Document:

exv10w25

 

Exhibit 10.25

LOAN AGREEMENT

     THIS LOAN AGREEMENT, dated as of 28 December, 2007 (as amended, restated, supplemented or
otherwise modified from time to time (this “Agreement”)) is among GENERAL ELECTRIC CAPITAL
CORPORATION (“GECC”), in its capacity as agent for Lenders (as defined below), together
with its successors and assigns in such capacity, “Agent”), GECC, in its capacity
as security trustee for Lenders (as defined below), together with its successors and assigns in
such capacity, “Security Trustee”), GECC and the other financial institutions who are
listed in Part 2 of Schedule A to this Agreement or hereafter become parties to this Agreement as
lenders (collectively the “Lenders”, and each individually, a “Lender”), PEPLIN
LIMITED (ACN 090 819 275), a corporation registered in Queensland, Australia, (“Borrower”),
PEPLIN, INC. (“Parent”) and the other entities listed in Part 1 of Schedule A to this
Agreement and the other entities or persons, if any, who hereafter become parties to this
Agreement as guarantors (each a “Guarantor” and collectively, the “Guarantors”, and
together with Borrower, each a “Loan Party” and collectively, “Loan Parties”).

RECITALS

     Borrower wishes to borrow funds from Lenders, and Lenders have, at the request of all Loan
Parties, agreed to make a term loan and other extensions of credit, severally and not jointly, to
Borrower from time to time pursuant to the terms and conditions of this Agreement.

AGREEMENT

Loan Parties, Agent, Security Trustee and Lenders agree as follows:

1. DEFINITIONS.

     As used in this Agreement, all capitalized terms shall have the definitions as provided
herein. Any accounting term used but not defined herein shall be construed in accordance with
generally accepted accounting principles in Australia, as in effect from time to time
(“GAAP”) and all calculations shall be made in accordance with GAAP. The term “financial
statements” shall include the accompanying notes and schedules. If and when Parent is listed on
NASDAQ references to “GAAP” shall be to generally accepted accounting principles in the United
States of America. A reference to “$”, “USD$” or “dollars” means the lawful currency of the United
State of America.

2. LOANS AND TERMS OF PAYMENT.

     2.1. Promise to Pay. Borrower promises to pay Agent, for the ratable accounts of Lenders,
when due pursuant to the terms hereof, the aggregate unpaid principal amount of all loans, advances
and other extensions of credit made severally by the Lenders to Borrower, together with interest on
the unpaid principal amount of such loans, advances and other extensions of credit at the interest
rates set forth herein.

     2.2. Term Loan.

     (a) Commitment. Subject to the terms and conditions hereof, each Lender,
severally, but not jointly, agrees to make a term loan (the “Term Loan”) to Borrower
on the Closing Date (as defined below) in an aggregate principal amount not to exceed such
Lender’s commitment as identified on Schedule A hereto (such commitment of each Lender as it
may be amended to
reflect transfers made in accordance with Schedule D or terminated or reduced in
accordance with

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this Agreement, its “Commitment”, and the aggregate of all such
commitments, the “Commitments”). Notwithstanding the foregoing, the aggregate
principal amount of the Term Loan made hereunder shall not exceed USD$15,000,000 (the
“Total Commitment”). Each Lender’s obligation to fund the Term Loan shall be
limited to such Lender’s Pro Rata Share (as defined below) of the Term Loan. If the Term
Loan is less than USD $15,000,000 then the Total Commitment is automatically cancelled on
the Closing Date by a corresponding amount.

     (b) Method of Borrowing. When Borrower desires the Term Loan, Borrower will
notify Agent (which notice shall be irrevocable) by facsimile (or by telephone, provided
that such telephonic notice shall be promptly confirmed in writing, but in any event on or
before the following Business Day) on the date that is one (1) Business Day prior to the day
the requested Closing Date (or such shorter period of time as Agent may agree). Agent and
Lenders may act without liability upon the basis of such written or telephonic notice
believed by Agent to be from any authorized officer of Borrower. Agent and Lenders shall
have no duty to verify the authenticity of the signature appearing on any such written
notice.

     (c) Funding of Term Loans. Promptly after receiving a request for the Term
Loan, Agent shall notify each Lender of the contents of such request and such Lender’s Pro
Rata Share of the requested Term Loan. Upon the terms and subject to the conditions set
forth herein, each Lender, severally and not jointly, shall make available to Agent its Pro
Rata Share of the requested Term Loan, in lawful money of the United States of America in
immediately available funds, to the Collection Account (as defined below) prior to 11:00
a.m. New York time on the specified date. Agent shall, unless it shall have determined that
one of the conditions set forth in Section 4.1 or 4.2, as applicable, has not been
satisfied, by 4:00 p.m. New York time on such day, credit the amounts received by it in like
funds to Borrower by wire transfer to, unless otherwise specified in a Disbursement Letter
(as defined below), the following deposit account of Borrower (or such other deposit account
as specified in writing by an authorized officer of Borrower and acceptable to Agent) (the
“Designated Deposit Account”):

Bank Name: Commonwealth Bank of Australia

Bank Address: 48 Martin Place, Sydney, Australia

ABA#: 062-000

Account #: 100617627

Account Name: Peplin Limited

SWIFT: CTBAAU2S

     (d) Notes. Without limiting any provision of this Agreement, the Term Loan of
each Lender shall, if requested by the Lender, be further evidenced by a promissory note
substantially in the form of Exhibit A hereto (each a “Note” and,
collectively, the “Notes”), and Borrower shall execute and deliver a Note to each
Lender. Each Note shall represent the obligation of Borrower to pay to such Lender the
lesser of (a) the aggregate unpaid principal amount of the Term Loan made by such Lender to
or on behalf of the Borrower under this Agreement or (b) the amount of such Lender’s
Commitment, in each case together with interest thereon as prescribed in Section 2.3(b).

