Document:

EX-4.1

 Exhibit 4.1 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE
SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN SECTIONS 5.3 AND 5.4 BELOW, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY,
SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION. 
 WARRANT TO PURCHASE STOCK 

 

	 Company: 
	ZOSANO PHARMA CORPORATION, a Delaware corporation (the “Company”) 

  

	 Number of Shares: 
	75,000 

  

	 Type/Series of Stock: 
	Common 

  

	 Warrant Price: 
	$3.5928 per share 

  

	 Issue Date: 
	September 25, 2018 

  

	 Expiration Date: 
	September 25, 2025 (See also Section 5.1(b)) 

  

	 Credit Facility: 
	This Warrant to Purchase Stock (“Warrant”) is issued in connection with that certain Master Equipment Lease, dated as of the Issue Date among Trinity Capital Fund III, L.P., a Delaware limited partnership
(“Trinity”), as lessor, and the Company (as amended, restated, or otherwise modified from time to time, the “Master Lease”). 

THIS WARRANT CERTIFIES THAT, for good and valuable consideration, Trinity (together with any successor or permitted assignee or transferee of
this Warrant or of any shares issued upon exercise hereof, “Holder”) is entitled to purchase the number of fully paid and non-assessable shares (the “Shares”) of Common Stock
(the “Class”) of the Company at the above-stated Warrant Price, all as set forth above and as adjusted pursuant to Section 2 of this Warrant, subject to the provisions and upon the terms and conditions set forth in this
Warrant. 
 SECTION 1    EXERCISE. 

1.1    Method of Exercise/Exchange. Holder may at any time and from time to time exercise this Warrant, in whole or
in part, by delivering to the Company the original of this Warrant together with a duly executed Notice of Exercise/Exchange in substantially the form attached hereto as Appendix 1 and, unless Holder is exchanging this Warrant pursuant to a cashless
exchange set forth in Section 1.2 a check, wire transfer of same-day funds (to an account designated by the Company), or other form of payment acceptable to the Company for the aggregate Warrant Price for
the Shares being purchased. 
 1.2    Cashless Exchange. In lieu of payment of the aggregate Warrant Price in the
manner as specified in Section 1.1 above, but otherwise in accordance with the requirements of Section 1.1, Holder shall have the right to exchange this Warrant or any portion hereof for a number of Shares equal to the value of this
Warrant, or portion hereof as to which this Warrant is being exchanged. 

  
 1 

 
Thereupon, the Company shall issue to the Holder such number of fully paid and non-assessable Shares as are computed using the following formula: 

X = Y(A-B)/A 

where: 
 X
=    the number of Shares to be issued to the Holder; 
 Y =    the number of Shares with respect to
which this Warrant is being exchanged (inclusive of the Shares surrendered to the Company in satisfaction of the aggregate Warrant Price); 

A =    the Fair Market Value (as determined pursuant to Section 1.3 below) of one Share; and 

B =    the Warrant Price. 

1.3    Fair Market Value. If the Company’s common stock is then traded or quoted on a nationally recognized
securities exchange, inter-dealer quotation system or over-the-counter market (a “Trading Market”) and the Class is common stock, the fair market
value of a Share shall be the closing price or last sale price of a share of common stock reported for the Business Day immediately before the date on which Holder delivers this Warrant together with its Notice of Exercise/Exchange to the Company.
If the Company’s common stock is not traded in a Trading Market, the Board of Directors of the Company shall determine the fair market value of a Share in its reasonable good faith judgment. 

1.4    Delivery of Certificate and New Warrant. Promptly after Holder exercises or exchanges this Warrant in the
manner set forth in Section 1.1 or 1.2 above, the Company shall deliver to Holder a certificate representing the Shares issued to Holder upon such exercise and, if this Warrant has not been fully exercised or exchanged and has not expired, a
new warrant of like tenor representing the Shares not so acquired. 
 1.5    Replacement of Warrant. On receipt
of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form, substance and
amount to the Company or, in the case of mutilation, on surrender of this Warrant to the Company for cancellation, the Company shall, within a reasonable time, execute and deliver to Holder, in lieu of this Warrant, a new warrant of like tenor and
amount. 
 1.6    Treatment of Warrant Upon Acquisition of Company. 

