Document:

Implementation Agreement between Peplin Limited and Peplin, Inc.

 Exhibit 10.1 
 Execution Copy  
 8 August 2007 
 Peplin Limited

 Peplin, Inc. 
 Restructure 
 Implementation 
 Agreement 

			
	 Contents
	  	
	 1 Interpretation
	  	1
		
	 1.1 Definitions
	  	1
	 1.2 Construction
	  	6
	 1.3 Headings
	  	7
		
	 2 Implementation of the Restructure
	  	7
		
	 3 Conditions precedent
	  	7
		
	 3.1 Conditions precedent
	  	7
	 3.2 Benefit and waiver of Conditions Precedent
	  	9
	 3.3 Parties must cooperate
	  	9
	 3.4 Notification of certain events
	  	9
	 3.5 Certificate
	  	10
		
	 4 Restructure steps
	  	10
		
	 4.1 Preliminary steps
	  	10
	 4.2 Share Scheme steps
	  	10
	 4.3 Option Scheme steps
	  	11
	 4.4 Election
	  	11
	 4.5 Fractional entitlements
	  	12
	 4.6 Ineligible Foreign Shareholders
	  	12
	 4.7 Ineligible Foreign Optionholders
	  	12
	 4.8 Unlisted Options
	  	13
	 4.9 General provisions
	  	13
		
	 5 Implementation of the Restructure
	  	14
		
	 5.1 Mutual obligations
	  	14
	 5.2 Obligations of the Company
	  	14
	 5.3 Obligations of Peplin
	  	15
		
	 6 Public announcements
	  	16
		
	 7 Termination
	  	16
		
	 7.1 Termination prior to Second Court Date
	  	16
	 7.2 Other termination rights
	  	17
	 7.3 Method of termination
	  	17
	 7.4 Automatic termination
	  	17
	 7.5 Effect of termination
	  	17
		
	 8 Notices
	  	18
		
	 8.1 General
	  	18
	 8.2 How to give a communication
	  	18
	 8.3 Particulars for delivery of notices
	  	18
	 8.4 Communications by post
	  	18
	 8.5 Communications by fax
	  	18
	 8.6 After hours communications
	  	19
	 8.7 Process service
	  	19

  

 page i 

			
	 Contents
	  	
	 9 GST
	  	19
		
	 10 General
	  	20
		
	 10.1 Duty
	  	20
	 10.2 Legal costs
	  	20
	 10.3 Amendment
	  	20
	 10.4 Waiver and exercise of rights
	  	20
	 10.5 Rights cumulative
	  	20
	 10.6 Consents
	  	21
	 10.7 Further steps
	  	21
	 10.8 Governing law and jurisdiction
	  	21
	 10.9 Assignment
	  	21
	 10.10 Liability
	  	21
	 10.11 Counterparts
	  	21
	 10.12 Entire understanding
	  	21
	 10.13 No Merger
	  	21
		
	 Annexure 1 – Share Scheme
	  	24
		
	 Annexure 2 – Option Scheme
	  	25
		
	 Annexure 3 – Form of Share Scheme Deed Poll
	  	26
		
	 Annexure 4 – Form of Option Scheme Deed Poll
	  	27
		
	 Annexure 5 – Peplin Stock Option Plan
	  	28

  

 page ii 

 Date 
 Parties 
 Peplin Limited ABN 55 090 819 275 of Level 2, 1 Breakfast Creek Road, Newstead, Queensland 4006 (Company) 

Peplin, Inc a company incorporated in Delaware, United States of America of 6475 Christie Avenue, Emeryville, CA 94608, United States of America
(Peplin) 
 Background 
  

	A	The Company is listed on the official list of the ASX and has 184,591,662 Shares and 17,119,260 Options on issue. 

  

	B	Peplin is a company incorporated under the laws of Delaware, United States and has one share, being the Peplin Redeemable Share, on issue. Other than the Peplin Redeemable Share, Peplin has
not issued any other shares and has not granted any options or other convertible securities. 

  

	C	The parties have agreed on the terms set out in this document that the Company will propose to implement a reorganisation by means of: 

  

	 	(a)	a scheme of arrangement under Part 5.1 of the Corporations Act between the Company and its members; and 

  

	 	(b)	a scheme of arrangement under Part 5.1 of the Corporations Act between the Company and its listed optionholders. 

  

	D	Simultaneously with the Schemes, the Company and Peplin will seek to replace the Company’s unlisted options with stock options in Peplin. 

  

	E	Each of the parties agrees to do the things within their power to implement the Schemes on and subject to the terms of this document. 

 Agreed terms 
  

	1	Interpretation 

  

	1.1	Definitions 

 In this document: 
 ASIC means the Australian Securities and Investments Commission. 
  

 page 1 

 ASIC Relief means the modifications or exemptions which the Company and Peplin may agree are necessary or
desirable in connection with the Restructure. 
 associate has the meaning given in section 12 of the Corporations Act. 
 ASTC means the Australian Settlement and Transfer Corporation Limited. 
 ASTC Settlement Rules means the Settlement Rules of ASTC. 
 ASX means ASX Limited (ACN 008 624 691). 

ASX Listing Rules means the official listing rules of ASX. 
 ASX Waivers means the waivers to or exemptions from the ASX Listing Rules which the Company and Peplin may agree are necessary or desirable in connection with the Restructure. 
 Business Day means a day on which trading banks are open for business in Brisbane and Sydney, Australia, but does not include a Saturday, Sunday or any
public holiday in Brisbane and Sydney. 
 Capital Raising Resolution means the ordinary resolution to be put to Shareholders on or about the
date of the Scheme Meetings pursuant to ASX Listing Rule 7.1 for the issue of greater than 15% of the issued capital of Peplin or the Company (as applicable). 
 CDI Register has the meaning given to that term in the ASTC Settlement Rules. 
 CHESS Depositary Interest has the
meaning given to that term in the ASTC Settlement Rules. 
 Conditions Precedent means the conditions precedent in clause 3.1.

 Corporations Act means the Corporations Act 2001 (Cth). 
 Corporations Regulations means the Corporations Regulations 2001 (Cth). 
 Court means the Federal Court of
Australia. 
 Deed Polls mean the deed polls in the form of Annexures 3 and 4 (or in such other forms as is agreed between the
parties to this document). 
 Depositary has the meaning given to the term “Depositary” in the ASTC Settlement Rules. 
 Effective means, when used in relation to the Schemes, the coming into effect, pursuant to section 411(10) of the Corporations Act, of the Implementation
Orders. 
 Eligible Option Scheme Participant means an Option Scheme Participant who is registered in the Option Register as at the Record Date
with an address within Australia, New Zealand, the United States or such other country agreed by the Company and Peplin. 
 Eligible Share Scheme
Participant means a Share Scheme Participant who is registered in the Share Register as at the Record Date with an address 

  

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within Australia, New Zealand, the United States or such other country agreed by the Company and Peplin. 
 End Date means 31 October 2007, or such later date as the parties may agree in writing. 
 ESOP means the Employee Share Option Plan of the Company approved by shareholders on 30 June 2000. 
 Exercise Price means, in relation to an option, all amounts paid or payable with respect to that option, including any amount paid or payable on grant of
the option and/or on exercise of the option. 
 Governmental Agency means any government or governmental, semi-governmental, administrative,
fiscal, regulatory or judicial entity or authority. It also includes a self-regulatory organisation established under a statute or stock exchange. 
 Implementation Date means the Business Day immediately following the Record Date. 
 Implementation Orders means the orders
pursuant to Section 411(4)(b) of the Corporations Act in relation to the Schemes. 
 Independent Expert’s Report means a report by an
independent expert appointed in accordance with the guidelines established by ASIC in its Practice Notes 42 and 43 and Policy Statement 75, stating whether or not in his or her opinion, the Restructure is in the best interests of the Scheme
Participants and setting out his or her reasons for that opinion. 
 Information Memorandum means the information memorandum prepared by the
Company in respect of the Schemes to be approved by the Court and dispatched to Shareholders and Optionholders. 
 Ineligible Foreign
Optionholder means each Option Scheme Participant who is not an Eligible Option Scheme Participant. 
 Ineligible Foreign Shareholder means
each Share Scheme Participant who is not an Eligible Share Scheme Participant. 
 Intellectual Property means any and all intellectual property
rights throughout the world, whether or not registered or registrable, including all present and future rights in any: 
  

	 	(a)	patent, invention, discovery, copyright (including future copyright), trade mark, design, software, circuit layout, or trade, business, domain or company name; 

  

	 	(b)	entitlement to registration or application for registration of such a right; and 

  

	 	(c)	trade secrets, know how, concept, idea, data, formula and confidential or other information, 

 granted by law or equity from time to time under the law of any jurisdiction. 
  

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 Nominee means the nominee selected by the Company prior to the Implementation Date for the purposes of
clauses 4.6 and 4.7. 
 Option means an option to be issued a Share, which is listed for quotation on ASX, and for the avoidance
of doubt, does not include an Unlisted Option. 
 Optionholders means each person who is registered in the register of optionholders of the
Company as the holder of Options, from time to time. 
 Option CDI means the CHESS Depositary Interest to be issued in connection with the
Option Scheme representing an interest in one-twentieth of a Peplin Stock Option. 
 Option Register means the register of Options maintained in
accordance with the Corporations Act. 
 Option Scheme means the proposed scheme of arrangement under Part 5.1 of the Corporations Act
between the Company and the Optionholders in the form of Annexure 2, subject to any alterations or conditions made or required by the Court under section 411(6) of the Corporations Act and approved in writing by each party. 
 Option Scheme Participant means each person who is a Optionholder as at the Record Date. 
 Peplin Common Stock means shares of fully paid Common Stock in the capital of Peplin to come into existence on adoption by Peplin of its Certificate of
Incorporation. 
 Peplin Employee Stock Option means an option to be issued by Peplin to acquire one share of Peplin Common Stock under the
Peplin Stock Option Plan. 
 Peplin Redeemable Share means the one redeemable share in the capital of Peplin held by the Company, which will be
immediately redeemed on the Implementation Date. 
 Peplin Stock Option means an option to be issued by Peplin to acquire one share of Peplin
Common Stock under the Peplin Stock Option Plan. 
 Peplin Stock Option Plan means the Stock Option Plan in the form of Annexure 5 (or in
such other forms as is agreed between the parties to this document), to be adopted by Peplin in accordance with clause 4.1. 
 Record
Date means the fifth Business Day following the date on which the Schemes become Effective, or such earlier date as the parties may agree in writing. 
 Relevant Instrument means, with respect to any person: 
  

	 	(a)	the certificate of incorporation, the constitution, the by laws or charter documents of that person; 

  

	 	(b)	any agreement, note, bond, security interest, indenture, deed of trust, contract, undertaking, lease, or other instrument or obligation to which that person is a party or its assets are bound
or affected; 

  

 page 4 

	 	(c)	any authorisation, licence, permit or authority, granted to or entered into by that person and that is material in the context that it is granted or entered into; or 

 

	 	(d)	any writ, order, decree, injunction, judgment, law, statute, rule or regulation applicable to that person or its assets or by which it or they are bound or affected. 

Required Consents means the consent, approval, permission or waiver of any third party (including any Governmental Agency) which, whether pursuant to a
Relevant Instrument or otherwise, is required in connection with, or as a result of, the proposal or implementation of the Restructure in order to avoid: 
  

	 	(a)	a material breach, material violation or material default occurring under a Relevant Instrument applicable to any party or any of its associates; 

  

	 	(b)	any other person becoming entitled to terminate, withdraw, accelerate or call for a material default under a Relevant Instrument applicable to any party or any of its associates;

  

	 	(c)	any other person becoming entitled to amend the terms of a Relevant Instrument in a way which would materially adversely affect any party or any of its associates or which enables that other
person to acquire any other right which would materially adversely affect any party or any of its associates; or 

  

	 	(d)	the creation of any security interest upon any of the assets or properties of any party or any of its associates. 

 Restructure means the reorganisation which is to be effected on the Implementation Date, under which: 
  

	 	(a)	Peplin will acquire all of the Shares under the Share Scheme; 

  

	 	(b)	the Company will cancel all of the Options under the Option Scheme; 

  

	 	(c)	the Company will cancel all of the Unlisted Options; and 

  

	 	(d)	the existing securityholders of the Company will receive shares of common stock and options to acquire common stock in Peplin. 

 Scheme Meetings means the meetings of shareholders and option holders to be convened by the Court in relation to the Schemes pursuant to section 411(1) of
the Corporations Act. 
 Second Court Date means the day on which the Court makes orders pursuant to section 411(4)(b) of the Corporations Act
approving the Share Scheme. 
 Share CDI means the CHESS Depositary Interest to be issued in connection with the Share Scheme representing an
interest in one-twentieth of a share of Peplin Common Stock. 
 Share Register means the register of members of the Company maintained in
accordance with the Corporations Act. 
 Share Scheme means the proposed scheme of arrangement under Part 5.1 of the Corporations Act
between the Company and the Shareholders in the form 

  

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of Annexure 1, subject to any alterations or conditions made or required by the Court under section 411(6) of the Corporations Act and approved in
writing by each party. 
 Share Scheme Participant means each person who is a Shareholder as at the Record Date. 
 Shareholder means each person who is registered in the Share Register as the holder of Shares. 
 Shares means fully paid ordinary shares in the capital of the Company. 
 Scheme Participants means a Share Scheme Participant or a Option Scheme Participant. 
 Schemes means the Share
Scheme and the Option Scheme. 
 Unlisted Option means an option to be issued a Share issued: 
  

	 	(a)	under the ESOP; 

  

	 	(b)	under the directors and officers plan adopted by the Company; or 

  

	 	(c)	to directors and officers of the Company, and which, for the avoidance of doubt, is not an Option. 

 Unlisted Optionholders means each person who is registered in the register of optionholders of the Company as the holder of Unlisted Options, from time to time. 
  

	1.2	Construction 

 Unless expressed to the contrary, in this
document: 
  

	 	(a)	words in the singular include the plural and vice versa; 

  

	 	(b)	any gender includes the other genders; 

  

	 	(c)	if a word or phrase is defined its other grammatical forms have corresponding meanings; 

  

	 	(d)	“includes” means includes without limitation; 

  

	 	(e)	no rule of construction will apply to a clause to the disadvantage of a party merely because that party put forward the clause or would otherwise benefit from it; 

  

	 	(f)	a reference to: 

  

	 	(i)	a person includes a partnership, joint venture, unincorporated association, corporation and a government or statutory body or authority; 

  

	 	(ii)	a person includes the person’s legal personal representatives, successors, permitted assigns and persons substituted by permitted novation; 

  

 page 6 

	 	(iii)	any legislation includes subordinate legislation under it and includes that legislation and subordinate legislation as modified or replaced; 

  

	 	(iv)	an obligation includes a warranty or representation and a reference to a failure to comply with an obligation includes a breach of warranty or representation; 

  

	 	(v)	a right includes a benefit, remedy, discretion or power; 

  

	 	(vi)	time is to local time in Sydney; 

  

	 	(vii)	“$” or “dollars” is a reference to Australian currency; 

  

	 	(viii)	this or any other document includes the document as novated, varied or replaced by agreement between the parties and despite any change in the identity of the parties;

  

	 	(ix)	writing includes any mode of representing or reproducing words in tangible and permanently visible form, and includes fax transmissions; 

  

	 	(x)	this document includes all schedules and annexures to it; and 

  

	 	(xi)	a clause, schedule or annexure is a reference to a clause, schedule or annexure, as the case may be, of this document; 

  

	 	(g)	if the date on or by which any act must be done under this document is not a Business Day, the act must be done on or by the next Business Day; 

  

	 	(h)	where time is to be calculated by reference to a day or event, that day or the day of that event is excluded; and 

  

	 	(i)	a reference to any statement, including a warranty made by a party on the basis of its knowledge, belief or awareness, is made on the basis of the actual knowledge, belief or awareness of the
officers of the party (and no other persons) as at the date of this document. 

  

	1.3	Headings 

 Headings do not affect the interpretation of this
document. 
  

	2	Implementation of the Restructure 

 The Company agrees to propose the Schemes,
and the parties agree to implement the Restructure on and subject to this document. 
  

	3	Conditions precedent 

  

	3.1	Conditions precedent 

 The obligations of the parties under
clause 2 and clauses 4.2 to 4.9 to implement the Restructure, are subject to the following conditions precedent 

  

 page 7 

 
having been satisfied or deemed to be satisfied or waived in accordance with clause 3.2: 
  

	 	(a)	(ASX listing): before 8.00 am on the Second Court Date, ASX approves: 

  

	 	(i)	Peplin for admission to the ASX official list; 

  

	 	(ii)	the Share CDIs for official quotation by ASX; and 

  

	 	(iii)	the Option CDIs for official quotation by ASX, 

 in each case conditional only
on the Schemes becoming Effective and Peplin providing to the ASX the information required by the ASX approval or the ASX Listing Rules and satisfying any other conditions of the ASX approval related to deferred trading of CHESS Depositary
Interests; 
  

	 	(b)	(ASIC Relief): before 8.00 am on the Second Court Date, ASIC grants to the Company the ASIC Relief on terms that are unconditional or subject to conditions that are acceptable to the
Company; 

  

	 	(c)	(ASX Waivers): before 8.00 am on the Second Court Date, ASX grants to the Company the ASX Waivers on terms that are unconditional or subject to conditions that are acceptable to the
Company; 

  

	 	(d)	(Capital Raising): before 8.00am on the Second Court Date, the Shareholders have passed the Capital Raising Resolution; 

  

	 	(e)	(Required Consents): before 8.00 am on the Second Court Date, all Required Consents which the Company and Peplin agree are necessary to implement the Restructure are obtained or
received, without the imposition of any term or condition unsatisfactory to the parties acting reasonably; 

  

	 	(f)	(No restraints): before 8.00 am on the Second Court Date, no temporary restraining order, preliminary or permanent injunction or other order is issued by any court of competent
jurisdiction or other legal restraint or prohibition preventing the Restructure being implemented; 

  

	 	(g)	(Depositary): before 8.00 am on the Second Court Date, Peplin has appointed a Depositary and the Depositary has agreed to the allotment to it of Peplin Common Stock and Peplin Stock
Options under the Schemes; 

  

	 	(h)	(Nominee): before 8.00 am on the Second Court Date, Peplin has appointed a Nominee and the Nominee has agreed to sell the Share CDIs and the Option CDIs as contemplated by clauses
4.6 and 4.7 respectively; and 

  

	 	(i)	(Ability to issue CDIs): before 8.00 am on the Second Court Date, Peplin has done everything necessary under the ASTC Settlement Rules to enable it to issue Share CDls and Option CDIs
other than the allotment to a Depositary of, respectively: 

  

	 	(i)	Peplin Common Stock under the Share Scheme, and 

  

 page 8 

	 	(ii)	Peplin Stock Options under the Option Scheme. 

