GroPep a copy of which
is attached as schedule 6.

"Accrued Entitlements" means accrued but unpaid annual leave, sick
leave and long service leave entitlements of the Employees as at
Completion.

"Assets" means:

(a)   the Plant and Equipment; and

(b)   the Intellectual Property,

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but no other assets or property of the Vendors.

"AMEX" means the American Stock Exchange.

"Authorised Officer" means a director or secretary of a Party or any
person appointed by a Party whose title or office includes the word
"manager", "executive" or "vice president" or a person performing the
functions of any of them and who has the power and authority to act on
behalf of such Party.

"Average Selling Price" means the volume weighted average selling
price for the shares of AccessUSA sold on market on AMEX during
the 20 Business Days immediately prior to Completion.

"Business" means the business currently undertaken by BA and Biotech
of research and development of drug delivery technology including the
VB12 Platform Technology, folate targeting technology and nano-
particle networks with a view to commercialisation.

"Business Day" means a day on which AccessUSA's shares were able
to be traded on AMEX, excluding Saturdays and Sundays.

[*] means [*] of [*].

"[*] Agreement" means the Material Transfer Agreement between
[*] and BA dated 29 March 2001, which terminated as of 15
February 2002.

"[*] Payments" means any payments from [*] to the
Purchaser or AccessUSA for a licence in relation to the subject matter
of the [*] Agreement which total [*].

"Claim" means any, claim, action, proceeding, notice, litigation,
investigation, judgment or demand made whether based in contract,
tort, statute or otherwise.

"Completion" means completion of the sale and purchase of the Assets
contemplated in this agreement that will occur on the Completion Date.

"Completion Date" means 27 February 2002 or such other date the
Parties may agree in writing.

"Completion Steps" means those actions or events specified in clause
6.4.

"Confidentiality Agreement" means the confidentiality agreement
between the Vendors and AccessUSA dated 18 July 2001.
"Employee" means each of the people whose names are set out in
schedule 3.

"Employee Entitlements" means the Accrued Entitlements together with
all salary, wages, annual leave, sick leave, long service leave,
employer superannuation contributions and any other benefits or
entitlements due to or accrued by Employees after Completion.

"Employee Payment" means the payment for salary, wages and
employer superannuation contributions due to or for the Employees up
to and including the date of Completion.

* Confidential Portions have been omitted and are on file separately
with the Commission.

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"Encumbrance" means:

(a)   a mortgage, pledge, lien, charge, claim, covenant, assignment by
way of security, hypothecation, secured interest, title retention
arrangement, preferential right, trust arrangement, (including without
limitation, any set-off or "flawed-asset" arrangement having the same
or equivalent commercial effect as a grant of security); or

(b)   other interest including any right of any person to purchase,
occupy or use any of the Assets whether under an option, agreement to
purchase, licence, lease, hire-purchase, pre-emptive right or right of
first refusal or otherwise.

"Escrow Period" means the period from completion until the date 1
year after Completion during which the Vendors may not sell, transfer,
assign or part with the benefit of the Shares.

"GroPep" means GroPep Limited ACN 008 176 289.

"GST Act" means the "A New Tax System (Goods and Services Tax)
Act 1999 (Cth)".

"Guaranteed Obligations" means all express obligations to be observed
or performed by or on behalf of the Purchaser under this agreement.

"Intellectual Property" means:

(a)   the VB12 Patents; and

(b)   all proprietary rights, confidential information and know how in
respect of the rights referred to in paragraph (a), including all
copyrights, designs, production records, technical information,
laboratory notebooks, manufacturing know-how, trade secrets, mask
works, methods, processes and any licences, other agreements and
applications with respect to the forgoing.

"Liabilities" means all liabilities (whether actual, contingent or
prospective), losses (whether consequential, incidental or economic),
lost profits, damages, outgoings, costs and expenses of whatever
description including reasonable attorneys' fees and costs relating
thereto or relating to the defence of a Claim.

"Licence Agreement" means the licence agreement between GroPep
and the Purchaser dated on or about the date of Completion in relation
to part of the Property.

"Plant and Equipment" means the plant and equipment listed in
schedule 1.

"Property" means the whole of the land contained in certificates of title
folio identifiers 1/217498 and 3/217498 and known as 28 Barcoo
Street, Roseville, NSW 2069.

"Purchase Consideration" is defined in clause 3.

"Records" means those records, files and correspondence belonging to
or used by the Vendors which relate directly or indirectly to the Assets.

"Related Body Corporate" has the meaning given to that term by the
Corporations Act 2001.

"Schedule of Exceptions" means the schedule of exceptions to the
Warranties set out in Schedule 5.

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"SEC" means the Securities and Exchange Commission of the United
States of America.

"Shares" means the number of shares of common stock in AccessUSA
determined by dividing US$750,000 by the Average Selling Price.

"[*]" means [*].

"[*] Agreement" means a licence agreement
between the Purchaser, or Related Body Corporate of the Purchaser or
AccessUSA and [*] (or a Related Body Corporate
of [*]) relating to applications of the VB12
Platform Technology in relation to [*] (but not including
in relation to undertaking development research to determine if
[*] will enter into such an agreement).

"Vendors" means BA and Biotech.

"VB12 Patents" means the granted and pending patents, the patent
applications, enhancements and improvements in respect of the VB12
Platform Technology set out in schedule 2.

"VB12 Platform Technology" means the use of vitamin B12 and folate:

(a)   to target anti-cancer agents to tumours;

(b)   to facilitate the uptake of orally administered drug or biologically
active substances into the blood stream;

(c)   to enhance the targeting of other therapeutic agents;

(d)   in any manner relating to the subject matter of the VB12 Patents;
and

(e)   in any manner directly or indirectly relating to paragraphs (a) - (d)
above.

"Vendors' Obligations" means all express obligations to be observed or
performed by or on behalf of the Vendors under this agreement.

"Warranties" means the representations and warranties of the Vendors
set out in schedule 4.

"Warrants" means 25,000 warrants to purchase shares of common stock
of AccessUSA each with an exercise price of US$5.00 and each
exercisable at any time between the date which is 1 year after
Completion and the date which is 3 years after Completion,
substantially in the form of schedule 7.

1.2   Interpretation

In this agreement, including the recitals, unless contrary to or
inconsistent with the context:

(a)   words importing:

(i)   the singular include the plural and vice versa; and

(ii)   a gender includes every other gender;

* Confidential Portions have been omitted and are on file separetly
with the Commission.

