<SEC-DOCUMENT>0001193125-12-315445.txt : 20120726
<SEC-HEADER>0001193125-12-315445.hdr.sgml : 20120726
<ACCEPTANCE-DATETIME>20120726060507
ACCESSION NUMBER:		0001193125-12-315445
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20120723
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20120726
DATE AS OF CHANGE:		20120726

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MANNKIND CORP
		CENTRAL INDEX KEY:			0000899460
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				133607736
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-50865
		FILM NUMBER:		12985794

	BUSINESS ADDRESS:	
		STREET 1:		28903 NORTH AVE PAINE
		CITY:			VALENCIA
		STATE:			CA
		ZIP:			91355
		BUSINESS PHONE:		6617755300

	MAIL ADDRESS:	
		STREET 1:		28903 NORTH AVE PAINE
		CITY:			VALENCIA
		STATE:			CA
		ZIP:			91355
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d385520d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<TITLE>Form 8-K</TITLE>
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 <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P>
<P STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P STYLE="margin-top:4px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>UNITED STATES </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="3"><B>WASHINGTON, D.C. 20549 </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center>
<P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>FORM 8-K
</B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="4"><B>CURRENT REPORT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="3"><B>Pursuant to Section&nbsp;13 or 15(d) of the </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="3"><B>Securities Exchange Act of
1934 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="3"><B>Date of Report (Date of earliest event reported): July 23, 2012 </B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="6"><B>MannKind Corporation </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>(Exact name of registrant as specified in its charter) </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center>
<P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Delaware</B></FONT></TD>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>000-50865</B></FONT></TD>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>13-3607736</B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(State or other jurisdiction</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>of incorporation or organization)</B></FONT></P></TD>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Commission</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>File Number)</B></FONT></P></TD>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(IRS Employer</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>Identification No.)</B></FONT></P></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>28903 North Avenue Paine</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Valencia, California</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>91355</B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Address of principal executive offices)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Zip Code)</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Registrant&#146;s telephone number, including area code: (661)&nbsp;775-5300 </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>N/A </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Former name or former address, if changed since last report.) </B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425) </FONT></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR></TABLE>
<P STYLE="font-size:8px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P>
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Item&nbsp;8.01 Other Events. </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">On July&nbsp;23, 2012, we entered into a stipulation of settlement that will resolve the class action securities lawsuits consolidated under the caption <I>In re MannKind Corp. Securities Litigation</I>,
Master File No.&nbsp;11-cv-00929-GAF (SSx), pending in the U.S. District Court for the Central District of California. The current and former officers and directors named as individual defendants in the consolidated lawsuits have also entered into
the stipulation of settlement. By entering into the stipulation of settlement, defendants do not in any way admit fault or liability, and continue to deny all allegations of wrongdoing arising out of the action. The stipulation of settlement, a copy
of which is filed as Exhibit 99.1 hereto, remains subject to preliminary and final approval by the U.S. District Court. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Subject to preliminary and final approval of the settlement by the U.S. District Court, and in exchange for a release of all claims by
the class members, among others, and a dismissal of the consolidated lawsuits, we have agreed (i)&nbsp;to cause our insurers to pay class members and their attorneys a total of $16 million; and (ii)&nbsp;to issue to class members and their attorneys
2,777,778 shares of our common stock. We have also agreed that if the consolidated closing bid price for our common stock is below $1.00 per share on the date the U.S. District Court enters an order of final judgment, then we will issue class
members and their attorneys an additional one million shares of our common stock. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">If the U.S. District Court preliminarily
approves the settlement, potential class members will be notified of the proposed settlement and the procedure by which they can object to the settlement or request to be excluded from the class. The settlement will then be subject to final approval
by the U.S. District Court. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Following final approval of the settlement by the U.S. District Court, including a finding that
the exchange of the class members&#146; claims for the shares of our common stock is fair, the shares will be issued pursuant to the exemption from registration provided by Section&nbsp;3(a)(10) of the Securities Act of 1933, as amended. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Item&nbsp;9.01 Financial Statements and Exhibits. </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">(d) Exhibits. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1px solid #000000;width:37pt" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1">Exhibit&nbsp;No.</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:37pt"><FONT STYLE="font-family:Times New Roman" SIZE="1">Description</FONT></P></TD></TR>


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<TD VALIGN="top" NOWRAP ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">99.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Stipulation of Settlement.</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Forward-Looking Statements </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><I>This report contains forward-looking statements, including statements regarding our expectations with respect to the stipulation of settlement and related matters, that involve risks and uncertainties.
These forward-looking statements are based upon our current expectations. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which
include, without limitation, risks associated with approval of the Settlement Agreement by the U.S. District Court and other risks detailed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the
year ended December&nbsp;31, 2011 and our quarterly report on Form 10-Q for the quarter ended March&nbsp;31, 2012. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. All
forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this report.
</I></FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>SIGNATURE </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P>

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<TD VALIGN="top" COLSPAN="5"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>MANNKIND CORPORATION</B></FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ David Thomson</FONT></P></TD></TR>
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<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">David Thomson, Ph.D.,&nbsp;J.D.</FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Corporate Vice President, General</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Counsel&nbsp;and Secretary</FONT></P></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dated: July 25, 2012 </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>EXHIBIT INDEX </B></FONT></P>
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<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:37pt"><FONT STYLE="font-family:Times New Roman" SIZE="1">Description</FONT></P></TD></TR>


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<TD VALIGN="top" NOWRAP ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">99.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Stipulation of Settlement.</FONT></TD></TR>
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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>d385520dex991.htm
<DESCRIPTION>STIPULATION OF SETTLEMENT
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Exhibit 99.1 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2">UNITED STATES DISTRICT COURT </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">CENTRAL DISTRICT OF CALIFORNIA </FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">In re MANNKIND CORP.</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:1px"><FONT STYLE="font-family:Times New Roman" SIZE="2">SECURITIES LITIGATION</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Case No. 11-cv-00929-GAF (SSx)</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<P STYLE="margin-top:0px;margin-bottom:1px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></P></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">This Document Relates To:</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2">ALL ACTIONS</FONT></P></TD>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">This Stipulation of Settlement is entered into by and between (i)&nbsp;Ki Yong Choi on
behalf of himself and all other members of the Settlement Class (collectively, &#147;Plaintiffs&#148;), (ii)&nbsp;MannKind, and (iii)&nbsp;Alfred E. Mann, Hakan S. Edstrom, Matthew J. Pfeffer, and Peter C. Richardson (collectively, &#147;Settling
Individual Defendants&#148;) ((ii) and (iii)&nbsp;are collectively the &#147;Defendants&#148;), each by and through his or its undersigned attorneys. This Stipulation is intended by the Parties hereto to fully, finally and forever resolve,
discharge, release and settle the Released Claims and the Released Defendants&#146; Claims upon and subject to the terms and conditions hereof. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>RECITALS</U> </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, the following cases were commenced in the United
