Document:

EX-10.24 Sublicense Agreement

 

EXHIBIT 10.24

EXECUTION COPY

SUBLICENSE AGREEMENT

     This Sublicense Agreement (the “Agreement”), effective as of May 24th, 2006
(“Effective Date”) is made by and between SensAble Technologies, Inc. (“SensAble”), a Delaware
corporation, having offices at 15 Constitution Way, Woburn, MA 01801, and MAKO Surgical Corp.
(“MAKO”), a Delaware corporation with offices at 2901 Simms St., Hollywood, FL 33020. SensAble and
MAKO are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.

     NOW, THEREFORE, for and in consideration of the premises, the mutual representations,
warranties and covenants herein contained and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

ARTICLE I.

Definitions

     1.1
“Additional Optioned Patents” means five (5) individual patents or patent
applications (and the foreign counterparts to such patents), chosen by MAKO in its sole discretion,
from the Optional Patents.

     1.2 An “Affiliate” of a party means an entity directly or indirectly controlling,
controlled by or under common control with that party, where control means the ownership or
control, directly or indirectly, of more than fifty percent of all of the voting power of the
shares (or other securities or rights) entitled to vote for the election of directors or other
governing authority, as of the date of this Agreement or hereafter during the term of this
Agreement. However, the entity will be considered an Affiliate only for the time during which such
control exists.

     1.3 “Change of Control” means a transaction whereby a Party (a) sells all or
substantially all of its assets; (b) has more than fifty percent (50%) of its stock acquired by a
person or entity that was not a stockholder of such Party prior to such transaction; or (c) merges
with or into another entity.

     1.4
“Initial Consideration” means One Hundred Thousand
Dollars (US $100,000.00).

     1.5 “Initial Licensed Patent” means that certain patent identified in Schedule
I hereto that has been licensed to SensAble by MIT pursuant to the License Agreement, along
with any and the foreign counterparts to that patent.

     1.6
“License Agreement” means that certain License
Agreement, by and between Massachusetts Institute of Technology
(“MIT”), effective as of July 16 1997, a
redacted copy of which is attached hereto as Exhibit A and the disclosed terms of which that are
specifically designated as extending to all sublicenses granted thereunder are hereby incorporated
by reference as though set forth in full herein.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

1

 

     1.7 “Licensed Patents” means collectively the Initial Licensed Patent and the
Additional Optioned Patents.

     1.8
“MAKO Field” means the field of [***].

     1.9 “MAKO Products” means products in the MAKO Field developed by or for MAKO or any
Subsidiary of MAKO.

     1.10 “Option Exercise Price” means Four Hundred Thousand Dollars (US $400,000).

     1.11 “Optional Patents” means those certain patents and patent applications
identified on a completed Schedule 2 that will be provided to MAKO by SensAble upon request at any
time after the payment of the Initial Consideration by MAKO, to which SensAble has rights as
described therein, along with any foreign counterpart for such Optional Patents. The completed
Schedule 2 so provided by SensAble will replace the Schedule 2 attached hereto and be incorporated
into this Agreement as though it were set forth in full upon the date of its execution.

     1.12 A “Subsidiary” of a party means an entity controlled by that party,
where control means the ownership or control, directly or indirectly, of more than fifty percent of
all of the voting power of the shares (or other securities or rights) entitled to vote for the
election of directors or other governing authority, as of the date of this Agreement or hereafter
during the term of this Agreement. However, the entity will be considered a Subsidiary only for
the time during which such control exists.

ARTICLE II.

Grants of License

     2.1 Initial Grant of Sublicense to MAKO. Subject to all of the terms and conditions
of this Agreement, in exchange for the Initial Consideration (and for no additional consideration),
SensAble grants to MAKO a non-exclusive worldwide, perpetual, non-terminable, royalty-free and
fully paid-up sublicense under the Initial Licensed Patent limited to make, have made, use, sell,
offer to sell and to import MAKO Products in the MAKO Field (the “Initial Sublicense”).

     2.2 Option Grant for Additional Sublicense to MAKO. Subject to all of the terms and
conditions of this Agreement, SensAble grants to MAKO the option to obtain a license or sublicense
under the terms of this Agreement and for the Option Exercise Price (and for no additional
consideration), to the Additional Optioned Patents (the “Option”).

     (a) The Option shall be exercisable by MAKO, in its sole discretion, at any time during the
period beginning as of the Effective Date and ending on the one (1) year anniversary of the
Effective Date (the “Option Period”).

     (b) The license or sublicense, if any, granted pursuant to this Section 2.2 upon MAKO’s
exercise of the Option and payment of the Option Exercise Price, shall be a non-exclusive
worldwide, perpetual, non-terminable, royalty-free and fully paid-up license or sublicense under
the Additional Optioned Patents to make, have made, use, sell, offer to sell and to import MAKO
Products in the MAKO Field (the “Additional License”).

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

2

 

     (c) In order to make an informed decision concerning exercise (or non-exercise) of the Option,
SensAble shall immediately upon request by MAKO during the Option Period, provide MAKO with copies
of patent applications included in the Optional Patents, provided however that SensAble may require
that MAKO enter into a non-disclosure covenant as to any patent application which has not yet been
made public through publication through the United States Patent Office or a foreign analog.

     2.3 Scope of Grant(s).

     (a) The grant of any license or sublicense pursuant to this Agreement includes, unless it is
otherwise expressly stated in this Agreement, the following rights:

     (i) with respect to patents and patent applications, to make, have made, use, lease, sell,
offer to sell, and import machines and articles of manufacture solely for use within the MAKO Field
by MAKO or by those making such machines or articles of manufacture for MAKO; and to make, have
made, use and import machines, tools, materials and other instrumentalities, insofar as such
machines, tools, materials and other instrumentalities are involved in or incidental to the
development, manufacture, testing or repair of MAKO Products for use solely within the MAKO Field,
which are made or imported for use by MAKO or by those making such instrumentalities for MAKO;

     (ii) to convey to any purchaser, lessee, or user of any MAKO Product for use within the MAKO
Field, which is sold or leased by MAKO, rights to use and resell the MAKO Product within the MAKO
Field.

     (b) Except as otherwise set forth in this Section 2.3, MAKO may not, without the consent
(which shall not be unreasonably withheld) of and notice to SensAble, grant a sublicense under any
license or sublicense granted pursuant to this Agreement to any third party. SensAble’s consent
will, in any event be conditioned upon such additional terms and conditions as are necessary to
comply with the terms of the License Agreement. The parties agree that no consent by SensAble is
required for grant of a sublicense to a Subsidiary of MAKO.

     2.4 Representations, Warranties and Covenants.

     (a) SensAble represents that it is the licensee of the Initial Licensed Patent and has been
granted rights in the Optional Patents as set forth in Schedule 2. SensAble possesses all rights
necessary to grant the Initial Sublicense and the Additional Sublicense to MAKO pursuant to this
Agreement.

     (b) The undersigned signatory, executing on behalf of SensAble has actual necessary legal
authority to bind SensAble to the terms of this Agreement and the transactions contemplated herein,
and this Agreement shall, by its terms, bind SensAble to the provisions and covenants set forth
herein.

     (c) SensAble covenants that it will not terminate the License Agreement. SensAble covenants
that it will not amend the License Agreement or take any other actions that would limit the
sublicenses granted under this Agreement.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

3

 

     2.5 Further Assurances. Each of the Parties agrees to take all further actions and
execute and deliver any additional instruments on or after the Effective Date as shall be
reasonably necessary to effectuate the transactions contemplated by this Agreement.

ARTICLE III.

Publicity and Confidentiality

     3.1 Confidentiality of Confidential Information. MAKO will hold the terms of this
Agreement and all non-public information relating to the Licensed Patents in confidence, and will
take precautions at least as conscientious as those it implements to maintain and protect the
confidentiality of its own patent-related information, except that MAKO may disclose such terms to
its attorneys, accountants and legal advisors as MAKO deems necessary.

     3.2 Publicity and Trademarks. Nothing in this Agreement will be construed as
conferring upon either Party or its Affiliates any right to include in advertising, packaging or
other commercial activities related to a product, any reference to the other Party (or any of its
Affiliates), its trade names, trademarks or service marks in a manner which would be likely to
cause confusion or to indicate that such product is in any way certified by the other Party hereto
or its Affiliates.

ARTICLE IV.

Payments

     4.1 No Additional Consideration Required from MAKO. MAKO shall at no time be required
to pay any consideration of any kind for the Initial Sublicense or the Additional Sublicense except
for and limited to the Initial Consideration and the Option Price respectively.

     4.2 Maintenance Fees and Prosecution Costs. MAKO shall not be obligated to pay any
fees, costs or taxes associated with prosecution or maintenance of the Licensed Patentsand SensAble
agrees to continue to pay all maintenance fees necessary to avoid abandonment of the Licensed
Patents. SensAble may, at its discretion, decline to continue to maintain any Licensed Patent in
any country provided that SensAble provides timely notice to MAKO of any such determination,
whereupon MAKO may, at its discretion and with such reasonable assistance as may be required from
SensAble, undertake the payment of the maintenance fee for such Licensed Patent in those countries
in which MAKO has declined to continue such maintenance. Timely notice shall mean notice at least
thirty (30) days prior to the final date on which the fee to continue maintenance of the Licensed
Patent would otherwise be due. Should MAKO, pursuant to the provisions of this Section, undertake
the payment of maintenance fees with respect to a Licensed Patent in any country, then, following
the date of such payment, SensAble will not enter into an agreement (or amend any existing
agreement) to grant a license or sublicense to such Licensed Patent in the MAKO Field in such
country that would first become effective on a date following the date of such payment.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

4

 

ARTICLE V.

