Item 2.02 Results of Operations and Financial Condition.
On January 6, 2020, InspireMD, Inc. (the "Company") issued a press release
announcing its preliminary unaudited revenue for the fourth quarter ended
December 31, 2019, based on the information and data currently available. A copy
of this press release is attached hereto as Exhibit 99.1 and is incorporated
herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in this
Current Report on Form 8-K that is furnished pursuant to this Item 2.02 shall
not be deemed to be "filed" for the purposes of Section 18 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to
the liabilities of that section, and shall not be incorporated by reference into
any registration statement or other document filed under the Securities Act of
1933, as amended, or the Exchange Act, except as shall be expressly set forth by
specific reference in such filing.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
First Amendment to General Release and Severance Agreement with Departing CEO
As previously reported, on December 9, 2019, the Company entered into a General
Release and Severance Agreement (the "Separation Agreement") with James Barry,
Ph.D., the chief executive officer, president and Class 3 director of the
Company, pursuant to which Dr. Barry's employment with the Company and any
subsidiary of the Company ceased, and Dr. Barry resigned from all positions and
offices of the Company, including the board of directors, effective December 31,
2019. The Separation Agreement, among other things, provided that Dr. Barry is
entitled to receive an additional lump-sum payment of $25,000 payable on the
Company's first regularly scheduled payroll date on or next following December
17, 2019, which amount is intended to offset the costs of any executive
outplacement services or similar educational programs which may be incurred by
Dr. Barry (the "Outplacement Service Payment") on or after December 31, 2019.
On December 31, 2019, the Company and Dr. Barry entered into the First Amendment
to the Separation Agreement providing that the Outplacement Service Payment is
payable on the Company's first regularly scheduled payroll date occurring in
2020.
The foregoing summary of the First Amendment to the Separation Agreement does
not purport to be complete and is subject to, and qualified in its entirety by,
the full text of the First Amendment to the Separation Agreement, a copy of
which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is
incorporated herein by reference.
First Amendment to Employment Agreement with Newly Appointed CEO
As previously reported, on December 9, 2019, the Company entered into an
Employment Agreement with Marvin Slosman (the "Slosman Employment Agreement"),
pursuant to which Mr. Slosman will serve as the new chief executive officer and
president of the Company, commencing on January 1, 2020. The Slosman Employment
Agreement provided that, among other things, (i) the Company will grant Mr.
Slosman 5% of the Company's issued and outstanding common stock determined on a
fully diluted basis as of the date of grant (the "Equity Awards"), with 75% of
the Equity Awards being granted as restricted stock units and with the remaining
25% of the Equity Awards being granted as stock options, with the Equity Awards
subject to the terms and conditions of the Company's 2013 Long-Term Incentive
Plan (the "LTIP") and of the award agreements to be entered for the Equity
Awards; and (ii) on or before December 31, 2020, Mr. Slosman will become
eligible to receive an additional grant of equity awards under the LTIP and the
applicable award agreements up to 5% (including the Equity Awards) of the
Company's actual outstanding shares of common stock on the date of grant (the
"Potential Additional Equity Awards"), provided that the actual amount of the
grant shall be based on the achievement of certain performance/financial
criteria as established by the board of directors of the Company after
consultation with Mr. Slosman, in its reasonable discretion.
On December 31, 2019, the Company and Mr. Slosman entered into the First
Amendment to the Slosman Employment Agreement providing (i) that the Equity
Awards will be granted outside of the LTIP; (ii) the definition of the phrase
"fully diluted basis" as the sum of the total shares of common stock then
outstanding, the shares of common stock issuable upon the conversion of the
Company's then outstanding shares of Series B Convertible Preferred Stock and
Series C Convertible Preferred Stock and the shares of common stock issuable
upon the exercise of the Company's then outstanding pre-funded warrants; and
(iii) that the Potential Additional Equity Awards Mr. Slosman may receive on or
before December 31, 2020, shall be up to 5% (including the Equity Awards) of the
Company's issued and outstanding shares of common stock determined on a fully
diluted basis on the date of grant calculated using the definition of the phrase
"fully diluted basis" as set forth in the First Amendment to the Slosman
Employment Agreement. On January 2, 2019, the Company granted the Equity Awards
to Mr. Slosman, pursuant to the Slosman Employment Agreement, as amended.
As previously disclosed, Mr. Slosman, 55, has served as chief operating officer
for MEDCURA Inc. from May 2019 to December 2019. From September 2017 to
September 2019, Mr. Slosman served as a Business Consultant, overseeing
international commercial strategy and market development, at Integra Life
Sciences, a leading innovator in orthopedic extremity surgery, neurosurgery, and
reconstructive and general surgery. From 2010 to 2014 Mr. Slosman served as
President of Itamar Medical, Inc., a medical technology company focused on
cardiovascular and sleep diagnostics. Mr. Slosman also served as chief executive
officer of Ovalum Vascular Ltd. from 2008 to 2010. Mr. Slosman's qualifications
to serve on the board of directors of the Company include his significant
experience in senior management positions of leading medical device companies.
The foregoing summary of the First Amendment to the Slosman Employment Agreement
does not purport to be complete and is subject to, and qualified in its entirety
by, the full text of the First Amendment to the Slosman Employment Agreement, a
copy of which is filed as Exhibit 10.2 to this Current Report on Form 8-K and is
incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number Description
10.1 First Amendment to General Release and Severance Agreement, dated
December 31, 2019, by and between the Company and James Barry
10.2 First Amendment to Employment Agreement, dated December 31, 2019, by
and between the Company and Marvin Slosman
99.1 Press release, dated January 6, 2020 (furnished herewith pursuant to
Item 2.02)
© Edgar Online, source Glimpses