# EDGAR Filing Document

**Accession Number:** 0001137883
**File Stem:** 0001104659-23-000640
**Filing Date:** 2023-1
**Character Count:** 49039
**Document Hash:** 892c38d5c97e66689d7495a08885f4b6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-000640.hdr.sgml**: 20230104

**ACCESSION NUMBER**: 0001104659-23-000640

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20230103

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230104

**DATE AS OF CHANGE**: 20230104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BRAINSTORM CELL THERAPEUTICS INC.
- **CENTRAL INDEX KEY:** 0001137883
- **STANDARD INDUSTRIAL CLASSIFICATION:** BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
- **IRS NUMBER:** 207273918
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36641
- **FILM NUMBER:** 23504377

**BUSINESS ADDRESS:**
- **STREET 1:** 1325 AVENUE OF AMERICAS
- **STREET 2:** 28TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019
- **BUSINESS PHONE:** 201-488-0460

**MAIL ADDRESS:**
- **STREET 1:** 1325 AVENUE OF AMERICAS
- **STREET 2:** 28TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BRAINSTORM CELL THERAPEUTICS INC
- **DATE OF NAME CHANGE:** 20041122

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** GOLDEN HAND RESOURCES INC
- **DATE OF NAME CHANGE:** 20030827

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WIZBANG TECHNOLOGIES INC
- **DATE OF NAME CHANGE:** 20010409

?xml version="1.0" encoding="utf-8"?

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM 8-K** 

**CURRENT REPORT** 

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** 

Date of Report (Date of earliest event reported): January 3, 2023

**Brainstorm Cell Therapeutics Inc.** 

*(Exact name of registrant as specified in its charter)* 

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-36641** | **20-7273918** |
| *(State or other jurisdiction of <br> incorporation)* | *(Commission File No.)* | *(IRS Employer Identification No.)* |

---

---

| | |
|:---|:---|
| **1325 Avenue of Americas, 28th Floor** |  |
| **New York, NY** | **10019** |
| *(Address of principal executive offices)* | *(Zip Code)* |

---

**(201) 488-0460** 

*(Registrant's telephone number, including area code)* 

**N/A** 

*(Former name or former address, if changed since last report)* 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | |
|:---|:---|
| Title of each class | Name of each exchange on which registered |
| Common Stock, $0.00005 par value BCLI | &nbsp;&nbsp; NASDAQ Stock Market LLC<br> (Nasdaq Capital Market) |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

**Item 1.01 Entry into a Material Definitive Agreement.**

The information contained in Item 5.02 below is incorporated by reference into this Item 1.01.

The description of the Lindborg Amendment (as defined below) with Dr. Stacy Lindborg does not purport to be complete and is qualified in its entirety by the full text of Amendment No. 3 to Offer Letter Agreement, a copy of which is filed hereto as Exhibit 10.1 and is incorporated herein by reference.

The description of the Kern Separation Agreement (as defined below) with Dr. Ralph Kern does not purport to be complete and is qualified in its entirety by the full text of the Kern Separation Agreement, a copy of which is filed hereto as Exhibit 10.2 and is incorporated herein by reference.

**Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

***Amendment No. 3 to Stacy Lindborg's Offer Letter Agreement***

On January 3, 2023, Brainstorm Cell Therapeutics Inc. (the "Company") and Dr. Stacy Lindborg entered into an amendment (the "Lindborg Amendment") to Dr. Lindborg's offer letter agreement (the "Lindborg Agreement"). Pursuant to the Lindborg Amendment, Dr. Lindborg will be appointed to the position of Co-Chief Executive Officer of the Company. In connection with her appointment, and pursuant to the Lindborg Amendment, Dr. Lindborg will receive a Base Salary (as defined in the Lindborg Agreement) of $500,000. Dr. Lindborg will also be eligible to receive (i) an annual merit performance increase of 5% of her Base Salary, which shall be effective as of January 1 of every year, (ii) an annual cash bonus of 40% of the Base Salary, and (iii) a one-time bonus in the form of an equity grant (the "Equity Grant") of up to 250,000 shares of restricted common stock of the Company, $0.00005 par value per share ("Common Stock") under the Company's 2014 Stock Incentive Plan (or any successor or other equity plan then maintained by the Company). The Equity Grant shall vest as to twenty-five percent (25%) of the award on each of the first, second, third and fourth anniversary of the date of grant, provided Dr. Lindborg remains continuously employed by the Company from the date of grant through each applicable vesting date. The Equity Grant shall be subject to accelerated vesting upon a Change of Control (as defined in the Lindborg Agreement and Lindborg Amendment) of the Company, subject to Board approval. In the event of Dr. Lindborg's termination of employment, any portion of the Equity Grant that is not yet vested (after taking into account any accelerated vesting) shall automatically be immediately forfeited to the Company, without the payment of any consideration to Dr. Lindborg. In the event that the Company terminates the Lindborg Agreement or the Executive's employment without cause or if Dr. Lindborg terminates the Agreement or employment with good reason, the Company shall pay Dr. Lindborg an amount equal to six months of the Base Salary, subject to delivery and execution of a full and general waiver and release to the Company. If within six months of a Change in Control Dr. Lindborg's employment is terminated without cause or due to disability or death, the Company shall provide an amount equal to 12 months of the Base Salary, any portion of bonus compensation that Dr. Lindborg would otherwise be entitled to receive, and accelerated vesting of the Equity Grant as described above, subject to delivery and execution of a full and general waiver and release to the Company.