  

	3.2	Benefit and waiver of Conditions Precedent 

  

	 	(a)	The Company and Peplin together have the benefit of the Conditions Precedent in clause 3.1 and any breach or non-fulfilment of those Conditions Precedent can only be waived with the
consent of both parties. 

  

	 	(b)	A party entitled to waive a Condition Precedent under this clause 3.2 may do so in its absolute discretion. 

  

	 	(c)	If a waiver by a party of a Condition Precedent is itself conditional and the other party accepts the condition, the terms of that condition apply accordingly. If the other party does not
accept a conditional waiver of the Condition Precedent, the Condition Precedent has not been waived. 

  

	 	(d)	Unless specified in the waiver, a waiver of the breach or non-fulfilment of any Condition Precedent will not constitute: 

  

	 	(i)	a waiver of breach or non-fulfilment of any other Condition Precedent resulting from events or circumstances giving rise to the breach or non-fulfilment of the first Condition Precedent; or

  

	 	(ii)	a waiver of breach or non-fulfilment of that Condition Precedent resulting from any other event or circumstance. 

  

	3.3	Parties must cooperate 

  

	 	(a)	Each party must co-operate with the other and do all things reasonably necessary to procure that the Conditions Precedent are fulfilled in a timely manner and prior to the End Date.

  

	 	(b)	Each party must use its best endeavours to procure that: 

  

	 	(i)	each of the Conditions Precedent for which it is responsible is satisfied as soon as practicable after the date of this document, or continues to be satisfied at all times until the last time
it is to be satisfied (as the case may require), with a view to the Schemes becoming Effective on or before the End Date; and 

  

	 	(ii)	there is no event or circumstance within the reasonable control or influence of the Company or Peplin respectively that would prevent the Conditions Precedent being satisfied.

  

	 	(c)	For the purposes of this clause 3.3, the Company and Peplin will be jointly responsible for the Conditions Precedent. 

  

	3.4	Notification of certain events 

 Each party must: 
  

	 	(a)	keep the other promptly and reasonably informed of the steps it has taken and of its progress towards satisfaction of the Conditions Precedent; 

  

 page 9 

	 	(b)	promptly notify the other if it becomes aware that any Condition Precedent has been satisfied; 

  

	 	(c)	promptly notify the other if it becomes aware that any Condition Precedent has failed to be satisfied or has become incapable of being satisfied or is not reasonably capable of being
satisfied or of any circumstances which may reasonably be expected to lead to such a state of affairs; and 

  

	 	(d)	after having given or received a notice in accordance with clause 3.4(c) in relation to a Condition Precedent that it is entitled under clause 3.2 to waive, give notice to the
other party as soon as possible (and in any event no later than five Business Days or such shorter time to ensure that notice is given before 5.00 pm on the day before the Second Court Date) as to whether or not it waives the breach or
non-fulfilment of the relevant Condition Precedent, specifying that Condition Precedent. 

  

	3.5	Certificate 

 Each of the parties must provide to the Court on
the Second Court Date a certificate confirming whether or not all the conditions precedent in this document have been satisfied or waived. 
  

	4	Restructure steps 

  

	4.1	Preliminary steps 

 On or before 8.00 am on the Second Court
Date: 
  

	 	(a)	the Company will make an offer to each Unlisted Optionholder to cancel the Unlisted Options held by that person in accordance with clause 4.8(a); 

  

	 	(b)	the Company will seek a ruling from the Australian Taxation Office that Australian resident Scheme Participants will receive capital gains tax rollover relief in relation to the transfer of
their Shares to Peplin and the cancellation of their Options under the Schemes; 

  

	 	(c)	Peplin will adopt the Peplin Stock Option Plan; and 

  

	 	(d)	Peplin will file with the Secretary of State of the U.S. State of Delaware the Amended and Restated Certificate of Incorporation, and adopt the Amended and Restated By-laws.

  

	4.2	Share Scheme steps 

 On the Implementation Date, the following
steps will occur under the Share Scheme in the order set out below: 
  

	 	(a)	all of the Shares held by the Share Scheme Participants will be transferred to Peplin and, in consideration for and subject to this transfer, Peplin will: 

  

	 	(i)	in respect of Shares held by Eligible Share Scheme Participants on the Record Date: 

  

 page 10 

	 	(A)	issue to those Eligible Share Scheme Participants who have not made an election in accordance with clause 4.4, one Share CDI for every one Share held by them as at the Record Date;

  

	 	(B)	issue to those Eligible Share Scheme Participants who have made an election in accordance with clause 4.4, one share of Peplin Common Stock for every 20 Shares held by them as at the
Record Date; 

  

	 	(ii)	in respect of Shares held by Ineligible Foreign Shareholders on the Record Date, issue to the Nominee for sale on behalf of the Ineligible Foreign Shareholders under clause 4.6 one
Share CDI for every one Share held by them as at the Record Date. 

  

	 	(b)	The Company will then register the transfers of the Shares to Peplin in the Share Register. 

  

	4.3	Option Scheme steps 

 On the Implementation Date, the following
steps will occur under the Option Scheme in the order set out below: 
  

	 	(a)	in consideration for and subject to the Company cancelling the Options and issuing the new options referred to in paragraph (b) below, Peplin will: 

  

	 	(i)	in respect of the Options held by Eligible Option Scheme Participants on the Record Date issue to those Eligible Option Scheme Participants one Option CDI for every one Option held by them as
at the Record Date; and 

  

	 	(ii)	in respect of Options held by Ineligible Foreign Optionholders on the Record Date, issue to the Nominee for sale on behalf of the Ineligible Optionholders under clause 4.7 one Option
CDI for every one Option held by them as at the Record Date. 

  

	 	(b)	The Company will then cancel all of the Options outstanding as at the Record Date without the need for any further act by any Option Scheme Participant. 

  

	4.4	Election 

  

	 	(a)	The Information Memorandum must be accompanied by a form under which each Eligible Share Scheme Participant may make an election to receive shares of Peplin Common Stock rather than Share
CDIs under the Share Scheme, by completing, signing and returning the form by 5.00 pm on the Record Date (or such other date as agreed by the parties in writing) to the Company’s share registry. 

  

	 	(b)	An election under paragraph (a) may only be made in respect of all and not part of the Shares held by an Eligible Share Scheme Participant. 

  

 page 11 

	 	(c)	If an Eligible Share Scheme Participant does not make an election in accordance with paragraph (a), an Eligible Share Scheme Participant will receive Share CDIs under the Share Scheme.

  

	4.5	Fractional entitlements 

 Fractional entitlements to the
consideration offered under clause 4. 2(a)(i) (B) will be rounded up to the nearest whole number of shares of Peplin Common Stock after aggregating all holdings of a Share Scheme Participant and, in each case, in a manner which avoids
manipulation of holdings, take advantage of the rounding up entitlement. 
  

	4.6	Ineligible Foreign Shareholders 

 If clause 4. 2(a)(ii)
applies, Peplin will procure that the Nominee: 
  

	 	(a)	as soon as reasonably practicable sells, in a manner reasonably determined by the Nominee, for the benefit of the Ineligible Foreign Shareholders all the Share CDIs issued to the Nominee
under clause 4. 2(a)(ii); 

  

	 	(b)	accounts to each Ineligible Foreign Shareholder for the net proceeds of sale of the Share CDIs issued to the Nominee in respect of that Ineligible Foreign Shareholder’s entitlement under
clause 4. 2(a)(ii) (but calculated on an averaged basis so that all Ineligible Foreign Shareholders receive the same price per Share CDI (as the case may be), subject to rounding to the nearest whole cent) after deduction of any applicable
brokerage, taxes and charges, at the Ineligible Foreign Shareholder’s risk in full satisfaction of the Ineligible Foreign Shareholder’s rights under the Share Scheme; and 

  

	 	(c)	remits to the Ineligible Foreign Shareholder the net proceeds of sale in respect of the Ineligible Foreign Shareholder’s entitlement under this clause 4.6, such proceeds to be
dispatched by mail to the Ineligible Foreign Shareholder’s address as shown in the Share Register by cheque in Australian currency. 

  

	4.7	Ineligible Foreign Optionholders 

 If clause 4. 3(a)(ii)
applies, Peplin will procure that the Nominee: 
  

	 	(a)	as soon as reasonably practicable sells, in a manner reasonably determined by the Nominee, for the benefit of the Ineligible Foreign Optionholders all the Option CDIs issued to the Nominee
under clause 4. 3(a)(ii); 

  

	 	(b)	 accounts to each Ineligible Foreign Optionholder for the net proceeds of sale of the Option CDIs issued to the Nominee in respect of that Ineligible Foreign
Optionholder’s entitlement under clause 4. 3(a)(ii) above (but calculated on an averaged basis so that all Ineligible Foreign Optionholders receive the same price per Option CDI (as the case may be), subject to rounding to the nearest
whole cent) after deduction of any applicable brokerage, taxes and charges, at the Ineligible Foreign 

  

 page 12 

	 	 
Optionholder’s risk in full satisfaction of the Ineligible Foreign Optionholder’s rights under the Option Scheme; and 

  

	 	(c)	remits to the Ineligible Foreign Optionholder the net proceeds of sale in respect of the Ineligible Foreign Optionholder’s entitlement under this clause 4.7, such proceeds to be
dispatched by mail to the Ineligible Foreign Optionholder’s address as shown in the Option Register by cheque in Australian currency. 

  

	4.8	Unlisted Options 

  

	 	(a)	On or before 8.00 am on the Second Court Date, the Company will make an offer to each Unlisted Optionholder to cancel the Unlisted Options held by that person. In consideration for and
subject to that cancellation, Peplin will grant to each Unlisted Optionholder one Peplin Employee Stock Option under the Peplin Stock Option Plan for every 20 Unlisted Options held by them as at the Implementation Date (rounded up to the nearest
whole number of Peplin Employee Stock Options if necessary) on the terms set out in paragraph (c) below. 

  

	 	(b)	The offers made under clause 4.8(a) must be conditional on: 

  

	 	(i)	the Share Scheme becoming Effective; and 

  

	 	(ii)	ASX granting a waiver of any requirements under ASX Listing Rule 6.23 to obtain the approval of Shareholders to the cancellation of the Unlisted Options on or before the Implementation
Date. 

  

	 	(c)	Each Peplin Employee Stock Option will: 

  

	 	(i)	have an Exercise Price (per option) equal to 20 times the Exercise Price (per option) of the Unlisted Options it replaces; 

  

	 	(ii)	have an exercise period equal to the unexpired exercise period of the Unlisted Options it replaces; 

  

	 	(iii)	be vested to the same extent and have the same terms including the vesting schedules as the Unlisted Options it replaces; and 

  

	 	(iv)	otherwise be issued on the terms of the Peplin Stock Option Plan. 

  

	4.9	General provisions 

  

	 	(a)	The obligations of Peplin to issue Peplin Common Stock, Peplin Stock Options and Peplin Employee Stock Options under this document will be satisfied by Peplin on the Implementation Date,
procuring the entry in the registers maintained by Peplin of holders of Peplin Common Stock, Peplin Stock Options and Peplin Employee Stock Options of each person who is to receive Peplin Common Stock, Peplin Stock Options and/or Peplin Employee
Stock Options. 

  

	 	(b)	After the satisfaction of the obligations of Peplin in clause 4.9(a), and within five Business Days after the Implementation Date, Peplin will: 

  

 page 13 

	 	(i)	issue holding statements, certificates or transmittal letters (as the case may be) for such Peplin Common Stock, Peplin Stock Options and/or Peplin Employee Stock Options in the name of such
persons; and 

  

	 	(ii)	procure the dispatch of such holding statements, certificates or transmittal letters to the address as shown in the registers for such persons. 

  

	 	(c)	The obligations of Peplin to issue Share CDIs and Option CDIs under clause 4.2(a) and clause 4.3(a) respectively, of this document will be satisfied by Peplin:

  

	 	(i)	on the Implementation Date, procuring the entry in the register maintained by Peplin of holders of Peplin Common Stock of the Depositary as depositary to hold the Peplin Common Stock
underlying those Share CDIs; and 

  

	 	(ii)	on the Implementation Date, procuring the entry in the register maintained by Peplin of holders of Peplin Stock Options of the Depositary as depositary to hold the Peplin Stock Options
underlying those Option CDls. 

  

	 	(d)	After the satisfaction of the obligations of Peplin in clause 4.9(c), and within five Business Days after the Implementation Date, Peplin will: 

  

	 	(i)	issue holding statements or transmittal letters (as the case may be) for such Peplin Common Stock and/or Peplin Stock Options in the name of the Depositary, and procure the dispatch of such
holding statements or transmittal letters to the Depositary; 

  

	 	(ii)	record in the CDI Register each person who is to receive Share CDls and/or Option CDIs under clause 4.2(a) and clause 4.3(a); and 

  

	 	(iii)	dispatch to each person who is to receive Share CDIs and/or Option CDIs under clause 4.2(a) and clause 4.3(a) a holding statement in the name of that person representing the
number of Share CDIs and/or Option CDIs to be issued to that person. 

  

	5	Implementation of the Restructure 

  

	5.1	Mutual obligations 

 The parties must cooperate with each other,
and provide all assistance as reasonably requested, including the provision and collection of information, and attending any meetings, which a party reasonably requires in connection with the preparation of all documents, and the seeking of all
Required Consents and other approvals, required in connection with the Restructure. 
  

	5.2	Obligations of the Company 

 To the extent it has not already
done so prior to execution of this document, the Company must take all necessary steps to propose and implement the 

  

 page 14 

 
Schemes as soon as is reasonably practicable, including without limitation taking each of the following steps: 
  

	 	(a)	(Court direction): apply to the Court for orders under section 411(1) of the Corporations Act directing the Company to convene the Scheme Meetings; 

  

	 	(b)	(Section 411(17)(b) statement): apply to ASIC for the production of a statement pursuant to section 411(17)(b) of the Corporations Act stating that ASIC has no objection to the
Schemes; 

  

	 	(c)	(Information Memorandum): promptly prepare and dispatch the Information Memorandum to Shareholders, Optionholders and Unlisted Optionholders, incorporating the Independent
Expert’s Report (and, in this regard, the Company must act in good faith to attempt to ensure that the Information Memorandum complies with the requirements of the Corporations Act, the Corporations Regulations and ASIC Regulatory Guides
No. 60 and 142); 

  

	 	(d)	(Scheme Meetings): promptly convene the Scheme Meetings in accordance with the Court order referred to in clause 5.1(a), provided that if this document is terminated under
clause 7, it will take all steps reasonably required to ensure the Scheme Meetings are not held; 

  

	 	(e)	(Court approval): as soon as practicable after Shareholders and Optionholders have approved the Schemes at the Scheme Meetings, apply to the Court for the Implementation Orders;

  

	 	(f)	(Lodge copy of Court orders): lodge with ASIC an office copy of the Implementation Orders; 

  

	 	(g)	(Transfer of Shares): register and process the transfer of Shares referred to in clauses 4.2(a) on the Implementation Date; and 

  

	 	(h)	(Cancellation of Options and Unlisted Options): register and process the cancellation of the Options and Unlisted Options on the Implementation Date. 

  

	5.3	Obligations of Peplin 

 To the extent it has not already done so
prior to execution of this document, Peplin must take all necessary steps to assist the Company to propose and implement the Schemes as soon as is reasonably practicable including, without limitation, taking each of the following steps: 

 

	 	(a)	(Peplin Information): promptly provide to the Company for inclusion in the Information Memorandum such information regarding Peplin as the Company reasonably requires to prepare and
issue the Information Memorandum (including consent to the form and context in which that information appears in the Information Memorandum); 

  

	 	(b)	 (Independent Expert Information): provide any assistance or information reasonably requested by the Company or by the independent expert in connection with the
preparation of the 

  

 page 15 

	 	 
Independent Expert’s Report to be sent together with the Information Memorandum; 

  

	 	(c)	(Supplementary Information): promptly provide to the Company such information as may arise after the Information Memorandum has been prepared which may be necessary to ensure that the
Information Memorandum, in relation to the information contained in it provided by Peplin, does not contain any material statement which is false or misleading or contain any material omission; 

  

	 	(d)	(Deed Polls): prior to the dispatch of the Information Memorandum, enter into the Deed Polls to which it is a party; 

  

	 	(e)	(Issue of CDIs): do all things necessary under the ASTC Settlement Rules to enable the Share CDls and Option CDIs to be issued; and 

  

	 	(f)	(Issue of Peplin securities): do all things necessary to enable the Peplin Common Stock, the Peplin Stock Options and Peplin Employee Stock Options to be issued.

  

	6	Public announcements 

 Each party will, subject to law and applicable ASX
Listing Rules, use its reasonable endeavours to consult and agree the form of any other public announcement by it or any of its related bodies corporate in connection with the Restructure. 
  

	7	Termination 

  

	7.1	Termination prior to Second Court Date 

 Without limiting any
other provision of this document, this document may be terminated at any time prior to the Second Court Date: 
  

	 	(a)	(Peplin Breach): by the Company, if Peplin is in material breach of this document, taken in the context of the Restructure as a whole, provided that the Company has given notice to
Peplin setting out the relevant circumstances and stating an intention to terminate and the relevant circumstances have continued to exist for five Business Days (or any shorter period ending prior to the commencement of the hearing of the
application to the Court to approve the Schemes on the Second Court Date) from the time such notice is given; 

  

	 	(b)	 (Company Breach): by Peplin, if the Company is in material breach of this document, taken in the context of the Restructure as a whole, provided that Peplin (as the
case may be) has given notice to the Company setting out the relevant circumstances and stating an intention to terminate and the relevant circumstances have continued to exist for five Business Days (or any shorter period ending prior to the
commencement of the hearing of the application to the Court to approve 

  

 page 16 

	 	 
the Schemes on the Second Court Date) from the time such notice is given; 

  

	 	(c)	(Directors’ Recommendation): by any party if the Board of the Company withdraws its recommendation in favour of the Restructure; 

  

	 	(d)	(Failure of Condition Precedent): by any party if any Condition Precedent is not satisfied or waived in accordance with clause 3.2; 

  

	 	(e)	(Order): by any party if a Court or other Governmental Agency has issued a final and non-appealable order, decree or ruling or taken other action which permanently restrains or
prohibits the Restructure; and 

  

	 	(f)	(Court Decision): by any party if the Court refuses to make any order convening the Scheme Meetings and the parties are advised by its legal advisors that an appeal against that
decision would have either no reasonable prospect of success or a low probability of success. 