(a)    Acquisition. For the purpose of this Warrant, “Acquisition” means any transaction or
series of related transactions involving: (i) the sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company; (ii) any merger or consolidation of the Company into or with another person or
entity (other than a merger or consolidation effected exclusively to change the Company’s domicile), or any other corporate reorganization, in which the stockholders of the Company in their capacity as such immediately prior to such merger,
consolidation or reorganization, own less than a majority of the Company’s (or the surviving or successor entity’s) outstanding voting power immediately after such merger, consolidation or reorganization; (iii) any sale or other
transfer by the stockholders of the Company of shares representing at least a majority of the Company’s then-total 

  
 2 

 
outstanding combined voting power. For the avoidance of doubt, “Acquisition” shall not include any sale and issuance by the Company of shares of its capital stock or of securities or
instruments exercisable for or convertible into, or otherwise representing the right to acquire, shares of its capital stock in a transaction or series of related transactions, the primary purpose of which is a bona fide equity financing of the
Company. 
 (b)    Treatment of Warrant in Cash/Public Acquisition. In the event of an Acquisition in which the
consideration to be received by the Company’s stockholders consists solely of cash, solely of Marketable Securities or a combination of cash and Marketable Securities (a “Cash/Public Acquisition”), and the fair market value of
one Share as determined in accordance with Section 1.3 above would be greater than the Warrant Price in effect on such date immediately prior to such Cash/Public Acquisition, and Holder has not exercised this Warrant pursuant to
Section 1.1 above as to all Shares, then this Warrant shall automatically be deemed to be exchanged pursuant to Section 1.2 above as to all Shares effective immediately prior to and contingent upon the consummation of a Cash/Public
Acquisition. In connection with such exchange, Holder shall be deemed to have restated each of the representations and warranties in Section 4 of the Warrant as the date thereof and the Company shall promptly notify the Holder of the number of
Shares (or such other securities) issued upon exercise or exchange. In the event of a Cash/Public Acquisition where the fair market value of one Share as determined in accordance with Section 1.3 above would be equal to or less than the Warrant
Price in effect immediately prior to such Cash/Public Acquisition, then this Warrant will expire immediately prior to the consummation of such Cash/Public Acquisition. 

(c)    Treatment of Warrant in Other Acquisitions. Upon the closing of any Acquisition other than a Cash/Public
Acquisition, the Company shall cause the acquiring, surviving or successor entity to assume the obligations of this Warrant, and this Warrant shall thereafter be exercisable for the same securities and/or other property as would have been paid for
the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on and as of the closing of such Acquisition, subject to further adjustment from time to time in accordance with the provisions of this
Warrant; provided, however, that (i) if the fair market value of one Share as determined in accordance with Section 1.3 above in such Acquisition is greater than or equal to three times the Warrant Price then in effect then
the acquiring, surviving or successor entity may elect not to assume the obligations of this Warrant and this Warrant shall terminate upon the consummation of such Acquisition, provided further, however, that the acquiring,
surviving or successor entity and the Company shall give the Holder notice in accordance with Section 3.3(d) of this Warrant prior to the consummation of such Acquisition, and in any event the provisions of Section 5.1(b) shall be
applicable upon such expiration and (ii) if such fair market value is less than three times such Warrant Price, then the acquiring, surviving or successor entity may elect to purchase the Warrant for a cash purchase price equal to the product
derived by multiplying (a) the number of Shares issuable upon the exercise of the unexercised portion of this Warrant by (b) the number that is equal to three times the Warrant Price. 

(d)    As used in this Warrant, “Marketable Securities” means securities meeting all of the following
requirements: (i) the issuer thereof is then subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is then current in its
filing of all required reports and other information under the Securities Act of 1933, as amended (the “Act”) and the Exchange Act; (ii) the class and series of shares or other security of the issuer that would be received by
Holder in connection with the Acquisition were Holder to exercise this Warrant on or prior to the closing thereof is then traded in Trading Market; and (iii) Holder would be able to publicly re-sell,
beginning six months following the closing of such Acquisition, all of the issuer’s shares and/or other securities that would be received by Holder in such Acquisition were Holder to exercise this Warrant in full on or prior to the closing of
such Acquisition. 

  
 3 

 SECTION 2    ADJUSTMENTS TO THE SHARES AND WARRANT PRICE. 

2.1    Stock Dividends, Splits, Etc. If the Company declares or pays a dividend or distribution on the outstanding
shares of the Class payable in common stock or other securities, then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without additional cost to Holder, the total number and kind of securities which Holder would
have received had Holder owned the Shares of record as of the date the dividend or distribution occurred. If the Company subdivides the outstanding shares of the Class by reclassification or otherwise into a greater number of shares, the number
of Shares purchasable hereunder shall be proportionately increased and the Warrant Price shall be proportionately decreased, provided the aggregate purchase price shall remain the same. If the outstanding shares of the Class are combined or
consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased and the number of Shares shall be proportionately decreased, provided the aggregate purchase price shall remain the
same. 
 2.2    Reclassification, Exchange, Combinations or Substitution. Upon any event whereby all of the
outstanding shares of the Class are reclassified, exchanged, combined, substituted, or replaced for, into, with or by Company securities of a different class and/or series, then from and after the consummation of such event, this Warrant will
be exercisable for the number, class and series of Company securities that Holder would have received had the Shares been outstanding on and as of the consummation of such event, provided the aggregate purchase price shall remain the same and
subject to further adjustment thereafter from time to time in accordance with the provisions of this Warrant. The provisions of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, combinations, substitutions,
replacements or other similar events. 
 2.3    No Fractional Share. No fractional Share shall be issuable upon
exercise of this Warrant and the number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional Share interest arises upon any exercise of the Warrant, the Company shall eliminate such fractional Share interest by
paying Holder in cash the amount computed by multiplying the fractional interest by (a) the fair market value (as determined in accordance with Section 1.3 above) of a full Share, less (b) the then-effective Warrant Price. 

