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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000318306-07-000022.txt : 20070423
<SEC-HEADER>0000318306-07-000022.hdr.sgml : 20070423
<ACCEPTANCE-DATETIME>20070420181547
ACCESSION NUMBER:		0000318306-07-000022
CONFORMED SUBMISSION TYPE:	8-K/A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20070420
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070423
DATE AS OF CHANGE:		20070420

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ACCESS PHARMACEUTICALS INC
		CENTRAL INDEX KEY:			0000318306
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				830221517
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15771
		FILM NUMBER:		07779973

	BUSINESS ADDRESS:	
		STREET 1:		2600 N STEMMONS FRWY
		STREET 2:		STE 176
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75207
		BUSINESS PHONE:		2149055100

	MAIL ADDRESS:	
		STREET 1:		2600 N STEMMONS FRWY
		STREET 2:		STE 176
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75207

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHEMEX PHARMACEUTICALS INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHEMEX CORP/WY
		DATE OF NAME CHANGE:	19831102
</SEC-HEADER>
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<TYPE>8-K/A
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<FILENAME>r8k-158.htm
<DESCRIPTION>FORM 8-K/A
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    <title>Unassociated Document</title>
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                    material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
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      <div style="MARGIN: 0in 0in 0pt">&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">
        <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify">Access Pharmaceuticals,
          Inc (&#8220;Access&#8221;) filed a Current Report on Form 8-K with the Securities and
          Exchange Commission on April 19, 2007 (the &#8220;Initial Filing&#8221;), relating to the
          entry into a definitive merger agreement among Access and Somanta Acquisition
          Corporation (&#8220;Merger Sub&#8221;), a wholly owned subsidiary of Access and a Delaware
          corporation and Somanta Pharmaceuticals, Inc. (&#8220;Somanta&#8221;), Somanta Incorporated,
          a Delaware corporation and a wholly owned subsidiary of Somanta and Somanta
          Limited, a company organized under the laws of England and a wholly&#8211;owned
          subsidiary of Somanta.</div>
        <div>&#160;</div>
        <div style="TEXT-ALIGN: justify">This Amendment No. 1 to the Initial Filing
          on
          Form 8-K/A is being filed solely to include the paragraphs under the headings
          &#8220;Additional Information about the Merger and Where to Find It&#8221; and &#8220;Participants
          in the Solicitation.&#8221; For the convenience of the reader, the registrant has
          amended and restated the Initial Filing in its entirety except for the
          inclusion
          of the foregoing paragraphs. Except as set forth above, no other changes
          are
          being made to the Initial Filing.</div>
        <div>&#160;</div>
        <div style="TEXT-ALIGN: justify">&#160;<strong>Item 1.01. &#160;&#160;Entry into
          a Material Definitive Agreement</strong><br><br>On April 18, 2007, Access
          Pharmaceuticals, Inc., a Delaware corporation (&#8220;Access&#8221;), Somanta Acquisition
          Corporation (&#8220;Merger Sub&#8221;), a wholly owned subsidiary of Access and a Delaware
          corporation, and Somanta Pharmaceuticals, Inc., a Delaware corporation
          (&#8220;Somanta&#8221;), Somanta Incorporated, a Delaware corporation and a wholly-owned
          Subsidiary of Somanta, and Somanta Limited, a company organized under the
          laws
          of England and a wholly-owned Subsidiary of Somanta Incorporated entered
          into an
          Agreement and Plan of Merger (the &#8220;Merger Agreement&#8221;), as announced in the
          attached joint press release dated April 19, 2007. Pursuant to the terms
          and
          subject to the conditions set forth in the Merger Agreement, Merger Sub
          will
          merge with and into Somanta, with Somanta continuing as the surviving
          corporation and becoming a wholly owned subsidiary of Access (the &#8220;Merger&#8221;). The
          Board of Directors of Access has unanimously approved the Merger and the
          Merger
          Agreement. </div>
      </div>
      <div style="MARGIN: 0in 0in 0pt">&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">
        <div style="MARGIN: 0in 0in 0pt">In connection with the Merger, all of Somanta&#8217;s
          common stock that is outstanding at the effective time of the Merger (the
          &#8220;Effective Time&#8221;) will be converted into 500,000 shares of Access&#8217; common stock.
          No fractional shares of Access&#8217;s common stock will be issued as a result of the
          Merger. In addition, all of Somanta&#8217;s preferred stock that is outstanding at the
          effective time of the Merger (the &#8220;Effective Time&#8221;) will be converted into
          1,000,000 shares of Access&#8217; common stock. No fractional shares of Access&#8217;s
          preferred stock will be issued as a result of the Merger. </div>
        <div style="MARGIN: 0in 0in 0pt">&#160;</div>
        <div style="MARGIN: 0in 0in 0pt">At April 18, 2007, there were 15,459,137
          shares
          of Somanta common stock outstanding including 1,166,534 shares issuable
          upon the
          exercise of warrants that are expected to be exercised prior to the Effective
          Timeand 591.6 shares of Somanta preferred shares outstanding. At April
          18, 2004,
          there were outstanding warrants to purchase 5,936,304 shares of Somanta
          common
          stock that are not expected to be exercised prior to the Effective Time
          and are
          expected to be converted into approximately 192,000 warrants (subject to
          adjustment as provided in the Merger Agreement) to acquire Access&#8217; common stock
          at the Effective Time of the Merger.</div>
        <div style="MARGIN: 0in 0in 0pt">&#160;</div>
        <div style="MARGIN: 0in 0in 0pt">
          <div style="MARGIN: 0in 0in 0pt">The completion of the Merger is subject
            to
            various customary conditions, including obtaining the approval of the
            Somanta
            stockholders. The Merger is intended to qualify as a reorganization for
            federal
            income tax purposes. </div>
          <div style="MARGIN: 0in 0in 0pt">&#160;</div>
          <div style="MARGIN: 0in 0in 0pt">
            <div style="MARGIN: 0in 0in 0pt">The foregoing description of the Merger
              Agreement is qualified in its entirety by reference to the full text
              of the
              Merger Agreement, which is attached to this Report as Exhibit 2.1 and
              incorporated herein by reference. The Merger Agreement has been attached
              to
              provide investors with information regarding its terms. It is not intended
              to
              provide any other factual information about Access or Somanta. In particular,
              the assertions embodied in the representations and warranties made
              by Somanta in
              the Merger Agreement are qualified by information in confidential disclosure
              schedules provided by Somanta to Access in connection with the signing
              of the
              Merger Agreement. These disclosure schedules contain information that
              modifies,
              qualifies and creates exceptions to the representations and warranties
              set forth
              in the Merger Agreement. Moreover, certain representations and warranties
              in the
              Merger Agreement were used for the purpose of allocating risk between
              Access and
              Somanta rather than establishing matters as facts. Accordingly, you
              should not
              rely on the representations and warranties in the Merger Agreement
              as
              characterizations of the actual state of facts about Access or Somanta.</div>
            <div>&#160;</div>
            <div style="TEXT-ALIGN: justify"><strong>Additional Information about
              the Merger
              and Where to Find It</strong></div>
            <div>&#160;</div>
            <div style="TEXT-ALIGN: justify">In connection with the proposed Merger,
              Access
              and Somanta intend to file relevant materials with the Securities and
              Exchange
              Commission (&#8220;SEC&#8221;), including a registration statement on Form S-4 that will
              contain a prospectus and a proxy statement. Investors and security
              holders of
              Somanta are urged to read these materials when they become available
              because
              they will contain important information about Access, Somanta and the
              Merger.
              The proxy statement, prospectus and other relevant materials (when
              they become
              available), and any other documents filed by Access or Somanta with
              the SEC, may
              be obtained free of charge at the SEC's web site at <u>www.sec.gov</u>.
              Investors and security holders are urged to read the proxy statement,
              prospectus
              and other relevant materials when they become available before making
              any voting
              or investment decision with respect to the Merger.</div>
            <div>&#160;</div>
            <div style="TEXT-ALIGN: justify"><strong>Participants in the
              Solicitation</strong></div>
            <div>&#160;</div>
            <div style="TEXT-ALIGN: justify">Access, Somanta and their respective
              directors
              and executive officers may be deemed to be participants in the solicitation
              of
              proxies from the stockholders of Somanta in connection with the proposed
              transaction. Information regarding the special interests of these directors
              and
              executive officers in the merger transaction will be included in the
              proxy
              statement/prospectus referred to above. Additional information regarding
              the
              directors and executive officers of Access is also included in the
              Access Annual
              Report on Form 10-KSB for the year ended December 31, 2006 and in its
              proxy
              statement for its 2007 Annual Meeting of stockholders. Additional information
              regarding the directors and executive officers of Somanta is included
              in the
              Somanta Annual Report on Form 10-KSB for the year ended April 30, 2006
              and in
              its proxy statement for its 2006 Annual Meeting of stockholders. These
              documents
              are available free of charge at the SEC's web site (<u>www.sec.gov</u>).</div>
          </div>
          <div style="MARGIN: 0in 0in 0pt">&#160;</div>
        </div>
      </div>
      <table border="0" cellpadding="0" cellspacing="0" width="600" style="WIDTH: 1227px; mso-cellspacing: 0in; mso-padding-alt: 0in 0in 0in 0in">

          <tr style="MSO-YFTI-IROW: 0; MSO-YFTI-FIRSTROW: yes; MSO-YFTI-LASTROW: yes;">
            <td valign="top" width="1017" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
            </td>
          </tr>

      </table>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <div>Item 8.01. Other Events</div>
    </div>
    <div>&#160;</div>
    <div>On April 19, 2007, Access issued a press release announcing that it entered
      into a definitive agreement to acquire Somanta.

      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt">The full text of the press release is furnished
        as Exhibit 99.1 to this Current Report on Form 8-K/A and is incorporated
        herein
        by reference.</div>
      <div>&#160;</div>
      <div>&#160;</div>
      <div>Item 9.01. Financial Statements and Exhibits.</div>
      <div>&#160;</div>
      <div>On April 19, 2007, Access issued a press release announcing that it entered
        into a definitive agreement to acquire Somanta.

        <div>&#160;</div>
        <div style="MARGIN: 0in 0in 0pt">The full text of the press release is furnished
          as Exhibit 99.1 to this Current Report on Form 8-K/A and is incorporated
          herein
          by reference.</div>
        <div>&#160;</div>
        <div>
          <div>&#160;</div>
        </div>
        <div>&#160;</div>
      </div>
    </div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="600" style="WIDTH: 1228px; mso-cellspacing: 0in; mso-padding-alt: 0in 0in 0in 0in">

          <tr style="MSO-YFTI-IROW: 0; MSO-YFTI-FIRSTROW: yes; MSO-YFTI-LASTROW: yes;">
            <td valign="top" width="1228" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div>(d) Exhibits.</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0in 0in 0pt">&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="600" style="WIDTH: 1129px; mso-cellspacing: 0in; mso-padding-alt: 0in 0in 0in 0in">

          <tr style="MSO-YFTI-IROW: 0; MSO-YFTI-FIRSTROW: yes;">
            <td valign="top" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 25%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt"><strong>Exhibit No.</strong></div>
              <div>&#160;</div>
            </td>
            <td valign="top" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 65%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt"><strong>Description</strong></div>
              <div>&#160;</div>
            </td>
          </tr>
          <tr style="MSO-YFTI-IROW: 1;">
            <td valign="top" width="291" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="758" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
              <div>&#160;</div>
            </td>
          </tr>
          <tr style="MSO-YFTI-IROW: 2;">
            <td valign="top" width="291" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">2.1</div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="758" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">Agreement and Plan of Merger, by
                and
                among Access Pharmaceuticals, Inc., Somanta Acquisition Corporation,
                Somanta Pharmaceuticals, Inc., Somanta Incorporated and Somanta Limited,
                dated April 18, 2007.</div>
              <div>&#160;</div>
            </td>
          </tr>
          <tr style="MSO-YFTI-IROW: 3;">
            <td valign="top" width="291" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="758" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
              <div>&#160;</div>
            </td>
          </tr>
          <tr style="MSO-YFTI-IROW: 4; MSO-YFTI-LASTROW: yes;">
            <td valign="top" width="291" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">99.1</div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="758" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">Press release issued by Access
                Pharmaceuticals, Inc. and Somanta Pharmaceuticals, Inc. dated April
                19,
                2007. </div>
              <div>&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0in 0in 0pt"><br>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="600" style="WIDTH: 1231px; mso-cellspacing: 0in; mso-padding-alt: 0in 0in 0in 0in">

          <tr style="MSO-YFTI-IROW: 0; MSO-YFTI-FIRSTROW: yes; MSO-YFTI-LASTROW: yes;">
            <td valign="top" width="1231" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div align="center">SIGNATURES </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0in 0in 0pt"><br><br></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="600" style="WIDTH: 1227px; mso-cellspacing: 0in; mso-padding-alt: 0in 0in 0in 0in">

          <tr style="MSO-YFTI-IROW: 0; MSO-YFTI-FIRSTROW: yes; MSO-YFTI-LASTROW: yes;">
            <td valign="top" width="1039" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Pursuant
                to the requirements of the Securities Exchange Act of 1934, the registrant
                has duly caused this report to be signed on its behalf by the undersigned
                hereunto duly authorized. </div>
              <div>&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0in 0in 0pt"><br><br></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="600" style="WIDTH: 1227px; mso-cellspacing: 0in; mso-padding-alt: 0in 0in 0in 0in">

          <tr style="MSO-YFTI-IROW: 0; MSO-YFTI-FIRSTROW: yes; MSO-YFTI-LASTROW: yes;">
            <td valign="bottom" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 8%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">
              </div>
              <div>&#160;</div>
            </td>
            <td valign="bottom" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 44%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">
              </div>
              <div>&#160;</div>
            </td>
            <td valign="bottom" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 152%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">ACCESS PHARMACEUTICALS, INC.</div>
              <div>&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0in 0in 0pt"><br><br></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="600" style="WIDTH: 1226px; mso-cellspacing: 0in; mso-padding-alt: 0in 0in 0in 0in">

          <tr style="MSO-YFTI-IROW: 0; MSO-YFTI-FIRSTROW: yes;">
            <td valign="bottom" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 8%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">
              </div>
              <div>&#160;</div>
            </td>
            <td valign="bottom" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 39%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">
              </div>
              <div>&#160;</div>
            </td>
            <td valign="bottom" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 5%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">
              </div>
              <div>&#160;</div>
            </td>
            <td valign="bottom" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 5%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">By: </div>
              <div>&#160;</div>
            </td>
            <td valign="bottom" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 147%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">&#160;/s/ Stephen B. Thompson</div>
              <div>&#160;</div>
            </td>
          </tr>
          <tr style="MSO-YFTI-IROW: 1; MSO-YFTI-LASTROW: yes;">
            <td valign="top" width="48" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">
              </div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="234" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">
              </div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="30" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">
              </div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="30" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">
              </div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="884" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">
                <hr style="COLOR: #aca899" align="center" noshade size="1" width="100%">
              </div>
              <div style="MARGIN: 0in 0in 0pt">
              </div>
              <div>&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0in 0in 0pt">&#160;</div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="600" style="WIDTH: 1223px; mso-cellspacing: 0in; mso-padding-alt: 0in 0in 0in 0in">

          <tr style="MSO-YFTI-IROW: 0; MSO-YFTI-FIRSTROW: yes;">
            <td valign="top" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 56%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">
              </div>
              <div>&#160;</div>
            </td>
            <td valign="top" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; WIDTH: 35%; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">Stephen B. Thompson</div>
              <div>&#160;</div>
            </td>
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              <div>&#160;</div>
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              <div style="MARGIN: 0in 0in 0pt">Vice President, Chief Financial
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              <div>&#160;</div>
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              <div>&#160;</div>
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    <div style="MARGIN: 0in 0in 0pt"><br><br></div>
    <div>&#160;</div>
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          <tr style="MSO-YFTI-IROW: 0; MSO-YFTI-FIRSTROW: yes; MSO-YFTI-LASTROW: yes;">
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              <div style="MARGIN: 0in 0in 0pt">Date:&#160; April 20, 2007</div>
              <div>&#160;</div>
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          </tr>

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    <div>&#160;</div>
    <div>
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              <div style="MARGIN: 0in 0in 0pt"><strong>Exhibit No.</strong></div>
              <div>&#160;</div>
            </td>
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              <div style="MARGIN: 0in 0in 0pt"><strong>Description</strong></div>
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              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="709" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
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              <div>&#160;</div>
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          </tr>
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              <div style="MARGIN: 0in 0in 0pt">2.1</div>
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              <div style="MARGIN: 0in 0in 0pt">Agreement and Plan of Merger, by
                and
                among Access Pharmaceuticals, Inc., Somanta Acquisition Corporation,
                Somanta Pharmaceuticals, Inc., Somanta Incorporated and Somanta Limited,
                dated April 18, 2007.</div>
              <div>&#160;</div>
            </td>
          </tr>
          <tr style="MSO-YFTI-IROW: 3;">
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              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="709" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
              <div>&#160;</div>
            </td>
          </tr>
          <tr style="MSO-YFTI-IROW: 4; MSO-YFTI-LASTROW: yes;">
            <td valign="top" width="244" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">99.1</div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="709" bgcolor="transparent" style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 0in; BORDER-TOP: #ece9d8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8">
              <div style="MARGIN: 0in 0in 0pt">Press release issued by Access
                Pharmaceuticals, Inc. and Somanta Pharmaceuticals, Inc. dated April
                19,
                2007. </div>
              <div>&#160;</div>
            </td>
          </tr>

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    <div style="MARGIN: 0in 0in 0pt">&#160;</div>
    <div>&#160;</div>
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      <table border="0" cellpadding="0" cellspacing="0" width="600" style="WIDTH: 1217px; mso-cellspacing: 0in; mso-padding-alt: 0in 0in 0in 0in">

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              <div>&#160;</div>
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    <div>&#160;</div>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>2
<FILENAME>r8k-155.htm
<DESCRIPTION>AGREEMENT AND PLAN OF MERGER
<TEXT>
<html>

