Document:

EX-10.22 License Agreement w/IBM & Z-Kat, Inc.

 

EXHIBIT 10.22

License Reference Number L064923

			
	EXECUTION COPY
	 	PATENT CROSS LICENSE

     LICENSE AGREEMENT (“Agreement”) dated as of the Agreement Date, hereinbelow defined, by and
between INTERNATIONAL BUSINESS MACHINES CORPORATION, a New York corporation (“IBM”), MAKO Surgical
Corporation, a Delaware corporation (MAKO), and Z-KAT, Inc., a Florida corporation and a holder of
some or all intellectual property for MAKO (“Z-KAT”).

Whereas MAKO and IBM (as “Grantee”) desire to acquire a nonexclusive license under patents of the
other party (as “Grantor”), and IBM (as “Grantee”) desires to acquire a non exclusive license under
patents of Z-KAT (as “Grantor”), and Z-KAT desires IBM to grant a nonexclusive license under IBM
patents to MAKO and a release to Z-KAT from IBM. In consideration of the premises and mutual
covenants herein contained, IBM, MAKO, and Z-KAT agree as follows:

Section 1. Definitions

“Agreement Date” shall mean the date on which this Agreement is signed by the last of IBM, MAKO,
and Z-KAT to so sign, as shown on the signature page.

“Authorized Assembler” shall mean a third party that, pursuant to a written contract with a
Grantee, assembles Grantee’s Licensed Products, in accordance with written specifications provided
by said Grantee, for sale under Grantee’s brand name.

“Authorized Copy (Copies)” shall mean a computer program copied from a Master Copy by a third party
under written authorization to such third party to make copies of such master Copy for its own use
or for further Distribution (by transmission or other distribution means).

“Change of Control” shall mean a transaction or the last of a series of transactions that results
in:

	 	a.	 	a person or entity acquires, directly or indirectly, all or substantially all
of the assets of MAKO;
	 
	 	b.	 	a person or entity obtaining Control of MAKO or any Subsidiary of MAKO;
	 
	 	c.	 	an initial public offering (IPO) of MAKO or a Subsidiary of MAKO;
	 
	 	d.	 	a merger, consolidation, amalgamation, or other combination of MAKCO with a
third party in which MAKO is not the surviving; or
	 
	 	e.	 	an acquisition of MAKO as a Subsidiary of a third party.

“Control” shall mean the power to direct the affairs of MAKO by reason of ownership or other
control of 50.01% or more of the voting stack of MAKO or more than fifty percent (50%) of the
ownership interest representing the right to make the decisions for such corporation.

“Distribute” shall mean lease, license, sell, or otherwise transfer.

 

 

 

 

[***] 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.

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“Effective Date” shall mean March 31, 2006.

“IBM Licensed Products” shall mean IHS Products outside of the MAKO Field and excluding MAKO
Licensed Products.

“IHS Product” shall mean an Information Handling System or any instrumentality or aggregate of
instrumentalities (including, without limitation, any component, subassembly, computer program or
supply) designed for incorporation in an Information Handling System. Any instrumentality or
aggregate of instrumentalities primarily designed for use in the fabrication (including testing) of
an IHS Product shall not be considered to be an IHS Product.

“Information Handling System” shall mean any instrumentality or aggregate of instrumentalities
primarily designed to compute, classify, process, transmit, receive, retrieve, originate, switch,
store, display, manifest, measure, detect, record, reproduce, handle or utilize any form of
information, intelligence or data for business, scientific, control or other purposes.

“Licensed Patents” shall mean all patents, including utility models and typeface design patents and
registrations (but not including any other design patents or registrations):

	 	(a)	 	issued or issuing on patent applications entitled to an effective filing date prior to
March 31, 2011 (“Futures Date”); and
	 
	 	(b)	 	under which patents or the applications therefor a party hereto or any of its
Subsidiaries has as of the Agreement Date, or thereafter obtains, the right to grant
licenses to Grantee of or within the scope granted herein without such grant or the
exercise of rights thereunder resulting in the payment of royalties or other consideration
by Grantor or its Subsidiaries to third parties (except for payments among Grantor and its
Subsidiaries, and payments to third parties for inventions made by said third parties while
employed by Grantor or any of its Subsidiaries).

Licensed Patents shall include said patent applications, continuations-in-part, divisionals, and
continuations of said patent applications, and all reissues, reexaminations, and extensions of any
of the aforesaid patents or issuing from the aforesaid patent applications.

“Licensed Products” shall mean either IBM Licensed products, in the case of IBM, or MAKO Licensed
Products, in the case of MAKO, each as the context indicates.

“MAKO
Field” means surgery performed in the field of orthopedics and
spinal surgery performed in the field of neurology, each practiced in
combination with a Robotic Device.

“MAKO Licensed Product shall mean a Robotic Device primarily designed for Surgery in the medical
field of orthopedics and/or primarily designed for spinal Surgery in
the medical field of neurology.

“Master Copy” shall mean a software program distributed by Grantee to a third party with written
authorization to such third party to make copies of such software program for its own use or for
further Distribution (by transmission or other distribution means).

“Patented Portion” shall mean that portion of a MAKO Licensed Product which:

 

 

 

 

[***] 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.

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	 	(a)	 	embodies or uses all the elements or steps recited in any one claim of one Licensed Patent as
to which MAKO is the Grantee and IBM is the Grantor; or
	 
	 	(b)	 	is manufactured by use of all the steps recited in any one claim of one Licensed Patent as to
which MAKO is the Grantee and IBM is the Grantor.

“Performance of Business Processes” shall mean advising, servicing, or operating all or part of an
enterprise or organization.

“Robotic Device” means a machine or device, including tools held by such machine or device, if any,
which machine or device includes mechanical components, logic circuitry, computing components,
software and/or other specialized components, that (i) operates automatically, semi-automatically,
interactively or by remote control, in which desired and/or measured force, torque, position,
orientation, velocity, and/or angular velocity information is processed, inputted, monitored,
and/or displayed by a computing source and such or a related computing source is used to control
the force, torque, position, orientation, velocity, angular velocity, and/or physical configuration
of the device; or (ii) senses force and/or torque information, provides tactile, force and/or
torque information to the user, applies a force and/or torque to a medical instrument, and/or fully
or partially constrains the position, velocity, orientation, or angular velocity of a medical
instrument; or (iii) provides patient or surgical instrument information to a user.

“Robotic Product” shall mean a MAKO Licensed Product having at least one Patented Portion.

“Selling
Price” shall mean the actual selling price to an
unaffiliated customer, and in the case of a sale of a MAKO Licensed Product to
an affiliated customer, the greater of actual selling price of fair
market value in sales to affiliated customers. If there is no selling price (e.g., as would be the case where one or
more of the components of a Robotic Product are consigned) then the Selling Price shall mean the
fair market value. For purposes of this Agreement, “fair market
value” of the Selling Price shall mean the average of the
selling prices by MAKO for sales of a MAKO Licensed Product to
unaffiliated customers in the most recently completed three-month
period in which sales of MAKO Licensed Product occurred to
unaffiliated customers.

“Subsidiary” of a party hereto or of a third party shall mean a corporation, company or other
entity:

	 	(a)	 	more than fifty percent (50%) of whose outstanding shares or securities (representing the
right to vote for the election of directors or other managing authority) are, now or
hereafter, owned or controlled, directly or indirectly, by a party hereto or such third party,
but such corporation, company or other entity shall be deemed to be a Subsidiary only so long
as such ownership or control exists; or
	 
	 	(b)	 	which does not have outstanding shares or securities, as may be the case in a partnership,
joint venture or unincorporated association, but more than fifty percent (50%) of whose
ownership interest representing the right to make the decisions for such corporation, company
or other entity is now or hereafter, owned or controlled, directly or indirectly, by a party
hereto or such third party, but such corporation, company or other entity shall be deemed to
be a Subsidiary only so long as such ownership or control exists.

“Surgery” shall mean operation on or manipulation of tissue for the treatment of disease, injury or
deformity.

Section 2. Grants of 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.

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2.1.1 IBM, as Grantor, on behalf of itself and its Subsidiaries grants to MAKO, as Grantee, a
nonexclusive and worldwide license under Grantor’s Licensed Patents:

	 	(a)	 	to make (including the right to use any apparatus and practice any method in making), use,
import, offer for sale, lease, license, sell and/or otherwise transfer Grantee Licensed
Products; and
	 
	 	(b)	 	to have Grantee Licensed Products made by another manufacturer for the use, importation,
offer for sale, lease, sale and/or other transfer by Grantee only when the conditions set
forth in Section 2.2 are met.

A particular Licensed Product shall be licensed under only those of: (a) Grantor’s Licensed Patents
that exist in the country where Grantee made, used, imported, offered for sale, leased, licensed,
sold, and/or otherwise transferred such Licensed Product and which, but for the license granted
herein would have been infringed (including contributory infringement) by the performance of such
acts; and (b) Grantor’s Licensed Patents that exist in any country other than where Grantee
performed such acts and which, but for the license granted herein would have been infringed
(including contributory infringement) if Grantee’s performance of such acts had occurred in the
country where such Licensed Patents exist.

2.1.2 MAKO, as Grantor, on behalf of itself and its Subsidiaries grants to IBM, as Grantee, a
nonexclusive, irrevocable, and worldwide license under Grantor’s Licensed Patents:

	 	(a)	 	to make (including the right to use any apparatus and practice any method in making), use,
import, offer for sale, lease, license, sell and/or otherwise transfer Grantee Licensed
Products;
	 
	 	(b)	 	to have Grantee Licensed Products made by another manufacturer for the use, importation,
offer for sale, lease, sale and/or other transfer by Grantee only when the conditions set
forth in Section 2.2 are met; and
	 
	 	(c)	 	to use any apparatus and practice any method in connection with the Performance of Business
Processes for itself or third parties outside of the MAKO field.

Subject to the foregoing limitations, a particular Licensed Product, or use of any apparatus or
practice of any method in connection with the Performance of Business Processes, shall be licensed
under only those of: (a) Grantor’s Licensed Patents that exist in the country where Grantee made,
used, imported, offered for sale, leased, licensed, sold, and/or otherwise transferred such
Licensed Product, or used any such apparatus or practiced any such method in connection with the
Performance of Business Processes, and which, but for the license granted herein would have been
infringed (including contributory infringement) by the performance of such acts; and (b) Grantor’s
Licensed Patents that exist in any country other than where Grantee performed such acts and which,
but for the license granted herein would have been infringed (including contributory infringement)
if Grantee’s performance of such acts had occurred in the country where such Licensed Patents
exist.

2.1.3 Z-KAT, as Grantor, on behalf of itself and its Subsidiaries grants to IBM, as Grantee, a
nonexclusive, irrevocable, and worldwide license under Grantor’s Licensed 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.

