<SEC-DOCUMENT>0001193125-17-217588.txt : 20170629
<SEC-HEADER>0001193125-17-217588.hdr.sgml : 20170629
<ACCEPTANCE-DATETIME>20170629093133
ACCESSION NUMBER:		0001193125-17-217588
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20170627
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Submission of Matters to a Vote of Security Holders
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170629
DATE AS OF CHANGE:		20170629

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:		17936935

	BUSINESS ADDRESS:	
		STREET 1:		25134 RYE CANYON LOOP
		STREET 2:		SUITE 300
		CITY:			VALENCIA
		STATE:			CA
		ZIP:			91355
		BUSINESS PHONE:		6617755300

	MAIL ADDRESS:	
		STREET 1:		25134 RYE CANYON LOOP
		STREET 2:		SUITE 300
		CITY:			VALENCIA
		STATE:			CA
		ZIP:			91355
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d419252d8k.htm
<DESCRIPTION>8-K
<TEXT>
<HTML><HEAD>
<TITLE>8-K</TITLE>
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 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>WASHINGTON, D.C. 20549 </B></P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:16pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM&nbsp;8-K
</B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT REPORT </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant
to Section&nbsp;13 or 15(d) </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>of the Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of earliest event reported): June&nbsp;27, 2017 </B></P>
<P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>MannKind Corporation </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of registrant as specified in its charter) </B></P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><B>Delaware</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>000-50865</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>13-3607736</B></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or other jurisdiction of</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>incorporation or organization)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Commission</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>File Number)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(IRS Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification No.)</B></P></TD></TR>
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<TD VALIGN="top" COLSPAN="3" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>25134 Rye Canyon Loop, Suite 300</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Valencia, California</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"><B>91355</B></TD></TR>
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<TD VALIGN="top" COLSPAN="3" ALIGN="center"><B>(Address of principal executive offices)</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>(Zip Code)</B></TD></TR>
</TABLE> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Registrant&#146;s telephone number, including area code: (661)&nbsp;775-5300 </B></P>
<P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>N/A </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Former name or
former address, if changed since last report.) </B></P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Check the appropriate box below
if the Form&nbsp;8-K&nbsp;is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. of Form&nbsp;8-K): </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule&nbsp;14a-12&nbsp;under the Exchange Act (17 CFR&nbsp;240.14a-12) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement&nbsp;communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17 CFR&nbsp;240.14d-2(b)) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement&nbsp;communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17 CFR&nbsp;240.13e-4(c)) </TD></TR></TABLE>
<P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;
230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167; 240.12b-2 of this chapter). </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Emerging growth
company&nbsp;&nbsp;&#9744; </P> <P STYLE="margin-top:10pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to Section&nbsp;13(a) of the Exchange Act.&nbsp;&nbsp;&#9744; </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On June 27, 2017, MannKind Corporation (the &#147;Company&#148;) entered into an agreement (the &#147;Mann Group Agreement&#148;) with The Mann Group LLC (the
&#147;Mann Group&#148;), pursuant to which the parties agreed to, among other things, (i) capitalize $10.7 million of accrued and unpaid interest as of June 30, 2017 under the Amended and Restated Promissory Note held by the Mann Group, dated as of
October 18, 2012 (&#147;Promissory Note&#148;), resulting in such amount being classified as outstanding principal under the Promissory Note, (ii) advance to the Company approximately $19.4 million, the remaining amount available for borrowing by
the Company under the Promissory Note after the foregoing capitalization of accrued and unpaid interest, and (iii) defer all interest payable on the outstanding principal under the Promissory Note until July 1, 2018 (subject to further deferral
under a subordination agreement with Deerfield Private Design Fund II, L.P. and Deerfield Private Design International II, L.P. (collectively, &#147;Deerfield&#148;) until the Company&#146;s payment obligations to Deerfield have been satisfied in
full, except for certain permitted payments (including interest payable in-kind)). All outstanding advances under the Promissory Note and any unpaid accrued interest thereon continue to be due and payable on January 5, 2020. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The foregoing description of the Mann Group Agreement does not purport to be complete and is qualified in its entirety by reference to the Mann Group
Agreement, a copy of which is attached to this report as Exhibit 99.1; and the Promissory Note, a copy of which is attached as Exhibit 10.2 to the Company&#146;s Current Report on Form 8-K filed with the Securities and Exchange Commission (the
&#147;SEC&#148;) on October 19, 2012. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On June 29, 2017, the Company and MannKind LLC, the Company&#146;s wholly owned subsidiary, entered into an
Exchange and Third Amendment to Facility Agreement with Deerfield (the &#147;Deerfield Amendment&#148;), pursuant to which the parties agreed to, among other things, (i) exchange $5.0 million principal amount under the Company&#146;s 9.75% Senior
Convertible Notes due 2019 (the &#147;Tranche 4 Notes&#148;) for 3,584,230 shares of the Company&#146;s common stock (the &#147;Exchange Shares&#148;) at an exchange price of $1.395 per share and (ii) amend the Facility Agreement with Deerfield,
dated as of July 1, 2013, as amended (the &#147;Facility Agreement&#148;), to (A) defer the payment of $10.0 million in principal amount of the Tranche 4 Notes from the original July 18, 2017 due date to August 31, 2017, with an option for the
Company to elect to further defer the payment of such principal amount from August 31, 2017 to October 31, 2017 upon the Company&#146;s delivery on August 31, 2017 of a written certification to Deerfield that certain conditions have been met,
including that no event of default under the Facility Agreement has occurred, Michael Castagna remains the Company&#146;s Chief Executive Officer, the Company has received the advance from the Mann Group described above, the Company has at least $10
million in cash and cash equivalents on hand, no material adverse effect on the Company has occurred, the engagement letter between the Company and Greenhill &amp; Co., Inc. (&#147;Greenhill&#148;) has remained in full force and effect and Greenhill
has remained actively engaged in exploring capital structure and financial alternatives on behalf of the Company in accordance with such engagement letter (collectively, the &#147;Extension Conditions&#148;), and (B) amend the Company&#146;s
financial covenant under the Facility Agreement to provide that, if the Extension Conditions remain satisfied, the obligation under the Facility Agreement to maintain at least $25 million in cash (including available borrowings under the Promissory
Note) as of the end of each quarter will be reduced to $10 million as of the last day of each month through October 31, 2017 and as of December 31, 2017. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The foregoing description of the Deerfield Amendment does not purport to be complete and is qualified in its entirety by reference to the Deerfield Amendment,
a copy of which is attached to this report as Exhibit 99.2; the Facility Agreement, a copy of which is attached as Exhibit 99.1 to the Company&#146;s Current Report on Form 8-K filed with the SEC on July 1, 2013; the First Amendment to Facility
Agreement and Registration Rights Agreement, dated as of February 28, 2014, a copy of which is attached as Exhibit 10.39 to the Company&#146;s Annual Report on Form 10-K filed with the SEC on March 3, 2014; and the Second Amendment to Facility
