Document:

EX-10.1

 Exhibit 10.1 

DESTINATION MATERNITY CORPORATION 

AMENDED AND RESTATED 2005 EQUITY INCENTIVE PLAN 

SECTION 1. Purpose; Definitions. The purposes of this Amended and Restated Destination Maternity Corporation 2005 Equity Incentive
Plan (the “Plan”) are to: (a) enable Destination Maternity Corporation (the “Company”) and its affiliated companies to recruit and retain highly qualified personnel; (b) provide those personnel with an
incentive for productivity; and (c) provide those personnel with an opportunity to share in the growth and value of the Company. 
 For purposes of the
Plan, the following terms will have the meanings defined below, unless the context clearly requires a different meaning: 
 (a)
“Affiliate” means, with respect to a Person, a Person that directly or indirectly controls, is controlled by, or is under common control with such Person. 

(b) “Award” means an award of Options, SARs, Restricted Stock, Restricted Stock Units or Performance Awards made under this
Plan. 
 (c) “Award Agreement” means, with respect to any particular Award, the written document that sets forth the terms
of that particular Award. 
 (d) “Board” means the Board of Directors of the Company, as constituted from time to
time; provided, however, that if the Board appoints a Committee to perform some or all of the Board’s administrative functions hereunder, references to the “Board” will be deemed to also refer to that Committee in
connection with matters to be performed by that Committee. 
 (e) “Cause” means (i) conviction of, or the entry of a
plea of guilty or no contest to, a felony or any other crime that causes the Company or its Affiliates public disgrace or disrepute, or adversely affects the Company’s or its Affiliates’ operations or financial performance, (ii) gross
negligence or willful misconduct with respect to the Company or any of its Affiliates, including, without limitation fraud, embezzlement, theft or proven dishonesty in the course of employment; (iii) alcohol abuse or use of controlled drugs
other than in accordance with a physician’s prescription; or (iv) material breach of any agreement with or duty owed to the Company or any of its Affiliates. Notwithstanding the foregoing, if a Participant and the Company (or any of its
Affiliates) have entered into an employment agreement, consulting agreement or other similar agreement that specifically defines “cause,” then with respect to such Participant, “Cause” shall have the meaning defined in that
employment agreement, consulting agreement or other agreement. 
 (f) “Change in Control” means the occurrence of any of
the following, in one transaction or a series of related transactions: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becoming a “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the voting power of the Company’s then outstanding securities; (ii) a consolidation, share exchange, reorganization or merger of the Company
resulting in the stockholders of the Company immediately prior to such event not owning at least a majority of the voting power of the resulting entity’s securities outstanding immediately following such event; (iii) the sale or other
disposition of all or substantially all the assets of the Company, or (iv) a liquidation or dissolution of the Company. 
 (g)
“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto. 
 (h)
“Committee” means a committee appointed by the Board in accordance with Section 2 of the Plan. 

 (i) “Director” means a member of the Board. 

(j) “Disability” means a condition rendering a Participant Disabled. 

(k) “Disabled” will have the same meaning as set forth in Section 22(e)(3) of the Code. 

(l) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

(m) “Fair Market Value” means, as of any date: (i) if the Shares are not then publicly traded, the value of such Shares
on that date, as determined by the Board in its sole and absolute discretion; or (ii) if the Shares are publicly traded, the closing price for a Share on the principal national securities exchange on which the Shares are listed or admitted to
trading or, if the Shares are not listed or admitted to trading on any national securities exchange, but are traded in the over-the-counter market, the closing sale price of a Share or, if no sale is publicly reported, the average of the closing bid
and asked quotations for a Share, as reported by The Nasdaq Stock Market, Inc. (“Nasdaq”) or any comparable system or, if the Common Stock is not listed on Nasdaq or a comparable system, the closing sale price of a Share or, if no
sale is publicly reported, the average of the closing bid and asked prices, as furnished by two members of the National Association of Securities Dealers, Inc. who make a market in the Common Stock selected from time to time by the Company for that
purpose. 
 (n) “Incentive Stock Option” means any Option intended to be an “Incentive Stock Option” within the
meaning of Section 422 of the Code. 
 (o) “Non-Employee Director” will have the meaning set forth in
Rule 16b-3(b)(3)(i) promulgated by the Securities and Exchange Commission under the Exchange Act, or any successor definition adopted by the Securities and Exchange Commission; provided, however, that the Board or the Committee may,
to the extent that it deems necessary to comply with Section 162(m) of the Code or regulations thereunder, require that each “Non-Employee Director” also be an “outside director” as that term is defined in regulations under
Section 162(m) of the Code. 
 (p) “Non-Qualified Stock Option” means any Option that is not an Incentive Stock
Option. 
 (q) “Option” means any option to purchase Shares (including Restricted Stock, if the Board so determines)
granted pursuant to Section 5 hereof. 
 (r) “Parent” means, in respect of the Company, a “parent
corporation” as defined in Sections 424(e) of the Code. 
 (s) “Participant” means an employee, consultant,
Director, or other service provider of or to the Company or any of its respective Affiliates to whom an Award is granted. 
 (t)
“Performance Award” means Shares or other Awards that, pursuant to Section 10, are granted, vested and/or settled upon the achievement of specified performance conditions. 

(u) “Person” means an individual, partnership, corporation, limited liability company, trust, joint venture, unincorporated
association, or other entity or association. 
 (v) “Restricted Stock” means Shares that are subject to restrictions
pursuant to Section 8 hereof. 
 (w) “Restricted Stock Unit” means a right granted under and subject
to restrictions pursuant to Section 9 hereof. 
 (x) “SAR” means a stock appreciation right granted
under the Plan and described in Section 6 hereof. 
 (y) “Shares” means shares of the Company’s
common stock, par value $.01, subject to substitution or adjustment as provided in Section 3(c) hereof. 

 (z) “Subsidiary” means, in respect of the Company, a subsidiary company as
defined in Sections 424(f) and (g) of the Code. 
 SECTION 2. Administration. The Plan will be administered by the
Board; provided, however, that the Board may at any time appoint a Committee to perform some or all of the Board’s administrative functions hereunder; and provided further, that the authority of any Committee appointed
pursuant to this Section 2 will be subject to such terms and conditions as the Board may prescribe and will be coextensive with, and not in lieu of, the authority of the Board hereunder. 

Subject to the requirements of the Company’s by-laws and certificate of incorporation any other agreement that governs the appointment of Board
committees, any Committee established under this Section 2 will be composed of not fewer than two members, each of whom will serve for such period of time as the Board determines; provided, however, that if the
Company has a class of securities required to be registered under Section 12 of the Exchange Act, all members of any Committee established pursuant to this Section 2 will be Non-Employee Directors. From time to time the Board
may increase the size of the Committee and appoint additional members thereto, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies however caused, or remove all members of the Committee and
thereafter directly administer the Plan. 
 The Board will have full authority to grant Awards under this Plan and determine the terms of such Awards. Such
authority will include the right to: 
  

	 	(a)	select the persons to whom Awards are granted (consistent with the eligibility conditions set forth in Section 4); 

  

	 	(b)	determine the type of Award to be granted; 

  

	 	(c)	determine the number of Shares, if any, to be covered by each Award; 

  

	 	(d)	establish the vesting or forfeiture terms of each Award; 

  

	 	(e)	establish the performance conditions relevant to any Performance Award and certify whether such performance conditions have been satisfied; 

 

	 	(f)	determine whether and under what circumstances an Option may be exercised without a payment of cash under Section 5(d); and 

 

	 	(g)	determine whether, to what extent and under what circumstances Shares and other amounts payable with respect to an Award may be deferred either automatically or at the election of the Participant. 

The Board will have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it, from time to time,
deems advisable; to establish the terms and form of each Award Agreement; to interpret the terms and provisions of the Plan and any Award issued under the Plan (and any Award Agreement); and to otherwise supervise the administration of the Plan. The
Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award Agreement in the manner and to the extent it deems necessary to carry out the intent of the Plan. 

All decisions made by the Board pursuant to the provisions of the Plan will be final and binding on all persons, including the Company and Participants. No
Director will be liable for any good faith determination, act or omission in connection with the Plan or any Award. 

 SECTION 3. Shares Subject to the Plan. 

(a) Shares Subject to the Plan. The Shares to be subject to or related to Awards under the Plan will be authorized and unissued Shares
of the Company, whether or not previously issued and subsequently acquired by the Company. The maximum number of Shares that may be issued in respect of Awards under the Plan is 3,550,000. The Company will reserve for the purposes of the Plan, out
of its authorized and unissued Shares, such number of Shares. Notwithstanding the foregoing, no individual may granted Awards with respect to more than 400,000 Shares in any calendar year. In addition, not more than 2,250,000 Shares will be issued
hereunder in respect of Restricted Stock or Restricted Stock Units. 
 (b) Effect of the Expiration or Termination of Awards. If
and to the extent that an Option or SAR expires, terminates or is canceled or forfeited for any reason without having been exercised in full, the Shares associated with that Option or SAR will again become available for grant under the Plan.
Similarly, if and to the extent an Award of Restricted Stock, Restricted Stock Units or a Performance Award is canceled, forfeited or repurchased for any reason, the Shares subject to that Award will again become available for grant under the Plan.
In addition, if any Share is withheld in satisfaction of the exercise price of any Award or pursuant to Section 12(e) in settlement of a tax withholding obligation associated with an Award, that Share will again become available for
grant under the Plan. 
 (c) Other Adjustment. In the event of any recapitalization, stock split or combination, stock dividend,
spin-off, merger, reorganization or other similar event or transaction affecting the Shares, substitutions or adjustments will be made by the Board to the aggregate number, class and/or issuer of the securities that may be issued under the Plan, to
the number, class and/or issuer of securities subject to outstanding Awards, and to the exercise price of outstanding Options or SARs, in each case in a manner that reflects equitably the effects of such event or transaction. 

(d) Change in Control. Notwithstanding anything to the contrary set forth in the Plan, upon or in anticipation of any Change in
Control, the Board may, in its sole and absolute discretion and without the need for the consent of any Participant, take one or more of the following actions contingent upon the occurrence of that Change in Control: (i) cause any or all
outstanding Options or SARs to become vested and/or immediately exercisable, in whole or in part; (ii) cause any or all outstanding Restricted Stock or Restricted Stock Units to become non-forfeitable, in whole or in part; (iii) cancel any
Option in exchange for a substitute option in a manner consistent with the requirements of Treas. Reg. §1.424-1(a) (notwithstanding the fact that the original Option may never have been intended to satisfy the requirements for
treatment as an Incentive Stock Option); (iv) cancel any Restricted Stock, Restricted Stock Units or SAR in exchange for restricted stock, restricted stock units or stock appreciation rights in respect of the capital stock of any successor
corporation or its parent; (v) cancel any Option or SAR in exchange for cash and/or other substitute consideration with a value equal to (A) the number of Shares subject to that Option or SAR, multiplied by (B) the difference, if any,
between the Fair Market Value per Share on the date of the Change in Control and the exercise price of that Option or SAR; provided, that if the Fair Market Value per Share on the date of the Change in Control does not exceed the
exercise price of any such Option or SAR, the Board may cancel that Option or SAR without any payment of consideration therefor; or (vi) cancel any Restricted Stock Unit in exchange for cash and/or other substitute consideration with a value
equal to the Fair Market Value per Share on the date of the Change in Control. In the discretion of the Board, any cash or substitute consideration payable upon cancellation of an Award may be subjected to vesting terms substantially identical to
those that applied to the cancelled Award immediately prior to the Change in Control. 
 SECTION 4. Eligibility. Employees,
Directors, consultants, and other individuals who provide services to the Company or its Affiliates are eligible to be granted Awards under the Plan; provided, however, that only employees of the Company, its Parent or a Subsidiary are
eligible to be granted Incentive Stock Options. 
 SECTION 5. Options. Options granted under the Plan may be of two types:
(i) Incentive Stock Options or (ii) Non-Qualified Stock Options. Any Option granted under the Plan will be in such form as the Board may at the time of such grant approve. Without limiting the generality of Section 3(a),
any or all of the Shares reserved for issuance under Section 3(a) may be issued in respect of Incentive Stock Options. 

 The Award Agreement evidencing any Option will incorporate the following terms and conditions and will contain
such additional terms and conditions, not inconsistent with the terms of the Plan, as the Board deems appropriate in its sole and absolute discretion: 

(a) Option Price. The exercise price per Share purchasable under any Option will be determined by the Board and will not be less than
100% of the Fair Market Value per Share on the date of the grant. However, any Incentive Stock Option granted to any Participant who, at the time the Option is granted, owns more than 10% of the voting power of all classes of shares of the Company,
its Parent or a Subsidiary will have an exercise price per Share of not less than 110% of Fair Market Value per Share on the date of the grant. 

(b) Option Term. The term of each Option will be fixed by the Board, but no Option will be exercisable more than 10 years after the
date the Option is granted. However, any Incentive Stock Option granted to any Participant who, at the time such Option is granted, owns more than 10% of the voting power of all classes of shares of the Company, its Parent or a Subsidiary may not
have a term of more than five years. No Option may be exercised by any person after expiration of the term of the Option. 
 (c)
Exercisability. Options will vest and be exercisable at such time or times and subject to such terms and conditions as determined by the Board. 

(d) Method of Exercise. Subject to the terms of the applicable Award Agreement, the exercisability provisions of
Section 5(c) and the termination provisions of Section 7, Options may be exercised in whole or in part from time to time during their term by the delivery of written notice to the Company specifying the number of Shares
to be purchased. Such notice will be accompanied by payment in full of the purchase price, either by certified or bank check, or such other means as the Board may accept. As determined by the Board, in its sole discretion, payment of the exercise
price of an Option may be made in the form of previously acquired Shares based on the Fair Market Value of the Shares on the date the Option is exercised; provided, however, that, in the case of an Incentive Stock Option, the right to
make a payment in the form of previously acquired Shares may be authorized only at the time the Option is granted. 
 No Shares will be issued upon exercise
of an Option until full payment therefor has been made. A Participant will not have the right to distributions or dividends or any other rights of a stockholder with respect to Shares subject to the Option until the Participant has given written
notice of exercise, has paid in full for such Shares, if requested, has given the representation described in Section 11(a) hereof and fulfills such other conditions as may be set forth in the applicable Award Agreement. 

(e) Incentive Stock Option Limitations. In the case of an Incentive Stock Option, the aggregate Fair Market Value (determined as of the
time of grant) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year under the Plan and/or any other plan of the Company, its Parent or any Subsidiary will not
exceed $100,000. For purposes of applying the foregoing limitation, Incentive Stock Options will be taken into account in the order granted. To the extent any Option does not meet such limitation, that Option will be treated for all purposes as a
Non-Qualified Stock Option. 
 (f) Termination of Service. Unless otherwise specified in the applicable Award Agreement, Options will
be subject to the terms of Section 7 with respect to exercise upon or following termination of employment or other service. 

(g) Transferability of Options. Except as may otherwise be specifically determined by the Board with respect to a particular Option:
(i) no Option will be transferable by the Participant other than by will or by the laws of descent and distribution, and (ii) during the Participant’s lifetime, an Option will be exercisable only by the Participant (or, in the event
of the Participant’s Disability, by his personal representative). 

 SECTION 6. Stock Appreciation Rights. 

