Document:

ex_165794.htm

Exhibit 10.1

 

SEVERANCE AGREEMENT AND RELEASE

 

This Severance Agreement and Release (the “Agreement”) is made and entered into by Matthew T. Sheehan (“Executive”) and Primo Water Corporation (the “Company”) (together, the “Parties”).

 

WHEREAS, Executive has served as the Chief Executive Officer of the Company, in accordance with the terms of the June 10, 2013 Employment Agreement executed by Company and the Executive, as amended by the October 31, 2016 Amendment to the Employment Agreement executed by Company and the Executive (together, the “Employment Agreement”).

 

WHEREAS, Executive, in exchange for the agreed upon, good and valuable consideration contained herein, has agreed to enter into this Agreement to fully and finally resolve any and all claims, issues, demands, causes of action and controversies Executive may have against the Company under the terms and conditions contained herein.

 

In consideration of the foregoing, the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1.     SEPARATION. Executive’s employment with the Company will terminate effective as of November 1, 2019 (the “Termination Date”). All compensation and benefits cease as of the Termination Date, except as expressly provided in this Agreement or as otherwise required by law. The Termination Date will be deemed the effective date of Executive’s termination of employment for all purposes. Executive shall have no authority to act on behalf of the Company or to bind it in any way after the close of business on the Termination Date.

 

2.     RESIGNATION FROM BOARD. Executive hereby acknowledges and agrees that he has resigned from all director positions with the Board of Directors of the Company (the “Board”) and any of its subsidiaries, effective as of the Termination Date.

 

3.     PAYMENT THROUGH TERMINATION DATE. Regardless of whether Executive signs this Agreement, Executive will receive:

 

(a)     All base salary earned through the Termination Date, less applicable taxes and deductions, all of which payments shall be made on the Company’s next regularly scheduled payroll date after the Termination Date;

 

(b)     Payment for all accrued and unused vacation earned through the Termination Date, which shall be paid in a lump sum on the Company’s next regularly scheduled payroll date after the Termination Date;

 

(c)     Payment of a prorated annual bonus, based on actual performance of the Company in 2019 pursuant to the Company’s 2019 annual incentive plan, as determined by the Board in its discretion and payable at the time when any such bonuses are otherwise determined for the Company’s senior executives; and

 

1

 

 

(d)     Reimbursement for customary business expenses incurred in performing Executive’s duties in accordance with Company’s applicable policies, provided that Executive’s request for reimbursement and supporting documentation is delivered to the Company on or before November 6, 2019.

 

By signing this Agreement, Executive acknowledges that, except for any payments owed under this Agreement, Executive is owed no further compensation or benefits related to Executive’s employment with the Company and that Executive has been properly paid for all past wages and benefits. Nothing in this Agreement shall affect any vested benefits that Executive is entitled to receive under any other applicable Executive benefit plan not otherwise covered in this Agreement. Vested benefits under applicable Executive benefit plans remain governed by the terms of those plans. Pursuant to Executive’s rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), after the Termination Date, Executive will have the opportunity to elect to continue any group medical, dental, and vision coverage for himself and any eligible dependents, if applicable. Documents describing the ability to continue the Executive’s medical benefits under COBRA will be provided to Executive by the Company under separate cover.

 

4.     DEFERRED COMPENSATION. The Parties acknowledge and agree that the Executive retains 290,296 deferred common stock units under the Company Executive Deferred Compensation Plan (“DCP”), which will be paid to Executive in accordance with the Executive’s Election Notice for the 2015 Plan Year. Nothing in this Agreement releases or waives Executive’s rights to any deferred compensation to which Executive is entitled under the DCP.

 

5.     SEVERANCE BENEFITS. Provided that within twenty-one (21) days following Executive’s receipt of this Agreement, Executive delivers to the Company a fully executed copy of this Agreement and permits it to become effective in accordance with its terms, and provided that Executive complies with and performs all material terms of this Agreement, the Company agrees to pay or provide Executive with the following payments and benefits as severance benefits:

 

(a)     Severance pay in the total amount of Four Hundred and Sixty-Four Thousand, Nine Hundred and Seventy-Two Dollars ($464,972), which is equal to one (1) year of Executive’s salary as of the Termination Date, less applicable withholdings required to be so deducted or withheld under applicable law, to be paid to Executive in one lump sum payment on December 31, 2019 (the 60th day following the Termination Date);

 

(b)     A payment in the amount of Ninety-Nine Thousand and Eighteen Dollars ($99,018), equivalent to the average annual bonus earned by Executive in the two most recent fiscal years ending prior to the Termination Date, to be paid to Executive in one lump sum payment on December 31, 2019 (the 60th day following the Termination Date);

 

(c)     A payment in the amount of Twenty-Two Thousand, Seven Hundred and Eighty-Six Dollars and Sixty-Two Cents ($22,786.62), equivalent to an estimated twelve (12) months of COBRA costs for Executive and his dependents and grossed up for applicable tax withholdings required to be deducted or withheld under applicable law, to be paid to Employee in one lump sum payment on the Company’s first regularly scheduled payday after the Effective Date; and

 

(d)     Immediate vesting of any equity compensation awards granted by the Company (a) that were otherwise scheduled to vest within six months after the termination date for all awards that have a monthly or quarterly vesting schedule and (b) that were otherwise scheduled to vest at the next vesting date for all awards that have an annual vesting schedule (which, for the avoidance of doubt, shall not include any awards under the Company’s Long Term Performance Plan (the “LTPP”)).

