Document:

Exhibit 4.1

 

PIPELINE BIOMEDICAL HOLDINGS, INC.

 

COMMON STOCK SUBSCRIPTION AGREEMENT

OF

MAKO SURGICAL CORP.

 

All capitalized terms not defined herein
shall have the meanings ascribed to such terms in Annex A attached hereto.

MAKO Surgical Corp., a Delaware corporation
(“Subscriber”) hereby agrees as follows:

1.                  
Subscription and Credit; Consideration. 

(a)                
Subscriber hereby irrevocably subscribes (“Subscription”) for and agrees
to purchase 1,137,513 shares (the “Shares”) of common stock, par value $0.01 per share (“Company Common
Stock”), in the aggregate, of Pipeline Biomedical Holdings, Inc., a New Jersey corporation (the “Company”),
at a per share price of $3.956 (the “Per Share Price”) for the aggregate amount of $4,500,000 payable in shares
of MAKO Common Stock (as defined in Section 1(c) below) (the “Aggregate MAKO Subscription Amount”) on the
terms and conditions described in this Subscription Agreement, the Shareholders Agreement of the Company dated as of February
16, 2011 attached hereto as Exhibit A (the “Shareholders Agreement”), and the Stock Redemption Agreement
between the Company and Subscriber attached hereto as Exhibit B (the “Stock Redemption Agreement”).

(b)                
Subscriber
hereby adopts, accepts and agrees to be bound by all of the terms and provisions of this Subscription Agreement, the Shareholders
Agreement and the Stock Redemption Agreement.

(c)                
Subscriber
shall tender at the Common Stock Closing (as defined below) two completed and executed copies of this Subscription Agreement (including
the Investor Questionnaire attached hereto as Annex B), two executed copies of the Joinder Agreement to Shareholders Agreement
attached hereto as Exhibit C (the “Joinder Agreement”), and two executed copies of the Stock Redemption
Agreement, and shall pay the Aggregate MAKO Subscription Amount by issuing and delivering to the Company at the Common Stock Closing
(as defined below) such number of shares of the common stock of Subscriber, par value $0.001 per share (“MAKO Common
Stock”), that have an aggregate fair market value equal to $4,500,000 based on the average closing price as quoted on
the NASDAQ Stock Market (“NASDAQ”) for the five trading days up to and including the date of the Common Stock
Closing.

(d)                
On or about the date hereof, the Company is entering into subscription agreements with certain of its shareholders for
an aggregate of 758,342 shares of the Company Common Stock, at a per share price of $3.956 for the aggregate cash amount of $3,000,000
(the “Aggregate Common Subscription Amount”). The Company Common Stock shall be issued at a closing (the
“Common Stock Closing”) anticipated to occur on or about November 12, 2012. The Aggregate Common Subscription
Amount and the Aggregate MAKO Subscription Amount shall be used by the Company to fund its ongoing operations and general corporate
purposes and in accordance with the business plan approved by the Company’s Board (the “Business Plan”).
The Company intends to seek to sell, on or before December 31, 2012, up to an additional 505,561 shares of Company Common Stock
for the aggregate cash amount of $2,000,000, which would be used by the Company for the same purposes.

 

 

    	 

    	 

    

(e)                
Subscriber
shall tender at the Common Stock Closing shares of MAKO Common Stock (the “Aggregate Credit Amount”) that have
an aggregate fair market value equal to $2,500,000 based on the average closing price as quoted on NASDAQ for the five trading
days up to and including the date of the Common Stock Closing which shall be applied as a credit for Subscriber pursuant to that
certain Strategic Alliance Agreement, by and between Subscriber and Company, as amended on November 7, 2012, under certain circumstances
described therein.

2.                  
Acceptance of Subscription. 

(a)                
Subscriber acknowledges and agrees that this Subscription is contingent upon the Company’s
acceptance, and that the Company, in its sole and absolute discretion, can reject this Subscription, but only in its entirety,
at any time prior to the Common Stock Closing. If this Subscription is accepted, Subscriber shall be bound by and agrees to all
of the terms of this Subscription Agreement, the Shareholders Agreement and the Stock Redemption Agreement. The Company’s
acceptance of this Subscription will be evidenced by the Company’s execution of this Subscription Agreement at the Common
Stock Closing (such date of acceptance and countersignature by the Company as indicated on the executed acceptance portion of the
signature page being hereinafter referred to as the “Effective Date”). Execution of this Subscription Agreement
by Subscriber constitutes an irrevocable offer by Subscriber to acquire the Shares and to pay the Aggregate MAKO Subscription Amount,
and Subscriber cannot cancel or terminate this Subscription Agreement or any of the agreements of Subscriber contained in this
Subscription Agreement, the Shareholders Agreement or the Stock Redemption Agreement, for any reason without the written consent
of the Company.

(b)                
The Company acknowledges and agrees that Subscriber’s disclosure of information regarding
the Company, this Subscription Agreement, the Shareholders Agreement or the Stock Redemption Agreement in any Subscriber SEC Document
filed by Subscriber before or after the date hereof is permitted by, and shall not constitute a breach of, Section 4.02 of the
Shareholders Agreement.

3.                  
Representations and Warranties of Subscriber. Subscriber makes the following representations,
warranties and covenants, all of which shall be true and correct as of the Effective Date and all of which shall be relied on by
the Company as of the Effective Date.

(a)                
Subscriber has received a copy of the Financial Statements (as hereinafter defined) and has
carefully reviewed and understands all of the terms and provisions of this Agreement. Subscriber has consulted Subscriber's legal,
tax and financial advisors with respect to the Shares and this Agreement.