***Ralph Kern Separation Agreement***

 ****

On January 3, 2023, the Company and Dr. Ralph Kern entered into a separation agreement (the "Kern Separation Agreement"). Effective as of January 3, 2023, the Kern Separation Amendment terminates the employment agreement previously entered into between the Company and Dr. Kern on February 28, 2017. The Kern Separation Agreement provides, among other things, that Dr. Kern shall be eligible to receive, in exchange for agreeing and complying with the terms of the Kern Separation Agreement, including the release it contains, (i) a payment of $250,000, payable within 90 days of January 20, 2023 (the "Kern Separation Date"), (ii) a grant of 150,000 non-restricted shares of Common Stock, which shall be granted 90 days after the Kern Separation Date, and (iii) a payment of $125,000 as prorated annual bonus compensation, payable within 30 days of the Kern Separation Date. In addition, all unvested equity and/or equity-based awards that would have vested during the six months following the Kern Separation Date shall vest immediately upon the Kern Separation Date and be treated as described in the preceding sentence.

Effective as of the Kern Separation Date, Dr. Kern will become a member of the Company's Scientific Advisory Board, which advises the management team on scientific matters such as research, clinical trials and drug development. In connection with Dr. Kern's appointment to the Scientific Advisory Board, the Company will enter into a consulting agreement (the "Kern Consulting Agreement"), effective as of the Kern Separation Date, with Dr. Kern. Pursuant to the Kern Consulting Agreement, Dr. Kern will provide scientific advisory board consulting services to the Company for $450 per hour for up to ten hours each month, for an initial term of two years, unless earlier terminated in accordance with the terms of the Kern Consulting Agreement.

On January 4, 2023, the Company issued a press release announcing the promotion of Dr. Lindborg and the retirement of Dr. Kern, a copy of which is filed as Exhibit 99.1 hereto and incorporated herein by reference.

**Item 9.01 Financial Statements and Exhibits.**

*(d) Exhibits.* 

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [10.1](tm231494d1_ex10-1.htm) | [Amendment No. 3 to Offer Letter Agreement, dated January 3, 2023, between Brainstorm Cell Therapeutics Inc. and Dr. Stacy Lindborg.](tm231494d1_ex10-1.htm) |
| [10.2](tm231494d1_ex10-2.htm) | [Separation Agreement, effective January 20, 2023, between Brainstorm Cell Therapeutics Inc. and Dr. Ralph Kern.](tm231494d1_ex10-2.htm) |
| [99.1](tm231494d1_ex99-1.htm) | [Press release dated January 4, 2023.](tm231494d1_ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **BRAINSTORM CELL THERAPEUTICS INC.** | **BRAINSTORM CELL THERAPEUTICS INC.** |
| Date: January 4, 2023 | By: | /s/ Chaim Lebovits |
|  |  | Chaim Lebovits |
|  |  | Chief Executive Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

CONFIDENTIAL

**AMENDMENT No. 3 TO OFFER LETTER AGREEMENT**

This **AMENDMENT NO. 3 TO OFFER LETTER AGREEMENT** (the "**Amendment**") is effective as of the date on which the last party executes this Amendment ("**Amendment Effective Date**"), by and between BRAINSTORM CELL THERAPEUTICS INC., a Delaware corporation with a mailing address of 1325 Avenue of Americas, 28th Floor New York, NY 10019 (the "**Company**"), and DR. STACY LINDBORG, an individual (the "**Executive**").

<u>WITNESSETH</u>:

**WHEREAS**, Company and Executive entered into that certain Offer Letter Agreement, effective as of June 1, 2020 (as amended, modified and supplemented and as may be amended, restated, modified and supplemented from time to time, the "**Agreement**"); and

**WHEREAS**, Company and Executive desire to amend and clarify the terms of their Agreement as provided in this Amendment.