2.4    Notice/Certificate as to Adjustments. Upon each adjustment of the Warrant Price, Class and/or number of
Shares, the Company, at the Company’s expense, shall notify Holder in writing within a reasonable time setting forth the adjustments to the Warrant Price, Class and/or number of Shares and facts upon which such adjustment is based. The
Company shall, upon written request from Holder, furnish Holder with a certificate of its Principal Executive Officer or Principal Financial Officer, including computations of such adjustment and the Warrant Price, Class and number of Shares in
effect upon the date of such adjustment. 
 SECTION 3    REPRESENTATIONS AND COVENANTS OF THE COMPANY. 

3.1    Representations and Warranties. The Company represents and warrants to, and agrees with, the Holder as
follows:  
 (a)    This Warrant is, and all Shares which may be issued upon the exercise of this Warrant, and
any warrants issued in substitution for or replacement of this Warrant shall, upon issuance, be duly authorized, validly issued, fully paid and non-assessable, and free of any liens, charges

  
 4 

 
and encumbrances except for restrictions on transfer provided for herein or under applicable federal and state securities laws. The Company covenants that it shall at all times cause to be
reserved and kept available out of its authorized and unissued capital stock such number of shares of the Class and other securities as will be sufficient to permit the exercise in full of this Warrant. 

(b)    The Company (A) has been duly incorporated and is validly existing as a corporation in good standing under
the laws of Delaware, with full corporate power and authority to own or lease, as the case may be, and to operate its properties and conduct its business as presently conducted, and (B) is duly qualified to do business as a foreign corporation
and is in good standing under the laws of each jurisdiction which requires such qualification, except in the case of clause (B) above, to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to
result in (i) a material adverse effect on the validity or enforceability of this Warrant, (ii) a material adverse effect on the condition (financial or otherwise), earnings, business or properties of the Company, or (iii) a material
adverse effect on the Company’s ability to perform in any material respect its obligations under this Warrant (any of (i), (ii) or (iii)) (a “Material Adverse Effect”). 

(c)    The Company has all requisite corporate power and authority, and has taken all requisite corporate action, to
execute and deliver this Warrant, sell and issue the Shares and carry out and perform all of its obligations under this Warrant, and without limiting the foregoing, the Company shall at all times have authorized and reserved the number of Shares
needed to provide for the exercise of the rights then represented by this Warrant. This Warrant constitutes the legal, valid and binding obligation of the Company, enforceable in accordance with its terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors’ rights generally and (ii) as limited by equitable principles generally, including any specific performance. 

(d)    No consent, approval, order or authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state, or local governmental authority on the part of the Company is required in connection with the consummation of the transactions contemplated by this Warrant except for the filing of a Form D with the Securities and
Exchange Commission (the “Commission”) under the Securities Act and compliance with the securities and blue sky laws in the states and other jurisdictions in which shares of Common Stock are offered and/or sold, which compliance
will be effected in accordance with such laws. 
 (e)    Neither the execution, delivery or performance of this Warrant
by the Company nor the consummation of any of the transactions contemplated thereby (including, without limitation, the issuance and sale by the Company of the Shares) will conflict with, result in a breach or violation of, or imposition of any
lien, charge or encumbrance upon any property or assets of the Company pursuant to, (i) the charter or by-laws of the Company, (ii) the terms of any indenture, contract, lease, mortgage, deed of
trust, note agreement or other agreement, obligation, condition, covenant or instrument to which the Company is a party or bound or to which its property is subject, or (iii) any statute, law, rule, regulation, judgment, order or decree
applicable to the Company of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company or any of its properties, except in the case of clauses (ii) and (iii) above,
for any conflict, breach or violation of, or imposition that would not, individually or in the aggregate, have a Material Adverse Effect. 

  
 5 

 (f)    Neither the Company nor any Person acting on its behalf, has
engaged in any form of general solicitation or general advertising (within the meaning of Regulation D promulgated under the Act) in connection with the offer or sale of this Warrant. 

3.2    Reporting. At any time the Company is not subject to the periodic reporting requirements of
Section 12(g) or 15(d) of the Exchange Act, the Company shall deliver to the Holder, within 90 days following the end of each fiscal year, a copy of Company’s annual financial statements consisting of balance sheet, income statement and
cash flow statement prepared in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding fiscal year and presenting fairly Company’s financial condition as at the end of that fiscal year
and the results of its operations for the twelve month period then ended; provided, that the covenants set forth in this Section 3.2 shall terminate and be of no further force or effect upon an Acquisition. 