Agreement and Registration Rights Agreement, dated as of August 11, 2014, a copy of which is attached as Exhibit 4.14 to the Company&#146;s Quarterly Report on Form 10-Q filed with the SEC on November 10, 2014. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The information under Item 1.01 above relating to the $19.4 million advance from the Mann Group is incorporated by reference into this Item 2.03. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;3.02 Unregistered Sales of Equity Securities. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The information under Item 1.01 above relating to the Exchange Shares is incorporated by reference into this Item 3.02. The Company relied on the exemption
from registration contained in Section 3(a)(9) of the Securities Act of 1933, as amended, for the issuance of the Exchange Shares. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;5.07 Submission of Matters to a Vote of Security Holders. </B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">(d)</TD>
<TD ALIGN="left" VALIGN="top"></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">At the Company&#146;s 2017 Annual Meeting of Stockholders held on May 18, 2017, the Company&#146;s
stockholders indicated, on an advisory basis, to hold the stockholder advisory vote on executive compensation on an annual basis. As a result, the Company will continue to hold annual stockholder advisory votes on executive compensation until the
Company&#146;s next stockholder advisory vote on the frequency of such stockholder advisory votes, which must be held at least once every six years. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;8.01 Other Events. </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company has engaged
Greenhill as a financial advisor to explore capital structure and financial alternatives on behalf of the Company. The Company does not intend to discuss or disclose further developments related to Greenhill&#146;s engagement until, if ever, the
Company determines that further disclosure is required or appropriate. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">(d) Exhibits. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:28.45pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Exhibit<BR>Number</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:39.50pt; font-size:8pt; font-family:Times New Roman"><B>Description</B></P></TD></TR>


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<TD VALIGN="top" NOWRAP>99.1</TD>
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<TD VALIGN="top">Agreement, dated June 27, 2017, by and between MannKind Corporation and The Mann Group LLC.</TD></TR>
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<TD VALIGN="top" NOWRAP>99.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Exchange and Third Amendment to Facility Agreement, dated as of June 29, 2017, by and among MannKind Corporation, MannKind LLC, Deerfield Private Design Fund II, L.P. and Deerfield Private Design International II, L.P.</TD></TR>
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<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">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. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" COLSPAN="5"><B>MANNKIND CORPORATION</B></TD></TR>
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<TD VALIGN="top">Dated: June&nbsp;29, 2017</TD>
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<TD VALIGN="bottom">By:</TD>
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<TD VALIGN="bottom" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ David Thomson</P></TD></TR>
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<TD VALIGN="bottom">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">David Thomson, Ph.D., J.D.</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Corporate Vice President, General Counsel and Secretary</TD></TR>
</TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EXHIBIT INDEX </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="92%"></TD></TR>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:28.45pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Exhibit<BR>Number</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:39.50pt; font-size:8pt; font-family:Times New Roman"><B>Description</B></P></TD></TR>


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<TD HEIGHT="8" COLSPAN="2"></TD></TR>
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<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Agreement, dated June 27, 2017, by and between MannKind Corporation and The Mann Group LLC.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
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<TD VALIGN="top" NOWRAP>99.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Exchange and Third Amendment to Facility Agreement, dated as of June 29, 2017, by and among MannKind Corporation, MannKind LLC, Deerfield Private Design Fund II, L.P. and Deerfield Private Design International II, L.P.</TD></TR>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>d419252dex991.htm
<DESCRIPTION>EX-99.1
<TEXT>
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<TITLE>EX-99.1</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 99.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AGREEMENT </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">THIS AGREEMENT
(this &#147;<U>Agreement</U>&#148;) is entered into as of June&nbsp;27, 2017, effective as of June&nbsp;30, 2017 (the &#147;Effective Date&#148;), by and between MANNKIND CORPORATION, a Delaware corporation (the &#147;<U>Borrower</U>&#148;) and THE
MANN GROUP LLC (&#147;<U>Lender</U>&#148; and together with the Borrower, the &#147;<U>Parties</U>&#148;). </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>R E C I T A L S: </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, the Borrower issued to Lender that certain Amended and Restated Promissory Note, dated as of October&nbsp;18, 2012 (as the
same may be amended, modified, restated or otherwise supplemented from time to time, the &#147;<U>Promissory Note</U>&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, as of June&nbsp;30, 2017, there will exist $10,716,201.29 of accrued and unpaid interest on the outstanding Advances under the
Promissory Note (the &#147;<U>Outstanding Interest</U>&#148;) and Section&nbsp;2 of the Promissory Note provides that all or any portion of accrued and unpaid interest that becomes due and payable on any Advance may be
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">paid-in-kind</FONT></FONT> and capitalized at any time upon mutual agreement of Lender and Borrower, and any such
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">paid-in-kind</FONT></FONT> interest shall thereupon constitute outstanding principal and an &#147;Advance&#148; for all purposes under the Promissory Note, effective on the date such
interest becomes due and payable or such other date as the Parties mutually agree. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, the Parties wish to capitalize the
Outstanding Interest, effective as of the Effective Date hereof. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, prior to the date hereof, the Borrower delivered a Call
Notice to the Lender to request an Advance in the principal amount of $20,000,000, which Advance (in the reduced amount of $19,428,393.11, as provided for herein) is being made concurrent with this Agreement (the &#147;<U>June 2017
Advance</U>&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, under Section&nbsp;2 of the Promissory Note, the Borrower shall pay interest on the outstanding
principal amount of each Advance from the date thereof until payment in full, on a quarterly basis or such other time as the Parties mutually. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, Lender is a party to that certain Subordination Agreement, dated as of July&nbsp;1, 2013, by and among Lender, Deerfield
Private Design Fund II, L.P. and Deerfield Private Design International II, L.P. (the &#147;<U>Subordination Agreement</U>&#148;), which is unaffected by this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, subject to the terms and conditions specified herein the Borrower wishes to and Lender has agreed to defer the payment of all
interest on the outstanding Advances under the Promissory Note until July&nbsp;1, 2018, unless such payments are otherwise permitted under the Subordination Agreement (the &#147;<U>Deferral</U>&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>NOW, THEREFORE</B>, in consideration of the mutual agreements set forth herein, the Parties agree as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;<U>Defined Terms</U>. Capitalized terms used herein which are defined in the Promissory Note, unless otherwise
defined herein, shall have the meanings ascribed to them in the Promissory Note. The Recitals to this Agreement are incorporated herein in their entirety by this reference thereto. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.&nbsp;&nbsp;&nbsp;&nbsp;<U>Capitalization</U>. Effective as of the Effective Date hereof, all Outstanding Interest is capitalized as an
Advance under the Promissory Note. The Parties agree that: (a)&nbsp;as of December&nbsp;31, </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
2016, there existed $9,281,216.37 of accrued and unpaid interest on the outstanding Advances under the Promissory Note; and (b)&nbsp;as of June&nbsp;30, 2017 there will exist $10,716,201.29 of
accrued and unpaid interest on the outstanding Advances under the Promissory Note. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.&nbsp;&nbsp;&nbsp;&nbsp;<U>June 2017 Advance</U>.
