Document:

EX-10.3

 Exhibit 10.3 

EXECUTION VERSION 

December 28, 2015 
 Advanced Drainage
Systems, Inc. 
 4640 Trueman Blvd. 
 Hilliard, OH 43026 

 

			
	Re:	  	Amendment No. 9 and Consent to Amended and Restated Private Shelf Agreement

 Ladies and Gentlemen: 

Reference is made to that certain Amended and Restated Private Shelf Agreement, dated as of September 24, 2010, as amended by that
certain Amendment No. 1 to Amended and Restated Private Shelf Agreement dated December 12, 2011, Limited Waiver and Amendment No. 2 to Amended and Restated Private Shelf Agreement dated March 9, 2012, Amendment No. 3 to
Amended and Restated Private Shelf Agreement dated March 30, 2012, Amendment No. 4 to Amended and Restated Private Shelf Agreement dated April 26, 2013, Amendment No. 5 to Amended and Restated Private Shelf Agreement dated
June 12, 2013, including the Supplement thereto dated June 24, 2013, Amendment No. 6 to Amended and Restated Private Shelf Agreement dated September 23, 2013, Amendment No. 7 to Amended and Restated Private Shelf Agreement
dated December 31, 2013, and Amendment No. 8 and Limited Waiver to Amended and Restated Private Shelf Agreement dated August 21, 2015 (as so amended, the “Note Agreement”), between Advanced Drainage Systems, Inc., a
Delaware corporation (the “Company”), on one hand, and Prudential Investment Management, Inc. (“Prudential”) and each other Prudential Affiliate as therein defined which becomes bound by certain provisions thereof
as therein provided, on the other hand. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Note Agreement. 

Pursuant to that certain Consent under Amended and Restated Private Shelf Agreement, dated as of October 26, 2015, Prudential and
the holders of the Notes have extended (A) the time for the delivery of (i) the audited financial statements of the Company for the fiscal year ended on March 31, 2015, certified by independent certified public accountants in
accordance with paragraph 5A(ii) of the Note Agreement (the “2015 Audited Financial Statements”) until November 30, 2015, (ii) the financial statements of the Company for the fiscal quarter ended on June 30, 2015, to
be delivered in accordance with paragraph 5A(i) of the Note Agreement (the “Q1 Quarterly Financial Statements”) until November 30, 2015 and (iii) financial statements of the Company for the fiscal quarter ended
September 30, 2015, to be delivered in accordance with paragraph 5A(i) of the Note Agreement (the “Q2 Quarterly Financial Statements”) until December 31, 2015, (B) (i) the time by which the Excess Leverage Fee,
if any, shall be calculated and paid and (ii) the time for delivery of the Officer’s Certificate pursuant to the last sentence of the definition of “Leverage Ratio” in the Note Agreement, in each case, relating to the fiscal
quarters ended on March 31, 2015 and June 30, 2015, in each case, until the earlier of (x) the date on which the Company delivers the financial statements required by paragraph 5A of the Note Agreement for each such fiscal year or
fiscal quarter, as applicable, and (y) December 30, 2015 and (C) the time by which the Excess Leverage Fee, if any, shall be 

 
calculated and paid, relating to the fiscal quarter ended on September 30, 2015 until the earlier of (i) the date on which the Company delivers the financial statements required by
paragraph 5A of the Note Agreement for such fiscal quarter, as applicable, and (ii) January 30, 2016. 
 The Company has
requested that Prudential and the holders of Notes (A) amend the Note Agreement as set forth herein, (B) further extend the time for the delivery of the 2015 Audited Financial Statements, the Q1 Quarterly Financial Statements and the Q2
Quarterly Financial Statements until January 31, 2016, (C) further extend (i) the time by which the Excess Leverage Fee, if any, shall be calculated and paid relating to the fiscal quarters ended on March 31,
2015, June 30, 2015 and September 30, 2015 and (ii) the time for delivery of the Officer’s Certificate pursuant to the last sentence of the definition of “Leverage Ratio” in the Note Agreement, in each case,
relating to the fiscal quarters ended on March 31, 2015 and June 30, 2015, in each case, until the earlier of (a) the date on which the Company delivers the financial statements required by paragraph 5A of the Note Agreement for each
such fiscal year or fiscal quarter, as applicable, and (b) March 2, 2016 (such earlier date, the “Extension Date”), (D) permit the Company to characterize the Fleet Leases and Aircraft Leases as operating leases for
the fiscal quarter ended on September 30, 2015 solely for the purposes of paragraph 5M of the Note Agreement if the Company delivers an Officer’s Certificate pursuant to the last sentence of the definition of “Leverage Ratio” in
the Note Agreement (as amended by this letter agreement) relating to such fiscal quarter by February 10, 2016 and (E) consent to the payment of the December Dividend (as defined below), and Prudential and the holders of the Notes executing
this letter agreement are willing to agree to such requests on the terms and conditions set forth herein.  
 Accordingly, and in
accordance with the provisions of paragraph 11C of the Note Agreement, the parties hereto agree as follows: 
 SECTION 1.
Amendments. From and after the Effective Date (as defined in Section 4 hereof), the parties hereto agree that the Note Agreement is amended as follows: 

1.1. Paragraph 10B of the Note Agreement is hereby amended by inserting or amending and restating, as the case may be, the following
definitions: 
 “2015 Audited Financial Statements” shall mean the audited financial statements of the
Company for the fiscal year ended on March 31, 2015, certified by independent certified public accountants in accordance with paragraph 5A(ii). 

