Document:

Exhibit No. 10.32

INVESTOR RIGHTS
AGREEMENT

This Investor Rights
Agreement (this “Agreement”) is made and entered into as of February 16,
2006 among Access Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
and each of the purchasers executing this Agreement and listed on Schedule 1
attached hereto (collectively, the “Purchasers”).

This Agreement is being
entered into pursuant to the Convertible Note and Warrant Purchase Agreement,
dated as of the date hereof, by and among the Company and the Purchasers (the “Purchase
Agreement”).

The Company and the
Purchasers hereby agree as follows:

1.             Definitions.

Capitalized terms used
and not otherwise defined herein shall have the meanings given such terms in
the Purchase Agreement. As used in this Agreement, the following terms shall
have the following meanings:

“Advice” shall
have the meaning set forth in Section 3(m).

“Affiliate” means,
with respect to any Person, any other Person that directly or indirectly
controls or is controlled by or under common control with such Person. For the
purposes of this definition, “control,” when used with respect to any Person,
means the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise; and the terms of “affiliated,”
“controlling” and “controlled” have meanings correlative to the foregoing.

“AMEX” shall mean
the American Stock Exchange.

“Blackout Period”
shall have the meaning set forth in Section 3(n).

“Board” shall have
the meaning set forth in Section 3(n).

“Business Day”
means any day except Saturday, Sunday and any day which shall be a legal
holiday or a day on which banking institutions in the State of Texas generally
are authorized or required by law or other government actions to close.

“Commission” means
the Securities and Exchange Commission.

“Common Stock”
means the Company’s Common Stock, par value $0.01 per share.

“Conversion Shares”
means the shares of Common Stock issuable upon conversion of the Notes
purchased by the Purchasers pursuant to the Purchase Agreement.

“Effectiveness Period”
shall have the meaning set forth in Section 2.

 

“Event” shall have
the meaning set forth in Section 7(e).

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

“Filing Date”
means March 31, 2006.

“Holder” or “Holders”
means the holder or holders, as the case may be, from time to time of
Registrable Securities, including without limitation the Purchasers and their
assignees.

“Indemnified Party”
shall have the meaning set forth in Section 5(c).

“Indemnifying Party”
shall have the meaning set forth in Section 5(c).

“Losses” shall
have the meaning set forth in Section 5(a).

“Notes” means the
Secured Convertible Promissory Notes issued to the Purchasers pursuant to the
Purchase Agreement.

“Person” means an
individual or a corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company,
government (or an agency or political subdivision thereof) or other entity of
any kind.

“Proceeding” means
an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition),
whether commenced or threatened.

“Prospectus” means
the prospectus included in any Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from
a prospectus filed as part of an effective registration statement in reliance
upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by such
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference in such Prospectus.

“Registrable
Securities” means (a) the Conversion Shares and the Warrant Shares
(without regard to any limitations on beneficial ownership contained in the
Note or the Warrants) or other securities issued or issuable to each Purchaser
or its transferee or designee (i) upon conversion of the Notes and/or upon
exercise of the Warrants, or (ii) upon any dividend or distribution with
respect to, any exchange for or any replacement of such Notes, Conversion
Shares, Warrants or Warrant Shares or (iii) upon any conversion, exercise
or exchange of any securities issued in connection with any such distribution,
exchange or replacement; (b) securities issued or issuable upon any stock
split, stock dividend, recapitalization or similar event with respect to the
foregoing; and (c) any other security issued as a dividend or other
distribution with respect to, in exchange for, in replacement or redemption of,
or in reduction of the liquidation value of, any of the securities referred to
in the preceding clauses; provided, however, that such securities shall cease
to be Registrable 

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Securities when such
securities have been sold to or through a broker or dealer or underwriter in a
public distribution or a public securities transaction or when such securities
may be sold without any restriction pursuant to Rule 144(k) as
determined by the counsel to the Company pursuant to a written opinion letter,
addressed to the Company’s transfer agent to such effect as described in Section 2
of this Agreement.

“Registration
Statement” means the registration statements and any additional
registration statements contemplated by Section 2, including (in each
case) the Prospectus, amendments and supplements to such registration statement
or Prospectus, including pre- and post-effective amendments, all exhibits
thereto, and all material incorporated by reference in such registration statement.

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
effect as such Rule.

“Rule 158”
means Rule 158 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
effect as such Rule.

“Rule 415”
means Rule 415 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
effect as such Rule.

“Securities Act”
means the Securities Act of 1933, as amended.

“Special Counsel”
means Wiggin and Dana LLP.

“Warrants” means
the Common Stock purchase warrants issued pursuant to the Purchase Agreement,
including, without limitation the Placement Agent Warrants.

“Warrant Shares”
means the shares of Common Stock issuable upon the exercise of the Warrants
(including, without limitation, the Placement Agent Warrants) issued or to be
issued to the Purchasers or their assignees or designees in connection with the
offering consummated under the Purchase Agreement.

2.             Registration. As soon as possible following the
Closing Date (but not later than the Filing Date), the Company shall prepare
and file with the Commission a “shelf” Registration Statement covering all
Registrable Securities for a secondary or resale offering to be made on a
continuous basis pursuant to Rule 415. The Registration Statement shall be
on Form S-3 (or if such form is not available to the Company on
another form appropriate for such registration in accordance herewith). The
Company shall use its reasonable best efforts to cause the Registration
Statement to be declared effective under the Securities Act not later than
ninety (90) days after the Closing Date (including filing with the Commission a
request for acceleration of effectiveness in accordance with Rule 461
promulgated under 

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the Securities Act within
five (5) Business Days of the date that the Company is notified (orally or
in writing, whichever is earlier) by the Commission that a Registration
Statement will not be “reviewed,” or not be subject to further review) and to
keep such Registration Statement continuously effective under the Securities
Act until such date as is the earlier of (x) the date when all Registrable
Securities covered by such Registration Statement have been sold or (y) with
respect to such Holder, such time as all Registrable Securities held by such
Holder may be sold without any restriction pursuant to Rule 144(k) as
determined by the counsel to the Company pursuant to a written opinion letter,
addressed to the Company’s transfer agent to such effect (the “Effectiveness
Period”). For purposes of the obligations of the Company under this Agreement,
no Registration Statement shall be considered “effective” with respect to any
Registrable Securities unless such Registration Statement lists the Holders of
such Registrable Securities as “Selling Stockholders” and includes such other
information as is required to be disclosed with respect to such Holders to
permit them to sell their Registrable Securities pursuant to such Registration
Statement, unless any such Holder is not included as a “Selling Stockholder”
pursuant to Section 3(m). Such Registration Statement also shall cover, to
the extent allowable under the Securities Act and the Rules promulgated
thereunder (including Securities Act Rule 416), such indeterminate number
of additional shares of Common Stock resulting from stock splits, stock
dividends or similar transactions with respect to the Registrable Securities.

3.             Registration Procedures.

In connection with the
Company’s registration obligations hereunder, the Company shall:

(a)           Prepare and file with the Commission
on or prior to the Filing Date, a Registration Statement on Form S-3
(or if such form is not available to the Company on another form appropriate
for such registration in accordance herewith) (which shall include a Plan of
Distribution substantially in the form of Exhibit A attached
hereto), and cause the Registration Statement to become effective and remain
effective as provided herein; provided, however, that not less than three (3) Business
Days prior to the filing of the Registration Statement or any related
Prospectus or any amendment or supplement thereto, the Company shall (i) furnish
to the Special Counsel, copies of all such documents proposed to be filed,
which documents (other than those incorporated by reference) will be subject to
the review of such Special Counsel, and (ii) at the request of any Holder
cause its officers and directors, counsel and independent certified public
accountants to respond to such inquiries as shall be necessary, in the
reasonable opinion of counsel to such Holders, to conduct a reasonable
investigation within the meaning of the Securities Act. The Company shall not
file the Registration Statement or any such Prospectus or any amendments or
supplements thereto to which the Holders of a majority of the Registrable
Securities or the Special Counsel shall reasonably object within three (3) Business
Days after their receipt thereof. In the event of any such objection, the
Holders shall provide the Company with any requested revisions to such
prospectus or supplement within two (2) Business Days of such objection.

