Document:

Exhibit 10.2

Exhibit 10.2

CONSULTING AGREEMENT

This Consulting Agreement (the “Agreement”) is made effective as of January 28, 2010, by and
between TopSpin Medical (Israel) Ltd. (the “Company”) of 65 Rothchild, Tel-Aviv Israel, TopSpin
Medical, Inc. (the “Parent”) and Nichsey F.N.
Fatal Ltd. (the “Consultant”).

WHEREAS, Mr. Fufi Fatal, Israeli ID number 56549371, the controlling
shareholder of the Consultant (“Fufi”), is a director of the
Company, the Chairman of the board of the Company as well as a
director of the Parent and Chairman of the Parent’s board of
directors; and

WHEREAS, the Company wishes the Consultant, solely through Fufi, to
perform certain Services (as defined below) and the Consultant is
willing to provide such Services through Fufi, all subject to the
terms and conditions of this Agreement.

NOW, THEREFORE, the parties hereby agree as follows:

	 	1	 	Consultancy.

	 	1.1	 	Consulting Period. The Consultant shall serve as a consultant to the Company and the Parent
(collectively, together with the Parent and with any other subsidiary of the Company or the
Parent, the “Group”) in respect of the Services for a period commencing on the date of this
Agreement and continuing until termination of this Agreement in accordance with Section 8
below (the “Consulting Period”).

	 
	 	1.2	 	Experience. The Consultant represents that it (including Fufi) has the capability, know-how,
expertise and experience necessary to perform the Services. The Consultant, through Fufi, will
devote sufficient time and efforts to performing the Services under this Agreement, as may be
required to accomplish the duties described below.

	 
	 	1.3	 	No Conflicts. The Consultant represents that the performance of the Services or any other
duties and obligations of the Consultant hereunder do not and will not conflict with, or
breach, any prior agreement, contract, patent disclosure agreement, non-competition agreement,
any restrictive covenant relating to the involvement whatsoever of each of the Consultant and
Fufi with the Group or any other instrument to which the Consultant or Fufi are a party or by
which they are bound. Consultant shall immediately and without delay inform the Group’s Boards
of Directors (the “Boards”) of any affairs and/or matters that might constitute a conflict of
interest with the provision of Services. Consultant will inform the Group of any other
potential conflict of interests with its business at the relevant time.

	 
	 	1.4	 	Reliance. Consultant understands that the Group is relying on the representations made by
Consultant in this Section 1 in making its decision to enter into this Agreement.

	 	2	 	Services. The Consultant agrees and undertakes to provide the Services exclusively through Fufi. During the Consulting Period, Consultant, solely
through Fufi, shall provide consulting services, as may reasonably be requested by the Boards (the “Services”). The Consultant shall provide at least 80
hours of Services per month. The Consultant undertakes to perform its duties and obligations under this Agreement with the highest degree of
professionalism. The Consultant shall devote its know-how, expertise, talent, experience and best efforts to the performance of the Services, and shall
act to promote the Group’s business and affairs, and performs and discharges the Services faithfully, with devotion, honesty and fidelity. The parties
agree that during the consulting period the Consultant and Fufi shall be entitled to engage in any business or professional activity whatsoever subject
to limitation of any applicable law. The Consultant shall report to, and provide its services under the direction of, the Company’s Board.

 

 

 

	 	3	 	Legal Relationship; Independent Contractor. The parties hereto acknowledge that the legal relation between the Group and Consultant’s employees,
including Fufi (the “Employees”), is limited in the manner expressly provided herein. Notwithstanding anything contained herein to the contrary, the
parties hereto acknowledge and agree that neither shall be deemed to be an employee, partner or a joint venturer of the other. Without limiting the
foregoing, the Consultant shall be solely responsible for all its federal, state and local income taxes, unemployment insurance tax, social security tax
and cell-phone related taxes. Both parties agree to the following:

	 	3.1	 	The Consultant (including its Employees) is an independent contractor, not an employee of the
Company or any other member of the Group. The Group shall not be responsible for the
Consultant or its Employees’ acts while performing the Services hereunder, whether on the
Group’s premises or elsewhere. By signing this Agreement, the Consultant acknowledges and
agrees that as a Consultant to the Group neither the Consultant nor it’s Employees’ are
entitled to receive from the Group or any other member of the Group any social benefits
(including without limitation, paid vacation days, paid sick leave, severance payments,
pension funds, etc.).