**NOW**, **THEREFORE**, it is hereby agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. The Executive shall be appointed Co-CEO.

&nbsp;&nbsp;&nbsp;&nbsp;2. The terms of the Agreement are hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Paragraph iv of the Agreement is hereby amended by amending subsection (a) as follows, with defined
terms having their respective meanings in the Agreement:

Section (iv)a. shall be amended such that the Base Salary, as defined therein, shall be raised to USD$500,000 instead of USD$469,000.

In addition, the following language shall be added at the end of Section (iv)a: "Executive will be eligible to receive an annual merit performance increase of 5% of her Base Salary, which shall be effective as of January 1 of every year ("Merit Increase"). The determination whether or not to grant Executive a Merit Increase shall be made during the month of December of every year, based on a combination of the Company's and Executive's performance throughout that given year, and will be granted subject to the recommendation of the Company's CEO and approval of the Company's Board of Directors. "

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. Paragraph (iv) of the Agreement is hereby amended by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1 amending clause (b) such that the annual cash bonus shall be raised from 35% of the
Base Salary to 40% of the Base Salary; in addition –

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2 a new clause (b.1) shall be inserted which shall come immediately after clause (b)
and be in addition to the existing bonus language which appears in clause (b) and which was amended herein in clause 2.2.1. The new clause
(b.1) shall read as follows, with defined terms having their respective meanings
in the Agreement:

In addition to the cash bonus you are eligible to receive, as per Section (b) above, you shall also be eligible to receive a one-time bonus, in the form of an equity grant, in accordance with the following provisions: Subject to your satisfaction of pre-established performance goals, as determined by the Board of Directors or any applicable committee of the Board, you shall receive a grant of restricted stock under the Company's 2014 Stock Incentive Plan (or any successor or other equity plan then maintained by the Company) comprised of up to 250,000 shares of restricted common stock of the Company (such number subject to equitable and proportionate adjustment in the case of a stock split, reverse stock split or similar corporate event as determined by the Compensation Committee in its sole discretion) (the "Equity Grant"). Each Equity Grant shall be contingent upon your execution of one or more restricted stock agreements in such form and substance as may reasonably be determined by the Company. Each Equity Grant shall vest as to twenty-five percent (25%) of the award on each of the first, second, third and fourth anniversary of the date of grant, provided you remain continuously employed by the Company from the date of grant through each applicable vesting date. Each Equity Grant shall be subject to accelerated vesting upon a Change of Control (as defined below) of the Company and such other accelerated vesting as provided in this Agreement or the Plan (and any award agreement evidencing such grant, to the extent such award agreement contains more preferential terms). In the event of your termination of employment, you shall retain your right to any vested shares (after taking into account any accelerated vesting) and any portion of the Equity Grant that is not yet vested (after taking into account such accelerated vesting) shall automatically be immediately forfeited to the Company, without the payment of any consideration to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. Paragraph (ix)(c) of the Agreement is hereby amended such that in the event that
the Company terminates the Agreement or the Executive's employment without cause or if the Executive terminates the Agreement or
employment with Good Reason, the Company shall pay the Executive as severance pay, an amount equal to (6) months of the Base Salary.

In addition, Upon Termination Following Change of Control the following provisions shall apply. If at any time within six (6) months after a Change of Control of the Company (as defined herein) has occurred, the Executive's employment is terminated by the Company or any successor company for any reason other than for Cause or the Executive's Disability or death, the Company shall pay or provide Executive with the following within ninety (90) days of such Termination of employment: (a) an amount equal to 12 months of her then current Base Salary; and (b) any portion of the bonus compensation that Executive would otherwise be entitled to receive until the termination date (giving credit for those milestones and performance goals that Executive successfully completed through the termination date); and (c) accelerated vesting of the Equity Grant, as noted above in Section 2.2.

Notwithstanding anything to the contrary, no compensation of any kind shall be payable to the Executive unless or until Executive executes and delivers a full and general waiver and release to the Company (in favor of the Company, its successors, assigns, Board members, officers, employees, affiliates, subsidiaries, parent companies and representatives, in a form reasonable acceptable to the Company, such waiver and release to be delivered by Executive within 10 days after termination of his employment (unless applicable law requires a longer time period, in which case this date will be extended to the minimum time required by applicable law).

