Document:

exv10w11

 

Exhibit 10.11

TopSpin Medical, Inc.

INDEMNIFICATION AGREEMENT

This INDEMNIFICATION AGREEMENT (the “Agreement”) is made as of                      by and between TopSpin
Medical, Inc., a Delaware corporation (the “Company”), and                      (“Indemnitee”).

	 	 	 
	WHEREAS,

	 	The Company desires to attract and retain qualified directors,
officers, employees and other agents (hereinafter collectively
“Office Holders”, and individually “Office Holder”), and to
provide them with protection against liability and expenses
incurred while acting in that capacity;
	 
	 	 
	WHEREAS,

	 	The Second Amended and Restated Certificate of Incorporation of
the Company (the “Certificate”) and the Amended and Restated
Bylaws of the Company (the “Bylaws”) contain provisions for
indemnifying Office Holders of the Company, and the Bylaws and
Delaware law contemplate that separate contracts may be entered
into between the Company and its Office Holders with respect to
their indemnification by the Company, which contracts may provide
greater protection than is afforded by the Certificate and
Bylaws;
	 
	 	 
	WHEREAS,

	 	The Company understands that Indemnitee has reservations about
serving or continuing to serve the Company without adequate
protection against personal liability arising from such service,
and that it is also of critical importance to Indemnitee that
adequate provision be made for advancing costs and expenses of
legal defense; and
	 
	 	 
	WHEREAS,

	 	The Board of Directors of the Company has approved as being in
the best interests of the Company indemnity contracts
substantially in the form of this Agreement for directors and
officers of the Company and its subsidiaries and for certain
other employees and agents of the Company designated by the Board
of Directors.

NOW, THEREFORE, in order to induce Indemnitee to serve or to continue to serve as an Office Holder
of the Company, and in consideration of Indemnitee’s service to the Company, the parties agree as
follows:

	1.	 	Contractual Indemnity. In addition to the indemnification provisions of the
Bylaws, the Company hereby agrees, subject to the limitations of Sections 2 and 5 hereof:
	 
	1.1.	 	To indemnify, defend and hold Indemnitee harmless to the greatest extent possible
under applicable law from and against any and all judgments, fines, penalties, amounts paid in
settlement and any other amounts reasonably incurred or suffered by Indemnitee (including
attorneys’ fees) in connection with any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative, including an action by
or in the right of the Company, to which Indemnitee is, was or at any time becomes a party, or
is threatened to be made a party, by reason of the fact that Indemnitee is, was or at any time
becomes an Office Holder of the Company or is or was serving or at any time serves at the
request of the Company as an Office Holder of another corporation, partnership, joint venture,
trust or other enterprise (collectively referred to hereafter as a “Claim”), whether or not
arising prior to the date of this Agreement.

 

 

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	1.2.	 	          To pay any and all expenses reasonably incurred by Indemnitee in defending any Claim
or Claims (including reasonable attorneys’ fees and other reasonable costs of investigation
and defense), as the same are incurred and in advance of the final disposition of any such
Claim or Claims, upon receipt of an undertaking by or on behalf of Indemnitee to reimburse
such amounts if it shall be ultimately determined that Indemnitee: (i) is not entitled to be
indemnified by the Company under this Agreement, and (ii) is not entitled to be indemnified by
the Company under the Certificate or the Bylaws.

The termination of any action or proceeding by judgment, order, settlement, conviction,
or upon a plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that: (i) Indemnitee did not act in good faith and in a manner
which Indemnitee reasonably believed to be in the best interests of the Company, or (ii)
with respect to any criminal action or proceeding, Indemnitee had reasonable cause to
believe that Indemnitee’s conduct was unlawful.

	2.	 	     Limitations on Contractual Indemnity. Indemnitee shall not be entitled to
indemnification or advancement of expenses under Section 1:
	 
	2.1.	 	          if a court of competent jurisdiction, by final judgment or decree, shall determine
that (i) the Claim or Claims in respect of which indemnity is sought arise from Indemnitee’s
fraudulent, dishonest or willful misconduct, or (ii) such indemnity is not permitted under
applicable law; or
	 
	2.2.	 	          on account of any suit in which judgment is rendered for an accounting of profits
made from the purchase or sale by Indemnitee of securities of the Company in violation of the
provisions of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or
similar provisions of any federal, state or local statutory law; or
	 
	2.3.	 	          for any acts or omissions or transactions from which an Office Holder may not be
indemnified under the Delaware General Corporation Law; or
	 
