SAVANNAH, Ga.--(BUSINESS WIRE)--Health Discovery Corporation (OTCBB: HDVY) 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.
Since August 9, 2010, Thomas L. Gallagher, Executive Vice President at Health Discovery Corporation, has assumed and ably performed Mr. Tobin's management responsibilities, in addition to his current duties. It is expected that Mr. Gallagher will be appointed President, General Counsel, Principal Financial Officer and Principal Accounting Officer.
About Health Discovery Corporation
Health Discovery Corporation is a molecular diagnostics company that uses advanced mathematical techniques to analyze large amounts of data to uncover patterns that might otherwise be undetectable. It operates primarily in the emerging field of personalized medicine where such tools are critical to scientific discovery. Its primary business consists of licensing its intellectual property and developing its own product line of biomarker-based diagnostic tests that include human genes and genetic variations, as well as gene, protein, and metabolic expression differences and image analysis in digital pathology and radiology. For more information, see www.healthdiscoverycorp.com.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks and uncertainties, including, without limitation, statements regarding future performance, opportunities and investments, and anticipated results in general. From time to time the Company may make other forward-looking statements relating to other matters, including without limitation, commercialization plans and strategic partnerships. Actual results may differ materially due to a variety of factors, including, among other things, the acceptance of our approach to applying mathematics computer science and physics into the disciplines of biology, organic chemistry and medicine and our products and technologies associated with those approaches, the ability to develop or commercialize new drugs, therapies or other products based on our approaches, and other factors set forth from time to time in the Company's Securities and Exchange Commission filings.
All forward-looking statements and cautionary statements included in this document are made as of the date hereof based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement or cautionary statement.
Contacts
Health Discovery Corporation
Tom Gallagher, 203-918-3115
investor@healthdiscoverycorp.com