     (e) Agent May Assume Funding. Unless Agent shall have received notice from a
Lender prior to the requested Closing Date that such Lender will not make available to Agent
such Lender’s Pro Rata Share of the Term Loan, Agent may assume that such Lender has made
such amount available to it on the Closing Date in accordance with subsection (c) of this
Section
2.2, and may (but shall not be obligated to), in reliance upon such assumption, make
available a corresponding amount for the account of Borrower on the Closing Date. If and to
the extent that

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such Lender shall not have so made such amount available to Agent, such
Lender and Borrower severally agree to repay to Agent forthwith on demand such corresponding
amount together with interest thereon, for each day from the Closing Date until the day such
amount is repaid to Agent, at (i) in the case of Borrower, a rate per annum equal to the
interest rate applicable thereto pursuant to Section 2.3(a), and (ii) in the case of such
Lender, a floating rate per annum equal to, for each day from the Closing Date until such
amount is reimbursed to Agent, the weighted average of the rates on overnight federal funds
transactions among members of the Federal Reserve System, as determined by Agent in its sole
discretion (the “Federal Funds Rate”) for the first Business Day and thereafter, at
the interest rate applicable to the Term Loan. If such Lender shall repay such
corresponding amount to Agent, the amount so repaid shall constitute such Lender’s loan
included in such Term Loan for purposes of this Agreement.

     2.3. Interest and Repayment.

     (a) Interest. The Term Loan shall accrue interest in arrears from the date
made until the Term Loan is fully repaid at a fixed per annum rate of interest equal to
8.50%. All computations of interest and fees calculated on a per annum basis shall be made
by Agent on the basis of a 360-day year, consisting of twelve 30-day months. Each
determination of an interest rate or the amount of a fee hereunder shall be made by Agent
and shall be conclusive, binding and final for all purposes, absent manifest error.

     (b) Payments of Principal and Interest. Borrower shall pay to the Agent, for
the ratable benefit of the Lenders,

(i) three (3) consecutive payments of interest only (payable monthly in arrears) at the rate
of interest determined in accordance with Section 2.3(a) on the first day of each calendar
month (a “Scheduled Payment Date”) commencing on 1 February 2008; and

(ii) thirty three (33) equal consecutive payments of principal and interest (payable
monthly in arrears) at the rate of interest determined in accordance with Section 2.3(a) (a
“Scheduled Payment”) on each Scheduled Payment Date commencing on 1 May 2008, with
the amount of each such payment of principal and interest to be as set out in Part 1 of
Schedule B and otherwise calculated by the Agent to be sufficient to fully amortize the
principal and interest due with respect to the Term Loan over such repayment period,

PROVIDED THAT, if the Agent is satisfied that the Borrower has after the Closing Date
received at least USD$30,000,000 in unrestricted cash proceeds net of all fees and costs
(other than those incurred and paid prior to Closing Date) from the sale and issuance of the
Parent’s capital stock, which equity issuance shall be on terms and conditions, and subject
to documentation, reasonably satisfactory to Agent (“Additional Capital Raise”), on
or before 31 March 2008 then the Agent shall issue the Borrower (with a copy to each Lender)
with a written notice confirming that such equity issuance satisfies these requirements.
Upon the issuance of such confirmation notice, the interest only period in clause 2.3(b)(i)
shall be extended for an additional three (3) month period (to an aggregate interest only
period of six (6) months) and making a corresponding adjustment to the amounts of principal
and interest payable on the first day of each of the remaining months under clause
2.3(b)(ii) such that those amounts will thereafter be as set out in Part 2 of Schedule B.

Notwithstanding the foregoing, all unpaid principal and accrued interest with respect to a
Term Loan is due and payable in full to Agent, for the ratable benefit of Lenders, on the
earlier of (A) 1 January 2011 or (B) the date that the Term Loan otherwise becomes due and
payable hereunder,

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whether by acceleration of the Obligations (defined below) pursuant to
Section 8.2 or otherwise (the earlier of (A) or (B), the “Applicable Term Loan Maturity
Date”). Each Scheduled Payment, when paid, shall be applied first to the payment of
accrued and unpaid interest on the Term Loan and then to unpaid principal balance of the
Term Loan. Without limiting the foregoing, all Obligations shall be due and payable on the
Applicable Term Loan Maturity Date. “Obligations” means the Term Loan and all other
debt, monetary liabilities, obligations and liabilities of any kind whatsoever of Borrower
or any other Loan Party to any one or more of the Agent, Security Trustee and any Lender
(each a “Finance Party”) arising under or in connection with the Debt Documents
irrespective of whether the debts, liabilities or obligations (i) are for principal,
interest, fees, charges, taxes (other than any tax on the overall net income of a Finance
Party or any Australian Interest Withholding Tax not exceeding 10%), damages (whether for
breach of contract or tort or incurred on any other ground), losses, costs or expenses,
prepayment of premiums, indemnities, reimbursements or other sums; (ii) accrue after the
filing of any petition in bankruptcy or after the commencement of any insolvency,
reorganization or similar proceedings, and whether or not allowed in such case or
proceeding; (iii) are actual, prospective, contingent or otherwise; (iv) are now existing or
arising in the future; (v) are at any time ascertained or unascertained; (vi) are owed or
incurred by or on the account of any Loan Party alone, or severally or jointly with any
other person; (vii) are owed to or incurred for the account of any Finance Party alone, or
severally or jointly with any other person; (viii) are owed to any other person as agent
(whether disclosed or not) for or on behalf of any Finance Party; (ix) are owed to or
incurred for the account of any Finance Party directly or as a result of: (a) the assignment
or novation of any Finance Party of any debt or liability of any Loan Party (whether by way
of assignment transfer or otherwise); or (b) any other dealing with any such debt or
liability; or (x) comprise any combination of the above.

     (c) Interim Interest Payment. Borrower shall make an advance payment of
interest on the Closing Date for the period from such date to and including 31 December
2007.