 

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(b)                
Subscriber acknowledges and understands that representatives of the Company have been made
available to Subscriber, prior to this Subscription, and that Subscriber has had the opportunity to ask questions of and receive
answers from such representatives concerning the terms and conditions of this Subscription, and to obtain additional documents
and information that Subscriber believes is necessary or to evaluate the merits and risks of an investment in the Company, or otherwise
relative to the financial data and business (current and proposed) of the Company.

(c)                
The offering of the Shares is being made in reliance upon the availability of an exemption
from the registration provisions of the Securities Act of 1933 (the “Securities Act”). Subscriber hereby represents
that Subscriber is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the Securities
Act (and such Subscriber understands the meaning of the definition “accredited investor” given thereunder). Subscriber
acknowledges that the Company is relying on Subscriber’s representations set forth in this Subscription Agreement, and that
the availability of such exemptions is dependent, in part, upon the truth of Subscribers representations made herein. 

(d)                
All information
provided by Subscriber to the Company, including, without limitation, the information set forth in the Investor Questionnaire attached
as Annex A to this Subscription Agreement which has been fully completed by Subscriber and returned to the Company, is true,
accurate and complete in all material respects. If any change in such information occurs prior to the closing of this subscription,
Subscriber will promptly furnish in writing to the Company such changed information.

(e)                
Subscriber,
in making a decision whether to purchase the Shares, has not relied on any representations or warranties, oral or otherwise, of
any representative of the Company or of any Person acting as a representative of the Company other than as set forth in this Agreement.
Without limiting the foregoing, Subscriber recognizes that any information furnished to Subscriber by the Company does not constitute
investment, accounting, legal or tax advice.

(f)                
Subscriber,
together with its purchaser representatives (if any), has such knowledge and expertise in financial and business matters as to
be capable of evaluating the merits and risks of an investment in the Company and to make an informed investment decision with
respect thereto. Subscriber is aware that the purchase of the Shares is highly speculative and involves a high degree of risk.
Subscriber is able to bear the economic risk of its investment, and has no need for liquidity in the investment in the Company.
Subscriber is able to hold the Shares for an indefinite period of time and to suffer a complete loss of Subscriber’s investment.
Subscriber has been apprised as to the current and proposed business and operations of the Company by the Company and is experienced
in evaluating and investing in similar companies. Subscriber is knowledgeable and experienced with respect to the financial, tax
and business aspects relating to the Shares.

(g)                
Subscriber
has consulted with Subscriber's professional, tax, accounting, legal and financial advisors with respect to the federal, state,
local and foreign (if applicable) income tax consequences of Subscriber’s participation as a shareholder of the Company and
the suitability of an investment in the Company given Subscriber’s particular tax and financial situation, and has determined
that the purchase of the Shares is a suitable investment for Subscriber.

 

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(h)                
Subscriber
acknowledges and understands that the Shares have not been registered under the Securities Act, or any state securities laws and,
therefore, cannot be resold, transferred, pledged or otherwise disposed of unless subsequently registered under the Securities
Act and applicable state securities laws or unless an exemption from such registration is available and the Company receives an
opinion of legal counsel from Subscriber, in form and substance satisfactory to the Company, that the transfer is exempt from registration.
Subscriber also acknowledges and understands that the Shareholders Agreement contains provisions restricting the sale or other
transfer of the Shares. The certificate(s) representing the Shares will bear a legend stating the foregoing restrictions. The Company
is under no obligation to register the Shares under any circumstances or to make any exemption from registration available under
the Securities Act or any applicable state securities law, at Subscriber’s expense or otherwise. There is no public or other
market for the Shares and it is not anticipated that a market will develop. The Company does not anticipate that the Shares will
be registered under the Securities Exchange Act of 1934 (the “Exchange Act”) or listed on any securities exchange.
Accordingly, Subscriber acknowledges and understands that Subscriber may be required to retain ownership of the Shares, and bear
the economic risk of Subscriber’s investment, for an indefinite period.

(i)                
Subscriber
is purchasing the Shares solely for Subscriber’s own account, for investment and without a view towards resale or distribution
thereof, and Subscriber does not have, and has no plans to enter into, any contract, undertaking, agreement or arrangement for
any such purpose.

(j)                
The Shares
were not offered to Subscriber, and Subscriber did not become aware of the offering of the Shares, by means of: (i) any advertisement,
article, notice or other communication published in any newspaper, magazine or similar medium, or broadcast over television or
radio, (ii) any seminar or meeting whose attendees have been invested by any general solicitation or general advertising, or (iii)
any other form of general solicitation or advertising.

(k)                
Subscriber
represents that Subscriber received the Financial Statements in the jurisdiction listed as the principal address of Subscriber
set forth on the Investor Questionnaire. All offers or solicitations of or for the Shares were made to Subscriber at that address
or elsewhere within that jurisdiction; no offers or solicitations were made to Subscriber in any other jurisdiction; and Subscriber
executed and returned this Subscription Agreement within and from that jurisdiction.

(l)                
Subscriber
understands that the Shares have not been reviewed, approved or recommended by the United States Securities and Exchange Commission,
or any state securities commission or regulatory authority, nor has any such agency confirmed the accuracy or determined the adequacy
of the Shares.

 

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(m)                
The execution,
delivery and performance by Subscriber of this Subscription Agreement, the Joinder Agreement and the Stock Redemption Agreement
are within its powers, have been duly authorized by all necessary action on its behalf, require no action by or in respect of,
or filing with, any governmental body, agency or official (except as disclosed in writing to the Company) and do not and will not
contravene, or constitute a default under, any provision of applicable law or regulation or of its organizational/charter documents
or any agreement, judgment, injunction, order, decree or other instrument binding upon it. This Subscription Agreement, the Joinder
Agreement and the Stock Redemption Agreement each constitutes a valid and binding agreement of Subscriber, enforceable against
Subscriber in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or similar laws affecting
creditors’ rights and by general principles of equity.

