Document:

EX-10.1

 Exhibit 10.1 

[***] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10). Such excluded information is not material and would
likely cause competitive harm to the registrant if publicly disclosed. 
  
 

 
 September 13, 2018 

BUSINESS UNDERSTANDING AGREEMENT 

CSP Technologies, Inc. (“CSP”), and Zosano Pharma Corp. (“Zosano”) agree to enter into this Business Understanding Agreement with respect
to the following: 
 Scope: [***] and [***] of the [***] (collectively, the “Product”). 

Overview: 
  

	•	 	 CSP is a supplier of injection-molded components and assemblies. 

 

	•	 	 CSP performs design and development services to create opportunities to manufacture products on a commercial
basis. Manufacturing is CSP’s primary business and CSP expects to manufacture the Product [***] for commercialization. 

  

	•	 	 Zosano is a clinical-stage biopharmaceutical company focused on providing systemic administration of therapeutics
to patients using its proprietary Adhesive Dermally-Applied Microarray (“ADAM”) technology. Zosano is focused on developing products where rapid administration of established molecules with known safety and efficacy profiles provides an
increased benefit to patients, for markets where patients remain underserved by existing therapies. 

 Project: 

 

	•	 	 CSP shall work with Zosano in a strictly confidential manner to [***] in order to ramp up production and produce
[***] batches of the Product. 

  

	•	 	 Budgetary cost assumptions for Tech Transfer are outlined in Annex 1. 

 

	•	 	 CSP shall work with Zosano to build and qualify [***] including [***]. 

 

	•	 	 CSP shall work with Zosano to qualify all utilities required for the operation of [***] and [***].

  

	•	 	 CSP shall work with Zosano to establish Master Batch Records and Standard Operating Procedures for producing the
Product. 

 [***] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10).
Such excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed. 
  
 

 
  

	•	 	 [***] is responsible for providing, all validation protocols and test methods relating to the forming and
cleaning processes required to produce the Product. [***] will author IQ and OQ documentation for the [***], and [***] will execute these protocols with [***]’s assistance. CSP and Zosano will jointly develop [***] for the [***] for [***] to
execute. [***] will transfer to [***] validation protocols and test methods relating to incoming materials required to produce the Product, and [***] will transfer to [***] finished Product testing protocols. [***] will conduct release testing on
incoming materials and finished Product accordingly. 

  

	•	 	 [***] shall work with [***] to establish a quality system that must comply with [***]. 

 

	•	 	 Zosano and CSP will organize a team comprising of appropriate members from each company. This team will agree to
a plan for the Project, which will include a Project schedule and a description of the Project deliverables. 

  

	•	 	 [***] will fund the infrastructure required to support the Project as outlined in Annex 1.

  

	•	 	 Upon Tech Transfer, CSP will supply Product, which shall include the [***] of the Product, using agreed upon
specifications, for [***] and [***] batches as per the unit pricing outlined in Annex 1. 

  

	•	 	 To the extent Zosano owns any intellectual property relating to the Product or the processes required to produce
the Product, Zosano will grant CSP a royalty free license to produce the Product on behalf of Zosano or its customers. 

 Supply
Agreement: It is the intention of CSP and Zosano that the parties will negotiate and execute a Supply Agreement for commercial supply of the Product. The Supply Agreement will address the following points: 

 

	•	 	 The parties will enter into a Supply Agreement with terms addressing supply and delivery, warranties, indemnity,
liability, and termination. Such terms shall be in accordance with industry standards. 

  

	•	 	 CSP will be the [***] manufacturer of the Product. The Supply Agreement will set forth the rights and remedies of
the parties in the event that CSP is unable to provide the quality and quantity of Product required by the Supply Agreement for an indefinite period of time and, as a result, [***]. 

 

	•	 	 CSP will supply Product to support commercial volumes [***] as per the unit pricing outlined in Annex 1.

 [***] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10).
Such excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed. 
  
 

 
  

	•	 	 To the extent Zosano owns any intellectual property relating to the Product or the processes required to produce
the Product, Zosano will grant CSP a royalty free license to produce the Product on behalf of Zosano or its customers. 

  

	•	 	 [***] will pay for the equipment outlined in Annex 2 required to produce and perform quality tests on the
Product. [***] will also pay for any additional equipment as mutually agreed to by the parties that may be necessary to produce and perform the quality tests. 

 

	•	 	 [***] shall own the equipment and will be responsible for the cost of maintenance activities that are beyond
typical preventative maintenance activities. At the conclusion of the Tech Transfer Phase, CSP and Zosano will work together to develop a budget for these activities. 

 

	•	 	 Zosano will be responsible for compliance with all regulatory requirements relating to the Project and the
Product, however, CSP will maintain its facilities and equipment therein, in compliance with local and federal regulations. 

  

	•	 	 [***] will be responsible for any services and/or materials supplied by third party suppliers, which are required
for CSP to supply Product. 

  

	•	 	 The initial term of the Supply Agreement shall commence on the date of commercial manufacturing and shall be for
a duration equal to the period of time required for CSP to produce, and Zosano to purchase, 25 million units of Product. Upon expiration of the initial term of the Supply Agreement, the Agreement shall automatically renew for successive terms
of [***], unless either party provides the other party with a notice of non- renewal at least [***] prior to the end of the current term. 