The Parties agree that: (a)&nbsp;as of the date of this Agreement (without giving effect to the capitalization of the Outstanding Interest and the June 2017 Advance), the outstanding Advances under the Promissory Note aggregated $339,855,405.60; (b)
such amount of $339,855,405.60 plus the capitalized Outstanding Interest of $10,716,201.29, results in total Advances (prior to the June 2017 Advance) of $350,571,606.89; (c) as the Promissory Note provides for a maximum of $370,000,000 of aggregate
Advances, the remaining amount available to be borrowed by Borrower under the Promissory Note (after giving effect to the capitalization of the Outstanding Interest) is $19,428,393.11; and (d)&nbsp;the amount of the June 2017 Advance shall be
$19,428,393.11 (i.e., the remaining amount available to be borrowed by Borrower under the Promissory Note). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.&nbsp;&nbsp;&nbsp;&nbsp;<U>Deferral</U>. Effective as of the Effective Date, the Parties agree, subject to the terms of the Subordination
Agreement, to the Deferral. The Lender&#146;s agreement to the Deferral (a)&nbsp;in no way shall be deemed an agreement by the Lender to waive Borrower&#146;s compliance with the above-described interest payment covenants as of all other dates,
(b)&nbsp;shall not limit or impair the Lender&#146;s right to demand strict performance of such covenants as of all other dates and (c)&nbsp;shall not limit or impair the Lender&#146;s right to demand strict performance of all other covenants as of
any date. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">5.&nbsp;&nbsp;&nbsp;&nbsp;<U>Lender Obligations Satisfied; Release</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;Borrower agrees that after giving effect to the capitalization of the Outstanding Interest pursuant to
Section&nbsp;2 hereof and the funding of the June 2017 Advance: (a)&nbsp;the outstanding Advances under the Promissory Note shall aggregate Three Hundred Seventy Million Dollars ($370,000,000); (b) Lender shall have satisfied in full all of its
obligations to make Advances to Borrower under the Promissory Note; and (c)&nbsp;neither Lender nor any of its affiliates shall have any obligation whatsoever to make any further Advances or loans to Borrower under the Promissory Note or otherwise.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to Lender&#146;s funding of the June 2017 Advance and the Deferral, Borrower, on behalf of itself and
each of its predecessors, successors, licensees, transferees, legal representatives, trustees, beneficiaries, successor, assigns, shareholders, directors, officers, partners, employees, subsidiaries, divisions, administrators, affiliates, alter egos
and parent corporations, knowingly and voluntarily waives and forever releases and discharges Lender and each of its predecessors, successors, licensees, transferees, legal representatives, trustees, beneficiaries, successor, assigns, shareholders,
directors, officers, partners, employees, subsidiaries, divisions, administrators, affiliates (including without limitation the Alfred E. Mann Living Trust dated April&nbsp;9, 1999, as last amended and completely restated by the Fifteenth Amendment
to and complete Restatement of Alfred E. Mann Living Trust, dated October&nbsp;13, 2015, and its trustees, Anoosheh Bostani, Michael S. Dreyer and Claude Mann, as well as any successor trustees), alter egos and parent corporations (collectively,
&#147;<U>Lender&#146;s Affiliates</U>&#148;), from any and all, known or unknown, anticipated or unanticipated, suspected or unsuspected, or fixed, conditional or contingent obligations, actions or causes of action at law or in equity, suits, debts,
demands, claims, contracts, covenants, liens, liabilities, losses, costs, expenses (including, without limitation, attorneys&#146; fees) or damages of every kind, nature and description (collectively, &#147;<U>Claims</U>&#148;), arising out of or
relating to (i)&nbsp;the Promissory Note (to the extent the Claims are in existence as of the Effective Date) or (ii)&nbsp;any obligation of Lender or Lender&#146;s Affiliates to make any loans to Borrower under the Promissory Note or otherwise
(collectively, the &#147;<U>Release</U>&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;Borrower acknowledges that it is aware that it or its agents
or employees may hereafter discover facts in addition to or different from those which it now knows or believes to exist with respect </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
to the Promissory Note or Release, but that it is its intention to hereby fully, finally and forever to settle and release all of the Claims known or unknown, suspected or unsuspected (i.e., in
the case of the matters released in item (i)&nbsp;of Section&nbsp;5(b) above, to the extent the Claims are in existence as of the Effective Date) (subject to Lender&#146;s funding of the June 2017 Advance and the Deferral). Upon the advice of legal
counsel, Borrower expressly waives all benefits under Section&nbsp;1542 of the California Civil Code, as well as under any other statutes or common law principles of similar effect of this or any other jurisdiction, to the extent that such benefits
may contravene the provisions of the Release. Borrower hereto acknowledges that it has read and understands Section&nbsp;1542 of the California Civil Code, which provides as follows: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;Borrower represents and warrants to Lender that, and agrees that in executing this Agreement, Borrower:
(i)&nbsp;has received independent legal advice from its attorneys with respect to each aspect of this Agreement; (ii)&nbsp;is not relying upon any representation or statement made by or on behalf of any of the entities and persons released by such
party with respect to any aspect of this Agreement; (iii)&nbsp;assumes the risk of any mistake of fact with regard to any aspect of this Agreement; and (iv)&nbsp;has carefully read and considered this Agreement in its entirety and fully understands
its contents and the significance of each of its aspects. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6.&nbsp;&nbsp;&nbsp;&nbsp;<U>Effectiveness</U>. This Agreement shall become
effective on the Effective Date. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.&nbsp;&nbsp;&nbsp;&nbsp;<U>Effect of this Agreement</U>. Nothing herein shall be deemed to entitle the
Borrower to any future consent, to, or waiver, amendment, modification or other change of, any of the terms or conditions contained in the Promissory Note in similar or different circumstances. Except as expressly stated herein, Lender reserves all
rights, privileges and remedies under the Promissory Note. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">8.&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>. This Agreement shall be
governed by, and construed and enforced in accordance with, the laws of the State of New York, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction. Borrower consents to <I>in personam
</I>jurisdiction of the courts in the State of New York sitting in New York County and of the United States District Court of the Southern District of New York for any legal action or proceeding with respect to this Note. Borrower, by execution and
delivery of this Note, hereby irrevocably accepts in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts. Borrower agrees to reimburse, periodically and upon request, (a)&nbsp;the Lender&#146;s reasonable
expenses, including the reasonable fees and disbursements of Lender&#146;s attorneys, arising in connection with the preparation, negotiation, execution delivery, amendment and administration of this Agreement and related transactions and
(ii)&nbsp;Lender&#146;s expenses, including the fees and disbursements of Lender&#146;s attorneys, in connection with the enforcement of this Agreement or the protection of the Lender&#146;s rights under this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">9.&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors and Assigns</U>. This Agreement shall be binding upon and inure to the benefit of the Borrower and
Lender and their respective successors and assigns; provided that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lender. Lender may assign to one or more other
persons all or a portion of its rights under this Agreement (but not its obligations) with respect to all or a portion of the Advances made by it. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">10.&nbsp;&nbsp;&nbsp;&nbsp;<U>Integration</U>. This Agreement and the Promissory Note reflects the entire understanding of the parties with
respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement or instrument, oral or written, before or after the date hereof. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments, Modification, Etc</U>. No amendment, modification or
waiver of any provision of this Agreement, and no consent to any departure by Lender or Borrower and their assigns therefrom, shall in any event be effective unless the same shall be in writing and signed by the Lender and Borrower, and then such
waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">12.&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>. This Agreement may be executed in several counterparts and all so executed shall constitute
