MNKD 2018 Proxy Statement

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE OF CONTROL Estimated Potential Payments We have entered into a severance agreement with Mr. Thomson, and change of control agreements with each named executive officer other than Mr. Pfeffer, our former Chief Executive Officer and Chief Financial Officer. The table below sets forth the estimated current value of payments and benefits to each of the named executive officers upon termination or change of control. The amounts shown assume that the triggering event occurred on December 31, 2017 and do not include other benefits earned during the term of the named executive officer’s employment that are available to all salaried employees, such as accrued vacation and benefits paid by insurance providers under life and disability policies. Triggering Event Termination ($) Change in Control ($)(4) Michael E. Castagna . . . Lump sum cash payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,221,054 Continuing health and welfare benefits(1) . . . . . . . . . . . . . . . . . 40,882 Value of extending exercisability term of stock options(2) . . . . — — Intrinsic value of accelerated unvested stock options(3) . . . . . . — 227,984 Total — 1,489,920 Steven B. Binder . . . . . . Lump sum cash payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 787,628 Continuing health and welfare benefits(1) . . . . . . . . . . . . . . . . . 34,106 Value of extending exercisability term of stock options(2) . . . . — — Intrinsic value of accelerated unvested stock options(3) . . . . . . — 37,484 Total — 859,218 Stuart A. Tross . . . . . . . Lump sum cash payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 877,792 Continuing health and welfare benefits(1) . . . . . . . . . . . . . . . . . 42,938 Value of extending exercisability term of stock options(2) . . . . — — Intrinsic value of accelerated unvested stock options(3) . . . . . . — 24,808 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 945,538 David Thomson, Ph.D., J.D. . . . . . . . . . Lump sum cash payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 954,815 1,115,497 Continuing health and welfare benefits(1) . . . . . . . . . . . . . . . . . 49,161 49,161 Value of extending exercisability term of stock options(2) . . . . 85,057 — Intrinsic value of accelerated unvested stock options(3) . . . . . . — 33,078 Total 1,089,033 1,197,736 Joseph Kocinsky . . . . . . Lump sum cash payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 978,368 Continuing health and welfare benefits(1) . . . . . . . . . . . . . . . . . — 42,938 Value of extending exercisability term of stock options(2) . . . . — — Intrinsic value of accelerated unvested stock options(3) . . . . . . — 33,078 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,054,384 (1) Represents the estimated cost of providing or paying for continuing medical and dental coverage for 18 months. The amounts for medical and dental insurance coverage are based on rates charged to our employees for post-employment coverage provided in accordance with the Consolidated Omnibus Reconciliation Act of 1985, or COBRA. (2) Represents the fair value of the stock options held by the named executive officer that would be exercisable for a period ending on the earlier of 18 months following the triggering event or the end of the original term of the option. 62