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(b)   a reference to a party or person includes a reference to that party
or person, its successors, substitutes (including, but not limited to, a
party or person taking by novation), executors, administrators and
assigns;

(c)   a reference to any thing or matter is a reference to the whole and
any part of it;

(d)   the word "person" includes a corporation and vice versa; an
expression importing a natural person includes any company,
partnership, joint venture, association, corporation or other body
corporate and any governmental agency;

(e)   a reference to a group of persons or parties is a reference to any
two or more of them jointly and to each of them individually;

(f)   a covenant, representation or warranty in favour of two or more
persons is for the benefit of them jointly and severally;

(g)   a covenant, representation or warranty on the part of two or more
persons binds them jointly and severally;

(h)   a reference to this agreement or other document includes any
variation, novation or replacement of or supplement to any of them
from time to time;

(i)   where any clause contains sub-clauses, paragraphs or sub-
paragraphs, each sub-clause, paragraph and sub-paragraph however
called will be read and construed separately and independently of any
other;

(j)   a reference to a document includes without any limitation any deed
or agreement in writing, certificate, notice or other instruction of any
kind;

(k)   a reference to A$ means the lawful currency of Australia;

(1)   a reference to US$ means the lawful currency of the United States
of America;

(m)   a reference to STGL means the lawful currency of the United
Kingdom;

(n)   "writing" and related expressions includes all means of
reproducing words in a tangible and permanently visible form;

(o)   headings are inserted only for guidance and do not affect the
interpretation of this agreement;

(p)   a reference to any statute, regulation, proclamation, ordinance or
by-law includes all statutes, regulations, proclamations, ordinances or
by-laws amending, consolidating or replacing them and a reference to a
statute includes all regulations, proclamations, ordinances and by-laws
made or issued under that statute;

(q)   a reference to a body other than a party to this agreement:

(i)   which ceases to exist; or

(ii)   the powers or functions of which are transferred to another body,

<PAGE>
is a reference to the body which replaces it or which substantially
succeeds to its powers or functions;

(r)   no rule of construction applies to the disadvantage of a party
because that party was responsible for the preparation of this
agreement; and

(s)   all references to accounting and financial terms have the meaning
commonly given to them in accordance with the accounting principles
generally accepted in Australia (in the case of Australian matters or
references) or the United States (in the case of United States matters or
references).

2.   SALE OF ASSETS

The Vendors as beneficial owners agree to sell and assign the Assets to
the Purchaser free from any Encumbrance and the Purchaser agrees to
purchase and acquire the Assets free from any Encumbrance, as at and
with effect from Completion for the Purchase Consideration.

3.   PURCHASE CONSIDERATION

3.1   Purchase Consideration

The Purchase Consideration is the total of all payments required to be
made by the Purchaser to the Vendor pursuant to this clause 3.

3.2   Payment Obligations
(a)   At Completion, the Purchaser must pay US$500,000 by cash or
bank cheque or electronic funds transfer to the Vendors or as they
direct in writing.

(b)   At Completion, or as soon as practicable after Completion, the
Purchaser must procure the issue of the Shares to the Vendors or as
they direct in writing.

(c)   At Completion, or on a date after Completion specified in writing
by the Vendors, the Purchaser must procure the issue of the Warrants
to the Vendors or as they direct in writing.

(d)   Within 3 Business Days of entering into the [*]
Agreement, the Purchaser must pay US$100,000 by cash
or bank cheque of electronic funds transfer to the Vendors or as they
direct in writing.

(e)   Within 3 Business Days of the Purchaser or AccessUSA or any
Related Body Corporate of the Purchaser or AccessUSA receiving the
[*] Payments, the Purchaser must pay US$250,000 by cash or
bank cheque or electronic funds transfer to the Vendors or as they
direct in writing.

(f)   On the date which is 1 year after Completion, the Purchaser must
pay US$175,000 by cash or bank cheque or electronic funds transfer to
the Vendors or as they direct in writing.

(g)   On the date which is 2 years after Completion, the Purchaser must
pay US$175,000 by cash or bank cheque or electronic funds transfer to
the Vendors or as they direct in writing.

* Confidential Portions have been omitted and are on file separetly
with the Commission.

<PAGE>
(h)   On the date which is 3 years after Completion, the Purchaser must
pay US$175,000 by cash or bank cheque or electronic funds transfer to
the Vendors or as they direct in writing.

4.   CONDUCT PENDING COMPLETION

4.1   Vendors' Conduct

Until Completion, the Vendors must not, without the prior consent of
the Purchaser:

(a)   create any Encumbrance over any part of the Assets (other than a
charge over the Intellectual Property in favour of GroPep, which, if
granted, will be discharged on Completion);

(b)   sell or license any Assets;

(c)   increase the compensation payable to any Employee, or increase
any bonus, insurance, pension or other benefit plan, payment or
arrangement made to or with any Employee; or

(d)   do any act or omit to do any act, or permit any act or omission to
act, which will cause a material breach of any contract, commitment or
obligation related to the Assets or the Business.

Until the earlier of Completion or March 31, 2002, the Vendors must
not, without the prior consent of the Purchaser, negotiate for, solicit, or
enter into any agreement with respect to the sale of the capital stock of
the Vendors or any substantial portion of the Assets or any merger or
other business combination of the Vendors, to or with any person other
than the Purchaser and AccessUSA; provided, however, that the
Vendors may negotiate with and enter into an agreement with GroPep
regarding the proposed transactions among those parties as previously
disclosed to the Purchaser and AccessUSA.

4.2   Vendors' Obligations

Until Completion, the Vendors must:

(a)   comply with all laws, regulations and orders applicable with
respect to the Business and the Assets or as may be required for the
valid and effective transfer of the Assets;

(b)   maintain with financially sound and reputable insurance
companies, funds or underwriters adequate insurance of the kinds,
covering such risks and in such amounts and with such deductibles and
exclusions as are consistent with prudent business practice with respect
to the Business and the Assets;

(c)   promptly advise the Purchaser and AccessUSA in writing of any
material adverse change in the condition of any of the Assets or the
Business; and

(d)   use their best endeavours to discharge or remove any current
Encumbrance on any of the Assets.

4.3   Vendors' Assistance

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Subject to any confidentiality obligations owed by the Vendors or its
Related Bodies Corporate, the Vendors must, until Completion, comply
with all reasonable requests to:

(a)   supply to the Purchaser or its representative any information in its
possession or control relevant to the Assets or the Employees; and

(b)   assist the Purchaser to gain knowledge of or concerning the
Employees or the operation of the Assets.

4.4   Confidentiality

Any and all information disclosed by any of the parties to this
agreement to any of the other parties to this agreement as a result of
the negotiations leading to the execution of this agreement, or in
furtherance thereof, which information was not already publicly known
to such receiving party, shall remain confidential to each such party and
its respective employees and agents. Each of the parties to this
agreement agrees not to further divulge or disclose or use for its benefit
or purposes any such information at any time in the future unless such
information has otherwise entered the public domain.

5.   TITLE AND POSSESSION

5.1   Title

Title to the Assets will pass to the Purchaser at Completion free of any
Encumbrance.

5.2   Possession

Possession of the Assets and risk related to the Assets will be given and
taken at Completion.

6.   COMPLETION

6.1   Time for Completion

Completion is to take place beginning at 11.00 a.m. (Sydney time) on
the Completion Date at the Sydney offices of Dibbs Barker Gosling,
solicitors for the Vendors.

