Document:

ex10-3.htm

    Exhibit 10.3

    VEMICS,
INC.

     

    2007 EQUITY COMPENSATION
PLAN

     

    The
purpose of the Vemics, Inc. 2007 Equity Compensation Plan (the “Plan”) is to
provide (i) designated employees of Vemics, Inc., a Nevada corporation (the
“Company”), and its parents and subsidiaries, (ii) certain consultants and
advisors who perform services for the Company or its parents or subsidiaries,
and (iii) non-employee members of the Board of Directors of the Company (the
“Board”) with the opportunity to receive grants of incentive stock options,
nonqualified stock options and stock awards.  The Company believes
that the Plan will reward participants for past services to the Company and
encourage participants to contribute to the growth of the Company, thereby
benefitting the Company’s shareholders, and will align the economic interests of
the participants with those of the shareholders.

     

    1. Administration

     

    (a) Committee.  The
Plan shall be administered and interpreted by the Board or by a committee
consisting of members of the Board, which shall be appointed by the
Board.  After an initial public offering of the Company’s stock as
described in Section 18(b) (a “Public Offering”), the Plan shall be administered
by a committee of Board members, which may consist of “outside directors” as
defined under section 162(m) of the Internal Revenue Code of 1986, as amended
(the “Code”), and related Treasury regulations, and “non-employee directors” as
defined under Rule 16b-3 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”).  However, the Board may ratify or approve any
grants as it deems appropriate, and the Board shall approve and administer all
grants made to non-employee directors.  The committee may delegate
authority to one or more subcommittees as it deems appropriate.  To
the extent that a committee or subcommittee administers the Plan, references in
the Plan to the “Board” shall be deemed to refer to the committee or
subcommittee.

     

    (b) Board
Authority.  The Board shall have the sole authority to (i)
determine the individuals to whom grants shall be made under the Plan, (ii)
determine the type, size and terms of the grants to be made to each such
individual, (iii) determine the time when the grants will be made and the
duration of any applicable exercise or restriction period, including the
criteria for exercisability and the acceleration of exercisability, (iv) amend
the terms of any previously issued grant, and (v) deal with any other matters
arising under the Plan.

     

    (c) Board
Determinations.  The Board shall have full power and authority
to administer and interpret the Plan, to make factual determinations and to
adopt or amend such rules, regulations, agreements and instruments for
implementing the Plan and for the conduct of its business as it deems necessary
or advisable, in its sole discretion.  The Board’s interpretations of
the Plan and all determinations made by the Board pursuant to the powers vested
in it hereunder shall be conclusive and binding on all persons having any
interest in the Plan or in any awards granted hereunder.  All powers
of the Board shall be executed in its sole discretion, in the best interest of
the Company, not as a fiduciary, and in keeping with the objectives of the Plan
and need not be uniform as to similarly situated individuals.

     

    2. Grants

     

    (a) Awards
under the Plan may consist of grants of incentive stock options as described in
Section 5 (“Incentive Stock Options”), nonqualified stock options as described
in Section 5 (“Nonqualified Stock Options”) (Incentive Stock Options and
Nonqualified Stock Options are collectively referred to as “Options”) and stock
awards as described in Section 6 (“Stock Awards”) (hereinafter collectively
referred to as “Grants”).  All Grants shall be subject to the terms
and conditions set forth herein and to such other terms and conditions
consistent with this Plan as the Board deems appropriate and as are specified in
writing by the Board to the individual in a grant instrument or an amendment to
the grant instrument (the “Grant Instrument”).  All Grants shall be
made conditional upon the Grantee’s acknowledgement, in writing or by acceptance
of the Grant, that all decisions and determination of the Board shall be final
and binding on the Grantee, his or her beneficiaries and any other person having
or claiming an interest under such Grant.  The Board shall approve the
form and provisions of each Grant Instrument.  Grants under a
particular Section of the Plan need not be uniform as among the
grantees.

     

    3. Shares Subject to the
Plan

     

    (a) Shares
Authorized.  Subject to adjustment as described below, the
aggregate number of shares of common stock of the Company (“Company Stock”) that
may be issued under the Plan is _________ shares.  The shares may be
authorized but unissued shares of Company Stock or reacquired shares of Company
Stock, including shares purchased by the Company on the open market for purposes
of the Plan.  If and to the extent Options granted under the Plan
terminate, expire, or are canceled, forfeited, exchanged or surrendered without
having been exercised or if any Stock Awards (including restricted Stock Awards
received upon the exercise of Options) are forfeited, the shares subject to such
Grants shall again be available for purposes of the Plan.

     

    (b) Adjustments.  If
there is any change in the number or kind of shares of Company Stock outstanding
(i) by reason of a stock dividend, spinoff, recapitalization, stock split, or
combination or exchange of shares, (ii) by reason of a merger, reorganization or
consolidation, (iii) by reason of a reclassification or change in par value, or
(iv) by reason of any other extraordinary or unusual event affecting the
outstanding Company Stock as a class without the Company’s receipt of
consideration, or if the value of outstanding shares of Company Stock is
substantially reduced as a result of a spinoff or the Company’s payment of an
extraordinary dividend or distribution, the maximum number of shares of Company
Stock available for Grants, the maximum number of shares of Company Stock that
any individual participating in the Plan may be granted in any year, the number
of shares covered by outstanding Grants, the kind of shares issued under the
Plan, and the price per share of such Grants may be appropriately adjusted by
the Board to reflect any increase or decrease in the number of, or change in the
kind or value of, issued shares of Company Stock to preclude, to the extent
practicable, the enlargement or dilution of rights and benefits under such
Grants; provided, however, that any fractional shares resulting from such
adjustment shall be eliminated.  The Board shall be required to make
the forgoing adjustments in the event of a stock split, reverse stock split,
stock dividend, recapitalization, combination or reclassification of the
Company’s Stock.  Any adjustments determined by the Board shall be
final, binding and conclusive.

     

    4. Eligibility for
Participation

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a) Eligible
Persons.  All employees of the Company and its parents or
subsidiaries (“Employees”), including Employees who are officers or members of
the Board, and members of the Board who are not Employees (“Non-Employee
Directors”) shall be eligible to participate in the Plan.  Consultants
and advisors who perform services for the Company or any of its parents or
subsidiaries (“Key Advisors”) shall be eligible to participate in the Plan if
the Key Advisors render bona fide services to the Company or its parents or
subsidiaries, the services are not in connection with the offer and sale of
securities in a capital-raising transaction, and the Key Advisors do not
directly or indirectly promote or maintain a market for the Company’s
securities.

     

    (b) Selection of
Grantees.  The Board shall select the Employees, Non-Employee
Directors, and Key Advisors to receive Grants and shall determine the number of
shares of Company Stock subject to a particular Grant in such manner as the
Board determines.  Employees, Key Advisors, and Non-Employee Directors
who receive Grants under this Plan shall hereinafter be referred to as
“Grantees”.

     

    5. Granting of
Options

     

    (a) Number of
Shares.  The Board shall determine the number of shares of
Company Stock that will be subject to each Grant of Options to a
Grantee.

     

    (b) Type of Option and
Price.

     

    (i) The
Board may grant Incentive Stock Options that are intended to qualify as
“incentive stock options” within the meaning of section 422 of the Code or
Nonqualified Stock Options that are not intended so to qualify or any
combination of Incentive Stock Options and Nonqualified Stock Options, all in
accordance with the terms and conditions set forth herein.  Incentive
Stock Options may be granted only to employees of the Company or its parents or
subsidiaries, as defined in Section 424 of the Code.  Nonqualified
Stock Options may be granted to Employees, Non-Employee Directors, and Key
Advisors.

     

    (ii) The
purchase price (the “Exercise Price”) of Company Stock subject to an Option
shall be determined by the Board and may be equal to, greater than, or less than
the Fair Market Value (as defined below) of a share of Company Stock on the date
the Option is granted; provided, however, that

     

    (A) The
Exercise Price of an Incentive Stock Option shall be equal to, or greater than,
the Fair Market Value of a share of Company Stock on the date of
grant;

     

    (B) An
Incentive Stock Option may not be granted to an Employee who, at the time of
grant, owns stock possessing more than ten percent of the total combined voting
power of all classes of stock of the Company or any parent or subsidiary of the
Company, unless the Exercise Price per share is not less than 110% of the Fair
Market Value of Company Stock on the date of grant;

     

    (C) Unless
otherwise specifically approved by the Board, the Exercise Price of a
Nonqualified Stock Option shall not be less than the Fair Market Value of a
share of Company Stock; and

     

    (D)  If
the Board determines to set the Exercise Price of any Nonqualified Stock Option
at less than the Fair Market Value of a share of Company Stock, the Board shall
also impose terms and conditions on the exercise and holding of such Option as
it determines to be appropriate to prevent the grantee of such Option from being
subject to income tax under Section 409A(a)(1)(B) of the Code.

     

    (iii) If
the Company Stock is publicly traded, then the Fair Market Value per share shall
be determined as follows: (A) if the principal trading market for the Company
Stock is a national securities exchange, the Nasdaq National Market, or the
Over-the-Counter Bulleting Board, the last reported sale price thereof on the
relevant date or (if there were no trades on that date) the latest preceding
date upon which a sale was reported, or (B) if the Company Stock is not
principally traded on such exchange or market, the mean between the last
reported “bid” and “asked” prices of Company Stock on the relevant date, as
reported on Nasdaq or, if not so reported, as reported by the Pink Sheets, Inc.
or as reported in a customary financial reporting service, as applicable and
only if the Board determines that such prices should be utilized for this
purpose in its sole discretion.  If the Company Stock is not publicly
traded or, if publicly traded, is not subject to reported transactions or “bid”
or “asked” quotations as set forth above, the Fair Market Value per share shall
be as determined by the Board.

