Document:

exv4w2

 

Exhibit 4.2

INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

INCORPORATED ON JULY 31, 2007

					
	 	 	 	 	 
	Number                     
	 	 
	 	                     Shares

PEPLIN, INC.

CLASS B COMMON STOCK

Authorized Capital Stock: 100,000,001

Common Stock: 100,000,000 Shares, par value $0.001 per share

Preferred Stock: 10,000,000 Shares, par value $0.001 per share

Class B Common Stock: 1 Share, par value $0.001 per share

	 	 	 	 	 
	THIS CERTIFIES THAT

	 	 
	 	IS THE REGISTERED
	 

	 	 	 	 

	 	 	 	 	 
	HOLDER OF

	 	 
	 	SHARES OF
	 

	 	 	 	 
	CLASS B COMMON STOCK OF

PEPLIN, INC.

HEREINAFTER DESIGNATED “THE CORPORATION.” TRANSFERABLE ON THE BOOKS OF THE CORPORATION
UPON SURRENDER OF THIS CERTIFICATE PROPERLY ENDORSED OR ASSIGNED.

THE SHARES REPRESENTED HEREBY ARE RESTRICTED AS TO TRANSFER AS DESCRIBED OR SET FORTH ON
THE REVERSE SIDE HEREOF.

WITNESS the seal of the Corporation and the signatures of its duly authorized officers this           
day of                     , 200     .

	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	Philip Moody, Chief Financial Officer and Treasurer

	 	 
	 	Michael Aldridge, Chief Executive Officer and President

 

 

	 	 	 	 	 
	FOR VALUE RECEIVED,

	 	 
	 	HEREBY SELL, ASSIGN AND
	 

	 	 	 	 

	 	 	 
	TRANSFER UNTO

	 	 
	 

	 	 

	 	 	 
	 

	 	SHARES REPRESENTED BY
	 	 	 

THE WITHIN CERTIFICATE AND DO HEREBY IRREVOCABLY CONSTITUTE AND APPOINT

 

ATTORNEY TO TRANSFER THE SAID SHARES ON THE SHARE REGISTER OF THE WITHIN NAMED CORPORATION, WITH
FULL POWER OF SUBSTITUTION ON THE PREMISES.

DATED                     , 20          

 

 

 

Notice: The signature to the foregoing assignment must correspond to the name as written upon
the face of this certificate in every particular, without alteration or enlargement or any change
whatsoever and should be guaranteed by a commercial bank or trust company having an office or
correspondent in Los Angeles or New York City or by a member firm of the New York Stock Exchange,
American Stock Exchange or Pacific Coast Stock Exchange.

Signature Guaranteed:

 

 

 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE
OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.exv10w5

 

Exhibit
10.5

	 	 	 	 	 
	 

	 	Governor
Phillip Tower
1 Farrer Place Sydney NSW 2000
GPO Box
9925 NSW 2001
Tel +61 2 9210 6500
Fax +61 2 9210
6611
www.corrs.com.au
	 	
	 

	 	 	 
	 

	 	 	 
	 

	 	 	 
	 

	 	 	 
	 

	 	 	 

Sydney

Melbourne

Brisbane

Perth

Canberra

Gold Coast

Final

23 June 2006

Dr Gary Pace

Peplin Limited

Purchase Agreement

©
Corrs Chambers Westgarth

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Contents	 	 	 	 	 	 	 	 	 	 
	 
	1

	 	 	Interpretation
	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	1.1	 	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	1.2	 	 	Construction
	 	 	3	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	1.3	 	 	Headings
	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	2

	 	 	Subscription
	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.1	 	 	First Tranche subscription and issue of Shares
	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.2	 	 	Issue of Options
	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.3	 	 	Terms of issue
	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	3

	 	 	Conditions
	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.1	 	 	Conditions to the issue of the First Tranche securities
	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.2	 	 	Responsibility
	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.3	 	 	Benefit and satisfaction of conditions
	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	4

	 	 	First Closing
	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	4.1	 	 	Obligations of Dr Pace
	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	4.2	 	 	Obligations of Company
	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	5	 	 	Period after closing date	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	5.1	 	 	Quotation
	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	5.2	 	 	Section 708A notice
	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	5.3	 	 	Return of subscription monies
	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	6	 	 	Company Warranties	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	6.1	 	 	Giving of the Company Warranties
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	6.2	 	 	Company Warranties
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 
	7

