EXHIBIT 10.1





 


Health Discovery Corporation


4243 Dunwoody Club Drive


Suite 202


Atlanta, Georgia 30340


 


August 6, 2013


 


 


Dear Fellow Owners of Health Discovery
Corporation,


 


On behalf of the majority of Health Discovery
Corporation’s Board of Directors (the “Board”), I want update you on the recent changes at Health Discovery Corporation
(“HDC” or “Company”) so you might have a better understanding of the direction the Company is taking.


 


For Health Discovery Corporation, the past
month has been a time of significant personnel changes – which will be better for our shareholders.


 


We believe the Company was forced to make
several difficult decisions over the last week that should substantially increase our opportunity to survive, succeed, and ultimately
thrive. The changes in upper management were driven out of the requirements to: focus on low hanging fruit, reduce our burn rate
and conserve shares.


 


As a result of the staff changes, I have
been appointed Interim Chief Executive Officer. I accepted the role with the following requirements:


 


		1.	I will take no cash salary or stock option compensation.



		2.	The 1,500,000 director options awarded to me on July 25, 2013 to purchase HDC stock at market price
of $0.027 have been reassigned to the company so that they can be used for better purposes such as raising capital and/or compensating
our workers.



		3.	I will not seek reimbursement for my time or expenses as they relate to me carrying out the duties
of Interim Chief Executive Officer.



 


These requirements are absolute and do
not carry any consideration or contingency for recouping at a later date.


 


I would like to tell you about the new
members of the Board and the values we will live by:


 



		1.	Communication. We will
                                                                communicate openly and honestly at all times, to the best of our
                                                                ability. While we are bound by certain confidentiality agreements
                                                                and regulatory disclosure rules, we will be responsive and communicative.
                                                                As an example, you may contact the board at the new email address:board@healthdiscoverycorp.com.
                                                                You may also reach us at the office (678) 336-5300. We will be
                                                                responsive as quickly as possible. If you do not find the response
                                                                timely enough, please call the office and ask for me. We may not
                                                                be able to comment on every question you may have due to legal
                                                                requirements, but you will hear from us.



 



    	



    	 



    




 


		2.	Financial Responsibility. We will treat every penny of the Company, as if it is the last
and will promote the philosophy of: “spend it and care about it like it’s your own” to all of our employees and
consultants. If we do not measure every expense with the utmost seriousness, there is no way for this company to survive. Because
Rick Winger has an extensive career in the financial arena, he has been selected to head up the Company’s Audit Committee.
Installing an Audit Committee was one of this Board’s first actions.



 


		3.	Commitment. This Board is comprised of successful business, financial, and legal experts.
They are working for $1 per year. They have options, which will only have value if our stock price increases. Their interest is
solely aligned with those of the shareholders, or as we prefer: Owners. Bill Quirk has accepted a board position with HDC and as
the largest shareholder of our common stock; we welcome his financial expertise and business acumen.



 


The Board along with its employees and
advisors will be focused on a one-year goal of becoming more financially healthy and potentially profitable. The Company does not
have the luxury of time or long, drawn out business propositions. We must, and will, act now. The objectives at hand to stabilize
the Company are:


 


		1.	Continue our partnership with NeoGenomics. We believe that the development of tests and products
are progressing nicely and last week NeoGenomics announced at their conference call expectations for commercialization of tests
and products using our technology. We will support this relationship with every opportunity we have to do so. NeoGenomics is the
right partner for HDC to be successful in medical arena and we will support NeoGenomics with all our efforts.



 


		2.	Develop new partnerships and relationships
                                                                in the non-medical arena. We are excited about the work that we
                                                                are doing with SVM Capital. SVM Capital has recently signed a
                                                                licensing agreement with Lucena Research to expand the SVM Technology
                                                                further into the financial markets and the Lucena Team is exactly
                                                                what SVM Capital needs. You can read about this new partner at
                                                                https://lucenaresearch.com.
                                                                Like NeoGenomics, Lucena is the right partner, at the right time.
                                                                We are aggressively looking for similar models for partnering
                                                                with companies that can help us – now. These are not long,
                                                                complicated, drawn out processes that take too long to develop,
                                                                if ever. They will be now and immediate impacts for HDC.



 


		3.	Protecting our Intellectual Property. We will identify the best way to stop letting companies use
our technology for free. We realize the traditional methods are expensive and the Company does not have the luxury of excess funds
to pursue patent infringers these ways. This team has experience and relationships that will be used to stop the bleeding of our
technology to those who currently do not compensate us for their use of our patents. One of our new directors, Henry Kaplan, is
an experienced patent attorney and has volunteered to be the Chair of the Patent Monetization Committee. He will work with Eleanor
Musick and third party law firms to license companies in addition to those that have already paid licensing fees.



 






    	



    	 



    




 


As we hope you can see, the Company will
be extremely focused on immediate success – not “maybe, kinda, one day” ideas. Our focus is on bringing HDC out
of the difficult situation it is in. We cannot guarantee results, but we can guarantee reduced cash burn, increased focus and sense
of urgency.


 


I hope you find this update helpful as
this communication and effort is long overdue. The Board, employees, and advisors owe you the best they have – and they are
committed to delivering to you – the Owners of Health Discovery Corporation.


 


We look forward to hearing from you.


 


With kind regard on behalf of Health Discovery Corporation,


 


 


 


/s/ Kevin Kowbel


 


Kevin Kowbel


Interim Chief Executive Officer and Chairman


 


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 in relation 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 and commercialize new drugs, therapies, medical devices, 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.