     

    (c) Option
Term.  The Board shall determine the term of each
Option.  The term of any Option shall not exceed ten years from the
date of grant.  However, an Incentive Stock Option that is granted to
an Employee who, at the time of grant, owns stock possessing more than ten
percent of the total combined voting power of all classes of stock of the
Company, or any parent or subsidiary of the Company, may not have a term that
exceeds five years from the date of grant.

     

    (d) Exercisability of
Options.

     

    (i) Options
shall become exercisable in accordance with such terms and conditions,
consistent with the Plan, as may be determined by the Board and specified in the
Grant Instrument.  The Board may accelerate the exercisability of any
or all outstanding Options at any time for any reason.

     

    (ii) The
Board may provide in a Grant Instrument that the Grantee may elect to exercise
part or all of an Option before it otherwise has become
exercisable.  Any shares so purchased shall be restricted shares and
shall be subject to a repurchase right in favor of the Company during a
specified restriction period, with the repurchase price equal to the lesser of
(i) the Exercise Price or (ii) the Fair Market Value of such shares at the time
of repurchase, or such other restrictions as the Board deems
appropriate.

     

    (e) Termination of Employment,
Disability or Death.  Except as provided below or as otherwise
specifically approved by the Board, an Option may only be exercised while the
Grantee is employed by, or providing service to, the Employer (as defined below)
as an Employee, Key Advisor or member of the Board.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (i) In
the event that a Grantee ceases to be employed by, or provide service to, the
Employer for any reason other than Disability, death, or termination for Cause
(as defined below), any Option which is otherwise exercisable by the Grantee
shall terminate unless exercised within 90 days after the date on which the
Grantee ceases to be employed by, or provide service to, the Employer (or within
such other period of time, which period shall be at least 30 days, as may be
specified by the Board), but in any event no later than the date of expiration
of the Option term.  Except as otherwise provided by the Board, any of
the Grantee’s Options that are not otherwise exercisable as of the date on which
the Grantee ceases to be employed by, or provide service to, the Employer shall
terminate as of such date.

     

    (ii) In
the event the Grantee ceases to be employed by, or provide service to, the
Employer on account of a termination for Cause by the Employer, any Option held
by the Grantee shall terminate as of the date the Grantee ceases to be employed
by, or provide service to, the Employer.  In addition, notwithstanding
any other provisions of this Section 5, if the Board determines that the Grantee
has engaged in conduct that constitutes Cause at any time while the Grantee is
employed by, or providing service to, the Employer or after the Grantee’s
termination of employment or service, any Option held by the Grantee shall
immediately terminate, and the Grantee shall automatically forfeit all shares
underlying any exercised portion of an Option for which the Company has not yet
delivered the share certificates, upon refund by the Company of the Exercise
Price paid by the Grantee for such shares.  Upon any exercise of an
Option, the Company may withhold delivery of share certificates pending
resolution of an inquiry that could lead to a finding resulting in a
forfeiture.

     

    (iii) In
the event the Grantee ceases to be employed by, or provide service to, the
Employer because the Grantee is Disabled, any Option which is otherwise
exercisable by the Grantee shall terminate unless exercised within one year
after the date on which the Grantee ceases to be employed by, or provide service
to, the Employer (or within such other period of time, which period shall be at
least six months as may be specified by the Board), but in any event no later
than the date of expiration of the Option term.  Except as otherwise
provided by the Board, any of the Grantee’s Options which are not otherwise
exercisable as of the date on which the Grantee ceases to be employed by, or
provide service to, the Employer shall terminate as of such date.

     

    (iv) If
the Grantee dies while employed by, or providing service to, the Employer or
within 90 days after the date on which the Grantee ceases to be employed or
provide service on account of a termination specified in Section 5(f)(i) above
(or within such other period of time as may be specified by the Board), any
Option that is otherwise exercisable by the Grantee shall terminate unless
exercised within one year after the date on which the Grantee ceases to be
employed by, or provide service to, the Employer (or within such other period of
time, which period shall be at least 6 months, as may be specified by the
Board), but in any event no later than the date of expiration of the Option
term.  Except as otherwise provided by the Board, any of the Grantee’s
Options that are not otherwise exercisable as of the date on which the Grantee
ceases to be employed by, or provide service to, the Employer shall terminate as
of such date.

     

    (v) For
purposes of the Plan:

     

    (A) The
term “Employer” shall mean the Company and its parent and subsidiary
corporations or other entities, as determined by the Board.

     

    (B) “Employed
by, or provide service to, the Employer” shall mean employment or service as an
Employee, Key Advisor or member of the Board (so that, for purposes of
exercising Options and satisfying conditions with respect to Stock Awards, a
Grantee shall not be considered to have terminated employment or service until
the Grantee ceases to be an Employee, Key Advisor and member of the Board),
unless the Board determines otherwise.

     

    (C) “Disability”
shall mean a Grantee’s becoming disabled within the meaning of section 22(e)(3)
of the Code, within the meaning of the Employer’s long-term disability plan
applicable to the Grantee, or as otherwise determined by the Board.

     

    (D) “Cause”
shall mean, except to the extent specified otherwise by the Board, a finding by
the Board that the Grantee (I) has breached his or her employment or service
contract with the Employer, (II) has engaged in disloyalty to the Company,
including, without limitation, fraud, embezzlement, theft, commission of a
felony or proven dishonesty, (III) has disclosed trade secrets or confidential
information of the Employer to persons not entitled to receive such information,
(IV) has breached any written noncompetition or nonsolicitation agreement
between the Grantee and the Employer or (V) has engaged in such other behavior
detrimental to the interests of the Employer as the Board
determines.

     

    (f) Exercise of
Options.  A Grantee may exercise an Option that has become
exercisable, in whole or in part, by delivering a notice of exercise to the
Company.  The Grantee shall pay the Exercise Price for an Option as
specified by the Board (i) in cash, (ii) with the approval of the Board, by
delivering shares of Company Stock owned by the Grantee (including Company Stock
acquired in connection with the exercise of an Option, subject to such
restrictions as the Board deems appropriate) and having a Fair Market Value on
the date of exercise equal to the Exercise Price or by attestation (on a form
prescribed by the Board) to ownership of shares of Company Stock having a Fair
Market Value on the date of exercise equal to the Exercise Price, (iii) after a
Public Offering, payment through a broker in accordance with procedures
permitted by Regulation T of the Federal Reserve Board, or (iv) by such other
method as the Board may approve.  The Board may authorize loans by the
Company to Grantees in connection with the exercise of an Option, upon such
terms and conditions as the Board, in its sole discretion, deems
appropriate.  Shares of Company Stock used to exercise an Option shall
have been held by the Grantee for the requisite period of time to avoid adverse
accounting consequences to the Company with respect to the
Option.  The Grantee shall pay the Exercise Price and the amount of
any withholding tax due (pursuant to Section 7) as specified by the
Board.

     

    (g) Limits on Incentive Stock
Options.  Each Incentive Stock Option shall provide that, if
the aggregate Fair Market Value of the stock on the date of the grant with
respect to which Incentive Stock Options are exercisable for the first time by a
Grantee during any calendar year, under the Plan or any other stock option plan
of the Company or a parent or subsidiary, exceeds $100,000, then the Option, as
to the excess, shall be treated as a Nonqualified Stock Option.  An
Incentive Stock Option shall not be granted to any person who is not an employee
of the Company or a parent or subsidiary (within the meaning of section 424(f)
of the Code) of the Company.

     

    6. Stock
Awards

     

    The Board
may issue or transfer shares of Company Stock to an Employee, Non-Employee
Director, and Key Advisor under a Stock Award, upon such terms as the Board
deems appropriate.  The following provisions are applicable to Stock
Awards:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a) General
Requirements.  Shares of Company Stock issued or transferred
pursuant to Restricted Stock Awards may be issued or transferred subject to
restrictions or no restrictions, as determined by the Board.  The
value of the consideration (cash, services or other consideration) for a
Restricted Stock Award may be equal to, greater than, or less than the Fair
Market Value (as defined below) of a share of Company Stock on the date the
Option is granted, as determined by the Board at the time that the issuance of
the Company Stock is authorized. The Board may establish conditions under which
restrictions on Restricted Stock Awards shall lapse over a period of time or
according to such other criteria as the Board deems appropriate.  The
period of time during which the Restricted Stock Award will remain subject to
restrictions will be designated in the Grant Instrument as the “Restriction
Period.”

     

    (b) Number of
Shares.  The Board shall determine the number of shares of
Company Stock to be issued or transferred pursuant to a Stock Award and the
restrictions applicable to such shares.

     

    (c) Requirement of Employment or
Service.  If the Grantee ceases to be employed by, or provide
service to, the Employer during a period designated in the Grant Instrument as
the Restriction Period, or if other specified conditions are not met, the Stock
Award shall terminate as to all shares covered by the award as to which the
restrictions have not lapsed, and those shares of Company Stock must be
immediately returned to the Company.  The Board may, however, provide
for complete or partial exceptions to this requirement as it deems
appropriate.  With respect to Stock Awards granted to persons other
than officers, Board members or Key Advisors, the restrictions shall lapse over
a period of not more than five years and a rate of not less than 20% per
year.