(a) Nature of Award. Upon the exercise of a SAR, its holder will be entitled to receive an amount equal to the excess (if any) of:
(i) the Fair Market Value of the Shares covered by such SAR as of the date such SAR is exercised, over (ii) the Fair Market Value of the Shares covered by such SAR as of the date such SAR was granted. Such amount may be paid in either cash
and/or Shares, as determined by the Board in its sole and absolute discretion. 
 (b) Terms and Conditions. The Award Agreement
evidencing any SAR will incorporate the following terms and conditions and will contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Board deems appropriate in its sole and absolute discretion: 

(i) Term of SAR. Unless otherwise specified in the Award Agreement, the term of a SAR will be ten years. 

(ii) Exercisability. SARs will vest and become exercisable at such time or times and subject to such terms and conditions as will be
determined by the Board at the time of grant. 
 (iii) Method of Exercise. Subject to terms of the applicable Award Agreement, the
exercisability provisions of Section 6(b)(ii) and the termination provisions of Section 7, SARs may be exercised in whole or in part from time to time during their term by delivery of written notice to the Company
specifying the portion of the SAR to be exercised. 
 (iv) Termination of Service. Unless otherwise specified in the Award Agreement,
SARs will be subject to the terms of Section 7 with respect to exercise upon termination of employment or other service. 
 (v)
Non-Transferability. Except as may otherwise be specifically determined by the Board with respect to a particular SAR: (A) SARs may not be sold, pledged, assigned, hypothecated, gifted, transferred or disposed of in any manner either
voluntarily or involuntarily by operation of law, other than by will or by the laws of descent or distribution, and (B) during the Participant’s lifetime, SARs will be exercisable only by the Participant (or, in the event of the
Participant’s Disability, by his personal representative). 
 SECTION 7. Termination of Service. Unless otherwise specified
with respect to a particular Option or SAR in the applicable Award Agreement, Options or SARs granted hereunder will be exercisable after termination of service only to the extent specified in this Section 7. 

(a) Termination by Reason of Death. If a Participant’s service with the Company or any Affiliate terminates by reason of death,
any Option or SAR held by such Participant may thereafter be exercised, to the extent then exercisable or on such accelerated basis as the Board may determine at or after grant, by the legal representative of the estate or by the legatee of the
Participant under the will of the Participant, for a period expiring (i) at such time as may be specified by the Board at or after grant, or (ii) if not specified by the Board, then 12 months from the date of death, or (iii) if sooner
than the applicable period specified under (i) or (ii) above, upon the expiration of the stated term of such Option or SAR. 
 (b)
Termination by Reason of Disability. If a Participant’s service with the Company or any Affiliate terminates by reason of Disability, any Option or SAR held by such Participant may thereafter be exercised by the Participant or his
personal representative, to the extent it was exercisable at the time of termination, or on such accelerated basis as the Board may determine at or after grant, for a period expiring (i) at such time as may be specified by the Board at or after
grant, or (ii) if not specified by the Board, then 12 months from the date of termination of service, or (iii) if sooner than the applicable period specified under (i) or (ii) above, upon the expiration of the stated term of such
Option or SAR. 
 (c) Cause. If a Participant’s service with the Company or any Affiliate is terminated for Cause: (i) any
Option or SAR not already exercised will be immediately and automatically forfeited as of the date of such termination, and 

 
(ii) any Shares for which the Company has not yet delivered share certificates will be immediately and automatically forfeited and the Company will refund to the Participant the Option
exercise price paid for such Shares, if any. 
 (d) Other Termination. If a Participant’s service with the Company or any
Affiliate terminates for any reason other than death, Disability or Cause, any Option or SAR held by such Participant may thereafter be exercised by the Participant, to the extent it was exercisable at the time of such termination, or on such
accelerated basis as the Board may determine at or after grant, for a period expiring (i) at such time as may be specified by the Board at or after grant, or (ii) if not specified by the Board, then 90 days from the date of termination of
service, or (iii) if sooner than the applicable period specified under (i) or (ii) above, upon the expiration of the stated term of such Option or SAR. 

SECTION 8. Restricted Stock. 

(a) Issuance. Restricted Stock may be issued either alone or in conjunction with other Awards. The Board will determine the time or
times within which Restricted Stock may be subject to forfeiture, and all other conditions of such Awards. The purchase price for Restricted Stock may, but need not, be zero. The prospective recipient of an Award of Restricted Stock will not have
any rights with respect to such Award, unless and until such recipient has delivered to the Company an executed Award Agreement and has otherwise complied with the applicable terms and conditions of such Award. 

(b) Certificates. A share certificate will be issued in connection with each Award of Restricted Stock. Such certificate will be
registered in the name of the Participant receiving the Award, and will bear the following legend and/or any other legend required by this Plan, the Award Agreement or by applicable law: 

THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS OF THE DESTINATION
MATERNITY CORPORATION 2005 EQUITY INCENTIVE PLAN AND AN AWARD AGREEMENT ENTERED INTO BETWEEN [THE PARTICIPANT] AND DESTINATION MATERNITY CORPORATION COPIES OF THAT PLAN AND AGREEMENT ARE ON FILE IN THE PRINCIPAL OFFICES OF DESTINATION MATERNITY
CORPORATION AND WILL BE MADE AVAILABLE TO THE HOLDER OF THIS CERTIFICATE WITHOUT CHARGE UPON REQUEST TO THE SECRETARY OF THE COMPANY. 
 Share
certificates evidencing Restricted Stock will be held in custody by the Company or in escrow by an escrow agent until the restrictions thereon have lapsed. As a condition to any Award of Restricted Stock, the Participant may be required to deliver
to the Company a share power, endorsed in blank, relating to the Shares covered by such Award. 
 (c) Restrictions and Conditions.
The Award Agreement evidencing the grant of any Restricted Stock will incorporate the following terms and conditions and such additional terms and conditions, not inconsistent with the terms of the Plan, as the Board deems appropriate in its sole
and absolute discretion: 
 (i) During a period commencing with the date of an Award of Restricted Stock and ending at such time or times as
specified by the Board (the “Restriction Period”), the Participant will not be permitted to sell, transfer, pledge, assign or otherwise encumber Restricted Stock awarded under the Plan. The Board may condition the lapse of
restrictions on Restricted Stock upon the continued employment or service of the recipient, the attainment of specified individual or corporate performance goals, or such other factors as the Board may determine, in its sole and absolute discretion.

 (ii) Except as provided in this paragraph (ii) or the applicable Award Agreement, once the Participant has been issued a certificate
or certificates for Restricted Stock, the Participant will have, with respect to the Restricted Stock, all of the rights of a stockholder of the Company, including the right to vote the Shares, and the right to receive any distributions or
dividends. Notwithstanding the foregoing, all such distributions or dividends 

 
shall be subject to the same Restriction Period as is applicable to the Restricted Stock with respect to which such amounts are paid and such distributions or dividends shall be forfeited if, and
to the extent, the Restricted Stock underlying such distributions or dividends is forfeited, provided that, if the Board so determines, any such cash distributions or dividends may be reinvested in additional Restricted Stock to the extent Shares
are available under Section 3(a) of the Plan. 
 (iii) Subject to the provisions of the applicable Award Agreement, if a
Participant’s service with the Company and its Affiliates terminates prior to the expiration of the applicable Restriction Period, the Participant’s Restricted Stock that then remains subject to forfeiture will then be forfeited
automatically. 
 (iv) If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock subject to such
Restriction Period (or if and when the restrictions applicable to Restricted Stock are removed pursuant to Section 3(d) or otherwise), the certificates for such Shares will be replaced with new certificates, without the
restrictive legends described in Section 8(b) applicable to such lapsed restrictions, and such new certificates will be delivered to the Participant, the Participant’s representative (if the Participant has suffered a
Disability), or the Participant’s estate or heir (if the Participant has died). 
 SECTION 9. Restricted Stock Units. Subject
to the other terms of the Plan, the Board may grant Restricted Stock Units to eligible individuals and may impose conditions on such units as it may deem appropriate. Each Restricted Stock Unit shall be evidenced by an Award Agreement in the form
that is approved by the Board and that is not inconsistent with the terms and conditions of the Plan. Each Restricted Stock Unit will represent a right to receive from the Company, upon fulfillment of any applicable conditions, an amount equal to
the Fair Market Value (at the time of the distribution) of one Share. Distributions may be made in cash and/or Shares. All other terms governing Restricted Stock Units, such as vesting, time and form of payment and termination of units shall be set
forth in the applicable Award Agreement. 
 SECTION 10. Performance Awards. 

(a) Performance Awards Generally. The Board may grant Performance Awards in accordance with this Section 10. Performance
Awards may be denominated as a number of Shares, or specified number of other Awards (or a combination thereof) which may be earned upon achievement or satisfaction of performance conditions specified by the Board. In addition, the Board may specify
that any other Award shall constitute a Performance Award by conditioning the vesting or settlement of the Award upon the achievement or satisfaction of such performance conditions as may be specified by the Board. Subject to
Section 10(b), the Board may use such business criteria or other measures of performance as it may deem appropriate in establishing the relevant performance conditions and may, in its discretion, adjust such criteria from time to time.

 (b) Qualified Performance-Based Compensation Under Section 162(m). Performance Awards intended to constitute “qualified
performance-based compensation” under Section 162(m) of the Code will be granted by the Committee and will be subject to the terms of this Section 10(b). 

(i) Specified Business Criteria. The grant, vesting and/or settlement of a Performance Award subject to this Section 10(b) will be
contingent upon achievement of one or more of the following business criteria (subject to adjustment in accordance with Section 10(b)(ii), below): 

(A) the attainment of certain target levels of, or a specified percentage increase in: revenues, income before taxes and
extraordinary items, net income, operating income, earnings before income tax, earnings before interest, taxes, depreciation and amortization, earning per share, after-tax or pre-tax profits, operational cash flow, return on capital employed or
returned on invested capital, after-tax or pre-tax return on stockholders’ equity, the price of the Company’s common stock or a combination of the foregoing; 

 (B) the achievement of a certain level of, reduction of, or other specified
objectives with regard to limiting the level of increase in, the Company’s bank debt or other public or private debt or financial obligations; 

(C) the attainment of a certain level of, reduction of, or other specified objectives with regard to limiting the level in or
increase in all or a portion of controllable expenses or costs or other expenses or costs; and/or 
 (D) any other objective
business criteria that would not cause an Award to fail to constitute “qualified performance-based compensation” under Section 162(m) of the Code. 

Performance goals may be established on a Company-wide basis or with respect to one or more business units, divisions, Affiliates, or products; and in either
absolute terms or relative to the performance of one or more comparable companies or an index covering multiple companies. The performance goals for a particular performance period need not be the same for all Participants. 

(ii) Adjustments to Performance Goals. The Committee may provide, at the time performance goals are established in accordance with
Section 10(b)(i), that adjustments will be made to those performance goals to take into account, in any objective manner specified by the Committee, the impact of one or more of the following: (A) gain or loss from all or certain
claims and/or litigation and insurance recoveries, (B) the impairment of tangible or intangible assets, (C) stock-based compensation expense, (D) extraordinary, unusual or infrequently occurring events reported in the Company’s
public filings, (E) restructuring activities reported in the Company’s public filings, (F) investments, dispositions or acquisitions, (G) loss from the disposal of certain assets, (H) gain or loss from the early
extinguishment, redemption, or repurchase of debt, (I) cash or non-cash charges related to store closing expenses, (J) changes in accounting principles, or (K) any other item, event or circumstance that would not cause an Award to
fail to constitute “qualified performance-based compensation” under Section 162(m) of the Code. An adjustment described in this Section 10(b)(ii) may relate to the Company or to any subsidiary, division or other
operational unit of the Company or its Affiliates, as determined by the Committee at the time the performance goals are established. Any adjustment shall be determined in accordance with generally accepted accounting principles and standards, unless
such other objective method of measurement is designated by the Committee at the time performance objectives are established. In addition, adjustments will be made as necessary to any performance criteria related to the Company’s stock to
reflect changes in corporate capitalization, including a recapitalization, stock split or combination, stock dividend, spin-off, merger, reorganization or other similar event or transaction affecting the Company’s stock. 

(c) Other Terms of Performance Awards. The Board may specify other terms pertinent to a Performance Award in the applicable Award
Agreement, including terms relating to the treatment of that Award in the event of a Change in Control prior to the end of the applicable performance period. 

SECTION 11. Amendments and Termination. The Board may amend, alter or discontinue the Plan at any time. However, except as otherwise
provided in Section 3, no amendment, alteration or discontinuation will be made which would impair the rights of a Participant with respect to an Award without that Participant’s consent or which, without the approval of such
amendment within 365 days of its adoption by the Board by the Company’s stockholders in a manner consistent with Treas. Reg. §1.422-3, would: (i) increase the total number of Shares reserved for issuance hereunder, or (ii) change
the persons or class of persons eligible to receive Awards. 
 SECTION 12. General Provisions. 

(a) Notwithstanding any other provision of the Plan to the contrary, Awards granted under the Plan effective on or after October 19,
2017, shall vest no earlier than the first anniversary of the date such Award was granted (other than acceleration of vesting in the event of a Change in Control or a Participant’s death or Disability); provided however, that, in the
Board’s sole discretion, Awards representing no more than an aggregate of 5% of the Shares reserved for issuance under Section 3(a) of the Plan may be initially awarded or later amended without regard to this limit. 

 (b) The Board may require each Participant to represent to and agree with the Company in writing
that the Participant is acquiring securities of the Company for investment purposes and without a view to distribution thereof and as to such other matters as the Board believes are appropriate. 

(c) All certificates for Shares or other securities delivered under the Plan will be subject to such share-transfer orders and other
restrictions as the Board may deem advisable under the rules, regulations and other requirements of the Securities Act of 1933, as amended, the Exchange Act, any stock exchange upon which the Shares are then listed, and any other applicable federal
or state securities law, and the Board may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

(d) Nothing contained in the Plan will prevent the Board from adopting other or additional compensation arrangements, subject to stockholder
approval if such approval is required. 
 (e) Neither the adoption of the Plan nor the execution of any document in connection with the Plan
will: (i) confer upon any employee of the Company or an Affiliate any right to continued employment or engagement with the Company or such Affiliate, or (ii) interfere in any way with the right of the Company or such Affiliate to terminate
the employment of any of its employees at any time. 
 (f) No later than the date as of which an amount first becomes includible in the
gross income of the Participant for federal income tax purposes with respect to any Award under the Plan, the Participant will pay to the Company, or make arrangements satisfactory to the Company regarding the payment of, any federal, state or local
taxes of any kind required by law to be withheld with respect to such amount. Unless otherwise determined by the Board, the minimum required withholding obligations may be settled with Shares, including Shares that are part of the Award that gives
rise to the withholding requirement. The obligations of the Company under the Plan will be conditioned on such payment or arrangements and the Company will have the right to deduct any such taxes from any payment of any kind otherwise due to the
Participant. 
 SECTION 13. Effective Date of Plan. Subject to the approval of the Plan by the Company’s stockholders within 12
months of the Plan’s adoption by the Board, the Plan will become effective on the date that it is adopted by the Board. 
 SECTION 14. Term of
Plan. The Plan will continue in effect until the 10th anniversary of the date of stockholder approval of the Plan (or, if the stockholders approve an amendment that increases the
number of shares subject to the Plan, the 10th anniversary of the date of such approval); but provided further, that Awards granted prior to such 10th anniversary may extend beyond that date. 
 SECTION 15. Invalid Provisions. In
the event that any provision of this Plan is found to be invalid or otherwise unenforceable under any applicable law, such invalidity or unenforceability will not be construed as rendering any other provisions contained herein as invalid or
unenforceable, and all such other provisions will be given full force and effect to the same extent as though the invalid or unenforceable provision was not contained herein. 