	 
	 	3.2	 	Whereas the Consultant prefers to be engaged by the Group as a consultant instead of as its
employee, prefers that no employer-employee relations be established between himself and the
Group and prefers to provide the Services, at his own initiative and free will and based on
the Fufi’s and Consultant’s sole considerations.

	 
	 	3.2	 	Each of the Group and the Consultant (including any of its Employees) is stopped from making
any claim regarding the existence of employer-employee relations between the Consultant’s
Employees and the Company or any other member of the Group.

	 
	 	3.3	 	If, despite the parties’ express representations and agreements hereunder, it shall, at any
time, be determined by a court of competent jurisdiction or by any other governmental
authority, that employer-employee relations exist between the any member of the Group and the
Consultant’s Employees and, the Consultant’s Employees shall become entitled to any rights
and/or payments resulting from the existence of such relations, and/or any member of the Group
shall be required to bear any additional expenses or costs (specifically including any taxes
or obligatory payments to the tax authorities, the National Insurance authorities, etc.), the
parties agree and undertake that the aggregated “salary” to which the Consultant’s Employees
are entitled for their services as an such deemed employee of the Group hereunder shall be
equal to 60% of the monthly Fees (excluding VAT) which the Consultant actually received during
the relevant period together with any applicable Tosefet Yoker increase, to the extent that
such increase has been applied to all salaried employees of the Company (together, the
“Compensation”), and the Consultant undertakes in such event to immediately repay and return
to the Group any amounts in excess of said Compensation received by its employee from the
Group. The Consultant further undertakes to indemnify the Group for any loss, payment, expense
or damage caused to the any member of the Group as a result of such determination.

 

 

 

	 	3.4	 	Consultant undertakes to maintain a proper set of accounting books as required by applicable
law and to open and/or maintain a file with the applicable tax and other governmental
authorities. Consultant is exclusively responsible for filing any reports with said tax and
other governmental authorities, which required to be filed in connection with and arising out
of the Services rendered thereby under this Agreement. If the Group receives a claim from any
government agency and/or insurance company to make payment on account of the contributions
that Consultant failed to pay, the Group shall have the right to deduct any amount it actually
paid from any amount due to Consultant under this Agreement, and to the extent that any such
claims are made following termination of this Agreement, Consultant hereby undertakes to fully
indemnify the Group for any such amounts upon its first request.

	 	4	 	Compensation. In consideration for the Services, the Consultant shall be entitled to a monthly
fee of NIS 34,105, plus VAT, against an invoice furnished by it to the Company (the “Monthly
Consideration”). The Consultant shall be entitled to receive the Monthly Consideration
starting March 1, 2010 (the “Effective Date”). For avoidance of all doubt, the consultant
shall not be entitled to receive any consideration for the Services performed prior to the
Effective Date.

	 
	 	5	 	The Company shall enter into indemnity and release agreement with the Consultant,
substantially in a form attached hereto as Exhibit A.

	 
	 	6	 	Additional Benefits

	 	6.1	 	The Company shall reimburse the Consultant for up to 50% of all fixed and variable maintenance
costs of the cellular phone used by the Consultant.

	 
	 	6.2	 	Subject to receipt of all necessary corporate and regulatory approvals, the Parent approved to
grant to the Consultant options to purchase shares of Common Stock as follows:

	 	6.2.1	 	The Consultant will be granted options in an amount which shall equal to, at the time
of grant, 10% of the Parents’ issued and outstanding share capital, on a Fully Diluted basis,
before the grant of options to the Consultant (pre-issuing) (the “Options”). For avoidance of
doubt, Fully Diluted shall mean: all issued shares, outstanding warrants, shares reserved for
allocation to employees pursuant to the Company’s 2003 employee option plan (the “ESOP”) (both
allocated and unallocated), shares issued to a new investor and warrants granted to a new
investor. Fully Diluted shall not include any shares which the Parent will reserve for ESOP
after the date of this Agreement.