(n)                
Subscriber
is not purchasing the Shares with funds that constitute, directly or indirectly, the assets of an “employee benefit plan”
(as such term is defined in Section 3(3) of the U.S. Employee Retirement Income Security Act of 1974, as amended (“ERISA”)),
subject to Title I of ERISA, or assets of a plan or individual retirement account or annuity subject to Section 4975 of the U.S.
Internal Revenue Code of 1986, as amended.

(o)                
The shares
of MAKO Common Stock to be tendered to the Company at the Common Stock Closing (collectively, the “MAKO Shares”)
have been duly authorized and, when issued to the Company, will be validly issued, fully paid and non-assessable to the Company
free and clear of any Liens, claims, transfer restrictions or other encumbrances, except for restrictions on transfer provided
for herein and in the Shareholders Agreement or under the Securities Act or other applicable securities laws. Subscriber shall
cause the MAKO Shares to be registered with the Securities and Exchange Commission (the “SEC”) and NASDAQ within
two Business Days of issuance, the result of which shall be that the MAKO Shares will be available for resale without restriction.

(p)                
Subscriber
has timely filed with or furnished to, as applicable, the SEC all registration statements, prospectuses, reports, schedules, forms,
statements and other documents (including exhibits and all other information incorporated by reference) required to be filed or
furnished by it with the SEC (the “Subscriber SEC Documents”). As of their respective filing dates (or, if amended
or superseded by a subsequent filing, as of the date of the last such amendment or superseding filing prior to the date hereof),
each of the Subscriber SEC Documents complied as to form and content in all material respects with the applicable requirements
of the Securities Act and the Exchange Act, as amended, and the rules and regulations of the SEC thereunder applicable to such
Subscriber SEC Documents.

(q)                
Subscriber
shall be the record and beneficial owner of the Shares.

(r)                
Subscriber
is not prohibited from investing in the Company pursuant to applicable United States or foreign anti-money laundering, anti-terrorist
and asset control laws, rules or orders (e.g., USA Patriot Act of 2001).

 

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(s)                
Subscriber is not
a financial institution subject to the anti-money laundering program requirements of the USA Patriot Act of 2001, and is NOT acting
on behalf of one or more clients in connection with this subscription.

 

(t)                
Subscriber consents
to the disclosure to U.S. regulators and law enforcement authorities by the Company and its Affiliates and agents of such information
about the Subscriber as the Company reasonably deems necessary or appropriate to comply with applicable U.S. anti-money laundering,
anti-terrorist and asset control laws, regulations, rules and orders.

 

4.                  
Representations and Warranties of the Company. The Company makes the following representations,
warranties and covenants, all of which shall be true and correct as of the Effective Date and all of which shall be relied on by
Subscriber as of the Effective Date:

(a)                
Organization; Subsidiaries. The Company and each Company Subsidiary is duly
incorporated or formed, as the case may be, validly existing and in good standing under the laws of the state of its incorporation
or formation and jurisdictions of qualification. The Company and each Company Subsidiary has all requisite corporate or other
entity power and authority to own, license and operate its properties, to carry on its business as now conducted. The Company has
all requisite power and authority to execute and deliver this Subscription Agreement, the Joinder Agreement and the Stock Redemption
Agreement and to perform its obligations hereunder and thereunder. 

(b)                
Capitalization of the Company and the Company Subsidiaries. 

(i)                
The
authorized capital stock of the Company consists solely of: (A) 10,000,000 shares of Company Common Stock, of which 5,416,707 shares
are issued and outstanding, prior to giving effect to the issuance of shares issuable pursuant to this Subscription Agreement and
the Subscriptions Agreements of the current Shareholders of the Company; and (B) no shares of Company Common Stock are reserved
for issuance in respect of issued and outstanding Rights. No shares of Company Common Stock are held in the treasury of the Company.
There are no Rights issued or outstanding for Equity Interests of the Company. All of the issued and outstanding shares of Company
Common Stock have been duly authorized and are validly issued, fully paid and non-assessable.

(ii)                
Each Company
Subsidiary is wholly owned by the Company or another Company Subsidiary and no Rights in respect of the Equity Interests of any
Company Subsidiary has been granted in respect of any Company Subsidiary. All of the issued and outstanding Equity Interests of
each Company Subsidiary have been duly authorized, validly issued, fully paid and are non-assessable and are owned directly or
indirectly by the Company or another Company Subsidiary, free and clear of all Liens and free of any other restriction, including
any restriction on the right to vote, sell or otherwise dispose of such Equity Interests.

(iii)                
At the
closing of this Subscription, after giving effect to the transactions contemplated to occur at or prior to closing hereunder, no
Rights will be or become exercisable or exchangeable for, convertible into, or otherwise give its holder any right to acquire any
Equity Interests of the Company or any Company Subsidiary except for Rights described in and permitted pursuant to the Shareholders
Agreement.

 

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(iv)                
Each Subsidiary
of the Company is set forth on Schedule 4(b) annexed hereto. Except for the Company Subsidiaries and MAKO (effective upon
receipt by the Company of the MAKO Shares), neither the Company nor any Company Subsidiary controls directly or indirectly or has
any direct or indirect Equity Interests, Rights or equity participation in any corporation, partnership, trust, or other business
association and there is no other party with respect to which (A) the Company or any Company Subsidiary may be deemed to be in
control because of factors or relationships other than the quantity of stock or other interests owned in such party (if any) or
(B) the Company or any Company Subsidiary may be liable under any circumstances for the payment of additional amounts with respect
to its interest in such party, whether in the form of assessments, capital calls, installment payments, general partner liability
or otherwise.