 

2

 

 

(e)     Through the sixth anniversary of the Termination Date, the Company shall maintain coverage for the Executive as a named insured on all directors’ and officers’ insurance maintained by the Company for the benefit of its directors and officers on at least the same basis as all other covered individuals and provide the Executive with at least the same corporate indemnification as it provides to other senior executives.

 

(f)     Reimbursement of outplacement assistance for Executive of up to $5,000, provided that Executive submits proof of such costs to the Company.

 

Executive acknowledges and agrees that the severance benefits afforded under this Section 5 exceed what Executive is otherwise entitled to receive, and are in lieu of any other compensation or benefits to which Executive otherwise might be entitled, and payment of the severance benefits is conditioned upon Executive’s compliance with the terms of this Agreement. Executive further acknowledges and agrees that the Company shall withhold from the payments and benefits described in this Agreement all taxes, including income and employment taxes, allowed to be so deducted or withheld under applicable law. Executive agrees that Executive shall be solely responsible for any taxes that may be due and owing by Executive as a result of any payment of monies under this Agreement.

 

6.     TERMINATION OF SEVERANCE BENEFITS. Executive agrees that the benefits provided by the Company under Section 5 will be terminated by the Company as follows:

 

(a)     If Executive has not returned this Agreement signed by Executive on or before the twenty-first (21st) day after Executive receives a copy of it, or if Executive revokes the Agreement during the seven (7) days after signing it, then all benefits provided under Section 5 shall be forfeited and not paid.

 

(b)     If Executive breaches Executive’s obligations under this Agreement, the Company may immediately terminate all payments and benefits provided pursuant to Section 5, as liquidated and agreed damages, without limiting the Company’s rights at law or equity.

 

7.     COMPREHENSIVE RELEASE AND WAIVER.

 

(a)     Parties’ Intent. It is the intent of the Parties that the following comprehensive general release and waiver be construed to effectuate the broadest possible release and/or waiver of rights permitted under the laws of North Carolina and the United States of America. Executive agrees that Executive has entered into this Agreement as a compromise and in full and final settlement of all Claims (as defined below) Executive may have against the Company and Executive further agrees that any and all existing or potential issues that Executive may have arising out of or related to the Company are hereby fully resolved. Executive also agrees that, although Executive may hereafter discover Claims presently unknown or unsuspected, or new or additional facts from those which Executive now knows or believes to be true, Executive intends to provide a complete waiver of all Claims based on any facts and circumstances, whether known or unknown, up to and including the date that Executive signs this Agreement.

 

3

 

 

(b)     General Release of Liability by Executive. Executive, on Executive’s own behalf and on behalf of Executive’s heirs, personal representatives, successors and assigns, hereby releases, waives, and forever discharges the Primo Water Corporation and each of its affiliated entities (including all subsidiaries), and each and every one of their respective present and former directors, officers, members, employees, agents, insurers, predecessors, successors and assigns (the “Released Parties”), of and from, to the maximum extent legally permissible, any and all claims, demands, actions, causes of action, damages, costs and expenses which Executive now has or may have by reason of anything occurring, done or omitted to be done as of or prior to the Signature Date including, but not limited to:

 

i.     any and all claims related to Executive’s employment with the Company and the termination of same;

 

ii.     any and all claims arising out of or related to Executive’s Employment Agreement;

 

iii.     any and all claims for breach of any express or implied contract, whether written or oral, interference with contractual relations, wages or benefits owed or additional compensation or benefits other than the compensation and benefits set forth in this Agreement, including but not limited to wages, commissions, deferred compensation, bonuses, incentive compensation, equity compensation, or other benefits of any kind;

 

iv.     any and all claims relating to employment practices or policies of the Company or its affiliates;

 

v.     any and all claims arising under any local, state or federal legislation or rules, including, but not limited to, claims under the Employee Retirement Income Security Act, the Family and Medical Leave Act, Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Americans with Disabilities Act, any act relating to military service, any North Carolina law related to human rights and/or civil rights, the Retaliatory Employment Discrimination Act, the North Carolina Persons with Disabilities Protection Act, the North Carolina Equal Employment Practices Act, and any other federal, state or local law or regulation prohibiting employment discrimination or retaliation based on any protected status or otherwise governing the employment relationship between Executive and the Company, and amendments to these statutes and laws;

 

vi.     claims under the common law, including, but not limited to, negligence, gross negligence and any other tort claims, intentional infliction of emotional distress, defamation, assault, battery, invasion of privacy, and false imprisonment; civil conspiracy, duress, promissory or equitable estoppel, fraud, mistake, misrepresentation, violation of public policy, retaliation, personal injury, breach of fiduciary duty, bad faith, and any other wrongful conduct; and

 

vii.     claims under any other federal, state or local laws, statutes, regulations, ordinances, or other similar provisions ((i) through (vii), collectively, the “Claims”).

