<SUBMISSION>
<ACCESSION-NUMBER>0000950148-09-000067
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>7
<PERIOD>20090331
<FILING-DATE>20090504
<DATE-OF-FILING-DATE-CHANGE>20090504
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>MANNKIND CORP
<CIK>0000899460
<ASSIGNED-SIC>2834
<IRS-NUMBER>133607736
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-50865
<FILM-NUMBER>09794665
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>28903 NORTH AVE PAINE
<CITY>VALENCIA
<STATE>CA
<ZIP>91355
<PHONE>6617755300
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>28903 NORTH AVE PAINE
<CITY>VALENCIA
<STATE>CA
<ZIP>91355
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>v52349e10vq.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<HTML>
<HEAD>
<TITLE>e10vq</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B></DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B></DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>Form&nbsp;10-Q</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 12pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B><B>For the quarterly period ended March&nbsp;31, 2009</B>
</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>or</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 12pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B><B>For
the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .</B>
</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Commission file number: 000-50865</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>MannKind Corporation</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><I>(Exact name of registrant as specified in its charter)</I></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>13-3607736</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><I>(State or other jurisdiction of <BR>
incorporation or organization)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><I>(I.R.S. Employer<BR>
Identification No.)</I></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>28903 North Avenue Paine <BR>
Valencia, California</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><br><B>91355</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><I>(Address of principal executive offices)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><I>(Zip Code)</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>(661)&nbsp;775-5300<BR>
(</B><I>Registrant&#146;s telephone number, including area code)</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant (1)&nbsp;has filed all reports required to be filed by
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12&nbsp;months (or for
such shorter period that the registrant was required to file such reports), and (2)&nbsp;has been
subject to such filing requirements for the past 90&nbsp;days. Yes <FONT face="Wingdings">&#254;</FONT> No <FONT face="Wingdings">&#111;</FONT>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule&nbsp;405 of Regulation&nbsp;S-T
during the
preceding 12&nbsp;months (or for such shorter period that the registrant was required to submit and post
such files). Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#111;</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See the definitions of &#147;large accelerated
filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule&nbsp;12b-2 of the Exchange Act.
(Check one):
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="LEFT" valign="top">Large accelerated filer <FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Accelerated filer <FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Non-accelerated filer <FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>Smaller reporting company <FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>(Do not check if a smaller reporting company)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant is a shell company (as defined in Rule&nbsp;12b-2 of the
Act). Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of April&nbsp;24, 2009, there were 102,044,682 shares of the registrant&#146;s common stock, $.01 par
value per share, outstanding.</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>MANNKIND CORPORATION<BR>
Form&nbsp;10-Q<BR>
For the Quarterly Period Ended March&nbsp;31, 2009<BR>
TABLE OF CONTENTS</B>
</DIV>

<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">PART I: FINANCIAL INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102">Item&nbsp;1. Financial Statements (unaudited)</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103">Condensed Consolidated Balance Sheets: March&nbsp;31, 2009 and December&nbsp;31, 2008</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104">Condensed Consolidated Statements of Operations: Three months ended March&nbsp;31, 2009 and 2008
and the period from inception (February&nbsp;14, 1991) to March&nbsp;31, 2009</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">Condensed Consolidated Statements of Cash Flows: Three months ended March&nbsp;31, 2009 and 2008
and the period from inception (February&nbsp;14, 1991) to March&nbsp;31, 2009</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106">Notes to Condensed Consolidated Financial Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">Item&nbsp;2. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">Item&nbsp;3. Quantitative and Qualitative Disclosures About Market Risk</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">Item&nbsp;4. Controls and Procedures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">PART II: OTHER INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">Item&nbsp;1. Legal Proceedings</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112">Item&nbsp;1A. Risk Factors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113">Item&nbsp;2. Unregistered Sales of Equity Securities and Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">Item&nbsp;3. Defaults Upon Senior Securities</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115">Item&nbsp;4. Submission of Matters to a Vote of Security Holders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#116">Item&nbsp;5. Other Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#117">Item&nbsp;6. Exhibits</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#118">SIGNATURES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="v52349exv2w1.htm">EX-2.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="v52349exv2w2.htm">EX-2.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="v52349exv31w1.htm">EX-31.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="v52349exv31w2.htm">EX-31.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="v52349exv32.htm">EX-32</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PART 1: FINANCIAL INFORMATION</B></DIV>

<DIV align="left">
<A name="102"></A>
</DIV>
<DIV align="center" style="font-size: 10pt"><B>ITEM 1. FINANCIAL STATEMENTS</B></DIV>

<DIV align="center" style="font-size: 10pt"><B>MANNKIND CORPORATION AND SUBSIDIARIES</B></DIV>

<DIV align="center" style="font-size: 10pt"><B>(A Development Stage Company)</B></DIV>

<DIV align="left">
<A name="103"></A>
</DIV>
<DIV align="center" style="font-size: 10pt"><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></DIV>

<DIV align="center" style="font-size: 10pt"><B>(Unaudited)</B></DIV>

<DIV align="center" style="font-size: 10pt"><B>(In thousands except share data)</B></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>March 31, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>December 31, 2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:60px; text-indent:-15px"><B>ASSETS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,648</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Marketable securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,844</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">State research and development credit exchange &#151; current</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepaid expenses and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,983</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,975</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property and equipment &#151; net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">226,436</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">State research and development credit exchange receivable &#151; net of current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">548</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">275,711</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">282,459</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px"><B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,630</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accrued expenses and other current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,937</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,842</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,472</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Senior convertible notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,378</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,253</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Note payable to related party</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">242,537</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">195,725</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments and contingencies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Undesignated preferred stock, $0.01 par value
&#151; 10,000,000 shares authorized; no shares issued or outstanding at March&nbsp;31, 2009 and December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common stock, $0.01 par value &#151;
150,000,000 shares authorized; 102,040,297 and 102,008,096 shares issued and outstanding at March&nbsp;31, 2009 and December&nbsp;31, 2008, respectively</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,020</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additional paid&#151;in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,475,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,469,497</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accumulated other comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">354</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">295</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deficit accumulated during the development stage</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,443,490</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,384,078</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,734</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">275,711</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">282,459</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">See notes to condensed consolidated financial statements.</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>MANNKIND CORPORATION AND SUBSIDIARIES<BR>
(A Development Stage Company)</B>
</DIV>

<DIV align="left">
<A name="104"></A>
</DIV>
<DIV align="center" style="font-size: 10pt"><B>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>(Unaudited)</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>(In thousands, except per share data)</B></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Cumulative</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Period from</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>February 14,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>1991 (Date of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Inception) to</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,988</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating expenses:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Research and development</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,889</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,445</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,040,371</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">General and administrative</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260,759</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">In&#151;process research and development costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,726</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Goodwill impairment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151,428</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,085</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,472,284</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loss from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(57,806</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(74,065</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,469,296</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income (expense)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,872</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense on note payable to related party</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(593</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,116</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense on senior convertible notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,115</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(337</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,072</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,921</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,892</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loss before provision for income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(59,412</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(71,421</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,443,464</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(59,412</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(71,421</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,443,490</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deemed dividend related to beneficial conversion feature of convertible
preferred stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22,260</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accretion on redeemable preferred stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(952</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss applicable to common stockholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(59,412</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(71,421</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,466,702</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss per share applicable to common stockholders &#151; basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.58</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.70</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares used to compute basic and diluted net loss per share applicable to
common stockholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102,030</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">See notes to condensed consolidated financial statements.</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>MANNKIND CORPORATION AND SUBSIDIARIES<BR>
(A Development Stage Company)</B>
</DIV>

<DIV align="left">
<A name="105"></A>
</DIV>
<DIV align="center" style="font-size: 10pt"><B>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>(Unaudited)</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>(In thousands)</B></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Cumulative</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Period from</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>February 14,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>1991 (Date of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Inception) to</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CASH FLOWS FROM OPERATING ACTIVITIES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(59,412</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(71,421</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,443,490</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustments to reconcile net loss to net cash used in operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,515</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,929</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Stock&#151;based compensation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,459</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Stock expense for shares issued pursuant to research agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,018</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left: 45px; text-indent:-15px">Loss on sale, abandonment/disposal or impairment of property and
equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,706</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left: 45px; text-indent:-15px">Accrued interest on investments, net of amortization of discounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(191</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left: 45px; text-indent:-15px">In&#151;process research and development</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,726</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left: 45px; text-indent:-15px">Discount on stockholder notes below market rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">241</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left: 45px; text-indent:-15px">Non&#151;cash compensation expense of officer resulting from stockholder
contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left: 45px; text-indent:-15px">Accrued interest expense on notes payable to stockholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,538</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left: 45px; text-indent:-15px">Non&#151;cash interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left: 45px; text-indent:-15px">Accrued interest on notes receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(747</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left: 45px; text-indent:-15px">Goodwill impairment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151,428</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left: 45px; text-indent:-15px">Loss on available&#151;for&#151;sale securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left: 45px; text-indent:-15px">Changes in assets and liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">State research and development credit exchange receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,325</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">456</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,675</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Prepaid expenses and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,592</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,307</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(548</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,194</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,876</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,166</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Accrued expenses and other current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,803</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,285</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,951</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:75px; text-indent:-15px">Net cash used in operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(60,669</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(74,257</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,080,496</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CASH FLOWS FROM INVESTING ACTIVITIES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase of marketable securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(792,601</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales of marketable securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">790,565</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase of property and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,622</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24,980</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(297,479</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from sale of property and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposit for purchase related to Pfizer agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net cash (used in) provided by investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24,910</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(309,231</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CASH FLOWS FROM FINANCING ACTIVITIES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Issuance of common stock and warrants</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,140,548</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Collection of Series&nbsp;C convertible preferred stock subscriptions receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Issuance of Series&nbsp;B convertible preferred stock for cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash received for common stock to be issued</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,900</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Repurchase of common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,028</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Put shares sold to majority stockholder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">623</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings under lines of credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,220</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from notes receivables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,742</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings on notes payable from principal stockholder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Principal payments on notes payable to principal stockholder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(70,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Borrowings on notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,460</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Principal payments on notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,667</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from senior convertible notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,267</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payment of employment taxes related to vested restricted stock units</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(43</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,224</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net cash (used in) provided by financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,957</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,416,841</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Cumulative</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Period from</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>February 14,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>1991 (Date of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Inception) to</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NET INCREASE (DECREASE)&nbsp;IN CASH AND CASH EQUIVALENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(534</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(99,206</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">368,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CASH AND CASH EQUIVALENTS, END OF PERIOD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">269,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SUPPLEMENTAL CASH FLOWS DISCLOSURES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash paid for income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest paid in cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,368</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accretion on redeemable convertible preferred stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(952</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Issuance of common stock upon conversion of notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,331</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Increase in additional paid&#151;in capital resulting from merger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">171,154</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Issuance of common stock for notes receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,758</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Issuance of put option by stockholder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,949</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Put option redemption by stockholder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,921</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Issuance of Series&nbsp;C convertible preferred stock subscriptions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Issuance of Series&nbsp;A redeemable convertible preferred stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,296</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Conversion of Series&nbsp;A redeemable convertible preferred stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,248</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-cash construction in progress and property and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,269</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,878</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the Company&#146;s initial public offering, all shares of Series&nbsp;B and Series&nbsp;C
convertible preferred stock, in the amount of $15.0&nbsp;million and $50.0&nbsp;million, respectively,
automatically converted into common stock in August&nbsp;2004.</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">See notes to condensed consolidated financial statements.</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>MANNKIND CORPORATION AND SUBSIDIARIES<BR>
(A Development Stage Company)</B>
</DIV>

<DIV align="left">
<A name="106"></A>
</DIV>
<DIV align="center" style="font-size: 10pt"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>(Unaudited)</B></DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. Description of business and basis of presentation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying unaudited condensed consolidated financial statements of MannKind Corporation and
its subsidiaries (the &#147;Company&#148;), have been prepared in accordance with generally accepted
accounting principles in the United States of America (&#147;GAAP&#148;) for interim financial information
and with the instructions to Form 10-Q and Article&nbsp;10 of Regulation&nbsp;S-X of the Securities and
Exchange Commission (the &#147;SEC&#148;). Accordingly, they do not include all of the information and
footnotes required by GAAP for complete financial statements. These statements should be read in
conjunction with the financial statements and notes thereto included in the Company&#146;s latest
audited annual financial statements. The audited statements for the year ended December&nbsp;31, 2008
are included in the Company&#146;s annual report on Form 10-K for the fiscal year ended December&nbsp;31,
2008 filed with the SEC on February&nbsp;27, 2009 (the &#147;Annual Report&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the opinion of management, all adjustments, consisting only of normal, recurring adjustments,
considered necessary for a fair presentation of the results of these interim periods have been
included. The results of operations for the three months ended March&nbsp;31, 2009 may not be indicative
of the results that may be expected for the full year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported
amounts of expenses during the reporting period. Actual results could differ from those estimates
or assumptions. The more significant estimates reflected in these accompanying financial statements
involve accrued expenses, the valuation of stock-based compensation and the determination of the
provision for income taxes and corresponding deferred tax assets and liabilities and any valuation
allowance recorded against net deferred tax assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Business </I></B>&#151; MannKind Corporation (the &#147;Company&#148;) is a biopharmaceutical company focused on the
discovery, development and commercialization of therapeutic products for diseases such as diabetes
and cancer. The Company&#146;s lead product candidate, AFRESA<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>, is an ultra rapid-acting insulin. In
March&nbsp;2009, the Company submitted a new drug application (&#147;NDA&#148;) to the U.S. Food and Drug
Administration (&#147;FDA&#148;) requesting approval of AFRESA for the treatment of adults with type 1 or
type 2 diabetes for the control of hyperglycemia. AFRESA consists of the Company&#146;s proprietary
Technosphere particles onto which insulin molecules are loaded. These loaded particles are then
aerosolized and inhaled deep into the lung using the Company&#146;s AFRESA inhaler.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Basis of Presentation &#151; </I></B>The Company is considered to be in the development stage as its primary
activities since incorporation have been establishing its facilities, recruiting personnel,
conducting research and development, business development, business and financial planning, and
raising capital. Since its inception through March&nbsp;31, 2009 the Company has reported accumulated
net losses of $1.5&nbsp;billion, which include a goodwill impairment charge of $151.4&nbsp;million, and
cumulative negative cash flow from operations of $1.1&nbsp;billion. It is costly to develop therapeutic
products and conduct clinical trials for these products. At March&nbsp;31, 2009 the Company&#146;s capital
resources consisted of cash, cash equivalents, and marketable securities of $30.2&nbsp;million
(including a $2.0&nbsp;million certificate of deposit held as collateral for foreign exchange hedging
instruments) and $260.0&nbsp;million of available borrowings under the loan agreement with an entity
controlled by the Company&#146;s principal shareholder (see Note 10). Based upon the Company&#146;s current
expectations, management believes the Company&#146;s existing capital resources will enable it to
continue planned operations through the first quarter of 2010. However, the Company cannot provide
assurances that its plans will not change or that changed circumstances will not result in the
depletion of its capital resources more rapidly than it currently anticipates. Accordingly, the
Company expects that it will need to raise additional capital, either through the sale of equity
and/or debt securities, a strategic business collaboration with a pharmaceutical company or the
establishment of other funding facilities, in order to continue the development and
commercialization of AFRESA and other product candidates and to support its other ongoing
activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Recently Issued Accounting Standards &#151;  </I></B>On April&nbsp;9, 2009, the Financial Accounting Standards
Board (&#147;FASB&#148;) issued three Staff Positions (&#147;FSPs&#148;): FSP No.&nbsp;FAS 157-4 <I>&#147;Determining Fair Value
When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and
Identifying Transactions That Are Not Orderly&#148; </I>(&#147;FSP No.&nbsp;FAS 157-4&#148;); FSP No.&nbsp;FAS 115-2 and FAS
124-2 <I>&#147;Recognition and Presentation of Other-Than-Temporary Impairments&#148; </I>(&#147;FSP No.&nbsp;FAS 115-2 and
FAS 124-2&#148;); and FSP No.&nbsp;FAS 107-1 and APB 28-1 <I>&#147;Interim Disclosures About Fair Value of Financial
Instruments&#148; </I>(&#147;FSP No.&nbsp;FAS 107-1 and APB
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">28-1&#148;). FSP No.&nbsp;FAS 157-4 provides application guidance on measuring fair value when the volume
and level of activity has significantly decreased and identifying transactions that are not
orderly. FSP No.&nbsp;FAS 115-2 and FAS 124-2 provides a new other-than-temporary impairment model for
debt securities only which shifts the focus from an entity&#146;s intent to hold until recovery to its
intent to sell. FSP No.&nbsp;FAS 107-1 and APB 28-4 expands the fair value disclosures required for all
financial instruments within the scope of FASB Statement No.&nbsp;107 &#147;<I>Disclosures About Fair Value of
Financial Instruments&#148; </I>to interim periods. All three FSPs are effective for interim and annual
periods ending after June&nbsp;15, 2009, with early adoption permitted for periods ending after March
15, 2009. The Company does not expect the adoption of these FSPs to have a material impact on its
results of operations, financial position or cash flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of January&nbsp;1, 2009, the Company adopted EITF Issue No.&nbsp;07-1, &#147;<I>Accounting for Collaborative
Arrangements&#148; </I>(&#147;EITF No.&nbsp;07-1&#148;)<I>, </I>which discusses how parties to a collaborative arrangement (which
does not establish a legal entity within such arrangement) should account for various activities.
EITF No.&nbsp;07-1 indicated that costs incurred and revenues generated from transactions with third
parties (i.e. parties outside of the collaborative arrangement) should be reported by the
collaborators on the respective line items in their income statements pursuant to EITF Issue No.
99-19, &#147;<I>Reporting Revenue Gross as a Principal Versus Net as an Agent&#148;. </I>Additionally, EITF No.
07-1 provided that income statement characterization of payments between the participants in a
collaborative arrangement should be based upon existing authoritative pronouncements; analogy to
such pronouncements if not within their scope; or a reasonable, rational, and consistently applied
accounting policy election. The adoption of EITF No.&nbsp;07-1 did not have an impact on the Company&#146;s
results of operations, financial position or cash flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of January&nbsp;1, 2009, the Company adopted FASB Statement No.&nbsp;141(R), &#147;<I>Business Combinations</I>&#148; and
FASB Statement No.&nbsp;160, &#147;<I>Accounting and Reporting of Noncontrolling Interests in Consolidated
Financial Statements &#151; an amendment of ARB No.&nbsp;51</I>&#148; (&#147;FASB Statement No.&nbsp;160&#148;). These standards
significantly changed the accounting and reporting for business combinations transactions and
noncontrolling (minority)&nbsp;interests in consolidated financial statements, including capitalizing at
the acquisition date the fair value of acquired in process research and development, and
remeasuring and writing down these assets, if necessary, in subsequent periods during their
development. These new standards will be applied prospectively for business combinations that occur
on or after January&nbsp;1, 2009, except that presentation and disclosure requirements of FASB Statement
No.&nbsp;160 regarding noncontrolling interests shall be applied retrospectively. Adoption of these
statements did not have an impact on the Company&#146;s results of operations, financial position or
cash flows, but will have a significant effect on how acquisition transactions, subsequent to
January&nbsp;1, 2009, are reflected in the financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of January&nbsp;1, 2009, the Company adopted FSP No.&nbsp;APB 14-1 (&#147;FSP No.&nbsp;APB 14-1&#148;), &#147;<I>Accounting for
Convertible Debt Instruments that may be Settled in Cash Upon Conversion (Including Partial Cash
Settlement)&#148;. </I>FSP No.&nbsp;APB 14-1 established that the liability and equity components of
convertible debt instruments within the scope of FSP No.&nbsp;APB 14-1 shall be separately accounted for
in a manner that will reflect the entity&#146;s nonconvertible debt borrowing rate when interest cost is
recognized in subsequent periods. The carrying amount of the liability component of the
convertible debt instrument will be determined by measuring the fair value of a similar liability
that does not have an associated equity component. The carrying value of the equity component will
be determined by deducting the fair value of the liability component from the initial proceeds
ascribed to the convertible debt instrument as a whole. Related transaction costs shall be
allocated to the liability and equity components in proportion to the allocation of proceeds and
accounted for as debt issuance costs and equity issuance costs, respectively. The excess of the
principal amount of the liability component over its carrying amount shall be amortized to interest
cost using the interest method. The adoption of FSP No.&nbsp;APB 14-1 did not have a material effect on
the Company&#146;s results of operations, financial position or cash flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of January&nbsp;1, 2009, the Company adopted EITF Issue No.&nbsp;07-5 &#147;<I>Determining whether an Instrument
(or Embedded Feature) is indexed to an Entity&#146;s Own Stock</I>&#148; (&#147;EITF No.&nbsp;07-5&#148;). Paragraph 11(a) of
SFAS 133 &#147;Accounting for Derivatives and Hedging Activities&#148; specified that a contract that would
otherwise meet the definition of a derivative but is both (a)&nbsp;indexed to the Company&#146;s own stock
and (b)&nbsp;classified in stockholders&#146; equity in the statement of financial position would not be
considered a derivative financial instrument. EITF No.&nbsp;07-5 provided a new two-step model to be
applied in determining whether a financial instrument or an embedded feature is indexed to an
issuer&#146;s own stock and thus able to qualify for the SFAS 133 paragraph 11(a) scope exception. The
adoption of EITF No.&nbsp;07-5 did not have a material effect on the Company&#146;s results of operations,
financial position or cash flows.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. Investment in securities</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following is a summary of the available-for-sale securities classified as current assets (in
thousands).</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>Gross</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>Unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>Unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fair</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Cost Basis</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000"><B>Gain</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Basis</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000"><B>Gain</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Available-for-sale securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">354</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,844</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s available-for-sale securities at March&nbsp;31, 2009 consist principally of a $2.0&nbsp;million
certificate of deposit with a maturity greater than 90&nbsp;days, held as collateral for foreign
exchange hedging instruments, and a common stock investment, which is stated at fair value based on
quoted prices in an active market (Level 1 in the fair value hierarchy). The Company&#146;s
available-for-sale securities at December&nbsp;31, 2008 consist principally of US agency securities,
which are stated at fair value based on quoted prices for similar securities in active markets
(Level 2 in the fair value hierarchy). The Company&#146;s policy is to maintain a highly liquid
short-term investment portfolio. Proceeds from the sales and maturities of available-for-sale
securities amounted to approximately $17.8&nbsp;million for the three months ended March&nbsp;31, 2009. Gross
realized gains and losses for available-for-sale securities were insignificant and recorded as
other income (expense). Gross unrealized gains and losses are included in other comprehensive
income (loss).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. Accrued expenses and other current liabilities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Accrued expenses and other current liabilities are comprised of the following (in thousands):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Salary and related expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,639</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,452</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Research and clinical trial costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,438</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">204</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction in progress</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,327</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,421</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued expenses and other current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,937</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,842</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. Accounting for stock-based compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Total stock-based compensation expense was $5.8&nbsp;million and $5.4&nbsp;million for the three months ended
March&nbsp;31, 2009 and 2008, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of March&nbsp;31, 2009, there was $9.9&nbsp;million and $28.9&nbsp;million of unrecognized compensation cost
related to options and restricted stock units, respectively, which is expected to be recognized
over the remaining weighted average vesting period of 2.0&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. Net loss per common share</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Basic net loss per share excludes dilution for potentially dilutive securities and is computed by
dividing loss applicable to common stockholders by the weighted average number of common shares
outstanding during the period. Diluted net loss per share reflects the potential dilution that
could occur if securities or other contracts to issue common stock were exercised or converted into
common stock. Potentially dilutive securities are excluded from the computation of diluted net loss
per share for all of the periods presented in the accompanying statements of operations because the
reported net loss in each of these periods results in their inclusion being antidilutive.
Antidilutive securities, which consist of stock options, restricted stock units, warrants, and
shares that could be issued upon conversion of the senior convertible notes, that are not included
in the diluted net loss per share calculation consisted of an aggregate of 19,276,593 shares and
17,883,897 shares as of March&nbsp;31, 2009 and 2008, respectively.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. State research and development credit exchange receivable</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The State of Connecticut provides certain companies with the opportunity to exchange certain
research and development income tax credit carryforwards for cash in exchange for forgoing the
carryforward of the research and development income tax credits. The </DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">program provides for an
exchange of research and development income tax credits for cash equal to 65% of the value of
corporation
tax credit available for exchange. Estimated amounts receivable under the program are recorded as a
reduction of research and development expenses. At March&nbsp;31, 2009, the estimated amount receivable
under the program was $1.7&nbsp;million.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. Property and equipment &#151; net</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Property and equipment &#151; net consist of the following (dollar amounts in thousands):</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Estimated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Useful</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Life</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Years)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,273</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buildings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">39-40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,786</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Building improvements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">5-40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,346</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Machinery and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">3-15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,633</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Furniture, fixtures and office equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">5-10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,622</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Computer equipment and software</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,818</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leasehold improvements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction in progress</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,619</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,165</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deposits on equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">277,827</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less accumulated depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(55,781</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(51,391</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property and equipment &#151; net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">228,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">226,436</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Leasehold improvements are amortized over the shorter of the term of the lease or the service lives
of the improvements. Depreciation and amortization expense related to property and equipment for
the three months ended March&nbsp;31, 2009 and 2008, and the cumulative period from February&nbsp;14, 1991
(date of inception) to March&nbsp;31, 2009 was $4.4&nbsp;million, $1.8&nbsp;million and $63.8&nbsp;million,
respectively. Capitalized interest during the three months ended March&nbsp;31, 2009 and 2008 was $0.1
and $0.9&nbsp;million, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. Warrants</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the sale of common stock in the private placement which closed in August&nbsp;2005,
the Company concurrently issued warrants to purchase up to 3,426,000 shares of common stock at an
exercise price of $12.228 per share. These warrants became exercisable in February&nbsp;2006 and expire
in August&nbsp;2010. During the three months ended March&nbsp;31, 2009, no warrants were exercised. As of
March&nbsp;31, 2009, warrants to purchase 2,882,873 shares of common stock remained outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. Commitments and contingencies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Supply Commitments &#151; </I></B>As of March&nbsp;31, 2009, the Company had a binding annual commitment for insulin
purchases with Organon N.V. (&#147;Organon&#148;) aggregating approximately $98.0&nbsp;million over the period
from 2009 through 2012. If the Company terminates the supply agreement following failure to obtain
or maintain regulatory approval of AFRESA or either party terminates the agreement following the
parties&#146; inability to agree to changes to product specifications mandated after regulatory
approval, the Company will be required to pay Organon a specified termination fee if Organon is
unable to sell certain quantities of insulin to other parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Guarantees and Indemnifications &#151; </I></B>In the ordinary course of its business, the Company makes
certain indemnities, commitments and guarantees under which it may be required to make payments in
relation to certain transactions. The Company, as permitted under Delaware law and in accordance
with its Bylaws, indemnifies its officers and directors for certain events or occurrences, subject
to certain limits, while the officer or director is or was serving at the Company&#146;s request in such
capacity. The term of the indemnification period is for the officer&#146;s or director&#146;s lifetime. The
maximum amount of potential future indemnification is unlimited; however, the Company has a
director and officer insurance policy that may enable it to recover a portion of any future amounts
paid. The Company believes the fair value of these indemnification agreements is minimal. The
Company has not recorded any liability for these indemnities in the accompanying condensed
consolidated balance sheets. However, the Company accrues for losses for any known contingent
liability, including those that may arise from indemnification provisions, when future payment is
probable and the amount can be reasonably estimated. No such losses have been recorded to date.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Litigation </I></B>&#151; The Company is involved in various legal proceedings and other matters. In
accordance with SFAS No.&nbsp;5, <I>Accounting for Contingencies</I>, the Company would record a provision for
a liability when it is both probable that a liability has been incurred and the amount of the loss
can be reasonably estimated.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. Related-party loan arrangement</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In October&nbsp;2007, the Company entered into a $350.0&nbsp;million loan arrangement with its principal
stockholder. Under the arrangement, the Company can borrow up to a total of $350.0&nbsp;million before
January&nbsp;1, 2010. On February&nbsp;26, 2009, the promissory note underlying the loan arrangement was
revised as a result of the principal stockholder being licensed as a finance lender under the
California Finance Lenders Law. Accordingly, the lender was revised to The Mann Group LLC, an
entity controlled by the Company&#146;s principal stockholder. This new licensing also eliminated the
need for draw restrictions under the previous loan arrangement and the Company is now able to
borrow up to a total of $350.0&nbsp;million from time to time with appropriate notice to the lender.
Interest will accrue on each outstanding advance at a fixed rate equal to the one-year LIBOR rate
as reported by the <I>Wall Street Journal </I>on the date of such advance plus 3% per annum and will be
payable quarterly in arrears. Principal repayment is due on December&nbsp;31, 2011. At any time after
January&nbsp;1, 2010, the lender can require the Company to prepay up to $200.0&nbsp;million in advances that
have been outstanding for at least 12&nbsp;months. If the lender exercises this right, the Company will
have until the earlier of 180&nbsp;days after the lender provides written notice or December&nbsp;31, 2011 to
prepay such advances. In the event of a default, all unpaid principal and interest either becomes
immediately due and payable or may be accelerated at the lender&#146;s option, and the interest rate
will increase to the one-year LIBOR rate calculated on the date of the initial advance or in effect
on the date of default, whichever is greater, plus 5% per annum. Any borrowings under the loan
arrangement will be unsecured. The loan arrangement contains no financial covenants. There are no
warrants associated with the loan arrangement, nor are advances convertible into the Company&#146;s
common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The amount outstanding under the arrangement was $90.0&nbsp;million and $30.0&nbsp;million at March&nbsp;31, 2009
and December&nbsp;31, 2008, respectively. As of March&nbsp;31, 2009, the Company had accrued interest of
$0.6&nbsp;million related to the amount outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11. Senior convertible notes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;12, 2006, the Company completed an offering of $115.0&nbsp;million aggregate principal
amount of 3.75% Senior Convertible Notes due 2013 (the &#147;Notes&#148;), including $15.0&nbsp;million aggregate
principal amount of the Notes sold pursuant to the underwriters&#146; over-allotment option that was
exercised in full. The Notes are governed by the terms of an indenture dated as of November&nbsp;1, 2006
and a First Supplemental Indenture, dated as of December&nbsp;12, 2006. The Notes bear interest at the
rate of 3.75% per year on the principal amount of the Notes, payable in cash semi-annually in
arrears on June&nbsp;15 and December&nbsp;15 of each year, beginning June&nbsp;15, 2007. As of March&nbsp;31, 2009 and
December&nbsp;31, 2008, the Company had accrued interest of $1.3&nbsp;million and $0.2&nbsp;million, respectively,
related to the Notes. The Notes are general, unsecured, senior obligations of the Company and
effectively rank junior in right of payment to all of the Company&#146;s secured debt, to the extent of
the value of the assets securing such debt, and to the debt and all other liabilities of the
Company&#146;s subsidiaries. The maturity date of the Notes is December&nbsp;15, 2013 and payment is due in
full on that date for unconverted securities. Holders may convert, at any time prior to the close
of business on the business day immediately preceding the stated maturity date, any outstanding
Notes into shares of the Company&#146;s common stock at an initial conversion rate of 44.5002 shares per
$1,000 principal amount of Notes, which is equal to a conversion price of approximately $22.47 per
share, subject to adjustment. Except in certain circumstances, if the Company undergoes a
fundamental change: (1)&nbsp;the Company will pay a make-whole premium on the Notes converted in
connection with a fundamental change by increasing the conversion rate on such Notes, which amount,
if any, will be based on the Company&#146;s common stock price and the effective date of the fundamental
change, and (2)&nbsp;each holder of the Notes will have the option to require the Company to repurchase
all or any portion of such holder&#146;s Notes at a repurchase price of 100% of the principal amount of
the Notes to be repurchased plus accrued and unpaid interest, if any. The Company incurred
approximately $3.7&nbsp;million in issuance costs which are recorded as an offset to the Notes in the
accompanying condensed consolidated balance sheets. These costs are being amortized to interest
expense using the effective interest method over the term of the Notes. Amortized interest expense
during the three months ended March&nbsp;31, 2009 and 2008 was $0.1&nbsp;million and $0.1&nbsp;million,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12. Income taxes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As discussed in Note 14 to the financial statements in the Company&#146;s Annual Report, management of
the Company has concluded, in accordance with applicable accounting standards, that it is more
likely than not that the Company may not realize the benefit of its deferred tax assets.
Accordingly, net deferred tax assets have been fully reserved.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In July&nbsp;2006, the FASB issued FASB Interpretation No.&nbsp;48, <I>Accounting for Uncertainty in Income
Taxes&#151;an interpretation of FASB Statement No.&nbsp;109 </I>(&#147;FIN 48&#148;), which clarifies the accounting and
disclosure for uncertainty in tax positions, as defined. FIN 48 seeks to reduce the diversity in
practice associated with certain aspects of the recognition and measurement related to accounting
for income taxes. The Company is subject to the provisions of FIN 48 as of January&nbsp;1, 2007. The
Company believes that its income tax filing positions and deductions will be sustained on audit and
does not anticipate any adjustments that will result in a material change to its financial
position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to
FIN 48. The cumulative effect, if any, of applying FIN 48 is to be reported as an adjustment to the
opening balance of retained earnings in the year of adoption. The Company did not record a
cumulative effect adjustment related to the adoption of FIN 48. Tax years since 1992 remain subject
to examination by the major tax jurisdictions in which the Company is subject to tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>13. Pfizer agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On March&nbsp;6, 2009, the Company, and its wholly owned subsidiary, MannKind Deutschland GmbH, a German
limited liability company (the &#147;Purchaser&#148;), entered into a LIP Asset or Business Sale and Purchase
Agreement (the &#147;Purchase Agreement&#148;) with Pfizer Inc., a Delaware corporation (&#147;Pfizer&#148;), and its
wholly owned subsidiary, Pfizer Manufacturing Frankfurt GmbH, a German limited liability company
(the &#147;Seller&#148;). Simultaneously, the Company entered into an Insulin Sale and Purchase Agreement
(the &#147;Insulin Agreement&#148;) with Pfizer and the Seller. Pursuant to the terms and conditions of the
Purchase Agreement and the Insulin Agreement, the Company and the Purchaser will purchase from the
Seller substantially all assets related to the production of bulk insulin at the Seller&#146;s facility
at Industriepark Hoechst, Frankfurt am Main, Germany, including the relevant real property rights,
the equipment at the facility, the inventory of the Seller (including a certain quantity of bulk
insulin), rights to acquire additional bulk insulin inventory and related technology rights
(collectively, the &#147;Purchase&#148;). The aggregate purchase price for the Purchase is $33.0&nbsp;million,
plus an additional $3.0&nbsp;million per month after April&nbsp;3, 2009 until the earlier of the
closing of the Purchase or October&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the terms of the Purchase Agreement, the Purchaser will acquire substantially all of the
assets of the Seller other than those to be sold to the Company under the Insulin Agreement. Upon
the closing of the Purchase Agreement, the Purchaser, subject to further works council consultation
and employee co-determination rights, will retain approximately 80 of the 148 current employees and
will operate the facility at a production level commensurate with the Purchaser&#146;s present needs for
recombinant human insulin. In this event, the Company has agreed to guarantee up to <FONT face="'Times New Roman',times,serif">&#128;</FONT>19&nbsp;million in
potential severance benefits to employees. However, the sale of the real property rights is subject
to a right of first refusal in favor of Sanofi-Aventis Deutschland GmbH (&#147;Sanofi-Aventis&#148;). If
Sanofi-Aventis exercises its right of first refusal within 60&nbsp;days of notification, the
transactions contemplated by the Purchase Agreement will be consummated by the Seller with
Sanofi-Aventis instead of the Purchaser. Sanofi-Aventis was formally notified of the transaction on
April&nbsp;8, 2009, after Infraserv GmbH &#038; Co. Hoechst KG, the operator of the Industriepark Hoeschst,
consented to the transfer of the real property rights. Under the terms of the Insulin Agreement,
the Company will purchase a portion of the Seller&#146;s inventory of bulk insulin as well as the
Seller&#146;s and Pfizer&#146;s rights under a license to manufacture insulin for pulmonary delivery. The
Seller will also grant the Company an option to purchase the remainder of the Seller&#146;s bulk insulin
inventory, in whole or in part, at a specified price, to the extent that the Seller has not
otherwise disposed of or used its retained bulk insulin. The closing of the Insulin Agreement is
subject only to the closing of the Purchase Agreement, either with the Purchaser or with
Sanofi-Aventis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At the Purchaser&#146;s option, up to $30.0&nbsp;million (or more if the aggregate purchase price is
increased as described above) worth of the Company&#146;s common stock may be issued to the Seller at
closing and applied toward the full purchase price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Included in other assets as of March&nbsp;31, 2009 is a deposit of $10.0&nbsp;million made by the Company to
the Seller to be held pursuant to the terms of the Purchase Agreement until the transactions
contemplated by such agreement are consummated. In the event Sanofi-Aventis exercises its right of
first refusal and the Company and the Purchaser do not consummate the transaction contemplated by
the Purchase Agreement, the deposit will be promptly returned to the Company by the Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14. Subsequent event</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;2, 2009, the Company implemented cost savings initiatives which included a reduction in
force affecting 113 employees. The Company expects to record approximately $1.9&nbsp;million in expense
in the second quarter of 2009 for employee severance and other related termination benefits.
Severance payments are expected to be paid in full by the end of the second quarter.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 2. MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>The following discussion contains forward-looking statements, which involve risks and
uncertainties. Our actual results could differ materially from those anticipated in these
forward-looking statements as a result of various factors, including those set forth below in Part
II, Item&nbsp;1A Risk Factors and elsewhere in this quarterly report on </I><I>Form 10-Q</I><I> (this &#147;Quarterly
Report&#148;). These interim condensed financial statements and this Management&#146;s Discussion and
Analysis of Financial Condition and Results of Operations should be read in conjunction with the
financial statements and notes for the year ended December&nbsp;31, 2008 and the related Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations, both of which are
contained in the Annual Report. Readers are cautioned not to place undue reliance on
forward-looking statements. The forward-looking statements speak only as of the date on which they
are made, and we undertake no obligation to update such statements to reflect events that occur or
circumstances that exist after the date on which they are made.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>OVERVIEW</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are a biopharmaceutical company focused on the discovery, development and commercialization of
therapeutic products for diseases such as diabetes and cancer. Our lead product candidate, AFRESA,
is an ultra rapid-acting insulin. In March&nbsp;2009, the Company submitted an NDA to the FDA requesting
approval of AFRESA for the treatment of adults with type 1 or type 2 diabetes for the control of
hyperglycemia. We believe that the performance characteristics, unique kinetics, convenience and
ease of use of AFRESA may have the potential to change the way diabetes is treated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are a development stage enterprise and have incurred significant losses since our inception in
1991. As of March&nbsp;31, 2009, we have incurred a cumulative net loss of $1.5&nbsp;billion. To date, we
have not generated any product revenues and have funded our operations primarily through the sale
of equity securities and convertible debt securities. As discussed below in &#147;Liquidity and Capital
Resources&#148;, if we are unable to obtain additional funding, there will be substantial doubt about
our ability to continue as a going concern.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We do not expect to record sales of any product prior to regulatory approval and commercialization
of AFRESA. We currently do not have the required approvals to market any of our product candidates,
and we may not receive such approvals. We may not be profitable even if we succeed in
commercializing any of our product candidates. We expect to make substantial expenditures and to
incur additional operating losses for at least the next several years as we:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>continue the clinical development of AFRESA for the treatment of diabetes;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>seek regulatory approval to sell AFRESA in the United States and other markets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expand our manufacturing operations for AFRESA to meet our currently anticipated
commercial production needs;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expand our other research, discovery and development programs;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expand our proprietary Technosphere platform technology and develop additional
applications for the pulmonary delivery of other drugs; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>enter into sales and marketing collaborations with other companies, if available on
commercially reasonable terms, or develop these capabilities ourselves.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our business is subject to significant risks, including but not limited to the risks inherent
in our ongoing clinical trials and the regulatory approval process, the results of our research and
development efforts, competition from other products and technologies and uncertainties associated
with obtaining and enforcing patent rights.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Research and Development Expenses</B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our research and development expenses consist mainly of costs associated with the clinical
trials of our product candidates that have not yet received regulatory approval for marketing and
for which no alternative future use has been identified. This includes the salaries, benefits and
stock-based compensation of research and development personnel, raw materials, such as insulin
purchases, laboratory supplies and materials, facility costs, costs for consultants and related
contract research, licensing fees, and depreciation of laboratory equipment. We track research and
development costs by the type of cost incurred. We partially offset research and development
expenses with the recognition of estimated amounts receivable from the State of Connecticut
pursuant to a program under which we can exchange qualified research and development income tax
credits for cash. Included in research and development expenses for the quarter ended March&nbsp;31,
2009 were purchases of insulin totaling $2.0&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our research and development staff conducts our internal research and development activities,
which include research, product development, clinical development, manufacturing and related
activities. This staff is located in our facilities in Valencia, California; Paramus, New Jersey;
and Danbury, Connecticut. We expense our research and development costs as we incur them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Clinical development timelines, likelihood of success and total costs vary widely. We are
focused primarily on advancing AFRESA through regulatory filings. Based on the results of
preclinical studies, we plan to develop additional applications of our Technosphere technology.
Additionally, we anticipate that we will continue to determine which research and development
projects to pursue, and how much funding to direct to each project, on an ongoing basis, in
response to the scientific and clinical success of each product candidate. We cannot be certain
when any revenues from the commercialization of our products will commence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At this time, due to the risks inherent in the clinical trial process and given the early
stage of development of our product candidates other than AFRESA, we are unable to estimate with
any certainty the costs that we will incur in the continued development of our product candidates
for commercialization. The costs required to complete the development of AFRESA will be largely
dependent on the cost and efficiency of our manufacturing process and discussions with the FDA on
its requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="font-variant: SMALL-CAPS"><B>General and Administrative Expenses</B></FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our general and administrative expenses consist primarily of salaries, benefits and
stock-based compensation for administrative, finance, business development, human resources, legal
and information systems support personnel. In addition, general and administrative expenses include
professional service fees and business insurance costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>CRITICAL ACCOUNTING POLICIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There have been no material changes to our critical accounting policies as described in Item&nbsp;7 of
our Annual Report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RESULTS OF OPERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Three months ended March&nbsp;31, 2009 and 2008</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Revenues</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the three months ended March&nbsp;31, 2009, we did not recognize any revenue. During the three
months ended March&nbsp;31, 2008, we recognized $20,000 in revenue under a license agreement. We do not
anticipate sales of any product prior to regulatory approval and commercialization of AFRESA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Research and Development Expenses</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table provides a comparison of the research and development expense categories for
the three months ended March&nbsp;31, 2009 and 2008 (dollars in thousands):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">%</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>$ Change</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Change</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Clinical</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(10,533</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manufacturing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,345</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Research</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,279</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Research and development tax credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(175</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(485</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">310</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(64</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock-based compensation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Research and development expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,889</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,445</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(15,556</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(27</TD>
    <TD nowrap>)%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The decrease in research and development expenses for the three months ended March&nbsp;31, 2009, as
compared to the three months ended March&nbsp;31, 2008, was primarily due to decreased costs associated
with the clinical development of AFRESA as we completed our pivotal AFRESA trials during 2008, as
well as decreases in manufacturing costs associated with raw material purchases. Future research
and development expenses depend on whether Sanofi-Aventis exercises its right of first refusal to
purchase certain assets that are the subject of the Purchase Agreement. If Sanofi-Aventis
exercises its right of first refusal and the transactions contemplated under the Purchase Agreement
are not consummated, we anticipate that our research and development expenses will decrease in 2009
since we have completed our pivotal AFRESA clinical trials and the expansion of our commercial
manufacturing facilities during 2008, as well as due to decreased salary-related costs associated
with the reduction in force in April&nbsp;2009. If Sanofi-Aventis does not exercise its right of first
refusal and the transactions are consummated by MannKind Deutschland and us, we expect an immediate
increase in research and development costs related to the operation of the new facility. (See Note
13 &#151;  Pfizer agreement, of the Notes to the accompanying financial statements.)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General
and Administrative Expenses</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table provides a comparison of the general and administrative expense categories for
the three months ended March&nbsp;31, 2009 and 2008 (dollars in thousands):</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>March 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>%</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>$ Change</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Change</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Salaries, employee related and other general expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,575</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(835</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock-based compensation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,342</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">General and administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(723</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">General and administrative expenses for the three months ended March&nbsp;31, 2009 decreased as compared
to the same period in the prior year primarily due to the purchase of patents from Emisphere
Technologies, Inc. during the first quarter of 2008, offset by increased professional fees related
to the pending transaction with Pfizer (See Note 13 &#151; Pfizer agreement, of the Notes to the
accompanying financial statements). We expect general and administrative expenses to increase
slightly in 2009 as a result of increased professional fees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Interest Income and Expense</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Interest income for the three months ended March&nbsp;31, 2009 decreased $2.9&nbsp;million as compared to the
same period in the prior year primarily due to lower market interest rates and a lower investment
balance. Interest expense for the three months ended March&nbsp;31, 2009 increased $1.4&nbsp;million as
compared to the same period in the prior year primarily due to a decrease in capitalized interest
related to the Danbury, Connecticut plant expansion and the interest expense related to amounts
outstanding under the borrowing arrangement with an entity controlled by our principal stockholder
(see Note 10 &#151; Related-party loan arrangement, of the Notes to the accompanying financial
statements).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>LIQUIDITY AND CAPITAL RESOURCES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have funded our operations primarily through the sale of equity securities and convertible debt
securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In October&nbsp;2007, we entered into a loan arrangement with our principal stockholder allowing us to
borrow up to a total of $350.0&nbsp;million before January&nbsp;1, 2010. On February&nbsp;26, 2009, as a result of
our principal stockholder being licensed as a finance lender under the California Finance Lenders
Law, the promissory note underlying the loan arrangement was revised to reflect the lender as The
Mann Group LLC, an entity controlled by our principal stockholder. This new license also eliminated
the need for draw restrictions under the previous loan arrangement and we are now able to borrow up
to a total of $350.0&nbsp;million from time to time with appropriate notice to the lender. Interest will
accrue on each outstanding advance at a fixed rate equal to the one-year LIBOR rate as reported by
the <I>Wall Street Journal </I>on the date of such advance plus 3% per annum and will be payable quarterly
in arrears. Principal repayment is due on December&nbsp;31, 2011. At any time after January&nbsp;1, 2010, the
lender can require us to prepay up to $200.0&nbsp;million in
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>
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<P><HR noshade><P>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">advances
that have been outstanding for at least 12&nbsp;months. If the lender exercises this right, we will have
until the earlier of 180&nbsp;days after the lender provides written notice or December&nbsp;31, 2011 to
prepay such advances. In the event of a default, all unpaid principal and interest either becomes
immediately due and payable or may be accelerated at the lender&#146;s option, and the interest rate
will increase to the one-year LIBOR rate calculated on the date of the initial advance or in effect
on the date of default, whichever is greater, plus 5% per annum. Any borrowings under the loan
arrangement will be unsecured. The loan arrangement contains no financial covenants. There are no
warrants associated with the loan arrangement, nor are advances convertible into our common stock.
As of March&nbsp;31, 2009, the amount borrowed and outstanding under the arrangement was $90.0&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the three months ended March&nbsp;31, 2009, we used $60.7&nbsp;million of cash for our operations
compared to using $74.3&nbsp;million for our operations in the three months ended March&nbsp;31, 2008. We had
a net loss of $59.4&nbsp;million for the three months ended March&nbsp;31, 2009, of which $10.4&nbsp;million
consisted of non-cash charges such as depreciation and amortization, and stock-based compensation.
We expect our negative operating cash flow to continue at least until we obtain regulatory approval
and achieve commercialization of AFRESA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We generated $178,000 of cash from investing activities during the three months ended March&nbsp;31,
2009, compared to spending $24.9&nbsp;million of cash for investing activities for the three months
ended March&nbsp;31, 2008. For the three months ended March&nbsp;31, 2009, pursuant to the terms of the
Purchase Agreement, we made a deposit of $10.0&nbsp;million to Pfizer to be held pending consummation of
the transactions contemplated by the Purchase Agreement (see Note 13- Pfizer agreement, of the
Notes to the accompanying financial statements). For the three months ended March&nbsp;31, 2009 and
2008, $5.6&nbsp;million and $25.0&nbsp;million, respectively, were used to purchase machinery and equipment
to expand our manufacturing operations and our quality systems that support clinical trials for
AFRESA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our financing activities generated $60.0&nbsp;million of cash for the three months ended March&nbsp;31, 2009
compared to using $39,000 for the same period in 2008. For 2009, cash from financing activities was
primarily from the related party borrowings received, as well as the exercise of stock awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of March&nbsp;31, 2009, we had $27.1&nbsp;million in cash and cash equivalents. Although we believe our
existing cash resources, including the $260.0&nbsp;million remaining available under our loan
arrangement with an entity controlled by our principal stockholder, will be sufficient to fund our
anticipated cash requirements through the first quarter of 2010, we will require significant
additional financing in the future to fund our operations and if we are unable to do so, there will
be substantial doubt about our ability to continue as a going concern. Accordingly, we expect that
we will need to raise additional capital, either through the sale of equity and/or debt securities,
a strategic business collaboration with a pharmaceutical or biotechnology company or the
establishment of other funding facilities, in order to continue the development and
commercialization of AFRESA and other product candidates and to support our other ongoing
activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We intend to use our capital resources to continue the development and commercialization of AFRESA,
if approved, and to develop additional applications for our proprietary Technosphere platform
technology. In addition, portions of our capital resources will be devoted to expanding our other
product development programs for the treatment of different types of cancers. We are expending a
portion of our capital to scale up our manufacturing capabilities in our Danbury facilities. We
also intend to use our capital resources for general corporate purposes, which may include
in-licensing or acquiring additional technologies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have been holding extensive discussions with a number of pharmaceutical companies concerning a
potential strategic business collaboration for AFRESA. To date, we have not reached agreement with
any of these companies on a collaboration. Although we are continuing to engage in such
discussions, we cannot predict when, if ever, we could conclude such an agreement with a partner.
There can be no assurance that any such collaboration will be available to us on a timely basis or
on acceptable terms, if at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If we enter into a strategic business collaboration with a pharmaceutical or biotechnology company,
we would expect, as part of the transaction, to receive additional capital. In addition, we expect
to pursue the sale of equity and/or debt securities, or the establishment of other funding
facilities. Issuances of debt or additional equity could impact the rights of our existing
stockholders, dilute the ownership percentages of our existing stockholders and may impose
restrictions on our operations. These restrictions could include limitations on additional
borrowing, specific restrictions on the use of our assets as well as prohibitions on our ability to
create liens, pay dividends, redeem our stock or make investments. We also may seek to raise
additional capital by pursuing opportunities for the licensing, sale or divestiture of certain
intellectual property and other assets, including our Technosphere technology platform. There can
be no assurance, however, that any strategic collaboration, sale of securities or sale or license
of assets will be available to us on a timely basis or on acceptable terms, if at all. If we are
unable to raise additional capital, we may be required to enter into agreements
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">with third parties to develop or commercialize products or technologies that we otherwise would
have sought to develop independently, and any such agreements may not be on terms as commercially
favorable to us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">However, we cannot provide assurances that our plans will not change or that changed circumstances
will not result in the depletion of our capital resources more rapidly than we currently
anticipate. If planned operating results are not achieved or we are not successful in raising
additional equity financing or entering a business collaboration, we may be required to reduce
expenses through the delay, reduction or curtailment of our projects, including AFRESA development
activities, or further reduction of costs for facilities and administration, and there will be
substantial doubt about our ability to continue as a going concern.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Off-Balance Sheet Arrangements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of March&nbsp;31, 2009 we did not have any off-balance sheet arrangements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Contractual Obligations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The only material change to our contractual obligations disclosed in Item&nbsp;7 of our Annual Report
was the additional borrowing of $60.0&nbsp;million from an entity controlled by our principal
stockholder during the three months ended March&nbsp;31, 2009. (See Note 10 &#151; Related-party loan
arrangement of the Notes to the accompanying financial statements.)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Recent Accounting Pronouncements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;9, 2009, the Financial Accounting Standards Board (&#147;FASB&#148;) issued three Staff Positions
(&#147;FSPs&#148;): FSP No.&nbsp;FAS 157-4 <I>&#147;Determining Fair Value When the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly&#148;</I>
(&#147;FSP No.&nbsp;FAS 157-4&#148;); FSP No.&nbsp;FAS 115-2 and FAS 124-2 <I>&#147;Recognition and Presentation of
Other-Than-Temporary Impairments&#148; </I>(&#147;FSP No.&nbsp;FAS
115-2 and FAS 124-2&#148;); and FSP No.&nbsp;FAS 107-1 and
APB 28-1 <I>&#147;Interim Disclosures About Fair Value of Financial Instruments&#148; </I>(&#147;FSP No.&nbsp;FAS 107-1 and
APB 28-1&#148;). FSP No.&nbsp;FAS 157-4 provides application guidance on measuring fair value when the
volume and level of activity has significantly decreased and identifying transactions that are not
orderly. FSP No.&nbsp;FAS 115-2 and FAS 124-2 provides a new other-than-temporary impairment model for
debt securities only which shifts the focus from an entity&#146;s intent to hold until recovery to its
intent to sell. FSP No.&nbsp;FAS 107-1 and APB 28-4 expands the fair value disclosures required for all
financial instruments within the scope of FASB Statement No.&nbsp;107 &#147;<I>Disclosures About Fair Value of
Financial Instruments&#148; </I>to interim periods. All three FSPs are effective for interim and annual
periods ending after June&nbsp;15, 2009, with early adoption permitted for periods ending after March
15, 2009. We do not expect the adoption of these FSPs to have a material impact on our results of
operations, financial position or cash flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of January&nbsp;1, 2009, we adopted EITF Issue No.&nbsp;07-1, &#147;<I>Accounting for Collaborative Arrangements&#148;</I>
(EITF No.&nbsp;07-1)<I>, </I>which discusses how parties to a collaborative arrangement (which does not
establish a legal entity within such arrangement) should account for various activities. EITF 07-1
indicated that costs incurred and revenues generated from transactions with third parties (i.e.
parties outside of the collaborative arrangement) should be reported by the collaborators on the
respective line items in their income statements pursuant to EITF Issue No.&nbsp;99-19, &#147;<I>Reporting
Revenue Gross as a Principal Versus Net as an Agent&#148;, </I>Additionally, EITF 07-1 provided that income
statement characterization of payments between the participants in a collaborative arrangement
should be based upon existing authoritative pronouncements; analogy to such pronouncements if not
within their scope; or a reasonable, rational, and consistently applied accounting policy election.
The adoption of EITF No.&nbsp;07-1 did not have an impact on our results of operations, financial
position or cash flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of January&nbsp;1, 2009, we adopted FASB Statement No.&nbsp;141(R), &#147;<I>Business Combinations</I>&#148; and FASB
Statement No.&nbsp;160, &#147;<I>Accounting and Reporting of Noncontrolling Interests in Consolidated Financial
Statements &#151; an amendment of ARB No.&nbsp;51</I>&#148; (&#147;FASB Statement No.&nbsp;160&#148;). These standards
significantly changed the accounting and reporting for business combination transactions and
noncontrolling (minority)&nbsp;interests in consolidated financial statements, including capitalizing at
the acquisition date the fair value of acquired in process research and development, and
remeasuring and writing down these assets, if necessary, in subsequent periods during their
development. These new standards will be applied prospectively for business combinations that occur
on or after January&nbsp;1, 2009, except that presentation and disclosure requirements of FASB Statement
No.&nbsp;160 regarding noncontrolling interests shall be applied retrospectively. Adoption of these
statements did not have an impact on our results of operations, financial position or cash flows,
but will have a significant effect on how acquisition transactions, subsequent to January&nbsp;1, 2009,
are reflected in the financial statements.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of January&nbsp;1, 2009, we adopted FSP No.&nbsp;APB 14-1 (&#147;FSP No.&nbsp;APB 14-1&#148;), &#147;<I>Accounting for
Convertible Debt Instruments that may be Settled in Cash Upon Conversion (Including Partial Cash
Settlement)</I>&#148;. FSP No.&nbsp;APB 14-1 established that the liability and equity components of convertible
debt instruments within the scope of FSP No.&nbsp;APB 14-1 shall be separately accounted for in a manner
that will reflect the entity&#146;s nonconvertible debt borrowing rate when interest cost is recognized
in subsequent periods. The carrying amount of the liability component of the convertible debt
instrument will be determined by measuring the fair value of a similar liability that does not have
an associated equity component. The carrying value of the equity component will be determined by
deducting the fair value of the liability component from the initial proceeds ascribed to the
convertible debt instrument as a whole. Related transaction costs shall be allocated to the
liability and equity components in proportion to the allocation of proceeds and accounted for as
debt issuance costs and equity issuance costs, respectively. The excess of the principal amount of
the liability component over its carrying amount shall be amortized to interest cost using the
interest method. The adoption of FSP No.&nbsp;APB 14-1 did not have a material effect on our results of
operations, financial position or cash flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of January&nbsp;1, 2009, we adopted EITF Issue No.&nbsp;07-5 &#147;<I>Determining whether an Instrument (or
Embedded Feature) is indexed to an Entity&#146;s Own Stock</I>&#148; (&#147;EITF No.&nbsp;07-5&#148;). Paragraph 11(a) of SFAS
133 &#147;Accounting for Derivatives and Hedging Activities&#148; specified that a contract that would
otherwise meet the definition of a derivative but is both (a)&nbsp;indexed to the Company&#146;s own stock
and (b)&nbsp;classified in stockholders&#146; equity in the statement of financial position would not be
considered a derivative financial instrument. EITF No.&nbsp;07-5 provided a new two-step model to be
applied in determining whether a financial instrument or an embedded feature is indexed to an
issuer&#146;s own stock and thus able to qualify for the SFAS 133 paragraph 11(a) scope exception. The
adoption of EITF No.&nbsp;07-5 did not have a material effect on our results of operations, financial
position or cash flows.
</DIV>
<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are exposed to market risk related to changes in interest rates impacting our short-term
investment portfolio as well as the interest rate on our credit facility with an entity controlled
by our principal stockholder. The interest rate on our credit facility with an entity controlled by
our principal stockholder is a fixed rate equal to the one-year LIBOR rate as reported by the <I>Wall
Street Journal </I>on the date of such advance plus 3% per annum. Our current policy requires us to
maintain a highly liquid short-term investment portfolio consisting mainly of U.S. money market
funds and investment-grade corporate, government and municipal debt. None of these investments is
entered into for trading purposes. Our cash is deposited in and invested through highly rated
financial institutions in North America. Our short-term investments at March&nbsp;31, 2009 are comprised
mainly of a certificate of deposit and a common stock investment. We have entered into a foreign
exchange derivative hedging transaction as part of our risk management program. We continue to
utilize our $350.0&nbsp;million credit facility to fund operations. The interest rate is fixed at the
time of the draw. If interest rates were to increase from levels at March&nbsp;31, 2009 we could
experience a higher level of interest expense than assumed in our current operating plan.
</DIV>
<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 4. CONTROLS AND PROCEDURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We maintain disclosure controls and procedures that are designed to ensure that information
required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as
amended, or the Securities Exchange Act, is recorded, processed, summarized and reported within the
time periods specified in the SEC&#146;s rules and forms and that such information is accumulated and
communicated to our management, including our chief executive officer and chief financial officer,
as appropriate, to allow for timely decisions regarding required disclosure. In designing and
evaluating the disclosure controls and procedures, management recognizes that any controls and
procedures, no matter how well designed and operated, can provide only reasonable assurance of
achieving the desired control objectives, and management is required to apply its judgment in
evaluating the cost-benefit relationship of possible controls and procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our chief executive officer and chief financial officer performed an evaluation under the
supervision and with the participation of our management, of our disclosure controls and procedures
(as defined in Rules&nbsp;13a-15(e) and 15d-15(e) of the Securities Exchange Act) as of March&nbsp;31, 2009.
Based on that evaluation, our chief executive officer and chief financial officer concluded that
our disclosure controls and procedures were effective at the reasonable assurance level.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There has been no change in our internal control over financial reporting during the fiscal quarter
ended March&nbsp;31, 2009 that has materially affected, or is reasonably likely to materially affect,
our internal control over financial reporting.
</DIV>
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PART II. OTHER INFORMATION</B>
</DIV>