     (d) No Reborrowing. Once the Term Loan is repaid or prepaid, it cannot be
reborrowed.

     (e) Payments. All payments (including prepayments) to be made by any Loan
Party under any Debt Document shall be made in immediately available funds in U.S. dollars,
without set off or counterclaim to the Collection Account (as defined below) before 11:00
a.m. New York time on the date when due. All payments received by Agent after 11:00 a.m.
New York time on any Business Day or at any time on a day that is not a Business Day shall
be deemed to be received on the next Business Day. Whenever any payment required under this
Agreement would otherwise be due on a date that is not a Business Day, such payment shall
instead be due on the next Business Day, and additional fees or interest, as the case may
be, shall accrue and be payable for the period of such extension. The payment of any
Scheduled Payment prior to its due date shall be deemed to have been received on such due
date for the purposes of calculating interest on that amount hereunder. If requested by
Agent, and agreed to by Borrower (such agreement not be unreasonably withheld), all
regularly scheduled payments due to Agent and Lenders under Section 2.3(b) shall be effected
by automatic debit of the appropriate funds from Borrower’s operating account specified on
the EPS set up form, the form of which is attached hereto as Exhibit E (the “EPS Setup
Form”). As used herein, the term “Collection Account”
means the following account of Agent (or such other account as Agent shall identify to
Borrower in writing):

Bank Name: Deutsche Bank

Bank Address: New York, NY

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ABA Number: 021 001 033

Account Number: 50271079

Account Name: GECC HH Cash Flow Collections

Ref: Peplin / HFS2708

     (f) Withholdings and Increased Costs. Except for Australian Interest
Withholding Tax, all payments shall be made free and clear of any taxes, withholdings,
duties, impositions or other charges (other than taxes on the overall net income of any
Lender and comparable taxes), such that Agent and Lenders will receive the entire amount of
any Obligations (as defined below), regardless of source of payment. If Agent or any Lender
shall have determined that the introduction of or any change in, after the date hereof, any
law, treaty, governmental (or quasi-governmental) rule, regulation, guideline or order
reduces the rate of return on Agent or such Lender’s capital as a consequence of its
obligations hereunder or increases the cost to Agent or such Lender of agreeing to make or
making, funding or maintaining any Term Loan, then Borrower shall from time to time upon
demand by Agent or such Lender (with a copy of such demand to Agent) promptly pay to Agent
for its own account or for the account of such Lender, as the case may be, additional
amounts sufficient to compensate Agent or such Lender for such reduction or for such
increased cost. A certificate as to the amount of such reduction or such increased cost
submitted by Agent or such Lender (with a copy to Agent) to Borrower shall be conclusive and
binding on Borrower, absent manifest error, provided that, neither Agent nor any Lender
shall be entitled to payment of any amounts under this Section 2.3(f) unless it has
delivered such certificate to Borrower within 180 days after the occurrence of the changes
or events giving rise to the increased costs to, or reduction in the amounts received by,
Agent or such Lender. This provision shall survive the termination of this Agreement. For
purposes of this Agreement “Australian Interest Withholding Tax” means any
Australian tax required (by any law existing at the date of this Agreement) to be withheld
or deducted from any “interest” (as defined in Division 11A of Part III of the Income Tax
Assessment Act 1936 (Cth)).

     (g) Australian Interest Withholding Tax. If solely as a result of Australian
Interest Withholding Tax Borrower is required to withhold or deduct an amount of any
interest paid or to be paid under this clause 2.3 then, to the extent such amount does not
exceed 10% of the interest payment, the Borrower may withhold or deduct such amount without
the need to pay to the Agent for the account of the Lenders any additional amounts to
compensate the Lenders for such reduction in the interest payment, PROVIDED that the
Borrower (i) within the timeframes as required by applicable law pays the amount deducted or
withheld to the Australian Government Agency responsible for administering Australian
Interest Withholding Tax and (ii) provides to the Agent a payment receipt and other
supporting evidence of that payment to the Australian Government Agency and, if the Agent
requests, such other documentation that the Borrower has or may reasonably obtain to enable
a Lender to claim any credit or relief to which it may be entitled in any jurisdiction with
respect to such Australian Interest Withholding Tax.

     (h) Loan Records. Each Lender shall maintain in accordance with its usual
practice accounts evidencing the Obligations of Borrower to such Lender resulting from such
Lender’s Pro Rata Share of the Term Loan, including the amounts of principal and interest
payable and paid to such Lender from time to time under this Agreement. Agent shall
maintain in accordance
with its usual practice a loan account on its books to record the Term Loan and any
other extensions of credit made by Lenders hereunder, and all payments thereon made by
Borrower. The entries made in the such accounts shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the Obligations
recorded therein; provided, however, that no error in such account and no
failure of any Lender or Agent to maintain any

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such account shall affect the obligations of
Borrower to repay the Obligations in accordance with their terms.

     2.4. Prepayments. Borrower can voluntarily prepay, upon three (3) Business Days’ prior
written notice to Agent, the Term Loan in full, but not in part. Upon the date of (a) any
voluntary prepayment of the Term Loan in accordance with the immediately preceding sentence or (b)
any mandatory prepayment of a Term Loan required under this Agreement (whether by acceleration of
the Obligations pursuant to Section 8.2 or otherwise), Borrower shall pay to Agent, for the ratable
benefit of the Lenders, a sum equal to (i) all outstanding principal plus accrued interest with
respect to the such Term Loan and(ii) the Final Payment Fee (as such term is defined in Section
2.7(b)).

     2.5. Late Fees. If Agent does not receive any Scheduled Payment or other payment under any
Debt Document from any Loan Party within 3 days after its due date, then, at Agent’s election, such
Loan Party agrees to pay to Agent for the ratable benefit of all Lenders, a late fee equal to (a)
5% of the amount of such unpaid payment or (b) such lesser amount that, if paid, would not cause
the interest and fees paid by such Loan Party under this Agreement to exceed the Maximum Lawful
Rate (as defined below) (the “Late Fee”).