6.2   Completion Steps

Completion will occur when each of the Completion Steps have been
completed to the satisfaction of the parties. Each of the Completion
Steps is interdependent. No Completion Step will be effective unless
each other Completion Step is completed and Completion takes place.

6.3   Reasonable Endeavours

Each party will use all reasonable endeavours prior to Completion to
ensure that all relevant parties will be in a state of preparedness to
complete the Completion Steps on the Completion Date.

6.4   Obligations at Completion

At Completion the following events must occur in sequential order and
the parties agree to take all such steps and do all such things as are
necessary on their respective parts to ensure that:

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(a)   the Vendors deliver to the Purchaser:

(i)   possession and control of the Assets including duly executed
transfers required to vest any of the Assets in the Purchaser;

(ii)   certificates or other evidence of title to the Assets;

(iii)   any required consents to the transfer of the Assets or VB12
Patents;

(iv)   the Records, except that the Vendor may keep copies of any
Records required to be maintained pursuant to any statutory or
regulatory requirement; and

(v)   any other document that will be reasonably necessary to give full
effect to the agreement and the assignment of the Assets to the
Purchaser;

(b)   the Purchaser:

(i)   pays to the Vendors (or as they direct in writing) the portion of the
Purchase Consideration in accordance with clause 3.2(a);

(ii)   procures the issue of the Shares to the Vendors (or as the they
direct in writing) in accordance with clause 3.2(b);

(iii)   procures the issue of the Warrants to the Vendors (or as they
direct in writing) in accordance with clause 3.2(c);

(iv)   delivers to the Vendors a duly executed counterpart of the
Assignment Deed;

(v)   delivers to the Vendors written notice addressed to Dibbs Barker
Gosling from AccessUSA or Bingham Dana LLP, counsel to
AccessUSA, that Completion has occurred and that funds held by Dibbs
Barker Gosling on behalf of AccessUSA may be paid to, or as directed
by, the Vendors as the Purchase Consideration payable at Completion;
and

(c)   the parties and GroPep will exchange and date fully executed
counterpart copies of the Assignment Deed and the Licence Agreement;

(d)   all other obligations to be performed by them on Completion
under any other clause of this agreement are performed;

(e)   any act or other document or thing reasonably necessary to give
full effect to this agreement and the sale and assignment of the Assets
by the Vendor is done or executed as the case may be.

7.   EMPLOYEES

7.1  Offer

As soon as practicable after the date of this agreement but before
Completion, the Purchaser must offer employment in writing to the
Employees which will (unless otherwise agreed by the Parties):

<PAGE>
(a)   commence as from close of business on Completion;

(b)   involve the same duties as are undertaken by each Employee prior
to Completion;

(c)   be on terms no less favourable to those on which each Employee
is employed by the Vendors prior to Completion; and

(d)   set out the Purchaser's undertaking to treat any period of service
with the Vendors as service with the Purchaser.

7.2   Vendors' Obligations

The Vendors shall use reasonable endeavours to encourage the
Employees to accept the offers of employment made in accordance with
clause 7.1.

7.3   Employee Payment

On or before the fifth Business Day after Completion, the Vendors
must pay the Employee Payment to or for the Employees and the
Vendors must indemnify and keep indemnified the Purchaser and
AccessUSA against any claim against the Purchaser or AccessUSA in
respect of the Employee Payment and any other matters relating to any
of the Employees occurring prior to Completion.

7.4  Purchaser Indemnity

The Purchaser will from Completion treat the Employees and deal with
their Accrued Entitlements as if the Accrued Entitlements had been
accrued by the relevant Employee while in the employment of the
Purchaser. The Purchaser must indemnify and keep indemnified the
Vendors against each Claim against the Vendors in respect of the
Employee Entitlements.

7.5   Superannuation

The parties agree to use their best endeavours to preserve all
entitlements, if any, of the Employees under the superannuation funds
managed by Biotech Australia Defined Benefits Plan Pty Limited ACN
065 190 945 and Biotech Australia Accumulated Plan Pty Limited ACN
065 188 258, as applicable and the parties agree to use their reasonable
endeavours to ensure that the superannuation entitlements of all
Employees shall be rolled over into superannuation funds selected or
offered by the Purchaser and nominated by each Employee.

7.6   Leslie Horvath

Notwithstanding anything to the contrary in this agreement, and
notwithstanding Completion occurring, the Purchaser must leave the
offer of employment it has made to Leslie Horvath open for acceptance
until 3.00 pm 5 March 2002.

8.   POST COMPLETION

8.1   Post Completion Accessibility

After Completion, the Purchaser must give the Vendors or any
professional adviser to the Vendors who has the Vendors' written
authority (and who has executed a confidentiality agreement which
imposes obligations of confidentiality similar to those imposed on the
Vendors pursuant to the Confidentiality Agreement), access during
normal business hours, to examine

<PAGE>
and, if desired, copy at the Vendors' expense the Records to the extent
specifically requested and to the extent necessary for the Vendors to
comply with applicable law and to prepare tax or other returns required
of them by law.

8.2   Further Assurances

The Parties undertake to use commercially reasonable endeavours to do
all acts and execute all documents necessary or desirable to give effect
to the transactions contemplated by this agreement, including without
limitation the effective and valid issue of the Shares and Warrants.

8.3   Intellectual Property

(a)   The Vendors must take all steps and do all things as are necessary
to deliver to the Purchaser certificates of registration and duly executed
assignments of the Patents (in registrable form if required to record a
change of ownership).

(b)   If required by the Purchaser, the Vendors will take all reasonable
steps to procure the reinstatement of the registration in respect of any
VB12 Patent in which such registration may have lapsed.

(c)   Any costs incurred by the Vendors in complying with clause
8.3(b) must be reimbursed on demand by the Purchaser and the
Purchaser must indemnify and keep indemnified the Vendors against all
costs incurred in relation to any steps taken under clause 8.3(b).

8.4   Lodgement of Registration Statements

(a)   After Completion, the Purchaser must lodge (or procure the
lodgement of) a Registration Statement on Form S-3 with the SEC by
30 June 2002 to register the resale of the Shares and the Purchaser
must take all reasonable steps to ensure the Shares are registered and
tradeable on AMEX under the Registration Statement at the end of the
Escrow Period.

(b)   After Completion, the Purchaser must lodge (or procure the
lodgement of) a Registration Statement on Form S-3 with the SEC by
30 June 2002 to register the Shares resulting from the exercise of the
Warrants and the Purchaser must take all reasonable steps to ensure the
Shares resulting from the exercise of the Warrants are registered and
tradeable on AMEX under the Registration Statement at the end of the
Escrow Period.

8.5   [*] Agreement

(a)   The Purchaser must use its reasonable endeavours to enter into the
[*] Agreement as soon as practicable.

(b)   The Vendors must provide such reasonable assistance to the
Purchaser (at the Purchasers cost) for the purpose of clause 8.5(a) as
reasonably requested by the Purchaser.