(c)                
Authorization;
No Conflicts. The execution and delivery by the Company of this Subscription Agreement, the Joinder Agreement and the Stock
Redemption Agreement and the consummation by the Company of the transactions contemplated hereby and thereby have been duly authorized
by all necessary action on the part of the Company. This Subscription Agreement has been duly executed and delivered by the
Company and this Subscription Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms. The execution and delivery by the Company of this Subscription Agreement, the Joinder
Agreement and the Stock Redemption Agreement does not and the consummation by the Company of the transactions contemplated hereby
and thereby will not (with or without the giving of notice or the lapse of time or both), contravene, conflict with or result in
a breach or violation of, or a default under, or cause or trigger a change of control or acceleration under any provision of, (i) the
Company’s or any Company Subsidiary’s certificate of incorporation or by-laws or certificate of formation or operating
agreement, as the case may be, (ii) subject to the accuracy of Subscriber’s representations and warranties in Section
3 of this Subscription Agreement, in any material respects, any judgment, order, decree, statute, rule, regulation or other
law applicable to the Company or any Company Subsidiary or (iii) any contract, agreement or instrument by which the Company or
any Company Subsidiary is bound. No material consent, approval, order or authorization of, or registration, declaration or filing
with, any court, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign, is
required by or with respect to the Company or any Company Subsidiary in connection with the execution and delivery by the Company
of this Subscription Agreement, the Joinder Agreement or the Stock Redemption Agreement or the consummation by the Company of the
transactions contemplated hereby or thereby.

(d)                
Issuance
of Shares. The Shares have been duly authorized and, when issued and paid for in accordance with the terms of this Subscription
Agreement, will be validly issued, fully paid and non-assessable to Subscriber free and clear of any Liens, claims, transfer restrictions
or other encumbrances, except for restrictions on transfer provided for herein and in the Shareholders Agreement or under the Securities
Act or other applicable securities laws. Assuming the accuracy of the representations of the Subscriber in Section 3 of
this Subscription Agreement, the Shares are not subject to registration under the Securities Act and will be issued in compliance
with all applicable federal and state security laws.

 

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(e)                
Financial
Statements. The Company has provided Subscriber with true and complete copies of the consolidated balance sheets and related
consolidated statements of profit and loss, cash flows and shareholders’ equity for the Company and the Company Subsidiaries
as of and for the fiscal years ended December 31, 2011 and 2010, and the 6-month period ending June 30, 2012 (the “Financial
Statements”). The Financial Statements have been prepared from, and accurately reflect, in all material respects, the
books and records of the Company and the Company Subsidiaries. The Financial Statements have been prepared in accordance with GAAP,
subject to the absence of footnotes for the periods presented. The Financial Statements delivered herewith fairly present in all
material respects, the consolidated financial position and the consolidated results of operations and cash flows of the Company
and the Company Subsidiaries as of the times and for the periods referred to therein.

(f)                
The
shares of MAKO Common Stock shall not be offered, sold or otherwise disposed and must be held indefinitely unless their offer,
sale or other disposition is subsequently registered under the Securities Act or an exemption for such registration is available.

(g)                
The
shares of MAKO Common Stock may not be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are
met. Company will not make any disposition of all or any part of shares of MAKO Common Stock until:

(i)                
There
is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is
made in accordance with said registration statement; or

 

(ii)                
Company
shall have furnished the transfer agent for the shares of MAKO Common Stock an opinion of counsel, satisfactory to Subscriber and
the transfer agent, that the disposition is exempt from the registration requirements under the Securities Act and the legend described
in subsection (h), below, may be removed with respect to the shares being disposed.

 

(h)                 
It understands
and agrees that all certificates evidencing the shares of MAKO Common Stock shall bear the following legend:

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER SAID ACT INCLUDING, WITHOUT LIMITATION, PURSUANT TO RULES 144 OR 144A UNDER SAID ACT OR PURSUANT TO A PRIVATE SALE EFFECTED
UNDER APPLICABLE FORMAL OR INFORMAL SEC INTERPRETATION OR GUIDANCE, SUCH AS A SO-CALLED “4(1) AND A HALF” SALE.”

 

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“THE
SALE, TRANSFER OR ASSIGNMENT OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN
REGISTRATION RIGHTS AGREEMENT DATED AS OF NOVEMBER 7, 2012, AS AMENDED FROM TIME TO TIME, AMONG THE COMPANY AND CERTAIN HOLDERS
OF ITS OUTSTANDING SECURITIES. COPIES OF SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD
OF THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY.”

(i)                
Company
is an “accredited investor” as defined in Regulation D promulgated under the Securities Act.

(j)                
Company
(i) has had reasonable opportunity to ask questions of and receive answers from Subscriber concerning this Agreement, (ii) has
been permitted access, to its satisfaction, to Subscriber’s periodic reports, proxy statements and materials and other documents
filed by Subscriber with the Securities and Exchange Commission under the Exchange Act (“Subscriber’s SEC Reports”),
and (iii) understands that the entry into this Agreement and the investment in the securities issued thereunder is subject to risks
as stated in the risk factors disclosed in Subscriber’s SEC Reports or as otherwise may be applicable to similar investments
and acknowledges that it has had an opportunity to review, and upon review, fully understands such risk factors.

5.                
Survival.
The representations and warranties shall survive for a period of two years following the Effective Date; provided, however, that
the representations and warranties set forth in Section 4(b)(i) hereof shall survive indefinitely. For the avoidance of doubt,
claims for indemnification pursuant to Section 6 below for breaches of representations and warranties must be asserted within such
two year survival period; provided, however, that claims for indemnification pursuant to Section 6 below for breaches of representations
and warranties set forth in Section 4(b)(i) hereof may be made at any time. Subscriber and the Company undertake to notify each
other immediately of any change in any representation, warranty or other information made by such party prior to the acceptance
of this Subscription.