3.3    Notice of Certain Events. If the Company proposes at any time to: 

(a)    declare any dividend or distribution upon the outstanding shares of any stock, whether in cash, property, stock,
or other securities and whether or not a regular cash dividend; 
 (b)    offer for subscription or sale pro rata to
the holders of the outstanding shares of the Class any additional shares of any class or series of the Company’s stock (other than pursuant to contractual pre-emptive rights); 

(c)    effect any reclassification, exchange, combination, substitution, reorganization or recapitalization of the
outstanding shares of the Class; or 
 (d)    effect an Acquisition or to liquidate, dissolve or wind up; 

then, in connection with each such event, the Company shall give Holder: 

(1)    at least seven Business Days prior written notice of the date on which a record will be taken for such dividend,
distribution, or subscription rights (and specifying the date on which the holders of outstanding shares of the Class will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) and (b)
above; and 
 (2)    in the case of the matters referred to in (c) and (d) above at least seven Business Days
prior written notice of the date when the same will take place (and specifying the date on which the holders of outstanding shares of the Class will be entitled to exchange their shares for the securities or other property deliverable upon the
occurrence of such event). 
 Company will also provide information requested by Holder that is reasonably necessary to enable Holder to comply with
Holder’s accounting or reporting requirements. 
 SECTION 4    REPRESENTATIONS AND WARRANTIES OF THE HOLDER.

 The Holder represents and warrants to the Company as follows: 

4.1    Purchase for Own Account. This Warrant and the securities to be acquired upon exercise of this Warrant by
Holder are being acquired for investment for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the Act. Holder also represents that it has not been formed for the
specific purpose of acquiring this Warrant or the Shares. 

  
 6 

 4.2    Disclosure of Information. Holder is aware of the
Company’s business affairs and financial condition and has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant and
its underlying securities. Holder further has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to obtain additional
information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to Holder or to which Holder has access. 

4.3    Investment Experience. Holder understands that the purchase of this Warrant and its underlying securities
involves substantial risk. Holder has experience as an investor in securities of companies in the development stage and acknowledges that Holder can bear the economic risk of such Holder’s investment in this Warrant and its underlying
securities and has such knowledge and experience in financial or business matters that Holder is capable of evaluating the merits and risks of its investment in this Warrant and its underlying securities and/or has a preexisting personal or business
relationship with the Company and certain of its officers, directors or controlling persons of a nature and duration that enables Holder to be aware of the character, business acumen and financial circumstances of such persons. 

4.4    Accredited Investor Status. Holder is an “accredited investor” within the meaning of Regulation D
promulgated under the Act. 
 4.5    The Act. Holder understands that this Warrant and the Shares issuable upon
exercise hereof have not been registered under the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the Holder’s investment intent as expressed herein. Holder
understands that this Warrant and the Shares issued upon any exercise hereof must be held indefinitely unless subsequently registered under the Act and qualified under applicable state securities laws, or unless exemption from such registration and
qualification are otherwise available. Holder is aware of the provisions of Rule 144 promulgated under the Act. 

4.6    No Voting Rights. Holder, as a Holder of this Warrant, will not have any voting rights, or any other rights
of a stockholder of the Company, until the exercise of this Warrant. 
 4.7    Authorization. Holder has full
power and authority to enter into this Warrant. This Warrant, when executed and delivered by Holder, will constitute a valid and legally binding obligation of Holder, enforceable in accordance with its terms, except as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement of creditors’ rights generally, and as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies. 
 SECTION 5    MISCELLANEOUS. 

5.1    (a)    Term. Subject to the provisions of Section 1.6 above, this Warrant is
exercisable in whole or in part at any time and from time to time on or before 6:00 P.M. Pacific Time, on the Expiration Date and shall be void thereafter. 

(b)    Automatic Cashless Exchange upon Expiration. In the event that, upon the Expiration Date, the fair market
value of one Share (or other security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above is greater than the Warrant Price in effect on such date, then this Warrant shall automatically be deemed on and as of
such date to be exchanged pursuant to Section 1.2 above as to all Shares (or such other securities) for which it shall not previously have been 

  
 7 

 
exercised, and the Company shall, within a reasonable time, deliver a certificate representing the Shares (or such other securities) issued upon such exchange to Holder. 

5.2    Legends. The Shares (and the securities issuable, directly or indirectly, upon conversion of the Shares, if
any) shall be imprinted with a legend in substantially the following form: 
 THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN THAT CERTAIN WARRANT TO PURCHASE STOCK ISSUED BY THE ISSUER TO TRINITY CAPITAL FUND III, L.P. DATED
SEPTEMBER __, 2018, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH
REGISTRATION. 
 5.3    Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable upon
exercise of this Warrant may not be transferred or assigned in whole or in part except in compliance with applicable federal and state securities laws by the transferor and the transferee (including, without limitation, the delivery of investment
representation letters and legal opinions reasonably satisfactory to the Company, as reasonably requested by the Company). 