States District Court for the Central District of California, on or after January&nbsp;31, 2011: </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="bottom"> <P STYLE="border-bottom:1px solid #000000;width:78pt"><FONT STYLE="font-family:Times New Roman" SIZE="1">Abbreviated Case Name</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"> <P STYLE="border-bottom:1px solid #000000;width:43pt" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1">Case Number</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"> <P STYLE="border-bottom:1px solid #000000;width:33pt" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1">Date&nbsp;Filed</FONT></P></TD></TR>


<TR>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-left:1.00em; text-indent:-1.00em" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">1.</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Mui v. MannKind Corp.</I></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">11-cv-00929-GAF (SSx)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">01/31/11</FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-left:1.00em; text-indent:-1.00em" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2.</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Alessi v. MannKind Corp.</I></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">11-cv-001147-PA (Ex)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">02/07/11</FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-left:1.00em; text-indent:-1.00em" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3.</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Ftaiha v. MannKind Corp.</I></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">11-cv-01449-JSL (AGRx)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">02/16/11</FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-left:1.00em; text-indent:-1.00em" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4.</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Zelenak v. MannKind Corp.</I></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">11-cv-01661-ODW (PLAx)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">02/24/11</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, by an Order dated March&nbsp;1, 2011, the above-captioned cases were consolidated for all
purposes under the caption <I>In re MannKind Corp. Securities Litigation,</I> Master File No: 11-cv-00929-GAF (SSx) (Dkt. No.&nbsp;7); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, by an Order dated April&nbsp;27, 2011, the Court appointed Ki Yong Choi as Lead Plaintiff and appointed the law firms of Pomerantz Haudek Grossman&nbsp;&amp; Gross LLP and Glancy
Binkow&nbsp;&amp; Goldberg LLP as Co-Lead Counsel (Dkt. No.&nbsp;44); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, on June&nbsp;28, 2011, Lead Plaintiff filed
his Corrected Consolidated Class Action Complaint (the &#147;Complaint&#148;) (Dkt. No.&nbsp;56); </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">1.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, by an Order dated December&nbsp;16, 2011, the Court denied Defendants&#146; Motion
to Dismiss the Complaint (Dkt. No.&nbsp;74); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, by an Order dated March&nbsp;2, 2012, the Court denied Defendants&#146;
Motion to Certify for Interlocutory Appeal or, in the Alternative, for Reconsideration of the Court&#146;s December&nbsp;16, 2011 order (Dkt. No.&nbsp;87); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, the Parties engaged in written and oral discovery and began to prepare for the filing of Lead Plaintiff&#146;s motion for class certification; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, following arm&#146;s-length negotiations with the assistance of the Hon. Layn R. Phillips (Ret.), Lead Plaintiff and Defendants
have agreed to a settlement of the Action (the &#147;Settlement&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, Co-Lead Counsel, on behalf of Lead
Plaintiff, have conducted an investigation relating to the claims and the underlying events and transactions alleged in the Complaint and anticipate conducting certain due diligence as provided for herein; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, Co-Lead Counsel and Lead Plaintiff recognize the expense, risks, and uncertain outcome of any litigation and subsequent appeals,
especially for a complex action such as this with its inherent difficulties and delays. Lead Plaintiff, on behalf of himself and all other members of the Settlement Class desires to settle Plaintiffs&#146; claims against Defendants in this Action on
the terms and conditions set forth in this Stipulation. Furthermore, Lead Plaintiff and Co-Lead Counsel: deem said Settlement to be fair, reasonable, adequate and in the best interests of the members of the Settlement Class; do not, by entering into
this Stipulation and all related documents, admit or concede any infirmity in the claims Lead Plaintiff has asserted (nor can these documents by used as evidence of such); have agreed that the Released Defendants&#146; Parties should be released
from the Released Claims pursuant to the terms and provisions of this Stipulation; and have agreed to the dismissal of the Action with prejudice, after considering the </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
substantial benefits that Lead Plaintiff and all members of the Settlement Class will receive from the Settlement of the Action; and </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, Defendants, while continuing to deny all allegations of wrongdoing or liability whatsoever arising out of any of the conduct,
statements, acts or omissions alleged, or that could have been alleged, in the Action, also recognize the expense, risks and uncertain outcome of any litigation, especially a complex action such as this, and Defendants desire to settle the claims
against them so as to avoid lengthy, distracting and time-consuming litigation and the burden, inconvenience and expense connected therewith, without in any way acknowledging any fault or liability, such that this Stipulation and all related
documents are not, and shall not in any event be construed or deemed to be evidence of an admission or concession on the part of Defendants with respect to any claim of any fault or liability or wrongdoing or damage whatsoever, or any infirmity in
the defenses that Defendants have asserted. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, in exchange for a dismissal of the Action with prejudice, pursuant to
the terms agreed upon herein, Defendants have agreed to a complete release of the Released Plaintiffs&#146; Parties from any and all Released Defendants&#146; Claims, as defined herein. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">NOW, THEREFORE, IT IS HEREBY STIPULATED, CONSENTED TO AND AGREED, between Lead Plaintiff and Defendants, by and through their respective
attorneys or counsel of record, that the Action, the Released Claims as against the Released Defendants&#146; Parties, and the Released Defendants&#146; Claims as against the Released Plaintiffs&#146; Parties, shall be settled, compromised, and
dismissed with prejudice, subject to the approval of the Court, in the manner and upon the terms and conditions hereafter set forth: </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>I.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>CERTAIN DEFINITIONS</U></B> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">To the extent
not otherwise defined herein, as used in this Stipulation, the following terms have the meanings specified below: </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>A.</B> &#147;Action&#148; means the consolidated securities class action pending in this
Court under the caption <I>In re MannKind Corp. Securities Litigation</I>, Master File 11-cv-00929-GAF (SSx), including, without limitation, all cases consolidated under that caption. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> &#147;Authorized Claimant&#148; means a member of the Settlement Class who submits a timely and valid Proof of Claim and
Release form to the Settlement Administrator and whose proof of claim is not rejected. Only those members of the Settlement Class filing valid and timely Proofs of Claim and Releases shall be entitled to receive any distributions from the Net
Settlement Fund. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>C.</B> &#147;Co-Lead Counsel&#148; means the law firms of Pomerantz Haudek Grossman&nbsp;&amp; Gross LLP
and Glancy Binkow&nbsp;&amp; Goldberg LLP. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>D.</B> &#147;Court&#148; means the United States District Court for the Central
District of California. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>E.</B> &#147;Defendants&#148; means MannKind Corp., Alfred E. Mann, Hakan S. Edstrom, Matthew J.
Pfeffer, and Peter C. Richardson. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>F.</B> &#147;Effective Date&#148; means the date on which all of the conditions to the
Settlement, set forth in Section XI.A, are satisfied. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>G.</B> &#147;Escrow Account&#148; means the interest-bearing account
created pursuant to Section II. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>H.</B> &#147;Escrow Agent&#148; means a federally chartered bank designated by Co-Lead
Counsel. The Escrow Agent shall perform the duties as set forth in this Stipulation. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>I.</B> &#147;Execution Date&#148;
means the last date upon which this Stipulation has been signed by all the signatories hereto through their counsel. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>J.</B> &#147;Final&#148; means, with respect to any judgment or order, including but not limited to the Final Judgment, that such
judgment or order represents a final and binding determination of all issues within its scope and is not subject to further review on appeal or otherwise. Without limitation, a judgment or order becomes
</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4.</FONT></TD>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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&#147;Final&#148; when: (a)&nbsp;the time within which to seek review, alteration, amendment or appeal of such judgment or order, including (if applicable) any three-day period for service by
mail under Federal Rule of Civil Procedure 6(a) and (e)&nbsp;or any such service period applicable to an action in state court, has expired without any review, alteration, amendment or appeal having been sought or taken; or (b)&nbsp;if an appeal,
petition for writ of certiorari, motion or other application for review, alteration or amendment is filed, sought or taken, the date as of which such appeal, petition, motion or other application shall have been finally determined in such a manner
as to affirm the Court&#146;s original order in its entirety and the time, if any, for seeking further review has expired. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>K.</B> &#147;Final Settlement Approval Hearing&#148; means the final hearing to be held by the Court to determine whether the proposed
Settlement should be approved as fair, reasonable and adequate; whether an order approving the Settlement should be entered thereon; whether the Plan of Allocation of the Settlement Fund should be approved; and whether and in what amounts to award