	 	 	Termination
	 	 	8	 
	 
	 	 	 	 	 	 	 	 	 	 
	8	 	 	Dr Pace Warranties	 	 	8	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	8.1	 	 	Giving of Warranties
	 	 	8	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	8.2	 	 	Dr Pace Warranties
	 	 	8	 
	 
	 	 	 	 	 	 	 	 	 	 
	9	 	 	Dr Pace Covenants	 	 	9	 
	 
	 	 	 	 	 	 	 	 	 	 
	10

	 	 	Notices
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	10.1	 	 	General
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	10.2	 	 	How to give a communication
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	10.3	 	 	Particulars for delivery of notices
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	10.4	 	 	Communications by post
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	10.5	 	 	Communications by fax
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	10.6	 	 	After hours communications
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	10.7	 	 	Communications by email
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	10.8	 	 	Process service
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	11

	 	 	GST
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	11.1	 	 	Consideration GST exclusive
	 	 	11	 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	11.2	 	 	Payment of GST
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	11.3	 	 	Timing of GST payment
	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	11.4	 	 	Tax invoice
	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	12

	 	 	General
	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	12.1	 	 	Amendment
	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	12.2	 	 	Waiver and exercise of rights
	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	12.3	 	 	Further steps
	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	12.4	 	 	Counterparts
	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	12.5	 	 	Entire understanding
	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	12.6	 	 	Governing law
	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	Schedule 1 – Option Terms	 	 	13	 

 

 

Date

Parties

Dr Gary Pace of 6 Robinson Park, Winchester, MA 01890, United States of
America (Dr Pace)

Peplin Limited ACN 090 819 275 of Level 2, 1 Breakfast Creek
Road, Newstead, Qld 4006 (Company)

Background

	A	 	The Company is seeking to raise approximately US$30 million by way
of a placement to institutional investors and a pro-rata non-renounceable
entitlement issue to shareholders.
	 
	B	 	Under the placement, the Company is seeking to raise approximately US$20
million by offering Shares for subscription at the Subscription Price with
three attaching Options to be issued for every ten Shares subscribed.
	 
	C	 	Dr Pace intends to participate in the placement and subscribe for the
Shares and the attaching Options.
	 
	D	 	The Company agrees to issue Shares and Options to Dr Pace on the terms set
out in this document.

Agreed terms

	1	 	Interpretation
	 
	1.1	 	Definitions

 In this document:

 ASIC means the Australian Securities and Investments Commission.

 ASX means Australian Stock Exchange Limited ACN 008 624 691.

 Business Day means a day which is not a Saturday, Sunday or a
public or bank holiday in Brisbane, Australia.

 Company Warranties means the warranties and representations of
the Company as set out in clause 6.2.

 Constitution means the constitution of the Company.

 Corporations Act means the Corporations Act (2001) (Cth).

 

 

EGM means an extraordinary general meeting of the Company to be
convened in order for Shareholders to approve, amongst other things,
the issue of the First Tranche Shares under Listing Rule 7.1.

Exercise Notice means the notice of exercise of Options, in the form
provided by the Share Registry or otherwise in the form approved from
time to time by the Company.

First Closing means the subscription for and issue of the First Tranche
Shares to Dr Pace in accordance with clause 4.

First Closing Date means
the date which is 3 Business Days after the Company satisfies the
condition to the issue of the First Tranche Shares in accordance with
clause 3.3.

First Tranche Options means 51,000 Options.

First Tranche
Shares means the 170,000 Shares.

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

Immediately Available Funds means cash or bank cheque or any other
form of payment that the parties agree in writing.

Listing Rules means the ASX Listing Rules.

Material Adverse Effect means any event, change or occurrence that
individually or together with any other event, change or occurrence
has had, or could reasonably be expected to have, a material adverse
effect on the financial condition, business, results or prospects of
the Company.

Official Quotation means official quotation on the ASX.

Option means an option to subscribe for a Share on the Option Terms.

Option Exercise Price means $0.84.

Option Expiry Date means 30 June 2010.