5.4    Transfer Procedure. Subject to the provisions of Section 5.3 and upon providing the Company with
written notice, Holder may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities issuable directly or indirectly, upon conversion of the Shares, if any) to any transferee, provided,
however, in connection with any such transfer, Holder will give the Company notice of the portion of the Warrant being transferred with the name, address and taxpayer identification number of the transferee and Holder will surrender this
Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable); and provided further, that any transferee shall agree in writing with the Company to be bound by all of the terms and conditions of this Warrant.

 5.5    Binding on Successors. This Warrant will be binding upon any entity succeeding to the Company by merger,
consolidation or acquisition of all or substantially all of the Company’s assets. 
 5.6    Notices. All
notices and other communications hereunder from the Company to Holder, or vice versa, shall be deemed delivered and effective (i) when given personally, (ii) on the third Business Day after being mailed by first-class registered or
certified mail, postage prepaid, (iii) upon actual receipt if given by facsimile or electronic mail and such receipt is confirmed in writing by the recipient, or (iv) on the first Business Day following delivery to a reliable overnight
courier service, courier fee prepaid, in any case at such address as may have been furnished to the Company or Holder, as the case may be, in writing by the Company or Holder from time to time in accordance with the provisions of this
Section 5.6 All notices to Holder shall be addressed as follows until the Company receives notice of a change of address in connection with a transfer or otherwise:  

Trinity Capital Fund III, L. P. 

Attn: Rena Curtis 
 3075 W. Ray
Road 
 Suite 525 
 Chandler,
AZ 85226 
 Telephone:     (###) ###-#### 

Facsimile:     (###) ###-#### 

Email address: #######@#################.com 

  
 8 

 Notice to the Company shall be addressed as follows until Holder receives notice of a change in address:

 ZOSANO PHARMA CORPORATION 

34790 Ardentech Court 
 Fremont,
CA 94555 
 Attention: John Walker, President and Chief Executive Officer 

Telephone: (###) ###-#### 

Email address: #######@############.### 

With a copy (which shall not constitute notice) to: 

Latham & Watkins LLP 

Attn: Alan C. Mendelson and Kathleen M. Wells 

140 Scott Drive 
 Menlo Park, CA
94025 
 Telephone: (###) ###-#### 

Facsimile: (###) ###-#### 

Email: ##############@##.com 

Email: ##############@##.com 

5.7    Waiver. This Warrant and any term hereof may be changed, waived, discharged or terminated (either generally
or in a particular instance and either retroactively or prospectively) only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 

5.8    Attorneys’ Fees. In the event of any dispute between the parties concerning the
terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees. 

5.9    Counterparts; Facsimile/Electronic Signatures. This Warrant may be executed in counterparts, all of which
together shall constitute one and the same agreement. Any signature page delivered electronically or by facsimile shall be binding to the same extent as an original signature page with regards to any agreement subject to the terms hereof or any
amendment thereto. 
 5.10    Entirety; Amendments. This Warrant and the appendices, schedules and attachments
referred to herein, and the Master Lease constitute the entire agreement between Lender and Borrower as to the subject matter contemplated herein, and supersedes all prior agreements and understandings relating thereto. Each of the parties hereto
acknowledges that no party hereto nor any agent of any other party whomsoever has made any promise, representation or warranty whatsoever, express or implied, not contained herein, concerning the subject matter hereof, to induce it to execute this
Warrant. No other agreements will be effective to change, modify, waive or terminate this Warrant in whole or in part unless such agreement is in writing and duly executed by each of the parties and Lender has provided prior written consent. 

5.11    Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of
California, without regard to conflict of law principles that would result in the application of any other than the laws of the State of California. 

  
 9 

 5.12    Waiver of Jury Trial; Judicial Reference. AS A
MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS ASSOCIATED WITH
THIS TRANSACTION. WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, any disputes or controversies of any
nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Alameda County, California Superior Court) appointed in accordance
with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Alameda County, California; and
the parties submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge
shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to California Code of Civil Procedure § 644 (a). 