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	 	(a)	 	to make (including the right to use any apparatus and practice any method in making), use,
import, offer for sale, lease, license, sell and/or otherwise transfer Grantee Licensed
Products;
	 
	 	(b)	 	to have Grantee Licensed Products made by another manufacturer for the use, importation,
offer for sale, lease, sale and/or other transfer by Grantee only when the conditions set
forth in section 2.2 are met; and
	 
	 	(c)	 	to use any apparatus and practice any method in connection with the Performance of Business
Processes for itself or third parties.

A particular Licensed Product, or use of any apparatus or practice of any method in connection with
the Performance of Business Processes, shall be licensed under only those of: (a) Grantor’s
Licensed Patents that exist in the country where Grantee made, used, imported, offered for sale,
leased, licensed, sold, and/or otherwise transferred such Licensed Product, or used any such
apparatus or practiced any such method in connection with the Performance of Business Processes,
and which, but for the license granted herein would have been infringed (including contributory
infringement) by the performance of such acts; and (b) Grantor’s Licensed Patents that exist in any
country other than where Grantee performed such acts and which, but for the license granted herein
would have been infringed (including contributory infringement) if Grantee’s performance of such
acts had occurred in the country where such Licensed Patents exist.

The license granted by MAKO and Z-KAT to IBM is fully paid up.

IBM grants no licenses, expressed or implied, to Z-KAT under this Agreement,

2.2 The license granted in Section 2.1.1(b), 2.1.2(b), and 2.1.3(b) to Grantee to have products
made by another manufacturer:

	 	(a)	 	shall only apply to products and/or portions thereof sold to Grantee by such manufacturer
after the Agreement Date;
	 
	 	(b)	 	shall only apply to Grantee Licensed Products and/or portions thereof for which the
specifications were created by Grantee (either solely or jointly with one or more third
parties) or for Grantee;
	 
	 	(c)	 	shall only be under claims of Grantor’s Licensed Patents, the infringement of which would be
necessitated by compliance with such specifications; and
	 
	 	(d)	 	shall not apply to (i) any products in the form manufactured or marketed by said other
manufacturer prior to Grantee’s furnishing of said specifications, or (ii) any methods used by
said other manufacturer.

Unless Grantee informs Grantor to the contrary, Grantee shall be deemed to have authorized said
other manufacturer to make Grantee’s Licensed Products under the license granted to Grantee in this
section when the conditions specified in this Section 2.2 are fulfilled. In response to a written
request identifying a product and a manufacturer, Grantee shall in a timely manner inform

 

 

 

 

[***] 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.

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Grantor of the quantity of such product, if any, manufactured by such manufacturer pursuant to the
license granted in Section 2.1.1(b), 2.1.2(b), and/or 2.1.3(b).

2.3 Except as expressly provided herein, no license or immunity is granted under this Agreement by
any party, either directly or by implication, estoppel or otherwise to any third parties acquiring
items from any party for the combination of such acquired items with other items (including items
acquired from either party hereto) or for the use of such combination.

2.4 Subject to Section 2.5, the licenses granted herein include the right of IBM and MAKO to grant
sublicenses to their Subsidiaries existing on or after the Agreement Date, which sublicenses may
include the right of sublicensed Subsidiaries to sublicense other Subsidiaries of said party. No
sublicense shall be broader in any respect at any time during the life of this Agreement than the
license held at that time by the party that granted the sublicense.

2.5 A sublicense granted to a Subsidiary shall terminate on the earlier of:

(a) the date such Subsidiary ceases to be a Subsidiary of a party hereto; and

(b) the date of termination or expiration of the license of the party or Subsidiary that granted
the sublicense.

If a Subsidiary ceases to be a Subsidiary and holds any patents under which a party hereto is
licensed as the Grantee, such license shall continue with respect to such Grantee for the term
defined herein.

2.6 In the event that neither a party nor any of its Subsidiaries has the right to grant a license
under any particular Licensed Patent of the scope set forth in Section 2, then the license granted
herein under said Licensed Patent shall be of the broadest scope which said party or any of its
Subsidiaries has the right to grant within the scope set forth above.

2.7 If, after the Agreement Date, a party or any of its Subsidiaries (“Acquiring Party”) either
acquires an entity or acquires substantially all of the assets from an entity, and said entity is,
immediately prior to the date of acquisition, licensed by the other party (“Licensor”) under one or
more Licensed Patents through an existing agreement pursuant to which royalties or other payments
are made by said entity to Licensor, then the license and other rights granted herein to the
Acquiring party with respect to said Licensed Patents shall apply to products manufactured by said
entity or through the use of said assets, provided that such royalties or other payments shall
continue to be made by the Acquiring Party or said entity to the Licensor with respect to such
products notwithstanding that the Acquiring Party may have been licensed for the same Licensed
Products before the acquisition.

2.8 If, subsequent to the Agreement Date, a party (the “Transferring Party”) either: (i) transfers
a product or service line to a third party without transferring a Subsidiary to said third party;
or (ii) spins off a Subsidiary (either by disposing of it to a third party or in some other manner
reducing ownership or control so that the spun-off entity is no longer a Subsidiary of the
Transferring Party); and if such transfer or spin off includes at
least one marketable product or
service in a product or service line and tangible assets having a net
value of at least twenty five million US
dollars ($25,000,000.00), then after written request to the other party(ies) hereto jointly by the

 

 

 

 

[***] 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.

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Transferring Party and either: (i) such third party in the case of a transfer; or (ii) such
ex-Subsidiary in the case of a spin off; and where, in either case, such request is within sixty
(60) days following the transfer or spin off, the other
party(ies) hereto shall grant a (royalty-free—in
the case of IBM as the Transferring Party) license (under the same terms as the license granted to
the Transferring Party herein) under its Licensed Patents for the field of such product or service
line to such third party or such ex-Subsidiary, (the “Recipient”) provided that:

	 	(a)	 	such field shall be subject to the restrictions contained in this Agreement and shall not be
defined more broadly than the scope of the license granted herein to the Transferring Party,
nor more broadly than necessary to cover the particular product or service line being
transferred or spun off, including extensions thereto based on the same technology;
	 
	 	(b)	 	the license granted shall he limited in the twelve(12) months immediately following such transfer
or spin off to a volume of licensed products or services having an aggregate selling price
equal to no more than the aggregate selling prices of such products
or services by said one party in the twelve (12) months preceding
such transfer or spin off plus ten percent (10%); and shall be
limited, in each of the successive twelve month periods following such
transfer or spin off, to a volume of licensed products or services having an aggregate selling
price equal to no more than the limit for the immediately preceding
twelve-month period plus ten percent (10%);
	 
	 	(c)	 	the Recipient shall grant to such other party a royalty-free license (under the same terms as the
license granted to such other party herein) under all Recipient Patents for all products and
services licensed herein to such other party on the date of the product or service line
transfer or spin off. “Recipient Patents” shall mean all patents throughout the world entitled
to an effective filing date prior to March 31, 2011 under which, at any time commencing with
the date of the product or service line transfer or spin off, the Recipient or any of its
Subsidiaries has the right to grant such licenses;
	 
	 	(d)	 	this Section 2.8, Section 3, and Section 4 shall be omitted from the license granted to the
Recipient; and
	 
	 	(e)	 	the license granted to the Recipient shall terminate if the license granted to the
Transferring Party terminates or is terminated for any reason.

Notwithstanding the foregoing provisions of this Section 2.8, the transfer by one party of
substantially all of its assets to any third party and/or the merger or acquisition of a party by
any third party shall not be considered to be a transfer of a product or service line or a spin off
of a Subsidiary under this Section 2.8, and the other party shall have no obligation to grant a
license under its Licensed Patents to such third party as a result of such transfer.

Notwithstanding the provisions of this Section 2.8, IBM’s grant to the Recipient shall be subject
to royalty payment provisions of Attachment R.

2.9 A product which, if assembled by Grantee, would be licensed to Grantee hereunder shall also be
licensed hereunder if assembled by an Authorized Assembler, provided:

	 	(a)	 	the purchase price paid to Grantee and Grantee’s designees for items included in the product
exceeds sixty percent (60%) of the total cost of manufacturing and/or purchasing all of the
items included in the product; and

 

 

 

 

[***] 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.

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	 	(b)	 	the product is sold under Grantee’s brand name.

2.10 For purposes of this Agreement, an Authorized Copy shall be deemed to have been Distributed by
the Grantee that Distributed the Master Copy from which the Authorized Copy was copied, provided
such Authorized Copy is used or Distributed under a brand name of Grantee.

2.11 Where a third party uses an apparatus or practices a method in Performance of Business
Process, and such third party is acting on behalf of, and as subcontractor to, IBM in connection
with a contract that obligates IBM to provide such Performance of a Business Process for an IBM
customer, such use or practice shall be deemed to have been performed by IBM.

Section 3. Releases

3.1 Each party (as “Releasor”) on behalf of itself and its
Subsidiaries which are its
Subsidiaries on the Agreement Date, irrevocably releases the other party, its Subsidiaries which
are its Subsidiaries on the Agreement Date and its and their respective customers from any and all
claims of infringement of Releasor’s Licensed Patents which claims are based on acts prior to the
Effective Date, which, had they been performed after the Effective Date would have been licensed
under this Agreement.

The release contained herein shall not apply to any person other than the parties named in this
Section 3 and their Subsidiaries and shall not apply to the manufacture of any items by any person
other than the parties and their Subsidiaries. The release granted by MAKO and Z-KAT to IBM is
effective on the Effective Date. The release granted by IBM to MAKO and Z-KAT shall become
effective upon receipt of payment specified in Section 4.1(a).

Section 4. Payment

4.1 MAKO shall pay to IBM the below sums in US dollars, no portion of which shall be refundable, as
fellows:

	 	(a)	 	as consideration for the grant of right by IBM to MAKO under Section 2.1.1 and the release
granted by IBM to MAKO and Z-KAT under Section 3.1, two million
($2,000,000) US dollars on or before
noon, March 30, 2006;
	 
	 	(b)	 	as additional consideration for the license and other rights granted by IBM to MAKO herein,
royalties in the amount and under the terms in Attachment R; and
	 
	 	(c)	 	as additional consideration for the license and other rights granted by IBM to MAKO herein,
MAKO or its successor in interest shall pay IBM the sum of Four Million ($4,000,000) US
dollars within thirty (30) days after a first Change of Control. MAKO or its successor in
interest will provide IBM written notice within two (2) weeks after the occurrence of such a
Change of Control.

4.2 MAKO shall be liable for interest on any overdue payment required to be made pursuant to
Section 4, commencing on the date such payment becomes due, at an annual rate which is the greater
of ten percent (10%) or six percentage points higher than the prime interest rate as quoted

 

 

 

 

[***] 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.