  

	7.2	Other termination rights 

 Without limiting any other provision
of this document, this document may be terminated at any time by any party if: 
  

	 	(a)	the End Date has passed without the Schemes becoming Effective; or 

  

	 	(b)	the Court refuses to make the Implementation Orders and that party is advised by its legal advisors that an appeal against that decision would have no reasonable prospect of success.

  

	7.3	Method of termination 

 Where a party has the right to terminate
this document under clause 7.1 or 7.2, that right for all purposes will be validly exercised if that party gives a notice in writing to the other parties stating to the other parties that it terminates this document. 
  

	7.4	Automatic termination 

 Without limiting any other provision of
this document, this document will terminate automatically, without the action of any party, if the resolution put to the Share Scheme Meeting to approve the Share Scheme is not approved by the requisite majorities of Shareholders under the
Corporations Act. 
  

	7.5	Effect of termination 

 If this document is terminated, whether
pursuant to clauses 7.1, 7.2 or 7.4, it will become void and have no effect, other than in respect of any liability for an antecedent breach of this document and provided that this clause and clauses 1 and 10
survive termination. 
  

 page 17 

	8	Notices 

  

	8.1	General 

 A notice, demand, certification, process or other
communication relating to this document must be in writing in English and may be given by an agent of the sender. 
  

	8.2	How to give a communication 

 In addition to any other lawful
means, a communication may be given by being: 
  

	 	(a)	personally delivered; 

  

	 	(b)	left at the party’s current address for notices; 

  

	 	(c)	sent to the party’s current address for notices by pre-paid ordinary mail or, if the address is outside Australia, by pre-paid airmail; or 

  

	 	(d)	sent by fax to the party’s current fax number for notices. 

  

	8.3	Particulars for delivery of notices 

  

	 	(a)	The particulars for delivery of notices are initially: 

  

			
	 Company
	  	
		
	 Address:
	  	Level 2, 1 Breakfast Creek Road, Newstead,
		  	Qld 4006
		
	 Fax:
	  	+61 7 3237 2152
		
	 Attention:
	  	Company Secretary
		
	 Peplin 
	  	
		
	 Address:
	  	c/o- Peplin Limited
		  	6475 Christie Avenue
		  	Emeryville, CA 94608
		  	United States
		
	 Fax:
	  	+1 510 653 9704
		
	 Attention:
	  	David Smith

  

	 	(b)	Each party may change its particulars for delivery of notices by notice to each other party. 

  

	8.4	Communications by post 

 Subject to clause 8.6, a
communication is given if posted: 
  

	 	(a)	within Australia to an Australian address, three Business Days after posting; or 

  

	 	(b)	in any other case, ten Business Days after posting. 

  

	8.5	Communications by fax 

 Subject to clause 8.6, a
communication is given if sent by fax, when the sender’s fax machine produces a report that the fax was sent in full to the 

  

 page 18 

 
addressee. That report is conclusive evidence that the addressee received the fax in full at the time indicated on that report. 
  

	8.6	After hours communications 

 If a communication is given:

  

	 	(a)	after 5.00 pm in the place of receipt; or 

  

	 	(b)	on a day which is a Saturday, Sunday or bank or public holiday in the place of receipt, 

 it is taken as having been given at 9.00 am on the next day which is not a Saturday, Sunday or bank or public holiday in that place. 
  

	8.7	Process service 

 Any process or other document relating to
litigation, administrative or arbitral proceedings relating to this document may be served by any method contemplated by this clause 8 or in accordance with any applicable law. 
  

	9	GST 

  

	 	(a)	In this clause 9: 

  

	 	(i)	words and expressions which are not defined in this contract but which have a defined meaning in GST Law have the same meaning as in the GST Law; and 

  

	 	(ii)	GST Law has the meaning given to that expression in the A New Tax System (Goods and Services Tax) Act 1999. 

  

	 	(b)	Unless otherwise expressly stated, all prices or other sums payable or consideration to be provided under this contract are exclusive of GST. 

  

	 	(c)	If GST is payable by a supplier or by the representative member for a GST group of which the supplier is a member, on any supply made under or in relation to this contract, the recipient will
pay to the supplier an amount equal to the GST payable on the supply. 

  

	 	(d)	The recipient will pay the amount referred to in paragraph (c) in addition to and at the same time that the consideration for the supply is to be provided under this contract.

  

	 	(e)	The supplier must deliver a tax invoice or an adjustment note to the recipient before the supplier is entitled to payment of an amount under paragraph (c). The recipient can withhold
payment of the amount until the supplier provides a tax invoice or an adjustment note, as appropriate. 

  

	 	(f)	If an adjustment event arises in respect of a taxable supply made by a supplier under this contract, the amount payable by the recipient under paragraph (c) will be recalculated
to reflect the adjustment event and a payment will be made by the recipient to the supplier or by the supplier to the recipient as the case requires. 

  

 page 19 

	 	(g)	Where a party is required under this contract to pay or reimburse an expense or outgoing of another party, the amount to be paid or reimbursed by the first party will be the sum of:

  

	 	(i)	the amount of the expense or outgoing less any input tax credits in respect of the expense or outgoing to which the other party, or to which the representative member for a GST group of which
the other party is a member, is entitled; and 

  

	 	(ii)	if the payment or reimbursement is subject to GST, an amount equal to that GST. 

  

	10	General 

  

	10.1	Duty 

  

	 	(a)	Peplin as between the parties is liable for and must pay all duty (including any fine or penalty except where it arises from default by the other party) on or relating to this document, any
document executed under it or any dutiable transaction evidenced or effected by it. 

  

	 	(b)	If a party other than Peplin pays any duty (including any fine or penalty) on or relating to this document, any document executed under it or any dutiable transaction evidenced or effected by
it, Peplin must pay that amount to the paying party on demand. 

  

	10.2	Legal costs 

 Except as expressly stated otherwise in this
document, the Company will pay the legal and other costs and expenses of negotiating, preparing, executing and performing the parties’ respective obligations under this document. 
  

	10.3	Amendment 

 This document may only be varied or replaced by a
document executed by the parties. 
  

	10.4	Waiver and exercise of rights 

  

	 	(a)	A single or partial exercise or waiver by a party of a right relating to this document does not prevent any other exercise of that right or the exercise of any other right.

  

	 	(b)	A party is not liable for any loss, cost or expense of any other party caused or contributed to by the waiver, exercise, attempted exercise, failure to exercise or delay in the exercise of a
right. 

  

	10.5	Rights cumulative 

 Except as expressly stated otherwise in this
document, the rights of a party under this document are cumulative and are in addition to any other rights of that party. 
  

 page 20 

	10.6	Consents 

 Any consent referred to in, or required under, this
document from any party may not be unreasonably withheld, unless this document expressly provides for that consent to be given in that party’s absolute discretion. 
  

	10.7	Further steps 

 Each party must promptly do whatever any other
party reasonably requires of it to give effect to this document and to perform its obligations under it. 
  

	10.8	Governing law and jurisdiction 

  

	 	(a)	This document is governed by and is to be construed in accordance with the laws applicable in New South Wales. 

  

	 	(b)	Each party irrevocably and unconditionally submits to the non-exclusive jurisdiction of the courts of New South Wales and any courts which have jurisdiction to hear appeals from any of those
courts and waives any right to object to any proceedings being brought in those courts. 

  

	10.9	Assignment 

  

	 	(a)	A party must not assign or deal with any right under this document without the prior written consent of the other parties. 

  

	 	(b)	Any purported dealing in breach of this clause is of no effect. 

  

	10.10	Liability 

 An obligation of two or more persons binds them
separately and together. 
  

	10.11	Counterparts 

 This document may consist of a number of
counterparts and, if so, the counterparts taken together constitute one document. 
  

	10.12	Entire understanding 

  

	 	(a)	This document contains the entire understanding between the parties as to the subject matter of this document. 

  

	 	(b)	All previous negotiations, understandings, representations, warranties, memoranda or commitments concerning the subject matter of this document are merged in and superseded by this document
and are of no effect. No party is liable to any other party in respect of those matters. 

  

	 	(c)	No oral explanation or information provided by any party to another: 

  

	 	(i)	affects the meaning or interpretation of this document; or 

  

	 	(ii)	constitutes any collateral agreement, warranty or understanding between any of the parties. 

  

	10.13	No Merger 

 The rights and obligations of the parties under this
document will not merge on completion of any transaction under this document. They will survive the 

  

 page 21 

 
execution and delivery of any assignment or other document entered into for the purpose of implementing any transaction. 
  

 page 22 

					
	 Executed as an agreement.
	  		  	
			
	 Executed by Peplin Limited
	  	)	  	
	 /s/ David Smith
	  		  	 /s/ Cherrell Hirst

	 Company Secretary/Director
	  		  	Director
	 David Smith
	  		  	 Cherrell Hirst

	 Name of Company Secretary/Director
 (print)
	  		  	Name of Director (print)
			
	Executed on behalf of Peplin, Inc. by	  	)	  	
	an authorised officer or attorney in the	  		  	
	 presence of:
	  	)	  	
			
		  	)	  	
	 /s/ James Rozsa
	  		  	 /s/ Michael Aldridge

	Witness	  		  	Officer/Attorney
	 James Rozsa
	  		  	 Michael Aldridge

	Name of Witness (print)	  		  	Name of Officer/Attorney (print)

  

 page 23 

 Annexure 1 
 Share Scheme 
  

 page 24 

 Peplin Limited 
 Each Share Scheme Participant

 Share Scheme 
 pursuant to section 411 of the Corporations Act 

 Date 
 Parties 
 Peplin Limited ABN 55 090 819 275 of Level 2, 1 Breakfast Creek Road, Newstead, Qld 4006 (Company) 
 Each Share Scheme Participant 
 Background 
  

	A	The Company is a public company registered in Queensland and is a company limited by shares. 

  

	B	As at the date of the Information Memorandum, 184,591,662 Shares were on issue. 

  

	C	Peplin is a company incorporated under the laws of Delaware, United States. 

  

	D	The Company and Peplin have entered into the Implementation Agreement which sets out the terms on which the parties have agreed to implement this Share Scheme. 

  

	E	Peplin has entered into the Deed Poll for the purpose of covenanting in favour of Share Scheme Participants to perform their obligations under this Share Scheme and the Implementation
Agreement. 

 Agreed terms 
  

	1	Interpretation 

  

	1.1	Definitions 

 In this document: 
 CHESS means the clearing house electronic sub-register system of share transfers operated by ASX Settlement and Transfer Corporation Pty Limited.

 Effective Date means the date on which this Share Scheme becomes Effective. 
 Implementation Agreement means the Restructure Implementation Agreement dated 8 August 2007 between the Company and Peplin relating to the
implementation of the Schemes and related transactions. 

 Marketable Parcel has the meaning given to that term in the ASX Market Rules. 
 Peplin means Peplin, Inc, a company incorporated in Delaware, United States. 
 Restated Certificate of Incorporation and By-Laws means the constituent documents of Peplin. 
 Tax File Number
means the tax file number issued to a person by the Australian Taxation Office or, in the case of non-Australian residents, a number or identification issued for taxation purposes by the equivalent governmental agency of that resident’s
country. 
  

	1.2	Further definitions and construction 

 Unless the context
requires otherwise, clauses 1.1 and 1.2 of the Implementation Agreement apply as if set out in full. 
  

	2	Conditions 

  

	2.1	Conditions precedent 

 This Share Scheme is conditional on each
of the following conditions precedent: 
  

	 	(a)	all of the conditions set out in clause 3.1 of the Implementation Agreement, have been satisfied or waived in accordance with the terms of the Implementation Agreement before 8.00 am on
the Second Court Date; 

  

	 	(b)	as at the Second Court Date, neither the Implementation Agreement nor the Deed Poll have been terminated; 

  

	 	(c)	the Share Scheme has been approved in accordance with section 411 of the Corporations Act at the Scheme Meetings; and 

  

	 	(d)	the Share Scheme has been approved by the Court pursuant to section 411(4)(b) of the Corporations Act by the End Date. 

  

	2.2	Satisfaction of Conditions 

 The Company and Share Scheme
Participants will not have any rights or obligations under clause 4 of this document unless and until the conditions precedent in clause 2.1 are satisfied. 
  

	3	Lodgement 

 On or before the fourth Business Day following approval of the
Share Scheme by the Court in accordance with section 411(4)(b) of the Corporations Act, the Company will lodge with ASIC an office copy of the Court order under section 411(10) of the Corporations Act approving this Share Scheme. The Court
order is taken to have effect on and from the time and date specified in that order. 
  

 page 2 

	4	Implementation 

  

	4.1	Share Scheme steps 

 Subject to the conditions precedent in
clause 2.1 being satisfied, on the Implementation Date, the Company will: 
  

	 	(a)	procure Peplin to: 

  

	 	(i)	in respect of Shares held by Eligible Share Scheme Participants on the Record Date: 

  

	 	(A)	issue to those Eligible Share Scheme Participants who have not made an election in accordance with clause 4.2, one Share CDI for every one Share held by them as at the Record
Date; and 

  

	 	(B)	issue to those Eligible Share Scheme Participants who have made an election in accordance with clause 4.2, one share of Peplin Common Stock for every 20 Shares held by them as at
the Record Date; 

  

	 	(ii)	in respect of Shares held by Ineligible Foreign Shareholders on the Record Date, issue to the Nominee for sale on behalf of the Ineligible Foreign Shareholders under clause 4.4
one Share CDI for every one Share held by them as at the Record Date; 

  

	 	(iii)	undertake to each Share Scheme Participant that any fractional entitlements resulting from paragraph (a)(i)(B) will be dealt with in accordance with clause 4.3 below,

 and each Share Scheme Participant agrees in favour of the Company that they will accept such shares and CHESS Depositary Interests;

  

	 	(b)	either effect a valid transfer or transfers of the Shares held by the Scheme Participants to Peplin under section 1074D of the Corporations Act or deliver to Peplin duly completed and
executed share transfer forms (or a master transfer form) in accordance with section 1071B of the Corporations Act and Peplin will execute and deliver those share transfer form(s) to the Company; and 

  

	 	(c)	enforce the provisions of the Implementation Agreement for the benefit of Share Scheme Participants, including the obligations of Peplin to issue Peplin Common Stock or procure the issue of
CHESS Depositary Interests representing an interest in Peplin Common Stock. 

  

	4.2	Election 

  

	 	(a)	Each Eligible Share Scheme Participant may make an election to receive shares of Peplin Common Stock rather than Share CDIs under the Share Scheme by completing, signing and returning the
relevant form contained in the Information Memorandum by 5.00pm on the Record Date (or such other date as agreed by the parties in writing) to the Company’s share registry. 

  

 page 3 

	 	(b)	An election under paragraph (a) may only be made in respect of all and not part of the Shares held by an Eligible Share Scheme Participant. 

  

	 	(c)	If an Eligible Share Scheme Participant does not make an election in accordance with paragraph (a), an Eligible Share Scheme Participant will receive Share CDIs under the Share Scheme.

  

	4.3	Fractional entitlements 

 Fractional entitlements to the
consideration offered under clause 4.1(a)(i) (B) will be rounded up to nearest whole number of shares of Peplin Common Stock, after aggregating all holdings of a Share Scheme Participant. 
  

	4.4	Ineligible Foreign Shareholders 

 If
clause 4.1(a)(ii) applies, Peplin will procure that the Nominee: 
  

	 	(a)	as soon as reasonably practicable sells, in a manner reasonably determined by the Nominee, for the benefit of the Ineligible Foreign Shareholders all the Share CDIs issued to the Nominee
under clause 4.1(a)(ii); 

  

	 	(b)	accounts to each Ineligible Foreign Shareholder for the net proceeds of sale of the Share CDIs issued to the Nominee in respect of that Ineligible Foreign Shareholder’s entitlement under
clause 4.1(a)(ii) (but calculated on an averaged basis so that all Ineligible Foreign Shareholders receive the same price per Share CDI (as the case may be), subject to rounding to the nearest whole cent) after deduction of any
applicable brokerage, taxes and charges, at the Ineligible Foreign Shareholder’s risk in full satisfaction of the Ineligible Foreign Shareholder’s rights under the Share Scheme; and 

  

	 	(c)	remits to the Ineligible Foreign Shareholder the net proceeds of sale in respect of the Ineligible Foreign Shareholder’s entitlement under this clause 4.4, such proceeds to
be dispatched by mail to the Ineligible Foreign Shareholder’s address as shown in the Share Register by cheque in Australian currency. 

  

	4.5	Joint holders 

 In the case of Shares held by Share Scheme
Participants on the Record Date in joint names: 
  

	 	(a)	any cheque required to be paid in respect of the relevant shares will be payable to the joint holders and will be forwarded to the holder whose name appears first in the Share Register on the
Record Date; and 

  

	 	(b)	any holding statements or transmittal letters for Peplin Common Stock, or CHESS Depositary Interests, which are to be issued in respect of the relevant Shares will be issued in the names of
the joint holders and forwarded to the holder whose name appears first in the Share Register on the Record Date. 

  

 page 4 

	5	Dealings in Shares 

  

	 	(a)	For the purpose of establishing who are Share Scheme Participants, dealings in Shares will only be recognised if: 

  

	 	(i)	in the case of dealings of the type to be affected using CHESS, the transferee is registered in the Share Register as the holder of the relevant the Shares (as the case may be) by 10.00 pm on
the Record Date; and 

  

	 	(ii)	in all other cases, if registrable transmission applications or transfers in respect of those dealings are received on or before 10.00 pm on the Record Date at the place where the Share
Register is kept. 

  

	 	(b)	The Company must register registrable transmission applications or transfers of the type referred to in paragraph (a)(ii), provided that nothing in this paragraph requires the Company
to register a transfer that would result in a Shareholder holding a parcel of Shares that is less than a Marketable Parcel. 

  

	 	(c)	The Company will not accept for registration or recognise for any purpose any transmission application or transfer in respect of Shares received after 10.00 pm on the Record Date.

  

	 	(d)	For the purpose of determining entitlements to the consideration to be provided under this Share Scheme, the Company will, until that consideration has been provided, maintain the Share
Register in accordance with the foregoing provisions of this clause 5 and the Share Register in this form will solely determine entitlements to that consideration. 