     2.6. Default Rate. All Term Loans and other Obligations shall bear interest, at the option of
Agent or upon the request of the Requisite Lenders (as defined below), from and after the
occurrence and during the continuation of an Event of Default (as defined below), at a rate equal
to the lesser of (a) 5% per annum above the rate of interest applicable to such Obligations as set
forth in Section 2.3(a) immediately prior to the occurrence of the Event of Default and (b) the
Maximum Lawful Rate (the “Default Rate”). The application of the Default Rate shall not be
interpreted or deemed to extend any cure period or waive any Default (as defined below) or Event of
Default or otherwise limit the Agent’s or any Lender’s right or remedies hereunder. All interest
payable at the Default Rate shall be payable on demand. “Default” means an Event of Default
or any event, condition or circumstance which would become an Event of Default on the giving of
notice (whether or not notice is actually given), the expiry of time, the satisfaction or
non-satisfaction of any condition, or any combination of the aforementioned.

     2.7. Lender Fees.

     (a) Upfront Payment. Prior to the advance of the Term Loan, in consideration
for Lenders’ agreement to underwrite the transaction contemplated by this Agreement,
Borrower has paid to Agent, for the ratable benefit of Lenders, and Agent hereby
acknowledges receipt of, a payment in the amount of $75,000 (the “Upfront Payment”).
The Upfront Payment shall be applied as follows: (a) a portion of the Upfront Payment in an
amount equal to $37,500 has been fully earned by Lenders, in accordance with their Pro Rata
Shares as a non-refundable underwriting fee, and (b) the balance of the Upfront Payment in
an amount equal to $37,500 shall be applied as follows: (1) to the initial interest payments
(including interim interest) due pursuant to Section 2.3(b)(i) or Section 2.3(c) in the
order of maturity until paid in full and (2) the remainder, if any, to the initial Scheduled
Payment(s) due pursuant to Section 2.3(b)(ii) in the order of maturity.

     (b) Final Payment Fee. Upon the repayment in full of all outstanding principal
amounts of the Term Loan (whether voluntarily, scheduled or mandatory or otherwise),
Borrower shall pay to Agent, for the ratable accounts of Lenders, a fee equal to 4.0% of the
original principal amount of the Term Loan as funded on the Closing Date, or, if an
Additional Capital Raise is completed on or before 31 March 2008, 3.0% of the original
principal amount of the Term Loan as funded on the Closing Date.

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     2.8. Maximum Lawful Rate. Anything herein, any Note or any other Debt Document (as defined
below) to the contrary notwithstanding, the obligations of Loan Parties hereunder and thereunder
shall be subject to the limitation that payments of interest shall not be required, for any period
for which interest is computed hereunder, to the extent (but only to the extent) that contracting
for or receiving such payment by Agent and Lenders would be contrary to the provisions of any law
applicable to Agent and Lenders limiting the highest rate of interest which may be lawfully
contracted for, charged or received by Agent and Lenders, and in such event Loan Parties shall pay
Agent and Lenders interest at the highest rate permitted by applicable law (“Maximum Lawful
Rate”); provided, however, that if at any time thereafter the rate of interest
payable hereunder or thereunder is less than the Maximum Lawful Rate, Loan Parties shall continue
to pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received
by Agent and Lenders is equal to the total interest that would have been received had the interest
payable hereunder been (but for the operation of this paragraph) the interest rate payable since
the making of the Initial Term Loan as otherwise provided in this Agreement, any Note or any other
Debt Document.

     2.9 Authorization and Issuance of the Warrants. Parent has duly authorized the issuance to
Lenders (or their designees) of equity warrants over unissued shares of common stock in the Parent
substantially in the form of the warrant attached hereto as Schedule E (collectively, the
“Warrants”) evidencing Lenders’ (or their respective designees) right to have issued by the
Parent and acquire their respective Pro Rata Share of up to 58,987 shares of common stock of the
Parent at an exercise price of USD$15.26 per share. The exercise period shall expire five (5)
years from the date such Warrant is issued.

3. [INTENTIONALLY OMITTED]

4. CONDITIONS OF CREDIT EXTENSION

     4.1. Conditions Precedent to Closing Date. No Lender shall be obligated to make the Term
Loan, or to take, fulfill, or perform any other action hereunder, until the following have been
delivered to the Agent (the date on which the Lenders make the Term Loan after all such conditions
shall have been satisfied in a manner satisfactory to Agent or waived in accordance with this
Agreement, the “Closing Date”):

     (a) a counterpart of this Agreement duly executed by each Loan Party;

     (b) a certificate executed by the Secretary or a Director of each Loan Party,
substantially in the form attached hereto as Exhibit B (the “Secretary’s
Certificate”), providing certain verifications and certifications and attaching (i) such
Loan Party’s board resolutions approving the transactions contemplated by this Agreement and
the other Debt Documents and (if applicable) power of attorney under which such documents
are signed, and (ii) such Loan Party’s constituent or governing documents including, in the
case of Peplin Research, the Trust Deed (“Trust Deed” means the document entered
into by Peplin Research Pty Ltd that creates the
Peplin Trust and appoints Peplin Research Pty Ltd as trustee of the Peplin Trust, as
amended from time to time);

     (c) Notes duly executed by Borrower in favor of each applicable Lender;

     (d) ASIC Forms 309 and 350 with respect to the Australian Group Charge and the
Australian Featherweight Charge (each as defined below) from the Australian Loan Parties, an
Irish Companies Registration Office Form C1 with respect to the Irish Debenture dated on or
about the Closing Date granted by Peplin Ireland Limited in favour of the Security Trustee
(“Irish