 

 

 

	 
	 	6.2.2	 	The Options will vest over a period of two years as follows: 50% of the options will
vest on December 17, 2010, and another 50% will vest on December 17, 2011. The vested Options
will expire at the end of seven years following the date of grant or an M&A Event (defined
below), whichever is earlier (the “Option Term”). It is clarified that in the event of M&A
Event, as defined below, 100% of the unvested options shall be accelerated. The price of
exercise per share of stock will be US $0.001 (the par value of the share) (the “Exercise
Price”). For avoidance of doubt, unvested Options will be cancelled and will cease to vest
only upon termination of this Agreement by the Consultant or termination of this Agreement by
the Group pursuant to Section 8.2 below.

	 
	 	6.2.3	 	An M&A Event shall mean (i) a merger, acquisition or reorganization of the Company
with one or more other entities in which the Company is not the surviving entity, or (ii) a
sale of all or substantially all of the assets or shares of the Company.

	 
	 	6.2.4	 	The grant of Options is also subject to: (i) the earlier of: an execution of an
investment in the Parent by a third party or a rights offering, and (ii) the increase of the
registered share capital of the Parent, if and as far as achieved.

	 
	 	6.2.5	 	The Consultant acknowledges that the Options will not be granted under the ESOP, and
that the Consultant shall bear all tax consequences relating to or evolving out of the grant
and/or exercise of the Options.

	 
	 	6.2.6	 	The Consultant and Fufi each separately acknowledge that they: (i) do not hold any
securities of the Parent; (ii) are aware that in accordance with the provisions of the Israeli
Securities Law — 1968, the Securities Law Regulations (Details with regard to Sections 15A to
15C of the Law), 2000, and applicable laws of the United States, certain limitations apply
with respect to the resale and transfer of the Options and the shares purchased if exercising
the Option (the “Option Shares”); (iii) are not an “Interested Party” (as defined in Section
270(5) of the Israeli Companies Law-1999); (iv) are not party to any agreements, whether in
writing or oral, concerning the purchase or sale of the Parent’s securities or concerning the
voting of the Parent’s securities, with any shareholder of the Parent or with any third party;
(v) do not presently have any contract, undertaking, agreement or arrangement with any person
or entity to sell or transfer to such person or entity or to any third person, with respect to
any of the Options; (vi) are not a “U.S. Person,” as such term is defined pursuant to the
provisions of Regulation S promulgated by the Securities and Exchange Commission under the 33
Act.

 

 

 

	 	6.2.7	 	The Option shall be exercisable, in whole or in part, by providing written notice to
the Parent, stating the amount of Option Shares being exercised (the “Exercise Notice”).

	 
	 	6.2.8	 	Once an Exercise Notice has been sent, it shall be irrevocable and not subject to
change. The Consultant hereby agrees to sign any and all documents required under any
applicable law in order for the Parent to issue the Option Shares upon the exercise of any of
the Option.

	 
	 	6.2.9	 	The Exercise Price shall be paid in full to the Parent together with the delivery of
the Exercise Notice for the exercise of such Option Shares.

	 
	 	6.2.10	 	The Option will not be registered for trade on the TASE and is non-transferable.

	 
	 	6.2.11	 	The Options and Option Shares will not be, registered under the Securities Act and the
rules and regulations promulgated thereunder (the “33 Act”), by reason of a specific exemption
from the registration provisions of the 33 Act which depends upon, among other things, the
bona fide nature of the investment intent and the accuracy of the Consultant’s representations
as expressed herein. The Consultant understands that the Securities are “restricted
securities” under applicable U.S. federal and state securities laws and that, pursuant to
these laws, the Consultant must hold the Securities indefinitely unless they are registered
with the U.S. Securities and Exchange Commission and qualified by state authorities, or an
exemption from such registration and qualification requirements is available and such
Securities are permitted to be transferred under this Agreement. The Consultant acknowledges
that the Company nor the Parent have no obligation to register or qualify the Securities. The
Consultant further acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not limited to, the
time and manner of sale, the holding period for the securities, and on requirements relating
to the Parent which are outside of the Consultant’s control, and which the Company and/or the
Parent are under no obligation and may not be able to satisfy.