(b)           (i) Prepare and file with the
Commission such amendments, including post-effective amendments, to the
Registration Statement as may be necessary to keep the 

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Registration Statement
continuously effective as to the applicable Registrable Securities for the
Effectiveness Period and to the extent any Registrable Securities are not
included in such Registration Statement for reasons other than the failure of
the Holder to comply with Section 3(m) hereof, shall prepare and file
with the Commission such amendments to the Registration Statement or such
additional Registration Statements in order to register for resale under the
Securities Act all Registrable Securities; (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement,
and as so supplemented or amended to be filed pursuant to Rule 424 (or any
similar provisions then in force) promulgated under the Securities Act; (iii) respond
as promptly as reasonably practicable, and in no event later than ten (10) Business
Days to any comments received from the Commission with respect to the
Registration Statement or any amendment thereto and as promptly as reasonably
practicable provide the Holders true and complete copies of all correspondence
from and to the Commission relating to the Registration Statement, but not,
without the prior written consent of the Holders, any comments that would
result in the disclosure to the Holders of material and non-public information
concerning the Company; and (iv) comply in all material respects with the
provisions of the Securities Act and the Exchange Act with respect to the
disposition of all Registrable Securities covered by the Registration Statement
during the applicable period in accordance with the intended methods of
disposition by the Holders thereof set forth in the Registration Statement as
so amended or in such Prospectus as so supplemented.

(c)           Notify Holders of Registrable
Securities to be sold and the Special Counsel as promptly as reasonably
practicable (A) when a Prospectus or any Prospectus supplement or
post-effective amendment to the Registration Statement is proposed to be filed
(but in no event in the case of this subparagraph (A), less than three (3) Business
Days prior to date of such filing); (B) when the Commission notifies the
Company whether there will be a “review” of such Registration Statement and
whenever the Commission comments in writing on such Registration Statement; and
(C) with respect to the Registration Statement or any post-effective
amendment, when the same has become effective, and after the effectiveness
thereof: (i) of any request by the Commission or any other Federal or
state governmental authority for amendments or supplements to the Registration
Statement or Prospectus or for additional information; (ii) of the
issuance by the Commission of any stop order suspending the effectiveness of
the Registration Statement covering any or all of the Registrable Securities or
the initiation of any Proceedings for that purpose; (iii) of the receipt
by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of
any Proceeding for such purpose; and (iv) if the financial statements
included in the Registration Statement become ineligible for inclusion therein
or of the occurrence of any event that makes any statement made in the
Registration Statement or Prospectus or any document incorporated or deemed to
be incorporated therein by reference untrue in any material respect or that
requires any revisions to the Registration Statement, Prospectus or other
documents so that, in the case of the Registration Statement or the Prospectus,
as the case may be, it will not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which
they were made, not misleading. Without limitation to any remedies to which the
Holders may be entitled under this Agreement, if any of the events described in
Section 3(c)(C)(i), 3(c)(C)(ii), 3(c)(C)(iii)

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or
3(c)(C)(iv) occur, the Company shall use its reasonable best efforts to
respond to and correct the event.

(d)           Use its reasonable best efforts to
avoid the issuance of, or, if issued, use reasonable best efforts to obtain the
withdrawal of, (i) any order suspending the effectiveness of the
Registration Statement or (ii) any suspension of the qualification (or
exemption from qualification) of any of the Registrable Securities for sale in
any jurisdiction, at the earliest practicable time.

(e)           If requested by any Holder of
Registrable Securities, (i) promptly incorporate in a Prospectus
supplement or post-effective amendment to the Registration Statement such
information as the Company reasonably agrees should be included therein and (ii) make
all required filings of such Prospectus supplement or such post-effective
amendment as soon as reasonably practicable after the Company has received
notification of the matters to be incorporated in such Prospectus supplement or
post-effective amendment.

(f)            Furnish to each Holder and the
Special Counsel, without charge, at least one conformed copy of each
Registration Statement and each amendment thereto, including financial
statements and schedules, and all exhibits to the extent requested by such
Person (including those previously furnished or incorporated by reference)
promptly after the filing of such documents with the Commission.

(g)           Promptly deliver to each Holder and
the Special Counsel, without charge, as many copies of the Prospectus or
Prospectuses (including each form of prospectus) and each amendment or
supplement thereto as such Persons may reasonably request; and the Company
hereby consents to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders in connection with the offering and sale
of the Registrable Securities covered by such Prospectus and any amendment or
supplement thereto.

(h)           Prior to any public offering of
Registrable Securities, use its reasonable best efforts to register or qualify
or cooperate with the selling Holders and the Special Counsel in connection
with the registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or Blue Sky laws of such jurisdictions within the United States as
any Holder requests in writing, to keep each such registration or qualification
(or exemption therefrom) effective during the Effectiveness Period and to do
any and all other acts or things necessary or advisable to enable the
disposition in such jurisdictions of the Registrable Securities covered by a
Registration Statement; provided, however, that the Company shall not be
required to qualify generally to do business in any jurisdiction where it is
not then so qualified or to take any action that would subject it to general
service of process in any jurisdiction where it is not then so subject or
subject the Company to any material tax in any such jurisdiction where it is
not then so subject.

(i)            Cooperate with the Holders to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold pursuant to a Registration Statement, which
certificates shall be free, to the extent permitted by applicable law and the 

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Purchase Agreement, of
all restrictive legends, and to enable such Registrable Securities to be in
such denominations and registered in such names as any Holder may request at
least two (2) Business Days prior to any sale of Registrable Securities.
In connection therewith, the Company shall promptly after the effectiveness of
the Registration Statement cause an opinion of counsel to be delivered to and
maintained with its transfer agent, together with any other authorizations,
certificates and directions required by the transfer agent, which authorize and
direct the transfer agent to issue such Registrable Securities without legend
upon sale by the Holder of such shares of Registrable Securities under the
Registration Statement.

(j)            Following the occurrence of any
event contemplated by Section 3(c)(C)(iv), as promptly as possible,
prepare a supplement or amendment, including a post-effective amendment, to the
Registration Statement or a supplement to the related Prospectus or any
document incorporated or deemed to be incorporated therein by reference, and
file any other required document so that, as thereafter delivered, neither the
Registration Statement nor such Prospectus will contain an untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

(k)           Cause all Registrable Securities
relating to such Registration Statement to be listed on any United States
securities exchange, quotation system, market or over-the-counter bulletin
board on which similar securities issued by the Company are then listed.

(l)            Comply in all material respects with
all applicable rules and regulations of the Commission and make generally
available to its security holders earnings statements satisfying the provisions
of Section 11(a) of the Securities Act and Rule 158 not later
than 45 days after the end of any 3-month period (or 90 days after the
end of any 12-month period if such period is a fiscal year) commencing on
the first day of the first fiscal quarter of the Company after the effective
date of the Registration Statement, which statement shall conform to the
requirements of Rule 158.

(m)          Request each selling Holder to furnish
to the Company information regarding such Holder and the distribution of such
Registrable Securities as is required by law or the Commission to be disclosed
in the Registration Statement, and the Company may exclude from such
registration the Registrable Securities of any such Holder who fails to furnish
such information within a reasonable time prior to the filing of each
Registration Statement, supplemented Prospectus and/or amended Registration
Statement.

If the Registration
Statement refers to any Holder by name or otherwise as the holder of any
securities of the Company, then such Holder shall have the right to require (if
such reference to such Holder by name or otherwise is not required by the
Securities Act or any similar federal statute then in force) the deletion of
the reference to such Holder in any amendment or supplement to the Registration
Statement filed or prepared subsequent to the time that such reference ceases
to be required.