Definition of Change of Control. "Change of Control" means the first to occur of any of the following: (a) any "person" or "group" (as defined in the Securities Exchange Act of 1934) becomes the beneficial owner of a majority of the combined voting power of the then outstanding voting securities with respect to the election of the Board of Directors of the Company; (b) any merger, consolidation or similar transaction involving the Company, other than a transaction in which the stockholders of the Company immediately prior to the transaction hold immediately thereafter in the same proportion as immediately prior to the transaction not less than 50% of the combined voting power of the then voting securities with respect to the election of the Board of Directors of the resulting entity; or (c) any sale of all or substantially all of the assets of the Company. Notwithstanding the foregoing, no change in ACCBT Corp., ACC International Holdings Ltd. or their affiliates' ownership of the Company shall be deemed a Change of Control under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as above amended, the Agreement is and shall remain in full force and effect
and binding upon the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. This Amendment may be executed in counterparts, each of which shall be an original,
but all of which shall constitute one and the same instrument. A signed copy of this Amendment delivered by facsimile, e-mail or other
means of electronic transmission will be deemed to have the same legal effect as delivery of an original signed copy hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. This Amendment shall be governed under the laws of the State of New York.

**IN WITNESS WHEREOF**, this Amendment has been executed as of the Amendment Effective Date.

---

| | |
|:---|:---|
| **THE COMPANY:** | **THE COMPANY:** |
| **BRAINSTORM CELL THERAPEUTICS INC.** | **BRAINSTORM CELL THERAPEUTICS INC.** |
| By: | /s/ Chaim Lebovits |
| Name: Chaim Lebovits | Name: Chaim Lebovits |
| Title: President and Chief Executive Officer | Title: President and Chief Executive Officer |
| **THE EXECUTIVE:** | **THE EXECUTIVE:** |
| By: | /s/ Stacy Lindborg |
| Name: Stacy Lindborg | Name: Stacy Lindborg |

---

## Exhibit 10.2

**Exhibit 10.2**

**<u>SEPARATION AGREEMENT</u>**

This **SEPARATION AGREEMENT** (this "Agreement") is effective as of the date on which the last Party executes this Agreement (the "Effective Date"), by and between Ralph Kern, an individual with a mailing address of 959 First Avenue, New York, NY 10022 ("Executive"), and Brainstorm Cell Therapeutics Inc., a company registered under the laws of the State of Delaware with its principal place of business at 1325 Avenue of Americas, 28th Floor New York City, New York 10019 (the "Company" and, together with Executive, the "Parties" and each, a "Party").

WHEREAS, pursuant to that certain Employment Agreement, dated February 28, 2017 and amended March 3, 2017 (the "Employment Agreement"), Executive was employed by Company since March 6, 2017; and

WHEREAS, the Executive has expressed his desire to retire from his current role at the Company and the Parties have mutually decided to reach an amicable separation and end the Employment Period, as defined in the Employment Agreement, as of January 20, 2023 (the "Separation Date"); and

WHEREAS, the Executive and the Company have decided to part ways on very amicable and mutually respectful terms, while continuing the positive cooperation between them. Accordingly, the Company would like the Executive to join the Company's Scientific Advisory Committee and the Executive is also interested in doing so, and the Parties intend (but are not obligated) to enter into a separate agreement to that effect;

WHEREAS, Company and Executive wish to set forth certain promises, agreements, and understandings in this Agreement with respect to Executive's Separation and the termination of the Employment Agreement and Executive's employment with Company.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the legal sufficiency of which is hereby acknowledged, Company and Executive do hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1. <u>Reserved.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Separation; Agreements Hereunder</u>. Executive's employment with Company shall end as of the Separation Date. In exchange for Executive's agreeing to and complying with the terms of this Agreement (including the release(s) it contains), Company shall remit to Executive the following amounts: (A) USD$250,000 payable within 90 days after the Separation Date; (B) a grant of 150,000 non-restricted shares of common stock of the Company, $0.00005 par value, which shall be granted 90 days after the Separation Date and covered by an effective registration statement; and (C) USD$125,000 as Executive's prorated annual Bonus Compensation (i.e., 30% of Base Salary, prorated from March until December 2022) payable within 30 days of the Separation Date (collectively, the "Separation Amount"). Executive shall retain ownership of all vested equity and/or equity-based awards previously received, including common stock, RSUs and options, which shall no longer be subject to any Company plan or restriction. In addition, all unvested equity and/or equity-based awards that would have vested during the six months that follow the Separation Date shall vest immediately upon the Separation Date and be treated as