Option
Terms means the terms of the Options as set out in schedule 1.

Optionholder means any person holding Options.

Securities Act means
the United States Securities Act of 1933, as amended.

Share Registry
means Computershare Investor Services Pty Limited, or any other share
registry appointed by the Company from time to time.

Shares means fully paid ordinary shares in the capital of the
Company.

Shareholder means any person holding Shares.

Dr Pace Warranties means the warranties and representations of Dr Pace as set
out in clause 8.2.

Subscription Price means $0.76 per Share
subscribed for under this document.

 

 

	1.2	 	Construction

Unless expressed to the contrary, in this document:

	 	(a)	 	words in the singular include
the plural and vice versa;
	 
	 	(b)	 	if a word or phrase is defined its other grammatical forms
have corresponding meanings;
	 
	 	(c)	 	“includes” means includes without limitation;
	 
	 	(d)	 	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;
	 
	 	(e)	 	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, assigns and persons substituted by novation;
	 
	 	(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 Brisbane, Australia;
	 
	 	(vii)	 	“$” or “dollars” is a reference to Australian currency;
	 
	 	(viii)	 	“US$” is a reference to the currency of the United States;
	 
	 	(ix)	 	this or any other document includes the document as novated, varied or replaced and despite
any change in the identity of the parties;
	 
	 	(x)	 	writing includes any mode of representing or
reproducing words in tangible and permanently visible form, and includes:

	 	(A)	 	fax transmissions; and
	 
	 	(B)	 	words created or stored in any electronic medium and retrievable in
perceivable form;

	 	(xi)	 	this document includes all schedules and annexures to it.

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

 

 

	 	(h)	 	words and expressions which are not defined but which have a defined meaning under the
Corporations Act have the same meaning as in the Corporations Act; and
	 
	 	(i)	 	words and expressions which are not defined but which have a defined meaning in GST Law have the same
meaning as in the GST Law.

	1.3	 	Headings
	 
	 	 	Headings do not affect the interpretation of this document.
	 
	2	 	Subscription
	 
	2.1	 	First Tranche subscription and issue of Shares
	 
	 	 	Dr Pace will subscribe for the First Tranche Shares at the
Subscription Price and the Company will issue the First Tranche
Shares to Dr Pace on the First Closing Date on and subject to this
document.
	 
	2.2	 	Issue of Options

	 	(a)	 	The Company will issue to Dr Pace, for no additional
consideration, on the First Closing Date three Options for every ten
Shares issued to Dr Pace on that date.
	 
	 	(b)	 	If the number of Shares issued to Dr Pace is not a multiple of
ten, the number of Options to be issued Dr Pace will be calculated on
the basis of the number of Shares rounded down to a multiple of ten.

	2.3	 	Terms of issue
	 
	 	 	On issue transfer of the Shares and Options to Dr Pace, Dr Pace
will be bound by the provisions of the Constitution and the Option
Terms (as the case may be).
	 
	3	 	Conditions
	 
	3.1	 	Conditions to the issue of the First Tranche securities
	 
	 	 	The First Closing will not take place and there is no agreement
between the Company and Dr Pace to subscribe for and issue the First
Tranche Shares and First Tranche Options unless and until the Company
obtains shareholder approval at the EGM for the issue of the First
Tranche Shares and First Tranche Options under Listing Rule 7.1 and
Listing Rule 10.11.
	 
	3.2	 	Responsibility
	 
	 	 	The Company is responsible for and must use its reasonable
endeavours to satisfy the condition in clause 3.1 by 30 June 2006.
	 
	3.3	 	Benefit and satisfaction of conditions
	 
	 	 	The conditions in clause 3.1 are for the benefit of Dr Pace and
will be satisfied in respect of Dr Pace upon the Company announcing to
ASX that Shareholder

 

 

approval was obtained in accordance with clause 3.1, such announcement
to be given no later than one hour after close of the EGM.

	4	 	First Closing
	 
	4.1	 	Obligations of Dr Pace
	 
	 	 	On the First Closing Date Dr Pace will pay to the Company
the total Subscription Price for the relevant First Tranche
Shares in Immediately Available Funds.
	 