6.                
Indemnification.
Subscriber and the Company understand the meaning and legal consequences of the representations and warranties made in Sections
3 and 4 hereof and that the other party hereto has relied upon such representations and warranties. Subscriber and the Company
hereby agree to indemnify and hold harmless the other, and any of its partners, shareholders, members, security holders, officers,
directors, employees, Affiliates and successors and assigns of the foregoing against all damages, losses, costs and expenses (including,
without limitation, attorneys’ fees and expenses) that they may incur by reason of the failure of such party to fulfill any
of the terms or conditions of this Subscription Agreement or by reason of any breach of the representations and warranties or covenants
made by such party herein. The indemnity obligations under this Section shall survive the Effective Date (provided that indemnification
claims for breaches of representations and warranties must be asserted within the two year survival period provided for in Section
5 above), shall be in addition to any liability that such party may otherwise have (including, without limitation, under the Agreement)
and shall be binding upon all successors, assigns, heirs, estates, executors, administrators and personal representatives of such
party.

 

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7.                
Disposition of
MAKO Shares. The Company and Subscriber shall collaborate in good faith on an orderly sale or other disposition of the MAKO
Shares, it being understood that Subscriber shall reasonably cooperate with the Company, and shall use commercially reasonable
efforts to assist the Company, in connection with such sale or other disposition.

 

8.                
INTENTIONALLY DELETED.

 

9.                
Miscellaneous.

 

(a)                
Applicable Law. This Subscription Agreement and the rights and obligations of
the parties hereto shall be interpreted and enforced in accordance with and governed by the laws of the State of New Jersey
without regard to conflicts of law principles.

(b)                
Assignment; Successor and Assigns. Each party hereby acknowledges that it may
not assign any of its rights to, interest in or obligations under this Subscription Agreement without the prior written consent
of the other party hereto, and any attempted assignment without such consent shall be void and without effect. 

(c)                
Entire Agreement; Conflicts. This Subscription Agreement, when accepted
by the Company will constitute the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes
all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written, except
as herein contained. This Subscription Agreement may not be modified, changed, waived or terminated other than by a writing executed
by both of the parties hereto. No course of conduct or dealing shall be construed to modify, amend or otherwise affect any of the
provisions hereof. 

(d)                
Notices. Any notice or other communication required or permitted hereunder shall
be in writing and shall be delivered personally, sent by facsimile transmission or sent by national overnight courier service,
certified, registered or express mail, postage prepaid, to the address of each party set forth herein, or such other address or
addresses as any party hereto shall have designated by notice in writing to the other party hereto.

 

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(e)                
Counterparts; Facsimile Signatures. This Subscription Agreement may be executed
in several counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument,
facsimile counterpart signatures to this Subscription Agreement shall be acceptable and binding. 

(f)                 
Severability. It is the desire and intent of the parties hereto that the provisions
of this Subscription Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each
jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this Subscription Agreement shall be adjudicated
by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction,
shall be ineffective, without invalidating the remaining provisions of this Subscription Agreement or affecting the validity or
enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly
drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly
drawn, without invalidating the remaining provisions of this Subscription Agreement or affecting the validity or enforceability
of such provision in any other jurisdiction.

(g)                
Tax Certification. Subscriber hereby certifies that (i) the taxpayer identification
number provided under Subscriber’s signature is correct and (ii) Subscriber is not subject to backup withholding because
(A) it has not been notified that it is subject to backup withholding as a result of failure to report interest and dividends or
(B) the Internal Revenue Service has not notified Subscriber that it is subject to backup withholding.

(h)                
Headings. The headings in this Subscription Agreement are for convenience of
reference only, and shall not limit or otherwise affect the meaning hereof.

* * * *

 

 

 

 

 

 

 

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Subscriber, desiring to subscribe
for the purchase of the Shares and to make an investment in Pipeline Biomedical Holdings, Inc. acknowledges that Subscriber understands
the terms and conditions of this Subscription Agreement, that it has been advised by the Company that the transactions represented
by this Subscription Agreement have serious legal consequences and that the Company has strongly advised Subscriber to review this
Subscription Agreement with legal counsel prior to execution and that Subscriber hereby agrees to all the terms and conditions
contained herein.

 

 

 

 

 

 

 

 

 

 

 

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SUBSCRIPTION AGREEMENT

SIGNATURE PAGE (1 of 2)

Name of Subscriber: MAKO Surgical Corp.

 

Upon acceptance by
the Company of this Subscription Agreement, Subscriber shall be obligated to purchase the shares of common stock, $0.01 par value
per share, of the Company, on the terms set forth below:

 

Per Share Price: $3.956          Aggregate
Number of Shares: 1,137,513

 

Aggregate Subscription Payment: $4,500,000

 

The Shares subscribed for hereby shall be held by corporate ownership
(an officer with authority to bind the corporation must sign).

 

 

 

 

 

 

 

 

 

 

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SUBSCRIPTION AGREEMENT

SIGNATURE PAGE (page 2 of 2)

 

IN WITNESS
WHEREOF, Subscriber has caused this Subscription Agreement to be duly executed as of the date set forth below.

MAKO SURGICAL CORP.

 

	By: 	/s/ Maurice R. Ferré	 
	 	Name:  Maurice R. Ferré, MD	 
	 	Title:  President and CEO	 

 

 

	Date of Execution: 	November 7, 2012	 

 

 

 

ACCEPTANCE The foregoing Subscription Agreement is hereby
accepted by the undersigned as of the date set forth below:

 

PIPELINE BIOMEDICAL HOLDINGS, INC.

