Health Discovery Corporation (OTCBB:
) announces that Richard Scott Tobin, its President, General Counsel, Principal Financial Officer, Principal Accounting Officer and Director, has stepped down from all positions effective October 10, 2010.
On April 15, 2009, Mr. Tobin began his employment at Health Discovery Corporation.
On July 13, 2010, Mr. Tobin was informed by the two independent members of the Board of Directors that the Company agreed not to renew his employment agreement when it expired on October 15, 2010,
as previously announced by the Company
On August 9, 2010, Mr. Tobin stepped down from his day-to-day management responsibilities, while remaining on the Board of Directors.
On October 2, 2010, Mr. Tobin executed a release agreement, which was subject to a seven-day revocation period pursuant to certain age discrimination laws. Mr. Tobin did not revoke the agreement during this period, which expired on Saturday, October 9, 2010, as previously announced by the Company.
As part of his employment agreement, Mr. Tobin’s 4.5 million options have vested. The Company has agreed (i) to pay Mr. Tobin $271,931.07, (ii) to extend his options until January 15, 2012, and (iii) to allow Mr. Tobin to pay with a portion of his HDC shares up to $170,000 related to any option conversion tax liability. The Company expects to incur an expense of $127,164 in the fourth quarter relating to the release agreement.
Mr. Tobin has further agreed that for a period of three years, he will not (i) solicit proxies or consents to vote any securities of HDC, (ii) engage in short selling the common stock of HDC, (iii) act alone or in concert with others to seek to control or influence the management, board of directors or policies of HDC, and (iv) cooperate with any party seeking to do any of the foregoing.