<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 1. LEGAL PROCEEDINGS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None.
</DIV>
<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1A. </B><B><I>Risk Factors</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>You should consider carefully the following information about the risks described below, together
with the other information contained in this quarterly report on </I><I>Form 10-Q</I><I> before you decide to buy
or maintain an investment in our common stock. We believe the risks described below are the risks
that are material to us as of the date of this quarterly report. Additional risks and uncertainties
that we are unaware of may also become important factors that affect us. The risk factors set forth
below with an asterisk (*) next to the title contain changes to the description of the risk factors
previously disclosed in Item&nbsp;1A to our annual report on </I><I>Form 10-K</I><I>. If any of the following risks
actually occur, our business, financial condition, results of operations and future growth
prospects would likely be materially and adversely affected. In these circumstances, the market
price of our common stock could decline, and you may lose all or part of the money you paid to buy
our common stock.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RISKS RELATED TO OUR BUSINESS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We have a history of operating losses, we expect to continue to incur losses and we may never
become profitable.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are a development stage company with no commercial products. All of our product candidates are
still being developed, and all but AFRESA are still in the early stages of development. Our product
candidates will require significant additional development, clinical trials, regulatory clearances
and additional investment before they can be commercialized. We anticipate that AFRESA will not be
commercially available for at least one year, if at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have never been profitable and, as of March&nbsp;31, 2009, we had an accumulated deficit of $1.5
billion. The accumulated deficit has resulted principally from costs incurred in our research and
development programs, the write-off of goodwill and general operating expenses. We expect to make
substantial expenditures and to incur increasing operating losses in the future in order to further
develop and commercialize our product candidates, including costs and expenses to complete clinical
trials, seek regulatory approvals and market our product candidates, including AFRESA. This
accumulated deficit may increase significantly as we expand development and clinical trial efforts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our losses have had, and are expected to continue to have, an adverse impact on our working
capital, total assets and stockholders&#146; equity. Our ability to achieve and sustain profitability
depends upon obtaining regulatory approvals for and successfully commercializing AFRESA, either
alone or with third parties. We do not currently have the required approvals to market any of our
product candidates, and we may not receive them. We may not be profitable even if we succeed in
commercializing any of our product candidates. As a result, we cannot be sure when we will become
profitable, if at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>If we fail to raise additional capital, our financial condition and business would suffer.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It is costly to develop therapeutic product candidates and conduct clinical trials for these
product candidates. Although we are currently focusing on AFRESA as our lead product candidate, we
have begun to conduct clinical trials for additional product candidates. Although development of
AFRESA has been completed, our existing capital resources will not be sufficient to support the
expense of fully commercializing AFRESA or development of any of our other product candidates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based upon our current expectations, we believe that our existing capital resources, including the
loan arrangement with an entity controlled by our principal stockholder, will enable us to continue
planned operations through the first quarter of 2010. However, we cannot assure you that our plans
will not change or that changed circumstances will not result in the depletion of our capital
resources more rapidly than we currently anticipate. Accordingly, we plan to raise additional
capital, either through the sale of equity and/or debt securities, a strategic business
collaboration or the establishment of other funding facilities, in order to continue the
development and commercialization of AFRESA and other product candidates and to support our other
ongoing activities. However, due to current
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">turbulence in the U.S. and global financial markets, it may be difficult for us to raise additional
capital through the sale of equity and/or debt securities. The amount of additional funds we need
will depend on a number of factors, including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the rate of progress and costs of our clinical trials and research and development
activities, including costs of procuring clinical materials and expanding our own
manufacturing facilities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our success in establishing strategic business collaborations and the timing and amount
of any payments we might receive from any collaboration we are able to establish;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>actions taken by the FDA and other regulatory authorities affecting our products and
competitive products;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our degree of success in commercializing AFRESA;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the emergence of competing technologies and products and other adverse market
developments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing and amount of payments we might receive from potential licensees;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the costs of preparing, filing, prosecuting, maintaining and enforcing patent claims and
other intellectual property rights or defending against claims of infringement by others;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the costs of discontinuing projects and technologies or decommissioning existing
facilities, if we undertake those activities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the costs of performing additional clinical trials to demonstrate safety and efficacy if
our current trials do not deliver results sufficient for FDA approval and commercialization.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have raised capital in the past primarily through the sale of equity securities and most
currently through the sale of equity and debt securities. We may in the future pursue the sale of
additional equity and/or debt securities, or the establishment of other funding facilities.
Issuances of additional debt or equity securities or the conversion of any of our currently
outstanding convertible debt securities into shares of our common stock could impact your rights as
a holder of our common stock and may dilute your ownership percentage. Moreover, the establishment
of other funding facilities may impose restrictions on our operations. These restrictions could
include limitations on additional borrowing and specific restrictions on the use of our assets, as
well as prohibitions on our ability to create liens, pay dividends, redeem our stock or make
investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also may seek to raise additional capital by pursuing opportunities for the licensing or sale of
certain intellectual property and other assets, including our Technosphere technology platform. We
cannot offer assurances, however, that any strategic collaborations, sales of securities or sales
or licenses of assets will be available to us on a timely basis or on acceptable terms, if at all.
We may be required to enter into relationships with third parties to develop or commercialize
products or technologies that we otherwise would have sought to develop independently, and any such
relationships may not be on terms as commercially favorable to us as might otherwise be the case.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event that sufficient additional funds are not obtained through strategic collaboration
opportunities, sales of securities, licensing arrangements and/or asset sales on a timely basis, we
may be required to reduce expenses through the delay, reduction or curtailment of our projects,
including AFRESA commercialization, or further reduction of costs for facilities and
administration. Moreover, if we do not obtain such additional funds, there will be substantial
doubt about our ability to continue as a going concern.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The current financial crisis and deteriorating economic conditions may have an adverse impact on
the loan facility with an entity controlled by our principal stockholder, which we currently cannot
predict.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As widely reported, economic conditions in the United States and globally have been deteriorating.
Financial markets in the United States, Europe and Asia have been experiencing a period of
unprecedented turmoil and upheaval characterized by extreme volatility and declines in security
prices, severely diminished liquidity and credit availability, inability to access capital markets,
the bankruptcy, failure, collapse or sale of various financial institutions and an unprecedented
level of intervention from the United States federal government and other governments. We cannot
predict the impact of these events on the loan facility with an entity controlled by our principal
stockholder. If we are unable to draw on this financial resource, our business and financial
condition will be adversely affected.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We depend heavily on the successful development and commercialization of our lead product
candidate, AFRESA, which has completed clinical development, and our other product candidates,
which are in early clinical or preclinical development.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To date, we have not completed the development of any product candidates through to
commercialization. In March&nbsp;2009, we submitted an NDA to the FDA requesting approval of AFRESA for
the treatment of adults with type 1 or type 2 diabetes for the control of hyperglycemia and our
other product candidates are generally in early clinical or preclinical development. We anticipate
that in the near term, our ability to generate revenues will depend solely on the successful
development and commercialization of AFRESA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have expended significant time, money and effort in the development of our lead product
candidate, AFRESA, which has not yet received regulatory approval and which may never be
commercialized. We must receive the necessary approvals from the FDA and similar foreign regulatory
agencies before AFRESA can be marketed and sold in the United States or elsewhere. Even if we were
to receive regulatory approval, we ultimately may be unable to gain market acceptance of AFRESA for
a variety of reasons, including the treatment and dosage regimen, potential adverse effects, the
availability of alternative treatments and cost effectiveness. If we fail to commercialize AFRESA,
our business, financial condition and results of operations will be materially and adversely
affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are seeking to develop and expand our portfolio of product candidates through our internal
research programs and through licensing or otherwise acquiring the rights to therapeutics in the
areas of cancer and other indications. All of these product candidates will require additional
research and development and significant preclinical, clinical and other testing prior to seeking
regulatory approval to market them. Accordingly, these product candidates will not be commercially
available for a number of years, if at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A significant portion of the research that we are conducting involves new and unproven compounds
and technologies, including AFRESA, Technosphere platform technology and immunotherapy product
candidates. Research programs to identify new product candidates require substantial technical,
financial and human resources. Even if our research programs identify candidates that initially
show promise, these candidates may fail to progress to clinical development for any number of
reasons, including discovery upon further research that these candidates have adverse effects or
other characteristics that indicate they are unlikely to be effective. In addition, the clinical
results we obtain at one stage are not necessarily indicative of future testing results. If we fail
to successfully complete the development and commercialization of AFRESA or develop or expand our
other product candidates, or are significantly delayed in doing so, our business and results of
operations will be harmed and the value of our stock could decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If we do not achieve our projected development and commercialization goals in the timeframes we
announce and expect, our business would be harmed and the market price of our common stock could
decline.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For planning purposes, we estimate the timing of the accomplishment of various scientific,
clinical, regulatory and other product development goals, which we sometimes refer to as
milestones. These milestones may include the commencement or completion of scientific studies and
clinical trials and the submission of regulatory filings. From time to time, we publicly announce
the expected timing of some of these milestones. All of these milestones are based on a variety of
assumptions. The actual timing of the achievement of these milestones can vary dramatically from
our estimates, in many cases for reasons beyond our control, depending on numerous factors,
including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the rate of progress, costs and results of our clinical trial and research and
development activities, which will be impacted by the level of proficiency and experience of
our clinical staff;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to identify and enroll patients who meet clinical trial eligibility criteria;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to access sufficient, reliable and affordable supplies of components used in
the manufacture of our product candidates, including insulin and other materials for AFRESA;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the costs of expanding and maintaining manufacturing operations, as necessary;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the extent of scheduling conflicts with participating clinicians and clinical
institutions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the receipt of approvals by our competitors and by us from the FDA and other regulatory
agencies; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other actions by regulators.</TD>
</TR>

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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition, if we do not obtain sufficient additional funds through sales of securities, strategic
collaborations or the license or sale of certain of our assets on a timely basis, we may be
required to reduce expenses by delaying, reducing or curtailing our development of AFRESA or other
product development activities, which would impact our ability to meet milestones. If we fail to
commence or complete, or experience delays in or are forced to curtail, our proposed clinical
programs or otherwise fail to adhere to our projected development goals in the timeframes we
announce and expect, our business and results of operations will be harmed and the market price of
our common stock may decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We face substantial competition in the development of our product candidates and may not be able to
compete successfully, and our product candidates may be rendered obsolete by rapid technological
change.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A number of established pharmaceutical companies have or are developing technologies for the
treatment of diabetes. We also face substantial competition for the development of our other
product candidates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Many of our existing or potential competitors have, or have access to, substantially greater
financial, research and development, production, and sales and marketing resources than we do and
have a greater depth and number of experienced managers. As a result, our competitors may be better
equipped than we are to develop, manufacture, market and sell competing products. In addition,
gaining favorable reimbursement is critical to the success of AFRESA. Many of our competitors have
existing infrastructure and relationships with managed care organizations and reimbursement
authorities which can be used to their advantage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The rapid rate of scientific discoveries and technological changes could result in one or more of
our product candidates becoming obsolete or noncompetitive. Our competitors may develop or
introduce new products that render our technology and AFRESA less competitive, uneconomical or
obsolete. Our future success will depend not only on our ability to develop our product candidates
but to improve them and keep pace with emerging industry developments. We cannot assure you that we
will be able to do so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also expect to face increasing competition from universities and other non-profit research
organizations. These institutions carry out a significant amount of research and development in the
areas of diabetes and cancer. These institutions are becoming increasingly aware of the commercial
value of their findings and are more active in seeking patent and other proprietary rights as well
as licensing revenues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If we fail to enter into a strategic collaboration with respect to AFRESA, we may not be able to
execute on our business model.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have held extensive discussions with a number of pharmaceutical companies concerning a potential
strategic business collaboration for AFRESA. To date, we have not reached agreement with any of
these companies on a collaboration. On April&nbsp;10, 2008, we announced our decision to suspend
partnership discussions as we believed that, given the existing market conditions, we would have
been unable to achieve an appropriate valuation for AFRESA until Phase 3 data were available.
Following the completion of our pivotal Phase 3 clinical trials, we restarted partnership
discussions. However, we cannot predict when, if ever, we could conclude such an agreement with a
partner. There can be no assurance that any such collaboration will be available to us on a timely
basis or on acceptable terms, if at all. If we are not able to enter into a collaboration on terms
that are favorable to us, we may be unable to undertake and fund product development, clinical
trials, manufacturing and marketing activities at our own expense. Accordingly, we may have to
substantially reduce our development efforts, which would delay or otherwise impede the
commercialization of AFRESA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We will face similar challenges as we seek to develop our other product candidates. Our current
strategy for developing, manufacturing and commercializing our other product candidates includes
evaluating the potential for collaborating with pharmaceutical and biotechnology companies at some
point in the drug development process and for these collaborators to undertake the advanced
clinical development and commercialization of our product candidates. It may be difficult for us to
find third parties that are willing to enter into collaborations on economic terms that are
favorable to us, or at all. Failure to enter into a collaboration with respect to any other product
candidate could substantially increase our requirements for capital and force us to substantially
reduce our development effort.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If we enter into collaborative agreements with respect to AFRESA and if our third-party
collaborators do not perform satisfactorily or if our collaborations fail, development or
commercialization of AFRESA may be delayed and our business could be harmed.</I></B>
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We currently rely on clinical research organizations and hospitals to conduct, supervise or monitor
some or all aspects of clinical trials involving AFRESA. Further, we may also enter into license
agreements, partnerships or other collaborative arrangements to support the financing, development
and marketing of AFRESA. We may also license technology from others to enhance or supplement our
technologies. These various collaborators may enter into arrangements that would make them
potential competitors. These various collaborators also may breach their agreements with us and
delay our progress or fail to perform under their agreements, which could harm our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If we enter into collaborative arrangements, we will have less control over the timing, planning
and other aspects of our clinical trials, and the sale and marketing of AFRESA and our other
product candidates. We cannot offer assurances that we will be able to enter into satisfactory
arrangements with third parties as contemplated or that any of our existing or future
collaborations will be successful.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Continued testing of AFRESA or another product candidate may not yield successful results, and even
if it does, we may still be unable to commercialize that product candidate.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our research and development programs are designed to test the safety and efficacy of AFRESA and
our other product candidates through extensive nonclinical and clinical testing. We may experience
numerous unforeseen events during, or as a result of, the testing process that could delay or
prevent commercialization of AFRESA or any of our other product candidates, including the
following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>safety and efficacy results obtained in our nonclinical and initial clinical testing may
be inconclusive or may not be predictive of results obtained in later-stage clinical trials
or following long-term use, and we may as a result be forced to stop developing product
candidates that we currently believe are important to our future;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the data collected from clinical trials of our product candidates may not be sufficient
to support FDA or other regulatory approval;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>after reviewing test results, we or any potential collaborators may abandon projects that
we previously believed were promising; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our product candidates may not produce the desired effects or may result in adverse
health effects or other characteristics that preclude regulatory approval or limit their
commercial use if approved.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have completed a pivotal Phase 3 safety study of AFRESA to evaluate pulmonary function, with
multiple uses per day, over a period of two years. The results of our Phase 3 clinical trials are
limited to the size and timeframe these clinical trials have been conducted. Forecasts about the
effects of the use of drugs, including AFRESA, over terms longer than the clinical trials or in
much larger populations may not be consistent with the clinical results. If use of AFRESA results
in adverse health effects or reduced efficacy or both, the FDA or other regulatory agencies may
terminate our ability to market and sell AFRESA, may narrow the approved indications for use or
otherwise require restrictive product labeling or marketing, or may require further clinical
trials, which may be time-consuming and expensive and may not produce favorable results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a result of any of these events, we, any collaborator, the FDA, or any other regulatory
authorities, may suspend or terminate clinical trials or marketing of AFRESA at any time. Any
suspension or termination of our clinical trials or marketing activities may harm our business and
results of operations and the market price of our common stock may decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If we are unable to transition successfully from a development company to a company that
commercializes therapeutics, our operations would suffer.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We require a well-structured plan to make the transition from the development-stage to being a
company with commercial operations. We have a number of executive personnel, particularly in
clinical development, regulatory and manufacturing production, including personnel with significant
Phase 3-to-commercialization experience. We have aligned our management structure to accommodate
the increasing complexity of our operations, and we have implemented the following measures, among
others, to accommodate our transition, complete development of AFRESA and successfully implement
our commercialization strategy for AFRESA:
</DIV>

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<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>develop comprehensive and detailed commercialization, clinical development and regulatory
plans; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>implement standard operating procedures, including those for protocol development.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">If we are unable to accomplish these measures in a timely manner, we would be at
considerable risk of failing to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>develop manufacturing capabilities to be ready for FDA inspection and commercial
operations; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>develop the key clinical data needed to obtain regulatory approval and compete
successfully in the marketplace.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If our suppliers fail to deliver materials and services needed for the production of AFRESA in a
timely and sufficient manner, or they fail to comply with applicable regulations, our business and
results of operations would be harmed and the market price of our common stock could decline.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For AFRESA to be commercially viable, we need access to sufficient, reliable and affordable
supplies of insulin, our AFRESA inhaler, the related cartridges and other materials. In November
2007, we entered into a long-term supply agreement with N.V. Organon, which is currently our sole
supplier for insulin. In March&nbsp;2009, we entered into agreements with Pfizer Inc. to purchase
Pfizer&#146;s insulin facility and assets related to the production of bulk insulin, including the
relevant real property rights, the production equipment, a quantity of bulk insulin and a license
to manufacture bulk insulin for use in pulmonary delivery. These transactions will not close
unless and until certain conditions precedent (as set forth in the agreements) are satisfied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have obtained our AFRESA precursor raw material from two sources both of which are major
chemical manufacturers with facilities in Europe and North America. We have recently completed a
successful validation campaign at commercial scale of FDKP. We can also utilize our in-house
chemical manufacturing plant for supplemental capacity. We believe both manufacturers have the
capacity to supply our current clinical and future commercial requirements. We have obtained our
AFRESA inhaler and cartridges from two large plastic molding companies. We must rely on our
suppliers to comply with relevant regulatory and other legal requirements, including the production
of insulin in accordance with cGMP and the production of AFRESA inhaler and related cartridges in
accordance with device QSR. The supply of all of these materials may be limited or the manufacturer
may not meet relevant regulatory requirements, and if we are unable to obtain these materials in
sufficient amounts, in a timely manner and at reasonable prices, or if we should encounter delays
or difficulties in our relationships with manufacturers or suppliers, the development or
manufacturing of AFRESA may be delayed. Any such events would delay market introduction and
subsequent sales of AFRESA and, if so, our business and results of operations will be harmed and
the market price of our common stock may decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We have never manufactured AFRESA or any other product candidate in commercial quantities, and if
we fail to develop an effective manufacturing capability for our product candidates or to engage
third-party manufacturers with this capability, we may be unable to commercialize these products.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have obtained our AFRESA precursor raw material from two sources. We use our new, expanded
Danbury, Connecticut facility to formulate AFRESA, fill plastic cartridges with AFRESA and blister
package the cartridges for our clinical trials. We recently completed qualification procedures for
the formulation, fill and finishing processes at this facility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have manufactured AFRESA in commercial quantities in our Danbury facility also. However, the
facility is still undergoing the rigorous testing and regulatory inspection processes that are
expected to result in approval to manufacture. The manufacture of pharmaceutical products requires
significant expertise and capital investment, including the development of advanced manufacturing
techniques and process controls. Manufacturers of pharmaceutical products often encounter
difficulties in production, especially in scaling up initial production. These problems include
difficulties with production costs and yields, quality control and assurance and shortages of
qualified personnel, as well as compliance with strictly enforced federal, state and foreign
regulations. In addition, before we would be able to produce commercial quantities of AFRESA at our
Danbury facility, it would have to undergo a pre-approval inspection by the FDA. If we engage a
third-party manufacturer, our third-party manufacturer may not perform as agreed or may terminate
its agreement with us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Additionally, if we manufacture commercial material at a different facility than the site of
manufacture of clinical trial materials or if we manufacture commercial material on a significantly
larger production scale than the production scale for clinical trial materials, we
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">may be required by the FDA to establish that the results obtained from the clinical trials may
reasonably be extrapolated to such commercial material.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any of these factors could cause us to delay or suspend clinical trials, regulatory submissions,
required approvals or commercialization of our product candidates, entail higher costs and result
in our being unable to effectively commercialize our products. Furthermore, if we or a third-party
manufacturer fail to deliver the required commercial quantities of any product on a timely basis,
and at commercially reasonable prices and acceptable quality, and we were unable to promptly find
one or more replacement manufacturers capable of production at a substantially equivalent cost, in
substantially equivalent volume and quality on a timely basis, we would likely be unable to meet
demand for such products and we would lose potential revenues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We deal with hazardous materials and must comply with environmental laws and regulations, which can
be expensive and restrict how we do business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our research and development work involves the controlled storage and use of hazardous materials,
including chemical, radioactive and biological materials. In addition, our manufacturing operations
involve the use of a chemical that is stable and non-hazardous under normal storage conditions, but
may form an explosive mixture under certain conditions. Our operations also produce hazardous waste
products. We are subject to federal, state and local laws and regulations governing how we use,
manufacture, store, handle and dispose of these materials. Moreover, the risk of accidental
contamination or injury from hazardous materials cannot be completely eliminated, and in the event
of an accident, we could be held liable for any damages that may result, and any liability could
fall outside the coverage or exceed the limits of our insurance. Currently, our general liability
policy provides coverage up to $1&nbsp;million per occurrence and $2&nbsp;million in the aggregate and is
supplemented by an umbrella policy that provides a further $4&nbsp;million of coverage; however, our
insurance policy excludes pollution coverage and we do not carry a separate hazardous materials
policy. In addition, we could be required to incur significant costs to comply with environmental
laws and regulations in the future. Finally, current or future environmental laws and regulations
may impair our research, development or production efforts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">When we purchased the facilities located in Danbury, Connecticut in 2001, there was a soil cleanup
plan in process. As part of the purchase, we obtained an indemnification from the seller related to
the remediation of the soil for all known environmental conditions that existed at the time the
seller acquired the property. The seller is, in turn, indemnified for these known environmental
conditions by the previous owner. We completed the final stages of the soil cleanup plan in the
third quarter of 2008 which cost approximately $2.25&nbsp;million. We have also received an
indemnification from the seller for environmental conditions created during its ownership of the
property and for environmental problems unknown at the time that the seller acquired the property.
These additional indemnities are limited to the purchase price that we paid for the Danbury
facilities. We are currently pursuing collection of the clean-up costs and expenses from the seller
or the party responsible for the contamination. If we are unable to collect the full amount of
these costs and expenses, our business and results of operations may be harmed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If we fail to enter into collaborations with third parties, we would be required to establish our
own sales, marketing and distribution capabilities, which could impact the commercialization of our
products and harm our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our products will be used by a large number of healthcare professionals who require substantial
education and support. For example, a broad base of physicians, including primary care physicians
and endocrinologists, treat patients with diabetes. A large sales force will be required in order
to educate these physicians about the benefits and advantages of AFRESA and to provide adequate
support for them. Therefore, we plan to enter into collaborations with one or more pharmaceutical
companies to market, distribute and sell AFRESA, if it is approved. If we fail to enter into
collaborations, we would be required to establish our own direct sales, marketing and distribution
capabilities. Establishing these capabilities can be time-consuming and expensive. Because we lack
experience in selling pharmaceutical products to the diabetes market, we would be at a disadvantage
compared to our potential competitors, all of whom have substantially more resources and experience
than we do. For example, several other companies selling products to treat diabetes have existing
sales forces in excess of 1,500 sales representatives. We, acting alone, would not initially be
able to field a sales force as large as our competitors or provide the same degree of market
research or marketing support. Also, we would not be able to match our competitor&#146;s spending levels
for pre-launch marketing preparation, including medical education. We cannot assure you that we
will succeed in entering into acceptable collaborations, that any such collaboration will be
successful or, if not, that we will successfully develop our own sales, marketing and distribution
capabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If any product that we may develop does not become widely accepted by physicians, patients,
third-party payers and the healthcare community, we may be unable to generate significant revenue,
if any.</I></B>
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">AFRESA and our other product candidates are new and unproven. Even if any of our product candidates
obtains regulatory approvals, it may not gain market acceptance among physicians, patients,
third-party payers and the healthcare community. Failure to achieve market acceptance would limit
our ability to generate revenue and would adversely affect our results of operations.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The degree of market acceptance of AFRESA and our other product candidates will depend on many factors, including the:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>claims for which FDA approval can be obtained, including superiority claims;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>perceived advantages and disadvantages of competitive products;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>willingness and ability of patients and the healthcare community to adopt new
technologies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ability to manufacture the product in sufficient quantities with acceptable quality and
at an acceptable cost;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>perception of patients and the healthcare community, including third-party payers,
regarding the safety, efficacy and benefits of the product compared to those of competing
products or therapies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>convenience and ease of administration of the product relative to existing treatment
methods;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pricing and reimbursement of the product relative to other treatment therapeutics and
methods; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>marketing and distribution support for the product.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Physicians will not recommend a product until clinical data or other factors demonstrate the safety
and efficacy of the product as compared to other treatments. Even if the clinical safety and
efficacy of our product candidates is established, physicians may elect not to recommend these
product candidates for a variety of factors, including the reimbursement policies of government and
third-party payers and the effectiveness of our competitors in marketing their therapies. Because
of these and other factors, any product that we may develop may not gain market acceptance, which
would materially harm our business, financial condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If third-party payers do not reimburse customers for our products, our products might not be used
or purchased, which would adversely affect our revenues.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our future revenues and potential for profitability may be affected by the continuing efforts of
governments and third-party payers to contain or reduce the costs of healthcare through various
means. For example, in certain foreign markets the pricing of prescription pharmaceuticals is
subject to governmental control. In the United States, there has been, and we expect that there
will continue to be, a number of federal and state proposals to implement similar governmental
controls. We cannot be certain what legislative proposals will be adopted or what actions federal,
state or private payers for healthcare goods and services may take in response to any healthcare
reform proposals or legislation. Such reforms may make it difficult to complete the development and
testing of AFRESA and our other product candidates, and therefore may limit our ability to generate
revenues from sales of our product candidates and achieve profitability. Further, to the extent
that such reforms have a material adverse effect on the business, financial condition and
profitability of other companies that are prospective collaborators for some of our product
candidates, our ability to commercialize our product candidates under development may be adversely
affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the United States and elsewhere, sales of prescription pharmaceuticals still depend in large
part on the availability of reimbursement to the consumer from third-party payers, such as
governmental and private insurance plans. Third-party payers are increasingly challenging the
prices charged for medical products and services. In addition, because each third-party payer
individually approves reimbursement, obtaining these approvals is a time-consuming and costly
process. We would be required to provide scientific and clinical support for the use of any product
to each third-party payer separately with no assurance that approval would be obtained. This
process could delay the market acceptance of any product and could have a negative effect on our
future revenues and operating results. Even if we succeed in bringing one or more products to
market, we cannot be certain that any such products would be considered cost-effective or that
reimbursement to the consumer would be available, in which case our business and results of
operations would be harmed and the market price of our common stock could decline.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If product liability claims are brought against us, we may incur significant liabilities and suffer
damage to our reputation.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The testing, manufacturing, marketing and sale of AFRESA and our other product candidates expose us
to potential product liability claims. A product liability claim may result in substantial
judgments as well as consume significant financial and management resources and result in adverse
publicity, decreased demand for a product, injury to our reputation, withdrawal of clinical trial
volunteers and loss of revenues. We currently carry worldwide liability insurance in the amount of
$10&nbsp;million. We believe these limits are reasonable to cover us from potential damages arising from
current and previous clinical trials of AFRESA. In addition, we carry local policies per trial in
each country in which we conduct clinical trials that require us to carry coverage based on local
statutory requirements. We intend to obtain product liability coverage for commercial sales in the
future if AFRESA is approved. However, we may not be able to obtain insurance coverage that will be
adequate to satisfy any liability that may arise, and because insurance coverage in our industry
can be very expensive and difficult to obtain, we cannot assure you that we will be able to obtain
sufficient coverage at an acceptable cost, if at all. If losses from such claims exceed our
liability insurance coverage, we may ourselves incur substantial liabilities. If we are required to
pay a product liability claim our business and results of operations would be harmed and the market
price of our common stock may decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If we lose any key employees or scientific advisors, our operations and our ability to execute our
business strategy could be materially harmed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In order to commercialize our product candidates successfully, we will be required to expand our
work force, particularly in the areas of manufacturing, clinical trials management, regulatory
affairs, business development, and sales and marketing. These activities will require the addition
of new personnel, including management, and the development of additional expertise by existing
personnel. We face intense competition for qualified employees among companies in the biotechnology
and biopharmaceutical industries. Our success depends upon our ability to attract, retain and
motivate highly skilled employees. We may be unable to attract and retain these individuals on
acceptable terms, if at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The loss of the services of any principal member of our management and scientific staff could
significantly delay or prevent the achievement of our scientific and business objectives. All of
our employees are &#147;at will&#148; and we currently do not have employment agreements with any of the
principal members of our management or scientific staff, and we do not have key person life
insurance to cover the loss of any of these individuals. Replacing key employees may be difficult
and time-consuming because of the limited number of individuals in our industry with the skills and
experience required to develop, gain regulatory approval of and commercialize our product
candidates successfully.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have relationships with scientific advisors at academic and other institutions to conduct
research or assist us in formulating our research, development or clinical strategy. These
scientific advisors are not our employees and may have commitments to, and other obligations with,
other entities that may limit their availability to us. We have limited control over the activities
of these scientific advisors and can generally expect these individuals to devote only limited time
to our activities. Failure of any of these persons to devote sufficient time and resources to our
programs could harm our business. In addition, these advisors are not prohibited from, and may have
arrangements with, other companies to assist those companies in developing technologies that may
compete with our product candidates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If our Chief Executive Officer is unable to devote sufficient time and attention to our business,
our operations and our ability to execute our business strategy could be materially harmed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Alfred Mann, our Chairman and Chief Executive Officer, is involved in many other business and
charitable activities. As a result, the time and attention Mr.&nbsp;Mann devotes to the operation of our
business varies, and he may not expend the same time or focus on our activities as other, similarly
situated chief executive officers. If Mr.&nbsp;Mann is unable to devote the time and attention necessary
to running our business, we may not be able to execute our business strategy and our business could
be materially harmed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our facilities that are located in Southern California may be affected by man-made or natural
disasters.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our headquarters and some of our research and development activities are located in Southern
California, where they are subject to a risk of man-made disasters, terrorism, and an enhanced risk
of natural and other disasters such as fires, power and telecommunications
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">failures, mudslides, and
earthquakes. An act of terrorism, fire, earthquake or other catastrophic loss that causes
significant damage to
our facilities or interruption of our business could harm our business. We do not carry insurance
to cover losses caused by earthquakes, and the insurance coverage that we carry for fire damage and
for business interruption may be insufficient to compensate us for any losses that we may incur.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If our internal controls over financial reporting are not considered effective, our business and
stock price could be adversely affected.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;404 of the Sarbanes-Oxley Act of 2002 requires us to evaluate the effectiveness of our
internal controls over financial reporting as of the end of each fiscal year, and to include a
management report assessing the effectiveness of our internal controls over financial reporting in
our annual report on Form 10-K for that fiscal year. Section&nbsp;404 also requires our independent
registered public accounting firm to attest to, and report on, our internal controls over financial
reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect
that our internal controls over financial reporting will prevent all errors and all fraud. A
control system, no matter how well designed and operated, can provide only reasonable, not
absolute, assurance that the control system&#146;s objectives will be met. Further, the design of a
control system must reflect the fact that there are resource constraints, and the benefits of
controls must be considered relative to their costs. Because of the inherent limitations in all
control systems, no evaluation of controls can provide absolute assurance that all control issues
and instances of fraud involving a company have been, or will be, detected. The design of any
system of controls is based in part on certain assumptions about the likelihood of future events,
and we cannot assure you that any design will succeed in achieving its stated goals under all
potential future conditions. Over time, controls may become inadequate because of changes in
conditions or deterioration in the degree of compliance with policies or procedures. Because of the
inherent limitations in a cost-effective control system, misstatements due to error or fraud may
occur and not be detected. We cannot assure you that we or our independent registered public
accounting firm will not identify a material weakness in our internal controls in the future. A
material weakness in our internal controls over financial reporting would require management and
our independent registered public accounting firm to evaluate our internal controls as ineffective.
If our internal controls over financial reporting are not considered effective, we may experience a
loss of public confidence, which could have an adverse effect on our business and on the market
price of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RISKS RELATED TO REGULATORY APPROVALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our product candidates must undergo rigorous nonclinical and clinical testing and we must obtain
regulatory approvals, which could be costly and time-consuming and subject us to unanticipated
delays or prevent us from marketing any products.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our research and development activities, as well as the manufacturing and marketing of our product
candidates, including AFRESA, are subject to regulation, including regulation for safety, efficacy
and quality, by the FDA in the United States and comparable authorities in other countries. FDA
regulations and the regulation of comparable foreign regulatory authorities are wide-ranging and
govern, among other things:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>product design, development, manufacture and testing;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>product labeling;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>product storage and shipping;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pre-market clearance or approval;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>advertising and promotion; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>product sales and distribution.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Clinical testing can be costly and take many years, and the outcome is uncertain and susceptible to
varying interpretations. Based on our discussions with the FDA at a pre-NDA meeting, we conducted a
study, prior to submitting our NDA, that assessed the bioequivalency of the inhaler used in our
clinical trials to date with the modified version of the same inhaler that we intend to use for
commercial purposes. The FDA did not request any other trials prior to NDA submission. However, we
cannot be certain if or when the FDA might request additional studies, under what conditions such
studies might be requested, or what the size or length of any
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such studies might be. The clinical
trials of our product candidates may not be completed on schedule, the FDA or foreign regulatory
agencies may order us to stop or modify our research, or these agencies may not ultimately approve
any of our product candidates for commercial sale. The data collected from our clinical trials may
not be sufficient to support regulatory approval of our various product candidates, including
AFRESA. Even if we believe the data collected from our clinical trials are sufficient, the FDA has
substantial discretion in the approval process and may disagree with our interpretation of the
data. Our failure to adequately demonstrate the safety and efficacy of any of our product
candidates would delay or prevent regulatory approval of our product candidates, which could
prevent us from achieving profitability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The requirements governing the conduct of clinical trials and manufacturing and marketing of our
product candidates, including AFRESA, outside the United States vary widely from country to
country. Foreign approvals may take longer to obtain than FDA approvals and can require, among
other things, additional testing and different clinical trial designs. Foreign regulatory approval
processes include essentially all of the risks associated with the FDA approval processes. Some of
those agencies also must approve prices of the products. Approval of a product by the FDA does not
ensure approval of the same product by the health authorities of other countries. In addition,
changes in regulatory policy in the United States or in foreign countries for product approval
during the period of product development and regulatory agency review of each submitted new
application may cause delays or rejections.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The process of obtaining FDA and other required regulatory approvals, including foreign approvals,
is expensive, often takes many years and can vary substantially based upon the type, complexity and
novelty of the products involved. We are not aware of any precedent for the successful
commercialization of products based on our technology. On January&nbsp;26, 2006, the FDA approved the
first pulmonary insulin product, Exubera. This approval has had an impact on and, notwithstanding
the voluntary withdrawal of the product from the market by its manufacturer, could still impact the
development and registration of AFRESA in different ways, including: Exubera may be used as a
reference for safety and efficacy evaluations of AFRESA, and the approval standards set for Exubera
may be applied to other products that follow including AFRESA. The FDA has advised us that it will
regulate AFRESA as a &#147;combination product&#148; because of the complex nature of the system that
includes the combination of a new drug (AFRESA)&nbsp;and a new medical device (the AFRESA inhaler used
to administer the insulin). The FDA indicated that the review of a future drug marketing
application for AFRESA will involve three separate review groups of the FDA: (1)&nbsp;the Metabolic and
Endocrine Drug Products Division; (2)&nbsp;the Pulmonary Drug Products Division; and (3)&nbsp;the Center for
Devices and Radiological Health within the FDA that reviews medical devices. We currently
understand that the Metabolic and Endocrine Drug Products Division will be the lead group and will
obtain consulting reviews from the other two FDA groups. The FDA has not made an official final
decision in this regard, however, and we can make no assurances at this time about what impact FDA
review by multiple groups will have on the review and approval of our product or whether we are
correct in our understanding of how AFRESA will be reviewed and approved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Also, questions that have been raised about the safety of marketed drugs generally, including
pertaining to the lack of adequate labeling, may result in increased cautiousness by the FDA in
reviewing new drugs based on safety, efficacy, or other regulatory considerations and may result in
significant delays in obtaining regulatory approvals. Such regulatory considerations may also
result in the imposition of more restrictive drug labeling or marketing requirements as conditions
of approval, which may significantly affect the marketability of our drug products. FDA review of
AFRESA as a combination product therapy may lengthen the product development and regulatory
approval process, increase our development costs and delay or prevent the commercialization of
AFRESA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are developing AFRESA as a new treatment for diabetes utilizing unique, proprietary components.
As a combination product, any changes to either the AFRESA inhaler, or AFRESA, including new
suppliers, could possibly result in FDA requirements to repeat certain clinical studies. This
means, for example, that switching to an alternate delivery system could require us to undertake
additional clinical trials and other studies, which could significantly delay the development and
commercialization of AFRESA. Our product candidates that are currently in development for the
treatment of cancer also face similar obstacles and costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We currently expect that our inhaler will be reviewed for approval as part of the NDA for AFRESA.
No assurances exist that we will not be required to obtain separate device clearances or approval
for use of our inhaler with AFRESA. This may result in our being subject to medical device review
user fees and to other device requirements to market our inhaler and may result in significant
delays in commercialization. Even if the device component is approved as part of our NDA for
AFRESA, numerous device regulatory requirements still apply to the device part of the drug-device
combination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We have only limited experience in filing and pursuing applications necessary to gain regulatory
approvals, which may impede our ability to obtain timely approvals from the FDA or foreign
regulatory agencies, if at all.</I></B>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We will not be able to commercialize AFRESA or any other product candidates until we have obtained
regulatory approval. We have no experience as a company in late-stage regulatory filings, such as
preparing and submitting NDAs, which may place us at risk of
delays, overspending and human resources inefficiencies. Any delay in obtaining, or inability to
obtain, regulatory approval could harm our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If we do not comply with regulatory requirements at any stage, whether before or after marketing
approval is obtained, we may be subject to criminal prosecution, fined or forced to remove a
product from the market or experience other adverse consequences, including restrictions or delays
in obtaining regulatory marketing approval.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Even if we comply with regulatory requirements, we may not be able to obtain the labeling claims
necessary or desirable for product promotion. We may also be required to undertake post-marketing
trials. In addition, if we or other parties identify adverse effects after any of our products are
on the market, or if manufacturing problems occur, regulatory approval may be withdrawn and a
reformulation of our products, additional clinical trials, changes in labeling of, or indications
of use for, our products and/or additional marketing applications may be required. If we encounter
any of the foregoing problems, our business and results of operations will be harmed and the market
price of our common stock may decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Even if we obtain regulatory approval for our product candidates, such approval may be limited and
we will be subject to stringent, ongoing government regulation.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Even if regulatory authorities approve any of our product candidates, they could approve less than
the full scope of uses or labeling that we seek or otherwise require special warnings or other
restrictions on use or marketing or could require potentially costly post-marketing follow-up
clinical trials. Regulatory authorities may limit the segments of the diabetes population to which
we or others may market AFRESA or limit the target population for our other product candidates.
Based on currently available clinical studies, we believe that AFRESA may have certain advantages
over currently approved insulin products including its approximation of the natural early insulin
secretion normally seen in healthy individuals following the beginning of a meal. Nonetheless,
there are no assurances that these or any other advantages of AFRESA will be agreed to by the FDA
or otherwise included in product labeling or advertising and, as a result, AFRESA may not have our
expected competitive advantages when compared to other insulin products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The manufacture, marketing and sale of these product candidates will be subject to stringent and
ongoing government regulation. The FDA may also withdraw product approvals if problems concerning
safety or efficacy of the product occur following approval. In response to questions that have been
raised about the safety of certain approved prescription products, including the lack of adequate
warnings, the FDA and United States Congress are currently considering new regulatory and
legislative approaches to advertising, monitoring and assessing the safety of marketed drugs,
including legislation providing the FDA with authority to mandate labeling changes for approved
pharmaceutical products, particularly those related to safety. We also cannot be sure that the
current FDA and United States Congressional initiatives pertaining to ensuring the safety of
marketed drugs or other developments pertaining to the pharmaceutical industry will not adversely
affect our operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also are required to register our establishments and list our products with the FDA and certain
state agencies. We and any third-party manufacturers or suppliers must continually adhere to
federal regulations setting forth requirements, known as cGMP (for drugs) and QSR (for medical
devices), and their foreign equivalents, which are enforced by the FDA and other national
regulatory bodies through their facilities inspection programs. If our facilities, or the
facilities of our manufacturers or suppliers, cannot pass a preapproval plant inspection, the FDA
will not approve the marketing of our product candidates. In complying with cGMP and foreign
regulatory requirements, we and any of our potential third-party manufacturers or suppliers will be
obligated to expend time, money and effort in production, record-keeping and quality control to
ensure that our products meet applicable specifications and other requirements. QSR requirements
also impose extensive testing, control and documentation requirements. State regulatory agencies
and the regulatory agencies of other countries have similar requirements. In addition, we will be
required to comply with regulatory requirements of the FDA, state regulatory agencies and the
regulatory agencies of other countries concerning the reporting of adverse events and device
malfunctions, corrections and removals (e.g., recalls), promotion and advertising and general
prohibitions against the manufacture and distribution of adulterated and misbranded devices.
Failure to comply with these regulatory requirements could result in civil fines, product seizures,
injunctions and/or criminal prosecution of responsible individuals and us. Any such actions would
have a material adverse effect on our business and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our insulin supplier does not yet supply human recombinant insulin for an FDA-approved product and
will likely be subject to an FDA preapproval inspection before the agency will approve a future
marketing application for AFRESA.</I></B>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our insulin supplier sells its product outside of the United States. However, we can make no
assurances that our insulin supplier will be acceptable to the FDA. If we were required to find a
new or additional supplier of insulin, we would be required to evaluate the new supplier&#146;s ability
to provide insulin that meets our specifications and quality requirements, which would require
significant time and expense and could delay the manufacturing and future commercialization of
AFRESA. We also depend on suppliers for other materials that comprise AFRESA, including our AFRESA
inhaler and cartridges. All of our device suppliers must comply with relevant regulatory
requirements including QSR. It also is likely that major suppliers will be subject to FDA
preapproval inspections before the agency will approve a future marketing application for AFRESA.
At the present time our insulin supplier is certified to the ISO 9001:2000 Standard. There can be
no assurance, however, that if the FDA were to conduct a preapproval inspection of our insulin
supplier or other suppliers, that the agency would find that the supplier substantially comply with
the QSR or cGMP requirements, where applicable. If we or any potential third-party manufacturer or
supplier fails to comply with these requirements or comparable requirements in foreign countries,
regulatory authorities may subject us to regulatory action, including criminal prosecutions, fines
and suspension of the manufacture of our products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Reports of side effects or safety concerns in related technology fields or in other companies&#146;
clinical trials could delay or prevent us from obtaining regulatory approval or negatively impact
public perception of our product candidates.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At present, there are a number of clinical trials being conducted by us and other pharmaceutical
companies involving insulin delivery systems. If we discover that AFRESA is associated with a
significantly increased frequency of adverse events, or if other pharmaceutical companies announce
that they observed frequent adverse events in their trials involving the pulmonary delivery of
insulin, we could encounter delays in the timing of our clinical trials or difficulties in
obtaining the approval of AFRESA. As well, the public perception of AFRESA might be adversely
affected, which could harm our business and results of operations and cause the market price of our
common stock to decline, even if the concern relates to another company&#146;s products or product
candidates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There are also a number of clinical trials being conducted by other pharmaceutical companies
involving compounds similar to, or competitive with, our other product candidates. Adverse results
reported by these other companies in their clinical trials could delay or prevent us from obtaining
regulatory approval or negatively impact public perception of our product candidates, which could
harm our business and results of operations and cause the market price of our common stock to
decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RISKS RELATED TO INTELLECTUAL PROPERTY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If we are unable to protect our proprietary rights, we may not be able to compete effectively, or
operate profitably.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our commercial success depends, in large part, on our ability to obtain and maintain intellectual
property protection for our technology. Our ability to do so will depend on, among other things,
complex legal and factual questions, and it should be noted that the standards regarding
intellectual property rights in our fields are still evolving. We attempt to protect our
proprietary technology through a combination of patents, trade secrets and confidentiality
agreements. We own a number of domestic and international patents, have a number of domestic and
international patent applications pending and have licenses to additional patents. We cannot assure
you that our patents and licenses will successfully preclude others from using our technologies,
and we could incur substantial costs in seeking enforcement of our proprietary rights against
infringement. Even if issued, the patents may not give us an advantage over competitors with
similar alternative technologies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Moreover, the issuance of a patent is not conclusive as to its validity or enforceability and it is
uncertain how much protection, if any, will be afforded by our patents. A third party may challenge
the validity or enforceability of a patent after its issuance by various proceedings such as
oppositions in foreign jurisdictions or re-examinations in the United States. If we attempt to
enforce our patents, they may be challenged in court where they could be held invalid,
unenforceable, or have their breadth narrowed to an extent that would destroy their value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also rely on unpatented technology, trade secrets, know-how and confidentiality agreements. We
require our officers, employees, consultants and advisors to execute proprietary information and
invention and assignment agreements upon commencement of their relationships with us. We also
execute confidentiality agreements with outside collaborators. There can be no assurance, however,
that these agreements will provide meaningful protection for our inventions, trade secrets,
know-how or other proprietary information in the event of unauthorized use or disclosure of such
information. If any trade secret, know-how or other technology not protected by a patent were to be
disclosed to or independently developed by a competitor, our business, results of operations and
financial condition could be adversely affected.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If we become involved in lawsuits to protect or enforce our patents or the patents of our
collaborators or licensors, we would be required to devote substantial time and resources to
prosecute or defend such proceedings.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Competitors may infringe our patents or the patents of our collaborators or licensors. To counter
infringement or unauthorized use, we may be required to file infringement claims, which can be
expensive and time-consuming. In addition, in an infringement proceeding, a court may decide that a
patent of ours is not valid or is unenforceable, or may refuse to stop the other party from using
the technology at issue on the grounds that our patents do not cover its technology. A court may
also decide to award us a royalty from an infringing party instead of issuing an injunction against
the infringing activity. An adverse determination of any litigation or defense proceedings could
put one or more of our patents at risk of being invalidated or interpreted narrowly and could put
our patent applications at risk of not issuing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Interference proceedings brought by the USPTO may be necessary to determine the priority of
inventions with respect to our patent applications or those of our collaborators or licensors.
Litigation or interference proceedings may fail and, even if successful, may result in substantial
costs and be a distraction to our management. We may not be able, alone or with our collaborators
and licensors, to prevent misappropriation of our proprietary rights, particularly in countries
where the laws may not protect such rights as fully as in the United States. We may not prevail in
any litigation or interference proceeding in which we are involved. Even if we do prevail, these
proceedings can be very expensive and distract our management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Furthermore, because of the substantial amount of discovery required in connection with
intellectual property litigation, there is a risk that some of our confidential information could
be compromised by disclosure during this type of litigation. In addition, during the course of this
kind of litigation, there could be public announcements of the results of hearings, motions or
other interim proceedings or developments. If securities analysts or investors perceive these
results to be negative, the market price of our common stock may decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If our technologies conflict with the proprietary rights of others, we may incur substantial costs
as a result of litigation or other proceedings and we could face substantial monetary damages and
be precluded from commercializing our products, which would materially harm our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Over the past three decades the number of patents issued to biotechnology companies has expanded
dramatically. As a result it is not always clear to industry participants, including us, which
patents cover the multitude of biotechnology product types. Ultimately, the courts must determine
the scope of coverage afforded by a patent and the courts do not always arrive at uniform
conclusions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A patent owner may claim that we are making, using, selling or offering for sale an invention
covered by the owner&#146;s patents and may go to court to stop us from engaging in such activities.
Such litigation is not uncommon in our industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Patent lawsuits can be expensive and would consume time and other resources. There is a risk that a
court would decide that we are infringing a third party&#146;s patents and would order us to stop the
activities covered by the patents, including the commercialization of our products. In addition,
there is a risk that we would have to pay the other party damages for having violated the other
party&#146;s patents (which damages may be increased, as well as attorneys&#146; fees ordered paid, if
infringement is found to be willful), or that we will be required to obtain a license from the
other party in order to continue to commercialize the affected products, or to design our products
in a manner that does not infringe a valid patent. We may not prevail in any legal action, and a
required license under the patent may not be available on acceptable terms or at all, requiring
cessation of activities that were found to infringe a valid patent. We also may not be able to
develop a non-infringing product design on commercially reasonable terms, or at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Although we own a number of domestic and foreign patents and patent applications relating to AFRESA
and cancer vaccine products under development, we have identified certain third-party patents
having claims relating to pulmonary insulin delivery that may trigger an allegation of infringement
upon the commercial manufacture and sale of AFRESA. We have also identified third-party patents
disclosing methods of use and compositions of matter related to DNA-based vaccines that also may
trigger an allegation of infringement upon the commercial manufacture and sale of our cancer
therapy. If a court were to determine that our insulin products or cancer therapies were infringing
any of these patent rights, we would have to establish with the court that these patents were
invalid or unenforceable in order to avoid legal liability for infringement of these patents.
However, proving patent invalidity or unenforceability can be difficult because issued patents are
presumed valid. Therefore, in the event that we are unable to prevail in an infringement or
invalidity action we will have to either acquire the third-party patents outright or seek a
royalty-bearing license. Royalty-bearing licenses effectively increase production costs and
therefore may materially affect product profitability. Furthermore,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">should the patent holder refuse
to either assign or license us the infringed patents, it may be necessary to cease manufacturing
the
product entirely and/or design around the patents, if possible. In either event, our business would
be harmed and our profitability could be materially adversely impacted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Furthermore, because of the substantial amount of discovery required in connection with
intellectual property litigation, there is a risk that some of our confidential information could
be compromised by disclosure during this type of litigation. In addition, during the course of this
kind of litigation, there could be public announcements of the results of hearings, motions or
other interim proceedings or developments. If securities analysts or investors perceive these
results to be negative, the market price of our common stock may decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition, patent litigation may divert the attention of key personnel and we may not have
sufficient resources to bring these actions to a successful conclusion. At the same time, some of
our competitors may be able to sustain the costs of complex patent litigation more effectively than
we can because they have substantially greater resources. An adverse determination in a judicial or
administrative proceeding or failure to obtain necessary licenses could prevent us from
manufacturing and selling our products or result in substantial monetary damages, which would
adversely affect our business and results of operations and cause the market price of our common
stock to decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We may not obtain trademark registrations for our potential trade names.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have not selected trade names for some of our products and product candidates; therefore, we
have not filed trademark registrations for our potential trade names for our products in all
jurisdictions, nor can we assure that we will be granted registration of those potential trade
names for which we have filed. Although we intend to defend any opposition to our trademark
registrations, no assurance can be given that any of our trademarks will be registered in the
United States or elsewhere or that the use of any of our trademarks will confer a competitive
advantage in the marketplace. Furthermore, even if we are successful in our trademark
registrations, the FDA has its own process for drug nomenclature and its own views concerning
appropriate proprietary names. It also has the power, even after granting market approval, to
request a company to reconsider the name for a product because of evidence of confusion in the
marketplace. We cannot assure you that the FDA or any other regulatory authority will approve of
any of our trademarks or will not request reconsideration of one of our trademarks at some time in
the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RISKS RELATED TO OUR COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our stock price is volatile.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The current turbulence in the U.S. and global financial markets could adversely affect our stock
price and our ability to raise additional capital through the sale of equity and/or debt
securities. The stock market, particularly in recent years, has experienced significant volatility
particularly with respect to pharmaceutical and biotechnology stocks, and this trend may continue.
The volatility of pharmaceutical and biotechnology stocks often does not relate to the operating
performance of the companies represented by the stock. Our business and the market price of our
common stock may be influenced by a large variety of factors, including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the progress and results of our clinical trials;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general economic, political or stock market conditions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>announcements by us or our competitors concerning clinical trial results, acquisitions,
strategic alliances, technological innovations, newly approved commercial products, product
discontinuations, or other developments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the availability of critical materials used in developing and manufacturing AFRESA or
other product candidates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>developments or disputes concerning our patents or proprietary rights;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the expense and time associated with, and the extent of our ultimate success in, securing
regulatory approvals;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>announcements by us concerning our financial condition or operating performance;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in securities analysts&#146; estimates of our financial condition or operating
performance;</TD>
</TR>
</TABLE>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general market conditions and fluctuations for emerging growth and pharmaceutical market
sectors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sales of large blocks of our common stock, including sales by our executive officers,
directors and significant stockholders; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>discussion of AFRESA, our other product candidates, competitors&#146; products, or our stock
price by the financial and scientific press, the healthcare community and online investor
communities such as chat rooms.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any of these risks, as well as other factors, could cause the market price of our common stock to
decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If other biotechnology and biopharmaceutical companies or the securities markets in general
encounter problems, the market price of our common stock could be adversely affected.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Public companies in general and companies included on the Nasdaq Stock Market in particular have
experienced extreme price and volume fluctuations that have often been unrelated or
disproportionate to the operating performance of those companies. There has been particular
volatility in the market prices of securities of biotechnology and other life sciences companies,
and the market prices of these companies have often fluctuated because of problems or successes in
a given market segment or because investor interest has shifted to other segments. These broad
market and industry factors may cause the market price of our common stock to decline, regardless
of our operating performance. We have no control over this volatility and can only focus our
efforts on our own operations, and even these may be affected due to the state of the capital
markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the past, following periods of large price declines in the public market price of a company&#146;s
securities, securities class action litigation has often been initiated against that company.
Litigation of this type could result in substantial costs and diversion of management&#146;s attention
and resources, which would hurt our business. Any adverse determination in litigation could also
subject us to significant liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our Chief Executive Officer and principal stockholder can individually control our direction and
policies, and his interests may be adverse to the interests of our other stockholders. After his
death, his stock will be left to his funding foundations for distribution to various charities, and
we cannot assure you of the manner in which those entities will manage their holdings.*</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At
March&nbsp;30, 2009, Mr.&nbsp;Mann beneficially owned approximately
48.1% of our outstanding shares of
capital stock. We believe members of Mr.&nbsp;Mann&#146;s family beneficially owned at least an additional 1%
of our outstanding shares of common stock, although Mr.&nbsp;Mann does not have voting or investment
power with respect to these shares. By virtue of his holdings, Mr.&nbsp;Mann can and will continue to be
able to effectively control the election of the members of our board of directors, our management
and our affairs and prevent corporate transactions such as mergers, consolidations or the sale of
all or substantially all of our assets that may be favorable from our standpoint or that of our
other stockholders or cause a transaction that we or our other stockholders may view as
unfavorable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Subject to compliance with United States federal and state securities laws, Mr.&nbsp;Mann is free to
sell the shares of our stock he holds at any time. Upon his death, we have been advised by Mr.&nbsp;Mann
that his shares of our capital stock will be left to the Alfred E. Mann Medical Research
Organization, or AEMMRO, and AEM Foundation for Biomedical Engineering, or AEMFBE, not-for-profit
medical research foundations that serve as funding organizations for Mr.&nbsp;Mann&#146;s various charities,
including the Alfred Mann Foundation, or AMF, and the Alfred Mann Institute at the University of
Southern California, the Technion-Israel Institute of Technology, and at Purdue University, and
that may serve as funding organizations for any other charities that he may establish. The AEMMRO
is a membership foundation consisting of six members, including Mr.&nbsp;Mann, his wife, three of his
children and Dr.&nbsp;Joseph Schulman, the chief scientist of the AEMFBE. The AEMFBE is a membership
foundation consisting of five members, including Mr.&nbsp;Mann, his wife, and the same three of his
children. Although we understand that the members of AEMMRO and AEMFBE have been advised of Mr.
Mann&#146;s objectives for these foundations, once Mr.&nbsp;Mann&#146;s shares of our capital stock become the
property of the foundations, we cannot assure you as to how those shares will be distributed or how
they will be voted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The future sale of our common stock or the conversion of our senior convertible notes into common
stock could negatively affect our stock price.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Substantially all of the outstanding shares of our common stock are available for public sale,
subject in some cases to volume and other limitations or delivery of a prospectus. If our common
stockholders sell substantial amounts of common stock in the public market, or the market perceives
that such sales may occur, the market price of our common stock may decline. Likewise the issuance
of additional shares of our common stock upon the conversion of some or all of our senior
convertible notes could adversely affect the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">trading price of our common stock. In addition, the
existence of these notes may encourage short selling of our common stock by
market participants. Furthermore, if we were to include in a company-initiated registration
statement shares held by our stockholders pursuant to the exercise of their registrations rights,
the sale of those shares could impair our ability to raise needed capital by depressing the price
at which we could sell our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition, we will need to raise substantial additional capital in the future to fund our
operations. If we raise additional funds by issuing equity securities or additional convertible
debt, the market price of our common stock may decline and our existing stockholders may experience
significant dilution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition
of us, which may be beneficial to our stockholders, more difficult and may prevent attempts by our
stockholders to replace or remove our current management.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are incorporated in Delaware. Certain anti-takeover provisions under Delaware law and in our
certificate of incorporation and amended and restated bylaws, as currently in effect, may make a
change of control of our company more difficult, even if a change in control would be beneficial to
our stockholders. Our anti-takeover provisions include provisions such as a prohibition on
stockholder actions by written consent, the authority of our board of directors to issue preferred
stock without stockholder approval, and supermajority voting requirements for specified actions. In
addition, we are governed by the provisions of Section&nbsp;203 of the Delaware General Corporation Law,
which generally prohibits stockholders owning 15% or more of our outstanding voting stock from
merging or combining with us in certain circumstances. These provisions may delay or prevent an
acquisition of us, even if the acquisition may be considered beneficial by some of our
stockholders. In addition, they may frustrate or prevent any attempts by our stockholders to
replace or remove our current management by making it more difficult for stockholders to replace
members of our board of directors, which is responsible for appointing the members of our
management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Because we do not expect to pay dividends in the foreseeable future, you must rely on stock
appreciation for any return on your investment.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have paid no cash dividends on any of our capital stock to date, and we currently intend to
retain our future earnings, if any, to fund the development and growth of our business. As a
result, we do not expect to pay any cash dividends in the foreseeable future, and payment of cash
dividends, if any, will also depend on our financial condition, results of operations, capital
requirements and other factors and will be at the discretion of our board of directors.
Furthermore, we may in the future become subject to contractual restrictions on, or prohibitions
against, the payment of dividends. Accordingly, the success of your investment in our common stock
will likely depend entirely upon any future appreciation. There is no guarantee that our common
stock will appreciate in value after the offering or even maintain the price at which you purchased
your shares, and you may not realize a return on your investment in our common stock.
</DIV>
<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There were no sales of equity securities by us that were not registered under the Securities Act of
1933, as amended, during the first quarter of 2009.
</DIV>
<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 3. DEFAULTS UPON SENIOR SECURITIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None.
</DIV>
<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None.
</DIV>
<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 5. OTHER INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None.
</DIV>
<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 6. EXHIBITS</B>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>Description of Document</B></TD>
</TR>

<TR valign="bottom" style="font-size: 6pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">LIP Asset or Business Sale and Purchase Agreement, dated March&nbsp;6, 2009, by and among Pfizer
Manufacturing Frankfurt GmbH, Pfizer Inc., MannKind Deutschland GmbH and MannKind, as amended on
April&nbsp;3, 2009.</TD>
</TR>
<TR valign="bottom" style="font-size: 6pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.2*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insulin Sale and Purchase Agreement, dated March&nbsp;6, 2009, by and among Pfizer Manufacturing
Frankfurt GmbH, Pfizer Inc. and MannKind.</TD>
</TR>
<TR valign="bottom" style="font-size: 6pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Restated Certificate of Incorporation.</TD>
</TR>
<TR valign="bottom" style="font-size: 6pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.2<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Amendment of Amended and Restated Certificate of Incorporation.</TD>
</TR>
<TR valign="bottom" style="font-size: 6pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.3<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Bylaws.</TD>
</TR>
<TR valign="bottom" style="font-size: 6pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Promissory Note, dated February&nbsp;26, 2009 made by MannKind in favor of The Mann Group, LLC.</TD>
</TR>
<TR valign="bottom" style="font-size: 6pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">31.1&nbsp;&nbsp;&nbsp;&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of the Chief Executive Officer Pursuant to Rules&nbsp;13a-14(a) or 15d-14(a) of the
Securities Exchange Act of 1934, as amended.</TD>
</TR>
<TR valign="bottom" style="font-size: 6pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">31.2&nbsp;&nbsp;&nbsp;&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of the Chief Financial Officer Pursuant to Rules&nbsp;13a-14(a) or 15d-14(a) of the
Securities Exchange Act of 1934, as amended.</TD>
</TR>
<TR valign="bottom" style="font-size: 6pt">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">32&nbsp;&nbsp;&nbsp;&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certifications of the Chief Executive Officer and Chief Financial Officer Pursuant to Rules
13a-14(b) or 15d-14(b) of the Securities Exchange Act of 1934, as amended and Section&nbsp;1350 of
Chapter&nbsp;63 of Title 18 of the United States Code (18 U.S.C. &#167; 1350).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential treatment has been requested with respect to certain portions of this exhibit.
Omitted portions have been filed separately with the SEC.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to MannKind&#146;s registration statement on Form S-1 (File No.
333-115020), filed with the SEC</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>on April&nbsp;30, 2004, as amended.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to MannKind&#146;s quarterly report on Form 10-Q, filed with the SEC on
August&nbsp;9, 2007.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to MannKind&#146;s current report on Form 8-K, filed with the SEC on
November&nbsp;19, 2007.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to MannKind&#146;s current report on Form 8-K, filed with the SEC on
February&nbsp;27, 2007.</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<A name="118"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SIGNATURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">Dated: May 4, 2009&nbsp;</TD>
    <TD colspan="3" align="left">MANNKIND CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Matthew J. Pfeffer
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Matthew J. Pfeffer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left"><FONT style="white-space: nowrap"><I>Corporate Vice President and Chief Financial Officer</I></FONT><br>
<I>(Principal Financial and Accounting Officer)</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>2
<FILENAME>v52349exv2w1.htm
<DESCRIPTION>EX-2.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv2w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 2.1</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>***Text Omitted and Filed Separately<BR>
with the Securities and Exchange Commission.<BR>
Confidential Treatment Requested<BR>
Under 17 C.F.R. Sections 200.80(b)(4)<BR>
and 240.24b-2</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="v52349v5234901.gif" alt="(CLIFFORD CHANCE LOGO)">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">Execution Version</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">PFIZER MANUFACTURING FRANKFURT GMBH
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">PFIZER INC.