     

    (d) Restrictions on Transfer and
Legend on Stock Certificate.  During the Restriction Period, a
Grantee may not sell, assign, transfer, pledge or otherwise dispose of the
shares of the Stock Award except as permitted under Section
8(a).  Each certificate for Stock Awards shall contain a legend giving
appropriate notice of the restrictions in the Grant.  The Grantee
shall be entitled to have the legend removed from the stock certificate covering
the shares subject to restrictions when all restrictions on such shares have
lapsed.  The Board may determine that the Company will not issue
certificates for Stock Awards until all restrictions on such shares have lapsed,
or that the Company will retain possession of certificates for Stock Awards
until all restrictions on such shares have lapsed.

     

    (e) Right to Vote and to Receive
Dividends.  During the Restriction Period,  the
Grantee shall have the right to vote shares subject to Stock Awards and to
receive any dividends or other distributions paid on such shares, except as
otherwise determined by the Board.

     

    (f) Lapse of
Restrictions.  All restrictions imposed on Stock Awards shall
lapse upon the expiration of the applicable Restriction Period and the
satisfaction of all conditions imposed by the Board.  The Board may
determine, as to any or all Stock Awards, that the restrictions shall lapse
without regard to any Restriction Period.

     

    (g) Stock
Units.  The Board may grant Stock Awards in the form of phantom
stock units, upon such terms and conditions as the Committee deems
appropriate.  Each stock unit shall represent the right of the Grantee
to receive an amount based on the value of a share of Company Stock, if
specified conditions are met, at the time specified in the Grant
Instrument.  All stock units shall be credited to bookkeeping accounts
established on the Company’s records for purposes of the
Plan.  Payments with respect to stock units shall be made in the form
of Company Stock, cash or a combination of the two, as determined by the
Board.

      

    7. Withholding of
Taxes

     

    (a) Required
Withholding.  All Grants under the Plan shall be subject to
applicable federal (including FICA), state and local tax withholding
requirements.  The Employer may require that the Grantee or other
person receiving or exercising Grants pay to the Employer the amount of any
federal, state or local taxes that the Employer is required to withhold with
respect to such Grants, or the Employer may deduct from other wages paid by the
Employer the amount of any withholding taxes due with respect to such
Grants.

     

    (b) Election to Withhold
Shares.  If the Board so permits, a Grantee may elect to
satisfy the Employer’s tax withholding obligation with respect to a Grant by
having shares withheld up to an amount that does not exceed the Grantee’s
minimum applicable withholding tax rate for federal (including FICA), state and
local tax liabilities.  The election must be in a form and manner
prescribed by the Board and may be subject to the prior approval of the
Board.

     

    8. Transferability of
Grants

     

    (a) Nontransferability of
Grants.  Except as provided below, only the Grantee may
exercise rights under a Grant during the Grantee’s lifetime.  A
Grantee may not transfer those rights except (i) by will or by the laws of
descent and distribution or (ii) with respect to Grants other than Incentive
Stock Options, if permitted in any specific case by the Board, pursuant to a
domestic relations order or otherwise as permitted by the Board.  When
a Grantee dies, the personal representative or other person entitled to succeed
to the rights of the Grantee may exercise such rights.  Any such
successor must furnish proof satisfactory to the Company of his or her right to
receive the Grant under the Grantee’s will or under the applicable laws of
descent and distribution.

     

    (b) Transfer of Nonqualified
Stock Options. Notwithstanding the foregoing, the Board may provide, in a
Grant Instrument, that a Grantee may transfer Nonqualified Stock Options to
family members, or one or more trusts or other entities for the benefit of or
owned by  family members, consistent with applicable securities laws,
according to such terms as the Board may determine; provided that the Grantee
receives no consideration for the transfer of an Option and the transferred
Option shall continue to be subject to the same terms and conditions as were
applicable to the Option immediately before the transfer.

     

    9. Right of First Refusal;
Repurchase Right

     

    (a) Offer.  Prior
to a Public Offering, if at any time an individual desires to sell, encumber, or
otherwise dispose of shares of Company Stock that were distributed to him or her
under this Plan and that are transferable, the individual may do so only
pursuant to a bona fide written offer, and the individual shall first offer the
shares to the Company by giving the Company written notice disclosing: (a) the
name of the proposed transferee of the Company Stock; (b) the certificate number
and number of shares of Company Stock proposed to be transferred or encumbered;
(c) the proposed price; (d) all other terms of the proposed transfer; and (e) a
written copy of the proposed offer.  Within 60 days after receipt of
such notice, the Company shall have the option to purchase all or part of such
Company Stock at the price and on the terms described in the written notice;
provided that the Company may pay such price in installments over a period not
to exceed four years, at the discretion of the Board.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Sale.  In
the event the Company (or a shareholder, as described below) does not exercise
the option to purchase Company Stock, as provided above, the individual shall
have the right to sell, encumber, or otherwise dispose of the shares of Company
Stock described in subsection (a) at the price and on the terms of the transfer
set forth in the written notice to the Company, provided such transfer is
effected within 15 days after the expiration of the option period.  If
the transfer is not effected within such period, the Company must again be given
an option to purchase, as provided above.

     

    (c) Assignment of
Rights.  The Board, in its sole discretion, may waive the
Company’s right of first refusal and repurchase right under this Section
9.  If the Company’s right of first refusal or repurchase right is so
waived, the Board may, in its sole discretion, assign such right to the
remaining shareholders of the Company in the same proportion that each
shareholder’s stock ownership bears to the stock ownership of all the
shareholders of the Company, as determined by the Board.  To the
extent that a shareholder has been given such right and does not purchase his or
her allotment, the other shareholders shall have the right to purchase such
allotment on the same basis.

     

    (d) Purchase by the
Company.  Prior to a Public Offering, if a Grantee ceases to be
employed by, or provide service to, the Employer, the Company shall have the
right to purchase all or part of any Company Stock distributed to him or her
under this Plan at its then current Fair Market Value (as defined in Section
5(b)) (or at such other price as may be established in the Grant Instrument);
provided, however, that such repurchase shall be made in accordance with
applicable accounting rules to avoid adverse accounting treatment.

     

    (e) Public
Offering.  On and after a Public Offering, the Company shall
have no further right to purchase shares of Company Stock under this Section
9.

     

    (f) Shareholder’s
Agreement. Notwithstanding the provisions of this Section 9, if the Board
requires that a Grantee execute a shareholder’s agreement with respect to any
Company Stock distributed pursuant to this Plan, which contains a right of first
refusal or repurchase right, the provisions of this Section 9 shall not apply to
such Company Stock, unless the Board determines otherwise.

     

    10. Change of Control of the
Company

     

    As used
herein, a “Change of Control” shall be deemed to have occurred if:

     

    (a) Any
“person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act)
(other than persons who are shareholders on the effective date of the Plan)
becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing more than 50%
of the voting power of the then outstanding securities of the Company; provided
that a Change of Control shall not be deemed to occur as a result of a change of
ownership resulting from the death of a shareholder, and a Change of Control
shall not be deemed to occur as a result of a transaction in which the Company
becomes a subsidiary of another corporation and in which the shareholders of the
Company, immediately prior to the transaction, will beneficially own,
immediately after the transaction, shares entitling such shareholders to more
than 50% of all votes to which all shareholders of the parent corporation would
be entitled in the election of directors (without consideration of the rights of
any class of stock to elect directors by a separate class vote); or

     

    (b) The
consummation of (i) a merger or consolidation of the Company with another
corporation where the shareholders of the Company, immediately prior to the
merger or consolidation, will not beneficially own, immediately after the merger
or consolidation, shares entitling such shareholders to more than 50% of all
votes to which all shareholders of the surviving corporation would be entitled
in the election of directors (without consideration of the rights of any class
of stock to elect directors by a separate class vote),  (ii) a sale or
other disposition of all or substantially all of the assets of the Company or
(iii) a liquidation or dissolution of the Company.

     

    11. Consequences of a Change of
Control

     

    (a) Assumption of
Grants.  Upon a Change of Control where the Company is not the
surviving corporation (or survives only as a subsidiary of another corporation),
unless the Board determines otherwise, all outstanding Options that are not
exercised shall be assumed by, or replaced with comparable options by the
surviving corporation (or a parent or subsidiary of the surviving corporation),
and outstanding Stock Awards shall be converted to Stock Awards of the surviving
corporation (or a parent or subsidiary of the surviving
corporation).

     

    (b) Other
Alternatives.  Notwithstanding the foregoing, in the event of a
Change of Control, the Board may take any of the following actions with respect
to any or all outstanding Grants: the Board may (i) determine that outstanding
Options shall accelerate and become exercisable, in whole or in part, upon the
Change of Control or upon such other event as the Board determines, (ii)
determine that the restrictions and conditions on outstanding Stock Awards shall
lapse, in whole or in part, upon the Change of Control or upon such other event
as the Board determines, (iii) require that Grantees surrender their outstanding
Options in exchange for a payment by the Company, in cash or stock as determined
by the Board, in an amount equal to the amount by which the then Fair Market
Value of the shares of Company Stock subject to the Grantee’s unexercised
Options exceeds the Exercise Price of the Options or (iv) after giving Grantees
an opportunity to exercise their outstanding Options, terminate any or all
unexercised Options at such time as the Board deems appropriate.  Such
surrender or termination shall take place as of the date of the Change of
Control or such other date as the Board may specify.  The Board shall
have no obligation to take any of the foregoing actions, and, in the absence of
any such actions, outstanding Options and Stock Awards shall continue in effect
according to their terms (subject to any assumption pursuant to subsection
(a)).

     

    12. Requirements for Issuance or
Transfer of Shares

     

    (a) Shareholder’s
Agreement.  The Board may require that a Grantee execute a
shareholder’s agreement, with such terms as the Board deems appropriate, with
respect to any Company Stock issued or distributed pursuant to this
Plan.