  <head>
    <title>Unassociated Document</title>
<!-- Licensed to: Access Pharmaceuticals, Inc.-->
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  <body bgcolor="#ffffff">
    <div>
      <div style="MARGIN: 24pt 0in 12pt; TEXT-ALIGN: right" align="right">Exhibit&#160;2.1</div>
      <div>&#160;</div>
      <div>
        <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="4">
        <hr style="MARGIN-TOP: -10px; COLOR: #000000" noshade size="1">
      </div>
      <div style="MARGIN: 24pt 0in 12pt; TEXT-ALIGN: center" align="center">AGREEMENT
        AND PLAN OF MERGER</div>
      <div>&#160;</div>
      <div style="MARGIN: 24pt 0in 12pt; TEXT-ALIGN: center" align="center">DATED
        AS OF
        APRIL 18, 2007,</div>
      <div>&#160;</div>
      <div style="MARGIN: 24pt 0in 12pt; TEXT-ALIGN: center" align="center">BY AND
        AMONG</div>
      <div>&#160;</div>
      <div style="MARGIN: 24pt 0in 12pt; TEXT-ALIGN: center" align="center">ACCESS
        PHARMACEUTICALS, INC.,</div>
      <div>&#160;</div>
      <div style="MARGIN: 24pt 0in 12pt; TEXT-ALIGN: center" align="center">SOMANTA
        ACQUISITION CORPORATION, </div>
      <div>&#160;</div>
      <div style="MARGIN: 24pt 0in 12pt; TEXT-ALIGN: center" align="center">SOMANTA
        PHARMACEUTICALS, INC.,</div>
      <div>&#160;</div>
      <div style="MARGIN: 24pt 0in 12pt; TEXT-ALIGN: center" align="center">SOMANTA
        INCORPORATED</div>
      <div>&#160;</div>
      <div style="MARGIN: 24pt 0in 12pt; TEXT-ALIGN: center" align="center">AND</div>
      <div>&#160;</div>
      <div style="MARGIN: 24pt 0in 12pt; TEXT-ALIGN: center" align="center">SOMANTA
        LIMITED</div>
      <div>&#160;</div>
      <div style="MARGIN: 24pt 0in 12pt; TEXT-ALIGN: center" align="center">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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            <hr style="MARGIN-TOP: -13px; COLOR: #000000" noshade size="4">
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      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><u>TABLE
        OF CONTENTS</u></div>
      <div>&#160;</div>
      <div><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="L
ETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<u>Page</u></div>
      <div>ARTICLE I.<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;THE
        MERGER................................................................................
        2</div>
      <div>&#160;</div>
    </div>
    <div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">1.01.... The
        Merger..........................................................................................
        2</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">1.02....
        Closing................................................................................................
        2</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">1.03.... Effective Time of the
        Merger.............................................................. 2</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">1.04.... Effects of the
        Merger..........................................................................
        2</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">1.05.... Certificate of Incorporation;
        By-Laws; Purposes............................... 2</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">1.06....
        Directors.............................................................................................
        3</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">1.07....
        Officers...............................................................................................
        3</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 0pt; TEXT-INDENT: 0pt">ARTICLE II.<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;EFFECT
        OF THE MERGER
        ON THE CAPITAL STOCK OF THE </div>
      <div><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;CONSTITUENT
        CORPORATIONS............................................... 3</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">2.01.... Effect on Capital
        Stock........................................................................
        3</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">2.02.... Exchange of
        Certificates......................................................................
        4</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">2.03.... Treatment of Company Options
        and
        Company Warrants..................... 7</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">2.04.... Dissenting
        Shares................................................................................
        7</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">2.05.... Withholding
        Rights..............................................................................
        8</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0pt 6pt; TEXT-INDENT: 0pt">ARTICLE III.<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;REPRESENTATIONS
        AND
        WARRANTIES.............................. 8</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">3.01.... Representations and Warranties
        of the Company and its Subsidiaries8</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">3.02.... Representations and Warranties
        of Parent and Merger Sub.............. 21</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0pt 6pt; TEXT-INDENT: 0pt">ARTICLE IV.<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>COVENANTS
        RELATING TO
        CONDUCT OF BUSINESS PRIOR </div>
      <div><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;</font>TO
        MERGER..............................................................................
        27</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">4.01.... Conduct of Business by the
        Company............................................... 27</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0pt 6pt; TEXT-INDENT: 0pt">ARTICLE V.<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;ADDITIONAL
        AGREEMENTS.................................................. 30</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.01.... Preparation of Form S-4 and
        Stockholder Statement; Stockholder</div>
      <div><font id="TAB2" style="LETTER-SPACING: 9pt;"><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;&#160;Meeting...................................................................................
        30</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.02.... Access to Information;
        Confidentiality............................................. 31</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.03.... Reasonable Best
        Efforts...................................................................
        31</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.04....
        Indemnification.................................................................................
        32</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.05.... Public
        Announcements......................................................................
        33</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.06.... No
        Solicitation..................................................................................
        33</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.07.... Letters of the Company's
        Accountants............................................... 34</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">-
        i -</div>
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      <div style="MARGIN: 0in 0.5in 6pt 1in; TEXT-INDENT: 0pt" align="center"><u>TABLE
        OF CONTENTS</u></div>
      <div style="MARGIN: 0in 0.5in 6pt 1in; TEXT-INDENT: 0pt" align="center">(continued)</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in; TEXT-INDENT: 0pt" align="left"><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;<u>&#160;</u></font><u>Page
        &#160;</u></div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.08.... Letters of Parent's
        Accountants.......................................................... 34</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.09.... Information
        Supplied.........................................................................
        34</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.10.... Exemption from Liability Under
        Section&#160;16(b)................................. 35</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.11.... Repayment of Certain Company
        Payables......................................... 35</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.12.... Affiliates
        Letters................................................................................
        35</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">5.13.... Termination of Company
        Plans......................................................... 36</div>
      <div>&#160;</div>
      <div>ARTICLE VI.<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;CONDITIONS
        PRECEDENT..................................................... 36</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">6.01.... Conditions to each Party's
        Obligation to Effect the Merger............... 36</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">6.02.... Conditions to Obligations
        of
        Parent and Merger Sub........................ 37</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">6.03.... Conditions to Obligations
        of the
        Company........................................ 40</div>
      <div>&#160;</div>
      <div>ARTICLE VII.<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;TERMINATION,
        AMENDMENT, AND WAIVER................... 41</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">7.01....
        Termination........................................................................................
        41</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">7.02.... Effect of
        Termination.........................................................................
        42</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">7.03....
        Amendment........................................................................................
        42</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">7.04.... Extension;
        Waiver..............................................................................
        42</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">7.05.... Procedure for Termination,
        Amendment, Extension or Waiver.......... 43</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0pt 6pt; TEXT-INDENT: 0pt">ARTICLE VIII.<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;GENERAL
        PROVISIONS......................................................... 43</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">8.01.... Nonsurvival of Representations
        and Warranties................................ 43</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">8.02.... Fees and
        Expenses.............................................................................
        43</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">8.03....
        Notices...............................................................................................
        44</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">8.04....
        Definitions..........................................................................................
        45</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">8.05....
        Interpretation......................................................................................
        49</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">8.06....
        Counterparts.......................................................................................
        49</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">8.07.... Entire Agreement; No Third-Party
        Beneficiaries............................... 49</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">8.08.... Governing Law; Consent to
        Jurisdiction; Waiver of Jury Trial.......... 49</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">8.09....
        Assignment.........................................................................................
        50</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0.5in 6pt 1in">8.10....
        Remedies............................................................................................
        50</div>
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      <div style="MARGIN: 0in 0in 12pt">AGREEMENT AND PLAN OF MERGER (this
        "<u>Agreement</u>"), dated as of April 18, 2007, by and among Access
        Pharmaceuticals, Inc., a Delaware corporation ("<u>Parent</u>"), Somanta
        Acquisition Corporation, a Delaware corporation and a direct wholly-owned
        Subsidiary of Parent ("<u>Merger Sub</u>"), Somanta Pharmaceuticals, Inc., a
        Delaware corporation (the "<u>Company</u>"), Somanta Incorporated, a Delaware
        corporation and a wholly-owned Subsidiary of the Company, and Somanta Limited,
        a
        company organized under the laws of England and a wholly-owned Subsidiary
        of
        Somanta Incorporated.&#160; Certain capitalized terms used herein are defined in
        Section 8.04.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">WHEREAS, the respective Boards of Directors
        of
        Parent, Merger Sub and the Company have deemed it advisable and in the best
        interests of each corporation and their respective stockholders that Parent
        acquire the Company in order to advance the long-term business interests
        of
        Parent and the Company; </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">WHEREAS, the acquisition of the Company
        shall
        be effected through the merger (the "<u>Merger</u>") of Merger Sub with and into
        the Company, upon the terms and subject to the conditions set forth in this
        Agreement and in accordance with the Delaware General Corporation Law
        ("<u>Delaware Law</u>"), as a result of which the Company shall become a
        wholly-owned Subsidiary of Parent;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">WHEREAS, the Merger and this Agreement require
        the vote of a (i) majority of the outstanding shares of Company Common Stock
        (including, for these purposes, all shares of Company Common Stock issuable
        upon
        conversion of Company Preferred Stock) and (ii)&#160; majority of the
        outstanding shares of Company Preferred Stock, voting as a separate class,
        for
        the approval thereof (the "<u>Company Stockholder Approval</u>");</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">WHEREAS, concurrently with the execution
        and
        delivery of this Agreement and as a condition and inducement to Parent's
        willingness to enter into this Agreement, certain stockholders of the Company
        have entered into a Voting Agreement, dated as of the date of this Agreement,
        in
        the form attached hereto as <u>Exhibit&#160;A</u>, pursuant to which such
        stockholders have, among other things, granted certain officers of Parent
        an
        irrevocable proxy to vote shares of capital stock of the Company that such
        stockholders own in favor of this Agreement, the Merger and the transactions
        contemplated herein;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">WHEREAS, Parent, Merger Sub and the Company
        desire to make certain representations, warranties, covenants and agreements
        in
        connection with the Merger and also to prescribe various conditions to the
        Merger; and </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">WHEREAS, for federal income Tax purposes,
        it
        is intended that the Merger shall qualify as a reorganization under the
        provisions of Section 368(a) of the Internal Revenue Code of 1986, as amended
        (the "<u>Code</u>").</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">NOW, THEREFORE, in consideration of the
        representations, warranties, covenants and agreements contained in this
        Agreement, and for other good and valuable consideration, the receipt of
        sufficiency of which are hereby acknowledged, the parties agree as
        follows:</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 0pt" align="center"><a name="_Toc164153615">ARTICLE
        I.<br><br>THE MERGER </a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153616">1.01.&#160;&#160;&#160;&#160;&#160;&#160;
<u>The
        Merger</u>.&#160; Upon the terms and subject to the conditions set forth in this
        Agreement, and in accordance with Delaware Law, Merger Sub shall be merged
        with
        and into the Company at the Effective Time of the Merger. Upon the Effective
        Time of the Merger, the separate existence of Merger Sub shall cease, and
        the
        Company shall continue as the surviving corporation and a wholly-owned
        Subsidiary of Parent.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153617">1.02.&#160;&#160;&#160;&#160;&#160;&#160;
        <u>Closing</u>.&#160; Unless this Agreement shall have been terminated and the
        transactions herein contemplated shall have been abandoned pursuant to Section
        7.01, and subject to the satisfaction or waiver of the conditions set forth
        in
        Article VI, the closing of the Merger (the "<u>Closing</u>") shall take place at
        10:00 a.m. on the second business day after satisfaction of the conditions
        set
        forth in Section 6.01 (or as soon as practicable thereafter following
        satisfaction or waiver of the conditions set forth in Sections 6.02 and 6.03)
        (the "<u>Closing Date</u>"), at the offices of Bingham McCutchen, LLP, 150
        Federal Street, Boston, Massachusetts 02110, unless another date, time or
        place
        is agreed to in writing by the parties hereto.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153618">1.03.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Effective
        Time
        of the Merger</u>.&#160; Upon the Closing, the parties shall file with the
        Secretary of State of the State of </a>Delaware a certificate of merger (the
        "<u>Certificate of Merger</u>") executed in accordance with the relevant
        provisions of Delaware Law and shall make all other filings or recordings
        required under Delaware Law. &#160;The Merger shall become effective at such
        time as the Certificate of Merger is duly filed with the Secretary of State
        of
        the State of Delaware, or at such other time as is permissible in accordance
        with Delaware Law and as Merger Sub and the Company shall agree should be
        specified in the Certificate of Merger (the time the Merger becomes effective
        being the "<u>Effective Time of the Merger</u>").</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153619">1.04.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Effects
        of the
        Merger</u>.&#160; The Merger shall have the effects set forth in the applicable
        provisions of Delaware Law. &#160;As used herein, "<u>Surviving Corporation</u>"
        shall mean and refer to the Company, at and after the Effective Time of the
        Merger, as the surviving corporation in the Merger and a wholly-owned Subsidiary
        of Parent.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153620">1.05.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Certificate
        of
        Incorporation; By-Laws; Purposes</u>.&#160; </a>(a) At the Effective Time of the
        Merger, and without any further action on the part of the Company or Merger
        Sub,
        the certificate of incorporation of Merger Sub as in effect at the Effective
        Time of the Merger shall be the certificate of incorporation of the Surviving
        Corporation until thereafter amended as provided therein or by applicable
        law.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
At the Effective Time of the Merger, and
        without any further action on the part
        of the Company or Merger Sub, the by-laws of Merger Sub as in effect at the
        Effective Time of the Merger shall be the by-laws of the Surviving Corporation
        until thereafter changed or amended as provided therein or by applicable
        law.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The purposes of the Surviving Corporation
        shall be the purposes set forth in the
        certificate of incorporation of Merger Sub in effect immediately prior to
        the
        Effective Time of the Merger.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The capitalization of the Surviving Corporation
        shall be as set forth in the
        certificate of incorporation of Merger Sub in effect immediately prior to
        the
        Effective Time of the Merger.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153621">1.06.&#160;&#160;&#160;&#160;&#160;&#160;
        <u>Directors</u>.&#160; The directors of Merger Sub at the Effective Time of the
        Merger shall be the directors of the Surviving Corporation, until the earlier
        of
        their resignation or removal or until their respective successors are duly
        elected and qualified, as the case may be.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153622">1.07.&#160;&#160;&#160;&#160;&#160;&#160;
        <u>Officers</u>.&#160; The officers of Merger Sub at the Effective Time of the
        Merger shall be the officers of the Surviving Corporation, until the earlier
        of
        their resignation or removal or until their respective successors are duly
        elected or appointed and qualified, as the case may be.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 0in; mso-pagination: widow-orphan lines-together" align="center"><a name="_Toc164153623">ARTICLE
        II.<br><br>EFFECT OF THE MERGER ON
        THE CAPITAL STOCK OF THE CONSTITUENT CORPORATIONS </a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153624">2.01.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Effect
        on
        Capital Stock</u>.&#160; As of the Effective Time of the Merger, by virtue of
        the Merger and without any action on the part of the Company, Merger Sub,
        or any
        holder of any shares of Company Common Stock or any shares of capital stock
        of
        Merger Sub:</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Common Stock of Merger Sub</u>.&#160; Each share of common stock of Merger
        Sub issued and outstanding immediately prior to the Effective Time of the
        Merger
        shall be converted into one share of the common stock, par value $0.001 per
        share, of the Surviving Corporation.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Cancellation of Treasury Stock, Parent-Owned
        Company Stock and Company
        Preferred Stock</u>.&#160; Each share of Company Common Stock and Company
        Preferred Stock that is owned by the Company or by any Subsidiary of the
        Company, and each share of Company Common Stock and Company Preferred Stock
        that
        is owned by Parent, Merger Sub or any other Subsidiary of Parent shall
        automatically be cancelled and retired and shall cease to exist, and no cash,
        Parent Common Stock or other consideration shall be delivered or deliverable
        in
        exchange therefor.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Conversion of Company Common Stock and
        Company Preferred Stock.</u></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 1in">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<a name="OLE_LINK2"/><a name="OLE_LINK1">Each
        issued and outstanding share of Company
        Common Stock (excluding shares cancelled pursuant to Section 2.01(b) and
        any
        Dissenting Shares to the extent provided in Section 2.04 but including all
        shares of Company Common Stock issued upon conversion of any Company Preferred
        Stock or exercise of Company Options or Company Warrants occurring after
        the
        date of this Agreement) shall be converted into the right to receive a number
        of
        shares of Parent Common Stock equal to:&#160; (x) 500,000, divided by (y) the
        total number of shares of Company Common Stock outstanding at the Effective
        Time, such quotient to be carried out to eight decimal points (the "<u>Common
        Stock Exchange Ratio</u>"); </a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 1in">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 1in">(ii)&#160;&#160;&#160;&#160;&#160;&#160;
Each issued and outstanding
        share of Company Preferred Stock (excluding shares
        cancelled pursuant to Section 2.01(b) and any Dissenting Shares to the extent
        provided in Section 2.04) shall be converted into the right to receive a
        number
        of shares of Parent Common Stock equal to:&#160; (x) 1,000,000, divided by (y)
        the total number of shares of Company Preferred Stock outstanding at the
        Effective Time, such quotient carried out to eight decimal points (the
        "<u>Preferred Stock Exchange Ratio</u>");</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 1in">(iii)&#160;&#160;&#160;&#160;&#160;
The total number of shares
        of Parent Common Stock issuable in exchange for the
        Company Common Stock and Company Preferred Stock shall be referred to herein
        collectively as the &#8220;Merger Consideration.&#8221;&#160; In no event shall the
        aggregate number of shares of Parent Common Stock to be issued or issuable
        hereunder in exchange for Company Common Stock and Company Preferred Stock
        exceed 1,500,000 (or such lesser number if decreased in accordance with Section
        2.04).&#160; Except as set forth in this Article II, no other amounts shall be
        payable with respect to such Company Common Stock.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Cancellation and Retirement of Company
        Common Stock and Company Preferred
        Stock</u>.&#160; As of the Effective Time of the Merger, all shares of Company
        Common Stock and Company Preferred Stock issued and outstanding immediately
        prior to the Effective Time of the Merger shall no longer be outstanding
        and
        shall automatically be cancelled and retired and shall cease to exist, and
        each
        holder of a certificate representing any such shares of Company Common Stock
        and
        Company Preferred Stock (collectively, the "<u>Certificates</u>") shall, to the
        extent such Certificate represents such shares, cease to have any rights
        with
        respect thereto, except the right to receive the Merger Consideration (and
        cash
        in lieu of fractional shares of Parent Common Stock) to be issued or paid
        in
        consideration therefor upon surrender of such Certificate in accordance with
        Section 2.02.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153625">2.02.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Exchange
        of
        Certificates</u>.&#160; </a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Exchange Agent</u>.&#160; As of the Effective Time of the
        Merger, Parent
        shall enter into an agreement with such bank or trust company as may be
        designated by Parent (the "<u>Exchange Agent</u>") which shall provide that
        Parent shall deposit with the Exchange Agent, for the benefit of the holders
        of
        Certificates, for exchange in accordance with this Article II, certificates
        representing the shares of Parent Common Stock (such shares of Parent Common
        Stock, together with any dividends or distributions with respect thereto
        with a
        record date after the Effective Time of the Merger, and any cash payable
        in lieu
        of any fractional shares of Parent Common Stock being hereinafter referred
        to as
        the "<u>Exchange Fund</u>") issuable pursuant to Section 2.01 in exchange for
        outstanding shares of Company Common Stock.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Exchange Procedures</u>.&#160; As soon as reasonably practicable
        after the
        Effective Time of the Merger, the Exchange Agent shall mail to each holder
        of
        record of Certificates immediately prior to the Effective Time of the Merger
        whose shares of Company Common Stock were converted into shares of Parent
        Common
        Stock pursuant to Section 2.01 (i) a letter of transmittal (which shall specify
        that delivery shall be effected, and risk of loss and title to the Certificates
        shall pass only upon delivery of the Certificates to the Exchange Agent,
        and
        which shall be in such form and have such other provisions as Parent may
        reasonably specify) and (ii) instructions for use in effecting the surrender
        of
        the Certificates in exchange for certificates representing shares of Parent
        Common Stock. &#160;Upon surrender of a Certificate for cancellation (or
        indemnity reasonably satisfactory to Parent and the Exchange Agent, if any
        of
        such Certificates are lost, stolen or destroyed) to the Exchange Agent together
        with such letter of transmittal, duly executed, the holder of such Certificate
        shall be entitled to receive in exchange therefor a certificate representing
        that number of whole shares of Parent Common Stock which such holder has
        the
        right to receive in respect of all Certificates surrendered by such holder
        pursuant to the provisions of this Article II (after taking into account
        all
        shares of Company Common Stock then held by such holder), and the Certificates
        so surrendered shall forthwith be cancelled. &#160;In the event of a transfer of
        ownership of shares of Company Common Stock which is not registered in the
        transfer records of the Company, a certificate representing the proper number
        of
        shares of Parent Common Stock may be issued to a transferee if the Certificate
        is presented to the Exchange Agent, accompanied by all documents required
        to
        evidence and effect such transfer and by evidence that any applicable stock
        transfer Taxes have been paid. &#160;Until surrendered as contemplated by this
        Section 2.02, subject to the provisions of Section 2.04, each Certificate
        shall
        be deemed at any time after the Effective Time of the Merger to represent
        only
        the Parent Common Stock into which the shares of Company Common Stock
        represented by such Certificate have been converted as provided in this Article
        II and the right to receive upon such surrender cash in lieu of any fractional
        shares of Parent Common Stock as contemplated by this Section 2.02.</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Distributions with Respect to Unexchanged
        Shares</u>.&#160; No dividends or
        other distributions with respect to Parent Common Stock with a record date
        after
        the Effective Time of the Merger shall be paid to the holder of any
        unsurrendered Certificate with respect to the shares of Parent Common Stock
        represented thereby, and no cash payment in lieu of fractional shares shall
        be
        paid to any such holder pursuant to Section 2.02(e) until the surrender of
        such
        Certificate in accordance with this Article II. &#160;Subject to the effect of
        applicable laws, following surrender of any such Certificate, there shall
        be
        paid to the holder of the certificate representing the whole shares of Parent
        Common Stock issued in exchange therefor without interest, (i) at the time
        of
        such surrender, the amount of any cash payable in lieu of any fractional
        share
        of Parent Common Stock to which such holder is entitled pursuant to Section
        2.02(e) and the amount of any dividends or other distributions with a record
        date after the Effective Time of the Merger theretofore paid (but withheld
        pursuant to the immediately preceding sentence) with respect to such whole
        shares of Parent Common Stock, and (ii) at the appropriate payment date,
        the
        amount of any dividends or other distributions with a record date after the
        Effective Time of the Merger and a payment date subsequent to such surrender
        payable with respect to such whole shares of Parent Common Stock.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>No Further Ownership Rights in Company
        Common Stock or Company Preferred
        Stock</u>.&#160; All shares of Parent Common Stock issued upon conversion of
        shares of Company Common Stock or Company Preferred Stock in accordance with
        the
        terms hereof, and all cash paid pursuant to Sections 2.02(c) and 2.02(e),
        shall
        be deemed to have been issued in full satisfaction of all rights pertaining
        to
        such Company Common Stock or Company Preferred Stock, and there shall be
        no
        further registration of transfers on the stock transfer books of the Surviving
        Corporation of the Company Common Stock or Company Preferred Stock which
        were
        outstanding prior to the Effective Time of the Merger. &#160;If, after the
        Effective Time of the Merger, Certificates are presented to the Surviving
        Corporation for any reason, they shall be cancelled and exchanged as provided
        in
        this Article II.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>No Fractional Shares</u>.&#160; (i) No certificate or scrip representing
        fractional shares of Parent Common Stock shall be issued upon the surrender
        for
        exchange of Certificates, and such fractional share interests shall not entitle
        the owner thereof to vote or to any rights of a stockholder of Parent. &#160;In
        lieu of such issuance of fractional shares, Parent shall pay each holder
        of
        Certificates an amount in cash equal to the product obtained by multiplying
        (a)
        the fractional share interest to which such holder would otherwise be entitled
        (after taking into account all shares of Company Common Stock or Company
        Preferred Stock held immediately prior to the Effective Time of the Merger
        by
        such holder) by (b) the average of the closing sale prices for a share of
        Parent
        Common Stock on the OTC Bulletin Board for the ten trading days immediately