(c)   The Purchaser must keep the Vendors reasonably informed of its
endeavours to enter into the [*] Agreement and
provide the Vendors with an information reasonably requested by the
Vendors in relation to the progress of entry

* Confidential Portions have been omitted and are on file separetly
with the Commission

<PAGE>
into the [*] Agreement and assistance necessary
for the Vendors to determine if the [*] Agreement
has been entered.

8.6   [*] Payments

The Purchaser must provide the Vendors with any information
reasonably requested by the Vendors in relation to the [*]
Payments including any information necessary to determine if the
[*] Payments have been made.

9.   VENDORS' WARRANTIES

9.1   Vendor's Warranties

Subject to clause 9.2 and clause 11, the Vendors represent and warrant
to the Purchaser and AccessUSA that each of the Warranties are true
and correct as at the date of this agreement and will be true and correct
at Completion.

9.2   Exceptions

The Warranties are given subject to and are qualified by those matters:

(a)   recorded in this agreement;

(b)   specifically set forth in the Schedule of Exceptions.

and the Purchaser may not claim that any fact or matter causes any of
the Warranties to be untrue or misleading or causes them to be
breached if the fact or matter is recorded in this agreement, disclosed
in the Schedule of Exceptions.

9.3   Indemnity

Subject to clause 11, the Vendors must indemnify the Purchaser:

(a)   from all Liabilities which the Purchaser suffers or incurs directly
or indirectly arising by reason of or in connection with:

(i)   any of the Warranties being untrue or inaccurate in any respect;

(ii)   any other covenant or representation of the Vendors in this
agreement being untrue or inaccurate in any material respect; or

(iii)   any failure by a Vendor to fulfil its obligations under this
agreement; and

(b)   from all Claims made by a third party in relation to:

(i)   a matter which constitutes, or in circumstances that constitute, a
breach of or inaccuracy in any of the Warranties or any other covenant
or representation of the Vendors in this agreement;

(ii)   any failure by a Vendor to fulfil its obligations under this
agreement;

* Confidential Portions have been omitted and are on file separetly with
the Commission.

<PAGE>
(iii)   any and all claims, liabilities and obligations arising out of the
use or operation of the Assets or the Business on or prior to
Completion including but not limited to:

(A)   any Liabilities for the clean up or removal of or for death or
injury to person or property (to the extent not covered by insurance) as
a result of the release, emission or discharge of any hazardous
substance, hazardous waste, toxic pollutants or other chemical by-
products relating to or affecting the Assets, the Premises (as such term
is defined in the Licence Agreement), which Liability arises out of any
matter that occurred or existed on or before Completion; or

(B)   any Liabilities for death or injury to person or property to the
extent not covered by insurance as a result of any actual or alleged
defect in any product sold or manufactured by the Vendors on or prior
to Completion;

(iv)   any claim or liability arising under the bulk sales laws of any
jurisdiction in connection with transactions contemplated by this
agreement;

(v)   any Liabilities with respect to any Employee in connection with
his or her employment or termination of employment on or prior to
Completion by the Vendors (including but not limited to those Claims
referred to in clause 7.3 but excluding any claims referred to in clause
7.4); and

(vi)   all actions, suits, proceedings, demands, assessments, judgments,
costs and expenses incidental to any of the foregoing including without
limitation reasonable attorney's fees and expenses.

9.4   Inducement of Purchaser

The Vendors acknowledge that:

(a)   they have made and given the Warranties to induce the Purchaser
to enter into this agreement; and

(b)   the Purchaser has entered into this agreement in full reliance on
the Warranties.

9.5   Application of Warranties

Each of the Warranties:

(a)   remains in full force after Completion; and

(b)   is separate and independent and not limited or restricted by any
other Warranty or provision of this agreement.

10.   MUTUAL REPRESENTATIONS AND WARRANTIES

Each party represents and warrants to the other parties that each of the
following statements insofar as they are applicable to that party is true
and correct and will be true and correct at Completion:

<PAGE>
(a)   (status) it has been duly incorporated or created as the case may
be and is validly existing under the laws of the place of its
incorporation or creation;

(b)   (power) subject to obtaining any shareholder approval required, it
has the power to enter into and perform its obligations under this
agreement, to carry out the transactions contemplated by this agreement
and to carry on its business as now conducted or contemplated;

(c)   (corporate authorisations) it has taken all necessary action to
authorise the entry into and performance of this agreement and to carry
out the transactions contemplated by this agreement;

(d)   (documents binding) this agreement creates valid and binding
obligations enforceable in accordance with their terms, subject to any
necessary stamping and registration; and

(e)   (transactions permitted) the execution and performance by it of
this agreement and each transaction contemplated under this agreement
did not and will not violate in any respect a provision of:

(i)   a law or treaty or a judgment, ruling, order or decree of a
government or governmental authority or agency binding on it;

(ii)   its memorandum or articles of association, constitution or other
constituent documents; or

(iii)   any other document or agreement which is binding on it or its
assets.

11.   LIMITATION OF LIABILITY

11.1   Exclusions

The Purchaser agrees with the Vendors that:

(a)   the only representations and warranties on which the Purchaser
and AccessUSA have relied in entering into this agreement are those set
out in this agreement in schedule 4;

(b)   to the extent permitted by law, all other warranties,
representations and undertakings (whether express or implied and
whether oral or in writing) made or given by the Vendors or their
respective employees, agents or representatives are expressly excluded;
and

(c)   the only person entitled to make a Claim for breach of Warranty
under this agreement is the Purchaser and then only strictly in
accordance with and subject to the provisions of this agreement.

11.2   Indemnity limitations

Despite any other provision of this agreement, the Vendors have no
Liability to the extent that:

(a)   any amount the subject of a Claim is unconditionally and
irrevocably recovered by the Purchaser under an insurance policy;

<PAGE>
(b)   the Claim has arisen as a result of an act or omission of the
Purchaser after Completion (except to the extent that the act or
omission arose as a result of a request of the Vendors).

11.3   Limits on Claims

The Purchaser may not make a Claim against the Vendors for a breach
of any Warranty or under the indemnities in clause 9.3:

(a)   unless notice (containing particulars sufficient to identify the
nature and alleged base of the Claim to the extent known to the
Purchaser) of the Claim is given by the Purchaser to the Vendors on or
before 31 December 2004; and

(b)   until the aggregate of all Claims for breach of Warranties under
this agreement exceeds A$50,000, in which case the Purchaser can
claim in respect of the full amount and not just in respect of the extent
to which the Claim or Claims exceed A$50,000.

11.4   Maximum aggregate liability for Claims

The maximum Liability of the Vendors (excluding legal costs and
expenses incurred in defending a Claim from a third party) as a result
of Claims for breach of Warranties or under the indemnities in clause
9.3 is limited to the Purchase Consideration.

11.5   Notice of potential Claim

As soon as is reasonably possible after a party first becomes aware of
anything which is or may be reasonably likely to give rise to a Claim
under this clause 11:

(a)   it must notify the other parties in writing of that fact, together
with all available details; and

(b)   it must, as and when requested by other parties, provide to those
other parties any information and details which those other Parties
reasonably require.