	4.2	 	Obligations of Company
	 
	 	 	On the First Closing Date, the Company will:

	 	(a)	 	allot the First Tranche Shares to each relevant Dr
Pace;
	 
	 	(b)	 	allot the First Tranche Options to each
relevant Dr Pace;
	 
	 	(c)	 	enter each relevant Dr Pace in the share register and option register of the Company;
	 
	 	(d)	 	deliver a holding statement for the First Tranche Shares to each relevant Dr Pace; and
	 
	 	(e)	 	deliver a holding statement for the First Tranche Options to each relevant Dr Pace.

	5	 	Period after closing date
	 
	5.1	 	Quotation

	 	(a)	 	As soon as practicable (and in any case no later than 5
Business Days) after the First Closing Date, the Company must apply
for Official Quotation of the First Tranche Shares and First Tranche
Options in accordance with the Listing Rules.
	 
	 	(b)	 	As soon as practicable (and in any case no later than 5 Business
Days) after the exercise of Options, the Company must apply for
Official Quotation of the Shares issued by the Company on exercise of
the relevant Options in accordance with the Listing Rules.

	5.2	 	Section 708A notice
	 
	 	 	At the time the First Tranche Shares are issued, the Company
must provide the ASX with a notice in respect of the relevant
Shares that complies with section 708A(6) of the Corporations Act.
	 
	5.3	 	Return of subscription monies

	 	(a)	 	Any monies received from Dr Pace in respect of the payment of
the Subscription Price for First Tranche Shares will be held on trust
for Dr Pace until the relevant First Tranche Shares and First Tranche
Options obtain Official Quotation.

 

 

	 	(b)	 	If the relevant First Tranche Shares and First Tranche Options do
not obtain Official Quotation within 10 Business Days after their
issue on the First Closing Date, any monies received from Dr Pace as
payment for the relevant Shares will be returned to Dr Pace within 15
Business Days of the date of issue of the relevant Shares.

	6	 	Company Warranties
	 
	6.1	 	Giving of the Company Warranties

	 	(a)	 	The Company gives the Company Warranties in favour of Dr
Pace on the date of this document and the First Closing Date.
	 
	 	(b)	 	The warranties in clauses 6.2(a), 6.2(b) and 6.2(c) will remain
in full force and effect after First Closing, notwithstanding that
the relevant transactions have been completed.
	 
	 	(c)	 	The Company acknowledges Dr Pace have entered into this document in
reliance on the Company Warranties.

	6.2	 	Company Warranties

	 	(a)	 	Authorisation: The Company has:

	 	(i)	 	taken all necessary action to authorise the execution, delivery and performance of
this document in accordance with its terms; and

	 	(ii)	 	full authority and all necessary consents to enter into and perform its obligations under this document.

	 	(b)	 	Compliance with laws: The execution, delivery and performance by the Company of this
document does not contravene to a material extent:

	 	(i)	 	any applicable law, regulation,
authorisation, ruling, judgment, order or decree of any government agency, including the
Listing Rules;
	 
	 	(ii)	 	the Constitution; and
	 
	 	(iii)	 	any encumbrance or other material agreement
which is binding on the Company.

	 	(c)	 	Secondary sales: The Company is relying on the Case 1 exemption in section 708A(5) of
the Corporations Act in relation to the Shares issued under this document and:

	 	(i)	 	the
Shares issued under this document will be in a class of securities that:

	 	(A)	 	are quoted
securities (as defined in the Corporations Act) of the Company at all times in; and
	 
	 	(B)	 	are
quoted on a financial market operated by ASX without being suspended from trading for more
than a total of five trading days during,

 

 

	 	the 12 months before the date of issue of the Shares issued under this document; and

	 	(ii)	 	no:

	 	(A)	 	exemption under section 111AS or 111AT of the Corporations Act; or
	 
	 	(B)	 	order under sections 340 or 341 of the Corporations Act,
	 
	 	does or will cover the Company, or any person, as
a director or auditor of the Company, at any time in the 12 months before the issue of the
Shares issued under this document; and

	 	(iii)	 	ASIC has not, and will not before the date of
issue of the Shares issued under this document, make a determination for contravention by the
Company within the previous 12 months of any of the provisions listed in section 708A(2) of
the Corporations Act; and
	 
	 	(iv)	 	each offer for sale and each sale of Shares under this document
will not be an offer or sale to which sections 707(3) or 707(4) of the Corporations Act
applies so as to require the offeror or seller to prepare and lodge with ASIC a prospectus or
other document relating to the offer or sale.