	 
	 	6.2.12	 	The Option Shares shall be subject to the following limitations:

	 
	 	 	 	Although the Option Shares will be approved by the TASE for registration, it will not be
permitted, except as specifically permitted herein upon any such sale or transfer being
permitted under the applicable laws of the United States, including under the applicable
provisions of the 33 Act (as defined below) listed below that limit the transfer of
securities, to transfer the Option Shares to The Nominee Company of Bank Hapoalim Ltd. (the
“Registration Company”). Therefore the Consultant hereby declares and confirms its agreement
that it shall not be able to sell or otherwise transfer any of the Option Shares on the TASE
following their issuance and shall only be able to do so upon fulfillment of the conditions
set forth herein. The Consultant hereby agrees that he shall have no claim against the
Company, the Parent, the TASE or anyone acting on their behalf, in connection with the
Consultant’s inability to sell or otherwise transfer the Option Shares through the TASE. In
the event the sale or transfer of the Purchased Shares or the Option Shares through the TASE
is permitted under the applicable laws of the United States, then the Consultant shall execute
any and all documentation and any and all information that the Company or the Parent may
request evidencing that such sale or transfer is permissible, including without limitation,
providing opinions of counsel (qualified either in Israeli and/or United States) and written
representations as may be required by the Company, the Parent, the TASE or any other
governmental authority. Following receipt of all documentation and information the Parent
requires in connection therewith, the Parent shall take action in order to remove the legend
from the stock certificates of the shares for which it is permissible under all applicable
laws of the United States in a manner that will permit the transfer and registration of the
 shares in the name of the Registration Company and the sale of such shares through the TASE
and Consultant shall bear and all costs that the Company and/or the Parent may incur in
connection with such transfer.

 

 

 

	 	6.2.13	 	The Option Shares may bear one or all of the following legends:

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH,
THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

	 
	 	6.2.14	 	The Option Shares and Exercise Price are subject to the following adjustment provisions:

6.2.14.1 If the Parent distributes bonus shares where the record date is prior to the
conclusion of the Option Term, then in addition to the Option Shares that the Consultant is
entitled to receive upon exercise of the Option in full and payment of the aggregate Exercise
Price therefore, shares in such number and class that the Consultant would have been entitled
to receive as bonus shares if it had exercised the Option immediately prior to the record date
for such distribution.

6.2.14.2 The Exercise Price shall not change as a result of the addition of shares described
above. The provisions concerning Option Shares shall apply to the shares that were added as
aforesaid, mutatis mutandis. In the event of any adjustment made pursuant to this Section, the
Consultant shall not be entitled to receive fractional shares.

6.2.14.3 If the Parent’s stockholders are offered to purchase, by way of a rights offering,
any securities, then the number of Option Shares shall be adjusted to take into account the
component of the benefit in the rights offering as is expressed in the ratio of the price of
the Parent’s share on the TASE on the record date for such rights to the basis rate
“ex-rights”. In the event of any adjustment made pursuant to this Section, the Consultant
shall not be entitled to receive fractional shares.

6.2.14.4 The number of Option Shares shall only be adjusted in the event of a bonus share
distribution and rights offering as set forth above, but not in the event of any other
offering (including offerings made to interested parties).

6.2.14.5 The Exercise Price shall not be adjusted in such case that the Parent distributes a
dividend to its stockholders.

6.2.14.6 If the Parent shall combine or subdivide its shares, the number of Options Shares
shall be increased or decreased, as applicable, following such combination or subdivision. In
such event, the aggregate Exercise Price shall remain unchanged.

 

 

 

	 	7	 	Confidentiality and Assignment.

	 	7.1	 	Consultant and each of its Employees providing the Services shall execute the Proprietary
Information and Confidentiality Agreement, in the form attached hereto as Exhibit B.

	 
	 	7.2	 	Consultant acknowledges that the Parent is a publicly traded company and as such Consultant
and each of its Employees providing the Services shall abide by all applicable laws in
connection therewith, including relating to insider trading and the like.