 

	•	 	 If Zosano, or a third party that acquires Zosano, wishes to terminate the Supply Agreement prior to the
expiration of the initial term, such party will pay CSP a termination fee equal to $500,000 for every 5 million units of Product short of the minimum purchase quantity of 25 million units of Product. For example, if such party wishes to
terminate the Supply Agreement after CSP has supplied only 10 million units of Product, then such party will pay CSP a termination fee in the amount of $1,500,000. 

Annex 1 
  

	•	 	 The pricing set forth in Annex 1 is effective for [***] from the date of the last signature to this
Business Understanding Agreement. Thereafter, the pricing may be subject to increase due to inflation. The pricing will be adjusted based on the immediately preceding [***] period in the [***]. 

 [***] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10).
Such excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed. 
  
 

 
  

 This Business Understanding Agreement is signed below on the dates set forth below by an authorized
representative for CSP and Zosano: 
  

									
	CSP Technologies, Inc.	 		  	Zosano Pharma Corp.
					
	By:	 	 /s/ John Belfance
	 	        	  	By:	 	 /s/ John Walker

					
	Date:	 	09/28/2017	 		  	Date:	 	9/27/18

 

 
  

 ANNEX 1 

Omitted pursuant to Regulation S-K, Item 601(a)(5). 

  
 

 
  

 ANNEX 2 

Omitted pursuant to Regulation S-K, Item 601(a)(5).EX-10.2

 Exhibit 10.2 

[***] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10). Such
excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed. 
 July 31, 2020

 AMENDMENT NO. 1 TO BUSINESS UNDERSTANDING AGREEMENT 

CSP Technologies, Inc. (“CSP”), and Zosano Pharma Corp. (“Zosano”) agree to enter into this Amendment No. 1 to Business Understanding
Agreement (this “Amendment”), amending the Business Understanding Agreement (the “BUA”) dated September 13, 2018 between CSP and Zosano. Except as otherwise defined herein, all capitalized terms used herein are used as
defined in the BUA. 
 Introduction: Since the date of the BUA, the parties have been working toward a goal of ramping up production of the
Product to reach commercial operation. During that time the anticipated services to be provided by CSP and other aspects of the Project and the transactions contemplated by the BUA have evolved, and to reflect those changes, the parties have agreed
to adjust the pricing contemplated by Annex 1 to the BUA. 
 Agreement: In recognition of the changes referred to above and for other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 
 1. The Unit Pricing for Commercial
Production of the Product as set forth in Annex 1 to the BUA is hereby amended by, in each case, increasing the Unit Pricing set forth in said Annex 1 by the related Price Adjuster amount set forth in Exhibit I hereto, for the specified volume of
production in each of the first [***] years of Commercial Production of the Product. In order to determine the Price Adjuster for each year, no later than the [***], Zosano will provide CSP an estimate of Product quantity to be purchased during the
coming year. Throughout the year, that estimate will be used to invoice the applicable Price Adjuster amount. No later than [***] after the end of the year, the parties will true up the Price Adjuster to reflect the actual volume of Product
purchased. 
 2. Pursuant to the BUA, the initial Unit Pricing set forth in Annex 1 is effective for [***] years from the date of the BUA, and pricing is to
be adjusted based on changes in the Consumer Price Index. To the extent the Unit Pricing is adjusted pursuant to the BUA, this Amendment does not impact any such changes, but the Price Adjuster specified by Exhibit I hereto will be added to the Unit
Pricing as so adjusted. 
 3. Also pursuant to the BUA, if Zosano wishes to terminate the Supply Agreement (or ceases to purchase Product from CSP if the
parties do not enter into a Supply Agreement) for any reason other than due to CSP’s material breach prior to the time that CSP has produced, and Zosano has purchased, a minimum of 25 million units of Product, Zosano is required to pay to
CSP certain amounts as set forth in the BUA. No such payments will be owed if Zosano terminates the Supply Agreement in connection with CSP’s material breach. In addition to the amounts specified in the BUA, if (a) Zosano [***] ceases to
purchase Product from CSP if the parties do not enter into a Supply Agreement) for any reason other than (i) CSP’s material breach, or (ii) because Zosano does not obtain FDA approval of the Product, or (b) [***], or (c) [***], in
each case, [***], Zosano will pay to CSP an amount equal to the difference between $4,600,000 and the amount paid prior to such termination. No such payments will be owed if Zosano terminates the Supply Agreement in connection with CSP’s
material breach. 

 [***] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10).
Such excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed. 
  

 4. Except as otherwise set forth herein, the BUA and all terms set forth therein shall remain in full force
and effect. 
 In witness whereof, the undersigned have executed this Amendment as of the date set forth above. 

 

									
	CSP Technologies, Inc.	 	        	  	Zosano Pharma Corp.
					
	By:	 	 /s/ John Belfance
	 		  	By:	  	 /s/ Steven Lo

					
	Date:	 	07/27/2020	 		  	Date:	  	31 July 2020

 EXHIBIT I 

Omitted pursuant to Regulation S-K, Item 601(a)(5).

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