attorneys&#146; fees and expenses to Co-Lead Counsel and reimbursement to Lead Plaintiff. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>L.</B> &#147;Gross Settlement
Fund&#148; means the Settlement Amount plus all interest earned thereon. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>M.</B> &#147;Judgment&#148; or &#147;Final
Judgment&#148; means the judgment to be entered by the Court, substantially in the form of Exhibit E hereto. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>N.</B>
&#147;Lead Plaintiff&#148; means Ki Yong Choi. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>O.</B> &#147;MannKind&#148; means MannKind Corp., a Delaware corporation.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>P.</B> &#147;Net Settlement Fund&#148; means the Gross Settlement Fund, less: (i)&nbsp;attorneys&#146; fees and expenses;
(ii)&nbsp;taxes and tax expenses; (iii)&nbsp;Notice and Administration Expenses; and (iv)&nbsp;a reimbursement award to Lead Plaintiff, if any. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Q.</B> &#147;Notice and Administration Account&#148; means the interest-bearing account to be established and maintained by the Settlement Administrator from the
</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">5.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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Gross Settlement Fund. The Notice and Administration Account may be drawn upon by the Settlement Administrator for Notice and Administration Expenses without prior approval of the Court.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>R.</B> &#147;Notice and Administration Expenses&#148; means all expenses incurred (whether or not paid) in connection with
the Settlement administration, and shall include, among other things, the cost of publishing Summary Notice (as defined in Section V.A, below) on a national business internet wireservice; printing and mailing the Mailed Notice (as defined in Section
V.A, below), as directed by the Court; and the cost of processing proofs of claim and distributing the Net Settlement Fund to Settlement Class Members who timely submit a valid Proof of Claim and Release. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S.</B> &#147;Opt-Out Threshold&#148; has the meaning set forth in Section XI.G hereof and in the Supplemental Agreement. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>T.</B> &#147;Parties&#148; means Plaintiffs and Defendants. The &#147;Parties hereto&#148; means all those Persons whose counsel have
signed this Stipulation on their behalf. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>U.</B> &#147;Person&#148; means any individual, corporation, partnership (whether
general or limited), limited liability company, association, affiliate, joint stock company, trust, estate, unincorporated association, government and any political subdivision thereof, and any other type of legal or political entity. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>V.</B> &#147;Plan of Allocation&#148; means the plan or formula of allocation of the Net Settlement Fund, to be approved by the Court,
which plan or formula shall govern the distribution of the Net Settlement Fund to Authorized Claimants. The Plan of Allocation is not a part of this Stipulation, the Defendants shall not have any responsibility or liability with respect thereto, and
any order or proceedings relating to the Plan of Allocation shall not operate to terminate or cancel this Stipulation or affect the finality of the Final Judgment or any other orders entered by the Court pursuant to this Stipulation. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>W.</B> &#147;Released Claims&#148; shall mean any and all actions, suits, claims, debts,
</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">6.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
demands, rights, causes of action, proofs of claim or liabilities of every nature and description whatsoever (including, but not limited to, claims for damages, interest, attorneys&#146; fees,
expert or consulting fees, and any other costs, expenses, or liability whatsoever), whether based in law or equity, whether fixed or contingent, accrued or unaccrued, liquidated or unliquidated, matured or not matured, pursuant to federal, state,
local, statutory or common law, or any other law, rule or regulation, whether foreign or domestic, including both known claims and Unknown Claims (as defined herein), whether or not concealed or hidden (including but not limited to claims for
securities fraud, negligence, gross negligence, professional negligence, breach of duty of care and/or breach of duty of loyalty, fraud, breach of fiduciary duty, aiding or abetting a breach of fiduciary duty, breach of contract, unjust enrichment,
corporate waste, or violations of any statutes, rules, duties or regulations), that have been or could have been or could in the future be asserted in any forum, whether foreign or domestic, by Lead Plaintiff, any member of the Settlement Class, or
their successors, assigns, executors, administrators, representatives, attorneys, agents, affiliates, and partners, and any Persons they represent or any of them, whether brought directly or indirectly against any of the Released Defendants&#146;
Parties, which arise out of, are based on, or relate in any way, directly or indirectly, to any of the allegations, acts, transactions, facts, events, matters, occurrences, representations or omissions involved, set forth, alleged or referred to, in
the Action, or which could have been alleged in the Action based upon the facts alleged in the Complaint or any of the individual complaints filed in the Action, and which arise out of, are based upon, or relate in any way, directly or indirectly,
to the purchase or sale of any MannKind common stock by any Settlement Class Member during the Settlement Class Period, except claims to enforce the Settlement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>X.</B> &#147;Released Defendants&#146; Claims&#148; shall mean any and all actions, suits, claims, debts, demands, rights, causes of action, proofs of claim or liabilities of
</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">7.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
every nature and description whatsoever (including, but not limited to, claims for damages, interest, attorneys&#146; fees, expert or consulting fees, and any other costs, expenses, or liability
whatsoever), whether based in law or equity, whether fixed or contingent, accrued or unaccrued, liquidated or unliquidated, matured or not matured, pursuant to federal, state, local, statutory or common law, or any other law, rule or regulation,
whether foreign or domestic, including both known claims and Unknown Claims (as defined herein), whether or not concealed or hidden, that have been or could have been or could in the future be asserted in any forum, whether foreign or domestic, by
any of the Defendants, or their successors, assigns, executors, administrators, representatives, attorneys, agents, affiliates, and partners, and any Persons they represent or any of them, whether brought directly or indirectly against the Lead
Plaintiff, Settlement Class Members, their attorneys, or against any of the Released Plaintiffs&#146; Parties, which arise out of or relate in any way to the institution, prosecution, or Settlement of the Action, except for claims to enforce the
Settlement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Y.</B> &#147;Released Parties&#148; means each and all of the Plaintiffs, Defendants, and each of their
respective immediate family members, heirs, executors, administrators, successors, and assigns; Plaintiffs&#146; and Defendants&#146; present, former and future employees, insurers, officers, directors, partners, attorneys, legal representatives,
receivers and agents; any person or entity which is or was related to or affiliated with any Defendant or Plaintiff, or in which any Defendant or Plaintiff has or had a controlling interest; and the present, former and future parents, subsidiaries,
divisions, affiliates, predecessors, successors, employees, officers, directors, partners, attorneys, assigns, and agents of all of the foregoing. For ease of reference herein, the Stipulation sometimes refers to each set of the enumerated persons
and entities as &#147;Released Plaintiffs&#146; Parties&#148; and &#147;Released Defendants Parties&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Z.</B>
&#147;Settling Individual Defendants&#148; or &#147;Settling Individual Defendant&#148; </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">8.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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means Alfred E. Mann, Hakan S. Edstrom, Matthew J. Pfeffer, and Peter C. Richardson, or any of them. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>AA.</B> &#147;Settlement Administrator&#148; means the Garden City Group, which shall administer the Settlement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>BB.</B> &#147;Settlement Amount&#148; means (a)&nbsp;$16 million (sixteen million dollars) in cash and (b)&nbsp;shares of MannKind common stock that MannKind shall issue in accordance with the
provisions set forth in Section II. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>CC.</B> &#147;Settlement Class&#148; or &#147;Settlement Class Members&#148; means,
for purposes of this Settlement only, all persons or entities who, during the Settlement Class Period, purchased publicly traded shares of MannKind common stock. Excluded from the definition of &#147;Settlement Class&#148; and &#147;Settlement Class
Members&#148; are: (a)&nbsp;Defendants; any parent or subsidiary, present or former director, officer, or subsidiary of MannKind; any entity in which any excluded person has a controlling interest; their legal representatives, heirs, successors and
assigns; any immediate family member of a Settling Individual Defendant; and (b)&nbsp;any putative members of the Settlement Class who timely and validly exclude themselves from the Settlement Class in accordance with the requirements set forth in
the Mailed Notice and Rule 23 of the Federal Rules of Civil Procedure. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>DD.</B> &#147;Settlement Class Period&#148; means
the period of time from May&nbsp;4, 2010, through February&nbsp;11, 2011, both dates inclusive. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>EE.</B> &#147;Settlement
Fund&#148; means the payments to be made in accordance with Section II of this Stipulation. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>FF.</B> &#147;Settlement
Shares&#148; means the shares of MannKind common stock that MannKind shall issue in accordance with the provisions set forth in Section&nbsp;II hereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>GG.</B> &#147;Supplemental Agreement&#148; means the agreement executed by Co-Lead Counsel and Defendants&#146; counsel simultaneously herewith and described in Section XI.G hereof. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">9.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>HH.</B> &#147;Unknown Claims&#148; means any and all claims, demands, rights,
