MNKD 2017 Annual Report

Item 9B. Other Information. 2018 Bonus Goals Each of our executive officers are eligible to receive annual performance-based cash bonuses. The annual performance-based cash bonuses are intended to compensate our executive officers for achieving our annual goals at the corporate level. Each of our executive officers is assigned a target bonus opportunity expressed as a percentage of base salary, which reflects what we believe are market competitive levels and is subject to modification by our board of directors. Target bonuses are not guaranteed and are subject to achievement of our performance objectives as determined by our board of directors and its compensation committee. The following table lists our executive officers and their respective target bonuses, expressed as a percentage of their base salary: Executive Officer Target Bonus Percentage Michael E. Castagna, Pharm.D., Chief Executive Officer . . . . . . . . . . . . . . . . . 60% Steven B. Binder, Chief Financial Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50% Joseph Kocinsky, Chief Technology Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . 50% Patrick McCauley, Chief Commercial Officer . . . . . . . . . . . . . . . . . . . . . . . . . . 50% David B. Thomson, Ph.D., J.D., General Counsel and Secretary . . . . . . . . . . . 50% Stuart A. Tross, Ph.D., Chief People and Workplace Officer . . . . . . . . . . . . . . 50% Rosabel R. Alinaya, Senior Vice President, Investor Relations and Treasury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50% Courtney Barton, Vice President, Chief Compliance and Privacy Officer . . . . 50% On February 21, 2018, our board of directors adopted corporate goals for purposes of determining the eligibility of our executive officers to receive performance-based cash bonuses for 2018. The corporate goals relate to the following categories: Afrezza sales (60%), net cash burn (20%), clinical development and regulatory submissions (15%), and business development (5%). There is no minimum percentage of corporate goals that must be achieved in order to earn a bonus, and each category of performance goals can be achieved at up to 200% of the target level. 2017 Bonuses On February 21, 2018, our board of directors awarded performance-based cash bonuses to our named executive officers based on its determination, after considering the recommendation of the compensation committee of our board of directors, that corporate performance during 2017 achieved 90% of the corporate objectives previously established for such year. Accordingly, each named executive officer will be paid a cash bonus payment equal to 90% of their individual target bonus opportunity. For executive officers, the target bonus opportunity is generally 50% (60% in the case of individuals who hold the office of chief executive officer) of their base salary earned during the previous year. Controlled Equity Offering SM Sales Agreement with Cantor Fitzgerald & Co. On February 27, 2018, we entered into a Controlled Equity Offering SM Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor Fitzgerald”), as sales agent, pursuant to which we may offer and sell, from time to time, through Cantor Fitzgerald, shares of our common stock having an aggregate offering price of up to $50.0 million or such other amount as may be permitted by the Sales Agreement (the “ATM Offering”). The shares will be offered and sold pursuant to our shelf registration statement on Form S-3 (File No. 333-210792). We are not obligated to sell any shares under the Sales Agreement. Subject to the terms and conditions of the Sales Agreement, Cantor Fitzgerald will use commercially reasonable efforts, consistent with its normal 67