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">RM 2875 VERM&#214;GENSVERWALTUNGS GMBH<BR>
(in future: MannKind Deutschland GmbH)

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">AND

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">MANNKIND CORPORATION

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">LIP ASSET OR BUSINESS SALE AND PURCHASE AGREEMENT

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="91%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitions and Interpretation
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sales and Purchases
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Excluded Assets and Apportionment of Liabilities
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Price, Consideration Shares
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conditions to Closing
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">6.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regulatory Filings and Approvals
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">7.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pre-Closing Undertakings
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">8.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Statutory Transfer of Employees in the Event of a LIP Business Sale
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">9.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">LIP Asset Sale Closing
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">LIP Business Sale Closing
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">41</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">11.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Seller&#146;s Guarantees
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">44</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">12.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchaser&#146;s and MannKind Corp.&#146;s Guarantees
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">13.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indemnification
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">14.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conduct of Claims
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">15.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Confirmations of the Purchaser
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">16.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Undertakings
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">17.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Contracts in the Event of a LIP Business Sale
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">54</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">18.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Future Relationship Between the Pfizer Group and the Business, Parent Guarantee
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">19.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notices
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">20.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Confidentiality, Announcements
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">57</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">21.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assignment Restrictions
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">58</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">22.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Costs and Transfer Taxes
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">58</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Final Provisions
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>THIS LIP ASSET OR BUSINESS SALE AND PURCHASE AGREEMENT </B>is made on 6&nbsp;March&nbsp;2009
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>BETWEEN</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(1)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Pfizer Manufacturing Frankfurt GmbH</B>, with statutory seat in Frankfurt am Main, Federal
Republic of Germany, registered in the commercial register at the local court of Frankfurt am
Main under HRB 81803 (the &#147;<B>Seller</B>&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(2)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Pfizer Inc.</B>, a Delaware corporation with principal executive offices at 235 East 42nd Street,
New York, New York 10017, USA (&#147;<B>Pfizer Inc.</B>&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(3)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>RM 2875 Verm&#246;gensverwaltungs GmbH </B>(in the future: <B>MannKind Deutschland GmbH</B>), with statutory
seat in Munich, Federal Republic of Germany, registered in the commercial register at the
local court of Munich under HRB&nbsp;177304 (the &#147;<B>Purchaser</B>&#148;); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(4)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>MannKind Corporation, </B>a Delaware corporation with principal executive offices at 28903 North
Avenue Paine, Valencia, CA 91355, USA (&#147;<B>MannKind Corp.</B>&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>WHEREAS</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller, legal successor of Pfizer Manufacturing Frankfurt GmbH &#038; Co. KG (formerly Diabel
GmbH &#038; Co KG), owns and operates a large insulin manufacturing plant in the Industriepark
Hoechst. The plant is located on a plot of land for which the Seller holds a heritable
building right (<I>Erbbaurecht</I>). In addition, the Seller has an option to acquire one,
respectively two, heritable building right(s) for an adjacent part of a plot of land to
construct a pharmaceutical manufacturing plant on such part of the plot on the basis of an
option agreement with the operator of the Industriepark Hoechst, i.e. Infraserv GmbH &#038; Co.
Hoechst KG.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller and the Purchaser acknowledge that (i)&nbsp;the sale of the heritable building right as
well as the sale of the option right, mentioned under Section&nbsp;1 above, require the consent of
Infraserv GmbH &#038; Co. Hoechst KG and (ii)&nbsp;the sale of the heritable building right is subject
to a right of first refusal of Sanofi-Aventis Deutschland GmbH (formerly trading as &#147;Hoechst
Marion Roussel Deutschland GmbH&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prior to entering into this Agreement the Purchaser has conducted a thorough review of the
Seller&#146;s business of manufacturing bulk insulin at the large insulin manufacturing plant.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If Infraserv GmbH &#038; Co. Hoechst KG does not consent to the sale and transfer of the heritable
building right as well as the sale of the option right by 3 April&nbsp;2009 the Seller desires to
sell and the Purchaser desires to purchase certain assets pertaining to the manufacturing of
bulk insulin according to the terms and conditions of this Agreement. The Parties acknowledge
that, in this event, the Purchaser will not continue the operation of the large insulin
manufacturing plant, but will remove the acquired assets and dismantle (<I>abbauen</I>) the large
insulin manufacturing plant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If Infraserv GmbH &#038; Co. Hoechst KG consents to the sale and transfer of the heritable
building right as well as the sale of the option right by 3 April&nbsp;2009, the Seller desires to
sell and the Purchaser desires to purchase, subject to the right of first refusal of
Sanofi-Aventis Deutschland GmbH, the heritable building right as well as the option right
including certain assets pertaining to the production of bulk insulin according to the terms
and conditions of this Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOW, therefore, the Parties agree as follows:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DEFINITIONS AND INTERPRETATION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Capitalised terms and expressions used in this Agreement shall be interpreted as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the LIP Asset or Business Sale and
Purchase Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Actual Demolition
Cost</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;16.2.6;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>AktG</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the German Stock Corporation Act
(<I>Aktiengesetz</I>);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>AO</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the German General Tax Act
(<I>Abgabenordnung</I>);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Assets</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the LIP Assets or the LIP Business
Assets, as the case may be;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Bank Guarantee</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean an insolvency remote (<I>insovenzsicher</I>)
bank guarantee issued by the Committed Bank or any
other reputable bank of international standing;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>BGB</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the German Civil Code (<I>B&#252;rgerliches
Gesetzbuch</I>);</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Breach</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean a Seller&#146;s or Purchaser&#146;s Guarantee
being untrue or incorrect or a Seller&#146;s or
Purchaser&#146;s covenant being breached;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Buildings</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;12.2.2
of Annex 1.1(Q);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Bulk Insulin
Inventory</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all of Seller&#146;s inventory of bulk
insulin manufactured until the LIP Asset Sale
Closing Date or the LIP Business Sale Closing
Date, as the case may be, as specified by batch
numbers listed on <B>Annex 1.1(B)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Bulk Insulin
IP-Rights</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all Intellectual Property legally or
beneficially owned (including by way of license by
a third party) by the Seller (or, for the
avoidance of doubt, an entity of the Pfizer Group)
at the Closing Date, 00:00 h, and all Intellectual
Property used by the Seller at the Closing date,
00:00 h, or which was created, generated or
acquired for use by the Seller at the Closing
Date, 00:00 h in each case relating to the
manufacturing of bulk insulin, including, for the
avoidance of doubt, (i)&nbsp;the rights to the DMF, all
records relating to the DMF, and (ii)&nbsp;all of the
Seller&#146;s rights under the License Agreement and
(iii)&nbsp;any records and assets transferred to the
Seller under the License Agreement, and (iv)&nbsp;any
rights, records and assets legally or beneficially
owned or used by the Seller which were originally
acquired by the Pfizer Group under the EPA;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Business Days</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean any day other than a Saturday or
Sunday, on which the banks are open for regular
business in New York City, New York, United States
of America and Frankfurt am Main, Federal Republic
of Germany;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Business Proposal</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;7.5;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Business</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the business of manufacturing bulk
insulin at the LIP substantially as conducted by
the Seller prior to the transfer of the production
of the LIP in a stand-by status and until the
Closing Date;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Cash Notification</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;7.11;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Claim</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean any claim under or for breach of this
Agreement, including any claim for damages or
indemnification due to a Seller&#146;s Guarantee or
Purchaser&#146;s Guarantee being incorrect or a
covenant being breached;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Closing Actions</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the actions set out in Section&nbsp;9.2
collectively or individually;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Closing Condition(s)</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;5.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Closing Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the LIP Asset Sale Closing Date or the
LIP Business Sale Closing Date, as the case may
be;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Closing Memorandum</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;9.3;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Closing</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the consummation of all of the LIP
Asset Sale Closing Actions or the LIP Business
Sale Closing Actions, as the case may be;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Collective Agreements</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;8.2 of
Annex 1.1(Q);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Committed Bank</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean Merrill Lynch who has issued the
commitment letter, a copy of which is attached as
<B>Annex 1.1(C)</B>, in relation to the Bank Guarantee;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Common Stock</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the shares of common stock, par value
USD 0.01 per share, of MannKind Corp.;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Compliance-Related
Matters</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;11.4.3;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Condition Precedent</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;2.2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Condition Subsequent</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;2.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Consideration Shares</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the Common Stock to be issued or issued
to the Seller in accordance with the terms of this
Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Contingent Value</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the contingent value
rights agreement</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Rights Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">substantially in the form of <B>Annex 1.1(D)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Continuing Employees</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;8.11;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Contracts</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the contracts to which the Seller is a
party and which relate to the Business and are
unperformed (wholly or partly) at the LIP Business
Sale Closing Date and which are listed in <B>Annex
1.1(E)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Data Harvest</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;1.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Data Room</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the physical data room of documents
provided by the Seller to the Purchaser for
inspection between 3 December&nbsp;2008 and 3 March
2009 as updated until the Closing Date;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Data Room&nbsp;Index</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the data room index in <B>Annex 1.1(F)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Data Trustee</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;1.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Demolition Costs</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the aggregate costs arising and
incurred by the Seller, acting prudently and using
its best efforts to mitigate, in connection with
the measures described under Sections&nbsp;16.2.2
through 16.2.5 from the LIP Asset Sale Closing
Date until finalization of the measures described
under Sections&nbsp;16.2.2 through 16.2.5;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Demolition Cost
Payment</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;9.2.2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>DMF</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the drug master file for the Bulk
Insulin Inventory containing all chemistry,
manufacturing and controls data and, in cases
where required by specific regulatory agencies,
additional data on file with any regulatory
authority;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Down Payment</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;7.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Employees</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all of the employees (without
apprentices) working in the LIP as of November&nbsp;6,
2008 and, in the event of the LIP Business Sale,
to be transferred from the Seller to the Purchaser
at Closing by operation of law pursuant to section
613a BGB; a list of the employees working in the
LIP as of the date</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">hereof, including name, birth date, marital
status, number of children, education, hire date,
remuneration and other benefits, description of
work place, function, and as far as applicable
maternity leave, child care leave, certified
disablement (<I>Schwerbehinderung oder
Gleichstellung</I>) and membership in an employee
representative body is attached as <B>Annex 1.1(G)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Employee-Related
Matters</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;11.4.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environment Law</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;7.2 of
Annex 1.1(Q);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environment-Related
Matters</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;11.4.2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>EPA</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the Exubera Purchase Agreement between
Sanofi-Aventis Deutschland GmbH and certain of its
affiliates named therein as sellers and PFIZER and
Pfizer Manufacturing Deutschland GmbH (under its
former name and form &#147;Heinrich Mack Nachf. GmbH &#038;
Co. KG&#148;) as buyers, dated 13 January&nbsp;2006
(notarial deed no. 10/2006 and 11/2006 of public
notary Wendelin von Ketelhodt, Frankfurt am Main)
as amended;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Equipment</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the fixed plant and machinery owned by
the Seller which is located on the Property and
which was used in the manufacturing of bulk
insulin, including those which qualifies as
accessories (<I>Zubeh&#246;r</I>) in the meaning of Section&nbsp;97
BGB or as associated with the Property for a
transitional period of time (<I>nur zum
vor&#252;bergehenden Zweck verbunden,
Scheinbestandteil</I>) in the meaning of Section&nbsp;95
BGB, for the avoidance of doubt, excluding
Excluded Assets;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Escrow Amount</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;8.11;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Exchange Act</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the U.S. Securities and Exchange Act of
1934, together with the rules and regulations
thereunder, as amended;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Excluded Assets</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;3.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Final Drop Dead Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;5.5;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Fixed Assets</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the (i)&nbsp;tangible assets as defined in
section 266 para 2 A II 2, 3 and 4 HGB and listed,
as of 19 February&nbsp;2009, in <B>Annex 1.1(H)</B>, and (ii)
stocks (including raw material for the production
of bulk insulin) as defined in section 266 para 2
B I HGB and listed, as of 18 February&nbsp;2009 in
<B>Annex 1.1(I), </B>in each case excluding the (a)&nbsp;Bulk
Insulin Inventory and (b)&nbsp;tangible assets and
stocks sold, destroyed or otherwise disposed of by
the Business in the ordinary course of business by
the Closing Date, and including the tangible
assets and stocks acquired by the Business by the
Closing Date;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>GBO</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the German Land Register Code
(<I>Grundbuchordnung</I>);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>German Federal Cartel
Office</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the German Federal Cartel Office
(<I>Bundeskartellamt</I>) with its seat in Bonn, Federal
Republic of Germany;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>GWB</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the German Act Against Restraints on
Competition (<I>Gesetz gegen
Wettbewerbsbeschr&#228;nkungen</I>);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>HBR 1998</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall collectively mean (i)&nbsp;the offer to enter
into a heritable building right agreement
(<I>Erbbaurechtsvertrag</I>) recorded on 22 October&nbsp;1998
by the notary Michael Spring with his registered
office in Frankfurt/Main (deed no. 530/1998) and
(ii)&nbsp;its acceptance dated 9 December&nbsp;1998 recorded
by the notary Michael Spring with his registered
office in Frankfurt/Main (deed no. 678/1998);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>HBR 2006</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the amendment to the HBR 1998, recorded
on 29 September&nbsp;2006 by the notary Dr.&nbsp;Annegret
B&#252;rkle with her registered office in
Frankfurt/Main (deed no. B 967/2006);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>HBR Transfer</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the heritable building right transfer
agreement substantially in the form set out in
<B>An-</B></TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
<B>nex 1.1(J)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Heritable Building
Right Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the agreement on a heritable building
right (<I>Erbbaurecht</I>) as agreed by the HBR 1998 and
the HBR 2006;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Heritable Building
Right Register</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the heritable building right register
(<I>Erbbaugrundbuch</I>) of Schwanheim, at the local
court (<I>Amtsgericht</I>) Frankfurt branch Hoechst,
folio 8487;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Heritable Building
Right</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the heritable building right
(<I>Erbbaurecht</I>) encumbering the Property in favour
of the Seller, granted pursuant to the Heritable
Building Right Agreement, registered under serial
no. 35 in section II of the Land Register and in
the Heritable Building Right Register as described
in <B>Annex 1.1(K)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>HGB</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the German Commercial Code
(<I>Handelsgesetzbuch</I>);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Indemnitee</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;14.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Indemnitor</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;14.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Information Letter</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;8.2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Information</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;11.3;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Infraserv</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean Infraserv GmbH &#038; Co. Hoechst KG, with
its registered office in Frankfurt/Main,
registered in the commercial register
(<I>Handelsregister</I>) at the local court (<I>Amtsgericht</I>)
Frankfurt/Main under HRA 28182, the operator of
the Industriepark Hoechst;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Infraserv Consent</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;7.2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Infraserv Due Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean 3 April&nbsp;2009 or such other later date
as agreed between the Parties in writing;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Intellectual Property</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all industrial and intellectual
property rights, whether registered or not,
including pending applications for registration of
such rights and the right to apply for
registration or extension of such rights
including, without limitation, patents (includ-</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ing continuation, divisional, continuation in part,
re-examination and reissue patent applications,
and any patent issuing therefrom), petty patents,
utility models, design patents, registered and
unregistered designs, copyright (including moral
rights and neighboring rights), integrated
circuits and other sui generis rights, trade
marks, trading names, service marks, logos, the
get-up of products and packaging, geographical
indications and applications and other signs used
in trade, internet domain names, unique marketing
codes, rights in know-how, mask works, inventions
(including employee inventions (<I>Diensterfindungen</I>)
that have been claimed (<I>in Anspruch genommen</I>) by
the Seller (or as to which the Seller has the
right to claim) in accordance with the German Law
on Employee Inventions
(<I>Arbeitnehmererfindungsgesetz</I>) or comparable
foreign laws), discoveries, methods, processes,
techniques, methodologies, formulae, algorithms,
technical data (such as manufacturing
documentation), specifications, research and
development information, technology, data bases,
source codes in each case that derives economic
value (actual or potential) from not being
generally known to other persons who can obtain
economic value from its disclosure as well as
object codes, flow charts, manuals, product
documentation, publicity rights and any rights of
the same or similar effect or nature as any of the
foregoing anywhere in the world;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>IP-Related-Matters</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">have the meaning set forth in Section&nbsp;11.4.4;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Land Register</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the land register (<I>Grundbuch</I>) of
Schwanheim at the local court (<I>Amtsgericht</I>) of
Frankfurt branch Hoechst, folio 8178;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Lease Agreements</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the lease agreements attached in
Schedule&nbsp;13.1 to Annex 1.1(Q);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>License Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the amended and restated license
agreement between Sanofi-Aventis and the Seller
(under its former name and form Diabel GmbH &#038; Co.
KG) dated 28 February&nbsp;2006;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the Seller&#146;s large insulin plant for
the manufacturing of bulk insulin presently
located at Industriepark H&#246;chst, Geb. FG 680,
65926 Frankfurt am Main, Germany;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Assets</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;2.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Asset Benefits</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;2.1.5;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Asset Sale</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the sale and purchase of the LIP Assets
pursuant to Section&nbsp;2.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Asset Sale
Closing</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the consummation of the LIP Asset Sale
Closing Actions;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Asset Sale
Closing Actions</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the actions to be performed on the LIP
Asset Sale Closing Date according to Section&nbsp;9.2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Asset Sale
Closing Conditions</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the Closing Conditions set out in
Sections&nbsp;5.1.1 through 5.1.3;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Asset Sale
Closing Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;9.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Business Assets</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;2.2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Business Sale</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the sale and purchase of the LIP
Business Assets pursuant to Section&nbsp;2.2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Business Sale
Closing</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the consummation of the LIP Business
Sale Closing Actions;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Business Sale
Closing Actions</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the actions to be performed on the LIP
Business Sale Closing Date according to Section
10.2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Business Sale
Closing Conditions</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the Closing Conditions set out in
Sections&nbsp;5.1.1 through 5.1.4;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Business Sale
Closing Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;10.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIP Records</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all of the Seller&#146;s books and records
relating to the Fixed Assets and the Equipment,
excluding, any records regarding the Employees or
Tax matters of the Business;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Logfile</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Shall mean the logfile in <B>Annex 1.1(L)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>MannKind Corp.</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in the lead-in to
this Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>MannKind Corp.&#146;s
Guarantees</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all or any of MannKind Corp.&#146;s
statements set forth in Annex 12(B);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Merger Control
Clearance</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;6.4;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>NASDAQ Notification
Form</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;4.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Notary</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean public notary Dr.&nbsp;Wolfgang Hanf,
Frankfurt am Main, Germany;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Notary Account</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the trust account of the Notary
notified by the Notary to the Parties;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Notification</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the notification to be sent to
Sanofi-Aventis regarding the exercise of the ROFR
substantially in the form set out in <B>Annex 1.1(M)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Objection Period</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;8.4;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Option Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the agreement regarding the Option
Right between Infraserv and the Seller dated 29
September&nbsp;2006 (notarial deed no. B 968/2006 of
notary Dr.&nbsp;Annegret B&#252;rkle, Frankfurt am Main);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Option Plot</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean this part of the real property
(<I>Grundst&#252;ck</I>) plot (<I>Flur</I>) no. 29, subplot
(<I>Flurst&#252;ck</I>) 4/50, registered under serial no. 78
in the Land Register for which the Option Right is
granted and which is defined in annex 2 to the
Option Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Option Right</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the Seller&#146;s right to acquire one,
respectively two, heritable building right(s)
(<I>Erbbaurechte</I>) regarding the Option Plot to
construct a pharmaceutical manufacturing plant
under and in accordance with the Option Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Option Right
Prenotation</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the prenotation (<I>Vormerkung</I>) with
regard to the Option Right, registered under
serial no. 41 in</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">section II of the Land Register;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Option Right Transfer
Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the agreement to transfer legal title
to the Option Right and the Option Right
Prenotation substantially in the form set out in
<B>Annex 1.1(N)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Other LIP Assets</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the property and assets described in
Section&nbsp;2.1.6;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Party</B>&#148; or &#147;<B>Parties</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the Seller, the Purchaser, Pfizer Inc.,
and MannKind Corp., collectively or individually;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Pension Schemes</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all plans (<I>Vereinbarungen und Zusagen</I>),
whether of collective or individual nature, and
including, without limitation, commitments based
on works custom (<I>betriebliche &#220;bung</I>), regarding
company pensions (<I>betriebliche Altersversorgung</I>),
under which the Seller has any obligations
vis-&#224;-vis the Employees and/or their dependants to
provide company pension benefits, whether directly
or via an external funding vehicle (including,
without limitation, Direktversicherung,
Pensionskasse, Pensionsfonds and
Unterst&#252;tzungskasse);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Person</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean an individual, corporation,
partnership, firm, limited liability company,
association, trust, unincorporated or other
organization, entity or group;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Pfizer Group</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all affiliates (<I>verbundene Unternehmen</I>)
of the Seller in the meaning of Sections&nbsp;15 et
seq. AktG except for the Seller;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Pfizer Inc.</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in the lead-in to
this Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Prepayments</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;16.2.6;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Prolongation
Prenotation</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the prenotation (<I>Vormerkung</I>) with
regard to the prolongation of the Heritable
Building Right, which is registered in section II
of the Land Register under serial no. 42;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Property</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the real property (<I>Grundst&#252;ck</I>), which
is registered in the Land Register under serial
no. 104, boundary (<I>Gemarkung</I>) Schwanheim, plot
(<I>Flur</I>) 29,</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">subplot (<I>Flurst&#252;ck</I>) 4/32, building and undeveloped
area (<I>Geb&#228;ude- und Freifl&#228;che</I>), industrial park
(<I>Industriepark) </I>Hoechst-S&#252;d, size 20,142 sqm;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>PSR</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;8.5;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchase Price</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;4.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchaser</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in the lead-in to
this Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchaser Options</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Annex 12(B),
Part II, Section&nbsp;1.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchaser SEC
Documents</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Annex 12(B),
Part II, Section&nbsp;3;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchaser&#146;s
Guarantees</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all or any of the Purchaser&#146;s statements
set forth in Annex 12(A);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchaser&#146;s Bank</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the following bank account:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Account</B>&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Real-Property-Related
Matters</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;11.4.5;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Records</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all of the Seller&#146;s books and records
relating to the Business and the Assets, including,
without limitation, books, records, files and
documents relating to the Related IP-Rights, the
Employees (including, without limitation, work
agreements (<I>Betriebsvereinbarungen</I>) and union
agreements (<I>Tarifvertr&#228;ge</I>), and Tax matters);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Registration Rights
Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the registration rights agreement
substantially in the form of <B>Annex 1.1(O)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Related IP-Rights</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all Intellectual Property legally or
beneficially owned (including by way of licence by
a third</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">party) by the Seller and used in connection with,
or otherwise necessary to run, the Business at the
Closing Date and all Intellectual Property used in
connection with, or otherwise necessary to run,
the Business at the Closing Date or which was
created, generated or acquired for use in
connection with the Business at the Closing Date
excluding the Bulk Insulin IP-Rights;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>ROFR</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the in rem right of first refusal
(<I>dingliches Vorkaufsrecht</I>) of Sanofi-Aventis with
respect to the sale of the Heritable Building
Right, registered in section II of the Heritable
Building Right Register under serial no. 13, which
has been granted pursuant to Section&nbsp;VI of the HBR
2006;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>ROFR Exercise Notice</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set out in Section&nbsp;5.1.4;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>ROFR-Property
Transfer Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the agreement to transfer legal title
to the ROFR-Property substantially in the form set
out in <B>Annex 1.1(P)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>ROFR-Property</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the in rem right of first refusal
(<I>dingliches Vorkaufsrecht</I>) of the Seller with
respect to any case of sale of the Property during
the term of the Heritable Building Right,
registered in section II of the Land Register
under serial no. 43, which has been granted
pursuant to Section&nbsp;VII of HBR 2006;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Sanofi-Aventis</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean Sanofi-Aventis Deutschland GmbH
(formerly trading as &#147;Hoechst Marion Roussel
Deutschland GmbH&#148;) with its registered office in
Frankfurt am Main, registered in the commercial
register of the local court of Frankfurt am Main
under HRB 40661;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>SEC</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the U.S. Securities and Exchange
Commission;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Securities Act</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the U.S. Securities Act of 1933,
together with the rules and regulations
thereunder, as amended;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Seller</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in the lead-in to
this</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement;</TD>
</TR>


<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Seller&#146;s Bank
Account</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the following bank account to be used
via MT103:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">with separate cover message (MT202) to &#091;...***...&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">or any other bank account or payment instructions
communicated by the Seller to the Purchaser in
writing not less than five Business Days prior to
the due date of the relevant payment;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Seller&#146;s Guarantees</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all or any of the Seller&#146;s statements
set forth in <B>Annex 1.1(Q)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Severance Funds
Payment</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;9.2.4;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Shareholder Vote
Requirement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Annex 12(B),
Part II, Section&nbsp;2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Stock Price</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the volume weighted average price per
share of Common Stock on the NASDAQ Global Market
for the five trading days immediately preceding
the last trading day immediately preceding the
Closing Date as reported on Bloomberg;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Target Headcount</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;7.5;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Tax</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean any tax (<I>Steuer</I>) within the meaning of
Section&nbsp;3 AO or equivalent tax under the laws of
any other jurisdiction and any social security
contribution together with any interest, fine,
penalty, surcharge or addition of the kind set out
in Section&nbsp;3 paragraph 4 AO;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Termination Payment</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;8.9;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Cap</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Termination Payment
Reimbursement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;8.10;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Termination Payments</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all payments to which Employees ceasing
to be employed in the Business are entitled to
irrespective of whether to be paid by the Seller
or the Purchaser, including severance payments
pursuant to and other costs resulting from a
future social plan to be concluded with the works
council (<I>Betriebsrat</I>) representing the Employees
(such as costs for outplacement measures and a
possible transfer company) and costs in lieu of
notice or costs for remuneration and social
contributions during the notice period of the
respective Employees;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Title and Capacity
Claim</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean a Claim for Breach of the Seller&#146;s
Guarantees set out in Sections&nbsp;1 and 2 of
Annex 1.1(Q);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Trade Payables</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all amounts owing to trade creditors by
the Seller in connection with the Business as at
the Closing Date in respect of goods or services
supplied to the Seller before the Closing Date
(whether or not invoiced and whether or not due
and payable at that time);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Transfer Agreements</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean (i)&nbsp;in the case of a LIP Business Sale,
collectively the HBR Transfer Agreement, the
Option Right Transfer Agreement, and the
ROFR-Property Transfer Agreement, as well as, with
regard to the other Assets listed in Section&nbsp;2.2,
the Closing Memorandum or any other agreements or
documents executed between the Seller and the
Purchaser regarding transfer of legal title in any
of the LIP Business Assets or (ii)&nbsp;in the case of
a LIP Asset Deal, the Closing Memorandum or any
other agreements or documents executed between the
Seller and the Purchaser regarding transfer of
legal title in any of the LIP Assets;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Transferred
Employ-</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;8.6;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>ees</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Transition Services
Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the transition services agreement
regarding certain services to be provided by the
Seller and certain of its affiliates to the
Purchaser for a period of up to 3&nbsp;months after the
LIP Business Sale Closing Date substantially in
the form as attached in <B>Annex 1.1(R)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>UStG</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the German Value Added Tax Act
(<I>Umsatzsteuergesetz)</I>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>VAT</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean German value added tax (<I>Umsatzsteuer</I>);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Works Council
Discussions</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;7.5;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>ZPO</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the German Civil Procedure Act
(<I>Zivilprozessordnung</I>).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In this Agreement, unless the context otherwise requires:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">1.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>headings are for convenience only and do not affect the interpretation of
this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">1.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to any term in the singular shall, if the context so demands,
also include the plural and vice versa;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">1.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to one gender includes all genders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">1.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to EUR or Euro are references to the lawful currency of the
member states of the European Union;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">1.2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to USD or US Dollar are references to the lawful currency of the
United States of America;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">1.2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>where a German term has been inserted in parenthesis and/or italics the
German term alone (and not the English term to which it relates) shall be
authoritative for the purpose of the interpretation of the relevant English term in
this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">1.2.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to any German legal term for any action, remedy, method of
judicial proceeding, legal document, legal status, court, official or any other legal
concept shall, in respect of any jurisdiction other than the Federal Republic of
Germany, be interpreted to include the legal concept</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>which most closely corresponds in that jurisdiction to the German legal term; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">1.2.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to any statute or statutory provision shall be construed as a
reference to the same as it has been in force as of the date hereof, unless indicated
otherwise.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Annexes and Schedules of this Agreement form an integral part of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SALES AND PURCHASES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller hereby sells (<I>verkauft</I>) to the Purchaser and the Purchaser hereby purchases
(<I>kauft</I>), in each case with economic effect (<I>wirtschaftliche Wirkung</I>) from the Closing Date and
subject to the Condition Subsequent, legal title to the following assets, other than Excluded
Assets (collectively the &#147;<B>LIP Assets</B>&#148;) upon the terms and conditions of this Agreement:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Fixed Assets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Equipment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the LIP Records;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Related IP-Rights;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.1.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the benefit of any amount to which the Seller is entitled from a person
(including, without limitation, an insurer) in respect of damage or injury to any of
the Fixed Assets or the Equipment other than an amount spent before the Closing Date
in repairing such damage or injury (the &#147;<B>LIP Asset Benefits</B>&#148;); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.1.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all other property and assets owned by the Seller and used in connection
with the technical operation of the Fixed Assets or the Equipment (&#147;<B>Other LIP Assets</B>&#148;)
at the Closing Date.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The LIP Asset Sale shall be subject to the condition subsequent (<I>aufl&#246;send bedingt</I>) that
the Infraserv Consent is duly granted on or before the Infraserv Due Date (the &#147;<B>Condition
Subsequent</B>&#148;). The Parties take the view that the LIP Asset Sale does not constitute the
sale of a business as a going concern.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller hereby sells (<I>verkauft</I>) to the Purchaser and the Purchaser hereby purchases
(<I>kauft</I>), in each case with economic effect (<I>wirtschaftliche Wirkung</I>) from the Closing Date and
subject to the Condition Precedent, the Business as a going</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>concern and legal title to the following assets, other than Excluded Assets
(collectively the &#147;<B>LIP Business Assets</B>&#148;) upon the terms and conditions of this
Agreement:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Heritable Building Right;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Option Right;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Fixed Assets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Equipment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Records;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the benefit (subject to the burden) of the Contracts;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.2.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Prolongation Prenotation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.2.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Option Right Prenotation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.2.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ROFR-Property;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.2.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Related IP-Rights;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.2.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the benefit of any amount to which the Seller is entitled from a person (including,
without limitation, an insurer) in respect of damage or injury to any of the assets
referred to under Sections&nbsp;2.2.1 to 2.2.5 other than an amount spent before the
Closing Date in repairing such damage or injury; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">2.2.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all other property and assets owned by the Seller and used in connection with the
Business at the Closing Date.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The sale and purchase of the LIP Business Sale shall be subject to the condition precedent
(<I>aufschiebend bedingt</I>) that the Infraserv Consent is duly granted on or before the
Infraserv Due Date (the &#147;<B>Condition Precedent</B>&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The acting notary confirms the accuracy and completeness of the information in Annex&nbsp;1.1(K)
on the Heritable Building Right on the basis of his inspection of the Land Register and the
Heritable Building Right Register by electronic means on 6 March&nbsp;2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent to which there is a reservation of title in favour of third parties attaching
to Assets or there has been a transfer of ownership of any Assets by way of security
(<I>Sicherungs&#252;bereignung</I>), the Seller shall perform and fulfil and shall</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>continue to be obliged to perform and fulfil after the Closing Date the secured obligations
vis-&#224;-vis the relevant third parties in accordance with the underlying agreements and past
practice. In such case, the Parties agree that the remainder (<I>Anwartschaftsrecht</I>) to the
transfer or re-transfer of the ownership of the respective Asset shall hereby be sold.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties agree that the transfer in rem (<I>dinglich</I>) of the Assets shall not be effected by
virtue of this Agreement, but shall take place on the Closing Date by execution of the
Transfer Agreements in due form.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>EXCLUDED ASSETS AND APPORTIONMENT OF LIABILITIES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Assets shall specifically not comprise any of</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bulk Insulin Inventory; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bulk Insulin IP-Rights;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(the &#147;<B>Excluded Assets</B>&#148;) and the Excluded Assets shall not be sold under this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>remains responsible for all liabilities incurred by it before the Closing
Date including, without limitation, the Trade Payables and all outgoings and expenses
owed in connection with the Business or the Assets before the Closing Date whether or
not invoiced and whether or not due and payable at that time (including, without
limitation, the rents, rates and service charges payable in respect of the Property
and/or the Heritable Building Right);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>remains responsible for all claims by any person outstanding against it as
at the Closing Date or arising by reason of any act or omission by it before and up to
the Closing Date (including, without limitation, all claims by any person in
connection with any goods or services supplied by the Seller before the Closing Date);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shall promptly pay those liabilities referred to in Section&nbsp;3.2.1 and
promptly settle those claims referred to in Section&nbsp;3.2.2;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shall indemnify the Purchaser on demand against each loss, liability and
cost which the Purchaser incurs as a result of the Seller&#146;s failure to comply with its
obligations under Sections&nbsp;3.2.1, 3.2.2 and 3.2.3 and against any other liability
arising out of or in connection with the ownership or</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>operation of the Business or the Assets before and up to the Closing Date,
including, without limitation, each loss, liability or cost incurred as a result of
defending or settling a claim alleging such a liability but excluding any liability
of the Purchaser arising under the express terms of this Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser, in case of a LIP Asset Sale Closing, subject to Section&nbsp;16.2:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is responsible for all liabilities incurred by it in connection with the LIP
Assets after the Closing Date including, without limitation, all outgoings and
expenses owed in connection with the LIP Assets after the Closing Date;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shall indemnify the Seller on demand against each loss, liability and cost
which the Seller incurs as a result of the Purchaser&#146;s failure to comply with its
obligations under clause&nbsp;3.3.1 and against any other liability arising out of or in
connection with the ownership or operation of the LIP Assets after the Closing Date,
including, without limitation, each loss, liability or cost incurred as a result of
defending or settling a claim alleging such a liability but excluding any liability of
the Seller arising under the express terms of this Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a LIP Business Sale, if a payment of outgoings or expenses in respect of the
Business or the Assets for a period covering both before and after the Closing Date has been
or is made by:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller, the Purchaser shall pay the Seller an amount equal to that
proportion of the payment that relates to the period after the Closing Date; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Purchaser, the Seller shall pay the Purchaser an amount equal to that
proportion of the payment that relates to the period before the Closing Date.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a LIP Asset Sale and subject to Section&nbsp;16.2, if a payment of outgoings or
expenses in respect of the LIP&nbsp;Assets for a period covering both before and after the Closing
Date has been or is made by:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller, the Purchaser shall pay the Seller an amount equal to that
proportion of the payment that relates to the period after the Closing Date; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Purchaser, the Seller shall pay the Purchaser an amount equal to that
proportion of the payment that relates to the period before the Closing Date.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a LIP Business Sale, if a payment in respect of the Business or the
Assets for a period covering both before and after the Closing Date has been or is received
by:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller, the Seller is entitled to retain the proportion of the payment
that relates to the period before the Closing Date and shall pay the Purchaser an
amount equal to the remainder; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Purchaser, the Purchaser is entitled to retain the proportion of the
payment that relates to the period after the Closing Date and shall pay the Seller an
amount equal to the remainder.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a LIP Asset Sale and subject to Section&nbsp;16.2, if a payment in respect of the
LIP&nbsp;Assets for a period covering both before and after the Closing Date has been or is
received by:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.7.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller, the Seller is entitled to retain the proportion of the payment
that relates to the period before the Closing Date and shall pay the Purchaser an
amount equal to the remainder; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">3.7.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Purchaser, the Purchaser is entitled to retain the proportion of the
payment that relates to the period after the Closing Date and shall pay the Seller an
amount equal to the remainder.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The amounts to be paid by the Parties under Sections&nbsp;3.4 through 3.5 shall be notified by the
Party making or receiving payment from the third party giving rise to the relevant amount to
be paid to the other Party without undue delay and provide evidence of the amount paid or
received and the reason for such payment or receipt. A Party owing an amount under
Sections&nbsp;3.6 through 3.7 shall pay the other Party that amount within 5 Business Days of
receipt of the notice together with reasonable evidence of such liability or costs incurred or
payments duly made pursuant to the preceding sentence.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PURCHASE PRICE, CONSIDERATION SHARES</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">In consideration of the Assets and rights acquired under this Agreement, the Purchaser shall pay a
purchase price of &#091;...***...&#093; (the &#147;<B>Purchase Price</B>&#148;) payable, at the Purchaser&#146;s discretion, and, in
each case, subject to an increase pursuant to Section&nbsp;4.2,
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">4.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in cash; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">4.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by delivering (or cause to be delivered) to the Seller the number of
Consideration Shares that is equal to the Purchase Price divided by the Stock Price;</TD>
</TR>



</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">4.1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>through a combination of cash and by delivering (or cause to be delivered)
Consideration Shares (each such Consideration Share valued for purposes of this
Section&nbsp;4.1.3 equal to the Stock Price), such that the combination of cash and
non-cash consideration has an aggregate value equal to the Purchase Price,</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provided, however, that the Purchaser shall only be entitled to pay the Purchase Price
pursuant to Section&nbsp;4.1.2 or Section&nbsp;4.1.3 if (i)&nbsp;a Shareholder Vote Requirement does not
apply to the issuance of the Consideration Shares to the Purchaser pursuant to Part&nbsp;II
Section&nbsp;2 of Annex 12 (B), and (ii)&nbsp;no later than 15 Business Days after the date hereof
the Purchaser has caused MannKind Corp. to file with the Listing Qualifications Department
of the NASDAQ Global Market a preliminary NASDAQ Notification Form: Listing of Additional
Shares (&#147;<B>NASDAQ Notification Form</B>&#148;) with respect to the possible listing of the
Consideration Shares and MannKind Corp. has received no written or oral notice objecting
to, expressing concerns about or otherwise requesting additional information regarding the
NASDAQ Notification Form, the transactions contemplated by this Agreement or MannKind
Corp.&#146;s compliance with the NASDAQ Marketplace Rules, which objections, concerns or
requests remain uncured or unanswered, as applicable, prior to the Closing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If Closing occurs later than 3 April&nbsp;2009, the Purchase Price shall be increased by an amount
of &#091;...***...&#093; for each month that the Closing is delayed (and pro rata in case of a delayed
Closing occurring during a current month), unless the Seller has caused (<I>verschuldet</I>) or is
responsible for (<I>vertreten m&#252;ssen</I>) the delay of the Closing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of the LIP Business Sale, the Parties take the view that the sale and transfer
qualifies as the transfer of a going concern (<I>Gesch&#228;ftsver&#228;u&#223;erung im Ganzen</I>) pursuant to
Section&nbsp;1 paragraph 1a UStG and thus the Purchase Price is not subject to VAT. If and to the
extent the competent German tax authority treats the sale as being subject to VAT the
Purchaser has to pay statutory VAT in addition to the Purchase Price in cash to the Seller
within 10 (ten)&nbsp;Business Days after receipt of an invoice which complies with Section&nbsp;14 and
Section&nbsp;14a UStG.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to the condition precedent (<I>aufschiebende Bedingung</I>) that the competent German tax
authority treats the sale as being subject to VAT, the Seller herewith waives the exemption
from VAT pursuant to Section&nbsp;4 No.&nbsp;9 lit. a UStG with respect to the Heritable Building
Right and opts to treat the sale of the Heritable Building Right as a supply subject to
VAT. In accordance with Section&nbsp;13b paragraph 1 No.&nbsp;3 UStG which stipulates the reverse
charge proce-</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>dure the Seller will neither charge nor collect VAT for the sale of the Heritable Building
Right. It is the Purchaser&#146;s sole responsibility to file the respective tax notices and pay
VAT due on such supply in accordance with the tax laws applicable to the Purchaser. The
Purchaser does not owe VAT on the sale of the Heritable Building Right to the Seller. The
Purchaser confirms that it intends to use the Heritable Building Right solely in connection
with the provision of supplies and services that do not preclude the deduction of input VAT
(<I>Vorsteuer</I>). In the event of a LIP Asset Sale the Purchaser has to pay statutory VAT in
cash in addition to the Purchase Price to the Seller within 10 Business Days after receipt
of an invoice which complies with Section&nbsp;14 and Section&nbsp;14a UStG.</TD>
</TR>
<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchase Price shall be allocated to the LIP Assets or the LIP Business Assets, as the
case may be, as to be agreed between the Parties pursuant to Section&nbsp;7.18 between the date
hereof and the Closing Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event that a Party to this Agreement is in default (<I>Verzug</I>) with payments under this
Agreement, the Parties agree that default interest (<I>Verzugszinsen</I>) shall be payable by the
respective debtor as provided for in section&nbsp;288 para. 2 BGB calculated on the outstanding
amount for the period starting with the due date up to and including the date at which the
outstanding amount increased by the default interest is irrevocably credited to the bank
account of the respective creditor.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All payments to be made to the Seller pursuant to this Agreement shall be made by wire
transfer free of charges and without any restrictions to the Seller&#146;s Bank Account or any
other bank account communicated by the Seller in writing not less than five Business Days
prior to the due date of the relevant payment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONDITIONS TO CLOSING</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The obligations of the Parties to carry out the Closing are conditional on the following
conditions (<I>aufschiebende Bedingungen</I>, collectively or individually, the &#147;<B>Closing Conditions</B>&#148;)
being satisfied, or in case of any of the Closing Conditions set out in Sections&nbsp;5.1.1 and
5.1.2 being waived by the Purchaser, in accordance with this Agreement:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">5.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser having conducted a physical stock take (<I>Inventur</I>) of the
Assets (including, without limitation, raw material for the production of bulk insulin
and the Bulk Insulin Inventory) in accordance with Section&nbsp;7.14;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">5.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Absence of any encumbrances in the Heritable Building Right Register except
for (i)&nbsp;the encumbrances specified in the Heritable Building Right, and (ii)&nbsp;such
encumbrances, to which the Purchaser has consented in writing vis-&#224;-vis the Seller;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">5.1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller and the Purchaser have delivered a certificate that there is no
material breach of any of its respective Guarantees provided under this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">5.1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Only in the event that the Infraserv Consent is duly granted on or before
the Infraserv Due Date,</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the earliest of (i)&nbsp;receipt of notification by
Sanofi-Aventis of its irrevocable, final and binding decision to exercise the
ROFR (&#147;<B>ROFR Exercise Notice</B>&#148;), (ii)&nbsp;receipt of notification by Sanofi-Aventis
of its irrevocable, final and binding decision not to exercise the ROFR,
(iii)&nbsp;2 (two)&nbsp;months have passed since the Notification by the Seller
pursuant to Section&nbsp;6.3 has verifiably been received by Sanofi-Aventis
without a written response by Sanofi-Aventis to the Seller and/or the
Purchaser as to whether Sanofi-Aventis exercises or does not exercise the
ROFR, having occurred; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Merger Control Clearance having been obtained according to
Section&nbsp;6.4.3.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser and the Seller shall use their reasonable best efforts to ensure that the
Closing Conditions are satisfied as soon as possible after the date hereof. The Purchaser and
the Seller shall have no right to delay or prevent the satisfaction of the Closing Conditions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At any time prior to the Final Drop Dead Date the Purchaser may waive any of the Closing
Conditions set out in Sections&nbsp;5.1.1 and 5.1.2 in its sole discretion by written notice to the
Seller.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller and the Purchaser shall each notify the other in writing promptly (<I>unverz&#252;glich</I>)
upon becoming aware that any of the Closing Conditions have been satisfied or have become
incapable of satisfaction (<I>unm&#246;glich geworden</I>) and shall, upon request, provide the other
Party with any documentation providing evidence on such fulfilment or incapability of
satisfaction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Closing Conditions have not been satisfied or waived on or before 31 October&nbsp;2009 at
24:00 hours (the &#147;<B>Final Drop Dead Date</B>&#148;) the Parties may at their respective absolute
discretion (<I>nach freiem Ermessen</I>) jointly agree in</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>writing to extend the Final Drop Dead Date or otherwise either the Seller or the Purchaser
may each elect to rescind (<I>zur&#252;cktreten</I>) this Agreement unless the relevant Party has
caused (<I>verschuldet</I>) or is responsible for (<I>vertreten m&#252;ssen</I>) the failure of the Closing
Conditions to be satisfied. In the event of such rescission, (i)&nbsp;the Seller shall promptly
return the Down Payment to the Purchaser&#146;s Bank Account, and (ii)&nbsp;neither Party shall have
any claim under this Agreement of any nature whatsoever against the other party, except for
Claims for breach of the covenants set forth in Section&nbsp;5.2 and Section&nbsp;6.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>REGULATORY FILINGS AND APPROVALS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall ensure that any filings necessary in connection with the merger control
clearance referred to in Section&nbsp;1.1 (if any) and any other filings with, or notifications to,
any governmental authority required in connection with this Agreement will be made without
undue delay, but in any event within ten (10)&nbsp;Business Days after the Closing Condition set
out in Section&nbsp;5.1.4(a) has been satisfied. Any filings made by the Purchaser shall require
the prior written consent of the Seller which consent shall not be unreasonably withheld,
conditioned or delayed.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In order to obtain all requisite approvals for the transactions contemplated by this
Agreement under merger control laws, the Parties shall (i)&nbsp;reasonably cooperate in all
respects with each other in the preparation of any filing or notification and in connection
with any submission, investigation or inquiry including timely exchange of drafts in order to
give reasonable opportunity to comment on such drafts, (ii)&nbsp;supply to any competent authority
as promptly as practicable any additional information requested pursuant to any applicable
laws and take all other procedural actions required in order to obtain any necessary clearance
or to cause any applicable waiting periods to commence and expire, (iii)&nbsp;promptly provide each
other with copies of any written communication received or sent (or written summaries of any
non-written communication) in connection with any proceeding and (iv)&nbsp;give each other and
their respective advisers the opportunity to participate in all meetings and conferences with
any competent authority.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent Merger Control Clearance is subject to obligations (<I>Auflagen</I>) and&nbsp;/ or
conditions subsequent (<I>aufl&#246;sende Bedingungen</I>), the Purchaser undertakes to ensure that (<I>steht
daf&#252;r ein, dass</I>) such obligations are completely fulfilled and such conditions subsequent do
not occur. To the extent that Merger Control Clearance is subject to conditions precedent, the
Purchaser undertakes to ensure that such conditions precedent all occur within four weeks
after the issuance of the conditional Merger Control Clearance.</TD>
</TR>



