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This poll is assuming your entire squad dies, and there is no one to revive.
Regarding Option #3; You would have to restart your mission, and reclaim the items in the spot you die.
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Well we haven't seen anything received from killing lesser enemies, but killing the mini-bosses would reward you with loot. So i'd assume the checkpoints,currency, and experience rewards are after you pick up loot from the mini-bosses. As for death penalty you could lose experience and currency upon respawn as well as restarting the mission with the enemies regenerated.