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by the head office of Citibank N.A., New York, at the close of banking on such date, or on the
first business day thereafter if such date falls on a non-business day. If such interest rate
exceeds the maximum legal rate in the jurisdiction where a claim therefor is being asserted, the
interest rate shall be reduced to such maximum legal rate.

4.3 If a payment set forth in Sections 4.1(b) and (c) are not made by its due date, unless such
payment is disputed by a party as provided in Section 4.4, and if such payment, plus interest
pursuant to Section 4.2, is not made prior to thirty (30) days after written notice thereof is
received by MAKO (which shall deemed to be received 3 business days after a Federal Express
mailing) then IBM shall have the option to automatically terminate all licenses and other rights
granted herein to MAKO, Z-KAT, and any successor in interest of MAKO on the thirtieth day after
MAKO or its successor in interest receives written notice from IM of IBM’s election to terminate
MAKO’s, MAKO’s successor in interest’s, and Z-KAT’s rights, respectively — which written notice
shall deemed to be received 3 business days after a Federal Express mailing. In such event, MAKO
or its successor in interest shall remain obligated to pay all payments which had become due prior
to such notice (plus interest thereon as provided in Section 4.2).

4.4 In the event MAKO has a commercially reasonable, good faith belief that a payment is not due
IBM under this Agreement at the time and/or in the amount asserted by IBM in writing, then MAKO and
IBM agree to the following dispute resolution process to resolve such dispute:

	 	a.	 	IBM or MAKO will provide the other party with a written notice of dispute, with any such
notice from IBM to MAKO that may also include a request for business; financial sales;
and/or product design, function, and operation information;
	 
	 	b.	 	MAKO will provide IBM with the requested information;
	 
	 	c.	 	executives from IBM and MAKO will conduct good faith negotiations to resolve such
dispute;
	 
	 	d.	 	if within 15 days of the IBM notice being received by MAKO, which shall deemed to be
received 3 business days after a Federal Express mailing, the discussions between these
executives fail to resolve the dispute, IBM and MAKO will make a good faith effort to enter
non binding mediation to settle the dispute with a mutually acceptable mediator;
	 
	 	e.	 	if within 30 days of notice being received by MAKO, the dispute remains unresolved, MAKO
agrees to pay IBM the amount in dispute,
	 
	 	 	 	however, each party retains the right to any legal remedies against the other party relating
to such disputed amount.

The parties to this Agreement likewise agree to resolve all non-monetary disputes under this
Agreement pursuant to the same procedures as set forth above in this Section 4.4, however, each
party retains the right to any legal remedies against the other party relating to such dispute.
Each party will pay its own costs and expenses of the mediation.

Section 5. Term of Agreement; Acquisition of a Party

 

 

 

 

[***] 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.

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5.1 The term of the licenses granted under this Agreement shall be from the Effective Date until
date of the last to expire of the Licensed Patents, unless earlier terminated under the provisions
of this Agreement.

5.2 If MAKO is acquired by a third party, either by becoming a Subsidiary of such third party or
such that MAKO is no longer a separate legal entity, then this Agreement shall continue in full
force and effect for the benefit of such third-party (and MAKO if MAKO still exists) in the event
all of the following occurs:

	 	(a)	 	either the third party and/or MAKO pays IBM all undisputed payments or disputed payments
which have been addressed under Section 4.4 that are owed to IBM as of the date of the
closing of such acquisition transaction;
	 
	 	(b)	 	either the third party and/or MAKO pays IBM the full payment in Section 4.1(c) within
thirty (30) days of the date of the closing of such acquisition transaction;
	 
	 	(c)	 	within 60 days of such acquisition transaction, the third party, on behalf of itself and
it Subsidiaries, agrees in writing, signed by IBM and the third party, to be bound by this
Agreement, including the royalty terms in Attachment R, except that this Agreement shall be
amended as follows:

	 	 	 	(c)(i) where MAKO no longer exists, the name of the third party replaces the name
of MAKO in this Agreement;
	 
	 	 	 	(c)(ii) This Section 5.2 is changed to read: “Third party hereby grants IBM an
option to acquire a patent license with the terms of Attachment B and a release of
the scope of Section 3 for acts prior to such license, which IBM can exercise during
the term of this Agreement at IBM’s sole discretion and with written notification to
the third party if the third party initiates or maintains a patent litigation
against IBM or a Subsidiary of IBM (or any of their customers with respect to any
IHS product or service, outside of the MAKO Field, provided by IBM or its
Subsidiaries), threatens patent litigation against IBM or a Subsidiary of IBM (or
any of their customers with respect to any IHS product or service, outside of the
MAKO Field, provided by IBM or its Subsidiaries), or has an unresolved allegation of
patent infringement against IBM or a Subsidiary of IBM (or any of their customers
with respect to any IHS product or service, outside of the MAKO Field, provided by
IBM or its Subsidiaries) during the term of this Agreement. The price of such patent
license and release shall be negotiated between IBM and the third party. However,
the full consideration paid by IBM for such license and release shall not to exceed
$4.0 million dollars ($4,000,000).
	 
	 	 	 	(c)(iii) Any attempt to transfer MAKOs or the third party’s rights under this
Agreement to a subsequent party without IBM’s prior written consent shall be void ab
initio. IBM is under no obligation to provide consent for such transfer.; and
	 
	 	 	 	(c)(iv) the Contact information in Section 6.2 shall be updated.

 

 

 

 

[***] 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-

 

If all of the conditions in this Section are not met, the license granted to MAKO in Section 2.1.1
shall be suspended until such time as all of these conditions are satisfied. The licenses granted
to IBM shall remain in full force and effect.

Section 6. Means of Payment and Communication

6.1 Payment shall be made by electronic funds transfer. Payments shall be deemed to be made on the
date credited, to the following account:

Director of Licensing

International Business Machines Corporation

PNC Bank

500 First Avenue

Pittsburgh, PA 15219

Bank Account Number: [***]

ABA Routing Number: [***]

6.2 Notices and other communications shall be sent by facsimile, reputable overnight courier, or by
registered or certified mail to the following addresses and shall be effective upon sending:

	 	 	 
	For IBM:

	 	For MAKO:
	 
	Director of Licensing

	 	MAKO Surgical Corp.
	IBM Corporation

	 	2901 Simms Street
	North Castle Drive, MD-NC119

	 	Hollywood, FL 33021
	Armonk, NY 10504-1785

	 	United States of America
	United States of America

	 	Attn: Chief Executive Officer
	Facsimile: (914) 765-4380

	 	Facsimile: 954-927-0446
	 

	 	Phone: 954-927-2044

For Z-KAT:

Z-KAT, Inc.

2901 Simms Street

Hollywood, FL 33021

United States of America

Attn: Chief Executive Officer

Facsimile: 954-927-0446

Phone: 954-927-2044 (phone)

 

 

 

 

[***] 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-

 

6.3 A License Reference Number will be assigned to our agreement upon execution. This number
should be included in all communications including wire transfer payments, tax credit certificates,
letters, faxes and E-Mail messages.

Section 7. Other License Rights

7.1 It is recognized that the parties hereto or their respective Subsidiaries may now have, or
hereafter obtain, the right to grant licenses under one or more country, including utility models
and including design patents and registrations (but not including any other design patents or
registrations), issuing on patent applications entitled to an effective filing date prior to March
31, 2011 and under the patent applications therefore, but that such grant or the
exercise of rights thereunder shall result in payment of royalties or other consideration by
Grantor or its Subsidiaries to third parties. Each party (as Grantor) agrees that, upon written
request, it shall grant to the other party to the extent and subject to the terms and conditions
under which it then has the right to do so, a license of the broadest scope which Grantor has the
right to grant at any time but of no greater scope than the scope of the licenses granted herein
with respect to any such patent or patent application. Such license shall be granted under a
separate agreement, upon payment of the same royalty or other consideration as that which Grantor
or any of its Subsidiaries is obligated to pay to a third party because of the grant of such
license or the exercise of rights thereunder.

7.2 Upon written request by a party, the other party shall inform the requesting party of those
patents or patent applications coming within the scope of Section 7.1 within a reasonable period of
time, but within 30 days, after the receipt of such request.

Section 8. Miscellaneous

8.1 Neither party shall assign or grant any right under any of its Licensed Patents unless such
assignment or grant is made subject to the terms of this Agreement.

8.2 Neither party shall assign any of its rights (other than the right to receive payments) or
delegate any of its obligations under this Agreement. Any attempt to do so shall be void. However,
a party which undergoes reorganization may assign such rights and delegate such obligations to its
legal successor, provided that after the reorganization, the successor and its Subsidiaries will
have essentially the same assets as such party and its Subsidiaries had prior to the
reorganization.

8.3 Neither party shall use or refer to this Agreement or any of its provisions in any promotional
activity, except pursuant to the written consent of the other parties, which consent shall not be
unreasonably withheld, conditioned or delayed.

8.4 Each party represents and warrants that it has the full right and power to grant the license
and release set forth in Sections 2 and 3. Other than as set forth in this Section 8.4 and in
Section 8.16, neither party makes any other representation or warranty, express or implied, nor
shall either party have any liability in respect of any infringement of patents or other rights of
third parties due to the other party’s operation under the license herein granted.

8.5 Nothing contained in this Agreement shall be construed as conferring any rights by

 

 

 

 

[***] Confidential treatment has been requested for portions of this exhibit.
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Omissions are designated as [***]. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

-12-

 

implication, estoppel or otherwise, under any non-patent intellectual property right, or any
patents or patent applications, other than the Licensed Patents. Neither party is required
hereunder to furnish or disclose to the other any technical or other information (including copies
of Licensed Patents) except as specifically provided herein.

8.6 Neither party shall have any obligation hereunder to institute any action or suit against third
parties for infringement of any of its Licensed Patents or to defend any action or suit brought by
a third party which challenges or concerns the validity of any of its Licensed Patents. Neither
party shall have any right to institute any action or suit against third parties for infringement
of any of the other party’s Licensed Patents. Neither party, nor any of its Subsidiaries, is
required to file any patent application, or to secure any patent or patent rights, or to maintain
any patent in force.

8.7 Each party shall, upon a request from the other party sufficiently identifying any patent or
patent application, inform the other party as to the extent to which said patent or patent
application is subject to the licenses and other rights granted hereunder. If such licenses or
other rights under said patent or patent application are restricted in scope, copies of all
pertinent provisions of any contract or other arrangement creating such restrictions shall, upon
request, be furnished to the party making such request, unless such disclosure is prevented by such
contract, and in such event, a statement of the nature of such restriction shall be provided.

8.8 If a third party has the right to grant licenses under a patent to a party hereto (as a
“Licensee”) with the consent of the other party hereto, said other party shall provide said third
party with any consent required to enable said third party to license said Licensee on whatever
terms such third party may deem appropriate.