Failure to give such notice shall not relieve the parties to be notified of
their respective obligations (under clause 9 and this clause 11) except to
the extent, if at all, that such parties were actually materially harmed
by the delay or failure to receive such notice.

11.6   Rights of the Vendors

In respect of any act, matter or thing, notified by the Purchaser under
clause 11.3(a) or by any Party under clause 11.5, the Purchaser will:

(a)   conduct any legal or other proceedings or any negotiations in
consultation with the Vendors; and

(b)   act reasonably in the conduct of those proceedings and/or
negotiations.

11.7   Notification of credit by Purchaser

If any payment in respect of a Claim under the Warranties is made to
the Purchaser by or on behalf of the Vendors and after payment is
made the Purchaser receives any benefit or credit by reason of the
matters to which the Claim relates, then the Purchaser:

<PAGE>
(a)   must immediately notify the Vendors of the benefit or credit; and

(b)   pay to the Vendors an amount equal to that paid to the Purchaser
by or on behalf of the Vendors or (if less) the amount of the benefit or
credit received by the Purchaser.

12.   NO MERGER

The provisions of this agreement capable of having effect after
Completion do not merge on Completion and continue to have full
effect.

13.   NOTICES

13.1   Any notice to be given to one party by the other tinder this
agreement:

(a)   must be in legible writing and in English addressed as follows:

(i)   If to the Vendors:

Address:   P0 Box 283

RYDALMERE BC NSW 1701

Attention:   Chris Bregenhoj

Facsimile:   + 61 2 9898 1119

with a copy to:

Address:   Level 8, Angel Place

123 Pitt Street

SYDNEY NSW 2000

Attention:   John Reen

Facsimile:   + 61 2 8233 9555

(ii)   If to the Purchaser:

Address:   28 Barcoo Street

Roseville NSW 2069

Attention:   Dr Greg Russell Jones

Facsimile:   TBA

with a copy to:

Address:   2600 Stemmons Freeway, Suite 176

DALLAS 75207-2107

<PAGE>
UNITED STATES OF AMERICA
Attention:   Kerry P Gray

Facsimile:   +1 214 905 5101

(iii)   If to AccessUSA:

Address:   2600 Stemmons Freeway, Suite 176

DALLAS 75207-2107

UNITED STATES OF AMERICA

Attention:   Kerry P Gray

Facsimile:   +1 214 905 5101

with a copy to:   Bingham Dana LLP

Address:   150 Federal Street, Boston MA 02110

Attention:   John J. Concannon III, Esq

Facsimile:   + 1 617 951 8736

(iv)   If to HTLA:

Address:   P0 Box 283

RYDALMERE BC NSW 1701

Attention:   Chris Bregenhoj

Facsimile:   + 61 2 9898 1119

with a copy to:

Address:   Level 8, Angel Place

123 Pitt Street

Sydney NSW 2000

Attention:   John Reen

Facsimile:   + 61 2 8233 9555

(b)   must be delivered to the recipient in person or by overnight
international courier (in the case of AccessUSA) hand delivery, by
prepaid ordinary post or by facsimile;

(c)   must be signed by a duly Authorised Officer or under the common
seal of the sender;

13.2   A notice is regarded as being given by the sender and received
by the recipient:

<PAGE>
(a)   if by delivery in person, when delivered to the recipient, but if
delivery or receipt is not on a Business Day or occurs after 5.00 pm on
a Business Day it will be deemed to have been duly given or made at
9.00 am on the next Business Day;

(b)   if by post, three Business Days from and including the date of
postage, or seven Business Days from and including the date of postage
if posted to or from a place outside Australia after shipment by a
reputable international courier; or

(c)   in the case of a facsimile or e-mail, on production of a
transmission report by the machine from which the facsimile or e-mail
were sent which indicates the facsimile or e-mail was sent in its entirety
to the facsimile number or e-mail address of the recipient.

13.3   A notice may be relied upon by the recipient and the recipient is
not liable to the other party for any consequences of that reliance if the
recipient reasonably believes the notice to be genuine, correct and
authorised by the sender.

13.4   If a notice is received by facsimile on a day which is not a
Business Day or after 5.00 pm on a Business Day, that notice is
regarded as received at 9.00 am on the following Business Day.

14.   COSTS

14.1   Each party must bear its own costs in relation to the preparation
and execution of this agreement.

14.2   The Purchaser must pay all stamp duty on this agreement and on
any instrument or other document executed to give effect to any
provisions of this agreement.

15.   ENTIRE AGREEMENT

This agreement and the Confidentiality Agreement contain the entire
understanding of the parties as to its subject matter and any and all
previous understandings or agreements on that subject matter cease to
have any effect from the date of this agreement.

16.   NO WAIVER

16.1   The failure of a party to exercise or delay in exercising a right,
power or remedy under this agreement does not prevent its exercise.

16.2   A provision of or right under this agreement may not be waived
except by a waiver in writing signed by the party granting the waiver,
and will be effective only to the extent specifically set out in that
waiver.

17.   GOVERNING LAW AND JURISDICTION

17.1   This agreement is governed by the law of New South Wales.

17.2   Each party irrevocably and unconditionally submits to the non-
exclusive jurisdiction of the courts of New South Wales.

18.   COUNTERPARTS

<PAGE>

This agreement may be executed in any number of counterparts and all
those counterparts taken together are regarded as one instrument.

19.   GST

19.1   Interpretation

In this clause 19 the expressions "Input Tax Credit", "Supply", "Tax
Invoice", "Recipient" and "Taxable Supply" have the meaningsgiven to
those expressions in the GST Act.

19.2   Amounts exclusive of GST

With the exception of any amount payable under this clause 19, unless
otherwise expressly stated, all amounts stated to be payable in this
agreement are exclusive of GST.

19.3   Additional amount for GST

(a)   If GST is imposed on any Supply made under or in accordance
with this agreement, the Recipient of the Taxable Supply must pay to
the Supplier an additional amount equal to the GST payable on or for
the Taxable Supply. Payment of the additional amount will be made at
the same time as payment for the Taxable Supply is required to be
made in accordance with this agreement, subject to the provision of a
Tax Invoice.

(b)   If this agreement requires a party to pay for, reimburse or
contribute to any expense, loss, indemnity or outgoing ("Reimbursable
Expense") suffered or incurred by another party, the amount required
to be paid, reimbursed or contributed by the first party will be the sum
of:

(i)   the amount of the Reimbursable Expense net of Input Tax Credits
(if any) to which the other party is entitled in respect of the
Reimbursable Expense; and

(ii)   if the other party's recovery from the first Party is a Taxable
Supply, any GST payable in respect of that Supply.

20.   WITHHOLDING TAX

20.1   Amounts exclusive of withholding tax

With the exception of any amount payable under this clause 20, unless
otherwise expressly stated, all amounts stated to be payable in this
agreement are exclusive of any withholding tax or any like impost
(whether imposed in the United States of America or any other
jurisdiction).