	 	8	 	Term and Termination.

	 	8.1	 	Either party may terminate this Agreement at any time, and for any reason or for no reason,
upon at least 45 days prior written notice to the other party.

	 
	 	8.2	 	This Agreement may be terminated immediately by the Group in the event of:

	 	8.2.1	 	Breach by the Consultant of any material provision of this Agreement
which is not curable or is not cured by the Consultant within 14 days
after its receipt of notice thereof from the Group containing a
description of the breach or breaches alleged to have occurred (it
being understood that the provisions of Exhibit B of this Agreement
are deemed to be material provisions);

	 
	 	8.2.2	 	Persistent neglect by the Consultant or material failure by the
Consultant to adequately perform the Services;

	 
	 	8.2.3	 	Any act of moral turpitude by the Consultant or action by the
Consultant to intentionally harm the Group;

	 
	 	8.2.4	 	The Consultant
becoming bankrupt;
the filing by or
against the
Consultant of a
petition in
bankruptcy, or a
composition with
creditors or any
similar action in
consequence of
debt.

	 	8.3	 	This Agreement may be terminated immediately by the Consultant in the event of:

	 	8.3.1	 	If the Group ceases doing business as a
going concern, makes an assignment for the
benefit of creditors, files a voluntary
petition in bankruptcy, is adjudicated
bankrupt or insolvent, files a petition
seeking for itself any reorganization,
liquidation, dissolution or similar
arrangement under any statute, law or
regulation, or files an answer admitting the
material allegations of a petition filed
against it in any such proceeding, consents
to or acquiesces in the appointment of a
trustee, custodian, receiver or liquidator
of all or any substantial part of its assets
or properties; or

	 	8.3.2	 	If the Group fails to pay any sum when due
to the Consultant or otherwise is in
material breach or default of this Agreement
and fails to cure such breach or default
within fourteen (14) days in the case of
non- payment or within thirty (30) business
days in the case of any other material
default after receipt of written notice from
the non-defaulting party.

 

 

 

	 	9	 	Miscellaneous.

	 	9.1	 	Notices. All notices or other communications hereunder shall be in writing and shall be given
in person, by registered mail, or by facsimile transmission (provided that written
confirmation of receipt is provided), at the above address or at such address as a party may
from time to time designate in writing to the other parties. Notices shall be deemed to be
received 4 days after being sent or 24 hours after being faxed.

	 
	 	9.2	 	No Assignment. The performance of the Consultant’s obligations hereunder may not be
transferred or assigned by the Consultant. The Group may assign this Agreement to any
successor in interest with the written consent of the Consultant.

	 
	 	9.3	 	Governing Law. This Agreement shall be exclusively governed by and construed in accordance
with the laws of the State of Israel without giving effect to the principles of conflict of
law thereof. Any action instituted by any of the parties shall be brought in the appropriate
court in the State of Israel, which shall have exclusive jurisdiction over such actions, and
each party hereto submits itself to the personal jurisdiction of the courts in Israel.

	 
	 	9.4	 	Enforcement. If it is necessary for either party to enforce the terms of the Agreement through
legal action, the prevailing party in said legal action shall be entitled to recover its
reasonable attorneys’ fees and costs incurred in such enforcement against and from the non
prevailing party.

	 
	 	9.5	 	Preamble; Annexes/Titles. The preamble to this Agreement and the Exhibits attached hereto form
integral parts hereof. The titles in this Agreement are intended for convenience purposes only
and they do not have and shall not be ascribed any weight in the interpretation hereof.

	 
	 	9.6	 	Entire Agreement; Amendment, etc. This Agreement and its Exhibits are the entire agreement
between the parties with respect to the subject matter hereof, and supersede all prior
understandings, agreements and discussions between them, oral or written, with respect to such
subject matter. This Agreement shall not be modified or amended except by a written
instrument, signed by the parties hereto. All remedies specified herein or otherwise available
shall be cumulative and in addition to any and every other remedy provided hereunder or now or
hereafter available at law or in equity. No waiver or failure to act with respect to any
breach or default hereunder, whether or not the other party has notice thereof, shall be
deemed to be a waiver with respect to any subsequent breach or default, whether of similar or
different nature.