 

 

	By: 	/s/ Alex Khowaylo	 
	 	Name: Alex Khowaylo	 
	 	Title: President & CEO	 

 

	Date of Acceptance: 	November 7, 2012	 

 

 

 

 

 

 

 

    	- 14 -

    	 

    

ANNEX
A TO SUBSCRIPTION AGREEMENT

 

CERTAIN
DEFINITIONS

 

“Affiliate”
shall mean with respect to any Person, any other Person who, directly or indirectly (including through one or more intermediaries),
controls, is controlled by, or is under common control with, such Person. For purposes of this definition, "control,"
when used with respect to any specified Person, shall mean the power, direct or indirect, to direct or cause the direction of the
management and policies of such Person, whether through ownership of voting securities or partnership or other ownership interests,
by contract or otherwise; and the terms "controlling" and "controlled" shall have correlative meanings.

 

“Business Days”
shall mean any day other than a Saturday or a Sunday or a day that commercial banks in the State of New Jersey are authorized or
required to close.

 

“Equity Interests”
shall mean, with respect to any party, the (a) capital stock, partnership interests, membership interests, beneficial interests
or any other equity or ownership interests in the party referenced or (b) any instruments convertible into or exchangeable for,
or whose value is determined by reference to, any such interests.

 

“Liens” shall
mean any lien, pledge, mortgage, deed of trust, security interest, claim, charge, option, hypothecation, security, title retention,
transfer or title restriction, voting trust agreement or other encumbrance (whether arising by contract or by operation of law).

 

“Person” shall
mean an individual, corporation, partnership, joint venture, limited liability company, governmental authority, governmental body,
unincorporated organization, trust, association or other entity.

 

“Rights” shall
mean, with respect to a party, any subscriptions, options, warrants, rights (including phantom stock or stock appreciation rights),
preemptive rights, voting, approval or proxy rights, or other agreements or understandings, including any right of registration,
conversion or exchange under, any outstanding security, instrument or agreement or understanding obligating such party, or any
Affiliate of such party, to issue, sell, purchase or register any Equity Interests of such party, or to grant, extend or enter
into any security, instrument or agreement or understanding with respect to the Equity Interests of such party.

 

“Subsidiary”
or “Subsidiaries” shall mean, with respect to a party, any corporation or other organization or entity, whether incorporated
or unincorporated, (a) of which such party or any other subsidiary of such party is a general partner (excluding partnerships,
the general partnership interests of which held by such party or any subsidiary of such party do not have a majority of the voting
interests in such partnership); (b) at least (i) a majority of the voting rights or (ii) a majority of the securities or other
interests of which having by their terms ordinary voting power to elect a majority of the board of directors or others performing
similar functions with respect to such corporation or other organization is directly or indirectly owned or controlled by such
party or by any one or more of its subsidiaries, or by such party and one or more of its subsidiaries; or (c) is otherwise controlled,
directly or indirectly, by such party.

 

 

 

 

 

 

 

    	 

    	 

    

ANNEX
B TO SUBSCRIPTION AGREEMENT

INVESTOR
QUESTIONNAIRE

 

PART I:                
GENERAL INFORMATION

		1.	Full name of Subscriber:

 

		2.	Taxpayer Identification Number:

		3.	Date of formation of Subscriber:

		4.	Street address of principal place of business of Subscriber:

		5.	Phone Numbers of Subscriber:

 

a.                
Business Phone Number:

 

b.                
Cellular Phone Number of primary contact:

 

		6.	Facsimile Number of Subscriber:

 

		7.	Electronic Mail Address of primary contact of Subscriber:

 

 

PART II:                
ACCREDITED INVESTOR STATUS

 

The Subscriber certifies
to Pipeline Biomedical Holdings, Inc. that the undersigned is an “accredited investor” as defined in Rule 501(a) of
Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”), because the Subscriber
is a corporation, business trust or partnership, not formed for the specific purpose of acquiring the Shares, with total assets
in excess of $5,000,000.

 

 

 

    	 

    	 

    

Schedule 4(b)

 

Company Subsidiaries

 

 

Pipeline Orthopedics, LLC

 

Pipeline Biomedical Products, LLC

 

Pipeline Biotechnology, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

Exhibit A

 

Shareholders Agreement

 

(See attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

Exhibit B

 

Stock Redemption Agreement

 

(See attached)

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

Exhibit C

 

Joinder Agreement

 

(See attached)Exhibit 10.2

Option No.: _____

MAKO SURGICAL CORP.

2008 OMNIBUS INCENTIVE PLAN

INCENTIVE STOCK OPTION AGREEMENT

MAKO Surgical Corp., a
Delaware corporation (the “Company”), hereby grants an option to purchase
shares of its common stock, $.001 par value, (the “Stock”) to the optionee
named below. The terms and conditions of the option are set forth in this cover
sheet and in the attachment (together, the “Agreement”) and in the Company’s
2008 Omnibus Incentive Plan (the “Plan”).

Grant Date: _____________

Name of Optionee:
__________________

Optionee’s Social Security
Number: ____________________

Number of Shares Covered by
Option: _____________

Option Price per Share:
$_________

Vesting Start Date:
_________________

Vesting Schedule:
_____________________

          In
the event that the foregoing Vesting Schedule would result in vesting of a
fractional number of options, the number of options that will vest will be
rounded down to the nearest whole share, and the last scheduled vesting tranche
will be rounded up, to the extent necessary, so that the full number of options
will have vested.

          By
signing this cover sheet, you agree to all of the terms and conditions
described in this Agreement and in the Plan, a copy of which is available on
MAKOnet or upon request. You acknowledge that you have carefully reviewed the
Plan, and agree that the Plan will control in the event any provision of this
Agreement should appear to be inconsistent.