20.2   Additional Amount

If withholding tax, or any like impost, is imposed in any payment made
under or in accordance with this agreement, the Purchaser must pay
directly (if applicable) or must reimburse the Vendors for any amount
paid in respect of that withholding tax or like impost.

21.   GUARANTEED OBLIGATIONS

21.1   Guarantee

<PAGE>
AccessUSA irrevocably and unconditionally guarantees to the Vendors
the performance and observance of all the Guaranteed Obligations. If
the Purchaser fails to perform and observe the Guaranteed Obligations,
AccessUSA agrees to perform the Guaranteed Obligations on demand at
any time and from time to time or as directed by the Vendors in
writing.

21.2   Indemnity

(a)   As a separate, primary and severable liability, AccessUSA
irrevocably and unconditionally indemnifies the Vendors, and agrees to
keep the Vendors indemnified, against any loss or damage suffered or
incurred by the Vendors arising out of:

(i)   any failure by the Purchaser to observe or perform the Guaranteed
Obligations whether contingent, actual or prospective; or

(ii)   any Guaranteed Obligation being ineffective for any reason
whatsoever (whether or not AccessUSA or the Purchaser knew or ought
to have known of that reason), including but not limited to:

A)   any legal limitation, disability or incapacity of the Purchaser or
any lack or improper exercise of a power or authority in relation to the
Purchaser;

(B)   the Purchaser making an arrangement, assignment or composition
for the benefit of its creditors or an order made or resolution effectively
passed for the winding up of the Purchaser or the Purchaser going into
liquidation or a receiver, receiver and manager, administrator or
provisional liquidator being appointed to the Purchaser; or

(C)   any Guaranteed Obligation being or becoming illegal, invalid,
void, voidable or unenforceable but not through the passage of time.

(b)   Each indemnity in this guarantee and indemnity is a continuing
obligation until 27 February 2005. It is not necessary for the Vendors
to enforce the Guarantee Obligations against the Purchaser or otherwise
to incur expense, loss, damage or make payment before enforcing a
right of indemnity conferred by this guarantee and indemnity.

21.3   Continuing Security

This guarantee and indemnity is a continuing security despite any
settlement of account, intervening payment, express or implied
verification or any other matter or thing whatever, until a final
discharge of this guarantee and indemnity has been given to
AccessUSA or until 27 February 2005.

21.4   Acknowledgment by AccessUSA

AccessUSA confirms that:

(a)   it has relied exclusively on its own knowledge and enquiries of the
Purchaser's transactions with the Vendors; and

<PAGE>
(b)   it has not entered this guarantee and indemnity in reliance on, or
as a result of any statement (other than the provisions of this
agreement, including the Warranties) or conduct of any kind of or on
behalf of the Vendors.

21.5   Enforcement

AccessUSA agrees that the Vendors may enforce this clause 21
following a demand on the Purchaser in relation to the Guaranteed
Obligations.

21.6   Consideration

AccessUSA warrants and represents to the Vendors that it is the
holding company of the Purchaser and that it receives a benefit from
giving the guarantee and indemnity provided in this clause 21.
AccessUSA acknowledges entering into this agreement for valuable
consideration.

22.   VENDORS' OBLIGATIONS

22.1   Guarantee

HTLA irrevocably and unconditionally guarantees to the Purchaser the
performance and observance of all the Vendors' Obligations. If the
Vendors fail to perform and observe the Vendors Obligations, HTLA
agrees to perform the Vendors Obligations on demand at any time and
from time to time or as directed by the Purchaser in writing.

22.2   Indemnity

(a)   As a separate, primary and severable liability, HTLA irrevocably
and unconditionally indemnifies the Purchaser, and agrees to keep the
Purchaser indemnified, against any loss or damage suffered or incurred
by the Purchaser arising out of:

(i)   any failure by the Vendors to observe or perform the Vendors'
Obligations whether contingent, actual or prospective; or

(ii)   any Vendors' Obligation being ineffective for any reason
whatsoever (whether or not HTLA or the Vendors knew or ought to
have known of that reason), including but not limited to:

(A)   any legal limitation, disability or incapacity of the Vendors or any
lack or improper exercise of a power or authority in relation to the
Vendors;

(B)   the Vendors making an arrangement, assignment or composition
for the benefit of its creditors or an order made or resolution effectively
passed for the winding up of a Vendor or a Vendor going into
liquidation or a receiver, receiver and manager, administrator or
provisional liquidator being appointed to a Vendor; or

(C)   any Vendors' Obligation being or becoming illegal, invalid, void,
voidable or unenforceable but not through the passage of time.

(b)   Each indemnity in this guarantee and indemnity is a continuing
obligation until December 2004. It is not necessary for the Purchaser to
enforce the Vendors

<PAGE>
Obligations against the Vendors or otherwise to incur expense, loss,
damage or make payment before enforcing a right of indemnity
conferred by this guarantee and indemnity.

22.3   Continuing Security

This guarantee and indemnity may not be assigned by HTLA without
the prior written consent of the Purchaser and AccessUSA and is a
continuing security despite any settlement of account, intervening
payment, express or implied verification or any other matter or thing
whatever, until a final discharge of this guarantee and indemnity has
been given to HTLA or until 31 December 2004.

22.4   Acknowledgment by HTLA

HTLA confirms that:

(a)   it has relied exclusively on its own knowledge and enquiries of the
Vendors' transactions with the Purchaser; and

(b)   it has not entered this guarantee and indemnity in reliance on, or
as a result of any statement (other than the provisions of this
agreement) or conduct of any kind of or on behalf of the Purchaser.

22.5   Enforcement

HTLA agrees that the Purchaser may enforce this clause 22 following a
demand on the Vendors in relation to the Vendors' Obligations.

22.6   Consideration

HTLA warrants and represents to the Purchaser that it is the parent
company of the Vendors and that it receives a benefit from giving the
guarantee and indemnity provided in this clause 22. HTLA
acknowledges entering into this agreement for valuable consideration.

22.7   Notification by HTLA

Until a final discharge of this guarantee and indemnity has been given
to HTLA or until 30 June 2005, HTLA shall promptly notify the
Purchaser of any:

(a)   change or impending change in the capital structure or ownership
of HTLA; or

(b)   decrease or impending decrease in the book value of HTLA below
AU$4,000,000.

22.8   Limitation

Notwithstanding any other provision of this clause 22, the obligations
and liabilities of HTLA under this clause 22 are subject to the
qualifications and limitations set out in clauses 9.2 and 11.

23.   ASSIGNMENT

23.1   The Vendors may assign in whole or in part (pursuant to the
terms of the Assignment Deed or otherwise) the benefits

<PAGE>
of this agreement to GroPep but otherwise may not assign the benefits
or obligations of this agreement to any third party without the prior
written consent of the Purchaser.

23.2   The Purchaser and AccessUSA irrevocably authorise the
Vendors to:

(a)   keep the counterpart of the Assignment Deed;

(b)   complete the transaction contemplated by the Assignment Deed
after Completion (if necessary); and

(c)   complete the blanks in the Assignment Deed.