Each Holder agrees by its
acquisition of such Registrable Securities that, upon receipt of a notice from
the Company of the occurrence of any event of the kind described in 

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Section 3(c)(C)(i),
3(c)(C)(ii), 3(c)(C)(iii), 3(c)(C)(iv), or 3(n), such Holder will forthwith
discontinue disposition of such Registrable Securities under the Registration
Statement until such Holder’s receipt of the copies of the supplemented
Prospectus and/or amended Registration Statement contemplated by Section 3(j),
or until it is advised in writing (the “Advice”) by the Company that the use of
the applicable Prospectus may be resumed, and, in either case, has received
copies of any additional or supplemental filings that are incorporated or deemed
to be incorporated by reference in such Prospectus or Registration Statement.

(n)           If (i) there is material
non-public information regarding the Company which the Company’s Board of
Directors (the “Board”) reasonably determines not to be in the Company’s best
interest to disclose and which the Company is not otherwise required to
disclose, or (ii) there is a significant business opportunity (including,
but not limited to, the acquisition or disposition of assets (other than in the
ordinary course of business) or any merger, consolidation, tender offer or
other similar transaction) available to the Company which the Board reasonably
determines not to be in the Company’s best interest to disclose and which the
Company would be required to disclose under the Registration Statement, then
the Company may (i) postpone or suspend filing or effectiveness of a
registration statement or (ii) notify the Holders that the Registration
Statement may not be used in connection with any sales of the Company’s
securities, in each case, for a period not to exceed 30 consecutive days,
provided that the Company may not postpone or suspend its obligation under this
Section 3(n) for more than 60 days in the aggregate during any 12
month period (each, a “Blackout Period”).

4.             Registration Expenses.

All fees and expenses
incident to the performance of or compliance with this Agreement by the Company
shall be borne by the Company whether or not the Registration Statement is
filed or becomes effective and whether or not any Registrable Securities are
sold pursuant to the Registration Statement. The fees and expenses referred to
in the foregoing sentence shall include, without limitation, (i) all
registration and filing fees (including, without limitation, fees and expenses (A) with
respect to filings required to be made with AMEX and each other securities
exchange, quotation system, market or over-the-counter bulletin board on which
Registrable Securities are required hereunder to be listed, (B) with
respect to filings required to be made with the Commission, and (C) in
compliance with state securities or Blue Sky laws (including, without
limitation, reasonable and documented fees and disbursements of Special Counsel
in connection with Blue Sky qualifications of the Registrable Securities and
determination of the eligibility of the Registrable Securities for investment
under the laws of such jurisdictions as the Holders of a majority of
Registrable Securities may designate)), (ii) printing expenses (including,
without limitation, expenses of printing certificates for Registrable
Securities and of printing or photocopying prospectuses), (iii) messenger,
telephone and delivery expenses, (iv) Securities Act liability insurance,
if the Company so desires such insurance, (v) fees and expenses of all
other Persons retained by the Company in connection with the consummation of
the transactions contemplated by this Agreement, including, without limitation,
the Company’s independent public 

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accountants (including,
in the case of an underwritten offering, the expenses of any comfort letters or
costs associated with the delivery by independent public accountants of a
comfort letter or comfort letters) and legal counsel, and (vi) reasonable
and documented fees and expenses of the Special Counsel in connection with any
Registration Statement hereunder. In addition, the Company shall be responsible
for all of its internal expenses incurred in connection with the consummation
of the transactions contemplated by this Agreement (including, without limitation,
all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit, the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder.

5.             Indemnification.

(a)           Indemnification by the Company.
The Company shall, notwithstanding any termination of this Agreement, indemnify
and hold harmless each Holder, the officers, directors, agents, brokers
(including brokers who offer and sell Registrable Securities as principal as a
result of a pledge or any failure to perform under a margin call of Common
Stock), investment advisors and employees of each of them, each Person who
controls any such Holder (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) and the officers,
directors, agents and employees of each such controlling Person, to the fullest
extent permitted by applicable law, from and against any and all losses,
claims, damages, liabilities, costs (including, without limitation, costs of
preparation and reasonable attorneys’ fees) and expenses (collectively, “Losses”),
as incurred, arising out of or relating to any untrue or alleged untrue
statement of a material fact contained or incorporated by reference in the
Registration Statement, any Prospectus or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, or arising
out of or relating to any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein (in the case
of any Prospectus or form of prospectus or amendment or supplement thereto, in
the light of the circumstances under which they were made) not misleading,
except to the extent, but only to the extent, that (i) such untrue
statements or omissions are based solely upon information regarding such Holder
furnished in writing to the Company by such Holder expressly for use therein,
which information was reasonably relied on by the Company for use therein or to
the extent that such information relates to (x) such Holder and was
reviewed and expressly approved in writing by such Holder expressly for use in
the Registration Statement, such Prospectus or such form of prospectus or in
any amendment or supplement thereto or (y) such Holder’s proposed method
of distribution of Registrable Securities as set forth in Exhibit A
(or as such Holder otherwise informs the Company in writing); or (ii) in
the case of an occurrence of an event of the type described in Section 3(c)(C)(ii),
3(c)(C)(iii), 3(c)(C)(iv) or 3(n), the use by a Holder of an outdated or
defective Prospectus after the delivery to the Holder of written notice from
the Company that the Prospectus is outdated or defective and prior to the
receipt by such Holder of the Advice contemplated in Section 3(m);
provided, however, that the indemnity agreement contained in this Section 5(a) shall
not apply to amounts paid in settlement of any Losses if such settlement is
effected without the prior written consent of the Company, which consent shall
not be unreasonably withheld. The Company shall notify the Holders promptly of
the institution, threat or assertion of any Proceeding of which the Company is
aware in connection with the transactions contemplated by this Agreement. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of an Indemnified Party (as defined in Section 5(c) to
this Agreement) and shall

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survive the transfer of
the Registrable Securities by the Holders.

(b)           Indemnification by Holders.
Each Holder shall, severally and not jointly, indemnify and hold harmless the
Company, its directors, officers, agents and employees, each Person who
controls the Company (within the meaning of Section 15 of the Securities
Act and Section 20 of the Exchange Act), and the directors, officers,
agents and employees of such controlling Persons, to the fullest extent
permitted by applicable law, from and against all Losses, as incurred, arising
solely out of or based solely upon any untrue statement of a material fact
contained in the Registration Statement, any Prospectus, or any form of
prospectus, or in any amendment or supplement thereto, or arising solely out of
or based solely upon any omission of a material fact required to be stated
therein or necessary to make the statements therein (in the case of any
Prospectus or form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading, to the extent, but
only to the extent, that (i) such untrue statement or omission is
contained in or omitted from any information so furnished in writing by such
Holder to the Company specifically for inclusion in the Registration Statement
or such Prospectus and that such information was reasonably relied upon by the
Company for use in the Registration Statement, such Prospectus, or in any
amendment or supplement thereto, or to the extent that such information relates
to (x) such Holder and was reviewed and expressly approved in writing by
such Holder expressly for use in the Registration Statement, such Prospectus,
or such form of prospectus or in any amendment or supplement thereto or (y) such
Holder’s proposed method of distribution of Registrable Securities as set forth
in Exhibit A (or as such Holder otherwise informs the Company in
writing), (ii) in the case of an occurrence of an event of the type
described in Section 3(c)(C)(ii), 3(c)(C)(iii), 3(c)(C)(iv) or 3(n),
the use by a Holder of an outdated or defective Prospectus after the delivery
to the Holder of written notice from the Company that the Prospectus is
outdated or defective and prior to the receipt by such Holder of the Advice
contemplated in Section 3(m) or (iii) such Holder’s failure to
comply with the Prospectus delivery requirements of the Securities Act through
no fault of the Company; provided, however, that the indemnity agreement
contained in this Section 5(b) shall not apply to amounts paid in
settlement of any Losses if such settlement is effected without the prior
written consent of the Holder, which consent shall not be unreasonably
withheld. Notwithstanding anything to the contrary contained herein, the Holder
shall be liable under this Section 5(b) for only that amount as does
not exceed the net proceeds to such Holder as a result of the sale of
Registrable Securities pursuant to such Registration Statement.