“Consolidated EBITDAE” for any period of determination shall mean, without duplication, (i) net income,
plus, to the extent reducing net income, the sum, of amounts for (a) consolidated interest expense, (b) charges for federal, state, local and foreign income taxes, (c) total depreciation expense, (d) total amortization expense,
(e) costs and expenses incurred in connection with the Amendment No. 5 Transactions in an aggregate amount not to exceed $2,100,000, (f) non-cash charges reducing net income for such period, (g) ESOP Compensation, (h) ESOP
Dividends on Unallocated Shares, (i) non-cash compensation related to stock options and restricted stock and (j) one-time, nonrecurring expenses incurred during the fiscal quarters ending September 30, 2015, December 31,
2015 and March 31, 2016 related to the restatement of the Transaction 

  
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Parties’ financial statements, minus (ii) non-cash gains increasing net income, in each case of the Company and its Subsidiaries for such period determined and consolidated in
accordance with GAAP. 
 For purposes of calculating Consolidated EBITDAE (x) with respect to a business acquired by the
Transaction Parties or Subsidiaries thereof pursuant to a Permitted Acquisition, Consolidated EBITDAE shall be calculated on a pro forma basis (determined on a basis consistent with Article 11 or Regulation S-X promulgated under the Securities Act
and as interpreted by the staff of the Securities and Exchange Commission), using historical numbers of any business so acquired, in accordance with GAAP as if the Permitted Acquisition had been consummated at the beginning of such period, and
(y) with respect to a business or assets liquidated, sold or disposed of by the Transaction Parties or Subsidiaries pursuant to paragraph 6H, Consolidated EBITDAE shall be calculated on a pro forma basis (determined on the basis stated above),
using historical numbers of any business or assets so liquidated, sold or disposed of, in accordance with GAAP as if such liquidation, sale or disposition had been consummated at the beginning of such period. 

“Leverage Ratio” shall mean ratio of consolidated total Indebtedness of the Company and its Subsidiaries
(excluding (i) any Indebtedness arising from reimbursement obligations (contingent or otherwise) under standby letters of credit in an aggregate amount not exceeding $10,000,000 and (ii) obligations with respect to interest rate swaps,
fuel hedges and other commodity hedging arrangements and related marked-to-market liabilities, but including termination obligations arising by reason of the termination or close out of such interest rate swaps, fuel hedges and other commodity hedge
arrangements the value of which being determined as of such time of such termination or close out in accordance with the terms of such agreements) to Consolidated EBITDAE, calculated as of the end of each fiscal quarter for the four fiscal quarters
then ended. In connection with the Transaction Parties’ financial statements characterizing the Fleet Leases and Aircraft Leases as capital leases, for purposes of this Agreement the calculation of the Leverage Ratio resulting from such
characterization shall only apply to the Leverage Ratio as calculated at the fiscal year ended on March 31, 2015 and at the end of each fiscal quarter thereafter. For the purposes of paragraph 5M of the Note Agreement only, the Leverage Ratio
for the fiscal quarters ended on or before September 30, 2015 (but not any fiscal period ending thereafter) shall be calculated by characterizing the Fleet Leases and the Aircraft Leases as operating leases provided that such
characterization shall only apply to the fiscal quarters ended on (a) March 31, 2015 and June 30, 2015 if the holders of the Notes receive an Officer’s Certificate no later than the earlier of (x) the date on which the
Company delivers the financial statements required by paragraph 5A of the Note Agreement for each such fiscal year or fiscal quarter, as applicable, and (y) March 2, 2016 demonstrating (with computations in reasonable detail) that such
Leverage Ratios did not exceed (I) 3.00 to 1.00 for the fiscal quarter ended on March 31, 2015 and (II) 3.15 to 1.00 for the fiscal quarter ended on June 30, 2015 and (b) September 30, 2015 if the holders of the Notes
receive the 2015 Audited Financial Statements and an Officer’s Certificate no later than February 10, 2016 demonstrating (with computations in reasonable detail) that such Leverage Ratio did not exceed 3.00 to 1.00 for the fiscal quarter
ended on September 30, 2015. 