 

(c)     Exceptions. Notwithstanding anything contained in this Section 7, this release does not extend to and has no effect upon (i) any breach of this Agreement, (ii) any vested benefits that Executive may have pursuant to the terms of any pension or retirement plan sponsored by the Company, subject to and in accordance with the terms of any applicable plan, (iii) any claims which cannot by law be released (such as statutory claims for worker’s compensation/disability insurance benefits and unemployment compensation), or (iv) Executive’s right to file a charge or complaint, or participate in an investigation, with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state, or local governmental agency or commission, provided, however, this Agreement does waive Executive’s right to receive any monetary damages associated with any such charge, complaint, investigation, or other action, with the exception of any monetary damages or award from the Securities and Exchange Commission.

 

4

 

 

(d)     Non-Litigation Covenant. Executive further agrees not to sue the Company or any of the Released Parties with regard to any claim released above. Executive understands that the provisions of this Agreement shall not be construed as preventing Executive from filing a charge with the Equal Employment Opportunity Commission, the Securities and Exchange Commission, or similar agency, only to the extent Executive is permitted to do so by law, notwithstanding any provisions of this Agreement to the contrary. However, Executive expressly releases, waives, and disclaims any right to compensation or other benefit that may otherwise inure to Executive as a result of any such charge or administrative complaint, with the exception of any monetary damages or award from the Securities and Exchange Commission. Executive understands that the provisions of this paragraph mean that Executive cannot bring a lawsuit or arbitration in any forum against the Released Parties for any reason for claims Executive may have as of the date of this Agreement.

 

8.      COMPANY INFORMATION AND PROPERTY.

 

(a)     On or before the Termination Date, Executive agrees that Executive will turn over and return to the Company all of the Company’s documents, manuals, plans, work notes, or other business papers and all copies of same, whether paper or electronic, which are in Executive’s possession, along with any and all property of the Company, including but not limited to keys, badges, credit cards, computers, and cell phones.

 

(b)     Executive acknowledges that Executive has been given access to certain highly-sensitive confidential and proprietary information belonging either to the Company or to other parties who may have furnished such information under obligations of confidentiality, relating to and used in the Company’s business (collectively, “Confidential Information”). Executive acknowledges that, unless otherwise generally available to the public, Confidential Information includes, but is not limited to, the following categories of information and material, regardless of how such information or material may exist from time to time and whether in electronic, print, or other form, which constitute valuable, special, and unique assets of the Company or its affiliates that have been developed or acquired through substantial investments of time, money, and resources:

 

i.     information relating to the operation of the Company’s business, methods of operation, technology, or marketing, including, but not limited to, customer information, including names and contact information, preferences, pricing, buying habits, and the need and methods of fulfilling those needs; prices, renewal dates, and other terms of customer and supplier contracts and proposals; the specific terms of any agreement or arrangement between the Company and its customers, employees, contractors, subcontractors, suppliers or vendors; pricing policies, methods of delivering services and products, marketing and sales strategies, product technology and product development strategies; vendor or supplier lists; employment records and employee lists; forecasts and budgets; product performance and technical information; business strategies, management plans and policies; marketing and sales plans and policies; material and equipment costs; financial information or data; and business methods and finances;

 

5

 

 

ii.     information of a technical or proprietary nature developed by the Company and its employees or acquired by the Company from any licensor, licensee, customer, supplier, vendor, employee, contractor, or subcontractor, on a confidential basis or protected basis and related to the Company’s business, including but not limited to any scientific or technical analyses, ideas, concepts, designs, specifications, requirements, prototypes, techniques, technical data or know-how, formulae, methods, discoveries, improvements, equipment, research and development, and inventions related to the Company’s business; and

 

iii.     information relating to the Company’s business that is of commercial value on the basis of not being publicly known, including but not limited to Trade Secrets, as defined below.

 

Confidential Information does not include any information that is generally available to the public other than as a result of disclosure by Executive in violation of this Agreement or disclosure that Executive knows is by another party in violation of any other agreement with the Company.

 

(c)     Executive shall not disclose Confidential Information to any person, firm, corporation, association, or other entity not employed by or affiliated with the Company for any reason or purpose whatsoever and will not use Confidential Information except on behalf of the Company. Executive shall promptly surrender to the Company upon the Termination Date all Confidential Information in Executive’s possession or control, including all passwords used by Executive to access facilities, networks, or phone systems of the Company. Upon the Termination Date, Executive shall cease using any secure website or web portals, e-mail system, or phone system or voicemail system of the Company.