</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Merger Control Clearance</B>&#148; is deemed to have been obtained, if and when (i)&nbsp;the Parties
have jointly confirmed in writing that the thresholds which trigger a filing requirement
with antitrust authorities without whose consent a Closing of the transactions contemplated
hereunder would be illegal are not exceeded so that the transactions contemplated hereunder
and applicable to the relevant Parties do not need to be filed with such authorities, or
(ii)&nbsp;the German Federal Cartel Office, ,</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">6.4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>has notified the Seller and/or the Purchaser in writing that it will not
prohibit the proposed acquisition of the Assets, either unconditionally or subject to
the fulfilment of certain conditions or obligations (<I>Auflagen oder Bedingungen</I>)
accepted by the Purchaser; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">6.4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>has failed to notify the Seller and the Purchaser within one (1)&nbsp;month after
filing of the proposed acquisition of the Assets in accordance with section&nbsp;39 GWB
that it has initiated a formal investigation; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">6.4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>has failed to issue an order pursuant to section 40 para. 2 sentence 1 GWB
within the time periods required pursuant to section&nbsp;40 para. 2 GWB; or</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(iii)&nbsp;in the event that a filing with other antitrust authorities is required for the
Purchaser, merger control clearance from the then competent antitrust authority or
authorities (as the case may be) has been duly obtained or is deemed to have been obtained.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As soon as practicable, but in no event more than 15 Business Days after the date hereof, the
Purchaser shall file or cause to be filed by MannKind Corp. with the Listing Qualifications
Department of the NASDAQ Global Market a preliminary NASDAQ Notification Form with respect to
the possible listing of Consideration Shares.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PRE-CLOSING UNDERTAKINGS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Promptly upon signing of this Agreement but in any event not later than within 5 (five)
Business Days the Purchaser shall make (or cause MannKind Corp. to make) a cash down payment
of &#091;...***...&#093; (the &#147;<B>Down Payment</B>&#148;) to the Seller to be held in trust by the Seller on behalf of
the Purchaser until the Closing Date. The Down Payment shall be effected by wire transfer to
the Seller&#146;s Bank Account.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Promptly upon signing of this Agreement but in any event not later than within 2 (two)
Business Days, the Parties shall jointly notify Infraserv of the contingent sale of the
Heritable Building Right. The Parties shall use reasonable best efforts</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to obtain and the Seller shall formally request from Infraserv on or before the Infraserv
Due Date in a form required under Section&nbsp;29 paragraph 1 GBO, among others, (a)
Infraserv&#146;s, and Infraserv Logistics GmbH&#146;s consent, as applicable, to the transfer to the
Purchaser of (i)&nbsp;the Heritable Building Right in accordance with Section&nbsp;I.4.2 of the HBR
1998, (ii)&nbsp;the ROFR-Property, (iii)&nbsp;the Option Right, (iv)&nbsp;the Option Right Prenotation,
(v)&nbsp;the Prolongation Prenotation, and (vi)&nbsp;the Lease Agreements, and (b)&nbsp;Infraserv&#146;s waiver
of its right to terminate the Heritable Building Right and/or the Heritable Building Right
Agreement and demand the reversion of the Heritable Building Right (<I>Heimfall</I>) pursuant to
Sections&nbsp;I.5.1.4, I.5.2, II.5.3, II.5.4 and II.5.6 of the HBR 1998, all in the form
substantially set out in <B>Annex&nbsp;7.2 </B>(the &#147;<B>Infraserv Consent</B>&#148;). The Parties shall promptly
(i)&nbsp;engage in joint good faith negotiations with Infraserv regarding the Infraserv Consent,
(ii)&nbsp;provide all information reasonably requested by Infraserv or appropriate to enable
Infraserv to decide upon the Infraserv Consent, (iii)&nbsp;notify each other if and when the
Infraserv Consent has been obtained, (iv)&nbsp;provide to the respective other party a copy of
the Infraserv Consent, and (v)&nbsp;forward the original Infraserv Consent to the acting notary.
If Infraserv Consent has not been obtained on or before the Infraserv Due Date, the Parties
may at their absolute discretion (<I>nach freiem Ermessen</I>) jointly agree in writing to extend
the Infraserv Due Date or shall (i)&nbsp;withdraw their request for Infraserv Consent, (ii)
terminate discussions in this respect and (iii)&nbsp;proceed to the LIP Asset Sale Closing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Promptly upon signing of this Agreement but in any event not later than within 2 (two)
Business Days, the Seller shall notify Sanofi-Aventis of its right &#150; subject to the Infraserv
Consent &#150; to exercise its ROFR including submission of an authenticated copy (<I>beglaubigte
Kopie</I>) of this Agreement to Sanofi-Aventis, and undertake to use its reasonable best efforts
to engage in joint good faith negotiations with Purchaser, Infraserv and Sanofi-Aventis to (i)
accelerate the time in which Infraserv will grant the Infraserv Consent, and/or (ii)
facilitate the process for Sanofi-Aventis to exercise or waive its ROFR.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Promptly upon receipt of the Infraserv Consent (where such receipt occurs on or before
the Infraserv Due Date) but in any event not later than within 1 (one)&nbsp;Business Day
following receipt, the Seller shall transmit the Notification to Sanofi-Aventis to start
the 2 (two)&nbsp;months period for Sanofi-Aventis to consider exercise of its ROFR. The Seller
shall provide conclusive evidence for the receipt of the Notification by Sanofi-Aventis
(<I>Nachweis des Zugangs</I>) to the Purchaser. The Parties shall notify each other if and when a
response from Sanofi-Aventis (including a ROFR Exercise Notice) has been received without
undue delay following such receipt, and, in case of responses in writing, shall provide to
the respective other party a copy of such response. If a ROFR</TD>
</TR>

</TABLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exercise Notice has been received by the Seller or the Purchaser within 2 (two)&nbsp;months
since the Notification has verifiably been received by Sanofi-Aventis,</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">7.4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;this Agreement between the Seller, Pfizer Inc., the Purchaser and
MannKind Corp. shall be null and void and the Purchaser and MannKind Corp. shall be
released from all of its respective obligations hereunder, and (ii)&nbsp;the Parties
acknowledge that the new agreement entered into by operation of law between
Sanofi-Aventis on the one hand and the Seller and Pfizer Inc. on the other hand
following execution of the ROFR by Sanofi-Aventis shall have similar terms (<I>gleiche
Bedingungen</I>) as this Agreement, provided, however, that references to both &#147;the
Purchaser&#148; and &#147;MannKind Corp.&#148; shall be replaced by &#147;Sanofi-Aventis&#148;;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">7.4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;Sanofi-Aventis shall make a payment equal in value to the Down Payment
by wire transfer to the Seller&#146;s Bank Account to be held in trust by the Seller for
Sanofi-Aventis thereafter, and (ii)&nbsp;the Seller shall promptly return the Down Payment
to the Purchaser;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">7.4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;Sanofi-Aventis shall procure a guarantee of its ultimate parent company
according to the terms of Section&nbsp;16.2 and, (ii)&nbsp;the Seller shall release MannKind
Corp. from its obligations under Section&nbsp;16.2;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">7.4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller and Sanofi-Aventis shall consummate the Closing subject to the
Closing Conditions being satisfied or waived; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">7.4.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if a merger control filing requirement be triggered as a result of
Sanofi-Aventis exercising the ROFR, Seller and Sanofi-Aventis shall use their best
efforts to consummate the Closing (including payment of the full Purchase Price in
cash as set forth under Section&nbsp;0 hereof), provided, however, that the Seller and
Sanofi-Aventis shall not be under an obligation to, directly or indirectly, transfer
or acquire the Assets or interests in respect of which the consummation of the Closing
would violate any applicable law or decision. If Merger Control Clearance cannot
otherwise be obtained the Seller and Sanofi-Aventis shall agree on all appropriate
measures, including &#147;hold separate&#148; arrangements including the appointment of a &#147;hold
separate trustee&#148; (which<I>, inter alia</I>, shall ensure that Sanofi-Aventis shall not,
neither legally nor otherwise, influence or benefit from the (ordinary or
extra-ordinary) use of the Assets for the transfer of which no clearance has been
obtained) regarding the Assets or interests affected, in order that the relevant
jurisdiction can be exempted from the consummation of the transaction contemplated by
this Agreement until the required consents and approvals have been obtained. In any
case, no &#147;hold separate&#148; arrangements will become effective prior to the Closing Date.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


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</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a LIP Business Sale, the number of Employees shall be reduced from the
headcount as of 6 November&nbsp;2008 of 173 (one hundred seventy three) down to 80 (eighty)
Employees (the &#147;<B>Target Headcount</B>&#148;). Without undue delay upon receipt of the Infraserv Consent
the Seller shall inform the Seller&#146;s works council (<I>Betriebsrat</I>) pursuant to Section&nbsp;111 Works
Constitution Act (<I>Betriebsverfassungsgesetz</I>) and shall commence consultations and negotiations
(the &#147;<B>Works Council Discussions</B>&#148;) with the works council on a balance of interest
(<I>Interessenausgleich</I>) and a social plan (<I>Sozialplan</I>) to reduce the number of Employees to the
Target Headcount based upon a business proposal provided by the Purchaser which shall include
the details of the contemplated operational change for the balance of interest and the
monetary conditions for the social plan to be offered to the works council (the &#147;<B>Business
Proposal</B>&#148;). The Purchaser shall reasonably assist and co-operate in the Works Council
Discussions; the Purchaser commits itself to provide the Seller with all information necessary
to initiate and conduct the consultation and negotiation process pursuant to Sections&nbsp;111 <I>et
seq</I>. Works Constitution Act. The Seller shall be bound by the terms of the Business Proposal,
and shall not bindingly agree on a balance of interest and a social plan without prior written
consent from the Purchaser to the extent legally permissible.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a LIP Business Sale and prior to Closing, the Seller shall procure that
unfunded pension obligations (excluding, for the avoidance of doubt, any pensions funded by
the Penka 1 and the Penka 2) vis-a-vis the Employees in the amount of approx. &#091;...***...&#093;
according to German GAAP as of 30 November&nbsp;2008 will be fully funded with an amount of approx.
&#091;...***...&#093; subject to the actuarial statement (<I>versicherungsmathematisches Gutachten</I>) set forth
in Section&nbsp;8.8 by way of transferring funds into contractual trust arrangements or equivalent
insolvency remote vehicles&nbsp;reasonably&nbsp;acceptable to the Seller, which are to be set up in a
way to be recognized as plan assets according to US GAAP/PBO.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller is a member of the Pensionskasse der Mitarbeiter der Hoechst-Gruppe VVaG (&#147;<B>Penka
1</B>&#148;) and of the H&#246;chster Pensionskasse VVaG (&#147;<B>Penka 2</B>&#148;). If the Condition Subsequent is
satisfied, the Purchaser shall use its best efforts to become a member of the Penka 1 and
Penka 2, and the Seller will use its best efforts to support such a membership. If such
membership materializes, the Purchaser shall fulfil all contribution obligations vis-&#224;-vis the
Transferred Employees under the Penka 1 and Penka 2 pension plans after the LIP Business Sale
Closing Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a LIP Business Sale, the Seller shall assign to the Purchaser, and the
Purchaser shall accept such assignment, all rights and claims vis-&#224;-vis third</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>parties with respect to obligations of the Seller vis-&#224;-vis the Transferred Employees under
all Pension Schemes.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a LIP Asset Sale, the Parties shall use their reasonable best efforts to
finally coordinate and agree upon the specific actions to be taken and the time schedule to be
maintained for the dismantling (<I>Ab-und Ausbau</I>) of certain of the LIP&nbsp;Assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During the period until the Closing Date the Seller undertakes to procure that to the extent
legally permissible, the Business will be operated in the ordinary course of business, except
as (i)&nbsp;disclosed in this Agreement, (ii)&nbsp;disclosed in <B>Annex 7.10 </B>or (iii)&nbsp;with prior written
approval of the Purchaser. In any case, the Seller shall not without the prior approval of the
Purchaser or except as disclosed in this Agreement or in <B>Annex 7.10</B>:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">7.10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acquire or dispose of (including by way of leasing agreements) any Asset, nor
undertake to make such acquisition or disposal, in each case with a value of more than
EUR 50,000.00 (Euro: fifty thousand) or EUR&nbsp;500,000.00 (Euro: five hundred thousand)
in the aggregate; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">7.10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>enter into Contracts providing for individual payment obligations of more than EUR
50,000.00 (Euro: fifty thousand) in each case or EUR&nbsp;500,000.00 (Euro: five hundred
thousand) in the aggregate.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall use commercially reasonable efforts to obtain cash financing to fund some
or all of the Purchase Price. As soon as reasonably practicable but in no event later than
five Business Days prior to the Closing Date the Purchaser shall notify the Seller supported
by bank statements or binding commitment letters if the Purchaser secured cash financing
sufficient to pay some or all of the Purchase Price in cash pursuant to Section&nbsp;4.1.1 or
Section&nbsp;4.1.3 and thereby elects to do so (&#147;<B>Cash Notification</B>&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless a Cash Notification has been delivered by the Purchaser electing to pay the Purchase
Price pursuant to Section&nbsp;4.1.1, on the day immediately preceding the Closing Date the Seller
shall notify to the Purchaser the number of Consideration Shares to be transferred to the
Seller at Closing according to Section&nbsp;4.1.2 or Section&nbsp;4.1.3, as applicable, together with a
copy of the Bloomberg report supporting the determination of the Stock Price.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties undertake not to, and undertake to procure that none of their affiliated Persons
and Persons qualifying as insiders in relation to the transactions</TD>
</TR>

</TABLE>
</DIV>



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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>contemplated hereunder, shall deal or trade in Common Stock until the Business Day
preceding the Closing Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser undertakes to conduct, at its own costs, a physical stock take (<I>Inventur</I>) of
the Assets (including, without limitation, raw material for the production of bulk insulin) as
soon as practicable. For this purpose, the Seller shall provide to the Purchaser and its
designees full and unlimited access to the premises of the LIP and the Records at usual
working hours, and shall provide reasonable assistance to the Purchaser to enable the
Purchaser to conduct such physical stock take (including a full review, counting and
documentation of the Fixed Assets and the Equipment) in an efficient manner and within a
reasonable period of time of not less than 5 but not more than 15 Business Days after the date
hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.15</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without undue delay each Party shall notify the other Party in writing of all events or
circumstances arising or coming to the knowledge of the notifying Party, which to the
reasonable assessment of the notifying Party may result in a Breach of a Seller&#146;s Guarantee or
a Purchaser&#146;s Guarantee.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.16</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a LIP Business Sale, the Parties shall use reasonable best efforts to agree
with Infraserv on the amendment of the ROFR-Property to the effect that the ROFR-Property can
be transferred to the Purchaser, and take all steps required to effect such amendment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.17</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the avoidance of doubt, Sections&nbsp;7.5 and 7.6, shall not be applicable in the event of a
LIP Asset Sale, for which case the Parties assume that <U>no</U> Employees will transfer with
the LIP Assets, since the operations of the Business will <U>not</U> be run by the Purchaser
in essentially the same manner as previously by the Seller.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.18</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without undue delay after the date hereof, the Parties shall mutually agree the allocation of
the Purchase Price to the LIP Assets, in the case the Condition Subsequent is not satisfied on
or before the Infraserv Due Date, or to the LIP Business Assets (including the Heritable
Building Right) in the case the Condition Subsequent is duly satisfied.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>STATUTORY TRANSFER OF EMPLOYEES IN THE EVENT OF A LIP BUSINESS SALE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties understand that in the event of a LIP Business Sale, as a consequence of the
transactions contemplated under this Agreement, Section&nbsp;613a</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>BGB will be applicable and therefore, as of the Closing Date, the Employees belonging to
the Business (<I>Betrieb</I>) at Closing will pass from the Seller to the Purchaser with all
rights and duties pursuant to Section&nbsp;613a BGB, unless such Employees exercise their
statutory right of objection pursuant to Section&nbsp;613a paragraph 6 BGB. As of the Closing
Date vacation entitlements and other monetary entitlements (<I>Weihnachtsgeld, Urlaubsgeld</I>) of
the Employees, calculated on the basis of the respective individual salaries, and in case
of vacation entitlements for the period from 1 January&nbsp;2009 until the Closing Date to be
calculated according to Section&nbsp;7 para 4 of the Federal Holiday Act (<I>Bundesurlaubsgesetz</I>)
shall be apportioned among the Parties <I>pro rata temporis</I>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within three Business Days following the day on which the Closing Condition pursuant to
Section&nbsp;5.1.4(a) has been fulfilled, the Seller and the Purchaser will jointly inform all
Employees as required by Section&nbsp;613a paragraph 5 BGB in a general staff meeting of such
Employees (<I>Belegschaftsversammlung</I>). In such joint staff meeting, or closely following such
staff meeting the Seller and the Purchaser will jointly issue to each Employee present at the
staff meeting personally a letter substantially in the form of <B>Annex&nbsp;8.2 </B>containing the
following information as required by Section&nbsp;613a paragraph 5 BGB (the &#147;<B>Information Letter</B>&#148;):
(i)&nbsp;the expected date of the employment transfer (Section&nbsp;613a paragraph 5 No.&nbsp;1 BGB); (ii)
the reasons for the employment transfer (Section&nbsp;613a paragraph 5 No.&nbsp;2 BGB); (iii)&nbsp;the legal,
economic and social consequences the employment transfer will have for the Employees (Section
613a paragraph 5 No.&nbsp;3 BGB); and (iv)&nbsp;any changes or measures envisaged by the Purchaser which
may affect the Employees (Section&nbsp;613a paragraph 5 No.&nbsp;4 BGB). Immediately after the joint
staff meeting, the Information Letter shall be sent by registered mail (<I>Einwurfeinschreiben</I>)
to all remaining Employees not present at the staff meeting. The Seller shall be responsible
and liable for the accuracy and the completeness of all information in the Information Letter
which describe the employment relationships prior to the Closing Date, whereas the Purchaser
shall be responsible and liable for the accuracy and the completeness of all information in
the Information Letter which describe the employment relationships after the Closing Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties herewith commit themselves to provide the other Party with the complete
information required under Section&nbsp;613a paragraph 5 BGB and referred to under Section&nbsp;8.2 of
this Agreement on the day, 24.00 CET, following the day on which the Closing Conditions
pursuant to Section&nbsp;5.1.4(a) have been fulfilled. Additionally the Parties commit themselves
to include such information in the Information Letter to the extent required by Section&nbsp;8.2 of
this Agreement.</TD>
</TR>

</TABLE>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties acknowledge that the Employees have the right to object to the transfer of their
employment according to Section&nbsp;613a paragraph 6 BGB. Notwithstanding the measures agreed and
foreseen under this Agreement, the Parties shall use reasonable best efforts to convince all
Employees not to object to the transfer of their employment relationship. After the expiry of
the time limit for declaration of an objection by the Employees, which is the lapse of the one
month objection period pursuant to Section&nbsp;613a paragraph 6 BGB, such period to commence after
the date on which the last Information Letter has been received by any Employee (the
&#147;<B>Objection Period</B>&#148;), the Parties will inform each other immediately in writing which of the
Employees have objected to their transfer. At any time prior to Closing, neither Party shall
undertake anything that could reasonably be expected to cause any Employee to object to
his/her transfer to the Purchaser, notwithstanding the measures agreed and foreseen under this
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall terminate the employment relationship with any Employee who objected to the
transfer to the Purchaser as soon as reasonably practicable and negotiate with objecting
Employees Termination Payments or, if legally required, a social plan (<I>Sozialplan</I>) and balance
of interest (<I>Interessenausgleich</I>). The Seller undertakes not to offer to these objecting
employees Termination Payments in excess of those Termination Payments agreed under the social
plan to which Employees transferred to the Purchaser are entitled to, unless a court or an
arbitration board (<I>Einigungsstelle) </I>rules otherwise. The Seller shall notify the Purchaser of
the amount of Termination Payments incurred to each Employee who objected to its transfer as
soon as reasonably practicable. Except with the Purchaser&#146;s prior written consent, the Seller
shall not agree on or pay to any of the Employees Termination Payments exceeding the amounts
provided for by the &#147;Personal- und Sozialpolitische Rahmenvereinbarung&#148; of 29 September&nbsp;2004
(the &#147;<B>PSR</B>&#148;) or as finally determined by the arbitration board (<I>Einigungsstelle</I>) or a competent
court.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties expressly agree and acknowledge that all pension and retirement obligations,
liabilities, and expenditures of the Seller with regard to the Employees who have not objected
to the transfer of their employment pursuant to Section&nbsp;613a paragraph 6 BGB (the &#147;<B>Transferred
Employees</B>&#148;), whether due, vested or invested (<I>Anwartschaften jeder Art</I>) shall transfer from
the Seller to the Purchaser on and with effect from the Closing Date. Subject to the Closing,
the Seller hereby assigns to the Purchaser, and the Purchaser hereby accepts such assignment,
all rights and obligations vis-&#224;-vis the Transferred Employees under all Pension Schemes.</TD>
</TR>



</TABLE>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to those of the Continuing Employees who have subscribed before Closing to
Pfizer Inc. shares and where the terms of the subscription provide that they will be paid
for through payroll deductions as set forth on <B>Annex 8.7</B>, the Purchaser shall continue to
make payroll deductions, until such subscriptions are paid in full, and the Purchaser shall
forward the full sums of such payroll deductions without subtraction of any handling fee or
other charges to the Seller within 30&nbsp;days of each respective payroll deduction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In due time before Closing, the Parties shall determine as of the Closing Date, the factual
value of the pension obligations for company pension plans to be provided for, which are
applicable to the Transferred Employees by way of a statement (<I>Versicherungsmathematisches
Gutachten</I>), established by the German actuary firm Watson Wyatt (or another renowned actuary
firm mutually agreed upon by the Parties), based upon US-GAAP provisions for projected benefit
obligations, the cost for which statement shall be borne by the Seller.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller undertakes to bear Termination Payments to Employees incurred (i)&nbsp;in connection
with the work force reduction described in Section&nbsp;7.5 from the headcount as of 6 November
2008 of 173 employees down to the Target Headcount up to a maximum amount of &#091;...***...&#093; and (ii)
pursuant to Section&nbsp;8.5, minus Termination Payments paid until the date of signing of this
Agreement (the &#147;<B>Termination Payment Cap</B>&#148;). Any Termination Payment in excess of the
Termination Payment Cap shall be borne by the Purchaser and if legally and otherwise in
accordance with this Agreement incurred by the Seller be reimbursed by the Purchaser to the
Seller. The amount of Termination Payments shall be calculated, as the case may be, (i)&nbsp;in
accordance with the principles set out in the PSR, (ii)&nbsp;as finally determined by the
arbitration board (<I>Einigungsstelle</I>) or a competent court, or (iii)&nbsp;as mutually agreed
otherwise by the Parties<B>. </B>Upon finalization of the social plan the Party legally entitled and
required to negotiate the social plan and to pay out the Termination Payments to the relevant
Employees shall notify the other Party of the amount of Termination Payments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If Termination Payments were actually paid by the Seller on or before the LIP Business Sale
Closing in accordance with Section&nbsp;8.5 exceed the Termination Payment Cap, the Purchaser shall
pay to the Seller the amount of such excess on the LIP Business Sale Closing (the &#147;<B>Termination
Payment Reimbursement</B>&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At the LIP Business Sale Closing, in view of the difficulties in obtaining acceptable bank
guarantees to secure the Purchaser&#146;s obligations, the Purchaser shall pay to the Notary
Account the Severance Funds Payment minus the</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Termination Payment Reimbursement, if any (the &#147;<B>Escrow Amount</B>&#148;) to secure the Purchaser&#146;s
obligation to provide termination benefits to Employees comprised in the Target Headcount
(the &#147;<B>Continuing Employees</B>&#148;) in the event of their dismissal or an insolvency of the
Purchaser. The Seller shall be entitled to draw upon the Escrow Amount to fund Termination
Payments in excess of the sum of the Termination Payment Cap, incurred by the Seller (i)
within the Objection Period or (ii)&nbsp;after the Objection Period with respect to Employees
who duly rejected their transfer to the Purchaser. To utilize the Escrow Amount the Seller
shall issue a payment instruction to the Notary substantially in the form set out in <B>Annex
8.11</B>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The amount remaining as Escrow Amount shall be released by the Notary upon the Parties&#146; joint
instruction. The Parties shall jointly instruct the Notary in the form set out in <B>Annex 8.11</B>,
upon the occurrence of the following events: (i)&nbsp;the expiry of the Objection Period, and (ii)
the termination of employment (<I>Beendigung der Arbeitsverh&#228;ltnisse</I>) of all Employees formerly
employed by the Seller, and (iii)&nbsp;the delivery to the Seller of a copy of a Bank Guarantee or
equivalent insolvency remote (<I>insolvenzsicher</I>) security for the Termination Payments to the
then remaining Employees in an amount equal to the then remaining amount of the Escrow Amount.
The Seller shall agree that the amount of the Bank Guarantee to be delivered will be less than
the Escrow Amount, and instruct the Notary to release the Escrow Amount notwithstanding, if an
adjustment calculation delivered by the Purchaser to the Seller reasonably evidences that the
maximum amount of Termination Payments that could become payable by the Purchaser on December
31, 2014 to the specific Continuing Employees still employed by the Purchaser on the date of
the adjustment calculation will remain below the then remaining amount of the Escrow Amount.
The Purchaser shall be entitled to replace the Committed Bank in relation to the Bank
Guarantee or the collateral of the Bank Guarantee, in each case, at equivalent terms at any
time.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If and to the extent Employees reject their transfer to the Purchaser within the Objection
Period the Seller shall dismiss the relevant Employees within the shortest possible period
that is legally permissible, and the Purchaser shall reimburse the Seller for Termination
Payments incurred for such Employees which are in excess of the Termination Payment Cap. The
Purchaser shall beentitled to reduce the amount of the Bank Guarantee for any amounts
reimbursed according to the preceding sentence and Termination Payments paid by the Purchaser
to Continuing Employees.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The payroll costs (regular monthly costs of employment as existing on the Closing Date and
consistent with the employment agreements and past practice, excluding, for the avoidance of
doubt, any extra benefits like bonuses or one time payments, unless such payments are a result
of a binding agreement or past prac-</TD>
</TR>

</TABLE>
</DIV>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>tice (<I>betriebliche &#220;bung</I>)) relating to those Employees who shall not remain in the Business
pursuant to the balance of interest and the social plan to be discussed and agreed with the
works council representing the Employees for the period from the Closing Date until the
earlier of (i)&nbsp;31&nbsp;July&nbsp;2009 or (ii)&nbsp;the date of termination of the affected Employees&#146;
employment relationship according to the balance of interest and the social plan shall be
shared equally among the Seller and the Purchaser. The Party which is not the employer of
the Employees after Closing undertakes to reimburse the other Party for 50% of those
payroll costs to the extent not included in the calculation of the Termination Payments
pursuant to Section<B>&nbsp;</B>8.9 within 10 (ten)&nbsp;Business Days upon receipt of a detailed invoice
specifying all costs from the Party being the employer of the Employees after Closing.
Precondition for reimbursement is that the aforementioned payroll costs have been fully
paid out to the respective Employees and are fully in compliance with and do not exceed the
applicable collective bargaining agreements, applicable works agreements and/or individual
employment contracts. The reimbursement is due without any deduction and without any right
of set-off.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.15</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Old age part time claims of active Employees of the Seller are insured against insolvency
through the Pfizer Trust e.V. After lapse of the Objection Period the Seller shall transfer
assets reasonably sufficient to cover the old age part time claims of Continuing Employees
with old age part time contracts to the Purchaser either directly or shall procure the
transfer of those assets by Pfizer Trust e.V.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>LIP ASSET SALE CLOSING</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following provisions shall apply in the event that the Infraserv Consent is not duly
granted on or before the Infraserv Due Date so that the Parties are to consummate the LIP
Asset Sale:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties shall consummate the LIP Asset Sale Closing on the first Business Day following
the later to occur of (i)&nbsp;the Infraserv Due Date and (ii)&nbsp;the day on which the Closing
Condition under Section&nbsp;5.1.1 has been satisfied or waived (the &#147;<B>LIP Asset Sale Closing
Date</B>&#148;). The LIP Asset Sale Closing shall take place at the offices of Clifford Chance in
Frankfurt am Main, Federal Republic of Germany or at such other location, time or date as may
be mutually agreed between the Parties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At the LIP Asset Sale Closing, the Parties shall take the following LIP Asset Sale Closing
Actions in the following order (<I>Zug um Zug</I>):</TD>
</TR>

</TABLE>
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">9.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall deliver to the Purchaser <B>Annexes, 1.1(H) </B>and <B>1.1(I)</B>, in each
case updated as per the LIP Asset Sale Closing Date to reflect changes between the
date hereof and the LIP Asset Sale Closing Date in the Equipment and the Fixed
Assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">9.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall pay an amount of &#091;...***...&#093;, the &#147;<B>Demolition Cost Payment</B>&#148;)
by wire transfer to the Seller&#146;s Bank Account to be applied by the Seller to
Demolition Costs in accordance with Section&nbsp;16.2.6.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">9.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall stop holding the Down Payment in trust for the Purchaser
and shall be entitled to apply the Down Payment to Demolition Costs in accordance with
Section&nbsp;16.2.6.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">9.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall pay an amount of &#091;...***...&#093;, the &#147;<B>Severance Funds Payment</B>&#148;)
by wire transfer to the Seller&#146;s Bank Account to be applied by the Seller to
Termination Payments according to Section&nbsp;16.2.2.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">9.2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a Cash Notification has been received by the Seller in accordance with
Section&nbsp;7.11, the Purchaser shall pay the cash portion of the Purchase Price,
including any increase pursuant to Section&nbsp;4.2, to the Seller by wire transfer to the
Seller&#146;s Bank Account.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">9.2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Cash Notification specifies that the Purchaser will pay the Purchase
Price pursuant to Section&nbsp;4.1.3 or no Cash Notification has been received by the
Seller in accordance with Section&nbsp;7.11, the Purchaser shall cause its transfer agent
to deliver to the Seller, via electronic book-entry, the applicable number of
Consideration Shares as notified by the Seller pursuant to Section&nbsp;7.11 and the Seller
and MannKind Corp. shall execute (i)&nbsp;the Registration Rights Agreement and (ii)&nbsp;the
Contingent Value Rights Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">9.2.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties shall seal (<I>versiegeln</I>) boxes containing the documents listed in
the Data Room&nbsp;Index and shall deposit the boxes so sealed with the acting notary for
evidence purposes (<I>zu Beweiszwecken</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">9.2.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall confirm in writing that the Seller&#146;s Guarantees are true
and correct in all material respects at the LIP Asset Sale Closing Date as if they
were given as of such date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">9.2.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For clarification, the Parties shall acknowledge that the LIP Business Sale
is null and void, and shall mutually cancel (<I>aufheben</I>) the LIP Business Sale.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">9.2.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties shall procure that legal title to the LIP&nbsp;Assets is being transferred in
rem (<I>dinglich</I>) to the Purchaser at the LIP Asset Sale Closing including generating of
possession or assignment of rights to recover possession, each in accordance with
German law. The Parties shall provide all further declarations and perform all other
acts necessary or appropriate to achieve the transfer of title to the LIP&nbsp;Assets to
the Purchaser.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>After the last of the actions referred to under Section&nbsp;9.2 has been taken, the Parties shall
sign a closing memorandum (the &#147;<B>Closing Memorandum</B>&#148;) including (i)&nbsp;agreements necessary to
transfer legal title to the LIP Assets under Section&nbsp;9.2.10 hereof, and (ii)&nbsp;the confirmation
to each other that the Closing Conditions applicable to the LIP Asset Sale Closing have been
fulfilled and that the LIP Asset Sale Closing Actions have been taken in accordance with this
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any Party fails to perform or procure performance of any of the actions referred to under
Section&nbsp;9.2 to be performed by it, the Purchaser, in the case of non-performance by the
Seller, or the Seller, in the case of non-performance by the Purchaser, shall be entitled to
(in addition to and without prejudice to all other rights or remedies available, including the
Seller&#146;s rights under Section&nbsp;10.4, which shall apply accordingly) by written notice to the
other Party (i)&nbsp;rescind (<I>zur&#252;cktreten</I>) this Agreement, or (ii)&nbsp;set a new date for the LIP
Asset Sale Closing (not being more than 10 Business Days after the LIP Asset Sale Closing
Date) in which case the provisions of this Section&nbsp;9 shall apply to the LIP Asset Sale Closing
as so deferred.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a rescission, neither Party shall have any claim under this Agreement of any
nature whatsoever against the other Party except for Claims for breach of the covenants set
forth in Sections 5.2., 6, 7 or based on Section&nbsp;10.4 which shall apply accordingly.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>LIP BUSINESS SALE CLOSING</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following provisions shall apply in the event that the Infraserv Consent is duly
granted on or before the Infraserv Due Date so that the Parties are to consummate the LIP
Business Sale:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties shall consummate the LIP Business Sale Closing on the first Business Day
following a five days period after the day on which the last of the Closing Conditions under
Section&nbsp;5.1 has been satisfied (the &#147;<B>LIP Business Sale Closing Date</B>&#148;). The LIP Business Sale
Closing shall take place at the offices of</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Clifford Chance in Frankfurt am Main, Federal Republic of Germany or at such other
location, time or date as may be mutually agreed between the Parties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At the LIP Business Sale Closing, the Parties shall take the following LIP Business Sale
Closing Actions in the following order (<I>Zug um Zug</I>):</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall deliver to the Purchaser <B>Annexes 1.1(E), 1.1(H) </B>and <B>1.1(I)</B>, in each
case updated as per the LIP Business Sale Closing Date to reflect changes between the
date hereof and the LIP Business Sale Closing Date in the Contracts, the Equipment,
and the Fixed Assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a Cash Notification has been received by the Seller in accordance with Section
7.11, the Purchaser shall pay the cash portion of the Purchase Price including any
increase pursuant to Section&nbsp;4.2 to the Seller by wire transfer to the Seller&#146;s Bank
Account.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Cash Notification specifies that the Purchaser will pay the Purchase Price
pursuant to Section&nbsp;4.1.3 or no Cash Notification has been received by the Seller in
accordance with Section&nbsp;7.12 the Purchaser shall cause its transfer agent to deliver
to the Seller, via electronic book-entry, the applicable number of Consideration
Shares as notified by the Seller pursuant to Section&nbsp;7.12 and the Seller and MannKind
Corp. shall execute (i)&nbsp;the Registration Rights Agreement and (ii)&nbsp;the Contingent
Value Rights Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall pay the Termination Payment Reimbursement, if any, to the Seller
by wire transfer to the Seller&#146;s Bank Account.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall pay the Escrow Amount to the Notary by wire transfer to the
Notary Account.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties shall seal (<I>versiegeln</I>) boxes containing the documents listed in the
Data Room&nbsp;Index and shall deposit the boxes so sealed with the acting notary for
evidence purposes (<I>zu Beweiszwecken</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pfizer Inc. shall assign its rights under section 8.6 of the EPA to the Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall confirm in writing that the Seller&#146;s Guarantees are true and
correct in all material respects at the LIP Business Sale Closing Date as if they were
given as of such date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties shall duly execute the Transition Services Agreement.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall deliver to the Seller a copy of the duly executed MannKind
Corp. guarantee substantially in the form attached to the Infraserv Consent.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties shall notarize the HBR Transfer Agreement, the Option Right Transfer
Agreement, and the ROFR-Property Transfer Agreement and shall grant a right of use of
the Heritable Building Right up until the registration of its transfer to the
Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall, in notarial form, grant (<I>bewilligen</I>) the registration of the
transfer of the Prolongation Prenotation to the Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall pay the Down Payment by wire transfer to the Purchaser&#146;s Bank
Account as designated by the Purchaser or otherwise as directed by the Cash
Notification.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">10.2.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties shall procure that legal title to the Assets (other than the Heritable
Building Right, the Option Right, and the ROFR-Property which are transferred pursuant
to the HBR Transfer Agreement, the Option Right Transfer Agreement, and the
ROFR-Property Transfer Agreement, respectively) is being transferred <I>in rem </I>(<I>dinglich</I>)
to the Purchaser at the LIP Business Sale Closing including generating of possession
or assignment of rights to recover possession, each in accordance with German law. The
Parties shall provide all further declarations and perform all other acts necessary or
appropriate to achieve the transfer of title to the Assets to the Purchaser.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>After the last LIP Business Sale Closing Action has been taken, the Parties shall sign a
closing memorandum (the &#147;<B>Closing Memorandum</B>&#148;) including (i)&nbsp;agreements necessary to transfer
legal title to the LIP Business Assets under Section&nbsp;10.2.14 hereof, and (ii)&nbsp;the confirmation
to each other that the Closing Conditions have been fulfilled and that the LIP Business Sale
Closing Actions have been taken in accordance with this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In case, on the LIP Business Sale Closing Date, the Purchaser fails to pay the Purchase Price
(in cash if a Cash Notification has been received by the Seller or otherwise in Consideration
Shares) in accordance with Section&nbsp;10.2.2 or 10.2.3, the Seller shall stop to hold the Down
Payment in trust for the Purchaser and shall be entitled to withhold the Down Payment and
apply it towards the actual damage incurred by the Seller, that arose as a result of the
Purchaser&#146;s breach of its obligation to consummate the LIP Business Sale Closing. The Seller
shall notify the Purchaser of any amount so applied towards actual damage and provide</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>due evidence of the amount of the damage incurred. The Seller&#146;s potential claims for
further damages and other remedies shall remain unaffected.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any Party fails to perform or procure performance of any of the LIP Business Sale Closing
Actions to be performed by it, the Purchaser, in the case of non-performance by the Seller, or
the Seller, in the case of non-performance by the Purchaser, shall be entitled to (in addition
to and without prejudice to all other rights or remedies available) by written notice to the
other Party (i)&nbsp;rescind (<I>zur&#252;cktreten</I>) this Agreement, or (ii)&nbsp;set a new date for the LIP
Business Sale Closing (not being more than 10 Business Days after the LIP Business Sale
Closing Date) in which case the provisions of this Section&nbsp;10 shall apply to the LIP Business
Sale Closing as so deferred.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a rescission, neither Party shall have any claim under this Agreement of any
nature whatsoever against the other Party except for Claims for breach of the covenants set
forth in Section&nbsp;5.2., 6, 7 or based on Section&nbsp;10.4.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SELLER&#146;S GUARANTEES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties have extensively discussed and negotiated to which extent and in which way the
Seller should be liable for defects of the Assets and, in case of a LIP Business Sale, the
Business, and/or if it turns out that the Seller&#146;s Guarantees are untrue or incorrect. The
Parties have decided to depart from the statutory system of liability and to provide instead
for a separate system of liability, as determined in <B>Annex&nbsp;1.1(Q) </B>and Sections&nbsp;11, 13, 14.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller guarantees in the form of an independent guarantee according to section 311 para.
1 BGB (<I>selbst&#228;ndiges Garantieversprechen</I>) with regard to the Assets and, in case of the LIP
Business Sale, the Business to the Purchaser that, subject to the qualifications set out in
Sections&nbsp;11.3 and 11.4, the Seller&#146;s Guarantees are true and correct in all material aspects as
at the date hereof or as at such date as expressly referred to in <B>Annex&nbsp;1.1(Q)</B>, provided,
however, that any provisions and limitations contained in this Agreement relating to the
consequences of a Breach of the Seller&#146;s Guarantees, including the provisions and limitations
set forth in <B>Annex 11.2 </B>form an integral part of the Seller&#146;s Guarantees (<I>Inhalt des
Schuldverh&#228;ltnisses </I>/ <I>Bestandteil der Garantieerkl&#228;rung</I>), and the Seller&#146;s Guarantees are only
given subject to such provisions and limitations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller&#146;s Guarantees are qualified by any matters fairly disclosed by or under (i)&nbsp;this
Agreement (including the Annexes and Schedules), (ii)&nbsp;the documents</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provided in the Data Room and (iii)&nbsp;the documents disclosed to the Purchaser and the
answers of the Seller to information requests filed by the Purchaser according to the
Logfile (the information referred to under (i)&nbsp;through (iii)&nbsp;collectively, the
&#147;<B>Information</B>&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser acknowledges and agrees that the only Seller&#146;s Guarantees given in relation to:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">11.4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Employees or any related claims, liabilities or other matters (the
&#147;<B>Employee-Related Matters</B>&#148;) are those set out in Section&nbsp;7 of <B>Annex 1.1(Q) </B>and no
other Seller&#146;s Guarantee is given in relation to the Employee-Related Matters;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">11.4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the environment or any related claims, liabilities or other matters (the
&#147;<B>Environment-Related Matters</B>&#148;) are those set out in Section&nbsp;10 of <B>Annex&nbsp;1.1(Q) </B>and no
other Seller&#146;s Guarantee is given in relation to the Environment-Related Matters and
the Seller&#146;s Guarantees on Environment-Related Matters shall exclusively govern all
potential claims, liabilities or other matters the Purchaser may bring forward against
the Seller with regards to Environment-Related Matters, in particular Sections&nbsp;3.2
through 3.8 shall not apply to Environment-Related Matters;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">11.4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the operational activities of the Business, as currently or in the past conducted,
including related permits, claims of authorities or other matters (the
&#147;<B>Compliance-Related Matters</B>&#148;) are set out in Section&nbsp;9 of <B>Annex&nbsp;1.1(Q) </B>and no other
Seller&#146;s Guarantee is given in relation to the Compliance-Related Matters and the
Seller&#146;s Guarantees on Compliance-Related Matters shall exclusively govern all
potential claims, liabilities or other matters the Purchaser may bring forward against
the Seller with regards to Compliance-Related Matters, in particular Sections&nbsp;3.2
through 3.8 shall not apply to Compliance-Related Matters;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">11.4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Intellectual Property, or any related claims, liabilities or other matters (the
&#147;<B>IP-Related Matters</B>&#148;) are set out in Section&nbsp;4 and 12 of <B>Annex&nbsp;1.1(Q) </B>and no other
Seller&#146;s Guarantee is given in relation to the IP-Related Matters;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">11.4.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Heritable Building Right, real property of the Business and the Lease
Agreements, or any related claims, liabilities or other matters (the &#147;<B>Real
Property-Related Matters</B>&#148;) are set out in Sections&nbsp; 13, 14 and 15 of <B>Annex&nbsp;1.1(Q) </B>and
no other Seller&#146;s Guarantee is given in relation to the Real Property-Related Matters.</TD>
</TR>

</TABLE>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>None of the limitations in this Section&nbsp;11 or <B>Annex&nbsp;11.2 </B>shall apply to any Claim of the
Purchaser which arises as a consequence of gross negligence (<I>grobe Fahrl&#228;ssigkeit</I>), fraud or
wilful misconduct (<I>Vorsatz</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser undertakes to the Seller that, except in the case of gross negligence (<I>grobe
Fahrl&#228;ssigkeit</I>), fraud or wilful misconduct (<I>Vorsatz</I>) it waives and shall not make any claim
against any employee, director, agent or officer of the Business or member of the Pfizer Group
on whom it may have relied on in relation to any information supplied or omitted to be
supplied by any such person in connection with the Seller&#146;s Guarantees or this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PURCHASER&#146;S AND MANNKIND CORP.&#146;S GUARANTEES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties have extensively discussed and negotiated to which extent and in which way the
Purchaser and MannKind Corp. should be liable if it turns out that statements made by the
Purchaser or MannKind Corp. in this Section&nbsp;12 and <B>Annex&nbsp;12(A) </B>or <B>Annex 12(B) </B>are untrue or
incorrect. The Parties have decided to depart from the statutory system of liability and to
provide instead for a separate system of liability, as determined hereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser guarantees in the form of an independent guarantee according to section 311
para. 1 BGB (<I>selbstst&#228;ndiges Garantieversprechen</I>) that the Purchaser&#146;s Guarantees of
<B>Annex&nbsp;12(A) </B>are true and correct as at the date hereof or as at such date as expressly
referred to in <B>Annex&nbsp;12(A)</B>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>MannKind Corp. guarantees in the form of an independent guarantee according to section 311
para. 1 BGB (<I>selbstst&#228;ndiges Garantieversprechen</I>) that MannKind Corp.&#146;s Guarantees in Part&nbsp;I
of <B>Annex&nbsp;12(B) </B>and, only in case no Cash Notification has been received by the Seller in
accordance with Section&nbsp;7.11, all the Purchaser&#146;s Guarantees in Part&nbsp;II of <B>Annex&nbsp;12(B) </B>are
true and correct as at the date hereof or as at such date as expressly referred to in
<B>Annex&nbsp;12(B)</B>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INDEMNIFICATION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In case of a Claim resulting from a Breach, the Party liable for the Breach shall put the
other Party into the position such other Party would have been in without the Breach
(<I>Naturalrestitution</I>). If the Party is unable to achieve this position within a reasonable
period of time after having been notified by the other Party of the Breach, the other Party
may claim monetary damages (<I>Schadenersatz in Geld</I>) provided, however, that such damages shall
only cover actual and direct</TD>
</TR>

</TABLE>
</DIV>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>damages incurred (<I>Mangelschaden</I>) by the other Party, and shall in particular not cover (i)
any indirect or consequential damages (<I>Mangelfolgesch&#228;den</I>), (ii)&nbsp;losses caused by business
interruptions, (iii)&nbsp;lost revenues (<I>entgangene Einnahmen</I>), (iv)&nbsp;lost profit (<I>entgangener
Gewinn</I>), (v)&nbsp;damages and losses to goodwill, or (vi)&nbsp;reputational damages, and (vii)&nbsp;the
other Party is not entitled to claim damages based on any argument that the Purchase Price
has been calculated upon incorrect assumptions. The right of the other Party to rescind
(<I>R&#252;cktritt</I>) and the right of the other Party to demand damages in lieu of performance
(<I>Schadensersatz statt Leistung</I>) under this Agreement is expressly excluded.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without prejudice to its duty to mitigate any loss, each Party shall, at the other Party&#146;s
cost, provide all reasonable assistance to the Party to remedy any Breach.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties agree that the rights and remedies which the Seller on the one hand and the
Purchaser on the other hand may have in case of a guarantee being untrue and/or incorrect,
breach of a covenant or in case of an indemnification or otherwise contained in this Agreement
are limited to the rights and remedies (including claims for specific performance) expressly
contained in this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent legally permissible, any claims and rights of any Party of any legal nature
whatsoever (contractual, quasi-contractual, tort or otherwise) extending beyond the claims
expressly provided for in this Agreement, in particular further-reaching claims based on
defects, claims under section 280 BGB which according to former case law would have been
considered as claims based on breach of pre-contractual obligations (<I>culpa in contrahendo</I>) or
positive breach of contractual obligations (<I>Positive Vertragsverletzung</I>), rights to terminate
this Agreement because of the lack of essential characteristics and claims under section&nbsp;313
BGB and any other rights to terminate this Agreement or exercise any right or remedy which
would have a similar effect are hereby excluded and waived by the Parties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The provisions of this Section&nbsp;13 shall not apply to (i)&nbsp;rights and remedies which the Seller
may have under applicable law as a result of the Purchaser&#146;s failure to pay the Purchase Price
or any portion thereof in accordance with this Agreement, and (ii)&nbsp;any rights and remedies of
any Party for gross negligence (<I>grobe Fahrl&#228;ssigkeit</I>), fraud or wilful misconduct (<I>Vorsatz</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONDUCT OF CLAIMS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In case of an issue, matter or fact potentially giving rise to a Claim, the Party seeking
damages or indemnification under this Agreement (the &#147;<B>Indemnitee</B>&#148;)</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>from the other Party (the &#147;<B>Indemnitor</B>&#148;) shall (i)&nbsp;within reasonable promptness and in no
case later than within a period of one month after the Indemnitee becomes aware of the
matter, give written notice to the Indemnitor of the Breach, state the circumstances of the
Breach in reasonable detail, furnish reasonable proof as it has in its possession of the
Breach and, to the extent then feasible, set forth the estimated amount of such Breach and
(ii)&nbsp;shall grant the Indemnitor the opportunity to remedy the Breach within a reasonable
period of time of at least 45 Business Days, provided, that the failure of the Indemnitee
to give written notice to the Indemnitor within a period of one month shall relieve the
Indemnitor from the indemnification obligations herein unless the Indemnitor is not
actually prejudiced as a result of the failure to give such notice.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If claims are raised, legal or administrative proceedings commenced or threatened to be
commenced against the Indemnitee by a third party, including government agencies (a &#147;<B>Third
Party Claim</B>&#148;), which may give rise to a Claim, the Indemnitee shall notify the Indemnitor in
compliance with Section&nbsp;14.1 of such Third Party Claim. The Indemnitee shall ensure that the
Indemnitor shall (i)&nbsp;be provided with all materials, information (as it has in its possession)
and assistance relevant in relation to the Third Party Claim, (ii)&nbsp;be given reasonable
opportunity to comment or discuss with the Indemnitee any measures which the Indemnitor
proposes to take or to omit in connection with a Third Party Claim, and (iii)&nbsp;in particular,
the Indemnitor shall be given an opportunity to comment on, participate in, and review any
reports on social security audits, disputes or appeals or other measures and shall receive
without undue delay copies of all relevant notices (<I>Bescheide</I>) of any authority.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If and to the extent the Indemnitor depends on the cooperation of the Indemnitee, the
Indemnitee shall, to the extent legally possible for the Indemnitee, at the request and
expense of the Indemnitor, take all reasonable steps the Indemnitor may reasonably request
from the Indemnitee in that respect.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No admission of a Third Party Claim shall be made by or on behalf of the Indemnitee and the
Third Party Claim shall not be disposed of (<I>erledigt</I>) or settled (<I>verglichen</I>) without the
prior written consent of the Indemnitor, which consent shall not be unreasonably withheld.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Indemnitor shall be entitled at its own expense and its absolute discretion to take such
action as the Indemnitor shall deem necessary or appropriate to avoid, dispute, deny, defend,
resist, appeal, compromise or contest such Third Party Claim (including making counter claims
or other claims against third parties) in the name of and on behalf of the Indemnitee,
provided, however, that the In-</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>demnitor prior to such action has acknowledged in writing to the Indemnitee that the
Indemnitee will indemnify the Indemnitee from such Third Party Claim. The Indemnitee shall
give all such information and assistance, as described above, including access to premises
and personnel and the right to examine and copy or photograph any assets, accounts,
documents and records as the Indemnitor or its professional advisors may from time to time
request. The Indemnitor agrees to keep all such information confidential and only to use it
for such purpose.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent that the Indemnitor is in breach of a guarantee, breach of a covenant or in
case of an indemnification all costs and expenses incurred by the Indemnitor in defending such
claim shall be borne by the Indemnitor; if it turns out that the Indemnitor was not in breach,
any costs and expenses reasonably incurred by it in connection with the defence (including
adviser&#146;s fees and internal costs of its staff) shall be borne by the Indemnitee.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The failure of any Indemnitee to comply with the obligations of the Indemnitee under this
Section&nbsp;14 shall release any Indemnitor from its obligation to pay damages or to indemnify
under this Agreement, if and to the extent such damage or indemnification amount was directly
caused by such failure to comply with the obligations of the Indemnitee under this Section&nbsp;14.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any payments of the Indemnitor to the Indemnitee in connection with this Section&nbsp;14 shall be
considered as an adjustment of the Purchase Price.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONFIRMATIONS OF THE PURCHASER</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser confirms that when entering into this Agreement the Purchaser solely relies on
(i)&nbsp;its inspection and investigation of the Assets and the Business conducted in the sole
responsibility of the Purchaser, and (ii)&nbsp;the Information.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser had the opportunity to ask questions and seek further clarifications regarding
the Information.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser declares that the Purchaser is not aware of any facts or circumstances, which
could give rise to a Claim for Breach under this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>UNDERTAKINGS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In case of a LIP Business Sale Closing, the Seller shall indemnify and hold the Purchaser
harmless from and against any Taxes of the Seller relating to the</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Business for periods ending on or before the Closing Date for
which the Purchaser is held liable, in particular, but not limited
to, from and against any liability of the Purchaser according to
Section&nbsp;75 AO.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a LIP Asset Sale Closing,</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">16.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Purchaser, with the Seller&#146;s assistance and co-operation, shall within 9&nbsp;months
following the LIP Asset Sale Closing Date finalize the dismantling of any LIP Assets
from the buildings in which such assets are located on the Closing Date and fully
vacate the buildings and the land from any LIP Assets, provided that the dismantling
of any of the LIP Assets shall be made in strict compliance with any restrictions
imposed under the Heritable Building Right Agreement, and the Purchaser shall
indemnify and hold the Seller harmless from and against any liabilities and reasonable
costs incurred;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">16.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller shall negotiate and conclude as soon as reasonably practicable with the
works council a balance of interest (<I>Interessenausgleich</I>) and a social plan
(<I>Sozialplan</I>) regarding the dismissal of all Employees. Such agreement shall be made on
the basis of the entitlement of the Employees under the PSR or such other amount as
decided by the arbitration board (<I>Einigungsstelle</I>), unless the Parties agree
otherwise. The resulting Termination Payments shall be borne by the Seller up to the
Termination Payment Cap and any Termination Payments in excess of the Termination
Payment Cap shall be borne by the Purchaser and shall be paid by the Seller to the
Employees out of the Severance Funds Payment and any interest accruing on the balance
of the Severance Funds Payment. The Severance Funds Payment shall be put on a separate
interest bearing account, the Parties shall agree on a reasonable investment of the
Severance Funds Payment, and any interest accrued on the Severance Funds Payment shall
become part of the Severance Fund Payment available for distribution in accordance
with this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">16.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Parties shall share equally the payroll costs (regular monthly costs of
employment as existing on the Closing Date and consistent with the employment
agreements and past practice, excluding, for the avoidance of doubt, any extra
benefits like bonuses or one time payments, unless such payments are a result of a
binding agreement or past practice (<I>betriebliche &#220;bung</I>)) relating to the Employees for
the period from the Closing Date until the earlier of (i)&nbsp;31&nbsp;July&nbsp;2009 or (ii)&nbsp;the
date of termination of the affected Employees&#146; employment relationship according to
the balance of interest and the social plan described in Section&nbsp;16.2.2;</TD>
</TR>



</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">16.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller shall initiate good faith negotiations with Infraserv regarding
an early termination of the Heritable Building Right Agreement and shall return
Heritable Building Right to Infraserv as soon as possible after the earlier to
occur of (i)&nbsp;9&nbsp;months following the LIP Asset Sale Closing Date and (ii)
finalization of the dismantling pursuant to Section&nbsp;16.2.1 and shall pay Infraserv
an compensation due in connection with the early termination of the Heritable
Building Right Agreement (including site service agreements and investment
charges);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">16.2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if required pursuant to the discussions with Infraserv according to Section&nbsp;16.2.4,
the Seller shall tear down the Buildings as soon as reasonably practicable after the
earlier to occur of (i)&nbsp;9&nbsp;months following the LIP Asset Sale Closing Date and (ii)
finalization of the dismantling pursuant to Section&nbsp;16.2.1;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">16.2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notwithstanding the Termination Payment Cap subject to Section&nbsp;16.2.3 the operating
cost of the Business as well as all cost of shutting down the operations of the LIP
shall be borne by the Purchaser; the Seller shall apply (i)&nbsp;funds received as
Severance Funds Payment against payment of the Termination Payments in accordance with
Section&nbsp;16.2.2, (ii)&nbsp;the Down Payment and the Demolition Cost Payment against the
Demolition Costs, and shall provide to the Purchaser a detailed calculation of the
Termination Payments and the Demolitions Costs without undue delay upon finalization
of the measures set out under Sections&nbsp;16.2.1 through 16.2.5.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If and to the extent the sum of</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">(i)&nbsp;the Termination Payments, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">(ii)&nbsp;the Demolition Costs; <U>less</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">(iii)&nbsp;the amount of the Termination Payment Cap; <U>less</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">(iv) &#091;...***...&#093;; <U>plus</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">(v) &#091;...***...&#093; per day by which the LIP Asset Sale Closing occurred later than
the Infraserv Due Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">(together the &#147;<B>Actual Demolition Cost</B>&#148;)
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>exceeds the sum of</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">(i)&nbsp;the Severance Funds Payment;
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">(ii)&nbsp;the Down Payment; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">(iii)&nbsp;the Demolition Cost Payment;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%">(together the &#147;<B>Prepayments</B>&#148;),
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>then the Purchaser shall pay to the Seller the amount of such excess.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If and to the extent the Actual Demolition Cost are lower than the Prepayments,
then the Seller shall pay to the Purchaser the remaining balance.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">16.2.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller acknowledges and agrees that it has a duty to mitigate Demolition Costs
to the greatest extent possible and that it must act prudently and in good faith in
negotiating Termination Payments and Demolition Costs.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of the LIP Business Sale, the Parties acknowledge that it is the Purchaser&#146;s
intention to reduce the production level at the LIP after Closing to ten batches of bulk
insulin per calendar year. Infraserv is entitled to overcapacity payments for the drop of
utility consumption by the LIP below the level foreseen under the agreements between the
Seller and Infraserv comprised in the Contracts. Such payments will be calculated in view of
the remaining term of these agreements at Closing and will likely need to be prepaid. The
Purchaser shall keep the Seller reasonably informed about the progress of discussions
regarding the decrease in the production level with Infraserv comprised in the Contracts. The
Seller undertakes to compensate the Purchaser for such overcapacity payments up to a maximum
of &#091;...***...&#093;. If Closing occurs after the Infraserv Due Date, such cap shall be reduced by
&#091;...***...&#093; per day to reflect the then reduced exposure to Infraserv due to the shorter remaining
term of the contracts. For the avoidance of doubt, this Section&nbsp;16.3 shall not apply in the
event of a LIP Asset Sale.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If, within 5&nbsp;years after the Closing, it turns out that there are still Related IP-Rights or,
in case of a LIP Asset Sale, LIP Records, or in case of a LIP Business Sale, Records in
possession of the Seller or Pfizer Inc., the Seller or Pfizer Inc., as the case may be,
undertakes to transfer such Related IP-Rights, LIP Records or Records in rem (<I>dinglich</I>) to the
Purchaser as soon as practicable. For the avoidance of doubt, this undertaking shall in no
event be subject to the limitations set out under Section&nbsp;11.4</TD>
</TR>