  
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 1.2. Paragraph 5M of the Note Agreement is hereby amended and restated in its entirety to
read as follows: 
 “5M. Excess Leverage Fee. If the Leverage Ratio as of the end of any fiscal quarter is
greater than 3.00 to 1.00, then, in addition to accruing interest on the Notes, the Company agrees to pay each holder of a Note a fee (the “Excess Leverage Fee”) on the daily average outstanding principal amount of such Note during
such fiscal quarter at a rate per annum of 2.00%, provided that, with respect to the fiscal quarter ended on June 30, 2015, if the 2015 Audited Financial Statements are delivered to each Significant Holder on or prior to
February 10, 2016, the Excess Leverage Fee shall not be payable for such fiscal quarter unless the Leverage Ratio as of June 30, 2015 was greater than 3.15 to 1.00. The Excess Leverage Fee with respect to each Note for any fiscal quarter
shall be calculated on a rate per annum on the same basis as interest on such Note is calculated and shall be paid in arrears on the 45th day after the end of such fiscal quarter. The payment of any Excess Leverage Fee shall not constitute a waiver
of any Default or Event of Default. If for any reason the Company fails to deliver the financial statements required by paragraph 5A hereof for a fiscal quarter by the date the Excess Leverage Fee, if any, would be payable for such fiscal quarter,
the an Excess Leverage Fee shall be payable for such fiscal quarter.” 
 SECTION 2. Consents. Effective upon the
Effective Date: 
 (a) Prudential and the holders of Notes party hereto consent to (i) an extension of the time period
within which the Company is required to deliver the 2015 Audited Financial Statements, the Q1 Quarterly Financial Statements and the Q2 Quarterly Financial Statements, and, in each case, the compliance certificate related thereto pursuant to the
penultimate sentence of paragraph 5A of the Note Agreement, until January 31, 2016, and hereby waive any Default or Event of Default resulting solely from the Company’s failure to comply with paragraphs 5A(i) and 5A(ii) of the Note
Agreement within the time periods previously provided; provided, however, that, the failure of the Company to deliver the 2015 Audited Financial Statements, the Q1 Quarterly Financial Statements and the Q2 Quarterly Financial
Statements and, in each case, the compliance certificate related thereto pursuant to the penultimate sentence of paragraph 5A of the Note Agreement, to each Significant Holder on or before 11:59 P.M., New York City time, on January 31, 2016,
shall constitute a Default under the Note Agreement and an Event of Default upon expiration of the grace period provided for in paragraph 7A(vi) of the Note Agreement. 

(b) Notwithstanding anything to the contrary contained in the Note Agreement or any prior consent under the Note Agreement, the
Excess Leverage Fee, if any, for the fiscal quarters ended on March 31, 2015, June 30, 2015 and September 30, 2015 shall be calculated and paid for each such fiscal quarter on or prior to the Extension Date; provided that,
notwithstanding the foregoing, solely for purposes of paragraph 5M of the Note Agreement, in the event the 2015 Audited Financial Statements are not delivered to each Significant Holder on or prior to February 10, 2016, the Excess Leverage Fee
shall be conclusively deemed to be applicable for the fiscal quarters ended on June 30, 2015 and September 30, 2015 and such Excess Leverage Fees shall be due and payable on February 10, 2016 for such fiscal quarters. 

  
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 (c) On December 15, 2015, the Company paid a quarterly cash dividend of
$0.05 per share to its shareholders of record at the close of business on December 1, 2015 (the “December Dividend”). The payment of the December Dividend is not permitted by paragraph 6F of the Note Agreement, and the Company
has requested the consent of Prudential and the holders of the Notes to the payment of such December Dividend. Prudential and the holders of the Notes party hereto hereby consent to the payment of the December Dividend. Prudential and the holders of
the Notes party hereto hereby waive any Default or Event of Default resulting solely from the Transaction Parties’ non-compliance with paragraph 6F of the Note Agreement with respect to the payment of the December Dividend. 

(d) The foregoing consents are limited to the specific provisions referenced above and do not constitute a consent to the
non-compliance with any other provision of the Note Agreement or any other Transaction Document, nor do such consents indicate any agreement on the part of Prudential or any holder of a Note to grant any such consent in the future, and the foregoing
limited waiver shall be limited precisely as written and shall relate solely to the Note Agreement in the manner and to the extent described herein, and nothing in this letter agreement shall be deemed to (i) constitute a consent to or waiver
of any Defaults or Events of Default existing under the Note Agreement or the other Transaction Documents (other than in the manner and to the extent described in the foregoing limited waiver), or (ii) prejudice any right or remedy that
Prudential or any holder of any Note may now have (after giving effect to the foregoing limited waiver) or may have in the future under or in connection with the Note Agreement or any other Transaction Document. 