liabilities, and causes of action of every nature and description which Lead Plaintiff, any member of the Settlement Class or any Defendant does not know or suspect to exist in his, her or its favor at or after the Execution Date and including,
without limitation, those which, if known by him, her or it, might have affected his, her or its decision(s) with respect to the Settlement. With respect to any and all Released Claims and Released Defendants&#146; Claims, the Parties hereto
stipulate and agree that, upon the Effective Date, Lead Plaintiff and Defendants shall expressly waive, and each of the Settlement Class Members shall be deemed to have waived, and by operation of the Final Judgment shall have waived, any and all
provisions, rights, and benefits conferred by any law of any state or territory of the United States, or principle of common law, which is similar, comparable, or equivalent to Cal. Civ. Code &#167; 1542, which provides: </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Lead Plaintiff and
Defendants and the members of the Settlement Class may hereafter discover facts in addition to or different from those that any of them now know or believe to be true with respect to the subject matter of the Released Claims, or the Released
Defendants&#146; Claims but Lead Plaintiff and Defendants shall expressly have, and each member of the Settlement Class shall be deemed to have and by operation of the Judgment shall have, fully, finally, and forever settled and released any and all
Released Claims and the Released Defendants&#146; Claims known or unknown, suspected or unsuspected, contingent or non-contingent, whether or not concealed or hidden, that now exist, or heretofore have existed upon any theory of law or equity now
existing or coming into existence in the future, including, but not limited to, conduct that is negligent, reckless, intentional, </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">10.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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with or without malice, or a breach of any duty, law or rule, without regard to the subsequent discovery or existence of such different or additional facts. Lead Plaintiff and Defendants
acknowledge, and the members of the Settlement Class by operation of the Judgment shall be deemed to have acknowledged, that the waivers contained in this paragraph, and the inclusion of &#147;Unknown Claims&#148; in the definition of Released
Claims and Released Defendants&#146; Claims, were separately bargained for and are key elements of the Settlement. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>II.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>THE SETTLEMENT CONSIDERATION</U></B> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>A.</B> Within fifteen (15)&nbsp;business days following preliminary approval of the Settlement by the Court, MannKind or its insurers shall pay or cause to be paid $16 million (sixteen million dollars)
in cash into a separate, interest-bearing escrow account maintained by the Escrow Agent on behalf of Lead Plaintiff and the Settlement Class (the &#147;Escrow Account&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> Within five (5)&nbsp;business days following the Court&#146;s entry of an order of Final Judgment (the &#147;Final Judgment Date&#148;), MannKind shall transfer 2,777,778 shares of its common
stock into the Escrow Account. If the consolidated closing bid price for MannKind&#146;s common stock as reported by The NASDAQ Global Market (the &#147;Closing Price&#148;) is below $1.00 per share on the Final Judgment Date, then within five
(5)&nbsp;business days following the Final Judgment Date, MannKind shall transfer an additional 1,000,000 (one million) shares of its common stock into the Escrow Account. If the Closing Price on the Final Judgment Date is $1.00 per share or more,
then no additional shares over the 2,777,778 shall be transferred to the Escrow Account. The Settlement Shares will be exempt from registration pursuant to Section&nbsp;3(a)(10) under the Securities Act of 1933, as amended, and will be identical in
all respects to MannKind&#146;s currently outstanding shares of common stock. </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">11.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>III.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>THE ESCROW ACCOUNT</U></B> </FONT></TD></TR></TABLE>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>A.</B> The Escrow Account, including any interest earned thereon net of any taxes on the income thereof, shall be used to pay:
(i)&nbsp;attorneys&#146; fees and expenses, (ii)&nbsp;taxes and tax expenses, (iii)&nbsp;Notice and Administration Expenses, and (iv)&nbsp;reimbursement awards to Lead Plaintiff. The balance of the Escrow Account shall be the Net Settlement Fund and
shall be distributed to the Authorized Claimants as set forth in the Plan of Allocation. Lead Plaintiff and Settlement Class Members shall look solely to the Net Settlement Fund for payment and satisfaction of any and all Released Claims.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> All funds held by the Escrow Agent shall be deemed in <U>custodia</U> <U>legis</U> of the Court and shall remain
subject to the jurisdiction of the Court until such time as such funds shall be distributed pursuant to the Stipulation and/or further orders of the Court. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>C.</B> Until the Effective Date, the cash portion of the Settlement Consideration shall only be invested directly in United States Treasury Bills with a maturity of ninety (90)&nbsp;days or less and
held in an account at a nationally recognized financial institution. After the Effective Date, the Escrow Agent shall invest any funds in excess of two-hundred fifty thousand dollars ($250,000) deposited into the Notice and Administrative Account
pursuant to Section IV.A in instruments backed by the full faith and credit of the government of the United States of America, including but not limited to those issued by the Certificate of Deposit Account Registry Service (&#147;CDARS&#148;) or
the Government National Mortgage Association (&#147;GNMAs&#148; or &#147;Ginnie Maes&#148;), and shall collect and reinvest all interest accrued thereon in the same instruments. Any funds held in escrow in amounts of less than $250,000 may be held
in an interest-bearing account insured by the Federal Deposit Insurance Corporation (&#147;FDIC&#148;). </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">12.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>D.</B> The Escrow Agent shall not disburse the Gross Settlement Fund except as provided
in this Stipulation, by order of the Court, or with the prior written agreement of counsel for Defendants and Co-Lead Counsel. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>E.</B> The Escrow Agent shall be authorized to execute only such transactions as are consistent with the terms of this Stipulation and
the order(s) of the Court. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>F.</B> After the Effective Date, Defendants shall have no interest in the Gross Settlement Fund
or in the Net Settlement Fund. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>G.</B> MannKind, its insurers, and the Settling Individual Defendants shall have no
liability and shall be held harmless for any losses arising from (a)&nbsp;the investment of any portion of the Settlement Fund other than in accordance with this Stipulation, or (b)&nbsp;the disbursement of any portion of the Gross Settlement Fund
other than in accordance with this Stipulation. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>IV.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>THE NOTICE AND ADMINISTRATION ACCOUNT</U></B> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>A.</B> The Settlement Administrator shall establish and administer the Notice and Administration Account. The Notice and Administration Account shall be established using funds in the Gross Settlement
Fund and shall be used only for the payment of Notice and Administration Expenses. Funds deposited in the Notice and Administration Account shall not be excessive, and the Escrow Agent shall not deposit more than $250,000 into the Notice and
Administration Account from the Gross Settlement Fund without obtaining prior written approval from counsel for Defendants. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> The Escrow Agent is authorized to transfer funds from the Gross Settlement Fund to the Notice and Administration Account for
Notice and Administration Expenses. </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">13.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>V.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>PRELIMINARY APPROVAL ORDER, NOTICE ORDER, AND SETTLEMENT HEARING</U></B> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>A.</B> The Parties shall submit this Stipulation together with its exhibits to the Court, and Lead Plaintiff shall apply for entry of an order (the &#147;Preliminary Approval Order&#148;) substantially
in the form and content of Exhibit A attached hereto, requesting, <U>inter</U> <U>alia</U>, the preliminary approval of the Settlement as set forth in the Stipulation, and final approval of forms of notice to be mailed to all potential Settlement
Class Members who can be identified with reasonable effort (the &#147;Mailed Notice&#148;) and to be published (the &#147;Summary Notice&#148;), substantially in the forms and contents of Exhibits B and C hereto, respectively. The Mailed Notice
shall include a proof of claim, substantially in the form of Exhibit D attached hereto (the &#147;Proof of Claim and Release&#148;), the general terms of the Settlement set forth in the Stipulation, and shall set forth the procedure by which Persons
who otherwise would be members of the Settlement Class may request to be excluded from the Settlement Class. MannKind shall assist Co-Lead Counsel and/or the Settlement Administrator in obtaining, from MannKind&#146;s transfer agent, records of
ownership as necessary to process and administer the Mailed Notice. The cost, if any, associated with compiling and/or delivering these records from the transfer agent to Co-Lead Counsel or the Settlement Administrator shall be payable to the
transfer agent from the Settlement Fund. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> The Parties shall request that, after the Mailed Notice and Summary Notice
have been mailed and published, respectively, in accordance with this Stipulation, the Court hold the Final Approval Settlement Hearing and finally approve the settlement of the Action with respect to the Parties. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>C.</B> The Parties hereby stipulate to certification of the Settlement Class, pursuant to Rule 23(b)(3) of the Federal Rules of Civil
Procedure, solely for purposes of this Stipulation and the Settlement set forth herein. If this Stipulation is not approved by the Court, however, then (a)&nbsp;Defendants shall retain all rights to