	2.4.	 	          with respect to proceedings or claims initiated or brought voluntarily by Indemnitee
and not by way of defense, except (i) with respect to proceedings brought in good faith to
establish or enforce a right to indemnification under this Agreement or any other statute or
law, or (ii) at the Company’s discretion, in specific cases if the Board of Directors of the
Company has approved the initiation or bringing of such suit; or
	 
	2.5.	 	          for expenses or liabilities of any type whatsoever (including, but not limited to,
judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement) which have
been paid directly to Indemnitee by an insurance carrier under a policy of directors’ and
officers’ liability insurance maintained by the Company; or
	 
	2.6.	 	          on account of any suit brought against Indemnitee for misuse or misappropriation of
non-public information, or otherwise involving Indemnitee’s status as an “insider” of the
Company, in connection with any purchase or sale by Indemnitee of securities of the Company.
	 
	3.	 	     Continuation of Contractual Indemnity. Subject to the termination provisions
of Section 11, all agreements and obligations of the Company contained herein shall continue
for so long as Indemnitee shall be subject to any possible action, suit, proceeding or other
assertion of a Claim or Claims.
	 
	4.	 	     Expenses; Indemnification Procedure. The Company shall advance all expenses
incurred by Indemnitee in connection with the investigation, defense, settlement or appeal of
any civil or criminal action or proceeding referenced in Section 1 hereof (but not amounts
actually paid in settlement of any such action or proceeding). Indemnitee hereby undertakes
to repay such amounts advanced if, and to the extent that, it shall ultimately be determined
that Indemnitee is not entitled to be indemnified by the Company as authorized hereby. The
advances to be made hereunder shall be paid by the Company to Indemnitee within twenty (20)
days following delivery of a written request therefor by Indemnitee to the Company.

 

 

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	5.	 	     Notification and Defense of Claim. If any action, suit, proceeding or other
Claim is brought against Indemnitee in respect of which indemnity may be sought under this
Agreement:
	 
	5.1.	 	          Indemnitee will promptly notify the Company in writing of the commencement thereof,
and the Company and any other indemnifying party similarly notified will be entitled to
participate therein at its own expense or to assume the defense thereof and to employ counsel
reasonably satisfactory to Indemnitee. Notice to the Company shall be directed to the Chief
Executive Officer of the Company at the address shown on the signature page of this Agreement
(or such other address as the Company shall designate in writing to Indemnitee). Notice shall
be deemed received three (3) business days after the date postmarked if sent by domestic
certified or registered mail, properly addressed; otherwise notice shall be deemed received
when such notice shall actually be received by the Company. Indemnitee shall have the right
to employ its own counsel in connection with any such Claim and to participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of Indemnitee
unless (i) the Company shall not have assumed the defense of the Claim and employed counsel
for such defense, or (ii) the named parties to any such action (including any impleaded
parties) include both Indemnitee and the Company, and Indemnitee shall have reasonably
concluded that joint representation is inappropriate under applicable standards of
professional conduct due to a material conflict of interest between Indemnitee and the
Company, in either of which events the reasonable fees and expenses of such counsel to the
Indemnitee shall be borne by the Company upon delivery to the Company of the undertaking
referred to in Section 1.2. However, in no event will the Company be obligated to pay the
fees or expenses of more than one firm of attorneys representing Indemnitee and any other
Office Holders of the Company in connection with any one Claim or separate but substantially
similar or related Claims in the same jurisdiction arising out of the same general allegations
or circumstances.
	 
	5.2.	 	          The Company shall not be liable to indemnify Indemnitee for any amounts paid in
settlement of any Claim effected without the Company’s written consent, and the Company shall
not settle any Claim in a manner which would impose any penalty or limitation on Indemnitee
without Indemnitee’s written consent; provided, however, that neither the Company nor
Indemnitee will unreasonably withhold its consent to any proposed settlement and, provided
further, that if a Claim is settled by the Indemnitee with the Company’s written consent, or
if there be a final judgment or decree for the plaintiff in connection with the Claim by a
court of competent jurisdiction, the Company shall indemnify and hold harmless Indemnitee from
and against any and all losses, costs, expenses and liabilities incurred by reason of such
settlement or judgment.
	 
	5.3.	 	          Indemnitee shall give the Company such information and cooperation as it may
reasonably require and as shall be within Indemnitee’s power.
	 