SECTION 3. Representations and Warranties. The Company represents and warrants to Prudential and each holder of a Note that
(i) the execution and delivery of this letter agreement has been duly authorized by all necessary corporate action on behalf of the Company and each Guarantor, (ii) this letter agreement has been executed and delivered by a duly authorized
officer of the Company and each Guarantor, (iii) the Company and each Guarantor has obtained all authorizations, consents, and approval necessary for the execution, delivery and performance of this letter agreement and such authorizations,
consents and approval are in full force and effect, (iv) since March 31, 2015, no Material Adverse Effect shall have occurred with respect to the Company or any of the Guarantors and (v) after giving effect hereto (a) each
representation and warranty set forth in paragraph 8 of the Note Agreement is true and correct as of the date of the execution and delivery of this letter agreement by the Company with the same effect as if made on such date (except to the extent
that such representations and warranties expressly refer to an earlier date, in which case they were true and correct as of such earlier date and except that the representation and warranty set forth in: (1) paragraph 8D shall be interpreted to
be addressing only the Company and its Material Subsidiaries, (2) paragraph 8F shall be interpreted to be addressing only the Company and its Material Subsidiaries and (3) paragraph 8Q shall be interpreted to be addressing only the Company
and the Guarantors), (b) no Event of Default or Default exists and (c) neither the Company nor any Subsidiary has paid or agreed to pay, and the Company and its Subsidiaries will not pay or agree to pay, any fees or other

  
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consideration to the Bank Agent, any Bank or any lender under the Mexicana Credit Agreement for or with respect to the amendments to the Credit Agreement or the Mexicana Credit Agreement referred
to in Section 4.2 below other than the legal fees paid to counsel for the Banks, Bank Agent and such lenders and the amendment fee referred to in Section 5 of the amendment to the Credit Agreement referred to in Section 4.2(a) below.

 SECTION 4. Conditions Precedent. The amendments in Section 1 and consents in Section 2 of this letter agreement
shall become effective on the date (the “Effective Date”) that each of the following conditions has been satisfied: 

4.1. Documents. Prudential and each holder of a Note shall have received counterparts of this letter agreement executed by
Prudential, the Required Holder(s), the Company and each Guarantor. 
 4.2. Credit Agreement and Mexicana Credit Agreement.
Prudential and each holder of a Note shall have received an executed copy of an amendment to each of (a) the Credit Agreement and (b) the Mexicana Credit Agreement, each in form and substance consistent with the terms set forth herein and
satisfactory to Prudential and the Required Holder(s). 
 4.3. Representations. All statements set forth in Section 3
shall be true and correct as of the Effective Date, except to the extent that any such statement expressly relates to an earlier date (in which case such statement was true and correct on and as of such earlier date). 

4.4. Proceedings. All corporate and other proceedings taken or to be taken in connection with the transactions contemplated by
this letter agreement shall be satisfactory to Prudential and each holder of a Note and its counsel, and Prudential and each holder of a Note shall have received all such counterpart originals or certified or other copies of such documents as they
may reasonably request. 
 SECTION 5. Reference to and Effect on Note Agreement; Ratification of Note Agreement. Upon the
effectiveness of the amendments and consents to the Note Agreement made in this letter agreement, each reference to the Note Agreement in any other document, instrument or agreement shall mean and be a reference to the Note Agreement as modified by
this letter agreement. Except as specifically set forth in Sections 1 and 2 hereof, the Note Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects. Except as specifically stated in this letter
agreement, the execution, delivery and effectiveness of this letter agreement shall not (a) amend the Note Agreement or any Note, (b) operate as a waiver of any right, power or remedy of any holder of a Note, or (c) constitute a
waiver of, or consent to any departure from, any provision of the Note Agreement or Note at any time. Nothing contained in this letter agreement shall be construed as a course of dealing or other implication that Prudential and any holder of a Note
has agreed to or is prepared to grant any consents or agree to any amendments to the Note Agreement or any Note in the future, whether or not under similar circumstances.  

SECTION 6. Expenses. The Company hereby confirms its obligations under the Note Agreement, whether or not the transactions
hereby contemplated are consummated, to pay, promptly after request by Prudential or any holder of a Note, all reasonable out-of-pocket costs  

  
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and expenses, including attorneys’ fees and expenses, incurred by Prudential or such holder of a Note in connection with this letter agreement or the transactions contemplated hereby, in
enforcing any rights under this letter agreement, or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this letter agreement or the transactions contemplated hereby. The obligations of
Company under this Section 6 shall survive transfer by any holder of a Note of any Note and payment of any Note. 
 SECTION 7.
Governing Law. THIS LETTER AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK (EXCLUDING ANY CONFLICTS OF LAW RULES WHICH WOULD OTHERWISE CAUSE
THIS AGREEMENT TO BE CONSTRUED OR ENFORCED IN ACCORDANCE WITH, OR THE RIGHTS OF THE PARTIES TO BE GOVERNED BY, THE LAWS OF ANY OTHER JURISDICTION). 

SECTION 8. Reaffirmation. Each Guarantor hereby consents to the foregoing amendments and consents to the Note Agreement and
hereby ratifies and reaffirms all of their payment and performance obligations, contingent or otherwise, under the Guaranty Agreement after giving effect to such amendments and consents. Each Guarantor hereby acknowledges that, notwithstanding the
foregoing amendments and consents, that the Guaranty Agreement remains in full force and effect and is hereby ratified and confirmed. Without limiting the generality of the foregoing, each Guarantor agrees and confirms that the Guaranty Agreement
continues to guaranty the Guarantied Obligations (as defined in the Guaranty Agreement) arising under or in connection with the Note Agreement or any of the Shelf Notes, as the same are amended by this letter agreement. 