     

    (b) Limitations on Issuance or
Transfer of Shares.  No Company Stock shall be issued or
transferred in connection with any Grant hereunder unless and until all legal
requirements applicable to the issuance or transfer of such Company Stock have
been complied with to the satisfaction of the Board.  The Board shall
have the right to condition any Grant made to any Grantee hereunder on such
Grantee’s undertaking in writing to comply with such restrictions on his or her
subsequent disposition of such shares of Company Stock as the Board shall deem
necessary or advisable, and certificates representing such shares may be
legended to reflect any such restrictions.  Certificates representing
shares of Company Stock issued or transferred under the Plan will be subject to
such stop-transfer orders and other restrictions as may be required by
applicable laws, regulations and interpretations, including any requirement that
a legend be placed thereon.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) Lock-Up
Period.  If so requested by the Company or any representative
of the underwriters (the “Managing Underwriter”) in connection with any
underwritten offering of securities of the Company under the Securities Act of
1933, as amended (the “Securities Act”), a Grantee (including any successor or
assigns) shall not sell or otherwise transfer any shares or other securities of
the Company during the 30-day period preceding and the 180-day period following
the effective date of a registration statement of the Company filed under the
Securities Act for such underwriting (or such shorter period as may be requested
by the Managing Underwriter and agreed to by the Company) (the “Market Standoff
Period”).  The Company may impose stop-transfer instructions with
respect to securities subject to the foregoing restrictions until the end of
such Market Standoff Period.

     

    13. Amendment and Termination of
the Plan

     

    (a) Amendment.  The
Board may amend or terminate the Plan at any time; provided, however, that the
Board shall not amend the Plan without shareholder approval if such approval is
required in order to comply with the Code or other applicable laws, or, after an
Initial Public Offering, to comply with applicable stock exchange
requirements.

     

    (b) Termination of
Plan.  The Plan shall terminate on the day immediately
preceding the tenth anniversary of its effective date, unless the Plan is
terminated earlier by the Board or is extended by the Board with the approval of
the shareholders.

     

    (c) Termination and Amendment of
Outstanding Grants.  A termination or amendment of the Plan
that occurs after a Grant is made shall not materially impair the rights of a
Grantee unless the Grantee consents or unless the Board acts under Section
19(b).  The termination of the Plan shall not impair the power and
authority of the Board with respect to an outstanding Grant.  Whether
or not the Plan has terminated, an outstanding Grant may be terminated or
amended under Section 19(b) or may be amended by agreement of the Company and
the Grantee consistent with the Plan.

     

    (d) Governing
Document.  The Plan shall be the controlling
document.  No other statements, representations, explanatory materials
or examples, oral or written, may amend the Plan in any manner.  The
Plan shall be binding upon and enforceable against the Company and its
successors and assigns.

     

    14. Funding of the
Plan

     

    This Plan
shall be unfunded.  The Company shall not be required to establish any
special or separate fund or to make any other segregation of assets to assure
the payment of any Grants under this Plan.  In no event shall interest
be paid or accrued on any Grant, including unpaid installments of
Grants.

     

    15. Rights of
Participants

     

    Nothing
in this Plan shall entitle any Employee, Key Advisor, Non-Employee Director or
other person to any claim or right to be granted a Grant under this
Plan.  Neither this Plan nor any action taken hereunder shall be
construed as giving any individual any rights to be retained by or in the employ
of the Employer or any other employment rights.

     

    16. No Fractional
Shares

     

    No
fractional shares of Company Stock shall be issued or delivered pursuant to the
Plan or any Grant.  The Board shall determine whether cash, other
awards or other property shall be issued or paid in lieu of such fractional
shares or whether such fractional shares or any rights thereto shall be
forfeited or otherwise eliminated.

     

    17. Headings

     

    Section
headings are for reference only.  In the event of a conflict between a
title and the content of a Section, the content of the Section shall
control.

     

    18. Effective Date of the
Plan.

     

    (a) Effective
Date.  The Plan shall be effective on June 6,
2007.  The Plan is adopted subject to shareholder approval of the Plan
within 12 months before or after the Plan is adopted.

     

    (b) Public
Offering.  The provisions of the Plan that refer to a Public
Offering, or that refer to, or are applicable to persons subject to, section 16
of the Exchange Act or section 162(m) of the Code, shall be effective, if at
all, upon the initial registration of the Company Stock under section 12(g) of
the Exchange Act, and shall remain effective thereafter for so long as such
stock is so registered.

     

    19. Miscellaneous

     

    (a) Grants in Connection with
Corporate Transactions and Otherwise.  Nothing contained in
this Plan shall be construed to (i) limit the right of the Board to make Grants
under this Plan in connection with the acquisition, by purchase, lease, merger,
consolidation or otherwise, of the business or assets of any corporation, firm
or association, including Grants to employees thereof who become Employees, or
for other proper corporate purposes, or (ii) limit the right of the Company to
grant stock options or make other awards outside of this
Plan.  Without limiting the foregoing, the Board may make a Grant to
an employee of another corporation who becomes an Employee by reason of a
corporate merger, consolidation, acquisition of stock or property,
reorganization or liquidation involving the Company, the Parent or any of their
subsidiaries in substitution for a stock option or Stock Awards grant made by
such corporation.  The terms and conditions of the substitute grants
may vary from the terms and conditions required by the Plan and from those of
the substituted stock incentives.  The Board shall prescribe the
provisions of the substitute grants.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Compliance with
Law.  The Plan, the exercise of Options and the obligations of
the Company to issue or transfer shares of Company Stock under Grants shall be
subject to all applicable laws and to approvals by any governmental or
regulatory agency as may be required.  With respect to persons subject
to section 16 of the Exchange Act, after a Public Offering it is the intent of
the Company that the Plan and all transactions under the Plan comply with all
applicable provisions of Rule 16b-3 or its successors under the Exchange
Act.  In addition, it is the intent of the Company that the Plan and
applicable Grants under the Plan comply with the applicable provisions of
section 162(m) of the Code, after a Public Offering, and section 422 of the
Code.  To the extent that any legal requirement of section 16 of the
Exchange Act or section 162(m) or 422 of the Code as set forth in the Plan
ceases to be required under section 16 of the Exchange Act or section 162(m) or
422 of the Code, that Plan provision shall cease to apply.  The Board
may revoke any Grant if it is contrary to law or modify a Grant to bring it into
compliance with any valid and mandatory government regulation.  The
Board may also adopt rules regarding the withholding of taxes on payments to
Grantees.  The Board may, in its sole discretion, agree to limit its
authority under this Section.

     

    (c) Employees Subject to
Taxation Outside the United States.  With respect to Grantees
who are subject to taxation in countries other than the United States, the Board
may make Grants on such terms and conditions as the Board deems appropriate to
comply with the laws of the applicable countries, and the Board may create such
procedures, addenda and subplans and make such modifications as may be necessary
or advisable to comply with such laws.

     

    (d) Governing
Law.  The validity, construction, interpretation and effect of
the Plan and Grant Instruments issued under the Plan shall be governed and
construed by and determined in accordance with the laws of the State of Nevada,
without giving effect to the conflict of laws provisions thereof.

     

    Approved on June 6,
2007 

    VEMICS, INC.

     

    AMENDMENT
NO. 1

     

    TO

     

    VEMICS, INC. 2007 EQUITY
COMPENSATION PLAN

     

    A.           On
June 6, 2007, the shareholders of Vemics, Inc., approved the Vemics, Inc. 2007
Equity Compensation Plan (the “Plan”) to provide (i) designated employees of
Vemics, Inc. (the “Company”) and its subsidiaries, (ii) certain consultants and
advisors who perform services for the Company or its subsidiaries, (iii)
non-employee members of the Board of Directors of the Company (the “Board”) and
(iv) designated former employees, board members and consultants of the Company
with the opportunity to receive grants of incentive stock options, nonqualified
stock options and stock awards.

     

    B.           Pursuant
to Section 3(a) of the Plan, on July 29, 2008, the Board adopted an amendment to
Section 3(a) of the Plan to increase the authorized shares under the Plan from
6,300,000 shares to 17,000,000 shares.  Accordingly, Section 3(a) of
the Plan is hereby amended by deleting the first sentence and replacing it with
the following:

     

    “3.           Shares Subject to the
Plan

     

    (a)           Shares
Authorized.  Subject to adjustment as described below, the
aggregate number of shares of common stock of the Company (“Company Stock”) that
may be issued under the Plan is 17,000,000 shares.”

     

           
 C.            As
amended by this Amendment, all of the provisions of the Plan are hereby
approved, confirmed and ratified.

     

                    D.           This
Amendment is effective as of July 29, 2008, and shall be submitted to the
Stockholders of the Company for approval at the next annual
meeting.ex10-1.htm

    
      

    

    Exhibit
10.1

    

    EMPLOYMENT
AGREEMENT

    

     

    THIS
AGREEMENT (the “Agreement”) is to be effective as of April 15, 2009 (the
“Effective Date”), between Health Discovery Corporation (the “Company”), and R.
Scott Tobin (the “Executive”).

     

    INTRODUCTION

    

    The
Company and the Executive now desire to enter into this Agreement as to the
terms of his employment by the Company.

     

    NOW, THEREFORE, the parties
agree as follows:

     

    1.           
Terms and Conditions
of Employment.

     

    (a)           Employment.  During
the Term, Company will employ the Executive, and the Executive will serve as the
President and General Counsel of the Company on a full-time basis and will have
such responsibilities and authority as may from time to time be assigned to the
Executive by the CEO of the Company.  Executive shall be responsible
for:  strategic direction and strategic alliances (in conjunction with
the CEO and the Board of Directors of the Company); all business operations of
the Company including but not limited to financial management, controller,
financial systems management and preparation of all documents required of the
Company by the Securities and Exchange Commission; and such customary,
appropriate and reasonable executive duties as are usually performed by a
general counsel.  In this capacity, Executive will provide services to
the Company and be privy to the Company’s Confidential Information and Trade
Secrets.  The Executive will report to the CEO of the Company.
Executive shall serve on the Board of Directors without additional compensation
beyond that set forth in this Agreement, and shall continue to serve for so long
as he is thereafter elected to such position by the Company’s stockholders. The
Executive’s primary office will be at the Company’s headquarters in such
geographic location within the United States as may be determined by the
Company.