described in the preceding sentence.<sup>1</sup> Additionally, the Company shall continue to provide or pay the cost of continuing the Executive's and his eligible dependent's health and dental insurance benefits for up to one year, unless the Executive becomes eligible for health and dental insurance benefits provided by a new employer, in which case the Executive shall notify the Company immediately and the Company shall cease providing health and dental insurance benefits upon the start date of such new benefits (the Separation Amount, the accelerated vested equity and the health and dental insurance benefits shall collectively be called the "Total Separation Package"). The Parties hereby acknowledge and agree that the Total Separation Package is being granted by Company to Executive in exchange for the release of Company by Executive set forth in Section 5 below and Company does not owe Executive any further compensation, remuneration, reimbursements or other payments of any kind whatsoever, other than payment of Base Salary and existing benefits through the Separation Date. For the avoidance of doubt, the Parties hereby agree that as of the Separation Date and continuing thereafter, Company is and will continue to be under no obligation whatsoever to engage Executive or receive any further services from Executive. For the avoidance of doubt, the Separation Amount shall be paid to Executive in accordance with Company's standard payroll procedures and policies, including without limitation, less any and all applicable deductions and withholdings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>No other Compensation or Equity</u>. Except for the Total Separation Package, Executive acknowledges and agrees that Company does not owe him any further compensation, remuneration, bonus, incentive, benefits, severance, commission, or other employment payments of any kind whatsoever, other than payment of Base Salary and existing benefits through the Separation Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Return of Property</u>. Executive hereby represents and acknowledges that he has returned or will return to Company upon the Separation Date any and all files or other property of Company, including but not limited to laptop, computer materials, identification card, office equipment and supplies, and records, without retaining any copies or extracts thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Release</u>. Executive, with the intention of binding himself, his agents, attorneys, heirs, executors, administrators and assigns, does hereby irrevocably and unconditionally forever release and discharge Company, and its current and former subsidiaries, parents, and other direct or indirect affiliates, as well as each of their respective stockholders, partners, heirs, executors, administrators, agents, employees, officers, directors, successors, insurers, assigns and attorneys, of and from any and all manner of actions, cause or causes of action, suits, debts, sums of money, costs, interests, attorneys' fees, liabilities, charges, claims, counterclaims and demands, whatsoever, in law or in equity or otherwise, that Executive now has or may have, whether mature, direct, derivative, subrogated, personal, assigned, both known and unknown, foreseen or unforeseen, contingent or actual, liquidated or unliquidated, arising from the beginning of the world until the date that Executive signs this Agreement, including, but not limited to, any claims arising in any way out of his employment with Company or the termination of his employment by way of his Separation to Company, other than any specific claims that may arise as a direct result of the Company's failure to comply with the provisions of this Agreement. The foregoing release of claims by Executive includes, but is not limited to, any and all claims under the Age Discrimination in Employment Act ("ADEA"), 29 U.S.C. § 621 *et seq.*, the Americans with Disabilities Act ("ADA"), 42 U.S.C. § 12101 *et seq.*, the Civil Rights Act of 1991, 42 U.S.C. § 1981a *et seq.*, the Family and Medical Leave Act ("FMLA"), Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e *et seq.*, the Corporate and Criminal Fraud Accountability Act of 2002, (the "Sarbanes-Oxley Act"), the Dodd–Frank Wall Street Reform and Consumer Protection Act, the New York State Human Rights Law, N.Y. Exec. Law § 296 *et seq.*, and the New York City Human Rights Law, NYC Admin. Code § 8-101 *et seq.*, or any other similar federal, state, or municipal statutes or ordinances prohibiting discrimination or pertaining to employment, and any contract, tort, or common law theories with respect to Executive's hiring by Company, the terms and conditions of his employment with Company, or his Separation from Company thereof.

<sup>1</sup> Note: Executive holds as of today 215,310 RSUs of which 125,598 are currently vested and 89,713 unvested. The 35,885 RSUs currently scheduled to vest on March 6, 2023 shall accelerate and vest upon the Separation Date, after which 161,483 RSUs would be fully vested and 53,827 will be unvested.