  

	 	(e)	The Company must procure that on the Record Date, details of the names, registered addresses and holdings of Shares of every Share Scheme Participant as shown in the Share Register at the
Record Date are available to Peplin in such form as Peplin may reasonably require. 

  

	 	(f)	Subject to implementation occurring under this Share Scheme, as from 10.00 pm on the Record Date, all share certificates and holding statements for the Shares held at 10.00 pm on the Record
Date will cease to have effect as documents of title, and each entry currently on the Share Register at that time in respect of Shares will cease to have any effect other than as evidence of entitlement to the consideration required to be provided
under this Share Scheme. 

  

	6	General provisions 

  

	6.1	Alterations and conditions 

 If the Court proposes to approve
this Share Scheme subject to any alterations or conditions, the Company may by its legal counsel consent on behalf of all persons concerned to those alterations or conditions to which Peplin has consented. 
  

 page 5 

	6.2	Warranties by Share Scheme Participants 

 Each Share Scheme Participant
is deemed to have warranted to Peplin that: 
  

	 	(a)	all their Shares (including any rights and entitlements attaching to those shares) transferred to Peplin under the Scheme will, on the Implementation Date, be fully paid and free from all
mortgages, charges, liens, encumbrances, pledges, security interests and other interests of third parties of any kind, whether legal or otherwise, and restrictions on transfer of any kind, whether legal or otherwise; and 

  

	 	(b)	they have full power and capacity to sell and to transfer their shares (including any rights and entitlements attaching to those shares) to Peplin under the Share Scheme.

  

	6.3	Covenants by Share Scheme Participants 

  

	 	(a)	Each Share Scheme Participants: 

  

	 	(i)	consents to the Company doing all things necessary or incidental to the implementation of this Share Scheme; and 

  

	 	(ii)	agrees to be bound by the terms of the Restated Certificate of Incorporation and By-Laws in respect of Peplin Common Stock and/or Share CDIs issued to them pursuant to this Share Scheme.

  

	 	(b)	Each Share Scheme Participant, without the need for any further act, irrevocably appoints the Company and all of its directors and officers (jointly and severally) as its attorney and agent
for the purpose of executing any document necessary to give effect to the Share Scheme. 

  

	6.4	Registration of Common Stock and Share CDIs 

  

	 	(a)	The obligations of the Company to procure Peplin to issue Peplin Common Stock under clause 4 of this document will be satisfied by Peplin, on the Implementation Date, procuring the
entry in the registers maintained by Peplin of holders of Peplin Common Stock each person who is to receive Peplin Common Stock under those provisions. 

  

	 	(b)	After the satisfaction of the obligations of the Company in paragraph (a) above, and within 5 Business Days after the Implementation Date, the Company will procure Peplin to also
issue holding statements or transmittal letters (as the case may be) for such Peplin Common Stock in the name of such persons, and procure the dispatch of such holding statements or transmittal letters to the address as shown in the Share Register
for such persons. 

  

	 	(c)	The obligations of the Company to procure Peplin to issue Share CDIs under clause 4 of this Share Scheme will be satisfied by Peplin on the Implementation Date, procuring the entry in
the register maintained by Peplin of holders of Peplin Common Stock of the Depositary as depositary to hold the Peplin Common Stock underlying those Share CDIs. 

  

 page 6 

	 	(d)	After the satisfaction of the obligations of the Company in paragraph (c) above, within 5 Business Day after the Implementation Date, the Company will procure Peplin to:

  

	 	(i)	issue holding statements or transmittal letters (as the case may be) for such Peplin Common Stock in the name of the Depositary, and procure the dispatch of such holding statements or
transmittal letters to the Depositary; 

  

	 	(ii)	record in the CDI Register each person who is to receive Share CDls under clause 4 ; and 

  

	 	(iii)	dispatch to each person who is to receive Share CDIs under clause 4 a holding statement in the name of that person representing the number of Share CDIs to be issued to that person.

  

	6.5	Communications 

  

	 	(a)	Where a notice, transfer, transmission application, direction or other communication referred to in this document is sent by post to the Company, it will not be deemed to be received in the
ordinary course of post or on a date other than the date (if any) on which it is actually received at the Company’s registered office or at its Share Registry. 

  

	 	(b)	The Company may, acting in good faith but otherwise in its sole discretion, treat as valid or invalid any form and/or method of execution of notice from a Share Scheme Participant who is
registered in the Share Register as at the Record Date with an address in Australia, New Zealand or the United States of America requesting Peplin Common Stock under the Share Scheme rather than CHESS Depositary Interests (or any notice of
revocation of such request). 

  

	 	(c)	Except for a Share Scheme Participant’s Tax File Number, any instruction or notification between a Share Scheme Participant and the Company relating to Shares at the Record Date
(including, any instruction relating to payment of dividends or to communications from the Company) will from the Implementation Date be deemed to be a similar instruction or notification to Peplin (except where the performance of such instruction
or notification by Peplin would not be permitted under applicable law) in respect of Peplin Common Stock (or, in the case of Eligible Share Scheme Participants who have not made an election under clause 4.2, Share CDls) issued to the
Share Scheme Participant until that instruction or notification is revoked or amended in writing and addressed to Peplin. 

  

	6.6	Further assurances 

 The Company will execute all documents and do all
acts and things necessary for the implementation and performance of its obligations under the Share Scheme. 
  

 page 7 

	6.7	Governing law 

 The proper law of this document is the law of the State
of New South Wales. 
  

 page 8 

 Annexure 2 
 Option Scheme 
  

 page 25 

 Peplin Limited 
 Each Option Scheme Participant

 Option Scheme 
 pursuant to section 411 of the Corporations Act 

 Date 
 Parties 
 Peplin Limited ABN 55 090 819 275 of Level 2, 1 Breakfast Creek Road, Newstead, Qld 4006 (Company) 
 Each Option Scheme Participant 
 Background 

 

	A	The Company is a public company registered in Queensland and is a company limited by shares. 

  

	B	As at the date of the Information Memorandum, 17,118,960 Options were on issue. 

  

	C	Peplin is a company incorporated under the laws of Delaware, United States. 

  

	D	The Company and Peplin have entered into the Implementation Agreement which sets out the terms on which the parties have agreed to implement this Option Scheme. 

  

	E	Peplin has entered into the Deed Poll for the purpose of covenanting in favour of Option Scheme Participants to perform their obligations under this Option Scheme and the Implementation
Agreement. 

 Agreed terms 
  

	1	Interpretation 

  

	1.1	Definitions 

 In this document: 
 CHESS means the clearing house electronic sub-register system of share transfers operated by ASX Settlement and Transfer Corporation Pty Limited.

 Effective Date means the date on which this Share Scheme becomes Effective. 
 Implementation Agreement means the Restructure Implementation Agreement dated 8 August 2007 between the Company and Peplin relating to the
implementation of the Schemes and related transactions. 

 Marketable Parcel has the meaning given to that term in the ASX Market Rules. 
 Peplin means Peplin, Inc, a company incorporated in Delaware, United States. 
 Restated Certificate of Incorporation and By-Laws means the constituent documents of Peplin. 
 Tax File Number
means the tax file number issued to a person by the Australian Taxation Office or, in the case of non-Australian residents, a number or identification issued for taxation purposes by the equivalent governmental agency of that resident’s
country. 
  

	1.2	Further definitions and construction 

 Unless the context requires
otherwise, clauses 1.1 and 1.2 of the Implementation Agreement apply as if set out in full. 
  

	2	Conditions 

  

	2.1	Conditions precedent 

 This Option Scheme is conditional on each of the
following conditions precedent: 
  

	 	(a)	all of the conditions set out in clause 3.1 of the Implementation Agreement have been satisfied or waived in accordance with the terms of the Implementation Agreement before 8.00 am on the
Second Court Date; 

  

	 	(b)	as at the Second Court Date, neither the Implementation Agreement nor the Deed Poll have been terminated; 

  

	 	(c)	the Schemes have been approved in accordance with section 411 of the Corporations Act at the Scheme Meetings; and 

  

	 	(d)	the Schemes have been approved by the Court pursuant to section 411(4)(b) of the Corporations Act by the End Date. 

  

	2.2	Satisfaction of Conditions 

 The Company and Option Scheme Participants
will not have any rights or obligations under clause 4 of this document unless and until the conditions precedent in clause 2.1 are satisfied. 
  

	3	Lodgement 

 On or before the fourth Business Day following approval of the
Option Scheme by the Court in accordance with Section 411(4)(b) of the Corporations Act, the Company will lodge with ASIC an office copy of the Court order under Section 411(10) of the Corporations Act approving the Option Scheme. The
Court order is taken to have effect on and from the time and date specified in that order. 
  

 Page 2 

	4	Implementation 

  

	4.1	Option Scheme steps 

 Subject to the conditions precedent in clause
2.1 being satisfied, on the Implementation Date, the Company will: 
  

	 	(a)	procure Peplin to: 

  

	 	(i)	in respect of the Options held by Eligible Option Scheme Participants on the Record Date, issue to those Eligible Option Scheme Participants, one Option CDI for every one Option held by them
as at the Record Date; and 

  

	 	(ii)	in respect of Options held by Ineligible Foreign Optionholders on the Record Date, issue to the Nominee for sale on behalf of the Ineligible Optionholders under clause 4.2 one
Option CDI for every one Option held by them as at the Record Date; 

  

	 	(b)	without limiting paragraph (a) above, record in the Options Register the cancellation of all Options outstanding as at the Record Date; and 

  

	 	(c)	enforce the provisions of the Implementation Agreement for the benefit of Option Scheme Participants, including the obligations of Peplin to issue Peplin Stock Options to the Depositary and
procure the issue of CHESS Depositary Interests representing an interest in a Peplin Stock Option. 

  

	4.2	Ineligible Foreign Optionholders 

 If clause 4. 1(a)(ii)
applies, Peplin will procure that the Nominee: 
  

	 	(a)	as soon as reasonably practicable sells, in a manner reasonably determined by the Nominee, for the benefit of the Ineligible Foreign Optionholders all the Option CDIs issued to the Nominee
under clause 4. 1(a)(ii) ; 

  

	 	(b)	accounts to each Ineligible Foreign Optionholder for the net proceeds of sale of the Option CDIs issued to the Nominee in respect of that Ineligible Foreign Optionholder’s entitlement
under clause 4. 1(a)(ii) above (but calculated on an averaged basis so that all Ineligible Foreign Optionholders receive the same price per Option CDI (as the case may be), subject to rounding to the nearest whole cent) after deduction
of any applicable brokerage, taxes and charges, at the Ineligible Foreign Optionholder’s risk in full satisfaction of the Ineligible Foreign Optionholder’s rights under the Option Scheme; and 

  

	 	(c)	remits to the Ineligible Foreign Optionholder the net proceeds of sale in respect of the Ineligible Foreign Optionholder’s entitlement under this clause 4.2, such proceeds to
be dispatched by mail to the Ineligible Foreign Optionholder’s address as shown in the Option Register by cheque in Australian currency. 

  

	4.3	Joint holders 

 In the case of Options held by Option Scheme
Participants on the Record Date in joint names: 
  

 Page 3 

	 	(a)	any cheque required to be paid in respect of the relevant options will be payable to the joint holders and will be forwarded to the holder whose name appears first in the Option Register on
the Record Date; and 

  

	 	(b)	any holding statements or transmittal letters for CHESS Depositary Interests, which are to be issued in respect of the relevant Peplin Stock Options will be issued in the names of the joint
holders and forwarded to the holder whose name appears first in the Option Register on the Record Date. 

  

	4.4	Interdependence with Share Scheme 

 The steps referred to in clause
4.1 will be interdependent with the implementation steps required under clause 4.1 of the Share Scheme, such that implementation under this Option Scheme will not be taken to have occurred until the implementation steps required under clause 4.1
of the Share Scheme have also occurred. 
  

	5	Dealings in Options 

  

	 	(a)	For the purpose of establishing who are Option Scheme Participants, dealings in Options will only be recognised if: 

  

	 	(i)	in the case of dealings of the type to be affected using CHESS, the transferee is registered in the Option Register as the holder of the relevant the Options by 10.00 pm on the Record Date;
and 

  

	 	(ii)	in all other cases, if registrable transmission applications, option exercise forms or transfers in respect of those dealings are received on or before 10.00 pm on the Record Date at the
place where the Option Register is kept. 

  

	 	(b)	The Company must register registrable transmission applications, option exercise forms or transfers of the type referred to in paragraph (a)(ii), which are received on or before
10 pm on the Record Date at the place where the Option Register is kept. 

  

	 	(c)	The Company will not accept or recognise for any purpose any exercise of an Option received after 10.00 pm on the Record Date. 

  

	 	(d)	For the purpose of determining entitlements to the consideration to be provided under this Option Scheme, the Company must, until that consideration has been provided, maintain the Option
Register in accordance with the foregoing provisions of this clause 5 and the Option Register in this form will solely determine entitlements to that consideration. 

  

	 	(e)	The Company must procure that on the Record Date, details of the names, registered addresses and holdings of Options of every Option Scheme Participant as shown in the Option Register at the
Record Date are available to Peplin in such form as Peplin may reasonably require. 

  

 Page 4 

	 	(f)	Subject to implementation occurring under this Option Scheme, as from 10.00 pm on the Record Date, all option certificates and holding statements for the Options held at 10.00 pm on the
Record Date will cease to have effect as documents of title, and each entry currently on the Option Register at that time will cease to have any effect other than as evidence of entitlement to the consideration to be provided under this Option
Scheme. 

  

	6	General provisions 

  

	6.1	Alterations and conditions 

 If the Court propose to approve the Option
Scheme subject to any alterations or conditions, the Company may by its legal counsel consent on behalf of all persons concerned to those alterations or conditions to which Peplin has consented. 
  

	6.2	Registration of Option CDIs 

  

	 	(a)	The obligations of the Company to procure Peplin to issue Option CDIs under clause 4 of this Option Scheme will be satisfied by Peplin on the Implementation Date, procuring the entry
in the register maintained by Peplin of holders of Peplin Stock Options of the Depositary as depositary to hold the Peplin Stock Options underlying those Option CDIs. 

  

	 	(b)	After the satisfaction of the obligations of the Company in paragraph (a) above, within 5 Business Day after the Implementation Date, the Company will procure Peplin to:

  

	 	(i)	record in the CDI Register each person who is to receive Option CDls under clause 4 ; and 

  

	 	(ii)	dispatch to each person who is to receive Option CDIs under clause 4 a holding statement in the name of that person representing the number of Option CDIs to be issued to that
person. 

  

	6.3	Communications 

 Where a notice, transfer, transmission application,
direction or other communication referred to in the Option Scheme is sent by post to the Company, it will not be deemed to be received in the ordinary course of post or on a date other than the date (if any) on which it is actually received at the
Company’s registered office or at its Option Registry. 
  

	6.4	Covenants by Option Scheme Participants 

  

	 	(a)	Each Option Scheme Participant consents to the Company doing all things necessary or incidental to the implementation of the Option Scheme. 

  

	 	(b)	 Each Option Scheme Participant, without the need for any further act, irrevocably appoints the Company and all of its directors and officers 

  

 Page 5 

	 	 
(jointly and severally) as its attorney and agent for the purpose of executing any document necessary to give effect to the Option Scheme.

  

	6.5	Further assurances 

 The Company will execute all documents and do all
acts and things necessary for the implementation and performance of its obligations under the Option Scheme. 
  

	6.6	Governing law 

 The proper law of the Option Scheme is the law of the
State of New South Wales. 
  

 Page 6 

 Annexure 3 
 Form of Share Scheme Deed Poll

  

 page 26 

 Execution copy  
 8 August 2007

 Peplin, Inc. 
 Share Scheme 
 Deed Poll 
 Execution Copy 

 Date 
 Parties 
 Peplin, Inc. a company incorporated in Delaware, United States of America of c/-6475 Christie Avenue, Emeryville CA 94608
United States of America (Peplin) 
 Each Share Scheme Participant 
 Background 
  

	A	The directors of the Company have resolved that the Company propose the Share Scheme. 

  

	B	The effect of the Share Scheme will be that in exchange for their Shares in the Company, the Shareholders will be issued with replacement shares of Peplin Common Stock.

  

	C	On 8 August 2007 the Company and Peplin entered into a Restructure Implementation Agreement (Implementation Agreement), in which Peplin agreed to do the things within its power to
implement the Schemes, including entering into this document and enabling the Peplin Common Stock to be issued. 

  

	D	Peplin is entering into this document for the purpose of covenanting in favour of the Shareholders to perform certain of its obligations under the Implementation Agreement.

 Agreed Terms 
  

	1	Interpretations 

  

	1.1	Definitions and construction 

 In this document, unless the context
requires otherwise, clauses 1.1 and 1.2 of the Implementation Agreement apply as if set out in full. 
  

	1.2	Nature of deed poll 

 Peplin acknowledges that this document is a deed
poll and may be relied on and enforced by any Share Scheme Participant in accordance with its terms, notwithstanding that the Share Scheme Participants are not party to this document. 
  

 Page 1 

	2	Conditions precedent and termination 

  

	2.1	Conditions 

 Each of Peplin’s obligations under clause
3 are subject to the Share Scheme becoming Effective and the satisfaction or waiver of the conditions precedent contained in clause 3.1 of the Share Scheme. 
  

	2.2	Termination 

 If the Share Scheme does not become Effective, or
the conditions precedent contained in clause 3.1 of the Share Scheme are not satisfied or waived before the End Date, the obligations of Peplin under this document will terminate when the Implementation Agreement terminates. 
  

	2.3	Consequences of termination 

 If this document is terminated
under clause 2.2 then in addition and without prejudice to any other rights, powers or remedies available to it: 
  

	 	(a)	Peplin is released from its obligations to further perform its obligations under this document, except those obligations contained in clause 5 and any other obligations which by their
nature survive termination; and 

  

	 	(b)	the Share Scheme Participants retain the rights they have against Peplin in respect of any breach of this document which occurred before this document is terminated. 

 

	3	Provision of consideration 

 Subject to clause 2, on the Implementation
Date, Peplin will cause to be provided or remitted to each Share Scheme Participant the consideration due to such Share Scheme Participant under the Share Scheme in accordance with clause 4.2(a) of the Implementation Agreement. 
  