SECTION 9. Counterparts; Section Titles. This letter agreement may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument. Delivery of an executed counterpart of a
signature page to this letter agreement by facsimile shall be effective as delivery of a manually executed counterpart of this letter agreement. The section titles contained in this letter agreement are and shall be without substance, meaning or
content of any kind whatsoever and are not a part of the agreement between the parties hereto. 
 [Signature Pages Follow] 

  
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	Very Truly Yours,
	
	PRUDENTIAL INVESTMENT MANAGEMENT, INC.
		
	By:	 	 /s/ David Quackenbush

		 	Vice President
	
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
		
	By:	 	 /s/ David Quackenbush

		 	Vice President
	
	PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY
		
	By:	 	Prudential Investment Management, Inc.,
as investment manager
		
	By:	 	 /s/ David Quackenbush

		 	Vice President
	
	PRUCO LIFE INSURANCE COMPANY
		
	By:	 	 /s/ David Quackenbush

		 	Vice President

 AMENDMENT NO. 9 AND CONSENT TO 

AMENDED AND RESTATED PRIVATE SHELF AGREEMENT 

			
	Accepted and Agreed:
	
	COMPANY:
	
	ADVANCED DRAINAGE SYSTEMS, INC.
		
	By:	 	 /s/ Mark B. Sturgeon

	Name:	 	Mark B. Sturgeon
	Title:	 	Executive Vice President
	
	GUARANTORS:
	
	 STORMTECH LLC
 HANCOR
HOLDING CORPORATION

		
	By:	 	 /s/ Mark B. Sturgeon

	Name:	 	Mark B. Sturgeon
	Title:	 	Secretary and Treasurer

 AMENDMENT NO. 9 AND CONSENT TO 

AMENDED AND RESTATED PRIVATE SHELF AGREEMENTEX-10.1

 Exhibit 10.1 
  

 
 SCIENTIFIC ADVISOR AGREEMENT 

THIS SCIENTIFIC ADVISOR AGREEMENT (this
“Agreement”) is made and entered into as of December 31, 2015 (the “Effective Date”), by and among Zosano Pharma Corporation, a Delaware corporation having its principal place of business
at 34790 Ardentech Court, Fremont, California 94555 (the “Parent”), ZP Opco, Inc., a Delaware corporation and wholly owned subsidiary of Parent (the “Company”), and PETER
DADDONA, an individual residing at 35 Anderson Way, Menlo Park, California 94025 (the “Advisor”). The Parent, Company and Advisor may be referred to herein individually as a
“Party” or collectively as the “Parties.” 
 Recitals 

WHEREAS, the Advisor is currently a director of the Parent, an employee of the Company and the Chief
Scientific Officer of both the Parent and the Company; 
 WHEREAS, the Advisor desires (i) to
resign as an employee of the Company and as an officer of the Parent and the Company, effective as of the Effective Date; and (ii) commencing on January 1, 2016, to provide scientific advisory services to the Company subject to the term
and conditions set forth herein; 
 WHEREAS, the Company desires to retain Advisor to provide
scientific advisory services subject to the terms and conditions set forth herein; 
 WHEREAS, the
Advisor desires to continue to serve as a director of the Parent in accordance with the bylaws of the Parent; 
 NOW
THEREFORE, in consideration of the foregoing premises and the mutual covenants set forth below, the Parties hereby agree as follows: 
  

	 	1.	Scientific Advisory Services. 

 1.1 As further provided in Section 9.2, effective as
of the Effective Date, the Advisor hereby resigns as an employee and officer of the Company and as an officer of the Parent. 
 1.2
Commencing on January 1, 2016 (the “Start Date”), the Company hereby retains Advisor, and Advisor hereby agrees to perform such scientific advisory services for the Company as set forth in Section 1 of Exhibit
A (collectively, the “Services”). Advisor shall report to the Parent’s Chief Executive Officer or, if requested to do so by the Chief Executive Officer, report to the Parent’s Chief Scientific Officer. The
specific nature and amount of the Services shall be as determined by the Company during the term of this Agreement; provided, however, that Advisor agrees that during the Term (as defined in Section 9.1 below), Advisor shall be available
to provide Services, in person, for an average of two days per week (the “Advisor Time Commitment”). Advisor agrees to perform the Services, and provide the results thereof, with the highest degree of professional
skill and expertise. Advisor may use the assistance of other individuals who are not employees of the Company only with the prior written consent of the Company. 

 1.3 For the avoidance of doubt, the Advisor acknowledges that he is currently a director of the
Parent and will continue to serve as a director of the Parent, in accordance with the Parent’s bylaws, until the earliest of his death, resignation (as a director), or removal. Advisor acknowledges that he will not qualify as an
“independent director” within the meaning of NASDAQ listing rule 5605(a)(2) and will not be eligible for any of the compensation that the Parent pays to its independent directors. 