one agreement, binding on all the parties. Signatures of a party to this Agreement which are sent to the other party by facsimile or email transmission (including a scanned PDF file) shall be legally binding as though such party delivered a
manually-executed original, and shall evidence execution, delivery and acceptance by such party. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>[Remainder of Page Intentionally Left
Blank, signature page follows] </B></P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, the undersigned Lender and the Borrower have caused this Agreement to be duly
executed as of the date first written above. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="42%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="4%"></TD>
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<TD VALIGN="top" COLSPAN="3"><B>BORROWER:</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3"><B>LENDER:</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16" COLSPAN="3"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3">MANNKIND CORPORATION</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3">THE MANN GROUP LLC</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">/s/ David Thomson</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">/s/ Anoosheh Bostani</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">David Thomson</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Anoosheh Bostani</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">VP</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Its:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Authorized Signatory</TD></TR>
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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>d419252dex992.htm
<DESCRIPTION>EX-99.2
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 99.2 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EXCHANGE AND THIRD AMENDMENT TO FACILITY AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">This <B>EXCHANGE AND THIRD AMENDMENT TO FACILITY AGREEMENT</B> (this &#147;<B>Agreement</B>&#148;) dated as of June&nbsp;29, 2017, is by and
among MannKind Corporation, a Delaware corporation (the &#147;<B>Borrower</B>&#148;), MannKind LLC, a Delaware limited liability company (&#147;<B>Guarantor</B>&#148;, and together with the Borrower collectively, the &#147;<B>Obligors</B>&#148;),
Deerfield Private Design Fund II, L.P. (&#147;<B>DPDF</B>&#148;) and Deerfield Private Design International II, L.P. (&#147;<B>DPDI</B>&#148; and, together with DPDF, the &#147;<B>Purchasers</B>&#148;). Capitalized terms used herein which are
defined in the Facility Agreement (as defined below), unless otherwise defined herein, shall have the meanings ascribed to them in the Facility Agreement. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>RECITALS</U>: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">A.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower and the Purchasers have entered into that certain Facility Agreement, dated as of July&nbsp;1, 2013, as
amended by the First Amendment to Facility Agreement and Registration Rights Agreement dated as of February&nbsp;28, 2014, and the Second Amendment to Facility Agreement dated as of August&nbsp;11, 2014 (as the same may be further amended, modified,
restated or otherwise supplemented from time to time, the &#147;<B>Facility Agreement</B>&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">B.&nbsp;&nbsp;&nbsp;&nbsp;The Facility
Agreement provides for the issuance of Notes in 4 Tranches of $40,000,000 per Tranche. Prior to the date hereof, the Purchasers have purchased the Tranche 1 Notes, the Tranche 2 Notes, the Tranche 3 Notes and the Tranche 4 Notes in the aggregate
principal amount of $40,000,000 per Tranche. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">C.&nbsp;&nbsp;&nbsp;&nbsp;Prior to the date hereof, the Purchasers have converted
$20,000,000 in principal amount of the Tranche 1 Notes and all of the Tranche 2 Notes and the Tranche 3 Notes into Common Stock, the Tranche 1 Notes have been amended and restated (and are hereinafter referred to as the Amended and Restated Notes),
and the Borrower has repaid $10,000,000 in principal amount of the Amended and Restated Notes, leaving $10,000,000 in principal amount of the Amended and Restated Notes and $40,000,000 in principal amount of the Tranche 4 Notes outstanding. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">D.&nbsp;&nbsp;&nbsp;&nbsp;The Facility Agreement also provides for the issuance of Tranche B Notes. An aggregate of $20,000,000 in principal
amount of Tranche B Notes have been issued to the Purchasers, and the Borrower has repaid $5,000,000 in principal amount of the Tranche B Notes, leaving $15,000,000 in principal amount of the Tranche B Notes outstanding. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">E.&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to this Agreement (and subject to the terms and conditions hereof), the Borrower shall repay an aggregate
of $5,000,000 in principal amount of the Tranche 4 Notes through the exchange of such principal amount for shares of Common Stock, and this Facility Agreement shall be amended to (i)&nbsp;defer certain payments of principal of the Notes and
(ii)&nbsp;make certain other modifications thereto as hereinafter set forth. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>NOW, THEREFORE</B>, in consideration of the foregoing and
the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE I. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>AMENDMENTS OF FACILITY AGREEMENT AND NOTES </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Upon the terms and subject to the conditions set forth in this Agreement the Facility Agreement is hereby amended as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;1.01.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment of Facility Agreement</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">A.&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything contained in Section&nbsp;2.3 of the Facility Agreement to the contrary, $10,000,000 in
principal amount of the Tranche 4 Notes (&#147;<B>Tranche 4 Notes Principal Payment</B>&#148;) due and payable on July&nbsp;18, 2017 shall be deferred to and due and payable on August&nbsp;31, 2017, subject to further deferral as set forth below.
Upon not less than three (3)&nbsp;days&#146; prior written notice by the Borrower to the Purchasers and the delivery on August&nbsp;31, 2017 of written certification by the Borrower to the Purchasers that the Extension Conditions (as defined below)
have been satisfied as of the date of such certification, the Borrower may elect to defer the Tranche 4 Principal Payment from August&nbsp;31, 2017 to October&nbsp;31, 2017; provided, that as of August&nbsp;31, 2017 the Extension Conditions have
been satisfied. The &#147;<B>Extension Conditions</B>&#148; shall mean that (a)&nbsp;at all times after the date of this Agreement to and including the date of the notice, certification or other applicable date, (a)&nbsp;(i) no Event of Default has
occurred and is continuing, (ii)&nbsp;Michael Castagna has continued to be the Chief Executive Officer of the Borrower and neither the Company nor Mr.&nbsp;Castagna has given any notice of any intention to terminate Mr.&nbsp;Castagna&#146;s service
as Chief Executive Officer of the Company, (iii)&nbsp;no Material Adverse Effect shall have occurred and be continuing, (iv)&nbsp;the Borrower has not breached any of its representations, warranties, covenants or agreements contained in this
Agreement, and (v)&nbsp;the engagement letter, dated June&nbsp;1, 2017, between the Borrower and Greenhill&nbsp;&amp; Co. (&#147;<B>Greenhill</B>&#148;), has remained in full force and effect, neither Greenhill nor the Borrower has given any notice
of its intention to terminate such engagement letter, and Greenhill has remained actively engaged in exploring capital structure and financial alternatives on behalf of the Borrower in accordance with such engagement letter, (b)&nbsp;after
June&nbsp;27, 2017, the Borrower has received not less than $19,428,393 in cash provided in respect of additional Mann Debt from The Mann Group LLC&nbsp;(the &#147;<B>Mann Group</B>&#148;), and (c)&nbsp;and the Borrower&#146;s Cash and Cash
Equivalents were not less than $10,000,000 as of the date of the certification. Until paid, the Tranche 4 Notes Principal Payment shall bear interest as provided in the Facility Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">B. Section&nbsp;5.4(j) of the Facility Agreement is hereby deleted in its entirety and the following is inserted in substitution therefor:
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;(j) The amount of Cash and Cash Equivalents on the last day of each fiscal quarter is less than $25,000,000, except in the case of
the period commencing July&nbsp;1, 2017 to and including December&nbsp;31, 2017, if and so long as the Extension Conditions remain satisfied during such period, the amount of Cash and Cash Equivalents as of August&nbsp;31, 2017, September&nbsp;30,
2017, October&nbsp;31, 2017 or December&nbsp;31, 2017 is less than $10,000,000.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">C. The Borrower shall provide the Purchasers prompt