Bankruptcy

     SensAble and MAKO each acknowledges that this Agreement is an “executory contract” as provided
in Section 365(n) of Title 11, United States Code (the “Bankruptcy Code”).
SensAble acknowledges that if it as a debtor in possession or a trustee in Bankruptcy in a
case under the Bankruptcy Code rejects this Agreement, MAKO, as sublicensee, may elect to retain
its rights under this Agreement as provided in Section 365(n) of the Bankruptcy Code. Upon written
request of the MAKO, as sublicensee, to SensAble as a debtor in possession or the Bankruptcy
Trustee, SensAble or such Bankruptcy Trustee shall not interfere with the rights of MAKO, as
sublicensee, as provided in this Agreement.

ARTICLE VI.

Indemnification

     Indemnification.

     (a) SensAble will indemnify in respect of, and hold MAKO and its officers, directors,
employees and agents harmless against, any and all damages, claims, deficiencies, losses, including
taxes, and all expenses (including interest, penalties, and attorneys’ and accountants’ fees and
disbursements but reduced by any tax savings, benefits or offsets to which any party shall be
entitled directly or indirectly by reason thereof) (collectively “Damages”), resulting from
any misrepresentation, breach of warranty or failure to perform any covenant or agreement on the
part of SensAble under this Agreement.

     (b) MAKO agrees to indemnify in respect of, and hold SensAble and its officers, directors,
employees and agents harmless against, any and all Damages resulting from any misrepresentation,
breach of warranty, or failure to perform any covenant or agreement on the part of MAKO under this
Agreement.

     6.2 Method of Asserting Claims, etc. The party or parties claiming indemnification
under this Article (whether one or more) are hereinafter collectively referred to as the
“Indemnified Party” and the party against whom such claims are asserted hereunder is hereinafter
referred to as to the “Indemnifying Party.” All claims for indemnification by any Indemnified Party
under this Article V will be asserted and resolved as follows:

     (a) In the event that any claim or demand for which an Indemnifying Party would be liable to
an Indemnified Party hereunder is asserted against or sought to be collected from such Indemnified
Party by a third party (a “Third Party Claim”), such Indemnified Party will with reasonable
promptness notify the Indemnifying Party of such claim or demand, specifying the nature of and
specific basis for such claim or demand and the amount or the estimated amount thereof to the
extent then feasible (which estimate will not be conclusive of the final amount of such claim and
demand (the “Claim Notice”)). The Indemnifying Party will not be obligated to indemnify such
Indemnified Party with respect to any such claim or demand to the extent the failure of such
Indemnified Party to promptly notify the Indemnifying Party of such a claim or demand materially
prejudices the Indemnifying Party’s ability to defend against the claim or demand. The
Indemnifying Party will have 30 days from the personal delivery or mailing of the Claim Notice (the
“Notice Period”) to notify such Indemnified Party (i) whether or not it disputes the liability of
the Indemnifying Party to such Indemnified Party hereunder with respect to such claim or demand and
(ii) whether or not it desires at the sole cost and expense of the Indemnifying Party, to defend
such Indemnified Party against such claim or demand; provided, however, that such Indemnified Party
is hereby authorized prior to and during the Notice Period

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

5

 

to file any motion, answer or other pleading which it deems necessary or appropriate to
protect its interests or those of the Indemnifying Party and not materially prejudicial to the
Indemnifying Party. In the event that the Indemnifying Party notifies such Indemnified Party
within the Notice Period that it desires to defend such Indemnified Party against such claim or
demand, except as hereinafter provided, the Indemnifying Party will have the right to defend by all
appropriate proceedings. If such Indemnified Party desires to participate in, but not control, any
such defense or settlement it may do so at its sole cost and expense. If requested by the
Indemnifying Party, such Indemnified Party agrees to cooperate with the Indemnifying Party and its
counsel in contesting any claim or demand which the Indemnifying Party elects to contest, and, if
appropriate and related to the claim in question, in making any counterclaim against the person
asserting the third party claim or demand, or any cross-complaint against any person. No claim may
be settled by the Indemnifying Party without the consent of such Indemnified Party, which consent
will not be unreasonably withheld. Notwithstanding the foregoing, in connection with a Third Party
Claim asserted against both such Indemnified Party and the Indemnifying Party, if (i) such
Indemnified Party has available to it defenses which are in addition to those available to the
Indemnifying Party, (ii) such Indemnified Party has available to it defenses which are inconsistent
with the defenses available to the Indemnifying Party or (iii) a conflict exists or may reasonably
be expected to exist in connection with the representation of both such Indemnified Party and the
Indemnifying Party by the legal counsel chosen by the Indemnifying Party, such Indemnified Party
will have the right to select its own legal counsel. If such Indemnified Party selects its own
legal counsel pursuant to the immediately preceding sentence and the underlying Third Party Claim
is otherwise subject to the scope of the indemnification obligations of the indemnifying Party
pursuant to this Article, the reasonable fees and expenses of such legal counsel will be included
within the indemnification obligations of the Indemnifying Party; provided that under no
circumstances will the Indemnifying Party be obligated to indemnify such Indemnified Party against
the fees and expenses of more than one legal counsel selected by such Indemnified Party in
connection with a single claim (notwithstanding the number persons against whom the Third Party
Claim may be asserted).

     (b) In the event any Indemnified Party should have a claim against any Indemnifying Party
hereunder which does not involve a claim or demand being asserted against or sought to be collected
from it by a third party, such Indemnified Party will send a Claim Notice with respect to such
claim to such Indemnifying Party. If such Indemnifying Party does not notify such Indemnified
Party within the Notice Period that such Indemnifying Party disputes such claim, the amount of such
claim will be conclusively deemed a liability of such Indemnifying Party hereunder.

ARTICLE VII.

Term and Termination

     7.1 Term. This Agreement will become effective as of the Effective Date and will
continue until terminated according to its terms or until all of the patents licensed hereunder
terminate.

     7.2 Voluntary Termination by MAKO. MAKO may voluntarily terminate this Agreement upon
60 days written notice to SensAble.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

6

 

     7.3 Survival. Articles I, III, VII and VIII will survive and continue after
termination.

ARTICLE VIII.

Miscellaneous Provisions

     8.1 Registration and Recordation of License Agreement. Notwithstanding the
obligations of confidentiality of Article III, each Party consents to registration of an
appropriately redacted version of this Agreement if required by law, for the grants of licenses to
be effective, or to make it effective against subsequent assignees or licensees.

     8.2 Assignment. Licensee may not assign this Agreement, except upon a Change of
Control with (a) notice to SensAble specifying the assignee; (b) with the prior written consent of
SensAble (which shall not be unreasonably withheld); and (c) only if the assignee agrees to be
bound by all of the terms and conditions of the Agreement. This Agreement will be binding on
successors in interest and permitted assigns. SensAble may assign this Agreement upon a Change of
Control.

     8.3 Notices. All notices and other communications which are required or which may be
given under the provisions of this Agreement will be in writing and may be delivered (a)
personally, (b) by facsimile transmission, (c) expedited delivery service with proof of delivery or
(d) sent by United States Mail, postage prepaid, registered or certified, return receipt requested,
addressed as follows:

	 	 	 
	If to SensAble:

	 	SensAble Technologies, Inc.
	 

	 	15 Constitution Way
	 

	 	Woburn, MA 01801
	 

	 	Phone: (781) 937-8315
	 

	 	Facsimile: (781) 937-8325
	 

	 	Attention: Chief Financial Officer
	 
	 	 
	If to MAKO:

	 	MAKO Surgical Corp.
	 

	 	2555 Davie Road
	 

	 	Suite 110
	 

	 	Ft. Lauderdale, FL 33317
	 

	 	Phone: (954) 927-2044
	 

	 	Facsimile: (954) 927-0446
	 

	 	Attention: Chief Financial Officer

or to such other address designated by the parties as provided above. Any such notice will be
deemed to have been given either at the time of personal delivery or, in the case of delivery
service or mail, as of the date of first attempted delivery at the address and in the manner
provided herein.

     8.4 Choice of Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF MASSACHUSETTS (EXCLUSIVE OF CONFLICTS OF LAW PRINCIPLES).

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

7

 

     8.5 Captions. The captions, headings, and arrangements used in this Agreement are for
convenience only and do not in any way affect, limit, amplify, or modify its terms and provisions.

     8.6 No Strict Construction. This Agreement is the result of substantial negotiations
among the Parties and their counsel and has been prepared by their joint efforts. Accordingly, the
fact that counsel to one Party or another may have drafted this Agreement or any portion of this
Agreement is immaterial and this Agreement will not be strictly construed against any Party.

     8.7 Severability and reformation. Wherever possible, each provision of this Agreement
will be interpreted in such manner as to be effective. If any provision of this Agreement is held
to be illegal, invalid, or unenforceable under present or future laws effective during the term of
this Agreement, such provision will be fully severable and this Agreement will be construed and
enforced as if such illegal, invalid, or unenforceable provision had never comprised a part of this
Agreement, and the remaining provisions of this Agreement will remain in full force and effect.
Furthermore, in lieu of each such illegal, invalid, or unenforceable provision, there will be added
automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid,
or unenforceable provision as may be possible and be legal, valid, and enforceable; provided,
however, that, if any such change will materially diminish the practical realization of the
benefits intended to be conferred to any party to this Agreement, such party may terminate this
Agreement upon written notice to each other party within 30 days after learning such change has
been effected.