SECTION 16. Governing Law. The Plan and all Awards granted hereunder will be governed by and construed in accordance with the laws and
judicial decisions of the Commonwealth of Pennsylvania, without regard to the application of the principles of conflicts of laws. 
 SECTION 17. Board
Action. Notwithstanding anything to the contrary set forth in the Plan, any and all actions of the Board or Committee, as the case may be, taken under or in connection with the Plan and any agreements, instruments, documents,
certificates or other writings entered into, executed, granted, issued and/or delivered pursuant to the terms hereof, will be subject to and limited by any and all votes, consents, approvals, waivers or other actions of all or certain stockholders
of the Company or other persons required by: 
 (a) the Company’s Certificate of Incorporation (as the same may be amended and/or
restated from time to time); 

 (b) the Company’s Bylaws (as the same may be amended and/or restated from time to time); and

 (c) any other agreement, instrument, document or writing now or hereafter existing, between or among the Company and its stockholders or
other persons (as the same may be amended from time to time). 
 SECTION 18. Notices. Any notice to be given to the Company pursuant
to the provisions of this Plan must be given in writing and addressed, if to the Company, to its principal executive office to the attention of its Chief Financial Officer (or such other person as the Company may designate in writing from time to
time), and, if to a Participant, to the address contained in the Company’s personnel files, or at such other address as that Participant may hereafter designate in writing to the Company. Any such notice will be deemed duly given: if delivered
personally or via recognized overnight delivery service, on the date and at the time so delivered; if sent via telecopier or email, on the date and at the time telecopied or emailed with confirmation of delivery; or, if mailed, five (5) days
after the date of mailing by registered or certified mail.EX-10.1

 Exhibit 10.1 

Execution Version 

PURCHASE AGREEMENT 

PURCHASE AGREEMENT (the “Agreement”), dated as of October 20, 2017, by and between ZOSANO PHARMA
CORPORATION, a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability company (the “Investor”). 

WHEREAS: 
 Subject to the
terms and conditions set forth in this Agreement, the Company wishes to sell to the Investor, and the Investor wishes to buy from the Company, up to Thirty-Five Million Dollars ($35,000,000) of the Company’s common stock, $0.0001 par value per
share (the “Common Stock”). The shares of Common Stock to be purchased hereunder are referred to herein as the “Purchase Shares.” 

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 the Investor hereby agree as follows: 
  

	 	1.	CERTAIN DEFINITIONS. 

 For purposes of this Agreement, the following terms shall have the
following meanings: 
 (a)    “Accelerated Purchase Share Amount” means, with respect to any
Accelerated Purchase made pursuant to Section 2(b) hereof, the number of Purchase Shares directed by the Company to be purchased by the Investor on an Accelerated Purchase Notice, which number of Purchase Shares shall not
exceed the lesser of (i) 300% of the number of Purchase Shares directed by the Company to be purchased by the Investor pursuant to the corresponding Regular Purchase Notice for the corresponding Regular Purchase referred to in
Section 2(b) hereof (subject to the Purchase Share limitations contained in Section 2(a) hereof and (ii) the Accelerated Purchase Share Percentage multiplied by the trading volume of the
Common Stock on the Principal Market during normal trading hours on the Accelerated Purchase Date. 

(b)    “Accelerated Purchase Date” means, with respect to any Accelerated Purchase made pursuant to
Section 2(b) hereof, the Business Day immediately following the applicable Purchase Date with respect to the corresponding Regular Purchase referred to in Section 2(b) hereof. 

(c)    “Accelerated Purchase Notice” means, with respect to any Accelerated Purchase made pursuant to
Section 2(b) hereof, an irrevocable written notice from the Company to the Investor directing the Investor to buy a specified Accelerated Purchase Share Amount on the applicable Accelerated Purchase Date pursuant to
Section 2(b) hereof at the applicable Accelerated Purchase Price. 

(d)    “Accelerated Purchase Share Percentage” means, with respect to any Accelerated Purchase made
pursuant to Section 2(b) hereof, thirty percent (30%). 
 (e)    “Accelerated Purchase
Price” means, with respect to any particular Accelerated Purchase made pursuant to Section 2(b) hereof, the lower of (i) ninety-six percent (96%) of the VWAP during (A) the entire
trading day on the Accelerated Purchase Date, if the volume of shares of Common Stock traded on the Principal Market on the Accelerated Purchase Date has not exceeded the Accelerated Purchase Share Volume Maximum, or (B) the portion of the
trading day of the Accelerated Purchase Date (calculated starting at the beginning of normal trading hours) until such time at which the volume of shares of Common Stock traded on the Principal Market has exceeded the Accelerated Purchase Share
Volume Maximum and (ii) the Closing Sale Price on the Accelerated Purchase Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split
or other similar transaction). 

 (f)    “Accelerated Purchase Share Volume Maximum” means the
number of shares of Common Stock traded on the Principal Market during normal trading hours on the Accelerated Purchase Date equal to (i) the amount of shares of Common Stock properly directed by the Company to be purchased on the Accelerated
Purchase Notice, divided by (ii) the Accelerated Purchase Share Percentage (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or
other similar transaction). 
 (g)    “Additional Purchase Notice” means, with respect to any
Additional Purchase pursuant to Section 2(c) hereof, an irrevocable written notice from the Company to the Investor directing the Investor to buy such applicable amount of Purchase Shares at the applicable Additional
Purchase Price as specified by the Company therein on the Purchase Date. 
 (h)    “Additional Purchase
Price” means, with respect to any Additional Purchase made pursuant to Section 2(c) hereof, the lower of: (i) $3.00 per share and (ii) ninety-six percent (96%) of
the Purchase Price (as defined below) (in each case, to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction that occurs on or after
the date of this Agreement). 
 (i)     “Available Amount” means, initially, Thirty-Five Million
Dollars ($35,000,000) in the aggregate, which amount shall be reduced by the Purchase Amount each time the Investor purchases shares of Common Stock pursuant to Section 2 hereof. 

(j)    “Average Price” means a price per Purchase Share (rounded to the nearest tenth of a cent) equal to
the quotient obtained by dividing (i) the aggregate gross purchase price paid by the Investor for all Purchase Shares purchased pursuant to this Agreement, by (ii) the aggregate number of Purchase Shares issued pursuant to this Agreement.

 (k)    “Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the
relief of debtors. 
 (l)    “Base Price” means a price per Purchase Share equal to the sum of
(i) the Signing Market Price and (ii) $0.0520 (subject to adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction that occurs
on or after the date of this Agreement). 
 (m)    “Business Day” means any day on which the Principal
Market is open for trading, including any day on which the Principal Market is open for trading for a period of time less than the customary time. 

(n)    “Closing Sale Price” means, for any security as of any date, the last closing sale price for such
security on the Principal Market as reported by the Principal Market. 
 (o)    “Confidential
Information” means any information disclosed by either party to the other party, either directly or indirectly, in writing, orally or by inspection of tangible objects (including, 

  
 -2- 

 
without limitation, documents, prototypes, samples, plant and equipment), which is designated as “Confidential,” “Proprietary” or some similar designation. Information
communicated orally shall be considered Confidential Information if such information is confirmed in writing as being Confidential Information within ten (10) Business Days after the initial disclosure. Confidential Information may also include
information disclosed to a disclosing party by third parties. Confidential Information shall not, however, include any information which (i) was publicly known and made generally available in the public domain prior to the time of disclosure by
the disclosing party; (ii) becomes publicly known and made generally available after disclosure by the disclosing party to the receiving party through no action or inaction of the receiving party; (iii) is already in the possession of the
receiving party without confidential restriction at the time of disclosure by the disclosing party as shown by the receiving party’s files and records immediately prior to the time of disclosure; (iv) is obtained by the receiving party
from a third party without a breach of such third party’s obligations of confidentiality; or (v) is independently developed by the receiving party without use of or reference to the disclosing party’s Confidential Information, as
shown by documents and other competent evidence in the receiving party’s possession. 

(p)    “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law. 
 (q)    “DTC” means The Depository Trust Company, or any successor performing
substantially the same function for the Company. 
 (r)    “DWAC Shares” means shares of Common Stock
that are (i) issued in electronic form, (ii) freely tradable and transferable and without restriction on resale and (iii) timely credited by the Company to the Investor’s or its designee’s specified Deposit/Withdrawal at
Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer (FAST) Program, or any similar program hereafter adopted by DTC performing substantially the same function. 

(s)     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder. 
 (t)    “Material Adverse Effect” means any material adverse
effect on (i) the enforceability of any Transaction Document, (ii) the results of operations, assets, business or financial condition of the Company and its Subsidiaries, taken as a whole, other than any material adverse effect that
resulted exclusively from (A) any change in the United States or foreign economies or securities or financial markets in general that does not have a disproportionate effect on the Company and its Subsidiaries, taken as a whole, (B) any
change that generally affects the industry in which the Company and its Subsidiaries operate that does not have a disproportionate effect on the Company and its Subsidiaries, taken as a whole, (C) any change arising in connection with
earthquakes, hostilities, acts of war, sabotage or terrorism or military actions or any escalation or material worsening of any such hostilities, acts of war, sabotage or terrorism or military actions existing as of the date hereof, (D) any
action taken by the Investor, its affiliates or its or their successors and assigns with respect to the transactions contemplated by this Agreement, (E) the effect of any change in applicable laws or accounting rules that does not have a
disproportionate effect on the Company and its Subsidiaries, taken as a whole, or (F) any change resulting from compliance with terms of this Agreement or the consummation of the transactions contemplated by this Agreement, or (iii) the
Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document to be performed as of the date of determination. 

  
 -3- 

 (u)    “Maturity Date” means the first day of the month
immediately following the thirty (30) month anniversary of the Commencement Date. 
 (v)    “PEA
Period” means the period commencing at 9:30 a.m., Eastern time, on the fifth (5th) Business Day immediately prior to the filing of any post-effective amendment to the Registration
Statement (as defined herein) or New Registration Statement (as such term is defined in the Registration Rights Agreement), and ending at 9:30 a.m., Eastern time, on the Business Day immediately following, the effective date of any post-effective
amendment to the Registration Statement (as defined herein) or New Registration Statement (as such term is defined in the Registration Rights Agreement). 

(w)    “Person” means an individual or entity including but not limited to any limited liability company,
a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof. 

(x)    “Principal Market” means The NASDAQ Capital Market (or any nationally recognized successor
thereto); provided, however, that in the event the Company’s Common Stock is ever listed or traded on The NASDAQ Global Market, The NASDAQ Global Select Market, the New York Stock Exchange, the NYSE American, the NYSE Arca, the OTC Bulletin
Board, or the OTCQX or OTCQB operated by the OTC Markets Group, Inc. (or any nationally recognized successor to any of the foregoing), then the “Principal Market” shall mean such other market or exchange on which the Company’s Common
Stock is then listed or traded. 
 (y)    “Purchase Amount” means, with respect to any Regular
Purchase, any Accelerated Purchase or any Additional Purchase made hereunder, as applicable, the portion of the Available Amount to be purchased by the Investor pursuant to Section 2 hereof. 

(z)    “Purchase Date” means, (i) with respect to any Regular Purchase made pursuant to
Section 2(a) hereof, the Business Day on which the Investor receives after 4:00 p.m., Eastern time, but prior to 5:00 p.m., Eastern time, of such Business Day a valid Regular Purchase Notice that the Investor is to buy
Purchase Shares pursuant to Section 2(a) hereof, or (ii) with respect to any Additional Purchase made pursuant to Section 2(c) hereof, the Business Day on which the Investor receives after
4:00 p.m., Eastern time, but prior to 5:00 p.m., Eastern time, of such Business Day a valid Additional Purchase Notice that the Investor is to buy Purchase Shares pursuant to Section 2(c) hereof, as applicable. 

(aa)    “Purchase Price” means, with respect to any Regular Purchase made pursuant to
Section 2(a) hereof or any Additional Purchase made pursuant to Section 2(c) hereof (as applicable), the lower of: (i) the lowest Sale Price on the applicable Purchase Date and (ii) the
arithmetic average of the three (3) lowest Closing Sale Prices for the Common Stock during the ten (10) consecutive Business Days ending on the Business Day immediately preceding such Purchase Date (in each case, to be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction that occurs on or after the date of this Agreement). 

(bb)    “Regular Purchase Notice” means, with respect to any Regular Purchase pursuant to
Section 2(a) hereof, an irrevocable written notice from the Company to the Investor directing the Investor to buy such applicable amount of Purchase Shares at the applicable Purchase Price as specified by the Company
therein on the Purchase Date. 

  
 -4- 

 (cc)    “Sale Price” means any trade price for the shares of
Common Stock on the Principal Market as reported by the Principal Market. 
 (dd)    “SEC” means the
U.S. Securities and Exchange Commission. 
 (ee)    “Securities” means, collectively, the Purchase
Shares and the Commitment Shares. 
 (ff)    “Securities Act” means the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder. 
 (gg)     “Signing Market Price” means
$0.8447, representing the consolidated closing bid price of the Common Stock on The NASDAQ Capital Market on the Business Day immediately preceding the date of this Agreement. 

(hh)    “Subsidiary” means any Person the Company wholly-owns or controls, or in which the Company,
directly or indirectly, owns a majority of the voting stock or similar voting interest, in each case that would be disclosable pursuant to Item 601(b)(21) of Regulation S-K promulgated under the Securities
Act. 
 (ii)    “Transaction Documents” means, collectively, this Agreement and the schedules and
exhibits hereto, the Registration Rights Agreement and the schedules and exhibits thereto, and each of the other agreements, documents, certificates and instruments entered into or furnished by the parties hereto in connection with the transactions
contemplated hereby and thereby. 
 (jj)    “Transfer Agent” means Computershare Trust Company, N.A.,
or such other Person who is then serving as the transfer agent for the Company in respect of the Common Stock. 

(kk)    “VWAP” means in respect of an applicable Accelerated Purchase Date, the volume weighted average
price of the Common Stock on the Principal Market, as reported on the Principal Market. 
  

	 	2.	PURCHASE OF COMMON STOCK. 

 Subject to the terms and conditions set forth in this
Agreement, the Company has the right to sell to the Investor, and the Investor has the obligation to purchase from the Company, Purchase Shares as follows: 

(a)    Commencement of Regular Sales of Common Stock. Upon the satisfaction of all of the conditions set forth in
Sections 7 and 8 hereof (the “Commencement” and the date of satisfaction of such conditions the “Commencement Date”) and thereafter, the Company shall have the right, but not the obligation, to direct
the Investor, by its delivery to the Investor of a Regular Purchase Notice from time to time, to purchase up to Three Hundred Thousand (300,000) Purchase Shares (each such purchase a “Regular Purchase”), at the Purchase Price on the
Purchase Date; provided, however, that (i) the Regular Purchase may be increased to up to Three Hundred Fifty Thousand (350,000) Purchase Shares, provided that the Closing Sale Price of the Common Stock is not below $1.50 on the
Purchase Date, and (ii) the Regular Purchase may be increased to up to Four Hundred Thousand (400,000) Purchase Shares, 

  
 -5- 

 
provided that the Closing Sale Price of the Common Stock is not below $2.00 on the Purchase Date (all of which share and dollar amounts shall be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction); and provided, further, however, that the Investor’s committed obligation under any single Regular
Purchase shall not exceed One Million Dollars ($1,000,000). If the Company delivers any Regular Purchase Notice for a Purchase Amount in excess of the limitations contained in the immediately preceding sentence, such Regular Purchase Notice shall be
void ab initio to the extent of the amount by which the number of Purchase Shares set forth in such Regular Purchase Notice exceeds the number of Purchase Shares which the Company is permitted to include in such Purchase Notice in accordance
herewith, and the Investor shall have no obligation to purchase such excess Purchase Shares in respect of such Regular Purchase Notice; provided that the Investor shall remain obligated to purchase the number of Purchase Shares which the Company is
permitted to include in such Regular Purchase Notice. The Company may deliver multiple Regular Purchase Notices to the Investor so long as at least one (1) Business Day has passed since the most recent Regular Purchase was completed.
Notwithstanding the foregoing, the Company shall not deliver any Regular Purchase Notices during the PEA Period. 