(c)           Conduct of Indemnification
Proceedings. If any Proceeding shall be brought or asserted against any
Person entitled to indemnity hereunder (an “Indemnified Party”), such
Indemnified Party promptly shall notify the Person from whom indemnity is
sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall
have the right to assume the defense thereof, including the employment of
counsel reasonably satisfactory to the Indemnified Party and the payment of all
reasonable fees and expenses incurred in connection with defense thereof;
provided, that the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant
to this Agreement, except (and only) to the extent that it shall be finally
determined by a court of competent jurisdiction (which determination is not
subject to appeal or further review) that such failure shall have proximately
and materially adversely prejudiced the

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Indemnifying Party.

An Indemnified Party
shall have the right to employ separate counsel in any such Proceeding and to
participate in the defense thereof, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Party or Parties unless: (1) the
Indemnifying Party has agreed in writing to pay such fees and expenses; or (2) the
Indemnifying Party shall have failed promptly to assume the defense of such
Proceeding and to employ counsel reasonably satisfactory to such Indemnified
Party in any such Proceeding; or (3) the named parties to any such
Proceeding (including any impleaded parties) include both such Indemnified
Party and the Indemnifying Party, and such Indemnified Party shall have been
advised in writing by counsel that a conflict of interest is likely to exist if
the same counsel were to represent such Indemnified Party and the Indemnifying
Party (in which case, if such Indemnified Party notifies the Indemnifying Party
in writing that it elects to employ separate counsel at the expense of the
Indemnifying Party, the Indemnifying Party shall not have the right to assume
the defense thereof and such counsel shall be at the reasonable expense of the Indemnifying
Party). The Indemnifying Party shall not be liable for any settlement of any
such Proceeding effected without its written consent, which consent shall not
be unreasonably withheld. No Indemnifying Party shall, without the prior
written consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such
settlement includes an unconditional release of such Indemnified Party from all
liability on claims that are the subject matter of such Proceeding and does not
impose any monetary or other obligation or restriction on the Indemnified
Party.

All reasonable fees and
expenses of the Indemnified Party (including reasonable fees and expenses to
the extent incurred in connection with investigating or preparing to defend
such Proceeding in a manner not inconsistent with this Section) shall be paid
to the Indemnified Party, as incurred, within ten (10) Business Days of
written notice thereof to the Indemnifying Party, which notice shall be
delivered no more frequently than on a monthly basis (regardless of whether it
is ultimately determined that an Indemnified Party is not entitled to
indemnification hereunder; provided, that the Indemnifying Party may require
such Indemnified Party to undertake to reimburse all such fees and expenses to
the extent it is finally judicially determined that such Indemnified Party is
not entitled to indemnification hereunder).

(d)           Contribution. If a claim for
indemnification under Section 5(a) or 5(b) is unavailable to an
Indemnified Party because of a failure or refusal of a governmental authority
to enforce such indemnification in accordance with its terms (by reason of
public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying
such Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates
to information supplied by, such Indemnifying Party or 

 11
 

 

Indemnified Party, and
the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such action, statement or omission. The amount paid or
payable by a party as a result of any Losses shall be deemed to include,
subject to the limitations set forth in Section 5(c), any reasonable
attorneys’ or other reasonable fees or expenses incurred by such party in
connection with any Proceeding to the extent such party would have been
indemnified for such fees or expenses if the indemnification provided for in
this Section was available to such party in accordance with its terms.
Notwithstanding anything to the contrary contained herein, the Holder shall be
required to contribute under this Section 5(d) for only that amount
as does not exceed the net proceeds to such Holder as a result of the sale of
Registrable Securities pursuant to such Registration Statement.

The parties hereto agree
that it would not be just and equitable if contribution pursuant to this Section 5(d) were
determined by pro rata allocation or by any other method of allocation that
does not take into account the equitable considerations referred to in the
immediately preceding paragraph. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.

The indemnity and
contribution agreements contained in this Section are in addition to any
liability that the Indemnifying Parties may have to the Indemnified Parties.
The indemnity and contribution agreements herein are in addition to and not in
diminution or limitation of any indemnification provisions under the Purchase
Agreement.

6.             Rule 144.

As long as any Holder
owns Notes, Conversion Shares, Warrants or Warrant Shares, the Company
covenants to timely file (or obtain extensions in respect thereof and file
within the applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to Section 13(a) or 15(d) of
the Exchange Act. As long as any Holder owns Notes, Conversion Shares, Warrants
or Warrant Shares, if the Company is not required to file reports pursuant to Section 13(a) or
15(d) of the Exchange Act, it will prepare and furnish to the Holders and
make publicly available in accordance with Rule 144(c) promulgated
under the Securities Act annual and quarterly financial statements, together
with a discussion and analysis of such financial statements in form and
substance substantially similar to those that would otherwise be required to be
included in reports required by Section 13(a) or 15(d) of the
Exchange Act, as well as any other information required thereby, in the time
period that such filings would have been required to have been made under the
Exchange Act. The Company further covenants that it will take such further
action as any Holder may reasonably request, all to the extent required from
time to time to enable such Person to sell Notes, Conversion Shares, Warrants
and Warrant Shares without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144 promulgated under the
Securities Act, including compliance with the provisions of the Purchase
Agreement relating to the transfer of the Notes, Conversion Shares, Warrants
and Warrant Shares. Upon the request of any Holder, the Company shall deliver
to such Holder a written certification of a duly authorized officer as to
whether it has complied with such requirements.

 12

7.             Miscellaneous.

(a)           Remedies. In the event of a
breach by the Company or by a Holder, of any of their obligations under this
Agreement, each Holder or the Company, as the case may be, in addition to being
entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, will be entitled to specific performance of its
rights under this Agreement. The Company and each Holder agree that monetary
damages would not provide adequate compensation for any losses incurred by reason
of a breach by it of any of the provisions of this Agreement and hereby further
agrees that, in the event of any action for specific performance in respect of
such breach, it shall waive the defense that a remedy at law would be adequate.

(b)           No Inconsistent Agreements.
Except as otherwise disclosed in the Purchase Agreement, neither the Company
nor any of its subsidiaries is a party to an agreement currently in effect, nor
shall the Company or any of its subsidiaries, on or after the date of this Agreement,
enter into any agreement with respect to its securities that is inconsistent
with the rights granted to the Holders in this Agreement or otherwise conflicts
with the provisions hereof. Without limiting the generality of the foregoing,
other than with respect to the rights of the holders of the Company’s currently
outstanding convertible notes and the common stock underlying such convertible
notes, without the written consent of the Holders of a majority of the then
outstanding Registrable Securities, the Company shall not grant to any Person
the right to request the Company to register any securities of the Company
under the Securities Act unless the rights so granted are subject in all
respects to the rights of the Holders set forth herein, and are not otherwise
in conflict with the provisions of this Agreement.

(c)           Notice of Effectiveness.
Within two (2) Business Days after the Registration Statement which
includes the Registrable Securities is ordered effective by the Commission, the
Company shall deliver, and shall cause legal counsel for the Company to
deliver, to the transfer agent for such Registrable Securities (with copies to
the Holders whose Registrable Securities are included in such Registration
Statement) confirmation that the Registration Statement has been declared
effective by the Commission in the form attached hereto as Exhibit B.

