Document:

Exhibit
10.23

 

May 10, 2005

 

 

Rosemary Mazanet, MDPhD

24 Daffodil Lane

Cos Cob, Connecticut, 06807

 

Dear Dr. Mazanet:

 

We are pleased to extend
you an offer of employment with Access Pharmaceuticals, Inc. (the “Company”)
under the terms specified below:

 

1.                                       The
title of your position will be Acting Chief Executive Officer and you will
report directly to, and be subject to the direction of, the Company’s Board of
Directors. Your duties will be commensurate with the position of Chief
Executive Officer.

 

2.                                       Your
employment with the Company will be on an at-will basis, which means that it
will not be for a definite period of time but it will be for no less than 3
months, and no more than 6 months without renegotiation of this contract. This
agreement may be terminated with 30 days written notice at any time by either
you or the Company for any reason. .

 

3.                                       Your
employment with the Company will be on a full-time basis, although you may
pursue other previously existing business activities during your employment that
are not competitive with the Company. You will be expected to periodically work
at the Company’s offices in Dallas, Texas at the mutual agreement of you and
the Board of Directors. You will begin your employment on May 11, 2005 (your “Start
Date”).

 

4.                                       Your
compensation will consist of the following:

 

a.                                       Your
salary will be payable at a weekly rate of $7,500 for the duration of this
agreement.

 

b.                                      You
will be granted a non-qualified option (the “Option”) of  30,000 shares of the Company’s common stock
with an exercise price equal to the last sale price on AMEX for the Company’s
shares on your Start Date. The Option will vest monthly over a six (6) month
period regardless of your remaining employed by the Company. Such options shall
remain exercisable for one year after the termination of your employment and
would be subject to the standard terms of the Company’s stock option plan and
stock option agreement except that such options shall vest immediately prior to
a change of control event.

 

 

c.                                       As
an employee of the Company, to the extent that you are not otherwise covered by
a similar benefit, you will be eligible for the benefits similar to that of the
Company’s executive officers.

 

d.                                      sign
on bonus of $30,000 to compensate for lost consulting wages during this time.

 

e.                                       D
and O insurance + tail coverage will be provided.

 

f.                                         The Company will pay or reimburse you for all
reasonable expenses incurred or paid by you in the performance of your duties
hereunder, upon presentation of expense statements or vouchers and such other
information as the Company may require and according to the generally
applicable policies and procedures of the Company.

 

g.                                      Upon
mutual agreement, you and the Board will set milestones which would result in
the issuance of additional stock options to you.

 

5.                                       You
will maintain the confidentiality of and not use or disclose except for Company
purposes any information relating to the business or affairs of the Company,
including any activities being or proposed to be undertaken by or on behalf of
the Company and including any trade secrets, drawing, designs, information
regarding product development or testing, business plans, financial plans,
financial records and other financial, commercial, business or technical
information of the Company or of those belonging to others who do business with
the Company that is confidential or proprietary, except that you may disclose
such information (i) to the extent required by any applicable law,
regulation or court order or subpoena in which case you will notify the Company
as promptly as practicable and shall fully cooperate with the Company in its
efforts, if any, to obtain confidential treatment of such information or limit
the scope of information to be disclosed, (ii) to your legal counsel, (iii)
with the prior written consent of the Company, or (iv) that has become
generally known to the public, other than by reason of your breach of this
paragraph.

 

6.                                       This
letter contains all of the terms of the Company’s offer to you. You acknowledge
that you are not relying on any other statements, documents or representations
you believe were made to you on behalf of the Company.

 

 

We are excited about the
prospect of you joining Access Pharmaceuticals, Inc. If this offer is
acceptable to you, please sign and return one duplicate original of this letter
to me by fax. I and the other members of the Board of Directors look
forward to working with you.

 

Sincerely,

 

	
  /s/ J. Michael Flinn

  	
   

  
	
   

  
	
  Michael Flinn

  
	
  Chairman of the Board
  of Directors

  

 

 

	
  ACCEPTED:

  
	
   

  
	
   

  
	
   /s/ Rosemary Mazanet

  	
   

  
	
  Rosemary MazanetExhibit 10.24

 

EMPLOYMENT
AGREEMENT

 

AGREEMENT dated as of
June 1, 2005 between ACCESS Pharmaceuticals, Inc. a Delaware Corporation
located at 2600 Stemmons Freeway, Suite 176, Dallas, Texas 75207-2107, (the “Company”),
and Stephen B. Thompson, an individual residing at 4231 Bowser Avenue, Dallas,
Texas 75219 (the “Executive”).