(i)</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">14.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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object to and oppose class certification, or (ii)&nbsp;challenge the standing of Lead Plaintiff or any other intervening plaintiff; and (b)&nbsp;this Stipulation and any motion or other papers
filed in support of its approval shall not be offered as evidence of any agreement, admission or concession that any class should be or remain certified in the Action or that Lead Plaintiff or any other intervening plaintiff has standing or any
legal right to represent any class. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>VI.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>FINAL JUDGMENT APPROVING THE SETTLEMENT</U></B> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>A.</B> At the Final Settlement Approval Hearing, the Parties shall jointly request entry of the Final Judgment, substantially in the form attached hereto as Exhibit E. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> Such form shall include the following language: In accordance with 15 U.S.C. &#167; 78u-4(f)(7)(A), any and all claims for
contribution, equitable indemnity, or any claims however designated that seek equivalent relief are hereby permanently barred and discharged if the claim or claims: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>1.</B> arise out of the Action or any Released Claim, including any claim arising out of, relating to, or connected in any way with (a)&nbsp;the purchase of MannKind common stock on the open market
during the Settlement Class Period; and (b)&nbsp;the facts, transactions, events, occurrences, acts, disclosures, statements, omissions, or failures to act which were, or could have been alleged, in the Action or in any other forum, based upon,
relating to or arising from the facts which were or could have been alleged in the Action; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>2.</B> are filed by any
Person against MannKind or any Individual Defendant, or filed by MannKind or any Individual Defendant against any Person; except that MannKind expressly reserves the right to seek contribution, equitable indemnity, or any claim seeking equivalent
relief against any Person (other than the Individual Defendants, Plaintiffs, and their Related Parties, as defined in the Stipulation) whose liability has been extinguished by the Settlement. </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">15.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>VII.<U></U></B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>ATTORNEYS&#146; FEES AND EXPENSES</U></B> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>A.</B> Lead Counsel may submit an application or applications (the &#147;Fee and Expense Application&#148;) for distributions to Co-Lead Counsel from the Settlement Fund for: (a)&nbsp;an award of
attorneys&#146; fees; plus (b)&nbsp;reimbursement of actual costs and expenses, including experts or consultants, incurred in connection with prosecuting the Action plus any interest on such attorneys&#146; fees, costs and expenses at the same rate
and for the same periods as earned by the Gross Settlement Fund (until paid) as may be awarded by the Court. Co-Lead Counsel reserves the right to make additional applications for fees and expenses incurred, if necessary. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> The attorneys&#146; fees and expenses, including the fees and expenses of experts and consultants, as awarded and ordered by
the Court (&#147;Fee Award&#148;), shall be payable to Co-Lead Counsel from the Settlement Fund upon the entry of the Court&#146;s order awarding such fees and expenses. The cash portion of the Fee Award shall be paid to Co-Lead Counsel five
(5)&nbsp;business days after the entry of the Final Judgment, and the Settlement Share portion of the Fee Award shall be delivered to Co-Lead Counsel five (5)&nbsp;business days after MannKind&#146;s transfer of the common stock to the Escrow
Account as set forth in section II.B. MannKind shall use its best efforts to assist the transfer of Co-Lead Counsel&#146;s proportionate share of the Settlement Shares, and shall bear the reasonable cost, if any, charged by the transfer agent for
this transfer. If the Fee Award is reduced or reversed on appeal, then Co-Lead Counsel shall, within five (5)&nbsp;business days of a Final order by the Court of Appeals or the Supreme Court directing such reduction or reversal, refund to the
Settlement Fund all or any portion of the Fee Award as directed by the Final order, and the refund of all or any portion of the Fee Award shall be distributed by the Escrow Agent to the Class pursuant to the manner directed in the Final order.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>C.</B> The procedure for and allowance or disallowance by the Court of any application by Co-Lead Counsel for
attorneys&#146; fees and expenses, including the fees and expenses of experts and consultants, to be paid out of the Settlement Fund or </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">16.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
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the Settlement Shares, are not part of the Settlement set forth in this Stipulation and are to be considered by the Court separately from the Court&#146;s consideration of the fairness,
reasonableness, and adequacy of the Settlement set forth in this Stipulation; and any order or proceedings relating to the Fee and Expense Application, or any appeal from any order relating thereto or reversal or modification thereof, shall not
operate to modify, terminate, or cancel this Stipulation, or affect or delay the finality of the Judgment approving this Stipulation and the Settlement of the Action. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>D.</B> Defendants and their Related Parties shall have no responsibility for, and no liability whatsoever with respect to, any payment to Co-Lead Counsel or any other Plaintiffs&#146; counsel and/or
any other Person who receives payment from the Settlement Fund. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>E.</B> Defendants and their Related Parties shall have no
responsibility for, and no liability whatsoever with respect to, the allocation among Co-Lead Counsel and/or any other Person who may assert some claim thereto, of any Fee Award that the Court may make in the Action. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>F.</B> Co-Lead Counsel may submit an application to the Court to authorize the payment of a Compensatory Award for the time and
expenses expended by Lead Plaintiff in assisting Co-Lead Counsel in the litigation of this Action. Any Compensatory Award to Lead Plaintiff shall be payable five (5)&nbsp;days after the Effective Date, in cash, and from the Settlement Fund only.
</FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>VIII.&nbsp;</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>ADMINISTRATION AND CALCULATION OF CLAIMS, FINAL AWARDS AND DISTRIBUTION OF NET SETTLEMENT FUND</U></B> </FONT></TD></TR></TABLE>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>A.</B> Each Settlement Class Member wishing to participate in the Settlement shall be required to submit a Proof of Claim and Release
in the form annexed hereto as Exhibit D, signed under penalty of perjury by the beneficial owner(s) of the stock or by someone with documented authority to sign for the beneficial owner(s), and
</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">17.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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supported by such documentation as specified in the instructions accompanying the Proof of Claim and Release. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> All Proofs of Claim and Releases must be received within the time prescribed in the Preliminary Approval Order unless otherwise ordered by the Court. Any Settlement Class Member who fails to
submit a properly completed Proof of Claim and Release within such period as shall be authorized by the Court shall be forever barred from receiving any payments pursuant to this Stipulation or from the Net Settlement Fund, but will in all other
respects be subject to the provisions of this Stipulation and the Final Judgment, including, without limitation, the release of the Released Claims and dismissal of the Action with prejudice. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>C.</B> The Settlement Administrator shall administer the Settlement subject to such approvals by the Court as circumstances may
require. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>D.</B> Each Proof of Claim and Release shall be submitted to the Settlement Administrator who shall determine, in
accordance with this Stipulation and the Plan of Allocation to be formulated by Co-Lead Counsel, for approval by the Court, the extent, if any, to which each claim shall be allowed, subject to appeal to the Court. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>E.</B> The Settlement Administrator shall administer and calculate the claims submitted by the members of the Settlement Class,
determine the extent to which claims shall be allowed, and oversee distribution of the Net Settlement Fund subject to appeal to, and jurisdiction of, the Court. Neither Co-Lead Counsel, its designees or agents, Lead Plaintiff, the Defendants&#146;
counsel, nor the Defendants shall have any liability arising out of such determination. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>F.</B> The administrative
determination of the Settlement Administrator accepting and rejecting claims shall be presented to the Court, on notice to the Defendants&#146; counsel, for approval by the Court. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>G.</B> Following the Effective Date and upon application to the Court by Co-Lead Counsel, the Net Settlement Fund shall be distributed
to Authorized </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">18.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
Claimants by the Settlement Administrator for the cash portion of the Settlement and by MannKind&#146;s transfer agent for the stock portion of the Settlement. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>H.</B> The transfer agent shall issue certificates evidencing Settlement Shares registered in the respective names of the Authorized
Claimants or, if acceptable to MannKind and Co-Lead Counsel (with such acceptance not to be unreasonably withheld), through &#147;book-entry&#148; registration, provided that all Settlement Shares issued directly to the Settlement Fund shall be
registered only in &#147;book-entry&#148; form. The Settlement Administrator shall use the format that the transfer agent may reasonably prescribe for delivery to the transfer agent of the information contemplated to effectuate the transfer of the
Settlement Shares. Each of MannKind and the transfer agent has the right to rely on the accuracy and completeness of the information provided by the Settlement Administrator or Authorized Claimants with respect to the issuance of Settlement Shares.