</TABLE>
</DIV>
<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser is aware of and consents to the Seller conducting a full data harvest of
all electronic data of the Business existing up to the Closing Date (the &#147;<B>Data Harvest</B>&#148;).
The Seller shall be solely responsible for compliance of such Data Harvest with applicable
data protection laws. If the Data Harvest is not finalized until the Closing Date, the
Purchaser will assist the Seller in the finalization of the Data Harvest after the Closing
Date to the extent permitted by applicable data protection laws. The harvested data shall
be stored with a third party (the &#147;<B>Data Trustee</B>&#148;) after the finalization of the Data
Harvest. The Purchaser shall procure to the extent permitted by applicable data protection
laws that the Trustee grants access to the Seller to the harvested data in connection with
judicial, administrative, tax, audit, or arbitration proceedings (or threatening respective
proceedings) involving any company of the Seller Group which relate to or involve the
Business or this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller will not offer, sell, pledge, transfer or otherwise dispose of (or solicit any
offers to buy or otherwise acquire or take a pledge of) any of the Consideration Shares in
violation of the Securities Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Seller may request that MannKind Corp. remove, and MannKind Corp. agrees to authorize and
cause the removal of, any legend from the Consideration Shares, (i)&nbsp;following any sale of the
Consideration Shares pursuant to an effective Registration Statement or Rule&nbsp;144, or (ii)&nbsp;if
such Consideration Shares are eligible for sale under Rule&nbsp;144, without being subject to
condition or restriction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent that MannKind Corp. determines that it is required to file with the SEC
financial statements for the business acquired in connection with the acquisition of the
Assets, then the Seller and Pfizer Inc. shall provide MannKind Corp. with such assistance and
such information, including copies of audited and unaudited financial statements, and other
information to assist MannKind Corp. in the preparation of pro forma financial statements, of
the business acquired, as MannKind Corp. may reasonably request in connection with the
preparation by MannKind Corp. of one or more Current Reports on Form 8-K as may be required by
MannKind Corp. to satisfy its obligations under Items 2.01 and 9.01 of Form 8-K promulgated by
the SEC with respect to the acquisition of the Assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If requested by MannKind Corp., for a period of one year following the Closing Date the
Seller and Pfizer Inc. shall use their respective reasonable best efforts to obtain the
consent of KPMG LLP with respect to the inclusion of historical financial statements of the
business acquired to the extent MannKind Corp. is required to include them in the consolidated
financial statements of MannKind Corp. or&nbsp;in any registration statement, report or other
filing MannKind Corp. is</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>required to file with the SEC, any blue sky securities authority or any securities exchange
or market.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>MannKind Corp. shall promptly reimburse the Seller and Pfizer Inc. for their respective
out-of-pocket expenses reasonably incurred in complying with their obligations under
Section&nbsp;16.8 related to the preparation of pro forma financial statements; provided, however,
that the Seller and Pfizer Inc. acknowledge and agree that such expenses shall not include any
expenses incurred prior to the date of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONTRACTS IN THE EVENT OF A LIP BUSINESS SALE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to Section&nbsp;17.3.3, in the event of a LIP Business Sale, after the LIP Business Sale
Closing the Purchaser shall:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">17.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>perform all the Seller&#146;s obligations to be performed after the Closing Date under
each Contract (other than payment of the liabilities and settlement of the claims
referred to in Section&nbsp;3.2) in accordance with the terms of the Contract; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">17.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>indemnify the Seller on demand against each loss, liability and cost which the
Seller incurs as a result of the Purchaser&#146;s performance of the Seller&#146;s obligations
under each Contract (as referred to in clause&nbsp;17.1.1) to the extent that the loss,
liability or cost is attributable to the Purchaser&#146;s act or omission after the Closing
Date (including, without limitation, each loss, liability and cost incurred as a
result of defending or settling a claim alleging such a liability).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall indemnify the Purchaser against each loss, liability and cost which the
Purchaser incurs as a result of the Seller&#146;s performance of its obligations under each
Contract to the extent that the loss, liability or cost is attributable to the Seller&#146;s act or
omission whether before or after the Closing Date (including, without limitation, each loss,
liability and cost incurred as a result of defending or settling a claim alleging such a
liability).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a Contract cannot be transferred to the Purchaser except by an assignment made with a
specified Person&#146;s consent:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">17.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>this Agreement does not constitute an assignment or an attempted assignment of the
Contract if the assignment or attempted assignment would constitute a breach of the
Contract;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">17.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>both before and after the Closing Date the Purchaser and the Seller shall each make
all reasonable efforts to obtain the Person&#146;s consent to the assignment of the
Contract;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">17.3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>until the consent is obtained, the Seller shall at the Purchaser&#146;s sole cost and
risk do each act and thing reasonably requested of it by the Purchaser to enable
performance of the Contract and to provide for the Purchaser the benefits of the
Contract (including, without limitation, enforcement of a right of the Seller against
another party to the Contract arising out of its termination by the other party or
otherwise); andif the arrangements in clauses&nbsp;17.3.2 and 17.3.3 cannot be made in
respect of the Contract within six months after the Closing Date:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Party shall make all reasonable efforts to ensure that
the Contract is terminated without liability to either Party; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>neither Party has any further obligation to the other
relating to the Contract.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the avoidance of doubt, Sections&nbsp;17.1 through 17.3 shall not be applicable in the event
of a LIP Asset Sale.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>FUTURE RELATIONSHIP BETWEEN THE PFIZER GROUP AND THE BUSINESS, PARENT GUARANTEE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall release within a period of 5 (five)&nbsp;Business Days after the receipt of a
respective request of a company of the Pfizer Group such company of the Pfizer Group from and
the Purchaser shall deliver to the company of the Pfizer Group which made such request all
guarantees as listed on <B>Annex 18.1 </B>issued by such company of the Pfizer Group to third parties
for the benefit of the Business. This Section&nbsp;18.1 shall not apply in the event of a LIP Asset
Sale.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>MannKind Corp. hereby guarantees by way of an independent promise of guarantee pursuant to
Sec. 311 (1)&nbsp;BGB the proper fulfilment of all obligations of the Purchaser pursuant to this
Agreement, in particular, but not limited to all payments owed by the Purchaser under or in
connection with this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>NOTICES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless provided otherwise in this Agreement, all declarations of the Parties under this
Agreement which require receipt by the respective other Party must be made by registered mail
with return receipt (<I>Einschreiben mit R&#252;ckschein</I>) or</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>equivalent including courier with confirmation of receipt. The
declarations shall at the same time be sent by telefax.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller and Pfizer Inc. each appoints</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Mr Inderpal Singh<br>
Pfizer Inc.<br>
NYO 235-25-03<br>
235 East 42<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> Street<br>
New York NY 10017<br>
USA<br>
Fax-No.: &#043;1 (646)&nbsp;328 3113
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">copy to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Mr Lars Benger<br>
Mr Christoph Holstein<br>
Clifford Chance<br>
K&#246;nigsallee 59<br>
40215 D&#252;sseldorf<br>
Germany<br>
Fax-No.: &#043;49 (211)&nbsp;4355 5600
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">as its respective agent for service of process (<I>Zustellungsbevollm&#228;chtigter</I>) for all legal
proceedings involving Seller and MannKind Corp. arising out of or in connection with this
Agreement. This appointment shall only terminate upon the appointment of another agent for
service of process domiciled in Germany, provided that the agent for service of process is
an attorney admitted to the German bar (<I>in Deutschland zugelassener Rechtsanwalt</I>) and his
appointment has been notified to and approved in writing by Purchaser (which approval shall
not be unreasonably withheld). Seller and MannKind Corp. shall promptly after the date
hereof and upon the appointment of any new agent for service of process (as the case may
be) issue to the agent a written power of attorney (<I>Vollmachtsurkunde</I>) and shall
irrevocably instruct the agent to submit such deed in connection with any service of
process under this Agreement.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser appoints</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">David Thomson<br>
28903 North Ave. Paine<br>
Valencia, California, 91355<br>
USA<br>
Fax: &#043;1 661 775 2086
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">copy to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Dr.&nbsp;Benno Schwarz<br>
Gibson, Dunn &#038; Crutcher LLP<br>
Widenmayerstra&#223;e 10<br>
80538 M&#252;nchen<br>
Germany<br>
Fax-No.:&#043;49 (89)&nbsp;189 33 310
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>as its agent for service of process (<I>Zustellungsbevollm&#228;chtigter</I>) for all legal proceedings
involving Purchaser arising out of or in connection with this Agreement. This appointment
shall only terminate upon the appointment of another agent for service of process domiciled
in Germany, provided that the agent for service of process is an attorney admitted to the
German bar (<I>in Deutschland zugelassener Rechtsanwalt</I>) and his appointment has been notified
to and approved in writing by Seller (which approval shall not be unreasonably withheld).
Purchaser shall promptly after the date hereof and upon the appointment of any new agent
for service of process (as the case may be) issue to the agent a written power of attorney
(<I>Vollmachtsurkunde</I>) and shall irrevocably instruct the agent to submit such deed in
connection with any service of process under this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Party may at any time appoint one or more other authorized agents for the receipt of all
declarations that require receipt by the respective other Party by notice in accordance with
this Article&nbsp;19. However, for each Party at least one authorized agent for the receipt of all
declarations that require receipt by the respective other Party must be appointed.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONFIDENTIALITY, ANNOUNCEMENTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any information or documents relating to a Party, their respective businesses or the Business
and made available to another Party in connection with this Agreement shall not be disclosed
to third parties or published unless required by applicable law, rules or regulations.
However, this obligation shall not apply to information that is proven (i)&nbsp;to have been (or
have become) generally available (public domain) without breach of any obligation of any of
the Parties, (ii)&nbsp;to have been known to the disclosing Party prior to the disclosure by the
other Party, (iii)&nbsp;to have been independently developed by the disclosing Party, or (iv)&nbsp;to
have been received by the disclosing Party from a third party without any violation of any
obligation of such third party owed to the disclosing Party.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither Party shall, without the prior written consent of the respective other Party,
disclose the contents of this Agreement to third parties or make any information relating
thereto available to third parties. This shall not, however, apply to the extent a Party or an
affiliate of a Party is obliged to make any announcement or disclosure under applicable law or
regulation. The right of the Parties to disclose matters to advisers who are bound by law to
professional secrecy shall remain unaffected. Notwithstanding the foregoing, MannKind Corp.
shall be entitled to disclose the contents of this Agreement in connection with a potential
partnering transaction upon five Business Days notice to Pfizer Inc. unless Pfizer Inc.
reasonably refuses consent within such time period and further provided that MannKind Corp.
shall only be entitled to disclose the contents of this Agreement to a potential partner that
(i)&nbsp;is bound by an obligation of confidentiality and (ii)&nbsp;has been permitted to conduct due
diligence on MannKind Corp.&#146;s new drug application for its inhaled insulin product.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless otherwise provided for in this Agreement, neither Party shall make any public
announcement regarding the entering into of this Agreement without the prior written consent
of the other Parties, unless (i)&nbsp;in a reasonable judgment of a Party, required by, or
appropriate under applicable law or regulation, or (ii)&nbsp;except as required to perform this
Agreement. Reasonably prior to any permitted announcement the Party wishing to make the
announcement shall, to the extent possible without violation of legal restrictions, notify the
other Party thereof, provide to the other Party the proposed wording of the announcement,
consult with the other Party and take any requests of the other Party into due consideration.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ASSIGNMENT RESTRICTIONS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement and any rights and obligations hereunder may not be assigned and
transferred, in whole or in part, without the prior written consent of the other parties
hereto, except that the Purchaser may assign and transfer all or any rights and claims
hereunder (i)&nbsp;to its finance providers by way of security and all or any such claims may be
further assigned or transferred in enforcement of such security, and (ii)&nbsp;to an affiliate
of the Purchaser if and to the extent the Purchaser remains obliged to adhere to the terms
of this Agreement as joint obligor (<I>Gesamtschuldner</I>) with Purchaser&#146;s affiliate. The
Purchaser shall give notice of any such assignment or transfer to the Seller without undue
delay.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">22.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>COSTS AND TRANSFER TAXES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All expenses, costs, fees and charges in connection with the transactions contemplated
under this Agreement including without limitation, legal services, shall be borne by the
Party commissioning the respective expenses, costs, fees</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and charges unless expressly provided otherwise in this Agreement. All notarial fees as
well as the other costs, including costs for the administration of the Escrow Amount, that
result from the signing of this Agreement and the consummation of the transactions
contemplated in this Agreement, including any possible applicable transfer taxes, in
particular real estate transfer taxes and similar fees in connection with the sales or
transfers under this Agreement from the Seller to the Purchaser, shall be borne by the
Purchaser. The costs arising in connection with the notification of the transaction to the
competent authorities, including the costs charged by the competent authorities, shall be
borne by the Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>FINAL PROVISIONS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller and Pfizer Inc. shall be severally but not jointly liable for any of their
obligations under or in connection with this Agreement (<I>Haftung als Teilschuldner</I>; <I>Ausschluss
der gesamtschuldnerischen Haftung)</I>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any amendments to this Agreement shall be in writing, signed by each of the Parties to be
valid and require the explicit reference to this Agreement but need to be notarized only if
this is required by mandatory law. This is also applicable for an amendment of this
Clause&nbsp;23.2.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any provision of this Agreement or any provision to be incorporated into this Agreement is
or becomes invalid or impracticable or should a necessary provision not be contained in this
Agreement, the validity of this Agreement and the remaining provisions of this Agreement shall
remain unaffected. Instead of the invalid or impracticable provision or to bridge the gap, a
valid provision is applicable which to the fullest extent possible corresponds to what the
parties would have wanted or according to the sense and object of this Agreement would have
agreed if they had known the invalidity or impracticability or had realized the gap.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement shall be exclusively governed by and construed in accordance with the law of
the Federal Republic of Germany applicable to parties residing within the Federal Republic of
Germany (without regard to the conflicts of law provisions of the law of the Federal Republic
of Germany).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All disputes, controversies or claims arising from or in connection with this Agreement
(including questions concerning its validity) shall be finally and exclusively settled under
the Rules of Arbitration of the International Chamber of Commerce without recourse to the
ordinary courts of law. The arbitration tribu-</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>nal shall consist of 3 (three)&nbsp;arbitrators. The arbitration shall take place in Frankfurt
am Main. The arbitration shall be conducted in English but written evidence (<I>Beweismittel</I>)
may also be submitted in German. In the event that applicable mandatory law requires any
matter arising out of or connection with this Agreement and its implementation to be
decided by an ordinary court of law, the competent courts in Frankfurt am Main &#151; to the
extent legally possible &#151; shall have the exclusive jurisdiction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement comprises the entire agreement between the Parties concerning the subject
matter hereof and supersedes and replaces all prior negotiations, agreements and undertakings
of the parties whether oral or written, with respect to the subject matter hereof, including,
without limitation, the Heads of Terms of 13 February&nbsp;2009. The Parties agree that the
Confidentiality Agreement between the Parties dated 3&nbsp;January&nbsp;2008, as amended, shall become
invalid on the Closing Date. Oral or written side agreements to this Agreement do not exist.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Party shall from time to time execute and deliver all such further documents and
agreements and take all such further actions as the other Party may reasonably require and
which are not inconsistent with any other provisions of this Agreement in order to effectively
consummate this Agreement as provided herein.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Interest payable under any provision of this Agreement shall be calculated on the basis of
actual days elapsed divided by 360.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement shall not grant any rights to, and is not intended to operate for, the benefit
of third parties unless otherwise explicitly provided for herein.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as expressly provided otherwise in this Agreement, no Party shall be entitled (i)&nbsp;to
set-off (<I>aufrechnen</I>) any rights and claims it may have against any rights or claims any other
party may have under this Agreement, or (ii)&nbsp;to refuse to perform any obligation it may have
under this Agreement on the grounds of a right of retention (<I>Zur&#252;ckbehaltungsrecht</I>) unless the
rights or claims of the relevant Party claiming a right of set-off (<I>Aufrechnung</I>) or retention
(<I>Zur&#252;ckbehaltung</I>) have been acknowledged (<I>anerkannt</I>) in writing by the relevant other
party/parties or have been confirmed by final decision of a competent court (<I>Gericht</I>) or
arbitration court (<I>Schiedsgericht</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties shall undertake to notify the Notary promptly (<I>unverz&#252;glich</I>) upon the Condition
Precedent pursuant to Section&nbsp;2.2 having occurred. The notifica-</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>tion shall include the allocation for the purchase price required under Section&nbsp;4.4 of the
Agreement and a proposal to determine the basis for the purpose of the Real Estate Transfer
Tax (<I>Grunderwerbsteuer</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall instruct the Notary to make the Notification in accordance with Section&nbsp;7.4
to Sanofi-Aventis through a court marshal (<I>durch Gerichtsvollzieher</I>) and hereby empowers
(<I>bevollm&#228;chtigt</I>) the Notary to make such Notification in the name of the Seller.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">This recording has been read to the appeared in the presence of the Notary, was presented to them
for inspection together, approved by the appeared and signed by them and the notary as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">/s/ Authorized signatures
</DIV>



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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 10pt">FORM OF CONTINGENT VALUE RIGHTS AGREEMENT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This CONTINGENT VALUE RIGHTS AGREEMENT, dated as of <B>&#091;<B>&#149;</B>&#093;</B>, 2009 (the &#147;<U>Agreement</U>&#148;), is by
and between MannKind Corporation, a Delaware corporation (&#147;<U>MannKind</U>&#148;), and Pfizer
Manufacturing Frankfurt GmbH, a German limited liability company (&#147;<U>PMF</U>&#148;). Capitalized
terms not otherwise defined herein shall have the meanings ascribed to them in <U>Section&nbsp;1.1</U>
hereto.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">RECITALS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, this Agreement is made in connection with MannKind&#146;s purchase of certain assets from
PMF in exchange for <B>&#091;<B>&#149;</B>&#093; </B>shares of MannKind&#146;s common stock, par value $0.01 per share (each such
share of common stock received by PMF being referred to herein as &#147;<U>Share</U>&#148; and collectively
as the &#147;<U>Shares</U>&#148;), pursuant to that certain LIP Asset or Business Sale and Purchase
Agreement, dated as of <B>&#091;<B>&#149;</B>&#093;</B>, 2009 (the &#147;<U>Purchase Agreement</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, as an integral part of the consideration received by PMF under the Purchase
Agreement, MannKind agrees to grant to PMF certain contingent value rights relating to the Shares.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">AGREEMENT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the parties agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE I
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">DEFINITIONS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.1. <U>Definitions</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As used in this Agreement, the following terms shall have the following meanings:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affiliate</U>&#148; means, with respect to any Person, any other Person that directly, or
indirectly through one or more intermediaries, controls, is controlled by or is under common
control with the Person specified. The term &#147;<U>control</U>&#148; (including the terms
&#147;<U>controlling</U>,&#148; &#147;<U>controlled by</U>&#148; and &#147;<U>under common control with</U>&#148;) means
possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by contract or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreement</U>&#148; has the meaning provided in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bona Fide Offer</U>&#148; means an introduction and offer meeting the requirements in
<U>Section&nbsp;2.5</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bona Fide Offer Date</U>&#148; has the meaning provided in <U>Section&nbsp;2.1(d)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bona Fide Offer Payment</U>&#148; has the meaning provided in <U>Section&nbsp;2.1(d)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Day</U>&#148; means any day other than a Saturday, Sunday or any day on which banks
located in the State of New York, USA or Frankfurt am Main, Federal Republic of Germany are
authorized or required to be closed for the conduct or regular banking business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>CVR Payment</U>&#148; has the meaning provided in <U>Section&nbsp;2.1(a)</U>.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Disposition</U>&#148; means (a)&nbsp;the direct or indirect sale, lease, conveyance or other
disposition (other than by way of merger, consolidation or other similar business combination,
which events shall be dealt with solely by clause (b)&nbsp;of this definition) in one or a series of
related transactions, of all or substantially all of the properties or assets of MannKind and its
subsidiaries taken as a whole to any Person or group of Persons, or (b)&nbsp;the consummation of any
merger, consolidation or other transaction in which any Person or group of related Persons becomes
the beneficial owner, directly or indirectly, of more than 50% (or, in the case of Alfred E. Mann,
the Alfred E. Mann Living Trust, Mannco LLC, Biomed Partners, LLC or Biomed Partners II, LLC, 60%)
of the combined voting power of MannKind&#146;s capital stock except that a Disposition under clause&nbsp;(b)
shall not be deemed to have occurred if (i)&nbsp;in connection with such transaction all of the Shares
are exchanged solely for other publicly traded common stock of MannKind or another Person, the
acquiror assumes the obligations of MannKind under this Agreement with appropriate adjustments
being made to the terms of this Agreement to reflect such transaction and the economic benefits
intended to be conferred on PMF under this Agreement, all to the reasonable satisfaction of PMF, or
(ii)&nbsp;PMF and its Affiliates do not sell all of the Shares held by them in connection with such
transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Disposition Date</U>&#148; has the meaning provided in <U>Section&nbsp;2.1(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Disposition Payment</U>&#148; has the meaning provided in <U>Section&nbsp;2.1(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Insolvency Date</U>&#148; has the meaning provided in <U>Section&nbsp;2.1(c)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Insolvency Event</U>&#148; means the occurrence of any of the following events:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a court of competent jurisdiction entering a decree or similar order for relief in
respect of MannKind in an involuntary case under any applicable bankruptcy, insolvency or
similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee,
custodian, trustee or sequestrator (or similar official) of MannKind or for any substantial
part of its property or ordering the winding up or liquidation of its affairs; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) MannKind commencing a voluntary case under any applicable bankruptcy, insolvency
or similar law now or hereinafter in effect, or consenting to the entry of an order for
relief in an involuntary case under any such law, or consenting to the appointment of or
taking possession by a receiver, liquidator, assignee, custodian, trustee or sequestrator
(or similar official) of MannKind or any substantial part of its property, or making any
general assignment for the benefit of creditors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Insolvency Payment</U>&#148; has the meaning provided in <U>Section&nbsp;2.1(c)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Liquidity Event Value</U>&#148; means the amount obtained by multiplying the Stock Price by
the number of Shares held by PMF and its Affiliates on the Bona Fide Offer Date (for purposes of
<U>Sections 2.1(d)</U> and <U>2.5</U>) or on the Put Date (for purposes of <U>Sections&nbsp;2.1(e)</U>
and <U>2.6</U>), as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>MannKind</U>&#148; has the meaning provided in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Maturity Date</U>&#148; means the earlier to occur of (a) <B>&#091;<B>&#149;</B>&#093;</B>, 2010<SUP style="font-size: 85%; vertical-align: text-top">1</SUP> and (b)&nbsp;eight
months after a registration statement with respect to the Shares has been declared effective by the
U.S. Securities and Exchange Commission (or any successor regulatory body).
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>NOTE TO DRAFT: Insert date that is 14&nbsp;months following
the date of this Agreement.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; means any natural person, corporation, general partnership, limited
partnership, limited or unlimited liability company, proprietorship, trust, joint venture, other
business entity or governmental authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>PMF</U>&#148; has the meaning provided in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>PMF&#146;s Net Proceeds From Sales</U>&#148; means the aggregate amount of (a)&nbsp;any cash
consideration <U>plus</U> (b)&nbsp;the fair market value of any non-cash consideration, in each case
received by PMF and its Affiliates from the sale of Shares, and in each case as of the date of
receipt of such consideration by PMF or such Affiliates and net of any brokerage fees and
commissions or other similar fees or expenses paid or payable by PMF or its Affiliates in
connection with such sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Purchase Agreement</U>&#148; has the meaning provided in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Put Date</U>&#148; has the meaning provided in <U>Section&nbsp;2.1(e)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Put Payment</U>&#148; has the meaning provided in <U>Section&nbsp;2.1(e)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Put Right</U>&#148; has the meaning provided in <U>Section&nbsp;2.6</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Put Right Triggering Event</U>&#148; has the meaning provided in <U>Section&nbsp;2.6</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Put Shares</U>&#148; has the meaning provided in <U>Section&nbsp;2.6</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Shares</U>&#148; has the meaning provided in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Shelf Registration Statement</U>&#148; means the shelf registration statement under the U.S.
Securities Act of 1933, as amended, on Form S-3 that MannKind is required to file with the
Securities Exchange Commission pursuant the Registration Rights Agreement, dated <B>&#091;<B>&#149;</B>&#093;</B>,
2009<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>, between MannKind and PMF.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Standby Letter of Credit</U>&#148; means the irrevocable standby letter of credit in the
amount of $15&nbsp;million, naming PMF as a direct beneficiary, which is attached hereto as
<U>Exhibit&nbsp;A</U>.<SUP style="font-size: 85%; vertical-align: text-top">3</SUP>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Stock Price</U>&#148; has the meaning provided in the Purchase Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Target Value</U>&#148; means $<B>&#091;<B>&#149;</B>&#093; </B>million.<SUP style="font-size: 85%; vertical-align: text-top">4</SUP>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trading Days</U>&#148; means days on which trading generally takes place on the principal
exchange on which the Shares are trading and on which trading in MannKind&#146;s common stock has not
been suspended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Valuation Period</U>&#148; means the period commencing on the earlier of (a)&nbsp;the day the Shelf
Registration Statement is declared effective and (b)&nbsp;the six-month anniversary of the date of this
Agreement and ending on (and including) the Maturity Date (for purposes of Section&nbsp;2.1(a)), the
Disposition Date (for purposes of Section&nbsp;2.1(b)), the Insolvency Date (for purposes of Section
2.1(c)), the Bona Fide Offer Date (for purposes of Section&nbsp;2.1(d)) or the Put Date (for purposes of
Section&nbsp;2.1(e)), as applicable.
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>NOTE TO DRAFT: Insert the date the Registration Rights
Agreement is signed, which should be the date of this Agreement.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>NOTE TO DRAFT: The issuer of the letter of credit to be
reasonably acceptable to PMF. In the event that MannKind pays the purchase
price partially in cash and partially with shares, the amount of the Standby
LOC should be reduced proportionately.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">4</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>NOTE TO DRAFT: Insert the value of the shares
delivered at closing.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>VWAP</U>&#148; means the volume weighted average price per Share, as reported on Bloomberg,
for all of the Trading Days during the Valuation Period, on the principal exchange on which such
Shares are trading during such period. The parties understand and agree that if no Valuation
Period has occurred then VWAP shall in all cases mean &#147;0&#148; for purposes of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Interpretation</U>. As used in this Agreement, except to the extent that the
context otherwise requires:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;when a reference is made in this Agreement to a Section, such reference is to a Section of
this Agreement unless otherwise indicated;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the headings and subheadings in this Agreement are for reference purposes only and do not
affect in any way the meaning or interpretation of this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;whenever the words &#147;include,&#148; &#147;includes&#148; or &#147;including&#148; (or similar terms) are used in
this Agreement, they are deemed to be followed by the words &#147;without limitation&#148;;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;the words &#147;hereof,&#148; &#147;herein&#148; and &#147;hereunder&#148; and words of similar import, when used in
this Agreement, refer to this Agreement as a whole and not to any particular provision of this
Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;all terms defined in this Agreement have their defined meanings when used in any
certificate or other document made or delivered pursuant hereto, unless otherwise defined therein;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;the definitions contained in this Agreement are applicable to the singular as well as the
plural forms of such terms;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;references to a Person are also to its permitted successors and assigns; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;the use of &#147;or&#148; is not intended to be exclusive unless expressly indicated otherwise.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE II
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CONTINGENT VALUE RIGHTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.1. <U>Terms of the Contingent Value Right</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Maturity Date has been reached without one of Sections&nbsp;2.1(b) through 2.1(e)
having been triggered, MannKind shall pay to PMF an amount equal to the amount (if any) by which
the Target Value <U>exceeds</U> the greater of (i)&nbsp;VWAP <U>multiplied by</U> <B>&#091;<B>&#149;</B>&#093;</B><SUP style="font-size: 85%; vertical-align: text-top">5</SUP>
and (ii)&nbsp;the sum of (1)&nbsp;VWAP <U>multiplied by</U> the number of Shares held by PMF and its
Affiliates at the close of trading on the Maturity Date (or if the Maturity Date is not a
Trading Day, the immediately preceding Trading Day) <U>plus</U> (2)&nbsp;PMF&#146;s Net Proceeds From
Sales on or prior to the Maturity Date (such payment being referred to herein as the &#147;<U>CVR
Payment</U>&#148;). The CVR Payment (if any) shall be paid by MannKind no later than the third
Business Day after the Maturity Date by wire transfer of immediately available funds in U.S.
dollars to such account as PMF may direct by written notice to MannKind, which notice shall be
given to MannKind no later than one Business Day after the Maturity Date.
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">5</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>NOTE TO DRAFT: Insert the number of Shares delivered
to PMF at closing.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If a Disposition occurs prior to the Maturity Date (the date of the consummation of such
Disposition being referred to herein as the &#147;<U>Disposition Date</U>&#148;), MannKind shall pay to PMF
an amount equal to the amount (if any) by which the Target Value <U>exceeds</U> the greater of
(i)&nbsp;the sum of (1)&nbsp;VWAP <U>multiplied by</U> the number of Shares sold by PMF and its Affiliates
on or prior to the Disposition Date (other than pursuant to the Disposition) <U>plus</U> (2)&nbsp;PMF&#146;s
Net Proceeds From Sales of Shares in the Disposition or, in the case of a Disposition covered by
clause (a)&nbsp;of that definition, the fair market value of any dividends declared on the Shares held
by PMF and its Affiliates in connection with such Disposition, and (ii)&nbsp;the sum of (1)&nbsp;PMF&#146;s Net
Proceeds From Sales on or prior to the Disposition Date (other than pursuant to the Disposition)
<U>plus</U> (2)&nbsp;PMF&#146;s Net Proceeds from Sales of Shares in the Disposition or, in the case of a
Disposition covered by clause (a)&nbsp;of that definition, the fair market value of any dividends
declared on the Shares held by PMF and its Affiliates in connection with such Disposition (such
payment being referred to herein as the &#147;<U>Disposition Payment</U>&#148;). The Disposition Payment
(if any) shall be paid by MannKind no later than the third Business Day after the Disposition Date
by wire transfer of immediately available funds in U.S. dollars to such account as PMF may direct
by written notice to MannKind, which notice shall be given to MannKind no later than one Business
Day after the Disposition Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If an Insolvency Event occurs prior to the Maturity Date (the date on which such event
occurs being referred to herein as the &#147;<U>Insolvency Date</U>&#148;), MannKind shall pay to PMF an
amount equal to the amount (if any) by which the Target Value <U>exceeds</U> the greater of
(i)&nbsp;the sum of (1)&nbsp;VWAP <U>multiplied by</U> the number of Shares sold by PMF and its Affiliates
on or prior to the Insolvency Date <U>plus</U> (2)&nbsp;the fair market value of any remaining Shares
held by PMF and its Affiliates on the Insolvency Date and (ii)&nbsp;the sum of (1)&nbsp;the fair market
value of any remaining Shares held by PMF and its Affiliates on the Insolvency Date <U>plus</U>
(2)&nbsp;PMF&#146;s Net Proceeds From Sales on or prior to the Insolvency Date (such payment being referred
to herein as the &#147;<U>Insolvency Payment</U>&#148;). The Insolvency Payment (if any) shall be paid by
MannKind no later than the third Business Day after the Insolvency Date by wire transfer of
immediately available funds in U.S. dollars to such account as PMF may direct by written notice
to MannKind, which notice shall be given to MannKind promptly following receipt by PMF of notice
of the Insolvency Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If a Bona Fide Offer occurs prior to the Maturity Date (the date on which such Bona Fide
Offer occurs being referred to herein as the &#147;<U>Bona Fide Offer Date</U>&#148;), MannKind shall pay
to PMF an amount equal to the amount (if any) by which the Target Value <U>exceeds</U> the
greater of (i)&nbsp;the sum of (1) &nbsp;VWAP <U>multiplied by</U> the number of Shares sold by PMF and
its Affiliates on or prior to the Bona Fide Offer Date (other than pursuant to the Bona Fide
Offer) <U>plus</U> (2)&nbsp;the Liquidity Event Value and (ii)&nbsp;the sum of (1)&nbsp;the Liquidity Event
Value <U>plus</U> (2)&nbsp;PMF&#146;s Net Proceeds From Sales on or prior to the Bona Fide Offer Date
(other than pursuant to the Bona Fide Offer) (such payment being referred to herein as the
&#147;<U>Bona Fide Offer Payment</U>&#148;). The Bona Fide Offer Payment (if any) shall be paid by
MannKind no later than the third Business Day after the Bona Fide Offer Date (or, if earlier, the
third Business Day after the date on which PMF accepts a Bona Fide Offer) by wire transfer of
immediately available funds in U.S. dollars to such account as PMF may direct by written notice
to MannKind, which notice shall be given to MannKind no later than one Business Day after the
Bona Fide Offer Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If a Put Right Triggering Event occurs and PMF exercises the Put Right (the date on which the
Put Right is exercised being referred to herein as the &#147;<U>Put Date</U>&#148;), in consideration for
the Put Shares, MannKind shall pay to PMF (i)&nbsp;the Liquidity Event Value and (ii)&nbsp;an amount equal
to the amount (if any) by which the Target Value <U>exceeds</U> the greater of (1)&nbsp;the sum of
(x)&nbsp;VWAP <U>multiplied by</U> the number of Shares sold by PMF and its Affiliates on or prior to
the Put Date (other than pursuant to the Put Right) <U>plus</U> (y)&nbsp;the Liquidity Event Value
and (2)&nbsp;the sum of (x)&nbsp;the Liquidity Event Value <U>plus</U> (y)&nbsp;PMF&#146;s Net Proceeds From Sales
on or prior to the Put Date (other than pursuant to the Put Right) (such payment being referred
to herein as the &#147;<U>Put Payment</U>&#148;). The closing of the acquisition of Shares contemplated
by the exercise of the Put Right and the funding of the Put Payment shall occur on the third
Business Day
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">following the Put Date. Upon receipt of the Put Shares, duly endorsed to MannKind, the Put
Payment shall be paid by MannKind by wire transfer of immediately available funds in U.S. dollars
to such account as PMF may direct by written notice to MannKind, which notice shall be given no
later than one Business Day after the Put Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) PMF shall only be entitled to receive at most one payment pursuant to this
<U>Section&nbsp;2.1</U>, which payment (if any) shall be the first to become due and payable of the
CVR Payment, the Disposition Payment, the Insolvency Payment, the Bona Fide Offer Payment or the
Put Payment, as the case may be.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The parties shall cooperate in good faith to resolve, as promptly as practicable and in
any event within 15&nbsp;Business Days after such dispute arises, any disputes between them with
respect to the calculations required under this <U>Section&nbsp;2.1</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.2. <U>Characterization of Rights</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties agree that this Agreement, including PMF&#146;s rights to receive payments
hereunder, is an integral part of the consideration paid in connection with the transactions
contemplated by the Purchase Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The rights contained in this Agreement shall not be evidenced by any certificate or
other instrument.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement does not grant or provide any voting or dividend rights with respect to
any common stock of MannKind (including the Shares).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Agreement does not represent or provide any equity or ownership interest in
MannKind.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No amount of interest shall accrue on amounts that may become payable under this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.3. <U>Payment Restricting Action</U>. Neither MannKind nor any of its subsidiaries
shall enter into any agreement that would limit or restrict MannKind&#146;s ability to make the payments
required to be made to PMF pursuant to the terms of this Agreement or that would otherwise restrict
MannKind&#146;s ability to fund such payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.4. <U>Guarantee of Payment</U>. If MannKind shall fail to pay to PMF any amount
required to be paid pursuant to this Agreement, PMF shall be entitled to draw on the Standby Letter
of Credit to fund such amount following five days written notice to MannKind of PMF&#146;s intention to
do so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.5. <U>No Right to Payment</U>. MannKind shall not be required to make any payments
under <U>Section&nbsp;2.1</U> (other than under clause (d)&nbsp;thereof, if applicable) if it introduces PMF
to a <I>bona&nbsp;fide </I>prospective purchaser who makes a <I>bona&nbsp;fide</I>, written, all-cash offer to PMF to
acquire all of the Shares held by PMF and its Affiliates (in each case as determined by PMF acting
reasonably and in good faith), <U>provided</U> that (a)&nbsp;the cash consideration payable to PMF is
at least equal to the Liquidity Event Value and (b)&nbsp;the transaction is not conditioned on the
prospective purchaser obtaining financing or on any other condition not customary for such
transactions (in each case as determined by PMF acting reasonably and in good faith).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.6. <U>PMF Put Right</U>. If within any six-month period prior to the Maturity Date
MannKind consummates one or more public or private offerings or other sales of debt or equity
securities, and the aggregate proceeds of such offering or offerings equal or exceed &#091;...***...&#093; (a
&#147;<U>Put Right Triggering Event</U>&#148;), then PMF shall have
the right (&#147;<U>Put Right</U>&#148;) to re-
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt">quire MannKind to purchase all of the Shares then held by PMF and its Affiliates (such Shares, the
&#147;<U>Put Shares</U>&#148;) in exchange for the Put Payment. The Put Payment shall be calculated and
paid as provided in Section&nbsp;2.1(e) of this Agreement. In connection with the granting of the Put
Right, MannKind covenants and agrees that MannKind shall deliver or cause to be delivered to PMF
prompt written notice that a Put Right Triggering Event is expected to occur. Such notice shall be
delivered to PMF no later than three Business Days in advance of the anticipated settlement date of
the applicable securities offering or sale which is excepted to result in a Put Right Triggering
Event. PMF shall have five Business Days after receipt of such notice to exercise the Put Right.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE III
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">REPRESENTATIONS AND WARRANTIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.1. <U>PMF&#146;s Representations and Warranties</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) PMF is a limited liability company duly organized and validly existing under the laws of
Germany and has all requisite power and authority to own, license, use or lease and operate its
assets and properties and to carry on its business as it is now conducted.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) PMF has all requisite power and authority to execute and deliver this Agreement and to
perform the transactions contemplated by this Agreement. The execution and delivery of this
Agreement and the performance by PMF of the transactions contemplated by this Agreement have been
approved by all necessary actions and no other proceedings on the part of PMF are necessary to
authorize the execution and delivery of this Agreement by PMF and the performance by PMF of the
transactions contemplated by this Agreement. This Agreement has been duly executed and delivered
by PMF and, assuming the due authorization, execution and delivery of this Agreement by MannKind,
constitutes a valid and binding obligation of PMF, enforceable against PMF in accordance with its
terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The execution and delivery by PMF of this Agreement and the performance of the
transactions contemplated by this Agreement do not and will not (a)&nbsp;conflict with or result in a
breach of any provision of the organizational documents of PMF, (b)&nbsp;result in a violation or
breach of or constitute a default (or an event which, with or without notice or lapse of time or
both, would constitute a default) under, or result in the termination, modification or
cancellation of, or the loss of a benefit under or accelerate the performance required by, or
result in a right of termination, modification, cancellation or acceleration under the terms,
conditions or provisions of any material contract or other material instrument of any kind to
which PMF is now a party or by which PMF may be bound or affected, or (c)&nbsp;violate any order,
writ, injunction, decree, statute, treaty, rule or regulation applicable to PMF.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No declaration, filing or registration with, or notice to, or authorization, consent,
order or approval of, any governmental authority or other Person is required to be obtained or
made in connection with or as a result of the execution and delivery of this Agreement by PMF or
the performance by PMF of its obligations under and in accordance with this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.2. <U>MannKind&#146;s Representations and Warranties</U>.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) MannKind is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware and has all requisite corporate power and authority to own,
license, use, lease and operate its assets and properties and to carry on its business as it is
now being conducted.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) MannKind has all requisite corporate power and authority to execute and deliver this
Agreement and to perform the transactions contemplated by this Agreement. The execution and
delivery of this Agreement and the performance by MannKind of the transactions contemplated by
this Agreement have been approved by the Board of Directors of MannKind and no other corporate or
other proceedings on the part of MannKind are necessary to authorize the execution and delivery
of this Agreement by MannKind and the performance by MannKind of the transactions contemplated by
this Agreement. This Agreement has been duly executed and delivered by MannKind and, assuming
the due authorization, execution and delivery of this Agreement by PMF, constitutes a valid and
binding obligation of MannKind, enforceable against MannKind in accordance with its terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The execution and delivery by MannKind of this Agreement and the performance of the
transactions contemplated by this Agreement do not and will not (a)&nbsp;conflict with or result in a
breach of any provision of the respective certificates of incorporation or bylaws of MannKind,
(b)&nbsp;result in a violation or breach of or constitute a default (or an event which, with or
without notice or lapse of time or both, would constitute a default) under, or result in the
termination, modification or cancellation of, or the loss of a benefit under or accelerate the
performance required by, or result in a right of termination, modification, cancellation or
acceleration under the terms, conditions or provisions of any material contract or other material
instrument of any kind to which MannKind is now a party or by which MannKind may be bound or
affected, or (c)&nbsp;violate any order, writ, injunction, decree, statute, treaty, rule or regulation
applicable to MannKind.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No declaration, filing or registration with, or notice to, or authorization, consent,
order or approval of, any governmental authority or other Person is required to be obtained or
made in connection with or as a result of the execution and delivery of this Agreement by
MannKind or the performance by MannKind of its obligations under and in accordance with this
Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE IV
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">MISCELLANEOUS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.1. <U>Notices</U>. All notices and other communications under this Agreement shall
be in writing and shall be deemed duly given (a)&nbsp;when delivered personally or by prepaid overnight
courier, with a record of receipt, (b)&nbsp;the fourth day after mailing if mailed by certified mail,
return receipt requested or (c)&nbsp;the day of transmission, if sent by facsimile or telecopy during
regular business hours or the day after transmission, if sent after regular business hours (with a
copy promptly sent by prepaid overnight courier with record of receipt or by certified mail, return
receipt requested), to the parties at the following addresses or facsimile numbers (or to such
other address or facsimile number as a party may have specified by notice given to the other party
pursuant to this provision):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to MannKind:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">MannKind Corporation<BR>
28903 North Avenue Paine<BR>
Valencia, California 91355<BR>
USA<BR>
Fax: &#043;1 661 775 2086<BR>
Attention: David Thomson
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a copy to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Cooley Godward Kronish LLP<BR>
4401 Eastgate Mall<BR>
San Diego, California 92121<BR>
USA<BR>
Fax: &#043;1 858 550 6420<BR>
Attention: D. Bradley Peck
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to PMF:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Pfizer Inc.<BR>
235 East 42nd Street<BR>
New York, New York 10017<BR>
USA<BR>
Fax: &#043;1 646 328 3113<BR>
Attention: Inderpal Singh
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With copies (which shall not constitute notice) to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Clifford Chance<BR>
K&#246;nigsallee 59<BR>
40215 D&#252;sseldorf<BR>
Germany<BR>
Fax: &#043;49 211 43 555 600<BR>
Attention: Christoph Holstein<BR>
Lars Benger
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">Clifford Chance US LLP<BR>
31 West 52nd Street<BR>
New York, New York 10019<BR>
USA<BR>
Fax: &#043;1 212 878 8375<BR>
Attention: Benjamin K. Sibbett<BR>
Karl A. Roessner
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.2. <U>Entire Agreement, Amendments and Waiver</U>. This Agreement represents the
entire understanding and agreement between the parties hereto with respect to the subject matter
hereof and this Agreement can be amended, supplemented or changed, and any provision hereof can be
waived, only with the written consent of MannKind and PMF. No failure on the part of any party to
exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such
party preclude any other or further exercise thereof or the exercise of any other right, power or
remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies that may
be available to a party with respect to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.3. <U>Expenses</U>. Each party will pay its own costs and expenses incurred in
connection with the negotiation, execution and closing of this Agreement and the transactions
contemplated by this Agreement.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.4. <U>No Third-Party Beneficiary</U>. The terms and provisions of this Agreement
are intended solely for the benefit of each party hereto and their respective successors or
permitted assigns, and it is not the intention of the parties to confer third-party beneficiary
rights upon any other Person (except, for the avoidance of doubt, as provided by the Standby Letter
of Credit).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.5. <U>Assignment; Binding Effect</U>. Neither this Agreement nor any right,
interest or obligation under this Agreement may be assigned by any party to this Agreement and any
attempt to do so will be void.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.6. <U>Specific Performance</U>. The parties hereto agree that if any of the
provisions of this Agreement were not performed in accordance with their specific terms or were
otherwise breached, irreparable damage would occur, no adequate remedy at law would exist and
damages would be difficult to determine, and that the parties shall be entitled to specific
performance of the terms hereof, in addition to any other remedy at law or equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.7. <U>Termination</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall terminate upon the earliest to occur of (i)&nbsp;the receipt by PMF of a
CVR Payment, Disposition Payment, Insolvency Payment, Bona Fide Offer Payment or Put Payment and
(ii)&nbsp;14&nbsp;days after the earliest to occur of the Maturity Date, the Disposition Date, the
Insolvency Date or the Bona Fide Offer Date if no payments are required to be made by MannKind
pursuant to <U>Section&nbsp;2.1</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &#091;Promptly following termination of this Agreement pursuant to clause (a)&nbsp;of this
<U>Section&nbsp;3.7</U>, unless PMF has drawn down the full amount of the Standby Letter of Credit in
accordance with <U>Section&nbsp;2.4</U>, PMF shall deliver, or shall cause to be delivered, to
MannKind written acknowledgement or such other documents reasonably requested by MannKind or the
issuer of the Standby Letter of Credit to effect the cancellation of any undrawn balance under
the Standby Letter of Credit and the termination of any and all right of PMF to draw any further
amounts under the Standby Letter of Credit.&#093;<SUP style="font-size: 85%; vertical-align: text-top">6</SUP>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.8. <U>Invalid Provisions</U>. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under any present or future law, and if the rights or obligations
of any party hereto under this Agreement will not be materially and adversely affected thereby,
(a)&nbsp;such provision will be fully severable, (b)&nbsp;this Agreement will be construed and enforced as if
such illegal, invalid or unenforceable provision had never comprised a part hereof, (c)&nbsp;the
remaining provisions of this Agreement will remain in full force and effect and will not be
affected by the illegal, invalid or unenforceable provision or by its severance herefrom and (d)&nbsp;in
lieu of such illegal, invalid or unenforceable provision, there will be added automatically as a
part of this Agreement a legal, valid and enforceable provision as similar in terms to such
illegal, invalid or unenforceable provision as may be possible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.9. <U><B>GOVERNING LAW</B></U><B>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD FOR THE CONFLICTS OF LAWS
PRINCIPLES THEREOF.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.10. <U><B>CONSENT TO JURISDICTION AND SERVICE OF PROCESS</B></U><B>. EACH PARTY HEREBY
IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK OR ANY COURT OF THE STATE OF NEW YORK LOCATED IN THE COUNTY OF NEW
YORK IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING ARISING IN CONNECTION WITH</B>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">6</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>NOTE TO DRAFT: Subject to review by PMF of the letter
of credit.</TD>
</TR>