	4	Representations and warranties 

 Peplin represents and warrants that:

  

	 	(a)	it is a corporation validly existing under the laws of its place of incorporation; 

  

	 	(b)	it has the corporate power to enter into and perform its obligations under this document and to carry out the transactions contemplated by this document; 

  

	 	(c)	it has taken all necessary corporate action to authorise the entry into this document and has taken or will take all necessary corporate action to authorise the performance of this document
and to carry out the transactions contemplated by this document; and 

  

	 	(d)	this document is valid and binding upon it. 

  

 Page 2 

	5	Continuing obligations 

 This document is irrevocable and subject to clause
2, remains in full force and effect until Peplin has completely performed its obligations under this document or the earlier termination of this document under clause 2. 
  

	6	Stamp duty 

 Peplin must pay all stamp duty (if any) imposed on this document
and on any instrument or other document executed to give effect to this document. 
  

	7	General 

  

	7.1	Waiver and variation 

  

	 	(a)	A provision or right under this document may not be waived except in writing signed by the person granting the waiver. 

  

	 	(b)	A provision of this document may not be varied unless the variation is agreed to by the Company and the Court indicates that the variation would not in itself preclude approval of the Scheme
in which event Peplin will enter into a further deed poll in favour of the Share Scheme Participants giving effect to such variation. 

  

	7.2	Rights cumulative 

 Except as expressly stated otherwise in this
document, the rights of Peplin and the Share Scheme Participants under this document are cumulative and are in addition to any other rights of that party. 
  

	7.3	Governing law and jurisdiction 

  

	 	(a)	This document is governed by the laws of New South Wales. 

  

	 	(b)	Peplin irrevocably submit to the non-exclusive jurisdiction of the courts of New South Wales and any courts which have jurisdiction to hear appeals from any of those courts and waives any
right to object to any proceedings being brought in those courts. 

  

	7.4	Assignment 

 The rights and obligations of a person under this
document are personal. They cannot be assigned, charged or otherwise dealt with, and no person must attempt or purport to do so. 
  

 Page 3 

 Executed as a deed poll. 
  

							
	Executed on behalf of Peplin, Inc. by	 	)	 		 	
	 an authorised officer or attorney in
 the presence of:
	 		 		 	
				
	  
	 		 		 	  

	Witness	 		 		 	Officer/Attorney
				
	  
	 		 		 	  

	Name of Witness (print)	 		 		 	Name of Officer/Attorney (print)

  

 Page 4 

 Annexure 4 
 Form of Option Scheme Deed Poll

  

 page 27 

 Execution copy  
 8 August 2007

 Peplin, Inc. 
 Option Scheme 
 Deed Poll 

 Date 
 Parties 
 Peplin, Inc a company incorporated in Delaware, United States of America of 6475 Christie Avenue, Emeryville, CA 94608,
United States of America (Peplin) 
 Each Option Scheme Participant 
 Background 
  

	A	The directors of the Company have resolved that the Company propose the Option Scheme. 

  

	B	The effect of the Option Scheme will be that all Options will be cancelled, such that the Company ceases to have any Options on issue, and Option Scheme Participants will be granted Peplin
Stock Options by Peplin, in return for the cancellation of their Options. 

  

	C	On 8 August 2007 the Company and Peplin entered into a Restructure Implementation Agreement (Implementation Agreement), in which Peplin agreed to do the things within its power to
implement the Schemes including entering into this document and enabling the Peplin Stock Options to be issued. 

  

	D	Peplin is entering into this document for the purpose of covenanting in favour of the Optionholders to perform certain of its obligations under the Implementation Agreement.

 Agreed terms 
  

	1	Interpretations 

  

	1.1	Definitions and construction 

 In this document, unless the
context requires otherwise, clauses 1.1 and 1.2 of the Implementation Agreement apply as if set out in full. 
  

	1.2	Nature of deed poll 

 Peplin acknowledges that this document is
a deed poll and may be relied on and enforced by any Option Scheme Participant in accordance with its terms, notwithstanding that the Option Scheme Participants are not party to this document. 

	2	Conditions precedent and termination 

  

	2.1	Conditions 

 Each of Peplin’s obligations under clause
3 are subject to the Option Scheme becoming Effective and the satisfaction or waiver of the conditions precedent contained in clause 3.1 of the Option Scheme. 
  

	2.2	Termination 

 If the Option Scheme does not become Effective, or
the conditions precedent contained in clause 3.1 of the Option Scheme are not satisfied or waived before the End Date, the obligations of Peplin under this document will terminate when the Implementation Agreement terminates. 
  

	2.3	Consequences of termination 

 If this document is terminated
under clause 2.2 then in addition and without prejudice to any other rights, powers or remedies available to it: 
  

	 	(a)	Peplin is released from its obligations to further perform its obligations under this document, except those obligations contained in clause 5 and any other obligations which by their
nature survive termination; and 

  

	 	(b)	the Option Scheme Participants retain the rights they have against Peplin in respect of any breach of this document which occurred before this document is terminated.

  

	3	Provision of consideration 

 Subject to clause 2, on the Implementation
Date, Peplin, in consideration for the cancellation referred to in clause 4.3(b) of the Implementation Agreement, will cause to be provided or remitted to each Option Scheme Participant the consideration due to such Option Scheme Participant under
the Option Scheme in accordance with clause 4.3(a) of the Implementation Agreement. 
  

	4	Representations and warranties 

 Peplin represents and warrants that:

  

	 	(a)	it is a corporation validly existing under the laws of its place of incorporation; 

  

	 	(b)	it has the corporate power to enter into and perform its obligations under this document and to carry out the transactions contemplated by this document; 

  

	 	(c)	it has taken all necessary corporate action to authorise the entry into this document and has taken or will take all necessary corporate action to authorise the performance of this document
and to carry out the transactions contemplated by this document; and 

  

	 	(d)	this document is valid and binding upon it. 

  

 page 2 

	5	Continuing obligations 

 This document is irrevocable and subject to clause
2, remains in full force and effect until Peplin has completely performed its obligations under this document or the earlier termination of this document under clause 2. 
  

	6	Stamp duty 

 Peplin must pay all stamp duty (if any) imposed on this document
and on any instrument or other document executed to give effect to this document. 
  

	7	General 

  

	7.1	Waiver and variation 

  

	 	(a)	A provision or right under this document may not be waived except in writing signed by the person granting the waiver. 

  

	 	(b)	A provision of this document may not be varied unless the variation is agreed to by the Company and the Court indicates that the variation would not in itself preclude approval of the Scheme
in which event Peplin will enter into a further deed poll in favour of the Option Scheme Participants giving effect to such variation. 

  

	7.2	Rights cumulative 

 Except as expressly stated otherwise in this
document, the rights of Peplin and the Option Scheme Participants under this document are cumulative and are in addition to any other rights of that party. 
  

	7.3	Governing law and jurisdiction 

  

	 	(a)	This document is governed by the laws of New South Wales. 

  

	 	(b)	Peplin irrevocably submit to the non-exclusive jurisdiction of the courts of New South Wales and any courts which have jurisdiction to hear appeals from any of those courts and waives any
right to object to any proceedings being brought in those courts. 

  

	7.4	Assignment 

 The rights and obligations of a person under this
document are personal. They cannot be assigned, charged or otherwise dealt with, and no person must attempt or purport to do so. 
  

 page 3 

 Executed as a deed poll. 
 Executed on behalf of Peplin, Inc. by                     ) 
 an authorised officer or attorney in the presence of: 
  

					
	  
	 		  	  

	 Witness
	 		  	Officer/Attorney
	  
	 		  	  

	 Name of Witness (print)
	 		  	Name of Officer/Attorney (print)

  

 page 4 

 Annexure 5 
 Peplin Stock Option Plan

  

 page 282007 Incentive Award Plan

 Exhibit 10.2 
 PEPLIN, INC. 2007 INCENTIVE AWARD PLAN 
 Peplin, Inc., a Delaware corporation (the
“Company”), by resolution of its Board of Directors, hereby adopts the Peplin, Inc. 2007 Incentive Award Plan (the “Plan”). 
 The purpose of the Plan is to promote the success and enhance the value of the Company by linking the personal interests of the members of the Board, Employees, and Consultants to those of the Company’s
stockholders and by providing such individuals with an incentive for outstanding performance to generate superior returns to the Company’s stockholders. The Plan is further intended to provide flexibility to the Company in its ability to
motivate, attract, and retain the services of members of the Board, Employees, and Consultants upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent. 
 ARTICLE I. 
 DEFINITIONS

 Wherever the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates
otherwise. The singular pronoun shall include the plural where the context so indicates. 
 1.1. “Administrator” shall mean
the entity that conducts the general administration of the Plan as provided in Article X. With reference to the administration of the Plan with respect to Awards granted to Non-Employee Directors, the term “Administrator” shall refer
to the Board. With reference to the administration of the Plan with respect to any other Award, the term “Administrator” shall refer to the Committee unless the Board has assumed the authority for administration of the Plan generally as
provided in Section 10.2. With reference to the duties of the Committee under the Plan which have been delegated to one or more persons pursuant to Section 10.5, the term “Administrator” shall refer to such person(s) unless the
Committee or the Board has revoked such delegation. 
 1.2. “ASX Listing Rules” shall mean the listing rules of the
Australian Securities Exchange, as amended from time to time. 
 1.3. “Award” shall mean an Option, a Restricted Stock
Award, a Restricted Stock Unit Award, a Performance Award, a Dividend Equivalents Award, a Deferred Stock Award, a Stock Payment Award or a Stock Appreciation Right, which may be awarded or granted under the Plan (collectively,
“Awards”). 
 1.4. “Award Agreement” shall mean a written agreement executed by an authorized officer of
the Company and the Holder which shall contain such terms and conditions with respect to an Award as the Administrator shall determine; provided, that such terms and conditions shall not be inconsistent with the terms and conditions of the
Plan. 
 1.5. “Award Limit” shall mean three hundred thousand (300,000) shares of Common Stock, as adjusted pursuant to
Section 11.3. Solely with respect to cash-based Performance Awards granted pursuant to Section 8.2(b), “Award Limit” shall mean $500,000. 

 1.6. “Board” shall mean the Board of Directors of the Company. 
 1.7. “Change in Control” shall mean the occurrence of any of the following transactions or events occurring on or after the Effective
Date: 
 (a) the acquisition, directly or indirectly, by any “person” or “group” (as those terms are defined in
Sections 3(a)(9), 13(d), and 14(d) of the Exchange Act and the rules thereunder) of “beneficial ownership” (as determined pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally in the election of
directors (“voting securities”) of the Company that represent 50% or more of the combined voting power of the Company’s then outstanding voting securities, other than 
 (i) an acquisition by a trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or
maintained by the Company or any person controlled by the Company or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company, or 
 (ii) an acquisition of voting securities by the Company or a corporation owned, directly or indirectly, by the stockholders of the
Company in substantially the same proportions as their ownership of the stock of the Company, or 
 (iii) an acquisition of
voting securities pursuant to a transaction described in clause (c) below that would not be a Change in Control under clause (c); 
 Notwithstanding the foregoing, an acquisition of the Company’s securities by the Company which, either alone or in combination only with the other event, causes the Company’s voting securities beneficially owned by a person or
group to represent 50% or more of the combined voting power of the Company’s then outstanding voting securities shall not constitute an “acquisition” by any person or group for purposes of this clause (a); provided, however, that if a
person or group shall become the beneficial owner of 50% or more of the combined voting power of the Company’s then outstanding voting securities by reason of share acquisitions by the Company as described above and shall, after such share
acquisitions by the Company, become the beneficial owner of any additional voting securities of the Company, then such acquisition shall constitute a Change in Control; 
 (b) individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board; 
  

 2 

 (c) the consummation by the Company (whether directly involving the Company or indirectly involving
the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Company’s assets or (z) the acquisition
of assets or stock of another entity, in each case, other than a transaction 
 (i) which results in the Company’s
voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls,
directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”))
directly or indirectly, at least 50% of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction, and 
 (ii) after which more than 50% of the members of the board of directors of the Successor Entity were members of the Incumbent Board at
the time of the Board’s approval of the agreement providing for the transaction or other action of the Board approving the transaction, and 
 (iii) after which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be
treated for purposes of this clause (C) as beneficially owning 50% or more of combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or 

(d) stockholder approval of a liquidation or dissolution of the Company. 
 For purposes of clause (a) above, the calculation of voting power shall be made as if the date of the acquisition were a record date for a vote of
the Company’s stockholders, and for purposes of clause (c) above, the calculation of voting power shall be made as if the date of the consummation of the transaction were a record date for a vote of the Company’s stockholders.

 1.8. “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 
 1.9. “Committee” shall mean the Compensation Committee of the Board, or another committee or subcommittee of the Board, appointed as
provided in Article X. 
 1.10. “Common Stock” shall mean the common stock of the Company, par value $0.001 per share.

 1.11. “Company” shall mean Peplin, Inc., a Delaware corporation. 
  

 3 

 1.12. “Consultant” shall mean any consultant or adviser if: (a) the consultant or
adviser is a natural person, (b) the consultant or adviser renders bona fide services to the Company or any Subsidiary; and (c) the services rendered by the consultant or adviser are not in connection with the offer or sale of securities
in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities. 
 1.13.
“Covered Employee” shall mean any Employee who is, or could be, a “covered employee” within the meaning of Section 162(m) of the Code. 
 1.14. “Deferred Stock” shall mean a right to receive Common Stock awarded under Section 8.5 of the Plan. 
 1.15. “Director” shall mean a member of the Board. 
 1.16. “Dividend
Equivalent” shall mean a right to receive the equivalent value (in cash or Common Stock) of dividends paid on Common Stock, awarded under Section 8.3 of the Plan. 
 1.17. “DRO” shall mean a domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act of
1974, as amended from time to time, or the rules thereunder. 
 1.18. “Effective Date” shall mean the date the Plan is
adopted by the Board. 
 1.19. “Employee” shall mean any officer or other employee (as defined in accordance with
Section 3401(c) of the Code) of the Company, or of any Subsidiary. 
 1.20. “Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended from time to time. 
 1.21. “Fair Market Value” means, as of any date, the value of a share
of Common Stock determined as follows: 
 (a) If the Common Stock is listed on any established stock exchange (such as the New York
Stock Exchange, the NASDAQ Global Market and the NASDAQ Global Select Market) or any national market system, including without limitation any market system of The NASDAQ Stock Market, the value of a share of Common Stock shall be the closing sales
price for a share of Common Stock as quoted on such exchange or system for such date, or if there is no closing sales price for a share of Common Stock on the date in question, the closing sales price for a share of Common Stock on the last
preceding date for which such quotation exists, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 (b) If the Common Stock is regularly quoted by a recognized securities dealer but closing sales prices are not reported, the value of a share of Common Stock shall be the mean of the high bid and low asked prices for
such date or, if there are no high bid and low asked prices for a share of Common Stock on the date in question, the high bid and low asked prices for a share of Common Stock on the last preceding date for which such information exists, 

  

 4 

 
as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 
 (c) If the Common Stock is neither listed on an established stock exchange or a national market system nor regularly quoted by a recognized
securities dealer, the value of a share of Common Stock shall be established by the Administrator in good faith. 
 1.22. “Fiscal
Year” means the fiscal year of the Company. 
 1.23. “Holder” shall mean a person who has been granted an Award.

 1.24. “Incentive Stock Option” shall mean an option which conforms to the applicable provisions of Section 422 of
the Code and which is designated as an Incentive Stock Option by the Administrator. 
 1.25. “Non-Employee Director” shall
mean a Director who is not an Employee. 
 1.26. “Non-Qualified Stock Option” shall mean an Option which is not designated
as an Incentive Stock Option by the Administrator. 
 1.27. “Option” shall mean a stock option granted under Article IV
of the Plan. An Option granted under the Plan shall be either a Non-Qualified Stock Option or an Incentive Stock Option, as determined by the Administrator; provided, however, that Options granted to Non-Employee Directors and Consultants
shall be Non-Qualified Stock Options. 
 1.28. “Peplin Limited” shall mean Peplin Limited ACN 090 819 275. 
 1.29. “Peplin Restructuring” shall mean the reorganization of Peplin Limited and its subsidiaries pursuant to a restructure
implementation agreement. 
 1.30. “Performance Award” shall mean a cash bonus, stock bonus or other performance or
incentive award that is paid in cash, Common Stock or a combination of both, awarded under Section 8.2 of the Plan. 
 1.31.
“Performance Criteria” means the criteria (and adjustments) that the Committee selects for an Award for purposes of establishing the Performance Goal or Performance Goals for a Performance Period, determined as follows: 

(a) The Performance Criteria that shall be used to establish Performance Goals are limited to the following: (i) net earnings (either before
or after (A) interest, (B) taxes, (C) depreciation and (D) amortization), (ii) gross or net sales or revenue, (iii) net income (either before or after taxes), (iv) operating profit, (v) cash flow (including,
but not limited to, operating cash flow and free cash flow), (vi) return on assets, (vii) return on capital, (viii) return on stockholders’ equity, (ix) return on sales, (x) gross or net profit or operating margin,
(xi) costs, (xii) funds from operations, (xiii) expenses, (xiv) working capital, (xv) earnings per share, and (xvi) price per share of Common Stock, and (xvii) market share, any of which may be measured either in
absolute terms or as compared to any incremental increase or decrease or as compared to results of a peer group. 
  