8.9 It is recognized that a party hereto (“Benefiting Party”), or its respective subsidiaries, may
desire to obtain a patent license from a third party (“Third Party”), wherein the Third Party is
owned or controlled, directly or indirectly, in part by the other party hereto (“Assisting Party”),
or its respective Subsidiaries. In such event, and provided the conditions set forth in section
8.9.1 are met, then the Assisting Party shall use reasonable efforts (to the extent legally
permissible) to exert its interest in the third party for the purpose
of assisting the Benefiting Party in becoming licensed under any patents
licensable by the Third Party under the same terms and conditions as
this Agreement and at no cost to the Benefiting Party. In no event
shall the Assisting Party exert its interest in opposition to such
license.

     8.9.1 The assistance set forth in section 8.9 shall be provided only if:

          (a) at the time of the request referenced in subsection (d) below, the Assisting Party (or any
of its Subsidiaries) shall own or control, directly or indirectly,
greater than twenty five percent
(25%) of: (i) the outstanding shares or securities (representing the right to vote for the
election of directors or other managing authority) of the Third Party, or (ii) the right to make
the decisions for the Third Party, in the event the Third Party does not have outstanding shares or
securities (as may be the case in a partnership, joint venture or unincorporated association);

          (b) the licensable patents of the Third Party would qualify as Licensed Patents if the same
were wholly owned by the Assisting Party;

          (c) during any year preceding the date of the request referenced in subsection (d) below, the
Third Party derived more than fifty percent (50%) of its annual income from licensing (or
otherwise enforcing) its patents; and

 

 

 

 

[***] 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-

 

          (d) the Benefiting Party requests in writing that the Assisting Party furnishes its assistance
in obtaining the license referenced in section 8.9.

     8.9.2 In response to a written request by one party, the other party shall promptly specify
the extent of its ownership or controlling interest in an identified third party, provided however,
that such obligation to specify such interest shall only apply if (i) such third party meets the
criteria established in section 8.9.1 (c), or (ii) such third party had previously notified such
requesting party that it might need a license under such third party’s patents.

8.10 This Agreement shall not be binding upon the parties until it has been signed hereinbelow by
or on behalf of each party. No amendment or modification hereof shall be valid or binding upon the
parties unless made in writing and signed as aforesaid, except that IBM may amend Section 6.1 and
either party may amend its address in Section 6.2 by written notice to the other party.

8.11 If any section of this Agreement is found by competent authority to be invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and enforceability of such
section in every other respect and the remainder of this Agreement shall continue in effect so long
as the Agreement still expresses the intent of the parties. However, if the intent of the parties
cannot be preserved, this Agreement shall be either renegotiated or terminated.

8.12 This Agreement shall be construed, and the legal relations between the parties hereto shall be
determined, in accordance with the law of the State of New York, USA, as such law applies to
contracts signed and fully performed in New York.

8.13 The headings of sections are inserted for convenience of reference only and are not intended
to be a part of or to affect the meaning or interpretation of this Agreement.

8.14 Neither party shall be considered the author of this Agreement for the purpose of interpreting
any provision herein.

8.15 Until March 31, 2011, each party, on behalf of itself and its Subsidiaries, agrees not to
disclose any term or condition of this Agreement to any third party without the prior written
consent of the other party, which consent shall not be unreasonably withheld, conditioned or
delayed. This obligation is subject to the following exceptions:

	 	(a)	 	disclosure is permissible if required by government or court order, provided the party
required to disclose first gives the other prior written notice to enable it to seek a
protective order;
	 
	 	(b)	 	disclosure is permissible if otherwise required by law;
	 
	 	(c)	 	disclosure is permissible if required to enforce rights under this Agreement;
	 
	 	(d)	 	each party may use similar terms and conditions in other agreements;
	 
	 	(e)	 	each party may disclose only the scope of the licenses and immunities granted hereunder (but
not any financial terms) to the extent reasonably necessary, on a confidential basis, to

 

 

 

 

[***] 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-

 

	 	 	 	its customers, potential customers, and other third parties (including potential purchasers of
a party’s patents) with which it has a current or potential commercial relationship; and
	 
	 	(f)	 	each party may disclose the terms and conditions of this Agreement to the extent reasonably
necessary, on a confidential basis, to its accountants, attorneys, financial advisors, its
present or future providers of venture capital and/or potential investors in or acquirers of
such party or product or service lines which qualify under Section 2.8.

8.16 MAKO and Z-KAT represent and warrant that, either individually or jointly, they have the right
to grant the licenses herein to all patents having a MAKO or Z-KAT employee or contractor as an
inventor.

8.17 NO PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, NOR SHALL ANY PARTY HAVE
ANY LIABILITY, IN RESPECT OF ANY INFRINGEMENT OF PATENTS OR OTHER RIGHTS OF THIRD PARTIES DUE TO
LICENSEE’S OPERATION UNDER THE LICENSE HEREIN GRANTED.

8.18 Nothing in this Agreement shall be construed as creating any agency, joint venture,
partnership, or other type of relationship between the parties.

8.19 This Agreement may be executed by the parties in one or more counterparts, each of which shall
be an original and all of which shall together constitute one and the same instrument. Facsimile
copies shall have the same force and effect as original copies under this Agreement.

8.20 Regarding the patents listed in Attachment A-2, during the period which IBM owns such patents,
and in the event that IBM does not pay maintenance fees for any patent so listed, MAKO shall have
the right, but not the obligation, to pay such maintenance fees, prior to the latest date on which
such maintenance fees can be paid without petition, if all the following occur:

	 	a)	 	MAKO pays such maintenance fee out of its own funds, none of which will be reimbursable by
IBM or creditable against any
	payments owed IBM by MAKO; and 
	 
	 	b)	 	MAKO provides IBM notice and evidence of payment, with reference to this Agreement, within
10 days of payment.

Neither this Section 8.20 nor any payment or action by MAKO under this Section 8.20 shall create
any encumbrance on, ownership interest in, or expansion of MAKO’S rights under the listed patents
nor shall any such payment or action create any duty or obligation of IBM. IBM shall have no duty
or obligation co maintain any IBM Licensed Patent or inform MAKO of the maintenance status of any
such patent, nor shall IBM have any other duty or obligation under this Section 8.20.

[SIGNATURES APPEAR ON THE FOLLOWING 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.

-15-

 

     This Agreement and its attachments embody the entire understanding of the parties with respect to
the Licensed Patents, and replace any prior oral or written communications between them.

Agreed to:

MAKO

	 	 	 	 	 
	 	 
	By:  	/s/ Maurice R. Ferré
 	 
	 	Maurice R. Ferre, MD                         	 
	 	President and CEO
MAKO Surgical Corp. 	 
	 

Date: 3/29/2006

Agreed to:

Z-KAT

	 	 	 	 	 
	 	 
	By:  	/s/ John Whitman
 	 
	 	John R. Whitman, Chairman 	 
	 	Z-KAT, Inc.             3/29/06 	 
	 

Agreed to:

INTERNATIONAL BUSINESS MACHINES CORPORATION

	 	 	 	 	 
	 	 
	By:  	/s/ Mark Peterson
 	 
	 	Mark Petersen, Director of 	 
	 	Finance, Technology and
Intellectual Property 	 
	 

Date: 3/29/2006

 

 

 

 

 

[***] 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.

-16-

 

ATTACHMENT A-1

IBM Non-Licensed Patents

PATENTS OWNED BY IBM WHICH ARE NOT LICENSED PATENTS

	 	 	 
	PATENT NUMBER	 	TITLE
	5,487,120
	 	Optical wavelength division
multiplexer for high speed, protocol-independent serial data sources
	 
	 

5,825,949
	 	Optical wavelength division
multiplexer for coupling to data sources and sinks, wherein at least
two data sources and sinks operate with different communication
protocols

and all continuations (including continuations in part), divisions, reissues and foreign
counterparts thereof.

END ATTACHMENT A-1

 

 

 

 

[***] 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.

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ATTACHMENT A-2

IBM Licensed Patents

PARTIAL LIST OF PATENTS OWNED BY IBM WHICH ARE LICENSED PATENTS

IN MAKO’S FIELD

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Glassman
	 	 	Taylor-	 	 	Funda	 	 	 	Joskowicz	 	 
	 	5,086,401
	 	 	5,279,309	 	 	5,417,210	 	 	 	5,343,385	 	 
	 	5,299,288
	 	 	5,397,323	 	 	5,572,999	 	 	 	 	 	 
	 	5,408,409
	 	 	5,402,801	 	 	5,749,362	 	 	 	 	 	 
	 	 
	 	 	5,445,166	 	 	6,201,984	 	 	 	 	 	 
	 	 
	 	 	5,630,431	 	 	5,887,121	 	 	 	 	 	 
	 	 
	 	 	5,695,500	 	 	6,226,566	 	 	 	 	 	 
	 	 
	 	 	5,950,629	 	 	6,393,340	 	 	 	 	 	 
	 	 
	 	 	5,976,156	 	 	 	 	 	 	 	 	 
	 	 
	 	 	6,024,695	 	 	 	 	 	 	 	 	 
	 	 
	 	 	6,231,526	 	 	 	 	 	 	 	 	 
	 	 
	 	 	6,547,782	 	 	 	 	 	 	 	 	 
	 

and all continuations (including continuations in part), divisions, reissues and foreign
counterparts thereof.

END ATTACHMENT A-2

 

 

 

 

[***] 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.

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ATTACHMENT B

     Third party, as Grantor, on behalf of itself and its Subsidiaries grants to IBM, as Grantee, a
nonexclusive, irrevocable, fully paid up, and royalty free, and worldwide license under third
party’s Licensed Patents:

	 	(a)	 	to make (including the right to use any apparatus and practice any method in making), use,
import, offer for sale, lease, license, sell and/or otherwise transfer Grantee Licensed
Products;
	 
	 	(b)	 	to have Grantee Licensed Products made by another manufacturer for the use, importation,
offer for sale, lease, sale and/or other transfer by Grantee only when the conditions set
forth in Section 2.2 are met; and
	 
	 	(c)	 	to use any apparatus and practice any method in connection with the Performance of Business
Processes for itself or other third parties.

Subject to the foregoing limitations, a particular Licensed Product, or use of any apparatus or
practice of any method in connection with the Performance of Business Processes, shall be licensed
under only those of: (a) Grantor’s Licensed Patents that exist in the country where Grantee made,
used, imported, offered for sale, leased, licensed, sold, and/or otherwise transferred such
Licensed Product, or used any such apparatus or practiced any such method in connection with the
Performance of Business Processes, and which, but for the license granted herein would have been
infringed (including contributory infringement) by the performance of such acts; and (b) Grantor’s
Licensed Patents that exist in any country other than where Grantee performed such acts and which,
but for the license granted herein would have been infringed (including contributory infringement)
if Grantee’s performance of such acts had occurred in the country where such Licensed Patents
exist.