     8.8 Consents; Waivers. Any consent or approval required as a condition to an action
under this Agreement will be effective only (a) if in writing and signed by the Party whose consent
is sought, (b) with respect to the specific matter made the subject to such consent or approval
(and no other matter), and (c) for the specific instance(s) expressly set forth in such consent or
approval (and no earlier or subsequent instances). Any Party may waive any condition, covenant,
term, or provision of this Agreement, but any such waiver will be effective only (a) if in writing
and signed by the Party sought to be bound by such waiver, (b) with respect to the specific
condition, covenant, term, or provision expressly made the subject to such waiver (and no other
condition, covenant, term, or provision), and (c) for the specific instance(s) expressly set forth
in such waiver (and no earlier or subsequent instances). Without limiting the foregoing sentence,
none of the following will constitute a waiver of the rights of a Party to this Agreement to demand
exact compliance with the conditions, covenants, terms, and provisions of this Agreement: (a) a
failure of such Party to exercise any power reserved to it in this Agreement; (b) a failure of such
Party to insist upon compliance by any other Party to this Agreement with any condition, covenant,
term, or provision in this Agreement; (c) a delay, forbearance, or omission of such Party to
exercise any power; or (d) any custom or practice of the Parties at variance with the terms of this
Agreement. The consent or approval of any Party to this Agreement with respect to the act of any
other Party to this Agreement will not be deemed to waive or render unnecessary consent to or
approval of any subsequent similar act. Subsequent acceptance by a Party to this Agreement of any
performance due to it under this Agreement will not be deemed to be a waiver by such first Party of
any preceding breach by any other Party of any terms, provisions, covenants, or conditions of this
Agreement.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

8

 

     8.9 Force Majeure. Neither party will be in default or otherwise liable for any delay
in or failure of its performance under this Agreement if such delay or failure arises by any reason
beyond its reasonable control, including any act of God, any acts of the common enemy, the
elements, earthquakes, floods, fires, epidemics, riots, failures or delay in transportation or
communications, or any act or failure to act by the other party or such other party’s employees,
agents, or independent contractors or representatives; provided, however, that lack of funds will
not be deemed to be a reason beyond a party’s reasonable control. The parties will promptly inform
and consult with each other as to any of the above causes that in their judgment may or could be
the cause of a delay in the performance of this Agreement.

     8.10 Legal Costs. If any action is brought to enforce or interpret the terms of this
Agreement (including through arbitration), the prevailing Party will be entitled to reasonable
legal fees, costs, and disbursements in addition to any other relief to which such Party may be
entitled.

     8.11 Integration. This Agreement, including the terms of the License Agreement
incorporated by reference herein, sets forth the entire agreement and understanding between the
Parties as to the subject matter hereof and merges all prior discussions between them. Neither of
the Parties shall be bound by any warranties, understandings or representations with respect to
such subject matter other than as expressly provided herein or in a writing signed with or
subsequent to execution hereof by an authorized representative of the Party to be bound thereby.
To the extent any conflict exists or arises between the terms set forth in this Agreement and the
terms of the License Agreement incorporated by reference herein, the terms of the License Agreement
shall take precedence be given effect.

     8.12 No Partnership. Neither this Agreement, nor any terms and conditions contained
herein, will be deemed or construed to create a partnership, joint venture, other form of business
enterprise or association or cooperative arrangement, agency relationship, or franchise
relationship between the Parties or otherwise to create any liability for either Party whatsoever
with respect to the indebtedness, liabilities, and obligations of the other Party.

     8.13 Counterparts. This Agreement may be executed in any number of counterparts and
will be effective when each Party to this Agreement has executed at least one counterpart, with the
same effect as if all signing parties had signed the same document. All counterparts will be
construed together and evidence only one agreement, which, notwithstanding the actual date of
execution of any counterpart, will be deemed to be dated the day and year first written above. In
making proof of this Agreement, it will not be necessary to account for a counterpart executed by
any Party other than the Party against whom enforcement is sought or to account for more than one
counterpart executed by the Party against whom enforcement is sought.

     8.14 Facsimile Signatures. The manual signature of any Party to this Agreement that
is transmitted to any other Party or counsel to any other Party by facsimile will be deemed for all
purposes to be an original signature.

[NEXT PAGE IS SIGNATURE PAGE]

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

9

 

     IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed in duplicate
originals by its duly authorized representatives on the respective dates entered below.

	 	 	 	 	 
	SensAble Technologies, Inc.

 	 
	By:  	 	 	/s/ Robert A. Kittler 	 
	Name:  	Robert A. Kittler 	 
	Title: 	 	  	VP Finance & Operations	 
	Date: 	 	  	 May 22, 2006	 
	 

	 	 	 	 	 
	MAKO Surgical Corp.

 	 
	By:  	 	 	/s/ Maurice R. Ferré
 	 
	Name:  	Maurice R. Ferré 	 
	Title:  	 	 	President
 	 
	Date:  	 	 	May 22, 2006 	 
	 

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

10

 

Schedule 1

Initial Licensed Patent

US Patent No. [***]

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

11

 

Schedule 2

Optional Patents

[PATENT AND APPLICATION NUMBERS TO BE PROVIDED BY SENSABLE UPON

REQUEST BY MAKO]

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

12

 

Exhibit A

Redacted Copy of License Agreement

[AS ATTACHED]

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

13

 

MASSACHUSETTS
INSTITUTE OF TECHNOLOGY

and

SENSABLE TECHNOLOGIES, INC.

PATENT LICENSE AGREEMENT

     This Agreement is made and entered into this 16th day of July, 1997, (the
“EFFECTIVE DATE”) by and between the Massachusetts
Institute of Technology, a corporation duly organized and existing under the
laws of the Commonwealth of Massachusetts and having its principal
office at 77 Massachusetts Avenue, Cambridge, Massachusetts 02134, U.S.A.
(hereinafter referred to as “M.I.T.”), and SENSABLE TECHNOLOGIES, INC., a corporation duty organized
under the laws of the state of DELAWARE and having its principal office at 26 Landsdowne Street,
Cambridge, Massachusetts, 02139, U.S.A. (hereinafter referred to as “LICENSEE”).

WITNESSETH

     WHEREAS,
M.I.T. is the owner of certain PATENT RIGHTS (as later defined herein). relating to
M.I.T. Case No 7215, “God Object Method for Haptic
Rendering” by David L. Brook; Thomas H. Massie;
Kenneth J. Salisbury, Jr; and Craig Zilles and has the right to grant licenses under said PATENT RIGHTS, subject only
to a royalty-free, nonexclusive license heretofore granted to the United States Government;

     WHEREAS,
M.I.T. desires to have the PATENT RIGHTS developed and commercialized to benefit the
public and is willing to grant a license thereunder,

     WHEREAS,
LICENSEE has represented to M.I.T., to induce M.I.T. to enter into this Agreement, that
LICENSEE is experienced in the development, production, manufacture, marketing and sale of products
similar to the LICENSED PRODUCT(s) (as later defined herein) and/or the use of the LICENSED
PROCESS(es) (as later defined herein) and that it shall commit itself to a thorough, vigorous and
diligent program of exploiting the PATENT RIGHTS so that public utilization shall result therefrom;
and

     WHEREAS, LICENSEE desires to obtain a license under the PATENT RIGHTS upon the terms and
conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein,
the parties hereto agree as follows:

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

14

 

2 — GRANT

     2.1
M.I.T. hereby grants to LICENSEE the right and license in the TERRITORY for the FIELD OF
USE to practice under the PATENT RIGHTS and, to the extent not prohibited by other patents, to
make, have made, use, lease, sell, and import LICENSED PRODUCTS and to practice the LICENSED
PROCESSES, until the expiration of the last to expire of the PATENT RIGHTS, unless thus Agreement
shall be sooner terminated according to the terms hereof

     2.2 LICENSEE agrees that LICENSED PRODUCTS leased or sold in the United States shall be
manufactured substantially in the United States.

     2.3 In order to establish a period of exclusivity for LICENSEE, M.I.T. hereby agrees that it
shall not grant any other license to make, have made, use, lease, sell and import LICENSED PRODUCTS
or to utilize LICENSED PROCESSES subject to the royalty-free, nonexclusive license rights of the
United States Government per FAR 52.227-11 in the TERRITORY for the FIELD OF USE during the period
of time commencing with the EFFECTIVE DATE and terminating with the expiration the last to expire
of the PATENT RIGHTS, unless exclusivity is terminated earlier pursuant to Paragraph 3.3 below (the
“EXCLUSIVE PERIOD”).

     2.4 At the end of the EXCLUSIVE PERIOD, the license granted hereunder shall become
nonexclusive and shall extend to the end of the term, or terms for which any PATENT RIGHTS been or
shall be issued, unless sooner terminated as hereinafter provided.

     2.5 M.I.T. reserves the right to practice under the PATENT RIGHTS for academic research
purposes.

     2.6 LICENSEE shall have the right to enter into sublicensing agreements for the rights,
privileges and licenses granted hereunder only during the EXCLUSIVE PERIOD of this Agreement. Such
sublicenses may extend past the expiration date of the EXCLUSIVE PERIOD of this Agreement, but any
exclusivity of such sublicenses shall expire upon the expiration of the EXCLUSIVE PERIOD. Upon any
termination of this Agreement, SUBLICENSEEs’ rights shall also terminate, subject to Paragraph 13.6
hereof.

     2.7 LICENSEE agrees to incorporate terms and conditions substantively similar to Articles 2,
5.1, 7.1, 7.2, 7.3, 7.5, 7.6, 8, 9, 10, 12 and 15 of this Agreement into its sublicense agreements,
that are sufficient to enable LICENSEE to comply with this Agreement.

     2.8 LICENSEE agrees to forward to M.I.T. a copy of any and all sublicense agreements promptly
upon execution by the parties.

     2.9 LICENSEE shall not receive from SUBLICENSEEs anything of value in lieu of cash payments in
consideration for any sublicense under this Agreement, without the express prior written permission
of M.I.T.

     2.10 Nothing in this Agreement shall be construed to confer any rights upon LICENSEE by
implication, estoppel or otherwise as to any technology or patent rights of M.I.T. or any other
entity other than the PATENT RIGHTS, regardless of whether such patent rights shall be dominant or
subordinate to any PATENT’ RIGHTS.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

15

 

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

16

 

the payment of royalties hereunder, such conversion shall be made by using the exchange rate
prevailing at the Chase Manhattan Bank (N.A.) on the last business day of the calendar quarterly
reporting period to which such royalty payments relate.