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Debenture”) and the Irish Charge dated or on about the Closing Date granted
by the Borrower in favour of the Security Trustee over its shares in the Irish Loan Party
(“Irish
Charge”), filed copies of UCC financing statements, collateral assignments,
and terminations statements, with respect to the Collateral (as defined below) and any
document of title for any Collateral that is pledged, mortgaged or subject to a fixed charge
under the Debt Documents (including any stock or share certificate) and stock powers or
blank share transfers for any US stock or Australian or Irish shares forming part of the
Collateral. Each of the Borrower and Peplin Ireland Limited undertake to deliver to Security
Trustee the share certificate which validly and correctly evidences the Borrower’s 100%
shareholding in Peplin Ireland Limited, executed under seal, within 14 days after Closing
Date (or such longer period approved by Agent in its absolute discretion). For the purposes
of this Agreement “Collateral” means any and all assets of any Loan Party
(including, in the case of Peplin Research, the Peplin Trust) now owned or hereafter
acquired, upon which a lien or security interest is purported to be created by any Debt
Document), as Agent shall request. For the purposes of this Agreement “Australian Group
Charge” means a fixed and floating charge so entitled dated on or about the Closing Date
given by each Loan Party other than Peplin Ireland Limited and Peplin Operations USA, Inc.
in favour of the Security Trustee;

     (e) certificates of insurance evidencing the insurance coverage, and satisfactory
additional insured and lender loss payable endorsements, in each case as required pursuant
to Section 6.4 herein;

     (f) current UCC lien, judgment, bankruptcy and tax lien search results with respect to
the US Loan Parties, ASIC company and other Australian searches and equivalent searches with
respect to the Irish Loan Party, in each case demonstrating that there are no other security
interests or liens on the Collateral, other than Permitted Liens (as defined below);

     (g) a Warrant in favor of each Lender (or its designated representative), duly executed
by Borrower, substantially in the form set out in Schedule E;

     (h) (i) the Irish Debenture, the Irish Charge and Australian Group Charge in favour of
the Security Trustee granting security over all assets (including effective security over
the Intellectual Property proceeds) other than in the case of the Australian Loan Parties,
the Australian Excluded Assets (as defined below); (ii) a fixed and floating charge entitled
“Australian Featherweight Charge” dated on or about the Closing Date granted by each
Australian Loan Party in favour of the Security Trustee over the Australian Excluded Assets
(the “Australian Featherweight Charge”); and (iii) the Security Trust Deed dated on
or before the Closing Date between the Security Trustee as trustee of the Peplin Security
Trust, the other Finance Parties and each Loan Party (the “Security Trust Deed”);
each duly executed by each applicable Loan Party;

     (i) a certificate of good standing of each US Loan Party from the jurisdiction of such
Loan Party’s organization and a certificate of foreign qualification from each jurisdiction
where such Loan Party’s failure to be so qualified could reasonably be expected to have a
Material Adverse Effect (as defined below) in each case as of a recent date acceptable to
the Agent, and a certificate of registration for each Australian and Irish Loan Party in
each case certified as being current as of a recent date acceptable to Agent;

     (j) a landlord consent and/or bailee letter in favor of Agent and Security Trustee
executed by the landlord or bailee (as applicable) for any third party location where (a)
any Loan Party’s principal place of business (including 1 Breakfast Creek Road, Newstead,
Queensland), (b) any Loan Party’s books or records or (c) Collateral with a value in excess
of $50,000

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individually or with a value in excess of $100,000 in the aggregate, is located,
substantially in the form of which are attached hereto as Exhibit C-1 and
Exhibit C-2, as applicable (“Access Agreement”), or, if any such Access
Agreement is not executed on or before the Closing Date, the Agent is satisfied (including
by application of section 6.6) that the Loan Parties will use their best endeavours to
execute such agreements within 30 days after the Closing Date (or such longer period
approved by Agent in its absolute discretion);

     (k) a legal opinion of Loan Parties’ US and Australian counsel, and Lenders Irish
counsel, in favour of the Finance Parties, in form and substance satisfactory to Agent;

     (l) [Intentionally Omitted];

     (m) a completed perfection certificate, duly executed by each Loan Party, a form of
which Agent previously delivered to Borrower (the “Perfection Certificate”);

     (n) one or more Account Control Agreements (as defined below), in form and substance
reasonably acceptable to Agent, duly executed by the applicable Loan Parties and the
applicable depository or financial institution in favour of the Finance Parties, for each
deposit and securities account (other than accounts not subject to such a requirement as set
forth in Section 7.10) listed on the Perfection Certificate;

     (o) a guaranty, pledge and security agreement, in form and substance satisfactory to
Agent, executed by each US Loan Party guaranteeing the Term Loan and all other Obligations
owing to the Lenders and pledging to Security Trustee a security interest in (a) 100% of
the shares of the outstanding capital stock, of any class, of each Subsidiary (as defined
below) of that Loan Party (b) any and all Indebtedness (as defined below) owing to that Loan
Party from another Loan Party (which Indebtedness must be evidenced by way of a global
intra-group note on or before the Closing Date) and (c) all the other assets and
undertakings of that US Loan Party that constitute Collateral thereunder (the “US
Guaranty, Pledge and Security Agreement”). “Subsidiary” means, with respect to a
Loan Party, any entity the management of which is, directly or indirectly controlled by, or
of which an aggregate of more than 50% of the outstanding voting capital stock (or other
voting equity interest) is, at the time, owned or controlled, directly or indirectly by,
such Loan Party or one or more Subsidiaries of such Loan Party, and, unless the context
otherwise requires each reference to a Subsidiary herein shall be a reference to a
Subsidiary of Parent;

     (p) a Group Guaranty dated on or about the Closing Date (together with any other
guaranty that purports to provide for a guaranty of the Obligation, the “Guaranty”)
in favour of
the Finance Parties, in each case in form and substance satisfactory to Agent, executed
by each Guarantor other than the US Loan Parties (the “Group Guaranty”)