Executive holds as of today 80,000 BCLI options at $8 strike price, of which 20,000 are currently vested and 60,000 not yet vested. All remaining 60,000 options are currently scheduled to vest on March 9, 2023 and shall accelerate and vest upon the Separation Date, after which all 80,000 options would be fully vested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Representations</u>. Executive represents that Executive has not filed against Company (and/or its parent, subsidiaries, affiliates or any of their respective stockholders, partners (former or current), agents, officers, employees or directors) any complaints, charges or lawsuits arising out of Executive's employment or any other matter concerning Company arising on or prior to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7. <u>Confidential Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties agree to keep the terms of this Agreement, including the monetary terms set forth above, strictly confidential, except as otherwise required by applicable laws; provided, however, that each party may disclose the terms of this Agreement to its accountant and attorney.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By virtue of Executive's employment with Company, Executive acknowledges and agrees that he has had access to Company's Confidential Information. "Confidential Information" refers to any and all proprietary non-public information relating and/or belonging to Company and/or related persons, whether in oral, written, graphic or machine-readable form, including without limitation: the names of customers or clients, referral sources, pricing lists (including item and client specific pricing information); proprietary purchasing and sales methods and techniques; pricing methods and strategies; databases, computer software design and/or improvements; market studies; proposed or existing marketing techniques or plans; future Company business plans; information on current and potential clients or customers, referral sources, suppliers and supplies; and the identity of various suppliers/vendors of products and services; know-how, trade secrets, formulas, techniques, customer information or lists, affiliate information or lists, employee lists, inventions, improvements, concepts and ideas; business plans and proposals, technical data, research reports, designs and specifications, flow charts, diagrams or similar data, cost or profit information, equipment specifications, performance or productivity standards, maintenance and record keeping techniques; and any information that is of value or significance to Company and/or related persons that derives independent economic value, actual or potential, including information not generally known to the competitors of Company and/or related persons nor intended by Company and/or related persons for general dissemination, regardless of whether any of such information, data or documents qualify as "trade secrets" under applicable federal or state law. Confidential Information also includes, but is not limited to, all proprietary technologies, know-how, trade secrets, discoveries, inventions, any information that is related to manufacturing methods, clinical data, clinical trials results, business plans or product pricing, and any other intellectual property (whether or not patented), analyses, compilations, business or technical information and other proprietary materials prepared by Company, its affiliates, or any of their representatives, containing or based in whole or in part on any Confidential Information of Company. Executive agrees that, except as expressly authorized by Company in writing, he will not at any time, in perpetuity, disclose to any person or use any Confidential Information whatsoever for any purposes whatsoever, or permit any person whatsoever to examine, use and/or make copies of materials in any media, tangible or otherwise, embodying any Confidential Information. "Confidential Information" shall not include information that (i) is or becomes generally available to the public through no breach by Executive, or (ii) is required to be disclosed pursuant to any applicable law or judicial order applicable to the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that Executive receives a subpoena or court order requesting that Executive disclose Confidential Information, Executive shall (if permitted by law) immediately notify Company of the subpoena or court order in writing and provide Company with a copy of the subpoena or court order within three (3) business days of Executive's receipt thereof. Executive acknowledges that the purpose of this notice requirement is to provide Company adequate opportunity to oppose any subpoena or court order requiring disclosure of the Confidential Information, and agrees that notice shall be given to Company prior to the disclosure by Executive of any Confidential Information. Executive's disclosure of Confidential Information as requested by a subpoena or court order shall not constitute a breach of this Agreement if disclosure is made after giving notice and a copy of the subpoena or court order to Company, and Company either fails to object or Company's objections are overruled by a court of law. Failure to give notice and a copy of the subpoena or court order to Company shall constitute a breach of this Agreement by Executive, unless Executive was prohibited from providing such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event of any alleged breach of this confidentiality provision or the Confidentiality Obligations in the Employment Agreement by Executive, Company may apply to a court of competent jurisdiction to determine whether there has in fact been a breach, and for appropriate relief. In any proceeding to enforce the terms of this Agreement, the Agreement may be introduced under seal to maintain its confidentiality. Executive understands and agrees that the damages to Company of any such breach of the confidentiality provision will be extremely difficult to determine. Because of this difficulty, Executive agrees that in the event of such breach, Executive must forfeit up to all monies paid to him under this Agreement. Executive further agrees to indemnify Company for any and all fees and costs it incurs in connection with any such recovery. Notwithstanding any such relief, all of the other terms of this Agreement including, without limitation, Executive's release of all claims against Company, shall remain in full force and effect. The remedies provided for in this provision shall not be construed to be exclusive and do not bar any other claims for relief, either at law or equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Reserved</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Non-Solicitation</u>. Executive agrees that, in addition to his obligations under the Employment Agreement, from the Separation Date and for a period of 2 years hereafter, Executive will not solicit, entice, persuade, induce or influence, directly or indirectly, any individual who is an employee or contractor of Company or has otherwise received an offer of employment from Company to terminate his/her employment with Company, and Executive shall not approach any individual for any such purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Entire Agreement</u>. Company and Executive each represent and warrant that no promise or inducement has been offered or made except as herein set forth and that the consideration stated herein is the sole consideration for this Agreement. This Agreement is a complete and entire agreement and states fully all agreements, understandings, promises and commitments as between Company and Executive and as to the termination of their relationship, and this Agreement supersedes and cancels any and all other negotiations, understandings and agreements, oral or written, respecting the subject matter hereof. Notwithstanding the foregoing, it is hereby agreed that the relevant provisions from the Employment Agreement that survive termination in accordance with the terms therein, including those relating to Executive's Confidentiality Obligations, Assignment of Inventions, Ownership of Copyrights, Litigation, Non Interference with Customer Accounts, Non Competition, Non Disparagement, shall continue to be in full force and effect and survive termination of the Employment Agreement, as per Section 11(p) of the Employment Agreement. This Agreement may not be modified except by an instrument in writing signed by the party against whom the enforcement of any waiver, change, modification, or discharge is sought. If any provision of this Agreement or the application thereof is held invalid, such invalidation shall not affect other provisions or applications of this Agreement and to this end, the provisions of this Agreement are declared to be severable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Assignability</u>. This Agreement is personal to Executive and he may not assign, pledge, delegate, or otherwise transfer any of his rights, obligations, or duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Counterparts</u>. This Agreement may be executed in counterparts, and each counterpart, when executed, shall have the efficacy of a signed original. Digital copies of such signed counterparts may be used in lieu of the originals for any purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Non-admissibility</u>. Nothing contained in this Agreement, or the fact of its submission to a party, shall be admissible evidence against a party in any judicial, administrative, or other legal proceeding (other than an action for breach of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Execution of this Agreement</u>. By signing this Agreement, each party expressly acknowledges and agrees that it has: (a) been given ample time in which to consider this Agreement before executing it, or that it has voluntarily waived such time; (b) been advised in writing to discuss this Agreement with an attorney before signing it; and (c) has agreed to this Agreement knowingly and voluntarily and was not subjected to any undue influence or duress.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Choice of Law; Venue</u>. Any disputes concerning the interpretation or application of this Agreement or in any way connected with Executive's employment with Company, or separation thereof, shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflicts of laws rules thereof, and the parties submit to jurisdiction in the State and Federal courts located in New York, New York.