	
  

 	
  

 	
  

 
	
 Optionee:

 	
  

 	
  

 
	
  

 	
 (Signature)

 	
  

 
	
  

 	
  

 	
  

 
	
 Company:

 	
  

 	
  

 
	
  

 	
 Fritz L. LaPorte, SVP of
 Finance and Administration, Chief Financial Officer and Treasurer

 	
  

 

Attachment

This is not a stock
certificate or a negotiable instrument.

1

MAKO
SURGICAL CORP.

2008 OMNIBUS INCENTIVE PLAN

INCENTIVE
STOCK OPTION AGREEMENT

	
  

 	
  

 	
  

 
	
 Incentive Stock Option

 	
  

 	
 This option is intended to be an incentive stock
 option under Section 422 of the Internal Revenue Code and will be interpreted
 accordingly. If you cease to be an employee of the Company, its parent or a
 subsidiary (“Employee”) but continue to provide Service, this option will be
 deemed a nonstatutory stock option three months after you cease to be an
 Employee. In addition, to the extent that all or part of this option exceeds
 the $100,000 rule of section 422(d) of the Internal Revenue Code, this option
 or the lesser excess part will be deemed to be a nonstatutory stock option.

 
	
  

 	
  

 	
  

 
	
 Vesting

 	
  

 	
 This option is only exercisable before it expires
 and then only with respect to the vested portion of the option. Subject to
 the preceding sentence, you may exercise this option, in whole or in part, to
 purchase a whole number of vested shares by following the procedures set
 forth in the Plan and below in this Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No additional shares of Stock will vest after your
 Service has terminated for any reason. Your Service shall terminate at the
 close of business at Company headquarters on your last day of employment with
 the Company unless otherwise determined by the Board.

 
	
  

 	
  

 	
  

 
	
 Term

 	
  

 	
 Your option will expire in any event on the 10th
 anniversary of the Grant Date, as shown on the cover sheet. Your option will
 expire earlier if your Service terminates, as described below. 

 
	
  

 	
  

 	
  

 
	
 Regular Termination

 	
  

 	
 If your Service terminates for any reason, other
 than death, Disability or Cause, then your option will expire at the close of
 business at Company headquarters on the ninetieth (90th) day after
 your termination date.

 
	
  

 	
  

 	
  

 
	
 Termination for Cause

 	
  

 	
 If your Service is terminated for Cause, then you
 shall immediately forfeit all rights to your option and the option shall
 immediately expire. 

 
	
  

 	
  

 	
  

 
	
 Death

 	
  

 	
 If your Service terminates because of your death,
 then your option will expire at the close of business at Company headquarters
 on the date twelve (12) months after the date of death. During that twelve
 month period, your estate or heirs may exercise the vested portion of your
 option.

 

2

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In addition, if you die during the 90-day period
 described in connection with a regular termination (i.e., a termination of
 your Service not on account of your death, Disability or Cause), and a vested
 portion of your option has not yet been exercised, then your option will
 instead expire on the date twelve (12) months after your termination date. In
 such a case, during the period following your death up to the date twelve
 (12) months after your termination date, your estate or heirs may exercise
 the vested portion of your option.

 
	
  

 	
  

 	
  

 
	
 Disability

 	
  

 	
 If your Service terminates because of your
 Disability, then your option will expire at the close of business at Company
 headquarters on the date twelve (12) months after your termination date.

 
	
  

 	
  

 	
  

 
	
 Leaves of Absence

 	
  

 	
 For purposes of this option, your Service does not
 terminate when you go on a bona fide employee leave of absence that
 was approved by the Company in writing, if the terms of the leave provide for
 continued Service crediting, or when continued Service crediting is required
 by applicable law. However, your Service will be treated as terminating
 ninety (90) days after you went on employee leave, unless your right to
 return to active work is guaranteed by law or by a contract. Your Service
 terminates in any event when the approved leave ends unless you immediately
 return to active employee work.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Company determines, in its sole discretion,
 which leaves count for this purpose, and when your Service terminates for all
 purposes under the Plan.

 
	
  

 	
  

 	
  

 
	
 Notice of Exercise

 	
  

 	
 When you wish to exercise this option, you must
 notify the Company by filing the proper “Notice of Exercise” form at the
 address given on the form. Your notice must specify how many shares you wish
 to purchase. Your notice must also specify how your shares of Stock should be
 registered (in your name only or in your and your spouse’s names as joint
 tenants with right of survivorship). The notice will be effective when it is
 received by the Company. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If someone else wants to exercise this option after
 your death, that person must prove to the Company’s satisfaction that he or
 she is entitled to do so.

 
	
  

 	
  

 	
  

 
	
 Form of Payment

 	
  

 	
 When you submit your Notice of Exercise, you must
 include payment of the option price for the shares you are purchasing.
 Payment may be made in one (or a combination) of the following forms:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 •          Your
 personal check, a cashier’s check, a money order or another cash equivalent
 acceptable to the Company.

 

3

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 •          Shares
 of Stock withheld by the Company from the shares of Stock otherwise to be
 received, with such withheld shares having an aggregate Fair Market Value on
 the date of exercise (or the immediately preceding trading day if the date of
 exercise is not a trading date) equal to the aggregate option price.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 •          Shares
 of Stock which have already been owned by you and which are surrendered to
 the Company. The Fair Market Value of the shares, determined as of the
 effective date of the option exercise (or the immediately preceding trading
 day if the date of exercise is not a trading date), will be applied to the
 option price.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 •          By
 delivery (on a form prescribed by the Company) of an irrevocable direction to
 a licensed securities broker acceptable to the Company to sell Stock and to
 deliver all or part of the sale proceeds to the Company in payment of the
 aggregate option price and any withholding taxes.