5 — REPORTS AND RECORDS

     5.1 LICENSEE shall keep full, true and accurate books of account containing all particulars
that may be necessary for the purpose of showing the amounts payable to M.I.T. hereunder. Said
books of account shall be kept at LICENSEE’s principal place of business or the principal place of
business of the appropriate division of LICENSEE to which this Agreement relates. Said books and
the supporting data shall be open at all reasonable times for five (5) years following the end of
the calendar year to which they pertain, to the inspection of M.I.T. or its agents for the purpose
of verifying LICENSEE’s royalty statement or compliance in other respects with this Agreement.
Should such inspection lead to the discovery of a greater than Ten
Percent (10%) discrepancy
in reporting to M.I.T.’s detriment, LICENSEE agrees to pay the full cost of such inspection.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

17

 

7 — INFRINGEMENT

     7.1 LICENSEE and M.I.T. shall each inform the other promptly is writing of any alleged
infringement of the PATENT RIGHTS by any third party that comes to the notifying party’s attention
and of any available evidence thereof of which the notifying party is aware.

     7.2 During the term of thus Agreement, LICENSEE shall have the right, but shall not be
obligated, to prosecute at its own expense all infringements in the FIELD OF USE of the PATENT
RIGHTS and, in furtherance of such right, M.I.T. hereby agrees that LICENSEE may include M.I.T. as a
party plaintiff in any such suit, without expense to M.I.T. The total cost of any such
infringement action commenced or defended solely by LICENSEE shall be borne by LICENSEE. No
settlement, consent judgment or other voluntary final disposition of the suit
may be entered into without the consent of M.I.T., which consent shall not unreasonably be
withheld. LICENSEE shall indemnify M.I.T. against any order for costs that may be made against
M.I.T. in such proceedings unless such costs are assessed based on acts, other than the act of
entering into this License Agreement, of M.I.T. or its agents.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

18

 

     7.3 If within six (6) months after having been notified of any alleged infringement, LICENSEE
shall have been unsuccessful in persuading the alleged infringer to desist and shall not have
brought and shall not be diligently prosecuting an infringement action, or if LICENSEE shall notify
M.I.T. at any time prior thereto of its intention not to bring suit against any alleged infringer
for the FIELD OF USE, then, and in those events only, M.I.T. shall have the right, but shall not be
obligated, to prosecute at its own expense any infringement of the PATENT RIGHTS for the FIELD OF
USE, and M.I.T. may, for such purposes, use the name of LICENSEE as a party plaintiff in any such
suit, without expense to LICENSEE. The total cost of any such infringement action commenced or
defended solely by M.I.T. shall be borne by M.I.T., and M.I.T. shall keep any recovery or damages for
past infringement derived therefrom.

     7.5 In the event that a declaratory judgment action alleging invalidity or noninfringement of
any of the PATENT RIGHTS shall be brought against M.I.T. or LICENSEE, M.I.T., at its option, shall
have the right, within twenty (20) days after commencement of such action., to take over the sole
defense of the action at its own expense. If M.I.T. shall not exercise this right, LICENSEE may
take over the sole defense at LICENSEE’s sole expense, subject to Paragraph 7.4.

     7.6 In any infringement suit as either party may institute to enforce the PATENT RIGHTS
pursuant to this Agreement or in the event of defense by either party pursuant to Paragraph 7.5,
the other party hereto shall, at the request and expense of the party initiating or defending such
suit, cooperate in all respects and, to the extent possible, have its employees
testify when requested and make available relevant records, papers, information, samples,
specimens, and the like.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

19

 

8 — PRODUCT LIABILITY

     8.1 LICENSEE shall at all times during the term of this Agreement and thereafter, indemnify,
defend and hold M.I.T., its trustees, directors, officers, employees and affiliates, harmless
against all claims, proceedings, demands and liabilities of any kind whatsoever, including legal
expenses and reasonable attorneys’ fees, arising out of the death of or injury to any person or
persons or out of any damage to property, resulting from the production, manufacture, sale, use,
lease, consumption or advertisement of the LICENSED PRODUCT(s) and/or LICENSED PROCESS(es) or
arising from any obligation of LICENSEE hereunder.

     8.2 LICENSEE shall obtain and carry in full force and effect commercial, general liability
insurance, including product liability and errors and omissions insurance, which shall protect
LICENSEE and M.I.T. with respect to events covered by Paragraph 8.1 above. Such insurance shall be
written by a reputable insurance company authorized to do business in the Commonwealth of
Massachusetts, shall list M.I.T. as an additional named insured thereunder, shall be endorsed to
include product liability coverage and shall require thirty (30) days written notice to be given to
M.I.T. prior to any cancellation or material change thereof. The limits of such insurance shall not
be less than One Million Dollars ($1,000,000) per occurrence with an aggregate of Three Minion
Dollars ($3,000,000) for personal injury including death; One Million Dollars ($1,000,000) per
occurrence with an aggregate of Three Million Dollars ($3,000,000) for property damage; and One
Million Dollars ($1,000,000) per occurrence with an aggregate of Three Million Dollars ($3,000,000)
for errors and omissions. LICENSEE shall provide M.I.T. with Certificates of Insurance evidencing
the same.

     8.3 EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, M.I.T., ITS TRUSTEES, DIRECTORS,
OFFICERS, EMPLOYEES, AND AFFILIATES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND,
EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR
A PARTICULAR PURPOSE, VALIDITY OF PATENT RIGHTS CLAMS, ISSUED OR PENDING, AND THE ABSENCE OP LATENT
OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A
REPRESENTATION MADE OR WARRANTY GIVEN BY M.I.T. THAT THE PRACTICE BY LICENSEE OF THE LICENSE GRANTED
HEREUNDER SHALL NOT INFRINGE THE PATENT RIGHTS OF ANY THIRD PARTY. IN NO EVENT SHALL M.I.T., ITS
TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES AND AFFILIATES BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL
DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS
OF WHETHER M.I.T. SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW OF THE
POSSIBILITY OF THE FOREGOING.

9 — EXPORT CONTROLS

     LICENSEE acknowledges that it is subject to United States laws and regulations controlling the
export of technical data, computer software, laboratory prototypes and other commodities (including
the Arms Export Control Act, as amended and the United States Department of Commerce Export
Administration Regulations). The transfer of such items may
require a license from the cognizant agency of the United States Government and/or written
assurances by LICENSEE that LICENSEE shall not export data or commodities to certain foreign
countries without prior approval of such agency. M.I.T. neither represents that a license shall not
be required nor that, if required, it shall be issued.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

20

 

10 — NON-USE OF NAMES

     LICENSEE
shall not use the names or trademarks of the Massachusetts Institute
of Technology or Lincoln Laboratory, nor any adaptation
thereof, nor the names of any of their employees, in any advertising, promotional or sales
literature without prior written consent obtained from M.I.T., or said employee, in each case,
except that LICENSEE may state that it is licensed by M.I.T. under one or more of the patents and/or
applications comprising the PATENT RIGHTS.

12 — DISPUTE RESOLUTION

     12.1 Except for the right of either party to apply to a court of competent jurisdiction for a
temporary restraining order, a preliminary injunction, or other equitable relief to preserve the
status quo or prevent irreparable harm, any and all claims, disputes or controversies arising
under, out of, or in connection with the Agreement, including any dispute relating to patent
validity or infringement, which the parties shall be unable to resolve within sixty (60) days shall
be mediated in good faith. The party raising such dispute shall promptly advise the other party of
such claim, dispute or controversy in a writing which describes in reasonable detail the nature of
such dispute. By not later than five (5) business days after the recipient has received such
notice of dispute, each party shall have selected for itself a representative who shall have the
authority to bind such party, and shall additionally have advised the other party in writing of the
name and title of such representative. By not later than ten (10) business days after the date of
such notice of dispute, the party against whom the dispute shall be raised shall select a mediation
firm in the Boston area and such representatives shall schedule a date with such firm for a
mediation hearing. The parties shall enter into good faith mediation and shall share the costs
equally. If the representatives of the parties have not been able to resolve the dispute within
fifteen (15) business days after such mediation hearing, then any and all claims, disputes or
controversies arising under, out of, or in connection with this Agreement, including any dispute
relating to patent validity or infringement, shall be resolved by final and binding arbitration in
Boston, Massachusetts under the rules of the American Arbitration Association, or the Patent
Arbitration Rules if applicable, then obtaining. The arbitrators shall have no power to add to,
subtract from or modify any of the terms or conditions of this Agreement, nor to award punitive
damages. Any award rendered in such arbitration may be enforced by either party in either the
courts of the Commonwealth of Massachusetts or in the United States District Court for the District
of Massachusetts, to whose jurisdiction for such purposes M.I.T. and LICENSEE each hereby
irrevocably consents and submits.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

21

 

     12.2 Notwithstanding the foregoing, nothing in this Article shall be construed to waive any
rights or timely performance of any obligations existing under this Agreement.

13 — TERMINATION

     13.1 If LICENSEE shall cease to carry on its business, this Agreement shall terminate upon
notice by M.I.T.

     13.2 Should LICENSEE fail to make any payment whatsoever due and payable to M.I.T. hereunder,
M.I.T. shall have the right to terminate this Agreement effective on thirty (30) days’ notice,
unless LICENSEE shall make all such payments to M.I.T. within said thirty (30) day period. Upon the
expiration of the thirty (30) day period, if LICENSEE shall not have made all such payments to
M.I.T., the rights, privileges and license granted hereunder shall automatically terminate.

     13.3 Upon any material breach or default of this Agreement by LICENSEE (not including breach
or default under Paragraph 3.3), other than those occurrences set out in Paragraphs 13.1 and 13.2
hereinabove, which shall always take precedence in that order over any material breach or default
referred to in this Paragraph 13.3, M.I.T. shall have the right to terminate this Agreement and the
rights, privileges and license granted hereunder effective on ninety (90) days’ notice to LICENSEE.
Such termination shall become automatically effective unless LICENSEE shall have cured any such
material breach or default prior to the expiration of the ninety (90) day period.

     13.4 LICENSEE shall have the right to terminate this Agreement at any time on sixty (60) days’
notice to M.I.T., and upon payment of all amounts due M.I.T. through the effective date of the
termination.