 

(d)     At all times after the Termination Date, Executive shall not disclose any Trade Secret (defined below) to any third party, and shall not use any Trade Secret for the benefit of Executive or for others, without the prior written consent of the Company. For purposes of this Agreement, the term “Trade Secret” means any item of Confidential Information that constitutes a trade secret of the Company under the common law or statutory law of the State of North Carolina. The Parties acknowledge and agree that this Agreement is not intended to, and does not, alter either the Company’s rights or Executive’s obligations under any state or federal statutory or common law regarding trade secrets and unfair trade practices.

 

(e)     It is acknowledged and agreed that any breach or threatened breach of the provisions of this Section 8 would cause irreparable injury to the Company and that money damages would not provide an adequate remedy to the Company. In the event of a breach or threatened breach by Executive of this Section 8, the Company shall be entitled to an injunction restraining Executive from disclosing Confidential Information or Trade Secrets, and, further, from accepting employment with or rendering services to any such third party to whom Confidential Information or Trade Secret has been disclosed or is threatened to be disclosed by Executive. Nothing contained in this Section 8 shall be construed as prohibiting the Company from pursuing any other equitable or legal remedies for any such breach or threatened breach, including recovery from Executive of any monetary damages that the Company may suffer by reason of any such breach or threatened breach.

 

6

 

 

(f)     Notwithstanding the foregoing, this Section 8 does not prohibit Executive from responding truthfully (i) to any inquiry by any governmental or regulatory agency, (ii) if required by legal process, and then only to the extent required, and provided that Executive gives written notice to the Company prior to the date a response is due and cooperate if any of the Released Parties (as defined below) elects to contest such legal process or (iii) as otherwise required by law. In accordance with disclosures required under the Defend Trade Secrets Act of 2016, Executive is hereby notified that Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, if Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney and use the trade secret information in the court proceeding, if Executive (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.

 

9.     NON-DISPARAGEMENT.

 

(a)     Executive represents and warrants that since receiving this Agreement, Executive:

 

	 	
			(i)

				
			has not made, and going forward will not make, disparaging, defaming, derogatory or negative remarks about the Company or its products, services, business practices, directors, officers, managers or employees to anyone, including via any social media or other online platform; and

			

 

	 	
			(ii)

				
			has not taken, and going forward will not take, any action that may impair the relations between the Company and its vendors, customers, employees, or agents or that may be detrimental to or interfere with, the Company or its business.

			

 

Nothing in this section nor in this Agreement is intended, nor shall be construed, to prohibit Executive from any communications to, or participation in any investigation or proceeding conducted by, any governmental agency or prohibit Executive from engaging in any legally protected activity.

 

10.     VOTING AGREEMENT. Executive agrees that at any annual or special meeting of the Company’s stockholders occurring before the first anniversary of the date hereof Executive shall vote all shares of the Company’s common stock over which Executive has voting control and shall take all other necessary or desirable actions within Executive’s control to vote in favor of the proposals recommended by the Board and to elect to the Board any individual nominated by the Board, as reflected in the Company’s proxy statement for such meeting.

 

11.     CONTINUING OBLIGATIONS. Executive acknowledges and agrees that the post-employment restrictive covenants and obligations contained in Section 9 of the Employment Agreement survive the termination of Executive’s employment and are hereby incorporated by reference as material terms of this Agreement.

 

7

 

 

12.     BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns. This Agreement shall be binding upon and inure to the benefit of Executive and Executive’s heirs, executors and administrators. Executive may not assign any of Executive’s rights or obligations under this Agreement without the written consent of the Company.

 

13.     APPLICABLE LAW. This Agreement will be governed and interpreted by the laws of the State of North Carolina without giving effect to any choice or conflict of law principles of any jurisdiction. The Parties agree that any dispute hereunder would be subject to the jurisdiction and venue of the courts of or for the County of Forsyth, North Carolina.

 

14.     OTHER. Except as expressly provided in this Agreement, this Agreement supersedes all other understandings and agreements, oral or written, between the parties and constitutes the sole agreement between the parties with respect to its subject matter; provided that, nothing in this Agreement does or shall be construed to supersede Executive’s rights with respect to the DCP and vested rights under the LTPP or any restricted stock unit or option award, if any. Each party acknowledges that no representations, inducements, promises or agreements, oral or written, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement and no agreement, statement or promise not contained in the Agreement shall be valid or binding on the parties unless such change or modification is in writing and is signed by the parties. Executive’s or the Company’s waiver of any breach of a provision of this Agreement shall not waive any subsequent breach by the other party. If a court of competent jurisdiction holds that any provision or sub-part thereof contained in this Agreement is invalid, illegal or unenforceable, that invalidity, illegality or unenforceability shall not affect any other provision in this Agreement.

