Document:

Exhibit
10.1

 

ENZON PHARMACETICALS, INC

Amended and Restated 2013 Outside Director
Compensation Plan

 

Annual Retainers:

 

On an annual basis, outside directors will receive:

 

	a cash retainer of $30,000

	an additional cash retainer of $10,000 for services as chair
of the Audit and Finance Committee; and

	an additional amount cash retainer of $5,000 for services as
a member of the Audit and Finance Committee

The cash elements above are to be paid quarterly at the end
of each quarter, beginning with the third quarter of calendar 2013.EXHIBIT 10.1

 

Health Discovery Corporation

4243 Dunwoody Club Drive

Suite 202

Atlanta, Georgia 30340

 

August 6, 2013

 

 

Dear Fellow Owners of Health Discovery
Corporation,

 

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

 

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

 

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

 

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

 

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

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

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

 

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

 

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

 

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

 

    	

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    	

    	 

    

 

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

 

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

 

We look forward to hearing from you.

 

With kind regard on behalf of Health Discovery Corporation,

 

 

 

/s/ Kevin Kowbel

 

Kevin Kowbel

Interim Chief Executive Officer and Chairman

 

Forward-Looking Statements 

This document contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject
to risks and uncertainties, including, without limitation, statements regarding future performance, opportunities and investments,
and anticipated results in general. From time to time the Company may make other forward-looking statements in relation to other
matters, including without limitation, commercialization plans and strategic partnerships. Actual results may differ materially
due to a variety of factors, including, among other things, the acceptance of our approach to applying mathematics computer science
and physics into the disciplines of biology, organic chemistry and medicine and our products and technologies associated with those
approaches, the ability to develop and commercialize new drugs, therapies, medical devices, or other products based on our approaches,
and other factors set forth from time to time in the Company’s Securities and Exchange Commission filings.

 

All forward-looking statements and cautionary
statements included in this document are made as of the date hereof based on information available to the Company as of the date
hereof, and the Company assumes no obligation to update any forward-looking statement or cautionary statement.EX-10.1

 Exhibit 10.1 

 
 

 
 August 5, 2013 
 Jeffrey H. Cooper 
 8345 Coventry Court 
 Granite Bay, CA 95746 
 Re: Resignation and Separation Agreement 

Dear Jeff, 
 You have informed of us of your
intent to resign from your position as Chief Financial Officer and retire due to personal circumstances. While we regret your decision to retire, we certainly respect your wishes and appreciate your desire to work with KaloBios in a smooth
transition process over the coming months. This letter agreement, when signed by both parties, will constitute your tender and our acceptance of your resignation, to be effective on the Termination Date as defined below, and our agreement on the
transition process and the terms of your separation from KaloBios. Again, we appreciate your service to KaloBios and wish you the very best going forward. 
  

	1.	This Separation Agreement (this “Agreement”) is entered into between KaloBios Pharmaceutical Inc., including its officers, directors, managers, agents, and
representatives (collectively, the “Company”) and Jeffrey H. Cooper (“Employee”). The purpose of this Agreement is to accept Employee’s resignation, and to agree upon a separation of Employee’s employment with Company
on a basis that is satisfactory both to the Company and to the Employee. 

  

	2.	Employee’s termination date for all purposes will be December 31, 2013 (the “Termination Date”). Prior to that date, as of November 16, 2013
(the “Part-Time Date”), Employee’s employment shall change from a full time executive officer and Chief Financial Officer to a part time non-executive employee senior advisor available for up to thirty (30) hours per week. From
the Part-Time Date to the Termination Date, Employee shall make himself reasonably available by telephone and email, and to the extent practical, in person at a mutually agreeable location, to answer questions and assist the Company in any matters
as appropriate. The change in Employee’s full time employment from CFO to senior advisor status may be accelerated to any earlier date that the Company may elect, so long as it provides at least fourteen (14) days advance notice to
Employee. Regardless of the timing of that change, the Employee shall continue to be entitled to compensation through November 15, 2013 at the same rate as his current salary as CFO. From the Part-Time Date through the Termination Date,
Employee will be compensated as provided in section 4 below. 