(d)           Piggy-Back Registrations. If
at any time when there is not an effective Registration Statement covering all
of the Registrable Securities, the Company shall determine to prepare and file
with the Commission a registration statement relating to an offering for its
own account or the account of others under the Securities Act of any of its
equity securities, other than on Form S-4 or Form S-8
(each as promulgated under the Securities Act) or their then equivalents
relating to equity securities to be issued solely in connection with any
acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans and other than
with respect to the rights of the holders of the Company’s currently
outstanding warrants and convertible notes and the common stock underlying such
warrants and convertible notes and the Company’s currently effective
registration statement on Form S-1 relating to its Standby Equity
Distribution Agreement with Cornell Capital, as it may be amended from time to
time, the Company shall send to each Holder of Registrable Securities written
notice of such 

 13
 

 

determination and, if
within seven (7) Business Days after receipt of such notice, any such
Holder shall so request in writing (which request shall specify the Registrable
Securities intended to be disposed of by the Holder), the Company will cause
the registration under the Securities Act of all Registrable Securities which
the Company has been so requested to register by the Holder, to the extent
required to permit the disposition of the Registrable Securities so to be
registered, provided that if at any time after giving written notice of its
intention to register any securities and prior to the effective date of the
registration statement filed in connection with such registration, the Company
shall determine for any reason not to register or to delay registration of such
securities, the Company may, at its election, give written notice of such
determination to such Holder and, thereupon, (i) in the case of a
determination not to register, shall be relieved of its obligation to register
any Registrable Securities in connection with such registration (but not from
its obligation to pay expenses in accordance with Section 4 hereof), and (ii) in
the case of a determination to delay registering, shall be permitted to delay
registering any Registrable Securities being registered pursuant to this Section 7(d) for
the same period as the delay in registering such other securities. The Company
shall include in such registration statement all or any part of such
Registrable Securities such Holder requests to be registered. In the case of an
underwritten public offering, if the managing underwriter(s) or
underwriter(s) should reasonably object to the inclusion of the
Registrable Securities in such registration statement, then if the Company
after consultation with the managing underwriter should reasonably determine
that the inclusion of such Registrable Securities, would materially adversely
affect the offering contemplated in such registration statement, and based on
such determination recommends inclusion in such registration statement of fewer
or none of the Registrable Securities of the Holders, then (x) the number
of Registrable Securities of the Holders included in such registration
statement shall be reduced pro-rata among such Holders (based upon the number
of Registrable Securities requested to be included in the registration), if the
Company after consultation with the underwriter(s) recommends the
inclusion of fewer Registrable Securities, or (y) none of the Registrable
Securities of the Holders shall be included in such registration statement, if
the Company after consultation with the underwriter(s) recommends the
inclusion of none of such Registrable Securities; provided, however, that if
securities are being offered for the account of other persons or entities as
well as the Company, such reduction shall not represent a greater fraction of
the number of Registrable Securities intended to be offered by the Holders than
the fraction of similar reductions imposed on such other persons or entities
(other than the Company).

(e)           Failure to File Registration
Statement and Other Events. The Company and the Holders agree that the
Holders will suffer damages if the Registration Statement is not filed on or
prior to the Filing Date and maintained in the manner contemplated herein
during the Effectiveness Period. The Company and the Holders further agree that
it would not be feasible to ascertain the extent of such damages with
precision. Accordingly, if (i) the Registration Statement is not filed on
or prior to the Filing Date, or (ii) the Company fails to file with the
Commission a request for acceleration in accordance with Rule 461
promulgated under the Securities Act within five (5) Business Days of the
date that the Company is notified (orally or in writing, whichever is earlier)
by the Commission that a Registration Statement will not be “reviewed,” or not
subject to further review, or (iii) the Registration Statement is filed
with and declared effective by the Commission but thereafter ceases to be
effective as to all Registrable Securities at any time prior to the expiration
of the 

 14
 

 

Effectiveness Period,
without being succeeded immediately by a subsequent Registration Statement
filed with the Commission, except as otherwise permitted by this Agreement,
including pursuant to Section 3(n), or (iv) trading in the Common
Stock shall be suspended or if the Common Stock is delisted from each
securities exchange, quotation system, market or over-the-counter bulletin
board on which Registrable Securities are required hereunder to be listed (each
an “Exchange”), without immediately being listed on any other Exchange, for any
reason for more than five (5) Business Days, other than pursuant to Section 3(n),
or (v) the Company refuses or fails to effect any conversion of the Notes
into Conversion Shares or any exercise of Warrants into Warrant Shares in
accordance with the terms of the Notes and Warrants for any reason without the
consent of the particular Holder (any such failure or breach being referred to
as an “Event”), the Company shall pay in cash as liquidated damages for such
failure and not as a penalty to each Holder an amount equal to two percent (2%)
of such Holder’s Subscription Amount for the initial thirty (30) day period
until the applicable Event has been cured, which shall be pro rated for such
periods less than thirty (30) days and two percent (2%) of such Holder’s
Subscription Amount for each subsequent thirty (30) day period until the
applicable Event has been cured which shall be pro rated for such periods less
than thirty days (the “Periodic Amount”). Payments to be made pursuant to this Section 7(e) shall
be due and payable immediately upon demand in immediately available cash funds.
The parties agree that the Periodic Amount represents a reasonable estimate on
the part of the parties, as of the date of this Agreement, of the amount of
damages that may be incurred by the Holders if the Registration Statement is
not filed on or prior to the Filing Date and maintained in the manner
contemplated herein during the Effectiveness Period or if any other Event as
described herein has occurred. Notwithstanding the foregoing, the Company shall
remain obligated to cure the breach or correct the condition that caused the
Event, and the Holder shall have the right to take any action necessary or
desirable to enforce such obligation. Each Holder of Registrable Securities
acknowledges that, notwithstanding any provision of this Agreement, no damages
shall be payable in connection with the Company’s imposition of a Blackout
Period in accordance with Section 3(n) of this Agreement.

(f)            Specific Enforcement, Consent to
Jurisdiction.

(i)            The Company and the Holders
acknowledge and agree that irreparable damage would occur in the event that any
of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to an injunction or injunctions to prevent or cure
breaches of the provisions of this Agreement and to enforce specifically the
terms and provisions hereof, this being in addition to any other remedy to
which any of them may be entitled by law or equity.

(ii)           Each of the Company and the Holders (i) hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts located in New York City, New York for the purposes of any suit, action
or proceeding arising out of or relating to this Agreement and (ii) hereby
waives, and agrees not to assert in any such suit, action or proceeding, any
claim that it is not personally subject to the jurisdiction of such court, that
the suit, action or proceeding is brought in an inconvenient forum or that the
venue of the suit, action or proceeding is improper. Each of the Company and
the 

 15
 

 

Holders
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address in effect for notices to it
under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing in this Section 7(f) shall
affect or limit any right to serve process in any other manner permitted by
law.

(g)           Amendments and Waivers. The
provisions of this Agreement, including the provisions of this sentence, may
not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the same shall be in
writing and signed by the Company and the Holders of at least a majority of the
Registrable Securities. Notwithstanding the foregoing, a waiver or consent to
depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of Holders and that does not directly or indirectly
affect the rights of other Holders may be given by Holders of the Registrable
Securities to which such waiver or consent relates; provided, however, that the
provisions of this sentence may not be amended, modified, or supplemented
except in accordance with the provisions of the immediately preceding sentence.

(h)           Notices. Any and all notices
or other communications or deliveries required or permitted to be provided
hereunder shall be in writing and shall be deemed given and effective on the
earlier of (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile telephone number specified for
notice prior to 5:00 p.m., New York City time, on a Business Day, (ii) the
next Business Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in
this Section on a day that is not a Business Day or later than 5:00 p.m.,
New York City time, on any date and earlier than 11:59 p.m., New York City
time, on such date, (iii) the Business Day following the date of mailing,
if sent by nationally recognized overnight courier service such as Federal
Express or (iv) actual receipt by the party to whom such notice is
required to be given. The addresses for such communications shall be with
respect to each Holder at its address set forth under its name on Schedule 1
attached hereto, or with respect to the Company, addressed to:

Access
Pharmaceuticals, Inc.

2600 Stemmons Freeway, Suite 176

Dallas, Texas 75207

Attention: President 

Facsimile No.: (214) 905-5101

or to such other address or addresses or facsimile
number or numbers as any such party may most recently have designated in
writing to the other parties hereto by such notice. Copies of notices to the
Company shall be sent to:

Bingham McCutchen LLP

150 Federal Street

Boston, Massachusetts 02110 

Attention:  John J. Concannon, III

Facsimile No.: (617) 951-8736

 16
 

 

Copies of notices to any Holder shall be sent to the
addresses, if any, listed on Schedule 1 attached hereto.