	5.4.	 	          Any indemnification provided for in Section 1 shall be made no later than forty-five
(45) days after receipt of the written request of Indemnitee. If a Claim under this
Agreement, under any statute, or under any provision of the Certificate or Bylaws providing
for indemnification, is not paid in full by the Company within forty-five (45) days after a
written request for payment thereof has first been received by the Company, Indemnitee may,
but need not, at any time thereafter bring an action against the Company to recover the unpaid
amount of the claim and, subject to Section 13 of this Agreement, Indemnitee shall also be
entitled to be reimbursed for the expenses (including attorneys’ fees) of bringing such
action. It shall be a defense to any such action (other than an action brought to enforce a
claim for expenses incurred in connection with any action or proceeding in advance of its
final disposition) that Indemnitee has not met the standards of conduct which make it
permissible under applicable law for the Company to indemnify Indemnitee for the amount
claimed but the burden of proving such defense shall be on the Company, and Indemnitee shall
be entitled to receive interim payments of expenses pursuant to Section 4 unless and until
such defense may be finally adjudicated by court order or judgment from which no further right
of appeal exists. It is the parties’ intention that if the Company contests Indemnitee’s
right to indemnification, the question of Indemnitee’s right to indemnification shall be for
the court to decide, and neither the failure of the Company (including its Board of Directors,
any committee or subgroup of the Board of Directors, independent legal counsel, or its
stockholders) to have made a determination that indemnification of Indemnitee is proper in the
circumstances because Indemnitee has met the applicable standard of conduct required by
applicable

 

 

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law, nor an actual determination by the Company (including its Board of Directors, any committee or
subgroup of the Board of Directors, independent legal counsel, or its stockholders) that Indemnitee
has not met such applicable standard of conduct, shall create a presumption that Indemnitee has or
has not met the applicable standard of conduct.

	5.5.	 	          If, at the time of the receipt of a notice of a Claim, the Company has director and
officer liability insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the procedures set forth in
the respective policies. The Company shall thereafter take all necessary or desirable action
to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of
such proceeding in accordance with the terms of such policies.
	 
	6.	 	     Scope. Notwithstanding any other provision of this Agreement, the Company
hereby agrees to indemnify the Indemnitee against any Claim to the fullest extent permitted by
law, notwithstanding that such indemnification is not specifically authorized by the other
provisions of this Agreement, the Certificate, the Bylaws or by statute. In the event of any
change, after the date of this Agreement, in any applicable law, statute or rule which expands
the right of a Delaware corporation to indemnify its Office Holders, such changes shall be,
ipso facto, within the purview of Indemnitee’s rights and Company’s
obligations, under this Agreement. In the event of any change in any applicable law, statute,
or rule which narrows the right of a Delaware corporation to indemnify its Office Holders,
such changes, to the extent not otherwise required by applicable law to be applied to this
Agreement, shall have no effect on this Agreement or the parties’ rights and obligations
hereunder.
	 
	7.	 	     Partial Indemnification. If Indemnitee is entitled under any provision of
this Agreement to indemnification by the Company for some or a portion of the expenses,
judgments, fines or penalties actually or reasonably incurred by him in the investigation,
defense, appeal or settlement of any civil or criminal action or proceeding, but not, however,
for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the
portion of such expenses, judgments, fines or penalties to which Indemnitee is entitled.
	 
	8.	 	     Public Policy. Both the Company and Indemnitee acknowledge that in certain
instances, Federal law or applicable public policy may prohibit the Company from indemnifying
its Office Holders under this Agreement or otherwise. Indemnitee understands and acknowledges
that the Company has undertaken or may be required in the future to undertake with the
Securities and Exchange Commission to submit the question of indemnification to a court in
certain circumstances for a determination of the Company’s right under public policy to
indemnify Indemnitee.
	 
	9.	 	     Insurance. Although the Company may from time to time maintain insurance for
the purpose of indemnifying Indemnitee and other Office Holders of the Company against
personal liability, including costs of legal defense, nothing in this Agreement shall obligate
the Company to do so.
	 
	10.	 	     No Restrictions. The rights and remedies of Indemnitee under this Agreement
shall not be deemed to exclude or impair any other rights or remedies to which Indemnitee may
be entitled under the Certificate or Bylaws, or under any other agreement, provision of law or
otherwise, nor shall anything contained herein restrict the right of the Company to indemnify
Indemnitee in any proper case even though not specifically provided for in this Agreement, nor
shall anything contained herein restrict Indemnitee’s right to contribution as may be
available under applicable law.
	 
	11.	 	     Termination. The Company may terminate this Agreement at any time upon 90
days written notice, but any such termination will not affect Claims relating to events
occurring prior to the effective date of termination.
	 
	12.	 	     Severability. Each of the provisions of this Agreement is a separate and
distinct agreement and independent of the others, so that if any provision hereof shall be
held to be invalid or unenforceable for any reason, such invalidity or unenforceability shall
not affect the validity or enforceability of the other provisions hereof.
	 