	 	(d)	 	Insolvency:

	 	(i)	 	No meeting has been convened, resolution proposed, petition presented or order made for
the winding up of the Company.
	 
	 	(ii)	 	No receiver, receiver and manager, provisional liquidator,
liquidator or other officer of the Court has been appointed in relation to all or any material
assets of the Company.
	 
	 	(iii)	 	The Company is not insolvent within the meaning of section
95 of the Corporations Act.
	 
	 	(iv)	 	The Company has not stopped paying its debts as and when
they become due and payable.
	 
	 	(v)	 	The Company is not subject to voluntary administration under
Part 5.3A of the Corporations Act.

	 	(e)	 	Financial statements: The most recent financial statements lodged
by the Company with ASX in accordance with the Listing Rules give a
true and fair view of the financial position, assets, liabilities and
profits and losses of the Company as at the relevant balance date and
are not misleading or deceptive in any material respect.
	 
	 	(f)	 	Material adverse effect: no Material Adverse Effect has occurred
since 1 September 2005.
	 
	 	(g)	 	Litigation:

	 	(i)	 	The Company is not a party to any material pending or actual
prosecution, litigation, arbitration or dispute resolution
proceedings

 

 

	 	 	 	nor is the Company a party to any investigation, audit
or other inquiry by a governmental agency.
	 
	 	(ii)	 	To the best of the Company’s knowledge, information and
belief, there are no proceedings, investigations, audits or other
inquiries of the type referred to in clause 9.2(g)(i) threatened
against the Company nor any disputes which may or might give rise
to any such proceedings.

	 	(h)	 	Security interests: all security interests over the assets of the Company have been
disclosed to the ASX by the Company.
	 
	 	(i)	 	Material contracts: all material agreements or
arrangements which are binding on the Company have been disclosed to the ASX by the
Company.
	 
	 	(j)	 	Continuous disclosure: the Company has complied with the
continuous disclosure requirements under the Listing Rules.

	7	 	Termination
	 
	 	 	If a Material Adverse Effect occurs at any time from the date of
this document to (but not including) the First Closing Date, Dr Pace
may terminate this document by providing written notice to the
Company on or prior to the First Closing Date.
	 
	8	 	Dr Pace Warranties
	 
	8.1	 	Giving of Warranties

	 	(a)	 	Dr Pace gives the Dr Pace Warranties in favour of the Company
on the date of this document and on the First Closing Date.

	 
	 	(b)	 	Dr Pace acknowledge that the Company has entered into this
document in reliance on Dr Pace Warranties.

	8.2	 	Dr Pace Warranties

	 	(a)	 	Compliance with laws: The execution, delivery and performance
by Dr Pace of this document does not contravene to a material extent
any applicable law, regulation, authorisation, ruling, judgment, order
or decree of any government agency.
	 
	 	(b)	 	Investor in Australia: If in Australia, Dr Pace is either a “Sophisticated Investor”
within the meaning of section 708(8) or a “Professional Investor” within the meaning of
section 708(11) of the Corporations Act.
	 
	 	(c)	 	Experience: Dr Pace is experienced in
evaluating and investing in private placement transactions of securities of companies such
as the Company, and has such knowledge and experience in financial and business matters
such Dr Pace is capable of evaluating the merits and risks of the prospective investment in
the Company, and has the ability to bear the economic risks of the investment.

 

 

	 	(d)	 	Accredited investor: Dr Pace is an “accredited investor” within the meaning of
Securities and Exchange Commission Rule 501 of Regulation D, as presently in effect, under
the Securities Act.
	 
	 	(e)	 	Purchase entirely for own account : Dr Pace is acquiring the Shares
and Options for investment for Dr Pace’s own account, not as a nominee or agent, and not
with the view to, or for resale in connection with, any distribution thereof. Dr Pace
further represents that he does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participation to any third person
with respect to any of the Shares and Options.
	 