        preceding the date of the Effective Time of the Merger.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
As soon as reasonably practicable after
        the determination of the amount of cash,
        if any, to be paid to holders of Certificates with respect to any fractional
        share interests, the Exchange Agent shall make available such amounts to
        such
        holders of Certificates, subject to and in accordance with the terms of Section
        2.02(c).</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Termination of Exchange Fund</u>.&#160; Any portion of the Exchange Fund
        deposited with the Exchange Agent pursuant to this Section 2.02 which remains
        undistributed to the holders of the Certificates six months after the Effective
        Time of the Merger shall be delivered to Parent, upon demand, and any holders
        of
        Certificates who have not theretofore complied with this Article II shall
        thereafter look only to Parent and only as general creditors thereof for
        payment
        of their claim for Parent Common Stock, cash in lieu of fractional shares
        of
        Parent Common Stock and any dividends or distributions with respect to Parent
        Common Stock to which such holders may be entitled pursuant to this Article
        II.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>No Liabilit</u>y.&#160; None of Parent, Merger Sub, the
        Company or the
        Exchange Agent shall be liable to any Person in respect of any shares of
        Parent
        Common Stock (or dividends or distributions with respect thereto) or cash
        from
        the Exchange Fund delivered to a public official pursuant to any applicable
        abandoned property, escheat or similar law. &#160;If any Certificates shall not
        have been surrendered prior to three years after the Effective Time of the
        Merger, or immediately prior to such earlier date on which any Merger
        Consideration, any cash in lieu of fractional shares of Parent Common Stock
        or
        any dividends or distributions with respect to Parent Common Stock would
        otherwise escheat to or become the property of any Governmental Entity, any
        such
        Merger Consideration or cash shall, to the extent permitted by applicable
        law,
        become the property of the Surviving Corporation, free and clear of all claims
        or interest of any Person previously entitled thereto.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      </div>
      <div style="MARGIN: 0in 0in 12pt">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Investment of Exchange Fund</u>.&#160; The Exchange Agent shall invest
        any
        cash included in the Exchange Fund, as directed by Parent on a daily basis.
        &#160;Any interest and other income resulting from such investments shall be
        paid to Parent.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Adjustment Provisions</u>.&#160; In the event Parent changes (or
        establishes
        a record date for changing) the number of shares of Parent Common Stock issued
        and outstanding prior to the Effective Time of the Merger as a result of,
        including, without limitation, a forward or reverse stock split, stock dividend,
        recapitalization or similar transaction with respect to the outstanding Parent
        Common Stock and the record date therefor shall be prior to the Effective
        Time
        of the Merger, the Common Stock Exchange Ratio shall be proportionately
        adjusted.&#160; In the event Parent changes (or establishes a record date for
        changing) the number of shares of Parent Common Stock issued and outstanding
        prior to the Effective Time of the Merger as a result of, including, without
        limitation, a forward or reverse stock split, stock dividend, recapitalization
        or similar transaction with respect to the outstanding Parent Common Stock
        and
        the record date therefor shall be prior to the Effective Time of the Merger,
        the
        Preferred Stock Exchange Ratio shall be proportionately adjusted. &#160;If,
        between the date hereof and the Effective Time of the Merger, Parent shall
        merge, be acquired or consolidate with, by or into any other corporation
        (a
        "<u>Business Combination</u>") and the terms thereof shall provide that Parent
        Common Stock shall be converted into or exchanged for the shares of any other
        corporation or entity, then provision shall be made as part of the terms
        of such
        Business Combination so that securityholders of the Company who would be
        entitled to receive shares of Parent Common Stock pursuant to this Agreement
        shall be entitled to receive, in lieu of each share of Parent Common Stock
        issuable to such securityholders as provided herein, the same kind and amount
        of
        securities or assets as shall be distributable upon such Business Combination
        with respect to one share of Parent Common Stock (provided that nothing herein
        shall be construed so as to release the acquiring entity in any such Business
        Combination from its obligations under this Agreement as the successor to
        Parent).</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153626">2.03.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Treatment
        of
        Company Options and Company Warrants</u>.&#160; Parent shall not assume any
        options to purchase shares of Company Common Stock (the "<u>Company
        Options</u>"), even if such Company Options are outstanding immediately before
        the Effective Time of the Merger and are fully vested and exercisable
        immediately before the Effective Time of the Merger.&#160; All Company Options
        shall have been exercised or terminated prior to the Closing Date.&#160; The
        Company shall have taken all necessary action to implement and carry out
        the
        provisions of this Section 2.03, including, without limitation, taking the
        actions described in Section 6.02(e).&#160; </a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">At the Effective Time of the Merger, Parent
        shall assume all issued and outstanding Company Warrants other than the Company
        Warrants to be exercised pursuant to Section&#160;6.02(m), including, without
        limitation, all rights and obligations related thereto (except as otherwise
        provided in the waivers to be executed and delivered pursuant to Section
        6.02(h)), in accordance with the terms of the applicable warrant agreement,
        in
        each case as adjusted to take into account the effect resulting from the
        Merger
        as follows.&#160; At the Effective Time of the Merger, each such Company
        Warrant, whether or not vested, shall, by virtue of the Merger, be assumed
        by
        Parent.&#160; Each such Company Warrant so assumed by Parent hereunder will
        continue to have, and be subject to, the same terms and conditions of such
        Company Warrant immediately prior to the Effective Time of the Merger
        (including, without limitation, any repurchase rights or vesting provisions
        and
        provisions regarding the acceleration of vesting and exercisability on certain
        transactions), except that (i) each such Company Warrant will be exercisable
        (or
        will become exercisable in accordance with its terms) for that number of
        whole
        shares of Parent Common Stock equal to the number of shares of Company Common
        Stock that were issuable upon exercise of such Company Warrant (assuming
        full
        vesting), immediately prior to the Effective Time of the Merger, multiplied
        by
        the Common Stock Exchange Ratio and rounded down to the nearest whole share,
        and
        (ii) the per share exercise price for the shares of Parent Common Stock issuable
        upon exercise of each such assumed Company Warrant will be divided by the
        Common
        Stock Exchange Ratio and rounded up to the nearest whole cent.&#160; At the
        Effective Time of the Merger, (x) all references in the related warrant
        agreements to the Company shall be deemed to refer to Parent and (y)&#160;Parent
        shall assume all of the Company's obligations with respect to such Company
        Warrants as so amended.&#160; As promptly as reasonably practicable after the
        Effective Time of the Merger, Parent shall issue to each holder of any such
        Company Warrant a document evidencing the foregoing adjustments and assumption
        by Parent.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt; tab-stops: list .5in"><a name="_Toc164153627">2.04.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Dissenting
        Shares</u>.&#160; </a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Subject to the provisions of Section 6.02(i)
        and notwithstanding any provision
        of this Agreement to the contrary, the shares of any holder of Company Common
        Stock or Company Preferred Stock who has demanded and perfected appraisal
        rights
        of such shares in accordance with Delaware Law and who, as of the Effective
        Time
        of the Merger, has not effectively withdrawn or lost such appraisal rights
        ("<u>Dissenting Shares</u>") shall not be converted into or represent a right to
        receive Parent Common Stock pursuant to Section 2.01(c), but the holder thereof
        shall only be entitled to such rights as are granted by Delaware Law, and
        the
        total number of shares of Parent Common Stock issuable as Merger Consideration
        as provided in Section&#160;2.01(c)(i) or (ii), as applicable, shall be
        proportionately decreased.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Notwithstanding the foregoing, if any holder
        of shares of Company Common Stock
        or Company Preferred Stock who demands appraisal of such shares under Delaware
        Law shall effectively withdraw the right to appraisal, then, as of the later
        of
        the Effective Time of the Merger and the occurrence of such event, such holder's
        shares shall automatically be converted into and represent only the right
        to
        receive Parent Common Stock, without interest thereon, upon surrender of
        the
        Certificate representing such shares as provided in Section 2.01(c), and,
        subject to Section&#160;2.01(c)(iii), the total number of shares of Parent
        Common Stock issuable as Merger Consideration as provided in
        Section&#160;2.01(c)(i) or (ii), as applicable, shall be proportionally
        increased to the extent such number was previously decreased pursuant to
        Section&#160;2.04(a) with respect to such shares.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The Company shall give Parent (i) prompt
        notice of any written demands for
        appraisal of any shares of Company Common Stock or Company Preferred Stock,
        withdrawals of such demands, and any other instruments served pursuant to
        Delaware Law and received by the Company which relate to any such demand
        for
        appraisal and (ii) the opportunity to participate in all negotiations and
        proceedings which take place prior to the Effective Time of the Merger with
        respect to demands for appraisal under Delaware Law. &#160;The Company shall
        not, except with the prior written consent of Parent or as may be required
        by
        applicable law, voluntarily make any payment with respect to any demands
        for
        appraisal of the Company Common Stock or Company Preferred Stock or offer
        to
        settle or settle any such demands.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; PAGE-BREAK-AFTER: auto; tab-stops: list .5in"><a name="_Toc164153628">2.05.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Withholding
        Rights</u>.&#160; Each of Parent and the Surviving Corporation shall be entitled
        to deduct and withhold from the consideration otherwise payable pursuant
        to this
        Agreement to any holder of Company Common Stock or Company Preferred Stock
        such
        amounts as it is required to deduct and withhold with respect to the making
        of
        such payment under the Code, or any provision of state, local or foreign
        Tax
        law.&#160; To the extent that amounts are so withheld by Parent or the Surviving
        Corporation, as the case may be, such withheld amounts shall be treated for
        all
        purposes of this Agreement as having been paid to such holder in respect
        of
        which such deduction and withholding was made by Parent or the Surviving
        Corporation, as the case may be.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 0in" align="center"><a name="_Toc164153629">ARTICLE
        III.<br><br>REPRESENTATIONS AND WARRANTIES</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153630">3.01.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Representations
        and Warranties of the Company and its Subsidiaries</u>.&#160; Except as set
        forth in the disclosure schedule (to the extent each disclosure item therein
        is
        clearly marked to indicate the section, paragraph or subparagraph of this
        Agreement to which such disclosure is an exception, referencing the same
        section, paragraph and subparagraph as used in this Agreement) delivered
        by the
        Company to Parent and Merger Sub at the time of execution of this Agreement
        (the
        "<u>Company Disclosure Schedule</u>"), the Company and each of its Subsidiaries
        hereby jointly and severally represent and warrant to Parent and Merger Sub
        as
        follows:</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Organization; Standing and Corporate
        Power</u>.&#160; Each of the Company and
        each of its Subsidiaries is duly organized, validly existing and in good
        standing under the laws of the jurisdiction in which it is organized and
        has the
        requisite corporate power and authority to carry on its business as now being
        conducted. &#160;Except as set forth in Section 3.01(a) of the Company
        Disclosure Schedule, each of the Company and each of its Subsidiaries is
        duly
        qualified or licensed to do business and is in good standing in each
        jurisdiction (domestic or foreign) in which the nature of its business or
        the
        ownership or leasing of its properties makes such qualification or licensing
        necessary, other than in such jurisdictions where the failure to be so qualified
        or licensed (individually or in the aggregate) would not have a Material
        Adverse
        Effect with respect to the Company. &#160;The Company has delivered to Parent
        complete and correct copies of the certificate of incorporation (including
        any
        Certificate of Designations thereto) (the "<u>Certificate of Incorporation</u>")
        and by-laws (the "<u>By-laws</u>") of the Company, in each case as amended and
        as currently in effect. &#160;The Company has delivered to Parent complete and
        correct copies of the certificates of incorporation and by-laws (or other
        organizational documents) of each of its Subsidiaries, in each case as amended
        and currently in effect.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Subsidiaries</u>.&#160; All of the Subsidiaries of the Company
        are listed in
        Section 3.01(b) of the Company Disclosure Schedule. &#160;All of the outstanding
        shares of capital stock of each Subsidiary of the Company have been validly
        issued and are fully paid and nonassessable and are owned (of record and
        beneficially) by the Company or by another wholly-owned Subsidiary of the
        Company, free and clear of all pledges, claims, liens, charges, encumbrances
        and
        security interests of any kind or nature whatsoever except for Permitted
        Liens
        (collectively, "<u>Liens</u>"). &#160;The Company does not own, directly or
        indirectly, any capital stock or other ownership interest in any Person.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Capital Structure</u>. &#160;The authorized capital stock of
        the Company
        consists of (x)&#160;100,000,000 shares of Company Common Stock and
        (y)&#160;20,000,000 shares of preferred stock, par value $0.001 per share, of
        which 2,000 shares are designated as Company Preferred Stock. As of the close
        of
        business on April&#160;16, 2007, there were: (i)&#160;14,292,603 shares of
        Company Common Stock issued and outstanding; (ii)&#160;591.6318 shares of
        Company Preferred Stock issued and outstanding which are convertible into
        9,860,135 shares of Company Common Stock; (iii)&#160;accrued but undeclared
        dividends on the Company Preferred Stock which are convertible into 634,871
        shares of Company Common Stock pursuant to the Certificate of Designations
        of
        the Company Preferred Stock; (iv) no shares of Company Common Stock held
        in the
        treasury of the Company; (v)&#160;4,516,837 shares of Company Common Stock
        Options available for grant pursuant to the Company Stock Option Plan;
        (vi)&#160;3,483,163 shares of Company Common Stock reserved for issuance
        pursuant to outstanding options granted pursuant to the Company Stock Option
        Plan; and (vii)&#160;Company Warrants listed in Section 3.01(c) of the Company
        Disclosure Schedule, representing the right to purchase 7,102,838 shares
        of
        Company Common Stock. &#160;Except as set forth above, as of the close of
        business on April&#160;16 2007, there were no shares of capital stock or other
        equity securities of the Company issued, reserved for issuance or outstanding.
        All outstanding shares of capital stock of the Company are, and all shares
        which
        may be issued pursuant to the Company Stock Option Plan shall be, when issued,
        duly authorized, validly issued, fully paid and nonassessable and not subject
        to
        preemptive rights. &#160;All securities issued by the Company were issued in
        compliance in all material respects with all applicable federal and state
        securities laws and all applicable rules and regulations promulgated thereunder.
        &#160;There are no outstanding bonds, debentures, notes or other indebtedness or
        debt securities of the Company or any of its Subsidiaries that have the right
        to
        vote (or that are convertible into, or exchangeable for, securities having
        the
        right to vote) on any matters on which stockholders of the Company may vote
        (collectively, "<u>Voting Debt</u>"). &#160;Except as set forth above, there are
        no outstanding securities, options, warrants, calls, rights, commitments,
        agreements, arrangements or undertakings of any kind to which the Company
        or any
        of its Subsidiaries is a party or by which any of them is bound obligating
        the
        Company or any of its Subsidiaries to issue, deliver or sell, or cause to
        be
        issued, delivered or sold, additional shares of capital stock or other equity
        or
        voting securities of the Company or of any of its Subsidiaries or obligating
        the
        Company or any of its Subsidiaries to issue, grant, extend, accelerate the
        vesting of or enter into any such security, option, warrant, call, right,
        commitment, agreement, arrangement or undertaking. &#160;There are no
        outstanding contractual obligations, commitments, understandings or arrangements
        of the Company or any of its Subsidiaries to repurchase, redeem or otherwise
        acquire or make any payment in respect of any shares of capital stock of
        the
        Company or any of its Subsidiaries. &#160;To the knowledge of the Company,
        except as provided in Section 3.01(c) of the Company Disclosure Schedule,
        there
        are no irrevocable proxies with respect to shares of capital stock of the
        Company or any Subsidiary of the Company. &#160;There are no agreements or
        arrangements pursuant to which the Company is or could be required to register
        shares of Company Common Stock or other agreements or arrangements with or,
        to
        the knowledge of the Company, among any securityholders of the Company with
        respect to securities of the Company.&#160; Except as set forth in Section
        3.01(c) of the Company Disclosure Schedule, the Company has complied in all
        respects with any obligation to register shares of Company Common Stock and
        has
        not incurred any liability in connection with its failure to register such
        shares.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">Except as set forth in Section 3.01(c) of
        the
        Company Disclosure Schedule, since April&#160;30, 2006, the Company has not (A)
        issued or permitted to be issued any shares of capital stock, or securities
        exercisable for or convertible into shares of capital stock, of the Company
        or
        any of its Subsidiaries; (B) repurchased, redeemed or otherwise acquired,
        directly or indirectly through one or more Subsidiaries, any shares of capital
        stock of the Company or any of its Subsidiaries or (C) declared, set aside,
        made
        or paid to the stockholders of the Company dividends or other distributions
        on
        the outstanding shares of capital stock of the Company.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Authority; Noncontravention</u>. &#160;Each of the Company and each of
        its
        Subsidiaries has the requisite corporate power and authority to enter into
        this
        Agreement and, subject to the Company Stockholder Approval in the case of
        the
        Agreement, to consummate the transactions contemplated hereby. &#160;The
        execution and delivery of this Agreement by the Company and each of its
        Subsidiaries and the consummation by the Company and each of its Subsidiaries
        of
        the transactions contemplated hereby have been duly authorized by all necessary
        corporate action on the part of the Company and each of its Subsidiaries,
        subject, in the case of this Agreement, to the Company Stockholder Approval.
        &#160;This Agreement has been duly executed and delivered by the Company and
        each of its Subsidiaries and (assuming due authorization, execution and delivery
        by Parent and Merger Sub) constitutes a valid and binding obligation of the
        Company and each of its Subsidiaries, enforceable against the Company and
        each
        of its Subsidiaries in accordance with its respective terms, subject to the
        effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
        moratorium and other similar laws affecting creditors' rights generally,
        general
        equitable principles (whether considered in a proceeding in equity or at
        law)
        and an implied covenant of good faith and fair dealing. &#160;Except as set
        forth in Section 3.01(d) of the Company Disclosure Schedule, the execution
        and
        delivery of this Agreement does not, and the consummation by the Company
        and
        each of its Subsidiaries of the transactions contemplated by this Agreement
        and
        compliance by the Company and each of its Subsidiaries with the provisions
        hereof shall not, conflict with, or result in any breach or violation of,
        or any
        default (with or without notice or lapse of time, or both) under, or give
        rise
        to a right of termination, cancellation or acceleration of, or a "put" right
        with respect to any obligation under, or to a loss of a material benefit
        under,
        or result in the creation of any Lien upon any of the properties or assets
        of
        the Company or any of its Subsidiaries under, (i) the Certificate of
        Incorporation or By-laws, or the comparable charter or organizational documents
        of any of its Subsidiaries, (ii) any loan or credit agreement, note, note
        purchase agreement, bond, mortgage, indenture, lease or other agreement,
        instrument, permit, concession, franchise or license applicable to the Company
        or any of its Subsidiaries or their respective properties or assets or (iii)
        subject to the governmental filings and other matters referred to in the
        following sentence, any judgment, order, decree, statute, law, ordinance,
        rule,
        regulation or arbitration award applicable to the Company or any of its
        Subsidiaries or their respective properties or assets. &#160;No consent,
        approval, order or authorization of, or registration, declaration or filing
        with, or notice to, any federal, state or local government or any court,
        administrative agency or commission or other governmental authority or agency,
        domestic or foreign (a "<u>Governmental Entity</u>"), is required by or with
        respect to the Company or any of its Subsidiaries in connection with the
        execution and delivery of this Agreement by the Company or the consummation
        by
        the Company of the transactions contemplated hereby or the performance by
        the
        Company and each of its Subsidiaries of their respective obligations hereunder,
        except for (i) such filings, if any, as may be required under the
        Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "<u>HSR
        Act</u>") and the filing of applications by the Company pursuant to antitrust
        or
        similar laws in such foreign jurisdictions as necessary, (ii) the filing
        with
        the SEC of (A) a proxy statement relating to the Company Stockholder Approval
        (such proxy statement as amended or supplemented from time to time, the
        "<u>Stockholder Statement</u>") and (B) such reports under the Securities
        Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), as may be required
        in connection with this Agreement and the transactions contemplated hereby
        and
        (iii) the filing of the Certificate of Merger with the Secretary of State
        of the
        State of Delaware and appropriate documents with the relevant authorities
        of
        other states in which the Company or any of its Subsidiaries is qualified
        to do
        business.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>SEC Documents; Undisclosed Liabilities</u>. &#160;The Company has filed with
        the SEC all reports, schedules, forms, statements and other documents required
        pursuant to the Securities Act of 1933, as amended (the "<u>Securities Act</u>")
        and the Exchange Act since April 30, 2004 (collectively, and in each case
        including all exhibits and schedules thereto and documents incorporated by
        reference therein, the "<u>SEC Documents</u>"). &#160;As of their respective
        dates, the SEC Documents (other than the SEC Financial Statements) comply
        in all
        material respects with the requirements of the Securities Act or the Exchange
        Act, as the case may be, and the rules and regulations of the SEC promulgated
        thereunder applicable to such SEC Documents. &#160;Except to the extent that
        information contained in any SEC Document has been revised or superseded
        by a
        later filed SEC Document, none of the SEC Documents (including any and all
        SEC
        Financial Statements included therein) contains any untrue statement of a
        material fact or omits to state a material fact required to be stated therein
        or
        necessary in order to make the statements therein, in the light of the
        circumstances under which they were made, not misleading. &#160;The consolidated
        financial statements of the Company included in all SEC Documents filed since
        April 30, 2004 (the "<u>SEC Financial Statements</u>") comply as to form in all
        material respects with applicable published accounting requirements and the
        published rules and regulations of the SEC with respect thereto, have been
        prepared in accordance with generally accepted accounting principles as applied
        in the United States (except, in the case of unaudited consolidated quarterly
        statements, as permitted by Form 10-QSB of the SEC), applied on a consistent
        basis during the periods involved (except as may be indicated in the notes
        thereto) and fairly present the consolidated financial position of the Company
        and its consolidated Subsidiaries as of the dates thereof and the consolidated
        results of their operations and cash flows for the periods then ended (subject,
        in the case of unaudited quarterly statements, to normal recurring year-end
        audit adjustments). &#160;Neither the Company nor any of its Subsidiaries has
        any liabilities or obligations of any nature (whether accrued, absolute,
        contingent or otherwise) required by generally accepted accounting principles
        as
        applied in the United States to be recognized or disclosed on a consolidated
        balance sheet of the Company and its Subsidiaries or in the notes thereto,
        except (i) liabilities reflected in the consolidated balance sheet of the
        Company as of January 31, 2007 (the "<u>2007 Balance Sheet</u>") and (ii)
        liabilities incurred since January 31, 2007 in the ordinary course of business
        consistent with past practice, which, if in an amount in excess of $10,000,
        are
        listed in Section 3.01(e) of the Company Disclosure Schedule.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Disclosure Controls and Procedures;
        Internal Control Over Financing
        Reporting</u>.&#160; The Company maintains disclosure controls and procedures
        required by Rule&#160;13a-15 and 15d-15 under the Exchange Act.&#160; Such
        disclosure controls and procedures are designed to ensure that all material
        information relating to the Company and its Subsidiaries is made known to
        the
        Company's chief executive officer and chief financial officer by others within
        those entities, particularly during the period in which the Company's applicable
        Exchange Act report is being prepared, and effective, in that they provide
        reasonable assurance that information required to be disclosed by the Company
        in
        the reports that it files or submits under the Exchange Act is recorded,
        processed, summarized and reported within the time periods specified in the
        SEC's rules and forms.&#160; The Company's management is responsible for
        establishing and maintaining adequate internal control over &lt;?xml:namespace
        prefix = st1 ns = "schemas-workshare-com/workshare" /&gt;financial reporting as
        required by Rule&#160;13a-15 or 15d-15 under the Exchange Act.&#160; The
        Company's internal control over financial reporting was effective as of
        January&#160;31, 2007. </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Information Supplied</u>. &#160;None of the information supplied
        or to be
        supplied by the Company in writing for inclusion or incorporation by reference
        in (i) the registration statement on Form S-4 to be filed with the SEC by
        Parent
        in connection with the issuance of Parent Common Stock in the Merger (the
        "<u>Form S-4</u>") shall, at the time the Form S-4 becomes effective under the
        Securities Act, 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 not misleading or (ii) the Stockholder Statement shall,
        at
        (A) the date it is first mailed to the Company's stockholders and/or (B)
        at the
        time of the Stockholder Meeting, contain any untrue statement of a material
        fact
        or omit to state any material fact required to be stated therein or necessary
        in
        order to make the statements therein, in the light of the circumstances under
        which they are made, not misleading. &#160;The Stockholder Statement shall
        comply as to form in all material respects with the requirements of the Exchange
        Act and the rules and regulations promulgated thereunder, except that no
        representation is made by the Company with respect to statements made or
        incorporated by reference therein based on information supplied in writing
        by
        Parent or Merger Sub specifically for inclusion or incorporation by reference
        therein.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Absence of Certain Changes or Events</u>. &#160;Except as set forth in
        Section 3.01(h) of the Company Disclosure Schedule, since April 30, 2006,
        there
        is not and has not been: (i) any Material Adverse Change with respect to
        the
        Company; (ii) any condition, event or occurrence which, individually or in
        the
        aggregate, could reasonably be expected to have a Material Adverse Effect
        or
        give rise to a Material Adverse Change with respect to the Company; (iii)
        any
        condition, event or occurrence which, individually or in the aggregate, could
        reasonably be expected to prevent or materially delay the ability of the
        Company
        or any of its Subsidiaries to consummate the transactions contemplated by
        this
        Agreement or perform their respective obligations hereunder.&#160; On the date
        of this Agreement, the Company is not engaged in any discussions nor does
        it
        have any intention to engage in a Transaction Proposal.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Litigation; Labor Matters; Compliance
        with Laws</u>.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Except as set forth in Section 3.01(i)(i)
        of the Company Disclosure Schedule,
        there is no suit, action, claim, charge, arbitration, investigation or
        proceeding pending before a Governmental Entity and, to the knowledge of
        the
        Company, no suit, claim, charge, action, arbitration, investigation or
        proceeding threatened against or investigation pending, in each case with
        respect to the Company or any of its Subsidiaries, that, individually or
        in the
        aggregate, could reasonably be expected to have a Material Adverse Effect
        with
        respect to the Company or prevent or materially delay the ability of the
        Company
        or any of its Subsidiaries to consummate the transactions contemplated by
        this