</TABLE>


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<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY, AND AGREES THAT ANY SUCH ACTION, SUIT
OR PROCEEDING SHALL BE BROUGHT ONLY IN SUCH COURT (AND WAIVES ANY OBJECTION BASED ON </B><B><I>FORUM NON
CONVENIENS </I></B><B>OR ANY OTHER OBJECTION TO VENUE THEREIN); PROVIDED, HOWEVER, THAT SUCH CONSENT TO
JURISDICTION IS SOLELY FOR THE PURPOSE REFERRED TO IN THIS SECTION 4.10 AND SHALL NOT BE DEEMED TO
BE A GENERAL SUBMISSION TO THE JURISDICTION OF SAID COURTS OR IN THE STATE OF NEW YORK OTHER THAN
FOR SUCH PURPOSE. </B>Any and all process may be served in any action, suit or proceeding arising in
connection with this Agreement by complying with the provisions of Section&nbsp;4.1. Such service of
process shall have the same effect as if the party being served were a resident in the State of New
York and had been lawfully served with such process in such jurisdiction. The parties hereby waive
all claims of error by reason of such service. Nothing herein shall affect the right of any party
to service process in any other manner permitted by law or to commence legal proceedings or
otherwise proceed against the other in any other jurisdiction to enforce judgments or rulings of
the aforementioned courts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.11. <U>Counterparts</U>. This Agreement may be executed in any number of
counterparts, all of which will constitute one and the same instrument.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;<I>Signatures begin on the next page</I>&#093;
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MANNKIND CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">PFIZER MANUFACTURING FRANKFURT GMBH<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 10pt">FORM OF REGISTRATION RIGHTS AGREEMENT
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This REGISTRATION RIGHTS AGREEMENT, dated as of <B>&#091;<B>&#149;</B>&#093;</B>, 2009, is entered into by and between
MannKind Corporation, a Delaware corporation (the &#147;<U>Company</U>&#148;), and Pfizer Manufacturing
Frankfurt GmbH, a German limited liability company (&#147;<U>PMF</U>&#148;). Capitalized terms not
otherwise defined herein shall have the meanings ascribed to them in <U>Section&nbsp;1</U> hereto.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">RECITALS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, this Agreement is made in connection with the Company&#146;s purchase of certain assets
from PMF in exchange for <B>&#091;<B>&#149;</B>&#093; </B>shares of the Company&#146;s common stock, par value $0.01 per share (the
&#147;<U>Common Stock</U>&#148;), pursuant to that certain LIP Asset or Business Sale and Purchase
Agreement, dated as of March <B>&#091;<B>&#149;</B>&#093;</B>, 2009 (the &#147;<U>Purchase Agreement</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, as an integral part of the consideration received by PMF under the Purchase
Agreement, the Company agrees to provide to PMF the registration rights provided for in this
Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">AGREEMENT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the parties hereto hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <U>Definitions</U>. As used in this Agreement, the following terms shall have the
following meanings:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreement</U>&#148; shall mean this Registration Rights Agreement as originally executed and
as amended, supplemented or restated from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Date</U>&#148; shall mean <B>&#091;<B>&#149;</B>&#093;</B>, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Common Stock</U>&#148; shall have the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commission</U>&#148; shall mean the U.S. Securities and Exchange Commission or any successor
governmental agency or authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company</U>&#148; shall have the meaning set forth in the preamble and shall include the
Company&#146;s successors by merger, acquisition, reorganization, conversion or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company Indemnified Party</U>&#148; shall have the meaning set forth in <U>Section&nbsp;5(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective Date</U>&#148; shall have the meaning set forth in <U>Section&nbsp;2(c)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effectiveness Deadline</U>&#148; shall mean the 30<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day after the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effectiveness Failure</U>&#148; shall have the meaning set forth in <U>Section&nbsp;2(d)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange Act</U>&#148; shall mean the U.S. Securities Exchange Act of 1934, as amended and the
rules and regulations promulgated thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>FINRA</U>&#148; shall mean the Financial Industry Regulatory Authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Form&nbsp;S-3</U>&#148; shall mean such form under the Securities Act as in effect on the date of
this Agreement or any successor or similar form under the Securities Act.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Form&nbsp;S-4</U>&#148; shall mean such form under the Securities Act as in effect on the date of
this Agreement or any successor or similar form under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Free Writing Prospectus</U>&#148; shall have the meaning set forth in Rule&nbsp;433 promulgated by
the Commission under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnified Party</U>&#148; shall mean a party entitled to indemnity in accordance with
<U>Section&nbsp;5</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnifying Party</U>&#148; shall mean a party obligated to provide indemnity in accordance
with <U>Section&nbsp;5</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Inspectors</U>&#148; shall have the meaning set forth in <U>Section&nbsp;3(i)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Liquidated Damages</U>&#148; shall have the meaning set forth in <U>Section&nbsp;2(d)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Losses</U>&#148; shall have the meaning set forth in <U>Section&nbsp;5(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Maintenance Failure</U>&#148; shall have the meaning set forth in <U>Section&nbsp;2(d)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; shall mean any natural person, partnership, corporation, limited liability
company, general partnership, limited partnership, limited liability partnership, joint venture,
association, trust, unincorporated organization or any other governmental or legal entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>PMF</U>&#148; shall have the meaning set forth in the preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>PMF Indemnified Party</U>&#148; shall have the meaning set forth in <U>Section&nbsp;5(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Prospectus</U>&#148; shall mean the prospectus included in the Shelf Registration Statement,
as amended or supplemented by any prospectus supplement, with respect to the terms of the offering
of any portion of the Registrable Securities covered by the Shelf Registration Statement, and any
issuer Free Writing Prospectus, amendments and supplements to the Prospectus, and all material
incorporated by reference in such Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Purchase Agreement</U>&#148; shall have the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Records</U>&#148; shall have the meaning set forth in <U>Section&nbsp;3(i)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registrable Securities</U>&#148; shall mean (i)&nbsp;the shares of Common Stock acquired by PMF
pursuant to the Purchase Agreement and (ii)&nbsp;any and all shares of Common Stock that may be issued
to PMF in respect of, in exchange for, or in substitution for any Registrable Securities, whether
by reason of any stock split, stock dividend, reverse stock split, recapitalization, business
combination, rights or other offering or otherwise; <U>provided</U> that such shares of Common
Stock shall cease to be Registrable Securities when: (A)&nbsp;such shares shall have been sold pursuant
to a registration statement or Rule&nbsp;144 (in which case, only such shares that have been sold shall
cease to be Registrable Securities), (B)&nbsp;in the opinion of counsel to PMF,&nbsp;all such Registrable
Securities shall have become eligible for sale by PMF pursuant to Rule&nbsp;144, without being subject
to condition or restriction or (C)&nbsp;such Registrable Securities shall have ceased to be outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registration Expenses</U>&#148; shall mean any and all expenses related to or arising from the
Company&#146;s performance of or compliance with its obligations under this Agreement to effect the
registration of Registrable Securities in the Shelf Registration, including all registration,
filing, securities exchange listing and FINRA fees, all registration, filing, qualification and
other fees and expenses of complying with federal and state securities laws, all word processing,
duplicating and printing expenses, messenger and delivery expenses, the fees and disbursements of
counsel for the Company and
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of its independent public accountants, and any and all fees and disbursements customarily paid by
issuers. Registration Expenses shall not include Selling Expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rule&nbsp;144</U>&#148; shall mean Rule&nbsp;144 promulgated by the Commission under the Securities Act,
and any successor provision thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities Act</U>&#148; shall mean the U.S. Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Selling Expenses</U>&#148; shall mean all fees and expenses of any legal counsel, accountants
and other representatives of PMF or other seller of Registrable Securities and all commissions or
transfer taxes, if any, with respect to the Registrable Securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Shelf Registration</U>&#148; shall mean the registration of Registrable Securities under the
Securities Act made in accordance with <U>Section&nbsp;2</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Shelf Registration Statement</U>&#148; shall have the meaning set forth in
<U>Section&nbsp;2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trading Day</U>&#148; shall mean a day on which trading actually takes place on the principal
exchange on which the Common Stock is traded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <U>Interpretation</U>. As used in this Agreement, except to the extent that the context
otherwise requires:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;when a reference is made in this Agreement to a Section, such reference is to a Section of
this Agreement unless otherwise indicated;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the headings and subheadings in this Agreement are for reference purposes only and do not
affect in any way the meaning or interpretation of this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;whenever the words &#147;include,&#148; &#147;includes&#148; or &#147;including&#148; (or similar terms) are used in
this Agreement, they are deemed to be followed by the words &#147;without limitation&#148;;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;the words &#147;hereof,&#148; &#147;herein&#148; and &#147;hereunder&#148; and words of similar import, when used in
this Agreement, refer to this Agreement as a whole and not to any particular provision of this
Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;all terms defined in this Agreement have their defined meanings when used in any
certificate or other document made or delivered pursuant hereto, unless otherwise defined therein;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;the definitions contained in this Agreement are applicable to the singular as well as the
plural forms of such terms;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;references to a Person are also to its permitted successors and assigns; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;the use of &#147;or&#148; is not intended to be exclusive unless expressly indicated otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Shelf Registration</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Shelf Registration Statement</U>. As soon as reasonably practicable after the Closing
Date, but in no event later than 10&nbsp;days after the Closing Date, the Company shall file with the
Commission a shelf registration statement under the Securities Act on Form S-3 (or any similar or
successor form)&nbsp;exclusively for the resale, from time to time, of all of the Registrable Securities
(the &#147;<U>Shelf Registration Statement</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Effectiveness</U>. The Company shall use its reasonable best efforts to cause such
Shelf Registration Statement to be declared effective by the Commission as soon as practicable
after the date on which it is filed with the Commission, but in no event later than 30&nbsp;days after
the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Continued Effectiveness</U>. The Company shall use its reasonable best efforts to keep
the Shelf Registration Statement continuously effective for the period beginning on the date on
which the Shelf Registration Statement is declared effective (the &#147;<U>Effective Date</U>&#148;) and
ending on the date that is the earlier of (i)&nbsp;two years after the Effective Date and (ii)&nbsp;the date
on which all of the Registrable Securities registered under the Shelf Registration Statement cease
to be Registrable Securities. During the period that the Shelf Registration Statement is
effective, the Company shall supplement or make amendments to the Shelf Registration Statement, if
required by the Securities Act, and shall use its reasonable best efforts to have such supplements
and amendments declared effective, if required, as soon as practicable after filing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>Effectiveness Failure; Maintenance Failure</U>. If (i)&nbsp;the Shelf Registration
Statement is not declared effective by the Commission by the Effectiveness Deadline (an
&#147;<U>Effectiveness Failure</U>&#148;) or (ii)&nbsp;on any date after the Effective Date, sales of any
Registrable Securities cannot be made pursuant to the Shelf Registration Statement (including,
because of a failure to keep the Shelf Registration Statement effective, failure to disclose such
information as is necessary for sales to be made pursuant to the Shelf Registration Statement,
failure to register a sufficient number of shares of Common Stock or failure to maintain the
listing of the Common Stock on the Nasdaq Global Market but excluding the inability of PMF to sell
the Registrable Securities covered thereby due to market conditions) other than as a result of a
breach of this Agreement by PMF (a &#147;<U>Maintenance Failure</U>&#148;), the Company shall make payments
to PMF, as liquidated damages reflecting a reasonable approximation of the uncertain damages by
reason of the delay or reduction of PMF&#146;s ability to sell the Registrable Securities, in an amount
in cash equal to &#091;...***...&#093; on each of the following dates (x)&nbsp;in the case of an Effectiveness
Failure, every 30th day (pro rated for shorter periods) after an Effectiveness Failure occurs and
until such Effectiveness Failure is cured and (y)&nbsp;in the case of a Maintenance Failure, every 30th
day (pro rated for shorter periods) after a Maintenance Failure occurs and until such Maintenance
Failure is cured. Such payments are referred to in this Agreement as &#147;<U>Liquidated Damages</U>&#148;.
The parties agree that (1)&nbsp;in no event shall the Company be liable in any 30-day period for
Liquidated Damages under this Agreement in excess of &#091;...***...&#093; and (2)&nbsp;the maximum aggregate
Liquidated Damages payable under this Agreement shall be &#091;...***...&#093;. The Effectiveness Deadline shall
be extended without default or Liquidated Damages hereunder in the event that the Company&#146;s failure
to obtain the effectiveness of the Shelf Registration Statement prior to the Effectiveness Deadline
results from the failure of PMF or its affiliates, agents or representatives (including its
accountants) to timely provide the Company with information reasonably requested by the Company and
necessary to complete the Shelf Registration Statement in accordance with
</DIV>
<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the requirements of the Securities Act. The Company shall not be required to pay Liquidated
Damages allocable to any day on which an Effectiveness Failure or Maintenance Failure exists or
existed solely as a result of any action by PMF that is intended to restrain, enjoin or otherwise
delay any registration of Registrable Securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<U>Registration Expenses</U>. All Registration Expenses incurred in connection with the
Shelf Registration shall be paid by the Company. All Selling Expenses shall be borne by the
applicable seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Registration Procedures</U>. Without limiting the Company&#146;s obligations under
Section&nbsp;2, the Company will, as expeditiously as possible, use its reasonable best efforts to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. prepare and file with the Commission such amendments and supplements to the Shelf
Registration Statement and any Prospectus used in connection therewith as may be necessary to
maintain the effectiveness of the Shelf Registration Statement and to comply with the provisions of
the Securities Act with respect to the disposition of all Registrable Securities covered by the
Shelf Registration Statement, in accordance with the intended methods of disposition thereof for
the applicable period specified in <U>Section&nbsp;2</U>;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. promptly notify PMF:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;when the Shelf Registration Statement or any Prospectus used in connection therewith, or
any amendment or supplement thereto, has been filed and, with respect to the Shelf Registration
Statement or any post-effective amendment thereto, when the same has become effective;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;of any written comments from the Commission with respect to any filing referred to in
clause&nbsp;(i) and of any written request by the Commission for amendments or supplements to the Shelf
Registration Statement or Prospectus;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;of the notification to the Company by the Commission of its initiation of any proceeding
with respect to the issuance by the Commission of, or of the issuance by the Commission of, any
stop order suspending the effectiveness of the Shelf Registration Statement; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;of the receipt by the Company of any notification with respect to the suspension of the
qualification of any Registrable Securities for sale under the applicable securities laws of any
jurisdiction;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">and, in the case of clauses (ii), (iii)&nbsp;and (iv), promptly use its reasonable best efforts (A)&nbsp;to
respond satisfactorily to the Commission and to file promptly any necessary amendments, (B)&nbsp;to
avoid the issuance of any stop order or to obtain its withdrawal if such stop order should be
issued and (C)&nbsp;to obtain the withdrawal of any such suspension of qualification.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. furnish to PMF such number of conformed copies of the Shelf Registration Statement and of
each amendment and supplement thereto (in each case including all exhibits and documents
incorporated by reference), such number of copies of the Prospectus contained in the Shelf
Registration Statement (including each preliminary Prospectus and any summary Prospectus) and any
other Prospectus filed under Rule&nbsp;424 promulgated under the Securities Act relating to the
Registrable Securities, and such other documents as PMF may reasonably request to facilitate the
disposition of its Registrable Securities;
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. register or qualify all Registrable Securities covered by the Shelf Registration Statement
under such other securities laws of such jurisdictions as PMF shall reasonably request, to keep
such registration or qualification in effect for so long as the Shelf Registration Statement
remains in effect, and promptly take any other action which may be reasonably necessary or
advisable to enable PMF to consummate the disposition in such jurisdictions of the Registrable
Securities owned by PMF, except that the Company shall not for any such purpose be required (i)&nbsp;to
qualify generally to do business as a foreign corporation in any jurisdiction wherein it would not
but for the requirements of this paragraph (d)&nbsp;be obligated to be so qualified, (ii)&nbsp;to subject
itself to taxation in any such jurisdiction or (iii)&nbsp;to consent to general service of process in
any jurisdiction;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. cause all Registrable Securities covered by the Shelf Registration Statement to be
registered with or approved by such other governmental agencies or authorities as may be necessary
to enable PMF to consummate the disposition of such Registrable Securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. promptly notify PMF, at any time when a Prospectus relating to its Registrable Securities
covered by a the Shelf Registration Statement is required to be delivered under the Securities Act,
of the happening of any event as a result of which any Prospectus included in the Shelf
Registration Statement, as then in effect, includes an untrue statement of a material fact or omits
to state any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading, and at the
request of PMF promptly prepare and furnish to PMF a reasonable number of copies of a supplement to
or an amendment of such Prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such securities, such Prospectus shall not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. comply with all applicable rules and regulations of the Commission;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. as far in advance as is practical before filing the Shelf Registration Statement and all
amendments and supplements thereto, furnish PMF copies of reasonably complete drafts of all such
documents proposed to be filed (including exhibits) and PMF shall have the opportunity to object to
any information pertaining solely to it that is contained therein and the Company will promptly
make the corrections reasonably requested by PMF with respect to such information prior to filing
the Shelf Registration Statement or any such amendment or supplement thereto;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. promptly make available for inspection by PMF and any attorney, accountant or other agent
retained by PMF (collectively, the &#147;<U>Inspectors</U>&#148;), if requested, all financial and other
records, pertinent corporate documents and properties of the Company (collectively, the
&#147;<U>Records</U>&#148;) as shall be reasonably necessary to enable them to exercise their due diligence
responsibility, and cause the Company&#146;s officers, directors and employees to supply all information
reasonably requested by any such Inspector in connection with the Shelf Registration Statement.
Records that the Company determines, in good faith, to be confidential and which it notifies the
Inspectors are confidential shall not be disclosed by the Inspectors unless (i)&nbsp;the disclosure of
such Records is necessary to avoid or correct a misstatement or omission in the Shelf Registration
Statement and PMF enters into a written confidentiality agreement with the Company in a form
reasonably acceptable to the Company, (ii)&nbsp;the release of such Records is ordered pursuant to a
subpoena or other order from a court of competent jurisdiction or (iii)&nbsp;the information in such
Records has been made generally available to the public. PMF agrees by acquisition of such
Registrable Securities that it will, upon learning that disclosure of such Records is sought in a
court of competent jurisdiction, give notice to the Company and allow the Company, at the Company&#146;s
expense, to undertake appropriate action to prevent disclosure of the Records deemed confidential.
The Company
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt">shall not be required to delay the filing of the Shelf Registration Statement or any amendment
or supplement thereto as a result of any ongoing review or other diligence inquiry by the
Inspectors;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. promptly provide a transfer agent and registrar for all Registrable Securities covered by
the Shelf Registration Statement and a CUSIP number for all Registrable Securities, in each case
not later than the effective date of the Shelf Registration Statement; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. use its reasonable best efforts to cause all Registrable Securities covered by the Shelf
Registration Statement to be listed, upon official notice of issuance, on any securities exchange
on which any of the securities of the same class as the Registrable Securities are then listed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company may require PMF, and PMF, as a condition to including its Registrable Securities
in such registration, shall, furnish the Company with such information regarding PMF and the
distribution of such securities as shall be required to effect the registration of PMF&#146;s
Registrable Securities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PMF agrees by acquisition of such Registrable Securities that upon receipt of any notice from
the Company of the happening of any event of the kind described in paragraph (f)&nbsp;of this
<U>Section&nbsp;3</U>, PMF will forthwith discontinue its disposition of such Registrable Securities
pursuant to the Shelf Registration Statement relating to such Registrable Securities until PMF
receives copies of the supplemented or amended Prospectus contemplated by paragraph (f)&nbsp;of this
<U>Section&nbsp;3</U> and, if so directed by the Company, will deliver to the Company (at the Company&#146;s
expense) all copies, other than permanent file copies, then in PMF&#146;s possession of the Prospectus
relating to such Registrable Securities current at the time of receipt of such notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Holdback Agreements</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>By PMF</U>. PMF shall suspend, upon written request of the Company, any disposition of
Registrable Securities pursuant to the Shelf Registration Statement and Prospectus during no more
than two periods of no more than up to 20 consecutive Trading Days each during any 12-month period
to the extent that the Board of Directors of the Company determines in good faith, based on the
written opinion of counsel, that the sale of Registrable Securities under the Shelf Registration
Statement would be likely to cause a violation of the Securities Act or Exchange Act. Such a
request by the Company shall not be deemed to effect a Maintenance Failure and no Liquidation
Damages or default shall result from such a request by the Company or compliance by PMF with this
<U>Section&nbsp;4(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>By the Company</U>. The Company agrees not to effect any public sale or distribution
of its equity securities, or any securities convertible into or exchangeable or exercisable for
such securities, during the 14&nbsp;days prior to the estimated effective date, and the 90&nbsp;days after
the effective date, of the Shelf Registration Statement (or for such shorter period of time as is
sufficient and appropriate, in the opinion of PMF), in order to complete the sale and distribution
of the securities included in such registration, except pursuant to registrations on Form&nbsp;S-4 or
registered offerings of securities to employees pursuant to any employee benefit plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Hedging Arrangements</U>. The restrictions in this <U>Section&nbsp;4</U> shall also apply
to the entering into of any swap or other arrangement that transfers to another, in whole or in
part, any of the economic consequences of the ownership of the Registrable Securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Indemnification</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Indemnification by the Company</U>. The Company shall, to the fullest extent permitted
by law, indemnify and hold harmless PMF and each of PMF&#146;s
officers, directors, employees, rep-
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">resentatives, shareholders, members and each other Person, if any, who controls PMF within the
meaning of the Securities Act, and each of their respective officers, directors, employees and
representatives (each of the foregoing, a &#147;<U>PMF Indemnified Party</U>&#148;), in connection with the
Shelf Registration, against any losses, claims, damages, expenses or liabilities (or actions or
proceedings in respect thereof, whether or not such PMF Indemnified Party is a party thereto)
(together, &#147;<U>Losses</U>&#148;) to which a PMF Indemnified Party may become subject under the
Securities Act or otherwise, insofar as such Losses arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the Shelf Registration
Statement, any preliminary Prospectus, final Prospectus, or summary Prospectus contained therein or
any issuer Free Writing Prospectus, or any amendment or supplement thereto, or any omission or
alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein (in the case of a Prospectus, in the light of the circumstances under
which they were made) not misleading, or any violation or alleged violation by the Company of the
Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated
under the Securities Act or the Exchange Act or any state securities law, and the Company will
reimburse such PMF Indemnified Party for any legal or any other expenses reasonably incurred by
them in connection with investigating or defending any such Loss; <U>provided</U> that the Company
shall not be liable under this <U>Section&nbsp;5(a)</U> to the extent that any such Loss arises out of
or is based upon an untrue statement or alleged untrue statement or omission or alleged omission
made in the Shelf Registration Statement, preliminary Prospectus, final Prospectus, summary
Prospectus, amendment or supplement in reliance upon and in conformity with written information
furnished to the Company through an instrument duly executed by a PMF Indemnified Party
specifically stating that it is for use in the preparation thereof. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of a PMF Indemnified
Party, and shall survive the transfer of Registrable Securities by PMF.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Indemnification by PMF</U>. PMF shall, to the fullest extent permitted by law,
indemnify and hold harmless the Company and each of the Company&#146;s officers, directors, employees,
representatives, shareholders, members and each other Person, if any, who controls the Company
within the meaning of the Securities Act, and each of their respective officers, directors,
employees and representatives (each of the foregoing, a &#147;<U>Company Indemnified Party</U>&#148;) in
connection with the Shelf Registration, against any Losses to which a Company Indemnified Party may
become subject under the Securities Act or otherwise, insofar as such Losses arise out of or are
based upon any untrue statement or alleged untrue statement of any material fact contained in the
Shelf Registration Statement, any preliminary Prospectus, final Prospectus or summary Prospectus
contained therein, or any amendment or supplement thereto, in each case, concerning PMF, or any
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein (in the case of a Prospectus, in the light of the
circumstances under which they were made) not misleading, if such untrue statement or alleged
untrue statement or omission or alleged omission was made in reliance upon and in conformity with
written information furnished to the Company through a written instrument duly executed by a PMF
Indemnified Party specifically stating that it is for use in the preparation thereof or any
violation or alleged violation by a PMF Indemnified Party of the Securities Act, the Exchange Act,
any state securities law or any rule or regulation promulgated under the Securities Act or the
Exchange Act or any state securities law; <U>provided</U>, <U>however</U>, that PMF shall not be
liable under this <U>Section&nbsp;5(b)</U> for any amounts in excess of the aggregate amount of net
proceeds PMF receives in connection with sales of Registrable Securities pursuant to the Shelf
Registration Statement. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Company or any Company Indemnified Party and shall
survive the transfer of Registrable Securities by PMF.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Notices of Claims, Etc.</U> Promptly after receipt by an Indemnified Party of notice
of the commencement of any action or proceeding involving a claim referred to in the preceding
paragraph (a)&nbsp;or (b)&nbsp;of this <U>Section&nbsp;5</U>, such Indemnified Party will, if a claim in respect
thereof is to be
made against an Indemnifying Party pursuant to such paragraphs, give written notice to the
latter of the com-
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">mencement of such action, <U>provided</U> that the failure of any Indemnified Party to give
notice as provided herein shall not relieve the Indemnifying Party of its obligations under the
preceding paragraphs of this <U>Section&nbsp;5</U>, except to the extent that the Indemnifying Party is
actually prejudiced by such failure to give notice. In case any such action is brought against an
Indemnified Party, the Indemnifying Party shall be entitled to participate in and, unless, in the
reasonable judgment of any Indemnified Party, a conflict of interest between such Indemnified Party
and any Indemnifying Party exists with respect to such claim, to assume the defense thereof,
jointly with any other Indemnifying Party similarly notified to the extent that it may wish, with
counsel reasonably satisfactory to such Indemnified Party, and after notice from the Indemnifying
Party to such Indemnified Party of its election so to assume the defense thereof, the Indemnifying
Party shall not be liable to such Indemnified Party for any legal or other expenses subsequently
incurred by the latter in connection with the defense thereof other than reasonable costs of
investigation; <U>provided</U> that the Indemnified Party may participate in such defense at the
Indemnified Party&#146;s expense; and <U>provided</U> <U>further</U> that the Indemnified Party or
Indemnified Parties shall have the right to employ one counsel to represent it or them if, in the
reasonable judgment of the Indemnified Party or Indemnified Parties, it is advisable for it or them
to be represented by separate counsel by reason of having legal defenses which are different from
or in addition to those available to the Indemnifying Party, and in that event the reasonable fees
and expenses of such one counsel shall be paid by the Indemnifying Party. If the Indemnifying
Party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated
to pay the fees and expenses of more than one counsel for the Indemnified Parties with respect to
such claim, unless in the reasonable judgment of any Indemnified Party a conflict of interest may
exist between such Indemnified Party and any other Indemnified Parties with respect to such claim,
in which event the Indemnifying Party shall be obligated to pay the fees and expenses of such
additional counsel for the Indemnified Parties. No Indemnifying Party shall consent to entry of
any judgment or enter into any settlement without the consent of the Indemnified Party which does
not include as an unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or litigation. No
Indemnifying Party shall be subject to any liability for any settlement made without its consent,
which consent shall not be unreasonably delayed or withheld.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>Contribution</U>. If the indemnity and reimbursement obligation provided for in any
paragraph of this <U>Section&nbsp;5</U> is unavailable or insufficient to hold harmless an Indemnified
Party in respect of any Losses (or actions or proceedings in respect thereof) referred to therein,
then the Indemnifying Party shall contribute to the amount paid or payable by the Indemnified Party
as a result of such Losses (or actions or proceedings in respect thereof) in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party on the one hand and the
Indemnified Party on the other hand in connection with statements or omissions which resulted in
such Losses, as well as any other relevant equitable considerations; <U>provided</U>,
<U>however</U>, PMF shall not be liable under this <U>Section&nbsp;5(d)</U> for any amounts in excess
of the aggregate amount of net proceeds PMF receives in connection with the sales of Registrable
Securities pursuant to the Shelf Registration Statement. The relative fault shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to information supplied by the
Indemnifying Party or the Indemnified Party and the parties&#146; relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or omission. The parties
hereto agree that it would not be just and equitable if contributions pursuant to this paragraph
were to be determined by pro rata allocation or by any other method of allocation which does not
take account of the equitable considerations referred to in the first sentence of this paragraph.
The amount paid by an Indemnified Party as a result of the Losses referred to in the first sentence
of this paragraph shall be deemed to include any legal and other expenses reasonably incurred by
such Indemnified Party in connection with investigating or defending any Loss which is the subject
of this paragraph.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Indemnified Party guilty of fraudulent misrepresentation (within the meaning of
Section&nbsp;11(f) of the Securities Act) shall be entitled to any contribution from the Indemnifying
Party if the Indemnifying Party was not guilty of such fraudulent misrepresentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <U>Other Indemnification</U>. Indemnification similar to that specified in the preceding
paragraphs of this <U>Section&nbsp;5</U> (with appropriate modifications) shall be given by the Company
and PMF in connection with any required registration or other qualification of securities under any
federal or state law or regulation of any governmental authority other than the Securities Act.
The provisions of this <U>Section&nbsp;5</U> shall be in addition to any other rights to
indemnification or contribution which an Indemnified Party may have pursuant to law, equity,
contract or otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <U>Indemnification Payments</U>. The indemnification required by this <U>Section&nbsp;5</U>
shall be made by periodic payments of the amount thereof during the course of the investigation or
defense, as and when bills are received or Losses are incurred.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Covenants Relating to Rule&nbsp;144</U>. The Company covenants that it shall use
its reasonable best efforts to file in a timely fashion all reports and other documents required to
be filed by it under the Securities Act and the Exchange Act and that it will take such further
action as PMF may reasonably request, all to the extent required from time to time to enable PMF to
sell Registrable Securities without registration under the Securities Act pursuant to (i)&nbsp;Rule&nbsp;144
or (ii)&nbsp;any similar rule or regulation hereafter adopted by the Commission. Upon the request of
PMF, the Company will deliver to PMF a written statement as to whether it has complied with such
requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Other Registration Rights</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <U>No Existing Agreements</U>. The Company represents and warrants to PMF that there is
not in effect on the date hereof any agreement by the Company (other than this Agreement) pursuant
to which any holders of securities of the Company have a right to cause the Company to register or
qualify such securities under the Securities Act or any securities laws of any jurisdiction that
would have the effect of impairing the rights granted herein or would otherwise conflict with any
provision of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <U>Future Agreements</U>. The Company shall not hereafter agree with the holders of any
securities (other than PMF) issued or to be issued by the Company to register or qualify such
securities under the Securities Act or any securities laws of any jurisdiction unless such
agreement specifically provides that such holder of such securities may not participate in the
Shelf Registration without PMF&#146;s prior written consent, except to the extent expressly permitted by
this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <U>Mergers, Etc.</U> The Company shall not, directly or indirectly, enter into
any merger, consolidation or reorganization in which the Company shall not be the surviving
corporation unless the proposed surviving corporation shall, immediately after such merger,
consolidation or reorganization, agree in writing to assume the obligations of the Company under
this Agreement, and for that purpose references hereunder to &#147;Registrable Securities&#148; shall be
deemed to be references to the securities which PMF and its affiliates would be entitled to receive
in exchange for Registrable Securities under any such merger, consolidation or reorganization;
<U>provided</U>, <U>however</U>, that the provisions of this <U>Section&nbsp;8</U> shall not apply in
the event of any merger, consolidation or reorganization in which the Company is not the surviving
corporation if PMF and its affiliates are entitled to receive in exchange for their Registrable
Securities consideration consisting solely of cash.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9. <U>PMF Representations and Warranties</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;PMF is a limited liability company duly organized and validly existing under the laws of
Germany and has all requisite power and authority to own, license, use or lease and operate its
assets and properties and to carry on its business as it is now conducted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;PMF has all requisite power and authority to execute and deliver this Agreement and to
perform the transactions contemplated by this Agreement. The execution and delivery of this
Agreement and the performance by PMF of the transactions contemplated by this Agreement have been
approved by all necessary actions and no other proceedings on the part of PMF are necessary to
authorize the execution and delivery of this Agreement by PMF and the performance by PMF of the
transactions contemplated by this Agreement. This Agreement has been duly executed and delivered
by PMF and, assuming the due authorization, execution and delivery of this Agreement by the
Company, constitutes a valid and binding obligation of PMF, enforceable against PMF in accordance
with its terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;The execution and delivery by PMF of this Agreement and the performance of the transactions
contemplated by this Agreement do not and will not (i)&nbsp;conflict with or result in a breach of any
provision of the organizational documents of PMF, (ii)&nbsp;result in a violation or breach of or
constitute a default (or an event which, with or without notice or lapse of time or both, would
constitute a default) under, or result in the termination, modification or cancellation of, or the
loss of a benefit under or accelerate the performance required by, or result in a right of
termination, modification, cancellation or acceleration under the terms, conditions or provisions
of any material contract or other material instrument of any kind to which PMF is now a party or by
which PMF may be bound or affected, or (iii)&nbsp;violate any order, writ, injunction, decree, statute,
treaty, rule or regulation applicable to PMF.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;No declaration, filing or registration with, or notice to, or authorization, consent, order
or approval of, any governmental authority or other Person is required to be obtained or made in
connection with or as a result of the execution and delivery of this Agreement by PMF or the
performance by PMF of the obligations under and in accordance with this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10. <U>Company Representations and Warranties</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;The Company is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware and has all requisite corporate power and authority to own,
license, use, lease and operate its assets and properties and to carry on its business as it is now
being conducted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;The Company has all requisite corporate power and authority to execute and deliver this
Agreement and to perform the transactions contemplated by this Agreement. The execution and
delivery of this Agreement and the performance by the Company of the transactions contemplated by
this Agreement have been approved by the Board of Directors of the Company and no other corporate
or other proceedings on the part of the Company are necessary to authorize the execution and
delivery of this Agreement by the Company and the performance by the Company of the transactions
contemplated by this Agreement. This Agreement has been duly executed and delivered by the Company
and, assuming the due authorization, execution and delivery of this Agreement by PMF, constitutes a
valid and binding obligation of the Company, enforceable against the Company in accordance with its
terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;The execution and delivery by the Company of this Agreement and the performance of the
transactions contemplated by this Agreement do not and will not (i)&nbsp;conflict with or result in a
breach of any provision of the respective certificates of incorporation or bylaws of the Company,
(ii)&nbsp;result in a violation or breach of or constitute a default (or an event which, with or without
notice or lapse of
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">time or both, would constitute a default) under, or result in the termination, modification or
cancellation of, or the loss of a benefit under or accelerate the performance required by, or
result in a right of termination, modification, cancellation or acceleration under the terms,
conditions or provisions of any material contract or other material instrument of any kind to which
the Company is now a party or by which the Company may be bound or affected, or (iii)&nbsp;violate any
order, writ, injunction, decree, statute, treaty, rule or regulation applicable to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;No declaration, filing or registration with, or notice to, or authorization, consent, order
or approval of, any governmental authority or other Person is required to be obtained or made in
connection with or as a result of the execution and delivery of this Agreement by the Company or
the performance by the Company of its obligations under and in accordance with this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11. <U>Miscellaneous</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Notices</U>. All notices and other communications under this Agreement shall be in
writing and shall be deemed duly given (i)&nbsp;when delivered personally or by prepaid overnight
courier, with a record of receipt, (ii)&nbsp;the fourth day after mailing if mailed by certified mail,
return receipt requested or (iii)&nbsp;the day of transmission, if sent by facsimile or telecopy during
regular business hours or the day after transmission, if sent after regular business hours (with a
copy promptly sent by prepaid overnight courier with record of receipt or by certified mail, return
receipt requested), to the parties at the following addresses or facsimile numbers (or to such
other address or facsimile number as a party may have specified by notice given to the other party
pursuant to this provision):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Company:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">MannKind Corporation<BR>
28903 North Avenue Paine<BR>
Valencia, California 91355
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 0pt">USA<BR>
Fax: &#043;1 661 775 2086<BR>
Attention: David Thomson, Esq.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a copy to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">Cooley Godward Kronish LLP<BR>
4401 Eastgate Mall<BR>
San Diego, California 92121
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 0pt">USA<BR>
Fax: &#043; 1 858 550 6420<BR>
Attention: D. Bradley Peck, Esq.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to PMF:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">Pfizer Inc.<BR>
235 East 42nd Street<BR>
New York, New York 10017<BR>
USA<BR>
Fax: &#043; 1 646 328 3113<BR>
Attention: Inderpal Singh
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With copies (which shall not constitute notice) to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">Clifford Chance<BR>
K&#246;nigsallee 59<BR>
40215 D&#252;sseldorf<BR>
Germany<BR>
Fax: &#043;49 211 43 555 600<BR>
Attention: Christoph Holstein<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lars Benger
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">Clifford Chance US LLP<BR>
31 West 52nd Street<BR>
New York, New York 10019<BR>
USA<BR>
Fax: &#043;1 212 878 8375<BR>
Attention: Benjamin K. Sibbett<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Karl A. Roessner
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Entire Agreement; Amendments and Waiver</U>. This Agreement represents the entire
understanding and agreement between the parties hereto with respect to the subject matter hereof
and this Agreement can be amended, supplemented or changed, and any provision hereof can be waived,
only with the written consent of the Company and PMF. No failure on the part of any party to
exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such
party preclude any other or further exercise thereof or the exercise of any other right, power or
remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies that may
be available to a party with respect to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Severability</U>. If any provision of this Agreement is held to be illegal, invalid or
unenforceable under any present or future law, and if the rights or obligations of any party hereto
under this Agreement will not be materially and adversely affected thereby, (i)&nbsp;such provision will
be fully severable, (ii)&nbsp;this Agreement will be construed and enforced as if such illegal, invalid
or unenforceable provision had never comprised a part hereof, and (iii)&nbsp;the remaining provisions of
this Agreement will remain in full force and effect and will not be affected by the illegal,
invalid or unenforceable provision or by its severance herefrom. Upon determination that any term
or other provision of this Agreement is invalid, illegal or unenforceable, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the parties
as closely as possible in an acceptable manner to the end that the transactions contemplated by
this Agreement are fulfilled to the greatest extent possible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>Binding Effect; Assignment</U>. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and permitted assigns. No assignment of
this Agreement or of any rights or obligations hereunder may be made by either party without the
prior written consent of the other party and any attempted assignment without such consent shall be
void. Notwithstanding the foregoing, the rights to cause the Company to register Registrable
Securities pursuant to this Agreement may be assigned to any affiliate of PMF to which PMF may
transfer Registrable Securities without the consent of any other party hereto, <U>provided</U>
that (i)&nbsp;the Company is, within a reasonable time after such transfer, furnished with written
notice of the name and address of such transferee and the securities with respect to which such
registration rights are being assigned and (ii)&nbsp;any such transferee agrees in writing to be bound
by the provisions of this Agreement that apply to PMF.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<U>No Third-Party Beneficiary</U>. The terms and provisions of this Agreement are
intended solely for the benefit of each party hereto, their respective successors or permitted
assigns and it is not the intention of the parties to confer third-party beneficiary rights upon
any other Person other than any Person entitled to indemnity under <U>Section&nbsp;5</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.&nbsp;<U>Specific Performance</U>. The parties hereto agree that if any of the provisions of
this Agreement were not performed in accordance with their specific terms or were otherwise
breached, irreparable damage would occur, no adequate remedy at law would exist and damages would
be difficult to determine, and that the parties shall be entitled to specific performance of the
terms hereof, in addition to any other remedy at law or equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.&nbsp;<U><B>GOVERNING LAW</B></U><B>. THIS AGREEMENT, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.&nbsp;<U><B>CONSENT TO JURISDICTION AND SERVICE OF PROCESS</B></U><B>. EACH PARTY HEREBY IRREVOCABLY
SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT
OF NEW YORK OR ANY COURT OF THE STATE OF NEW YORK LOCATED IN THE COUNTY OF NEW YORK IN RESPECT OF
ANY ACTION, SUIT OR PROCEEDING ARISING IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTIONS
CONTEMPLATED HEREBY, AND AGREES THAT ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE BROUGHT ONLY IN
SUCH COURT (AND WAIVES ANY OBJECTION BASED ON </B><B><I>FORUM NON CONVENIENS </I></B><B>OR ANY OTHER OBJECTION TO VENUE
THEREIN); PROVIDED, HOWEVER, THAT SUCH CONSENT TO JURISDICTION IS SOLELY FOR THE PURPOSE REFERRED
TO IN THIS </B><U><B>SECTION 11(h)</B></U><B> AND SHALL NOT BE DEEMED TO BE A GENERAL SUBMISSION TO THE
JURISDICTION OF SAID COURTS OR IN THE STATE OF NEW YORK OTHER THAN FOR SUCH PURPOSE. </B>Any and all
process may be served in any action, suit or proceeding arising in connection with this Agreement
by complying with the provisions of <U>Section&nbsp;11(a)</U>. Such service of process shall have the
same effect as if the party being served were a resident in the State of New York and had been
lawfully served with such process in such jurisdiction. The parties hereby waive all claims of
error by reason of such service. Nothing herein shall affect the right of any party to service
process in any other manner permitted by law or to commence legal proceedings or otherwise proceed
against the other in any other jurisdiction to enforce judgments or rulings of the aforementioned
courts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;<U>Counterparts</U>. This Agreement may be executed in any number of counterparts, each
of which will be deemed an original, but all of which together will constitute one and the same
instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.&nbsp;<U>Termination.</U> The registration rights provided to PMF hereunder, and the Company&#146;s
obligation to keep the Shelf Registration Statement effective, shall terminate at such time as
there are no Registrable Securities outstanding. Notwithstanding the foregoing, Section&nbsp;5 and
Section&nbsp;9 shall survive termination of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.&nbsp;<U>Compliance.</U> PMF covenants and agrees that it will comply with the prospectus
delivery requirements of the Securities Act as applicable to it in connection with the sales of
Registrable Securities pursuant to the Shelf Registration Statement and shall sell the Registrable
Securities only in accordance with a method of distribution described in the Shelf Registration
Statement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;Signature page follows.&#093;
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized
officer of each party hereto as of the date first above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MANNKIND CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">PFIZER MANUFACTURING FRANKFURT GMBH<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;Signature Page to Registration Rights Agreement&#093;
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>ANNEX 1.1(Q) &#150; SELLER&#146;S GUARANTEES</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SELLER&#146;S GENERAL GUARANTEES</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The following Sections&nbsp;1 and 2 of this Annex 1.1(Q) shall apply in the event of a LIP Asset Sale
and in the event of a LIP Business Sale:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>AUTHORIZATION OF THE SELLER</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, subject to the approvals referred to in the
Agreement, the execution and performance by the Seller of the Agreement are within the
Seller&#146;s corporate powers, do not violate the articles of association of the Seller and will
be, prior to the Closing Date, duly authorized by all necessary corporate action on the part
of the Seller.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, assuming compliance with any applicable
requirements under merger control laws, the execution and performance of the Agreement by the
Seller requires no approval or consent by any governmental authority and does not violate any
applicable law or decision by any court or governmental authority binding on the Seller.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof, there is no lawsuit, investigation or proceeding pending or, to the
Seller&#146;s best knowledge, threatened in writing against the Seller before any court, arbitrator
or governmental authority which in any manner challenges or seeks to prevent, alter or
materially delay the transactions contemplated by the Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>LEGAL ORGANIZATION OF THE SELLER</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, the Seller has been duly established under the
laws of the Federal Republic of Germany, and the Seller validly exists under the laws of the
Federal Republic of Germany.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, no bankruptcy or insolvency proceedings are
pending with respect to the Seller, and no such proceedings have been pending and no
circumstances existed according to which the Seller was insolvent and obliged to initiate such
proceedings under applicable laws.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, the Seller is a wholly-owned indirect subsidiary
of Pfizer Inc.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>B.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SELLER&#146;S ADDITIONAL GUARANTEES IN THE EVENT OF A LIP ASSET SALE</B></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">In the event of a LIP Asset Sale, the following Sections&nbsp;3 and 4 of this Annex 1.1(Q) shall apply
in addition to Sections&nbsp;1 and 2 and, if applicable, Sections&nbsp;17 through 25 of this Annex 1.1(Q):
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>LIP ASSETS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as set forth in <B>Schedule&nbsp;3</B>, the Seller has good and valid title to, or, in the case
of leased or licensed property and assets, valid rights as lessee or licensee in all fixed
and current assets which form part of the Assets, free and clear of any liens, pledges,
security interests, transfer restrictions, encumbrances, options, or other rights of third
parties of whatever kind, except for assets (i)&nbsp;disposed of since 19 February&nbsp;2009 in the
ordinary course of business, (ii)&nbsp;which are subject to vendors&#146; retention of title rights
(<I>Eigentumsvorbehalt</I>) and/or (iii)&nbsp;for which the book value or commercial value does not
exceed EUR 10,000 (Euro: ten thousand).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>RELATED IP-RIGHTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the best knowledge of the Seller, the Seller has good and valid title to the Related
IP-Rights, free and clear of any liens, pledges, security interests, transfer restrictions,
encumbrances, options, or other rights of third parties of whatever kind.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within the 24 (twenty four) months prior to the date hereof, the Seller has not been served
written notice and, to the Seller&#146;s best knowledge, has not been orally informed of formal
proceedings relating to the validity, nullification, interference with or voiding of the
Related IP-Rights nor are such proceedings pending or, to the Seller&#146;s best knowledge,
threatening, and no reason exists to the Seller&#146;s best knowledge that the Related IP-Rights
become nullified, declared invalid, unenforceable or void.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within the 24 (twenty four) months prior to the date hereof, the Seller has not been served
written notice and, to the Seller&#146;s best knowledge, has not been orally informed of formal
proceedings commenced by a third party against the Seller asserting an infringement,
misappropriation or violation of third party rights by the use of any of the Related IP-Rights
nor are such proceedings pending or, to the Seller&#146;s best knowledge, threatening.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the Seller&#146;s best knowledge, the Related IP-Rights have been properly maintained and
protected until the Closing Date, in particular in relation to applications in a timely manner
for renewals and the payment when due of all registration and renewal fees as well as all
annuities.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>NO OTHER GUARANTEE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a LIP Asset Sale, aside from the Seller&#146;s Guarantees set out in Sections&nbsp;1
through 4 and, if applicable, Sections&nbsp;17 through 25 of this Annex 1.1(Q), the Seller does
not give any further express or implied guarantees, especially the Seller does not give any
express or implied guarantees regarding the legal, economic or financial position of the
Business; especially the Seller does not give any express or implied guarantees in relation
to the continuance of the current economic (<I>Verm&#246;gens-</I>), financial (<I>Finanz-</I>) and profit
position (<I>Ertragslage</I>) of the Business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>C.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SELLER&#146;S ADDITIONAL GUARANTEES IN THE EVENT OF A LIP BUSINESS SALE</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">In the event of a LIP Business Sale, the following Sections&nbsp;6 through 15 of this Annex 1.1(Q) shall
apply in addition to Sections 1 and 2 and, if applicable, Sections&nbsp;17 through 25 of this Annex
1.1(Q):
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ASSETS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as set forth in <B>Schedule&nbsp;3</B>, the Seller has good and valid title to, or, in the case
of leased or licensed property and assets, valid rights as lessee or licensee in all fixed
and current assets which form part of the Assets, free and clear of any liens, pledges,
security interests, transfer restrictions, encumbrances, options, or other rights of third
parties of whatever kind, except for assets (i)&nbsp;disposed of since 19 February&nbsp;2009 in the
ordinary course of business, (ii)&nbsp;which are subject to vendors&#146; retention of title rights
(<I>Eigentumsvorbehalt</I>) and/or (iii)&nbsp;for which the book value or commercial value does not
exceed EUR 10,000 (Euro: ten thousand).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>EMPLOYEES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Annex 1.1(G) </B>contains a correct and complete list of employees of the Seller as of the date
hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Data Room contains a correct and complete list of (i)&nbsp;all balance of interest agreements
(<I>Interessenausgleiche</I>) and social plans (<I>Sozialpl&#228;ne</I>) applicable to the Employees; and (ii)
any collective arrangements, whether in the form of general commitments (<I>Gesamtzusagen</I>),
standard terms of employment (<I>vertragliche Einheitsregelungen</I>), works agreements
(<I>Betriebsvereinbarungen</I>), collective bargaining agreements (<I>Tarifvertr&#228;ge</I>) or in any other
legal form, in each case applicable to the Employees and material to the operation of the
Business (the &#147;<B>Collective Agreements</B>&#148;).</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller has duly complied, to the extent required by law, contract or otherwise, with the
provisions of the German Act on Employee Inventions (<I>Arbeitnehmererfindungsgesetz</I>). The Seller
has paid all remuneration to Employees or former employees of the Seller entitled to any
compensation under the German Act on Employee Inventions or agreements entered into under such
Act up to and including the Closing Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Since 6 November&nbsp;2008, when the Seller&#146;s headcount was 173 Employees (without apprentices),
the Seller has not paid, or, other than the promise to Employees who left since then to
benefit from the social plan once finalized, agreed to pay, to any of the Employees
Termination Payments exceeding the amounts provided for by the &#147;<I>Personal- und Sozialpolitische
Rahmenvereinbarung&#148; </I>(PSR)&nbsp;of 29 September&nbsp;2004 or as determined in accordance with this
Agreement. To the Seller&#146;s best knowledge, the Data Room contains a true and complete copy of
the <I>Personal- und Sozialpolitische Rahmenvereinbarung </I>(PSR)&nbsp;of 29 September&nbsp;2004.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of the date hereof, <B>Schedule&nbsp;7.5 </B>contains a complete list of labor law disputes pending
before a court or a arbitration committee (<I>Einigungsstelle</I>) that are: (i)&nbsp;labour disputes
against the Seller in connection with the Employees exceeding EUR 30,000.00 (Euro: thirty
thousand), or (ii)&nbsp;disputes on the preservation of the current status
(<I>Bestandschutzstreitigkeiten</I>), or (iii)&nbsp;proceedings which relate to claims arising from
Pension Schemes or other benefit schemes with an amount in dispute exceeding EUR 30,000.00
(Euro: thirty thousand), or (iv)&nbsp;all pending disputes with works councils or similar bodies
(<I>betriebsverfassungsrechtliche oder &#228;hnliche Gremien</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PENSIONS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Other than under the Collective Agreements and under statutory law there exist no plans
(<I>Vereinbarungen und Zusagen</I>), whether of collective or individual nature regarding company
pensions (<I>betriebliche Altersversorgung</I>), under which the Seller has any obligations
vis-&#224;-vis the Employees and/or their dependants to provide company pension benefits,
whether directly or via an external funding vehicle (including, without limitation,
<I>Direktversicherung</I>, <I>Pensionskasse</I>, <I>Pensionsfonds </I>and <I>Unterst&#252;tzungskasse</I>) (&#147;<B>Pension
Schemes</B>&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>9.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>COMPLIANCE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the Seller&#146;s best knowledge and except as listed in <B>Schedule&nbsp;9</B>, the material operational
activities of the Business have, to the extent legally required been approved by
governmental authorities. Except as listed in <B>Schedule&nbsp;9</B>, the Seller is not aware of any
facts leading to the assumption that key permits will expire or will have to be renewed
within a period of 2&nbsp;years after the date hereof due to</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expiry of a fixed term or threatened revocation. Except for the facts listed in <B>Schedule&nbsp;9</B>,
the Seller is not aware of any material unsettled complaints by public authorities or
private third parties in relation to the operational activities of the Company. For the
purpose of this Section&nbsp;9, materiality shall mean any costs and expenses incurred in
connection with rectification and remedial measures in excess of EUR&nbsp;200,000 (Euro: two
hundred thousand) (net)&nbsp;in the individual case.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>10.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ENVIRONMENTAL</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as disclosed in <B>Schedule&nbsp;10</B>, to the Seller&#146;s best knowledge, in the last three years
(i)&nbsp;the Seller has not received any written order from any governmental authority lawfully
requiring the remediation of an Environmental Matter on the property held or used by the
Business and (ii)&nbsp;no administrative or governmental action, suit, investigation or proceeding
has been asserted in writing against the Seller which would result in such an order and is
still pending or has been asserted against the Seller which alleges that the Seller is
currently materially violating any Environmental Law.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Environmental Law</B>&#148; means any law, statutes or other binding regulations imposing liability,
or standards of conduct, for the protection of the environment or the use, handling
generation, manufacturing, storage or disposal of dangerous substances and preparations as
defined in Article&nbsp;2 para (2)&nbsp;of the European Community Council Directive 67/548 EEC, to the
extent applicable to the business of the Company, in each case as in effect on the date hereof
and as enforced and interpreted by the competent authorities on the date hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONTRACTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Annex 1.1(E) </B>contains a true, correct and complete list of all contracts, which are material
to the operation of the Business as presently conducted.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the Seller&#146;s best knowledge, the Contracts have validly been entered into on behalf of the
Seller and are unaltered and in full force and effect on the date hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>RELATED IP-RIGHTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the best knowledge of the Seller, the Seller has good and valid title to the Related
IP-Rights, free and clear of any liens, pledges, security interests, transfer restrictions,
encumbrances, options, or other rights of third parties of whatever kind.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within the 24 (twenty four) months prior to the date hereof, the Seller has not been served
written notice and, to the Seller&#146;s best knowledge, has not been orally informed of formal
proceedings relating to the validity, nullification, interference with or voiding of the
Related IP-Rights nor are such proceedings pending or, to the Seller&#146;s best knowledge,
threatening, and no reason exists to the Seller&#146;s best knowledge that the Related IP-Rights
become nullified, declared invalid, unenforceable or void.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within the 24 (twenty four) months prior to the date hereof, the Seller has not been served
written notice and, to the Seller&#146;s best knowledge, has not been orally informed of formal
proceedings commenced by a third party against the Seller asserting an infringement,
misappropriation or violation of third party rights by the use of any of the Related IP-Rights
nor are such proceedings pending or, to the Seller&#146;s best knowledge, threatening.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the Seller&#146;s best knowledge, the Related IP-Rights have been properly maintained and
protected until the Closing Date, in particular in relation to applications in a timely manner
for renewals and the payment when due of all registration and renewal fees as well as all
annuities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>13.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>HERITABLE BUILDING RIGHT</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Third-Party Rights</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except for the rights and encumbrances listed in <B>Schedule&nbsp;13.1.1 </B>or specified in
this Agreement<U>,</U> the Heritable Building Right is, on the Closing Date, free and
clear of all rights of third parties, claims, land charges including ancient rights
(<I>altrechtliche Dienstbarkeiten</I>) mortgages, servitudes, other rights in rem, public
building charges (<I>Baulasten</I>), in each case which would be required to be recorded
(<I>eintragungsbed&#252;rftig</I>) in the land register (<I>Grundbuch</I>) or in the heritable building
right register (<I>Erbbaugrundbuch</I>) as well as covenants, options or lease agreements
(<I>Mietvertrag</I>, <I>Pachtvertrag</I>, <I>Leihe</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of the date hereof and on the Closing Date, no applications for registration to
the Heritable Building Right Register or the related public building charges register
are pending nor are there any rights, changes in rights or other issues which require
registration but have not been registered.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of the date hereof and on the Closing Date, there are no pending sales of the
Heritable Building Right, other than pursuant to this Agreement.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Ground and Building</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There is no superstructure (<I>&#220;berbau</I>) existing from adjacent land (<I>Grundst&#252;ck,
Erbbaurecht) </I>onto the Heritable Building Right and/or the Property nor from the
Heritable Building Right to adjacent land (<I>Grundst&#252;ck, Erbbaurecht)</I>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All buildings including technical installations, fixtures, fittings and other
improvements (the &#147;<B>Buildings</B>&#148;) on the Heritable Building Right are in good operating
condition (subject to usual wear and tear).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No direct or indirect subsidies have been granted with regard to the Heritable
Building Right.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Compliance with Public Law (<I>&#246;ffentliches Recht</I>)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the best knowledge of the Seller, the Buildings on the Heritable Building Right and
their use are in material compliance with public law (<I>&#246;ffentliches Recht</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Use of the Heritable Building Right</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A true and complete copy of the Heritable Building Right Agreement was available at
the notarization of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Heritable Building Right and the Heritable Building Right Agreement are valid
and binding with respect to the Seller and neither has been terminated (<I>gek&#252;ndigt</I>),
suspended by agreement (<I>einvernehmlich aufgehoben</I>) or challenged in writing
(<I>schriftlich angefochten</I>), in whole or in part, as of the date hereof.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>14.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>OPTION RIGHT</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A true and complete copy of the Option Agreement was available at the notarization of this
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Option Right and the Option Agreement are binding and valid with respect to the Seller
and neither has been terminated (<I>gek&#252;ndigt</I>), suspended by agreement (<I>einvernehmlich
aufgehoben</I>) or challenged in writing (<I>schriftlich angefochten</I>), in whole or in part, as of the
date hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>15.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>LEASE AGREEMENTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Schedule&nbsp;15.1 </B>contains true and complete copies of all lease agreements comprised in the
Contracts entered into between the Seller and third parties (includ-</TD>
</TR>

</TABLE>
</DIV>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ing Infraserv) on the lease and/or sublease of real estate premises (the &#147;<B>Lease
Agreements</B>&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Lease Agreements are binding and valid with respect to the Seller, except for potential
written form defects, and none have been terminated (<I>gek&#252;ndigt</I>), suspended by agreement
(<I>einvernehmlich aufgehoben</I>) or challenged in writing (<I>schriftlich angefochten</I>), in whole or in
part, as of the date hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>16.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>NO OTHER GUARANTEE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a LIP Business Sale, aside from the Seller&#146;s Guarantees set out in Sections
1 and 2, 6 through 15 and, if applicable, Sections&nbsp;17 through 25 of this Annex 1.1(Q), the
Seller does not give any further express or implied guarantees, especially the Seller does
not give any express or implied guarantees regarding the legal, economic or financial
position of the Business; especially the Seller does not give any express or implied
guarantees in relation to the continuance of the current economic (<I>Verm&#246;gens-</I>), financial
(<I>Finanz-</I>) and profit position (<I>Ertragslage</I>) of the Business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>D.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SELLER&#146;S ADDITIONAL GUARANTEES IN THE EVENT THAT CONSIDERATION SHARES COMPRISE ANY PORTION OF
THE PURCHASE PRICE</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The following Sections&nbsp;17 through 25 of this Annex 1.1(Q) shall apply in the event that
Consideration Shares comprise any portion of the Purchase Price.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>17.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INVESTMENT PURPOSE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Seller is purchasing the Consideration Shares for its own account and not with a present
view toward the public sale or distribution thereof and has no present intention of selling
or distributing any of such Consideration Shares or any arrangement or understanding with
any other Person regarding the sale or distribution of such Consideration Shares except in
all such cases as contemplated by the Registration Rights Agreement or as otherwise would
not result in a violation of the Securities Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>18.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>RELIANCE ON EXEMPTIONS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Seller understands that the Consideration Shares are being offered and sold to it in
reliance upon specific exemptions from the registration requirements of United States
federal securities laws and that MannKind Corp. is relying upon the truth and accuracy of,
and Seller&#146;s compliance with, the guarantees of Seller set forth in this Section&nbsp;D in order
to determine the availability of such exemptions and the eligibility of Seller to acquire
the Consideration Shares.</TD>
</TR>

</TABLE>
</DIV>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>19.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>RECEIPT OF INFORMATION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Seller acknowledges that it has been furnished with all relevant materials relating to the
business, finances and operations of MannKind Corp. that the Seller has determined are
necessary to make an investment decision, and materials relating to the offer and sale of
the Consideration Shares, that have been requested by Seller, and Seller has had the
opportunity to review the publicly available MannKind SEC Documents. Seller has been
afforded the opportunity to ask questions of, and to receive answers from, officers and
employees of MannKind Corp. concerning MannKind Corp. and the Consideration Shares.
MannKind Corp. acknowledges and agrees that no such inquiries nor any other investigation
conducted by or on behalf of Seller or its representatives or counsel shall modify, amend
or affect Seller&#146;s right to rely on the truth, accuracy and completeness of the MannKind
SEC Documents or any other materials furnished to Seller by MannKind Corp. or its
representatives or counsel in connection herewith, or on the guarantees of MannKind Corp.
contemplated by this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>20.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ACKNOWLEDGEMENT OF RISK</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Seller acknowledges and understands that its investment in the Consideration Shares involves
a significant degree of risk, including, without limitation, (i)&nbsp;MannKind Corp. remains a
development stage business with limited operating history; (ii)&nbsp;an investment in MannKind
Corp. is speculative, and only those who can afford the loss of their entire investment should
consider investing in MannKind Corp. and the Consideration Shares; (iii)&nbsp;Seller may not be
able to liquidate its investment; (iv)&nbsp;transferability of the Consideration Shares is
extremely limited; (v)&nbsp;in the event of a disposition of the Consideration Shares, Seller could
sustain the loss of its entire investment; (vi)&nbsp;MannKind Corp. has not paid any dividends on
its Common Stock since inception and does not anticipate the payment of dividends in the
foreseeable future; and (vii)&nbsp;that such risks, and others applicable to MannKind Corp., are
more fully set forth in the MannKind SEC Documents;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Seller is able to bear the economic risk of holding the Consideration Shares for an
indefinite period, and has knowledge and experience in financial and business matters such
that it is capable of evaluating the risks of the investment in the Consideration Shares; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Seller has, in connection with Seller&#146;s decision to purchase Consideration Shares, not relied
upon any representations or other information (whether oral or written) other than as set
forth in this Agreement, the annexes hereto and in the MannKind SEC Documents.</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>21.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>GOVERNMENTAL REVIEW</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Seller understands that no United States federal or state agency or any other government or
governmental agency has passed upon or made any recommendation or endorsement of the
Consideration Shares or an investment therein.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>22.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>TRANSFER OR RESALE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Seller understands that:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">22.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Consideration Shares have not been and are not being registered under the Securities Act
or any applicable state securities laws (other than in each case as contemplated in the
Registration Rights Agreement) and may not be resold by Seller unless (i)&nbsp;the resale of the
Consideration Shares is registered pursuant to an effective registration statement under the
Securities Act; or (ii)&nbsp;Seller has delivered to MannKind Corp. an opinion of counsel (in form,
substance and scope customary for opinions of counsel in comparable transactions) to the
effect that the Consideration Shares to be resold by the Seller may be resold by the Seller
pursuant to an exemption from or in a transaction not subject to such registration, which
opinion delivery requirement shall not apply if Seller is transferring Consideration Shares to
an affiliate (as defined in Rule&nbsp;405 promulgated under the Securities Act); or (iii)&nbsp;the
Consideration Shares are resold by the Seller pursuant to Rule&nbsp;144 (as defined in the
Registration Rights Agreement); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">22.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>except as set forth in the Registration Rights Agreement, neither MannKind Corp. nor any
other Person is under any obligation to register the resale of the Consideration Shares under
the Securities Act or any state securities laws or to comply with the terms and conditions of
any exemption thereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>23.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>LEGENDS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Seller understands that the certificates representing the Consideration Shares will bear a
restrictive legend in substantially the following form (and that MannKind Corp. may cause a
stop-transfer order to be placed against transfer of the certificates for such
Consideration Shares if the transfer of such Consideration Shares violates the restrictions
contained in such legend):</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES. THE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED,
TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH
PURPOSE UNDER APPLICABLE SECURITIES</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>LAWS, OR UNLESS OFFERED, SOLD, PLEDGED, HYPOTHECATED, TRANSFERRED OR ASSIGNED PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THOSE LAWS.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>24.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>BROKERS OR FINDERS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Seller has not retained any broker or finder in connection with any of the transactions
contemplated by this Agreement, and Seller has not incurred or agreed to pay, or taken any
other action that would entitle any Person to receive, any brokerage fee, finder&#146;s fee or
other similar fee or commission with respect to any of the transactions contemplated by
this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>25.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>NO TRADES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Since February&nbsp;13, 2009, Seller has not purchased, sold or otherwise traded in, including any short
sales, the Common Stock, nor has Seller caused any Person to purchase, sell or otherwise trade in,
including any short sales, the Common Stock.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>ANNEX 11.2 &#150; LIMITATIONS ON LIABILITY</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>TIME LIMITATION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Party shall be liable for any Claim unless it receives from the Party invoking the Claim
written notice (within 30&nbsp;days of becoming aware of the matter, fact or circumstance giving
rise to the Claim containing reasonable details of the Claim including any estimate of the
amount of the Claim):</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">1.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prior to the first Business Day following the fifth anniversary of the
Closing Date in the case of a Title and Capacity Guarantee Claim; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">1.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>prior to the first Business Day following the first anniversary of the
Closing Date in the case of any other Claim.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>After the expiry of the limitation periods set out under 1.1(a) and 1.1(b) the relevant
Claims shall be time-barred (<I>verj&#228;hrt</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any Claim shall (if it has not been previously satisfied, settled or withdrawn) be deemed to
have been withdrawn six months after the notice is given pursuant to Section&nbsp;1.1 of this
<B>Annex&nbsp;11.2 </B>or, in the case of a contingent liability, six months after that liability becomes
an actual liability, unless legal proceedings in respect of it have been commenced by being
both issued and served. No new Claim may be made in respect of the facts, matters, events or
circumstances giving rise to any such withdrawn Claim. &#167;&nbsp;203 BGB is excluded.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>THRESHOLDS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall only be liable for a Claim resulting from a Breach if</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount of the liability pursuant to a single Claim for Breach exceeds a threshold of
EUR&nbsp;20,000 (Euro: twenty thousand) (in which case the Purchaser shall be entitled to claim for
the entire amount and not merely the excess); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the aggregate amount of the liability of the Seller for all Breaches for which the individual
liability exceeds the threshold pursuant to Section&nbsp;2.1 of this <B>Annex&nbsp;11.2 </B>exceeds the
threshold of EUR&nbsp;250,000 (Euro: two hundred fifty thousand) (<I>Freibetrag</I>), it being understood
that if the later threshold is exceeded, the Purchaser is only entitled to claim for the
exceeding amount.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>MAXIMUM LIMIT FOR CLAIMS RESULTING FROM A BREACH</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The aggregate amount of the liability of the Seller for Claims resulting from Breaches
shall be limited to 20% (twenty percent) of the Purchase Price.</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PURCHASER&#146;S KNOWLEDGE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall not be liable for a Seller&#146;s Guarantee being untrue and/or incorrect, if</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">1.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;the underlying facts of such untrue and/or incorrect Seller&#146;s Guarantee
have been duly and fully disclosed to the Purchaser or the representatives or advisers
of the Purchaser prior to the date hereof by providing the Information, or (ii)&nbsp;at the
date hereof the Purchaser or the representatives or advisers of the Purchaser
otherwise know, or fail to know due to gross negligence, of such underlying facts;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">1.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Closing occurs although the Purchaser has actual knowledge or fails to
know due to gross negligence (<I>grobe Fahrl&#228;ssigkeit</I>) about the underlying facts of an
untrue and/or incorrect Seller&#146;s Guarantee without expressly reserving, at the
Closing, the rights of the Purchaser resulting from the untrue and/or incorrect
Seller&#146;s Guarantee under the Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONTINGENT LIABILITIES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any Claim is based upon a liability which is contingent only, the Seller shall not be
liable to make any payment unless and until such contingent liability seizes to be
contingent (but the Purchaser has the right under Section&nbsp;1.1 of this <B>Annex&nbsp;11.2 </B>to give
notice of that Claim before such time).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DUTY TO MITIGATE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall procure that all reasonable steps are taken to avoid or mitigate any loss
or damage which it or the Business may suffer in consequence of any Breach or any fact,
matter, event or circumstance likely to give rise to a Claim.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall not be liable for a Breach if and to the extent the damage incurred by the
Purchaser results from a failure of the Purchaser to take reasonable steps to mitigate damages
pursuant to &#167; 254 BGB.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INSURED CLAIMS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall not be liable for a Breach if the damage incurred by the Purchaser (i)&nbsp;has
actually been recovered under existing insurance policies, or (ii)&nbsp;has actually been
recovered from third parties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>NO DOUBLE RECOVERY</B></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall not be entitled to recover damages or obtain payment, reimbursement,
restitution or indemnity more than once in respect of anyone liability, loss, cost,
shortfall, damage, deficiency, Breach or other settled circumstances which gives rise to
more than one Claim.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>9.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SELLER&#146;S KNOWLEDGE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If Seller&#146;s Guarantees are given &#147;to the Seller&#146;s best knowledge&#148;, the Seller is only
liable if any of the persons listed in <B>Schedule&nbsp;9 </B>has at the date hereof (i)&nbsp;actual
knowledge (<I>positive Kenntnis</I>) or (ii)&nbsp;fail to know due to gross negligence (<I>grobe
Fahrl&#228;ssigkeit</I>) of the facts leading to the respective Seller&#146;s Guarantee being untrue or
incorrect.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>10.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PURCHASER&#146;S KNOWLEDGE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If Purchaser&#146;s Guarantees are given &#147;to the Purchaser&#146;s best knowledge&#148;, the Purchaser is
only liable if any of the persons listed in <B>Schedule&nbsp;10 </B>has at the date hereof (i)&nbsp;actual
knowledge (<I>positive Kenntnis</I>) or (ii)&nbsp;fail to know due to gross negligence (<I>grobe
Fahrl&#228;ssigkeit</I>) of the facts leading to the respective Purchaser&#146;s Guarantee being untrue
or incorrect.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PURCHASER TO RECOVER BENEFITS FROM THIRD PARTIES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Where the Purchaser or any of its affiliates is entitled to recover from a third party a
sum which indemnifies or compensates the Purchaser (in whole or in part) in respect of the
liability or loss which is the subject of a Claim, the Purchaser shall take all reasonable
steps to enforce such recovery and keep the Seller informed of the progress of any action
taken. Any actual recovery (net of any taxation and less any reasonable costs of recovery)
shall reduce the Claim to the extent of that recovery.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CHANGES IN LEGISLATION OR TAX</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall not be liable to the Purchaser for any Claim if the damage incurred
results from or is increased by the passing of, or any change in, after the date hereof,
any law, rule, regulation or administrative practice of any government, governmental
authority, agency or regulatory body including (without prejudice to the generality of the
foregoing) any increase in the rates of taxes or any imposition of taxes or any withdrawal
or relief from taxes not actually in effect at the date hereof.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>13.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>BENEFITS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any amount to be recovered in relation to a Claim for Breach shall be reduced by all
present or actual future advantages and benefits of the Purchaser related to the damage.
This includes that the Seller&#146;s obligation to pay damages shall be reduced by any tax
saving or tax deductions which may actually be obtained by the Purchaser by deducting for
tax purposes any amount with respect to such damage.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>14.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ATTRIBUTION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall not be liable for the correctness of any oral or written statements made
by (i)&nbsp;the consultants of the Seller, or (ii)&nbsp;the managing directors, employees or
consultants of the Seller or Pfizer Group in particular, if made during the due diligence
and the knowledge of such persons cannot be attributed to the Seller, unless expressly
provided otherwise in the Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>15.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>APPLICABILITY</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The provisions of this <B>Annex&nbsp;11.2 </B>shall not apply to the Seller&#146;s liability arising from a
failure to comply with the obligations of the Seller to transfer title to the Assets to the
Purchaser free and clear of encumbrances as set forth in the Agreement, provided, however,
that such liability of the Seller shall be limited, together with any other liability of
the Seller under the Agreement, to an aggregate amount equal to the Purchase Price.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>ANNEX 12(A) &#150; PURCHASER&#146;S GUARANTEES</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>AUTHORIZATION OF THE PURCHASER</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date the execution and performance by the Purchaser of
the Agreement are within the Purchaser&#146;s corporate powers, do not violate the articles of
association of the Purchaser and will be, prior to the Closing Date, duly authorized by all
necessary corporate action on the part of the Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, assuming compliance with any applicable
requirements under merger control laws, the execution and performance of the Agreement by the
Purchaser requires no approval or consent by any governmental authority and does not violate
any applicable law or decision by any court or governmental authority binding on the
Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, there is no lawsuit, investigation or proceeding
pending or, to the Purchaser&#146;s best knowledge, threatened in writing against the Purchaser
before any court, arbitrator or governmental authority which in any manner challenges or seeks
to prevent, alter or materially delay the transactions contemplated by the Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>LEGAL ORGANIZATION OF THE PURCHASER</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, the Purchaser has been duly established under the
laws of Germany and the Purchaser validly exists under the laws of Germany.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, no bankruptcy or insolvency proceedings are
pending with respect to the Purchaser.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>ANNEX 12(B) &#150; MANNKIND CORP.&#146;S GUARANTEES</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PART I</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>AUTHORIZATION OF MANNKIND CORP.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date the execution and performance by MannKind Corp. of
the Agreement are within MannKind Corp.&#146;s corporate powers, do not violate the certificate of
incorporation of MannKind Corp. and will be, prior to the Closing Date, duly authorized by all
necessary corporate action on the part of MannKind Corp.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, assuming compliance with any applicable
requirements under merger control laws, the execution and performance of the Agreement by
MannKind Corp. requires no approval or consent by any governmental authority and does not
violate any applicable law or decision by any court or governmental authority binding on
MannKind Corp.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, there is no lawsuit, investigation or proceeding
pending or, to MannKind Corp.&#146;s best knowledge, threatened in writing against MannKind Corp.
before any court, arbitrator or governmental authority which in any manner challenges or seeks
to prevent, alter or materially delay the transactions contemplated by the Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>LEGAL ORGANIZATION OF MANNKIND CORP.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, MannKind Corp. has been duly incorporated under
the laws of the State of Delaware and MannKind Corp. validly exists under the laws of the
State of Delaware.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, no bankruptcy or insolvency proceedings are
pending with respect to MannKind Corp.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither the Seller nor a company of the Seller Group has or shall have any liability or
otherwise suffer or incur any loss, cost or damage as a result of or in connection with any
brokerage or finder&#146;s fee or other commission of any person retained by MannKind Corp. or its
affiliates in connection with any of the transactions contemplated in the Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PART II</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CAPITALIZATION</B></TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The authorized capital stock of MannKind Corp. consists of 150,000,000 shares of Common
Stock and 10,000,000 shares of preferred stock. At the close of business on 3 March&nbsp;2009,
(i)&nbsp;102,036,007 shares of Common Stock were issued and outstanding and (ii)&nbsp;no shares of
preferred stock were issued and outstanding. All outstanding shares of capital stock of
MannKind Corp. have been duly authorized and validly issued and are fully-paid and
nonassessable and have not been issued in violation of any preemptive or similar rights.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Consideration Shares to be issued to the Seller as contemplated by this Agreement will,
upon such issuance, be validly issued, fully-paid and nonassessable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>VOTE REQUIRED</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as may be required to increase the amount of authorized but unissued shares of
Common Stock of MannKind Corp. or to comply with the rules and regulations of the NASDAQ
Global Market (each, a &#147;<B>Shareholder Vote Requirement</B>&#148;), no vote of any holders of any class
or series of capital stock of or other equity interests in MannKind Corp. is necessary to
approve the issuance of the Consideration Shares to the Seller.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SEC REPORTS AND FINANCIAL STATEMENTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>MannKind Corp. has filed with the SEC all forms, reports, schedules, statements and other
documents required to be filed by it since January&nbsp;1, 2007 (collectively, the &#147;<B>MannKind SEC
Documents</B>&#148;). The MannKind SEC Documents complied in all material respects with the applicable
requirements of the Exchange Act and the Securities Act, as the case may be, as of the date of
their respective filings with the SEC. MannKind Corp.&#146;s Annual Report for the period ending
December&nbsp;31, 2008, filed with the SEC on February&nbsp;27, 2009 on Form 10-K (the &#147;<B>2008 10-K</B>&#148;),
(i)&nbsp;does not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading and (ii)&nbsp;complied in all
material respects with the applicable requirements of the Exchange Act as of the date of its
filing with the SEC.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The financial statements of MannKind Corp. included in the 2008 10-K, including any related
notes thereto, comply in all material respects with applicable accounting requirements and
with the published rules and regulations of the SEC with respect thereto, have been prepared
in accordance with generally accepted accounting principles applied on a consistent basis
during the</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>periods involved (except as may be indicated in the notes thereto) and fairly present the financial
position of MannKind Corp. as of the dates thereof and the results of its operations and cash
flows for the periods indicated.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>LISTING AND MAINTENANCE REQUIREMENTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>MannKind Corp. is in compliance with each of the requirements of the NASDAQ Global Market
for the continued listing of its Common Stock listed thereon and there is no action,
proceeding or investigation before the NASDAQ Global Market or, to MannKind Corp.&#146;s best
knowledge, threatened or contemplated by the NASDAQ Global Market that could reasonably be
expected to result in the termination of such listing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ABSENCE OF CERTAIN CHANGES OR EVENTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as disclosed in the 2008 10-K (except for the forward-looking statements and risk
factors contained therein and except for any information incorporated therein by
reference), since December&nbsp;31, 2008, (i)&nbsp;there has not been any event, circumstance, change
or effect that has had or reasonably would be expected to have a material adverse effect on
the business, assets, condition (financial or otherwise) or results of operations of
MannKind Corp. taken as a whole or on the ability of MannKind Corp. to perform its
obligations hereunder, or that would prevent or delay the consummation of the transactions
contemplated hereby and (ii)&nbsp;the business of MannKind Corp. and its subsidiaries has been
conducted only in the ordinary course.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>TAKEOVER DEFENSES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>MannKind Corp. is not a party to a shareholder rights plan (poison pill).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SHELF ELIGIBILITY</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>MannKind Corp. is eligible to use Form S-3 for registration under the Securities Act of the
Consideration Shares for the sale by the Seller of such shares. There is no fact or
current or prior circumstance or event that would be reasonably likely to cause MannKind
Corp. to become ineligible to use Form S-3 for such purpose, including to comply with its
obligations under the Registration Rights Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>NO SOLICITATION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither MannKind Corp. nor any of its affiliates, or any Person acting on their behalf, has
engaged in any form of general solicitation or general advertising (within the meaning of
Regulation&nbsp;D promulgated under the Securities Act) in connection with the offer and sale of
Consideration Shares to the Seller.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="v52349v5234901.gif" alt="(CLIFFORD CHANCE LOGO)">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">Execution Version</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">PFIZER MANUFACTURING FRANKFURT GMBH
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">PFIZER INC.