EXECUTED as an agreement

SIGNED for and on behalf of BIOA        )
PTY LIMITED ABN 52 003 804 984          )
in accordance with section 127 of the   )
Corporation Act:                        )
                                        )
    /s/ C.H. Bregenhoj                  )        /s/ Michael Egan
-----------------------                      -------------------------------
Signature of Director                   )    Signature of Director/Secretary
    C.H. Bregenhoj                      )        Michael Egan
-----------------------                      -------------------------------
Name of Director                        )    Signature of Director/Secretary

SIGNED for and on behalf of             )
BIOTECHNOLOGY AUSTRALIA                 )
PTY LIMITED ABN 32 001 521 866 in       )
accordance with section 127 of the      )
Corporation Act:                        )
                                        )
   /s/ C.H. Bregenhoj                   )        /s/ Michael Egan
-----------------------                      -------------------------------
Signature of Director                   )    Signature of Director/Secretary
    C.H. Bregenhoj                      )        Michael Egan
-----------------------                      -------------------------------
Name of Director                        )    Signature of Director/Secretary

<PAGE>
SIGNED for and on behalf of HUMAN       )
THERAPEUTICS LIMITED ABN 36             )
008 540 556 in accordance with section  )
127 of the Corporations Act:            )
                                        )
    /s/ C.H. Bregenhoj                  )        /s/ Michael Egan
-------------------------                    -------------------------------
Signature of Director                   )    Signature of Director/Secretary
    C.H. Bregenhoj                      )        Michael Egan
-------------------------                    -------------------------------
Name of Director                        )    Signature of Director/Secretary

SIGNED for an don behalf of ACCESS      )
PHARMACEUTICALS AUSTRALIA               )
PTY LIMITED CAN 099 593 898 in          )
accordance with section 127 of the      )
Corporation Act:                        )
                                        )
    /s/ Kerry P. Gray                   )
--------------------------                   -------------------------------
Signature of Director                   )    Signature of Director/Secretary
    Kerry P. Gray                       )
--------------------------                   -------------------------------
Name of Director                        )    Name of Director/Secretary

SIGNED for and on behalf of ACCESS      )
PHARMACEUTICALS, INC.                   )
                                        )
    /s/ Kerry P. Gray                   )        /s/ Stephen B. Thompson
--------------------------                   ------------------------------
Signature of Officer                    )    Signature of Officer
    Kerry P. Gray                       )        Stephen B. Thompson
--------------------------                   ------------------------------
Name of Officer (print)                 )    Name of Officer (print)
President and CEO                       )    Asst. Secretary
Office held (print)                     )    Office held (print)Exhibit 10.1.40

                               SEVERANCE AGREEMENT
                               -------------------

                          Recitals and Representations
                          ----------------------------

     A. Charles B. Chokel ("Chokel") has been employed by Conseco, Inc., and
various of its subsidiaries (collectively, "Conseco") pursuant to an employment
agreement between Conseco, Inc., and Chokel dated as of March 16, 2001
("Employment Agreement"). Conseco desires to terminate Chokel's employment
effective March 8, 2002 (the "Separation Date"), and Chokel desires to receive
the benefits, set forth below, that Conseco, Inc., is willing to afford him in
connection with such termination in accordance with the terms of this Severance
Agreement ("Agreement"). Accordingly, Chokel and Conseco, Inc., are entering
into this Agreement.

     B. Chokel's employment relationship with Conseco is covered by various
state and federal statutes and common laws, including the Age Discrimination in
Employment Act of 1967 ("ADEA"), as amended by the Older Workers' Benefits
Protection Act.

     C. Conseco, Inc., will make certain payments to Chokel, and Conseco, Inc.,
will afford Chokel certain benefits pursuant to this Agreement. In exchange,
Chokel will waive any rights, claims, demands, and causes of action against
Conseco and each of their parents, affiliates, successors, all partnerships in
which any of them has or has had any interest, each of their respective
directors, officers, agents, insurers, partners, members, employees,
representatives, and attorneys, both individually and in their representative
capacities, and all persons acting by, through, under or in concert with any of
them (collectively, the "Releasees") that may have arisen or may arise on or
before the date he executes this Agreement under any federal, state, or local
law, including but not
<PAGE>

limited to claims under the ADEA. However, by signing this Agreement, Chokel
does not waive any claims or rights that may arise as a result of this Agreement
or that may arise after the date he executes this Agreement.

     D. The parties mutually declare, warrant, and represent:

        (1) that in executing this Agreement it is understood and agreed that
the parties have relied solely upon their own judgment, belief, and knowledge of
the nature and extent of any claims or potential claims, including any alleged
damages to which either party may be entitled, and that they have not relied
upon any statement or representation of the other party or its representatives
or employees;

        (2) that no promise, enticement, or agreement not herein expressed has
been made to any party, and that, except as provided herein, the terms of this
Agreement constitute the entire agreement between the parties with respect to
the subject matter hereof, and that the terms of this Agreement are contractual
and not merely a recital; and

        (3) that the parties may in the future discover facts different from or
in addition to those that they now know or believe to be true with respect to
the matters that are the subject of this Agreement, and they agree that this
Agreement shall remain in effect in all respects notwithstanding the discovery
or existence of any such different or additional facts.

                                   Agreement
                                   ---------

     In consideration of the matters set forth above, the terms of this
Agreement, the following mutual undertakings, and other good and valuable
consideration, Chokel and Conseco, Inc., agree as follows:

                                      -2-
<PAGE>

     1. Conseco hereby terminates Chokel's employment with Conseco effective on
the Separation Date. Conseco acknowledges that such termination is not for
cause.

     2. Conseco, Inc., will pay Chokel all amounts due pursuant to the
Employment Agreement for services rendered through the Separation Date. In
addition, Conseco, Inc., will make the payments and provide the benefits
specified in this paragraph. Chokel acknowledges and agrees that the
consideration provided for below exceeds that to which he is otherwise entitled
under the Employment Agreement and that Chokel will not be entitled to any
payments or benefits under the Employment Agreement except as specifically
provided for in this Agreement.

        a. Conseco, Inc., shall pay Chokel one million four hundred thousand
           dollars ($1,400,000), less applicable taxes, within ten (10) business
           days after the Effective Date of this Agreement (as defined in
           paragraph 14).

        b. The restrictions on the 500,000 shares of restricted stock of
           Conseco, Inc., that Chokel received pursuant to paragraph 5(d) of the
           Employment Agreement shall lapse as of the Separation Date. The
           Restricted Stock Agreement between Conseco, Inc., and Chokel dated
           March 16, 2001, shall continue in force with respect to such shares.

        c. Of the options to purchase 1,000,000 shares of Conseco, Inc., common
           stock at $13.885 per share that Chokel received under paragraph 5(e)
           of the Employment Agreement: (i) 200,000 of such options shall become
           exercisable on the Effective Date and may be exercised by Chokel at
           any time during the period of three months following the

                                      -3-
<PAGE>

           Separation Date, or by Chokel's estate (or the person who acquires
           such options by will or the laws of descent and distribution or
           otherwise by reason of the death of Chokel) during a period of one
           year following Chokel's death if Chokel dies during such three-month
           period, with any such exercise to be in accordance with the terms and
           conditions of the Non-Qualified Stock Option Agreement between
           Conseco, Inc., and Chokel dated March 16, 2001; and (ii) the
           remaining 800,000 of such options are hereby cancelled.

        d. The Supplemental Retirement Benefit that Conseco, Inc., granted to
           Chokel pursuant to paragraph 5(f) of the Employment Agreement shall
           vest in full on the Separation Date.

        e. Conseco hereby releases Chokel from the noncompetition obligations
           Chokel has under paragraph 9 of the Employment Agreement.