        Agreement or to perform their respective obligations hereunder, nor is there
        any
        judgment, decree, citation, injunction, rule or order of any Governmental
        Entity
        or arbitrator outstanding against the Company or any of its Subsidiaries
        which,
        individually or in the aggregate, could reasonably be expected to have a
        Material Adverse Effect with respect to the Company.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
(1) Neither the Company nor any of its Subsidiaries
        is a party to, or bound by,
        any collective bargaining agreement, contract or other agreement or
        understanding with a labor union or labor organization; (2) to the knowledge
        of
        the Company, neither the Company nor any of its Subsidiaries is the subject
        of
        any strike, grievance or other proceeding asserting that the Company or any
        Subsidiary has committed an unfair labor practice or seeking to compel it
        to
        bargain with any labor organization as to wages or conditions of employment;
        (3)
        there is no strike, work stoppage or other labor dispute involving it or
        any of
        its Subsidiaries pending or, to its knowledge, threatened; (4) no grievance
        is
        pending or, to the knowledge of the Company, threatened in writing against
        the
        Company or any of its Subsidiaries which, individually or in the aggregate,
        could reasonably be expected to have a Material Adverse Effect with respect
        to
        the Company; (5) to the knowledge of the Company, the Company and each of
        its
        Subsidiaries is in material compliance with all applicable laws (domestic
        and
        foreign), agreements, contracts and policies relating to employment, employment
        practices, wages, hours, immigration matters and terms and conditions of
        employment; (6) except as set forth in Section 3.01(i)(ii)(6) of the Company
        Disclosure Schedule, the Company (or one of its Subsidiaries) has paid in
        full
        to all employees of the Company and its Subsidiaries all wages, salaries,
        commissions, bonuses, benefits and other compensation due and payable to
        such
        employees under any policy, practice, agreement, plan, program, statue or
        other
        law except for failures, if any, that, individually or in the aggregate,
        would
        not have a Material Adverse Effect with respect to the Company; (7) except
        as
        set forth in Section 3.01(i)(ii)(7) of the Company Disclosure Schedule, neither
        the Company nor any of its Subsidiaries is liable for any severance pay or
        other
        payments to any employee or former employee arising from the termination
        of
        employment under any benefit or severance policy, practice, agreement, plan,
        or
        program of the Company or any of its Subsidiaries, nor to the knowledge of
        the
        Company shall the Company or any of its Subsidiaries have any liability which
        exists or arises, or may be deemed to exist or arise, under any applicable
        law
        or otherwise, as a result of or in connection with the transactions contemplated
        hereunder or as a result of the termination by the Company of any Persons
        employed by the Company or any of its Subsidiaries on or prior to the Effective
        Time of the Merger; and (8) the Company and its Subsidiaries are in compliance
        with their respective obligations pursuant to the Worker Adjustment and
        Retraining Notification Act of 1988 ("<u>WARN</u>") and any similar state or
        local laws, and all other employee notification and bargaining obligations
        arising under any collective bargaining agreement, statute or otherwise.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Employee Benefit Plans</u>.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; mso-list: l0 level4 lfo4">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Section 3.01(j)
        of the Company Disclosure Schedule contains a true and complete
        list of each "employee benefit plan" (within the meaning of Section 3(3)
        of the
        Employee Retirement Income Security Act of 1974, as amended ("<u>ERISA</u>")
        (including, without limitation, multiemployer plans within the meaning of
        Section 3(37) of ERISA or any of its foreign equivalents)), stock purchase,
        stock option, severance, employment, change-in-control, fringe benefit,
        collective bargaining, bonus, incentive, deferred compensation and all other
        employee benefit plans, agreements, programs, policies or other arrangements
        relating to employment, benefits or entitlements, whether or not subject
        to
        ERISA (including any funding mechanism therefor now in effect or required
        in the
        future as a result of the transactions contemplated by this Agreement or
        other
        activities taken by the Company or any of its Subsidiaries on or prior to
        the
        date of this Agreement), sponsored by the Company, any of its Subsidiaries
        or
        any other entity such as a co-employer, whether formal or informal, oral
        or
        written, legally binding or not under which any employee or former employee
        of
        the Company or any of its Subsidiaries has any present or future right to
        benefits based on such employee's employment with the Company or one of its
        Subsidiaries and under which the Company or any of its Subsidiaries has any
        present or future liability. &#160;All such plans, agreements, programs,
        policies and arrangements are herein collectively referred to as the "<u>Company
        Plans</u>."</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
With respect to each Company Plan, the Company
        has delivered to Parent a
        current, accurate and complete copy (or, to the extent no such copy exists,
        an
        accurate description) thereof and, to the extent applicable, (A) any related
        trust agreement, annuity contact or other funding instrument; (B) the most
        recent determination letter issued by the U.S. Internal Revenue Service
        ("<u>IRS</u>"); (C) any summary plan description and other material written
        communications (or a description of any material oral communications) by
        the
        Company or any of its Subsidiaries to its employees concerning the extent
        of the
        benefits provided under a Company Plan; and (D) for the three most recent
        years
        (I) the Form 5500 and attached schedules; (II) audited financial statements;
        (III) actuarial valuation reports; and (IV) attorney's response to an auditor's
        request for information.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
(A) Each Company Plan has been established
        and administered in accordance with
        its terms, and in compliance with the applicable provisions of ERISA, the
        Code
        and other applicable laws, rules and regulations (including the applicable
        laws,
        rules and regulations of foreign jurisdictions), in each case, in all material
        respects; (B) each Company Plan which is intended to be qualified within
        the
        meaning of Code Section 401(a) is so qualified and has received a favorable
        determination letter as to its qualification and, to the Company's knowledge,
        nothing has occurred, whether by action or failure to act, which would cause
        the
        loss of such qualification; (C) with respect to any Company Plan, no actions,
        suits or claims (other than routine claims for benefits in the ordinary course)
        are pending or, to the best knowledge of the Company, threatened; (D) to
        the
        Company's knowledge, no facts or circumstances exist which could give rise
        to
        any such actions, suits or claims and the Company shall promptly notify Parent
        in writing of any pending claims or, to the knowledge of the Company, any
        threatened claims arising between the date hereof and the Effective Time
        of the
        Merger; (E) neither the Company nor, to the Company's knowledge, any other
        party
        has engaged in a prohibited transaction, as such term is defined under Code
        Section 4975 or ERISA Section 406, which would subject the Company or Parent
        or
        its respective Subsidiaries to any material Taxes, penalties or other
        liabilities under the Code or ERISA; (F) no event has occurred and no condition
        exists that could reasonably be expected to subject the Company, either directly
        or by reason of its relationship to any member of its "<u>Controlled Group</u>"
        (defined as any organization which is deemed to be a single employer with
        the
        Company within the meaning of Code Sections 414(b), (c), (m) or (o) or ERISA
        Section 4001), to any material Tax, fine or penalty imposed by ERISA, the
        Code
        or other applicable laws, rules and regulations (including the applicable
        laws,
        rules and regulations of any foreign jurisdiction); (G) all contributions
        and
        payments accrued under each Company Plan, determined in accordance with prior
        funding and accrual practices, as of the Effective Time of the Merger have
        been
        or shall be timely paid or made prior thereto and adequate reserves have
        been
        provided for in the Company's SEC Financial Statements for any premiums (or
        portions thereof) and for all benefits attributable to service on or prior
        to
        the Effective Time of the Merger; (H) for each Company Plan with respect
        to
        which a Form 5500 has been filed, no material change has occurred with respect
        to the matters covered by the most recent Form 5500 since the date thereof;
        and
        (I) no Company Plan provides for an increase in the rate of contribution,
        benefit accrual or vesting of benefits on or after the date of this
        Agreement.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Except as disclosed in Section 3.01(j)(iv)
        of the Company Disclosure Schedule:
&#160;(A) no Company Plan nor any "pension plan" (as defined in ERISA Section 3
        (2)) maintained or contributed to by any member of the Company's Controlled
        Group has incurred any "accumulated funding deficiency" as such term is defined
        in ERISA Section 302 and Code Section 412 (whether or not waived); (B) no
        event
        or condition exists which could be deemed a reportable event within the meaning
        of ERISA Section 4043 which could result in a liability to the Company or
        any
        member of its Controlled Group and no condition exists which could subject
        the
        Company or any member of its Controlled Group to a fine under ERISA Section
        4071; (C) as of the Effective Time of the Merger, the Company and all members
        of
        its Controlled Group have made all required premium payments when due to
        the
        Pension Benefit Guaranty Corporation (the "<u>PBGC</u>"); (D) neither the
        Company nor any member of its Controlled Group is subject to any liability
        to
        the PBGC for any plan termination occurring on or prior to the Effective
        Time of
        the Merger; (E) no amendment has occurred which has required or could require
        the Company or any member of its Controlled Group to provide security pursuant
        to Code Section 401(a)(29); and (F) neither the Company nor any member of
        its
        Controlled Group has engaged in a transaction which could subject it to
        liability under ERISA Section 4069.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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        </div>
      </div>
      <div style="MARGIN: 0in 0in 12pt">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
As of the Effective Time of the Merger,
        the assets of each Company Plan are at
        least equal in value to the present value of all accrued benefits (vested
        and
        unvested) of the participants in such Company Plan on a termination basis
        using
        the assumptions established by the PBGC as in effect on the most recent
        valuation date.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
(A) the Company and each member of its Controlled
        Group has or shall have, as of
        the Effective Time of the Merger, made all contributions to each multiemployer
        plan &#160;(within the meaning of 54001(a)(3) of ERISA) to which the Company or
        any member of its Controlled Group has any liability or contribution (or
        has at
        any time contributed or had an obligation to contribute) required by the
        terms
        of such multiemployer plan or any collective bargaining agreement; (B) neither
        the Company nor any member of its Controlled Group has incurred any material
        withdrawal liability under Title IV of ERISA or would be subject to such
        liability if, as of the Effective Time of the Merger, the Company or any
        member
        of its Controlled Group were to engage in complete withdrawal (as defined
        in
        ERISA Section 4203) or partial withdrawal (as defined in ERISA Section 4205)
        from any such multiemployer plan; (C) no such multiemployer plan is in
        reorganization or insolvent (as those terms are defined in ERISA Sections
        4241
        and 4245, respectively); and (D) neither the Company nor any member of its
        Controlled Group has engaged in a transaction which could subject it to
        liability under ERISA Section 4212(c).</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; (A)
        Each Company Plan which is intended to meet the requirements for Tax-favored
        treatment under Subchapter B of Chapter 1 of Subtitle A of the Code meets
        such
        requirements; and (B) the Company has received a favorable determination
        from
        the Internal Revenue Service with respect to any trust intended to be qualified
        within the meaning of Code Section 501(c)(9).</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(viii)&#160;&#160;&#160;&#160;&#160; Each
        plan, program, arrangement or agreement which constitutes in any part a
        nonqualified deferred compensation plan within the meaning of Section 409A
        of
        the Code is identified as such in Section 3.01(j)(viii) of the Company
        Disclosure Schedule.&#160; Since April 30, 2004, each plan, program, arrangement
        or agreement there identified has been operated and maintained in accordance
        with a good faith, reasonable interpretation of Section 409A of the Code
        and its
        purpose, as determined under applicable guidance of the Department of Treasury
        and Internal Revenue Service, with respect to amounts deferred (within the
        meaning of Section 409A of the Code) after April 30, 2004.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(ix)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Except as set forth in Section 3.01(j)(ix)
        of the Company Disclosure Schedule,
        no Company Plan exists which could result in the payment to any Company employee
        of any money or other property or rights or accelerate or provide any other
        rights or benefits to any Company employee as a result of the transaction
        contemplated by this Agreement, whether or not such payment would constitute
        a
        parachute payment within the meaning of Code section 280G.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(x)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The Company has not undertaken to maintain
        any Company Plan for any period of
        time and each Company Plan is terminable at the sole discretion of the sponsor
        thereof, subject only to such constraints as may imposed by applicable
        law.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Taxes</u>.&#160; The Company has timely filed all
        Tax Returns required to be
        filed by it, each such Tax Return has been prepared in compliance with all
        applicable laws and regulations, and all such Tax Returns are true, accurate
        and
        complete in all respects.&#160; The Company has paid all Taxes shown to be due
        on such Tax Returns.&#160; The Company has made accruals for Taxes on the SEC
        Financial Statements that are adequate to cover any Tax liability of the
        Company
        determined in accordance with generally accepted accounting principles through
        the date of the applicable SEC Financial Statements, and any Taxes of the
        Company arising after the date of the most recent SEC Financial Statements
        and
        at or before the Effective Time of the Merger have been or will be incurred
        in
        the ordinary course of the Company's business.&#160; Except as set forth in
        Section 3.01(k) of the Company Disclosure Schedule, the Company has timely
        withheld and timely paid all Taxes that are required to have been withheld
        and
        paid by it in connection with amounts paid or owing to any employee, independent
        contractor, creditor or other person.&#160; No outstanding deficiency or
        adjustment in respect of Taxes has been proposed, asserted or assessed by
        any
        Tax authority against the Company.&#160; The Company has not granted any
        outstanding extensions of the time in which any Tax may be assessed or collected
        by any Tax authority.&#160; There is no action, suit, proceeding, or audit with
        respect to any Tax now in progress, pending or, to the knowledge of the Company,
        threatened against or with respect to the Company.&#160; Neither the Company nor
        any of its Subsidiaries has ever been a member of any affiliated group of
        corporations (as defined in Section 1504(a) of the Code) other than a group
        of
        which the Company was the common parent.&#160; Neither the Company nor any of
        its Subsidiaries has ever filed or been included in a combined, consolidated
        or
        unitary Tax Return other than with respect to a group of which the Company
        was
        the common parent.&#160; The Company is neither a party to nor bound by any Tax
        sharing agreement or Tax allocation agreement.&#160; Neither the Company nor any
        of its Subsidiaries is presently liable, nor does the Company or any of its
        Subsidiaries have any potential liability, for the Taxes of another person
        (i)
        under Treasury Regulations Section 1.1502-6 or comparable provision of state,
        local or foreign law, except with respect to a group of which the Company
        was
        the common parent, (ii) as transferee or successor, or (iii) by contract
        or
        indemnity or otherwise (other than pursuant to contracts entered into with
        customers, vendors, real property lessors, or other third parties the principal
        purpose of which is not to address Tax matters).&#160; The Company has not
        participated, within the meaning of Treasury Regulations Section 1.6011-4(c),
        in
        (i) any "reportable transaction" within the meaning of Section 6011 of the
        Code
        and the Treasury Regulations thereunder, (ii) any "confidential corporate
        tax
        shelter" within the meaning of Section 6111 of the Code and the Treasury
        Regulations thereunder, (iii) any "potentially abusive tax shelter" within
        the
        meaning of Section 6112 of the Code and the Treasury Regulations thereunder,
        or
        (iv) any transaction identified as a "transaction of interest" within the
        meaning of proposed Treasury Regulations Section 1.6011-4(b)(6).&#160; The
        Company will not be required, as a result of a change in method of accounting
        for any period ending on or before or including the Effective Time of the
        Merger, to include any adjustment under Section 481(c) of the Code (or any
        similar or corresponding provision or requirement under any other Tax law)
        in
        Taxable income for any period ending on or after the Effective Time of the
        Merger.&#160; The Company will not be required to include any item of income in
        Taxable income for any Taxable period (or portion thereof) ending after the
        Closing Date as a result of any (i) prepaid amount received on or prior to
        the
        Closing Date, or (ii) "closing agreement" described in Section 7121 of the
        Code
        (or any similar or corresponding provision of any other Tax law).&#160; The
        Company has never been either a "distributing corporation" or a "controlled
        corporation" in connection with a distribution of stock qualifying for Tax-free
        treatment, in whole or in part, pursuant to Section 355 of the Code.&#160; The
        Company is not and has not been a United States real property holding
        corporation within the meaning of Code Section 897(c)(2), during the applicable
        period specified in Code Section 897(c)(1)(A)(ii).&#160; For purposes of this
        Section 3.01(k), references to the Company shall be deemed to include the
        Company and all of its Subsidiaries except where the context indicates
        otherwise.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Properties</u>. &#160;The Company or one of its Subsidiaries
        (i) has good and
        marketable title to all the properties and assets (A) reflected in the 2007
        Balance Sheet as being owned by the Company or one of its Subsidiaries (other
        than any such properties or assets sold or disposed of since such date in
        the
        ordinary course of business consistent with past practice) or (B) acquired
        after
        January 31, 2007 which are material to the Company's business on a consolidated
        basis, free and clear of all Liens. &#160;Except as set forth in Section 3.01(l)
        of the Company Disclosure Schedule, the Company or one of its Subsidiaries
        has
        good and valid leasehold interests in all real property leases, subleases
        and
        occupancy agreements to which the Company or any of its Subsidiaries is a
        party
        (the "<u>Leases</u>") and is in sole possession of the properties purported to
        be leased thereunder. &#160;Except as set forth in Section 3.01(l) of the
        Company Disclosure Schedule, each Lease is in full force and effect and
        constitutes a legal, valid and binding obligation of, and is legally enforceable
        against, the respective parties thereto. &#160;Except as set forth in Section
        3.01(l) of the Company Disclosure Schedule, there is no uncured breach, and
        no
        default exists, on the part of landlord under any of the Leases, and the
        Company
        has no knowledge of breach or default or any event, condition or state of
        facts,
        which with the giving of notice or the passage of time, or both, would
        constitute a breach or default by the Company or any of its Subsidiaries
        under
        any Lease. &#160;There is no suit, action, arbitration or other proceeding with
        respect to the Leases or the premises leased under the Leases. &#160;Neither the
        Company nor or any of its Subsidiaries has received notice and does not
        otherwise have knowledge of any pending, threatened or contemplated condemnation
        proceeding affecting any premises owned or leased by the Company or any of
        its
        Subsidiaries or any part thereof or of any sale or other disposition of any
        such
        owned or leased premises or any part thereof in lieu of condemnation. &#160;The
        real property leased to the Company or any of its Subsidiaries under the
        Leases
        encompasses all real property used by the Company and its Subsidiaries, and
        neither the Company nor or any of its Subsidiaries owns any real property
        and
        does not have any options to purchase real property. &#160;The landlord under
        each of the Leases has performed all initial improvements required to be
        performed by it under such Lease and all tenant improvements allowances have
        been paid to the Company or any of its Subsidiaries as tenant under such
        Lease.
&#160;All insurance required to be maintained by the Company or any of its
        Subsidiaries under each of the Leases is in full force and effect.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(m)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Environmental Matters</u>. &#160;Except as could not be reasonably
        expected
        to result in any liability under Environmental Laws to the Company or any
        of its
        Subsidiaries which, individually or in the aggregate, could reasonably be
        expected to have a Material Adverse Effect with respect to the Company:</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; mso-list: l0 level4 lfo3">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
the Company and
        its Subsidiaries hold and are in compliance with all
        Environmental Permits and the Company and its Subsidiaries are, and have
        been,
        otherwise in compliance with all Environmental Laws and, to the knowledge
        of the
        Company, there are no conditions that might prevent or interfere with such
        compliance in the future;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
neither the Company nor any of its Subsidiaries
        has received any Environmental
        Claim, and to the knowledge of the Company there is no threatened Environmental
        Claim;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
neither the Company nor any of its Subsidiaries
        has entered into any consent
        decree, order or agreement under any Environmental Law;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
there are no (A) underground storage tanks,
        (B) polychlorinated biphenyls, (C)
        friable asbestos or asbestos-containing materials, (D) sumps, (E) surface
        impoundments, (F) landfills, or (G) sewers or septic systems present at any
        facility currently owned, leased, operated or otherwise used by the Company
        or
        any of its Subsidiaries that could reasonably be expected to give rise to
        liability of the Company or any of its Subsidiaries under any Environmental
        Laws;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
there are no past (including, without limitation,
        with respect to assets or
        businesses formerly owned, leased or operated by the Company or any of its
        Subsidiaries) or present actions, activities, events, conditions or
        circumstances, including, without limitation, the release, threatened release,
        emission, discharge, generation, treatment, storage or disposal of Hazardous
        Materials, that could reasonably be expected to give rise to liability of
        the
        Company or any of its Subsidiaries under any Environmental Laws;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
no modification, revocation, reissuance,
        alteration, transfer, or amendment of
        the Environmental Permits, or any review by, or approval of, any third party
        of
        the Environmental Permits is required in connection with the execution or
        delivery of this Agreement or the consummation of the transactions contemplated
        hereby or the continuation of the business of the Company or its Subsidiaries
        following such consummation;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      </div>
      <div style="MARGIN: 0in 0in 12pt">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Hazardous Materials have not been generated,
        transported, treated, stored,
        disposed of, arranged to be disposed of, released or threatened to be released
        at, on, from or under any of the properties or facilities currently owned,
        leased or otherwise used by the Company or any of its Subsidiaries, in violation
        of or so as could result in liability under, any Environmental Laws; and</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(viii)&#160;&#160;&#160;&#160;&#160; neither
        the Company nor any of its Subsidiaries has contractually assumed any
        liabilities or obligations under any Environmental Laws.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(n)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Contracts; Debt Instruments</u>. &#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; mso-list: l0 level4 lfo5">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Except as set
        forth in Section 3.01(n) of the Company Disclosure Schedule,
        neither the Company nor any of its Subsidiaries is, or has received any notice
        or has any knowledge that any other party is, in default in any respect under
        any contract, agreement, commitment, arrangement, lease, policy or other
        instrument to which it or any of its Subsidiaries is a party or by which
        it or
        any such Subsidiary is bound, except for those defaults which would not,
        either
        individually or in the aggregate, have a Material Adverse Effect with respect
        to
        the Company; and, to the knowledge of the Company, there has not occurred
        any
        event that with the lapse of time or the giving of notice or both would
        constitute such a default.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The Company has delivered to Parent (x)
        true, complete and correct copies of all
        loan or credit agreements, notes, bonds, mortgages, indentures and other
        agreements and instruments pursuant to which any Indebtedness of the Company
        or
        any of its Subsidiaries is outstanding and (y) accurate information regarding
        the respective principal amounts currently outstanding thereunder.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Neither the Company nor any of its Subsidiaries
        is party to or bound by any
        agreement which, pursuant to the requirements of Form 10-KSB under the Exchange
        Act, would be required to be filed as an exhibit to an Annual Report on Form
        10-KSB of the Company except (A) agreements included or incorporated by
        reference as exhibits to the Company's Annual Report on Form 10-KSB for the
        fiscal year ended April 30, 2006 and (B) agreements entered into after the
        date
        of this Agreement in compliance with Section 4.01 hereof.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(o)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Brokers</u>. &#160;No broker, investment banker, financial
        advisor or other
        Person (including, without limitation, SCO Capital Partners LLC and its
        affiliates) is entitled to any broker's finder's, financial advisor's or
        other
        similar fee or commission in connection with the transactions contemplated
        by
        this Agreement based upon arrangements made by or on behalf of the Company
        or
        any of its Subsidiaries. &#160;The Company hereby indemnifies Parent and Merger
        Sub and holds Parent and Merger Sub harmless from and against any and all
        claims, liabilities or obligations with respect to any other fee, commission
        or
        expense asserted by any Person on the basis of any act or statement alleged
        to
        have been made by the Company or its affiliates.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(p)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Board Recommendation; Section 203 of
        the Delaware Law</u>. &#160;The Board of
        Directors of the Company, at a meeting duly called and held, has by unanimous
        vote of those directors present (i) approved this Agreement and the Merger
        and
        has taken all actions necessary on the part of the Company to render the
        restrictions applicable to business combinations contained in Section 203
        of the
        Delaware Law inapplicable to this Agreement and the Merger and (ii) resolved
        to
        recommend that the holders of shares of the Company's capital stock approve
        this
        Agreement and the transactions contemplated herein, including the Merger.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(q)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Required Company Vote</u>. &#160;The Company Stockholder Approval
        is the only
        vote of the holders of any class or series of securities of the Company of
        any
        of its Subsidiaries necessary to approve this Agreement, the Merger and the
        other transactions contemplated hereby.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(r)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Intellectual Property</u>.&#160; (i) Section 3.01(r)(i) of the Company
        Disclosure Schedule sets forth all Intellectual Property owned by the Company
        or
        its Subsidiaries, which is registered or filed with, or has been submitted
        to,
        any Governmental Entity, and all Intellectual Property licensed from third
        parties by the Company or any of its Subsidiaries, and the nature of the
        Company's or its Subsidiaries' rights therein.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      </div>
      <div style="MARGIN: 0in 0in 12pt">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Except as set forth in Section 3.01(r) of
        the Company Disclosure Schedule, the
        Company and its Subsidiaries own or have the right to use all Intellectual
        Property necessary for the Company and its Subsidiaries to conduct their
        business as it is currently conducted and consistent with past practice.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Except as set forth on Section 3.01(r) of
        the Company Disclosure Schedule: (1)
        all of the Intellectual Property used by the Company or any of its Subsidiaries
        is subsisting and unexpired, free of all Liens, has not been abandoned and,
        to
        the knowledge of the Company, does not infringe the intellectual property
        rights
        of any third party; (2) none of the Intellectual Property used by the Company
        or
        any of its Subsidiaries is the subject of any license, security interest
        or
        other agreement to which the Company is a party granting rights therein to
        any
        third party; (3) no judgment, decree, injunction, rule or order has been
        rendered by any U.S. federal or state or foreign Governmental Entity which
        would
        limit, cancel or question the validity of, or the Company's or its Subsidiaries