(i)            Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the parties and
their successors and permitted assigns and shall inure to the benefit of each
Holder and its successors and assigns; provided, that the Company may not
assign this Agreement or any of its rights or obligations hereunder without the
prior written consent of each Holder; and provided, further, that each Holder
may assign its rights hereunder in the manner and to the Persons as permitted
under the Purchase Agreement.

(j)            Assignment of Registration Rights.
The rights of each Holder hereunder, including the right to have the Company
register for resale Registrable Securities in accordance with the terms of this
Agreement, shall be automatically assignable by each Holder to any transferee
of such Holder of all or a portion of the Notes, the Warrants or the
Registrable Securities if: (i) the Holder agrees in writing with the
transferee or assignee to assign such rights, and a copy of such agreement is
furnished to the Company within a reasonable time after such assignment, (ii) the
Company is, within a reasonable time after such transfer or assignment,
furnished with written notice of (a) the name and address of such
transferee or assignee, and (b) the securities with respect to which such
registration rights are being transferred or assigned, (iii) following
such transfer or assignment the further disposition of such securities by the
transferee or assignees is restricted under the Securities Act and applicable
state securities laws, (iv) at or before the time the Company receives the
written notice contemplated by clause (ii) of this Section 7(j), the
transferee or assignee agrees in writing with the Company to be bound by all of
the provisions of this Agreement, and (v) such transfer shall have been
made in accordance with the applicable requirements of the Purchase Agreement.
The rights to assignment shall apply to the Holders (and to subsequent)
successors and assigns.

The Company may require,
as a condition of allowing such assignment in connection with a transfer of
Notes, Warrants or Registrable Securities (i) that the Holder or
transferee of all or a portion of the Notes, the Warrants or the Registrable
Securities as the case may be, furnish to the Company a written opinion of
counsel that is reasonably acceptable to the Company to the effect that such transfer
may be made without registration under the Securities Act, (ii) that the
Holder or transferee execute and deliver to the Company an investment letter in
form and substance acceptable to the Company and (iii) that the transferee
be an “accredited investor” as defined in Rule 501(a) promulgated
under the Securities Act.

(k)           Counterparts; Facsimile. This
Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and, all of which taken together
shall constitute one and the same Agreement. In the event that any signature is
delivered by electronic means or facsimile transmission, such signature shall
create a valid binding obligation of the party executing (or on whose behalf
such signature is executed) the same with the same force and effect as if such
facsimile signature were the original thereof.

(l)            Governing Law. This Agreement
shall be governed by and construed in 

 17
 

 

accordance with the laws
of the State of New York, without regard to principles of conflicts of law
thereof.

(m)          Cumulative Remedies. The
remedies provided herein are cumulative and not exclusive of any remedies
provided by law.

(n)           Severability. If any term,
provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable in any
respect, the remainder of the terms, provisions, covenants and restrictions set
forth herein shall remain in full force and effect and shall in no way be
affected, impaired or invalidated, and the parties hereto shall use their
reasonable efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may
be hereafter declared invalid, illegal, void or unenforceable.

(o)           Headings. The headings herein
are for convenience only, do not constitute a part of this Agreement and shall
not be deemed to limit or affect any of the provisions hereof.

(p)           Registrable
Securities Held by the Company and its Affiliates. Whenever the consent or
approval of Holders of a specified percentage of Registrable Securities is
required hereunder, Registrable Securities held by the Company or its
Affiliates (other than any Holder or transferees or successors or assigns
thereof if such Holder is deemed to be an Affiliate solely by reason of its
holdings of such Registrable Securities) shall not be counted in determining
whether such consent or approval was given by the Holders of such required
percentage.

(q)           Obligations of
Purchasers. The Company acknowledges that the obligations of each Purchaser
under this Agreement, are several and not joint with the obligations of any
other Purchaser, and no Purchaser shall be responsible in any way for the
performance of the obligations of any other Purchaser under this Agreement. The
decision of each Purchaser to enter into to this Agreement has been made by
such Purchaser independently of any other Purchaser. The Company further
acknowledges that nothing contained in this Agreement, and no action taken by
any Purchaser pursuant hereto, shall be deemed to constitute the Purchasers as
a partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated
hereby. Each Purchaser shall be entitled to independently protect and enforce
its rights, including without limitation, the rights arising out of this
Agreement, and it shall not be necessary for any other Purchaser to be joined
as an additional party in any proceeding for such purpose.

Each Purchaser was introduced to the Company by SCO Securities LLC
which has acted solely as agent for the Company and not for any Purchaser
(other than itself). Each Purchaser has been represented by its own separate
legal counsel in their review and negotiation of this Agreement and with
respect to the transactions contemplated hereby. 

 18
 

 

For reasons of administrative convenience only, this Agreement has been
prepared by Special Counsel (counsel for SCO Securities LLC) and the Special
Counsel will perform certain duties under this Agreement. Such counsel does not
represent all of the Purchasers but only SCO Securities LLC. The Company has
elected to provide all Purchasers with the same terms and Agreement for the
convenience of the Company and not because it was required or requested to do
so by the Purchasers. The Company acknowledges that such procedure with respect
to this Agreement in no way creates a presumption that the Purchasers are in
any way acting in concert or as a group with respect to this Agreement or the
transactions contemplated hereby or thereby.

[signature
page follows]

 19
 

 

IN WITNESS WHEREOF, the parties hereto have caused
this Investor Rights Agreement to be duly executed by their respective
authorized persons as of the date first indicated above.

	
  COMPANY:

  
	
  ACCESS PHARMACEUTICALS, INC.

  
	
  By: 

  	
  /s/ Rosemary
  Mazanet

  	
   

  
	
  Name: Rosemary
  Mazanet

  	
   

  
	
  Title: Acting
  CEO

  	
   

  

 

 20
 

 

 

	
  PURCHASERS:

  
	
  Print Exact Name:
  SCO Capital Partners LLC

  
	
  By: 

  	
  /s/ Steven H.
  Rouhandeh

  	
   

  
	
  Name: Steven H.
  Rouhandeh

  	
   

  
	
  Title: Chairman

  	
   

  

 

	
  Print Exact Name: Beach
  Capital LLC

  
	
  By: 

  	
  /s/ Steven H.
  Rouhandeh

  	
   

  
	
  Name: Steven H.
  Rouhandeh

  	
   

  
	
  Title: 

  	
   

  

 

	
  Print Exact Name: Lake End
  Capital LLC

  
	
  By: 

  	
  /s/ Jeffrey B.
  Davis

  	
   

  
	
  Name: Jeffrey B.
  Davis

  	
   

  
	
  Title: 

  	
   

  

 

[Omnibus Access
Pharmaceuticals, Inc. Investor Rights Agreement Signature Page]

 21
 

 

SCHEDULE 1

PURCHASERS

 

	
  Name and Address

  	
   

  	
  Copy of Notice
  to:

  
	
  SCO Capital Partners
  LLC

  	
   

  	
  Wiggin and Dana LLP

  
	
  1285 Avenue of the Americas, 35th Floor

  	
   

  	
  400 Atlantic Street

  
	
  New York, NY 10019

  	
   

  	
  Stamford, CT 06901

  
	
  Attn: Jeffrey B. Davis

  	
   

  	
  Telephone: (203) 363-7630

  
	
  T: 212-554-4158

  	
   

  	
  Facsimile: (203) 363-7676

  
	
  F: 212-554-4058

  	
   

  	
  Attn: Michael Grundei, Esq.