  

	3.	For the sake of clarity, it is understood and agreed that Employee is voluntarily resigning from his employment in order to retire, and that in no way has Employee been
asked to resign or terminate his employment. By entering into this Agreement, Company has accepted his resignation on the terms provided herein, and both parties wish to provide for clarity in his separation. Both Employee and Company are entering
into this Agreement as a way of concluding the employment relationship between them. Employee wishes to provide for a smooth transition to his successor, to remain available for full time service until the Part-Time Date, and on a part-time, on call
basis thereafter until the Termination Date. 

  
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	4.	Company agrees to continue Employee’s salary as of the date of this Agreement through the Termination Date, subject to adjustment as of the Part-Time Date. From
that date until the Termination Date, Employee will continue to provide services to the Company to assist in the transition of his current responsibilities for a maximum of thirty (30) hours per week at a salary of two thousand dollars ($2,000)
per week through the Termination Date. All appropriate payroll taxes will be deducted therefrom. Notwithstanding the foregoing, the Company may in its discretion modify Employee’s title to Senior Advisor at any time and for any reason,
including but not limited to the hiring of a successor Chief Financial Officer or equivalent. Regardless of the above, the title change to senior advisor will take effect no later than November 16 or upon the hiring of a new CFO if earlier.

  

	5.	Employee will continue to be eligible to participate in the Company’s medical benefits plan from the date hereof through the Termination Date on the same basis on
which he participated as of the date hereof. Company agrees to pay Employee’s medical coverage as elected as of the date of this Agreement, through the Termination Date, subject to any employee contribution required of employees electing the
same coverage. 

  

	6.	(a) For the purposes of Employee’s unvested stock options, it is understood and agreed that service in accordance with this Agreement shall constitute Service
for the purposes of unvested options, and Employee shall continue to vest according to the applicable vesting schedule through the Termination Date. Nothing in this Agreement is meant either to cancel or to accelerate the vesting of unvested
options, or to affect the time for exercise or other attributes of Employee’s stock options. (b) The Company, subject to Compensation Committee approval, will provide an adjusted pro-rata bonus for the period April 1 through
November 15, based on all relevant factors, including Employee’s performance before and after the date of this Agreement, his willingness to work through the transition period provided for in this Agreement, and the achievement of Company
goals. For the sake of clarity, Employee is eligible for participation in the bonus program subject to potential proration as stated above, but whether the Employee becomes entitled to any bonus under this paragraph remains entirely within the
discretion of the Compensation Committee, which will consider achievement by the Company of corporate objectives in addition to Employee’s personal objectives. 

 

	7.	Employee agrees and understands that after the Termination Date he will no longer be eligible to participate in the Company’s short or long-term disability plans,
health insurance plans or other company sponsored insurance, except for COBRA coverage, and that after the Termination Date, he will no longer be eligible to contribute to the Company’s 401(k) Retirement Savings Plan, or participate in any
other employee benefit plans. Nothing in this Agreement is intended to affect or prevent Employee’s ability to elect COBRA coverage at his expense for COBRA-eligible health and welfare plans consistent with what the Employee was enrolled in as
of the date of this Agreement, provided, however, Employee must timely elect COBRA coverage by completing the COBRA enrollment forms sent by the COBRA Administrator. 

 

	8.	Employee agrees that he will submit any business expense reports to the Company consistent with Company policy and timing prior to the Termination Date, with any final
reports to be submitted within fifteen (15) days after the Termination Date, and the Company agrees to pay all such properly submitted expense reports subject to Company policy in accordance with its customary procedures.

  

	9.	Employee agrees that on or before the Termination Date he shall immediately return to the Company all Company property, including but not limited to all computer
equipment, mobile devices, keys, key cards, security badges, passwords, tangible proprietary information, documents, books, records, reports, customer and contact lists, computer files and data (and any copies thereof), which exist in any medium,
which were prepared or obtained by Employee in the course of or incident to his employment. 

  
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	10.	Employee warrants and represents that he has not and will not improperly disclose any non-public Company materials, documents, or other confidential information
(“Confidential Information”) to third parties. Employee acknowledges and agrees that violation(s) of the foregoing shall render this Agreement null and void. Employee further agrees and stipulates that disclosure of Confidential
Information may result in irreparable harm to Company for which monetary damages would be inadequate to compensate, and that any such improper disclosure of Confidential Information will entitle the Company to seek injunctive relief. Employee
understands and agrees that the provisions of his Proprietary Information and Inventions Assignment Agreement shall remain in full force and affect according to its terms, before and after the Termination Date. 

