MNKD 2018 Proxy Statement

CERTAIN TRANSACTIONS The following is a description of transactions or series of transactions since January 1, 2017 to which we have been a party, in which the amount involved in the transaction or series of transactions exceeded $120,000, and in which any of our directors, executive officers or persons who we knew held more than five percent of any class of our capital stock, including their immediate family members, had or will have a direct or indirect material interest, other than compensation arrangements, which are described under “Management.” T RANSACTIONS WITH THE M ANN G ROUP We are the borrower under a loan arrangement with The Mann Group, which is one of our principal stockholders and of which Mr. Mann, our former Chief Executive Officer, was the sole member and manager. Outstanding principal amounts due on July 1, 2021 bear interest at a fixed rate of 5.84%, are due and payable quarterly in arrears on the first day of each calendar quarter for the preceding quarter. All or any portion of accrued and unpaid interest that becomes due and payable may be paid-in-kind and capitalized as additional borrowings at any time upon agreement of the parties. Since January 1, 2017, the largest outstanding principal amount under the Loan Arrangement was $79.7 million. As of March 31, 2018, the outstanding principal amount under the Loan Arrangement was $71.5 million. During 2017, interest of $10.7 million was repaid under the Loan Arrangement. For additional details regarding the terms of the Loan Arrangement, please refer to Note 6 to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on February 27, 2018. In May 2015, we entered into a sublease agreement with the Alfred Mann Foundation for Scientific Research (the “Mann Foundation”), a California Not For Profit Corporation. The lease is for approximately 12,500 square feet of office space in Valencia, California and expired in April 2017. We subleased this space until August 2017 when we moved our principal executive offices to Westlake Village, California. Lease payments to the Mann Foundation for the year ended December 31, 2017 were $0.2 million. T RANSACTION WITH THE K RESA F AMILY F OUNDATION On October 10, 2017 we entered into a securities purchase agreement with the Kresa Family Foundation, of which Kent Kresa, the Company’s Chairman of the Board, is the President. Pursuant to the terms of the securities purchase agreement, we sold the Kresa Family Foundation an aggregate of 166,600 shares of our common stock in a registered direct offering at a purchase price of $6.00 per share, resulting in net proceeds to us of $999,600. The offering of shares of common stock was made pursuant to our effective registration statement on Form S-3 (File No. 333-210792), previously filed with and declared effective by the Securities and Exchange Commission, and a prospectus supplement thereunder. 71