 

	 	2.	Compensation. 

 Section 2 of Exhibit A attached hereto sets forth the amount
and timing of payment for the Services and reimbursable expenses. The Company will reimburse Advisor for expenses actually incurred by Advisor in performing the Services, including but not limited to travel and accommodation expenses, so long as
such expenses are reasonable and necessary as determined by the Company and approved in advance by Company. Advisor shall maintain adequate books and records relating to any expenses to be reimbursed and shall submit requests for reimbursement in a
timely manner and form acceptable to the Company. 
  

	 	3.	Independent Contractor. 

 The Parties understand and agree that Advisor is an independent
contractor and not an agent or employee of the Company. Advisor has no authority to obligate the Company by contract or otherwise. Advisor will not be eligible for any employee benefits, nor will the Company make deductions from Advisor’s fees
for taxes or insurance (except as otherwise required by applicable law or regulation). Any payroll and employment taxes, insurance, and benefits imposed on Advisor due to activities performed hereunder will be the sole responsibility of Advisor.

  

	 	4.	Recognition of Company’s Rights; Nondisclosure. 

 Advisor recognizes that the
Company is engaged in a continuous program of research and development respecting its present and future business activities. Advisor agrees as follows: 

4.1 At all times during the term of Advisor’s association with the Company and thereafter, Advisor will hold in strictest confidence and
will not disclose, use, lecture upon or publish any of the Company’s Proprietary Information (defined below), except to the extent such disclosure, use or publication may be required in direct connection with Advisor’s performing requested
Services for the Company or is expressly authorized in writing by an officer of the Company. It is understood that the Proprietary Information will remain the sole property of the Company. Advisor further agrees to take all reasonable precautions to
prevent any unauthorized disclosure of the Proprietary Information including, but not limited to, having each employee, agent or representative of Advisor, if any, with access to any Proprietary Information execute a nondisclosure agreement
containing provisions in the Company’s favor substantially similar to Sections 4 and 13 of this Agreement. 
 4.2 The term
“Proprietary Information” shall mean any and all trade secrets, confidential knowledge, know-how, data or other proprietary information or materials of the Company, the Parent or any of their respective affiliates. By way of
illustration but not limitation, Proprietary Information includes: (i) inventions, ideas, samples, prototypes, devices, hardware, software, electronic components and materials, and procedures for producing any such

 
items, as well as data, know-how, improvements, inventions, discoveries, developments, designs and techniques; (ii) information regarding plans for research, development, new products,
marketing and selling activities, business models, budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers; and (iii) information regarding the skills and compensation of employees or consultants of the
Company. 
 4.3 In addition, Advisor understands that the Company has received and in the future will receive from third parties
confidential or proprietary information (“Third Party Information”) subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the
term of Advisor’s association with the Company and thereafter, Advisor will hold Third Party Information in the strictest confidence and will not disclose or use Third Party Information, except in connection with Advisor’s performing
requested Services for the Company, or as expressly authorized in writing by an officer of the Company. 
  

	 	5.	Intellectual Property Rights. 

 5.1 Advisor shall promptly and fully disclose to the
Company any and all ideas, inventions, technologies, discoveries, improvements, know-how and techniques that the Advisor conceives, reduces to practice or develops during the term of this Agreement, alone or in conjunction with others, and in any
way related to or arising from (i) the Company’s Field (as defined in Section 6.1), (ii) the Services, or (iii) Proprietary Information (collectively, the “Inventions”). Advisor agrees to keep and
maintain adequate and current records (in the form of notes, sketches, drawings or in any other form that may be required by the Company) of all Services provided and results thereof and such records shall be available to and remain the sole
property of the Company at all times. Advisor agrees that any and all Inventions, including any related patents, copyrights, trade secrets and trademark rights, shall be the sole and exclusive property of the Company. 

5.2 Advisor hereby assigns to the Company his entire right, title and interest in and to all Inventions. Advisor hereby designates the Company
as his agent for, and grants to the Company a power of attorney, which power of attorney shall be deemed coupled with an interest, solely for the purpose of effecting the foregoing assignment from the Advisor to the Company. Advisor will perform
other activities necessary to effect the intent of this Section 5.2. 
 5.3 Advisor further agrees to cooperate and provide reasonable
assistance to the Company to obtain and from time to time enforce United States and foreign patents, copyrights, and other rights and protections claiming, covering or relating to the Inventions in any and all countries. 

5.4 Advisor agrees to submit to the Company any proposed publication that contains any discussion relating to the Company, Proprietary
Information, Inventions or work performed by Advisor for the Company hereunder. Advisor further agrees that no such publication shall be made without the prior written consent of the Company, which consent shall not be unreasonably withheld. 