 

 

 

 

[***] 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-

 

ATTACHMENT R

Section R1. Payment of Royalties

R1.1 MAKO, on behalf of itself and its Subsidiaries, for the term of this Agreement shall pay a
royalty for each Robotic Product sold or otherwise transferred for consideration to a third-party
at a rate equal to 2% of the Selling Price of such Robotic Product.

R1.2 If MAKO purchases from a third party portions of a Robotic Product and combines such portions
with each other and/or with other portions such that the combination is itself a Robotic Product,
then royalty shall be due for the combination in accordance with this Section R1.1, whether or not
said third party is authorized by IBM to sell said purchased portions.

Section R2. Accruals, Records, Reports and Other Information

R2.1 Royalties shall accrue on the earlier of either (i) the date MAKO or its Subsidiaries
receives the full amount of the Selling Price for any Robotic Product with respect to which royalty
payments are required by this Agreement or (ii) ninety (90) days after a Robotic Product, with
respect to which royalty payments are required by this Agreement, is first sold or otherwise
transferred (including, sold or otherwise transferred to IBM or any of its Subsidiaries), or first
used in each country of use, by or for MAKO or any of its Subsidiaries.

R2.2 MAKO’s accounting period shall end on the last day of each March, June, September and
December during the term of this Agreement. Within sixty (60) days after the end of each such
period, MAKO shall furnish to IBM a written report containing the information specified in Section
R2.5 and shall pay to IBM all unpaid royalties accrued hereunder through the end of each such
period.

R2.3 MAKO shall pay all royalties and other payments due hereunder in U.S. dollars. All royalties
for an accounting period computed in other currencies shall be converted into US dollars at the
exchange rate for bank transfers from such currency to U.S. dollars as quoted by the head office of
Citibank N.A., New York, USA, at the close of banking on the last day of such accounting period (or
the first business day thereafter if such last day is a non-business day).

R2.4 IBM may accept a late payment provided such payment includes all overdue royalties or other
payment plus interest. The interest on any overdue royalty or other payment shall be calculated
commencing on the date such royalty or other payment became due, using an annual rate which is the
greater of ten percent (10%) or six percentage points higher than the prime interest rate as quoted
by the head office of Citibank N.A., New York, USA at the close of banking on such date, or on the
first business day thereafter if such date falls on a non-business day. If such interest rate
exceeds the maximum legal rate in the jurisdiction where a claim therefor is being asserted, the
interest rate shall be reduced to such maximum legal rate.

R2.5 MAKO’s written report shall be certified by an officer of LICENSEE and shall contain the
following information:

	 	(a)	 	a description of each type of Robotic Product, the quantity sold or otherwise transferred
during the accounting period, and the sum of the Selling Prices for such quantity;

 

 

 

 

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-20-

 

	 	(b)	 	the amount of royalties due for each Robotic Product; and
	 
	 	(c)	 	the aggregate amount of all royalties due.

In the event that any of Sections R2.5(a) through R2.5(c) does not apply to an accounting period,
MAKO shall so indicate. In the event no royalties are due, MAKO’s report shall so state.

R2.6 MAKO shall keep records in accordance with generally accepted accounting principles and in
sufficient detail to permit the determination of royalties due to IBM. Such records shall include,
but not be limited to, detailed records supporting the information provided under Section R2.5.
Such records shall be kept for six (6) years following the submission of the related report.

Upon written notice for an audit, LICENSEE shall permit auditors designated by IBM, together with
such legal and technical support as IBM deems necessary, to examine, during ordinary business
hours, records, materials, and manufacturing processes of LICENSEE for the purpose of verifying
compliance with this Agreement.

Each party shall pay the costs that it incurs in the course of the audit. However, in the event
that the audit establishes underpayment greater than five percent (5%) of the royalties due, MAKO
shall reimburse IBM for the reasonable cost of the audit; provided, however, such
reimbursement shall not exceed the amount of the underpayment. For purposes of this Section and
without prejudice to other and additional costs being deemed as reasonable, an amount paid to a
independent third party to carry out the audit permitted under this Section will be deemed a
“reasonable cost” to the extent it does not exceed the lower of (i) the customary fee the third
party charges to IBM for the same or similar services plus reimbursement for costs actually
incurred or (ii) the customary fee the third party charges to other similar corporate customers for
the same or similar services plus reimbursement for costs actually incurred.

 

 

 

 

[***] 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-EX-10.23 License Agreement w/Integrated Surgical

 

EXHIBIT 10.23

EXECUTION VERSION

LICENSE AGREEMENT

     THIS LICENSE AGREEMENT (this “Agreement”) is made and entered into this 1st
day of September, 2005 (the “Effective Date”), by and among Integrated Surgical Systems,
Inc., a Delaware corporation (“ISS”), and MAKO Surgical Corp., a Delaware corporation
(“MAKO”). ISS and MAKO are each referred to as a “Party” and collectively as
“Parties.”

     WHEREAS, ISS and MAKO have entered that certain Confidentiality and Non-Disclosure Agreement,
dated July 22, 2005 (the “NDA”), a copy of which is annexed hereto as Exhibit A,
and the terms of which are expressly incorporated herein by reference.

     WHEREAS, ISS and MAKO have entered that certain Binding Letter of Intent, effective as of
August 16, 2005 (as amended August 24, 2005, the “LOI”), by which the Parties have agreed
to enter into a definitive agreement, which this Agreement is intended to be.

AGREEMENT

     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 1

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 term of this
Agreement. However, the entity will be considered an Affiliate only for the time during which such
control exists.

1.2 “IP Rights” mean patents and patent applications, including provisional patents, design
patents and registrations, utility patents, utility models, petty patents; any continuation,
continuation-in-part, divisional, extension, provisional application, substitute, reissue,
reexamination, renewal, or extension (including any supplementary protection certificate) of any
such patent or patent application; any confirmation patent or registration patent or patent of
addition based on any such patent; all foreign counterparts of any of the foregoing, and any patent
claiming priority to any such patent or patent application (collectively “Patents”); U.S.
and foreign copyrights and copyright registrations, database protection rights, mask works and mask
work registrations, and all renewals, continuations, and extensions thereof (collectively
“Copyrights”); ownership and all rights to control possession, use and/or disclosure of
Technical Information, trade secrets and other confidential information; all causes of action
relating to any of the forgoing, including the

 

[***] 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-

 

right to collect and receive past damages; all applicable rights under all international and
transnational treaties and conventions relating to protection of intellectual or industrial
property arising from any of the forgoing, and all other legal rights (whether they arise under
contract, statute or common law) for the protection of intellectual or industrial property
throughout the world, including, without limitation, all advancements, developments, improvements,
and/or modifications thereto made and/or acquired by ISS during the term of this Agreement.

1.3 “License” has the meaning given to it in Article 2.1.

1.4 “Licensed IP Rights” mean all the IP Rights in, of and/or related to (a) the Licensed
Patents; and (b) [***].

1.5 “Licensed Patents” means those Patents identified on Schedule 1.5, and all
Patents claiming the benefit of, priority to, or any subject matter found in, the identified
Patents.

1.6 “MAKO Field” shall be defined as [***], which more specifically means any use of a
system [***].

1.7 “Orthopedics” shall be defined as the medical specialty concerned with the
preservation, restoration, development, repair and correction of the musculoskeletal system and
associated structures, whereby, for avoidance of doubt, products that may be used in Orthopedics
shall include, but are not limited to, the following: (a) reconstructive including orthopedic joint
replacement, bone cements and accessories, dental reconstructive products and platelet systems; (b)
fixation products including electrical bone growth stimulation, internal and external orthopedic
fixation, craniomaxillofacial devices and bone growth substitute materials; (c) spinal products
including spinal stimulation, spinal hardware, pain therapy, and orthobiologics; and (d)
arthroscopy, diagnostics, softgoods, and bracing, provided however, that notwithstanding the
forgoing, the following medical specialties are, to the extent that they may otherwise come within
the scope of the definition given above, specifically excluded from Orthopedics: (i) Non-bone
oncology; (ii) Blood vessels and vital organs; (iii) Neurology, which is the medical specialty
concerned with the brain, spinal cord and nervous system and including neurosurgery; and (iv)
Cranial neurosurgery, ENT and Otolaryngology.

1.8 “Provider” means each and every current and/or former employee, consultant, customer,
supplier and vendor of ISS.

1.9 “Technical Information” means, collectively, all past, present and future knowledge and
work product of ISS relating to any and all of the items set forth in Schedule 1.9 hereto.

1.10 “Technical Information Delivery Deadline” has the meaning given to it in Article 2.5.

1.11 “ISS Field” means all fields other than the MAKO Field.

 

[***] 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-

 

ARTICLE 2

GRANTS OF LICENSE, LICENSE FEE & DELIVERABLES

2.1 Grants of License to MAKO. Subject to all of the terms and conditions of this
Agreement, ISS grants to MAKO a worldwide, fully transferable, perpetual, royalty-free and fully
paid-up (a) exclusive license under the Licensed IP Rights, even as to ISS, within the MAKO Field,
and (b) non-exclusive license under the Licensed IP Rights, but subject to the provisions of
Article 2.4, within the field of Orthopedics (collectively, the “License”). The License granted
hereunder (i) shall include the right to sublicense, (ii) is irrevocable and cannot be terminated
for any reason (including material breach of this Agreement), and (iii) is transferable to the
extent that such transfer is in compliance with Article 11.2.

2.2 Scope of Grant. The License includes, unless it is otherwise expressly stated in this
Agreement, the following rights:

(i) with respect to Patents, to make, have made, use, lease, sell, offer to sell, and import
machines and articles of manufacture; 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 products, which are made or imported under the authority of the licensee;

(ii) with respect to Technical Information, to make, use, sell, lease, distribute, publicly
display, and make available products incorporating or embodying the Technical Information;

(iii) with respect to copyrights, to copy, publicly distribute, publicly perform, publicly display,
prepare derivatives, and digitally transmit the work in which the copyright exists; and

(iv) to convey to any purchaser, lessee, or user of any product, which is made under authority of
MAKO or its sublicensee, rights to use and resell the product.

2.3 License Fee. In full consideration for the License granted by ISS to MAKO and the
transfer of Technical information, MAKO will pay to ISS by wire transfer a one time license fee of
One Hundred Ninety Thousand Dollars ($190,000) upon execution of this Agreement.

2.4 Right of First Refusal. Without limiting the grants contained in the License, for as
long as MAKO has rights to the Licensed IP Rights, ISS hereby grants MAKO a [***] business days
right of first refusal to enter into any arrangement or transaction (whether for the license,
transfer or otherwise) concerning the Licensed IP Rights for fields other than the MAKO Field, for
which ISS receives a bona fide offer from a third party.