     

    (b)           Exclusivity.  Throughout
the Executive’s employment hereunder, the Executive shall devote substantially
all of the Executive’s time, energy and skill during regular business hours to
the performance of the duties of the Executive’s employment, shall faithfully
and industriously perform such duties, and shall diligently follow and implement
all management policies and decisions of the Company; provided, however, that
this provision is not intended to prevent the Executive from managing his
investments, or engaging in other activities outside of the Company, whether or
not compensable, so long as he gives his duties to the Company first priority
and such activities do not interfere with his performance of duties for the
Company.  Notwithstanding the foregoing, other than with regard to the
Executive’s duties to the Company, the Executive will not accept any other
employment during the Term, perform any consulting services during the Term, or
serve on the board of directors or governing body of any other business, except
with the prior written consent of the Board of Directors.  Further,
the Executive has disclosed on Exhibit A hereto, all
of his nonpublic company bio-discovery related investments, and agrees during
the Term not to make any investments during the Term hereof except as a passive
investor.  The Executive agrees during the Term not to own directly or
indirectly equity securities of any public healthcare related company (excluding
the Company) that represents five percent (5%) or more of the value of voting
power of the equity securities of such company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.           
Compensation.

     

    (a)           Base
Salary.  The Company shall pay the Executive base salary of
$120,000.00 per annum (the “Annual Base Salary”), which base salary will be
subject to review effective at least annually thereafter by the Company for
possible increases. The base salary shall be payable in equal installments, no
less frequently than twice per month, in accordance with the Company’s regular
payroll practices.

     

    (b)           Bonus.    Executive
shall be eligible to receive annually a target variable incentive bonus (the
"Incentive Bonus") of one hundred percent (100%) of Employee’s then current
annual salary, based on objectives jointly determined by Executive and the
Chairman and CEO.  This Incentive Bonus is to be paid to Executive no
later than thirty (30) days following the closing of the Company’s annual
audited financial statements for services performed during each calendar year
subject to the Term(s) of this Agreement.  For his services performed
in calendar year ending 2009, the Incentive Bonus may be paid in cash, stock,
enhanced employee benefits or some combination thereof, based on the Company’s
preference and in accordance with law.  For subsequent calendar years,
the Incentive Bonus shall be payable in cash.

     

    (c)           Equity
Compensation.  The Executive shall receive options to acquire
shares of the Company’s Common Stock at an exercise price per share equal to the
greater of the Fair Market Value (as defined in the option agreement referenced
herein) of a share of the Company’s Common Stock or $0.08, which shall vest
pursuant to the vesting schedule set forth on Exhibit B hereto and which grant
shall be evidenced by an option agreement, the terms of which are incorporated
herein by reference, in form and substance reasonably satisfactory to the
Company and Executive.

     

    (d)           Expenses.  The
Executive shall be entitled to be reimbursed in accordance with Company policy
in effect for reasonable and necessary expenses incurred by the Executive in
connection with the performance of the Executive’s duties of employment
hereunder; provided, however, the Executive shall, as a condition of such
reimbursement, submit verification of the nature and amount of such expenses in
accordance with the reasonable reimbursement policies from time to time adopted
by the Company.  Any
travel by Executive on
behalf of the Company shall be at the Company’s expense and shall include, but
not be limited to, all costs for the Executive’s transportation, lodging, meals,
and with respect to air fare at lowest available nonstop coach rates for
domestic flights and at lowest available nonstop business class rates for all
international flights.

     

    (e)           Paid Time
Off.  Executive
shall be entitled to fifteen (15) paid vacation days during the calendar year
from January 1 to December 31. All vacation must be taken by December
31 in the calendar year in which such vacation is earned.

     

    (f)           
Benefits.

     

    (i)          The Company shall at all times during
the Term pay all premiums for health insurance benefits for Executive and his
dependants with coverage and premiums available to other regular full-time
employees of the Company; provided, however, Executive shall be responsible for
all deductibles, co-payment requirements or similar obligations under such
health insurance, and provided, further, that the Company’s obligations under
this Section 2(f)(i) shall not exceed twenty percent (20%) of the Executive’s
Annual Base Salary.

     

    (ii)          In addition to the benefits payable to
the Executive specifically described herein, the Executive shall be entitled to
such benefits as generally may be made available to all other executives of the
Company from time to time as approved by the Board of Directors of the Company;
provided, however, that nothing contained herein shall require the establishment
or continuation of any particular plan or program; provided, further, that
Executive shall be entitled to participate in any stock option or other equity
plan otherwise made available to other executives of the
Company.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (g)           Director
& Officer Insurance.  The Company, at its expense, shall maintain
director and officer insurance covering Executive at levels consistent with past
practice with a reputable carrier. The Executive shall be entitled to
indemnification, including advancement of expenses (if applicable), in
accordance with and to the fullest extent permitted by law, and as provided by
the Company’s bylaws and articles of incorporation, and any separate
indemnification agreement, if any.

     

    (h)           Reimbursement
Conditions.  All expenses eligible for reimbursement under this
Agreement must be incurred by the Executive during the Term of this Agreement to
be eligible for reimbursement. All reimbursements shall be paid as soon as
administratively practicable, but in no event shall any reimbursement be paid
after thirty days following the last day of the calendar year in which the
expense was incurred, nor shall the amount of reimbursable expenses incurred in
one taxable year affect the expenses eligible for reimbursement in any other
taxable year.

    

    (i)           Withholding.  All
payments pursuant to this Agreement shall be reduced for any applicable state,
local, or federal tax withholding obligations.

     

    3.           
Term, Termination and
Termination Payments.

     

    (a)           Term.  The
term of this Agreement shall begin as of the Effective Date.  It shall
continue for a period of eighteen (18) months from the Effective Date hereof or
until sooner terminated pursuant to Section 3(b) hereof (the “Initial
Term”).  Thereafter, the employment term shall automatically renew and
continue for successive twelve (12) month periods (each a “Renewal Term”) unless
terminated pursuant to this Agreement or by either Party upon ninety (90)
calendar days’ written notice of intent not to renew this Agreement provided
prior to the expiration of the Initial Term or the then current Renewal Term, as
the case may be.  The Initial Term together with any Renewal Term(s)
shall be referred to herein as the “Term.”

     

    (b)           Termination.  This
Agreement and the employment of the Executive by the Company hereunder shall
only be terminated: (i) by expiration of the Term; (ii) by the Company
without Cause; (iii) by the Executive for Good Reason; (iv) by the
Company or the Executive due to the Disability of the Executive; (v) by the
Company for Cause; (vi) by the Executive for other than Good Reason or
Disability, upon at least ninety (90) days prior written notice to the Company;
or (vii) upon the death of the Executive.  Notice of termination by
any party shall be given prior to termination in writing and shall specify the
basis for termination and the effective date of termination.  Further,
notice of termination for Cause by the Company or Good Reason by the Executive
shall specify the facts alleged to constitute termination for Cause or Good
Reason, as applicable.  Except as provided in Section 3(c), the
Executive shall not be entitled to any payments or benefits after the effective
date of the termination of this Agreement, except for base salary pursuant to
Section 2(a) accrued up to the effective date of termination, any unpaid earned
and accrued Incentive Bonus, if any, pursuant to Section 2(b) (unless
termination is by the Executive prior to the end of the Term for other than Good
Reason), pay for accrued but unused vacation that the Company is legally
obligated to pay Executive, if any, and only if the Company is so obligated, as
provided under the terms of any other employee benefit and compensation
agreements or plans applicable to the Executive, expenses required to be
reimbursed pursuant to Section 2(d), and any rights to payment the Executive has
under Section 2(g).

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (c)           Termination by the Company
without Cause or by the Executive for Good Reason.

     

    (i)           If
the employment of the Executive is terminated by the Company without Cause or by
the Executive for Good Reason and such termination constitutes a Termination of
Employment, the Company will pay the Executive (A) such maximum Incentive Bonus
to which Executive would have been entitled had Executive remained in the employ
of the Company the later of the entire calendar year in which such termination
occurs, or the end of the Term, (B) his base salary pursuant to Section 2(a)
hereof for the remainder of the Term  plus ninety (90) days, and
(C) an amount equal to the actual cost of ninety (90) days of the Executive’s
health insurance premiums pursuant to Section 2(f) hereof, or if applicable,
COBRA premium payments, commencing with the COBRA payment next due after
termination, should the Executive elect COBRA (the “Continuing
Benefit”).  Such amount shall be paid in arrears in
substantially equal installments not less frequently than monthly over the
remainder of the Term commencing within thirty (30) days following the effective
date of termination; provided, however, if the Executive is a “specified
employee” within the meaning of Section 409A of the Internal Revenue Code, as
amended (the “Code”), at the date of his Termination of Employment, then such
portion of the payments that would result in a tax under Code Section 409A if
paid during the first six (6) months after Termination of Employment shall be
withheld, starting with the payments latest in time during such six (6) month
period, and paid to the Executive during the seventh month following the date of
his Termination of Employment.  Notwithstanding the foregoing, if the
total payments to be paid to the Executive hereunder, along with any other
payments to the Executive, would result in the Executive being subject to the
excise tax imposed by Code Section 4999, the Company shall reduce the aggregate
payments to the largest amount which can be paid to the Executive without
triggering the excise tax, but only if and to the extent that such reduction
would result in the Executive retaining larger aggregate after-tax
payments.  The determination of the excise tax and the aggregate
after-tax payments to be received by the Executive will be made by the
Company.  If payments are to be reduced, the payments made latest in
time will be reduced first.