	 	6.	Noncompetition and Nonsolicitation of Employees. 

 6.1 During the term of this Agreement,
Advisor will not, without the prior consent of the Company’s Board of Directors, engage in any commercial business activity that competes in any way with any business then being conducted or planned by the Company relating to the research,
discovery, development, manufacture or commercialization of transdermal drug delivery systems or patches for administering pharmaceutical compounds to humans (the “Company’s Field”). 

6.2 During the term of this Agreement and for one (1) year after its termination, Advisor will not personally or through others recruit,
solicit or induce any employee of the Company to terminate his or her employment with the Company. 
 6.3 If any restriction set forth in
Sections 6.1 and 6.2 is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend
only over the maximum period of time, range of activities or geographic area as to which it may be enforceable. 
  

	 	7.	No Conflicting Obligation. 

 7.1 Advisor represents that Advisor’s performance of
all of the terms of this Agreement and the performing of the Services for the Company do not and will not breach or conflict with any agreement with a third party, including an agreement to keep in confidence any proprietary information of another
entity acquired by Advisor in confidence or in trust prior to the date of this Agreement. 
 7.2 Advisor hereby agrees not to enter into any
agreement that conflicts with this Agreement. 
  

	 	8.	No Improper Use of Materials. 

 Advisor agrees not to bring to the Company or to use in
the performance of Services for the Company any materials or documents of a present or former employer of Advisor, or any materials or documents obtained by Advisor from a third party under a binder of confidentiality, unless such materials or
documents are generally available to the public or Advisor has authorization from such present or former employer or third party for the possession and unrestricted use of such materials. Advisor understands that Advisor is not to breach any
obligation of confidentiality that Advisor has to present or former employers or clients, and agrees to fulfill all such obligations during the term of this Agreement. 
  

	 	9.	Term and Termination. 

 9.1 Advisor’s Services under this Agreement shall commence
on the Effective Date and shall continue for a term of one (1) year from and after the Effective Date (the “Term”), unless earlier terminated as provided below in this Section 9. Unless earlier terminated as
provided below in this Section 9 or otherwise agreed upon in writing by the Company and Advisor, this Agreement shall automatically terminate upon the expiration of the Term (which, for the avoidance of doubt, is January 1, 2017). 

 9.2 Effective December 31, 2015 (the “Resignation Date”), Advisor
hereby resigns from his position as Chief Scientific Officer of the Company and Parent and from any other positions (excluding director) Advisor may currently hold as a fiduciary of the Company or of Parent. Advisor and the Company hereby
acknowledge and agree that the Resignation Date is the effective date of termination of Advisor’s employment with the Company and its affiliates, and that such resignation is a voluntary termination of employment by Advisor other than for Good
Reason pursuant to the last sentence of Section 4(b) of that certain employment letter agreement dated May 11, 2012 among the Company and Advisor, as amended by the letter amendments thereto dated January 6,
2014, January 16, 2014 and May 29, 2015 (as so amended, the “Employment Agreement”). In connection with Advisor’s voluntary termination of employment, (i) the Company (x) hereby waives the thirty
(30)-day written notice period described in the last sentence of Section 4(b) of the Employment Agreement and (y) acknowledges its obligations under Section 5(d) of the Employment Agreement to pay Advisor his accrued but unpaid base
salary and any accrued but unpaid vacation time, in each case earned by Advisor while an employee of the Company through the Resignation Date (less applicable taxes and withholding); and (ii) Advisor acknowledges that the Company shall have no
obligation to Advisor for any severance payments under the Employment Agreement and, except for any right Advisor may have under the federal law known as “COBRA” to continue participation in the Company’s group health and dental plans
at Advisor’s cost, Advisor’s benefits shall terminate in accordance with the terms of the applicable benefit plans. In addition, Advisor acknowledges (i) his obligation, in accordance with Section 5(f) of the Employment
Agreement, to continue to fully perform following the Resignation Date Advisor’s obligations under Section 3 of the Employment Agreement and (ii) that the Advisor’s Incentive Stock Option dated June 15, 2012 between the
Company and Advisor (the “2012 Option”) will lose its status as an incentive stock option 90 days’ after the Resignation Date and will be treated as a non-qualified stock option from that point forward. For the avoidance
of doubt, the 2012 Option will continue to vest pursuant to the vesting schedule described therein for so long as the Advisor continues to provide Services to the Company or Parent pursuant to this Agreement. 

9.3 Either Party may terminate this Agreement for any reason upon 30 days’ written notice provided to the other Party. 

9.4 The Company will amend the 2012 Option to provide as follows: 

(a) In the event that the Advisor provides Services for the entire Term then Advisor may exercise the 2012 Option at any time prior to
December 31, 2017; 
 (b) In the event that Company terminates this Agreement without cause (e.g., no breach by Advisor) prior to the
expiration of the Term then Advisor may exercise the 2012 Option at any time prior to the first anniversary of the date of termination; and 

(c) In the event that Advisor terminates the Agreement, or if the Company terminates it for cause (e.g., breach by Advisor), prior to the
expiration of the Term then Advisor may exercise the 2012 Option at any time within 90 days after the date of termination. 
 9.5 The
obligations set forth in Sections 4, 5, 6 and 9 through 16 will survive any termination or expiration of this Agreement. Upon termination of this Agreement, Advisor 

 
will cease work immediately after giving or receiving such notice of termination, unless otherwise advised by the Company, and promptly deliver to the Company all documents and other materials of
any nature pertaining to the Services, together with all documents and other items containing or pertaining to any Proprietary Information. 
  