 

15.     NO REPRESENTATION AS TO TAX CONSEQUENCES. Executive acknowledges that neither the Company, nor anyone acting on its behalf, has made any representations as to the federal, state, or local tax consequences or tax treatment of any payments being made under the terms of this Agreement. Executive further agrees that the proper reporting and payment of all federal, state, and local tax obligations, as well as the tax consequences arising from this Agreement, are solely Executive’s responsibility. The Company hereby expressly advises Executive of the right to seek tax and/or financial advice from a professional of Executive’s choice as to tax matters. Executive further acknowledges by Executive’s signature below that Executive understands that Executive has the right, and has been afforded the opportunity prior to signing this Agreement, to seek advice from a tax professional of Executive’s choice as to any tax matters related to the payments set forth above. It is intended that the payments and benefits under this Agreement be exempt from or, to the extent not exempt, comply with, the provisions of Section 409A of the Internal Revenue Code (herein referred to as “Section 409A”). This Agreement shall be administered in a manner consistent with this intent, and any provision or ambiguity that would cause the Agreement to fail to be so exempt or compliant shall have no force and effect until amended to comply with Section 409A. For purposes of clarity, it is the intent of this Agreement that all payments of severance benefits hereunder fall within the exemption from Section 409A pursuant to the short-term deferral rule thereunder and, to the extent not so exempt, fall within the exemption from Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9) and, to the extent not so exempt, comply with Section 409A. Each payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2).

 

8

 

 

16.     PROVISIONS RELATING TO ADEA RELEASE. Executive represents to the Company that Executive is aware, understands and agrees that:

 

(a)     Executive is voluntarily entering into and signing this Agreement;

 

(b)     The claims waived, released and discharged in the above Section 7 of this Agreement include any and all claims Executive has or may have arising out of or related to Executive’s employment with the Company and the termination of that employment, including any and all claims under the Age Discrimination in Employment Act (the “ADEA”);

 

(c)     Those claims waived, released and discharged in Section 7 do not include, and Executive is not waiving, releasing or discharging, any claims that may arise after the Signature Date;

 

(d)     The payments and benefits provided or to be provided Executive pursuant to the provisions of Section 5 above constitute consideration that Executive was not entitled to receive before the Effective Date;

 

(e)     Executive was given twenty-one (21) days within which to consider this Agreement;

 

(f)     The Company advised Executive of Executive’s right to consult with an attorney regarding this Agreement before executing the Agreement and encouraged Executive to exercise that right;

 

(g)     Executive may revoke this Agreement at any time within seven (7) days after the Signature Date, and this document will not become effective or enforceable until the eighth (8th) day after the Signature Date (the “Effective Date”) (on which day this Agreement will automatically become effective and enforceable unless previously revoked within that seven (7) day period); and

 

(h)     By signing this Agreement, Executive acknowledges that the period of time used by Executive prior to signing this Agreement was sufficient time to consider and review this Agreement, it being expressly understood that the Company is imposing no requirement or duress on Executive to take less than twenty-one (21) days to consider signing this Agreement.

 

EXECUTIVE REPRESENTS THAT EXECUTIVE HAS CAREFULLY READ THE ENTIRE AGREEMENT, UNDERSTANDS ITS CONSEQUENCES, AND VOLUNTARILY ENTERS INTO IT.

 

[signature page follows]

 

9

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and year written below (the “Signature Date”).

 

 

 

MATTHEW T. SHEEHAN

 

 

By:        /s/ Matthew T. Sheehan                                       

Name:  Matthew T. Sheehan

Date:    November 21, 2019

 

 

PRIMO WATER CORPORATION

 

BY:       /s/ David J. Mills                                                  

Name:  David J. Mills

Title:    Chief Financial Officer

Date:    November 21, 2019

 

10EX-10.1

 Exhibit 10.1 

Certain portions of this Exhibit have been redacted because such terms are both not material and would likely cause competitive harm to the Company if
publicly disclosed. These redacted portions have been marked in this Exhibit with three asterisks [***]. 
 EXECUTION VERSION

 SECURITIES PURCHASE AGREEMENT 

THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of November 27, 2019, by and among
Zosano Pharma Corporation, a Delaware corporation (the “Company”), and each purchaser identified on Schedule A attached hereto (each, a “Purchaser,” and collectively, the “Purchasers”). 

WHEREAS, the Company has prepared and filed with the Securities and Exchange Commission (the “SEC”), in accordance with the
provisions of the Securities Act of 1933, as amended (the “Securities Act”), and the applicable rules and regulations thereunder, a registration statement on Form S-3 (File No. 333-229686), including a prospectus (the “Base Prospectus”), relating to the shares to be issued and sold pursuant to this Agreement. The term “Registration Statement” as
used herein refers to such registration statement (including all financial schedules and exhibits), as amended or as supplemented and includes information contained in the form of final prospectus and supplements thereto (the
“Prospectus”) filed or that will be filed with the SEC pursuant to Rule 424(b) of the rules under the Securities Act and deemed to be part thereof at the time of effectiveness (the “Effective Date”) pursuant to Rule
430B of the rules under the Securities Act. 
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for
other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows: 

ARTICLE I 
 PURCHASE AND
SALE 
 1.1 Closing. Each Purchaser agrees to purchase from the Company, and the Company agrees to issue and sell to such
Purchaser, a number of shares (the “Shares”) of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), equal to such Purchaser’s subscription amount as set forth on Schedule A
attached hereto (the “Subscription Amount”) divided by the Purchase Price (as defined below). Upon satisfaction of the conditions set forth in Section 1.3, the closing of the purchase and sale of the Shares (the
“Closing”) shall occur at the offices of the Company on December 2, 2019, or at such other place or on such other date as the parties shall mutually agree. 