written notice of the failure of the Borrower to maintain any Extension Condition at any time prior to October&nbsp;31, 2017 (and shall contemporaneously make public disclosure thereof), and upon any such failure or breach, regardless of any cure
period provided in respect thereof in the Facility Agreement, the Borrower shall, upon written notice from the Purchasers, immediately repay to the Purchasers the full amount of the Tranche 4 Notes Principal Payment (to the extent not previously so
repaid). </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE II. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>EXCHANGE </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;2.01.&nbsp;&nbsp;&nbsp;&nbsp;<U>Exchange</U>. Subject to the terms and conditions hereof, each Purchaser hereby agrees to
exchange a portion of the principal amount of such Purchaser&#146;s Tranche 4 Notes for the issuance by the Borrower to such Purchaser of the shares of Common Stock (the &#147;<B>Exchange</B>&#148;), as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;<U>Issuance of Shares</U>. Pursuant to the Exchange, which shall be deemed effective and consummated on the date
hereof (immediately following the execution and delivery of this Agreement of all parties hereto), (i) the Borrower shall issue 1,670,251 shares of Common Stock (the &#147;<B>DPDF Exchange Shares</B>&#148;) to DPDF and 1,913,979 shares of Common
Stock (the &#147;<B>DPDI Exchange Shares</B>&#148; and, together with the DPDI Exchange Shares, collectively, the &#147;<B>Exchange Shares</B>&#148;) to DPDI, and, subject thereto and in exchange therefor, (ii)&nbsp;(A) the principal amount of
DPDF&#146;s Tranche 4 Note shall be deemed repaid by $2,330,000 and the principal amount of DPDI&#146;s Tranche 4 Note shall be deemed repaid by $2,670,000, each such deemed repayment to be applied against, and reduce, the principal amount of each
Purchaser&#146;s Tranche 4 Note, applied in the inverse order of maturity of the principal payments due thereunder (i.e., first against the principal payment due on December&nbsp;31, 2019), and shall be reflected by the Borrower in the Register. The
Borrower represents, warrants, covenants and agrees that, in reliance on the Purchasers&#146; representations in Section&nbsp;3.01(e), the Exchange Shares (X)&nbsp;will be freely transferable by the Purchasers, without restriction or limitation
(including any volume limitation) under federal or state securities laws, pursuant to Rule 144 under the Securities Act, and (Y)&nbsp;will not contain or be subject to any legend or stop transfer instructions restricting the sale or transferability
thereof. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;<U>Delivery of Exchange Shares</U>. No later than two (2)&nbsp;Business Days after the date hereof,
the Borrower shall cause the transfer agent for the Common Stock to credit the aggregate number of Exchange Shares to which each Purchaser is entitled pursuant to the Exchange to such Purchaser&#146;s or its designee&#146;s balance account with The
Depository Trust Company through its Deposit/Withdrawal At Custodian system. For the avoidance of doubt, as of effectiveness of the Exchange, each Purchaser shall be deemed for all corporate purposes to have become the legal and record holder of its
Exchange Shares without any further action by any party. In the event that any Exchange Shares are not delivered on a timely basis in accordance herewith, the Purchasers shall have the right to rescind and terminate any or all of this Agreement and
the transactions and amendments contemplated hereby, to exercise any of the remedies available under the Notes in the event of any failure to timely deliver Conversion Shares (as if the Exchange Shares were Conversion Shares) and/or to exercise any
and all other rights and remedies available at law or in equity. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE III. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>REPRESENTATIONS AND WARRANTIES </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;3.01.&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations and Warranties of the Purchasers</U>. Each Purchaser hereby represents and
warrants to the Borrower as of the date of this Agreement as follows: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization and Good Standing</U>.
Such Purchaser is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties
and assets and to carry on its business as currently conducted. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;<U>Authority</U>. Such Purchaser has the
requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and the Transaction Documents (as amended hereby) and otherwise to carry out its obligations hereunder and thereunder. The
execution and delivery of each of this Agreement and by such Purchaser and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of such Purchaser and no further
action is required in connection herewith or therewith. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;<U>Valid and Binding Agreement</U>. This Agreement has
been duly executed and delivered by such Purchaser and constitutes the valid and binding obligations of such Purchaser, enforceable against such Purchaser in accordance with its terms, except: (i)&nbsp;as limited by general equitable principles and
applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other laws of general application affecting enforcement of creditors&#146; rights generally and (ii)&nbsp;as limited by laws relating to the availability of
specific performance, injunctive relief or other equitable remedies. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;<U><FONT STYLE="white-space:nowrap">Non-Contravention</FONT></U>. The execution and delivery of this Agreement and
by such Purchaser and the performance by such Purchaser of its obligations hereunder and under the Transaction Documents amended hereby does not and will not (i)&nbsp;violate any provision of such Purchaser&#146;s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii)&nbsp;conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to
which such Purchaser is subject, or by which any of such Purchaser&#146;s Notes is bound or affected. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(e)&nbsp;&nbsp;&nbsp;&nbsp;<U>Exemption</U>. Such Purchaser has held such Purchaser&#146;s Note of record and beneficially for a period of at
least one year for purposes of Rule 144 under the Securities Act and is not, and during the three-month period prior to the date hereof has not been, an Affiliate of the Borrower. Such Purchaser understands that the Exchange Shares are being
offered, sold, issued and delivered to it in reliance upon specific exemptions from registration or qualification under federal and applicable state securities laws. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(f)&nbsp;&nbsp;&nbsp;&nbsp;<U>Ownership of the Notes</U>. Such Purchaser is the record and beneficial owner of, and has good and valid title
to, such Purchaser&#146;s Notes, free and clear of all Liens, and has full power to dispose thereof and to exercise all rights thereunder (other than as restricted by this Agreement), without the consent or approval of, or any other action on the
part of, any other Person. Other than the transactions contemplated by this Agreement, there is no outstanding contract, vote, plan, pending proposal or other right of any Person to acquire such Purchaser&#146;s Notes or any portion thereof. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(g) <U>Stock Ownership</U>. The execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby will not cause such Purchaser to own, or be treated as owning under the attribution rules of Section&nbsp;871(h)(3)(C) of the Code, 10% or more of the total combined voting power of the outstanding common stock
of the Borrower for purposes of Section&nbsp;871(h)(3) of the Code. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;3.02.&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations and
Warranties of the Obligors</U>. Each Obligor hereby represents and warrants to the Purchasers as of the date of this Agreement as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization and Good Standing</U>. Each Obligor is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;<U>Authority</U>. Each Obligor has the requisite corporate or limited liability company power and authority, as
applicable, to enter into and to consummate the transactions contemplated by this Agreement and the Transaction Documents (as amended hereby) and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this
Agreement by each Obligor and the consummation by it of the transactions contemplated hereby and by the Transaction Documents (as amended hereby) have been duly authorized by all necessary action on the part of each Obligor, and no further action of
any Obligor, its board of directors, managers, members or stockholders, as applicable, is required in connection herewith or therewith. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;<U>Consents</U>. No Obligor is required to obtain any consent from, authorization or order of, or make any filing
or registration with any Governmental Authority or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its respective obligations under or contemplated by this Agreement or the