	 	10.	Assignment. 

 The rights and liabilities of the Parties hereto shall bind and inure to
the benefit of their respective successors, heirs, executors and administrators, as the case may be; provided that, as the Company has specifically contracted for Advisor’s Services, Advisor may not assign or delegate Advisor’s
obligations under this Agreement either in whole or in part without the prior written consent of the Company. The Company may assign its rights and obligations hereunder to any person or entity that succeeds to all or substantially all of the
Company’s business. Any assignment not in accordance with this Section 10 shall be void. 
  

	 	11.	Legal and Equitable Remedies. 

 Because Advisor’s Services are personal and unique
and because Advisor may have access to and become acquainted with the Proprietary Information of the Company, the Company shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable
relief without prejudice to any other rights and remedies that the Company may have for a breach of this Agreement. 
  

	 	12.	Compliance with Applicable Laws and Obligations. 

 Advisor will perform the Services in
compliance with all applicable laws. 
  

	 	13.	Governing Law; Severability. 

 This Agreement shall be governed by and construed
according to the laws of the State of Delaware, without regards to conflicts of laws rules. If any provision of this Agreement is found by a court of competent jurisdiction to be unenforceable, that provision shall be severed and the remainder of
this Agreement shall continue in full force and effect. 
  

	 	14.	Complete Understanding; Modification. 

 This Agreement, including the Exhibits mentioned
herein, and the Employment Agreement constitute the final, exclusive and complete understanding and agreement of the Parties hereto and supersede all prior understandings and agreements with respect to the subject matter hereof. Any waiver,
modification or amendment of any provision of this Agreement shall be effective only if in writing and signed by the Parties hereto. 
  

	 	15.	Notices. 

 Any notices required or permitted hereunder shall be given to the appropriate
Party at the address listed on the first page of this Agreement, or such other address as the Party shall specify in writing pursuant to this notice provision. Such notice shall be deemed given upon personal delivery to the appropriate address or
three days after the date of mailing if sent by certified or registered mail. 

	 	16.	Counterparts. 

 This Agreement may be executed in one or more counterparts each of which
will be deemed an original, but all of which together shall constitute one and the same instrument. 

 IN WITNESS WHEREOF, the
Parties hereto have executed this Scientific Advisor Agreement as of the date first written above. 
  

							
	ZOSANO PHARMA CORPORATION	 		 	ADVISOR
				
	By:	 	 /s/ Vikram Lamba
	 		 	 /s/ Peter Daddona

	Name:	 	Vikram Lamba	 		 	Peter Daddona
	Title:	 	Chief Executive Officer	 		 	
			
	ZP OPCO, INC.	 		 	
				
	By:	 	 /s/ Vikram Lamba
	 		 	
	Name:	 	Vikram Lamba	 		 	
	Title:	 	Chief Executive Officer	 		 	

 EXHIBIT A 

SCOPE AND COMPENSATION 

1. Services: Advisor shall perform scientific advisory services as requested by the Company, including without limitation: 

 

	 	•	 	Support senior executives of the Company in connection with the management of the Company research and development operations; 

  

	 	•	 	Support senior executives of the Company in connection with developing, acquiring, protecting, licensing and enforcing intellectual property rights; 

 

	 	•	 	Support senior executives of the Company in connection with strategy and tactics for obtaining from regulators, inside and outside of the U.S., permission to conduct clinical trials of Company products and to
commercialize products; 

  

	 	•	 	Provide advice regarding the Company’s research and development and intellectual property strategies; 

  

	 	•	 	Provide scientific advice and services; and 

  

	 	•	 	Provide advice to the CEO and CSO regarding the selection of, and performance of, members of the Company’s scientific advisory board and the Company’s research and development personnel. 

2. Consideration: The Company will compensate Advisor at the rate of $12,667 per month, payable in arrears, for all Services performed
and invoiced under this Agreement. On a monthly basis, Advisor shall submit to the Company a written invoice for services performed under this Agreement, which lists the dates that such services were performed. The Company will pay such invoices
promptly following receipt, subject to the approval of an authorized representative of the Company. 
 3. Expenses that will be
reimbursed: The Company shall reimburse Advisor for business expenses that are reasonable and necessary for Advisor to perform, and were incurred by Advisor in the course of the performance of Advisor’s duties pursuant to this Agreement and
in accordance with the Company’s general policies. Such expenses shall be reimbursed upon Advisor’s submission of vouchers and an expense report in such form as may be required by the Company consistent with the Company’s policies in
place from time-to-time.

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