  
	
  Email: JDavis@SCOGroup.com

  	
   

  	
   

  
	
  Beach Capital LLC

  	
   

  	
   

  
	
  1285 Avenue of the Americas, 35th Floor

  	
   

  	
   

  
	
  New York, NY 10019

  	
   

  	
   

  
	
  Telephone: (212) 554-4158

  	
   

  	
   

  
	
  Fax: (212) 554-4058

  	
   

  	
   

  
	
  contact: Steven H. Rouhandeh

  	
   

  	
   

  
	
  e-mail: srouhandeh@scogroup.com

  	
   

  	
   

  
	
  Lake End Capital LLC

  	
   

  	
   

  
	
  33 Tall Oaks Drive

  	
   

  	
   

  
	
  Summit, New Jersey 07501

  	
   

  	
   

  
	
  Attn: Jeffrey B. Davis

  	
   

  	
   

  
	
  T: (212) 554-4158

  	
   

  	
   

  
	
  F: (212) 554-4058

  	
   

  	
   

  

 

 22
 

 

EXHIBIT A

PLAN OF
DISTRIBUTION

We are registering the
shares of common stock on behalf of the selling security holders. Sales of
shares may be made by selling security holders, including their respective
donees, transferees, pledgees or other successors-in-interest directly to
purchasers or to or through underwriters, broker-dealers or through agents.
Sales may be made from time to time on the                               ,
any other exchange or market upon which our shares may trade in the future, in
the over-the-counter market or otherwise, at market prices prevailing at the
time of sale, at prices related to market prices, or at negotiated or fixed
prices. The shares may be sold by one or more of, or a combination of, the
following:

·                                          a
block trade in which the broker-dealer so engaged will attempt to sell the
shares as agent but may position and resell a portion of the block as principal
to facilitate the transaction (including crosses in which the same broker acts
as agent for both sides of the transaction);

·                                          purchases
by a broker-dealer as principal and resale by such broker-dealer, including
resales for its account, pursuant to this prospectus;

·                                          ordinary
brokerage transactions and transactions in which the broker solicits purchases;

·                                          through
options, swaps or derivatives;

·                                          in
privately negotiated transactions;

·                                          in
making short sales or in transactions to cover short sales; and

·                                          put
or call option transactions relating to the shares.

The selling security
holders may effect these transactions by selling shares directly to purchasers
or to or through broker-dealers, which may act as agents or principals. These
broker-dealers may receive compensation in the form of discounts, concessions
or commissions from the selling security holders and/or the purchasers of
shares for whom such broker-dealers may act as agents or to whom they sell as
principals, or both (which compensation as to a particular broker-dealer might
be in excess of customary commissions). The selling security holders have
advised us that they have not entered into any agreements, understandings or
arrangements with any underwriters or broker-dealers regarding the sale of
their securities.

The selling security
holders may enter into hedging transactions with broker-dealers or other
financial institutions. In connection with those transactions, the
broker-dealers or other financial institutions may engage in short sales of the
shares or of securities convertible into or exchangeable for the shares in the
course of hedging positions they assume with the selling security holders. The
selling security holders may also enter into options or other 

 23
 

 

transactions with
broker-dealers or other financial institutions which require the delivery of
shares offered by this prospectus to those broker-dealers or other financial
institutions. The broker-dealer or other financial institution may then resell
the shares pursuant to this prospectus (as amended or supplemented, if required
by applicable law, to reflect those transactions).

The selling security
holders and any broker-dealers that act in connection with the sale of shares
may be deemed to be “underwriters” within the meaning of Section 2(11) of
the Securities Act of 1933, and any commissions received by broker-dealers or
any profit on the resale of the shares sold by them while acting as principals
may be deemed to be underwriting discounts or commissions under the Securities
Act. The selling security holders may agree to indemnify any agent, dealer or
broker-dealer that participates in transactions involving sales of the shares against
liabilities, including liabilities arising under the Securities Act. We have
agreed to indemnify each of the selling security holders and each selling
security holder has agreed, severally and not jointly, to indemnify us against
some liabilities in connection with the offering of the shares, including
liabilities arising under the Securities Act.

The selling security
holders will be subject to the prospectus delivery requirements of the
Securities Act. We have informed the selling security holders that the
anti-manipulative provisions of Regulation M promulgated under the Securities
Exchange Act of 1934 may apply to their sales in the market.

Selling security holders
also may resell all or a portion of the shares in open market transactions in
reliance upon Rule 144 under the Securities Act, provided they meet the
criteria and conform to the requirements of Rule 144.

Upon being notified by a
selling security holder that a material arrangement has been entered into with
a broker-dealer for the sale of shares through a block trade, special offering,
exchange distribution or secondary distribution or a purchase by a broker or
dealer, we will file a supplement to this prospectus, if required pursuant to Rule 424(b) under
the Securities Act, disclosing:

·                                          the
name of each such selling security holder and of the participating
broker-dealer(s);

·                                          the
number of shares involved;

·                                          the
initial price at which the shares were sold;

·                                          the
commissions paid or discounts or concessions allowed to the broker-dealer(s), where
applicable;

·                                          that
such broker-dealer(s) did not conduct any investigation to verify the
information set out or incorporated by reference in this prospectus; and

·                                          other
facts material to the transactions.

 24
 

 

In addition, if required
under applicable law or the rules or regulations of the Commission, we
will file a supplement to this prospectus when a selling security holder
notifies us that a donee or pledgee intends to sell more than 500 shares of
common stock.

We are paying all
expenses and fees customarily paid by the issuer in connection with the
registration of the shares. The selling security holders will bear all
brokerage or underwriting discounts or commissions paid to broker-dealers in
connection with the sale of the shares.

 25
 

 

EXHIBIT B

FORM OF
NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT

[Name and Address of Transfer Agent]

Re:  Access
Pharmaceuticals, Inc.

Dear [                    ]:

We are counsel to
Access Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and
have represented the Company in connection with that certain Convertible Note
and Warrant Purchase Agreement (the “Purchase Agreement”) dated as of                               ,
2006 by and among the Company and the buyers named therein (collectively, the “Holders”)
pursuant to which the Company issued to the Holders its secured convertible
promissory notes (the “Notes”) convertible into shares of its Common Stock, par
value $0.01 per share (the “Common Stock”), and warrants to purchase shares of
the Common Stock (the “Warrants”). Pursuant to the Purchase Agreement, the
Company has also entered into an Investor Rights Agreement with the Holders
(the “Investor Rights Agreement”) pursuant to which the Company agreed, among
other things, to register the shares of Common Stock issuable upon conversion
of the Notes and upon exercise of the Warrants, under the Securities Act of
1933, as amended (the “1933 Act”). In connection with the Company’s obligations
under the Investor Rights Agreement, on                     
          , 2006, the Company
filed a Registration Statement on Form S-          
(File No. 333-                    )
(the “Registration Statement”) with the Securities and Exchange Commission (the
“SEC”) relating to the Registrable Securities which names each of the Holders
as a selling securityholder thereunder.

In connection with
the foregoing, we advise you that a member of the SEC’s staff has advised us by
telephone that the SEC has entered an order declaring the Registration
Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on
[ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after telephonic
inquiry of a member of the SEC’s staff, that any stop order suspending its
effectiveness has been issued or that any proceedings for that purpose are
pending before, or threatened by, the SEC and the Registrable Securities are
available for resale under the 1933 Act pursuant to the Registration Statement.

Very truly yours,

	
  By:

  	
   

  	
   

  

cc:  [LIST NAMES
OF HOLDERS]

 26Exhibit No. 10.33

AMENDMENT TO
RIGHTS AGREEMENT

This Amendment to Rights
Agreement, dated as of February 16, 2006 (the “Amendment”), is by
and between Access Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
and American Stock Transfer & Trust Company, a New York corporation
(the “Rights Agent”), amending certain provisions of the Rights
Agreement, dated as of October 31, 2001 (as amended and in effect from
time to time, including, without limitation, by that certain Amendment to
Rights Agreement, dated as of October 31, 2005, the “Agreement”),
by and between the Company and the Rights Agent. Terms not otherwise defined
herein which are defined in the Agreement shall have the same respective
meanings herein as therein.

WHEREAS, in accordance
with Section 28 of the Agreement, the Company has directed prior to the
Distribution Date that it and the Rights Agent amend certain provisions of the
Agreement as specifically set forth in this Amendment.

