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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000318306-08-000064.txt : 20081229
<SEC-HEADER>0000318306-08-000064.hdr.sgml : 20081225
<ACCEPTANCE-DATETIME>20081027163701
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000318306-08-000064
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20081027

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:		CORRESP

	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>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<html>
  <head>
    <title>Unassociated Document</title>
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    <div>&#160;</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">John J.
Concannon III</font></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">Direct
Phone:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;617.951.8874</font></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">Direct
Fax:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;617.951.8736</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">jack.concannon@bingham.com</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Via
Federal Express</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></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">October
27, 2008</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></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">Office of
the Chief Counsel</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">Division
of Corporation Finance</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">100 F
Street, NE</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">Washington,
DC 20549</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">Attn: Ms.
Rose Zukin</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 72pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Re:</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Access
      Pharmaceuticals, Inc.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
No. 1 to Form S-1/A</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
10/8/08</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 117pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">File No.
333-149633</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></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">Dear Ms.
Zukin:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>On behalf of our client, Access
Pharmaceuticals, Inc., a Delaware corporation (the "<font style="DISPLAY: inline; TEXT-DECORATION: underline">Company</font>"), set forth
below is the Company's response to the requests of the staff (the &#8220;Staff&#8221;) of
the Securities and Exchange Commission (the &#8220;Commission&#8221;) for additional
information regarding the Company&#8217;s Amendment No. 1 to Form S-1/A (&#8220;Amendment
No. 1&#8221;).&#160;&#160;For ease of reference, the requests included in your letter
dated October 21, 2008 are printed below in bold print, followed by the
Company's responses.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We
note in your response to Comment 9 and reissue the comment in
part.&#160;&#160;We note that you are registering 7,577,868 shares of Series A
Preferred Stock and an additional 1,582,360 shares of common stock that may be
issued as dividends on the Series A Preferred Stock.&#160;&#160;It appears that
you continue to register more shares than we will allow as a primary
offering.&#160;&#160;Please reduce the size of your offering.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Company respectfully submits that
the size of the offering is less that one-third of the outstanding public float
as requested by the Staff.&#160;&#160;We note that on October 6, 2008, the
latest practicable date prior to the filing of Amendment No. 1 on October 8,
2008, the outstanding public float was 5,227,281 shares of common
stock.&#160;&#160;This outstanding public float on October 6, 2008, is
calculated as follows: 6,485,791 shares of common stock outstanding, less 45,092
shares held by directors and officers, less 1,213,418 shares held by 10%
beneficial holders.<font style="FONT-SIZE: 70%; VERTICAL-ALIGN: super"><a href="#ref.ID0EQFAC">1</a></font>&#160;&#160;One third of the public
float on October 6, 2008, was 1,742,427 shares of common stock.&#160;&#160;The
Company currently seeks to register in its Amendment No. 1, 1,582,360 shares of
common stock and respectfully submits that this amount is less than one-third of
the outstanding public float of 1,742,427 shares of common stock.<font style="FONT-SIZE: 70%; VERTICAL-ALIGN: super"><a href="#ref.ID0EFGAC">2</a></font>&#160;&#160;Therefore, the Company
believes that it is not required to reduce the size of its
offering.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We
note your response to Comment 3.&#160;&#160;Please note Comment 2 from our
letter dated March 19, 2008 requested disclosure of all payments to selling
stockholders, affiliates of selling stockholders and any person whom a selling
shareholder has a contractual relationship regarding the
transaction.&#160;&#160;These payments should include interest payments,
liquidated damage payments and other payments made to placement
agents.&#160;&#160;Please provide this information in tabular
format.&#160;&#160;Additionally, update the liquidated damages and disclose the
maximum potential liquidated damages.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Company respectfully submits that
Amendment No. 1 discloses the information requested by prior Comment
2.&#160;&#160;Please note that Table 2 (&#8220;Table 2&#8221;) on page 28 of Amendment No.