     (q) a disbursement instruction letter, in form and substance satisfactory to Agent,
addressed to Security Trustee and Agent, on behalf of itself and Lenders, and executed by
Borrower with respect to the disbursement on the Closing Date of the proceeds of the Term
Loan (the “Disbursement Letter”);

     (r) evidence that the Loan Parties have no outstanding Indebtedness other than the
letter of credit in favour of landlord of 1 Breakfast Creek Road, Newstead, Queensland,
Australia in the amount of $50,050.00 (“Breakfast LC”), Indebtedness under this
Agreement and Indebtedness owing to another Loan Party evidenced by the Global Intercompany
Note (as disclosed in Schedule C);

9

 

     (s) all other documents and instruments as Agent may reasonably deem necessary or
appropriate to effectuate the intent and purpose of this Agreement or may reasonably request
(together with the Agreement, Note, Warrant, the Perfection Certificate, the US Guaranty,
Pledge and Security Agreement, the Group Guaranty, the Australian Group Charge, the Irish
Debenture, the Irish Charge the Australian Featherweight Charge, the Security Trust Deed,
the Secretary’s Certificate and the Disbursement Letter, and all agreements, instruments,
documents and certificates executed and/or delivered to or in favor of a Finance Party from
time to time in connection with this Agreement, any of the foregoing documents, or the
transactions contemplated hereby, the “Debt Documents”);

     (t) Each Finance Party shall have received the fees required to be paid by Borrower, if
any, in the respective amounts specified in Section 2.7(a) or otherwise, any loan security
duty payable to an Australian government authority in relation to the execution of the Debt
Documents and Borrower shall have reimbursed each Finance Party for all fees, costs and
expenses of closing presented as of the date of this Agreement;

     (u) (i) all representations and warranties in Section 5 below shall be true as of the
date of the Agreement and the Closing Date; (ii) no Event of Default or any other event,
which with the giving of notice or the passage of time, or both, would constitute an Event
of Default (such event, a “Default”) has occurred and is continuing or will result
from the making of the Term Loan, and (iii) Agent shall have received a certificate from an
authorized officer of each Loan Party confirming each of the foregoing; and

     (v) Agent, shall have received such other documents, agreements, instruments or
information as Agent shall reasonably request.

     For the purposes of the foregoing “Intellectual Property” means any
intellectual property arising anywhere in the world owned or licensed by any Loan Party
including any and all copyright, trademark (and goodwill associated with such trademark),
servicemark (and goodwill associated with such servicemark), patent, design right, software,
trade secret and intangible rights of a similar nature of a Loan Party and any applications,
registrations, claims, products, awards, judgments, amendments, renewals, extensions,
improvements, continuations, reissues, reexaminations or divisions and insurance claims
related thereto now owned or licensed or hereafter acquired or licensed, or any claims for
damages by way of any past, present or future infringement of any of the foregoing; and
“Australian Excluded Assets” means any such Intellectual Property of an Australian
Loan Party.

5. REPRESENTATIONS AND WARRANTIES OF LOAN PARTIES.

     Each Loan Party, jointly and severally, represents, warrants and covenants to each Finance
Party, as set out in Section 5.1 to Section 5.13 (inclusive), that:

     5.1. Due Organization and Authorization. Each Loan Party’s exact legal name is as set forth
in the Perfection Certificate and each Loan Party is, and will remain, duly organized, existing
and, for US Loan Parties, in good standing and, for other Loan Parties, registered under the laws
of the State of its organization as specified in the Perfection Certificate, has its chief
executive office at the location specified in the Perfection Certificate, and is, and will remain,
duly qualified and licensed in every jurisdiction where its ownership or lease of property or the
conduct of its business requires such qualification, except where the failure to be so qualified
and licensed could not reasonably be expected to have a Material Adverse Effect (as defined below).
This Agreement and the other Debt Documents have been duly authorized, executed and delivered by
each Loan Party and constitute legal, valid and binding

10

 

agreements enforceable in accordance with
their terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of equity, regardless of
whether considered in a proceeding in equity or at law and the time barring of claims and defences
of set-off or counterclaim. The execution, delivery and performance by each Loan Party of each
Debt Document executed or to be executed by it is in each case within such Loan Party’s powers. It
is acknowledged and agreed that references to “Debt Documents” in the foregoing provisions of this
section 5.1 and in section 5.3 are taken not to include the Warrant on the basis that corresponding
representations and warranties as to the Warrant are given in by the Parent in the Warrant itself.

As used in this Agreement, the term “Material Adverse Effect” shall mean a material adverse
effect on any of (a) the operations, business, assets, properties, or financial condition of the
Loan Parties, taken as a whole, (b) the ability of a Loan Party to perform any of its obligations
under any Debt Document to which it is a party, (c) the legality, validity or enforceability of any
Debt Document, (d) the rights and remedies of any Finance Party under any Debt Document or (e) the
validity, perfection or priority of any lien in favor of any Finance Party, on any of the
Collateral, except, with respect to perfection, as a result of the action or failure to act on the
part of any Finance Party.

     5.2. Required Consents. No filing, registration, qualification with, or approval, consent or
withholding of objections from, any governmental authority or instrumentality or any other entity
or person is required with respect to the entry into, or performance by any Loan Party of, any of
the Debt Documents, except the filing of, (i) the ASIC Forms 309 (and the ASIC Forms 350
subsequently) in respect of the Australian Group Charge and Australian Featherweight Charge and
(ii) the Form C1 in the Irish Companies Registration Office in respect of the Irish Debenture,
(iii) any already obtained and payment of loan security duty in an amount provided to a Finance
Party under Section 4.1(t) on the Closing Date, and (iv) the UCC-1’s in respect of the US Guaranty,
Pledge and Security Agreement.