NOW, THEREFORE, in
consideration of the mutual agreements contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

1.             Amendment to Agreement. The Agreement is hereby
amended as follows:

(a)           The defined term “Acquiring Person”
in Section 1(a) of the Agreement is hereby deleted in its entirety
and replaced with the following:

“Acquiring Person”
means any Person who, together with all Affiliates and Associates of such
Person, is the Beneficial Owner of 15% or more of the Common Shares of the
Company then outstanding or who was such a Beneficial Owner at any time after
the date hereof, whether or not such Person continues to be the Beneficial
Owner of 15% or more of the Common Shares then outstanding, but will not
include the Company, any Subsidiary of the Company, any employee benefit plan
of the Company or any Subsidiary of the Company, or any entity holding
securities of the Company organized, appointed, or established by the Company
or any Subsidiary for or pursuant to the terms of any such plan. Notwithstanding
the foregoing, (i) Heartland, will not be deemed to be an Acquiring Person
so long as Heartland does not own, in the aggregate, in excess of 20% of the
issued and outstanding Common Shares, (ii) Oracle will not be deemed to be
an Acquiring Person so long as Oracle does not own, in the aggregate, in excess
of 35% of the issued and outstanding Common Shares, (iii) SCO Capital
Partners LLC, together with all of its affiliates and associates (including, without
limitation, Beach Capital LLC and Lake End Capital LLC) (“SCO”), will
not be deemed to be an Acquiring Person at any time and (iv) no Person
will become an “Acquiring Person” solely as the result of an acquisition of
Common Shares by the Company which, by reducing the number of shares
outstanding, increases the proportionate number of shares beneficially owned by
such Person to 15% or more of the Common Shares of the Company then
outstanding, or in 

 

the case of Heartland or
Oracle, to 20% or 35%, respectively, or more of the Common Shares of the
Company then outstanding; provided, however,
that if a Person (other than SCO) becomes the Beneficial Owner of 15% or more,
or in the case of Heartland or Oracle 20% or 35%, respectively, or more, of the
Common Shares of the Company then outstanding by reason of share purchases by
the Company, and after such share purchases by the Company becomes the
Beneficial Owner of any additional Common Shares of the Company, then such
Person will be deemed to be an “Acquiring Person.”  Notwithstanding the foregoing, if the Board
of Directors of the Company determines in good faith that a Person who would
otherwise be an “Acquiring Person,” as defined pursuant to the foregoing
provisions of this paragraph (a), has become such inadvertently, and such
Person divests as promptly as practicable a sufficient number of Common Shares
so that such Person would no longer be an “Acquiring Person,” as defined
pursuant to the foregoing provisions of this paragraph (a), then such Person
shall not be deemed to be an “Acquiring Person” for any purposes of this Rights
Agreement.”

(b)           Section 3(a) of the
Agreement is hereby deleted in its entirety and replaced with the following:

“(a)         Until the earlier of:

(i)            the close of business on the tenth
Business Day after the Shares Acquisition Date; or

(ii)           the tenth Business Day (or such later
date as may be determined by action of the Board of Directors prior to such
time as any Person becomes an Acquiring Person) after the date of the
commencement by any Person (other than SCO, the Company, any Subsidiary of the
Company, any employee benefit plan of the Company or of any Subsidiary of the
Company or any entity holding Common Shares for or pursuant to the terms of any
such plan) of, or of the first public announcement of the intention of any
Person (other than SCO, the Company, any Subsidiary of the Company, any
employee benefit plan of the Company or of any Subsidiary of the Company or any
entity holding Common Shares for or pursuant to the terms of any such plan) to
commence, a tender or exchange offer, the consummation of which would result in
any Person (other than Heartland or Oracle) becoming the Beneficial Owner of
Common Shares aggregating 15% or more of the then outstanding Common Shares, or
in the case of Heartland or Oracle, the consummation of which would result in
such Person becoming the Beneficial Owner of Common Shares aggregating 20% or
35%, respectively, or more of the then outstanding Common Shares;

(including any such date
which is after the date of this Agreement and prior to the issuance of the
Rights; the earliest of such dates being herein referred to as the “Distribution
Date”):

(x)            no Right may be exercised;

 2
 

 

(y)           the Rights will be evidenced (subject
to the provisions of Section 3(b) hereof) by the certificates for
Common Shares registered in the names of the holders thereof (which
certificates will also be deemed to be certificates for Rights) and not by
separate certificates; and

(z)            the Rights (and the right to receive
certificates therefor) will be transferable only in connection with the
transfer of the underlying Common Shares.

As soon as practicable
after the Distribution Date, the Company will prepare and execute, the Rights
Agent will countersign, and the Company will send or cause to be sent (and if
requested, the Rights Agent will send) by first-class, postage-prepaid mail or
other appropriate means, to each record holder of Common Shares as of the Close
of Business on the Distribution Date, at the address of such holder shown on
the records of the Company, a certificate for Rights, in substantially the form
of the attached Exhibit B (collectively, “Rights Certificates”),
evidencing one Right for each Common Share so held. As of and after the
Distribution Date, the Rights will be evidenced solely by Rights Certificates.”

(c)           The second paragraph of Exhibit C
of the Agreement is hereby deleted in its entirety and replaced with the
following:

“Initially, the Rights
will be attached to all certificates representing Common Shares then
outstanding, and no separate Rights certificates will be distributed. Until the
earlier to occur of (i) 10 business days following a public announcement
that a person or group of affiliated or associated persons other than SCO
Capital Partners LLC, together with all of its affiliates and associates
(including, without limitation, Beach Capital LLC and Lake End Capital LLC) (“SCO”)
(an “Acquiring Person”), have acquired beneficial ownership of 15% or
more, or in the case of Heartland Advisors, Inc., together with all of its
affiliates and associates (“Heartland”), or Oracle Partners LP, together
with all of its affiliates and associates (“Oracle”), 20% or 35%,
respectively, or more, of the outstanding Common Shares (the date of such an
announcement being a “Shares Acquisition Date”), or (ii) 10
business days (or such later date as may be determined by action of the Board
of Directors prior to such time as any Person becomes an Acquiring Person)
following the commencement of, or announcement of an intention to make, a
tender offer or exchange offer the consummation of which would result in the
beneficial ownership by a person or group (other than SCO, Heartland or Oracle)
of 15% or more, or in the case of Heartland or Oracle, 20% or 35%, respectively,
or more, of such outstanding Common Shares (in either case, (i) or (ii),
the “Distribution Date”), the Rights will be evidenced, with respect to
any of the Common Share certificates outstanding as of the Record Date, by such
Common Share certificates together with a copy of this Summary of Rights.”

 3
 

 

2.             Condition to Effectiveness. This Amendment shall
not become effective until executed by the Company and the Rights Agent.

3.             Ratification, Etc. Except as expressly amended
hereby, all terms and conditions of the Agreement are hereby ratified and
confirmed in all respects and shall continue in full force and effect. The
Agreement and this Amendment shall be read and construed as a single agreement.
All references to the Agreement shall hereafter refer to the Agreement, as
amended hereby.

4.             No Waiver. Nothing contained herein shall
constitute a waiver of, impair or otherwise affect, any obligation of the
Company under the Agreement or any rights of any party consequent thereon.

5.             Counterparts. This Amendment may be executed in
one or more counterparts, each of which shall be deemed an original but which
together shall constitute one and the same instrument.

6.             Governing Law. This amendment shall be governed
by, and construed in accordance with, the laws of the State of Delaware
(without reference to conflict of laws).

[the
remainder of this page is left blank intentionally]

 4
 

 

IN WITNESS
WHEREOF, the parties hereto have executed this Amendment as a document under
seal as of the date first above written.

	
  

  	
   

  	
  Company:

  
	
   

  	
   

  	
  ACCESS PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
  By: 

  	
  /s/ Stephen B. Thompson

  	
   

  
	
   

  	
   

  	
  Name: Stephen B.
  Thompson

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President, Chief Financial Officer

  

 

[Rights Agent signature appears on
following page]

 5
 

 

 

	
  

  	
   

  	
  Rights Agent:

  
	
   

  	
   

  	
  AMERICAN STOCK TRANSFER & 

  TRUST COMPANY, as Rights Agent

  
	
   

  	
   

  	
  By: 

  	
  /s/ Herbert J. Lemmer

  	
   

  
	
   

  	
   

  	
  Name: Herbert J.
  Lemmer

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 6

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