AKAO 2018 Proxy Statement

38 price of the Company’s common stock reaches or exceeds $55.00 per share, in each case subject to continued service on each applicable vesting date. The threshold amount assumes the Company’s common stock reaches the $30.00 price threshold, and the target and maximum amounts assume the Company’s common stock reaches the $55.00 price threshold. (4) Amounts reflect the number of RSUs granted with market-based conditions that may vest. Such RSUs vest as follows: (i) 40% will vest on the 30th consecutive trading date that the closing trading price of the Company’s common stock reaches or exceeds $30.00 per share; (ii) 40% will vest on the 30th consecutive trading date that the closing trading price of the Company’s common stock reaches or exceeds $40.00 per share; and (iii) 20% will vest on the 30th consecutive trading date that the closing trading price of the Company’s common stock reaches or exceeds $55.00 per share, in each case subject to continued service on each applicable vesting date. The threshold amount assumes the Company’s common stock reaches the $30.00 price threshold, and the target and maximum amounts assume the Company’s common stock reaches the $55.00 price threshold. (5) These options vest as to 1/48 th of the shares subject to the option on each monthly anniversary of the vesting commencement date, subject to continued service on the applicable vesting date. (6) These RSUs vest as to 1/4 th of the shares subject to the option on each annual anniversary of the vesting commencement date, subject to continued service on the applicable vesting date. (7) Mr. Loeb was not eligible for an annual equity award grant as he joined the Company in the final quarter of 2016. Dr. Friedland did not receive an annual equity grant in 2017. (8) Amount represents the incremental fair value of stock and option awards modified pursuant to the transition and separation agreement entered into with Dr. Friedland as calculated in accordance with ASC Topic 718. See Note 10 of the financial statements included in our Annual Report on Form 10-K filed February 27, 2018 for the assumptions used in calculating these amounts.