2.5 Delivery of Technical Information. All Technical Information set forth in Schedule 1.9
is being delivered by ISS to MAKO contemporaneous with the execution and consummation of this
Agreement on the Effective Date, except as to that Technical Information specifically designated on
Schedule 1.9 to be delivered to MAKO by ISS within a reasonable time following the Effective Date
(the “Post-Closing Technical Information”) which shall in no event exceed two (2) weeks
following the Effective Date (the “Technical Information Delivery Deadline”). ISS hereby
covenants to use its best efforts to deliver all Post-Closing Technical Information on or before
the Technical Information Delivery Deadline.

 

[***] 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-

 

2.6 Delivery of Parts. As set forth in Schedule 2.6 hereto, MAKO is hereby
ordering certain parts and components, which shall be considered Technical Information for all
purposes under this Agreement, which ISS shall deliver on or before the Technical Information
Delivery Deadline, for which MAKO shall pay ISS the amount set forth on Schedule 2.6 within
ten (10) business days of receipt.

2.7 Delivery of Letter from IP Counsel. Consistent with Section 7.3, ISS shall deliver to
MAKO on or before the Effective Date a confirmation in writing from counsel (or counsels, as the
case may be) responsible for filing, prosecution and maintenance of the Licensed Patents, agreeing
to provide MAKO, if requested (in its sole discretion) with complete copies of the prosecution
files for the Licensed Patents on or before the Technical Information Delivery Deadline (as defined
below), at a fixed cost to MAKO of $[***].

ARTICLE 3

PUBLICITY AND CONFIDENTIALITY

3.1 Confidentiality and Public Statements. The existence of the LOI, the NDA, and/or the
Definitive Agreement, and the terms and provisions of each, shall be considered “Proprietary
Information” within the meaning of the NDA for the term of the NDA. During the period beginning as
of the Effective Date and ending on the fifth (5th) anniversary of the Effective Date, neither ISS
nor MAKO shall make any public statement or disclosure concerning the LOI, the NDA, and/or the
Definitive Agreement, and/or the terms and provisions of each except (a) with the written consent
of the other Party, (b) to a Party bound by a covenant of confidentiality, or (c) as required by
law.

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 it
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 4

PATENTING; MAINTENANCE OF PATENTS; PAYMENTS

4.1 Patent Prosecution and Maintenance.

(a) MAKO will have the sole right to prosecute, control prosecution of, and maintain the Licensed
Patents. However, it may, at is sole option, give control to ISS to prosecute any one or more the
Licensed Patents.

(b) The Party having control over prosecution of a patent application or patent included in the
Licensed Patents will consult and reasonably cooperate with the other Party in determining the best
course of action for prosecuting each patent application that is included in the Licensed Patents.
The Party in control will keep the other Party informed on each application’s or patent’s status
and will promptly provide to the other Party copies of all papers and correspondence filed or sent
in connection with the application. The Party not having control must have reasonable opportunity
to consult with the other Party prior to the

 

[***] 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-

 

Party in control undertaking any action that may materially affect the scope, validity, or
existence of the application.

(c) Should a Party decide to give up control and responsibility for prosecution of a patent
application, or decide to abandon such application with the intent not to continue examination of
the claimed invention in another application, it must give the other Party reasonable notice of its
intentions and take all reasonable steps to cooperate with the other Party and to transfer to it
control of the application without loss of rights.

(d) Should MAKO be given or take control of prosecution or maintenance of a patent application, ISS
will execute, and will take reasonable actions to obtain the cooperation of their respective
employees in executing, all papers reasonably required to enable the other Party to file, prosecute
and maintain such patent applications.

(e) Nothing in this Article 4.1 shall be deemed to require MAKO to prosecute or maintain any
Licensed Patents that MAKO (i) deems in its sole discretion no longer necessary to conduct MAKO’s
business and (ii) renounces pursuant to Article 4.6.

4.2 Maintenance Fees and Prosecution Costs.

(a) For patents and patent applications included in the Licensed IP Rights, MAKO will pay its
Ratable Share (defined in Article 4.2(c)) of all reasonable costs associated with prosecution and
issuance of each patent or patent application (“Prosecution Costs”) included within the
Licensed Patents. Examples of Prosecution Costs include reasonable legal fees and foreign
associate charges, filing fees, duplication costs, courier fees and the like. Maintenance, renewal
fees (or “annuities”) and other periodic fees and taxes that must be paid to maintain a
patent or patent application are not, for purposes of this section, Prosecution Costs. Should MAKO
take responsibility for prosecution of any of the Licensed Patents, ISS will be responsible for
reimbursing MAKO for amounts in excess of its Ratable Share of the Prosecution Costs for each such
patent or patent application.

(b) MAKO will pay its Ratable Share of costs (other than Prosecution Costs) associated with
maintaining each patent and patent application included in the Licensed Patents, including without
limitation any periodic government fees (“Maintenance Fees”) — e.g. maintenance fees,
renewal fees, “annuities” and the like — and reasonable third-party charges and costs associated
with tracking and paying the fees (collectively, “Maintenance Costs”). Should MAKO take
responsibility for payment of the Maintenance Costs of any of the Licensed Patents, ISS will,
within 15 days after receipt of written notice from MAKO, reimburse MAKO for amounts in excess of
MAKO’s Ratable Share of the Maintenance Costs.

(c) For the purposes of this Article 4.2, “Ratable Share,” with respect to any particular
patent or patent application, shall be equal to [***] where [***] is
[***] under the particular patent or patent application.

4.3 Renunciation of License. MAKO may give up its license with respect to any one or more
Licensed Patents by giving written notice to ISS of its intention to do so, which will be effective
immediately. MAKO will remain liable for any Prosecution Costs and

 

[***] 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-

 

Maintenance Costs incurred prior to giving up its license, but will have no further rights or
obligations under this Article 4 with respect to the particular patent or patent application.

ARTICLE 5

OTHER OBLIGATIONS AND RIGHTS OF MAKO

5.1 Marking. MAKO will place a patent notice in accordance with 35 U.S.C. §287 on any
products made by or on behalf of MAKO, which are covered by, or made with a process covered by, a
US patent included within the Licensed IP Rights. MAKO will also require that each such product
made under its authority (other than a product made by, on behalf of, or under authority of the
other Party) will also be marked with a notice in accordance with 35 U.S.C. §287. Otherwise, MAKO
shall not have any obligation to mark any product.

5.2 Rights as to Employees, Customers and Others.

ISS hereby:

     (a) completely and forever releases each and every Provider from any and all restrictive
covenants, obligations, limitation and duties owed by each such Provider to ISS, if any, including,
without limitation, a covenant of non-competition or covenant of non-disclosure, at all times
(whether before or after the Effective Date) for all purposes including, without limitation, (i)
assisting MAKO in conducting its due diligence with respect to ISS, (ii) providing consulting
services to MAKO, and (iii) entering into discussions with MAKO concerning possible employment or
commercial opportunities with MAKO (collectively, the “Purposes”).

     (b) completely and forever waives any rights that ISS had (prior to the Effective Date), has
(as of the Effective Date), and will have (subsequent to the Effective Date), relating to
restrictive covenants, obligations, limitation and duties, if any, owed to ISS by each and every
Provider for all Purposes.

     (c) grants MAKO an unlimited right (but not an obligation) to communicate with, solicit, hire,
or otherwise engage any and all Providers for all Purposes.

     (d) unconditionally represents and warrants to MAKO that no restrictive covenants of any kind
apply to any and all Providers as to any Purposes, and that ISS holds no rights relating thereto.

     (e) represents, warrants and agrees, that the releases, waivers, grants, covenants,
representations and warranties contained in this Article 5.2 shall in no way affect the covenants
of non-disclosure made between MAKO and ISS as set forth in the NDA.

ARTICLE 6

ENFORCEMENT

6.1 No Obligation to Enforce; Cooperation. Neither Party has an obligation to enforce
through a legal proceeding any Licensed IP Rights. MAKO will not enforce any of the Licensed IP
Rights outside the MAKO Field without the prior consent of ISS. ISS will not

 

[***] 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-

 

enforce the Licensed IP Rights inside the MAKO Field without the prior consent of MAKO. In the
event one Party desires to bring a legal action to enforce any of the Licensed IP Rights, the
Parties will act promptly and in good faith, subject to the rights of the relevant Licensor of each
of the Licensed IP Rights to be enforced, to negotiate terms and conditions under which one or both
of the Parties may bring the action.

ARTICLE 7

WARRANTIES; REPRESENTATIONS AND COVENANTS

7.1 ISS represents and warrants that it is the owner of the Licensed Patents and has the right to
grant the licenses granted to MAKO in this Agreement. ISS further represents and warrants that it
possesses the authority and necessary rights to make the grants of the License to MAKO in Article
2.

7.2 ISS further represents, warrants and covenants that ISS has not granted nor will ISS grant
during the term of this Agreement, to any other party any licenses under the Licensed Patents for
the MAKO Field.

7.3 ISS further represents and warrants that, (a) to the knowledge of ISS, the practice of the
Licensed IP Rights, within the scope of the License granted in this Agreement (including all of its
limitations), does not infringe any third party IP Rights, (b) the Licensed IP Rights are all of
the IP Rights held, owned or otherwise possessed by ISS in the area of bone motion tracking and
registration with mechanical arms; (c) except for the Post-Closing Technical Information, ISS has
delivered or is delivering contemporaneous with the consummation of this Agreement all Technical
Information set forth on Schedule 1.9; (d) all Technical Information has, is or, in the
case of Post-Closing Technical Information, shall be provided by ISS to MAKO in both hard-copy and
electronic format to the extent available to ISS; (e) ISS has requested in writing that ISS’s
appropriate legal counsel deliver, and such counsel has agreed in writing to deliver, if requested
in MAKO’s sole discretion, complete copies of the prosecution files for the Licensed Patents on or
before the Technical Information Delivery Deadline, at a fixed cost to MAKO of $[***]; (f) the
price paid by MAKO for each and every item set forth in Schedule 2.6 represents [***] .

7.4 The undersigned signatory, executing on behalf of ISS, represents and warrants that (a) the
execution and delivery of, and compliance with, this Agreement has been duly authorized by the
Board of Directors of ISS, (b) such signatory has actual necessary legal authority to bind ISS to
the terms of this Agreement and the transactions contemplated herein, and (c) this Agreement shall,
by its terms, bind ISS to the provisions and covenants set forth herein.

7.5 ISS agrees to take all further actions and execute and deliver any additional instruments on or
after the Effective Date as MAKO deems reasonably necessary to effectuate the transactions
contemplated by this Agreement, including, without limitation, delivery of all Technical
Information discovered or created by ISS or reasonably requested by MAKO after the Effective Date.