(b)    Accelerated Purchases. Subject to the terms and conditions of this Agreement, in addition to purchases of
Purchase Shares as described in Section 2(a) above, the Company shall also have the right, but not the obligation, to direct the Investor by the Company’s delivery to the Investor of an Accelerated Purchase Notice from
time to time, and the Investor thereupon shall have the obligation, to buy Purchase Shares at the Accelerated Purchase Price on the Accelerated Purchase Date in an amount equal to the Accelerated Purchase Share Amount (each such purchase, an
“Accelerated Purchase”). The Company may deliver an Accelerated Purchase Notice to the Investor only on a Purchase Date on which the Company also properly submitted a Regular Purchase Notice for a Regular Purchase and the Closing
Sale Price is not below $0.75 (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction and, effective upon the consummation of any
such reorganization, recapitalization, non-cash dividend, stock split or other similar transaction, the Closing Sale Price is not below the lower of (i) the adjusted price and (ii) $0.75). If the Company
delivers any Accelerated Purchase Notice for an Accelerated Purchase Share Amount in excess of the limitations contained in the definition of Accelerated Purchase Share Amount, such Accelerated Purchase Notice shall be void ab initio to the
extent of the amount by which the number of Purchase Shares set forth in such Accelerated Purchase Notice exceeds the Accelerated Purchase Share Amount which the Company is permitted to include in such Accelerated Purchase Notice in accordance
herewith (which shall be confirmed in an Accelerated Purchase Confirmation (defined below)), and the Investor shall have no obligation to purchase such excess Purchase Shares in respect of such Accelerated Purchase Notice; provided that the Investor
shall remain obligated to purchase the Accelerated Purchase Share Amount which the Company is permitted to include in such Accelerated Purchase Notice. Upon completion of each Accelerated Purchase Date, the Accelerated Purchase Share Amount and the
applicable Accelerated Purchase Price shall be set forth on a confirmation of the Accelerated Purchase to be provided to the Company by the Investor (an “Accelerated Purchase Confirmation”). 

(c)    Additional Purchases. Subject to the terms and conditions of this Agreement, from and after the Commencement
Date, in addition to purchases of Purchase Shares as described in Section 2(a) and Section 2(b) above, the Company shall also have the right, but not the obligation, to direct the Investor by the
Company’s delivery to the Investor of an Additional Purchase Notice from time to time, and the Investor thereupon shall have the obligation, to buy Purchase Shares at the Additional Purchase 

  
 -6- 

 
Price on the Purchase Date (each such purchase, an “Additional Purchase”); provided, however, that (i) the Company may deliver an Additional Purchase Notice to
the Investor only if at least twenty (20) Business Days have passed since the most recent Additional Purchase was completed, (ii) the Investor’s committed obligation under any single Additional Purchase shall not exceed One Million
Dollars ($1,000,000), and (iii) the Investor’s committed obligation under all Additional Purchases shall not exceed Five Million Dollars ($5,000,000) in the aggregate. The Company may deliver an Additional Purchase Notice to the Investor
only on a Purchase Date on which the Closing Sale Price is not below $1.00 (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction).
If the Company delivers any Additional Purchase Notice for a Purchase Amount in excess of the limitations contained in this Section 2(c), such Additional Purchase Notice shall be void ab initio to the extent of the
amount by which the number of Purchase Shares set forth in such Additional Purchase Notice exceeds the number of Purchase Shares which the Company is permitted to include in such Additional Purchase Notice in accordance herewith, and the Investor
shall have no obligation to purchase such excess Purchase Shares in respect of such Additional Purchase Notice; provided that the Investor shall remain obligated to purchase the number of Purchase Shares which the Company is permitted to include in
such Additional Purchase Notice. Notwithstanding the foregoing, the Company shall not deliver any Additional Purchase Notice during the PEA Period. 

(d)     Payment for Purchase Shares. For each Regular Purchase, the Investor shall pay to the Company an amount
equal to the Purchase Amount with respect to such Regular Purchase as full payment for such Purchase Shares via wire transfer of immediately available funds on the same Business Day that the Investor receives such Purchase Shares, if such Purchase
Shares are received by the Investor before 1:00 p.m., Eastern time, or, if such Purchase Shares are received by the Investor after 1:00 p.m., Eastern time, the next Business Day. For each Additional Purchase, the Investor shall pay to the Company an
amount equal to the Purchase Amount with respect to such Additional Purchase as full payment for such Purchase Shares via wire transfer of immediately available funds on the third Business Day following the date that the Investor receives such
Purchase Shares. For each Accelerated Purchase, the Investor shall pay to the Company an amount equal to the Purchase Amount with respect to such Accelerated Purchase as full payment for such Purchase Shares via wire transfer of immediately
available funds on the third Business Day following the date that the Investor receives such Purchase Shares. If the Company or the Transfer Agent shall fail for any reason or for no reason to electronically transfer any Purchase Shares as DWAC
Shares in respect of a Regular Purchase, Additional Purchase or Accelerated Purchase (as applicable) within three (3) Business Days following the receipt by the Company of the Purchase Price, Additional Purchase Price or Accelerated Purchase
Price, respectively, therefor in compliance with this Section 2(d), and if on or after such Business Day the Investor purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction
of a sale by the Investor of such Purchase Shares that the Investor anticipated receiving from the Company in respect of such Regular Purchase, Additional Purchase or Accelerated Purchase (as applicable), then the Company shall, within three
(3) Business Days after the Investor’s request, either (i) pay cash to the Investor in an amount equal to the Investor’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased
(the “Cover Price”), at which point the Company’s obligation to deliver such Purchase Shares as DWAC Shares shall terminate, or (ii) promptly honor its obligation to deliver to the Investor such Purchase Shares as DWAC
Shares and pay cash to the Investor in an amount equal to the excess (if any) of the Cover Price over the total (A) Purchase Price for such Regular Purchase plus the total Accelerated Purchase Price for such Accelerated Purchase (as applicable)
and (B) Additional Purchase Price for such Additional Purchase (as applicable). The Company shall not issue any fraction of a share of Common Stock upon any Regular Purchase, Additional Purchase or Accelerated Purchase. If the

  
 -7- 

 
issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up or down to the nearest whole share. All
payments made under this Agreement shall be made in lawful money of the United States of America or wire transfer of immediately available funds to such account as the Company may from time to time designate by written notice in accordance with the
provisions of this Agreement. Whenever any amount expressed to be due by the terms of this Agreement is due on any day that is not a Business Day, the same shall instead be due on the next succeeding day that is a Business Day. 

(e)     Purchase Price Floor. The Company may not deliver a Regular Purchase Notice to the Investor, and the
Investor and the Company shall not effect any Regular Purchase under this Agreement, on any Purchase Date that the Closing Sale Price is less than the Floor Price. “Floor Price” means $0.50, which shall be appropriately adjusted for
any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction and, effective upon the consummation of any such reorganization, recapitalization, non-cash dividend, stock split or other similar transaction, the Floor Price shall mean the lower of (i) the adjusted price and (ii) $0.50. 

(f)     Compliance with Rules of Principal Market. 

(i)    Exchange Cap. Subject to Section 2(f)(ii) below, the Company shall not issue or
sell any shares of Common Stock pursuant to this Agreement, and the Investor shall not purchase or acquire any shares of Common Stock pursuant to this Agreement, to the extent that after giving effect thereto, the aggregate number of shares of
Common Stock that would be issued pursuant to this Agreement would exceed the maximum number of shares of Common Stock that the Company may issue pursuant to this Agreement and the transactions contemplated hereby (taking into account all shares of
Common Stock issued or issuable pursuant to any transaction or series of transactions that may be aggregated with the transactions contemplated by this Agreement under applicable rules of The NASDAQ Stock Market) without (1) breaching the
Company’s obligations under the applicable rules of The NASDAQ Stock Market or (2) obtaining stockholder approval under the applicable rules of The NASDAQ Stock Market (the “Exchange Cap”), unless and until the Company
elects to solicit stockholder approval of the issuance of Common Stock as contemplated by this Agreement and the stockholders of the Company have in fact approved the issuance of Common Stock as contemplated by this Agreement in accordance with the
applicable rules and regulations of The NASDAQ Stock Market, and the Certificate of Incorporation and Bylaws of the Company. For the avoidance of doubt, the Company may, but shall be under no obligation to, request its stockholders to approve the
issuance of Common Stock as contemplated by this Agreement; provided, that if stockholder approval is not obtained in accordance with this Section 2(f)(i), the Exchange Cap shall be applicable for all purposes of this
Agreement and the transactions contemplated hereby at all times during the term of this Agreement (except as set forth in Section 2(f)(ii) below). 

(ii)    At-Market Transaction. Notwithstanding
Section 2(f)(i) above, the Exchange Cap shall not be applicable for any purposes of this Agreement and the transactions contemplated hereby, solely to the extent that (and only for so long as) the Average Price shall equal
or exceed the Base Price (it being hereby acknowledged and agreed that the Exchange Cap shall be applicable for all purposes of this Agreement and the transactions contemplated hereby at all other times during the term of this Agreement, unless the
stockholder approval referred to in Section 2(f)(i) is obtained). 

  
 -8- 

 (iii)    General. The Company shall not issue any shares of Common
Stock pursuant to this Agreement if such issuance would reasonably be expected to result in (A) a violation of the Securities Act or (B) a breach of the rules and regulations of The NASDAQ Stock Market. The provisions of this
Section 2(f) shall be implemented in a manner otherwise than in strict conformity with the terms hereof only if necessary to ensure compliance with the Securities Act and the rules and regulations of The NASDAQ Stock
Market. 
 (g)    Beneficial Ownership Limitation. Notwithstanding anything to the contrary contained in this
Agreement, the Company shall not issue or sell, and the Investor shall not purchase or acquire, any shares of Common Stock under this Agreement which, when aggregated with all other shares of Common Stock then beneficially owned by
the Investor and its affiliates (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder), would result in the beneficial ownership by the Investor and its
affiliates of more than 9.99% of the then issued and outstanding shares of Common Stock (the “Beneficial Ownership Limitation”). Upon the written or oral request of the Investor, the Company shall promptly (but not later
than one Business Day) confirm orally or in writing to the Investor the number of shares of Common Stock then outstanding. The Investor and the Company shall each cooperate in good faith in the determinations required hereby and the application
hereof. The Investor’s written certification to the Company of the applicability of the Beneficial Ownership Limitation, and the resulting effect thereof hereunder at any time, shall be conclusive with respect to the applicability thereof and
such result absent manifest error. 
  

	 	3.	INVESTOR’S REPRESENTATIONS AND WARRANTIES. 

 The Investor represents and warrants to
the Company that as of the date hereof and as of the Commencement Date: 
 (a)    Investment Purpose. The
Investor is acquiring the Securities as principal for its own account for investment only and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state
securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other Persons to
distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting the Investor’s right to sell the Securities at any time
pursuant to the Registration Statement described herein or otherwise in compliance with applicable federal and state securities laws). The Investor is acquiring the Securities hereunder in the ordinary course of its business. 

(b)    Accredited Investor Status. The Investor is an “accredited investor” as that term is defined in
Rule 501(a)(3) of Regulation D promulgated under the Securities Act. 
 (c)    Reliance on Exemptions. The
Investor understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth
and accuracy of, and the Investor’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Investor set forth herein in order to determine the availability of such exemptions and the eligibility
of the Investor to acquire the Securities. 

  
 -9- 

 (d)    Information. The Investor understands that its investment in
the Securities involves a high degree of risk. The Investor (i) is able to bear the economic risk of an investment in the Securities including a total loss thereof, (ii) 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 Securities and (iii) has had an opportunity to ask questions of and receive answers from the officers of the Company concerning the financial condition and
business of the Company and others matters related to an investment in the Securities. Neither such inquiries nor any other due diligence investigations conducted by the Investor or its representatives shall modify, amend or affect the
Investor’s right to rely on the Company’s representations and warranties contained in Section 4 below. The Investor 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 Securities. 
 (e)    No Governmental Review. The Investor
understands that no U.S. federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of an investment in the Securities nor have such
authorities passed upon or endorsed the merits of the offering of the Securities. 
 (f)    Transfer or Sale. The
Investor understands that (i) the Securities may not be offered for sale, sold, assigned or transferred unless (A) registered pursuant to the Securities Act or (B) an exemption exists permitting such Securities to be sold, assigned or
transferred without such registration; (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under
circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules
and regulations of the SEC thereunder. 
 (g)    Validity; Enforcement. This Agreement has been duly and validly
authorized, executed and delivered on behalf of the Investor and is a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject as to enforceability to general principles of equity and to
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 

(h)    Residency. The Investor is a resident of the State of Illinois. 

(i)    No Short Selling. The Investor represents and warrants to the Company that at no time prior to the date of
this Agreement has any of the Investor, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly, any (i) “short sale” (as such term is defined in Rule 200 of Regulation SHO of the
Exchange Act) of the Common Stock or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock. 

  
 -10- 

	 	4.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

 The Company represents and warrants to
the Investor that, except as set forth in the disclosure schedules attached hereto, which exceptions shall be deemed to be a part of the representations and warranties made hereunder, as of the date hereof and as of the Commencement Date: 

(a)    Organization and Qualification. The Company and each of its Subsidiaries is an entity duly incorporated or
otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, with the requisite corporate power and authority to own and use its properties and assets and to carry on its business as currently
conducted. Neither the Company nor any of its Subsidiaries is in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the
Company and its Subsidiaries 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 it 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 a Material Adverse Effect. 