Transaction Documents (as amended hereby), in each case, in accordance with the terms hereof or thereof. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;<U>Valid and Binding Agreement</U>. This Agreement has been duly executed and delivered by each Obligor and
constitutes the valid and binding obligations of each Obligor, enforceable against each Obligor in accordance with their respective terms, except: (i)&nbsp;as limited by general equitable principles and applicable bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and other laws of general application affecting enforcement of creditors&#146; rights generally and (ii)&nbsp;as limited by laws relating to the availability of specific performance, injunctive relief or other
equitable remedies. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(e)&nbsp;&nbsp;&nbsp;&nbsp;<U><FONT STYLE="white-space:nowrap">Non-Contravention</FONT></U>. The execution and
delivery of this Agreement and the performance by each Obligor of its obligations hereunder and under the Transaction Documents (as amended hereby) does not and will not (i)&nbsp;violate any provision of any Obligor&#146;s organizational documents,
(ii)&nbsp;conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which any Obligor is subject, or by which any property or asset of any
Obligor is bound or </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
affected, (iii)&nbsp;require any permit, authorization, consent, approval, exemption or other action by, notice to or filing with, any court or other federal, state, local or other governmental
authority or other Person, (iv)&nbsp;violate, conflict with, result in a material breach of, or constitute (with or without notice or lapse of time or both) a material default under, or an event which would give rise to any right of notice,
modification, acceleration, payment, cancellation or termination under, or in any manner release any party thereto from any obligation under any permit or contract to which any Obligor is a party or by which any of its properties or assets are
bound, or (v)&nbsp;result in the creation or imposition of any Lien on any part of the properties or assets of any Obligor. No Event of Default exists. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(f)&nbsp;&nbsp;&nbsp;&nbsp;<U>Issuance of Exchange Shares</U>. The Exchange Shares are duly authorized and, when issued in accordance with
this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Borrower, and will not be issued in violation of, or subject to, any preemptive or similar rights of any Person. The Borrower
has reserved from its duly authorized capital stock the Exchange Shares issuable pursuant to this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(g)&nbsp;&nbsp;&nbsp;&nbsp;<U>SEC Reports</U>. The Borrower has filed all reports, schedules, forms, statements and other documents required
to be filed by it under the Securities Act and the Exchange Act, including pursuant to Section&nbsp;13(a) or 15(d) thereof, for the two years preceding the date hereof (the foregoing materials, including the exhibits thereto and documents
incorporated by reference therein, being collectively referred to herein as the &#147;<U>SEC Reports</U>&#148;). None of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(h)&nbsp;&nbsp;&nbsp;&nbsp;<U>Certain Fees</U>. No brokerage or finder&#146;s fees or commissions are or will be payable by the Borrower or
any of its affiliates or representatives to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement. The Purchasers shall have no
obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section&nbsp;3.2(h) that may be due in connection with the transactions contemplated hereby. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(i)&nbsp;&nbsp;&nbsp;&nbsp;<U>Exemption from Registration</U>. No registration under the Securities Act is required for the offer and issuance
of the Exchange Shares by the Borrower to the Purchasers as contemplated hereby. The issuance and sale of the Exchange Shares hereunder does not contravene, or require stockholder approval pursuant to, the rules and regulations of The Nasdaq Stock
Market (&#147;<B>NASDAQ</B>&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(j)&nbsp;&nbsp;&nbsp;&nbsp;<U>No Integrated Offering</U>. Neither the Borrower, nor any of its
affiliates, nor any Person acting on its or their behalf has, directly or indirectly, has made, or will make, any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering and
issuance of the Exchange Shares to be integrated with prior offerings by the Borrower (i)&nbsp;for purposes of the Securities Act and which would require the registration of any such securities under the Securities Act, or (ii)&nbsp;for purposes of
any applicable stockholder approval provisions of NASDAQ. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE IV. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>COVENANTS </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;4.01.&nbsp;&nbsp;&nbsp;&nbsp;<U>Blue Sky Filings</U>. The Borrower shall take such action as is necessary in order to obtain an
exemption for, or to qualify the Exchange Shares and the Conversion Shares for, issuance and sale to the Purchasers under applicable securities or &#147;Blue Sky&#148; laws of the states of the United States, and shall provide evidence of such
actions promptly upon request of any of the Purchasers. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;4.02.&nbsp;&nbsp;&nbsp;&nbsp; <U>Listing</U>. The Borrower has
submitted an application for the listing of the Exchange Shares on NASDAQ and will use its commercially reasonable efforts to secure such listing. The Borrower shall pay all fees and expenses in connection with satisfying its obligations under this
Section&nbsp;4.02. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;4.03.&nbsp;&nbsp;&nbsp;&nbsp;<U>Disclosure; Confidentiality</U>. On or before 7:00 a.m., New York time,
on the first (1<SUP STYLE="font-size:85%; vertical-align:top">st</SUP>) Business Day after the date of this Agreement, the Borrower shall file a Current Report on Form <FONT STYLE="white-space:nowrap">8-K</FONT> describing all the material terms of
the transactions contemplated by this Agreement, attaching this Agreement and disclosing any other presently material <FONT STYLE="white-space:nowrap">non-public</FONT> information (if any) provided or made available to any Purchaser (or any
Purchaser&#146;s agents or representatives) on or prior to the date hereof (the &#147;<B>8</B><B><FONT STYLE="white-space:nowrap">-K</FONT> Filing</B>&#148;). From and after the filing of the <FONT STYLE="white-space:nowrap">8-K</FONT> Filing, the
Borrower shall have disclosed all material, <FONT STYLE="white-space:nowrap">non-public</FONT> information (if any) provided or made available to any Purchaser (or any Purchaser&#146;s agents or representatives) by Borrower or any of its respective
officers, directors, employees, Affiliates or agents in connection with the transactions contemplated by this Agreement or otherwise on or prior to the date hereof. Notwithstanding anything contained in this Agreement to the contrary and without
implication that the contrary would otherwise be true, after giving effect to the <FONT STYLE="white-space:nowrap">8-K</FONT> Filing, the Borrower expressly acknowledges and agrees that no Purchaser shall have (unless expressly agreed to by a
particular Purchaser after the date hereof in a written definitive and binding agreement executed by the Borrower and such particular Purchaser or customary oral (confirmed by <FONT STYLE="white-space:nowrap">e-mail)</FONT> &#147;wall-cross&#148;
agreement (it being understood and agreed that no Purchaser may bind any other Purchaser with respect thereto)), any duty of trust or confidence with respect to, or a duty not to trade on the basis of, any information regarding the Borrower. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Notwithstanding any affirmative disclosure obligations of the Borrower or Guarantor pursuant to the terms of this Agreement or any of the
other Loan Documents or anything else to the contrary contained herein or therein, (a), subject to clause (b)&nbsp;below, each of the Borrower and Guarantor shall not, and shall cause each of its officers, directors, employees, Affiliates and agents
to not, provide any Purchaser with any material <FONT STYLE="white-space:nowrap">non-public</FONT> information with respect to the Borrower from and after the filing of the Form <FONT STYLE="white-space:nowrap">8-K</FONT> Filing with the SEC without
the express prior written consent of such Purchaser, and (b)&nbsp;in the event that the Borrower or Guarantor believes that a notice or communication to any Purchaser contains material, nonpublic information with respect to the Borrower, the
Borrower shall so indicate to such Purchaser prior to the delivery of such notice or communication, and such indication shall provide such Purchaser the means to </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>


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refuse to receive such notice or communication (in which case any obligation of the Borrower to provide such notice to such Purchaser under the Facility Agreement or this Agreement shall be
deemed waived), and in the absence of any such indication, such Purchaser shall be allowed to presume that all matters relating to such notice or communication do not constitute material <FONT STYLE="white-space:nowrap">non-public</FONT> information