     

    (ii)          If
the original Term is not extended or the Company or the Executive terminates the
Executive’s employment in accordance with the Agreement upon or following
expiration of the Term, such termination shall not be deemed in and of itself to
be a termination of the Executive’s employment by the Company without Cause or a
resignation by Executive for Good Reason.

     

    (iii)         Notwithstanding
any other provision hereof, as a condition to the payment of the amounts in this
Section, the Executive shall be required to execute and not revoke within the
revocation period provided therein, the Release.

     

    (d)           Survival.  The
covenants in this Section 3 hereof shall survive the termination of this
Agreement and shall not be extinguished thereby.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    4.           
Ownership and
Protection of Proprietary Information.

     

    (a)           Confidentiality.  All
Confidential Information and Trade Secrets and all physical embodiments thereof
received or developed by the Executive while employed by the Company are
confidential to and are and will remain the sole and exclusive property of the
Company.  Except to the extent necessary to perform the duties
assigned by the Company hereunder, the Executive will hold such Confidential
Information and Trade Secrets in trust and strictest confidence, and will not
use, reproduce, distribute, disclose or otherwise disseminate the Confidential
Information and Trade Secrets or any physical embodiments thereof and may in no
event take any action causing or fail to take the action necessary in order to
prevent, any Confidential Information and Trade Secrets disclosed to or
developed by the Executive to lose its character or cease to qualify as
Confidential Information or Trade Secrets.

     

    (b)           Return of Company
Property.  Upon request by the Company, and in any event upon
termination of this Agreement for any reason, as a prior condition to receiving
any final compensation hereunder (including any payments pursuant to
Section 3 hereof), the Executive will promptly deliver to the Company all
property belonging to the Company, including, without limitation, all
Confidential Information and Trade Secrets (and all embodiments thereof) then in
the Executive’s custody, control or possession.

     

    (c)           Survival.  The
covenants of confidentiality set forth herein will apply on and after the date
hereof to any Confidential Information and Trade Secrets disclosed by the
Company or developed by the Executive while employed or engaged by the Company
prior to or after the date hereof.  The covenants restricting the use
of Confidential Information will continue and be maintained by the Executive for
a period of two years following the termination of this
Agreement.  The covenants restricting the use of Trade Secrets will
continue and be maintained by the Executive following termination of this
Agreement for so long as permitted by the governing law.

     

    5.           
Non-Competition and
Non-Solicitation Provisions.

     

    (a)           The
Executive agrees that during the Applicable Period, the Executive will not
(except on behalf of or with the prior written consent of the Company, which
consent may be withheld in Company’s sole discretion), within the Area either
directly or indirectly, on his own behalf, or in the service of or on behalf of
others, provide managerial services or management consulting services
substantially similar to those Executive provides for the Company to any
Competing Business.  The Executive acknowledges and agrees that the
Business of the Company is conducted in the Area.

     

    (b)           The
Executive agrees that during the Applicable Period, he will not, either directly
or indirectly, on his own behalf or in the service of or on behalf of others
solicit any individual or entity which is an actual or, to his knowledge,
actively sought prospective client of the Company or any of its Affiliates
(determined as of date of termination of employment) with whom he had material
contact while he was an Executive of the Company, for the purpose of offering
services substantially similar to those offered by the Company.

     

    (c)           The
Executive agrees that during the Applicable Period, he will not, either directly
or indirectly, on his own behalf or in the service of or on behalf of others,
solicit for employment with a Competing Business any person who is a management
level employee of the Company or an Affiliate with whom Executive had contact
during the last year of Executive’s employment with the Company.  The
Executive shall not be deemed to be in breach of this covenant solely because an
employer for whom he may perform services may solicit, divert, or hire a
management level employee of the Company or an Affiliate provided that Executive
does not engage in the activity proscribed by the preceding
sentence.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (d)           The
Executive agrees that during the Applicable Period, he will not make any
statement (written or oral) that could reasonably be perceived as disparaging to
the Company or any person or entity that he reasonably should know is an
Affiliate of the Company.

     

    (e)           In
the event that this Section 5 is determined by a court which has jurisdiction to
be unenforceable in part or in whole, the court shall be deemed to have the
authority to strike any unenforceable provision, or any part thereof or to
revise any provision to the minimum extent necessary to be enforceable to the
maximum extent permitted by law.

     

    (f)           The
provisions of this Section 5 shall survive termination of this
Agreement.

     

    6.           
Remedies and
Enforceability.

     

    The
Executive agrees that the covenants, agreements, and representations contained
in Sections 4 and 5 hereof are of the essence of this Agreement; that each of
such covenants are reasonable and necessary to protect and preserve the
interests and properties of the Company; that irreparable loss and damage will
be suffered by the Company should the Executive breach any of such covenants and
agreements; that each of such covenants and agreements is separate, distinct and
severable not only from the other of such covenants and agreements but also from
the other and remaining provisions of this Agreement; that the unenforceability
of any such covenant or agreement shall not affect the validity or
enforceability of any other such covenant or agreements or any other provision
or provisions of this Agreement; and that, in addition to other remedies
available to it, including, without limitation, termination of the Executive’s
employment for Cause, the Company shall be entitled to seek both temporary and
permanent injunctions to prevent a breach or contemplated breach by the
Executive of any of such covenants or agreements.

     

    7.           
Notice.

     

    All
notices, requests, demands and other communications required hereunder shall be
in writing and shall be deemed to have been duly given if delivered or if
mailed, by United States certified or registered mail, prepaid to the party to
which the same is directed at the following addresses (or at such other
addresses as shall be given in writing by the parties to one
another):

     

    
      If to the
Company:

    

     

    2 East
Bryan Street, Suite 601

    Savannah,
GA 31401

    

    If to the
Executive:

     

    2
Jessamine Lane

    Savannah,
GA 31411

    

    Notices
delivered in person shall be effective on the date of
delivery.  Notices delivered by mail as aforesaid shall be effective
upon the fourth calendar day subsequent to the postmark date
thereof.

     

    8.           
Miscellaneous.

     

    (a)           Assignment.  The
rights and obligations of the Company under this Agreement shall inure to the
benefit of the Company’s successors and assigns.  This Agreement may
be assigned by the Company to any legal successor to the Company’s business or
to an entity that purchases all or substantially all of the assets of the
Company, but not otherwise without the prior written consent of the
Executive.  In the event the Company assigns this Agreement as
permitted by this Agreement and the Executive remains employed by the assignee,
the “Company” as defined herein will refer to the assignee and the Executive
will not be deemed to have terminated his employment hereunder until the
Executive terminates his employment with the assignee.  The Executive
may not assign this Agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (b)           Waiver.  The
waiver of any breach of this Agreement by any party shall not be effective
unless in writing, and no such waiver shall constitute the waiver of the same or
another breach on a subsequent occasion.

     

    (c)           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Georgia.  The
parties agree that any appropriate state or federal court located in Chatham
County, Georgia shall have jurisdiction of any case or controversy arising under
or in connection with this Agreement and shall be a proper forum in which to
adjudicate such case or controversy.  The parties consent to the
jurisdiction of such courts.

     

    (d)           Entire
Agreement.  This Agreement and other agreements referenced
herein embody the entire agreement of the parties hereto relating to the subject
matter hereof and supersede all oral agreements, and to the extent inconsistent
with the terms hereof, all other written agreements.

     

    (e)           Amendment.  This
Agreement may not be modified, amended, supplemented or terminated except by a
written instrument executed by the parties hereto.

     

    (f)           Severability.  Each
of the covenants and agreements hereinabove contained shall be deemed separate,
severable and independent covenants, and in the event that any covenant shall be
declared invalid by any court of competent jurisdiction, such invalidity shall
not in any manner affect or impair the validity or enforceability of any other
part or provision of such covenant or of any other covenant contained
herein.

     

    (g)           Captions and Section
Headings.  Except as set forth in Section 9 hereof,
captions and section headings used herein are for convenience only and are not a
part of this Agreement and shall not be used in construing it.

     

    (h)           Dispute
Resolution.  If a dispute arises between Company and Executive
regarding the interpretation of this Agreement, the parties agree to negotiate
in good faith regarding a resolution of the issues involved for at least thirty
days prior to either party initiating proceedings to enforce their rights.
Within sixty (60) days after a final determination (excluding any appeals) is
made with respect to the proceedings, unless the parties agree otherwise, the
losing party will reimburse the winning party’s reasonable attorney’s fees and
costs incurred in the litigation. ALL DISPUTES ARISING OUT OF OR
RELATED TO THIS AGREEMENT OR TO COMPANY’S EMPLOYMENT OF EXECUTIVE OR THE
TERMINATION OF EXECUTIVE’S EMPLOYMENT SHALL BE SUBMITTED EXCLUSIVELY TO BINDING
ARBITRATION IN SAVANNAH, GEORGIA, PURSUANT TO THE NATIONAL RULES FOR THE
RESOLUTION OF EMPLOYMENT DISPUTES OF THE AMERICAN ARBITRATION
ASSOCIATION, provided however that Company shall be entitled to
injunctive relief from any court of jurisdiction against Executive’s breach of
any covenant in Articles 4 and 5, and further provided that this Agreement shall
not require arbitration of any claim for workers’ compensation benefits or any
claim for unemployment compensation. Executive understands that agreeing to
arbitration waives the right to a jury trial. Arbitral awards shall be
enforceable by any court of competent jurisdiction.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    9.           
Definitions.