 5 

 (b) The Committee may, in its discretion, at the time of grant, specify in the Award that one or
more objectively determinable adjustments shall be made to one or more of the Performance Goals. Such adjustments may include one or more of the following: (i) items related to a change in accounting principle; (ii) items relating to
financing activities; (iii) expenses for restructuring or productivity initiatives; (iv) other non-operating items; (v) items related to acquisitions, including product acquisitions; (vi) items attributable to the business
operations of any entity acquired by the Company during the Performance Period; (vii) items related to the disposal of a business or segment of a business; or (viii) items related to discontinued operations that do not qualify as a segment
of a business under United States generally accepted accounting principles (“GAAP”). 
 1.32. “Performance
Goals” means, for a Performance Period, one or more goals established in writing by the Committee for the Performance Period based upon one or more Performance Criteria. Depending on the Performance Criteria used to establish such
Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a division, business unit, or individual. The achievement of each Performance Goal shall be determined in accordance with GAAP to
the extent applicable. 
 1.33. “Performance Period” means one or more periods of time, which may be of varying and
overlapping durations, as the Committee may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Holder’s right to, and the payment of, a Performance Award. 
 1.34. “Plan” shall mean this Peplin, Inc. 2007 Incentive Award Plan, as amended from time to time. 
 1.35. “Prior Award” shall mean an option to acquire ordinary shares in the capital of Peplin Limited that is granted by Peplin Limited
on or before the consummation of the initial Peplin Restructuring. 
 1.36. “Restricted Stock” shall mean Common Stock
awarded under Article VII of the Plan that is subject to repurchase or forfeiture. 
 1.37. “Restricted Stock Units”
shall mean rights to receive Common Stock awarded under Section 8.6. 
 1.38. “Rule 16b-3” shall mean
Rule 16b-3 promulgated under the Exchange Act, as such Rule may be amended from time to time. 
 1.39. “Securities Act”
shall mean the Securities Act of 1933, as amended from time to time. 
 1.40. “Stock Appreciation Right” shall mean a stock
appreciation right granted under Article IX of the Plan. 
 1.41. “Stock Payment” shall mean: (a) a payment in the
form of shares of Common Stock, or (b) an option or other right to purchase shares of Common Stock, as part of a deferred compensation arrangement or otherwise, made in lieu of all or any portion of the 

  

 6 

 
compensation, including without limitation, salary, bonuses, commissions and directors’ fees, that would otherwise be payable to an Employee, Consultant
or Non-Employee Director in cash, awarded under Section 8.4 of the Plan. 
 1.42. “Subsidiary” means any entity (other
than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or
interests representing more than fifty percent (50%) of the total combined voting power of all classes of securities or interests in one of the other entities in such chain. 
 1.43. “Subsidiary Corporation” shall mean any corporation in an unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain then owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
 1.44. “Substitute Award” shall mean an Option granted under this Plan upon the assumption of, or in substitution for or replacement of,
outstanding equity awards previously granted by a company or other entity (including, without limitation, Peplin Limited) in connection with a corporate transaction, such as a merger, combination, consolidation, reorganization or acquisition of
property or stock; provided, however, that in no event shall the term “Substitute Award” be construed to refer to an award made in connection with the cancellation and repricing of an Option. 
 1.45. “Termination of Consultancy” shall mean the time when the engagement of a Holder as a Consultant to the Company or a Subsidiary is
terminated for any reason, with or without cause, including, without limitation, by resignation, discharge, death or retirement, but excluding terminations where there is a simultaneous commencement of employment or service with the Company or any
Subsidiary. The Administrator, in its discretion, shall determine the effect of all matters and questions relating to Termination of Consultancy, including, without limitation, the question of whether a Termination of Consultancy resulted from a
discharge for cause. Notwithstanding any other provision of the Plan, the Company or any Subsidiary has an absolute and unrestricted right to terminate a Consultant’s service at any time for any reason whatsoever, with or without cause, except
to the extent expressly provided otherwise in writing. For purposes of the Plan, the engagement of a Holder as a Consultant to a Subsidiary shall be deemed to be terminated in the event that the Subsidiary engaging such Holder ceases to remain a
Subsidiary following any merger, sale of stock or other corporate transaction or event (including, without limitation, a spin-off). 
 1.46.
“Termination of Directorship” shall mean the time when a Holder who is a Non-Employee Director ceases to be a Director for any reason, including, without limitation, a termination by resignation, failure to be elected, death or
retirement. The Board, in its discretion, shall determine the effect of all matters and questions relating to Termination of Directorship with respect to Non-Employee Directors. 
 1.47. “Termination of Employment” shall mean the time when the employee-employer relationship between a Holder and the Company or any
Subsidiary is terminated for 

  

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any reason, with or without cause, including, without limitation, a termination by resignation, discharge, death, disability or retirement, but excluding:
(a) terminations where there is a simultaneous reemployment or continuing employment of a Holder by the Company or any Subsidiary, and (b) terminations which are followed by the simultaneous establishment of a consulting relationship by
the Company or a Subsidiary with the former employee. The Administrator, in its discretion, shall determine the effect of all matters and questions relating to Termination of Employment, including, without limitation, the question of whether a
Termination of Employment resulted from a discharge for cause; provided, however, that, with respect to Incentive Stock Options, unless the Administrator otherwise provides in the terms of the Award Agreement or otherwise, a leave of absence,
change in status from an employee to an independent contractor or other change in the employee-employer relationship shall constitute a Termination of Employment if, and to the extent that, such leave of absence, change in status or other change
interrupts employment for the purposes of Section 422(a)(2) of the Code and the then applicable regulations and revenue rulings under said Section. For purposes of the Plan, a Holder’s employee-employer relationship shall be deemed to be
terminated in the event that the Subsidiary employing such Holder ceases to remain a Subsidiary following any merger, sale of stock or other corporate transaction or event (including, without limitation, a spin-off). 
 ARTICLE II. 
 SHARES SUBJECT TO PLAN

 2.1. Shares Subject to Plan. 
 (a) Subject to Section 11.3 and Section 2.1(b), the aggregate number of shares of Common Stock that may be issued or transferred pursuant to Awards under the Plan initially shall be equal to 1,000,000
shares (the “Initial Authorized Shares”). In addition, in the event of any cancellation, termination, expiration or forfeiture of any Prior Award during the term of the Plan (including, without limitation, any cancellation of any
Prior Award in connection with the Peplin Restructuring), the number of shares of Common Stock that may be issued or transferred pursuant to Awards under the Plan shall be automatically increased by one share for every twenty shares subject to such
Prior Award that is so cancelled, terminated, expired, forfeited or repurchased (collectively, the “Cancelled Prior Award Shares”). In no event, however, shall the aggregate number of Initial Authorized Shares and Cancelled Prior
Award Shares made available for issuance under the Plan exceed 1,500,000. 
 (b) To the extent that an Award terminates, expires, lapses or
is forfeited for any reason, any shares of Common Stock then subject to such Award shall again be available for the grant of an Award pursuant to the Plan. To the extent permitted by applicable law or any exchange rule, shares of Common Stock issued
in assumption of, or in substitution for, any outstanding awards of any entity acquired in any form of combination by the Company or any Subsidiary shall not be counted against shares of Common Stock available for grant pursuant to this Plan. If any
shares of Restricted Stock are surrendered by the Holder or repurchased by the Company pursuant to Section 7.4 or 7.5 hereof, such shares may again be granted or awarded hereunder, subject to the limitations of Section 2.1(a). To the
extent exercised, the full number of shares subject to an Option or Stock Appreciation Right shall be counted for purposes of calculating the aggregate number of shares of Common Stock available 

  

 8 

 
for issuance under the Plan as set forth in Section 2.1(a) and for purposes of calculating the share limitation set forth in Section 2.3,
regardless of the actual number of shares issued or transferred upon any net exercise of an Option (in which Common Stock is withheld to satisfy the exercise price or taxes) or upon exercise of any Stock Appreciation Right for Common Stock or cash.
The payment of Dividend Equivalents in cash in conjunction with any outstanding Awards shall not be counted against the shares available for issuance under the Plan. Notwithstanding the provisions of this Section 2.1(b), no shares of Common
Stock may again be optioned, granted or awarded if such action would cause an Incentive Stock Option to fail to qualify as an incentive stock option under Section 422 of the Code. 
 2.2. Stock Distributed. Any Common Stock distributed pursuant to an Award shall consist, in whole or in part, of authorized and unissued Common
Stock, shares of Common Stock held in treasury or shares of Common Stock purchased on the open market. 
 2.3. Limitation on Number of
Shares Subject to Awards. Notwithstanding any provision in the Plan to the contrary, and subject to Article XI, the maximum number of shares of Common Stock with respect to one or more Awards that may be granted to any one Employee,
Consultant or Non-Employee Director during any Fiscal Year shall not exceed the Award Limit. To the extent required by Section 162(m) of the Code, shares subject to Awards which are canceled shall continue to be counted against the Award Limit.

 ARTICLE III. 
 GRANTING OF AWARDS 
 3.1. Award Agreement. Each Award shall be evidenced by an Award Agreement. Award Agreements
evidencing Awards intended to qualify as performance-based compensation (as described in Section 162(m)(4)(C) of the Code) shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 162(m) of
the Code. Award Agreements evidencing Incentive Stock Options shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 422 of the Code. 
 3.2. Provisions Applicable to Covered Employees. 
 (a) The Committee, in its discretion, may determine whether an Award is to qualify as performance-based compensation (as described in Section 162(m)(4)(C) of the Code). 
 (b) Notwithstanding anything in the Plan to the contrary, the Committee may grant any Award to a Covered Employee, including Restricted Stock the
restrictions with respect to which lapse upon the attainment of specified Performance Goals and any performance or incentive award described in Article VIII that vests or becomes exercisable or payable upon the attainment of one or more
specified Performance Goals. 
 (c) To the extent necessary to comply with the performance-based compensation requirements of
Section 162(m)(4)(C) of the Code, with respect to any Award granted under Articles VII and VIII which may be granted to one or more Covered Employees, no later than ninety (90) days following the commencement of any Fiscal Year in question
or any 

  

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other designated fiscal period or period of service (or such earlier time as may be required under Section 162(m) of the Code), the Committee shall, in
writing, (i) designate one or more Covered Employees, (ii) select the Performance Criteria applicable to the Fiscal Year or other designated fiscal period or period of service (including any applicable adjustments), (iii) establish
the various performance targets, in terms of an objective formula or standard, and amounts of such Awards, as applicable, which may be earned for such Fiscal Year or other designated fiscal period or period of service, and (iv) specify the
relationship between Performance Criteria and the performance targets and the amounts of such Awards, as applicable, to be earned by each Covered Employee for such Fiscal Year or other designated fiscal period or period of service. Following the
completion of each Fiscal Year or other designated fiscal period or period of service, the Committee shall certify in writing whether the applicable performance targets have been achieved for such Fiscal Year or other designated fiscal period or
period of service. In determining the amount earned by a Covered Employee, the Committee shall have the right to reduce (but not increase) the amount payable at a given level of performance to take into account additional factors that the Committee
may deem relevant to the assessment of individual or corporate performance for the Fiscal Year or other designated fiscal period or period of service. 
 (d) Furthermore, notwithstanding any other provision of the Plan, any Award which is granted to a Covered Employee and is intended to qualify as performance-based compensation (as described in
Section 162(m)(4)(C) of the Code) shall be subject to any additional limitations set forth in Section 162(m) of the Code (including any amendment to Section 162(m) of the Code) or any regulations or rulings issued thereunder that are
requirements for qualification as performance-based compensation (as described in Section 162(m)(4)(C) of the Code), and the Plan shall be deemed amended to the extent necessary to conform to such requirements. 
 3.3. Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan, the Plan, and any Award granted or
awarded to any individual who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to
Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to
conform to such applicable exemptive rule. 
 3.4. At-Will Employment. Nothing in the Plan or in any Award Agreement hereunder shall
confer upon any Holder any right to continue in the employ of, or as a Consultant for, the Company or any Subsidiary, or as a Director of the Company, or shall interfere with or restrict in any way the rights of the Company and any Subsidiary, which
rights are hereby expressly reserved, to discharge any Holder at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a written employment agreement between the Holder and the Company and
any Subsidiary. 
  

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 ARTICLE IV. 
 GRANTING OF OPTIONS TO EMPLOYEES, 
 CONSULTANTS AND NON-EMPLOYEE DIRECTORS 
 4.1. Eligibility. Any Employee or Consultant selected by the Administrator pursuant to Section 4.4(a)(i) shall be eligible to be granted an
Option. Each Non-Employee Director of the Company shall be eligible to be granted Options at the times and in the manner set forth in Section 4.5. 
 4.2. 10% Stockholders. No person may be granted an Incentive Stock Option under the Plan if such person, at the time the Incentive Stock Option is granted, owns stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company or any then existing Subsidiary Corporation or parent corporation (as defined in Section 424(e) of the Code) unless such Incentive Stock Option conforms to the applicable provisions
of Section 422 of the Code. 
 4.3. Disqualification for Incentive Stock Options. No Incentive Stock Option shall be granted to
any person who is not an Employee of the Company or a Subsidiary Corporation. 
 4.4. Granting of Options to Employees and
Consultants. 
 (a) The Administrator shall from time to time, in its discretion, and, subject to applicable limitations of the
Plan: 
 (i) Select from among the Employees or Consultants (including Employees or Consultants who have previously received
Awards under the Plan) such of them as in its opinion should be granted Options; 
 (ii) Subject to the Award Limit,
determine the number of shares to be subject to such Options granted to the selected Employees or Consultants; 
 (iii)
Subject to Section 4.2 and Section 4.3, determine whether such Options are to be Incentive Stock Options or Non-Qualified Stock Options and whether such Options are to qualify as performance-based compensation (as described in
Section 162(m)(4)(C) of the Code); and 
 (iv) Subject to the provisions of Article V, determine the terms and
conditions of such Options; provided, however, that such terms and conditions shall not be inconsistent with the terms of the Plan; and provided further, that the terms and conditions of Options intended to qualify as performance-based
compensation (as described in Section 162(m)(4)(C) of the Code) shall include, but not be limited to, such terms and conditions as may be necessary to meet the applicable provisions of Section 162(m) of the Code. 
  

 11 

 (b) Upon the selection of an Employee or Consultant to be granted an Option, the Administrator shall
instruct the Secretary of the Company to issue the Option and may impose such conditions on the grant of the Option as it deems appropriate. 
 (c) Any Incentive Stock Option granted under the Plan may be modified by the Administrator, with the consent of the Holder, to disqualify such Option from treatment as an “incentive stock option” under Section 422 of the
Code. 
 4.5. Granting of Options to Non-Employee Directors. The Board shall from time to time, in its discretion, and subject to
applicable limitations of the Plan: 
 (a) Select from among the Non-Employee Directors (including Non-Employee Directors who have
previously received Awards under the Plan) such of them as in its opinion should be granted Options; 
 (b) Subject to the Award Limit,
determine the number of shares to be subject to such Options granted to the selected Non-Employee Directors; and 
 (c) Subject to the
provisions of Article V, determine the terms and conditions of such Options; provided, however, that such terms and conditions shall not be inconsistent with the terms of the Plan. 
 ARTICLE V. 
 TERMS OF OPTIONS 
 5.1. Option Price. The price per share of Common Stock subject to each Option granted to an Employee, Non-Employee Director or Consultant shall be
set by the Administrator; provided, however, that: 
 (a) In the case of Incentive Stock Options, such price shall not be less
than 100% of the Fair Market Value of a share of Common Stock on the date the Option is granted (or the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code); 
 (b) In the case of Incentive Stock Options granted to an individual then owning (within the meaning of Section 424(d) of the Code) more than
10% of the total combined voting power of all classes of stock of the Company or any Subsidiary Corporation or parent corporation thereof (as defined in Section 424(e) of the Code), such price shall not be less than 110% of the Fair Market
Value of a share of Common Stock on the date the Option is granted (or the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code); and 
 (c) In the case of Non-Qualified Stock Options, such price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the
date the Option is granted. 
  

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 5.2. Option Term. The term of an Option granted to an Employee, Consultant or Non-Employee
Director shall be set by the Administrator in its discretion; provided, however, that the term shall not be more than ten (10) years from the date the Option is granted, or five (5) years from the date the Option is granted if the
Option is an Incentive Stock Option granted to an individual then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or any Subsidiary Corporation or
parent corporation thereof (as defined in Section 424(e) of the Code). Except as limited by the requirements of Section 409A or Section 422 of the Code and regulations and rulings thereunder, the Administrator may extend the term
during which any outstanding Option may be exercised following any Termination of Employment, Termination of Directorship or Termination of Consultancy of the Holder, or amend any other term or condition of such Option relating to such a Termination
of Employment, Termination of Directorship or Termination of Consultancy. 
 5.3. Option Vesting. 
 (a) The period during which the right to exercise, in whole or in part, an Option vests in the Holder shall be set by the Administrator and the
Administrator may determine that an Option may not be exercised in whole or in part for a specified period after it is granted; provided, however, that, unless the Administrator otherwise provides in the terms of the Award Agreement or
otherwise, no Option granted to a person subject to Section 16 of the Exchange Act shall be exercisable until at least six months have elapsed following the date on which the Option was granted. At any time after grant of an Option, the
Administrator may, in its discretion and subject to whatever terms and conditions it selects, accelerate the period during which an Option vests. 
 (b) No portion of an Option granted to an Employee, Consultant or Non-Employee Director which is unexercisable at Termination of Employment, Termination of Directorship or Termination of Consultancy, as applicable, shall thereafter
become exercisable, except as otherwise provided by the Administrator either in the Award Agreement or by action of the Administrator following the grant of the Option. 
 (c) To the extent that the aggregate fair market value of stock with respect to which “incentive stock options” (within the meaning of Section 422 of the Code, but without regard to
Section 422(d) of the Code) are exercisable for the first time by a Holder during any calendar year under the Plan, and all other plans of the Company and any Subsidiary Corporation or parent corporation thereof (as defined in
Section 424(e) of the Code), exceeds $100,000, the Options shall be treated as Non-Qualified Stock Options to the extent required by Section 422 of the Code. The rule set forth in the preceding sentence shall be applied by taking Options
and other “incentive stock options” into account in the order in which they were granted. For purposes of this Section 5.3(c), the fair market value of stock shall be determined as of the time the Option or other “incentive stock
options” with respect to such stock is granted. 
 5.4. Substitute Awards. Notwithstanding the foregoing provisions of this
Article V to the contrary, in the case of an Option that is a Substitute Award, the price per share of Common Stock subject to such Option may be less than the Fair Market Value per share on the date of grant; provided, that the excess
of: (a) the aggregate Fair Market Value (as of the 

  