with respect to the Borrower. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;4.04.&nbsp;&nbsp;&nbsp;&nbsp;<U>Taxes</U>. The Borrower shall be responsible for paying all
present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment or issuance made under, from the execution, delivery, performance or enforcement of, or otherwise with respect to, this
Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;4.05.&nbsp;&nbsp;&nbsp;&nbsp;<U>Fees and Expenses</U>. The Borrower shall promptly reimburse the Purchasers for
all of their <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">out-of-pocket,</FONT></FONT> costs, fees and expenses, including legal fees and expenses, incurred in connection with the negotiation and drafting of this Agreement and
the consummation of the transactions contemplated hereby. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE V. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ACKNOWLEDMENT OF THE BORROWER AND THE GUARANTOR </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;5.01.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower and the Guarantor irrevocably and unconditionally acknowledge, affirm and covenant to
each Purchaser that: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;such Purchaser is not in default under any of the Transaction Documents and has not
otherwise breached any obligations to the Borrower or the Guarantor; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;there are no offsets, counterclaims
or defenses to the Obligations, including the liabilities and obligations of the Borrower under the Notes and other Transaction Documents (as amended hereby), or to the rights, remedies or powers of such Purchaser in respect of any of the
Obligations or any of the Transaction Documents, and the Borrower and the Guarantor agree not to interpose (and each does hereby waive and release) any such defense, <FONT STYLE="white-space:nowrap">set-off</FONT> or counterclaim in any action
brought by such Purchaser with respect thereto. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE VI. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>CONDITIONS PRECEDENT. </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;6.01.&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions Precedent</U>. The effectiveness of this Agreement is subject to the following
conditions precedent: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;<U>Delivery of Documents</U>. The Borrower and the Purchasers shall each have executed
and delivered this Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;<U>Performance: No Default.</U> The representations and warranties of the
Borrower contained herein shall be true and correct, and the Borrower shall have performed and complied with all agreements and conditions contained in the Facility Agreement and the other Transaction Documents to be performed by or complied with by
the Borrower prior to the date hereof in all material respects. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">8 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;<U>Mann Agreement</U>. The Borrower shall have provided Purchasers
with an agreement from the Mann Group pursuant to which the Mann Group has committed to provide, not less than $19,428,393.11 in additional Mann Debt to the Borrower by no later than June&nbsp;30, 2017, which Mann Debt, for the avoidance of doubt,
will be fully subordinated to the repayment of the Obligations pursuant to a Subordination Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;<U>Reimbursement of Expenses</U>. The Borrower shall have reimbursed the Purchasers for all reasonable <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">out-of-pocket</FONT></FONT> costs, fees and expenses, including legal fees and expenses, in connection with the negotiation, execution and closing of this Agreement. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE VII. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><U>MISCELLANEOUS </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.01.&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>. This Agreement and the Transaction Documents (as amended hereby) constitute
the entire agreement, and supersede all other prior and contemporaneous agreements and understandings, both oral and written, among the Purchasers, the Borrower and Guarantor with respect to the subject matter hereof. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.02.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments and Waivers</U>. No provision of this Agreement may be waived or amended except in a
written instrument signed by the parties hereto. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a
waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.03.&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors and Assigns</U>. All of the covenants and provisions of this Agreement by or for the
benefit of the Purchasers or the Obligors shall bind and inure to the benefit of their respective successors and assigns. No party hereunder may assign its rights or obligations hereunder without the prior written consent of the other parties
hereto. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.04.&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>. Any notice to be given by any party to this Agreement shall be given in
writing and be effected as provided in Section&nbsp;6.1 of the Facility Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.05.&nbsp;&nbsp;&nbsp;&nbsp;<U>Applicable Law; Consent to Jurisdiction</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) As part of the consideration and mutual promises being exchanged and given in connection with this Agreement, the parties hereto agree
that all claims, controversies and disputes of any kind or nature arising under or relating in any way to the enforcement or interpretation of this Agreement or to the parties&#146; dealings, rights or obligations in connection herewith, including
disputes relating to the negotiations for, inducements to enter into, or execution of, this Agreement, and disputes concerning the interpretation, enforceability, performance, breach, termination or validity of all or any portion of this Agreement
shall be governed by the laws of the State of New York without regard to its choice or conflicts of laws principles. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) The parties
hereto agree that all claims, controversies and disputes of any kind or nature relating in any way to the enforcement or interpretation of this Agreement or to the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">9 </P>


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parties&#146; dealings, rights or obligations in connection herewith, shall be brought exclusively in the state and federal courts sitting in The City of New York, Borough of Manhattan. With
respect to any such claims, controversies or disputes, each of the Parties hereby irrevocably: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i)&nbsp;&nbsp;&nbsp;&nbsp;submits itself and its property, generally and unconditionally, to the personal jurisdiction of the
aforesaid courts and agrees that it will not bring any action in any court or tribunal other than the aforesaid courts; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii)&nbsp;&nbsp;&nbsp;&nbsp;waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any
action or proceeding (A)&nbsp;any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve process in accordance with this Section&nbsp;7.05, (B) any claim that it or its
property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment
or otherwise) and (C)&nbsp;to the fullest extent permitted by the applicable law, any claim that (1)&nbsp;the suit, action or proceeding in such court is brought in an inconvenient forum, (2)&nbsp;the venue of such suit, action or proceeding is
improper or (3)&nbsp;this Agreement, or the subject matter hereof, may not be enforced in or by such courts; and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii)&nbsp;&nbsp;&nbsp;&nbsp;WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY DISPUTE ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (I)&nbsp;NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (II)&nbsp;SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III)&nbsp;SUCH PARTY MAKES THIS WAIVER VOLUNTARILY AND (IV)&nbsp;SUCH PARTY HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.05. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Notwithstanding the foregoing in this
Section&nbsp;7.05, a party may commence any action or proceeding in a court other than the above-named courts solely for the purpose of enforcing an order or judgment issued by one of the above-named courts. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.06.&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts; Effectiveness</U>. This Agreement and any amendment hereto may be executed and
delivered in any number counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. In the
event that any signature to this Agreement or any amendment hereto is delivered by facsimile transmission or by <FONT STYLE="white-space:nowrap">e-mail</FONT> delivery of a &#147;.pdf&#148; format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or &#147;.pdf&#148; signature page were an original thereof. No party hereto shall raise the use of a