(b)    Authorization; Enforcement; Validity. (i) The Company has the requisite corporate power and authority
to enter into and perform its obligations under this Agreement and each of the other Transaction Documents, and to issue the Securities in accordance with the terms hereof and thereof, (ii) the execution and delivery of the Transaction
Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby, including without limitation, the issuance of the Initial Commitment Shares (as defined below in Section 5(e)), the
reservation for issuance and the issuance of the Additional Commitment Shares (as defined below in Section 5(e)), and the reservation for issuance as Purchase Shares of 7,387,096 shares of Common Stock and the issuance of
the Purchase Shares issuable under this Agreement, have been duly authorized by the Company’s Board of Directors and no further consent or authorization is required by the Company, its Board of Directors or its stockholders (except as provided
in this Agreement), (iii) this Agreement has been, and each other Transaction Document to which the Company is a party shall be on the Commencement Date when delivered in accordance with the terms hereof, duly executed and delivered by the Company
and (iv) this Agreement constitutes, and each other Transaction Document upon its execution on behalf of the Company, shall constitute, the valid and binding obligations of the Company enforceable against the Company in accordance with their
terms, except as such enforceability may be limited by (i) general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of
creditors’ rights and remedies (ii) as public policy underlying any law, rule or regulation (including federal or state securities law, rule or regulation) with regards to indemnification, contribution or exculpation. The Board of
Directors of the Company has approved the resolutions (the “Signing Resolutions”) substantially in the form as set forth as Exhibit B attached hereto to authorize this Agreement and the transactions contemplated hereby. The
Signing Resolutions are valid, in full force and effect and have not been modified or supplemented in any respect. The Company has delivered to the Investor a true and correct copy of a unanimous written consent adopting the Signing Resolutions
executed by all of the members of the Board of Directors of the Company. Except as set forth in this Agreement, no other approvals or consents of the Company’s Board of Directors, any authorized committee thereof, and/or stockholders is
necessary under applicable laws and the Company’s Certificate of Incorporation and/or Bylaws to authorize the execution and delivery of this Agreement or any of the transactions contemplated hereby, including, but not limited to, the issuance
of the Commitment Shares and the issuance of the Purchase Shares. 
 (c)    Capitalization. As of the date
hereof, the authorized capital stock of the Company is set forth in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017. Except as disclosed in the SEC Documents (as
defined below), (i) no shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company, (ii) there are no outstanding debt
securities, (iii) there are no outstanding options, 

  
 -11- 

 
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any
of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options,
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, (iv) there are no agreements
or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the Securities Act (except the Registration Rights Agreement), (v) there are no outstanding securities or
instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound
to redeem a security of the Company or any of its Subsidiaries, (vi) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities as described in this Agreement
and (vii) the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. The Company has furnished to the Investor true and correct copies of the Company’s
Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s Bylaws, as amended and as in effect on the date hereof (the “Bylaws”). 

(d)    Issuance of Securities. Upon issuance and payment therefor in accordance with the terms and conditions of
this Agreement, the Purchase Shares shall be validly issued, fully paid and nonassessable and free from all taxes, liens, charges, restrictions, rights of first refusal and preemptive rights with respect to the issue thereof, with the holders being
entitled to all rights accorded to a holder of Common Stock. Upon issuance in accordance with the terms and conditions of this Agreement, the Commitment Shares (as defined below in Section 5(e)) shall be validly issued,
fully paid and nonassessable and free from all taxes, liens, charges, restrictions, rights of first refusal and preemptive rights with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock.
7,387,096 shares of Common Stock have been duly authorized and reserved for issuance upon purchase under this Agreement as Purchase Shares. 227,500 shares of Common Stock (subject to equitable adjustment for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction) have been duly authorized and reserved for issuance as Additional Commitment Shares in accordance with this Agreement. 

(e)    No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the reservation for issuance and issuance of the Purchase Shares and the Commitment Shares) will not (i) result in a violation of
the Certificate of Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the Bylaws or (ii) conflict with, or constitute a default (or an event which 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 of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party that has
not been waived, or result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and the rules and regulations of the Principal Market applicable to the Company or any of
its Subsidiaries) or by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except in the case of conflicts, defaults, terminations, amendments, accelerations, cancellations and violations under

  
 -12- 

 
clause (ii), which would not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor its Subsidiaries is in violation of any term of or in default under its
Certificate of Incorporation, any Certificate of Designation, Preferences and Rights of any outstanding series of preferred stock of the Company or Bylaws or their organizational charter or bylaws, respectively. Neither the Company nor any of its
Subsidiaries is in violation of any term of or is in default under any material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or regulation applicable to the Company or its
Subsidiaries, except for possible conflicts, defaults, terminations or amendments that would not reasonably be expected to have a Material Adverse Effect. The business of the Company and its Subsidiaries is not being conducted, and shall not be
conducted, in violation of any law, ordinance or regulation of any governmental entity, except for possible violations, the sanctions for which either individually or in the aggregate would not reasonably be expected to have a Material Adverse
Effect. Except as specifically contemplated by this Agreement and as required under the Securities Act or applicable state securities laws and the rules and regulations of the Principal Market, the Company is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or governmental agency or any regulatory or self-regulatory agency in order for it to execute, deliver or perform any of its obligations under or contemplated by the
Transaction Documents in accordance with the terms hereof or thereof. Except as set forth elsewhere in this Agreement, all consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding
sentence shall be obtained or effected on or prior to the Commencement Date. Since October 12, 2016, the Company has not received nor delivered any notices or correspondence from or to the Principal Market pertaining the Company’s non-compliance with any continued listing standards of the Principal Market. To the Company’s knowledge, the Principal Market has not commenced any delisting proceedings against the Company. 

(f)    SEC Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and
other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the twelve months preceding the date hereof (or such shorter period as the Company was
required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Documents”) on a timely
basis or has received a valid extension of such time of filing and has filed any such SEC Documents prior to the expiration of any such extension. As of their respective dates, the SEC Documents complied in all material respects with the
requirements of the Securities Act and the Exchange Act, as applicable. None of the SEC Documents, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Documents comply in all material respects with applicable accounting
requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a
consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by
GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case
of unaudited statements, to normal, immaterial, year-end audit adjustments. Except as publicly available through the SEC’s Electronic Data Gathering, Analysis, and Retrieval System
(“EDGAR”), the Company has received no notices or correspondence from the SEC for the one year preceding the date hereof. To the Company’s knowledge, the SEC has not commenced any enforcement proceedings against the
Company or any of its Subsidiaries. 

  
 -13- 

 (g)    Absence of Certain Changes. Except as disclosed in the SEC
Documents, since December 31, 2016, there has been no material adverse change in the business, properties, operations, financial condition or results of operations of the Company or its Subsidiaries. The Company has not taken any steps, and
does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy
or insolvency proceedings. The Company is financially solvent and is generally able to pay its debts as they become due. 

(h)    Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any
court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries, threatened against or affecting the Company, the Common Stock or any of the Company’s or its
Subsidiaries’ officers or directors in their capacities as such that would reasonably be expected to have a Material Adverse Effect. 

(i)    Acknowledgment Regarding Investor’s Status. The Company acknowledges and agrees that the Investor is
acting solely in the capacity of arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that the Investor is not acting as a financial advisor or
fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby and any advice given by the Investor or any of its representatives or agents in connection with the
Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase of the Securities. The Company further represents to the Investor that the Company’s decision to enter into the
Transaction Documents has been based solely on the independent evaluation by the Company and its representatives and advisors. 

(j)    No General Solicitation; No Integrated Offering. Neither the Company, nor any of its affiliates, nor any
Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with the offer or sale of the Securities. Neither the Company,
nor or any of its affiliates, nor any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the offer
and sale of any of the Securities under the Securities Act, whether through integration with prior offerings or otherwise, or cause this offering of the Securities to be integrated with prior offerings by the Company in a manner that would require
stockholder approval pursuant to the rules of the Principal Market on which any of the securities of the Company are listed or designated. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the
Principal Market. 
 (k)    Intellectual Property Rights. Except as disclosed in the SEC documents, to the
Company’s knowledge, the Company and its Subsidiaries own or possess adequate rights or licenses to use all material trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights,
licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted. None of the Company’s material trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or other 

  
 -14- 

 
intellectual property rights have expired or terminated, or, by the terms and conditions thereof, could expire or terminate within two years from the date of this Agreement. The Company and its
Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of any material trademark, trade name rights, patents, patent rights, copyrights, service names, service marks, service mark registrations, and there is no
claim, action or proceeding being made or brought against, or to the Company’s knowledge, being threatened against, the Company or its Subsidiaries regarding trademark, trade name, patents, patent rights, copyright, service names, service
marks, service mark registrations or other infringement, which could reasonably be expected to have a Material Adverse Effect. 

(l)    Environmental Laws. Except as disclosed in the SEC documents, the Company and its Subsidiaries (i) are
in compliance with any and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and
conditions of any such permit, license or approval, except where, in each of the three foregoing clauses, the failure to so comply would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

(m)    Title. Except as disclosed in the SEC documents, the Company and its Subsidiaries have good and marketable
title in fee simple to all real property owned by them and good and marketable title in all personal property owned by them that is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances
and defects (“Liens”) and, except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and its Subsidiaries and
Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and its Subsidiaries are held by them under valid,
subsisting and enforceable leases with which the Company and its Subsidiaries are in compliance with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and
its Subsidiaries. 
 (n)    Insurance. The Company and each of its Subsidiaries are insured by insurers of
recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor
any such Subsidiary has been refused any insurance coverage sought or applied for and neither the Company nor any such Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not materially and adversely affect the condition, financial or otherwise, or the earnings, business or operations of the
Company and its Subsidiaries, taken as a whole. 
 (o)    Regulatory Permits. Except as disclosed in the SEC
documents, the Company and its Subsidiaries possess all material certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, and neither the
Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit. 

  
 -15- 

 (p)    Tax Status. Except as disclosed in the SEC documents, the
Company and each of its Subsidiaries has filed, subject to any extensions of time, all federal and state income and all other material returns, reports and declarations required by any jurisdiction to which it is subject in connection with taxes
(unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes that are material in amount, shown or
determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such
returns, reports or declarations apply, and except as would not reasonably be expected to have a Material Adverse Effect. 

(q)    Transactions With Affiliates. Except as disclosed in the SEC Documents, to the Company’s knowledge,
none of the Company’s stockholders, officers or directors or any family member or affiliate of any of the foregoing, has either directly or indirectly an interest in, or is a party to, any transaction that would be required to be disclosed as a
related party transaction pursuant to Item 404 of Regulation S-K promulgated under the Securities Act. 

(r)    Application of Takeover Protections. The Company and its board of directors have taken or will take prior to
the Commencement Date all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under
the Certificate of Incorporation or the laws of the state of its incorporation which is or could become applicable to the Investor as a result of the transactions contemplated by this Agreement, including, without limitation, the Company’s
issuance of the Securities and the Investor’s ownership of the Securities. 
 (s)    Disclosure. Except
with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents that will be timely publicly disclosed by the Company, the Company confirms that neither it nor any other Person acting on its behalf has
provided the Investor or its agents or counsel with any information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the Registration
Statement or the SEC Documents. The Company understands and confirms that the Investor will rely on the foregoing representation in effecting purchases and sales of securities of the Company. All of the disclosure furnished by or on behalf of
the Company to the Investor regarding the Company, its business and the transactions contemplated hereby, including the disclosure schedules to this Agreement, taken as a whole is true and correct and does not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during the twelve
months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that the Investor neither makes nor has made any representations or warranties with respect to the transactions contemplated hereby
other than those specifically set forth in Section 3 hereof. 
 (t)    Foreign Corrupt Practices. Neither
the Company, nor to the knowledge of the Company, any agent or other Person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to
foreign or domestic 

  
 -16- 

 
political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds,
(iii) failed to disclose fully any contribution made by the Company (or made by any Person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the
Foreign Corrupt Practices Act of 1977, as amended. 
 (u)    DTC Eligibility. The Company, through the Transfer
Agent, currently participates in the DTC Fast Automated Securities Transfer (FAST) Program and the Common Stock can be transferred electronically to third parties via the DTC Fast Automated Securities Transfer (FAST) Program. 

(v)    Sarbanes-Oxley. The Company is in compliance in all material respects with all provisions of the
Sarbanes-Oxley Act of 2002, as amended, which are applicable to it as of the date hereof. 
 (w)    Certain Fees.
No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by
the Transaction Documents. The Investor shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section 4(w) that may be
due in connection with the transactions contemplated by the Transaction Documents. 
 (x)    Investment Company.
The Company is not, and immediately after receipt of payment for the Securities will not be, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

(y)    Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) of the
Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock pursuant to the Exchange Act nor has the Company received any notification
that the SEC is currently contemplating terminating such registration. The Company has not since October 12, 2016, received any notice from the Principal Market to the effect that the Company is not in compliance with the listing or maintenance
requirements of the Principal Market. The Company is in compliance with all such listing and maintenance requirements. 

(z)    Accountants. The Company’s accountants are set forth in the SEC Documents and, to the knowledge of the
Company, such accountants are an independent registered public accounting firm as required by the Securities Act. 

(aa)    No Market Manipulation. The Company has not, and to its knowledge no Person acting on its behalf has,
(i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for,
purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company. 

(bb)    Shell Company Status. The Company is not currently, and has never been, an issuer identified in Rule
144(i)(1) under the Securities Act. 

  
 -17- 

 (cc)    No Disqualification Events. None of the Company, any of its
predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering contemplated hereby, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities,
calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”) is subject to
any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under
the Securities Act. The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. 
  

	 	5.	COVENANTS. 

 (a)    Filing of Current Report and Registration
Statement. The Company agrees that it shall, within the time required under the Exchange Act, file with the SEC a report on Form 8-K relating to the transactions contemplated by, and describing the
material terms and conditions of, the Transaction Documents (the “Current Report”). The Company shall also file with the SEC, within fifteen (15) Business Days from the date hereof, a new registration statement (the
“Registration Statement”) covering only the resale of the Purchase Shares and all of the Commitment Shares, in accordance with the terms of the Registration Rights Agreement between the Company and the Investor, dated as of the date
hereof (the “Registration Rights Agreement”). The Company shall permit the Investor to review and comment upon a substantially complete pre-filing draft of the Current Report at least two
(2) Business Days prior to its filing with the SEC, and the Company shall give due consideration to all such comments. The Investor shall use its reasonable efforts to comment upon a substantially complete
pre-filing draft of the Current Report within one (1) Business Day from the date the Investor receives it from the Company. 

(b)    Blue Sky. The Company shall take all such action, if any, as is reasonably necessary in order to obtain an
exemption for or to register or qualify (i) the issuance of the Commitment Shares and the sale of the Purchase Shares to the Investor under this Agreement and (ii) any subsequent resale of all Commitment Shares and all Purchase Shares by
the Investor, in each case, under applicable securities or “Blue Sky” laws of the states of the United States in such states as is reasonably requested by the Investor from time to time, and shall provide evidence of any such action so
taken to the Investor. 
 (c)    Listing/DTC. To the extent applicable, the Company shall promptly secure the
listing of all of the Purchase Shares and Commitment Shares to be issued to the Investor hereunder on the Principal Market (subject to official notice of issuance) and upon each other national securities exchange or automated quotation system, if
any, upon which the Common Stock is then listed, and shall use commercially reasonable efforts to maintain, so long as any shares of Common Stock shall be so listed, such listing of all such Securities from time to time issuable hereunder. The
Company shall use commercially reasonable efforts to maintain the listing of the Common Stock on the Principal Market and shall comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules and
regulations of the Principal Market. Neither the Company nor any of its Subsidiaries shall take any action that would reasonably be expected to result in the delisting or suspension of the Common Stock on the Principal Market. The Company shall
promptly, and in no event later than the following Business Day, provide to the Investor copies of any notices it receives from the Principal Market regarding the continued eligibility of the Common Stock for listing on the Principal Market;
provided, however, that the Company shall not be required to provide the Investor copies of any such notice that the Company reasonably believes constitutes material non-public information and the Company
would not be 

  
 -18- 

 
required to publicly disclose such notice in any report or statement filed with the SEC and under the Exchange Act or the Securities Act. The Company shall pay all fees and expenses in connection
with satisfying its obligations under this Section 5(c). The Company shall take all action necessary to ensure that its Common Stock can be transferred electronically as DWAC Shares. 

(d)    Prohibition of Short Sales and Hedging Transactions. The Investor agrees that beginning on the date of this
Agreement and ending on the date of termination of this Agreement as provided in Section 11, the Investor and its agents, representatives and affiliates shall not in any manner whatsoever enter into or effect, directly or indirectly, any (i)
“short sale” (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock. 

