On June 9, 2015, the Board of Directors of Medgenics, Inc., elected Barbara G. Duncan to fill one of its vacant directorships, effective July 22, 2015. In connection with Ms. Duncan's election as a Director, the Compensation Committee of the Company's Board of Directors recommended. In addition, as of June 9, 2015, the Company and Ms. Duncan entered into a non-executive director appointment letter agreement setting forth, among other things, Ms. Duncan's duties as a director.

Pursuant to the agreement, Ms. Duncan will be entitled to the same cash fees for her services as a director as the other non-executive directors of the Company. Ms. Duncan also agreed to maintain the confidentiality of all confidential business information, to disclose conflicts of interest to the Company and not to compete or solicit certain employees or other parties with which the Company does business for a period ending twelve months following the termination of her directorship.