On October 7, 2019, Zosano Pharma Corporation (the 'Company') announced that as a result of Troy Wilson's resignation from the Company's Board of Directors (the “Board”) and the Audit Committee, effective October 5, 2019, which requires the Company's Audit Committee to be composed of at least three independent directors. The resignation of Dr. Wilson has left the Audit Committee with only two independent directors. On October 5, 2019, John P. Walker, the President and Chief Executive Officer of the Company, notified the Company of his intent to resign, to be effective on the date the Company's new President and Chief Executive Officer, Steven Lo, commences his employment with the Company, which is expected to be October 21, 2019.

On October 7, 2019, Mr. Walker entered into a CEO transition letter agreement with the Company, pursuant to which, following his resignation, Mr. Walker will continue to serve as Chairman of the Board. In addition, from his resignation date until a date to be mutually agreed upon between the parties (which is anticipated to be no later than December 31, 2019), Mr. Walker will serve the Company as a non-executive employee to assist in the transition of duties to the new President and Chief Executive Officer. During such transition period, Mr. Walker will continue to receive his current annual base salary and will continue to be eligible to receive an annual bonus for performance in fiscal 2019 based on his current target bonus percentage and actual achievement, prorated to reflect the length of his employment during 2019.

Following the transition period, Mr. Walker will continue to serve as Chairman of the Board and will be eligible to receive compensation for such service under the Company's non-employee director compensation program. Mr. Walker's outstanding equity awards will continue to vest in accordance with their terms subject to his continued service to the Company. In the event of Mr. Walker's termination of his service as a member of the Board, his then-outstanding options to purchase the Company's common stock, to the extent vested, will remain outstanding and exercisable until the second anniversary of such termination or their original expiration dates, if earlier.

On October 5, 2019, the Board appointed Steven Lo as President and Chief Executive Officer of the Company and as a member of the Board, to be effective on the date Mr. Lo commences his employment with the Company, which is expected to be October 21, 2019. Mr. Lo will be a Class III director, with an initial term expiring at the Company's 2020 annual meeting of stockholders. Since September 2015, Mr. Lo, age 52, has served as Chief Commercial Officer of Puma Biotechnology Inc.