        ' rights in and to any Intellectual Property in any respect that could
        reasonably be expected to have, individually or in the aggregate, a Material
        Adverse Effect with respect to the Company; (4) neither the Company nor or
        any
        of its Subsidiaries has received written notice of any pending or threatened
        suit, action or proceeding that seeks to limit, cancel or question the validity
        of, or the Company's or its Subsidiaries ' rights in and to any Intellectual
        Property; and (5) the Company and its Subsidiaries take reasonable steps
        to
        protect, maintain and safeguard their Intellectual Property, including any
        Intellectual Property for which improper or unauthorized disclosure would
        impair
        its value or validity, and have executed appropriate agreements and made
        appropriate filings and registrations in connection with the foregoing.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(s)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Permits</u>.&#160; The Company and each of its Subsidiaries
        have all permits,
        licenses and franchises from Governmental Entities required to conduct their
        businesses as now being conducted, except for such permits, licenses and
        franchises the absence of which, individually or in the aggregate, could
        reasonably be expected to have a Material Adverse Effect with respect to
        the
        Company (the "<u>Company Permits</u>").&#160; The Company and each of its
        Subsidiaries are in compliance with the terms of the Company Permits.&#160; No
        Company Permit shall cease to be effective as a result of the consummation
        of
        the transactions contemplated by this Agreement.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(t)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Insurance</u>.&#160; Each of the Company and its Subsidiaries
        maintains
        insurance policies (each, an "<u>Insurance Policy</u>") with reputable insurance
        carriers against all risks of a character and in such amounts as are usually
        insured against by similarly situated companies in the same or similar
        businesses.&#160; Each Insurance Policy is in full force and effect and is set
        forth in Section 3.01(t) of the Company Disclosure Schedule.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(u)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Parent SEC Documents</u>.&#160; The Company has received and reviewed
        all of
        the Parent SEC Documents.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153631">3.02.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Representations
        and Warranties of Parent and Merger Sub</u>. &#160;Except as set forth in the
        disclosure schedule (to the extent each disclosure item therein is clearly
        marked to indicate the section, paragraph or subparagraph of this Agreement
        to
        which such disclosure is an exception, referencing the same section, paragraph
        and subparagraph as used in this Agreement) delivered by Parent and Merger
        Sub
        to the Company at the time of execution of this Agreement (the "<u>Parent
        Disclosure Schedule</u>") or in the Parent SEC Documents, Parent and Merger Sub
        represent and warrant to the Company as follows:</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Organization, Standing and Corporate
        Power</u>. &#160;Each of Parent and
        Merger Sub is duly organized, validly existing and in good standing under
        the
        laws of the jurisdiction in which it is organized and has the requisite
        corporate power and authority to carry on its business as now being conducted.
        &#160;Each of Parent and Merger Sub is duly qualified or licensed to do business
        and is in good standing in each jurisdiction (domestic or foreign) in which
        the
        nature of its business or the ownership or leasing of its properties makes
        such
        qualification or licensing necessary, other than in such jurisdictions where
        the
        failure to be so qualified or licensed (individually or in the aggregate)
        would
        not have a Material Adverse Effect with respect to Parent. &#160;Parent has made
        available to the Company complete and correct copies of its certificate of
        incorporation and by-laws and the certificate of incorporation and by-laws
        of
        Merger Sub.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Capital Structure</u>. &#160;As of the date of this Agreement,
        the authorized
        capital stock of Parent consists of (i) 100,000,000,000 shares of Parent
        Common
        Stock and (ii) 2,000,000 shares of Parent Preferred Stock. As of the close
        of
        business on April 16, 2007, there were: (i) 3,535,358 shares of Parent Common
        Stock issued and outstanding; (ii) no shares of Parent Preferred Stock issued
        and outstanding, (iii) 163 shares of Parent Common Stock held in the treasury
        of
        Parent; (iv) 75,146 shares of Parent Common Stock reserved for issuance upon
        exercise of options available for grant pursuant to Parent's stock option
        plans
        (collectively, the "<u>Parent Stock Plans</u>"); (v) 1,888,704 shares of Parent
        Common Stock issuable upon exercise of awarded but unexercised stock options;
        (vi) warrants representing the right to purchase 4,826,517 shares of Parent
        Common Stock; (vii) 6,457,544 shares of Parent Common Stock reserved for
        issuance upon conversion of Parent Voting Debt; and (viii) 31,985 shares
        of
        Parent Common Stock reserved for capitalized interest on Parent Voting
        Debt.&#160; Except as set forth above, as of the close of business on April 16,
        2007 there were no shares of capital stock or other equity securities of
        Parent
        issued, reserved for issuance or outstanding. &#160;All outstanding shares of
        capital stock of Parent are, and all shares which may be issued as described
        above shall be, when issued, duly authorized, validly issued, fully paid
        and
        nonassessable and not subject to preemptive rights. &#160;The shares of Parent
        Common Stock to be issued in connection with the Merger (x)&#160;shall, when
        issued, be duly authorized, validly issued, fully paid and nonassessable
        and not
        subject to preemptive rights, and (y) shall be issued in compliance in all
        material respects with all applicable federal and state securities laws and
        applicable rules and regulations promulgated thereunder.&#160; As of the
        Effective Time of the Merger, the Board of Directors of Parent shall have
        reserved for issuance a number of shares of Parent Common Stock as is required
        by the Company Warrants to be assumed by Parent pursuant to Section 2.03.
        &#160;Except as set forth in Section 3.02(b) of the Parent Disclosure Schedule,
        there is no outstanding Voting Debt of Parent. &#160;Except as set forth above
        and in the Rights Agreement, dated as of October 31, 2001, between Parent
        and
        the American Stock Transfer &amp; Trust Company, there are no outstanding
        securities, options, warrants, calls, rights, commitments, agreements,
        arrangements or undertakings of any kind to which Parent is a party or by
        which
        it is bound obligating Parent to issue, deliver or sell, or cause to be issued,
        delivered or sold, additional shares of capital stock or other equity or
        voting
        securities of Parent or obligating Parent to issue, grant, extend, accelerate
        the vesting of or enter into any such security, option, warrant, call, right,
        commitment, agreement, arrangement or undertaking. &#160;There are no
        outstanding contractual obligations, commitments, understandings or arrangements
        of Parent to repurchase, redeem or otherwise acquire or make any payment
        in
        respect of any shares of capital stock of Parent.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">As of the date hereof, the authorized capital
        stock of Merger Sub consists of 1,000 shares of common stock, par value $0.01
        per share, 100 of which have been validly issued, are fully paid and
        nonassessable and are owned by Parent, free and clear of any Lien, and as
        of the
        Closing Date, all the issued and outstanding shares of the common stock of
        Merger Sub shall be owned by Parent free and clear of any Lien.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Authority; Noncontravention</u>. &#160;Parent and Merger Sub have all
        requisite corporate power and authority to enter into this Agreement and
        to
        consummate the transactions contemplated hereby. &#160;The execution and
        delivery of this Agreement by Parent and Merger Sub and the consummation
        by
        Parent and Merger Sub of the transactions contemplated hereby have been duly
        authorized by all necessary corporate action on the part of Parent and Merger
        Sub. &#160;This Agreement has been duly executed and delivered by each of Parent
        and Merger Sub, as applicable, and (assuming due authorization, execution
        and
        delivery by the Company) constitute valid and binding obligations of Parent
        and
        Merger Sub, as applicable, enforceable against them in accordance with their
        terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
        reorganization, moratorium and other similar laws affecting creditors' rights
        generally, general equitable principles (whether considered in a proceeding
        in
        equity or at law) and an implied covenant of good faith and fair dealing.
        &#160;The execution and delivery of this Agreement does not, and the
        consummation by Parent and Merger Sub of the transactions contemplated by
        this
        Agreement and compliance by Merger Sub with the provisions of this Agreement
        shall not, conflict with, or result in any breach or violation of, or default
        (with or without notice or lapse of time, or both) under, or give rise to
        a
        right of termination, cancellation or acceleration of, or a "put" right with
        respect to any obligation under, or to a loss of a material benefit under,
        or
        result in the creation of any Lien upon any of the properties or assets of
        Parent or Merger Sub under (i) the certificate of incorporation or by-laws
        of
        Parent or Merger Sub, (ii)&#160;any loan or credit agreement, note, bond,
        mortgage, indenture, lease or other agreement, instrument, permit, concession,
        franchise or license applicable to Parent or Merger Sub or any of their
        respective properties or assets or (iii) subject to the governmental filings
        and
        other matters referred to in the following sentence, any judgment, order,
        decree, statute, law, ordinance, rule, regulation or arbitration award
        applicable to Parent or Merger Sub or their respective properties or assets,
        other than, in the case of clauses (ii) and (iii), any such conflicts, breaches,
        violations, defaults, rights, losses or Liens that individually or in the
        aggregate would not have a Material Adverse Effect with respect to Parent
        or
        prevent or materially delay the ability of Parent and Merger Sub to consummate
        the transactions contemplated by this Agreement or perform their respective
        obligations hereunder. &#160;No consent, approval, order or authorization of, or
        registration, declaration or filing with, or notice to, any Governmental
        Entity
        is required by or with respect to Parent or Merger Sub in connection with
        the
        execution and delivery of this Agreement by Parent and Merger Sub or the
        consummation by Parent and Merger Sub of any of the transactions contemplated
        hereby, except for (i) such filings, if any, may be required under the HSR
        Act
        and the filing of any required applications, if any, by Parent and Merger
        Sub
        pursuant to antitrust or similar laws in such foreign jurisdictions as
        necessary, (ii) the filing with the SEC of (A) the Form S-4 and (B) such
        reports
        under the Exchange Act as may be required in connection with this Agreement
        and
        the transactions contemplated hereby, (iii) the filing of the Certificate
        of
        Merger with the Secretary of State of the State of Delaware and appropriate
        documents with the relevant authorities of other states in which Parent is
        qualified to do business, (iv) such other consents, approvals, orders,
        authorizations, registrations, declarations, filings or notices as may be
        required under the "takeover" or "blue sky" laws of various states and (v)
        such
        other consents, approvals, orders, authorizations, registrations, declarations,
        filings or notices the failure of which to make or obtain, individually or
        in
        the aggregate, could not reasonably be expected to (x)&#160;prevent or
        materially delay consummation of the Merger or the other transactions
        contemplated hereby or performance of Parent's and Merger Sub's obligations
        hereunder or (y)&#160;have a Material Adverse Effect with respect to
        Parent.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Parent SEC Documents; Undisclosed Liabilities</u>. &#160;Parent has filed
        with the SEC all reports, schedules, forms, statements and other documents
        required pursuant to the Securities Act and the Exchange Act since January
        1,
        2005 (collectively, and in each case including all exhibits and schedules
        thereto and documents incorporated by reference therein, the "<u>Parent SEC
        Documents</u>"). &#160;As of their respective dates, the Parent SEC Documents
        (other than the Parent SEC Financial Statements) complied in all material
        respects with the requirements of the Securities Act or the Exchange Act,
        as the
        case may be, and the rules and regulations of the SEC promulgated thereunder
        applicable to such Parent SEC Documents. &#160;Except to the extent that
        information contained in any Parent SEC Document has been revised or superseded
        by a later filed Parent SEC Document, none of the Parent SEC Documents
        (including any Parent SEC Financial Statements included therein) contains
        any
        untrue statement of a material fact or omits to state a material fact required
        to be stated therein or necessary in order to make the statements therein,
        in
        the light of the circumstances under which they were made, not misleading.
        &#160;The consolidated financial statements of Parent included in all Parent SEC
        Documents filed since January 1, 2005 (the "<u>Parent SEC Financial
        Statements</u>") comply as to form in all material respects with applicable
        published accounting requirements and the published rules and regulations
        of the
        SEC with respect thereto, have been prepared in accordance with generally
        accepted accounting principles as applied in the United States (except, in
        the
        case of unaudited consolidated quarterly statements, as permitted by Form
        10-Q
        of the SEC), applied on a consistent basis during the periods involved (except
        as may be indicated in the notes thereto) and fairly present the consolidated
        financial position of Parent and its consolidated subsidiaries as of the
        dates
        thereof and the consolidated results of their operations and cash flows for
        the
        periods then ended (subject, in the case of unaudited quarterly statements,
        to
        normal recurring year-end audit adjustments). &#160;Neither Parent nor any of
        its Subsidiaries has any liabilities or obligations of any nature (whether
        accrued, absolute, contingent or otherwise) required by generally accepted
        accounting principles as applied in the United States to be recognized or
        disclosed on a consolidated balance sheet of Parent and its Subsidiaries
        or in
        the notes thereto, except (i) liabilities reflected in the audited consolidated
        balance sheet of Parent as of December 31, 2006 and (ii) liabilities incurred
        since December 31, 2006, in the ordinary course of business consistent with
        past
        practice.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Information Supplied</u>. &#160;None of the information supplied
        or to be
        supplied by Parent or Merger Sub in writing for inclusion or incorporation
        by
        reference in (i) the Form S-4 shall, at the time the Form S-4 becomes effective
        under the Securities Act, 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 not misleading or (ii) the Stockholder Statement
        shall, (A) at the date it is first mailed to the Company's stockholders and/or
        (B) at the time of the Stockholder Meeting, 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 are made, not misleading. &#160;The Form S-4 shall comply as to
        form in all material respects with the requirements of the Securities Act
        and
        the rules and regulations promulgated thereunder, except that no representation
        is made by Parent or Merger Sub with respect to statements made or incorporated
        by reference therein based on information supplied in writing by the Company
        specifically for inclusion or incorporation by reference therein.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Absence of Certain Changes or Events</u>. &#160;Since December 31, 2006,
        there is not and has not been: (i) any Material Adverse Change with respect
        to
        Parent; (ii) any condition, event or occurrence which, individually or in
        the
        aggregate, could reasonably be expected to have a Material Adverse Effect
        or
        give rise to a Material Adverse Change with respect to Parent; (iii) any
        condition, event or occurrence which, individually or in the aggregate, could
        reasonably be expected to prevent or materially delay the ability of Parent
        and
        Merger Sub to consummate the transactions contemplated by this Agreement
        or
        perform their respective obligations hereunder. &#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Litigation; Compliance with Laws</u>. &#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; mso-list: l0 level4 lfo6">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Except as set
        forth on Schedule 3.02(g) of the Parent Disclosure Schedules,
        there is no suit, action, claim, charge, arbitration, investigation or
        proceeding pending before a Governmental Entity, and, to the knowledge of
        Parent, no suit, action, claim, charge, arbitration, investigation or proceeding
        pending, in each case with respect to Parent or any of its Subsidiaries that,
        individually or in the aggregate, could reasonably be expected to have a
        Material Adverse Effect with respect to Parent or prevent or materially delay
        the ability of Parent and Merger Sub to consummate the transactions contemplated
        by this Agreement or to perform their respective obligations hereunder, nor
        is
        there any judgment, decree, citation, injunction, rule or order of any
        Governmental Entity or arbitrator outstanding against Parent or any of its
        Subsidiaries which, individually or in the aggregate, could reasonably be
        expected to have, a Material Adverse Effect with respect to Parent.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; mso-list: l0 level4 lfo6">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The businesses of Parent and its Subsidiaries
        are not being conducted in
        violation of any law (domestic or foreign), ordinance or regulation of any
        Governmental Entity, except for possible violations which, individually or
        in
        the aggregate, do not and would not have a Material Adverse Effect with respect
        to Parent.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Interim Operations of Merger Sub</u>. &#160;Merger Sub was formed on
        April&#160;13, 2007 solely for the purpose of engaging in the transactions
        contemplated hereby, has engaged in no other business activities and has
        conducted its operations only as contemplated hereby.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Required Vote</u>. &#160;This Agreement has been approved
        by Parent, as the
        sole stockholder of Merger Sub. No other vote of holders of any class or
        series
        of securities of Parent or Merger Sub is necessary to approve this Agreement,
        the Merger and the transactions contemplated hereby.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Taxes</u>.&#160; Parent has timely filed all Tax
        Returns required to be filed
        by it, each such Tax Return has been prepared in compliance with all applicable
        laws and regulations, and all such Tax Returns are true, accurate and complete
        in all respects.&#160; Parent has paid all Taxes shown to be due on such Tax
        Returns.&#160; Parent has made accruals for Taxes on the Parent SEC Financial
        Statements that are adequate to cover any Tax liability of Parent determined
        in
        accordance with generally accepted accounting principles through the date
        of the
        applicable Parent SEC Financial Statements, and any Taxes of Parent arising
        after the date of the most recent Parent SEC Financial Statements and at
        or
        before the Effective Time of the Merger have been or will be incurred in
        the
        ordinary course of Parent's business.&#160; Parent has timely withheld and
        timely paid all Taxes that are required to have been withheld and paid by
        it in
        connection with amounts paid or owing to any employee, independent contractor,
        creditor or other person.&#160; No outstanding deficiency or adjustment in
        respect of Taxes has been proposed, asserted or assessed by any Tax authority
        against Parent.&#160; Parent has not granted any outstanding extensions of the
        time in which any Tax may be assessed or collected by any Tax authority.&#160;
There is no action, suit, proceeding, or audit with respect to any Tax now
        in
        progress, pending or, to the knowledge of Parent, threatened against or with
        respect to Parent.&#160; Neither Parent nor any of its Subsidiaries has ever
        been a member of any affiliated group of corporations (as defined in Section
        1504(a) of the Code) other than a group of which Parent was the common
        parent.&#160; Neither Parent nor any of its Subsidiaries has ever filed or been
        included in a combined, consolidated or unitary Tax Return other than with
        respect to a group of which Parent was the common parent.&#160; Parent is
        neither a party to nor bound by any Tax sharing agreement or Tax allocation
        agreement.&#160; Neither Parent nor any of its Subsidiaries is presently liable,
        nor does Parent or any of its Subsidiaries have any potential liability,
        for the
        Taxes of another person (i) under Treasury Regulations Section 1.1502-6 or
        comparable provision of state, local or foreign law, except with respect
        to a
        group of which Parent was the common parent, (ii) as transferee or successor,
        or
        (iii) by contract or indemnity or otherwise (other than pursuant to contracts
        entered into with customers, vendors, real property lessors, or other third
        parties the principal purpose of which is not to address Tax matters).&#160;
Parent has not participated, within the meaning of Treasury Regulations Section
        1.6011-4(c), in (i) any "reportable transaction" within the meaning of Section
        6011 of the Code and the Treasury Regulations thereunder, (ii) any "confidential
        corporate tax shelter" within the meaning of Section 6111 of the Code and
        the
        Treasury Regulations thereunder, (iii) any "potentially abusive tax shelter"
        within the meaning of Section 6112 of the Code and the Treasury Regulations
        thereunder, or (iv) any transaction identified as a "transaction of interest"
        within the meaning of proposed Treasury Regulations Section
        1.6011-4(b)(6).&#160; Parent will not be required, as a result of a change in
        method of accounting for any period ending on or before or including the
        Effective Time of the Merger, to include any adjustment under Section 481(c)
        of
        the Code (or any similar or corresponding provision or requirement under
        any
        other Tax law) in Taxable income for any period ending on or after the Effective
        Time of the Merger.&#160; Parent will not be required to include any item of
        income in Taxable income for any Taxable period (or portion thereof) ending
        after the Closing Date as a result of any (i) prepaid amount received on
        or
        prior to the Closing Date, or (ii) "closing agreement" described in Section
        7121
        of the Code (or any similar or corresponding provision of any other Tax
        law).&#160; Parent has never been either a "distributing corporation" or a
        "controlled corporation" in connection with a distribution of stock qualifying
        for Tax-free treatment, in whole or in part, pursuant to Section 355 of the
        Code.&#160; Parent is not and has not been a United States real property holding
        corporation within the meaning of Code Section 897(c)(2), during the applicable
        period specified in Code Section 897(c)(1)(A)(ii).&#160; For purposes of this
        Section 3.02(j), references to Parent shall be deemed to include Parent and
        all
        of its Subsidiaries except where the context indicates otherwise.&#160; </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Brokers</u>. &#160;Except as set forth on Schedule
        3.02(k) of the Parent
        Disclosure Schedules, no broker, investment banker, financial advisor or
        other
        Person (including, without limitation, SCO Capital Partners LLC and its
        affiliates) is entitled to any broker's finder's, financial advisor's or
        other
        similar fee or commission in connection with the transactions contemplated
        by
        this Agreement based upon arrangements made by or on behalf of Parent.
&#160;Parent hereby indemnifies the Company and holds the Company harmless from
        and against any and all claims, liabilities or obligations with respect to
        any
        other fee, commission or expense asserted by any Person on the basis of any
        act
        or statement alleged to have been made by Parent or its affiliates.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 0in" align="center"><a name="_Toc164153632">ARTICLE
        IV.<br><br>COVENANTS RELATING TO CONDUCT OF BUSINESS
        PRIOR TO MERGER </a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153633">4.01.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Conduct
        of
        Business by the Company</u>.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
During the period from the date of this
        Agreement to the Effective Time of the
        Merger (except as otherwise expressly contemplated by the terms of this
        Agreement or agreed to in writing by Parent), the Company shall, and shall
        cause
        its Subsidiaries to, act and carry on their respective businesses in the
        ordinary course of business consistent with past practice and use its and
        their
        respective reasonable best efforts to preserve substantially intact their
        current business organizations, keep available the services of their current
        officers and employees and preserve their relationships with customers,
        supplies, licensors, licensees, advertisers, distributors and others having
        significant business dealings with them. &#160;Without limiting the generality
        of the foregoing, during the period from the date of this Agreement to the
        Effective Time of the Merger, except as otherwise expressly contemplated
        by the
        terms of this Agreement, the Company Disclosure Schedule or agreed to in
        writing
        by Parent, the Company shall not, and shall not permit any of its Subsidiaries
        to:</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
(x) except for the payment of dividends
        on the Company Preferred Stock (by the
        issuance of shares of Company Common Stock solely to the extent permitted
        pursuant to the terms of this Agreement), declare, set aside or pay any
        dividends on, or make any other distributions in respect of, any of its capital
        stock, other than dividends and distributions by a direct or indirect
        wholly-owned domestic Subsidiary of the Company to its parent, (y) split,
        combine or reclassify any capital stock of the Company or any Subsidiary
        or
        issue or authorize the issuance of any other securities in respect of, in
        lieu
        of or in substitution for shares of capital stock of the Company or any
        Subsidiary, or (z) purchase, redeem or otherwise acquire any shares of capital
        stock of the Company or any of its Subsidiaries or any other securities thereof
        or any rights, warrants or options to acquire any such shares or other
        securities;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
authorize for issuance, issue, deliver,
        sell, pledge or otherwise encumber any
        such shares of its capital stock or the capital stock of any of its
        Subsidiaries, any other voting securities or any securities convertible into,
        or
        any rights, warrants or options to acquire, any shares, voting securities
        or
        convertible securities or any other securities or equity equivalents (including,
        without limitation, stock appreciation rights), other than the issuance of
        Company Common Stock upon (a) the exercise of Company Stock Options awarded
        but
        unexercised on the date of this Agreement in accordance with their present
        terms, or (b) the conversion of the Company Preferred Stock;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
amend the Certificate of Incorporation,
        By-laws or other comparable charter or
        organizational documents of the Company or any Subsidiary;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
acquire or agree to acquire by merging or
        consolidating with, or by purchasing a
        substantial portion of the stock or assets of, or by any other manner, any
        business or any corporation, partnership, joint venture, association or other
        business organization or division thereof;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
sell, lease, license, mortgage or otherwise
        encumber or subject to any Lien or
        otherwise dispose of any of its properties or assets, except sales of inventory
        and receivables in the ordinary course of business consistent with past
        practice;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
(A) incur any Indebtedness or guarantee
        any Indebtedness of another Person or
        amend, terminate or seek a waiver with respect to any existing agreement
        of the
        Company evidencing Indebtedness of the Company, issue or sell any debt
        securities or warrants or other rights to acquire any debt securities of
        the
        Company or any of its Subsidiaries, guarantee any debt securities of another
        Person, enter into any "keep well" or other agreement to maintain any financial
        statement condition of another Person or enter to any arrangement having
        the
        economic effect of any of the foregoing, except for intercompany Indebtedness
        between the Company and its wholly-owned Subsidiaries or between such
        wholly-owned Subsidiaries, or (B) make any loans, advances or capital
        contributions to, or investments in, any other Person;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;
acquire or agree to acquire any assets,
        other than inventory in the ordinary
        course of business consistent with past practice, or make or agree to make
        any
        capital expenditures;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
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          </div>
        </div>
      </div>
      <div style="MARGIN: 0in 0in 12pt">(viii)&#160;&#160;&#160;&#160;&#160; pay,
        discharge or satisfy any claims (including claims of stockholders), liabilities
        or obligations (absolute, accrued, asserted or unasserted, contingent or
        otherwise), except for the payment, discharge or satisfaction of (x) liabilities
        or obligations in the ordinary course of business consistent with past practice
        or in accordance with their terms as in effect on the date hereof or (y)
        claims
        settled or compromised to the extent permitted by Section 4.01(a)(xii), or,
        except as set forth in the Company Disclosure Schedule, waive, release, grant,
        or transfer any rights of material value or modify or change in any material
        respect any existing material license, lease, contract or other document;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(ix)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
adopt a plan of complete or partial liquidation
        or resolutions providing for or
        authorizing such a liquidation or a dissolution, merger, consolidation,
        restructuring, recapitalization or reorganization;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(x)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
enter into or amend any collective bargaining
        agreement;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(xi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
change any material accounting principle
        used by it, except as required by
        generally accepted accounting principles as applied in the United States;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(xii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;
settle or compromise any litigation (whether
        or not commenced prior to the date
        of this Agreement);</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(xiii)&#160;&#160;&#160;&#160;&#160; engage in