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">MANNKIND DEUTSCHLAND GMBH

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">(previously: RM 2875 Verm&#246;gensverwaltungs GmbH)

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">AND

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">MANNKIND CORPORATION

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">AMENDMENT AGREEMENT TO THE LIP ASSET OR BUSINESS<BR>
SALE AND PURCHASE AGREEMENT

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>THIS AMENDMENT AGREEMENT TO THE LIP ASSET OR BUSINESS SALE AND PURCHASE AGREEMENT </B>is made on 3
April&nbsp;2009
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>BETWEEN</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Pfizer Manufacturing Frankfurt GmbH</B>, with statutory seat in Frankfurt am Main, Federal
Republic of Germany, registered in the commercial register at the local court of Frankfurt am
Main under HRB 81803 (the &#147;<B>Seller</B>&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Pfizer Inc.</B>, a Delaware corporation with principal executive offices at 235 East 42nd Street,
New York, New York 10017, USA (&#147;<B>Pfizer Inc.</B>&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>MannKind Deutschland GmbH </B>(previously: <B>RM 2875 Verm&#246;gensverwaltungs GmbH</B>), with statutory
seat in Munich, Federal Republic of Germany, registered in the commercial register at the
local court of Munich under HRB&nbsp;177304 (the &#147;<B>Purchaser</B>&#148;); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>MannKind Corporation, </B>a Delaware corporation with principal executive offices at 28903 North
Avenue Paine, Valencia, CA 91355, USA (&#147;<B>MannKind Corp.</B>&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>WHEREAS</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties are parties to the LIP Asset or Business Sale and Purchase Agreement recorded by
the notary Dr.&nbsp;Wolfgang Hanf, Frankfurt am Main, deed no. 111 of the notarial roll of Deeds
for the year 2009 H (the &#147;<B>Agreement</B>&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties now desire to amend and/or complement the Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOW, therefore, the Parties agree as follows:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DEFINITIONS AND INTERPRETATION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Capitalised terms used but not defined herein shall have the meaning ascribed to them in
the Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>AMENDMENTS</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Party No. (3)&nbsp;of the LIP ASSET OR BUSINESS SALE AND PURCHASE AGREEMENT shall be amended and
replaced as follows (p.4):</I>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(3)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>MannKind Deutschland GmbH </B>(formerly: <B>RM 2875 Verm&#246;gensverwaltungs GmbH</B>), with statutory seat
in Munich, Federal Republic of Germany, registered</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the commercial register at the local court of Munich under HRB&nbsp;177304 (the &#147;<B>Purchaser</B>&#148;);
and</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;1.1 the definition of &#147;Agreement&#148; shall be amended and replaced as follows:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the LIP Asset or Business Sale and Purchase
Agreement as amended by this Amendment Agreement;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>In Section&nbsp;1.1 after the definition of &#147;AO&#148; a definition shall be inserted as follows:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Applicable Exchange
Rate</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;7.19;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;1.1 the definition of &#147;Closing Memorandum&#148; shall be amended and replaced as follows:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Closing Memorandum</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in
Section&nbsp;9.3 or Section&nbsp;10.3, as the
case may be;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>In Section&nbsp;1.1 after the definition of </I><B><I>&#147;</I></B><I>Common Stock</I><B><I>&#148; </I></B><I>a definition shall be inserted as follows:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Compensation Payments</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in
the Infraserv Consent;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;1.1 the definition of &#147;Contracts&#148; shall be amended and replaced as follows:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Contracts</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the contracts to which the Seller is a party and
which relate to the Business and are unperformed (wholly or
partly) at the LIP Business Sale Closing Date and which are
listed in <B>Annex 1.1(E) </B>as amended pursuant to the Infraserv
Consent;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>In Section&nbsp;1.1 after the definition of &#147;Down Payment&#148; a definition shall be inserted as follows:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Drop Dead Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;5.5;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;1.1 the definition of &#147;Heritable Building Right Agreement&#148; shall be amended and replaced as
follows:</I>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Heritable Building Right
Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the agreement on a
heritable building right
(<I>Erbbaurecht</I>) as agreed by the HBR
1998 and the HBR 2006 as amended
pursuant to the Infraserv Consent;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>In Section&nbsp;1.1 after the definition of &#147;Infraserv&#148; a definition shall be inserted as follows:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Infraserv Balancing
Payments</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;7.19;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>In Section&nbsp;1.1 after the definition of &#147;Infraserv Balancing Payments&#148; a definition shall be
inserted as follows:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Infraserv Bank Account&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the Euro account of
Infraserv held with &#091;...***...&#093;;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;1.1 the definition of &#147;Infraserv Consent&#148; shall be amended and replaced as follows:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Infraserv Consent</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the agreement between Infraserv, Infraserv
Logistics GmbH, the Seller and the Purchaser as
recorded by the Notary on 3 April&nbsp;2009 under notarial
deed no. XXX/2009 H;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;1.1 the definition of &#147;Infraserv Due Date&#148; shall be amended and replaced as follows:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Infraserv Due Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean 8 April&nbsp;2009 or such other later date as
agreed between the Parties in writing;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;1.1 the definition of &#147;Lease Agreements&#148; shall be amended and replaced as follows:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Lease Agreements</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the lease agreements attached in Schedule
13.1 to Annex 1.1(Q) as amended pursuant to the
Infraserv Consent;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;1.1 the definition of &#147;Option Agreement&#148; shall be amended and replaced as follows:</I>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Option Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the agreement regarding the Option Right
between Infraserv and the Seller dated 29 September
2006 (notarial deed no. B 968/2006 of notary
Dr.&nbsp;Annegret B&#252;rkle, Frankfurt am Main) as amended
pursuant to the Infraserv Consent;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;1.1 the definition of &#147;ROFR-Property&#148; shall be amended and replaced as follows:</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>ROFR-Property</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the in rem right of first refusal (<I>dingliches
Vorkaufsrecht</I>) of the Seller with respect to any case of
sale of the Property during the term of the Heritable
Building Right, registered in section II of the Land
Register under serial no. 43, which has been granted
pursuant to Section&nbsp;VII of HBR 2006 as amended pursuant to
the Infraserv Consent;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;5.5 shall be amended and replaced as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">If the Closing Conditions have not been satisfied or waived on or before 31 October&nbsp;2009 at
24:00 hours (the &#147;<B>Drop Dead Date</B>&#148;) the Parties may at their respective absolute discretion
(<I>nach freiem Ermessen</I>) jointly agree in writing to extend the Drop Dead Date until 31
December&nbsp;2009 by the latest (the &#147;<B>Final Drop Dead Date</B>&#148;), or otherwise either the Seller or
the Purchaser may each elect to rescind (<I>zur&#252;cktreten</I>) this Agreement unless the relevant
Party has caused (<I>verschuldet</I>) or is responsible for (<I>vertreten m&#252;ssen</I>) the failure of the
Closing Conditions to be satisfied. In the event of such rescission, (i)&nbsp;the Seller shall
promptly return the Down Payment to the Purchaser&#146;s Bank Account, and (ii)&nbsp;neither Party
shall have any claim under this Agreement of any nature whatsoever against the other party,
except for Claims for breach of the covenants set forth in Section&nbsp;5.2 and Section&nbsp;6. Upon
rescission by either of the Parties after the Drop Dead Date or, in any case, within five
Business Days after the Final Drop Dead Date, the Seller and the Purchaser shall (i)&nbsp;waive
any and all rights under the Infraserv Consent and (ii)&nbsp;confirm vis-&#225;-vis Infraserv that they
shall not make any further use of the Infraserv Consent and (iii)&nbsp;upon Infraserv&#146;s request,
shall conclude with Infraserv and Infraserv Logistics GmbH an agreement confirming that the
Infraserv Consent shall become null and void and (iv)&nbsp;in case the Heritable Building Right
has been transferred to the Purchaser, the Purchaser shall re-transfer the Heritable Building
Right to the Seller.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;7.2 shall be amended and replaced as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Promptly upon signing of this Agreement but in any event not later than within 2 (two)
Business Days, the Parties shall jointly notify Infraserv of the contingent sale of the
Heritable Building Right. The Parties shall use reasonable best efforts to obtain and the
Seller shall formally request from Infraserv on or before the Infraserv Due Date in a form
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">required under Section&nbsp;29 paragraph 1 GBO, among others, (a)&nbsp;Infraserv&#146;s, and Infraserv
Logistics GmbH&#146;s consent, as applicable, to the transfer to the Purchaser of (i)&nbsp;the
Heritable Building Right in accordance with Section&nbsp;I.4.2 of the HBR 1998, (ii)&nbsp;the
ROFR-Property, (iii)&nbsp;the Option Right, and (iv)&nbsp;the Option Right Prenotation, (v)&nbsp;the
Prolongation Prenotation, and (vi)&nbsp;the Lease Agreements, and (b)&nbsp;Infraserv&#146;s waiver of its
right to terminate the Heritable Building Right and/or the Heritable Building Right Agreement
and demand the reversion of the Heritable Building Right (<I>Heimfall</I>) pursuant to Sections
I.5.1.4, I.5.2, II.5.3, II.5.4 and II.5.6 of the HBR 1998, all in the form substantially set
out in <B>Annex&nbsp;7.2</B>. The Parties shall promptly (i)&nbsp;engage in joint good faith negotiations with
Infraserv to conclude the Infraserv Consent, (ii)&nbsp;provide all information reasonably
requested by Infraserv or appropriate to enable Infraserv to decide upon the Infraserv
Consent, (iii)&nbsp;notify each other if and when the Infraserv Consent has been obtained, and
(iv)&nbsp;provide to the respective other party a copy of the Infraserv Consent. If the Infraserv
Consent has not been obtained on or before the Infraserv Due Date, the Parties may at their
absolute discretion (<I>nach freiem Ermessen</I>) jointly agree in writing to extend the Infraserv
Due Date or shall (i)&nbsp;withdraw their request for Infraserv Consent, (ii)&nbsp;terminate
discussions in this respect and (iii)&nbsp;proceed to the LIP Asset Sale Closing.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;7.4 Sentence 1 shall be amended and replaced as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Promptly upon granting of the Infraserv Consent (where such granting occurs on or before the
Infraserv Due Date) but in any event not later than within 1 (one)&nbsp;Business Day following
granting of the Infraserv Consent to the Seller, the Seller shall transmit the Notification
to Sanofi-Aventis to start the 2 (two)&nbsp;months period for Sanofi-Aventis to consider exercise
of its ROFR.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>In Section&nbsp;7.4 after Sentence 3 a new Sentence 4 shall be inserted which reads as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Seller and the Purchaser shall promptly notify Infraserv of the ROFR Exercise Notice
having been obtained or on any rejection of the ROFR Exercise Notice.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>After Section&nbsp;7.18 a new Section&nbsp;7.19 shall be inserted which reads as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">7.19 On the Business Day preceding the LIP Business Sale Closing Date, the Purchaser shall
procure that the following payments (the &#147;<B>Infraserv Balancing Payments</B>&#148;) are made to the
Seller&#146;s Bank Account: (i)&nbsp;The balance of (x)&nbsp;the Down Payment converted from US Dollars into
Euros at the exchange rate as reported on the Business Day following the day on which the
last Closing Condition has been satisfied or waived as quoted in the Wall Street Journal on
that date (the &#147;<B>Applicable Exchange Rate</B>&#148;), and (y) &#091;...***...&#093;, and (ii)&nbsp;the balance of (x)&nbsp;of
the Compensation Payment (as defined in the Infraserv Consent) payable in Euros to Infraserv
on the Closing Date and the (y)&nbsp;indemnity payment payable by the Seller to the Purchaser on
the Closing Date pursuant to Section&nbsp;16.3 of the Agreement taking into consideration any
reduction occurring between the day after 3 April&nbsp;2009 and the day before the LIP Business
Sale Closing Date. The Seller shall procure to notify the Purchaser on the amount of the
Infraserv Balancing Payments on the first day after the day on which the last of the Closing
Conditions under Section&nbsp;5.1 has been satisfied or waived.
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;9.3 shall be amended and replaced as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">9.3 After the last of the actions referred to under Section&nbsp;9.2 has been taken, the Par-ties
shall notarize before the acting notary a closing memorandum (the &#147;<B>Closing Memorandum</B>&#148;)
including (i)&nbsp;agreements necessary to transfer legal title to the LIP Assets under Section
9.2.10 hereof, and (ii)&nbsp;the confirmation to each other that the Closing Conditions
applicable to the LIP Asset Sale Closing have been fulfilled and that the LIP Asset Sale
Closing Actions have been taken in accordance with this Agreement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;10.2.10 shall be amended and replaced as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">10.2.10 The Purchaser shall deliver to the Seller a copy of the duly executed guarantee of
its ultimate parent company, substantially in the form attached to the Infraserv Consent.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>After Section&nbsp;10.2.10 a new Section&nbsp;10.2.11 shall be inserted which reads as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">10.2.11 The Purchaser shall declare before the Notary by way of a separate deed its
submission under immediate forced execution (<I>Unterwerfung unter die sofortige
Zwangsvollstreckung</I>) in its entire assets with regard to its payment obligations under the
Heritable Building Right Agreement in a form substantially complying to the form set forth
in Schedule&nbsp;II.1.4(1) or II.1.4(2), as applicable, of the Infraserv Consent.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;10.2.11 shall be renumbered to Section&nbsp;10.2.12</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;10.2.12 shall be renumbered to Section&nbsp;10.2.13</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;10.2.13 shall be renumbered to Section&nbsp;10.2.14; the new Section&nbsp;10.2.14 shall be amended
and replaced as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">10.2.14 The Seller shall (i)&nbsp;convert the Down Payment at the Applicable Exchange Rate from
US Dollars to Euros and pay by wire transfer in the name and on behalf of the Purchaser the
so converted Down Payment in Euros without any deductions to the Infraserv Bank Account,
(ii)&nbsp;simultaneously transfer the amount of the Infraserv Balancing Payments by wire transfer
without any deductions in the name and on behalf of the Purchaser to the Infraserv Bank
Account, (iii)&nbsp;pay the amount of the indemnity set forth in Section&nbsp;16.3 as reduced in
accordance therewith, and (iv)&nbsp;pay any interest accrued on the Down Payment as designated by
the Purchaser or otherwise as directed by the Cash Notification.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;10.3 Sentence 1 shall be amended and replaced as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">After the last LIP Business Sale Closing Action has been taken, the Parties shall notarize
before the acting notary a closing memorandum (the &#147;<B>Closing Memorandum</B>&#148;) including (i)
agreements necessary to transfer legal title to the LIP Business Assets under Section
10.2.15 hereof, (ii)&nbsp;an undertaking to execute within a period of 21 Business Days after the
Conditions Precedent as defined in the Infraserv Consent having occurred, legally effective
written form (<I>Schriftform</I>) amendments to the Lease Agreements by which the Seller and the
Purchaser confirm vis-&#224;-vis Infraserv and Infraserv Logistics GmbH the transfer of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">the respective Lease Agreements to the Purchaser as new lessee, (iii)&nbsp;the assumption of all
rights and obligations under the Heritable Building Right Agreement as of the LIP Business
Sale Closing Date by the Purchaser, (iv)&nbsp;a confirmation that the Seller and the Purchaser
have agreed on the transfer and/or assignment of the Sold Assets (as defined in the
Infraserv Consent) to the Purchaser, and (v)&nbsp;the confirmation to each other that the Closing
Conditions have been fulfilled and that the LIP Business Sale Closing Actions have been
taken in accordance with this Agreement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>After Section&nbsp;10.3 Sentence 1 a new Sentence 2 shall be inserted which reads as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Upon signing of the Closing Memorandum, the seller and the purchaser shall (i)&nbsp;jointly
notify the Notary of the LIP Business Sale Closing date having occurred, (ii)&nbsp;confirm
before the Notary in favor of Infraserv that they have agreed on the transfer in rem of
the Sold Assets (as defined in the Infraserv Consent) in the form substantially complying
with the form set forth in Schedule ii.1.2(1) or ii.1.2(2), as applicable, of the
Infraserv Consent and instruct the notary to furnish such confirmation and the
notification to Infraserv that the Closing Date has occurred on behalf of the Parties by
telecopy and registered mail (<FONT style="font-variant: SMALL-CAPS"><I>&#220;</I></FONT><I>bergabeeinschreiben</I>) jointly to Infraserv and
Infraserv Logistics GmbH under the following address: Infraserv GmbH &#038; Co. H&#246;chst KG,
Attn.: Dr.&nbsp;Dieter Gentzcke, Leiter Rechtsabteilung, Industrie Park H&#246;chst, Geb&#228;ude D-706,
65926 Frankfurt; Fax: &#043;49 (69)&nbsp;305 23 583 in the form substantially complying to the form
set forth in Schedule&nbsp;II.1.1 of the Infraserv Consent, and (iii)&nbsp;instruct the notary to
submit the grant to apply for registration given under Section&nbsp;3.1.4 of the Infraserv
Consent and to apply for the registration of the Purchaser as beneficiary of the
ROFR-Property in the Land Register.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section (v)&nbsp;of Section&nbsp;16.2.6 shall be amended and replaced as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(V) &#091;...***...&#093; per day by which the LIP Asset Sale Closing occurred later than 3 April&nbsp;2009;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>Section&nbsp;16.3 shall be amended and replaced as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In the event of the LIP Business Sale, the Parties acknowledge that it is the Purchaser&#146;s
intention to reduce the production level at the LIP after Closing to ten batches of bulk
insulin per calendar year. Infraserv is entitled to overcapacity payments for the drop of
utility consumption by the LIP below the level foreseen under the agreements between the
Seller and Infraserv comprised in the Con-tracts. Such payments will be calculated in view
of the remaining term of these agreements at Closing and will likely need to be prepaid.
The Purchaser shall keep the Seller reasonably informed about the progress of discussions
regarding the decrease in the production level with Infraserv comprised in the Contracts.
The Seller undertakes to bear and indemnify the Purchaser for such overcapacity payments up
to a maximum of &#091;<B>...</B>***<B>...</B>&#093;. If Closing occurs after 3 April&nbsp;2009, such cap shall be reduced
by &#091;<B>...</B>***<B>...</B>&#093; per day to reflect the then
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">reduced exposure to infraserv due to the shorter remaining term of the contracts. For the
avoidance of doubt, this section 16.3 shall not apply in the event of a lip asset sale.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>FINAL PROVISIONS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All the references to the Agreement or any related document or Annex, shall mean the
Agreement as amended by this Amendment Agreement. Except as specifically provided for above,
the Agreement shall remain in full force and effect in the original form agreed by the
Parties, and is hereby ratified and confirmed.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any provision of this Amendment Agreement or any provision to be incorporated into this
Amendment Agreement is or becomes invalid or impracticable or should a necessary provision not
be contained in this Amendment Agreement, the validity of this Amendment Agreement and the
remaining provisions of this Amendment Agreement shall remain unaffected. Instead of the
invalid or impracticable provision or to bridge the gap, a valid provision is applicable which
to the fullest extent possible corresponds to what the parties would have wanted or according
to the sense and object of this Amendment Agreement would have agreed if they had known the
invalidity or impracticability or had realized the gap.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Amendment Agreement shall be exclusively governed by and construed in accordance with
the law of the Federal Republic of Germany applicable to parties residing within the Federal
Republic of Germany (without regard to the conflicts of law provisions of the law of the
Federal Republic of Germany).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All disputes, controversies or claims arising from or in connection with this Agreement
(including questions concerning its validity) shall be finally and exclusively settled
according to Section&nbsp;23.5 of the Agreement.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>The notary shall be entitled to execute this deed in extracts in order to present it to the land
register.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>This recording included has been read to the appeared in the presence of the Notary, was presented
to them for inspection together, approved by the appeared and signed by them and the Notary as
follows:</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.2
<SEQUENCE>3
<FILENAME>v52349exv2w2.htm
<DESCRIPTION>EX-2.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv2w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 2.2</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>***Text Omitted and Filed Separately<BR>
with the Securities and Exchange Commission.<BR>
Confidential Treatment Requested<BR>
Under 17 C.F.R. Sections&nbsp;200.80(b)(4)<BR>
and 240.24b-2.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="v52349v5234901.gif" alt="(CLIFFORD CHANCE LOGO)">
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Execution Version
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">PFIZER MANUFACTURING FRANKFURT GMBH
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">PFIZER INC.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">AND
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">MANNKIND CORPORATION
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 46%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">INSULIN SALE AND PURCHASE AGREEMENT
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 46%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1. Definitions and Interpretation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2. Sales and Purchases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3. Apportionment of Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4. Purchase Price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5. Conditions to Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6. Pre-Closing Undertakings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7. Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">8. Guarantees by PMF and PFIZER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">9. Purchaser&#146;s Guarantees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10. Indemnification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11. Conduct of Claims</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12. Confirmations of the Purchaser</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">13. Use of Names &#147;Pfizer&#148; and &#147;Exubera&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14. Access and Other Rights of PFIZER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15. Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">16. Confidentiality, Announcements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">17. Assignment Restrictions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18. Costs and Transfer Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">19. Final Provisions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>INDEX OF ANNEXES</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="82%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Annex Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Title of Annex</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.1(a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated License Agreement</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.1(b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assignment of PFIZER's EPA Rights Agreement</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.1(c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assignment of PFIZER's License Rights Agreement</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.1(d)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assignment of PMF's License Rights Agreement</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.1(e)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assignment of PMF's IP Rights Agreement</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.1(f)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Data Room Index</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.1(g)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Guarantees</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.1(h)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insulin Maintenance and Call Option Agreement</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.1(i)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Logfile</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.1(j)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reference Material</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.1(k)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Post Closing Improvements</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.1.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insulin Batch Numbers / Production Year</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Price Allocation</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">8.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Limitations on Liability</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchaser's Guarantees</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>THIS INSULIN SALE AND PURCHASE AGREEMENT </B>is made on 6&nbsp;March&nbsp;2009
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>BETWEEN</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Pfizer Manufacturing Frankfurt GmbH</B>, with statutory seat in Frankfurt am Main, Federal
Republic of Germany, registered in the commercial register at the local court of Frankfurt am
Main under HRB 81803 (&#147;<B>PMF</B>&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PFIZER INC.</B>, a Delaware corporation with principal executive offices at 235 East 42nd Street,
New York, New York 10017, USA (&#147;<B>PFIZER</B>&#148;); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>MannKind Corporation</B>, a corporation under the laws of the state of Delaware, the United
States of America, having its principal place of business at 28903 North Avenue Paine,
Valencia, CA 91355, USA (the &#147;<B>Purchaser</B>&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>WHEREAS</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF owns approximately &#091;...***...&#093; of bulk insulin, which have been manufactured under the
amended and restated license agreement between Sanofi-Aventis Deutschland GmbH and PMF.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF desires to sell to the Purchaser in accordance with the terms and conditions of this
Agreement approx. &#091;...***...&#093; of such bulk insulin inventory and the Purchaser desires to acquire
such amount of bulk insulin inventory in accordance with the terms and conditions of this
Agreement. The remaining portion of the bulk insulin inventory (approx. &#091;...***...&#093;) and further
bulk insulin inventory owned by PFIZER (approx. &#091;...***...&#093;) shall be retained by PMF and PFIZER
and shall be subject to an Insulin Maintenance and Call Option Agreement between PMF, PFIZER
and the Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF and PFIZER hold certain other rights and own certain other assets relating to the
manufacture of bulk insulin and inhalable insulin, which PFIZER and certain of its affiliates
acquired under the Exubera purchase agreement from Sanofi-Aventis Deutschland GmbH and its
affiliates.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF and PFIZER desire to sell to the Purchaser such other rights and assets in accordance with
the terms and conditions of this Agreement and the Purchaser desires to acquire such rights
and assets from PMF and PFIZER in accordance with the terms and conditions of this Agreement.
The Purchaser declares and PMF and PFIZER acknowledge that the Purchaser desires to acquire
such other rights and assets in its capacity as the general partner (<I>beherend vennoot</I>) of
Technosphere International C.V., a limited partnership (<I>commanditaire vennootschap</I>) registered
at the trade register of the Chambers of Commerce (<I>Kamer van Koophandel</I>) Amsterdam under
registration number 34329074, having its seat at Amsterdam (address: 1097 JB Amsterdam, Prins
Bernhardplein 200) (&#147;<B>Technosphere</B>&#148;).</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOW, therefore, the Parties agree as follows:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DEFINITIONS AND INTERPRETATION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Capitalised terms and expressions used in this Agreement shall have the meaning ascribed to
them in the HBR Purchase Agreement unless defined otherwise in the following:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean this Insulin Sale and
Purchase Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Amended and Restated License
Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the amended and restated
license agreement between
Sanofi-Aventis Deutschland GmbH and
PMF (under its former name and form
Diabel GmbH &#038; Co. KG) dated 28
February&nbsp;2006, a copy of which is
set out in <B>Annex 1.1(a)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Assignment of PFIZER&#146;s EPA Rights
Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean an assignment of PFIZER&#146;s
EPA Rights to be entered into by
PFIZER and the Purchaser
substantially in the form set out in
<B>Annex&nbsp;1.1(b)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Assignment of PFIZER&#146;s License
Rights Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean an assignment of PFIZER&#146;s
License Rights to be entered into by
PFIZER and the Purchaser
substantially in the form set out in
<B>Annex&nbsp;1.1(c)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Assignment of PMF&#146;s License Rights
Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean an assignment of PMF&#146;s
License Rights to be entered into by
PMF and the Purchaser substantially
in the form set out in <B>Annex&nbsp;1.1(d)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Assignment of PMF&#146;s IP Rights
Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean an assignment of PMF&#146;s IP
Rights to be entered into by PMF and
the Purchaser substantially in the
form set out in <B>Annex&nbsp;1.1(e)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Breach</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean a Guarantee by PMF or
PFIZER being untrue or incorrect or
a covenant by PMF or PFIZER being
breached, or guarantee by the
Purchaser being untrue or incorrect
or a covenant by the Purchaser being
breached;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Bulk Insulin Inventory</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean approx. &#091;...***...&#093; of bulk
insulin inventory owned as of the
date hereof by PMF;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Business Days</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean any day other than a Saturday or Sunday, on which
the banks are open for regular business in New York, United States of America and
Frankfurt</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">am Main, Federal Republic of Germany;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Claim</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean any claim under or for breach of this
Agreement, including any claim for damages or
indemnification due to a Guarantee by PMF or
PFIZER or a Purchaser&#146;s guarantee being incorrect
or a covenant being breached;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Closing</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the consummation of all of the Closing
Actions;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Closing Actions</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the actions set out in Section&nbsp;7.2
collectively or individually;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Closing Condition(s)</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;5.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Closing Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;7.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Data Room</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the physical data room of documents
provided by the Seller to the Purchaser for
inspection between 3 December&nbsp;2008 and 3 March
2009;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Data Room&nbsp;Index</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the data room index contained in <B>Annex
1.1(f)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>DMF</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the drug master file for the Bulk
Insulin Inventory containing all chemistry,
manufacturing and controls data and, in cases
where required by specific regulatory agencies,
additional data on file with any regulatory
authority;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Drop Dead Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;5.5;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Expiration Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;13.3;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Exubera Purchase
Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the Exubera purchase agreement between
Sanofi-Aventis Deutschland GmbH and certain of
its affiliates named therein as sellers and
PFIZER and Pfizer Manufacturing Deutschland GmbH
(under its former name and form &#147;Heinrich Mack
Nachf. GmbH &#038; Co. KG&#148;) as buyers, dated 13
January&nbsp;2006 (notarial deed no. 10/2006 and
notarial deed no. 11/2006 of the public notary
Wendelin von Ketelhodt, Frankfurt am Main) as
amended;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
<DIV align="center">
<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Guarantees</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all or any of PMF&#146;s or PFIZER&#146;s
statements set forth in <B>Annex 1.1(g)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>HBR Purchase
Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean a separate agreement between the
Purchaser and its affiliate, PMF and PFIZER
according to which certain other assets of PMF
and certain rights of PFIZER are sold by PMF and
PFIZER to the Purchaser and its affiliate dated
as of the date hereof (notarial deed number
&#091;&#149;&#093;&nbsp;2009 of the notary &#091;&#149;&#093;;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Indemnitee</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;11.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Indemnitor</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;11.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Information</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;8.3;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Insulin Maintenance
and Call Option
Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean an insulin maintenance and call option
agreement to be entered into by PMF, PFIZER and
the Purchaser according to which the Purchaser
will store and maintain approx. &#091;...***...&#093; of Bulk
Insulin Inventory (which are not sold by PMF to
the Purchaser under this Agreement but which will
be retained by PMF) as well as approx. &#091;...***...&#093; of
bulk insulin owned by PFIZER, substantially in
the form set out in <B>Annex&nbsp;1.1(h)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Intellectual Property</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all industrial and intellectual property rights, whether registered or not,
including pending applications for registration of such rights and the right to apply
for registration or extension of such rights including, without limitation, patents
(including continuation, divisional, continuation in part, re-examination and
reissue patent applications, and any patents issuing therefrom), petty patents,
utility models, design patents, registered and unregistered designs,
copyright (including moral rights and neighboring rights), integrated circuits
and other sui generis rights, trade marks, trading names, service marks, logos, the
get-up of products and packaging, geographical indications and applications
and other signs used in trade, internet domain names, unique marketing codes, rights in
know-how, mask works, inventions (including employee inventions
(<I>Dienster-</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>findungen</I>) that have been claimed (<I>in
Anspruch genommen</I>) by PMF (or
as to which PMF has the right
to claim) in accordance with
the German Law on Employee
Inventions
(<I>Arbeitnehmererfindungsgesetz</I>)
or comparable foreign laws),
discoveries, methods,
processes, techniques,
methodologies, formulae,
algorithms, technical data
(such as manufacturing
documentation),
specifications, research and
development information,
technology, data bases, source
codes in each case that
derives economic value (actual
or potential) from not being
generally known to other
persons who can obtain
economic value from its
disclosure as well as object
codes, flow charts, manuals,
product documentation,
publicity rights and any
rights of the same or similar
effect or nature as any of the
foregoing anywhere in the
world;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Logfile</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the logfile in <B>Annex 1.1(i)</B>;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Party</B>&#148; or &#147;<B>Parties</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean PMF, PFIZER and the Purchaser
collectively or individually;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Person</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean an individual, corporation,
partnership, firm, limited liability company,
association, trust, unincorporated or other
organization, entity or group;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>PFIZER</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in the
lead-in to this Agreement;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>PFIZER&#146;s EPA Assets</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the following assets acquired by
PFIZER or any affiliate of PFIZER under the
Exubera Purchase Agreement (as amended or
further developed): (i)&nbsp;the master cell bank:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093; and the working cell bank: &#091;...***...&#093;,
(ii)&nbsp;the &#147;DMF Related Regulatory
Correspondence&#148; as listed in Schedule&nbsp;1.1 (g)
to the Exubera Purchase Agreement, (iii)&nbsp;the
&#147;Reference Material&#148; as listed <B>Annex 1.1(j)</B>,
and (iv)&nbsp;the &#147;Bulk Insulin Technical
Information&#148; as listed in Schedule&nbsp;1.1(c) to
the Exubera Purchase Agreement, and (vi)&nbsp;all
such other assets and documentation and
Intellectual Property that directly relate to
PFIZER&#146;s EPA Rights and are reduced to
writing or can be reasonable documented by
the Purchaser;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>PFIZER&#146;s EPA Rights</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all rights of PFIZER or any
affiliate of PFIZER, which were acquired
under the Exubera Purchase Agreement,
including the &#147;Product Technical Information&#148;
as defined in the Exubera Purchase Agreement,
to the extent such rights relate to the
&#147;Product&#148; as defined in the Exubera Purchase
Agreement and to the extent PFIZER (or any of
its affiliates) is able to sell and transfer
such rights, in particular rights which have
either ceased to exist due to performance or
statute of limitation or have been sold or
transferred to third parties (other than the
affiliates of PFIZER) prior to the date
hereof are excluded;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>PFIZER&#146;s License Rights</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the rights of PFIZER under the
Amended and Restated License Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>PMF</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in the lead-in to this
Agreement;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>PMF&#146;s License Assets</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Shall mean the following assets of PMF: the
documentation relating to (i)&nbsp;the &#147;Patent Rights&#148;
(including the patents listed in Schedule&nbsp;I to the
Amended and Restated License Agreement), (ii)&nbsp;the
&#147;Production Process&#148; as listed in and enclosed
under Schedule&nbsp;II to the Amended and Restated
License Agreement, (iii)&nbsp;the &#147;Pre-Closing
Improvements&#148; as listed in and enclosed under
Schedule&nbsp;III to the Amended and Restated License
Agreement, (iv)&nbsp;the post-closing improvements as
listed in <B>Annex 1.1(k)</B>, (v)&nbsp;the &#147;Production
Technology&#148; as listed in and enclosed under
Schedule&nbsp;IV to the Amended and Restated License
Agreement, and (vi)&nbsp;all such other assets and
documentation and Intellectual Property that
directly relate to PMF&#146;s License Rights and are
reduced to writing or can be reasonable documented
by the Purchaser;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>PMF&#146;s IP-Rights</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all Intellectual Property legally or
beneficially owned (including by way of license by
a third party) by PMF at the Closing Date, 00:00
h, and all Intellectual Property used by PMF at
the Closing Date, 00:00 h, or which was created,
generated or acquired for use by PMF at the
Closing Date, 00:00 h, including, for the
avoidance of doubt, the rights to the &#147;DMF&#148; as
defined in the Exubera Purchase Agreement and all
records relating to the &#147;DMF&#148;, but excluding any
Intellectual Property held by PMF under the
Amended and Restated License Agreement and further
excluding the Retained Names and Marks and further
excluding any Intellectual Property not relating
to the manufacture of bulk insulin;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>PMF&#146;s License Rights</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all of PMF&#146;s rights under the
Amended and Restated License Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>PMF&#146;s Process
Control Data</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean an electronic copy on hard disc of
PMF&#146;s documentation of the configuration of the
off-the-shelf software used by PMF in the insulin
production process control existing on the date
hereof;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchase Price</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;4.1;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchaser</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in the lead-in to
this Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Retained Names and
Marks</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;13.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Sellers</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean PMF and PFIZER collectively;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Seller&#146;s Bank
Account</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the following bank account to be used
via MT103:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">with separate cover message (MT202) to &#091;...***...&#093;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;...***...&#093;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">or any other bank account or payment instructions
communicated by the Seller to the Purchasers in
writing not less than five Business Days prior to
the due date of the relevant payment;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Sellers&#146; Group</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean PFIZER and PMF and any affiliate
(<I>verbundene Unternehmen </I>as defined in sections 15
et seq. of the German Stock Corporation Act
(<I>Aktiengesetz</I>)) of PFIZER and PMF;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Third Party Claim</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;11.2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>UStG</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the German Value Added Tax Act
(<I>Umsatzsteuergesetz</I>);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>VAT</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean German value added tax (<I>Umsatzsteuer</I>).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In this Agreement, unless the context otherwise requires:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>headings are for convenience only and do not affect the interpretation of this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to any term in the singular shall, if the context so demands, also include the plural
and vice versa;</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to one gender includes all genders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to EUR or Euro are references to the lawful currency of the member states of the
European Union;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to USD or US Dollar are references to the lawful currency of the United States of
America;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>where a German term has been inserted in parenthesis and/or italics the German term alone
(and not the English term to which it relates) shall be authoritative for the purpose of the
interpretation of the relevant English term in this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to any German legal term for any action, remedy, method of judicial proceeding,
legal document, legal status, court, official or any other legal concept shall, in respect of
any jurisdiction other than the Federal Republic of Germany, be interpreted to include the
legal concept which most closely corresponds in that jurisdiction to the German legal term;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to any statute or statutory provision shall be construed as a reference to the
same as it has been in force as of the date hereof, unless indicated otherwise.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Annexes and Schedules of this Agreement form an integral part of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SALES AND PURCHASES</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF hereby sells to the Purchaser and the Purchaser hereby purchases the following rights and
assets upon the terms and conditions of this Agreement:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF&#146;s License Rights;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approx. &#091;...***...&#093; of Bulk Insulin Inventory as identified in detail <I>inter alia </I>by batch
numbers and production year in <B>Annex 2.1.1</B>;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF&#146;s IP-Rights;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF&#146;s License Assets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF&#146;s Process Control Data.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PFIZER hereby sells to the Purchaser and the Purchaser hereby purchases the following rights
and assets upon terms and conditions of this Agreement:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PFIZER&#146;s EPA Rights;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PFIZER&#146;s EPA Assets;</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>
<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PFIZER&#146;s License Rights.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties agree that the transfer in rem (<I>dinglich</I>) of the approx. &#091;...***...&#093; of Bulk Insulin
Inventory, PMF&#146;s License Assets and PFIZER&#146;s EPA Assets as well as the assignment of PMF&#146;s
License Rights, PMF&#146;s IP-Rights, PMF&#146;s Process Control Data, PFIZER&#146;s License Rights and
PFIZER&#146;s EPA Rights shall not be effected by virtue of this Agreement but shall take place at
the Closing in accordance with Section&nbsp;7.2.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Internally, the Purchaser represents and the Sellers acknowledge that the Purchaser purchases
and at Closing will acquire the assets and rights specified in Sections&nbsp;2.1.1, 2.1.3, 2.1.4,
2.1.5, 2.2.1, 2.2.2 and 2.2.3 in its capacity as general partner (<I>beherend vennoot</I>) of
Technosphere.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>APPORTIONMENT OF LIABILITIES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF and PFIZER remain responsible for all liabilities incurred with respect to the assets and
rights sold under this Agreement for any periods before the Closing Date, 00:00 h. PMF and
PFIZER indemnify the Purchaser with respect to any such pre-Closing liabilities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser is responsible for all liabilities incurred with respect to the assets and
rights sold under this Agreement for any periods after the Closing Date, 00:00 h. The
Purchaser indemnifies PMF and PFIZER with respect to any such post-Closing liabilities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PURCHASE PRICE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In consideration of the approx. &#091;...***...&#093; of Bulk Insulin Inventory, PMF&#146;s License Rights,
PMF&#146;s IP Rights, PMF&#146;s License Assets, PMF&#146;s Process Control Data, PFIZER&#146;s License Rights,
PFIZER&#146;s EPA Rights and PFIZER&#146;s EPA Assets acquired under this Agreement and all rights of
the Purchaser and the Sellers under the Insulin Maintenance and Call Option Agreement the
Purchaser shall pay to the Sellers a purchase price (the &#147;<B>Purchase Price</B>&#148;) of &#091;...***...&#093;, plus
VAT, if any.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The calculation of the Purchase Price as attributed to the approx. &#091;...***...&#093; of the Bulk
Insulin Inventory as defined in Section&nbsp;2.1.2 includes an arm&#146;s length consideration payable
to the Purchaser for the storage and maintenance of approx. &#091;...***...&#093; of Bulk Insulin Inventory
which are retained by PMF according to the Insulin Maintenance and Call Option Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If and to the extent the sale is subject to VAT, the Purchaser has to pay statutory VAT in cash
in addition to the Purchase Price to the Sellers within 10 Business</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Days after receipt of an invoice which complies with Section&nbsp;14 and Section&nbsp;14a UStG.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchase Price shall be allocated to the assets and rights sold under this Agreement and
the Insulin Maintenance and Call Option Agreement as set out in <B>Annex&nbsp;4.4</B>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All payments to be made to the Sellers pursuant to this Agreement shall be made in cash by
wire transfer free of charges and without any restrictions to the Sellers&#146; Bank Account or any
other bank account communicated by the Sellers in writing not less than five Business Days
prior to the due date of the relevant payment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event that the Purchaser is in default (<I>Verzug</I>) with payments under this Agreement,
the Parties agree that default interest (<I>Verzugszinsen</I>) shall be payable by the Purchaser as
provided for in section 288 para. 2 BGB calculated on the outstanding amount for the period
starting with the due date up to and including the date at which the outstanding amount
increased by the default interest is irrevocably credited to Sellers&#146; Bank Account.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONDITIONS TO CLOSING</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The obligations of the Parties to carry out the Closing are conditional upon satisfaction or
waiver of all of the following conditions to Closing (collectively or individually, the
&#147;<B>Closing Conditions</B>&#148;):</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The earlier to occur of the (i)&nbsp;the LIP Asset Sale Closing or (ii)&nbsp;the LIP
Business Sale Closing, in each case according to the terms of the HBR Purchase
Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Expiry of a six week period starting on the date PMF and PFIZER have
delivered the notifications to Sanofi-Aventis and Sanofi-Aventis Deutschland GmbH in
accordance with Section&nbsp;6.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Closing Conditions or any of them may only be waived, in whole or in part, by the written
agreement of the Sellers and the Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Sellers and the Purchaser shall each notify the other in writing promptly (<I>unverz&#252;glich</I>)
upon becoming aware that any of the Closing Conditions have been satisfied or have become
incapable of satisfaction (<I>unm&#246;glich geworden</I>) and shall, upon request, provide the other
Party with any documentation providing evidence on such fulfilment or incapability of
satisfaction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser and the Sellers shall use their best efforts to ensure that the Closing
Conditions are satisfied as soon as possible after the date hereof. The</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchaser and the Sellers shall have no right to delay or prevent the satisfaction of the
Closing Conditions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Closing Conditions have not been satisfied or waived on or before 31&nbsp;October&nbsp;2009
(&#147;<B>Drop Dead Date</B>&#148;) the Parties may at their respective absolute discretion (<I>nach freiem
Ermessen</I>) jointly agree in writing to extend the Drop Dead Date or otherwise either the
Sellers or the Purchaser may each elect to rescind (<I>zur&#252;cktreten</I>) this Agreement unless the
relevant Party has caused (<I>verschuldet</I>) or is responsible for (<I>vertreten m&#252;ssen</I>) the failure
of the Closing Condition to be satisfied. In the event of such rescission, neither Party shall
have any claim under this Agreement of any nature whatsoever against the other Party, except
Claims for breach of the covenants set forth in Section&nbsp;5.4.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PRE-CLOSING UNDERTAKINGS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As soon as practicable after the date hereof, PFIZER shall notify Sanofi-Aventis, 174 avenue
de France, 75013 Paris, France, about the sale and envisaged assignment of PFIZER&#146;s EPA Rights
to the Purchaser or its affiliates in accordance with section 13.3(d) of the Exubera Purchase
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As soon as practicable after the date hereof, PFIZER shall notify Sanofi-Aventis Deutschland
GmbH, Industriepark Hoechst, 65926 Frankfurt am Main, Federal Republic of Germany, about the
sale and envisaged assignment of PFIZER&#146;s License Rights to the Purchaser with effect
(<I>aufschiebend bedingt</I>) as of 28 February&nbsp;2010 in accordance with section 13.5 of the Amended
and Restated License Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As soon as practicable after the date hereof, PMF shall notify Sanofi-Aventis Deutschland
GmbH, Industriepark Hoechst, 65926 Frankfurt am Main, Federal Republic of Germany, about the
sale and envisaged assignment of PMF&#146;s License Rights to the Purchaser in accordance with
section 13.4 of the Amended and Restated License Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of PMF and Pfizer without undue delay shall notify the Purchaser in writing of all
events or circumstances arising or coming to the knowledge of PMF or PFIZER, as the case may
be, after the date hereof, which to the reasonable assessment of PMF or Pfizer, as the case
may be, may result in a Breach of a Guarantee.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser intends to conduct a physical stock take (<I>Inventur</I>) of the PFIZER&#146;s EPA Assets
and the PMF&#146;s License Assets as soon as practicable at its own cost. For this purpose, the
Seller shall provide to the Purchaser and its designees access to the premises of the insulin
plant and the records at usual working hours, and shall provide reasonable assistance to the
Purchaser to enable the Purchaser to conduct the physical stock take in an efficient manner
and within a</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reasonable period of time of not less than 5 but not more than 15 Business Days after the
date hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller and the Purchaser shall cooperate in good faith between the date of this Agreement
and the Closing Date in order to coordinate the actions required to ensure a seamless transfer
to the Purchaser at Closing of the obligations to maintain the DMF, to run the stability
program and to maintain the documentation of the records as provided for in the Insulin
Maintenance and Call Option Agreement, and to discuss the system to electronically store PMF&#146;s
Process Control Data.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CLOSING</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties shall effect the Closing on the day on which the last Closing Condition has been
satisfied or waived (&#147;<B>Closing Date</B>&#148;). The Closing shall take place at Clifford Chance in
Frankfurt am Main, Federal Republic of Germany or at such other location, time or date as may
be agreed between the Parties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At the Closing, the Parties shall take the following Closing Actions in the following order
(<I>Zug um Zug</I>):</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall pay the Purchase Price to the Sellers in cash by wire transfer to the
Sellers&#146; Bank Account.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF shall transfer the approx. &#091;...***...&#093; of Bulk Insulin Inventory to the Purchaser and the
Purchaser shall take possession (<I>Besitz</I>) of such Bulk Insulin Inventory (unless the Purchaser
has already possession).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF and the Purchaser shall execute the Assignment of PMF&#146;s License Rights Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF and the Purchaser shall execute the Assignment of PMF&#146;s IP Rights Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF shall transfer PMF&#146;s License Assets to the Purchaser and the Purchaser shall take
possession (<I>Besitz</I>) of PMF&#146;s License Assets (unless the Purchaser has already possession).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF shall transfer PMF&#146;s Process Control Data to the Purchaser and the Purchaser shall take
possession (<I>Besitz</I>) of PMF&#146;s Process Control Data.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PFIZER and the Purchaser shall execute the Assignment of PFIZER&#146;s EPA Rights Agreement.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PFIZER and the Purchaser shall execute the Assignment of PFIZER&#146;s License Rights Agreement
to assign PFIZER&#146;s License Rights to the Purchaser with effect as of 28 February&nbsp;2010
(<I>aufschiebend bedingt</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PFIZER shall transfer PFIZER&#146;s EPA Assets to the Purchaser and the Purchaser shall take
possession (<I>Besitz</I>) of PFIZER&#146;s EPA Assets (unless the Purchaser has already possession).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF, PFIZER and the Purchaser shall execute the Insulin Maintenance and Call Option
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>After the last Closing Action has been taken, the Parties shall sign a closing memorandum
including the confirmation to each other that the Closing Conditions have been fulfilled and
that the Closing Actions, in particular the agreement on the transfers and assignments with
respect to the assets and rights sold under this Agreement, have been taken in accordance with
this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any Party fails to perform or procure performance of any of the Closing Actions to be
performed by it, the Purchaser, in the case of non-performance by the Sellers, or the Sellers,
in the case of non-performance by the Purchaser, shall be entitled to (in addition to and
without prejudice to all other rights or remedies available) by written notice to the other
Party (i)&nbsp;rescind (<I>zur&#252;cktreten</I>) this Agreement, or (ii)&nbsp;set a new date for Closing (not being
more than 10 Business Days after the Closing Date) in which case the provisions of this
Section&nbsp;7 shall apply to the Closing as so deferred.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a rescission, neither Party shall have any claim under this Agreement of any
nature whatsoever against the other Party except Claims for breach of the covenants set forth
in Sections&nbsp;5.4, 6 and 7.2.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>GUARANTEES BY PMF AND PFIZER</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties have extensively discussed and negotiated to which extent and in which way PMF
and PFIZER should be liable for defects of the assets and rights sold under this Agreement
and/or if it turns out that the Guarantees are untrue or incorrect. The Parties have decided
to depart from the statutory system of liability and to provide instead for a separate system
of liability, as determined in this Section&nbsp;8 and <B>Annex 1.</B><B>1(g)</B> and <B>Annex 8.2</B>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF and PFIZER each guarantee in the form of an independent guarantee according to section
311 para. 1 BGB (<I>selbst&#228;ndiges Garantieversprechen</I>) with regard to the assets and rights sold
under this Agreement that, subject to the qualifications set out in <B>Annex 1.</B><B>1(g)</B> and <B>Annex
8.2</B>, the Guarantees are true and correct in all material aspects as at the date hereof or as
at such date as expressly referred to in the Guarantees, provided, however, that any
provisions and</TD>
</TR>

