Biomoda Inc., Advanced Optics Electronics Inc., and Leslie S. Robins entered into a settlement agreement and release to settle, between these three parties only, claims made, arising out of, related to, or which could have been made by and between them through April 22, 2009 in the pending federal lawsuit entitled Advanced Optics Electronics Inc., ethal. v Leslie S. Robins, ethal. No. CIV-2007-00855, JB/DJS, U.S. District Court for the District of New Mexico and other relevant suits including Advanced Optics Electronics Inc., ethal. v. Biomoda Inc., ethal., No. CV-2007-06529, Dist. Ct., Bernalillo Co., and Advanced Optics Electronics Inc., ethal. v. Biomoda Inc., et al., No. CV-2007-07065, Dist. Ct., Bernalillo Co. Pursuant to the Settlement, in addition to executing a release in favor of Biomoda, Robins took the following action: paid $10,000 to Biomoda and delivered to Biomoda all Biomoda documents within his possession or control; resigned from any position he may claim to hold or claim he should hold as an officer or director of Biomoda; transferred all shares of Biomoda stock currently held by Robins or by any family member or other person, corporation or entity in which he has anycontrol, which consisted of 747,000 shares; and agreed to not ever acquire any Biomoda shares in the future. In addition, pursuant to the Settlement, Michael Pete and John J. Cousins resigned as directors and officers of ADOT on April 22, 2009, and following such resignation, the remaining two directors of ADOT (Leslie S. Robins and Dr. Linda Obenour) appointed Leslie S. Robins as Chairman, Chief Executive Officer and President of ADOT, approved ADOT's execution and delivery of Settlement and all actions contemplated thereby. Thus, on April 22, 2009, ADOT transferred to Biomoda all shares of Biomoda stock currently held by ADOT and released Biomoda from all ADOT claims, including claims related to a promissory note dated May 1, 2002 or any sums allegedly owed to ADOT by Biomoda. As previously reported in a Current Report on Form 8-K filed January 14, 2009, Biomoda discovered that no loan to Biomoda from ADOT was ever consummated nor monies exchanged and Biomoda wrote off the $1,030,748 debt with regard to the ADOT loan.