(e)    Issuance of Commitment Shares. In consideration for the Investor’s execution and delivery of this
Agreement, the Company shall cause to be issued to the Investor a total of 227,500 shares of Common Stock (the “Initial Commitment Shares”) promptly following the execution of this Agreement and shall deliver to the Transfer Agent
the Irrevocable Transfer Agent Instructions with respect to the issuance of such Initial Commitment Shares. The Company shall cause to be issued to the Investor up to 227,500 shares of Common Stock (the “Additional Commitment
Shares” and, collectively with the Initial Commitment Shares, the “Commitment Shares”), as follows: in connection with each purchase of Purchase Shares hereunder, the Company shall issue to the Investor a number of shares
of Common Stock equal to the product of (i) 227,500 and (y) the Purchase Amount Fraction. The “Purchase Amount Fraction” shall mean a fraction, the numerator of which is the Purchase Amount purchased by the Investor with
respect to such purchase of Purchase Shares and the denominator of which is Thirty-Five Million Dollars ($35,000,000). The Additional Commitment Shares shall be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction. For the avoidance of doubt, (1) all of the Initial Commitment Shares shall be fully earned as of the date of this Agreement, whether or not the
Commencement shall occur or any Purchase Shares are purchased by the Investor under this Agreement and irrespective of any subsequent termination of this Agreement and (2) the Additional Commitment Shares shall be fully earned as of the date of
their issuance pursuant to this Agreement, irrespective of any subsequent termination of this Agreement. 

(f)    Due Diligence; Non-Public Information. The Investor shall have the
right, from time to time as the Investor may reasonably deem appropriate, and upon reasonable advance notice to the Company, to perform reasonable due diligence on the Company during normal business hours. The Company and its officers and employees
shall provide information and reasonably cooperate with the Investor in connection with any reasonable request by the Investor related to the Investor’s due diligence of the Company. Each party hereto agrees not to disclose any Confidential
Information of the other party to any third party and shall not use the Confidential Information for any purpose other than in connection with, or in furtherance of, the transactions contemplated hereby. Each party hereto acknowledges that the
Confidential Information shall remain the property of the disclosing party and agrees that it shall take all reasonable measures to protect the secrecy of any Confidential Information disclosed by the other party. The receiving party may disclose
Confidential Information to the extent such information is required to be disclosed by law, regulation or order of a court of competent jurisdiction or regulatory authority, provided that the receiving party shall promptly notify the disclosing
party when such requirement to disclose arises, and shall cooperate with the disclosing party so as to enable the disclosing party to: (i) seek an appropriate protective order; and (ii) make any applicable claim of confidentiality in
respect of such Confidential Information; and provided, further, that the receiving party shall disclose Confidential 

  
 -19- 

 
Information only to the extent required by the protective order or other similar order, if such an order is obtained, and, if no such order is obtained, the receiving party shall disclose only
the minimum amount of such Confidential Information required to be disclosed in order to comply with the applicable law, regulation or order. In addition, any such Confidential Information disclosed pursuant to this section shall continue to be
deemed Confidential Information. Notwithstanding anything in this Agreement to the contrary, the Company and the Investor agree that neither the Company nor any other Person acting on its behalf shall provide the Investor or its agents or counsel
with any information that constitutes or may reasonably be considered to constitute material, non-public information, unless a simultaneous public announcement thereof is made by the Company in the manner
contemplated by Regulation FD. In the event of a breach of the foregoing covenant by the Company or any Person acting on its behalf (as determined in the reasonable good faith judgment of the Investor), in addition to any other remedy provided
herein or in the other Transaction Documents, if the Investor is holding any Securities at the time of the disclosure of such material, non-public information, the Investor shall have the right to make a
public disclosure, in the form of a press release, public advertisement or otherwise, of such material, non-public information without the prior approval by the Company; provided the Investor shall have first
provided notice to the Company that it believes it has received information that constitutes material, non-public information, the Company shall have at least 48 hours to publicly disclose such material, non-public information prior to any such disclosure by the Investor, and the Company shall have failed to demonstrate to the Investor within such time period that such information does not constitute material, non-public information, and the Company shall have failed to publicly disclose such material, non-public information within such time period. The Investor shall not have any
liability to the Company, any of its Subsidiaries, or any of their respective directors, officers, employees, stockholders or agents, for any such disclosure. The Company understands and confirms that the Investor shall be relying on the foregoing
covenants in effecting transactions in securities of the Company. 
 (g)     Purchase Records. The Investor and
the Company shall each maintain records showing the remaining Available Amount at any given time and the dates and Purchase Amounts for each Regular Purchase, Accelerated Purchase and Additional Purchase or shall use such other method, reasonably
satisfactory to the Investor and the Company. 
 (h)     Taxes. The Company shall pay any and all transfer, stamp
or similar taxes that may be payable with respect to the issuance and delivery of any shares of Common Stock to the Investor made under this Agreement.  

(i)    Use of Proceeds. The Company will use the net proceeds from the offering as described in the Registration
Statement or the SEC Documents. 
 (j)    Other Transactions. The Company shall not enter into, announce or
recommend to its stockholders any agreement, plan, arrangement or transaction in or of which the terms thereof would restrict, materially delay, conflict with or impair the ability or right of the Company to perform its obligations under the
Transaction Documents, including, without limitation, the obligation of the Company to deliver the Purchase Shares and the Commitment Shares to the Investor in accordance with the terms of the Transaction Documents. 

(k)    Integration. From and after the date of this Agreement, neither the Company, nor or any of its affiliates
will, and the Company shall use its reasonable efforts to ensure that no Person acting on their behalf will, directly or indirectly, make any offers or sales of any security or solicit any offers to buy

  
 -20- 

 
any security, under circumstances that would (i) require registration of the offer and sale of any of the Securities by the Company to the Investor under the Securities Act, or
(ii) cause this offering of the Securities by the Company to the Investor to be integrated with other offerings by the Company in a manner that would require stockholder approval pursuant to the rules of the Principal Market on which any of the
securities of the Company are listed or designated, unless in the case of this clause (ii), stockholder approval is obtained before the closing of such subsequent transaction in accordance with the rules of such Principal Market. 

 

	 	6.	TRANSFER AGENT INSTRUCTIONS. 

 (a)    On the date of this Agreement,
the Company shall issue irrevocable instructions to the Transfer Agent substantially in the form attached hereto as Exhibit D to issue the Initial Commitment Shares in accordance with the terms of this Agreement (the
“Irrevocable Transfer Agent Instructions”). The certificate(s) or book-entry statement(s) representing the Initial Commitment Shares, except as set forth below, shall bear the following restrictive legend (the “Restrictive
Legend”): 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS. 
 (b)    On the earlier of (i) the
Commencement Date and (ii) such time that the Investor shall request, provided all conditions of Rule 144 under the Securities Act are met, the Company shall, no later than two (2) Business Days following the delivery by the Investor to
the Company or the Transfer Agent of one or more legended certificates or book-entry statements representing Initial Commitment Shares (which certificates or book-entry statements the Investor shall promptly deliver on or prior to the first to occur
of the events described in clauses (i) and (ii) of this sentence), as directed by the Investor, issue and deliver (or cause to be issued and delivered) to the Investor, as requested by the Investor, either: (A) a certificate or book-entry
statement representing such Initial Commitment Shares that is free from all restrictive and other legends or (B) a number of shares of Common Stock equal to the number of Initial Commitment Shares represented by the certificate(s) or book-entry
statement(s) so delivered by the Investor as DWAC Shares. The Company shall take all actions to carry out the intent and accomplish the purposes of the immediately preceding sentence, including, without limitation, delivering all such legal
opinions, consents, certificates, resolutions and instructions to the Transfer Agent, and any successor transfer agent of the Company, as may be requested from time to time by the Investor or necessary or desirable to carry out the intent and
accomplish the purposes of the immediately preceding sentence. On the Commencement Date, the Company shall issue to the Transfer Agent, and any subsequent transfer agent, (i) irrevocable instructions in the form substantially similar to those
used by the Investor in substantially similar transactions (the “Commencement Irrevocable Transfer Agent Instructions”) and 

  
 -21- 

 
(ii) the notice of effectiveness of the Registration Statement in the form attached as an exhibit to the Registration Rights Agreement (the “Notice of Effectiveness of Registration
Statement”), in each case to issue the Commitment Shares and the Purchase Shares in accordance with the terms of this Agreement and the Registration Rights Agreement. All Purchase Shares and Additional Commitment Shares to be issued from
and after Commencement to or for the benefit of the Investor pursuant to this Agreement shall be issued only as DWAC Shares. The Company represents and warrants to the Investor that, while this Agreement is effective, no instruction other than the
Commencement Irrevocable Transfer Agent Instructions and the Notice of Effectiveness of Registration Statement referred to in this Section 6(b) will be given by the Company to the Transfer Agent with respect to the Purchase
Shares or the Commitment Shares from and after Commencement, and the Purchase Shares and the Commitment Shares covered by the Registration Statement shall otherwise be freely transferable on the books and records of the Company. The Company agrees
that if the Company fails to fully comply with the provisions of this Section 6(b) within five (5) Business Days of the Investor providing the deliveries referred to above, the Company shall, at the Investor’s
written instruction, purchase such shares of Common Stock containing the Restrictive Legend from the Investor at the greater of the (i) purchase price paid for such shares of Common Stock (as applicable) and (ii) the Closing Sale Price of
the Common Stock on the date of the Investor’s written instruction. 
  

	 	7.	CONDITIONS TO THE COMPANY’S RIGHT TO COMMENCE SALES OF SHARES OF COMMON STOCK. 

 The
right of the Company hereunder to commence sales of the Purchase Shares on the Commencement Date is subject to the satisfaction of each of the following conditions: 

(a)     The Investor shall have executed each of the Transaction Documents and delivered the same to the Company;

 (b)    The Registration Statement covering the resale of the Purchase Shares and all of the Initial Commitment Shares
and Additional Commitment Shares shall have been declared effective under the Securities Act by the SEC, and no stop order with respect to the Registration Statement shall be pending or threatened by the SEC; and

(c)     The representations and warranties of the Investor shall be true and correct in all material respects as of
the date hereof and as of the Commencement Date as though made at that time. 
  

	 	8.	CONDITIONS TO THE INVESTOR’S OBLIGATION TO PURCHASE SHARES OF COMMON STOCK. 

 The
obligation of the Investor to buy Purchase Shares under this Agreement is subject to the satisfaction of each of the following conditions on or prior to the Commencement Date and, once such conditions have been initially satisfied, there shall not
be any ongoing obligation to satisfy such conditions after the Commencement has occurred: 
 (a)    The Company shall
have executed each of the Transaction Documents and delivered the same to the Investor; 

  
 -22- 

 (b)    The Company shall have issued or caused to be issued to the Investor
(i) one or more certificates or book-entry statements representing the Initial Commitment Shares free from all restrictive and other legends or (ii) a number of shares of Common Stock equal to the number of Initial Commitment Shares as
DWAC Shares, in each case in accordance with Section 6(b); 
 (c)    The Common Stock shall be
listed or quoted on the Principal Market, trading in the Common Stock shall not have been within the last 365 days suspended by the SEC or the Principal Market, and all Securities to be issued by the Company to the Investor pursuant to this
Agreement shall have been, if applicable, approved for listing or quotation on the Principal Market in accordance with the applicable rules and regulations of the Principal Market, subject only to official notice of issuance; 

(d)    The Investor shall have received the opinions of the Company’s legal counsel dated as of the Commencement Date
substantially in the form heretofore agreed by the parties hereto; 
 (e)    The representations and warranties of the
Company shall be true and correct in all material respects (except to the extent that any of such representations and warranties is already qualified as to materiality in Section 4 above, in which case, such representations and warranties shall
be true and correct without further qualification) as of the date hereof and as of the Commencement Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of
such date) and the Company shall have performed, satisfied and complied with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement
Date. The Investor shall have received a certificate, executed by the CEO, President or CFO of the Company, dated as of the Commencement Date, to the foregoing effect in the form attached hereto as Exhibit A; 

(f)    The Board of Directors of the Company shall have adopted resolutions in substantially the form attached hereto as
Exhibit B which shall be in full force and effect without any amendment or supplement thereto as of the Commencement Date; 

(g)    As of the Commencement Date, the Company shall have reserved out of its authorized and unissued Common Stock,
(i) solely for the purpose of effecting purchases of Purchase Shares hereunder, 7,387,096 shares of Common Stock, and (ii) solely for the purpose of effecting the issuance of Additional Commitment Shares hereunder, 227,500 shares of Common
Stock; 
 (h)    The Commencement Irrevocable Transfer Agent Instructions and the Notice of Effectiveness of
Registration Statement each shall have been delivered to and acknowledged in writing by the Company and the Company’s Transfer Agent (or any successor transfer agent); 

(i)    The Company shall have delivered to the Investor a certificate evidencing the incorporation and good standing of
the Company in the State of Delaware issued by the Secretary of State of the State of Delaware as of a date within ten (10) Business Days of the Commencement Date; 

(j)    The Company shall have delivered to the Investor a certified copy of the Certificate of Incorporation as certified
by the Secretary of State of the State of Delaware within ten (10) Business Days of the Commencement Date; 

  
 -23- 

 (k)    The Company shall have delivered to the Investor a secretary’s
certificate executed by the Secretary of the Company, dated as of the Commencement Date, in the form attached hereto as Exhibit C; 

(l)    The Registration Statement covering the resale of the Purchase Shares and all of the Initial Commitment Shares and
Additional Commitment Shares shall have been declared effective under the Securities Act by the SEC, and no stop order with respect to the Registration Statement shall be pending or threatened by the SEC. The Company shall have prepared and filed
with the SEC, not later than one (1) Business Day after the effective date of the Registration Statement, a final and complete prospectus (the preliminary form of which shall be included in the Registration Statement) and shall have delivered
to the Investor a true and complete copy thereof. Such prospectus shall be current and available for the resale by the Investor of all of the Securities covered thereby. The Current Report shall have been filed with the SEC, as required pursuant to
Section 5(a). All reports, schedules, registrations, forms, statements, information and other documents required to have been filed by the Company with the SEC at or during the
12-month period immediately preceding the date of this Agreement pursuant to the reporting requirements of the Exchange Act shall have been filed with the SEC within the applicable time periods prescribed for
such filings under the Exchange Act, including any applicable extension periods contemplated by the Exchange Act; 

(m)    No Event of Default (as defined below) has occurred, or any event which, after notice and/or lapse of time, would
reasonably be expected to become an Event of Default has occurred; 
 (n)    All federal, state and local governmental
laws, rules and regulations applicable to the transactions contemplated by the Transaction Documents and necessary for the execution, delivery and performance of the Transaction Documents and the consummation of the transactions contemplated thereby
in accordance with the terms thereof shall have been complied with, and all consents, authorizations and orders of, and all filings and registrations with, all federal, state and local courts or governmental agencies and all federal, state and local
regulatory or self-regulatory agencies necessary for the execution, delivery and performance of the Transaction Documents and the consummation of the transactions contemplated thereby in accordance with the terms thereof shall have been obtained or
made, including, without limitation, in each case those required under the Securities Act, the Exchange Act, applicable state securities or “Blue Sky” laws or applicable rules and regulations of the Principal Market, or otherwise required
by the SEC, the Principal Market or any state securities regulators; 
 (o)    No statute, regulation, order, decree,
writ, ruling or injunction shall have been enacted, entered, promulgated, threatened or endorsed by any federal, state, local or foreign court or governmental authority of competent jurisdiction which prohibits the consummation of or which would
materially modify or delay any of the transactions contemplated by the Transaction Documents; and 
 (p)    No action,
suit or proceeding before any federal, state, local or foreign arbitrator or any court or governmental authority of competent jurisdiction shall have been commenced or threatened, and no inquiry or investigation by any federal, state, local or
foreign governmental authority of competent jurisdiction shall have been commenced or threatened, against the Company, or any of the officers, directors or affiliates of the Company, seeking to restrain, prevent or change the transactions
contemplated by the Transaction Documents, or seeking material damages in connection with such transactions. 