5.13    Headings. The headings in this Warrant are for purposes of reference only and shall not limit or otherwise
affect the meaning of any provision of this Warrant. 
 5.14    Business Days. “Business Day” is
any day that is not a Saturday, Sunday or a day on which banks in New York or California are closed. 
 [Signature page follows] 

  
 10 

 IN WITNESS WHEREOF, the parties have caused this Warrant to Purchase Stock to be executed by
their duly authorized representatives effective as of the Issue Date written above. 
 “COMPANY” 

ZOSANO PHARMA CORPORATION 
  

			
		
	By:	 	/s/ John Walker

			
	Name:	 	 John Walker
 (Print)

		
	Title:	 	President and Chief Executive Officer

 “HOLDER” 
 TRINITY
CAPITAL FUND III, L. P., 
 a Delaware limited partnership 

By: TRINITY SBIC PARTNERS III, LLC, 
 a Delaware limited
liability company 
 Its: General Partner 
 By: TRINITY SBIC
MANAGEMENT, LLC, 
 a Delaware limited liability company 

Its: Manager 
  

			
	By:	 	/s/ Steven L. Brown

 Name: Steven L.
Brown 
 Its: Managing Member 

  
 [Signature Page to
Warrant to Purchase Stock] 

 APPENDIX 1 

NOTICE OF EXERCISE/EXCHANGE 

1.    The undersigned Holder hereby exercises its right purchase/exchange [circle one]
                         shares of the Common Stock of Zosano Pharma Corporation (the “Company”) in
accordance with the attached Warrant to Purchase Stock, and tenders payment of the aggregate Warrant Price for such shares as follows: 
  

	 	[    ]	 Check in the amount of
$                     payable to order of the Company enclosed herewith 

 

	 	[    ]	 Wire transfer of immediately available funds to the Company’s account 

 

	 	[    ]	 Cashless Exchange pursuant to Section 1.2 of the Warrant 

 

	 	[    ]	 Other [Describe]
                                         
                                         
               

2.    Please issue a certificate or certificates representing the Shares in the name specified below: 

 

	
	 
	            Holder’s Name
	
	   

	
	   

	            (Address)

 3.    By its execution below and for the benefit of the Company, Holder hereby restates
each of the representations and warranties in SECTION 4 of the Warrant to Purchase Stock as of the date hereof. 
  

			
	HOLDER:
	
	 

 
			
		
	By:	 	 

 
			
		
	Name:	 	 

 
			
		
	Title:	 	 

 
			
		
	(Date):	 	 

  
 Appendix 1 

  
 Schedule 1THIS NOTE AND ANY SHARES ACQUIRED UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FILED UNDER SUCH ACT OR PURSUANT TO AN OPINION OF COUNSEL SATISFACTORY TO MOUNT TAM BIOTECHNOLOGIES, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

 

CONVERTIBLE PROMISSORY NOTE

 

	Aggregate Amount: $100,000.00

	Effective Date: September 18, 2018

 

FOR VALUE RECEIVED, Mount Tam Biotechnologies, Inc., a Nevada corporation (the “Maker”), promises to pay to Climate Change Investigation, Innovation and Investment Company, LLC, a California limited liability company or its permitted assigns (the “Holder”) the principal sum of One Hundred Thousand Dollars ($100,000.00), as scheduled pursuant to Schedule I, which is attached hereto and incorporated herein by this reference, together with interest on the unpaid principal balance(s) under this Note from time to time outstanding at the rate of 8.0% per year, minus any amounts prepaid by the Maker or converted by the Holder pursuant to the terms of this Convertible Promissory Note (this “Note”), until paid in full. Subject to the conversion provisions set forth herein or permitted prepayments pursuant to the terms of this Note, all outstanding principal and accrued interest shall be due and payable on May 18, 2019 (the “Maturity Date”). Interest on the outstanding amounts due under this Note shall be computed for each payment from each funding date (as set forth on Schedule 1 hereto) on the basis of a year of 365 days for the actual number of days elapsed. All cash payments made by the Maker under this Note shall be in immediately available funds.

The payment of all amounts due under this Note, and the performance of all obligations of Maker under this Note, are fully secured by the Security Agreement between the Maker and Holder effective as of September 18, 2018.

Effective upon a complete funding of the entire principal amount of $100,000, in accordance with Schedule I, the Maker shall issue to the Holder 200,000 shares of its common stock (or if less than $100,000 is lent, then the pro-rata amount of such 200,000 shares based on the amount that is lent).  In addition, the Maker shall issue to the Holder an additional 200,000 shares of its common stock in the event that the Maker has not either (i) closed a Financing resulting in funding of at least $1,000,000 to the Maker after the date of this Note, but on or before January 1, 2019, or (ii) received a binding term sheet or other similar binding agreement pertaining to a licensing transaction with a company that operates in the pharmaceutical and/or biotech industries that will provide for at least $500,000 in upfront payments to the Maker on or before January 1, 2019, as well as milestones and royalties for TAM-01, TAM-3, or for any follow-on compounds of the Maker (a “Licensing Transaction”) on or before January 1, 2019.  Lastly, and in addition to the foregoing, the Maker shall issue to the Holder an additional 600,000 shares of its common stock in the event that the Maker has not either (i) closed a Financing resulting in funding of at least $1,000,000 to the Maker after the date of this Note, but on or before April 30, 2019, or (ii) received a binding term sheet or other similar binding agreement for a Licensing Transaction on or before April 30, 2019.