 

[***] 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-

 

ARTICLE 8

BANKRUPTCY

     ISS and MAKO each acknowledges and agrees that this Agreement (i) constitutes a license of
Intellectual Property (as such term is defined in the United States Bankruptcy Code, as amended
(the “Code”)), and (ii) is an executory contract, with significant obligations to be
performed by ISS and MAKO. The parties hereto agree that each may fully exercise all of its rights
and elections under the Code following any event of bankruptcy affecting the other, including,
without limitations, those set forth in Section 365(n) of the Code. If requested by MAKO, MAKO
shall be entitled to (a) enjoy all of the rights, benefits and use granted hereunder for the
remaining duration of the terms plus any renewal periods and (b) ISS shall immediately make
available to MAKO all product, source code, formulas, information, documents and raw materials as
may be necessary for MAKO to continue to utilize the License and sublicenses granted hereunder
following a rejection of the License and/or the sublicenses set forth in this Agreement in a ISS
bankruptcy.

ARTICLE 9

INDEMNIFICATION

9.1 Indemnification.

(a) Subject to the provisions of this Article 9, including, without limitation, Article 9.2, ISS
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 reasonable 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
a third party claim of any misrepresentation, breach of warranty or failure to perform any covenant
or agreement on the part of ISS under this Agreement. ISS further agrees to indemnify in respect
of, and hold MAKO, its officers, directors, employees and agents harmless against, all Damages,
injuries and deaths claimed by a third party resulting directly or indirectly from production,
manufacture, sale, marketing, lease, use of a product or service by ISS or its Affiliates, except
to the extent such Damages, injury or death results from the negligence, gross negligence or
intentional misconduct of MAKO, its employees, officers and directors.

(b) Subject to the provisions of this Article 9, including, without limitation, Article 9.2, MAKO
agrees to indemnify in respect of, and hold ISS and its officers, directors, employees and agents
harmless against, any and all Damages resulting from a third party claim of: (i) any
misrepresentation, breach of warranty, or (ii) failure to perform any covenant or agreement on the
part of MAKO under this Agreement, except to the extent such Damages result from the negligence,
gross negligence or intentional misconduct of ISS or its respective employees, officers and
directors. MAKO further agrees to indemnify in respect of, and hold ISS and its officers,
directors, employees and agents harmless against, all Damages, injuries and deaths claimed by a
third party resulting directly or indirectly from production, manufacture, sale, marketing, lease,
use of a product or service by MAKO or its

 

[***] 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-

 

Affiliates, except to the extent such Damages, injury or death results from the negligence, gross
negligence or intentional misconduct of ISS or its employees, officers and directors.

9.2 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 9 will be asserted and resolved follows:

(a) MAKO shall have the right to enforce all claims in connection with the use of the Licensed
Patents in the MAKO Field and ISS shall have the right to enforce all claims in connection with the
use of the Licensed Patents in the ISS Field.

(b) 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 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 (x) such Indemnified
Party has available to it defenses which are in addition to those available to the Indemnifying
Party, (y) such Indemnified Party has available to it defenses which are inconsistent with the

 

[***] 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-

 

defenses available to the Indemnifying Party or (z) 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 9, 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).

(c) 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 10

TERM AND TERMINATION

10.1 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 License Agreements terminate and all
Licensed IP Rights have expired.

10.2 Voluntary Termination By MAKO. MAKO may voluntarily terminate this Agreement upon 60
days written notice to ISS.

10.3 Survival. Articles 1, 3 and 9 will survive and continue after termination..

ARTICLE 11

MISCELLANEOUS PROVISIONS

11.1 Registration and Recordation of License Agreement. Notwithstanding the obligations of
confidentiality of the NDA and Article 3, each Party consents to registration 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. Specifically, and without limiting the foregoing, each Party
consents to recordation of this Agreement in connection with any patents or copyright registrations
included in the Licensed IP Rights. However, Exhibits to this Agreement must be removed or
redacted to show only the patents and copyright registrations and no additional information.

11.2 Assignment. MAKO may assign this Agreement upon (a) a written notice to ISS
specifying the assignee and (b) the assignee agrees to be bound by all of the terms and conditions
of this Agreement as applicable to such assignee. This Agreement will be

 

[***] 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-

 

binding on successors in interest and permitted assigns. ISS may assign this Agreement with the
prior written consent of MAKO, which shall not be unreasonably withheld only if the assignee agrees
to be bound by all of the terms and conditions of the Agreement.

11.3 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 ISS:

Integrated Surgical Systems, Inc.

1850 Research Park Drive

Suite 300

Davis, CA 95616

Telephone: (530) 304-6654

Fax: (530) 792-2739

Attention: Dr. Ramesch C. Trivedi, President & CEO

If to MAKO:

MAKO Surgical Corp.

2901 Simms Street

Hollywood, FL 33020

Phone: (954) 927-2044

Facsimile: (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.

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

11.5 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.

11.6 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.

 

[***] 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-

 

11.7 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.

11.8 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 Party of any
preceding breach by any other Party of any terms, provisions, covenants, or conditions of this
Agreement.

11.9 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

 

[***] 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-

 

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.

11.10 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.

11.11 Equitable Remedies. Each Party to this Agreement recognizes that the obligations
imposed on it in Articles 2 and 3 are special, unique, and of extraordinary character.
Accordingly, each Party to this Agreement agrees and declares that it is impossible to measure in
money the damages that will accrue by reason of its failure to perform any of its obligations under
Articles 2 and 3 and that, in the event of breach by it of any such obligation, the remedy at law
for such breach will be inadequate. Therefore, each Party to this Agreement, by execution of this
Agreement, waives the claim or defense that there is an adequate remedy at law and agrees it will
not urge in any action or proceeding to which it is a party that relates to Articles 2 and 3 the
claim or defense that such remedy at law exists. Furthermore, the parties, by execution of this
Agreement, agree that each other Party is entitled (without proving damages or posting bond) to
equitable remedies, including specific performance and injunctive relief (in addition to damages)
as a remedy for the enforcement of Articles 2 and 3.

11.12 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.
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.

11.13 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.

11.14 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.

 

[***] 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-

 

11.15 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.

[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.

-14-

 

     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.

	 	 	 	 	 
	 	INTEGRATED SURGICAL SYSTEMS, INC.

 	 
	 	By:  	/s/ R.C. Trivedi
 	 
	 	 	Name:  	R.C. Trivedi 	 
	 	 	Title:  	President & CEO
 	 
	 	 	Date:  	September 1, 2005
 	 
	 

	 	 	 	 	 
	 	MAKO SURGICAL CORP.

 	 
	 	By:  	/s/ Maurice R. Ferré
 	 
	 	 	Name:  	Maurice R. Ferré 	 
	 	 	Title:  	President & CEO
 	 
	 	 	Date:  	September 1, 2005 	 

 

[***] 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-

 

	 	 	 	 	 

EXHIBIT A

CONFIDENTIALITY AND NON DISCLOSURE AGREEMENT

[to be 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.

-16-

 

CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT

     THIS CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT (“Agreement”) is made and entered into this
22nd day of July, 2005, by and between (i) Integrated Surgical Systems, Inc., a Delaware
corporation which has a place of business at 1850 Research Park Drive, Davis, California, USA 95616
(“ISS”), and (ii) MAKO Surgical Corp., a Delaware corporation which has a place of business at 2901
Simms Street, Hollywood, Florida, USA 33020 (“MAKO”) who, intending to be legally bound, hereby
agree as follows:

RECITALS

     WHEREAS, representatives of MAKO and ISS wish to communicate for the purpose of evaluating the
prospect for future cooperation, subject to the parties’ agreement to hold the existence and
substance of such communications in confidence in accordance with this Agreement; and

     WHEREAS, each party agrees to hold the substance and existence of communications between their
representatives in confidence;

     NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree as
follows:

     1. This Agreement shall apply to all information: (i) which the disclosing party designates as
confidential, (ii) the receiving party should reasonably have known would be confidential from its
nature or from the circumstances surrounding its disclosure, and (iii) disclosed by the parties to
each other, including without limitation information related to product designs, capabilities,
specifications, program code, data bases (business forms and documents), and information regarding
regulatory and financial affairs, personnel, sales, commercial files, future technical business and
marketing plans and product strategies, the identity of actual and potential partners, customers
and suppliers, and other intellectual property (hereinafter referred to as “Proprietary
Information”). Proprietary Information may be owned by MAKO or any affiliate thereof, ISS or any
affiliate thereof, or by any third party which has disclosed such information to any of the
foregoing subject to a nondisclosure obligation. Proprietary Information shall not include
information which (a) was already known to the receiving party prior to disclosure by the other
party, (b) is in or has entered the public domain through no breach of this Agreement or other
wrongful act by the receiving party, (c) has been rightly received in good faith from a third party
who is not under any obligation of confidentiality with respect to such information, (d) has been
approved for release by written authorization of the disclosing party, or (e) the receiving party
independently developed without use of the other party’s Proprietary Information. MAKO and ISS
hereby agree that any information which falls within the definition of Proprietary Information and
which was disclosed prior to the signing of this Agreement shall be deemed to be included in and
covered by the terms and 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.

-17-

 

     2. Each of MAKO and ISS acknowledges that the disclosure of the Proprietary Information,
including but not limited to the existence of communications between the parties, or use of the
Proprietary Information for any purpose other than the purposes identified herein could result in
irreparable injury to the business and goodwill of the other party whether such disclosure occurs
during the course of such communications or after their completion or abandonment. Accordingly,
each party agrees that it will keep the Proprietary Information in strictest confidence and will
not disclose the Proprietary Information to any third party. In addition, each party shall take
all steps necessary to protect the Proprietary Information from unauthorized or inadvertent
disclosure, including without limitation all steps such party takes to protect the confidentiality
of its own proprietary information, but in no event less than ordinary degree of care.
Notwithstanding the foregoing, the receiving party may disclose and grant access to the Proprietary
Information only to those of its employees, agents and consultants, or the employees, agents and
consultants of its affiliates or subsidiaries, who have a legitimate need to know the Proprietary
Information for the purposes of this Agreement and who shall have agreed to abide by the terms and
provisions of this Agreement.

     3. Except with the written consent of the disclosing party, neither party shall:

     (a) modify the disclosing party’s Proprietary Information;

     (b) disclose any part of the disclosing party’s Proprietary Information;

     (c) make any notes, sketches, drawings or photocopies, or other written or photographic
records of the disclosing party’s Proprietary Information, except for such copies as may be
reasonably required for the purpose of this Agreement; or

     (d) use or allow the use of the disclosing party’s Proprietary Information for any purpose
other than those of this Agreement, including but not limited to developing, directly or
indirectly, any product competing with or similar in functionality to any product marketed or
developed by the disclosing party.