  
 -24- 

	 	9.	INDEMNIFICATION. 

 In consideration of the Investor’s execution and delivery of the
Transaction Documents and acquiring the Securities hereunder and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold harmless the Investor and all of its
affiliates, stockholders, officers, directors and employees and any of the foregoing Person’s agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement)
(collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such
Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or
arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, (b) any
breach of any covenant, agreement or obligation of the Company contained in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, or (c) any cause of action, suit or claim brought or made
against such Indemnitee and arising out of or resulting from the execution, delivery, performance or enforcement of the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, other than, in the case of
clause (c), with respect to Indemnified Liabilities which directly and primarily result from the fraud, gross negligence or willful misconduct of an Indemnitee. The indemnity in this Section 9 shall not apply to amounts paid in settlement of
any claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed. To the extent that the foregoing undertaking by the Company may be unenforceable for
any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. Payment under this indemnification shall be made within thirty
(30) days from the date Investor makes written request for it. A certificate containing reasonable detail as to the amount of such indemnification submitted to the Company by Investor shall be conclusive evidence, absent manifest error, of the
amount due from the Company to Investor. If any action shall be brought against any Indemnitee in respect of which indemnity may be sought pursuant to this Agreement, such Indemnitee shall promptly notify the Company in writing, and the Company
shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Indemnitee. Any Indemnitee shall have the right to employ separate counsel in any such action and participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of such Indemnitee, except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a
reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Company and the
position of such Indemnitee, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. 

  
 -25- 

	 	10.	EVENTS OF DEFAULT. 

 An “Event of Default” shall be deemed to have
occurred at any time as any of the following events occurs: 
 (a)    the effectiveness of a registration statement
registering the resale of the Securities lapses for any reason (including, without limitation, the issuance of a stop order or similar order) or such registration statement (or the prospectus forming a part thereof) is unavailable to the Investor
for resale of any or all of the Securities to be issued to the Investor under the Transaction Documents, and such lapse or unavailability continues for a period of ten (10) consecutive Business Days or for more than an aggregate of thirty
(30) Business Days in any 365-day period, but excluding a lapse or unavailability where (i) the Company terminates a registration statement after the Investor has confirmed in writing that all of the
Securities covered thereby have been resold or (ii) the Company supersedes one registration statement with another registration statement, including (without limitation) by terminating a prior registration statement when it is effectively
replaced with a new registration statement covering Securities (provided in the case of this clause (ii) that all of the Securities covered by the superseded (or terminated) registration statement that have not theretofore been resold are
included in the superseding (or new) registration statement); 
 (b)    the suspension of the Common Stock from trading
on the Principal Market for a period of one (1) Business Day, provided that the Company may not direct the Investor to purchase any shares of Common Stock during any such suspension; 

(c)    the delisting of the Common Stock from The NASDAQ Capital Market, provided, however, that the Common Stock is not
immediately thereafter trading on the New York Stock Exchange, The NASDAQ Global Market, The NASDAQ Global Select Market, the NYSE MKT, the NYSE Arca, the OTC Bulletin Board, or the OTCQX or OTCQB operated by the OTC Markets Group, Inc. (or any
nationally recognized successor to any of the foregoing); 
 (d)    the failure for any reason by the Transfer Agent to
issue (i) the Additional Commitment Shares to the Investor within three (3) Business Days after the date on which the Investor is entitled to receive such Additional Commitment Shares pursuant to Section 5(e)
hereof and (ii) Purchase Shares to the Investor within three (3) Business Days after the applicable Purchase Date or Accelerated Purchase Date (as applicable) on which the Investor is entitled to receive such Purchase Shares; 

(e)    the Company breaches any representation, warranty, covenant or other term or condition under any Transaction
Document if such breach would reasonably be expected to have a Material Adverse Effect and except, in the case of a breach of a covenant which is reasonably curable, only if such breach continues for a period of at least five (5) Business Days;

 (f)    if any Person commences a proceeding against the Company pursuant to or within the meaning of any Bankruptcy
Law; 
 (g)    if the Company, pursuant to or within the meaning of any Bankruptcy Law, (i) commences a voluntary
case, (ii) consents to the entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property, or (iv) makes a general assignment for the
benefit of its creditors or is generally unable to pay its debts as the same become due; 

  
 -26- 

 (h)    a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that (i) is for relief against the Company in an involuntary case, (ii) appoints a Custodian of the Company or for all or substantially all of its property, or (iii) orders the liquidation of the Company or any
Subsidiary; 
 (i)    if at any time the Company is not eligible to transfer its Common Stock electronically as DWAC
Shares; or 
 (j)    if at any time after the Commencement Date, the Exchange Cap is reached (to the extent such
Exchange Cap is applicable pursuant to Section 2(f) hereof). 
 In addition to any other rights and remedies under applicable law
and this Agreement, so long as an Event of Default has occurred and is continuing, or if any event which, after notice and/or lapse of time, would reasonably be expected to become an Event of Default, has occurred and is continuing, the Company
shall not deliver to the Investor any Regular Purchase Notice, Accelerated Purchase Notice or Additional Purchase Notice. 
  

	 	11.	TERMINATION 

 This Agreement may be terminated only as follows: 

(a)    If pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person
commences a proceeding against the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a general assignment for the benefit of its creditors (any of which would be an Event of
Default as described in Sections 10(f), 10(g) and 10(h) hereof), this Agreement shall automatically terminate without any liability or payment to the Company (except as set forth below) without further action or notice by any
Person. 
 (b)    In the event that (i) the Company fails to file the Registration Statement with the SEC within
the period specified in Section 5(a) hereof in accordance with the terms of the Registration Rights Agreement or (ii) the Commencement shall not have occurred on or before February 28, 2018, due to the failure to
satisfy the conditions set forth in Sections 7 and 8 above with respect to the Commencement, then, in the case of clause (i) above, this Agreement may be terminated by the Investor at any time prior to the filing of the
Registration Statement and, in the case of clause (ii) above, this Agreement may be terminated by either party at the close of business on February 28, 2018 or thereafter, in each case without liability of such party to the other party
(except as set forth below); provided, however, that the right to terminate this Agreement under this Section 11(b) shall not be available to any party if such party is then in breach of any covenant or agreement contained
in this Agreement or any representation or warranty of such party contained in this Agreement fails to be true and correct such that the conditions set forth in Section 7(c) or Section 8(e), as
applicable, could not then be satisfied. 
 (c)     At any time after the Commencement Date, the Company shall have the
option to terminate this Agreement for any reason or for no reason by delivering notice (a “Company Termination Notice”) to the Investor electing to terminate this Agreement without any liability whatsoever of any party to any other
party under this Agreement (except as set forth below). The Company Termination Notice shall not be effective until one (1) Business Day after it has been received by the Investor. 

  
 -27- 

 (d)    This Agreement shall automatically terminate on the date that the
Company sells and the Investor purchases the full Available Amount as provided herein, without any action or notice on the part of any party and without any liability whatsoever of any party to any other party under this Agreement (except as set
forth below). 
 (e)    If, for any reason or for no reason, the full Available Amount has not been purchased in
accordance with Section 2 of this Agreement by the Maturity Date, this Agreement shall automatically terminate on the Maturity Date, without any action or notice on the part of any party and without any liability whatsoever
of any party to any other party under this Agreement (except as set forth below). 
 Except as set forth in Sections 11(a) (in respect of an Event of
Default under Sections 10(f), 10(g) and 10(h)), 11(d) and 11(e), any termination of this Agreement pursuant to this Section 11 shall be effected by written notice from the Company to the
Investor, or the Investor to the Company, as the case may be, setting forth the basis for the termination hereof. The representations and warranties and covenants of the Company and the Investor contained in Sections 3, 4, 5,
and 6 hereof, the indemnification provisions set forth in Section 9 hereof and the agreements and covenants set forth in Sections 10, 11 and 12 shall survive the execution
and delivery of this Agreement and any termination of this Agreement. No termination of this Agreement shall (i) affect the Company’s or the Investor’s rights or obligations under (A) this Agreement with respect to pending
Regular Purchases, Accelerated Purchases or Additional Purchases and the Company and the Investor shall complete their respective obligations with respect to any pending Regular Purchases, Accelerated Purchases and Additional Purchases under this
Agreement and (B) the Registration Rights Agreement, which shall survive any such termination, or (ii) be deemed to release the Company or the Investor from any liability for intentional misrepresentation or willful breach of any of the
Transaction Documents. 
  

	 	12.	MISCELLANEOUS. 

 (a)    Governing Law; Jurisdiction; Jury
Trial. The corporate laws of the State of Delaware shall govern all issues concerning the relative rights of the Company and its stockholders. All other questions concerning the construction, validity, enforcement and interpretation of this
Agreement and the other Transaction Documents shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or any other
jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Illinois,
County of Cook, for the adjudication of any dispute hereunder or under the other Transaction Documents or in connection herewith or therewith, or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. 

  
 -28- 

 EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE
ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 

(b)    Counterparts. This Agreement may be executed in two or more identical counterparts, all of which 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; provided that a facsimile signature or signature delivered by
e-mail in a “.pdf” format data file shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.

 (c)    Headings. The headings of this Agreement are for convenience of reference and shall not form part of,
or affect the interpretation of, this Agreement. 
 (d)    Severability. If any provision of this Agreement shall
be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction. 
 (e)    Entire Agreement. The Transaction Documents supersede all other
prior oral or written agreements between the Investor, the Company, their affiliates and Persons acting on their behalf with respect to the subject matter thereof, and this Agreement, the other Transaction Documents and the instruments referenced
herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Investor makes any representation, warranty, covenant
or undertaking with respect to such matters. The Company acknowledges and agrees that is has not relied on, in any manner whatsoever, any representations or statements, written or oral, other than as expressly set forth in the Transaction Documents.

 (f)    Notices. Any notices, consents or other communications required or permitted to be given under the
terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt when delivered personally; (ii) upon receipt when sent by facsimile or email (provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party); or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses
for such communications shall be: 
 If to the Company: 

Zosano Pharma Corporation 
 34790
Ardentech Court 
 Fremont, California 94555 

Telephone:        (510) 745-1200 

E-mail:              
gerbez@zosanopharma.com 
 Attention:          Georgia Erbez 

  
 -29- 

 With a copy to (which shall not constitute notice or service of process): 

Foley Hoag LLP 
 Seaport West 

155 Seaport Boulevard 
 Boston,
Massachusetts 02210 
 Telephone:        (617) 832-100 

Facsimile:         (617) 832-1108 

E-mail:              
saarestad@foleyhoag.com 
 Attention:         Stacie Aarestad, Esq. 

If to the Investor: 
 Lincoln
Park Capital Fund, LLC 
 440 North Wells, Suite 410 

Chicago, IL 60654 
 Telephone:        312-822-9300 

Facsimile:         
312-822-9301 

E-mail:              
jscheinfeld@lpcfunds.com/jcope@lpcfunds.com 
 Attention:         Josh Scheinfeld/Jonathan
Cope 
 With a copy to (which shall not constitute notice or service of process): 

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 

666 Third Avenue 
 New York, NY
10017 
 Telephone:        (212) 692-6267 

Facsimile:         (212) 983-3115 

E-mail:              
ajmarsico@mintz.com 
 Attention:         Anthony J. Marsico, Esq. 

If to the Transfer Agent: 

Computershare Trust Company, N.A. 

Syed Hussaini 
 Computershare 

330 N. Brand Blvd, Suite # 701 

Glendale, CA 91203 

Telephone:        (818) 254-3163 

Facsimile:         (818) 502-0674 

Attention:          Syed Hussani 

or at such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to
each other party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent or other communication, (B) mechanically or electronically
generated by the sender’s facsimile machine or email account containing the time, date, and recipient facsimile number or email address, as applicable, and an image of the first page of such transmission or (C) provided by a nationally
recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

  
 -30- 

 (g)    Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties and their respective successors and assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor, including by merger or
consolidation. The Investor may not assign its rights or obligations under this Agreement. 
 (h)    No Third Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 

(i)    Publicity. The Company shall afford the Investor and its counsel with the opportunity to review and comment
upon the form and substance of, and shall give reasonable consideration to all such comments from the Investor or its counsel on, any press release, SEC filing or any other public disclosure by or on behalf of the Company relating to the Investor,
its purchases hereunder or any aspect of the Transaction Documents or the transactions contemplated thereby, not less than 24 hours prior to the issuance, filing or public disclosure thereof. The Investor must be provided with a final version of any
such press release, SEC filing or other public disclosure at least 24 hours prior to any release, filing or use by the Company thereof. The Company agrees and acknowledges that its failure to fully comply with this provision constitutes a Material
Adverse Effect. 
 (j)    Further Assurances. Each party shall do and perform, or cause to be done and performed,
all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to consummate and make effective, as soon as reasonably possible,
the Commencement, and to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 

(k)    No Financial Advisor, Placement Agent, Broker or Finder. The Company represents and warrants to the Investor
that it has not engaged any financial advisor, placement agent, broker or finder in connection with the transactions contemplated hereby. The Investor represents and warrants to the Company that it has not engaged any financial advisor, placement
agent, broker or finder in connection with the transactions contemplated hereby. The Company shall be responsible for the payment of any fees or commissions, if any, of any financial advisor, placement agent, broker or finder relating to or arising
out of the transactions contemplated hereby. The Company shall pay, and hold the Investor harmless against, any liability, loss or expense (including, without limitation, reasonable attorneys’ fees and out of pocket expenses) arising in
connection with any such claim. 
 (l)    No Strict Construction. 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. 

(m)    Remedies, Other Obligations, Breaches and Injunctive Relief. The Investor’s remedies provided in this
Agreement, including, without limitation, the Investor’s remedies provided in Section 9, shall be cumulative and in addition to all other remedies available to the Investor under this Agreement, at law or in equity (including a decree of
specific performance and/or other injunctive relief), no remedy of the Investor contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein shall limit the Investor’s right to pursue
actual damages for any failure by the Company to comply with the terms of this Agreement. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Investor and that the remedy at law for

  
 -31- 

 
any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Investor shall be entitled, in addition to all other available
remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. 

(n)    Enforcement Costs. If: (i) this Agreement is placed by the Investor in the hands of an attorney for
enforcement or is enforced by the Investor through any legal proceeding; (ii) an attorney is retained to represent the Investor in any bankruptcy, reorganization, receivership or other proceedings affecting creditors’ rights and involving
a claim under this Agreement; or (iii) an attorney is retained to represent the Investor in any other proceedings whatsoever in connection with this Agreement, then the Company shall pay to the Investor, as incurred by the Investor, all
reasonable costs and expenses including reasonable attorneys’ fees incurred in connection therewith, in addition to all other amounts due hereunder. If: (i) this Agreement is placed by the Company in the hands of an attorney for
enforcement or is enforced by the Company through any legal proceeding; (ii) an attorney is retained to represent the Company in any proceedings whatsoever in connection with this Agreement then the Investor shall pay to the Company, as
incurred by the Company, all reasonable costs and expenses including reasonable attorneys’ fees incurred in connection therewith, in addition to all other amounts due hereunder. It is understood and agreed that any enforcement costs paid by a
party to the other party pursuant to this section shall be promptly reimbursed by the receiving party if a court of competent jurisdiction determines in a final, non-appealable order that the paying party is
not in breach of this Agreement. 
 (o)    Amendment and Waiver; Failure or Indulgence Not Waiver. No provision
of this Agreement may be amended or waived by the parties from and after the date that is one (1) Business Day immediately preceding the initial filing of the Registration Statement with the SEC. Subject to the immediately preceding sentence,
(i) no provision of this Agreement may be amended other than by a written instrument signed by both parties hereto and (ii) no provision of this Agreement may be waived other than in a written instrument signed by the party against whom
enforcement of such waiver is sought. No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or
further exercise thereof or of any other right, power or privilege. 