1.2 Per Share Purchase Price. The purchase price for the Shares shall be equal to $1.45 per share (the “Purchase
Price”). 
 1.3 Closing Conditions. 

(a) As a condition to each Purchaser’s obligation to consummate the transactions contemplated hereby, at the Closing, the Company shall
have satisfied each of the conditions set forth below or shall deliver or cause to be delivered to each Purchaser the items set forth below, as appropriate: 

(i) this Agreement duly executed by the Company; 

 (ii) the Shares will be issued to such Purchaser through the book-entry facilities of The
Depository Trust Company; 
 (iii) the representations and warranties made by the Company herein shall be true and correct in all material
respects on the date hereof and on the date of the Closing; 
 (iv) all covenants, agreements and conditions contained in this Agreement to
be performed by the Company on or prior to the date of the Closing shall have been performed or complied with in all material respects; 

(v) no statute, regulation, executive order, decree, ruling or injunction shall have been enacted, promulgated, endorsed or threatened or is
pending by or before any governmental authority of competent jurisdiction which prohibits or threatens to prohibit the consummation of the transaction contemplated by this Agreement; and 

(vi) the Company shall have filed an application with The Nasdaq Stock Market LLC (“Nasdaq”) for the listing of the Shares.

 (b) As a condition to the Company’s obligation to consummate the transactions contemplated hereby, at the Closing, each Purchaser
shall have satisfied each of the conditions set forth below or shall deliver or cause to be delivered to the Company the items set forth below, as appropriate: 

(i) this Agreement duly executed by such Purchaser; 

(ii) the Subscription Amount by wire transfer of immediately available funds to the account of the Company as set forth on
Schedule A hereto; 
 (iii) the representations and warranties made by such Purchaser herein shall be true and correct in all
material respects on the date hereof and on the date of the Closing; 
 (iv) such Purchaser shall have performed, satisfied and complied in
all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Purchaser at or before the Closing; and 

(v) no statute, regulation, executive order, decree, ruling or injunction shall have been enacted, promulgated, endorsed or threatened or is
pending by or before any governmental authority of competent jurisdiction which prohibits or threatens to prohibit the consummation of the transaction contemplated by this Agreement. 

  
 2 

 ARTICLE II 

REPRESENTATIONS AND WARRANTIES 

2.1 Representations and Warranties of the Company. The Company hereby makes the following representations and warranties as of the date
hereof and as of the date of the Closing to Purchasers: 
 (a) Organization and Qualification. The Company is an entity duly
incorporated, validly existing and in good standing under the laws of the State of Delaware, with the requisite corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted. The Company
is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by the Company makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the case may be, would not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of this Agreement, (ii) a
material adverse effect on the results of operations, assets, business or financial condition of the Company, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations
under this Agreement (any of (i), (ii) or (iii), a “Material Adverse Effect”). 
 (b) Authorization; Enforcement.
The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement by the
Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company and no further action is required by the Company in connection therewith. This
Agreement has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance
with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable remedies. 
 (c) No Conflicts. The execution, delivery
and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby do not and will not (i) conflict with or violate any provision of the Company’s Amended and Restated Certificate
of Incorporation, as amended as of the date hereof, or Amended and Restated Bylaws, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company debt or otherwise) or other understanding to which the
Company is a party or by which any property or asset of the Company is bound or affected, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company is bound or affected; except in the case of each of clauses (ii) and (iii), such as would
not have or reasonably be expected to result in a Material Adverse Effect. 

  
 3 

 (d) Filings, Consents and Approvals. The Company is not required to obtain any
consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other person in connection with the execution, delivery and
performance by the Company of this Agreement, other than (i) the filing with the SEC of a Form 8-K and prospectus supplement relating to the Registration Statement, and applicable Blue Sky filings, if
any, and (ii) such as have already been obtained. 
 (e) Authorization of the Shares. The Shares, when issued at the Closing in
accordance with the terms of this Agreement, will be, duly authorized, validly issued, fully paid and nonassessable, free and clear of all liens created by the Company, and will be registered pursuant to Section 12 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”). 
 (f) Registration Statement. The Company has prepared and filed with
the SEC, in accordance with the provisions of the Securities Act, and the applicable rules and regulations thereunder, a registration statement on Form S-3 (File
No. 333-229686), including the Base Prospectus, relating to the Shares to be issued and sold pursuant to this Agreement. The Prospectus relating to the Shares to be issued and sold pursuant to this
Agreement will be filed with the SEC pursuant to Rule 424(b) prior to the Closing. The Registration Statement has become effective under the Securities Act, and no stop order suspending the effectiveness of the Registration Statement is in effect,
and no proceedings for such purpose are pending before or threatened by the SEC. 
 (g) Stock Exchange Listing. The Shares, when
issued at the Closing in accordance with the terms of this Agreement, will be listed on Nasdaq, and the Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Shares under the Exchange Act or
delisting the Shares from Nasdaq, nor has the Company received any notification that the SEC or Nasdaq is contemplating terminating such registration or listing. To the Company’s knowledge, it is in compliance with all applicable listing
requirements for the listing of the Shares on Nasdaq. 
 (h) Disclosure. The Prospectus when filed will comply in all material
respects with the Securities Act. Each of the Registration Statement and any post-effective amendment thereto, at the time it became or becomes effective, complied and will comply in all material respects with the Securities Act and did not and will
not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statement therein not misleading. The Prospectus does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. There are no contracts or other documents required to be described in the Prospectus or to be filed
as an exhibit to the Registration Statement which have not been described or filed as required. 