        any transaction with, or enter into any agreement, arrangement, or understanding
        with, directly or indirectly, any of the Company's affiliates (other than
        Subsidiaries of the Company);</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(xiv)&#160;&#160;&#160;&#160;&#160;&#160;
transfer to any Person any rights to its
        Intellectual Property;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(xv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
enter into or amend any agreement pursuant
        to which any other party is granted
        exclusive marketing or other exclusive rights of any type or scope with respect
        to any of its products or technology; </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(xvi)&#160;&#160;&#160;&#160;&#160;&#160; make
        any material Tax election or settle or compromise any material federal, state,
        local or foreign Tax liability; or </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(xvii)&#160;&#160;&#160;&#160; authorize, or
        commit or agree to take, any of the foregoing actions.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Changes in Employment Arrangements</u>. &#160;Except as otherwise agreed to
        in writing by Parent, neither the Company nor any of its Subsidiaries shall
        adopt or amend (except as may be required by law) any bonus, profit sharing,
        compensation, stock option, pension, retirement, deferred compensation,
        employment or other employment benefit plan, agreement, trust, fund or other
        arrangement for the benefit or welfare of any employee, director or former
        director or employee or increase the compensation or fringe benefits of any
        director, employee or former director or employee or pay any benefit not
        required by any existing plan, arrangement or agreement.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Severance</u>. &#160;Neither the Company nor any of its
        Subsidiaries shall
        grant any new or modified severance or termination arrangement or increase
        or
        accelerate any benefits payable under its severance or termination pay policies
        in effect on the date hereof.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>WARN</u>. &#160;Neither the Company nor any of its
        Subsidiaries shall
        effectuate a "plant closing" or "mass layoff," as those terms are defined
        in
        WARN, affecting in whole or in part any site of employment, facility, operating
        unit or employee of the Company or any Subsidiary, without notifying Parent
        in
        advance and without complying with the notice requirements and other provisions
        of WARN and any similar state or local law.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Tax Free Reorganization Treatment</u>. &#160;The Company and Parent shall
        not, and shall not permit any of their respective Subsidiaries to, intentionally
        take or cause to be taken any action not otherwise consistent with the
        transactions contemplated by this Agreement which could reasonably be expected
        to prevent the Merger from qualifying as a "reorganization" within the meaning
        of Section 368(a) of the Code.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
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          </div>
        </div>
      </div>
      <div style="MARGIN: 0in 0in 12pt">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Other Actions</u>. &#160;Neither the Company nor Parent shall,
        or shall
        permit any of its Subsidiaries to, intentionally take any action that could
        reasonably be expected to result in any of its representations and warranties
        set forth in this Agreement being or becoming untrue in any material respect,
        or
        in any of the conditions to the Merger set forth in Article VI not being
        satisfied; provided that the Company and its Board of Directors shall not
        be
        required to take or be prohibited from taking any action to the extent that
        such
        action is not required to be taken or is permitted, as applicable, pursuant
        to
        Section 5.06 of this Agreement. &#160;The Company and Parent shall promptly
        advise the other party orally and in writing of (i) any representation or
        warranty becoming untrue, (ii) the failure by such party to comply with any
        covenant, condition or agreement hereunder and (iii) any event which could
        reasonably be expected to cause the conditions set forth in Article VI not
        being
        satisfied; provided, however, that no such notice shall affect the
        representations, warranties, covenants and agreement of the parties or the
        conditions to their obligations hereunder.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 0in" align="center"><a name="_Toc164153634">ARTICLE
        V.<br><br>ADDITIONAL AGREEMENTS </a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153635">5.01.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Preparation
        of
        Form S-4 and Stockholder Statement; Stockholder Meeting</u>. &#160;</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
As soon as practicable following the date
        of this Agreement, Parent and the
        Company shall prepare the Stockholder Statement and the Form S-4, and Parent
        shall file with the SEC the Form S-4, in which the Stockholder Statement
        shall
        be included.&#160; Each party shall notify the other party promptly upon the
        receipt of any comments from the SEC or its staff and of any request by the
        SEC
        or its staff or any government officials for amendments or supplements to
        the
        Form S-4 or the Stockholder Statement, or for any other filing or for additional
        information and shall supply the other party with copies of all correspondence
        between such party or any of its representatives, on the one hand, and the
        SEC,
        or its staff or any other government officials, on the other hand, with respect
        to the Form S-4, the Stockholder Statement, the Merger or any other filing.
        &#160;Parent and the Company shall each use its reasonable best efforts to have
        the Form S-4 declared effective under the Securities Act as promptly as
        practicable after such filing. &#160;The Company shall use its reasonable best
        efforts to cause the Stockholder Statement to be mailed to the Company's
        stockholders as promptly as practicable after the Form S-4 is declared effective
        under the Securities Act. &#160;Parent shall also take any action (other than
        qualifying to do business in any state in which it is not now so qualified
        or
        filing a general consent to service of process) required to be taken under
        any
        applicable state securities laws in connection with the registration and
        qualification of the Parent Common Stock to be issued in the Merger, and
        the
        Company shall furnish all information relating to the Company and its
        stockholders as may be reasonably requested in connection with any such
        action.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The Company shall, as promptly as practicable
        following the date of this
        Agreement and in consultation with Parent, duly call, give notice of, convene
        and hold a meeting of its stockholders (the "<u>Stockholder Meeting</u>") for
        the purpose of approving this Agreement and the transactions contemplated
        by
        this Agreement to the extent required by Delaware Law. &#160;The Company shall,
        through its Board of Directors, recommend to its stockholders approval of
        the
        foregoing matters, as set forth in Section 3.01(p); provided, however, that
        the
        Board of Directors of the Company may fail to make or withdraw or modify
        such
        recommendation, but only to the extent that the Board of Directors of the
        Company shall have concluded in good faith on the basis of advice from outside
        counsel that such action is required in order to satisfy its fiduciary duties
        to
        the stockholders of the Company under applicable law. &#160;Any such
        recommendation shall be included in the Stockholder Statement. &#160;The Company
        shall use its reasonable best efforts to hold the Stockholder Meeting as
        soon as
        practicable after the Form S-4 shall have been declared effective.&#160; </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153636">5.02.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Access
        to
        Information; Confidentiality</u>.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Each of the Company and Parent shall, and
        shall cause its Subsidiaries,
        officers, employees, counsel, financial advisors and other representatives
        to,
        afford to the other party and its representatives reasonable access during
        normal business hours, during the period prior to the Effective Time of the
        Merger to its properties, books, contracts, commitments, personnel and records,
        and, during such period, each of the Company and Parent shall, and shall
        cause
        its Subsidiaries, officers, employees and representatives to, furnish promptly
        to the other documents filed by it during such period pursuant to the
        requirements of federal or state securities laws and (ii) all other information
        concerning its business, properties, financial condition, operations and
        personnel as such other party may from time to time reasonably request. Each
        of
        the Company and Parent shall hold, and shall cause its respective directors,
        officers, employees, accountants, counsel, financial advisors and other
        representatives and affiliates to hold, any nonpublic information in confidence
        to the extent required by, and in accordance with, the provisions of the
        confidentiality agreement, dated February 23, 2007, between Parent and the
        Company (the "<u>Confidentiality Agreement</u>").</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
        </div>
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          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
No investigation pursuant to this Section
        5.02 shall affect any representations
        or warranties of the parties herein or the conditions to the obligations
        of the
        parties hereto.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153637">5.03.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Reasonable
        Best
        Efforts</u>. &#160;</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Upon the terms and subject to the conditions
        set forth in this Agreement, each
        of the parties agrees to use its reasonable best efforts to take, or cause
        to be
        taken, all actions, and to do, or cause to be done, and to assist and cooperate
        with the other parties in doing, all things necessary, proper or advisable
        under
        applicable laws and regulations to consummate and make effective, in the
        most
        expeditious manner practicable, the Merger and the other transactions
        contemplated by this Agreement, including (i) obtaining all consents, approvals,
        waivers, licenses, permits or authorizations as are required to be obtained
        (or,
        which if not obtained, would result in an event of default, termination or
        acceleration of any agreement or any put right under any agreement) under
        any
        applicable law or regulation or from any Governmental Entities or third parties
        in connection with the transactions contemplated by this Agreement, (ii)
        defending any lawsuits or other proceedings challenging this Agreement and
        (iii)
        accepting and delivering additional instruments necessary to consummate the
        transaction contemplated by this Agreement, (iv) in the case of the Company,
        delivering proper notice to its stockholders in accordance with Delaware
        Law of
        such stockholders' appraisal rights under Delaware Law and (v) satisfying
        the
        conditions to closing set forth under Article VI hereof.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
In furtherance of the foregoing, if required
        by the HSR Act, Parent and the
        Company agree to file with the Antitrust Division of the United States
        Department of Justice and the Federal Trade Commission a Notification and
        Report
        Form in accordance with the notification requirements of the HSR Act, and
        to use
        their reasonable best efforts to achieve the prompt termination or expiration
        of
        the waiting period or any extension thereof provided for under the HSR Act
        as a
        prerequisite to the consummation of the transactions provided for herein.
        Nothing in this paragraph shall be construed as requiring any party to this
        Agreement or its affiliates to (i) sell or otherwise dispose of any of its
        assets or voting securities other than as otherwise contemplated by this
        Agreement or (ii) take any action which either would result in a Material
        Adverse Change with respect to any such party.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153638">5.04.&#160;&#160;&#160;&#160;&#160;&#160;
        <u>Indemnification</u>.&#160; </a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
From and after the Effective Time of the
        Merger, Parent and the Surviving
        Corporation shall jointly and severally indemnify, defend and hold harmless
        each
        person who is now, or has been at any time prior to the date hereof or who
        becomes prior to the Effective Time of the Merger eligible for indemnification
        pursuant to the Certificate of Incorporation and By-laws (or comparable
        organizational documents) of the Company or any agreement of indemnification
        with the Company, in each case as the same existed on the date of this Agreement
        (the "<u>Indemnified Parties</u>") against (i) all losses, claims, fines,
        damages, costs, expenses (including, without limitation, reasonable attorneys'
        fees), liabilities or judgments, or amounts that are paid in settlement of
        or in
        connection with any claim, action, suit, proceeding or investigation (whether
        civil, criminal or administrative) based in whole or in part on or arising
        in
        whole or in part out of the fact that such person is or was a director, officer
        or employee of the Company or such Subsidiary, pertaining to any matter existing
        or occurring at or prior to the Effective Time of the Merger, whether asserted
        or claimed prior to, or at or after, the Effective Time of the Merger
        ("<u>Indemnified Liabilities</u>") and (ii) all Indemnified Liabilities based in
        whole or in part on, or arising in whole or in part out of, or pertaining
        to
        this Agreement or the transaction contemplated hereby, in each case to the
        extent the Company or its Subsidiaries would have been permitted under the
        Certificate of Incorporation and By-laws (or comparable organizational
        documents) or any agreement of indemnification with the Company to indemnify
        such person, in each case as the same existed on the date of this Agreement.
        &#160;In the event any such claim, action, suit, proceeding or investigation is
        brought against any Indemnified Parties (whether arising before or after
        the
        Effective Time of the Merger), (i) any counsel retained by the Indemnified
        Parties for any period after the Effective Time of the Merger shall be
        reasonably satisfactory to Parent; (ii) after the Effective Time of the Merger,
        Parent or the Surviving Corporation shall pay all reasonable fees and expenses
        of such counsel for the Indemnified Parties promptly as statements therefor
        are
        received; and (iii) after the Effective Time of the Merger, Parent and the
        Surviving Corporation shall cooperate in the defense of any such matter,
        provided that neither Parent nor the Surviving Corporation shall be liable
        for
        any settlement of any claim effected without its written consent, which consent
        shall not be unreasonably withheld. &#160;Any Indemnified Party wishing to claim
        indemnification under this Section 5.04, upon learning of any such claim,
        action, suit, proceeding or investigation, shall notify Parent and the Surviving
        Corporation (but the failure so to notify Parent and the Surviving Corporation
        shall not relieve either from any liability which it may have under this
        Section
        5.04 except to the extent such failure materially prejudices Parent and the
        Surviving Corporation). &#160;Parent and the Surviving Corporation shall be
        liable for the fees and expenses hereunder with respect to only one law firm
        to
        represent the Indemnified Parties as a group with respect to each such matter
        unless there is, under applicable standards of professional conduct, a conflict
        between the positions of any two or more Indemnified Parties that would preclude
        or render inadvisable joint or multiple representation of such parties.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
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        </div>
      </div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
If Parent or the Surviving Corporation or
        any of their respective successors or
        assigns (i) shall consolidate with or merge into any other corporation or
        entity
        and shall not be the continuing or surviving corporation or entity of such
        consolidation or merger or (ii)&#160;shall transfer all or substantially all of
        its properties and assets to any individual, corporation or other entity,
        then,
        and in each such case, proper provisions shall be made so that the successors
        and assigns of Parent or the Surviving Corporation shall assume all of the
        obligations set forth in this Section 5.04.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The provisions of this Section 5.04 are
        intended to be for the benefit of, and
        shall be enforceable by, each of the Indemnified Parties.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The rights of the Indemnified Parties under
        this Section 5.04 shall be in
        addition to any rights such Indemnified Parties may have under the certificates
        of incorporation or by-laws of the Company or any of its Subsidiaries, or
        under
        any applicable contracts or laws.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(e)&#160;&#160;&#160;&#160;&#160;&#160; Parent
        shall pay the reasonable costs to obtain a tail Director and Officer insurance
        policy selected by Parent and covering the officers and directors of the
        Company
        effective as of the Effective Time and for a period of six (6) years following
        the Effective Time, <u>provided</u> that Parent shall not be required to pay
        more than $150,000 for such policy.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153639">5.05.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Public
        Announcements</u>. &#160;Neither Parent and Merger Sub, on the one hand, nor the
        Company, on the other hand, shall issue any press release or public statement
        with respect to the transactions contemplated by this Agreement, including
        the
        Merger, without the other party's prior consent (such consent not to be
        unreasonably withheld or delayed), except as may be required by applicable
        law,
        court process or by obligations pursuant to any agreement with any securities
        exchange or quotation system on which securities of the disclosing party
        are
        listed or quoted. In addition to the foregoing, Parent, Merger Sub and the
        Company shall consult with each other before issuing, and provide each other
        the
        opportunity to review and comment upon, any such press release or other public
        statements with respect to such transactions. The parties agree that the
        initial
        press release or releases to be issued with respect to the transactions
        contemplated by this Agreement shall be mutually agreed upon prior to the
        issuance thereof.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153640">5.06.&#160;&#160;&#160;&#160;&#160;&#160;
<u>No
        Solicitation</u>. &#160;Neither the Company nor any of its Subsidiaries shall
        (whether directly or indirectly through advisors, agents or other
        intermediaries), nor shall the Company or any of its Subsidiaries authorize
        or
        permit any of its or their officers, directors, agents, representatives,
        advisors or Subsidiaries to, (a) solicit, initiate or take any action knowingly
        to facilitate the submission of inquiries, proposals or offers from any Person
        (other than Merger Sub or Parent) relating to (i) any acquisition or purchase
        of
        33.33% or more of the consolidated assets of the Company and its Subsidiaries
        or
        of over 33.33% of any class of equity securities of the Company or any of
        its
        Subsidiaries, (ii) any tender offer (including a self tender offer) or exchange
        offer that if consummated would result in any Person beneficially owning
        33.33%
        or more of any class of equity securities of the Company or any of its
        Subsidiaries, (iii) any merger, consolidation, business combination, sale
        of
        substantially all assets, recapitalization, liquidation, dissolution or similar
        transaction involving the Company or any of its Subsidiaries whose assets,
        individually or in the aggregate, constitute more than 33.33% of the
        consolidated assets of the Company other than the transactions contemplated
        by
        this Agreement, or (iv) any other transaction the consummation of which would
        or
        could reasonably be expected to impede, interfere with, prevent or materially
        delay the Merger (collectively, "<u>Transaction Proposals</u>"), or agree to or
        endorse any Transaction Proposal, or (b) enter into or participate in any
        discussions or negotiations regarding any of the forgoing, or furnish to
        any
        other Person any information with respect to its business, properties or
        assets
        or any of the foregoing, or otherwise cooperate in any way with, or knowingly
        assist or participate in, facilitate or encourage, any effort or attempt
        by any
        other Person (other than Merger Sub or Parent) to do or seek any of the
        foregoing; provided, however, that the foregoing shall not prohibit the Company
        (either directly or indirectly through advisors, agents or other intermediaries)
        from (i) furnishing information pursuant to an appropriate confidentiality
        letter (which letter shall not be less favorable to the Company in any material
        respect than the </a>Confidentiality Agreement, a copy of which shall be
        provided for informational purposes only to Parent) concerning the Company
        and
        its businesses, properties or assets to a third party who has made a bona
        fide
        Transaction Proposal, (ii) engaging in discussions or negotiations with such
        a
        third party who has made a bona fide Transaction Proposal, (iii) following
        receipt of a bona fide Transaction Proposal, taking and disclosing to its
        stockholders a position contemplated by Rule 14d-9 or Rule 14e-2(a) under
        the
        Exchange Act or otherwise making disclosure to its stockholders, (iv) following
        receipt of a bona fide Transaction Proposal, failing to make or withdrawing
        or
        modifying its recommendation referred to in Section 3.01(p), and/or (v) taking
        any action required to be taken by the Company pursuant to a non-appealable,
        final order by any court of competent jurisdiction, but in each case referred
        to
        in the foregoing clauses (i) through (iv) only to the extent that the Board
        of
        Directors of the Company shall have concluded in good faith on the basis
        of
        advice from outside counsel that such action is required in order to satisfy
        its
        fiduciary duties to the stockholders of the Company under applicable law;
        provided, further, that the Board of Directors of the Company shall not take
        any
        of the foregoing actions referred to in clauses (i) through (iv) until after
        prompt advance notice to Parent (which notice shall in no event be given
        less
        than two (2) business day prior to furnishing such information or entering
        into
        such discussions) with respect to such action and that such Board of Directors
        shall, to the extent consistent with its fiduciary duties, continue to advise
        Parent after taking such action and, in addition, if such Board of Directors
        receives a Transaction Proposal, then the Company shall promptly inform Parent
        of the terms and conditions of such proposal and the identity of the Person
        making it. The Company shall immediately cease and cause its advisors, agents
        and other intermediaries to cease any and all existing activities, discussions
        or negotiations with any parties conducted heretofore with respect to any
        of the
        foregoing, and shall use its reasonable best efforts to cause any such parties
        in possession of confidential information about the Company that was furnished
        by or on behalf of the Company to return or destroy all such information
        in the
        possession of any such party or in the possession of any agent or advisor
        of any
        such party. </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153641">5.07.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Letters
        of the
        Company's Accountants</u>. &#160;The Company shall use its reasonable best
        efforts to cause to be delivered to Parent a letter of Stonefield Josephson,
        the
        Company's independent public accountants, dated a date within two business
        days
        before the Form S-4 shall become effective, addressed to Parent, in form
        and
        substance reasonably satisfactory to the Company and customary in scope and
        substance for letters delivered by independent public accountants in connection
        with registration statements similar to the Form S-4.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153642">5.08.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Letters
        of
        Parent's Accountants</u>. &#160;Parent shall use its reasonable best efforts to
        cause to be delivered to the Company a letter of Whitley Penn LLP, Parent's
        independent public accountants, dated a date within two business days before
        the
        Form S-4 shall become effective, addressed to the Company, in form and substance
        reasonably satisfactory to the Company and customary in scope and substance
        for
        letters delivered by independent public accountants in connection with
        registration statements similar to the Form S-4.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153643">5.09.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Information
        Supplied</u>. &#160;The Company shall use its reasonable best efforts to provide
        to Parent no later than April 30, 2007 all information reasonably requested
        by
        Parent for Parent to determine (i) whether any payment resulting from any
        agreement, contract, plan or other arrangement (separately or in the aggregate)
        to which either the Company or any of its Subsidiaries is a party would be
        an
        "excess parachute payment" within the meaning of Section 280G of the Code
        (without regard to the exceptions set forth in Sections 280G(b)(4) and
        280G(b)(5) of the Code) as a result of any of the transactions contemplated
        by
        this Agreement, and (ii) the amount of such excess parachute payments, if
        any.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153644">5.10.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Exemption
        from
        Liability Under Section&#160;16(b).</u></a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The Board of Directors of Parent, or a committee
        thereof consisting of
        non-employee directors (as such term is defined for purposes of Rule 16b-3(d)
        under the Exchange Act), shall adopt a resolution in advance of the Effective
        Time of the Merger providing that the receipt by any Company Insiders of
        options
        to purchase Parent Common Stock, in each case pursuant to the transactions
        contemplated hereby and to the extent such securities are listed in the
        Section&#160;16 Information, is intended to be exempt pursuant to Rule 16b-3
        under the Exchange Act.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
For purposes of this Agreement, "Section&#160;16 Information" means information
        regarding the Company Insiders and the number of shares of Company Common
        Stock
        or other Company equity securities deemed to be beneficially owned by each
        such
        Company Insider and expected to be exchanged for options to purchase Parent
        Common Stock in connection with the Merger, which shall be provided by the
        Company to Parent at least ten (10) business days prior to the Closing.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
For purposes of this Agreement, "Company
        Insiders" means those officers and
        directors of the Company who immediately after the Closing become subject
        to the
        reporting requirements of Section&#160;16(a) of the Exchange Act with respect to
        equity securities of Parent.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; PAGE-BREAK-AFTER: auto"><a name="_Toc164153645">5.11.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Repayment
        of
        Certain Company Payables</u>.&#160; Section 5.11 of the Company Disclosure
        Schedule contains a complete and accurate list of the Company's accounts
        payable
        and other liabilities as of the date of this Agreement, identifying the
        applicable payee and the amount owed to such payee.&#160; Immediately prior to
        the Closing, the Company shall provide to Parent an updated Section 5.11
        of the
        Company Disclosure Schedule setting forth any additional amounts owed to
        any
        third party.&#160; Subject to Section 6.02(l), Parent shall concurrently with
        the Closing initiate wire transfers in accordance with the Flow of Funds
        Memorandum to the payees listed therein for such amounts listed
        therein.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; PAGE-BREAK-AFTER: auto"><a name="_Toc164153646">5.12.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Affiliate
        Letters</u>.&#160; The Company will use its commercially reasonable efforts to
        cause each person whom the Company believes may be deemed to be an "affiliate"
        of the Company, as that term is defined for purposes of paragraphs (c) and
        (d)
        of Rule 145 under the Securities Act, to execute and deliver to it as promptly
        as practicable an executed copy of an affiliate letter substantially in the
        form
        of <u>Exhibit&#160;B</u> attached hereto.&#160; The Company acknowledges that
        the shares of Parent Common Stock issued to such affiliates will contain
        an
        appropriate legend referring to the restrictions contained in Rule 145 and
        may
        be subject to stop order instructions with respect thereto.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; PAGE-BREAK-AFTER: auto">&#160;</div>
      <div>&#160;</div>
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      </div>
      <div style="MARGIN: 0in 0in 12pt; PAGE-BREAK-AFTER: auto"><a name="_Toc164153647">5.13.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Termination
        of
        Company Plans</u></a>.&#160; Effective no later than the day immediately
        preceding the Closing Date but contingent upon the Closing, the Company shall
        terminate any and all Company Plans intended to include a Code
        Section&#160;401(k) arrangement (collectively, the "<u>Terminated Company
        Plans</u>").&#160; The Company shall provide Parent with evidence that such
        Terminated Company Plan(s) have been terminated (effective no later than
        the day
        immediately preceding the Closing Date) in accordance with each such Terminated
        Company Plan&#8217;s respective terms.&#160; The Company also shall take such other
        actions in furtherance of terminating such Terminated Company Plan(s) as
        Parent
        may reasonably require.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 0in" align="center"><a name="_Toc164153648">ARTICLE
        VI.<br><br>CONDITIONS PRECEDENT </a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153649">6.01.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Conditions
        to
        each Party's Obligation to Effect the Merger</u>. &#160;The respective
        obligation of each party to effect the Merger is subject to the satisfaction
        or
        waiver on or prior to the Closing Date of the following conditions:</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Company Stockholder Approval</u>. &#160;The Company Stockholder Approval
        shall have been obtained.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>HSR Act</u>. &#160;The waiting period (and any extension
        thereof), if any,
        applicable to the Merger under the HSR Act shall have been terminated or
        shall
        have expired.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>No Injunctions or Restraints</u>. &#160;No temporary restraining order,
        preliminary or permanent injunction or other order issued by any court of
        competent jurisdiction or other legal restraint or prohibition preventing
        the
        consummation of the Merger shall be in effect; provided, however, that the
        parties hereto shall use their best efforts to have any such injunction,
        order,
        restraint or prohibition vacated.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Form S-4</u>. &#160;The Form S-4 shall have become effective
        under the