*    *    *    *    * 

  
 -32- 

 IN WITNESS WHEREOF, the Investor and the Company have caused this Agreement to be duly
executed as of the date first written above. 
  

			
	THE COMPANY:
	
	ZOSANO PHARMA CORPORATION
		
	By:	 	 /s/ John Walker

	Name:	 	John Walker
	Title:	 	President and Chief Executive Officer
	
	INVESTOR:
	
	LINCOLN PARK CAPITAL FUND, LLC
	BY: LINCOLN PARK CAPITAL, LLC
	BY: ROCKLEDGE CAPITAL CORPORATION
		
	By:	 	 /s/ Josh Scheinfeld

	Name:	 	Josh Scheinfeld
	Title:	 	President

  
 -33- 

 EXHIBITS 
  

			
		
	Exhibit A	  	Form of Officer’s Certificate
		
	Exhibit B	  	Form of Resolutions of Board of Directors of the Company
		
	Exhibit C	  	Form of Secretary’s Certificate
		
	Exhibit D	  	Form of Letter to Transfer Agent

 EXHIBIT A 

FORM OF OFFICER’S CERTIFICATE 

This Officer’s Certificate (“Certificate”) is being delivered pursuant to Section 8(e) of that
certain Purchase Agreement dated as of October 20, 2017, (“Purchase Agreement”), by and between ZOSANO PHARMA CORPORATION, a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC
(the “Investor”). Terms used herein and not otherwise defined shall have the meanings ascribed to them in the Purchase Agreement. 

The undersigned,                     ,
                     of the Company, hereby certifies, on behalf of the Company and not in [his/her] individual capacity, as follows: 

1.    I am the
                     of the Company and make the statements contained in this Certificate in such capacity and not in my individual capacity. 

2.    The representations and warranties of the Company are true and correct in all material respects
(except to the extent that any of such representations and warranties is already qualified as to materiality in Section 4 of the Purchase Agreement, in which case, such representations and warranties are true and correct without further
qualification) as of the date of the Purchase Agreement and as of the Commencement Date as though made at that time (except for representations and warranties that speak as of a specific date, in which case such representations and warranties are
true and correct as of such date). 
 3.    The Company has performed, satisfied and complied in all
material respects with covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement Date. 

4.    The Company has not taken any steps, and does not currently expect to take any steps, to seek
protection pursuant to any Bankruptcy Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy or insolvency proceedings. The Company is financially
solvent and is generally able to pay its debts as they become due. 
 IN WITNESS WHEREOF, I have hereunder signed my name on this
         day of             . 
  

	
	
                     
                    

	Name:
	Title:

 The undersigned as Secretary of ZOSANO PHARMA CORPORATION, a Delaware corporation, hereby
certifies that                      is the duly elected, appointed, qualified and acting
                     of                      and
that the signature appearing above is his genuine signature. 
  

	
	
                     
                    

	Jeffrey L. Quillen
	Secretary

 EXHIBIT B 

SIGNING RESOLUTIONS 
 TO
BE ADOPTED BY UNANIMOUS WRITTEN CONSENT 
 Equity Commitment 

Transaction Documents and Issuance of Common Stock 

WHEREAS, attached hereto as Exhibit A is a draft of the Purchase Agreement (the “Purchase Agreement”) by and between
the Corporation and Lincoln Park Capital Fund, LLC (“Lincoln Park”), providing for the purchase by Lincoln Park of up to Thirty-Five Million Dollars ($35,000,000) of the Corporation’s common stock, $0.0001 par value per share
(the “Common Stock”); and 
 WHEREAS, after careful consideration of the Purchase Agreement, the documents incident thereto
and other factors deemed relevant by the Board, the Board has determined that it is advisable and in the best interests of the Corporation to engage in the transactions contemplated by the Purchase Agreement, including, but not limited to, the
issuance of up to 455,000 shares of Common Stock to Lincoln Park as a commitment fee (the “Commitment Shares”) and the sale of shares of Common Stock to Lincoln Park for an aggregate purchase price of up to Thirty-Five Million
Dollars ($35,000,000) under the Purchase Agreement (the “Purchase Shares”). 
 NOW, THEREFORE, BE IT: 

 

			
	RESOLVED:	  	That the Corporation be, and it hereby is, authorized to issue and sell (i) an aggregate of up to Thirty-Five Million Dollars ($35,000,000) in shares of its Common Stock, (ii) 227,500 shares of Common Stock as Initial Commitment
Shares (as such term is defined in the Purchase Agreement) and (iii) 227,500 shares of Common Stock as Additional Commitment Shares (as such term is defined in the Purchase Agreement), in each case, pursuant to the terms of the Purchase Agreement
and that, upon issuance of any such shares pursuant to the Purchase Agreement, such shares shall be duly authorized, validly issued, fully paid and nonassessable with no personal liability attaching to the ownership thereof.
		
	RESOLVED:	  	That 455,000 shares of Common Stock be, and they hereby are, reserved for issuance as Initial Commitment Shares and Additional Commitment Shares, and that 7,387,096 shares of Common Stock be, and they hereby are, reserved for
issuance as Purchase Shares (the “Reserved Purchase Shares”).
		
	RESOLVED:	  	That the Corporation enter into the Purchase Agreement, substantially in the form attached hereto as Exhibit A; and that the Chief Executive Officer and the Chief Financial Officer (the “Authorized Officers”)
be, and they hereby are, and each of them acting individually hereby is, authorized, empowered and directed to execute and deliver the Purchase Agreement on behalf of the Corporation and in its name, in such form as the Authorized Officers, or
either of them, with the advice of counsel, shall approve, the execution of the Purchase Agreement in such form being conclusive evidence of such Authorized Officer’s approval of the same.
		
	RESOLVED:	  	That the Initial Commitment Shares and Additional Commitment Shares are being issued in consideration for the execution of the Purchase Agreement and the value of the commitments in the Purchase Agreement exceeds the aggregate par
value of such Initial Commitment Shares and Additional Commitment Shares.

			
	RESOLVED:	  	That the Corporation enter into a registration rights agreement with Lincoln Park (the “Registration Rights Agreement”) providing for the registration of the shares of Common Stock issuable in respect of the
Purchase Agreement, substantially in the form presented to the Board and attached hereto as Exhibit B; and that the Authorized Officers be, and they hereby are, and each of them acting individually hereby is, authorized, empowered and
directed to execute and deliver the Registration Rights Agreement on behalf of the Corporation and in its name, in such form as the Authorized Officers, or either of them, with the advice of counsel, shall approve, the execution of the Registration
Rights Agreement in such form being conclusive evidence of such Authorized Officer’s approval of the same.
		
	RESOLVED: 	  	That the terms and provisions of the forms of Irrevocable Transfer Agent Instructions and Notice of Effectiveness of Registration Statement (as such terms are defined in the Purchase Agreement and, collectively, the
“Instructions”) are hereby approved and the Authorized Officers be, and they hereby are, and each of them acting individually hereby is, authorized, empowered and directed, to execute and deliver the Instructions for and on behalf
of the Corporation and in its name, in accordance with the Purchase Agreement, in such form as the Authorized Officers, or either of them, with the advice of counsel, shall approve, the execution of the Instructions in such form being conclusive
evidence of such Authorized Officer’s approval of the same.
	
	Registration of Shares
		
	RESOLVED:	  	That if the securities or “Blue Sky” laws of any of the states in which the officers of the Corporation deem it necessary or advisable to register, qualify or exempt from registration or qualification the offer, sale
and issuance of the Common Stock under the Purchase Agreement or to register the Corporation as a dealer or broker, or any authority administering such laws requires a prescribed form of preamble, resolution or resolutions, or consent to service of
process in connection with such offer, sale or issuance, each such preamble, resolution or consent is hereby adopted by the Board, and the officers of the Corporation are each hereby authorized, acting singly, to certify the adoption of such
preamble, resolution, or consent as though the same were presented to and approved at this meeting and to file copies of the text of such preamble, resolution or consent herewith.
		
	RESOLVED:	  	That it is desirable and in the best interest of the Corporation that the offer, sale and issuance of the shares of Common Stock under the Purchase Agreement be exempted from registration under the Securities Act of 1933, as
amended (the “Securities Act”); that the officers of the Corporation be, and they hereby are, and each of them acting singly hereby is, authorized, for and on behalf of the Corporation and in its name, to perform all such acts as
such officers may deem necessary or desirable in order to comply with the Securities Act, and in connection therewith to file all requisite instruments and documents; and that the execution by such officers of any such instrument or document or the
doing by them of any act in connection with foregoing matters shall conclusively establish their authority therefor from the Corporation and the approval and ratification by the Corporation of the instruments and documents so executed and the
actions so taken.

			
	RESOLVED:	  	That the officers of the Corporation be, and they hereby are, and each of them acting singly hereby is, authorized, empowered and directed, for and on behalf of the Corporation, to prepare or cause to be prepared, and to execute and
file with the Securities and Exchange Commission (the “Commission”) pursuant to the Securities Act, and the rules and regulations promulgated thereunder, one or more registration statements on Form
S-1 (or any other applicable form) (the “Registration Statements”) providing for the resale of the Commitment Shares and the Purchase Shares issued under the Purchase Agreement and certain
other shares of issued and outstanding Common Stock as determined and approved by the appropriate officers of the Corporation; that the officers of the Corporation be, and they hereby are, and each of them acting singly hereby is, authorized to
change, amend, modify and delete or add to any Registration Statement, in all instances as they in their discretion deem necessary or advisable, and such changes, amendments, modifications, deletions and additions shall be conclusive evidence that
any changes therein to any such Registration Statement are authorized by this resolution.
		
	RESOLVED:	  	That John Walker, the Corporation’s President and Chief Executive Officer, is hereby appointed as the Corporation’s agent to receive notices and communications from the Commission with respect to the Registration
Statements and to exercise the powers enumerated under Rule 478 of the General Rules and Regulations of the Commission under the Securities Act.
	
	General Authorization
		
	RESOLVED:	  	That the officers of the Corporation be, and they hereby are, and each of them acting individually hereby is, authorized, empowered and directed, for and on behalf of the Corporation and in its name, to prepare, execute,
acknowledge, file, record and deliver, under seal if required or desirable, all such agreements, instruments, certificates, notices, filings with government agencies required to update any intellectual property registrations, and documents, and to
take all such other actions and to pay all expenses as any such officer may approve as necessary, advisable, appropriate or in the best interests of the Corporation to give effect to, or otherwise carry each of the foregoing resolutions, and that
the execution, acknowledgment, filing, recording or delivery of any such agreement, instrument, certificate or document, or the taking of any such action and the payment of any such expenses to be conclusive evidence of such approval and of the
approval thereof by the Board, and that all actions taken by the officers of the Corporation to date in connection with the foregoing resolutions are hereby confirmed, ratified and approved in all respects.
		
	RESOLVED:	  	That any prior acts of the officers of the Corporation and of any person or persons designated and authorized to act for and on behalf of the Corporation, which acts would have been authorized by the foregoing resolutions but for
the fact that such acts were taken prior to the adoption of the foregoing resolutions, are hereby severally approved, adopted, ratified and confirmed, as acts in the name and on behalf of the Corporation.

 EXHIBIT C 

FORM OF SECRETARY’S CERTIFICATE 

This Secretary’s Certificate (“Certificate”) is being delivered pursuant to Section 8(k) of that
certain Purchase Agreement dated as of October 20, 2017, (“Purchase Agreement”), by and between ZOSANO PHARMA CORPORATION, a Delaware corporation (the “Company”) and LINCOLN PARK CAPITAL FUND, LLC (the
“Investor”), pursuant to which the Company may sell to the Investor up to Thirty-Five Million Dollars ($35,000,000) of the Company’s Common Stock, $0.0001 par value per share (the “Common Stock”). Terms used herein and not
otherwise defined shall have the meanings ascribed to them in the Purchase Agreement. 
 The undersigned, Jeffrey L. Quillen, Secretary of
the Company, hereby certifies, on behalf of the Company and not in his individual capacity, as follows: 

1.    I am the Secretary of the Company and make the statements contained in this Secretary’s
Certificate in such capacity and not in my individual capacity. 
 2.    Attached hereto as Exhibit
A and Exhibit B are true, correct and complete copies of the Company’s bylaws (the “Bylaws”) and Certificate of Incorporation (the “Charter”), in each case, as amended through the date hereof, and no
action has been taken by the Company, its directors, officers or stockholders, in contemplation of the filing of any further amendment relating to or affecting the Bylaws or Charter. 

3.    Attached hereto as Exhibit C are true, correct and complete copies of the resolutions duly
adopted by the Board of Directors of the Company by written consent effective as of [            ], 2017. Such resolutions have not been amended, modified or rescinded and remain in full
force and effect and such resolutions are the only resolutions adopted by the Company’s Board of Directors, or any committee thereof, or the stockholders of the Company relating to or affecting (i) the entering into and performance of the
Purchase Agreement, or the issuance, offering and sale of the Purchase Shares and the Commitment Shares and (ii) and the performance of the Company of its obligation under the Transaction Documents as contemplated therein. 

 IN WITNESS WHEREOF, I have hereunder signed my name on this
        day of             , 2017. 
  

	
	
                     
                    

	Jeffrey L. Quillen
	Secretary

 The undersigned as
                    of ZOSANO PHARMA CORPORATION, a Delaware corporation, hereby certifies
that                    is the duly elected, appointed, qualified and acting Secretary
of                    , and that the signature appearing above is his genuine signature. 

 

	
	  

 EXHIBIT D 

FORM OF LETTER TO THE TRANSFER AGENT FOR THE ISSUANCE OF THE INITIAL COMMITMENT SHARES AT SIGNING OF THE PURCHASE AGREEMENT 

[COMPANY LETTERHEAD] 
 [DATE] 

[TRANSFER AGENT] 

                          
           

                          
           

                          
           
 Re: Issuance of Common Stock to Lincoln Park Capital Fund, LLC 

Dear                    , 

On behalf of ZOSANO PHARMA CORPORATION (the “Company”), you are hereby instructed to issue as soon as possible a
book-entry statement, on the Company’s behalf, representing an aggregate of 227,500 shares of our common stock in the name of Lincoln Park Capital Fund, LLC. The book-entry statement should be dated October 20, 2017. The book-entry
statement should bear the following restrictive legend: 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S COUNSEL, IN A
CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS. 

 The book-entry statement should be sent as soon as possible via overnight mail to the following
address: 
 Lincoln Park Capital Fund, LLC 

440 North Wells, Suite 410 

Chicago, IL 60654 
 Attention:
Josh Scheinfeld/Jonathan Cope 
 Thank you very much for your help. Please call me at
                     if you have any questions or need anything further. 

ZOSANO PHARMA CORPORATION 
  

			
	BY:	 	  

		 	[name]
		 	[title]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}]]