 
	
  

 	
  

 	
  

 
	
 Withholding Taxes

 	
  

 	
 You will not be allowed to exercise this option
 unless you make acceptable arrangements to pay any withholding or other taxes
 that may be due as a result of the option exercise or sale of Stock acquired
 under this option. In the event that the Company determines that any federal,
 state, local or foreign tax or withholding payment is required relating to
 the exercise or sale of shares arising from this grant, the Company shall
 have the right to require such payments from you, or withhold such amounts
 from other payments due to you from the Company or any Affiliate.

 
	
  

 	
  

 	
  

 
	
 Transfer of Option

 	
  

 	
 During your lifetime, only you (or, in the event of
 your legal incapacity or incompetency, your guardian or legal representative)
 may exercise the option. You cannot transfer or assign this option. For
 instance, you may not sell this option or use it as security for a loan. If
 you attempt to do any of these things, this option will immediately become
 invalid. You may, however, dispose of this option in your will or it may be
 transferred upon your death by the laws of descent and distribution.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Regardless of any marital property settlement
 agreement, the Company is not obligated to honor a notice of exercise from
 your spouse, nor is the Company obligated to recognize your spouse’s interest
 in your option in any other way.

 
	
  

 	
  

 	
  

 
	
 Retention Rights

 	
  

 	
 Neither your option nor this Agreement give you the
 right to be retained by the Company (or any Parent, Subsidiaries or
 Affiliates) in any capacity. The Company (and any Parent, Subsidiaries or
 Affiliates) reserve the right to terminate your Service at any time and for
 any reason.

 

4

	
  

 	
  

 	
  

 
	
 Shareholder Rights

 	
  

 	
 You, or your estate or heirs, have no rights as a
 shareholder of the Company until a certificate for your option’s shares has
 been issued (or an appropriate book entry has been made). No adjustments are
 made for dividends or other rights if the applicable record date occurs
 before your stock certificate is issued (or an appropriate book entry has
 been made), except as described in the Plan.

 
	
  

 	
  

 	
  

 
	
 Forfeiture of Rights

 	
  

 	
 If you should take actions in competition with the
 Company, the Company shall have the right to cause a forfeiture of your
 rights, including, but not limited to, the right to cause: (i) a
 forfeiture of any outstanding option, and (ii) with respect to the
 period commencing twelve (12) months prior to your termination of Service
 with the Company and ending twelve (12) months following such termination of
 Service (A) a forfeiture of any gain recognized by you upon the exercise of
 an option or (B) a forfeiture of any Stock acquired by you upon the exercise
 of an option (but the Company will pay you the option price without
 interest). Unless otherwise specified in an employment or other agreement
 between the Company and you, you take actions in competition with the Company
 if you directly or indirectly, own, manage, operate, join or control, or
 participate in the ownership, management, operation or control of, or are a
 proprietor, director, officer, stockholder, member, partner or an employee or
 agent of, or a consultant to any business, firm, corporation, partnership or
 other entity which competes with any business in which the Company or any of
 its Affiliates is engaged during your employment or other relationship with
 the Company or its Affiliates or at the time of your termination of Service.
 Under the prior sentence, ownership of less than 1% of the securities of a
 public company shall not be treated as an action in competition with the
 Company.

 
	
  

 	
  

 	
  

 
	
 Adjustments

 	
  

 	
 In the event of a stock split, a stock dividend or a
 similar change in the Stock, the number of shares covered by this option and
 the option price per share shall be adjusted (and rounded down to the nearest
 whole number) if required pursuant to the Plan. Your option shall be subject
 to the terms of the agreement of merger, liquidation or reorganization in the
 event the Company is subject to such corporate activity.

 
	
  

 	
  

 	
  

 
	
 Applicable Law

 	
  

 	
 This Agreement will be interpreted and enforced
 under the laws of the State of Delaware, other than any conflicts or choice
 of law rule or principle that might otherwise refer construction or
 interpretation of this Agreement to the substantive law of another
 jurisdiction.

 

5

	
  

 	
  

 	
  

 
	
 The Plan

 	
  

 	
 The text of the Plan is incorporated in this
 Agreement by reference. Certain capitalized terms used in this Agreement are
 defined in the Plan, and have the meaning set forth in the Plan.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 This Agreement and the Plan constitute the entire
 understanding between you and the Company regarding this option. Any prior
 agreements, commitments or negotiations concerning this option are
 superseded.

 
	
  

 	
  

 	
  

 
	
 Data Privacy

 	
  

 	
 In order to administer the Plan, the Company may
 process personal data about you. Such data includes but is not limited to the
 information provided in this Agreement and any changes thereto, other
 appropriate personal and financial data about you such as home address and
 business addresses and other contact information, payroll information and any
 other information that might be deemed appropriate by the Company to
 facilitate the administration of the Plan.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By accepting this option, you give explicit consent
 to the Company to process any such personal data. You also give explicit
 consent to the Company to transfer any such personal data outside the country
 in which you work or are employed, including, with respect to non-U.S.
 resident Optionees, to the United States, to transferees who shall include
 the Company and other persons who are designated by the Company to administer
 the Plan.

 
	
  

 	
  

 	
  

 
	
 Consent to Electronic Delivery

 	
  

 	
 The Company may choose to deliver certain statutory
 materials relating to the Plan in electronic form. By accepting this option
 grant you agree that the Company may deliver the Plan prospectus and the
 Company’s annual report to you in an electronic format. If at any time you
 would prefer to receive paper copies of these documents, as you are entitled
 to, the Company would be pleased to provide copies. Please contact the
 Company’s Associate General Counsel to request paper copies of these
 documents.

 

By signing the cover sheet of this Agreement, you agree to
all of the terms and conditions described above and in the Plan.

6

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