Neither MannKind nor the transfer agent shall have any responsibility for, interest in, or liability whatsoever with respect to the accuracy or completeness of the information provided by the Settlement Administrator or any Authorized Claimant in
respect of the issuance of Settlement Shares, or any losses incurred in connection therewith. All Settlement Shares issued pursuant to this Settlement shall be rounded to the nearest whole number of shares of common stock and no fractional shares
shall be issued. Any Settlement Shares issued pursuant to this Settlement shall be listed on a national securities exchange and shall not bear any legend restricting the transferability thereof. The reasonable costs and expenses of the transfer
agent with respect to the issuance and delivery of Settlement Shares shall be paid by MannKind. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>I.</B> The Net Settlement
Fund shall be distributed to the Authorized Claimants substantially in accordance with the terms of this Stipulation and a Plan of Allocation to be approved by the Court, subject to and in accordance with the following: </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">19.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>1.</B> Any such Plan of Allocation is not a part of this Stipulation and it is not a
condition of this Settlement that any particular Plan of Allocation be approved. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>2.</B> No funds from the Net Settlement
Fund shall be distributed to Authorized Claimants until after the Effective Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>3.</B> Each Settlement Class Member who
claims to be an Authorized Claimant shall be required to submit to the Settlement Administrator a completed Proof of Claim and Release signed under penalty of perjury and supported by such documents as specified in the Proof of Claim and Release and
as are reasonably available to such Settlement Class Member. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>4.</B> Except as otherwise ordered by the Court, all
Settlement Class Members who fail timely to submit a Proof of Claim and Release within such period as may be ordered by the Court, or otherwise allowed, shall be forever barred from receiving any payments pursuant to the Stipulation and the
Settlement set forth herein, but shall in all other respects be subject to and bound by the provisions of the Stipulation, the releases contained herein, and the Final Judgment. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>5.</B> All Persons who fall within the definition of the Settlement Class and who do not timely and validly request to be excluded
from the Settlement Class in accordance with the instructions set forth in the Mailed Notice (as defined in Section V.A, above) shall be subject to and bound by the provisions of this Stipulation, the releases contained herein, and the Final
Judgment with respect to all Released Claims, regardless of whether such Persons seek or obtain by any means, including, without limitation, by submitting a Proof of Claim and Release or any similar document, any distribution from the Gross
Settlement Fund or the Net Settlement Fund. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>J.</B> Neither the Defendants nor their counsel shall have any responsibility
for, interest in, or liability whatsoever with respect to the investment or distribution of the Gross Settlement Fund, the Plan of Allocation, the determination, </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">20.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
administration, or calculation of claims, the distribution of the Net Settlement Fund, or any losses incurred in connection with any such matters. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>K.</B> The Defendants shall have no involvement in the solicitation or review of Proofs of Claim and Releases, or involvement in the
administration process, which will be conducted by the Settlement Administrator in accordance with this Stipulation. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>L.</B> Any change in the allocation of the Net Settlement Fund ordered by the Court shall not affect the validity or finality of this
Settlement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>M.</B> No Person shall have any claim against Lead Plaintiff or Co-Lead Counsel, the Settlement Administrator,
Defendants or their respective counsel based on investments or distributions made substantially in accordance with this Stipulation and the Settlement contained herein, the Plan of Allocation or further orders of the Court. </FONT></P>
<P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>IX.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>DUE DILIGENCE</U></B> </FONT></TD></TR></TABLE>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>A.</B> The Settlement is subject to the completion of reasonable due diligence by Lead Plaintiff, the scope and timing of which shall
be reasonable and mutually agreed upon by the Parties hereto. All due diligence conducted hereunder shall be considered confidential and treated accordingly under the terms of the stipulated protective order signed by the Parties on or about
March&nbsp;15, 2012, and shall be for the sole purpose of assessing the reasonableness and adequacy of the Settlement. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> Lead Plaintiff, by and through Co-Lead Counsel, shall have the right to withdraw from the proposed Settlement at any time prior
to filing its motion for final approval of the Parties&#146; proposed Settlement if, in its discretion, information reviewed during due diligence renders the proposed Settlement unfair, unreasonable, and inadequate. In the event that the Settlement
is terminated for any reason, or if the Effective Date fails to occur, Lead Plaintiff shall return all due-diligence materials made available to it and is prohibited from using any facts </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">21.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
learned in due diligence in any subsequent complaint unless and until such facts are later obtained during the course of the litigation. </FONT></P>
<P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>X.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>TAX TREATMENT</U></B> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-right:2%; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>A.</B> The Parties, their counsel, the Court, and the Escrow Agent shall treat the Escrow Account as being at all times a &#147;qualified settlement fund&#148; within the meaning of Treas. Reg. &#167;
1.468B-1 for all periods on and after the date of the Court order preliminarily approving this Stipulation. The Parties, their counsel, the Court and the Escrow Agent agree to take no action inconsistent with the treatment of the Escrow Account in
such manner. In addition, the Settlement Administrator, Escrow Agent, and as necessary, the Defendants, shall make the &#147;relation back election&#148; (as defined in Treas. Reg. &#167; 1.468B-1(j)) back to the earliest permitted date. Such
elections shall be made in compliance with the procedures and requirements contained in such regulations. It shall be the responsibility of the Settlement Administrator to timely and properly prepare and deliver the necessary documentation for
signature by all necessary parties and thereafter to cause the appropriate filing to occur. All provisions of this Stipulation shall be interpreted in a manner that is consistent with the Escrow Account being a &#147;qualified settlement fund&#148;
within the meaning of Treas. Reg. &#167; 1.468B-1. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> For the purpose of &#167; 468B of the Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder, the &#147;administrator&#148; shall be the Settlement Administrator. The Settlement Administrator shall satisfy the administrative requirements imposed by Treas. Reg. &#167; 1.468B-2 by,
e.g., (i)&nbsp;obtaining a taxpayer identification number, (ii)&nbsp;timely and properly satisfying any information reporting or withholding requirements imposed on distributions from the Escrow Account, and (iii)&nbsp;timely and properly filing or
causing to be filed on a timely basis, all federal, state, local and foreign tax returns and other tax related statements necessary or advisable with respect to the Escrow Account (including, without limitation, all income tax returns, all
informational returns, and all returns </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">22.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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described in Treas. Reg. &#167; 1.468B-2(1), and timely and properly paying any taxes imposed on the Escrow Account. Such returns and Statements (as well as the election described in X.A hereof)
shall be consistent with this X.B and in all events shall reflect that all taxes (including any estimated taxes, interest or penalties) on the income earned by the Escrow Account shall be paid out of the Escrow Account as provided in X.C hereof.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>C.</B> All (i)&nbsp;taxes arising with respect to the income earned by the Escrow Account and (ii)&nbsp;tax expenses shall
be paid out of the Escrow Account. Further, taxes and the tax expenses shall be treated as, and considered to be, a cost of administration of the Settlement and shall be timely paid by the Escrow Agent out of the Escrow Account without prior order
from the Court, and the Escrow Agent shall be obligated (notwithstanding anything herein to contrary) to withhold from distribution to Authorized Claimants any funds necessary to pay such amounts (as well as any amounts that may be required to be
deducted or withheld under Treas.&nbsp;Reg.&nbsp;&#167;&nbsp;1.468B-2(1)(2)). All Parties and their tax attorneys and accountants shall to the extent reasonably necessary carry out the provisions of paragraphs A-C of this Section. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>D.</B> The Defendants shall have no responsibility to make any filings relating to the Escrow Account and will have no responsibility
to pay tax on any income earned by the Escrow Account. In the event this Stipulation is canceled or terminated, MannKind shall be responsible for the payment of all taxes (including any interest or penalties), if any, on its portion of said income.
</FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>XI.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>CONDITIONS OF SETTLEMENT, EFFECT OF DISAPPROVAL, CANCELLATION OR TERMINATION</U></B> </FONT></TD></TR></TABLE>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>A.</B> This Stipulation shall be subject to the following conditions and, except as provided herein, shall be canceled and terminated
unless: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>1.</B> The Court enters the Preliminary Approval Order, as provided in Section V; </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">23.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>2.</B> MannKind or its insurers shall have timely transferred, or caused to be
transferred, the cash portion of the Settlement Amount ($16 million), and MannKind shall have transferred the Settlement Shares as provided in Section II; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>3.</B> The Court has approved the Settlement as described herein, following notice to the Settlement Class and a Hearing, as prescribed by Rule 23 of the Federal Rules of Civil Procedure, and has
entered the Final Judgment, as provided in Section VI; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>4.</B> The time within which MannKind may exercise its option to
terminate this Stipulation in accordance with the terms of the Supplemental Agreement shall have expired without the exercise of that option; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>5.</B> The Court shall have entered the Judgment, in all material respects in the form set forth in Exhibit E attached hereto, or an order and Final Judgment in a form that is not in all material
respects identical to Exhibit E attached hereto (an &#147;Alternative Judgment&#148;) and Defendants do not elect to terminate the Settlement following the entry of such Alternative Judgment; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>6.</B> Counsel for all Persons listed on the signature pages of this Stipulation have executed this Stipulation; and </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>7.</B> The Judgment, or any Alternative Judgment, has become Final. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> Upon the Effective Date: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>1.</B> Lead Plaintiff and the Settlement Class Members, on behalf of themselves, and to the fullest extent permitted by law, their heirs, executors, administrators, personal representatives, attorneys,
agents, partners, successors and assigns, and any other Person claiming (now or in the future) to have acted through or on behalf of them, shall hereby be deemed to have, and by operation of the Final Judgment shall have, fully, finally, and
forever, released, relinquished, settled and discharged the Released Defendants&#146; Parties from the Released Claims and shall be permanently barred and enjoined from instituting, commencing, or prosecuting any
</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">24.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
Released Claim against any of the Released Defendants&#146; Parties directly, indirectly or in any other capacity, whether or not such members of the Settlement Class execute and deliver a Proof
of Claim and Release to the Settlement Administrator. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>2.</B> The Defendants, on behalf of themselves, and to the fullest
extent permitted by law, their heirs, executors, administrators, personal representatives, attorneys, agents, partners, successors and assigns, and any other Person claiming (now or in the future) to have acted through or on behalf of them, shall
hereby be deemed to have, and by operation of the Final Judgment shall have, fully, finally, and forever, released, relinquished, settled and discharged the Lead Plaintiff, the members of the Settlement Class, their attorneys, and the Released
Plaintiffs&#146; Parties from the Released Defendants&#146; Claims and shall be permanently barred and enjoined from instituting, commencing, or prosecuting any Released Defendants&#146; Claim against any of them directly, indirectly or in any other
capacity. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>C. </B>If all of the conditions specified in paragraph A of this Section are not met, then this Stipulation
shall be canceled and terminated, unless Co-Lead Counsel and Defendants&#146; counsel mutually agree in writing to proceed with the Settlement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>D.</B> If either (a)&nbsp;the Effective Date does not occur, (b)&nbsp;this Stipulation is canceled or terminated pursuant to its terms, or (c)&nbsp;this Stipulation does not become final for any
reason, then the Gross Settlement Fund and all interest earned on the Gross Settlement Fund while held in escrow (less Notice and Administration Expenses paid or incurred), plus any amount then remaining in the Notice and Administration Account,
including both interest paid and accrued (less expenses and costs which have not yet been paid but which are properly chargeable to the Notice and Administration Account), shall be refunded by the Settlement Administrator and/or the Escrow Agent to
MannKind and its respective insurers in accordance with the amounts contributed by each such Person pursuant to Section II.A of this Stipulation. The Settlement Administrator and/or the Escrow Agent
</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">25.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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shall make the refund described in the preceding sentence within ten (10)&nbsp;business days of such cancellation or termination. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>E.</B> Upon the occurrence of all of the events specified in paragraph A of this Section, the obligation of the Settlement
Administrator and/or the Escrow Agent to return funds from the Gross Settlement Fund to MannKind and/or its respective insurers pursuant to paragraph D of this Section, shall be absolutely and forever extinguished. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>F.</B> If either (a)&nbsp;the Effective Date does not occur, (b)&nbsp;this Stipulation is canceled or terminated pursuant to its
terms, or (c)&nbsp;this Stipulation does not become final for any reason, all of the Parties to this Stipulation shall be deemed to have reverted to their respective status as of May&nbsp;17, 2012, and they shall proceed in all respects as if this
Stipulation had not been executed and the related orders had not been entered, preserving in that event all of their respective claims and defenses in the Action. Notwithstanding the foregoing language, the following provisions of this Stipulation
shall survive any termination or cancellation of the Settlement: this Section XI.F; Section XI.D (&#147;Conditions of Settlement, Effect of Disapproval Cancellation or Termination&#148;); Section XII (&#147;No Admissions&#148;); and, to the extent
applicable, Section XIII (&#147;Miscellaneous Provisions&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>G.</B> Notwithstanding any other provision or paragraph
in this Stipulation, MannKind may, in accordance with the terms set forth in the Parties&#146; Supplemental Agreement, and in its sole discretion, elect in writing to terminate the Settlement and this Stipulation if the Opt-Out Threshold is exceeded
and not cured in accordance with the terms of the Supplemental Agreement. Unless otherwise directed by the Court, the Supplemental Agreement will not be filed with the Court, and if ordered by the Court, shall be filed under seal. </FONT></P>
<P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>XII.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>NO ADMISSIONS</U></B> </FONT></TD></TR></TABLE>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>A. </B>The Parties hereto intend the Settlement as described herein to be a final and complete resolution of all disputes between them
with respect to the </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">26.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
Action and entry in this Settlement shall not be deemed an admission by any Plaintiff or Defendant as to the merits of any claim or defense or any allegation made in the Action. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> Neither this Stipulation nor the Settlement, nor any act performed or document executed pursuant to or in furtherance of this
Stipulation or the Settlement: (a)&nbsp;is or may be deemed to be or may be used as an admission of, or evidence of, the validity or infirmity of any Released Claim, of any allegation made in the Action, or of any wrongdoing or liability of any of
the Released Parties; (b)&nbsp;is or may be deemed to be or may be used as an admission of, or evidence of, any liability, fault or omission of any of the Released Parties in any civil, criminal or administrative proceeding in any court,
administrative agency or other tribunal; or (c)&nbsp;is or may be deemed to be or may be used as an admission or evidence that Lead Plaintiff and the Settlement Class Members would have received less than the Settlement Amount had the Action been
prosecuted to conclusion. Neither this Stipulation nor the Settlement, nor any act performed or document executed pursuant to or in furtherance of this Stipulation or the Settlement shall be admissible in any proceeding for any purpose, except to
enforce the terms of the Settlement, and except that any of the Released Parties may file this Stipulation and/or the Judgment in any action that may be brought against any of them in order to support a defense or counterclaim based on principles of
res judicata, collateral estoppel, release, good faith settlement, judgment bar or reduction or any other theory of claim preclusion or issue preclusion or similar defense or counterclaim. </FONT></P>
<P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>XIII.&nbsp;</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>MISCELLANEOUS PROVISIONS</U></B> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>A.</B> The Parties hereto: (a)&nbsp;acknowledge that it is their intent to consummate the Settlement contemplated by this Stipulation; (b)&nbsp;agree to cooperate to the extent necessary to effectuate
and implement all terms and conditions of this Stipulation; and (c)&nbsp;agree to exercise their best efforts and to act in good faith to accomplish the foregoing terms and conditions of the Stipulation. </FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">27.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>B.</B> All counsel who execute this Stipulation represent and warrant that they have
authority to do so on behalf of their respective clients. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>C.</B> All of the exhibits attached hereto are hereby
incorporated by reference as though fully set forth herein. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>D.</B> This Stipulation may be amended or modified only by a