     3. In consideration of the payments and other consideration described in
paragraph 2 of this Agreement and the other consideration set forth herein,
Chokel hereby IRREVOCABLY AND UNCONDITIONALLY RELEASES AND FOREVER DISCHARGES
AND COVENANTS NOT TO SUE the Releasees from all charges, complaints, claims,
demands, liabilities, obligations, actions and causes of action of any kind or
nature (including for attorneys' fees, interest, expenses, and costs actually
incurred) that have accrued as of the date he executes this Agreement, whether
known or unknown, suspected or unsuspected, including but not limited to any and
all claims arising out of or relating to Chokel's employment or the termination
of his employment with Conseco; provided, however, that Chokel is not waiving
any rights under this

                                      -4-
<PAGE>

Agreement, any rights to vested benefits under any employee benefit plan
sponsored or maintained by Conseco or to continuation coverage under COBRA or to
indemnity to which he may be entitled under the terms and conditions of any
board resolution or any applicable corporate liability insurance policy. The
parties intend that the claims released be construed as broadly as possible.

     4. Chokel warrants and represents that he has not previously assigned,
transferred, or granted, or purported to assign, transfer, or grant, any of the
claims, demands, causes of action, or rights disposed of by this Agreement.

     5. Chokel represents that he has not filed any lawsuit, claim, charge, or
complaint against any of the Releasees with any local, state, or federal agency,
administrative body, or court from the beginning of time to the date he executes
this Agreement, that he will not do so at any time hereafter based upon events
occurring on or prior to the date of execution of this Agreement, and that,
except as required by law, he will not voluntarily participate in, aid, or
assist any lawsuit, claim, charge, or complaint against Conseco or any of the
Releasees.

     6. Chokel acknowledges that he has statutory and common-law obligations not
to disclose Conseco's trade secrets and other confidential information, as well
as contractual confidentiality obligations under paragraph 8 of the Employment
Agreement, and that those obligations are not extinguished by this Agreement.
Except with Conseco's express prior written consent or as required by law,
Chokel will keep strictly confidential and not use for personal benefit or
disclose to others any confidential information or trade secrets that he learned
as a result of his employment with Conseco. The foregoing confidentiality
obligation shall not apply to information which has become

                                      -5-

<PAGE>

part of the public domain by publication or otherwise through lawful sources
other than Chokel, directly or indirectly, and without fault on the part of
Chokel in failing to keep such information confidential. Chokel acknowledges
that his obligations under this paragraph are material inducements to Conseco to
enter into this Agreement and are of the essence of this Agreement.

     7. As further consideration for the payments described in paragraph 2 and
the other consideration provided in this Agreement, Chokel agrees to make
himself available at Conseco's request at mutually convenient times to provide
truthful information concerning matters with which he may have been involved
during his employment.

     8. Chokel affirms that he is not aware of any undisclosed or unresolved
corporate compliance issues arising under any federal, state or local law.
Chokel also affirms that he has not altered, destroyed, or removed, and will not
alter, destroy, remove, or inappropriately limit access by Conseco to any
Conseco records or documents.

     9. Prior to any payment's becoming due under this Agreement, Chokel will
return all property of Conseco, including, without limitation, all reports,
files, memoranda, records and software, credit cards, card-key passes, door,
file, vehicle and other keys, computers, computer access codes, disks and
instructional manuals, and other physical or personal property which have been
provided for his use in connection with his employment with Conseco.

     10. Chokel represents that he has resigned from any and all positions he
holds with Conseco. Chokel agrees to execute at Conseco's request such
additional instruments as Conseco shall deem necessary to effectuate Chokel's
resignation from any positions with Conseco.

                                      -6-
<PAGE>

     11. Neither this Agreement nor any action pursuant to this Agreement
constitutes an admission by Conseco of any liability to Chokel arising under any
federal, state, or local law.

     12. This Agreement is governed by Indiana law, exclusive of its conflicts
of laws provisions. Venue for any action arising under this Agreement shall be
exclusively in a state court located in Hamilton County, Indiana or a federal
court in the Southern District of Indiana, notwithstanding that Chokel is not at
the time of the litigation a resident of those jurisdictions. Chokel irrevocably
consents to the jurisdiction of the state courts located in Hamilton County,
Indiana and the United States District Court for the Southern District of
Indiana over his person.

     13. The parties agree that if any provision of this Agreement or any
construction or application of any provision of this Agreement is held to be
unenforceable or invalid for any reason, then the validity of all the remaining
provisions shall not be affected, and the rights and obligations of each of the
parties shall be construed and enforced as if the Agreement did not contain such
invalid provision; provided, however, that the economic and legal substance of
this Agreement is not affected in any manner materially adverse to either party.

     14. Chokel acknowledges that Conseco (a) provided him this Agreement on
March 5, 2002; (b) advised him at that time to consult with an attorney prior to
signing the Agreement; (c) informed him at that time that he could have
twenty-one (21) days to accept this offer by signing this Agreement; and (d)
advised him that this Agreement shall not be effective or enforceable against
him or Conseco if he revokes it by written notice to David K. Herzog, Executive
Vice President at

                                      -7-
<PAGE>

Conseco not later than seven (7) days after he signs it. To accept this
Agreement, Chokel must sign and return this Agreement to David K. Herzog on or
before the twenty-first day after Chokel receives the Agreement. If not revoked,
the Agreement will become effective, binding and enforceable on the eighth day
following Chokel's signing the Agreement ("Effective Date").

     15. This Agreement sets forth the entire agreement between the parties and,
except as expressly provided in paragraphs 2 and 6 above, fully supersedes any
and all prior agreements or understandings, written or oral, between Chokel and
Conseco pertaining to the subject matter of this Agreement, including, but not
limited to, any applicable severance pay plan, the Employment Agreement or any
other employment agreement.

     16. This Agreement may be executed in two counterparts, each of which
constitutes an original, but which, taken together, shall constitute but one
Agreement.

CONSECO, INC.

By:/s/ David K. Herzog                      /s/ Charles B. Chokel
   -----------------------------            ------------------------------------
                                            Charles B. Chokel
Printed: David K. Herzog
         -----------------------

Title: Executive Vice President,            Date: March 7, 2002
       General Counsel and                        ------------------------------
       Secretary
       -------------------------

Date:  March 6, 2002
       -------------------------

                                      -8-

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