        Securities Act and shall not be the subject of any stop order or proceedings
        seeking a stop order, and any material "blue sky" and other state securities
        laws applicable to the registration and qualification of Parent Common Stock
        issuable or required to be reserved for issuance pursuant to this Agreement
        shall have been complied with.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Governmental Approvals</u>. &#160;Other than the filing of the Certificate
        of
        Merger, all authorizations, consents, orders or approvals of, or declarations
        or
        filings with, or expirations of waiting periods imposed by, any Governmental
        Entity in connection with the Merger and the consummation of the other
        transactions contemplated by this Agreement, the failure of which to file,
        obtain or occur is reasonably likely to have a Material Adverse Effect with
        respect to Parent or a Material Adverse Effect with respect to the Company,
        shall have been filed, been obtained or occurred on terms and conditions
        which
        would not reasonably be likely to have a Material Adverse Effect with respect
        to
        Parent or a Material Adverse Effect with respect to the Company.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Stockholder Statement</u>.&#160; No stop order suspending the use
        of the
        Stockholder Statement shall have been issued and no proceeding for that purpose
        shall have been initiated or threatened in writing by the SEC or its
        staff.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Flow of Funds Memorandum</u>.&#160; Parent and the Company shall have
        executed and delivered a mutually agreeable Flow of Funds Memorandum setting
        forth certain payments to be made by Parent concurrently with the Closing
        (the
&#8220;<u>Flow of Funds Memorandum</u>&#8221;).</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153650">6.02.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Conditions
        to
        Obligations of Parent and Merger Sub</u>. &#160;The obligations of Parent and
        Merger Sub to effect the Merger are further subject to the following
        conditions:</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Representations and Warranties</u>. &#160;The representations and warranties
        of the Company set forth in this Agreement shall be true and correct in each
        case as of the date of this Agreement and (except to the extent such
        representations and warranties speak as of an earlier date) as of the Closing
        Date as though made on and as of the Closing Date, except where the failure
        of
        such representations and warranties to be so true and correct (without giving
        effect to any limitation as to "materiality" or "Material Adverse Effect"
        set
        forth therein) would not individually or in the aggregate have a Material
        Adverse Effect. Parent shall have received a certificate dated as of the
        Closing
        Date signed on behalf of the Company by the chief executive officer and the
        chief financial officer of the Company to the effect set forth in this
        paragraph.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Performance of Obligations of the Company</u>. &#160;The Company shall have
        performed in all material respects all obligations required to be performed
        by
        it under this Agreement at or prior to the Closing Date. Parent shall have
        received a certificate signed on behalf of the Company by the chief executive
        officer and the chief financial officer of the Company to the effect set
        forth
        in this paragraph.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Consents, Etc</u>. &#160;Parent and Merger Sub shall have
        received evidence,
        in form and substance reasonably satisfactory to Parent, that such licenses,
        permits, consents, approvals, authorizations, qualifications, and orders
        of
        governmental authorities and other third parties as are necessary (in Parent's
        sole discretion) in connection with the transactions contemplated hereby
        have
        been obtained, except where the failure to obtain such licenses, permits,
        consents, approvals, authorizations, qualifications, and orders would not,
        individually or in the aggregate with all other failures, have a Material
        Adverse Effect with respect to the Company.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>No Litigation</u>. &#160;There shall not be pending by any
        Governmental
        Entity or any other Person or solely with respect to any Governmental Entity,
        threatened by any suit, action, or proceeding, (i) challenging or seeking
        to
        restrain or prohibit the consummation of the Merger or any of the other
        transactions contemplated by this Agreement or seeking to obtain from any
        party
        hereto or any of their affiliates any damages that are material in relation
        to
        the Company and its Subsidiaries taken as a whole; (ii) seeking to prohibit
        or
        limit the ownership or operation by the Company or any of its Subsidiaries
        of
        any material portion of the business or assets of the Company and its
        Subsidiaries taken as a whole or to dispose of or hold separate any material
        portion of the business or assets of the Company and its Subsidiaries taken
        as a
        whole, as a result of the Merger or any of the other transactions contemplated
        by this Agreement; (iii) seeking to impose limitations on the ability of
        Parent
        to acquire or hold, or exercise full rights of ownership of, any shares of
        the
        common stock of the Surviving Corporation, including, without limitation,
        the
        right to vote such common stock on all matters properly presented to the
        stockholders of the Surviving Corporation; or seeking to prohibit Parent
        or any
        of its Subsidiaries from effectively controlling in any material respect
        the
        business or operations of the Company and its Subsidiaries taken as a
        whole.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Termination of Company Options</u>.&#160; The Company shall have (i) entered
        into a termination agreement with each holder of a Company Option pursuant
        to
        which all outstanding Company Options held by each such holder shall be
        terminated and each such holder shall no rights thereunder to purchase shares
        of
        Company Common Stock or (ii) in accordance with Section 11.3(d) of the Company
        Stock Plan, accelerate the expiration date of all such Company Options to
        a date
        no later than April 30, 2007 and required each such holder to exercise all
        such
        Company Options held by such holder (including, if the Company so elects
        in
        accordance thereunder, to accelerate the vesting of such Company Options)
        by
        such date.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Opinion of Counsel</u>.&#160; Foley &amp; Lardner LLP, counsel to the
        Company, shall have delivered to Parent a written legal opinion addressed
        to
        Parent, dated on and as of the Closing Date, and in form reasonably satisfactory
        to Parent.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      <div style="MARGIN: 0in 0in 12pt">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Resignation of Directors and Officers</u>.&#160; The directors and officers
        of the Company, in office immediately prior to the Effective Time of the
        Merger
        shall have resigned as directors and officers of the Surviving Corporation
        effective as of the Effective Time of the Merger.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Termination of Agreements; SCO Waiver;
        Other Waivers</u>.&#160; The Company
        and each other party thereto shall have terminated each agreement set forth
        on
        Schedule&#160;6.02(h) attached hereto.&#160; SCO Partners LLC and its affiliates
        shall have executed and delivered to the Company a waiver, in form satisfactory
        to Parent, of any rights to (i) liquidated or other damages in respect of
        any
        failure by the Company to timely satisfy any such obligation or (ii) any
        fees
        resulting from the Merger or any financing, under any agreement with Parent
        or
        the Company.&#160; Each holder of a Company Warrant to be assumed by Parent
        pursuant to Section 2.03 shall have executed and delivered to Parent a waiver,
        in form satisfactory to Parent, of any rights to require Parent to register
        for
        resale under the Securities Act any such Company Warrants held by such Person
        or
        Parent Common Stock issuable upon exercise of such Company Warrants.&#160; The
        employment agreement between the Company and Agamemnon A. Epenetos, dated
        January 31, 2006 shall have been amended and restated to be in the form of
        the
        standard Parent executive employment agreement and acceptable to Parent.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Dissenters' Rights</u>.&#160; Any applicable period during which
        stockholders
        of the Company have the right to exercise appraisal, dissenters' or other
        similar rights under Section 262 of Delaware Law or other applicable law
        shall
        have expired and stockholders of the Company holding in the aggregate more
        than
        five percent (5%) of the outstanding shares of Company Common Stock or Company
        Preferred Stock shall not have exercised appraisal, dissenters' or similar
        rights under Section 262 of Delaware Law or other applicable law with respect
        to
        such shares by virtue of the Merger.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>No Material Adverse Effect</u>.&#160; Since the date of this Agreement,
        there
        shall not have occurred any Material Adverse Effect with respect to the
        Company.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>FIRPTA Certificate</u>.&#160; The Company shall have delivered
        a properly
        executed statement, dated as of the Closing Date, in a form reasonably
        acceptable to Parent, conforming to the requirements of Treasury Regulations
        Section 1.1445-2(c)(3).</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Outstanding Liabilities of the Company</u>.&#160; Parent shall have received
        evidence, satisfactory to it, that as of the Closing Date the amount of the
        Company's then outstanding accounts payable and other liabilities (including,
        without limitation, all amounts owed (i) to employees, officers and consultants
        of the Company (and its Subsidiaries) and (ii) to any Person in respect of
        any
        failure by the Company to timely satisfy any obligation to register for resale
        under the Securities Act any securities of the Company held by such Person)
        does
        not exceed $1,000,000 in the aggregate.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(m)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Exercise or Termination of Company Warrants</u>.&#160; The Company shall have
        required each holder of the Company Warrants listed in Section 6.02(m) of
        the
        Company Disclosure Schedule to exercise each such Company Warrant held by
        such
        holder prior to the Closing Date, or such holder and the Company shall have
        executed and delivered a termination agreement terminating each such Company
        Warrant and all of such holder's rights thereunder, including any right to
        purchase shares of Company Common Stock.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(n)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Opinion of Financial Advisor</u>.&#160; Parent shall have received the
        opinion of TSG Partners to the effect that the payment by it of the Merger
        Consideration is fair to Parent's stockholders from a financial point of
        view.&#160; </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(o)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>License Agreements</u>.&#160; The Company shall have obtained
        letter
        certifications from each licensor of the Company or any of its Subsidiaries
        (including, without limitation, Virium Pharmaceuticals, Inc. and Immunodex,
        Inc.), in form satisfactory to Parent, that any agreement between such Person
        and the Company (or the Company's Subsidiary, if applicable) is in full force
        and effect, that such agreement constitutes a legal, valid and binding
        obligation of, and is legally enforceable against, it and the Company (or
        the
        Company's Subsidiary, if applicable), that there exists no uncured breach
        or
        default by either it or the Company (or the Company's Subsidiary, if applicable)
        under any such agreement and that any consents required under such agreement
        have been obtained, are valid and are currently in effect.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      </div>
      <div style="MARGIN: 0in 0in 12pt">(p)&#160;&#160;&#160;&#160;&#160;&#160;
<u>Virium Pharmaceuticals, Inc.</u>&#160; All conditions to the approval by
        NIH
        of the Phenylbutyrate Co-development and Sublicense Agreement between the
        Company and Virium Pharmaceuticals, Inc. (&#8220;<u>Virium</u>&#8221;) shall have been
        met.&#160; Virium shall have executed and delivered to the Company each of the
        two amendments previously negotiated and executed by the Company, copies
        of
        which have been provided to Parent.&#160; The Company and Virium shall have
        negotiated, and each shall have executed and delivered to the other party,
        the
        letter of intent previously executed by the Company in the form previously
        provided to Parent with such changes as may be approved by Parent in its
        sole
        discretion.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153651">6.03.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Conditions
        to
        Obligations of the Company</u>. &#160;The obligation of the Company to effect
        the Merger is further subject to the following conditions:</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Representations and Warranties</u>. &#160;The representations and warranties
        of Parent and Merger Sub set forth in this Agreement shall be true and correct,
        in each case as of the date of this Agreement and (except to the extent such
        representations and warranties speak as of an earlier date) as of the Closing
        Date as though made on and as of the Closing Date, except where the failure
        of
        such representations and warranties to be so true and correct (without giving
        effect to any limitation as to "materiality" or "material adverse effect"
        set
        forth therein) would not individually or in the aggregate have a Material
        Adverse Effect with respect to Parent. &#160;The Company shall have received a
        certificate signed on behalf of Parent and Merger Sub by an authorized officer
        of Parent and Merger Sub to the effect set forth in this paragraph.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Performance of Obligations of Parent
        and Merger Sub</u>. &#160;Parent and
        Merger Sub shall have performed in all material respects all obligations
        required to be performed by each of them under this Agreement at or prior
        to the
        Closing Date. &#160;The Company shall have received a certificate signed on
        behalf of Parent and Merger Sub by an authorized officer of Parent and Merger
        Sub to the effect set forth in this paragraph.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Opinion of Counsel</u>.&#160; Bingham McCutchen LLP, counsel to
        Parent and
        Merger Sub, shall have delivered to the Company a written legal opinion
        addressed to the Company, dated on and as of the Closing Date, and in form
        reasonably satisfactory to the Company.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>No Litigation</u>.&#160; There shall not be pending by any
        Governmental
        Entity or any other Person or solely with respect to any Governmental Entity,
        threatened by any suit, action, or proceeding, (i) challenging or seeking
        to
        restrain or prohibit the consummation of the Merger or any of the other
        transactions contemplated by this Agreement or seeking to obtain from any
        party
        hereto or any of their affiliates any damages that are material in relation
        to
        Parent and its Subsidiaries taken as a whole; (ii) seeking to prohibit or
        limit
        the ownership or operation by Parent or any of its Subsidiaries of any material
        portion of the business or assets of Parent and its Subsidiaries taken as
        a
        whole or to dispose of or hold separate any material portion of the business
        or
        assets of Parent and its Subsidiaries taken as a whole, as a result of the
        Merger or any of the other transactions contemplated by this Agreement; (iii)
        seeking to impose limitations on the ability of Parent to acquire or hold,
        or
        exercise full rights of ownership of, any shares of the common stock of the
        Surviving Corporation, including, without limitation, the right to vote such
        common stock on all matters properly presented to the stockholders of the
        Surviving Corporation; or seeking to prohibit Parent or any of its Subsidiaries
        from effectively controlling in any material respect the business or operations
        of the Company and its Subsidiaries taken as a whole.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Outstanding SCO and Oracle Debt</u>.&#160; The applicable maturity date of
        all of Parent's outstanding debt (whether principal or interest) owed to
        each of
        SCO Partners LLC (and its affiliates) and Oracle Partners LP (and its
        affiliates) shall have been extended to a date on or after April 27, 2008,
        or
        such debt shall have been converted into Parent Common Stock.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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          </div>
        </div>
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      </div>
      <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 0in" align="center"><a name="_Toc164153652">ARTICLE
        VII.<br><br>TERMINATION, AMENDMENT, AND WAIVER
</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153653">7.01.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Termination</u>.
        &#160;This Agreement may be terminated and abandoned at any time prior to the
        Effective Time of the Merger, whether before or after the Company Stockholder
        Approval:</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
by mutual written consent of Parent and
        the Company;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
by either Parent or the Company if any Governmental
        Entity shall have issued an
        order, decree, or ruling or taken any other action permanently enjoining,
        restraining, or otherwise prohibiting the Merger and such order, decree,
        ruling,
        or other action shall have become final and nonappealable;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
by either Parent or the Company if the Merger
        shall not have been consummated on
        or before August 31, 2007 (other than due to the failure of the party seeking
        to
        terminate this Agreement to perform in any material respect its obligations
        under this Agreement required to be performed at or prior to the Effective
        Time
        of the Merger);</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
by either Parent or the Company if at the
        Stockholder Meeting (including any
        adjournment thereof) the Company Stockholder Approval shall not have been
        obtained;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
by Parent, if the Company or its Board of
        Directors shall have (1) withdrawn,
        modified, or amended in any respect adverse to Parent its approval or
        recommendation of this Agreement or any of the transactions contemplated
        herein;
        (2) failed as promptly as reasonably practicable after the Form S-4 is declared
        effective to mail the Stockholder Statement to its stockholders or failed
        to
        include in such statement such recommendation; (3) recommended any Transaction
        Proposal from a Person other than Parent or any of its affiliates; (4) resolved
        to do any of the foregoing; or (5) in response to the commencement of any
        tender
        offer or exchange offer for more than 10% of the outstanding shares of Company
        Common Stock or Company Preferred Stock, not recommended rejection of such
        tender offer or exchange offer at the time of filing of the requisite Schedule
        14d-9 with the SEC;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
by the Company, if, pursuant to and in compliance
        with Section 5.06 hereof, the
        Board of Directors of the Company concludes in good faith, based on advice
        from
        outside counsel, that in order to satisfy its fiduciary duties to the
        stockholders of the Company under the Delaware Law, such Board of Directors
        must
        not make or must withdraw or modify its recommendation referred to in Section
        3.01(p), and the Board of Directors does not make or withdraws or modifies
        such
        recommendation;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
by Parent, upon a breach of any representation,
        warranty, covenant or agreement
        on the part of the Company set forth in this Agreement, or if any representation
        or warranty of the Company shall have become untrue, in either case such
        that
        the conditions set forth in Section 6.02(a) or Section 6.02(b) (other than
        with
        respect to the delivery of the officers' certificates required thereunder)
        would
        not be satisfied at the time of such breach or as of the time such
        representation or warranty shall have become untrue; provided that if such
        inaccuracy in the Company's representations and warranties or breach by the
        Company is curable by the Company through the exercise of its commercially
        reasonable efforts within ten (10) business days of the time such representation
        or warranty shall have become untrue or such breach, Parent may not terminate
        this Agreement under this Section 7.01(g) during such ten-day period, provided
        Company continues to exercise such commercially reasonable efforts; or</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
by the Company, upon a breach of any representation,
        warranty, covenant or
        agreement on the part of Parent or Merger Sub set forth in this Agreement,
        or if
        any representation or warranty of Parent shall have become untrue, in either
        case such that the conditions set forth in Section 6.03(a) or Section 6.03(b)
        (other than with respect to the delivery of the officers' certificates required
        thereunder) would not be satisfied at the time of such breach or as of the
        time
        such representation or warranty shall have become untrue; provided that if
        such
        inaccuracy in Parent's representations and warranties or breach by Parent
        is
        curable by Parent through the exercise of its commercially reasonable efforts
        within ten (10) business days of the time such representation or warranty
        shall
        have become untrue or such breach, the Company may not terminate this Agreement
        under this Section 7.01(h) during such ten-day period provided Parent continues
        to exercise such commercially reasonable effort.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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          </div>
        </div>
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      </div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153654">7.02.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Effect
        of
        Termination</u>. &#160;In the event of termination of this Agreement by either
        the Company or Parent as provided in Section 7.01, this Agreement shall
        forthwith become void and have no effect, without any liability or obligation
        on
        the part of Parent, Merger Sub, or the Company, provided that (a) any such
        termination shall not relieve a party from liability for any willful breach
        of
        this Agreement and (b) the last sentence of Section 5.02(a), this Section
        7.02,
        Section 8.02, Section 8.07 and the </a>Confidentiality Agreement shall remain in
        full force and effect and survive any such termination. Nothing contained
        in
        this paragraph shall relieve any party for any breach of the covenants or
        agreements set forth in this Agreement or the Confidentiality Agreement.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153655">7.03.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Amendment</u>.
        &#160;This Agreement may be amended by the parties at any time before or after
        any required approval of matters presented in connection with the Merger
        by the
        stockholders of the Company; provided, however, that after any such approval,
        there shall be made no amendment that by law requires further approval by
        such
        stockholders without the further approval of such stockholders. This Agreement
        may not be amended except by an instrument in writing signed on behalf of
        each
        of the parties.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153656">7.04.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Extension;
        Waiver</u>. &#160;At any time prior to the Effective Time of the Merger, the
        parties may (a) extend the time for the performance of any of the obligations
        or
        other acts of the other parties; (b) waive any inaccuracies in the
        representations and warranties contained in this Agreement or in any document
        delivered pursuant to this Agreement; or (c) subject to the provisions of
        Section 7.03, waive compliance with any of the agreements or conditions
        contained in this Agreement. Any agreement on the part of a party to any
        such
        extension or waiver shall be valid only if set forth in an instrument in
        writing
        signed on behalf of such party. The failure of any party to this Agreement
        to
        assert any of its rights under this Agreement or otherwise shall not constitute
        a waiver of such rights.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153657">7.05.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Procedure
        for
        Termination, Amendment, Extension or Waiver</u>. &#160;A termination of this
        Agreement pursuant to Section 7.01, an amendment of this Agreement pursuant
        to
        Section 7.03 or an extension or waiver pursuant to Section 7.04 shall, in
        order
        to be effective, require in the case of any party hereto an action by its
        Board
        of Directors or a duly-authorized designee of its Board of Directors.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 0in" align="center"><a name="_Toc164153658">ARTICLE
        VIII.<br><br>GENERAL PROVISIONS</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153659">8.01.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Nonsurvival
        of
        Representations and Warranties</u>. &#160;None of the representations and
        warranties in this Agreement or in any instrument delivered pursuant to this
        Agreement shall survive the Effective Time of the Merger and all such
        representations and warranties shall be extinguished on consummation of the
        Merger and no party hereto nor any officer, director or employee or stockholder
        of any of them shall be under any liability whatsoever with respect to any
        such
        representation or warranty after such time. &#160;This Section 8.01 shall not
        limit any covenant or agreement of the parties which by its terms contemplates
        performance after Effective Time of the Merger.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153660">8.02.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Fees
        and
        Expenses</u>. &#160;</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Except as set forth in this Section&#160;8.02, all fees and expenses incurred in
        connection with this Agreement and the transactions contemplated hereby shall
        be
        paid by the party incurring such fees and expenses, whether or not the Merger
        is
        consummated; provided however, that the Company and Parent shall share equally
        all fees and expenses, other than accountants' and attorneys' fees, incurred
        with respect to the printing, filing and mailing of the S-4 and the Stockholder
        Statement (including any related preliminary materials) and any amendments
        or
        supplements thereto.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The Company shall pay Parent up to $750,000
        as reimbursement for expenses of
        Parent actually incurred relating to the transactions contemplated by this
        Agreement prior to termination (including, but not limited to, reasonable
        fees
        and expenses of Parent's counsel, accountants and financial advisors, but
        excluding any discretionary fees paid to such financial advisors), in the
        event
        of the termination of this Agreement:</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
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      </div>
      <div style="MARGIN: 0in 0in 12pt">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
by Parent or the Company pursuant to Section&#160;7.01(c) if the failure to
        satisfy any of the conditions set forth in Sections&#160;6.02(a)-(c), (e)-(j),
        (o) and (p) by August&#160;31, 2007 shall have resulted in the Closing not
        occurring; or</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
by Parent pursuant to Section&#160;7.01(g).</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">The expenses payable pursuant to this
        Section&#160;8.02(b) shall be paid by wire transfer of same-day funds within
        five (5) business days after demand therefor following the occurrence of
        the
        termination event giving rise to the payment obligation described in this
        Section&#160;8.02(b).</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The Company shall pay Parent a termination
        fee of $750,000 in the event of the
        termination of this Agreement (i) by Parent pursuant to Section 7.01(d) or
        (ii)
        by Parent or the Company pursuant to Sections&#160;7.01(e)-(g) (except in the
        case of a termination by Parent due to the failure of the Company to satisfy
        the
        condition set forth in Section 6.02(l)).</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">Any fee due under this Section&#160;8.02(c)
        shall be paid to Parent by wire transfer of same-day funds within two (2)
        business days after the date of termination of this Agreement.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Parent shall pay the Company up to $100,000
        as reimbursement for expenses of the
        Company actually incurred relating to the transactions contemplated by this
        Agreement prior to termination (including, but not limited to, reasonable
        fees
        and expenses of the Company's counsel, accountants and financial advisors,
        but
        excluding any discretionary fees paid to such financial advisors), in the
        event
        of the termination of this Agreement:</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
by the Company or Parent pursuant to Section&#160;7.01(c) as a result of the
        failure to satisfy the conditions set forth in Section&#160;6.03(a) or (b);
        or</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
by the Company pursuant to Section&#160;7.01(h).</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">The expenses payable pursuant to this
        Section&#160;8.02(d) shall be paid by wire transfer of same-day funds within
        five (5) business days after demand therefor following the occurrence of
        the
        termination event giving rise to the payment obligation described in this
        Section&#160;8.02(d).</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
The parties acknowledge that the agreements
        contained in this Section&#160;8.02
        are an integral part of the transactions contemplated by this Agreement,
        and
        that, without these agreements, the parties would not enter into this
        Agreement.&#160; Payment of the fees and expenses described in this
        Section&#160;8.3 shall not be in lieu of damages incurred in the event of a
        breach of this Agreement described in clause (a) of Section&#160;7.02 but is
        otherwise the sole and exclusive remedy of the parties in connection with
        any
        termination of this Agreement.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153661">8.03.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Notices</u>.
        &#160;All notices, requests, claims, demands and other communications under this
        Agreement shall be in writing and shall be deemed given if delivered personally
        or sent by overnight courier (providing proof of delivery) to the parties
        at the
        following addresses (or at such other address for a party as shall be specified
        by like notice):</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in">(a)&#160;&#160;&#160;&#160;&#160;&#160;
if to Parent or
        Merger Sub, to</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Access Pharmaceuticals, Inc.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">2600 Stemmons Freeway, Suite 176</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Dallas, Texas75207</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Attention:&#160; Stephen Seiler </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Telecopier No.:&#160; (214) 905-5101</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">&#160;</div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman;">-
            31