 

WITNESSETH:

 

WHEREAS, the Company
desires that Executive serve as the Company’s Vice President Chief Financial
Officer; and

 

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

 

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

 

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

 

1

 

1.                                      Employment

 

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

 

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

 

2.                                       Term

 

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

 

2

 

3.                                       Compensation

 

3.1           As compensation for the Executive’s
services during the Term, the Company shall pay the Executive an annual base
salary at the rate of $154,000, payable monthly on the last day of each month
during the Term. Prior to the end of each year during the Term, the
Compensation Committee of the Company shall undertake an evaluation of the services
of the Executive during the year then ended in accordance with the Company’s
compensation program at the date hereof (the “Program”). The Company shall
consider the performance of the Executive, his contribution to the success of
the Company and entities under common control with the Company (collectively, “Affiliates”),
and other factors and shall fix an annual base salary to be paid to the
Executive during the ensuring year.

 

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

 

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

 

3

 

(i)            Incentive
Plan – the Executive shall be covered by the cash bonus plan currently
maintained by the Company and shall be afforded the opportunity thereunder to
receive a target award of 13.5% of annual base salary payable in cash and 13.5%
of annual base salary payable in Access Common Stock, to be awarded upon the
achievement of reasonable performance goals; provided that the Company may from
time to time change the Program or institute a successor to the Program, so
long as the Executive continues to be eligible to receive bonus awards of
percentages of annual base salary in amounts at least equal to those specified
as in effect on the date hereof.

 

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

 

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

 

4

 

event may such
rate, when added to payments received by him under any disability or qualified
retirement or pension plan to which the Company or an Affiliate contributes or
has contributed, be less than $90,000. If there should be a dispute about the
Executive’s disability, disability shall be determined by the Board of
Directors of the Company based upon a report from a physician, reasonably
acceptable to the Executive, who shall have examined the Executive. If the
Executive claims disability, the Executive agrees to submit to a physical
examination at any reasonable time or times by a qualified physician designated
by the President and CEO of the Company and reasonably acceptable to the
Executive. Notwithstanding any provision in the Section, the Company shall not
be obligated to make any payment to Executive on account of disability after
the expiration of this Agreement.

 

4.                                       Executive Benefits

 

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

 

5

 

be entitled to the
following employee benefits (collectively, with the benefits contemplated by
this Section 4, the “Benefits”):

 

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

 

4.2           Life Insurance  Executive shall be entitled to group term
life insurance coverage of $154,000, all premiums being paid by the Company.

 

4.3           Long Term Disability Insurance.
The Company shall maintain in effect long-term disability insurance providing
Executive in the event of his disability (as defined in Section 3 hereof) with
compensation annually equal to at least $90,000.

 

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

 

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

 

6

 

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

 

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

 

5.                                      Termination Date;
Consequences for Compensation and Benefits

 

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

 

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

 

5.1.2        The
Executive’s death;

 

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

 

7

 

this Agreement, which breach continues for 30 days
following notice by the Executive to the Company setting forth the nature of
the breach (“Resignation with Reason”)

 

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

 

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

 

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

 

8

 

For purposes of this subparagraph (5.1.5), no act or
failure to act on the Executive’s part shall be considered “willful” unless
done or omitted to be done by Executive not in good faith and without
reasonable belief that Executive’s action or omission was in the best interest
of the Company. Notwithstanding the foregoing, Executive shall not be deemed to
have been discharged for Cause unless and until there shall have been delivered
to Executive a copy of a Notice of Termination (as defined below) from the
President and CEO of the Company stating that in his good faith opinion
Executive was guilty of conduct set forth in clauses (i), (ii), (iii) or (iv)
above of this subparagraph (5.1.5) and specifying the particulars thereof in
detail.

 

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

 

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

 

9

 

5.2           Consequences
for Compensation and Benefits

 

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

 

(b)           If the Termination Date occurs by
reason of General Discharge or Resignation with Reason (i) all stock options
held by the Executive shall become immediately exercisable and shall remain
exercisable for one (1) year after the Termination Date, (ii) the Company shall
continue the health coverage contemplated by Section 4.1 for a period of 6
months thereafter, and (iii) the Executive shall be entitled to receive, within
60 days after the Termination Date, the amount set forth in Section 5.2.1.

 

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

 

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

 

10

 

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

 

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

 

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

 

(c)           The
Company shall relocate its principal executive offices or require Executive to
have as his principal location of work any location

 

11

 

which is in excess of 50 miles from the location
thereof immediately prior to the relocation date or to travel from his office
in the course of discharging his responsibilities or duties hereunder more than
thirty (30) consecutive calendar days or an aggregate of more than ninety (90)
calendar days in any consecutive 365-calendar day period without in either case
his prior consent.