     

    (a)           “Affiliate” means any
person, firm, corporation, partnership, association or entity that, directly or
indirectly or through one or more intermediaries, controls, is controlled by or
is under common control with the Company.

     

    (b)           “Applicable Period”
means the period commencing as of the date of this Agreement and ending twelve
months after the termination of the Executive’s employment with the Company or
any of its Affiliates.

     

    (c)           “Area” means the
United States.

     

    (d)           “Business of the
Company” means any business that uses or provides consulting services
related to support vector machines or fractal genomic modeling.

     

    (e)           “Cause” the occurrence
of any of the following events:

     

    (i)          willful failure or refusal to perform
the duties as set forth in Section 1(a) as determined by the Board of Directors
or implement a directive from the Board of Directors, in each case remaining
uncured for a period of fourteen (14) days after receipt of written notice from
the Board of Directors specifying such failure or refusal;

     

    (ii)          intentional
disclosure by the Executive to an unauthorized person of Confidential
Information or Trade Secrets, which causes material harm to the
Company;

     

    (iii)          any
act by the Executive of fraud against, material misappropriation from, or
significant dishonesty to either the Company or an Affiliate, or any other
party, but in the latter case only if in the reasonable opinion of at least
two-thirds of the members of the Board of Directors of the Company (excluding
the Executive), such fraud, material misappropriation, or significant dishonesty
could reasonably be expected to have a material adverse impact on the Company or
its Affiliates;

     

    (iv)          conviction of, or plea of nolo
contendere to, a felony which adversely and materially affects the
Company; or

     

    (v)          a
material breach of this Agreement by the Executive, provided that the nature of
such breach shall be set forth with reasonable particularity in a written notice
to the Executive who shall have ten (10) days following delivery of such notice
to cure such alleged breach, provided that such breach is, in the reasonable
discretion of the Board of Directors, susceptible to a cure.

     

    (f)           “Competing Business”
means the entities listed below and any person, firm, corporation, joint
venture, or other business that is engaged in the Business of the
Company:

     

    (g)           “Confidential
Information” means data and information relating to the Business of the
Company or an Affiliate (which does not rise to the status of a Trade Secret)
which is or has been disclosed to the Executive or of which the Executive became
aware as a consequence of or through his relationship to the Company or an
Affiliate and which has value to the Company or an Affiliate and is not
generally known to its competitors.  Confidential Information shall
not include any data or information that has been voluntarily disclosed to the
public by the Company or an Affiliate (except where such public disclosure has
been made by the Executive without authorization) or that has been independently
developed and disclosed by others, or that otherwise enters the public domain
through lawful means without breach of any obligations of confidentiality owed
to the Company or any of its Affiliates by the Executive.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (h)           “Disability” means the
inability of the Executive to perform the material duties of his position
hereunder due to a physical, mental, or emotional impairment, for a ninety (90)
consecutive day period or for aggregate of one hundred eighty (180) days during
any three hundred sixty-five (365) day period.

     

    (i)           “Good Reason” means
the occurrence of any of the events listed in either (i), (ii) or (iii)
below:

     

    (i)           (A)          the
Company materially breaches this Agreement, including without limitation, a
material diminution of the Executive’s responsibilities as President and General
Counsel, as reasonably modified by the Board of Directors from time to time
hereafter, such that the Executive would no longer have responsibilities
substantially equivalent to those of other presidents and general counsels at
companies with similar revenues and market capitalization;

     

     
(B)          the Executive
gives written notice to the Company of the facts and circumstances constituting
the breach of the Agreement within ten (10) days following the occurrence of the
breach;

     

     
(C)           the
Company fails to remedy the breach within ten (10) days following the
Executive’s written notice of the breach; and

     

     
(D)           the
Executive terminates his employment within ten (10) days following the Company’s
failure to remedy the breach; or

     

    (ii)         (A)           the
Company requires the Executive to relocate the Executive’s primary place of
employment to a new location, that is more than fifty (50) miles (calculated
using the most direct driving route) from its current location, without the
Executive’s consent;

     

     
(B)           the
Executive gives written notice to the Company within ten (10) days following
receipt of notice of relocation of his objection to the relocation;

     

     
(C)           the
Company fails to rescind the notice of relocation within ten (10) days following
the Executive’s written notice; and

     

     
(D)           the
Executive terminates his employment within ten (10) days following the Company’s
failure to rescind the notice.

     

    (j)           “Release” means a
comprehensive release, covenant not to sue, and non-disparagement agreement from
the Executive in favor of the Company, its executives, officers, directors,
Affiliates, and all related parties, in the form attached hereto as Exhibit
C.

     

    (k)           
“Term” has the
meaning as set forth in Section 3(a) hereof.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (l)           “Termination of
Employment” means
either that (a) the Executive has ceased to perform any services for the Company
and all affiliated companies that, together with the Company, constitute the
“service recipient” within the meaning of Section 409A of the Code and the
regulations thereunder (collectively, the “Service Recipient”) or (b) the level
of bona fide services the Executive performs for the Service Recipient after a
given date (whether as an employee or as an independent contractor) permanently
decreases (excluding a decrease as a result of military leave, sick leave, or
other bona fide leave of absence if the period of such leave does not exceed six
months, or if longer, so long as the Executive retains a right to reemployment
with the Service Recipient under an applicable statute or by contract) to no
more than twenty percent (20%) of the average level of bona fide services
performed for the Service Recipient (whether as an employee or an independent
contractor) over the immediately preceding 36-month period.

    

    (m)           “Trade Secrets” means
data and information relating to the Business of the Company or an Affiliate
including, but not limited to, technical or nontechnical data, formulae,
patterns, compilations, programs, devices, methods, techniques, drawings,
processes, financial data, financial plans, product plans or lists of actual or
potential customers or suppliers which (i) derives economic value, actual
or potential, from not being generally known to, and not being readily
ascertainable by proper means by, other persons who can obtain economic value
from its disclosure or use, and (ii) is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
Company and the Executive have each executed and delivered this Agreement as of
the date first shown above.

     

    
      
        
          
            
              
                	 
      	
                        COMPANY:

                      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                        Health
      Discovery Corporation

                      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                        By:

                      	/s/
      Stephen D. Barnhill	 
      
	 
      	 
      	
                        Stephen
      D. Barnhill, Chairman and CEO

                      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                        THE
      EXECUTIVE:

                      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	/s/
      R. Scott Tobin	 
      
	 
      	
                        R.
      Scott Tobin

                      	 
      

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
A

    

    
      
        
          	
                  None

                	 
      
	 
      	 
      

        

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
B

    

    
      
        
          	
                  Vesting Date

                	 
      	
                  Number of Options

                
	
                  April
      15, 2009

                	 
      	
                  1,000,000

                
	
                  January
      1, 2010

                	 
      	
                  1,500,000

                
	
                  September
      15, 2010

                	 
      	
                  2,000,000

                

        

      

    

    

    Each
portion of the option identified under the “Number of Options” column above
shall vest only if and when (1) the Executive has been continuously employed by
the Company through the applicable Vesting Date,  and (2) with respect
to the options that have Vesting Dates of January 1 and September 15, 2010 the
options shall not vest until either the Company has (i) cash on hand in excess
of $800,000, or (ii) a positive, trailing 90-day EBITDA, or (iii) raised an
additional $1,000,000 in capital from new investments, excluding any proceeds
from the exercise of any warrants or options.

    

    Notwithstanding
the foregoing, in the event of either (i) a termination of Executive by the
Company without Cause or by the Executive for Good Reason, or (ii) a Change in
Control occurs while the Executive is employed by the Company, the Executive
shall immediately become fully vested in all of the above referenced option
shares (as adjusted for any changes in capitalization as provided in any
applicable option agreement), provided that upon a Change of Control the per
share consideration received by shareholders of the Company on account of the
Change in Control is equal to or greater than $0.10 per share of Common Stock
(as adjusted for changes in capitalization as provided in any applicable option
agreement).  Change in Control”
means the consummation of (i) a merger, consolidation, share exchange,
combination, reorganization, or like transaction involving the Company in which
the shareholders of the Company immediately prior to such transaction do not own
at least fifty percent (50%) of the value or voting power of the issued and
outstanding capital stock of the Company or its successor immediately after such
transaction, or (ii) the sale or transfer (other than as security for the
Company's obligations) of all or substantially all of the assets of the Company
in any transaction or a series of related transactions, in which the Company,
any corporation controlled by the Company, or the shareholders of the Company
immediately prior to the transaction do not own at least fifty percent (50%) of
the value or voting power of the issued and outstanding equity securities of the
acquirer immediately after the transaction.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
C

    

    RELEASE,
AGREEMENT PURSUANT TO

    EMPLOYMENT
AGREEMENT

    

    This
Agreement (this “Agreement”) is made this ___ day of _____, 200_, by
_______________ (the “Employer”) and ________________ (the
“Employee”).

    

    Introduction

    

    Employee
and the Employer entered into an Employment Agreement dated ________, 200_ (the
“Employment Agreement”).

    

    The
Employment Agreement requires that as a condition to the Employer’s obligation
to pay payments and benefits under Section 3(c) of the Employment Agreement (the
“Severance Benefits”), Employee must provide a release and agree to certain
other conditions as provided herein.

    

    NOW,
THEREFORE, the parties agree as follows:

    

    
      
        	
                1.