\*\*\*\*\*

**IN WITNESS WHEREOF**, the parties hereto have executed and delivered this Agreement as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **BRAINSTORM CELL THERAPEUTICS INC.** | **BRAINSTORM CELL THERAPEUTICS INC.** | **EXECUTIVE** | **EXECUTIVE** |
| **By:** | /s/ Chaim Lebovits | **By:** | /s/ Ralph Kern |
| **Name:** | Chaim Lebovits | **Name:** | Ralph Kern |
| **Title:** | Chief Executive Officer | **Title:** | In his individual capacity |

---

## Exhibit 99.1

**Exhibit 99.1**

![](tm231494d1_ex99-1img001.jpg)

**BrainStorm Cell Therapeutics Announces Promotion of**

**Dr. Stacy Lindborg to Co-Chief Executive Officer**

**NEW YORK, January 4, 2023** - BrainStorm Cell Therapeutics Inc. (NASDAQ: BCLI), a leading developer of adult stem cell therapeutics for neurodegenerative diseases, today announced the promotion of Dr. Stacy Lindborg to the role of Co-Chief Executive Officer. This promotion launches a targeted capability build which will be led by Dr. Lindborg, to hire and bring expertise inside BrainStorm, preparing for success.

Dr. Lindborg, who joined BrainStorm in 2020 and is based in the U.S., brings to her expanded role more than 25 years of pharmaceutical industry experience in R&D, strategy development, regulatory, and analytics. She will work alongside Mr. Chaim Lebovits, who is retaining his position as President and CEO. In addition, Dr. Ralph Kern will retire from his current role as President and Chief Medical Officer in January 2023 and will continue to support BrainStorm as part of the company's Scientific Advisory Board.

"I am pleased to announce Stacy's promotion to Co-CEO which is part of a broader strategic initiative to build out our leadership team and position BrainStorm for success," said Chaim Lebovits, President and Chief Executive Officer of BrainStorm. "Stacy is a strong, collaborative leader who is passionate about transforming the lives of patients through innovation. Her track record in late-stage clinical development and commercial strategy means that she is exceptionally well qualified to guide BrainStorm as we prepare to enter our next phase as a company. I look forward to working with Stacy as we execute on our ultimate goals -- to make NurOwn available to patients and to create value as a commercial organization."

"It has been the focus of my career to drive innovation at the heart of drug development and to bring forward life-altering medicines for patients in need. BrainStorm has produced and developed NurOwn, a novel cell treatment, generating compelling data that I am more convinced than ever holds the promise to be a valuable treatment for patients who are suffering. Having worked closely with Chaim over the past two years, I am incredibly impressed by his dedication to patients, the breadth of experience and business insights he brings to his job on a daily basis, and his unique ability to invest and build for the long term," Dr. Lindborg commented. "I couldn't be more thrilled to transition into this expanded role at BrainStorm. Together with Chaim and our talented team at BrainStorm, I will relentlessly focus on the regulatory process to secure a path with FDA with the goal to make NurOwn available for ALS patients."