     13.5 Upon termination of this Agreement for any reason, nothing herein shall be construed to
release either party from any obligation that matured prior to the effective date of such
termination; and Articles 1, 8, 9, 10, 12, 13.5, 13.6, and 15 shall survive any such termination.
LICENSEE and any SUBLICENSEE thereof may, however, after the effective date of such termination,
sell all LICENSED PRODUCTS, and complete LICENSED PRODUCTS in the process of manufacture at the
time of such termination, and sell the same, provided that LICENSEE shall make the payments to
M.I.T. as required by Article 4 of this Agreement and shall submit the reports required by Article 5
hereof.

     13.6 Upon termination of this Agreement for any reason, any SUBLICENSEE not then in default
shall have the right to seek a license from M.I.T. M.I.T. agrees to negotiate such licenses in good
faith under reasonable terms and conditions.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

22

 

15 — MISCELLANEOUS PROVISIONS

     15.1 All disputes arising out of or related to this Agreement, or the performance,
enforcement, breach or termination hereof, and any remedies relating thereto, shall be construed,
governed, interpreted and applied in accordance with the laws of the Commonwealth of Massachusetts,
U.S.A., except that questions affecting the construction and effect of any patent shad be
determined by the law of the country in which the patent shall have been granted.

     15.2 The parties hereto acknowledge that this Agreement sets forth the entire Agreement and
understanding of the parties hereto as to the subject matter hereof, and shall not be subject to
any change or modification except by the execution of a written instrument signed by the parties.

     15.3 The provisions of this Agreement are severable, and in the event that any provisions of
this Agreement shall be determined to be invalid or unenforceable under any controlling body of the
law, such invalidity or unenforceability shall not in any way affect the validity or enforceability
of the remaining provisions hereof.

     15.4 LICENSEE agrees to mark the LICENSED PRODUCTS sold in the United States with all
applicable United States patent numbers. All LICENSED PRODUCTS shipped to or sold in other
countries shall be marked in such a manner as to conform with the patent laws and practice of the
country of manufacture or Sale.

     15.5 The failure of either party to assert a right hereunder or to insist upon compliance with
any term or condition of this Agreement shall not constitute a waiver of that right or excuse a
similar subsequent failure to perform any such term or condition by the other party.

     IN WITNESS WHEREOF the parties have duly executed this Agreement the day and year set forth
below.

	 	 	 	 	 	 	 
	MASSACHUSETTS INSTITUTE
OF TECHNOLOGY	 	SENSABLE TECHNOLOGIES, INC.
	 
	 	 	 	 	 	 
	By

	 	/s/ Lita L. Nelson
	 	By
	 	/s/ William K. Aulet
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name

	 	Lita L. Nelson
	 	Name
	 	Bill Aulet
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title

	 	Director, Technological Licensing Office
	 	Title
	 	President
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date

	 	July 18, 1997
	 	Date
	 	July 15, 1997
	 

	 	 
	 	 	 	 

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

23

 

APPENDIX A

PATENT RIGHTS on the EFFECTIVE DATE

UNITED STATES PATENT RIGHTS

[***]

Title “[***]”

By [***]

Filed on [***]

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

24

 

[SENSABLE TECHNOLOGIES LETTERHEAD]

May 23, 2006

Fritz L. LaPorte

V.P. & Chief Financial Officer

MAKO Surgical Corp.

2555 Davie Road

Fort Lauderdale, FL 33317

Dear Fritz:

Under our Agreement dated May 24, 2006, Optional Patents are defined as:

“Optional Patents” means those certain patents and patent applications identified on
a completed Schedule 2 that will be provided to MAKO by SensAble upon request at any time
after the payment of the Initial Consideration by MAKO, to which SensAble has rights as
described therein, along with any foreign counterpart for such Optional Patents. The
completed Schedule 2 so provided by SensAble will replace the Schedule 2 attached hereto and
be incorporated into this Agreement as though it were set forth is full upon the date of its
execution.

I have attached a revised Schedule 2 that will replace the Schedule 2 attached to the original
agreement and be incorporated therein as provided above.

On behalf of SensAble Technologies, I hereby certify that the attached Schedule 2 is a complete
statement of all Optional Patents as of the date of this letter.

Sincerely,

	 	 	 	 	 
	 	 	 
	 	                                              Sincerely,
 	 
	 	 	 
	 	                                              /s/ Robert Kittler
 	 
	 	 	 
	 	Robert A. Kittler

Chief Financial Officer 	 
	 

Attachment

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

 

 

Schedule 2

Optional Patents

	 	 	 
	 
	 	 
	Issued Patents:
	 	 
	 
	 	 
	[***]
	 	 
	[***]
	 	 
	[***]
	 	 
	[***]
	 	 
	[***]

	 	Allowed Applications:
	[***]
	 	 
	[***]

	 	[***]
	[***]

	 	[***]
	[***]
	 	 
	[***]
	 	 
	[***]

	 	Applications:
	[***]
	 	 
	[***]

	 	[***]
	[***]

	 	[***]
	[***]

	 	[***]
	[***]

	 	[***]
	[***]

	 	[***]
	[***]

	 	[***]
	[***]

	 	[***]
	[***]

	 	[***]
	[***]

	 	[***]
	[***]

	 	[***]
	[***]

	 	[***]
	[***]

	 	[***]
	 
	 	 
	Design Patents:
	 	 
	 
	 	 
	[***]
	 	 
	[***]
	 	 
	[***]
	 	 
	[***]
	 	 

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

 

 

[MAKO LETTERHEAD]

BY E-MAIL TO kittler@sensable.com, FAX TO (781) 937-8325 AND UPS

OVERNIGHT

May 23, 2007

Robert Kittler

VP of Finance & Operations

SensAble Technologies, Inc.

15 Constitution Way

Woburn, MA 01801

     Re: Exercise of Option

Dear Bob:

This communication shall serve as written notice of the decision by MAKO Surgical Corp. (“MAKO”) to
exercise the Option contained in that certain Sublicense Agreement, by and between MAKO and
SensAble Technologies, Inc. (“SensAble”), dated May 24, 2006 (the “Sublicense”).

As contemplated by the Sublicense, MAKO hereby designates the following five (5) patents to be the
Additional Optioned Patents, covered by the Additional License:

1. U.S. Patent No. [***], [***]

2. U.S. Patent No. [***], [***]

3. U.S. Patent No. [***], [***]

4. U.S. Patent No. [***], [***]

5. U.S. Patent Application Serial No. [***], [***]

The Option Exercise Price of $[***] is being tendered contemporaneously herewith via wire transfer
as per the instructions provided by SensAble to MAKO. Kindly confirm receipt of the funds in
writing.

Please note that the selection of these Additional Optioned Patents was in reliance of SensAble’s
representations that it had provided MAKO with the most up to date schedule of Optional Patents
from which to choose.

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

 

 

Letter to R. Kittler

May 23, 2007

Page 2

Finally, the Additional License allows MAKO to make, have made, use, sell, offer to sell and to
import MAKO Products in the MAKO Field, all as defined in the Sublicense. By way of your
correspondence to MAKO on May 21, 2007, SensAble set forth its understanding and position as to the
meaning and scope of the “MAKO Field” under the Sublicense. By way of this letter, MAKO hereby
informs SensAble of (a) its rejection of SensAble’s attempts to narrow the applicability of the
MAKO Field and (b) its reservation of all rights relative to that issue.

Please feel free to contact me with any questions.

Sincerely,

/s/ Menashe Frank

Menashe Frank

Vice President & General Counsel

	 	 	 
	cc:

	 	Curt Rawley, SensAble Chairman and CEO (crawley@sensable.com)
	 

	 	Bob Steingart, SensAble President and COO (bsteingart@sensable.com)
	 

	 	Karen Copenhaver, Counsel for SensAble (kcopenhaver@choate.com)
	 

	 	Dr. Maurice Ferré, MAKO Chief Executive Officer
	 

	 	Fritz LaPorte, MAKO Chief Financial Officer
	 

	 	Rony Abovitz, MAKO Chief Technology Officer
	 

	 	Arthur Quaid, MAKO Chief of Robotics
	 

	 	Joann Corey, MAKO IP Counsel

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.EX-10.29 License Agreement w/Trigon Incorporated

 

EXHIBIT 10.29

EXECUTION VERSION

LICENSE AGREEMENT

     This License Agreement (the “Agreement”), is made and entered into as of the last date of
execution appearing on the signature page hereto (the “Effective Date”), by and between Trigon
Incorporated, a Pennsylvania corporation, having its principal place of business in McMurray,
Pennsylvania and which operates the business division it calls “Stelkast” (“STELKAST”) and MAKO
Surgical Corp., a Delaware corporation, having its principal place of business in Hollywood,
Florida (“MAKO”). STELKAST and MAKO are sometimes referred to herein individually as a “Party” and
collectively as the “Parties.”

Recitals

     WHEREAS, STELKAST has developed a certain unicondylar knee implant system and components
thereof, including prostheses and related medical instruments and surgical techniques
(collectively, and as used in both a singular and plural context, “Implant”);

     WHEREAS, MAKO desires to license certain rights relating to the Implant and STELKAST is
willing to license MAKO those rights under the terms and conditions of this Agreement;

     WHEREAS, STELKAST and MAKO entered into that certain Binding Letter of Intent, dated April 27,
2005 in which STELKAST agreed to grant to MAKO a non-exclusive, worldwide license to certain rights
relating to the Implant (the “LOI”); and

     WHEREAS, STELKAST and MAKO are concurrently entering into that certain Supply Agreement, by
which STELKAST agrees to supply to MAKO commercial quantities of the Implant for resale during the
Transition Period (as defined below).

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and undertakings
set forth herein, and other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

ARTICLE I.