	 	(f)	 	Restricted securities: Dr Pace acknowledges that the Shares and
Options must be held indefinitely unless subsequently registered under
the Securities Act or an exemption from such registration is
available. Dr Pace is aware of the provisions of Rule 144 promulgated under the
Securities Act which permit limited resale of shares purchased in
a private placement subject to the satisfaction of certain
conditions; among the conditions for use of Rule 144 may be the
availability of current information to the public about the
Company.
	 
	 	(g)	 	Reliance upon Dr Pace’s representations : Dr Pace understands that
the Shares and Options have not been registered under the Securities
Act by reason of a specific exemption from the registration provisions
of the Securities Act which depends upon, among other things, the bona
fide nature of the investment intent as expressed herein. Dr Pace
understands and acknowledges that the offering of the Shares and
Options pursuant to this document will not, and any issuance of Shares
and Options on conversion may not, be registered under the Securities
Act on the ground that the sale provided for in this document and the
issuance of securities hereunder is exempt from the registration
requirements of the Securities Act.
	 
	 	(h)	 	No disclosure document: Dr Pace acknowledges that no disclosure
document has been prepared in connection with the offer to issue
Shares and Options under this document.

	9	 	Dr Pace Covenants

	 	(a)	 	Dr Pace agrees that, in the future, if he decides to sell or otherwise transfer any
Shares or Options acquired under this document, he will only do so, and they will inform
such other person that it may only do so, if the offer and sale of such Shares or Options
are:

	 	(i)	 	registered under the Securities Act (which Dr Pace acknowledge the Company has no
obligation to do);
	 
	 	(ii)	 	made in a transaction exempt from the registration requirements of
the Securities Act; or

 

 

	 	(iii)	 	made in regular brokered transactions on the ASX or
otherwise outside the United States in accordance with
Regulation S under the Securities Act.

	 	(b)	 	Except for the sale of the Shares or Options in regular brokered
transactions on the ASX, Dr Pace agrees that they will notify any
person to whom any Shares or Options acquired under this document are
sold or otherwise transferred, prior to any such transfer, of the
applicability to such person of the provisions of the immediately
preceding paragraph.

	10	 	Notices
	 
	10.1	 	General
	 
	 	 	A notice, demand, certification, process or other communication
relating to this agreement must be in writing in English and may be
given by an agent of the sender.
	 
	10.2	 	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
	 
	 	(d)	 	sent by fax to the
party’s current fax number for notices.

	10.3	 	Particulars for delivery of notices

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

	 	 	 	 	 
	 

	 	Company:	 	 
	 

	 	Address:

Fax:
	 	Level 2, The Portal Building, 1 Breakfast Creek Road,
 Newstead, Queensland
4006

+61 7 3250 1299
	 
	 

	 	Attention:
	 	David Smith, Company Secretary
	 
	 	 	 	 
	 

	 	Dr Pace:	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	6 Robinson Park, Winchester, MA
01890,
 United States of America
	 

	 	 Email:	 	gwpace@comcast.net
	 

	 	Fax:
	 	+1 781 756 0420
	 

	 	Attention:
	 	Gary Pace

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

 

 

	10.4	 	Communications by post
	 
	 	 	Subject to clause 10.6, a communication is given if posted:

	 	(a)	 	within Australia to an Australian address, two Business Days after posting; or
	 
	 	(b)	 	in
any other case, three Business Days after posting.

	10.5	 	Communications by fax

	 	 	Subject to clause 10.6, 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 addressee. That report is conclusive evidence that the
addressee received the fax in full at the time indicated on that
report.
	 
	10.6	 	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.

	10.7	 	Communications by email
	 
	 	 	Subject to clause 10.6, if a communication is emailed, a delivery
confirmation report received by the sender, which records the time
that the email was delivered to the addressee’s last notified email
address is prima facie evidence of its receipt by the addressee,
unless the sender receives a delivery failure notification, indicating
that the electronic mail has not been delivered to the addressee.
	 
	10.8	 	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 10 or in
accordance with any applicable law.
	 
	11	 	GST
	 
	11.1	 	Consideration GST exclusive
	 
	 	 	Unless otherwise expressly stated, all prices or other sums
payable or consideration to be provided under this document are
exclusive of GST.
	 