     4. In the event the receiving party is required by law, regulation, or court order to disclose
any of the disclosing party’s Proprietary Information, the receiving party will promptly notify the
disclosing party in writing prior to making any such disclosure in order to facilitate the
disclosing party seeking a protective order or other appropriate remedy.

     5. Upon the completion or abandonment of the communications contemplated hereby, and in any
event upon the written request of the disclosing party at any time, whether during the course of
communications or after their completion or abandonment, each party shall immediately return to the
other party all items of Proprietary Information and all copies thereof and shall destroy any notes
or personal memoranda which include or make reference to the Proprietary Information.

     6. Each party shall be deemed the owner of all Proprietary Information disclosed by it to the
other party hereunder, including without limitation all patent, copyright,

 

[***] 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-

 

trademark, trade secret and other proprietary rights and interests therein, and each party
recognizes and agrees that nothing in this Agreement shall be construed as granting any rights, by
license or otherwise, in or to any Proprietary Information. The disclosing party provides
Proprietary Information without warranty of any kind, other than a warranty that it has the right
to disclose the Proprietary Information and that the Proprietary Information is disclosed in good
faith. Neither party makes, and each party hereby expressly disclaims, any warranty regarding the
accuracy or completeness of the Proprietary Information.

     (7) Each party hereby acknowledges that unauthorized disclosure, use or disposition of any
Proprietary Information would cause irreparable harm and significant injury to the other party
which would be difficult to ascertain. Accordingly, each party agrees that the other party shall
have the right to seek an immediate injunction against any breach, threatened breach or attempted
breach of this Agreement, in addition to any other remedies that may be available at law or in
equity. Each party agrees to promptly notify the other party in writing of any unauthorized use or
disclosure of the other party’s Proprietary Information of which such party becomes aware and will
provide reasonable assistance to the other party to bring about the cessation of such unauthorized
use or disclosure.

     8. Each party further acknowledges and agrees that:

     (a) The termination of its communications with the other party shall not in any way affect the
obligations set forth herein;

     (b) This Agreement and the obligations set forth herein shall expire two (2) years after the
date of last disclosure of Proprietary Information, provided however, that to the extent the
Proprietary Information are trade secrets, these obligations will survive until such information is
no longer treated as a trade secret by the disclosing party.

     (c) This Agreement constitutes the entire agreement between the parties in connection with the
subject matter hereof and supersedes all prior and contemporaneous agreements, understandings,
negotiations and discussions between the parties, whether oral or written.

     (d) The validity, construction and performance of this Agreement shall be governed by and
construed in accordance with the substantive law of the State of Delaware, without regard to
conflicts of law provisions and any action or claims by or between any of the parties hereto
concerning the Proprietary Information, whether asserted on the basis of contract, tort (including
negligence and strict liability) or otherwise, shall be resolved exclusively under the law of such
jurisdiction. If any provision of this Agreement or the application of any such provision shall be
held by a tribunal of competent jurisdiction to be contrary to law, the remaining provisions of
this Agreement shall remain in full force and effect to the maximum extent permissible.

     (e) This Agreement is not assignable or transferable in whole or in part without written
consent of the other party. Any attempted assignment without such written consent shall be void
and shall constitute a breach 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.

-19-

 

     (f) This Agreement may be signed in original or by fax in counterparts, each of which will be
deemed to be an original, and the counterparts will together constitute one complete document.

     (g) Each of the undersigned signatories, executing on behalf of the respective party, hereby
represents and warrants that (i) the execution and delivery of, and compliance with, this Agreement
has been duly authorized by such party, (ii) such signatory has actual necessary legal authority to
bind such party to the terms of this Agreement, and (iii) this Agreement shall, by its terms, bind
such party to the covenants set forth herein.

     IN WITNESS WHEREOF, the parties hereto have executed this Confidentiality Agreement to be
effective as of the date first written above.

	 	 	 	 	 
	MAKO SURGICAL CORP. 

 	 
	By:  	/s/ Maurice Ferré
 	 
	 	Name:  	Maurice Ferré           	 
	 	Title:  	CEO/Pres.
 	 
	 	Date:  	7/25/05 	 
	 

	 	 	 	 	 
	INTEGRATED SURGICAL SYSTEMS, INC. 

 	 
	By:  	/s/ R.C. Trivedi
 	 
	 	Name:  	R. C. Trivedi                                       	 
	 	Title:  	President & CEO 	 
	 	Date:  	7/25/05 	 
	 

 

 

[***] 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-

 

Schedule 1.5

Licensed Patents

The following U.S. patents (and rights to additional and future IP rights associated
therewith):

[***]

[***]

and all Patents claiming the benefit of, priority to, or any subject matter found
in, the identified 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.

-21-

 

Schedule 1.9

Technical Information

All formulation, fabrication, design, manufacturing processes and techniques, formulas, ideas,
inventions, innovations, discoveries, concepts, know-how, engineering and research data,
preclinical and clinical data material specification, drawings, diagrams, descriptions, reports and
records, related to the following:

If requested by MAKO in its sole discretion, copies of the complete patent prosecution files for
each of the Licensed Patents, which shall be provided by IP counsel for ISS to MAKO on or before
the Technical Information Delivery Deadline.

Copy of the [***] .

Validation Protocol  —  [***]

Test Report  —  [***]

Paper Copies of all CAD files (Released Prints) referencing the manufacturing of the
[***].

          a)
[***]                               [***]

                    1.
[***]                               [***]

                    2.
[***]                               [***]

                    3.
[***]                               [***]

                    4.
[***]                               [***]

                    5.
[***]                               [***]

                    6. [***]
                               [***]

          b)
[***]                               [***]

          c)
[***]                               [***]

          d)
[***]                               [***]

          e)
[***]                               [***]

          f)
[***]                               [***]

                    1. [***]                 
              [***]

                    2. [***]                 
              [***]

                    3. [***]                 
              [***]

                    4. [***]                 
              [***]

                    5. [***]                 
              [***]

                    6. [***]                 
              [***]

                    7. [***]                 
              [***]

                    8. [***]                 
              [***]

                    9. [***]                 
              [***]

          g)
[***]                               [***]

          h)
[***]                               [***]

          i)
[***]                               [***]

          j)
[***]                               [***]

          k)
[***]                                       &
nbsp; [***]

 

[***] 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-

 

          1) [***]
                               [***]

          m)
[***]                               [***]

          n) [***]
                               [***]

          o)
[***]                                [***]

          p) [***]
                               [***]

CD containing Electronic versions of the CAD files (Prints)

          a)
[***]                               [***]

          b)
[***]                               [***]

          c)
[***]                               [***]

          d)
[***]                               [***]

          e)
[***]                               [***]

          f)
[***]                                [***]

          g)
[***]                               [***]

          h)
[***]                               [***]

          (Which includes copies of all [***])

                    1. [***]
                                        
[***]

                    2. [***]
                                        
[***]

                    3. [***]
                                        
[***]

                    4. [***]
                                        
[***]

                    5. [***]
                                        
[***]

                    6. [***]
                                        
[***]

          i)
[***]                               [***]

                    1. [***]
                                        
[***]

                    2. [***]
                                        
[***]

                    3. [***]
                                        
[***]

                    4. [***]
                                        
[***]

                    5. [***]
                                        
[***]

                    6. [***]
                                        
[***]

                    7. [***]
                                        
[***]

                    8. [***]
                                        
[***]

                    9. [***]
                                        
[***]

          j) 
[***]                               [***]

          k)
[***]                               [***]

          1)
[***]                               [***]

          m)
[***]                               [***]

          n)
[***]                               [***]

A sample copy of receiving inspection and vendor qualification (if available):

 

[***] 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-

 

          a)                     
[***]          [***]

          b)
                     [***]          [***]

          c)                     
[***]          [***]

          d)                     
[***]          [***]

          e)                     
[***]          [***]

          f)                     
[***]          [***]

          g)                     
[***]          [***]

          h)
                     [***]          [***]

          i)                     
[***]          [***]

          j)                     
[***]          [***]

          k)                     
[***]          [***]

          1)                     
[***]          [***]

     Vendor List & Qualifications

     [***]                                 &n
bsp;                            —  [***]

     [***]                                 &n
bsp;                            —  [***]

     [***]                                 &n
bsp;                            —  [***]

     [***]                                 &n
bsp;                            —  [***]

All available Documentation and CD’s containing a copy of the software code (which includes
appropriate comments and specific documentation pertaining to the [***] :

          1 —  [***]

          2 —  [***]

          3 —  [***]

          4 —  [***]

Copies of the following design control and development documents

                    a)                    
[***]          [***]

                    b)                    
[***]          [***]

                    c)                    
[***]          [***]

                    d)                    
[***]          [***]

                    e)                    
[***]          [***]

                    f)                    
[***]          [***]

                    g)                    
[***]          [***]

                    h)                    
[***]          [***]

                    i)                    
[***]          [***]

                    j)                    
[***]          [***]

                    k)                    
[***]          [***]

                    l)                    
[***]          [***]

                    m)                    
[***]          [***]

                    n)                    
[***]          [***]

                    o)                    
[***]          [***]

                    p)                    
[***]          [***]

                    q)                    
[***]          [***]

 

[***] 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-

 

                    r)                    
[***]          [***]

                    s)                    
[***]          [***]

                    t)                    
[***]          [***]

                    u)                    
[***]          [***]

                    v)                    
[***]          [***]

Regulatory memorandum authored by [***] describing in summary form the Complaint,
NPR, CAPA file, reportable incidents and/or advisories for component or subassembly related to the
Technical Information

 

[***] 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.

-25-

 

Schedule 2.6

At-Cost Parts/Components Order

     One each of the following:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Part	 	Part Number	 	Dollar Cost
	 	1.	 	 	[***]

	 	[***]
	 	$[***]
	 	2.	 	 	[***]

	 	[***]
	 	$[***]
	 	3.	 	 	[***]

	 	[***]
	 	$[***]
	 	4.	 	 	[***]

	 	[***]
	 	$[***]
	 	5.	 	 	[***]

	 	[***]
	 	$[***]
	 	6.	 	 	[***]

	 	[***]
	 	$[***]
	 	7.	 	 	[***]

	 	[***]
	 	$[***]
	 	8.	 	 	[***]

	 	[***]
	 	$[***]
	 	9.	 	 	[***]

	 	[***]
	 	$[***]
	 	10.	 	 	[***]

	 	[***]
	 	$[***]
	 	11.	 	 	[***]

	 	[***]
	 	$[***]
	 	12.	 	 	[***]

	 	[***]
	 	$[***]
	 	13.	 	 	[***]

	 	[***]
	 	$[***]
	 	14.	 	 	[***]

	 	[***]
	 	$[***]
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	 

	 	SUBTOTAL:
	 	$[***]
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	 

	 	10% Handling &

Shipping
	 	$[***]
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	 

	 	GRAND TOTAL
	 	$[***]

 

[***] 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.

-26-

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