Definitions

     1.1 An “Affiliate” of a Party means an entity directly or indirectly controlling, controlled
by or under common control with that Party, where control means the ownership or control, directly
or indirectly, of more than fifty percent of all of the voting power of the shares (or other
securities or rights) entitled to vote for the election of directors or other governing authority,
as of the date of this Agreement or hereafter during the Effective Period of this Agreement.
However, the entity will be considered an Affiliate only for the time during which such control
exists.

     1.2 “Effective Date” has the meaning given in the preamble.

     1.3 “Implant” has the meaning given to it in the recitals.

Page 1 

 

     1.4 “Licensed Implant Methods” means surgical techniques and processes for implanting the
Implant and using associated medical instruments and equipment.

     1.5 “Licensed Technical Information” means specifications and technical documents relating to
the manufacture, operation, use and implantation of the Implant (including all prior versions and
the most current version of it) that are in the possession of STELKAST or its employees,
representatives or agents on or before the Effective Date, including without limitation FDA design
control documents DHF, DMR (design requirement and criteria, specified requirements, V&V, design
transfer), clinical data and implant follow-ups, and manufacturing specifications and know-how.

     1.6 “Licensed IP Rights” means all patents, copyrights, proprietary rights in technical
information and similar industrial and intellectual property rights throughout the world that
pertain in any respect to the Implant, and that are owned by STELKAST or that STELKAST has the
right to license as of the Effective Date.

     1.7 “Transition Period” has the meaning given to it in Section 3.3.

ARTICLE II.

Grant of License

     2.1 Grant of License to MAKO. Subject to all of the terms and conditions of this Agreement,
STELKAST grants to MAKO and its Affiliates a non-transferable (except as expressly permitted under
Section 10.1), non-exclusive, royalty-free, non-terminable and irrevocable (except as expressly
provided in this Agreement) worldwide license under the Licensed IP Rights,

     (a) to make, have made, use, offer for sale, sell, and import the Implant;

     (b) to use, disclose, reproduce, distribute, display, perform, and prepare derivatives
of Licensed Technical Information in connection with developing and manufacturing the
Implant , and to authorize others to do so on behalf of MAKO or its Affliates for the
Implant to be sold by MAKO or its Affliates;

     (c) to use, disclose, reproduce, distribute, display, perform, and prepare derivatives
of Licensed Technical Information in connection with selling, distributing, implanting,
testing and using the Implant , and to authorize others to do so;

     (d) to use the Licensed Implant Methods and to authorize others to use the Licensed
Implant Methods, in connection with the Implant.

     2.2 Sublicensing. The license granted to MAKO under Section 2.1 does not include any right to
MAKO to grant sublicenses, except that, without limiting the scope of Section 2.1, MAKO may grant
limited, non-transferable sublicenses, under the Licensed IP Rights (i) to its vendors for the sole
and limited purposes of having components made, and/or the Implant assembled on behalf of MAKO;
(ii) to its sales representatives, distributors and other sales agents to market and sell the
Implant; and (iii) to medical professional, organizations and support staff to use the Licensed
Implant Methods, Technical Information and the Implant in connection with implanting the the
Implant and patient care.

Page 2 

 

     2.3 No Other Licenses; No Assignments. Other than the license expressly set forth above,
neither Party is granting to the other any license or sublicense, whether by implication, estoppel
or otherwise. Except as otherwise expressly stated, nothing in this Agreement is intended to
transfer title to or other ownership interest in any intellectual property right. The foregoing
grant of sublicense does not constitute a non-infringement representation, warranty or covenant.

ARTICLE III.

Transfer of Information and Assistance

     3.1 Transfer of Technical Information. STELKAST will deliver to MAKO copies of all Licensed
Technical Information promptly upon the request of MAKO at any time during the Effective Period,
including without limitation relevant 510(K)s, technical files, know how, test data, product
specifications, drawings, design history files, validations, clinical data, and risk analysis
associated with current or prior unicondylar knee implant systems designed or manufactured by
STELKAST, and electronic CAD files in a standard, commercially available format containing all
manufacturing layouts and specifications for the most current version of the Implant (prostheses
and instruments) as of the Effective Date.

     3.2 Consignment of Instrumentation. STELKAST will transfer to MAKO on consignment, promptly
at its request, two complete sets of instruments for the Implant, without charge, for clinical use
by MAKO and its agents and representatives at designated sites. The instruments must include all
required instruments and trials to perform a unicondylar knee replacement procedure using the
Implant and surgical techniques used in the procedure as of the Effective Date. MAKO will have no
obligation to return the consigned sets of instruments unless the Agreement is terminated or
materially breached by MAKO and the breach is not timely cured.

     3.3 Technical Assistance. STELKAST will provide MAKO, without additional charge, technical
support during the period from the Effective Date until the date on which MAKO is able to make or
have made the Implant without the assistance of STELKAST (the “Transition Period”);
provided however that STELKAST will be relieved of any obligations under this Section 3.3 (a)
should MAKO fail to use its best efforts to minimize the duration of the Transition Period, or (b)
in any case, after the second (2nd) anniversary of the Effective Date.

     3.4 Tooling. STELKAST will use its best efforts to assist MAKO in manufacturing the Implant
in the Unites States using STELKAST’s manufacturers and tooling in existence as of the Effective
Date. Such best efforts will include, but not be limited to, making available to MAKO at no
additional cost production tooling and processes used by STELKAST as of the Effective Date.

     3.5 Clinical Training, Data and Support. Upon MAKO’s reasonable request, STELKAST will use
its best efforts to provide MAKO or its designees, without additional charge, clinical training on
surgical techniques in use as of the Effective Date for the Implant, including without limitation
access to observe clinical cases, in order to enable MAKO to support procedures using the Implant.
During the Transition Period, STELKAST will provided MAKO with clinical data and follow-ups on the
use of the Implant.

Page 3 

 

     3.6 FDA Approval. MAKO may sell Implants (whether purchased from STELKAST pursuant to the
Supply Agreement or made by MAKO pursuant to this License Agreement) under STELKAST’s Premarket
Notification 510(k) until MAKO receives a Premarket Notification 510(k). MAKO will use its best
effort to receive a Premarket Notification 510(k) as promptly as shall be reasonably practical
after the Effective Date. STELKAST will use its best effort, using data existing as of the
Effective Date, to assist MAKO in applying for and obtaining a Premarket Notification 510(k) and a
CE marking for the Implant by providing MAKO with all required technical information and
appropriate documentation within STELKAST’s possession or control, including, without limitation,
clinical data, a complete copy of any regulatory filing for the Implant made by STELKAST and other
relevant help at no additional charge.

ARTICLE IV.

Publicity and Confidentiality

     4.1 Confidentiality of Agreement. The terms, but not the existence, of this Agreement and the
licenses granted herein will be treated as confidential information by the Parties, and neither
Party may disclose such terms to any third party without the prior written consent of the other
Party, except as follows:

     (a) Each Party may represent to third parties that MAKO is licensed as provided by this
Agreement.

     (b) Each Party may (i) disclose this Agreement and its terms to potential acquirers of,
investors in or lenders to such Party (including any representatives of the Parties in such
transaction), or disclosures reasonably necessary in connection with the divestiture,
merger, transfer or sale of all or any portion of a Party’s respective businesses, but only
if such disclosure is made pursuant to a written confidentiality agreement binding upon such
potential acquirer, investor, lender or other parties, which obligates such party not to
disclose and to take reasonable precautions against unauthorized disclosure of the Agreement
and its terms; (ii) disclose this Agreement and its terms in any arbitration, mediation or
other official dispute resolution procedure pursuant to a written confidentiality agreement
binding upon the parties, which obligates such parties not to disclose and to take
reasonable precautions against unauthorized disclosure of the Agreement and its terms; (iii)
disclose this Agreement and its terms to its professional advisors who are under an ethical
obligation of confidentiality in order to comply with, or determine compliance with, any
law, rule, regulation, or accounting or similar requirement; and (iv) disclose this
Agreement and its terms, in response to a judicial or governmental request, requirement or
order, or as required by law, on the condition that such Party provides the other Party with
sufficient prior notice in order to contest such request, requirement or order or seek
protective measures. In addition, this Section 4.1 will not prevent a Party from making
disclosures reasonably determined by such Party to be required by law or a stock market or
exchange.

     4.2 Publicity and Trademarks. Nothing in this Agreement is intended nor shall be construed as
conferring upon either Party or its Affiliates any right to include in advertising, packaging or
other commercial activities related to the Implant, any reference to the other

Page 4 

 

Party (or any of its Affiliates), its trade names, trademarks or service marks in a manner
which would be likely to cause confusion or to indicate that the Implant is in any way certified by
the other Party hereto or its Affiliates.

     4.3 Obligations of Confidentiality with Respect to Technical Information.

     (a) MAKO will hold all Licensed Technical Information provided by STELKAST to MAKO in
confidence and take reasonable precautions to maintain and protect the confidentiality of
the Licensed Technical Information. MAKO may disclose and share the Licensed Technical
Information to employees, contractors, representatives, and others who have a need to know
it, so long as each such person is obligated in writing not to disclose the information to
others and to use it only for the purposes for which access is being given. Parties other
than employees having access to the Licensed Technical Information must be licensed to use
the Licensed Technical Information, and may only use it solely in connection with the
license granted in Section 2.1.

     (b) Exceptions. Notwithstanding the foregoing obligations of confidentiality,

     (i) MAKO may make the Implant available to third parties, and all related
user documentation incorporating or made using the Licensed Technical Information.

     (ii) MAKO may disclose Licensed Technical Information as required by law, but
only to the extent required by law, and in response to a valid order of a court or
other government body or any political subdivision thereof, but only if MAKO has
promptly notified STELKAST of such order and taken reasonable action to seek a
protective order limiting the scope of the required disclosure.

     (iii) No Licensed Technical Information is required to be treated as
confidential if such information, (i) is or becomes publicly known through no
unauthorized act of MAKO or its Affiliates, (ii) is rightfully received by MAKO
from a third party without obligation of confidentiality, (iii) is approved in
writing by STELKAST for public disclosure, or (iv) was disclosed to MAKO ten years
prior.