 13 

 
date such Substitute Award is granted) of the shares subject to the Substitute Award, over (b) the aggregate exercise price of such shares does not
exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value to be determined by the Administrator) of the shares of the predecessor
entity that were subject to the grant assumed, replaced or substituted for by the Company, over (y) the aggregate exercise price of such shares. 
 ARTICLE VI. 
 EXERCISE OF OPTIONS 
 6.1. Partial Exercise. An exercisable Option may be exercised in whole or in part. However, an Option shall not be exercisable with respect to
fractional shares and the Administrator may require that, by the terms of the Option, a partial exercise be with respect to a minimum number of shares. 
 6.2. Manner of Exercise. All or a portion of an exercisable Option shall be deemed exercised upon delivery of all of the following to the Secretary of the Company, or such other person or entity designated by
the Administrator, or his, her or its office, as applicable: 
 (a) A written notice complying with the applicable rules
established by the Administrator stating that the Option, or a portion thereof, is exercised. Such rules may provide that for administrative convenience an Option may not be exercised during such period (not exceeding 10 days) as is specified
in advance by the Administrator. The notice shall be signed by the Holder or other person then entitled to exercise the Option or such portion of the Option; 
 (b) Such representations and documents as the Administrator, in its discretion, deems necessary or advisable to effect compliance with
all applicable provisions of the Securities Act and any other federal, state or foreign securities laws or regulations. The Administrator may, in its discretion, also take whatever additional actions it deems appropriate to effect such compliance
including, without limitation, placing legends on share certificates and issuing stop-transfer notices to agents and registrars; 
 (c) In the event that the Option shall be exercised pursuant to Section 11.1 by any person or persons other than the Holder, appropriate proof of the right of such person or persons to exercise the Option; and 
 (d) Full cash payment to the Secretary of the Company for the shares with respect to which the Option, or portion thereof, is exercised.
However, the Administrator may, in its discretion, (i) allow payment, in whole or in part, through the delivery of shares of Common Stock which have been owned by the Holder for at least six months, duly endorsed for transfer to the Company
with a Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof; (ii) allow payment, in whole or in part, through the surrender of shares of Common Stock then issuable upon
exercise of the Option having a Fair Market Value on the date of Option exercise equal to the aggregate exercise price of the Option or 

  

 14 

 
exercised portion thereof; (iii) allow payment, in whole or in part, through the delivery of property of any kind which constitutes good and valuable
consideration; (iv) allow payment, in whole or in part, through the delivery of a notice that the Holder has placed a market sell order with a broker with respect to shares of Common Stock then issuable upon exercise of the Option, and the
broker timely pays a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price; or (v) allow payment through any combination of the consideration provided in the foregoing subparagraphs (i),
(ii), (iii) and (iv); provided, however, that the payment in the manner prescribed in the preceding paragraphs shall not be permitted to the extent that the Administrator determines that payment in such manner shall result in an
extension or maintenance of credit, an arrangement for the extension of credit, or a renewal or an extension of credit in the form of a personal loan to or for any Director or executive officer of the Company that is prohibited by Section 13(k)
of the Exchange Act or other applicable law. 
 6.3. Conditions to Issuance of Stock Certificates. The Company shall not be required
to issue or deliver any certificate or certificates for shares of stock purchased upon the exercise of any Option or portion thereof prior to fulfillment of all of the following conditions: 
 (a) The admission of such shares to listing on all stock exchanges on which such class of stock is then listed; 
 (b) The completion of any registration or other qualification of such shares under any federal, state or foreign law, or under the
rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body which the Administrator shall, in its discretion, deem necessary or advisable; 
 (c) The obtaining of any approval or other clearance from any federal, state or foreign governmental agency which the Administrator
shall, in its discretion, determine to be necessary or advisable; 
 (d) The lapse of such reasonable period of time
following the exercise of the Option as the Administrator may establish from time to time for reasons of administrative convenience; and 
 (e) The receipt by the Company of full payment for such shares, including payment of any applicable withholding tax, which in the discretion of the Administrator may be in the form of consideration used by the Holder
to pay for such shares under Section 6.2(d). 
 6.4. Rights as Stockholders. Holders shall not be, nor have any of the rights or
privileges of, stockholders of the Company in respect of any shares purchasable upon the exercise of any part of an Option unless and until such shares have been issued by the Company to such Holders. 
 6.5. Ownership and Transfer Restrictions. The Administrator, in its discretion, may impose such restrictions on the ownership and transferability
of the shares purchasable upon the exercise of an Option as it deems appropriate. Any such restriction shall be set forth in the 

  

 15 

 
respective Award Agreement and may be referred to on the certificates evidencing such shares. The Holder shall give the Company prompt notice of any
disposition of shares of Common Stock acquired by exercise of an Incentive Stock Option within (a) two years from the date of granting (including the date the Option is modified, extended or renewed for purposes of Section 424(h) of the
Code) such Option to such Holder, or (b) one year after the transfer of such shares to such Holder. 
 6.6. Additional Limitations on
Exercise of Options. Holders may be required to comply with any timing or other restrictions with respect to the settlement or exercise of an Option, including a window-period limitation, as may be imposed in the discretion of the Administrator.

 ARTICLE VII. 
 AWARD
OF RESTRICTED STOCK 
 7.1. Eligibility. Subject to the Award Limit, Restricted Stock may be awarded to any Employee, Consultant
or Non-Employee Director who the Administrator determines should receive such an Award. 
 7.2. Award of Restricted Stock. 

(a) The Administrator may from time to time, in its discretion: 
 (i) Select from among the Employees, Non-Employee Directors or Consultants (including Employees, Non-Employee Directors or Consultants
who have previously received Awards under the Plan) such of them as in its opinion should be awarded Restricted Stock; and 
 (ii) Determine the purchase price, if any, and other terms and conditions applicable to such Restricted Stock; provided, however, that such terms and conditions shall not be inconsistent with the terms of the Plan. 
 (b) The Administrator shall establish the purchase price, if any, and form of payment for Restricted Stock; provided, however, that such
purchase price shall be no less than the par value of the Common Stock to be purchased, unless otherwise permitted by applicable state law. In all cases, legal consideration shall be required for each issuance of Restricted Stock. 
 (c) Upon the selection of an Employee, Consultant or Non-Employee Director to be awarded Restricted Stock, the Administrator shall instruct the
Secretary of the Company to issue such Restricted Stock and may impose such conditions on the issuance of such Restricted Stock as it deems appropriate. 
 7.3. Rights as Stockholders. Subject to Section 7.4, upon delivery of the shares of Restricted Stock to the escrow holder pursuant to Section 7.6, the Holder shall have, unless otherwise provided by
the Administrator, all the rights of a stockholder with respect to said shares, including the right to receive all dividends and other distributions paid or made with 

  

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respect to the shares, subject to the restrictions in his or her Award Agreement; provided, however, that, in the discretion of the Administrator, any
extraordinary distributions with respect to the Common Stock shall be subject to the restrictions set forth in Section 7.4. 
 7.4.
Restriction. All shares of Restricted Stock issued under the Plan (including any shares received by Holders thereof with respect to shares of Restricted Stock as a result of stock dividends, stock splits or any other form of recapitalization)
shall, in the terms of each individual Award Agreement, be subject to such restrictions as the Administrator shall provide, which restrictions may include, without limitation, restrictions concerning voting rights and transferability and
restrictions based on duration of employment, directorship or consultancy with the Company, Company performance and individual performance; provided, however, by action taken after the Restricted Stock is issued, the Administrator may, on
such terms and conditions as it may determine to be appropriate, remove any or all of the restrictions imposed by the terms of the Award Agreement. Restricted Stock may not be sold or encumbered until all restrictions are terminated or expire. If no
consideration was paid by the Holder upon issuance, a Holder’s rights in unvested Restricted Stock shall lapse, and such Restricted Stock shall be surrendered to the Company without consideration, upon Termination of Employment, Termination of
Directorship, or Termination of Consultancy, as applicable; provided, however, that the Administrator in its discretion may provide that such rights shall not lapse in the event of a Termination of Employment, Termination of Directorship or
Termination of Consultancy, as applicable, following a Change in Control or because of the Holder’s retirement, death or disability or termination without cause, or otherwise. 
 7.5. Repurchase of Restricted Stock. The Administrator shall provide in the terms of each individual Award Agreement that the Company shall have
the right to repurchase from the Holder the Restricted Stock then subject to restrictions under the Award Agreement immediately upon a Termination of Employment, Termination of Directorship, or Termination of Consultancy, as applicable, at a cash
price per share equal to the price paid by the Holder for such Restricted Stock; provided, however, that the Administrator in its discretion may provide that such rights shall not lapse in the event of a Termination of Employment, Termination
of Directorship or Termination of Consultancy, as applicable, following a Change in Control or because of the Holder’s retirement, death or disability or termination without cause, or otherwise. 
 7.6. Escrow. The Secretary of the Company or such other escrow holder as the Administrator may appoint shall retain physical custody of each
certificate representing Restricted Stock until all of the restrictions imposed under the Award Agreement with respect to the shares evidenced by such certificate expire or shall have been removed. 
 7.7. Legend. In order to enforce the restrictions imposed upon shares of Restricted Stock hereunder, the Administrator shall cause a legend or
legends to be placed on certificates representing all shares of Restricted Stock that are still subject to restrictions under Award Agreements, which legend or legends shall make appropriate reference to the conditions imposed thereby. 

7.8. Section 83(b) Election. If a Holder makes an election under Section 83(b) of the Code, or any successor section thereto, to be
taxed with respect to the Restricted Stock as of the date of transfer of the Restricted Stock rather than as of the date or dates upon which the 

  

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Holder would otherwise be taxable under Section 83(a) of the Code, the Holder shall deliver a copy of such election to the Company immediately after
filing such election with the Internal Revenue Service. 
 ARTICLE VIII. 
 PERFORMANCE AWARDS, DIVIDEND EQUIVALENTS, DEFERRED STOCK, STOCK PAYMENTS, RESTRICTED STOCK UNITS 
 8.1. Eligibility. Subject to the Award Limit, one or more Performance Awards, Dividend Equivalent Awards, Stock Payment Awards, Deferred Stock
Awards and/or Restricted Stock Unit Awards may be granted to any Employee, Consultant or Non-Employee Director whom the Administrator determines should receive such an Award. 
 8.2. Performance Awards. 
 (a) Any Employee, Consultant or Non-Employee Director selected by the Administrator may be granted one or more Performance Awards. The value of such Performance Awards may be linked to any one or more of the Performance Criteria or
other specific performance criteria determined appropriate by the Administrator, in each case on a specified date or dates or over any period or periods determined by the Administrator. In making such determinations, the Administrator shall consider
(among such other factors as it deems relevant in light of the specific type of award) the contributions, responsibilities and other compensation of the particular Employee, Consultant or Non-Employee Director. 
 (b) Without limiting Section 8.2(a), the Administrator may grant Performance Awards to any Covered Employee in the form of a cash bonus payable
upon the attainment of objective Performance Goals which are established by the Administrator, in each case on a specified date or dates or over any period or periods determined by the Administrator. Any such bonuses paid to Covered Employees shall
be based upon objectively determinable bonus formulas established in accordance with the provisions of Section 3.2. The maximum aggregate amount of all cash-based Performance Awards granted to a Covered Employee under this Section 8.2(b)
during any calendar year shall not exceed the Award Limit. Unless otherwise specified by the Administrator at the time of grant, the Performance Criteria with respect to a Performance Award payable to a Covered Employee shall be determined on the
basis of GAAP. 
 8.3. Dividend Equivalents. Any Employee, Consultant or Non-Employee Director selected by the Administrator may be
granted Dividend Equivalents based on the dividends declared on Common Stock, to be credited as of dividend payment dates, during the period between the date an Award is granted and the date such Award vests, is exercised, is distributed or expires,
as determined by the Administrator. Such Dividend Equivalents shall be converted to cash or additional shares of Common Stock by such formula and at such time and subject to such limitations as may be determined by the Administrator. 
 8.4. Stock Payments. Any Employee, Consultant or Non-Employee Director selected by the Administrator may receive Stock Payments in the manner
determined from time to time by the Administrator. The number of shares shall be determined by the Administrator and may be based upon the Performance Criteria or other specific performance criteria 

  

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determined appropriate by the Administrator, determined on the date such Stock Payment is made or on any date thereafter. 
 8.5. Deferred Stock. Any Employee, Consultant or Non-Employee Director selected by the Administrator may be granted an award of Deferred Stock in
the manner determined from time to time by the Administrator. The number of shares of Deferred Stock shall be determined by the Administrator and may be linked to the satisfaction of one or more Performance Goals or other specific performance goals
as the Administrator determines to be appropriate at the time of grant, in each case on a specified date or dates or over any period or periods determined by the Administrator. Common Stock underlying a Deferred Stock Award will not be issued until
the Deferred Stock Award has vested, pursuant to a vesting schedule or performance criteria set by the Administrator. Unless otherwise provided by the Administrator, a Holder of Deferred Stock shall have no rights as a Company stockholder with
respect to such Deferred Stock until such time as the Award has vested and the Common Stock underlying the Award has been issued. 
 8.6.
Restricted Stock Units. Any Employee, Consultant or Non-Employee Director selected by the Administrator may be granted an award of Restricted Stock Units in the manner determined from time to time by the Administrator. The Administrator is
authorized to make awards of Restricted Stock Units in such amounts and subject to such terms and conditions as determined by the Administrator. The Administrator shall specify the date or dates on which the Restricted Stock Units shall become fully
vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate, and may specify that such Restricted Stock Units become fully vested and nonforfeitable pursuant to the satisfaction of one or more Performance Goals or
other specific performance goals as the Administrator determines to be appropriate at the time of the grant, in each case on a specified date or dates or over any period or periods determined by the Administrator. The Administrator shall specify the
distribution dates applicable to each award of Restricted Stock Units which shall be no earlier than the vesting dates or events of the award and may be determined at the election of the Employee, Consultant or Non-Employee Director, subject to
compliance with Section 409A of the Code. On the distribution dates, the Company shall issue to the Holder one unrestricted, fully transferable share of Common Stock for each Restricted Stock Unit distributed. 
 8.7. Term. The term of a Performance Award, Dividend Equivalent Award, Deferred Stock Award, Stock Payment Award and/or Restricted Stock Unit
Award shall be set by the Administrator in its discretion. 
 8.8. Exercise or Purchase Price. The Administrator may establish the
exercise or purchase price of a Performance Award, shares of Deferred Stock, shares distributed as a Stock Payment Award or shares distributed pursuant to a Restricted Stock Unit Award; provided, however, that such price shall not be less
than the par value of a share of Common Stock, unless otherwise permitted by applicable state law. 
 8.9. Exercise upon Termination of
Employment, Termination of Consultancy or Termination of Directorship. A Performance Award, Dividend Equivalent Award, Deferred Stock Award, Stock Payment Award and/or Restricted Stock Unit Award is exercisable or distributable only while the
Holder is an Employee, Consultant or Non-Employee Director, as 

  

 19 

 
applicable; provided, however, that the Administrator in its discretion may provide that the Performance Award, Dividend Equivalent Award, Deferred
Stock Award, Stock Payment Award and/or Restricted Stock Unit Award may be exercised or distributed subsequent to a Termination of Employment, Termination of Directorship or Termination of Consultancy, as applicable, following a “change of
control or ownership” (within the meaning of Section 1.162-27(e)(2)(v) or any successor regulation thereto) of the Company; and, provided further, that, except with respect to Performance Awards granted to Covered Employees, the
Administrator in its discretion may provide that Performance Awards may be exercised or distributed following a Termination of Employment, Termination of Directorship or Termination of Consultancy, as applicable, following a Change in Control, or
because of the Holder’s retirement, death or disability or termination without cause, or otherwise. 
 8.10. Form of Payment.
Payment of the amount determined under Section 8.2 or 8.3 above shall be in cash, in Common Stock or a combination of both, as determined by the Administrator. To the extent any payment under this Article VIII is effected in Common Stock,
it shall be made subject to satisfaction of all provisions of Section 6.3. 
 ARTICLE IX. 
 STOCK APPRECIATION RIGHTS 
 9.1.
Grant of Stock Appreciation Rights. A Stock Appreciation Right may be granted to any Employee, Consultant or Non-Employee Director selected by the Administrator. A Stock Appreciation Right may be granted: (a) in connection and
simultaneously with the grant of an Option, or (b) independent of an Option. A Stock Appreciation Right shall be subject to such terms and conditions not inconsistent with the Plan as the Administrator shall impose and shall be evidenced by an
Award Agreement. 
 9.2. Coupled Stock Appreciation Rights. 
 (a) A Coupled Stock Appreciation Right (“CSAR”) shall be related to a particular Option and shall be exercisable only when and to
the extent the related Option is exercisable. 
 (b) A CSAR may be granted to the Holder for no more than the number of shares subject
to the simultaneously granted Option to which it is coupled. 
 (c) A CSAR shall entitle the Holder (or other person entitled to
exercise the Option pursuant to the Plan) to surrender to the Company unexercised a portion of the Option to which the CSAR relates (to the extent then exercisable pursuant to its terms) and to receive from the Company in exchange therefor an amount
determined by multiplying (i) the difference obtained by subtracting the exercise price per share of the CSAR from the Fair Market Value of a share of Common Stock on the date of exercise of the CSAR by (ii) the number of shares of Common
Stock with respect to which the CSAR shall have been exercised, subject to any limitations the Administrator may impose. 
  