1, under the heading &#8220;Selling Stockholders&#8221; includes all placement agent fees
(in both cash and warrants) paid to selling shareholders.&#160;&#160;The Company
also notes under the sub-section &#8220;SCO Capital Partners LLC and affiliates,&#8221; on
page 25 of Amendment No. 1, that SCO Financial Group in entitled to a monthly
consulting services fee of $12,500.&#160;&#160;In addition, as of the date of
filing the Amendment No. 1, and as of the date hereof, the Company has not paid
any liquidated damages or dividends to any of the selling
shareholders.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#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-STYLE: italic; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Liquidated
Damages</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>As described in the notes preceding and
proceeding Table 2, on pages 27 and 28 of Amendment No. 1, the Company may be
required to pay liquidated damages to the selling stockholders if an effective
registration statement is not declared effective pursuant to the terms of the
Amended and Restated Investor Rights Agreement, dated February 4, 2008, by and
among the Company and the selling shareholders.&#160;&#160;Also as described in
the notes preceding Table 2, the Company may not be required to pay liquidated
damages to selling stockholders if such selling stockholders are able to sell
such shares without restriction pursuant to Rule 144 of the Securities Act of
1933.&#160;&#160;The Company also describes both in the notes preceding and
proceeding Table 2 the rate at which liquidated damages may accrue and that the
maximum amount of liquidated damages that the Company may be required to pay is
10% of the Series A Preferred Stock subscription amount.&#160;&#160;As noted in
Table 1 (&#8220;Table 1&#8221;), on page 36 of Amendment No. 1 under the heading &#8220;Selling
Stockholders&#8221;, the subscription amount (listed as the &#8220;consideration paid&#8221;) is
$33,733,928.&#160;&#160;As a result, the maximum liquidated damages that could
potentially be paid to selling stockholders is $3,373,392. The Company believes
it has clearly indicated in multiple locations in Amendment No. 1 the terms of
the liquidated damages including the maximum amount of liquidated
damages.&#160;&#160;Although the Company has not specifically stated that 10% of
the subscription amount is &#8220;$3,373,392&#8221;, the Company believes that the maximum
potential liquidated damages is clearly presented.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Furthermore, the Company has disclosed
in the notes proceeding Table 2 the amount of accrued liquidated damages with
respect to certain affiliates of the Company that may not be eligible to sell
their shares pursuant to Rule 144 of the Exchange Act.&#160;&#160;As a result,
the Company continues to accrue liquidated damages for these entities and
affiliates of these entities.&#160;&#160;Because the Company continues to
accrue, but has not paid, liquidated damages for these entities it has disclosed
such accrued liquidated damages in the notes to Table 2.&#160;&#160;The Company
believes that its disclosures in Table 2 as well as the notes preceding and
proceeding Table 2 are clear, full and complete and that no further disclosure
should be needed.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 27.5pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Dividends</font></font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>As described in the notes immediately
preceding and proceeding Table 2, the Series A Preferred Stock accrues dividends
at a rate of 6% per year.&#160;&#160;As also noted in the description of
dividends payable in the notes preceding Table 1, on page 27 of Amendment No. 1,
under certain circumstances, these dividends may be paid in shares of the
Company&#8217;s common stock.&#160;&#160;As of the date of filing its Amendment No. 1,
and as of the date hereof, the Company has not paid any dividends to any of the
selling shareholders.&#160;&#160;Also, as described in the notes preceding Table
1, the Company anticipates issuing shares of common stock in lieu of cash
dividends over the near term.&#160;&#160;Since the Company has not paid any
dividends and does not anticipate paying any cash dividends in the near term,
the Company has excluded dividends from Table 2 and instead has disclosed the
rate at which dividends accrue and its expectation to satisfy such dividends
with shares of its common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>In addition to these disclosures, the
Company has also provided the specific accrued dividend amounts for entities
that received placement agent fees, as well as the accrued dividend amounts for
affiliates of entities that received placement agent fees.&#160;&#160;The
Company believes that its disclosures in Table 2 as well as the notes preceding
and proceeding Table 1 and Table 2 are clear, full and complete and that no
further disclosure should be needed.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We
note the line item labeled &#8220;Placement Agent Fees&#8221; indicates that it comes from
Table 2.&#160;&#160;However, we were not able to reconcile this number with the
information presented in Table 2.&#160;&#160;Please provide a reconciliation or
revise the information to reflect the amount presented in Table 2.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Company respectfully submits that
the Table 1.A on page 27 of Amendment No. 1 relates to the issuance of Series A
Preferred Stock issued on November 11, 2007, and February 4, 2008.&#160;&#160;As
a result, the placement agent fees of $913,550 are the placement agent fees paid
to selling shareholders with respect to the issuance of Series A Preferred Stock
on those dates.&#160;&#160;Table 2 sets forth all placement agent fees
previously paid to the selling shareholders.&#160;&#160;As stated in Table 2,
the placement agent fees on November 11, 2007, and February 2, 2008, were
$240,000 (paid to SCO Capital Partners on November 11, 2007), $482,800 (paid to
Rodman &amp; Renshaw LLC on November 11, 2007) and $190,750 (paid to SCO Capital
Partners on February 4, 2008).&#160;&#160;The sum of these placement agent fees,
with respect to the issuance of Series A Preferred Stock is
$913,550.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Company believes that it has
adequately disclosed the total placement agent fees paid to selling shareholders
in order to arrive at &#8220;Net Proceeds to Issuer&#8221; as disclosed in Table
1.A.&#160;&#160;In addition, the Company believes that it has provided clear,
full and complete disclosure as to how this amount was calculated through the
disclosure of individual placement agent fees in Table 2.&#160;&#160;As a
result, the Company does not believe that any further amendment to its Amendment
No. 1 is required at this time. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</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"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>If you have any questions regarding
this matter or require any additional information, please contact me at (617)
951-8874.&#160;&#160;If the Staff disagrees with any of the conclusions set
forth above, please contact the undersigned prior to the issuance of a written
response.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 144pt"></font>Very truly yours,</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></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"><font id="TAB1" style="MARGIN-LEFT: 180pt"></font>/s/ John J. Concannon</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 175.5pt"></font>John J. Concannon III,
Esq.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 175.5pt"></font>Bingham McCutchen, LLP</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
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Jeffrey B. Davis</font></div>
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div><br>
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</a>
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Company notes that the amount of shares held by 10% and 5% beneficial holders is
the same.</font></div>
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    <div><a name="ref.ID0EFGAC">&#160;
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Company notes that per our prior conversation on September 5, 2008, with Ms.
Hayes of the Securities and Exchange Commission, that the 7,577,868 shares of
common stock underlying the Series A Preferred Stock are excluded from the
&#8220;one-third the public float&#8221; limitation.</font></div>
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