ARTICLE V.

Payments

     5.1 License Fee. In full consideration for the license granted by STELKAST to MAKO and the
transfer of Technical information, MAKO will pay to STELKAST the sum
of $350,000 as follows:

     (a)
$25,000 previously paid by MAKO to STELKAST in connection with the LOI will be
credited to this sum upon execution of this Agreement;

     (b)
$25,000 upon execution of this Agreement;

Page 5 

 

     (c)
$120,000 two months from the Effective Date or September 15, 2005, whichever is
earlier;

     (d)
$180,000 four months from the Effective Date or November 15, 2005, whichever is
earlier.

ARTICLE VI.

Other Obligations

     6.1 Marking. MAKO will provide appropriate labeling on the Implant as required by the Food
and Drug Administration under 21 C.F.R. Part 801.

     6.2 CE Marking Data. Should either Party desire to purchase any data generated by the other
in preparing for a CE filing, the Party with the data will sell to the other Party such data for a
fair market value, which will be negotiated by the Parties in good faith.

     6.3 Termination of LOI. The LOI and all of its obligations are hereby terminated.

ARTICLE VII.

Representations, Warranties and Covenants

     7.1 STELKAST Representations. STELKAST represents, warrants and covenants to MAKO as to the
following as of the Effective Date:

     (a) The execution, delivery and performance by STELKAST of this Agreement do not breach
any term or provision of or constitute a default under any material indenture, mortgage,
deed of trust, contract, agreement, lease or other commitment or instrument to which
STELKAST is a party or by which STELKAST or its assets or properties are bound, do not
conflict with any provision of the articles of incorporation or bylaws of STELKAST and do
not constitute an event which, with the lapse of time or action by a third party, could
result in any default under any of the foregoing.

     (b) STELKAST has full power, authority and legal right to enter into this Agreement and
grant the sublicenses and rights set forth in this Agreement and has not made, and will not
make, any commitments to others inconsistent with or in derogation of such rights. Upon
execution and delivery by STELKAST of this Agreement it will be a valid and binding
obligation of STELKAST, enforceable in accordance with its terms, except as enforcement may
be limited by bankruptcy, insolvency, reorganization or similar laws affecting the rights of
creditors generally. Notwithstanding the foregoing, no representation or warranty is made
regarding the availability of equitable remedies.

     (c) To the actual knowledge of STELKAST as of the Effective Date, the manufacture, sale
and use of the Implant and the use of Licensed Technical Information as permitted by this
Agreement, will not infringe the patents or copyrights of, or misappropriated information
of, a third party. Notwithstanding any of the foregoing in this Section 6.1(c), the failure
by STELKAST to conduct an investigation will not be

Page 6 

 

deemed to be a relevant factor in any determination as to whether any warranty or
representation by STELKAST under this Section 6.1(c) is or has been breached

     (d) STELKAST has the requisite institutional knowledge and commercially adequate
expertise to provide the technical assistance and clinical support services it is offering
and/or pledging to provide to MAKO under this Agreement.

     (e) STELKAST maintains adequate insurance covering the Implant (including product
liability and commercial general liability insurance), as would be acquired and maintained
by a reasonable and prudent businessperson carrying on a similar line of business, but in no
case for an amount of less than Four Million Dollars ($4,000,000) per claim and/or
$5,000,000 in the aggregate (“Adequate Insurance”). Such Adequate Insurance shall at all
times during the Effective Period and for not less than five (5) years thereafter insure
MAKO, its Board of Directors, officers, employees, agents and consultants as insured
parties.

     7.2 MAKO Representations and Warranties. MAKO represents and warrants the following:

     (a) The execution, delivery and performance by MAKO of this Agreement do not breach any
term or provision of or constitute a default under any material indenture, mortgage, deed of
trust, contract, agreement, lease or other commitment or instrument to which MAKO is a party
or by which MAKO or its assets or properties are bound, do not conflict with any provision
of the articles of incorporation or bylaws of MAKO and do not constitute an event which,
with the lapse of time or action by a third party, could result in any default under any of
the foregoing.

     (b) MAKO has full power, authority and legal right to enter into this Agreement. Upon
execution and delivery by MAKO of this Agreement it will be a valid and binding obligation
of MAKO, enforceable in accordance with its terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization or similar laws affecting the rights of creditors
generally. Notwithstanding the foregoing, no representation or warranty is made regarding
the availability of equitable remedies.

     (c) MAKO maintains adequate insurance (including product liability and commercial
general liability insurance), as would be acquired and maintained by a reasonable and
prudent businessperson carrying on a similar line of business, but in no case for an amount
of less than Four Million Dollars ($4,000,000) per claim and/or $5,000,000 in the aggregate
(“Adequate Insurance”). Such Adequate Insurance shall at all times during the
Effective Period and for not less than five (5) years thereafter insure STELKAST, its Board
of Directors, officers, employees, agents and consultants as insured parties.

     7.3 Disclaimers.

     (a) Other than the representations, warranties and covenants expressly made in this
Agreement, neither Party, nor any of its Affiliates, make any representations or extend any
warranties of any kind, express or implied. STELKAST and MAKO each

Page 7 

 

disclaim all implied warranties, including without limitation warranties of
merchantability, fitness for a particular purpose, and non-infringement.

     (b) EXCEPT IN CONNECTION WITH INDEMNIFICATION FOR DAMAGES AWARDED FOR THIRD PARTY
CLAIMS OF PERSONAL INJURY PURSUANT TO ARTICLE VIII, OR AS EXPRESSLY PROVIDED OTHERWISE IN
THIS AGREEMENT, IN NO EVENT WILL MAKO OR STELKAST BE LIABLE FOR ANY PUNITIVE, INDIRECT,
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND WITH RESPECT TO ANY SUBJECT MATTER
OF THIS AGREEMENT UNDER ANY THEORY, INCLUDING CONTRACT, NEGLIGENCE, STRICT LIABILITY OR
OTHER LEGAL OR EQUITABLE THEORY.

ARTICLE VIII.

Indemnification

     8.1 Indemnification. STELKAST agrees to indemnify in respect of, and hold MAKO and its
officers, directors, employees and agents harmless against, any and all damages, claims,
deficiencies, losses, including taxes, and all expenses (including interest, penalties, and
reasonable attorneys’ and accountants’ fees and disbursements but reduced by any tax savings,
benefits or offsets to which MAKO shall be entitled directly or indirectly by reason thereof)
(collectively “Damages”) resulting from any misrepresentation, breach of warranty, or failure to
perform any covenant or agreement on the part of STELKAST under this Agreement. STELKAST further
agrees to indemnify in respect of, and hold MAKO and its respective officers, directors, employees
and agents harmless against, all Damages resulting from personal injuries and deaths from the use
of products manufactured, produced, sold or marketed by STELKAST or its Affiliates, except to the
extent such injury or death results from (i) the negligence, gross negligence or intentional
misconduct of MAKO and its employees, officers and directors, or any other person using the
Products, or (ii) a change made to the Product after it has been manufactured by STELKAST or the
use of a technique with respect to the Product other than a technique developed and/or endorsed by
STELKAST.

     8.2 MAKO agrees to indemnify in respect of, and hold, STELKAST and its officers, directors,
employees and agents harmless against, any and all Damages resulting from any misrepresentation,
breach of warranty, or failure to perform any covenant or agreement on the part of MAKO under this
Agreement. MAKO further agrees to indemnify in respect of, and hold STELKAST and its respective
officers, directors, employees and agents harmless against, all Damages resulting from personal
injuries and deaths from the use of any products (other than products made by STELKAST for
distribution by MAKO) manufactured, produced, sold or marketed by MAKO or its Affiliates, except to
the extent such injury or death results from the negligence, gross negligence or intentional
misconduct of STELKAST and its employees, officers and directors.

Page 8 

 

ARTICLE IX.

Term, Termination and Expiration

     9.1 Term. This Agreement will become effective as of the Effective Date and will continue
until terminated (the “Effective Period”) according to its terms or until expiration of all
Licensed IP Rights (the “Expiration”).

     9.2 Voluntary Termination By MAKO. MAKO may voluntarily terminate this Agreement upon 30 days
written notice to STELKAST and following payment of all sums under Article V hereto, whether such
sums are due before, on or after the effective date of such termination.

     9.3 Termination for Non-Payment. Subject to Section 9.4, failure by MAKO to make timely
payment of any amounts due and owing pursuant to Article IV shall constitute a material breach of
this Agreement and shall, after written notice by STELKAST and failure by MAKO to cure such breach
within thirty (30) days of service of such notice, render the Agreement (and any license granted
hereunder) terminable and voidable by STELKAST in its sole discretion, immediately upon written
notice to MAKO.

     9.4 Material Breach. Each Party may terminate this Agreement upon a material breach or
default by the other Party of the Agreement by giving notice to breaching party. If the material
breach or default is not cured within 60 days, the non-breaching Party may terminate this Agreement
immediately upon notice to the breaching Party..

     9.5 Survival. Articles IV, VIII and IX will survive and continue after termination of this
Agreement. Any amounts due under Articles V prior to termination will remain due and become
immediately payable upon termination. Upon termination prior to Expiration, MAKO must stop all use
of all Licensed Technical Information, except, however, that MAKO may retain and continue to use
the Licensed Technical Information for solely for purposes of supporting use of the Implant as sold
or distributed prior to termination. MAKO may also sell any inventory of the Implant ordered or on
hand prior to termination. For the avoidance of doubt, termination of this Agreement does not
affect the sale of the Implant purchased from STELKAST for resale by MAKO.

ARTICLE X.

Miscellaneous Provisions

     10.1 Assignment. STELKAST may assign this Agreement upon notice to MAKO. This Agreement
shall not be assignable by MAKO absent the written consent of STELKAST, except that no such consent
will be required for succession by merger, consolidation, sale of all or substantially all of the
assets, or change of control of MAKO, but only if the assignee, successor or surviving entity
agrees to be bound in writing to all of its terms and conditions. This Agreement will be binding
on successors in interest and permitted assigns. An assignment other than as expressly permitted
by this Section 10.1 will be void and shall constitute a material breach of this Agreement.