facsimile machine or <FONT STYLE="white-space:nowrap">e-mail</FONT> delivery of a &#147;.pdf&#148; format data file to deliver a signature to this Agreement or any amendment hereto or the fact that such signature
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">10 </P>


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was transmitted or communicated through the use of a facsimile machine or <FONT STYLE="white-space:nowrap">e-mail</FONT> delivery of a &#147;.pdf&#148; format data file as a defense to the
formation or enforceability of a contract, and each party hereto forever waives any such defense. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.07.&nbsp;&nbsp;&nbsp;&nbsp;<U>No Third Party Beneficiaries</U>. Nothing in this Agreement, express or implied, is intended to
or shall confer upon any Person (other than the parties to this Agreement) any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.08.&nbsp;&nbsp;&nbsp;&nbsp;<U>Specific Performance</U>. The parties to this Agreement agree that irreparable damage would occur
and that the parties to this Agreement would not have any adequate remedy at law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly
agreed that the parties to this Agreement shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, in each case without the necessity of posting
bond or other security or showing actual damages, and this being in addition to any other remedy to which they are entitled at law or in equity. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.09.&nbsp;&nbsp;&nbsp;&nbsp;<U>Effect of Headings</U>. The section and subsection headings herein are for convenience only and
not part of this Agreement and shall not affect the interpretation thereof. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.10.&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>. Whenever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred
upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or
unenforceable provision(s). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.11.&nbsp;&nbsp;&nbsp;&nbsp;<U>Avoidance of Doubt</U>. The parties hereto hereby agree, for the
avoidance of doubt, that (a)&nbsp;the term &#147;<B>Notes</B>&#148; as used in the Transaction Documents shall mean the Notes, as, and to the extent, amended by this Agreement, and (b)&nbsp;the term &#147;<B>Liabilities</B>&#148; and
&#147;<B>Obligations</B>&#148; as used in the Transaction Documents shall include all liabilities and obligations of the Borrower under this Agreement, under the Facility Agreement (as amended hereby) under the Notes (as amended hereby) and under
the other Transaction Documents, and each of the parties hereto agrees not to take any contrary positions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.12.&nbsp;&nbsp;&nbsp;&nbsp;<U>Reservation of Rights</U>. Neither of the Purchasers has hereby waived (a)&nbsp;any breach,
default or Event of Default that may be continuing under any of the Transaction Documents or (b)&nbsp;any of such Purchaser&#146;s rights or remedies arising from any such breach, default or Event of Default or otherwise available under the
Transaction Documents or at law or in equity. Each of the Purchasers expressly reserves all such rights and remedies. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">11 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.13.&nbsp;&nbsp;&nbsp;&nbsp;<U>Further Assurances</U>. The Borrower hereby agrees,
from time to time, as and when requested by any Purchaser, to execute and deliver or cause to be executed and delivered, all such documents, instruments and agreements, including secretary&#146;s certificates, stock powers and irrevocable transfer
agent instructions, and to take or cause to be taken such further or other action, as any Purchaser may reasonably deem necessary or desirable in order to carry out the intent and purposes of this Agreement and the Transaction Documents (as amended
hereby). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.14.&nbsp;&nbsp;&nbsp;&nbsp;<U>No Strict Construction</U>. The language used in this Agreement will be deemed to
be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.15.&nbsp;&nbsp;&nbsp;&nbsp;<U>Interpretative Matters</U>. Unless otherwise indicated or the context otherwise requires,
(i)&nbsp;all references to Sections, Schedules, Appendices or Exhibits are to Sections, Schedules, Appendices or Exhibits contained in or attached to this Agreement, (b)&nbsp;words in the singular or plural include the singular and plural and
pronouns stated in either the masculine, the feminine or neuter gender shall include the masculine, feminine and neuter, (c)&nbsp;the words &#147;hereof,&#148; &#147;herein&#148; and words of similar effect shall reference this Agreement in its
entirety, and (d)&nbsp;the use of the word &#147;including&#148; in this Agreement shall be by way of example rather than limitation. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;7.16.&nbsp;&nbsp;&nbsp;&nbsp;<U>Reaffirmation</U>. Each of the Borrower and the Guarantor, as issuer, debtor, grantor, pledgor,
mortgagor, guarantor or assignor, or in other any other similar capacity in which such Person grants Liens or security interests in its property or otherwise acts as accommodation party or guarantor, as the case may be, hereby (i)&nbsp;acknowledges
and agrees that it has reviewed this Agreement, (ii)&nbsp;ratifies and reaffirms all of its obligations, contingent or otherwise, under each of the Transaction Documents (as amended hereby) to which it is a party (after giving effect hereto), and
(iii)&nbsp;to the extent such Person granted Liens on or security interests in any of its property pursuant to any such Transaction Document as security for or otherwise guaranteed the Obligations under or with respect to the Transaction Documents,
ratifies and reaffirms such guarantee and grant of security interests and Liens and confirms and agrees that such security interests and Liens hereafter secure all of the Obligations (as amended hereby). Each Obligor hereby consents to this
Agreement and acknowledges that this Agreement is a Transaction Document and each of the other Transaction Documents (as amended hereby) remains in full force and effect and is hereby ratified and reaffirmed. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><I>[The remainder of the page is intentionally left blank] </I></B></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">12 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman"><B>IN WITNESS WHEREOF</B>, each party hereto has caused this Exchange Agreement to be duly
executed as of the date first written above. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="12%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="87%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>THE BORROWER:</B></P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:1pt">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B>MANNKIND CORPORATION</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">/s/ David Thomson</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">David Thomson</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Corporate Vice President and General Counsel</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B>THE GUARANTOR:</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B>MANNKIND LLC</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">/s/ Matthew Pfeffer</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Matthew Pfeffer</TD></TR>
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<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Authorized Signatory</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[<I>Signature page to Exchange and Third Amendment Agreement</I>] </P>

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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>PURCHASERS:</B></P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:1pt">&nbsp;</P></TD></TR>
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<TD VALIGN="top" COLSPAN="3"><B>DEERFIELD PRIVATE DESIGN FUND II, L.P.</B></TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Deerfield Mgmt, L.P., its General Partner</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">J.E. Flynn Capital, LLC, its General Partner</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">/s/ David J. Clark</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">David J. Clark</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Authorized Signatory</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B>DEERFIELD PRIVATE DESIGN </B><B>INTERNATIONAL II, L.P.</B></TD></TR>
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<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Deerfield Mgmt, L.P., its General Partner</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">J.E. Flynn Capital, LLC, its General Partner</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">/s/ David J. Clark</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">David J. Clark</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Authorized Signatory</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[<I>Signature page to Exchange and Third Amendment Agreement</I>] </P>
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