Mr. Lebovits added "I would like to thank Ralph for his important contributions and dedicated service over the past six years as Chief Medical Officer. I am pleased that he will remain actively involved with BrainStorm as a member of our Scientific Advisory Board and I look forward to his continued contributions."

**Stacy Lindborg, Ph.D.** joined BrainStorm in 2020 serving most recently as Executive Vice President and Chief Development Officer. Her experience includes senior roles at Eli Lilly & Company and Biogen. At Biogen she was Vice President, Analytics and Data Science, and managed a team that contributed in material ways towards the regulatory approval of products such as Spinraza®. At Eli Lilly & Company, she held positions of increasing responsibility including Head of R&D Strategy, where she was responsible for characterizing the productivity of the portfolio and driving key R&D strategy projects including the annual R&D Long-Range Plan. She was also Leader of Zyprexa Product Management in which she was responsible for R&D, Commercial and Manufacturing plans. She was accountable for driving market share through product differentiation, global registration and launching of an injectable form of Zyprexa, working through regulatory manufacturing inspections and 483 citations. Zyprexa had peak sales of $4.7 billion. Dr. Lindborg holds a Ph.D. in statistics from Baylor University. She serves on the Scientific Advisory Board of biotechnology and technology companies and on the board of directors of Imunon, Inc. and the Massachusetts Down Syndrome Congress.

**About NurOwn®**

The NurOwn® technology platform (autologous MSC-NTF cells) represents a promising investigational therapeutic approach to targeting disease pathways important in neurodegenerative disorders. MSC-NTF cells are produced from autologous, bone marrow-derived mesenchymal stem cells (MSCs) that have been expanded and differentiated ex vivo. MSCs are converted into MSC-NTF cells by growing them under patented conditions that induce the cells to secrete high levels of neurotrophic factors (NTFs). Autologous MSC-NTF cells are designed to effectively deliver multiple NTFs and immunomodulatory cytokines directly to the site of damage to elicit a desired biological effect and ultimately slow or stabilize disease progression.

**About BrainStorm Cell Therapeutics Inc.**

BrainStorm Cell Therapeutics Inc. is a leading developer of innovative autologous adult stem cell therapeutics for debilitating neurodegenerative diseases. The Company holds the rights to clinical development and commercialization of the NurOwn® technology platform used to produce autologous MSC-NTF cells through an exclusive, worldwide licensing agreement. Autologous MSC-NTF cells have received Orphan Drug designation status from the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) for the treatment of amyotrophic lateral sclerosis (ALS). BrainStorm has completed a Phase 3 pivotal trial in ALS (NCT03280056); this trial investigated the safety and efficacy of repeat-administration of autologous MSC-NTF cells and was supported by a grant from the California Institute for Regenerative Medicine (CIRM CLIN2-0989), and a grant from IAMALS and the ALS Association. BrainStorm completed under an investigational new drug application a Phase 2 open-label multicenter trial (NCT03799718) of autologous MSC-NTF cells in progressive MS and was supported by a grant from the National MS Society (NMSS).

**Safe-Harbor Statement** 

Statements in this announcement other than historical data and information, including statements regarding BrainStorm's interactions with the FDA and the clinical development of NurOwn® as a therapy for the treatment of ALS, constitute "forward-looking statements" and involve risks and uncertainties that could cause BrainStorm Cell Therapeutics Inc.'s actual results to differ materially from those stated or implied by such forward-looking statements. Terms and phrases such as "intend," "should," "could," "will," "believe," "potential," and similar terms and phrases are intended to identify these forward-looking statements. The potential risks and uncertainties include, without limitation, management's ability to successfully achieve its goals, BrainStorm's ability to raise additional capital, BrainStorm's ability to continue as a going concern, prospects for future regulatory approval of NurOwn®, whether BrainStorm's interactions with the FDA, including the upcoming Type A meeting, will have productive outcomes, the impacts of the COVID-19 pandemic on our clinical trials, supply chain, and operations, and other factors detailed in BrainStorm's annual report on Form 10-K and quarterly reports on Form 10-Q available at <u>http://www.sec.gov</u>. These factors should be considered carefully, and readers should not place undue reliance on BrainStorm's forward-looking statements. The forward-looking statements contained in this press release are based on the beliefs, expectations, and opinions of management as of the date of this press release. We do not assume any obligation to update forward-looking statements to reflect actual results or assumptions if circumstances or management's beliefs, expectations or opinions should change, unless otherwise required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements.

**CONTACTS**

Investor Relations:

John Mullaly

LifeSci Advisors, LLC

Phone: +1 617-429-3548

<u>jmullaly@lifesciadvisors.com</u>

Media:

Lisa Guiterman

<u>lisa.guiterman@gmail.com</u>