  
 4 

 2.2 Representations and Warranties of Purchasers. Each Purchaser, for itself and for
no other Purchaser, hereby represents and warrants as of the date hereof and as of the date of the Closing to the Company as follows: 
 (a)
Organization; Authority. If Purchaser is not a natural person, such Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate, limited
liability or partnership power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement and the performance by
Purchaser of the transactions contemplated by this Agreement has been duly authorized by all necessary corporate or similar action on the part of Purchaser. This Agreement to which it is a party has been duly executed by Purchaser, and when
delivered by Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of Purchaser, enforceable against it in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies. 
 (b) Information; Confidentiality. Purchaser represents that it has received (or otherwise had made available to it by
the filing by the Company of an electronic version thereof with the SEC on or prior to the date hereof) the Base Prospectus, dated March 27, 2019, which is a part of the Registration Statement, the documents incorporated by reference therein
and any free writing prospectus, prior to or in connection with the receipt of this Agreement. Purchaser acknowledges that, prior to the delivery of this Agreement to the Company, Purchaser will receive certain additional information regarding the
offering, including pricing information which shall be consistent with the terms set forth herein. Such information may be provided to Purchaser by any means permitted under the Securities Act, including the Prospectus, a free writing prospectus and
oral communications, but all such information shall be provided prior to the execution of this Agreement by Purchaser and shall be consistent with the terms set forth herein. Purchaser and its advisors, if any, have been furnished with all publicly
available materials relating to the business, finances and operations of the Company and such other publicly available materials relating to the offer and sale of the Shares as have been requested by Purchaser. Purchaser and its advisors, if any,
have been afforded the opportunity to ask questions of the Company. Neither such inquiries 

  
 5 

 
nor any other due diligence investigations conducted by Purchaser or its advisors, if any, or its representatives shall modify, amend or affect such Purchaser’s right to rely on the
Company’s representations and warranties contained herein. Purchaser understands that its investment in the Shares involves a high degree of risk. Purchaser is able to bear the economic risk of an investment in the Shares including a total loss
and has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the proposed investment in the Shares. Purchaser has sought such accounting, legal and tax advice as it has considered
necessary to make an informed investment decision with respect to its acquisition of the Shares. Other than to other persons party to this Agreement or to such Purchaser’s representatives, including, without limitation, its officers, directors,
partners, legal and other advisors, employees, agents and affiliates, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). 

(c) No Governmental Review. Purchaser understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of the investment in the Shares, nor have such authorities passed upon or endorsed the merits of the offering of the Shares. 

(d) Sales; Short Selling. From and after the date Purchaser received any information about the existence of this offering, Purchaser
has not offered, pledged, sold, contracted to sell, sold any option or contract to purchase, purchased any option or contract to sell, granted any option, right or warrant to purchase, loaned, or otherwise transferred or disposed of, directly or
indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock, entered into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of
ownership of Common Stock, or directly or indirectly, through related parties, affiliates or otherwise sold “short” or “short against the box” (as those terms are generally understood) any equity security of the Company.
Purchaser covenants that it will not, nor will it authorize or permit any person acting on its behalf to, engage in any such transactions until following the Closing. 

(e) Status. Purchaser is a qualified institutional buyer within the meaning of Rule 144A under the Securities Act or an institution
that is an accredited investor within the meaning of Rule 501 under the Securities Act. 
 ARTICLE III 

MISCELLANEOUS 
 3.1 Fees
and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance
of this Agreement. 
 3.2 Entire Agreement. This Agreement, together with the exhibits and schedules thereto, contains the entire
understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents,
exhibits and schedules. 

  
 6 

 3.3 Notices. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile prior to 6:30 p.m. (New York City time)
on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile on a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day,
(c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and
communications is set forth on the Company signature page attached hereto in the case of the Company, and shall be supplementally provided in writing in the case of each Purchaser. For purposes of this Agreement, “Trading Day” shall mean a
day on which the Company’s Common Stock is traded on the Nasdaq National Market, or, if the Company’s Common Stock is not eligible for trading on the Nasdaq National Market, any day except Saturday, Sunday and any day on which banking
institutions in the State of New York are authorized or required by law or other governmental action to close. 
 3.4 Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment, by the Company and Purchaser or, in the case of a waiver, by the party against whom enforcement of any such
waiver is sought. 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. 