              	
                Employee
      has been offered twenty-one (21) days from receipt of this Agreement
      within which to consider this Agreement. The effective date of this
      Agreement shall be the date eight (8) days after the date on which
      Employee signs this Agreement (“the Effective Date”). For a period of
      seven (7) days following Employee’s execution of this Agreement, Employee
      may revoke this Agreement, and this Agreement shall not become effective
      or enforceable until such seven (7) day period has expired. Employee must
      communicate the desire to revoke this Agreement in
      writing.  Employee understands that he or she may sign the
      Agreement at any time before the expiration of the twenty-one (21) day
      review period.  To the degree Employee chooses not to wait
      twenty-one (21) days to execute this Agreement, it is because Employee
      freely and unilaterally chooses to execute this Agreement before that
      time.  Employee’s signing of the Agreement triggers the
      commencement of the seven (7) day revocation period.

              
	 
      	 
      
	
                2.

              	
                In
      exchange for Employee’s execution of this Agreement and in full and
      complete settlement of any claims as specifically provided in this
      Agreement, the Employer will provide Employee with the Severance
      Benefits.

              
	 
      	 
      
	
                3.

              	
                Employee
      acknowledges and agrees that this Agreement is in compliance with the Age
      Discrimination in Employment Act and the Older Workers Benefit Protection
      Act and that the releases set forth in this Agreement shall be applicable,
      without limitation, to any claims brought under these
  Acts.

              
	 
      	 
      
	 
      	
                The
      release given by Employee in this Agreement is given solely in exchange
      for the consideration set forth in Section 2 of  this Agreement
      and such consideration is in addition to anything of value that Employee
      was entitled to receive prior to entering into this
    Agreement.

              
	 
      	 
      
	 
      	
                Employee
      has been advised to consult an attorney prior to entering into this
      Agreement and this provision of the Agreement satisfies the requirement of
      the Older Workers Benefit Protection Act that Employee be so advised in
      writing.

              
	 
      	 
      
	 
      	
                By
      entering into this Agreement, Employee does not waive any rights or claims
      that may arise after the date this Agreement is
  executed.

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                4.

              	
                This
      Agreement shall in no way be construed as an admission by the Employer
      that it has acted wrongfully with respect to Employee or any other person
      or that Employee has any rights whatsoever against the
      Employer.  The Employer specifically disclaims any liability to
      or wrongful acts against Employee or any other person on the part of
      itself, its employees or its agents.

              
	 
      	 
      
	
                5.

              	
                As
      a material inducement to the Employer to enter into this Agreement,
      Employee hereby irrevocably releases the Employer and each of the owners,
      stockholders, predecessors, successors, directors, officers, employees,
      representatives, attorneys, affiliates (and agents, directors, officers,
      employees, representatives and attorneys of such affiliates) of the
      Employer and all persons acting by, through, under or in concert with them
      (collectively, the “Releasees”), from any and all charges, claims,
      liabilities, agreements, damages, causes of action, suits, costs, losses,
      debts and expenses (including attorneys’ fees and costs actually incurred)
      of any nature whatsoever, known or unknown, including, but not limited to,
      rights arising out of alleged violations of any contracts, express or
      implied, any covenant of good faith and fair dealing, express or implied,
      or any tort, or any legal restrictions on the Employer’s right to
      terminate employees, or any federal, state or other governmental statute,
      regulation, or ordinance, including, without limitation: (1) Title VII of
      the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991
      (race, color, religion, sex, and national origin discrimination); (2) the
      Employee Retirement Income Security Act (“ERISA”); (3) 42 U.S.C. § 1981
      (discrimination); (4) the Americans with Disabilities Act (disability
      discrimination); (5) the Equal Pay Act; (6) the Age Discrimination in
      Employment Act; (7) the Older Workers Benefit Protection Act;  (6) Executive
      Order 11246 (race, color, religion, sex, and national origin
      discrimination); (7) Executive Order 11141 (age discrimination); (8)
      Section 503 of the Rehabilitation Act of 1973 (disability discrimination);
      (9) negligence; (10) negligent hiring and/or negligent retention;
      (11) intentional or negligent infliction of emotional distress or
      outrage; (12) defamation; (13) interference with employment;
      (14) wrongful discharge; (15) invasion of privacy; or
      (16) violation of any other legal or contractual duty arising under
      the laws of the State of Maryland or the laws of the United States
      (“Claim” or “Claims”), which Employee now has, or claims to have, or which
      Employee at any time heretofore had, or claimed to have, or which Employee
      at any time hereinafter may have, or claim to have, against each or any of
      the Releasees, in each case as to acts or omissions by each or any of the
      Releasees occurring up to and including the Effective
  Date.

              
	 
      	 
      
	
                6.

              	
                The
      release in the preceding paragraph of this Agreement does not apply to
      (a) all benefits and awards (including without limitation cash and
      stock components) which pursuant to the terms of any compensation or
      benefit plans, programs, or agreements of the Employer are earned or
      become payable, but which have not yet been paid, and (b) pay for
      accrued but unused vacation that the Employer is legally obligated to pay
      Employee, if any, and only if the Employer is so obligated,
      (c) unreimbursed business expenses for which Employee is entitled to
      reimbursement under the Employer’s policies, and (d) any rights to
      indemnification that Employee has under any directors and officers or
      other insurance policy the Employer maintains or under the bylaws and
      articles of incorporation of the Company, and under any indemnification
      agreement, if any.

              
	 
      	 
      
	
                7.

              	
                Employee
      promises that he will not make statements disparaging to any of the
      Releasees.  Employee agrees not to make any statements about any
      of the Releasees to the press (including without limitation any newspaper,
      magazine, radio station or television station) without the prior written
      consent of the Employer.  The obligations set forth in the two
      immediately preceding sentences will expire two years after the Effective
      Date.  Employee will also cooperate with the Employer and its
      affiliates if the Employer requests Employee’s testimony.  To
      the extent practicable and within the control of the Employer, the
      Employer will use reasonable efforts to schedule the timing of Employee’s
      participation in any such witness activities in a reasonable manner to
      take into account Employee’s then current employment, and will pay the
      reasonable documented out-of-pocket expenses that the Employer
      pre-approves and that Employee incurs for travel required by the Employer
      with respect to those
activities.

              

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      
        	
                9.

              	
                Except
      as set forth in this Section, Employee agrees not to disclose the
      existence or terms of this Agreement to anyone.  However,
      Employee may disclose it to a member of his immediate family or legal or
      financial advisors if necessary and on the condition that the family
      member or advisor similarly does not disclose these terms to
      anyone.  Employee understands that he will be responsible for
      any disclosure by a family member or advisor as if he had disclosed it
      himself.  This restriction does not prohibit Employee’s
      disclosure of this Agreement or its terms to the extent necessary during a
      legal action to enforce this Agreement or to the extent Employee is
      legally compelled to make a disclosure.  However, Employee will
      notify the Employer promptly upon becoming aware of that legal necessity
      and provide it with reasonable details of that legal
      necessity.

              
	 
      	 
      
	
                10.

              	
                Employee
      has not filed or caused to be filed any lawsuit, complaint or charge with
      respect to any Claim he releases in this Agreement.  Employee
      promises never to file or pursue a lawsuit, complaint or charge based on
      any Claim released by this Agreement, except that Employee may participate
      in an investigation or proceeding conducted by an agency of the United
      States Government or of any state.  Employee also has not
      assigned or transferred any claim he is releasing, nor has he purported to
      do so.

              
	 
      	 
      
	
                11.

              	
                The
      Employer and Employee agree that the terms of this Agreement shall be
      final and binding and that this Agreement shall be interpreted, enforced
      and governed under the laws of the State of Maryland.  The
      provisions of this Agreement can be severed, and if any part of this
      Agreement is found to be unenforceable, the remainder of this Agreement
      will continue to be valid and effective.

              
	 
      	 
      
	
                12.

              	
                This
      Agreement sets forth the entire agreement between the Employer and
      Employee and fully supersedes any and all prior agreements or
      understandings, written and/or oral, between the Employer and Employee
      pertaining to the subject matter of this Agreement.

              
	 
      	 
      
	
                13.

              	
                Employee
      is solely responsible for the payment of any fees incurred as the result
      of an attorney reviewing this agreement on behalf of
      Employee.  In any litigation concerning the validity or
      enforceability of this contract or in any litigation to enforce the
      provisions of this contract, the prevailing party shall be entitled to
      recover reasonable attorneys’ fees and costs, including court costs and
      expert witness fees and
costs.

              

      

    

     

    Employee’s
signature below indicates Employee’s understanding and agreement with all of the
terms in this Agreement.

     

    Employee
should take this Agreement home and carefully consider all of its provisions
before signing it. Employee may take up to twenty-one (21) days to decide
whether Employee wants to accept and sign this Agreement.  Also, if
Employee signs this Agreement, Employee will then have an additional
seven (7) days in which to revoke Employee’s acceptance of this Agreement
after Employee
has signed it.  This Agreement will not be effective or enforceable,
nor will any consideration be paid, until after the seven (7) day
revocation period has expired. Again, Employee is free and encouraged to discuss
the contents and advisability of signing this Agreement with an attorney of
Employee’s choosing.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    Employee
should read carefully.  This agreement includes a release of all known
and unknown claims through the effective date.  Employee is strongly
advised to consult with an attorney before executing this document.

    

    IN
WITNESS WHEREOF, Employee and the Employer have executed this agreement
effective as of the date first written above.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	EMPLOYEE	 
      
	 
      	 
      	 
      	 
      
	 
      	 	 
      
	 
      	
                                    Name

                                  	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                                    Date
      Signed

                                  	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	EMPLOYER:	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                                    By:

                                  	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                                    Title:

                                  	 
      	 
      

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

     

    4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]