 

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

 

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

 

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

 

12

 

5.3.2        If a
Change in Control of the Company shall have occurred within six (6) months
prior to the Termination Date or the Executive terminates this Agreement under
Section 5.3 the Executive will be entitled to receive, within 60 days after the
Termination Date, the Executive’s annual base salary at the Termination Date
multiplied by one (1) (i.e., one times base salary), all stock options held by
the Executive shall become immediately exercisable and shall remain exercisable
for 30 days after the Termination Date. The Company shall continue the health
coverage contemplated by Section 4.1 for a period of one (1) year thereafter.

 

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

 

6.             Indemnification

 

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

 

13

 

7.             Agreement
Not to Compete

 

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

 

8.                                      Agreement Not to Solicit

 

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

 

9.             Confidential
Information

 

Unless the Executive shall first secure the consent of
the Company, the Executive shall not disclose or use, either during or after
the Term for a period of five (5) years, any secret or confidential information
of the Company or any Affiliate, whether or not developed by the Executive,
except as required by his duties to the Company or the Affiliate.

 

14

 

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

 

10.          Arbitration

 

Any dispute or differences concerning any provision of
this Agreement which cannot be settled by mutual accord between the parties
shall be settled by arbitration in Dallas, Texas in accordance with the rules
then in effect of the American Arbitration Association, except  as otherwise provided herein. The dispute or
difference shall be referred to a single arbitrator, if the parties agree upon
one, or otherwise to three arbitrators, one to be appointed by each party and a
third arbitrator to be appointed by the first named arbitrators; and if either
party shall refuse or neglect to appoint an arbitrator within 30 days after the
other party shall have appointed an arbitrator and shall have served written
notice upon the first mentioned party requiring such party to make such
appointment, then the arbitrator first appointed shall,  at the request of the party appointing him,
proceed to her and determine the matters in difference as if he were a  single arbitrator appointed by both parties
for the purpose, and the award or determination which shall be made by the
arbitrator shall be final and binding upon the parties hereto. The arbitrator
or arbitrators shall each have not less than five (5) year’s experience in
dealing with the subject matter of the dispute or differences to be arbitrated.
Any award maybe enforced in any court of competent jurisdiction. The expenses
of any such arbitration shall be paid by the non-prevailing party, as
determined by the final order of the arbitrators.

 

15

 

11.          Miscellaneous

 

11.1         Notes

 

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

 

If to the Company:

 

Access Pharmaceuticals, Inc.

 

2600 Stemmons Freeway

 

Suite 176

 

Dallas, Texas 75207

 

Attn:       Chief
Executive Officer

 

Copy to:

 

John J. Concannon III, Esq.,

 

150 Federal Street

 

Bingham Dana LLP

 

Boston, MA 
02110

 

16

 

If to the Executive:

 

Stephen B. Thompson

 

4231 Bowser Avenue

 

Dallas, Texas 75219

 

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

 

11.2         Governing Law

 

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

 

11.3         Severability

 

Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or in the interpretation in any other jurisdiction;
however, such provision shall be deemed amended to conform to applicable laws
and to accomplish the intentions of the parties.

 

17

 

11.4         Entire Agreement, Amendment

 

The Agreement and the offer letter dated November 8,
1990, constitutes the entire agreement of the parties and may be altered or
amended or any provision hereof waived only by an agreement in writing signed
by the party against whom enforcement of any alteration, amendment, or waiver
is sought. No waiver by any party of any breach of this Agreement shall be
considered as a waiver of any subsequent breach.

 

11.5         Successors
and Assigns

 

11.5.1      The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to expressly assume and agree to perform
this Agreement in the same manner and to the same extent that the Company would
be required to perform it if no such succession had taken place. Failure of the
Company to obtain such agreement prior to the effectiveness of any such
succession shall be a breach of this Agreement and shall entitle Executive to
compensation from the Company in the same amount and on the same terms as
Executive would be entitled hereunder if Executive terminated his employment
for Change of Control. As used in Section 11.5.1., “Company” shall mean the
Company as hereinbefore defined and any successor to its business and/or assets
as aforesaid which executes and delivers the Agreement provided for in this
Section 11.5.1 or which otherwise becomes bound by all the terms and provisions
of this Agreement by operation of law.

 

18

 

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

 

11.6         Assignability

 

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

 

19

 

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

 

 

	
   

  	
  ACCESS PHARMACEUTICALS

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
   

  	
  /s/ Stephen B. Thompson

  	
   

  	
  BY:

  	
   

  	
  /s/ Rosemary Mazanet

  	
   

  
	
   

  	
  Stephen B. Thompson

  	
   

  	
  Rosemary Mazanet

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TITLE:

  	
   

  	
  Executive

  	
   

  	
  TITLE:

  	
   

  	
  Acting Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
  June 24, 2005

  	
   

  	
  DATE:

  	
   

  	
  June 24, 2005

  	
   

  
																

 

20

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