3.5 Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to
limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

3.6 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and
permitted assigns. Neither Company nor the Purchasers may assign this Agreement or any rights or obligations hereunder without the prior written consent of the other party. 

3.7 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be
governed by and construed and enforced in accordance with the laws of the State of New York. 
 3.8 Survival. The representations,
warranties, agreements and covenants contained herein shall survive the Closing and delivery of the Shares. 
 3.9 Execution. This
Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it
being 

  
 7 

 
understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile or electronic transmission, 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 electronic signature page were an original thereof. 

3.10 Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and
upon so agreeing, shall incorporate such substitute provision in this Agreement. 
 3.11 Replacement of Securities. If any
certificate or instrument evidencing any of the Shares is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a
new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under
such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement certificate. 

(Signature Pages Follow) 

  
 8 

 IN WITNESS WHEREOF, the undersigned has caused this Securities Purchase Agreement to be duly
executed by its authorized signatory as of the date first indicated above. 
  

			
	Zosano Pharma Corporation
		
	By:	 	 /s/ Greg Kitchener

	Name:	 	Greg Kitchener
	Title:	 	Chief Financial Officer

 Address for Notice: 

34790 Ardentech Court 
 Fremont, CA 94555 

Attn: Greg Kitchener 
 Tel: (510)
745-1200 
 With a copy to (which shall not constitute notice): 

Latham & Watkins LLP 
 140 Scott Drive 

Menlo Park, CA 94025 
 Attn: Kathleen M. Wells 

Tel: (650) 463-2677 
 Fax:
(650) 463-2600 

  
 [Company
Signature Page to Securities Purchase Agreement] 

 IN WITNESS WHEREOF, the undersigned has caused this Securities Purchase Agreement to be duly
executed by its authorized signatory as of the date first indicated above. 
  

			
	Name of Purchaser:	 	 Flint Ridge Partners LP

 

			
	Signature of Authorized Signatory of Purchaser:	 	 /s/ John P. Szabo, Jr.

 

			
	Name of Authorized Signatory:	 	 John P. Szabo, Jr.

 

			
	Title of Authorized Signatory:	 	 Manager - Flint Ridge Capital LLC as GP for Flint Ridge Partners
LP

  

			
	Email Address of Authorized Signatory:	 	 *****

  
 [Purchaser
Signature Page to Securities Purchase Agreement] 

 IN WITNESS WHEREOF, the undersigned has caused this Securities Purchase Agreement to be duly
executed by its authorized signatory as of the date first indicated above. 
  

			
	Name of Purchaser:	 	 Aisling Capital IV, LP

 

			
	Signature of Authorized Signatory of Purchaser:	 	 /s/ Robert Wenzel

 

			
	Name of Authorized Signatory:	 	 Robert Wenzel

 

			
	Title of Authorized Signatory:	 	 Chief Financial Officer

 

			
	Email Address of Authorized Signatory:	 	 *****

  

  
 [Purchaser
Signature Page to Securities Purchase Agreement] 

 IN WITNESS WHEREOF, the undersigned has caused this Securities Purchase Agreement to be duly
executed by its authorized signatory as of the date first indicated above. 
  

			
	 Name of Purchaser:
	 	 Connective Capital Management LLC

			
		
	 Signature of Authorized Signatory of Purchaser:
	 	 /s/ Rob Romero

			
		
	 Name of Authorized Signatory:
	 	 Rob Romero

			
		
	 Title of Authorized Signatory:
	 	 Portfolio Manager

			
		
	 Email Address of Authorized Signatory:
	 	 *****

  
 [Purchaser Signature
Page to Securities Purchase Agreement] 

 IN WITNESS WHEREOF, the undersigned has caused this Securities Purchase Agreement to be duly
executed by its authorized signatory as of the date first indicated above. 
  

			
	Name of Purchaser:	 	 Telemetry Securities LLC

 

			
	Signature of Authorized Signatory of Purchaser:	 	 /s/ Dan Sommers

 

			
	Name of Authorized Signatory:	 	 Dan Sommers

 

			
	Title of Authorized Signatory:	 	 Portfolio Manager

 

			
	Email Address of Authorized Signatory:	 	 *****

  
 [Purchaser Signature
Page to Securities Purchase Agreement] 

 Schedule A 

 

					
	 Purchaser
	  	Number of Shares	 	Subscription Amount
	 Flint Ridge Partners LP
	  	[***]	 	[***]
	 Aisling Capital IV, LP
	  	[***]	 	[***]
	 Connective Capital Management LLC
	  	[***]	 	[***]
	 Telemetry Securities LLC
	  	[***]	 	[***]
	 Total
	  	2,181,034	 	$3,162,499.30

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}]]