This excerpt taken from the MAKO DEF 14A filed Apr 29, 2008.
Z-KAT has proposed that its affiliate enter into an equipment financing arrangement with us, similar to those we have consummated with third party finance companies. Under the proposed arrangement, the Z-KAT affiliate would purchase from us the most current version of our Tactile Guidance System, or TGS, at a discounted price and place the TGS at a hospital customer site under a rental agreement that, unlike typical third party financing arrangements, would not require minimum payments or utilization but would provide an option for the customer to purchase the TGS. The Z-KAT affiliate would receive a per use fee under a rental agreement with the hospital customer and we would receive the benefit associated with the placement of a sold and actively utilized TGS unit. In addition to the rental agreement, the proposed terms of the transaction also provide that MAKO and the Z-KAT affiliate enter into a remarketing agreement pursuant to which we would assist in placing, installation, servicing, operating and remarketing the TGS as required.
Our management is reviewing the proposed transaction and will, if it deems appropriate, bring it before the audit committee for review and approval.