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 9.3. Independent Stock Appreciation Rights. 
 (a) An Independent Stock Appreciation Right (“ISAR”) shall be unrelated to any Option and shall have a term set by the
Administrator in its discretion; provided, however, that the term shall not be more than ten (10) years from the date the ISAR is granted. An ISAR shall be exercisable in such installments as the Administrator may determine. An ISAR
shall cover such number of shares of Common Stock as the Administrator may determine; provided, however, that unless the Administrator otherwise provides in the terms of the Award Agreement or otherwise, no ISAR granted to a person subject to
Section 16 of the Exchange Act shall be exercisable until at least six months have elapsed following the date on which the ISAR was granted. The exercise price per share of Common Stock subject to each ISAR shall be set by the Administrator;
provided, that such exercise price per share shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date the ISAR is granted. An ISAR is exercisable only while the Holder is an Employee, Consultant or
Non-Employee Director; provided, that the Administrator may provide that ISARs may be exercised following a Termination of Employment, Termination of Directorship or Termination of Consultancy, as applicable, or following a Change in Control,
or because of the Holder’s retirement, death or disability or termination without cause, or otherwise. 
 (b) An ISAR shall entitle
the Holder (or other person entitled to exercise the ISAR pursuant to the Plan) to exercise all or a specified portion of the ISAR (to the extent then exercisable pursuant to its terms) and to receive from the Company an amount determined by
multiplying (i) the difference obtained by subtracting the exercise price per share of the ISAR from the Fair Market Value of a share of Common Stock on the date of exercise of the ISAR by (ii) the number of shares of Common Stock with
respect to which the ISAR shall have been exercised, subject to any limitations the Administrator may impose. 
 9.4. Payment and
Limitations on Exercise. 
 (a) Payment of the amounts determined under Section 9.2(c) and 9.3(b) above shall be in cash,
shares of Common Stock (based on its Fair Market Value as of the date the Stock Appreciation Right is exercised), or a combination of both, as determined by the Administrator. The Company shall not be required to issue or deliver any certificate or
certificates for shares of stock issuable upon the exercise of any Stock Appreciation Right prior to fulfillment of the conditions set forth in Section 6.3 above. 
 (b) Holders of Stock Appreciation Rights may be required to comply with any timing or other restrictions with respect to the settlement or exercise of a Stock Appreciation Right, including a window-period
limitation, as may be imposed in the discretion of the Administrator. 
 ARTICLE X. 
 ADMINISTRATION 
 10.1.
Committee. The Committee shall consist solely of two or more Directors appointed by and holding office at the pleasure of the Board, each of whom is intended to qualify 

  

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as both a “non-employee director” as defined by Rule 16b-3 and an “outside director” for purposes of Section 162(m) of the
Code. Appointment of Committee members shall be effective upon acceptance of appointment. Committee members may resign at any time by delivering written notice to the Board. Vacancies in the Committee may be filled by the Board. 
 10.2. Duties and Powers of Committee. It shall be the duty of the Committee to conduct the general administration of the Plan in accordance with
its provisions. The Committee shall have the power to interpret the Plan and the Award Agreements, and to adopt such rules for the administration, interpretation and application of the Plan as are not inconsistent therewith, to interpret, amend or
revoke any such rules, to delegate authority in accordance with Section 10.5 and to amend any Award Agreement provided that the rights or obligations of the Holder of the Award that is the subject of any such Award Agreement are not affected
adversely. Any such grant or award under the Plan need not be the same with respect to each Holder. Any such interpretations and rules with respect to Incentive Stock Options shall not be inconsistent with the provisions of Section 422 of the
Code. In its discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan except with respect to matters which under Rule 16b-3 or Section 162(m) of the Code, or any
regulations or rules issued thereunder, are required to be determined in the discretion of the Committee. Notwithstanding the foregoing, the full Board, acting by a majority of its members in office, shall conduct the general administration of the
Plan with respect to Awards granted to Non-Employee Directors. 
 10.3. Majority Rule; Unanimous Written Consent. The Committee shall
act by a majority of its members in attendance at a meeting at which a quorum is present or by a memorandum or other written instrument signed by all members of the Committee. 
 10.4. Compensation; Professional Assistance; Good Faith Actions. Members of the Committee shall receive such compensation, if any, for their
services as members as may be determined by the Board. All expenses and liabilities which members of the Committee incur in connection with the administration of the Plan shall be borne by the Company. The Committee may employ attorneys,
consultants, accountants, appraisers, brokers or other persons. The Committee, the Company and the Company’s officers and Directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all
interpretations and determinations made by the Committee or the Board in good faith shall be final and binding upon all Holders, the Company and all other interested persons. No members of the Committee or Board shall be personally liable for any
action, determination or interpretation made in good faith with respect to the Plan or Awards, and all members of the Committee and the Board shall be fully protected by the Company in respect of any such action, determination or interpretation.

 10.5. Delegation of Authority to Grant Awards. To the extent permitted by applicable law, the Committee may, but need not, delegate
from time to time some or all of its authority to grant Awards under the Plan to a committee or committees consisting of one or more members of the Board and/or one or more officers of the Company; provided, however, that the authority to
grant awards to the following individuals may not be delegated: (a) individuals who are subject to the reporting rules under Section 16(a) of the Exchange Act, (b) individuals who are Covered Employees, and (c) individuals who
are officers of the Company who are delegated authority by the Committee hereunder. Any delegation hereunder shall be subject to the 

  

 22 

 
restrictions and limits that the Committee specifies at the time of such delegation of authority and may be rescinded at any time by the Committee. At all
times, any committee appointed under this Section 10.5 shall serve in such capacity at the pleasure of the Committee. 
 ARTICLE XI.

 MISCELLANEOUS PROVISIONS 
 11.1. Transferability of Awards. 
 (a) Except as otherwise provided in Section 11.1(b): 
 (i) No Award under the Plan may be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and
distribution or, subject to the consent of the Administrator, pursuant to a DRO, unless and until such Award has been exercised, or the shares underlying such Award have been issued, and all restrictions applicable to such shares have lapsed;

 (ii) No Award or interest or right therein shall be liable for the debts, contracts or engagements of the Holder or his
successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by
judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted
pursuant to Section 11.1(a)(i); and 
 (iii) During the lifetime of the Holder, only the Holder may exercise an Option
or other Award (or any portion thereof) granted to him under the Plan, unless it has been disposed of pursuant to a DRO; after the death of the Holder, any exercisable portion of an Option or other Award may, prior to the time when such portion
becomes unexercisable under the Plan or the applicable Award Agreement, be exercised by his personal representative or by any person empowered to do so under the deceased Holder’s will or under the then applicable laws of descent and
distribution. 
 (b) Notwithstanding Section 11.1(a), the Administrator, in its discretion, may determine to permit a Holder to
transfer a Non-Qualified Stock Option to any one or more Permitted Transferees (as defined below), subject to the following terms and conditions: (i) a Non-Qualified Stock Option transferred to a Permitted Transferee shall not be assignable or
transferable by the Permitted Transferee other than by will or the laws of descent and distribution; (ii) any Non-Qualified Stock Option which is transferred to a Permitted Transferee shall continue to be subject to all the terms and conditions
of the Award Agreement evidencing such Non-Qualified Stock Option as applicable to the original Holder (other than the ability to further transfer the Non-Qualified Stock Option); and (iii) the Holder and the Permitted Transferee shall execute
any and all documents requested by the Administrator, including, 

  

 23 

 
without limitation documents to (A) confirm the status of the transferee as a Permitted Transferee, (B) satisfy any requirements for an exemption
for the transfer under applicable federal, state and foreign securities laws and (C) evidence the transfer. For purposes of this Section 11.1(b), “Permitted Transferee” shall mean, with respect to a Holder, any child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing
the Holder’s household (other than a tenant or employee), a trust in which these persons (or the Holder) control the management of assets, and any other entity in which these persons (or the Holder) own more than fifty percent of the voting
interests, or any other transferee specifically approved by the Administrator after taking into account any federal, state, local and foreign tax and securities laws applicable to transferable Non-Qualified Stock Options. 
 11.2. Amendment, Suspension or Termination of the Plan. Except as otherwise provided in this Section 11.2, the Plan may be wholly or
partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Board, or the Compensation Committee of the Board. However, without approval of the Company’s stockholders given within twelve
(12) months before or after the action by the Administrator, no action of the Administrator may, except as provided in Section 11.3, (i) increase the limits imposed in Section 2.1 on the maximum number of shares which may be
issued under the Plan or (ii) decrease the exercise price of any outstanding Option or Stock Appreciation Right granted under the Plan. Except as provided in Section 11.13, no amendment, suspension or termination of the Plan shall, without
the consent of the Holder, alter or impair any rights or obligations under any Award theretofore granted or awarded, unless the Award itself otherwise expressly so provides. No Awards may be granted or awarded during any period of suspension or
after termination of the Plan, and in no event may any Award be granted under the Plan after the first to occur of the following events: 
 (a) The expiration of ten (10) years from the date the Plan is adopted by the Board; or 
 (b) The expiration
of ten (10) years from the date the Plan is first approved by the Company’s stockholders (or, if the Company is a wholly-owned subsidiary of Peplin Limited at such time, the shareholders of Peplin Limited). 
 11.3. Changes in Common Stock or Assets of the Company, Acquisition or Liquidation of the Company and Other Corporate Events. 
 (a) Subject to Section 11.3(d), in the event of any extraordinary dividend or other similar distribution (whether in the form of cash, Common
Stock, other securities or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer,
exchange or other disposition of all or substantially all of the assets of the Company, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company,
or other similar corporate transaction or event that affects the Common Stock, then the Administrator shall equitably adjust any or all of the following in order to prevent dilution or enlargement of 

  

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the benefits or potential benefits intended to be made available under the Plan or with respect to an Award: 
 (i) The number and kind of shares of Common Stock (or other securities or property) with respect to which Awards may be granted or
awarded (including, without limitation, adjustments of the limitations in Section 2.1 on the maximum number and kind of shares which may be issued under the Plan and adjustments of the Award Limit); 
 (ii) The number and kind of shares of Common Stock (or other securities or property) subject to outstanding Awards; and 
 (iii) The grant or exercise price with respect to any Award. 
 (b) Subject to Section 11.3(d), in the event of any transaction or event described in Section 11.3(a) or any unusual or nonrecurring
transactions or events affecting the Company, any affiliate of the Company, or the financial statements of the Company or any affiliate, or of changes in applicable laws, regulations or accounting principles, the Administrator, in its discretion,
and on such terms and conditions as it deems appropriate, either by the terms of the Award or by action taken prior to the occurrence of such transaction or event and either automatically or upon the Holder’s request, is hereby authorized to
take any one or more of the following actions whenever the Administrator determines that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or
with respect to any Award under the Plan, to facilitate such transactions or events or to give effect to such changes in laws, regulations or principles: 
 (i) To provide for the purchase of any such Award for an amount of cash equal to the amount that could have been attained upon the exercise of such Award or realization of the Holder’s rights had such Award been
currently exercisable or payable or fully vested; 
 (ii) To provide for the replacement of such Award with other rights or
property selected by the Administrator in its discretion having an aggregate value not exceeding the amount that could have been attained upon the exercise of such Award or realization of the Holder’s rights had such Award been currently
exercisable or payable or fully vested; 
 (iii) To provide that the Award cannot vest, be exercised or become payable after
such event; 
 (iv) To provide that such Award shall be exercisable as to all shares covered thereby, notwithstanding
anything to the contrary in Section 5.3 or the provisions of such Award; 
 (v) To provide that such Award be assumed by
the successor or survivor corporation, or a parent or subsidiary thereof, or shall be 

  

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substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kind of shares and prices; 
 (vi) To make adjustments in the number and type of
shares of Common Stock (or other securities or property) subject to outstanding Awards, and/or in the terms and conditions of (including the grant, exercise or purchase price), and the criteria included in, outstanding options, rights and awards and
options, rights and awards which may be granted in the future; and 
 (vii) To provide that, for a specified period of time
prior to such event, the restrictions imposed under an Award Agreement upon some or all shares of Restricted Stock, Restricted Stock Units or Deferred Stock may be terminated, and, in the case of Restricted Stock, some or all shares of such
Restricted Stock may cease to be subject to repurchase under Section 7.5 or forfeiture under Section 7.4 after such event. 
 (c) Subject to Sections 11.3(d) and 3.2, the Administrator may, in its discretion, include such further provisions and limitations in any Award, agreement or certificate, as it may deem equitable and in the best interests of the
Company. 
 (d) With respect to Awards which are granted to Covered Employees and are intended to qualify as performance-based
compensation under Section 162(m)(4)(C), no adjustment or action described in this Section 11.3 or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would cause such Award to fail to so
qualify under Section 162(m)(4)(C), or any successor provisions thereto. No adjustment or action described in this Section 11.3 or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would
cause the Plan to violate Section 422(b)(1) of the Code. Furthermore, no such adjustment or action shall be authorized to the extent such adjustment or action would result in short-swing profits liability under Section 16 or violate the
exemptive conditions of Rule 16b-3 unless the Administrator determines that the Award is not to comply with such exemptive conditions. The number of shares of Common Stock subject to any Award shall always be rounded down to the next whole
number. 
 (e) The existence of the Plan, the Award Agreement and the Awards granted hereunder shall not affect or restrict in any way
the right or power of the Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the
Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into
or exchangeable for Common Stock, or the dissolution or liquidation of the company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

  

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 (f) No action shall be taken under this Section 11.3 which shall cause an Award to fail to
comply with Section 409A of the Code or the Treasury Regulations thereunder, to the extent applicable to such Award. 
 (g) No
action shall be taken under this Section 11.3 which shall cause an Award to fail to comply with the ASX Listing Rules, to the extent applicable to such Award. 
 11.4. Approval of Plan by Stockholders. The Plan will be submitted for the approval of the Company’s stockholders within twelve (12) months after the date of the Board’s initial adoption of the
Plan. Awards may be granted or awarded prior to such stockholder approval, provided that such Awards shall not be exercisable, shall not vest and the restrictions thereon shall not lapse prior to the time when the Plan is approved by the
stockholders, and provided further that if such approval has not been obtained at the end of said twelve-month period, all Awards previously granted or awarded under the Plan shall thereupon be canceled and become null and void. 
 11.5. Tax Withholding. The Company or any Subsidiary shall have the authority and the right to deduct or withhold, or require a Holder to remit to
the Company, an amount sufficient to satisfy federal, state, local and foreign taxes (including the Holder’s FICA obligation) required by law to be withheld with respect to any taxable event concerning a Holder arising as a result of this Plan.
The Administrator may in its discretion and in satisfaction of the foregoing requirement allow a Holder to elect to have the Company withhold shares of Common Stock otherwise issuable under an Award (or allow the return of shares of Common Stock)
having a Fair Market Value equal to the sums required to be withheld. Notwithstanding any other provision of the Plan, the number of shares of Common Stock which may be withheld with respect to the issuance, vesting, exercise or payment of any Award
(or which may be repurchased from the Holder of such Award within six months (or such other period as may be determined by the Administrator) after such shares of Common Stock were acquired by the Holder from the Company) in order to satisfy the
Holder’s federal, state, local and foreign income and payroll tax liabilities with respect to the issuance, vesting, exercise or payment of the Award shall be limited to the number of shares which have a Fair Market Value on the date of
withholding or repurchase equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable
income. 
 11.6. Prohibition on Repricing. Subject to Section 11.3, the Administrator shall not, without the approval of the
stockholders of the Company, authorize the amendment of any outstanding Award to reduce its price per share. Furthermore, no Award shall be canceled and replaced with the grant of an Award having a lesser price per share without the further approval
of stockholders of the Company. Subject to Section 11.2, the Administrator shall have the authority, without the approval of the stockholders of the Company, to amend any outstanding award to increase the price per share or to cancel and
replace an Award with the grant of an Award having a price per share that is greater than or equal to the price per share of the original Award. 
 11.7. Forfeiture Provisions. Pursuant to its general authority to determine the terms and conditions applicable to Awards under the Plan, the Administrator shall have the right 

  

 27 

 
to provide, in the terms of Awards made under the Plan, or to require a Holder to agree by separate written instrument, that: (a)(i) any proceeds, gains or
other economic benefit actually or constructively received by the Holder upon any receipt or exercise of the Award, or upon the receipt or resale of any Common Stock underlying the Award, must be paid to the Company, and (ii) the Award shall
terminate and any unexercised portion of the Award (whether or not vested) shall be forfeited, if (b)(i) a Termination of Employment, Termination of Directorship or Termination of Consultancy occurs prior to a specified date, or within a specified
time period following receipt or exercise of the Award, or (ii) the Holder at any time, or during a specified time period, engages in any activity in competition with the Company, or which is inimical, contrary or harmful to the interests of
the Company, as further defined by the Administrator or (iii) the Holder incurs a Termination of Employment, Termination of Directorship or Termination of Consultancy for “cause” (as such term is defined in the discretion of the
Administrator, or as set forth in a written agreement relating to such Award between the Company and the Holder). 
 11.8. Effect of Plan
upon Other Compensation Plans. The adoption of the Plan shall not affect any other compensation or incentive plans in effect for the Company or any Subsidiary. Nothing in the Plan shall be construed to limit the right of the Company or any
Subsidiary: (a) to establish any other forms of incentives or compensation for Employees, Directors or Consultants of the Company or any Subsidiary, or (b) to grant or assume options or other rights or awards otherwise than under the Plan
in connection with any proper corporate purpose including without limitation, the grant or assumption of options in connection with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock or assets of any
corporation, partnership, limited liability company, firm or association. 
 11.9. Prohibition on Pre-Service Grants. In no event
shall any individual receive an Award prior to the date of his or her commencement of employment or service with the Company or any Subsidiary. 
 11.10. Compliance with Laws. The Plan, the granting and vesting of Awards under the Plan and the issuance and delivery of shares of Common Stock and the payment of money under the Plan or under Awards granted or awarded hereunder are
subject to compliance with all applicable federal, state, local and foreign laws, rules and regulations (including but not limited to federal, state and foreign securities law and margin requirements) and to such approvals by any listing, regulatory
or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. Any securities delivered under the Plan shall be subject to such restrictions, and the person acquiring such securities
shall, if requested by the Company, provide such assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with all applicable legal requirements. To the extent permitted by applicable law, the
Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
 11.11. Titles. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of the Plan. 
  

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 11.12. Governing Law. The Plan and any agreements hereunder shall be administered, interpreted and
enforced under the internal laws of the State of Delaware without regard to conflicts of laws thereof. 
 11.13. Section 409A. To
the extent that the Administrator determines that any Award granted under the Plan is subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the
Code. To the extent applicable, the Plan and Award Agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without
limitation any such regulations or other guidance that may be issued after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that following the Effective Date the Administrator determines that any Award may
be subject to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the Effective Date), the Administrator may adopt such amendments to the Plan and the
applicable Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (a) exempt
the Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code and related Department of Treasury
guidance. 
 11.14. Foreign Participants. Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws
in other countries in which the Company and its Subsidiaries operate or have Employees, Consultants or Directors, the Administrator, in its sole discretion, shall have the power and authority to: (i) determine which Subsidiaries shall be
covered by the Plan; (ii) determine which Employees, Consultants and Directors outside the United States are eligible to participate in the Plan; (iii) modify the terms and conditions of any Award granted to Employees, Consultants and
Directors outside the United States to comply with applicable foreign laws; (iv) establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable (any such subplans
and/or modifications may be attached to this Plan as appendices); provided, however, that no such subplans and/or modifications shall increase the share limitations contained in Section 2.1(a) or Section 2.3 of the Plan; and
(v) take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local governmental regulatory exemptions or approvals. Notwithstanding the foregoing, the Committee may not take any
actions hereunder, and no Awards shall be granted, that would violate the Exchange Act, the Code, the ASX Listing Rules, any securities law or governing statute or any other applicable law. 
  

 29 

 * * * * * 
 I hereby certify that the foregoing Peplin, Inc. 2007 Incentive Award Plan was duly adopted by the Board of Directors of Peplin, Inc. on             
                 , 2007. 
 Executed on
this      day of                          , 2007. 
  

							
		 		 	  
	 	
		 		 	Corporate Secretary	 	

 * * * * * 
 I hereby certify that the foregoing Peplin, Inc. 2007 Incentive Award Plan was approved by the stockholders of Peplin Limited, the sole stockholder of Peplin, Inc., on
                              , 2007. 
 Executed on this      day of
                    , 2007. 
  

							
		 		 	  
	 	
		 		 	Corporate Secretary	 	

  

 30

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