 

	11.	For the sake of clarity, it is understood and agreed that Employee is voluntarily resigning from his employment in order to retire, and that in no way has Employee been
asked to resign or terminate his employment. Employee agrees that the foregoing payments and benefits (and any expense reimbursements as provided herein) shall constitute all money and benefits owed or payable to Employee, including all amounts due
under his employment letter agreements with the Company dated on April 23, 2012 and July 5, 2012, (together, the “Employment Agreement”), and that Employee is not entitled to and will not seek any further compensation from the
Company for any other claims, damages, costs or attorneys fees. Company and Employee agree that the terms of this Agreement shall supersede and to the extent necessary to give effect to this Agreement, amend and modify the Employment Agreement. In
case of a conflict between this Agreement and the Employment Agreement, this Agreement shall control. To the extent not modified by this Agreement, the Employment Agreement shall control. 

 

	12.	Employee understands that: 

  

	 	12.1.	Employee should carefully read and fully understand all of the terms of the Agreement; 

 

	 	12.2.	Employee knowingly and voluntarily agrees to all of the terms set forth in this Agreement; 

 

	 	12.3.	Employee knowingly and voluntarily intends to be legally bound by this Agreement; 

 

	 	12.4.	Employee was advised and hereby is advised in writing to consult with an attorney of Employee’s choice prior to signing this Agreement; and

  

	13.	Employee will cooperate with requests for information or assistance that the Company may make from time to time up until Employee’s Termination Date.

  

	14.	Employee agrees that for two (2) years after the Termination Date, Employee will not directly or indirectly solicit, hire or encourage the soliciting or hiring of
any individual employed by the Company or any of its subsidiaries. Employee also agrees that for two (2) years after the Termination Date, Employee will not directly or indirectly induce any individual employed by the Company or any of its
subsidiaries to leave the Company or subsidiary for any reason whatsoever. 

  

	15.	In light of his voluntary resignation, Employee will not make a claim for unemployment benefits, and if he does so, Company reserves the right to review and correct or
confirm Employee’s reason for termination as a voluntary resignation, if necessary or requested by the Employment Development Department. 

  
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	16.	Should any provision of this Agreement be determined by any court to be wholly or partially illegal, invalid or unenforceable, the legality, validity and enforceability
of the remaining provisions shall not be affected, and said illegal, unenforceable or invalid provisions shall be deemed not to be a part of this Agreement. 

 

	17.	Employee and Company agree that any prior communications that may have referenced certain notice and termination benefits are superseded by this Agreement, for which
good and valuable consideration has been exchanged. 

  

	18.	Employee and Company agree that this Agreement contains their complete and final agreement and that there are no representations, statements, or agreements that have
not been included within this Agreement. 

  

	19.	Employee and Company acknowledge that in signing this Agreement, they do not rely upon and have not relied upon any representation or statement made by any of the
parties or their agents with respect to the subject matter, basis or effect of this Agreement, other than those specifically stated in this written Agreement. 

 

	20.	This Agreement shall be binding upon Employee and Company, the parties to this Agreement and upon their heirs, administrators, representatives, executors and assigns.
Employee expressly warrants that Employee has not transferred to any person or entity any rights, causes of action or claims released in this Agreement. 

  

	21.	This Agreement shall be interpreted, enforced and governed by the laws of the state of California without regard or giving effect to its conflict of laws principles.
Employee and Company agree that any litigation regarding the application and interpretation or alleged breach of this Agreement shall be brought in the state courts of San Mateo County, California or in the United States District Court for the
Northern District of California. Employee and Company agree to submit to the exclusive jurisdiction and venue of those courts. 

  

	22.	This Agreement may be executed in several counterparts, including by facsimile, .pdf file, or photocopied signature, each of which shall be an original, but all of
which together shall constitute one and the same agreement. 

 Jeff, again I want to wish you the very best in your retirement and
express my appreciation for your service to KaloBios. I look forward to working with you on transition matters prior to your departure from the Company. 
  

			
	 Sincerely,

	
	 KALOBIOS PHARMACEUTICALS INC.

		
	 By:
	 	 /s/ David Pritchard

	 David Pritchard, President and CEO
  

Date: August 5, 2013

  
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 AGREED TO AND ACCEPTED as of the 5th day of August, 2013, including without limitation tender of
resignation to be effective as of the Termination Date: 
  

	
	 /s/ Jeffrey H. Cooper

	 Jeffrey H. Cooper

  
 5

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