     5.3. No Conflicts. The entry into, and performance by each Loan Party of, the Debt Documents
will not (a) violate any of the constituent or organizational documents of such Loan Party, (b)
violate any material law, rule, regulation, order, award or judgment applicable to such Loan Party,
or (c) result in any breach of or constitute a default under, or result in the acceleration of any
obligation or creation of any lien, claim or encumbrance on any of such Loan Party’s property
(except for liens in favor of the Agent and Security Trustee) pursuant to, any indenture, mortgage,
deed of trust, bank loan, credit agreement, or other Material Agreement (as defined below) to which
such Loan Party is a party. As used herein, “Material Agreement” shall mean (i) any
agreement or contract to which such Loan Party is a party as of the Closing Date and involving the
receipt or payment of amounts in the aggregate exceeding $250,000
per year, (ii) any agreement or contract to which such Loan Party becomes a party after
Closing Date and involving the receipt or payment of amounts in the aggregate exceeding $375,000
per year, and (iv) any agreement or contract to which such Loan Party is a party the termination of
which could reasonably be expected to have a Material Adverse Effect, but does not include any
employment contract or executive services agreement. A description of all Material Agreements as
of the Closing Date is set forth on Schedule C hereto.

     5.4. Litigation. There are no actions, suits, proceedings or investigations pending against
any Loan Party before any court, federal, state, provincial, municipal or other governmental
department, commission, board, bureau, agency or instrumentality, domestic or foreign, or any basis
thereof, that could reasonably be expected to have a Material Adverse Effect if adversely
determined to any Loan Party, or which questions the validity of the Debt Documents, or any action
to be taken pursuant to any of the foregoing, nor is any Loan Party aware, or through the exercise
of reasonable diligence should be aware, of reason to believe that any such actions, suits,
proceedings or investigations are threatened.

11

 

     5.5. Financial Statements. All financial statements delivered to Agent and Lenders pursuant
to Section 6.3 have been prepared, to the extent applicable, in accordance with GAAP (subject, in
the case of unaudited financial statements, to the absence of footnotes and normal year end audit
adjustments and, in the case of the monthly reports, as otherwise agreed by the Agent), and since
the date of the most recent audited financial statement, no event has occurred which has had or
could reasonably be expected to have a Material Adverse Effect. There has been no material adverse
deviation from the most recent annual operating plan of Borrower delivered to Agent and Lenders in
accordance with Section 6.3.

     5.6. Use of Proceeds. The proceeds of the Term Loan shall be used for working capital and
general corporate purposes, including capital expenditure.

     5.7. Collateral. Each Loan Party is, and will remain, the sole and lawful owner, and in
possession of, the Collateral (other than as permitted under Section 6.8(c)), and has the sole
right and lawful authority to grant the security interest described in the Debt Documents. The
Collateral is, and will remain, free and clear of all liens, claims and encumbrances of any kind
whatsoever, except for (a) liens in favor of any Finance Party, to secure the Obligations, (b)
liens (i) with respect to the payment of taxes, assessments or other governmental charges or (ii)
of suppliers, carriers, materialmen, warehousemen, workmen or mechanics and other similar liens, in
each case imposed by law and arising in the ordinary course of business, and securing amounts that
are not yet due or that are being contested in good faith by appropriate proceedings diligently
conducted and with respect to which adequate reserves or other appropriate provisions are
maintained on the financial statements of the applicable Loan Party in accordance with GAAP and
which do not involve, in the reasonable judgment of Agent, any risk of the sale, forfeiture or loss
of any of the Collateral (a “Permitted Contest”), (c) liens existing on the date hereof and
set forth on Schedule C hereto, (d) liens securing Indebtedness permitted under Section
7.2(d), (e) liens securing statutory obligations under workmen’s compensation, unemployment
insurance, social security or public liability laws or similar legislation (excluding liens under
ERISA) arising by mandatory operation of law in the ordinary course of business, (f) cash
collateral or other security deposits securing in favour of a landlord, or in favour of an issuer
of a letter of credit for the benefit of a landlord, the obligations under an agreement of lease of
any premises entered into in the ordinary course of business not exceeding in aggregate $200,000 at
any time, (g) any attachment or judgment lien not constituting an Event of Default under Section
8.1, (h) any bankers lien or rights of set off or similar rights and remedies as to deposit
accounts or securities accounts or other funds maintained with depository institutions or
securities intermediaries, in each case opened in the ordinary course of business and subject to an
Account Control Agreement if required hereunder in a form approved by Agent, (i) liens arising from
precautionary UCC filings regarding operating leases that are permitted by this Agreement, (j)
licenses
described in Section 7.3(d) and (e) below, (k) liens entered into with the prior written
consent of Agent (acting upon the instructions of Requisite Lenders), and (l) Liens securing
capital lease obligations permitted under Section 7.2(g), (all of such liens described in the
foregoing clauses (a) through (l) are called “Permitted Liens”).

     5.8. Compliance with Laws. Each Loan Party is and will remain in compliance in all material
respects with (i) all U.S. economic sanctions laws, Executive Orders and implementing regulations
as promulgated by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”),
(ii) all applicable anti-money laundering and counter-terrorism financing provisions of the Bank
Secrecy Act and the USA Patriot Act, and all regulations issued pursuant to it and (iii) meeting
the minimum funding requirements of the United States Employee Retirement Income Security Act of
1974 (as amended, “ERISA”) with respect to any employee benefit plans subject to ERISA. No
Loan Party nor any of its Subsidiaries or joint ventures, (a) is a person or entity designated by
the U.S. Government on the list of the Specially Designated Nationals and Blocked Persons (the
“SDN List”) with which a U.S. person or entity cannot deal with or otherwise engage in
business transactions (b) is a person or entity who is otherwise the target of U.S. economic
sanctions laws such that a U.S. person or entity cannot deal or

12

 

otherwise engage in business
transactions with such person or entity; or (c) is controlled by (including without limitation by
virtue of such person being a director or owning voting shares or interests), or acts, directly or
indirectly, for or on behalf of, any person or entity on the SDN List or a foreign government that
is the target of U.S. economic sanctions prohibitions such that the entry into, or performance
under, this Agreement or the other Debt Documents would be prohibited under U.S. law. The SDN List
is maintained by OFAC and is available at: http://www.ustreas.gov/offices/enforcement/ofac/sdn/;
(d) is an “investment company” or a company “controlled” by an “investment company” within the
meaning of the Investment Company Act of 1940 and (e) is engaged principally, or as one of the
important activities, in the business of extending credit for the purpose of purchasing or carrying
margin stock (within the meaning of Regulations T, U and X of the Board of Governors of the Federal
Reserve System (the “Federal Reserve Board”). In addition, each Loan Party is and will
remain in compliance with all other laws, statutes, ordinances, rules and regulations applicable to
it except where failure to do so will not have a Material Adverse Effect.