</TABLE>
</DIV></DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limitations contained in this Agreement relating to the consequences of a Breach of the
Guarantees, including the provisions and limitations set forth in <B>Annex 8.2 </B>form an
integral part of the Guarantees (<I>Inhalt des Schuldverh&#228;ltnisses </I>/ <I>Bestandteil der
Garantieerkl&#228;rung</I>), and the Guarantees are only given subject to such provisions and
limitations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Guarantees are qualified by any matters fairly disclosed by or under (i)&nbsp;this Agreement
(including the Annexes and Schedules), (ii)&nbsp;the documents provided in the Data Room and (iii)
the documents disclosed to the Purchaser and the answers of the Sellers to information
requests filed by the Purchaser according to the Logfile (the information referred to under
(i)&nbsp;through (iii)&nbsp;collectively, the &#147;<B>Information</B>&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser undertakes to the Sellers that, except in the case of gross negligence (<I>grobe
Fahrl&#228;ssigkeit</I>), fraud or wilful misconduct (<I>Vorsatz</I>) it waives and shall not make any claim
against any employee, director, agent or officer of PMF, PFIZER or member of the Sellers&#146;
Group on whom it may have relied on in relation to any information supplied or omitted to be
supplied by any such person in connection with the Guarantees or this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PURCHASER&#146;S GUARANTEES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties have extensively discussed and negotiated to which extent and in which way the
Purchaser should be liable if it turns out that statements made by the Purchaser in this
Section&nbsp;9 and <B>Annex&nbsp;9 </B>are untrue or incorrect. The Parties have decided to depart from the
statutory system of liability and to provide instead for a separate system of liability, as
determined hereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser guarantees in the form of an independent guarantee according to section 311
para. 1 BGB (<I>selbst&#228;ndiges Garantieversprechen</I>) that the Purchaser&#146;s guarantees in <B>Annex&nbsp;9 </B>are
true and correct as at the date hereof or as at such date as expressly referred to in <B>Annex&nbsp;9</B>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INDEMNIFICATION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In case of a Claim resulting from a Breach, the Party liable for the Breach shall put the
other Party into the position the other Party would have been in without the Breach
(<I>Naturalrestitution</I>). If the liable Party is unable to achieve this position within a
reasonable period of time after having been notified by the other Party of the Breach, the
other Party may claim monetary damages (<I>Schadenersatz in Geld</I>) provided, however, that such
damages shall only cover actual and direct damages incurred (<I>Mangelschaden</I>) by the other
Party, and shall in particular not cover (i)&nbsp;any indirect or consequential damages
(<I>Mangelfolgesch&#228;den</I>), (ii)&nbsp;losses caused by business interruptions, (iii)&nbsp;lost revenues
(<I>entgangene Einnahmen</I>), (iv)&nbsp;lost profit (<I>entgangener Gewinn</I>), (v)&nbsp;damages and</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>losses to goodwill, or (vi)&nbsp;reputational damages, and (vii)&nbsp;the other Party is not entitled
to claim damages based on any argument that the Purchase Price has been calculated upon
incorrect assumptions. The right of the other Party to rescind (<I>R&#252;cktritt</I>) this Agreement
is expressly excluded.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without prejudice to its duty to mitigate any loss, the each Party shall, at the other Party&#146;
cost provide all reasonable assistance to the Party to remedy any Breach.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties agree that the rights and remedies which the Sellers on the one hand and the
Purchaser on the other hand may have in case of a guarantee being untrue and/or incorrect,
breach of a covenant or in case of an indemnification or otherwise contained in this Agreement
are limited to the rights and remedies (including claims for specific performance) expressly
contained in this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent legally permissible, any claims and rights of any Party of any legal nature
whatsoever (contractual, quasi-contractual, tort or otherwise) extending beyond the claims
expressly provided for in this Agreement, in particular further-reaching claims based on
defects, claims under section 280 BGB which according to former case law would have been
considered as claims based on breach of pre-contractual obligations (<I>culpa in contrahendo</I>) or
positive breach of contractual obligations (<I>Positive Vertragsverletzung</I>), rights to terminate
this Agreement because of the lack of essential characteristics and claims under section&nbsp;313
BGB and any other rights to terminate this Agreement or exercise any right or remedy which
would have a similar effect are hereby excluded and waived by the Parties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The provisions of this Section&nbsp;10 shall not apply to (i)&nbsp;rights and remedies which the
Sellers may have under applicable law as a result of the Purchaser&#146;s failure to pay the
Purchase Price or any portion thereof in accordance with this Agreement, and (ii)&nbsp;any rights
and remedies of any Party for gross negligence (<I>grobe Fahrl&#228;ssigkeit</I>), fraud or wilful
misconduct (<I>Vorsatz</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONDUCT OF CLAIMS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In case of an issue, matter or fact potentially giving rise to a Claim, the Party seeking
damages or indemnification under this Agreement (the &#147;<B>Indemnitee</B>&#148;) from the other Party (the
&#147;<B>Indemnitor</B>&#148;) shall (i)&nbsp;within reasonable promptness and in no case later than within a period
of one month after the Indemnitee becomes aware of the matter, give written notice to the
Indemnitor of the Breach, state the circumstances of the Breach in reasonable detail, furnish
reasonable proof as it has in its possession of the Breach and, to the extent then feasible,
set forth the estimated amount of such Breach and (ii)&nbsp;shall grant the Indemnitor the
opportunity to remedy the Breach within a reasonable period of time of at least</TD>
</TR>

</TABLE>
</DIV></DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">45 Business Days, provided, that the failure of the Indemnitee to give written notice to
the Indemnitor within a period of one month shall relieve the Indemnitor from the
indemnification obligations herein unless the Indemnitor is not actually prejudiced as a
result of the failure to give such notice.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If claims are raised, legal or administrative proceedings commenced or threatened to be
commenced against the Indemnitee by a third party, including government agencies (a &#147;<B>Third
Party Claim</B>&#148;), which may give rise to a Claim, the Indemnitee shall notify the Indemnitor in
compliance with Section&nbsp;11.1 of such Third Party Claim. The Indemnitee shall ensure that the
Indemnitor shall (i)&nbsp;be provided with all materials, information (as it has in its possession)
and assistance relevant in relation to the Third Party Claim, (ii)&nbsp;be given reasonable
opportunity to comment or discuss with the Indemnitee any measures which the Indemnitor
proposes to take or to omit in connection with a Third Party Claim, and (iii)&nbsp;in particular,
the Indemnitor shall be given an opportunity to comment on, participate in, and review any
reports on social security audits, disputes or appeals or other measures and shall receive
without undue delay copies of all relevant notices (<I>Bescheide</I>) of any authority.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If and to the extent the Indemnitor depends on the cooperation of the Indemnitee, the
Indemnitee shall, to the extent legally possible for the Indemnitee, at the request and
expense of the Indemnitor, take all reasonable steps the Indemnitor may reasonably request
from the Indemnitee in that respect.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No admission of a Third Party Claim shall be made by or on behalf of the Indemnitee and the
Third Party Claim shall not be disposed of (<I>erledigt</I>) or settled (<I>verglichen</I>) without the
prior written consent of the Indemnitor, which consent shall not be unreasonably withheld.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Indemnitor shall be entitled at its own expense and its absolute discretion to take such
action as the Indemnitor shall deem necessary or appropriate to avoid, dispute, deny, defend,
resist, appeal, compromise or contest such Third Party Claim (including making counter claims
or other claims against third parties) in the name of and on behalf of the Indemnitee
provided, however, that the Indemnitor prior to such action has acknowledged in writing to the
Indemnitee that the Indemnitee will indemnify the Indemnitee from such Third Party Claim. The
Indemnitee shall give all such information and assistance, as described above, including
access to premises and personnel and the right to examine and copy or photograph any assets,
accounts, documents and records as the Indemnitor or its professional advisors may from time
to time request. The Indemnitor agrees to keep all such information confidential and only to
use it for such purpose.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent that the Indemnitor is in breach of a guarantee, breach of a covenant or in
case of an indemnification all costs and expenses incurred by the In-</TD>
</TR>

</TABLE>
</DIV></DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>demnitor in defending such claim shall be borne by the Indemnitor; if it turns out that the
Indemnitor was not in breach, any costs and expenses reasonably incurred by it in
connection with the defence (including adviser&#146;s fees and internal costs of its staff)
shall be borne by the Indemnitee.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The failure of any Indemnitee to comply with the obligations of the Indemnitee under this
Section&nbsp;11 shall release any Indemnitor from its obligation to pay damages or to indemnify
under this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any payments of the Indemnitor to the Indemnitee in connection with this Section&nbsp;11 shall be
considered as an adjustment of the Purchase Price.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONFIRMATIONS OF THE PURCHASER</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser confirms that when entering into this Agreement the Purchaser solely relies on
(i)&nbsp;its inspection and investigation of the assets and rights sold under this Agreement
conducted in the sole responsibility of the Purchaser, and (ii)&nbsp;the Information.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser had the opportunity to ask questions and seek further clarifications regarding
the Information.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser declares that the Purchaser is not aware of any facts or circumstances, which
could give rise to a Claim for Breach under this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>USE OF NAMES &#147;PFIZER&#148; AND &#147;EXUBERA&#148;</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No interest in or right to use the terms &#147;Pfizer&#148; or &#147;Exubera&#148; or any derivation thereof as
company name (<I>Firmenname</I>), as part of a company name or in any logo, trade mark or trade name
or in any other manner (&#147;<B>Retained Names and Marks</B>&#148;) is being transferred to the Purchaser
pursuant to the transactions contemplated by this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to Clauses 13.3, the Purchaser guarantees that neither the Purchaser nor an affiliate
of the Purchaser&#146;s Group shall use the Retained Names and Marks.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall as of the Closing Date discontinue the use of the Retained Names and
Marks in any respect, provided, however, that the Purchaser may continue to use the terms
&#147;Pfizer&#148; and &#147;Exubera&#148; for a transitional period of one month after the Closing Date
(&#147;<B>Expiration Date</B>&#148;) to reregister any authorization held by PMF or PFIZER. As from the
Closing, the Purchaser shall not take any action that might create the impression for a
reasonable third party that PMF&#146;s business continues to be a part of Sellers&#146; Group. The
Purchaser shall use commercially reasonable best efforts to obtain any registration or
approval nec-</TD>
</TR>

</TABLE>
</DIV></DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>essary to refrain from using the Retained Names and Marks as expeditiously as possible
after Closing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties agree that PMF and PFIZER shall have no responsibility for claims by third
parties arising out of, or relating to, the use by the Purchaser of any Retained Name or Mark
after the Closing Date. The Purchaser is obliged to defend, indemnify and hold harmless all
companies of the Sellers&#146; Group from any and all claims that may arise out of the use of the
Retained Names or Marks by the Purchaser whether or not in accordance with this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ACCESS AND OTHER RIGHTS OF PFIZER</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser herewith grants to PMF and PFIZER the irrevocable and unrestricted right to
make use of the DMF by cross-referencing to the DMF for regulatory purposes. This includes in
particular (without being limited to) the right to refer to the DMF in the preparation of a
dossier for an application to a marketing authorization of a medicinal product including line
extensions (MAA)&nbsp;or in the preparation for a dossier for an application for a variation of the
marketing authorization of a medicinal product (MAV)&nbsp;or to supply information to the
authorities in support of the chemistry, manufacturing and control (CMC)&nbsp;sections of INDs,
NDAs, ANDAs, and BLAs. Further, the Purchaser shall reasonably support PMF and PFIZER in
exercising this reference right by promptly issuing upon request of PFIZER or PMF the Letter
of Authorization (LOA)&nbsp;or Letter of Access (LOA)&nbsp;authorizing PMF or Pfizer or a third party
authorized by PFIZER or PMF to reference the DMF and by promptly responding to all other
requests of the competent authorities in close consultation with PFIZER and PMF.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser agrees that PMF and PFIZER keep copies of all documents and records sold to the
Purchaser under this Agreement and further agrees that PMF and PFIZER make available such
copies to the purchaser under a LIP Business Sale.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>NOTICES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless provided otherwise in this Agreement, all declarations of the Parties under this
Agreement which require receipt by the respective other Party must be made by registered mail
with return receipt (<I>Einschreiben mit R&#252;ckschein</I>) or equivalent including courier with
confirmation of receipt. The declarations shall at the same time be sent by telefax.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF and PFIZER appoint</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">Attention: Inderpal Singh<BR>
Pfizer Inc.<BR>
235 East 42nd Street
</DIV>

</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>


<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">New York, NY 10017<BR>
USA<BR>
Fax: &#043;1 (646)&nbsp;328 3113
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>copy to:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">Attention:<BR>
Christoph Holstein<BR>
Lars Benger<BR>
Clifford Chance<BR>
K&#246;nisgallee 59<BR>
40215 D&#252;sseldorf<BR>
Germany<BR>
Fax: &#043;49 211 4355 5600
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>as (joint)&nbsp;agent for service of process (<I>Zustellungsbevollm&#228;chtigter</I>) for all legal
proceedings involving PMF and/or PFIZER arising out of or in connection with this
Agreement. This appointment shall only terminate upon the appointment of another agent for
service of process domiciled in Germany, provided that the agent for service of process is
an attorney admitted to the German bar (<I>in Deutschland zugelassener Rechtsanwalt</I>) and his
appointment has been notified to and approved in writing by Purchaser (which approval shall
not be unreasonably withheld). PMF and/or PFIZER shall promptly after the date hereof and
upon the appointment of any new agent for service of process (as the case may be) issue to
the agent a written power of attorney (<I>Vollmachtsurkunde</I>) and shall irrevocably instruct
the agent to submit such deed in connection with any service of process under this
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser appoints</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">David Thomson<BR>
28903 North Ave. Paine<BR>
Valencia, California, 91355<BR>
USA<BR>
Fax: &#043;1 661 775 2086<BR>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">copy to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Dr.&nbsp;Benno Schwarz<BR>
Gibson, Dunn &#038; Crutcher LLP<BR>
Widenmayerstra&#223;e 10<BR>
80538 Munich<BR>
Germany<BR>
Fax. No:&#043;49 (89)&nbsp;189 33 310
</DIV>
</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>as its agent for service of process (<I>Zustellungsbevollm&#228;chtigter</I>) for all legal proceedings
involving Purchaser arising out of or in connection with this Agreement. This appointment
shall only terminate upon the appointment of another agent for service of process domiciled
in Germany, provided that the agent for service of process is an attorney admitted to the
German bar (<I>in Deutschland zugelassener Rechtsanwalt</I>) and his appointment has been notified
to and approved in writing by Seller (which approval shall not be unreasonably withheld).
Purchaser shall promptly after the date hereof and upon the appointment of any new agent
for service of process (as the case may be) issue to the agent a written power of attorney
(<I>Vollmachtsurkunde</I>) and shall irrevocably instruct the agent to submit such deed in
connection with any service of process under this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Party may at any time appoint one or more other authorized agents for the receipt of all
declarations that require receipt by the respective other Party by notice in accordance with
this Article&nbsp;15. However, for each Party at least one authorized agent for the receipt of all
declarations that require receipt by the respective other Party must be appointed.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONFIDENTIALITY, ANNOUNCEMENTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any information or documents relating to a Party or their respective businesses and made
available to another Party in connection with this Agreement shall not be disclosed to third
parties or published unless required by applicable law, rules or regulations. However, this
obligation shall not apply to information that is proven (i)&nbsp;to have been (or have become)
generally available (public domain) without breach of any obligation of any of the Parties,
(ii)&nbsp;to have been known to the disclosing Party prior to the disclosure, (iii)&nbsp;to have been
independently developed by the disclosing Party, or (iv)&nbsp;to have been received by the
disclosing Party from a third party without any violation of any obligation of such third
party owed to the disclosing Party.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither Party shall, without the prior written consent of the respective other Party,
disclose the content of this Agreement to third parties or make any information relating
thereto available to third parties. This shall not, however, apply to the extent a Party or an
affiliate of a Party is obliged to make any announcement or disclosure under applicable law or
regulation. The right of the Parties to disclose matters to advisers who are bound by law to
professional secrecy shall remain unaffected. Notwithstanding the foregoing, the Purchaser
shall be entitled to disclose the contents of this Agreement in connection with a potential
partnering transaction upon five Business Days notice to PFIZER unless PFIZER reasonably
refuses consent within such time period and further provided that the Purchaser shall only be
entitled to disclose the contents of this Agreement to a potential partner that (i)&nbsp;is bound
by an obligation of confidenti-</TD>
</TR>

</TABLE>
</DIV></DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->25<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ality and (ii)&nbsp;has been permitted to conduct due diligence on the Purchaser new drug
application for its inhaled insulin product.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless otherwise provided for in this Agreement, neither Party shall make any public
announcement regarding the entering into of this Agreement without the prior written consent
of the other Parties, unless (i)&nbsp;in a reasonable judgment of a Party, required by, or
appropriate under applicable law or regulation, or (ii)&nbsp;except as required to perform this
Agreement. Reasonably prior to any permitted announcement the Party wishing to make the
announcement shall, to the extent possible without violation of legal restrictions, notify the
other Party thereof, provide to the other Party the proposed wording of the announcement,
consult with the other Party and take any requests of the other Party into due consideration.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ASSIGNMENT RESTRICTIONS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement and any rights and obligations hereunder may not be assigned and
transferred, in whole or in part, without the prior written consent of the other Parties
hereto, provided, however, that each Party may assign and transfer any rights and
obligations under this Agreement to its affiliates (<I>verbundene Unternehmen </I>as defined in
sections 15 et seq. of the German Stock Corporation Act (<I>Aktiengesetz</I>)) if and to the
extent such assigning Party remains obliged to adhere to the terms of this Agreement as
joint creditor (<I>Gesamtschuldner</I>) with the respective affiliate.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>COSTS AND TRANSFER TAXES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All expenses, costs, fees and charges in connection with the transactions contemplated
under this Agreement including without limitation, legal services, shall be borne by the
Party commissioning the respective expenses, costs, fees and charges unless expressly
provided otherwise in this Agreement. All notarial fees as well as the other costs that
result from the signing of this Agreement and the consummation of the transactions
contemplated in this Agreement, including any possible applicable transfer taxes shall be
borne by the Purchaser. The costs arising in connection with the notification of the
transaction to the competent authorities, if any, including the costs charged by the
competent authorities, shall be borne by the Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>FINAL PROVISIONS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF and PFIZER shall be severally but not jointly liable for any of their obligations under
or in connection with this Agreement (<I>Haftung als Teilschuldner; Ausschluss der
gesamtschuldnerischen Haftung</I>). To the extent, any of the rights and assets sold under this
Agreement are held/owned by affiliates of PFIZER</TD>
</TR>

</TABLE>
</DIV></DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">other than PMF, PFIZER will procure the transfer of the respective rights and assets to the
Purchaser by the respective affiliates at Closing and thereafter.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any amendments to this Agreement shall be in writing, signed by each of the Parties to be
valid and require the explicit reference to this Agreement but need to be notarized if this is
required by mandatory law. This is also applicable for an amendment of this Section&nbsp;19.2.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any provision of this Agreement or any provision to be incorporated into this Agreement is
or becomes invalid or impracticable or should a necessary provision not be contained in this
Agreement, the validity of this Agreement and the remaining provisions of this Agreement shall
remain unaffected. Instead of the invalid or impracticable provision or to bridge the gap, a
valid provision is applicable which to the fullest extent possible corresponds to what the
parties would have wanted or according to the sense and object of this Agreement would have
agreed if they had known the invalidity or impracticability or had realized the gap.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement shall be exclusively governed by and construed in accordance with the law of
the Federal Republic of Germany applicable to parties residing within the Federal Republic of
Germany (without regard to the conflicts of law provisions of the law of the Federal Republic
of Germany).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All disputes, controversies or claims arising from or in connection with this Agreement
(including questions concerning its validity) shall be finally and exclusively settled under
the Rules of Arbitration of the International Chamber of Commerce without recourse to the
ordinary courts of law. The arbitration tribunal shall consist of 3 (three)&nbsp;arbitrators. The
arbitration shall take place in Frankfurt am Main. The arbitration shall be conducted in
English but written evidence (<I>Beweismittel</I>) may also be submitted in German. In the event that
applicable mandatory law requires any matter arising out of or connection with this Agreement
and its implementation to be decided by an ordinary court of law, the competent courts in
Frankfurt am Main &#151; to the extent legally possible &#151; shall have the exclusive jurisdiction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement comprises the entire agreement between the Parties concerning the subject
matter hereof and supersedes and replaces all prior negotiations, agreements and undertakings
of the parties whether oral or written, with respect to the subject matter hereof, including
without limitation, the Heads of Terms dated 13 February&nbsp;2009. The Parties agree that the
Confidentiality Agreement dated 3&nbsp;January&nbsp;2008, as amended, shall become invalid on the
Closing Date. Oral or written side agreements to this Agreement do not exist.</TD>
</TR>

</TABLE>
</DIV></DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Party shall from time to time execute and deliver all such further documents and
agreements and take all such further actions as the other Party may reasonably require and
which are not inconsistent with any other provisions of this Agreement in order to effectively
consummate this Agreement as provided herein.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Interest payable under any provision of this Agreement shall be calculated on the basis of
actual days elapsed divided by 360.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement shall not grant any rights to, and is not intended to operate for, the benefit
of third parties unless otherwise explicitly provided for herein.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as expressly provided otherwise in this Agreement, no Party shall be entitled (i)&nbsp;to
set-off (<I>aufrechnen</I>) any rights and claims it may have against any rights or claims any other
party may have under this Agreement, or (ii)&nbsp;to refuse to perform any obligation it may have
under this Agreement on the grounds of a right of retention (<I>Zur&#252;ckbehaltungsrecht</I>) unless the
rights or claims of the relevant party claiming a right of set-off (<I>Aufrechnung</I>) or retention
(<I>Zur&#252;ckbehaltung</I>) have been acknowledged (<I>anerkannt</I>) in writing by the relevant other
party/parties or have been confirmed by final decision of a competent court (<I>Gericht</I>) or
arbitration court (<I>Schiedsgericht</I>).</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">This recording has been read to the appeared in the presence of the Notary, was presented to them
for inspection together, approved by the appeared and signed by them and the notary as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">/s/ Authorized signatures
</DIV>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Annex 1.1(g)</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Guarantees</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>AUTHORIZATION</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, subject to the approvals referred to in the
Agreement, the execution and performance by PMF of the Agreement is within PMF&#146;s corporate
powers, does not violate the articles of association of PMF and will be, prior to the Closing
Date, duly authorized by all necessary corporate action on the part of PMF.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, subject to the approvals referred to in the
Agreement, the execution and performance by PFIZER of the Agreement is within PFIZER&#146;s
corporate powers, does not violate the articles of association of PFIZER and will be, prior to
the Closing Date, duly authorized by all necessary corporate action on the part of PFIZER.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, assuming compliance with any applicable
requirements under merger control laws, the execution and performance of the Agreement by PMF
requires no approval or consent by any governmental authority and does not violate any
applicable law or decision by any court or governmental authority binding on PMF.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, assuming compliance with any applicable
requirements under merger control laws, the execution and performance of the Agreement by
PFIZER requires no approval or consent by any governmental authority and does not violate any
applicable law or decision by any court or governmental authority binding on PFIZER.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof, there is no lawsuit, investigation or proceeding pending or, to the PMF&#146;s
best knowledge, threatened in writing against PMF before any court, arbitrator or governmental
authority which in any manner challenges or seeks to prevent, alter or materially delay the
transactions contemplated by the Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof, there is no lawsuit, investigation or proceeding pending or, to the
PFIZER&#146;s best knowledge, threatened in writing against PFIZER before any court, arbitrator or
governmental authority which in any manner challenges or seeks to prevent, alter or materially
delay the transactions contemplated by the Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>LEGAL ORGANIZATION</TD>
</TR>

</TABLE>
</DIV></DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, PMF has been duly established under the laws of
the Federal Republic of Germany, and PMF validly exists under the laws of the Federal Republic
of Germany.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, PFIZER has been duly established under Delaware
law, and PFIZER validly exists under Delaware law.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, no bankruptcy or insolvency proceedings are
pending with respect to PMF, and no such proceedings have been pending and no circumstances
existed according to which the PMF was insolvent and obliged to initiate such proceedings
under applicable laws.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, no bankruptcy or insolvency proceedings are
pending with respect to PFIZER.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, PMF is a wholly-owned indirect subsidiary of
PFIZER.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>TITLE TO BULK INSULIN INVENTORY AND VALID AGREEMENTS</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF has good and valid title to approx. &#091;...***...&#093; of Bulk Insulin Inventory sold under the
Agreement. The Purchaser is aware of the restrictions of use of the Bulk Insulin Inventory
based on the Amended and Restated License Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Amended and Restated License Agreement and the Exubera Purchase Agreement are binding and
valid with respect to PMF and PFIZER and any company of the Sellers&#146; Group and have not been
terminated (<I>gek&#252;ndigt</I>), materially amended (<I>ge&#228;ndert</I>) suspended by agreement (<I>einvernehmlich
aufgehoben</I>) or challenged in writing (<I>schriftlich angefochten</I>), in whole or in part, and are,
to the Sellers&#146; best knowledge, in full force and effect in accordance with the terms thereof,
as of the date hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither PMF nor PFIZER or, to the best knowledge of PMF and PFIZER, any other company of the
Sellers&#146; Group, have been served written notice or, to the best knowledge of PMF and PFIZER,
have been orally informed of formal proceedings relating to the validity, nullification,
interference with or voiding of the Amended and Restated License Agreement or the Exubera
Purchase Agreement.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A true and complete copy of the Amended and Restated License Agreement is attached hereto as
<B>Annex 1.1(a)</B>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A true and complete copy of the Exubera Purchase Agreement was available at notarization of
this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>INTELLECTUAL PROPERTY RIGHTS AND ASSETS</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to the terms of the Exubera Purchase Agreement and the terms of the Amended and
Restated License Agreement, (i)&nbsp;PFIZER has good and valid title to PFIZER&#146;s EPA Assets,
PFIZER&#146;s EPA Rights and PFIZER&#146;s License Rights, free and clear of any liens, pledges,
security interests, transfer restrictions, encumbrances, options, or other rights of third
parties of whatever kind, and (ii)&nbsp;PMF has good and valid title to PMF&#146;s License Assets, PMF&#146;s
IP Rights and PMF&#146;s License Rights, free and clear of any liens, pledges, security interests,
transfer restrictions, encumbrances, options, or other rights of third parties of whatever
kind.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Until the Closing Date, neither PMF nor PFIZER have transferred or assigned, waived or
otherwise disposed of any of their rights under the Amended and Restated License Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF&#146;s IP Rights, PMF&#146;s License Rights and PFIZER&#146;s License Rights together with any
Intellectual Property forming part of PFIZER&#146;s EPA Rights and any other rights and assets sold
to the Purchaser under the Agreement, constitute to the Sellers&#146; best knowledge all material
Intellectual Property necessary for the manufacture of bulk insulin (equal to the bulk insulin
of the Bulk Insulin Inventory).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within the 24 (twenty four) months prior to the date hereof, neither PMF nor PFIZER have been
served written notice or, to the best knowledge of PMF and PFIZER, have been orally informed
of formal proceedings relating to the validity, nullification, interference with or voiding of
PMF&#146;s IP Rights, PMF&#146;s License Rights or PFIZER&#146;s License Rights.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within the 24 (twenty four) months prior to the date hereof, neither PMF nor PFIZER have been
served written notice or, to the best knowledge of PMF and PFIZER, have been orally informed
of formal proceedings commenced by a third party against PMF or PFIZER asserting an
infringement, misappropriation or violation of third party rights by the use of any of PMF&#146;s
IP-Rights, PMF&#146;s License Rights or PFIZER&#146;s License Rights.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>NO OTHER GUARANTEE</TD>
</TR>

</TABLE>
</DIV></DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aside from the Guarantees in Sections&nbsp;1 through to 4, PMF and PFIZER do not give any
further express or implied guarantees.</TD>
</TR>

</TABLE>
</DIV>
</DIV>





<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="v52349v5234901.gif" alt="(CLIFFORD CHANCE LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">FINAL DRAFT<BR>
5 March&nbsp;2009</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">PFIZER MANUFACTURING FRANKFURT GMBH
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">PFIZER INC.

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">AND

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">MANNKIND CORPORATION

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INSULIN MAINTENANCE AND CALL-OPTION AGREEMENT</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&nbsp;2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>CONTENTS</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1. Definitions and Interpretation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2. Storage of Retained Insulin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3. Maintenance of DMF, Stability Program, Records</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4. Regulatory Issues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5. PMF&#146;s Option Right and Right of Disposal and Contractor Options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6. Certificates of Compliance and Analysis</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7. Term of the Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">8. Indemnification and Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">9. Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10. Confidentiality, Announcements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11. Assignment Restrictions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12. Costs and Transfer Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">13. Final Provisions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>INDEX OF ANNEXES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Annexes to Insulin Maintenance and Call-Option Agreement</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Annex 1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Storage Conditions</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Annex 2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stability Program</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Annex 3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Retained Insulin</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>THIS INSULIN MAINTENANCE AND CALL OPTION AGREEMENT </B>is made on &#091;<B>&#149;</B>&#093;&nbsp;2009
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>BETWEEN</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PFIZER INC.</B>, a Delaware corporation with principal executive offices at 235 East 42nd Street,
New York, New York 10017, USA (&#147;<B>PFIZER</B>&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Pfizer Manufacturing Frankfurt GmbH</B>, with statutory seat in Frankfurt am Main, Federal
Republic of Germany, registered in the commercial register at the local court of Frankfurt am
Main under HRB 81803 (together with PFIZER, &#147;<B>PMF</B>&#148;); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>MannKind Corporation, </B>a Delaware corporation with principal executive offices at 28903 North
Avenue Paine, Valencia, CA 91355, USA (the &#147;<B>CONTRACTOR</B>&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>WHEREAS</B>:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PFIZER, PMF and CONTRACTOR have entered into an Insulin Sale and Purchase Agreement (&#147;<B>Insulin
Agreement</B>&#148;) and other related agreements under which CONTRACTOR has purchased and been
transferred a certain portion of the Bulk Insulin Inventory, and acquired rights to use
certain related intellectual property rights from PFIZER and PMF.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A certain portion of the Bulk Insulin Inventory has not been purchased by and transferred to
CONTRACTOR pursuant to the Insulin Agreement, but has been retained by PMF (&#147;<B>Retained
Insulin</B>&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CONTRACTOR shall continue to store and maintain the Retained Insulin on behalf of PMF, and
shall perform certain services related to the storage and testing of the Retained Insulin, in
accordance with detailed standards and regulatory requirements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF is willing to grant CONTRACTOR an option to purchase the Retained Insulin, and to demand
transfer to CONTRACTOR of any remaining Retained Insulin upon termination of this Agreement at
no cost.</TD>
</TR>

</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->



<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOW, therefore, the Parties agree as follows:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DEFINITIONS AND INTERPRETATION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Capitalised terms and expressions used in this Agreement shall have the meaning ascribed to
them in the Insulin Sale Agreement unless defined otherwise in the following:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Agreement&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean this Insulin Maintenance and
Call-Option Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Bulk Insulin
Inventory&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean all of PMF&#146;s inventory of bulk insulin
manufactured by PMF and stored at PMF&#146;s site and
at PFIZER&#146;s site in Terre Haute/Vigo County as at
the Effective Date;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Business Days&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean any day other than a Saturday or
Sunday, on which the banks are open for regular
business in New York City, New York, United
States of America and Frankfurt am Main, Federal
Republic of Germany;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Certificate of
Compliance&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;6.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Claim&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;8.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;CONTRACTOR&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in the lead-in
to this Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Dispose&#148; </B>or
<B>&#147;Disposal&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means, when used with respect the Retained
Insulin, any disposal, donation, transfer, sale,
use or other disposition of any portion or all of
Retained Insulin, whether or not for value,
however occurring;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;DMF&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the drug master file for the Bulk
Insulin Inventory containing all chemistry,
manufacturing and controls data and, in cases
where required by specific regulatory agencies,
additional data on file with any regulatory
authority;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Effective Date&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the Closing Date as that term is used
in the Insulin Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;EMEA&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the European Medicines Agency;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;FDA&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the United States Food and Drug
Administration;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;cGMP&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean then-current good manufacturing
practices as defined by the FDA in 21 Code of
Federal Regulations part 211, and corresponding
regulations of the EMEA;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Insulin Agreement&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in the lead-in
to this Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">"<B>LIP Asset Sale
Closing</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in the HBR
Purchase Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">"<B>LIP Business Sale
Closing</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in the HBR
Purchase Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Party&#148; </B>or <B>&#147;Parties&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean PMF, PFIZER and the CONTRACTOR
collectively or individually;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;PMF&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in the lead-in
to this Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Product&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean an insulin product which incorporates
any of the Retained Insulin that is approved for
use by a competent regulatory authority, and is
marketed by any Party or any third party;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">"<B>HBR Purchase
Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean a separate agreement between the
CONTRACTOR and its affiliate, PMF and PFIZER
according to which certain other assets of PMF
and certain rights of PFIZER are sold by PMF and
PFIZER to the CONTRACTOR and its affiliate dated
&#091;<B>&#149;</B>&#093; (notarial deed number &#091;<B>&#149;</B>&#093;&nbsp;2009 of the notary
&#091;<B>&#149;</B>&#093;);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Retained Insulin&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean approximately &#091;...***...&#093; manufactured in
&#091;...***...&#093; and &#091;...***...&#093; manufactured in &#091;...***...&#093; of
the Bulk Insulin Inventory manufactured by PMF
identifiable by the batch numbers and production
years as set forth in Annex 3 and the Terre Haute
Insulin, if and to the extent that PFIZER
exercises its option under this Agreement to have
the Terre Haute Insulin transferred to the then
current storage location of the Retained Insulin;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Stability Program&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the relevant test methods and
procedures as set forth in Annex 2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Storage Conditions&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;2.2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Term&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall have the meaning set forth in Section&nbsp;7.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Terre Haute Insulin&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean approximately &#091;...***...&#093; of the bulk
insulin inventory manufactured by PMF and
currently stored at PFIZER&#146;s site in Terre
Haute/Vigo County;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;WHO&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shall mean the World Health Organization.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In this Agreement, unless the context otherwise requires:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>headings are for convenience only and do not affect the interpretation of
this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to any term in the singular shall, if the context so demands,
also include the plural and vice versa;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to USD or US Dollar are references to the lawful currency of the
United States of America;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>where a German term has been inserted in parenthesis and/or italics the
German term alone (and not the English term to which it relates) shall be
authoritative for the purpose of the interpretation of the relevant English term in
this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to any German legal term for any action, remedy, method of
judicial proceeding, legal document, legal status, court, official or any other legal
concept shall, in respect of any jurisdiction other than the Federal Republic of
Germany, be interpreted to include the legal concept which most closely corresponds in
that jurisdiction to the German legal term; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to any statute or statutory provision shall be construed as a
reference to the same as it has been in force as of the date hereof, unless indicated
otherwise.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Annexes of this Agreement form an integral part of this Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>STORAGE OF RETAINED INSULIN</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During the Term of this Agreement CONTRACTOR shall store or procure the storage of the
Retained Insulin to PMF. The CONTRACTOR must ensure that the Retained Insulin is stored
physically separated from the CONTRACTOR&#146;s bulk insulin inventory.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The specific conditions for storage and related instructions have been agreed on and are
described in Annex 1 (the &#147;<B>Storage Conditions</B>&#148;). CONTRACTOR shall adhere to the requirements
set forth in the Storage Conditions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CONTRACTOR shall obtain the prior written approval of PMF before making any modifications to
the Storage Conditions of the Retained Insulin, including any change which may affect the
quality or performance, or exceed validation parameters or impact the DMF.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CONTRACTOR shall refrain from any activity that could adversely affect the quality of the
Retained Insulin.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties acknowledge that arm&#146;s length consideration for services provided by the
CONTRACTOR to PMF under this Agreement have been duly considered in the calculation of the
Purchase Price (as defined under the Insulin Agreement) owed and paid by the CONTRACTOR to PMF
under the terms of the Insulin Agreement in consideration of the portion of the Bulk Insulin
Inventory acquired by the CONTRACTOR from PMF under the Insulin Agreement, and agree that no
additional service or other fees shall be owed by PMF to the CONTRACTOR under this Agreement,
unless expressly specified otherwise herein (including reimbursement of costs incurred by the
CONTRACTOR which under the terms of this Agreement are to be borne by PMF).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>MAINTENANCE OF DMF, STABILITY PROGRAM, RECORDS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>DMF Maintenance and Updates.</U> During the Term CONTRACTOR is obligated to regularly
update the DMF with respect to the state-of-the-art regulatory and scientific requirements and
(as far as applicable) to the actual synthesis/manufacturing processing in accordance with all
current applicable laws, guidelines and requests of the competent authorities and to submit
any addition, change, or deletion of information in the DMF in the required format and due
time intervals to the competent authority. Further, CONTRACTOR shall without undue delay
respond to all notifications and requests of the competent authorities and issue all necessary
declarations, in particular (without being limited to) to prevent that DMF becomes inactivated
by the competent authorities. In no event may CONTRACTOR, during the Term request that the DMF
be retired, closed, inactivated, or withdrawn.</TD>
</TR>

</TABLE>
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Stability Program</U>. During the Term of this Agreement CONTRACTOR shall adhere to the
established Stability Program for the Retained Insulin. The Parties shall use all reasonable
efforts to ensure that the Stability Program is, and remains throughout the Term, compliant
with the standards of the FDA, EMEA and WHO.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CONTRACTOR is responsible for monitoring and maintenance of the cGMP status for all relevant
activities relating to storage and testing of the Retained Insulin. CONTRACTOR is responsible
for qualification, calibration and validation of its facilities and equipment used in
connection with the Stability Program.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The CONTRACTOR shall incorporate modifications into the Stability Program as reasonably
requested by PMF.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent the results of any Stability Program test supports extension of the dating of
the Retained Insulin, CONTRACTOR shall update the DMF accordingly and in accordance with
Section&nbsp;3.1 above, or if PMF so requests, shall provide all reasonable assistance to allow PMF
to do so.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Records</U>. CONTRACTOR shall ensure that the results of any tests performed according
to the Stability Program are documented in appropriate stability records. The complete set of
stability records shall be kept by CONTRACTOR during the Term of this Agreement, and shall be
made available to PMF upon its reasonable request. After termination of this Agreement, such
stability records shall be transferred to PMF.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CONTRACTOR shall retain other storage and testing documents and data, including without
limitation cleaning records, balances and other calibration records, process control data and
any protocols and reports generated which are directly or indirectly connected to the storage
and testing of the Retained Insulin. CONTRACTOR shall make such other records available for
the inspection of PMF upon reasonable notice during the Term.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Electronic records must comply with cGMP requirements and be readily available for PMF&#146;s
inspection upon reasonable notice throughout the period of retention.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>REGULATORY ISSUES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Inspections</U>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CONTRACTOR will notify PMF of any inspection made or to be made by any competent authority
and/or any comments made by such authorities that may relate to the Retained Insulin. So far
as permitted by law, and at PMF&#146;s option,</TD>
</TR>

</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CONTRACTOR will procure the involvement of PMF in any such inspection, provided that
nothing in this Section&nbsp;4 shall relieve CONTRACTOR of any of its obligations under this
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CONTRACTOR shall ensure that PMF and any competent regulatory authority are permitted to
conduct all necessary inspections in connection with the Retained Insulin. CONTRACTOR will
respond promptly in taking appropriate corrective measures indicated in any audit report
issued by PMF and/or the competent authority following such an inspection.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Access to regulatory data. On request CONTRACTOR will make available to PMF any data and/or
information related to the Retained Insulin that PMF may need for conducting investigations,
compiling reports or regulatory purposes.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Complaints and Recalls</U>. Each Party agrees to cooperate with and provide reasonable
assistance to the other in responding to and handling external customer complaints and/or
product recalls relating to any Products. A Party&#146;s obligation to cooperate with and provide
reasonable assistance to the other includes any third party recipient or purchaser of Retained
Insulin according to Section&nbsp;5. In the event that the subject Product of the complaint and/or
recall is marketed by a Party to this Agreement, the marketing Party shall bear responsibility
for handling such complaint and/or recall, and shall bear all costs associated therewith.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PMF&#146;S TRANSFER OPTION RIGHT AND RIGHT OF DISPOSAL AND CONTRACTOR&#146;S OPTION RIGHTS AND PURCHASE
OBLIGATION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Transfer Option for Terre Haute Insulin</U>. PFIZER shall have the right at all times
during the Term to transfer and ship the Terre Haute Insulin at its own costs to the then
current CONTRACTOR&#146;s storage location of the Retained Insulin. Upon exercise of this option,
the Terre Haute Insulin shall be regarded as part of the Retained Insulin and, following
transfer and shipment of the Terre Haute Insulin to the then current CONTRACTOR&#146;s storage
location of the Retained Insulin, all rights and obligations of the Parties relating to the
Retained Insulin under this Agreement shall apply and PFIZER shall have the same rights and
obligations as PMF under this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Right of Disposal</U>. PMF and PFIZER, as the case may be, shall have the right at all
times during the Term to Dispose of any portion or all of the Retained Insulin and/or Terre
Haute Insulin at its sole discretion. The CONTRACTOR shall be responsible for shipment of all
such Retained Insulin at PMF&#146;s cost, and shall adhere to the shipping instructions provided by
PMF. On the second anniversary of this Agreement PFIZER shall inform the CONTRACTOR about its
long term plans to Dispose of any portion or all of the Retained Insulin.</TD>
</TR>

</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Purchase Option</U>. The CONTRACTOR shall have the option to purchase any portion
or all of the Retained Insulin and/or Terre Haute Insulin from PMF and PFIZER, as the case
may be, during the Term to the extent (i)&nbsp;PMF and PFIZER have not Disposed of the Retained
Insulin and/or the Terre Haute Insulin in accordance with Section&nbsp;5.2 or (ii)&nbsp;the Retained
Insulin or Terre Haute Insulin is subject to a projected demand <I>inter alia </I>under a donation
program.&nbsp; If the CONTRACTOR wishes to purchase any such Retained Insulin and/or Terre Haute
Insulin, then the purchase price shall be &#091;...***...&#093;.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Purchase Obligation</U>: In case of either the LIP Asset Sale Closing or the LIP Business
Sale Closing with Sanofi-Aventis as purchaser, the CONTRACTOR shall be obliged to offer to
purchase from PMF all remaining amounts of the Retained Insulin at a purchase price of
&#091;...***...&#093;, as long as there is sufficient remaining dating on the Retained Insulin to allow
commercial sale, prior to commencing commercial production in a new insulin plant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Transfer Option</U>. Upon termination of this Agreement, the CONTRACTOR shall have the
option to require PMF to transfer title and possession of any Retained Insulin and/or Terre
Haute Insulin to CONTRACTOR at no cost, to the extent not Disposed of by PMF pursuant to
Section&nbsp;5.2 or purchased by CONTRACTOR pursuant to Section&nbsp;5.3.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CERTIFICATES OF COMPLIANCE AND ANALYSIS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For all Retained Insulin that is Disposed of by PMF, the CONTRACTOR shall issue a certificate
of compliance stating that Disposed insulin complies with the requirements of this Agreement
(&#147;<B>Certificate of Compliance</B>&#148;). The CONTRACTOR shall supply the Certificate of Compliance with
each delivery of Disposed insulin to PMF or to PMF&#146;s designee.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Certificate of Compliance must indicate that the batch of Retained Insulin has been
stored and/or tested under GMP-compliant conditions according to the Storage Conditions and
Stability Program, that all appropriate documentation has been reviewed and approved and that
any deviations, to the extent any exist, have been reviewed and approved in accordance with an
established deviation procedure. The Certificate of Compliance must also indicate compliance
with any specific local regulatory requirements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>TERM OF THE AGREEMENT</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement shall become effective from the Effective Date and remain in force and
effect until the 10th anniversary of the last manufactured batch of the Retained Insulin
(the &#147;<B>Term</B>&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>***</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Confidential Treatment Requested</B></TD>
</TR>

</TABLE>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INDEMNIFICATION AND INSURANCE</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The CONTRACTOR shall indemnify and hold PMF free and harmless from and against any claims,
demands, judgments, losses, damages, costs, or expenses (including reasonable attorney&#146;s fees
and court costs) (&#147;<B>Claim</B>&#148;) relating to the use or marketing of any Products arising from or
based upon the wilful misconduct or grossly negligent or fraudulent acts or omissions of
CONTRACTOR or its employees or agents, in connection with its obligations under this
Agreement, provided that the CONTRACTOR shall not be liable under this indemnity to the extent
that any such Claims arise as a result of any wilful misconduct or grossly negligent or
fraudulent acts or omissions of PMF or its employees or agents.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF shall indemnify and hold the CONTRACTOR free and harmless from and against any claims,
demands, judgments, losses, damages, costs, or expenses (including reasonable attorney&#146;s fees
and court costs) (&#147;<B>Claim</B>&#148;) relating to the use or marketing of any Products arising from or
based upon the wilful misconduct or grossly negligent or fraudulent acts or omissions of PMF
or its employees or agents, in connection with its obligations under this Agreement, provided
that PMF shall not be liable under this indemnity to the extent that any such Claims arise as
a result of any wilful misconduct or grossly negligent or fraudulent acts or omissions of the
CONTRACTOR or its employees or agents.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Section&nbsp;11 (&#147;Conduct of Claims&#148;) of the Insulin Agreement shall govern the procedure for the
treatment of any Claim that arises pursuant to Section&nbsp;8.1 or Section&nbsp;8.2 above. The
definitions in this Agreement shall take precedence over the definitions in the Insulin
Agreement in the interpretation of Section&nbsp;11 (&#147;Conduct of Claims&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Party, at its expense, shall obtain, maintain and provide evidence to the other Party
that it has obtained and maintains adequate insurance cover to cover the Claims arising under
this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>NOTICES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless provided otherwise in this Agreement, all declarations of the Parties under this
Agreement which require receipt by the respective other Parties must be made by registered
mail with return receipt (<I>Einschreiben mit R&#252;ckschein</I>). The declarations shall at the same
time be sent by telefax.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PMF and PFIZER appoint</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">Mr Inderpal Singh<BR>
Pfizer Inc.<BR>
NYO 235-25-03<BR>
235 East 42<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> Street
</DIV>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">New York NY 10017<BR>
USA<BR>
Fax-No.: &#043;1 (646)&nbsp;328 3113
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">copy to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">Mr Lars Benger<BR>
Mr Christoph Holstein<BR>
Clifford Chance<BR>
K&#246;nigsallee 59<BR>
40215 D&#252;sseldorf<BR>
Germany<BR>
Fax-No.: &#043;49 (211)&nbsp;4355 5600
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>as (joint)&nbsp;authorized agent for the receipt of all declarations that require receipt by PMF
and/or PFIZER.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The CONTRACTOR appoints</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">David Thomson<BR>
28903 North Ave. Paine<BR>
Valencia, California, 91355<BR>
USA<BR>
Fax: &#043;1 661 775 2086
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">copy to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">Dr.&nbsp;Benno Schwarz<BR>
Gibson, Dunn &#038; Crutcher LLP<BR>
Widenmayerstra&#223;e 10<BR>
80538 M&#252;nchen<BR>
Germany<BR>
Fax-No.:&#043;49 (89)&nbsp;189 33 310
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>as authorized agent for the receipt of all declarations that require receipt by the
CONTRACTOR.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Party may at any time appoint one or more other authorized agents for the receipt of all
declarations that require receipt by the respective other Parties by notice in accordance with
this Article&nbsp;9. However, for each Party at least one authorized agent for the receipt of all
declarations that require receipt by the respective other Parties must be appointed.</TD>
</TR>

</TABLE>
</DIV>

</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONFIDENTIALITY, ANNOUNCEMENTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any information or documents relating to a Party or their respective businesses and made
available to another Party in connection with this Agreement shall not be disclosed to third
parties or published unless required by applicable law, rules or regulations. However, this
obligation shall not apply to information that is proven (i)&nbsp;to have been (or have become)
generally available (public domain) without breach of any obligation of any of the Parties,
(ii)&nbsp;to have been known to the disclosing Party prior to the disclosure, (iii)&nbsp;to have been
independently developed by the disclosing Party, or (iv)&nbsp;to have been received by the
disclosing Party from a third party without any violation of any obligation of such third
party owed to the disclosing Party.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Party shall, without the prior written consent of the other Parties, disclose the content
of this Agreement to third parties or make any information relating thereto available to third
parties. This shall not, however, apply to the extent a Party or an affiliate of a Party is
obliged to make any announcement or disclosure under applicable law or regulation. The right
of the Parties to disclose matters to advisers who are bound by law to professional secrecy
shall remain unaffected.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless otherwise provided for in this Agreement, no Party shall make any public announcement
regarding the entering into of this Agreement without the prior written consent of the other
Parties, unless (i)&nbsp;in a reasonable judgment of a Party, required by, or appropriate under
applicable law or regulation, or (ii)&nbsp;except as required to perform this Agreement. Reasonably
prior to any permitted announcement the Party wishing to make the announcement shall, to the
extent possible without violation of legal restrictions, notify the other Parties thereof,
provide to the other Parties the proposed wording of the announcement, consult with the other
Parties and take any requests of the other Parties into due consideration.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ASSIGNMENT RESTRICTIONS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement and any rights and obligations hereunder may not be assigned or transferred
by CONTRACTOR, in whole or in part, without the prior written consent of PMF.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>COSTS AND TRANSFER TAXES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All expenses, costs, fees and charges in connection with the storage of the Retained
Insulin, the conduction of the Stability Program, and the regulatory issues described in
Section&nbsp;4 of this Agreement to be complied with by CONTRACTOR and all other expenses,
costs, fees and charges transactions contemplated under this Agreement including without
limitation, legal services, shall be borne</TD>
</TR>

</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the CONTRACTOR, unless expressly provided otherwise in this Agreement. All costs that
result from the signing of this Agreement and the consummation of the transactions
contemplated in this Agreement, including any possible applicable transfer taxes shall be
borne by the CONTRACTOR. The costs arising in connection with the notification of the
transaction to the competent authorities, if any, including the costs charged by the
competent authorities, shall be borne by the CONTRACTOR.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>FINAL PROVISIONS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any amendments to this Agreement shall be in writing, signed by each of the Parties to be
valid and require the explicit reference to this Agreement but need to be notarized if this is
required by mandatory law. This is also applicable for an amendment of this Section&nbsp;13.1.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any provision of this Agreement or any provision to be incorporated into this Agreement is
or becomes invalid or impracticable or should a necessary provision not be contained in this
Agreement, the validity of this Agreement and the remaining provisions of this Agreement shall
remain unaffected. Instead of the invalid or impracticable provision or to bridge the gap, a
valid provision is applicable which to the fullest extent possible corresponds to what the
parties would have wanted or according to the sense and object of this Agreement would have
agreed if they had known the invalidity or impracticability or had realized the gap.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement shall be exclusively governed by and construed in accordance with the law of
the Federal Republic of Germany applicable to parties residing within the Federal Republic of
Germany (without regard to the conflicts of law provisions of the law of the Federal Republic
of Germany).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All disputes, controversies or claims arising from or in connection with this Agreement
(including questions concerning its validity) shall be finally and exclusively settled under
the Rules of Arbitration of the International Chamber of Commerce without recourse to the
ordinary courts of law. The arbitration tribunal shall consist of 3 (three)&nbsp;arbitrators. The
arbitration shall take place in D&#252;sseldorf. The arbitration shall be conducted in English but
written evidence (<I>Beweismittel</I>) may also be submitted in German. In the event that applicable
mandatory law requires any matter arising out of or connection with this Agreement and its
implementation to be decided by an ordinary court of law, the competent courts in D&#252;sseldorf &#151;
to the extent legally possible &#151; shall have the exclusive jurisdiction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notwithstanding other agreements referred to herein including the Insulin Agreement, this
Agreement comprises the entire agreement between the Parties</TD>
</TR>

</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DRAFT &#151; FOR DISCUSSION PURPOSES ONLY
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>concerning the subject matter hereof and supersedes and replaces all prior negotiations,
agreements and undertakings of the parties whether oral or written, with respect to the
subject matter hereof. Oral or written side agreements to this Agreement do not exist.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Party shall from time to time execute and deliver all such further documents and
agreements and take all such further actions as the other Parties may reasonably require and
which are not inconsistent with any other provisions of this Agreement in order to effectively
consummate this Agreement as provided herein.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement shall not grant any rights to, and is not intended to operate for, the benefit
of third parties unless otherwise explicitly provided for herein.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as expressly provided otherwise in this Agreement, no Party shall be entitled (i)&nbsp;to
set-off (<I>aufrechnen</I>) any rights and claims it may have against any rights or claims any other
Parties may have under this Agreement, or (ii)&nbsp;to refuse to perform any obligation it may have
under this Agreement on the grounds of a right of retention (<I>Zur&#252;ckbehaltungsrecht</I>) unless the
rights or claims of the relevant Party claiming a right of set-off (<I>Aufrechnung</I>) or retention
(<I>Zur&#252;ckbehaltung</I>) have been acknowledged (<I>anerkannt</I>) in writing by the relevant other
Party/Parties or have been confirmed by final decision of a competent court (<I>Gericht</I>) or
arbitration court (<I>Schiedsgericht</I>).</TD>
</TR>

</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXECUTION VERSION
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Annex 9</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Purchaser&#146;s Guarantees</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>AUTHORIZATION OF THE PURCHASER</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date the execution and performance by the Purchaser of
the Agreement are within the Purchaser&#146;s corporate powers, do not violate the articles of
association of the Purchaser and will be, prior to the Closing Date, duly authorized by all
necessary corporate action on the part of the Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, assuming compliance with any applicable
requirements under merger control laws, the execution and performance of the Agreement by the
Purchaser requires no approval or consent by any governmental authority and does not violate
any applicable law or decision by any court or governmental authority binding on the
Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, there is no lawsuit, investigation or proceeding
pending or, to the Purchaser&#146;s best knowledge, threatened in writing against the Purchaser
before any court, arbitrator or governmental authority which in any manner challenges or seeks
to prevent, alter or materially delay the transactions contemplated by the Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>LEGAL ORGANIZATION OF THE PURCHASER</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, the Purchaser has been duly established under the
laws of the state of Delaware and the Purchaser validly exists under the laws of the state of
Delaware.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On the date hereof and on the Closing Date, no bankruptcy or insolvency proceedings are
pending with respect to the Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither the Seller nor a company of the Sellers&#146; Group has or shall have any liability or
otherwise suffer or incur any loss, cost or damage as a result of or in connection with any
brokerage or finder&#146;s fee or other commission of any person retained by the Purchaser or any
of its affiliates in connection with any of the transactions contemplated in the Agreement.</TD>
</TR>

</TABLE>
</DIV>


<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>4
<FILENAME>v52349exv31w1.htm
<DESCRIPTION>EX-31.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv31w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT 31.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">CERTIFICATION OF CHIEF EXECUTIVE OFFICER<BR>
PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">I, Alfred E. Mann, certify that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">1. I have reviewed this quarterly report on Form 10-Q for the three months ended March&nbsp;31, 2009 of
MannKind Corporation;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to the period covered by this
report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3. Based on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the periods presented in this
report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">4. The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange Act Rules&nbsp;13a-15(f) and
15d-15(f)) for the registrant and have:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating to
the registrant is made known to us by others within those entities, particularly during the
period in which this report is being prepared;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant&#146;s internal control over financial
reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s
fourth fiscal quarter in the case of an annual report) that has materially affected, or is
reasonably likely to materially affect, the registrant&#146;s internal control over financial
reporting; and
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">5. The registrant&#146;s other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit
committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect the
registrant&#146;s ability to record, process, summarize and report financial information; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have
a significant role in the registrant&#146;s internal control over financial reporting.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: May 4, 2009&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Alfred E. Mann
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Alfred E. Mann&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chief Executive Officer<br>
(Principal Executive Officer)&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>5
<FILENAME>v52349exv31w2.htm
<DESCRIPTION>EX-31.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv31w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT 31.2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">CERTIFICATION OF CHIEF FINANCIAL OFFICER<BR>
PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">I, Matthew J. Pfeffer, certify that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">1. I have reviewed this quarterly report on Form 10-Q for the three months ended March&nbsp;31, 2009 of
MannKind Corporation;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to the period covered by this
report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3. Based on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the periods presented in this
report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">4. The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange Act Rules&nbsp;13a-15(f) and
15d-15(f)) for the registrant and have:
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating to
the registrant, is made known to us by others within those entities, particularly during the
period in which this report is being prepared;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant&#146;s internal control over financial
reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s
fourth fiscal quarter in the case of an annual report) that has materially affected, or is
reasonably likely to materially affect, the registrant&#146;s internal control over financial
reporting; and
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">5. The registrant&#146;s other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit
committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect the
registrant&#146;s ability to record, process, summarize and report financial information; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have
a significant role in the registrant&#146;s internal control over financial reporting.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: May 4, 2009&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Matthew J. Pfeffer
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Matthew J. Pfeffer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chief Financial Officer<br>
(Principal Financial Officer)&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>6
<FILENAME>v52349exv32.htm
<DESCRIPTION>EX-32
<TEXT>
<HTML>
<HEAD>
<TITLE>exv32</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT 32
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">CERTIFICATION OF<BR>
CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER<BR>
PURSUANT TO<BR>
RULE 13a-14(b) OR 15d-14(b) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED AND SECTION 1350 OF<BR>
CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE (18 U.S.C. &#167; 1350)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">In connection with the filing of the quarterly report of MannKind Corporation (the &#147;Company&#148;) on
Form 10-Q for the quarterly period ended March&nbsp;31, 2009, as filed with the Securities and Exchange
Commission on or about the date hereof to which this certification is attached as Exhibit&nbsp;32 (the
&#147;Report&#148;) and pursuant to the requirement set forth in Rule&nbsp;13a-14(b) of the Securities Exchange
Act of 1934, as amended (the &#147;Exchange Act&#148;), and Section&nbsp;1350 of Chapter&nbsp;63 of Title 18 of the
United States Code (18 U.S.C. &#167;1350), Alfred E. Mann, Chief Executive Officer of MannKind
Corporation (the &#147;Company&#148;), and Matthew J. Pfeffer, Chief Financial Officer of the Company, each
hereby certifies that to the best of his knowledge:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the
Exchange Act; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date: May&nbsp;4, 2009
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In witness whereof, the undersigned have set their hands hereto as of the 4th day of May,
2009.
</DIV>
<P><DIV style="position: relative; float: left; width: 48%">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>

    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">              /s/ Alfred E. Mann
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>

    <TD colspan="3" align="left">Alfred E. Mann&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>

    <TD colspan="3" align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
</DIV>
<DIV style="position: relative; float: right; width: 48%">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left"> /s/ Matthew J. Pfeffer
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">Matthew J. Pfeffer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
</DIV>
<BR clear="all"><BR>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">This certification is being furnished solely to accompany this quarterly report on Form 10-Q
pursuant to 18 U.S.C. Section&nbsp;1350, and shall not be deemed filed for purposes of Section&nbsp;18 of the
Securities Exchange Act of 1934, as amended or the Securities Act of 1933, as amended, into any
filing of the Company, whether made before or after the date hereof, regardless of any general
incorporation language contained in such filing.
</DIV>














<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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<SEQUENCE>7
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