            -</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="MARGIN: 0in 0in 12pt 0.5in; mso-pagination: lines-together">with
        a
        copy to:</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in; mso-pagination: lines-together">Bingham
        McCutchen LLP</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in; mso-pagination: lines-together">150 Federal
        Street</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Boston, MA&#160; 02110</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Attention:&#160; John J. Concannon III,
        Esq.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Telecopier No.:&#160; (617) 951-8736</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt 0.5in">(b)&#160;&#160;&#160;&#160;&#160;&#160;
if to the Company or its Subsidiaries,
        to</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Somanta Pharmaceuticals, Inc.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">19200 Von Karman Avenue, Suite 400</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Irvine, CA92612</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Attention:&#160; Terrance Bruggeman</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Telecopier No.:&#160; (949) 706-3698</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt 0.5in; mso-pagination: lines-together">with
        a
        copy to:</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Foley &amp; Lardner LLP</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">402 W. Broadway, Suite 2100</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">San Diego, CA 92101</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt 1in">Attention:&#160; Adam Lenain, Esq.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt 1in">Telecopier No.:&#160; (619) 234-3510</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; mso-pagination: widow-orphan lines-together"><a name="_Toc164153662">8.04.&#160;&#160;&#160;&#160;&#160;&#160;
        <u>Definitions</u>.&#160; For purposes of this Agreement:</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Affiliate</u>" of any Person means another Person
        that directly or
        indirectly, through one or more intermediaries, controls, is controlled by,
        or
        is under common control with, such first Person;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Company Common Stock</u>" means the common stock, par value
        $0.001 per
        share, of the Company.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Company Preferred Stock</u>" means the Series A Convertible
        Preferred Stock,
        par value $0.001 per share, of the Company.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Company Stock Option Plan</u>" means the Company's 2005 Equity
        Incentive
        Plan.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Company Warrants</u>" means warrants to purchase shares
        of Company Common
        Stock as listed in Section 3.01(c) of the Company Disclosure Schedule.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Environmental Claim</u>" means any written or oral notice,
        claims, demand,
        action, suit, complaint, proceeding or other communication by any Person
        alleging liability or potential liability (including without limitation
        liability or potential liability for investigatory costs, cleanup costs,
        governmental response costs, natural resource damages, property damage, personal
        injury, fines or penalties) arising out of, relating to, based on or resulting
        from (A) the presence, discharge, emission, release or threatened release
        of any
        Hazardous Materials at any location, whether or not owned, leased or operated
        by
        the Company or any of its Subsidiaries or (B) circumstances forming the basis
        of
        any violation or alleged violation of any Environmental Law or Environmental
        Permit or (C) otherwise relating to obligations or liabilities under any
        Environmental Laws;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
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            32
            -</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="MARGIN: 0in 0in 12pt">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Environmental Permits</u>" means all permits, licenses, registrations
        and
        other governmental authorizations required under Environmental Laws for the
        Company and its Subsidiaries to conduct their operations and businesses on
        the
        date hereof and consistent with past practices;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Environmental Laws</u>" means all applicable federal,
        state and local
        statutes, rules, regulations, ordinances, orders, decrees and common law
        relating in any manner to contamination, pollution or protection of the
        environment, including, without limitation, the Comprehensive Environmental
        Response, Compensation and Liability Act, the Solid Waste Disposal Act, the
        Clean Air Act, the Clean Water Act, the Toxic Substances Control Act, the
        Occupational Safety and Health Act, the Emergency Planning and
        Community-Right-to-Know Act, the Safe Drinking Water Act, all as amended,
        and
        similar state laws;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Hazardous Materials</u>" means all hazardous or toxic substances,
        wastes,
        materials or chemicals, petroleum (including crude oil or any fraction thereof)
        and petroleum products, friable asbestos and asbestos-containing materials,
        pollutants, contaminants and all other materials, and substances regulated
        pursuant to, or that could reasonably be expected to provide the basis of
        liability under, any Environmental Law;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Indebtedness</u>" means, with respect to any Person,
        without duplication,
        (A) all obligations of such Person for borrowed money, (B) all obligations
        of
        such Person evidenced by bonds, debentures, notes or similar instruments,
        (C)
        all obligations of such Person under conditional sale or other title retention
        agreements relating to property purchased by such Person, (D) all obligations
        of
        such Person issued or assumed as the deferred purchase price of property
        or
        services (excluding obligations of such Person to creditors for raw materials,
        inventory, services and supplies incurred in the ordinary course of such
        Person's business), (E) all capitalized lease obligations of such Person,
        (F)
        all obligations of others secured by any Lien on property or assets owned
        or
        acquired by such Person, whether or not the obligations secured thereby have
        been assumed, (G) all obligations of such Person under interest rate or currency
        hedging transactions (valued at the termination value thereof), (H) all letters
        of credit issued for the account of such Person and (I) all guarantees and
        arrangements having the economic effect of a guarantee of such Person of
        any
        Indebtedness of any other Person;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Intellectual Property</u>" means all rights, privileges and
        priorities
        provided under federal, state, foreign and multinational law relating to
        intellectual property, including, without limitation, all (i)(a) inventions,
        discoveries, processes, formulae, designs, methods, techniques, procedures,
        concepts, developments, technology, new and useful improvements thereof and
        know-how relating thereto, whether or not patented or eligible for patent
        protection; (b) copyrights and copyrightable works, including computer
        applications, programs, software, databases and related items (except for
        off-the-shelf commercial software); (c) trademarks, service marks, trade
        names,
        brand names, corporate names, logos and trade dress, the goodwill of any
        business symbolized thereby, and all common-law rights relating thereto;
        and (d)
        trade secrets and other confidential information; and (ii) all registrations,
        applications, recordings, and licenses or other similar agreements related
        to
        the foregoing;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>knowledge of the Company</u>" means the actual knowledge of
        any officer of
        the Company or any Subsidiary of the Company.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(m)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Material Adverse Change</u>" or "<u>Material Adverse Effect</u>" means, when
        used in connection with the Company or Parent, any change, effect, event
        or
        occurrence that either individually or in the aggregate with all other such
        changes, effects, events and occurrences is materially adverse to the business,
        properties, financial condition or results of operations of the Company or
        Parent, as the case may be, and its Subsidiaries taken as a whole, provided
        that
        (i) with respect to Section 3.01(g)(i) and (ii) hereof, shall exclude any
        material adverse change in the Company's results of operations for any fiscal
        period prior to the Closing Date that is directly attributable to a disruption
        in the conduct of the Company's business arising from the transactions
        contemplated by this Agreement or the public announcement thereof and (ii)
        with
        respect to Section 3.02(f)(i) and (ii) hereof, shall exclude any material
        adverse change in Parent's results of operations for any fiscal period prior
        to
        the Closing Date that is directly attributable to a disruption in the conduct
        of
        Parent's business arising from the transactions contemplated by this Agreement
        or the public announcement thereof; and provided, further, that Material
        Adverse
        Effect and Material Adverse Change shall not be deemed to include the impact
        of
        (a) any change in laws and regulations or interpretations thereof by courts
        or
        governmental authorities generally applicable to the Company and Parent,
        (b) any
        change in generally accepted accounting principles as applied in the United
        States or regulatory accounting principles generally applicable to the Company
        and Parent, (c) any change arising or resulting from general industry, economic
        or capital market conditions or conditions in markets relevant to the Company
        or
        Parent, as applicable, that affects Parent or the Company, as applicable
        (or the
        markets in which Parent or the Company, as applicable, compete) in a manner
        not
        disproportionate to the manner in which such conditions affect comparable
        companies in the industries or markets in which Company or Parent, as
        applicable, compete, (d) any act or omission of the Company (or any of its
        Subsidiaries) taken with the prior written consent of Parent or (e) the expenses
        reasonably incurred by the Company in entering into this Agreement and
        consummating the transactions contemplated by this Agreement and the expenses
        associated with the termination of any Company Plan as and to the extent
        contemplated herein.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="MARGIN: 0in 0in 12pt">(n)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Parent Common Stock</u>" means the common stock, par value
        $0.01 per share,
        of Parent.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(o)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Parent Preferred Stock</u>" means the preferred stock, par
        value $0.01 per
        share, of Parent.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(p)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Permitted Lien</u>" means statutory Liens securing
        payments not yet due and
        such Liens as do not materially affect the use of the properties or assets
        subject thereto or affected thereby or otherwise materially impair business
        operations at such properties.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(q)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Person</u>" means an individual, corporation,
        partnership, joint venture,
        association, trust, unincorporated organization or other entity;</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(r)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>SEC</u>" means the United States Securities
        and Exchange Commission.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(s)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Subsidiary</u>" of any Person means another Person,
        an amount of the voting
        securities, other voting ownership or voting partnership interests of which
        is
        sufficient to elect at least a majority of its Board of Directors or other
        governing body (or, if there are no such voting interests, 50% or more of
        the
        equity interests of which) is owned directly or indirectly by such first
        Person.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(t)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Tax</u>" or "<u>Taxes</u>" (and with correlative
        meaning, "<u>Taxable</u>"
        and "<u>Taxing</u>") means any United States federal, state or local, or
        non-United States, income, gross receipts, franchise, estimated, alternative
        minimum, add-on minimum, sales, use, transfer, registration, value added,
        excise, natural resources, severance, stamp, withholding, occupation, premium,
        windfall profit, environmental, customs, duties, real property, personal
        property, capital stock, net worth, intangibles, social security, unemployment,
        disability, payroll, license, employee or other Tax or similar levy, of any
        kind
        whatsoever, including any interest, penalties or additions to Tax in respect
        of
        the foregoing.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">(u)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
"<u>Tax Return</u>" means any return, declaration,
        report, claim for refund,
        information return or other document (including any related or supporting
        estimates, elections, schedules, statements or information) filed or required
        to
        be filed in connection with the determination, assessment or collection of
        any
        Tax or the administration of any laws, regulations or administrative
        requirements relating to any Tax.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153663">8.05.&#160;&#160;&#160;&#160;&#160;&#160;
        <u>Interpretation</u>. &#160;When reference is made in this Agreement to an
        Article&#160;or a Section, such reference shall be to an Article&#160;or
        Section&#160;of this Agreement, unless otherwise indicated.&#160; The table of
        contents, table of defined terms and headings contained in this Agreement
        are
        for convenience of reference only and shall not affect in any way the meaning
        or
        interpretation of this Agreement.&#160; The language used in this Agreement
        shall be deemed to be the language chosen by the parties hereto to express
        their
        mutual intent, and no rule of strict construction shall be applied against
        any
        party.&#160; Whenever the context may require, any pronouns used in this
        Agreement shall include the corresponding masculine, feminine or neuter forms,
        and the singular form of nouns and pronouns shall include the plural, and
        vice
        versa.&#160; Any reference to any federal, state, local or foreign statute or
        law shall be deemed also to refer to all rules and regulations promulgated
        thereunder, unless the context requires otherwise.&#160; Whenever the words
        "include," "includes" or "including" are used in this Agreement, they shall
        be
        deemed to be followed by the words "without limitation."&#160; No summary of
        this Agreement prepared by any party shall affect the meaning or interpretation
        of this Agreement.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153664">8.06.&#160;&#160;&#160;&#160;&#160;&#160;
        <u>Counterparts</u>. &#160;This Agreement may be executed in one or more
        counterparts, all of which shall be considered one and the same agreement
        and
        shall become effective when one or more counterparts have been signed by
        each of
        the parties and delivered to the other parties. &#160;The delivery of a
        signature page of this Agreement by one party to the other via facsimile
        transmission shall constitute the execution and delivery of this Agreement
        by
        the transmitting party.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153665">8.07.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Entire
        Agreement; No Third-Party Beneficiaries</u>. &#160;This Agreement (including the
        Schedules and Exhibits attached hereto) and the other agreements and instruments
        referred to herein constitute the entire agreement, and supersede all prior
        agreements and understandings, both written and oral, among the parties with
        respect to the subject matter of this Agreement. &#160;This Agreement, other
        than Section 5.04 (with respect to which the Indemnified Parties shall be
        third-party beneficiaries), is not intended to confer upon any Person other
        than
        the parties any rights or remedies.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt">&#160;</div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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            34
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153666">8.08.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Governing
        Law;
        Consent to Jurisdiction; Waiver of Jury Trial</u>. &#160;</a>This Agreement
        shall be governed by, and construed in accordance with, the laws of the STATE
        OF
        NEW YORK, regardless of the laws that might otherwise govern under applicable
        principles of conflicts of laws.&#160; Each of the parties to this Agreement
        (a)&#160;consents to submit itself to the personal jurisdiction of any state or
        federal court sitting in THE BOROUGH OF MANHATTAN in any action or proceeding
        arising out of or relating to this Agreement or any of the transactions
        contemplated by this Agreement, (b)&#160;agrees that all claims in respect of
        such action or proceeding may be heard and determined in any such court,
        (c)
        agrees that it shall not attempt to deny or defeat such personal jurisdiction
        by
        motion or other request for leave from any such court, and (d)&#160;agrees not
        to bring any action or proceeding arising out of or relating to this Agreement
        or any of the transaction contemplated by this Agreement in any other
        court.&#160; Each of the parties hereto waives any defense of inconvenient forum
        to the maintenance of any action or proceeding so brought and waives any
        bond,
        surety or other security that might be required of any other party with respect
        thereto.&#160; Any party hereto may make service on another party by sending or
        delivering a copy of the process to the party to be served at the address
        and in
        the manner provided for the giving of notices in Section&#160;8.03.&#160;
Nothing in this Section&#160;8.08, however, shall affect the right of any party
        to serve legal process in any other manner permitted by law.&#160; EACH party
        hereto HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
        PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE)
        ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
        HEREBY OR THE ACTIONS OF any party hereto IN THE NEGOTIATION, ADMINISTRATION,
        PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt"><a name="_Toc164153667">8.09.&#160;&#160;&#160;&#160;&#160;&#160;
<u>Assignment</u>.
        &#160;Neither this Agreement nor any of the rights, interests or obligations
        under this Agreement shall be assigned, in whole or in part, by operation
        of law
        or otherwise by any of the parties without the prior written consent of the
        other parties. &#160;Subject to the preceding sentence, this Agreement shall be
        binding upon, insure to the benefit of, and be enforceable by, the parties
        and
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      <div>&#160;</div>
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        <u>Remedies</u>.&#160; Except as otherwise provided herein, any and all remedies
        herein expressly conferred upon a party shall be deemed cumulative with and
        not
        exclusive of any other remedy conferred hereby, or by law or equity upon
        such
        party, and the exercise by a party of any one remedy shall not preclude the
        exercise of any other remedy.&#160; The parties hereto 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.&#160; It is accordingly agreed that the parties hereto shall be
        entitled to an injunction or injunctions to prevent breaches of this Agreement
        and to enforce specifically the terms and provisions of this Agreement, this
        being in addition to any other remedy to which they are entitled at law or
        in
        equity.</a></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 12pt; TEXT-ALIGN: center" align="center">[REMAINDER
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      <div>&#160;</div>
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        </div>
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    <div><br clear="all"></div>
    <div style="MARGIN: 0in 0in 12pt">IN WITNESS WHEREOF, the parties have caused
      this Agreement to be signed by their respective officers thereunto duly
      authorized, all as of the date first written above.</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 12pt">ACCESS PHARMACEUTICALS, INC.</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt">By:<u>&#160;&#160;/s/ Stephen R.
      Seiler&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
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    <div><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;Title:
&#160;President and Chief
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    <div>By:<u>&#160;&#160;/s/ Stephen R.
      Seiler&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</u></div>
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    <div><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;Title:&#160;
President and Chief
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    <div style="MARGIN: 0in 0in 12pt">By:<u>&#160;&#160;&#160;/s/ Terrance J.
      Bruggeman&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</u></div>
    <div><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;Name:&#160; Terrance
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    <div><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;Title:&#160;
Executive Chairman</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 12pt">SOMANTA INCORPORATED</div>
    <div>By:<u>&#160;&#160;&#160;/s/ Terrance J.
      Bruggeman&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
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Terrance
      J.
      Bruggeman</div>
    <div><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;Title:&#160;
Executive Chairman</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 12pt">Somanta Limited</div>
    <div>By:<u>&#160;&#160; /s/ Terrance&#160;J.
      Bruggeman&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</u></div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.25in"><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;</font>Name:&#160;
Terrance
      J.
      Bruggeman</div>
    <div><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;Title:&#160;
Secretary</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt">&#160;</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt">&#160;&#160;</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt">&#160;</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt">&#160;</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center"><i>[Signature
      page to Merger Agreement]</i></div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
    <div>&#160;</div>
    <div>
      <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="1">
      <hr style="MARGIN-TOP: -13px; COLOR: #000000" noshade size="4">
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>r8k-154.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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  <head>
    <title>Unassociated Document</title>
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  <body bgcolor="#ffffff">
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
      <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right; mso-outline-level: 1; mso-hyphenate: none; tab-stops: center 3.25in"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Exhibit
        99.1</strong></font></div>
      <div>&#160;</div>
      <div><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong>This
          information is not an offer to sell securities and is not soliciting an
          offer to
          buy securities. Investors are urged to read the documents relating to the
          proposed transaction that may be filed from time to time by either party
          with
          the Securities and Exchange Commission. These documents will contain important
          information regarding the proposed transaction and may be obtained after
          they
          are filed free of charge at the Securities and Exchange Commission's website
          at
          www.sec.gov.</strong></font></div><br></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center; mso-outline-level: 1; mso-hyphenate: none; tab-stops: center 3.25in">&#160;<strong>ACCESS
        NEWS</strong></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify; mso-outline-level: 1; mso-hyphenate: none; tab-stops: center 3.25in">&#160;</div>
      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Contact:
        Company</u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#
160;&#160;&#160;&#160;</font></div>
      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Stephen
        B. Thompson</font></div>
      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Vice
        President, Chief Financial Officer</font></div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left; mso-hyphenate: none; tab-stops: -.5in right 7.0in"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(214)
        905-5100&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<strong>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#1
60;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</strong></font></div>
      <div>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Contact:
        Investor Relations</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Donald
          C.
          Weinberger/Alisa Steinberg (media)</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
          <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Wolfe
            Axelrod Weinberger Assoc. LLC</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(212)
            370-4500</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><br>Andrew
            Hellman, CEOcast, Inc. for Access Pharmaceuticals</font></div>
        </div>
      </div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left; mso-hyphenate: none; tab-stops: -.5in right 7.0in"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(212)
        732-4300</font></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify; mso-hyphenate: none; tab-stops: -.5in right 513.0pt">&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center"><u><strong><font size="+0">ACCESS
        PHARMACEUTICALS SIGNS DEFINITIVE
        MERGER AGREEMENT WITH SOMANTA PHARMACEUTICALS</font></strong></u></div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><strong>DALLAS, TX
        and
</strong><strong>Irvine</strong><strong>, CA, April 19, 2007, ACCESS
        PHARMACEUTICALS, INC. (OTC BB: ACCP)</strong> and <strong>Somanta
        Pharmaceuticals, Inc. (OTC BB: SMPM)</strong>announced today that they have
        signed a definitive merger agreement by which Access will acquire Somanta.
        The
        companies had previously announced the execution of a non-binding Letter
        of
        Intent regarding the merger.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 150%; TEXT-ALIGN: justify">Under
        the terms of the merger agreement, Access will issue 1.5 million shares of
        common stock to Somanta stockholders in exchange for all the outstanding
        capital
        stock of Somanta. The merger agreement has been approved by the boards of
        both
        companies. In addition, Access has received voting agreements from certain
        Somanta shareholders representing approximately 81% of Somanta&#8217;s outstanding
        common shares and approximately 60% of its outstanding preferred shares under
        which the parties, subject to certain limited exceptions, have granted an
        irrevocable proxy to vote their Somanta shares in favor of the merger. The
        closing of the merger is subject to the fulfillment of certain conditions
        contained in the merger agreement. The parties expect the transaction to
        be
        completed during the summer. </div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 150%; TEXT-ALIGN: justify">With
        the proposed acquisition of Somanta, Access will acquire four novel anti-cancer
        compounds in development, one of which is currently in Phase 2 clinical trials.
        Each of the drug candidates acts by a unique mechanism of action and has
        the
        potential to target a wide range of cancer types.</div>
      <div>&#160;</div>
      <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 150%; TEXT-ALIGN: justify">&#8220;We
        believe this transaction will immediately strengthen our drug pipeline,
        enhancing Access&#8217; franchise value within the oncology space,&#8221; commented Stephen
        R. Seiler, Access' President and CEO. &#8220;In addition to offering a clinical-stage
        drug candidate, Somanta&#8217;s pre-clinical pipeline is highly diversified with each
        anti-cancer compound having its own novel mode of action, which can be applied
        to a wide range of cancer types.&#8221;</div>
      <div>&#160;</div>
    </div>
    <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 150%; TEXT-ALIGN: justify"><strong>About
      Somanta</strong></div>
    <div>Somanta Pharmaceuticals is a company focused on the development of novel
      oncology compounds and anti-cancer agents. Somanta's lead clinical product
      Sodium Phenylbutyrate (PB) is currently in Phase 2 development and is being
      developed with its partner, Virium Pharmaceuticals. In National Institute of
      Health sponsored trials, PB has demonstrated the greatest activity in CNS
      cancers, several of which are "orphan" indications such as Glioblastoma
      Multiforme. Moreover, promising data has also emerged which suggests PB may
      be
      an effective therapy for certain blood cancers and other solid tumors. PB has
      been well tolerated; its safety profile has generally been established due
      to
      its many years of clinical use in pediatrics for inherited urea cycle
      disorders.</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 150%; TEXT-ALIGN: justify">Somanta's
      pre-clinical drug candidates include Angiolix, Prodrax and Alchemix. Angiolix
      is
      a humanized monoclonal antibody which appears to induce cell death selectively
      to tumor blood vessels using a different mode of action than VEGF- oriented
      therapies. Prodrax, is a novel family of prodrugs that enables compounds to
      remain inert until they reach the hypoxic region of tumors where they become
      toxic, thus targeting tumor cells which are typically difficult to kill.
      Alchemix is a pan-target inhibitor that is effective in tumor cells resistant
      to
      conventional chemotherapy by targeting and irreversibly binding to DNA. Somanta
      believes Prodrax and Alchemix have the ability to overcome many different
      pathways of drug resistance, and will be studied in a broad range of cancers
      including lung, colon, ovarian and renal. Proof-of-principle pre- clinical
      studies have been completed in both of these compounds, and Phase 1 dose
      escalation trials are being planned. Somanta has prepared clinical development
      plans for all preclinical projects. For additional information on Somanta
      Pharmaceuticals, please visit http://www.somanta.com.</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 150%; TEXT-ALIGN: justify"><strong>About
      Access </strong></div>
    <div>Access Pharmaceuticals, Inc. is an emerging biopharmaceutical company that
      develops and commercializes propriety products for the treatment and supportive
      care of cancer patients. Access' products include ProLindac&#8482;, currently in Phase
      II clinical testing of patients with ovarian cancer and MuGard&#8482; for the
      management of patients with mucositis. The Company also has other advanced
      drug
      delivery technologies including Cobalamin&#8482;-mediated targeted delivery and oral
      drug delivery. For additional information on Access Pharmaceuticals, please
      visit our website at <font color="#800080">http://www.accesspharma.com</font>.
</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 150%; TEXT-ALIGN: justify"><i>This
      press release contains certain statements that are forward-looking within the
      meaning of Section 27a of the Securities Act of 1933, as amended, and that
      involve risks and uncertainties, including statements relating to the value
      of
      our products in the market, our ability to achieve clinical and commercial
      success and our ability to successfully develop marketed products. These
      statements are subject to numerous risks, including but not limited to the
      risks
      detailed in our Annual Report on Form 10-KSB for the year ended December 31,
      2006 and other reports filed by us and Somanta with the Securities and Exchange
      Commission.</i></div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify">&#160;</div>
    <div>&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center"><br clear="all">###</div>
    <div>&#160;</div>
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