	 
	 	9.7	 	Severability. The provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or enforceability of the other
provisions hereof.

	 
	 	9.8	 	Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same
instrument.

 

 

 

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

	 	 	 	 	 	 	 	 	 	 	 
	TOPSPIN MEDICAL (ISRAEL) LTD.	 	 	 	NICHSEY F.N. FATAL LTD.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Zvi Linkovski
	 	 	 	By:
	 	/s/ Fufi Fatal	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Title: Director
	 	 	 	 	 	Title: CEO	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	TOPSPIN MEDICAL, INC.	 	 	 	TOPSPIN MEDICAL, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Zvi Linkovski
	 	 	 	By:
	 	/s/ Eldad Yehiely	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Title: Director
	 	 	 	 	 	Title: Manager of Finance	 	 

The undersigned hereby agrees to be bound by the provisions of the Agreement.

	 	 	 
	/s/ Fufi Fatal
 

	 	 
	Date: January 28, 2010
	 	 

 

 

 

Exhibit A

to Consulting Agreement by and between TopSpin Medical (Israel) Ltd., Topspin

Medical, Inc. and the Consultant whose name is set forth herein

INDEMNIFICATION AGREEMENT

This INDEMNIFICATION AGREEMENT (the “Agreement”) is made as of                     , 2010 by and between
TopSpin Medical, Inc., a Delaware corporation (the “Company”), and Fufi Fatal (“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 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:

	I.	 	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:

A. 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.

 

 

 

B. 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.

	II.	 	Limitations on Contractual Indemnity. Indemnitee shall not be entitled to
indemnification or advancement of expenses under Section 1:

A. 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

B. 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

C. for any acts or omissions or transactions from which an Office Holder may not be
indemnified under the Delaware General Corporation Law; or

D. 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

E. 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

F. 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.

 

 

 

	III.	 	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.

	 
	IV.	 	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.

	 
	V.	 	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:

A. 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.

B. 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.

C. Indemnitee shall give the Company such information and cooperation as it may reasonably
require and as shall be within Indemnitee’s power.

 

 

 

D. 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
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.

E. 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.

	VI.	 	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.

	VII.	 	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.

	 
	VIII.	 	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.

 

 

 

	IX.	 	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.

	 
	X.	 	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.

	 
	XI.	 	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.

	 
	XII.	 	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.

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

	 
	XIV.	 	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.

	 
	XV.	 	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.

	 
	XVI.	 	Construction of Certain Phrases.

A. “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.

 

 

 

B. 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.

	XVII.	 	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.

	 
	XVIII.	 	Governing Law; Binding Effect; Amendment.

A. 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.

B. 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.

C. No amendment, modification, termination or cancellation of this Agreement shall be
effective unless in writing signed by both parties hereto.

 

 

 

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:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

Exhibit B

to Consulting Agreement by and between TopSpin Medical (Israel) Ltd., Topspin

Medical, Inc. and the Consultant whose name is set forth herein

	 	 	 
	Name of Consultant:

	 	 Nichsey F.N. Fatal Ltd.
	Company No. of Consultant:

	 	 512088808

	 	1	 	General

	 
	 	 	 	Capitalized terms not defined herein shall have the meanings ascribed to them in the Consulting Agreement to which this
Exhibit is attached (together with this Exhibit, the “Agreement”). For purposes of any undertaking of the Consultant toward
the Group shall include all subsidiaries and affiliates of the Group.

	 
	 	2	 	Confidentiality; Proprietary Information.

	 	2.1	 	Consultant acknowledges and agrees that Consultant had and will have access to
confidential and proprietary information concerning the business and financial
activities of the Group, including information relating to the Group’s research and
development, banking, investments, investors, properties, employees, marketing
plans, customers, suppliers, trade secrets, test results, processes, data, know-how,
improvements, inventions, techniques and products (actual or planned), and any
confidential information received by the Group from third parties. Such information,
whether documentary, written, oral or computer generated, shall be referred to as
“Proprietary Information”.