	13.	 	     Attorneys’ Fees. In the event of any litigation or other action or
proceeding to enforce or interpret this Agreement, the prevailing party as determined by the
court shall be entitled to an award of

 

 

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its reasonable attorneys’ fees and other costs, in addition to such relief as may be awarded by a
court or other tribunal.

	14.	 	     Further Assurances. The parties will do, execute and deliver, or will cause
to be done, executed and delivered, all such further acts, documents and things as may be
reasonably required for the purpose of giving effect to this Agreement and the transactions
contemplated hereby.
	 
	15.	 	     Acknowledgment. The Company expressly acknowledges that it has entered into
this Agreement and assumed the obligations imposed on the Company hereunder in order to induce
Indemnitee to serve or to continue to serve as an Office Holder of the Company, and
acknowledges that Indemnitee is relying on this Agreement in serving or continuing to serve in
such capacity.
	 
	16.	 	     Construction of Certain Phrases.
	 
	16.1.	 	          “Company”: For purposes of this Agreement, references to the “Company”
shall also include, in addition to the resulting corporation in any consolidation or merger to
which TopSpin Medical, Inc. is a party, any constituent corporation (including any constituent
of a constituent) absorbed in consolidation or merger which, if its separate existence had
continued, would have had power and authority to indemnify its Office Holders, so that if
Indemnitee is or was an Office Holder of such constituent corporation, or is or was serving at
the request of such constituent corporation as an Office Holder of another corporation,
partnership, joint venture, trust or other enterprise, Indemnitee shall stand in the same
position under the provisions of this Agreement with respect to the resulting or surviving
corporation as Indemnitee would have with respect to such constituent corporation if its
separate existence had continued.
	 
	16.2.	 	          Benefit Plans: References to “fines” contained in this Agreement shall
include any excise taxes assessed on Indemnitee with respect to an employee benefit plan; and
references to “serving at the request of the Company” shall include any service as an Office
Holder of the Company which imposes duties on, or involves services by, such Office Holder
with respect to an employee benefit plan, its participants, or beneficiaries.
	 
	17.	 	     Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and
receipted for by the party addressee, on the date of such receipt, or (ii) if mailed by
domestic certified or registered mail with postage prepaid, on the third business day after
the date postmarked. Addresses for notice to either party are as shown on the signature page
of this Agreement, or as subsequently modified by written notice.
	 
	18.	 	     Governing Law; Binding Effect; Amendment.
	 
	18.1.	 	          This Agreement shall be interpreted and enforced in accordance with the laws of the
State of Delaware applicable to contracts entered into in Delaware and any dispute arising
from or in connection with this Agreement shall be submitted to the sole and exclusive
jurisdiction of the competent court in the State of New York.
	 
	18.2.	 	          This Agreement shall be binding upon Indemnitee and the Company, their successors
and assigns, and shall inure to the benefit of Indemnitee, his heirs, personal representatives
and assigns and to the benefit of the Company, its successors and assigns.
	 
	18.3.	 	          No amendment, modification, termination or cancellation of this Agreement shall be
effective unless in writing signed by both parties hereto.

 

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 	 	 	 	 
	 	 	“Company”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TopSpin Medical, Inc.	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	“Indemnitee”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Signature of Indemnitee)
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Social Security Number)
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:exv10w12wi

 

Exhibit 10.12 (i)

Date: April 6th, 2006

To:

Ms. Ora Setter

Re: Indemnification for VAT payments

Dear Madam,

On November 30, 2005 you were appointed to serve as an External Director of TopSpin Medical Inc.
(“TopSpin”). On November 7, 2005 the Board of Directors of TopSpin approved that each of the
External Directors of TopSpin will be entitled to certain considerations for the services provided
by them to TopSpin in such capacity (the “Consideration”).

After consulting with its tax advisors, no Value Added Taxes (“VAT”) should be born by you with
respect to the Consideration.

This letter is to confirm to you TopSpin’s undertaking, that if you will be required by the Israeli
tax authorities to pay VAT with respect to the Consideration, TopSpin will indemnify you with
respect to such amounts, subject to any applicable law, TopSpin incorporation documents and to the
following terms: (a) you will inform TopSpin immediately and in writing after you become aware of
any claim, demand or other action or proceeding (actual or potential), if a claim for
indemnification in respect thereof can be made by you under this letter (“Claim”); and (2) TopSpin
will be entitled to defend and settle, on your behalf, such Claim, and you will assist TopSpin to
defense or settle such Claim, including, without limitation, by issuing authorization letters or
proxies to TopSpin and its professional advisors to act on you behalf.

Our agreement is conditioned upon you acceptance of the terms of indemnification with your
signature hereunder.

Sincerely yours,

TopSpin Medical Inc.

I agree:

                                        

Ora Setter

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