 

From and after the Maturity Date, the Holder may, at the sole and exclusive option of the Holder, convert some or all of the outstanding principal and interest under this Note (the “Outstanding Amount”) 

1

into shares of the same class and series of capital stock of the Maker issued to investors in the most recent Financing (the “Financing Securities”) at a conversion price equal to the lesser of (i) 80% of the price per share of Financing Securities paid by the other investors in the Financing and (ii) a price per share equal to $10,000,000 divided by the number of outstanding shares of capital stock of the Maker on a fully-diluted basis (and treating as outstanding all shares issuable upon exercise of all outstanding options, warrants and other rights to acquire equity securities of the Maker, and treating all outstanding preferred stock on an as-converted to common stock basis). “Financing” means the issuance of stock by the Maker or any security convertible into, exchangeable for, or exercisable for stock of the Maker, after the date hereof; provided that the primary purpose of such issuance must be to raise capital (and as such excludes, for the avoidance of doubt, issuances of stock of the Maker or securities convertible into, exchangeable for or exercisable for stock of the Maker to employees, directors, consultants or other service providers in connection with the provision of goods or services to the Maker). 

 

In addition, effective upon the closing of any Financing resulting in gross proceeds to the Maker, in one or a series of related transactions, of at least $2,000,000 (including the aggregate amount of any indebtedness converted into equity securities in such Financing) in which either (i) the investor leading the negotiation with the Maker is a bona fide institutional investor or (ii) if the investor leading the negotiation is not a bona fide institutional investor, such Financing includes commercially reasonable customary terms and conditions for an equity financing of an early stage biopharmaceutical company, which may (but shall not be required to) include one or more of the following terms: liquidation preferences, dividend rights, protective provisions, voting rights, anti-dilution provisions, conversion rights, board representation for the investors, redemption rights, preemptive rights, information rights, registration rights, drag-along rights, rights of first refusal and co-sale rights (in the case a Financing satisfies either clause (i) or (ii) above, a “Qualified Financing”) then the aggregate Outstanding Amount shall automatically without any further action of the parties be converted into shares of the same class and series of capital stock of the Maker issued to investors in the Qualified Financing (the “Qualified Financing Securities”) at a conversion price equal to the lesser of (i) 80% of the price per share of Qualified Financing Securities paid by the other investors in the Qualified Financing and (ii) a price per share equal to $10,000,000 divided by the number of outstanding shares of capital stock of the Maker on a fully-diluted basis (and treating as outstanding all shares issuable upon exercise of all outstanding options, warrants and other rights to acquire equity securities of the Maker, and treating all outstanding  preferred stock on an as-converted to common stock basis). The parties acknowledge and agree that a Financing which contains commercially reasonable customary terms and conditions for an equity financing of an early stage biopharmaceutical company does not have to contain all of the examples of terms listed in sub-clause (ii) of the preceding sentence.

 

The Maker shall notify the Holder in writing of the anticipated occurrence of a Financing or Qualified Financing at least 20 days prior to the closing date of the Financing or the Qualified Financing.

 

In lieu of the Maker issuing any fractional shares to the Holder upon the conversion of this Note, the Maker shall pay to the Holder an amount equal to the product obtained by multiplying the applicable conversion price by the fraction of a share not issued pursuant to the conversion of this Note.

 

Upon the conversion of this Note pursuant to the terms set forth herein, the Holder agrees to (i) execute and deliver to the Maker a customary 180-day lock-up agreement in connection with an initial public offering, and (ii) execute and deliver to the Maker all transaction documents entered into in connection with such conversion, which may include a purchase agreement, investor rights agreement, 

2

voting agreement, right of first refusal and co-sale agreement and/or other ancillary agreements, with customary representations and warranties and transfer restrictions. The Holder agrees in connection with any conversion of this Note to deliver the original of this Note (or a notice to the effect that the original Note has been lost, stolen or destroyed and an agreement acceptable to the Maker whereby the Holder agrees to indemnify the Maker from any loss incurred by it in connection with this Note) prior to conversion.

 

If (a) within two years after the date hereof the Company completes an additional round of debt financing with new investors (“New Debt”) and (b) the New Debt contains Economic Terms (as defined below) that are more favorable to New Debt holders than the Economic Terms of this Note, then the Holder shall have the option to exchange this Note for an equal principal amount of new notes (“New Notes”) with the same Economic Terms as the New Debt. “Economic Terms” shall mean and refer to interest rate, payment frequency, note attributes and amortization.  