written instrument signed by counsel for all Parties hereto or their successors in interest. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>E.</B> This Stipulation,
exhibits attached hereto, and the Supplemental Agreement constitute the entire agreement between Plaintiffs on the one hand, and Defendants on the other hand, and supersede any and all prior agreements, written or oral, between the Parties. No
representations, warranties or inducements have been made concerning this Stipulation or its exhibits other than the representations, warranties and covenants contained and memorialized in such documents. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>F.</B> This Stipulation may be executed in one or more original, photocopied or facsimile counterparts. All executed counterparts and
each of them shall be deemed to be one and the same instrument. Counsel for the Parties hereto shall exchange among themselves original signed counterparts and a complete set of original executed counterparts shall be filed with the Court.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>G.</B> This Stipulation shall be binding upon, and inure to the benefit of the successors, assigns, executors,
administrators, affiliates (including parent companies), heirs and legal representatives of the Parties hereto. No assignment shall relieve any Party hereto of obligations hereunder. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>H.</B> All terms of this Stipulation and all exhibits hereto shall be governed and interpreted according to the internal laws of the
State of California without regard to its conflicts of law rules and in accordance with the laws of the United States. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>I.</B> Defendants, Plaintiffs, and the Released Parties hereby irrevocably submit to the jurisdiction of the Court with respect to
enforcement of the terms of </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">28.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
this Stipulation and for any suit, action, proceeding or dispute arising out of or relating to this Stipulation or the applicability of this Stipulation. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>J.</B> The Parties to this Stipulation intend the Settlement to be a final and complete resolution of all disputes asserted or which
could be asserted by the Settlement Class Members against the Released Defendants&#146; Parties with respect to the Released Claims and all claims the Defendants and Released Defendants&#146; Parties have asserted or could assert against Lead
Plaintiff, Settlement Class Members, their attorneys and Released Plaintiffs&#146; Parties with respect to the Released Defendants&#146; Claims. Accordingly, Plaintiffs and Defendants agree not to assert in any forum that the litigation was brought
by Lead Plaintiff or his counsel, or defended by Defendants, or their counsel, in bad faith or without a reasonable basis. The Parties hereto shall assert no claims of any violation of Rule 11 of the Federal Rules of Civil Procedure relating to the
prosecution, defense, or settlement of the Action. The Parties agree that the amount paid and the other terms of the Settlement were negotiated at arm&#146;s-length and in good faith by the Parties, and reflect a settlement that was reached
voluntarily after consultation with experienced legal counsel, and with the assistance of an experienced jurist and mediator, the Hon. Layn R. Phillips (Ret.). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>K.</B> This Stipulation, offer of this Stipulation, and compliance with this Stipulation shall not constitute or be construed as an admission by any of the Released Defendants&#146; Parties of any
wrongdoing or liability or by any of the Released Plaintiffs&#146; Parties of any liability for the institution and prosecution of the Action or of any infirmity with respect to the Released Claims. This Stipulation is to be construed solely as a
reflection of the desire of the Parties hereto to facilitate a resolution of the claims in the Action and of the Released Claims. The Parties hereto agree that no Party was or is a &#147;prevailing party&#148; in this case. In no event shall this
Stipulation, any of its provisions, or any negotiations, statements or court proceedings relating to its provisions in any way be construed as, offered as, </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">29.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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received as, used as, or deemed to be evidence of any kind in the Action, any other action, or any judicial (whether civil or criminal), administrative, regulatory or other proceeding, except a
proceeding to enforce this Stipulation. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>L.</B> This Stipulation shall not be construed more strictly against one Party
than another merely by virtue of the fact that it, or any part of it, may have been prepared by counsel for one of the Parties, it being recognized that this Stipulation is the result of arm&#146;s-length negotiations between the Parties and all
Parties have contributed substantially and materially to its preparation. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>M.</B> MannKind shall use its best efforts to
provide Lead Plaintiff with transfer records, or help Lead Plaintiff procure transfer records or other appropriate information that will assist in the identification of Settlement Class Members for the purpose of providing Settlement Class Members
with notice of the proposed Settlement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>N.</B> Except as otherwise provided herein, each Party shall bear its own fees and
costs. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>O.</B> The headings herein are used for the purpose of convenience and are not intended to have legal effect.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>P.</B> Notices required or permitted by this Stipulation shall be submitted either by overnight mail or in person as
follows: </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Notice to Plaintiffs:</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Notice to Defendants:</B></FONT></TD></TR>


<TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Lionel Z. Glancy</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">GLANCY BINKOW&nbsp;&amp; GOLDBERG LLP</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">1925 Century Park East, Suite 2100</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Los Angeles, CA 90067</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Patrick V. Dahlstrom</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">POMERANTZ HAUDEK GROSSMAN &amp; GROSS LLP</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">10 South LaSalle St., Suite 3505</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:1px; margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chicago, IL 60603</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Koji F. Fukumura</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">COOLEY
LLP</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">4401 Eastgate Mall</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT STYLE="font-family:Times New Roman" SIZE="2">San Diego, CA
92121-9109</FONT></P></TD></TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>S<SMALL>TIPULATION</SMALL> <SMALL>OF</SMALL> S<SMALL>ETTLEMENT</SMALL></B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Case No. 11-cv-00929-GAF (SSx)</B></FONT></TD></TR></TABLE>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>IN WITNESS WHEREOF</B>, the Parties hereto, intending to be legally bound. </FONT></P>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">July 23, 2012</FONT></TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>GLANCY BINKOW &amp; GOLDBERG LLP</B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<P STYLE="margin-top:0px;margin-bottom:0px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Lionel Z. Glancy</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Lionel Z. Glancy (134180)</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Robin Bronzaft Howald (110280)</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Coby M. Turner (266298)</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">1925 Century Park East, Suite 2100</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Los Angeles, CA 90067</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Telephone: 310-201-9150</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Facsimile:
310-201-9160</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>info@glancylaw.com</U></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Co-Lead Counsel for Plaintiffs</I></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:1px"><FONT SIZE="1">&nbsp;</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">July 23, 2012</FONT></TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>POMERANTZ HAUDEK GROSSMAN &amp; GROSS LLP</B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<P STYLE="margin-top:0px;margin-bottom:0px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Patrick V. Dahlstrom</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Patrick V. Dahlstrom</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Joshua B. Silverman</FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">10 South LaSalle Street, Suite 3505</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chicago, IL 60603</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Telephone:
312-377-1181</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Facsimile: 312-377-1184</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>jbsilverman@pomlaw.com</U></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Co-Lead Counsel for Plaintiffs</I></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:1px"><FONT SIZE="1">&nbsp;</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">July 23, 2012</FONT></TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>COOLEY LLP</B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<P STYLE="margin-top:0px;margin-bottom:0px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Koji F. Fukumura</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Koji F. Fukumura (189719)</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">4401 Eastgate Mall</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">San Diego, CA
92121</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Telephone: 858-550-6000</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Facsimile: 858-550-6420</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>kfukumura@cooley.com</U></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:1px"><FONT SIZE="1">&nbsp;</FONT></P></TD></TR>
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<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Attorneys for Defendants MannKind Corp., Alfred E. Mann, Hakan S. Edstrom, Matthew J. Pfeffer, and Peter C. Richardson</I></FONT></TD></TR>
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