Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.
Appointment of Chief Financial Officer
On October 16, 2018, Zosano Pharma Corporation (the Company) announced that the Company entered into an employment agreement
(the Agreement) dated September 25, 2018 with Greg Kitchener, age 47, in connection with the commencement of his employment with the Company as Chief Financial Officer (including as the Companys Principal Financial Officer and
Principal Accounting Officer), effective as of October 15, 2018 (the Start Date). Since August 2015, Mr. Kitchener has served as the Chief Financial Officer of BioPharmX Corporation, a pharmaceutical company. Prior to joining
BioPharmX, from July 2008 to July 2015, Mr. Kitchener served in roles of increasing responsibility at Cepheid, Inc., a biotechnology company, including serving as Vice President of Finance from October 2011 to July 2015. Mr. Kitchener
holds a B.A. from the University of California, Santa Cruz and an M.B.A. from Cornell Universitys Johnson Graduate School of Management.
Pursuant to the terms of the Agreement, Mr. Kitchener will receive an annual base salary of $350,000. Mr. Kitchener is also eligible
to receive a cash bonus annually, targeted at 40% of his annual base salary (pro-rated from the Start Date through the end of the 2018 calendar year), with the payment amount based upon performance as
determined by the Companys Board of Directors (the Board) or the Compensation Committee of the Board after consideration of a proposal from the Companys Chief Executive Officer.
Additionally, the Company has agreed, subject to approval by the Board, that Mr. Kitchener will be granted an option to purchase 100,000
shares of the Companys common stock (the Initial Option) with an exercise price equal to the closing price of the Companys common stock on the date of grant. One-fourth of the shares
subject to the Initial Option will vest on the first anniversary of the Start Date and 1/48th of the shares will vest on each monthly anniversary thereafter, subject to Mr. Kitchener continuing to provide services to the Company through each
such vesting date. In addition, upon attainment of performance goal(s) to be established by the Board or the Compensation Committee of the Board, the Company has agreed to grant Mr. Kitchener an option to purchase 25,000 shares of the
Companys common stock (the Performance Option) with an exercise price equal to the closing price of the Companys common stock on the date of grant. The shares subject to Mr. Kitcheners Performance Option will vest
on the first anniversary of the grant date and 1/48th of the shares will vest on each monthly anniversary thereafter, subject to Mr. Kitchener continuing to provide services to the Company through each such vesting date.
In addition, the Agreement provides that in the event of a termination of employment without cause or for good reason, subject to execution of
an effective release, Mr. Kitchener will be entitled to receive his base salary for a period of six months and healthcare coverage for a period of up to six months. In addition, any stock options and other equity awards will accelerate as to
25% of any then unvested shares. In the event of a termination without cause or for good reason within one year following a change in control, subject to his execution of an effective release, Mr. Kitchener will be entitled to receive a lump
sum severance payment equal to 12 months of base salary plus an amount equal to his bonus, if any, earned for the immediately preceding fiscal year (provided, that, the termination occurs in 2019, the amount tied to his bonus shall not reflect any pro-ration based on his partial employment during 2018) and healthcare coverage for a period of up to 12 months. In addition, any stock options and other equity awards will accelerate as to 100% of any then unvested
shares. In the event of disability, the Company has also agreed to pay base salary and provide benefits, in each case, for up to 12 weeks during any period of 365 consecutive calendar days.