	11.2	 	Payment of GST
	 
	 	 	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 this document, the recipient will pay to the supplier an
amount equal to the GST payable on the supply.

 

 

	11.3	 	Timing of GST payment
	 
	 	 	The recipient will pay the amount referred to in clause 11.2 in
addition to and at the same time that the consideration for the supply
is to be provided under this document.
	 
	11.4	 	Tax invoice
	 
	 	 	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 clause 11.2 . The recipient can withhold payment of the amount
until the supplier provides a tax invoice or an adjustment note, as
appropriate.
	 
	12	 	General
	 
	12.1	 	Amendment
	 
	 	 	This document may only be varied or replaced by a document
executed by the parties.
	 
	12.2	 	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.

	12.3	 	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.
	 
	12.4	 	Counterparts
	 
	 	 	This document may consist of a number of counterparts and,
if so, the counterparts taken together constitute one
document.
	 
	12.5	 	Entire understanding
	 
	 	 	This document contains the entire understanding between the
parties as to the subject matter of this document and supersedes all
previous agreements in respect of the subject matter of this document.
	 
	12.6	 	Governing law

	 	(a)	 	This document is governed by and is to be construed in
accordance with the laws applicable in Queensland, Australia.

	 
	 	(b)	 	Each party irrevocably and unconditionally submits to the
exclusive jurisdiction of the courts of Queensland, Australia 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.

 

 

	Schedule 1

	Option Terms 

	1	 	Exercise rights

	 	 	Each Option entitles an Optionholder to subscribe for one Share.

	2	 	Exercise Price

	 	 	The exercise price for each Option is $0.84.

	3	 	Exercise of Options

	 	(a)	 	An Optionholder may elect to exercise all or part of their
Options at any time prior to the Option Expiry Date by lodging an
Exercise Notice with the Share Registry.
	 
	 	(b)	 	The Options may be exercised in parcels of not less than 500
Options (unless the holding of Options is less than 500, in which
case the entire holding may be exercised).
	 
	 	(c)	 	If an Optionholder chooses to exercise all or part of their
Options, the Exercise Notice must be accompanied by the subscription
monies for the relevant Shares, being the number of Options an
Optionholder wishes to exercise multiplied by the Option Exercise
Price.

	4	 	Issue of Shares

	 	(a)	 	Upon exercise of an Option, the Company will, within the
time period required by the Listing Rules, issue to the
Optionholder the relevant number of Shares.
	 
	 	(b)	 	All Shares issued upon exercise of the Options in accordance with
these terms will rank equally in all respects with issued Shares.

	5	 	Trading

	 	(a)	 	The Company will apply for Official Quotation of the Options
on the ASX. If Official Quotation is granted, Optionholders will be able to
trade their Options independently from any Shares held by them.
	 
	 	(b)	 	There is no requirement for an Optionholder to hold Shares.

 

 

	6	 	New Issues

	 	(a)	 	Optionholders will not be entitled to participate in new issues of Shares to
Shareholders (including bonus issues and other pro rata issues).
	 
	 	(b)	 	The Company will
ensure that, for the purpose of determining entitlements to any such new issues,
Optionholders will be notified of the proposed issue at least 7 Business Days before the
record date of any proposed issue.

	7	 	Re-organisation of Capital

If there is a re-organisation of the issued capital of the Company
(including consolidation, subdivision, reduction, return or cancellation),
the terms of the Options and the rights of the Optionholder will be amended
to the extent necessary to comply with the Listing Rules applying to a
re-organisation of capital at the time of the re-organisation.

 

 

	 	 	 	 	 	 	 
	Executed as an agreement.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Executed by Dr Pace

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/
Gary W. Pace

	 	 	 	 	 	/s/ David Smith 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Witness
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	David Smith
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Names of Witness (print)
	Executed by Peplin Limited

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/
Cherrell Hirst 

	 	 	 	 	 	/s/ Michael Aldridge
	 

	 	 	 	 	 	 
	Director

	 	 	 	 	 	Director
	 
	 	 	 	 	 	 
	/s/ Cherrell Hirst 

	 	 	 	 	 	Michael Aldridge
	 

	 	 	 	 	 	 
	Name of Director

	 	 	 	 	 	Name of Director (print)
	(print)

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