     10.2 Notices. All notices and other communications which are required or which may be given
under the provisions of this Agreement will be in writing and may be delivered (a) personally, (b)
by facsimile transmission, (c) expedited delivery service with proof of

Page 9 

 

delivery or (d) sent by United States Mail, postage prepaid, registered or certified, return
receipt requested, addressed as follows:

	 	 	 	 	 
	 

	 	If to STELKAST:
	 	Trigon Incorporated
	 

	 	 	 	200 Hidden Valley Road
	 

	 	 	 	McMurray, PA 15317
	 

	 	 	 	Fax: (724) 941-5984
	 

	 	 	 	Attention: Peter N. Stephans
	 
	 	 	 	 
	 

	 	If to MAKO:
	 	MAKO Surgical Corp.
	 

	 	 	 	2901 Simms St.
	 

	 	 	 	Hollywood, FL 33020
	 

	 	 	 	Fax: (954) 927-0446
	 

	 	 	 	Attention: General Counsel

or to such other address designated by the Parties as provided above. Any such notice will be
deemed to have been given either at the time of personal delivery or, in the case of delivery
service or mail, as of the date of first attempted delivery at the address and in the manner
provided herein.

     10.3 Choice of Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF DELAWARE, EXCLUSIVE OF ITS CONFLICTS OF LAW PRINCIPLES.

     10.4 Captions. The captions, headings, and arrangements used in this Agreement are for
convenience only and do not in any way affect, limit, amplify, or modify its terms and provisions.

     10.5 No Strict Construction. This Agreement is the result of substantial negotiations among
the Parties and their counsel and has been prepared by their joint efforts. Accordingly, the fact
that counsel to one Party or another may have drafted this Agreement, or any portion of this
Agreement, is immaterial and this Agreement will not be strictly construed against any Party.

     10.6 Severability and Reformation. Wherever possible, each provision of this Agreement will
be interpreted in such manner as to be effective. If any provision of this Agreement is held to be
illegal, invalid, or unenforceable under present or future laws effective during the term of this
Agreement, such provision will be fully severable and this Agreement will be construed and enforced
as if such illegal, invalid, or unenforceable provision had never comprised a part of this
Agreement, and the remaining provisions of this Agreement will remain in full force and effect.
Furthermore, in lieu of each such illegal, invalid, or unenforceable provision, there will be added
automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid,
or unenforceable provision as may be possible and be legal, valid, and enforceable; provided,
however, that, if any such change will materially diminish the practical realization of the
benefits intended to be conferred to any Party to this Agreement, such Party may terminate this
Agreement upon written notice to the other Party within 30 days after learning such change has been
effected.

Page 10 

 

     10.7 Consents; Waivers. Any consent or approval required as a condition to an action under
this Agreement will be effective only (a) if in writing and signed by the Party whose consent is
sought, (b) with respect to the specific matter made the subject to such consent or approval (and
no other matter), and (c) for the specific instance(s) expressly set forth in such consent or
approval (and no earlier or subsequent instances). Any Party may waive any condition, covenant,
term, or provision of this Agreement, but any such waiver will be effective only (a) if in writing
and signed by the Party sought to be bound by such waiver, (b) with respect to the specific
condition, covenant, term, or provision expressly made the subject to such waiver (and no other
condition, covenant, term, or provision), and (c) for the specific instance(s) expressly set forth
in such waiver (and no earlier or subsequent instances). Without limiting the foregoing sentence,
none of the following will constitute a waiver of the rights of a Party to this Agreement to demand
exact compliance with the conditions, covenants, terms, and provisions of this Agreement: (a) a
failure of such Party to exercise any power reserved to it in this Agreement; (b) a failure of such
Party to insist upon compliance by any other Party to this Agreement with any condition, covenant,
term, or provision in this Agreement; (c) a delay, forbearance, or omission of such Party to
exercise any power; or (d) any custom or practice of the Parties at variance with the terms of this
Agreement. The consent or approval of any Party to this Agreement with respect to the act of any
other Party to this Agreement will not be deemed to waive or render unnecessary consent to or
approval of any subsequent similar act. Subsequent acceptance by a Party to this Agreement of any
performance due to it under this Agreement will not be deemed to be a waiver by such first Party of
any preceding breach by any other Party of any terms, provisions, covenants, or conditions of this
Agreement. No act or conduct of or by MAKO under this Agreement, including any payment of a
royalty, shall be evidence, or deemed an admission or suggestion, that any product manufactured,
licensed, or distributed by MAKO infringes the Licensed IP Rights or any other intellectual
property right.

     10.8 Force Majeure. Neither Party will be in default or otherwise liable for any delay in or
failure of its performance under this Agreement if such delay or failure arises by any reason
beyond its reasonable control, including any act of God, any acts of the common enemy, the
elements, earthquakes, floods, fires, epidemics, riots, failures or delay in transportation or
communications, or any act or failure to act by the other Party or such other Party’s employees,
agents, or independent contractors or representatives; provided, however, that lack of funds will
not be deemed to be a reason beyond a Party’s reasonable control. The Parties will promptly inform
and consult with each other as to any of the above causes that, in their judgment, may or could be
the cause of a delay in the performance of this Agreement.

     10.9 Legal Costs. Each of the Parties will be responsible for its own expenses, including
legal and accounting fees of advisors, incurred in connection with the negotiation and preparation
of this Agreement.

     10.10 Dispute Resolution.

     (a) STELKAST and MAKO will attempt to settle any claim or controversy arising out of
this Agreement through consultation and negotiation in good faith and in a spirit of mutual
cooperation.

Page 11 

 

     (b) In the event that, after reasonable consultation, but within 30 days, the Parties
are unable to reach agreement, any claim or controversy shall be settled by arbitration
administered by the American Arbitration Association under its then current Commercial
Arbitration Rules, before a single arbitrator and judgment on any award rendered by or
finding of the arbitrator may be entered in any court having jurisdiction thereof. The
arbitrator shall have the authority to award actual money damages (with interest on unpaid
amounts from the date due), temporary injunctive relief, and reasonable attorney’s fees and
expenses, but, the arbitrator shall not have the authority to award exemplary or punitive
damages, and the Parties expressly waive any claimed right to such damages. The costs of
arbitration shall be borne by the Parties in accordance with the award of the arbitrator.
If a Party fails to proceed with arbitration, unsuccessfully challenges the arbitration
award, or fails to comply with the arbitration award, the other Party is entitled to costs,
including reasonable attorney’s fees, for having to compel arbitration or defend or enforce
the award. Except as otherwise required by law, the Parties agree to maintain and to cause
the arbitrator to maintain as confidential all information, documents and other data of any
kind or nature whatsoever obtained during the arbitration process, including the fact that
such arbitration is being undertaken and the final award of the arbitrator.

     10.11 [INTENTIONALLY LEFT BLANK].

     10.12 Integration. This Agreement sets forth the entire agreement and understanding between
the Parties as to the subject matter hereof and merges all prior discussions between them;
provided, however, that for the avoidance of doubt, this Agreement shall not affect the
Parties’ obligations under the Supply Agreement. Neither of the Parties shall be bound
by any warranties, understandings or representations with respect to such subject matter other
than as expressly provided herein or in a writing signed with or subsequent to execution hereof by
an authorized representative of the Party to be bound thereby.

     10.13 No Partnership. Neither this Agreement, nor any terms and conditions contained herein,
will be deemed or construed to create a partnership, joint venture, other form of business
enterprise or association or cooperative arrangement, agency relationship, or franchise
relationship between the Parties or otherwise to create any liability for either Party whatsoever
with respect to the indebtedness, liabilities, and obligations of the other Party.

     10.14 Counterparts. This Agreement may be executed in any number of counterparts and will be
effective when each Party to this Agreement has executed at least one counterpart, with the same
effect as if all signing Parties had signed the same document. All counterparts will be construed
together and evidence only one agreement, which, notwithstanding the actual date of execution of
any counterpart, will be deemed to be dated the day and year first written above. In making proof
of this Agreement, it will not be necessary to account for a counterpart executed by any Party
other than the Party against whom enforcement is sought or to account for more than one
counterpart executed by the Party against whom enforcement is sought.

Page 12 

 

     10.15 Facsimile Signatures. The manual signature of any Party to this Agreement that is
transmitted to any other Party or counsel to any other Party by facsimile will be deemed for all
purposes to be an original signature.

     10.16 BASIS OF BARGAIN. EACH PARTY RECOGNIZES AND AGREES THAT THE WARRANTY
DISCLAIMERS AND LIABILITY AND REMEDY LIMITATIONS IN THIS AGREEMENT ARE MATERIAL, BARGAINED FOR
BASES OF THIS AGREEMENT AND THAT THEY HAVE BEEN TAKEN INTO ACCOUNT AND REFLECTED IN DETERMINING
THE CONSIDERATION TO BE GIVEN BY EACH PARTY UNDER THIS AGREEMENT AND IN THE DECISION BY EACH PARTY
TO ENTER INTO THIS AGREEMENT.

Page 13 

 

     IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed in duplicate
originals by its duly authorized representatives on the respective dates entered below.

	 	 	 	 	 	 	 
	 	 	TRIGON INCORPORATED	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Peter N. Stephans	 	 
	 
	 	Name:	 	Peter N. Stephans	 	 
	 

	 	Title:
	 	CHMN & CFO	 	 
	 

	 	Date:
	 	9/13/05	 	 
	 
	 	 	 	 	 	 
	 	 	MAKO SURGICAL CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Maurice Ferré	 	 
	 

	 	Name:
	 	Maurice Ferré	 	 
	 

	 	Title:
	 	President & CEO	 	 
	 

	 	Date:
	 	9/14/05	 	 

Page 14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]