	 
	 	2.2	 	Proprietary Information shall be deemed to include any and all proprietary
information relating to the Group’s business, financial condition or activities,
which is disclosed by or on behalf of the Group and irrespective of form but
excluding information that is or shall become part of the public knowledge
(including without limitation the industries or trades in which the Group operates)
except as a result of the breach of the Agreement or this Exhibit by the Consultant.
For the removal of doubt, general skills and experience gained during the
Consultant’s engagement by the Group shall not be considered Proprietary Information
hereunder.

	 
	 	2.3	 	Consultant recognizes that the Group received and will receive confidential or
proprietary information from third parties, subject to a duty on the Group’s part to
maintain the confidentiality of such information and to use it only for certain
limited purposes. In connection with such duties, such information shall be deemed
Proprietary Information hereunder, mutatis mutandis.

	 
	 	2.4	 	Consultant agrees that all Proprietary Information, and patents, trademarks,
copyrights and other intellectual property and ownership rights in connection
therewith and applications therefor shall be the sole property of the Group and its
assigns. At all times, both during Consultant’s engagement by the Group and after
Consultant’s termination, Consultant will keep in confidence and trust all
Proprietary Information, and the Consultant will not use or disclose any Proprietary
Information or anything relating to it without the written consent of the Group,
except as may be necessary in the ordinary course of performing Consultant’s duties
under the Agreement.

	 
	 	2.5	 	Upon termination of Consultant’s engagement with the Group, Consultant will promptly
deliver to the Group all documents and materials of any nature pertaining to
Consultant’s work with the Group, and will not take with Consultant any documents or
materials or copies thereof containing any Proprietary Information.

	 
	 	2.6	 	Consultant’s undertakings set forth in this Section 2 shall remain in
full force and effect after termination of the Agreement or any
renewal thereof.

 

 

	 	3	 	Enforcement.

The Company or the Parent may enforce the Agreement and
any of its provisions by injunction, specific
performance or other equitable relief, without prejudice
to any other rights and remedies that the Company and/or
the Parent may have for the breach of the Agreement. The
Agreement shall be enforced to the fullest extent
permissible under the laws of the State of Israel,
without regard to its conflict of law principles, and
inure to the benefit of any successor to all or
substantially all of the Group’s business. If any
portion of the Agreement shall be adjudicated to be
invalid or unenforceable, it shall be deemed to be
amended to delete such portion. The Consultant’s rights
and obligations hereunder shall be in addition to the
Consultant’s obligations towards the Group pursuant to
applicable law or in equity. Consultant expressly
consents to the exclusive personal jurisdiction and
venue of Tel Aviv labor courts for any lawsuit arising
from or relating to the Agreement.

	 	 	 	 	 	 	 	 	 
	TOPSPIN MEDICAL (ISRAEL) LTD.	 	 	 	NICHSEY F.N. FATAL LTD.
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Zvi Linkovski
	 	 	 	By:
	 	/s/ Fufi Fatal
	 

	 	 
	 	 	 	 	 	 
	 

	 	Title: Director
	 	 	 	 	 	Title: CEO
	 
	 	 	 	 	 	 	 	 
	TOPSPIN MEDICAL, INC. 	 		 	TOPSPIN MEDICAL, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Zvi Linkovski
	 	 	 	By:
	 	/s/ Eldad Yehiely
	 

	 	 
	 	 	 	 	 	 
	 

	 	Title: Director
	 	 	 	 	 	Title: Manager of Finance

The undersigned hereby agrees to be bound by the provisions of the Agreement.

	 	 	 
	/s/ Fufi Fatal
 

	 	  
	Date: January 28, 2010exv10w1

Exhibit 10.1

COMPENSATION ARRANGEMENT FOR ERIC W. NAROWSKI

On December 18, 2009, the Compensation Committee of the Company’s Board of Directors approved an
award of additional compensation to Eric W. Narowski, the Company’s interim Chief Financial
Officer, Senior Vice President, Principal Accounting Officer and Global Controller, in recognition
of his service as interim Chief Financial Officer. Specifically, Mr. Narowski will receive a
monthly bonus of $3,000, payable in bi-weekly installments, during the period he serves as the
Company’s interim Chief Financial Officer, with retroactive effect to the date he was appointed to
this role, November 20, 2009.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]