 

This Note shall become immediately due and payable without notice or demand (but subject to the conversion rights set forth herein) upon the occurrence at any time of any of the following events of default (individually, an “Event of Default” and collectively, “Events of Default”):

 

(1)the Maker fails to pay any of the principal, interest or any other amounts payable under this Note when due and payable; 

 

(2)the Maker files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for the relief of, or relating to, debtors, now or hereafter in effect, or seeks the appointment of a custodian, receiver, trustee (or other similar official) of the Maker or all or any substantial portion of the Maker’s assets, or makes any assignment for the benefit of creditors or takes any action in furtherance of any of the foregoing, or fails to generally pay its debts as they become due; 

 

(3)an involuntary petition is filed, or any proceeding or case is commenced, against the Maker (unless such proceeding or case is dismissed or discharged within 60 days of the filing or commencement thereof) under any bankruptcy, reorganization, arrangement, insolvency, adjustment of debt, liquidation or moratorium statute now or hereafter in effect, or a custodian, receiver, trustee, assignee for the benefit of creditors (or other similar official) is applied or appointed for the Maker or to take possession, custody or control of any property of the Maker, or an order for relief is entered against the Maker in any of the foregoing; 

 

(4)the occurrence of a breach or default under any agreement, instrument or document to which the Maker is a party or by which it is bound, involving any obligation for borrowed money of more than $100,000 in the aggregate; 

 

(5)the Maker materially breaches any other agreement with the Holder (including without limitation any security agreement), or with 0851229 BC, Ltd. or with Fromar Investments, LP; or 

 

(6)the Maker borrows any funds from a third party without repaying this Note in full (excluding for this purpose account and trade payables incurred by the Maker in the ordinary course of business), or the Maker is party to a merger, or there is a sale of a controlling interest in the outstanding stock of the Maker, or a sale of all or substantially all of the Maker’s assets, or enters into an agreement  

3

for any of the foregoing.

 

Upon the occurrence of an Event of Default, the Holder shall have then, or at any time thereafter, all of the rights and remedies afforded creditors generally by the applicable federal laws or the laws of the State of California.

 

Notwithstanding anything to the contrary, this Note may be prepaid, in whole or in part, without the prior written consent of the Holder. The Maker shall disclose in writing to the Holder if and when it is in material discussions with respect to a Qualified Financing or a Financing.

 

All payments by the Maker under this Note shall be made without set-off or counterclaim and be free and clear and without any deduction or withholding for any taxes or fees of any nature whatever, unless the obligation to make such deduction or withholding is imposed by law.

 

The Maker shall pay the reasonable costs and expenses (including reasonable attorney’s fees and disbursements) that it incurs and, upon presentation of appropriate receipts, that the Holder incurs with respect to the preparation, negotiation, execution and delivery of this Note, any security agreement and any other agreement or instrument contemplated hereby or thereby. After the occurrence of an Event of Default, the Maker shall pay all costs and expenses, including, without limitation, reasonable attorneys’ fees and court costs, incurred in connection with any act or actions taken to collect or otherwise satisfy the obligations due under this Note, any security agreement and any other agreement or instrument contemplated hereby or thereby.

 

No delay or omission on the part of the Holder in exercising any right under this Note shall operate as a waiver of such right or of any other right of the Holder, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any future occasion. This Note may not be amended or modified without the prior written consent of the Maker and the Holder.

 

All payments by the Maker under this Note shall be applied first to any fees and expenses due and payable hereunder, then to the accrued interest due and payable hereunder and the remainder, if any, to the outstanding principal.

 

The Maker hereby waives presentment, demand, protest and notices of every kind and assents to any permitted extension of the time of payment and to the addition or release of any other party primarily or secondarily liable hereunder.

 

Until the conversion of this Note, the Holder shall not have or exercise any rights by virtue of this Note as a stockholder of the Maker.

 

All rights and obligations hereunder shall be governed by the laws of the State of California (without giving effect to principles of conflicts or choices of law) and this Note is executed as an instrument under seal.

 

Neither the Maker nor the Holder may assign, sell or otherwise transfer this Note or any of their respective rights and duties hereunder without the prior written consent of the other party hereto.

 

The Maker acknowledges that neither this Note nor any securities issuable upon the conversion 

4

of this this Note (collectively, the “Note Securities”) will be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. The Holder represents that (i) it is acquiring the Note Securities for its own account, for investment purposes only and not with a view to, or for sale in connection with, any distribution and (ii) it is an “accredited investor” under Regulation D promulgated under the Securities Act.

 

 

[Signature page follows.]

5

IN WITNESS WHEREOF, the parties have executed this Note effective as of the effective date set forth above.

 

 

 

MAKER:

 

MOUNT TAM BIOTECHNOLOGIES, INC.

 

 

 

By: /s/ Richard Marshak        

Print Name: Richard Marshak

Title: Chief Executive Officer

 

HOLDER:

 

CLIMATE CHANGE INVESTIGATION, 

INNOVATION AND INVESTMENT COMPANY, LLC

 

 

By:/s/ James J. Farrell         

Name:James J. Farrell 

Title:Manager 

6

Schedule 1

Schedule of Drawdowns

 

	Amount

 

	Date

	 

	 

	 

	 

	 

	 

	 

	 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}]]