     5.9. Intellectual Property. The Intellectual Property is and will remain free and clear of
all liens, claims and encumbrances of any kind whatsoever, except for Permitted Liens described in
clauses (b)(i) and (e) of Section 5.7. No Loan Party has nor will it enter into any other
agreement or financing arrangement in which a negative pledge in such Loan Party’s Intellectual
Property is granted to any other party. As of the Closing Date, no Loan Party has any interest in,
or title to any Intellectual Property except as disclosed in the Perfection Certificate. Each Loan
Party owns or has rights to use all Intellectual Property material to the conduct of its business
as now or heretofore conducted by it or proposed to be conducted by it, without any actual or
claimed infringement in any material respect upon the rights of third parties.

     5.10. Solvency. Both before and after giving effect to each Term Loan, the transactions
contemplated herein, and the payment and accrual of all transaction costs in connection with the
foregoing, each Loan Party is and will be Solvent. As used herein, “Solvent” means, with
respect to any Loan Party (other than an Australian Loan Party) on a particular date, that on such
date (a) the fair value of the property of such Loan Party is greater than the total amount of
liabilities, including contingent liabilities, of such Loan Party; (b) the present fair salable
value of the assets of such Loan Party is not less than the amount that will be required to pay the
probable liability of such Loan Party on its debts as they become absolute and matured; (c) such
Loan Party does not intend to, and does not believe that it will, incur debts or liabilities beyond
such Loan Party’s ability to pay as such debts and liabilities mature; (d) such Loan Party is not
engaged in a business or transaction, and is not about to engage in a business or
transaction, for which such Loan Party’s property would constitute an unreasonably small
capital; and (e) is not “insolvent” within the meaning of Section 101(32) of the United States
Bankruptcy Code (11 U.S.C. § 101, et. seq), as amended from time to time, and “Solvent”
means, with respect to an Australian Loan Party and an Irish Loan Party, that such Loan Party is
able to pay its debts as and when they fall due. The amount of contingent liabilities (such as
litigation, guaranties and pension plan liabilities) at any time shall be computed as the amount
that, in light of all the facts and circumstances existing at the time, represents the amount that
can be reasonably be expected to become an actual or matured liability.

     5.11. Taxes; Pension. All tax returns, reports and statements, including information returns,
required (taking into account extensions) by any governmental authority to be filed by each Loan
Party and its Subsidiaries have been filed with the appropriate governmental authority and all
taxes, levies, assessments and similar charges have been paid prior to the date on which any fine,
penalty, interest or late charge may be added thereto for nonpayment thereof (or any such fine,
penalty, interest, late charge or loss has been paid), excluding taxes, levies, assessments and
similar charges or other amounts which are immaterial (having regard to the agency imposing them,
de minimus quantum and consequences of late payment) or which are the subject of a Permitted
Contest and the details of that non-compliance have been disclosed to the Agent or except if the
non compliance has been disclosed in writing to Agent prior

13

 

to the Closing Date and provided such
taxes are paid within 30 days after the Closing Date (or such longer period approved by Agent in
its absolute discretion). Proper and accurate amounts have been withheld by each Loan Party from
its respective employees for all periods in compliance with applicable laws and such withholdings
have been timely paid to the respective governmental authorities. Each Loan Party has paid all
amounts necessary to fund all present pension, profit sharing and deferred compensation plans in
accordance with their terms, and no Loan Party has withdrawn from participation in, or has
permitted partial or complete termination of, or permitted the occurrence of any other event with
respect to, any such plan which could reasonably be expected to result in any liability of a Loan
Party, including any liability to the Pension Benefit Guaranty Corporation or its successors or any
other governmental authority.

     5.12. No Trustee. None of the Loan Parties, other than Peplin Research Pty Ltd (“Peplin
Research”), are trustees of any trust;

     5.13. Full Disclosure Loan Parties hereby confirm that all of the information disclosed on the
Perfection Certificate is true, correct and complete as of the date of this Agreement. No
representation, warranty or other statement made by or on behalf of a Loan Party contains any
untrue statement of a material fact or omits to state a material fact necessary to make the
statements contained therein not misleading in light of the circumstances under which they were
made, it being recognized by Agent and Lenders that the projections and forecasts provided by Loan
Parties in good faith and based upon reasonable and stated assumptions at the time of delivery
thereof and are not to be viewed as facts and that actual results during the period or periods
covered by any such projections and forecasts may differ from the projected or forecasted results.

     Peplin Research acting in its capacity as trustee of the Peplin Trust, represents, warrants
and covenants to each Finance Party, as set out in Section 5.14 to Section 5.31 (inclusive), that:

     5.14. Proper Administration. Peplin Research hereby confirms that it enters into this
Agreement and the other Debt Documents as part of the proper administration of the Peplin Trust and
for the benefit of the beneficiaries of the Peplin Trust.

     5.15 No Default. Peplin Research is not in default under the Trust Deed.

     5.16 Internal Management. All acts of internal management of the Peplin Trust in respect this
Agreement and the other Debt Documents to which Peplin Research is a party and the assumption by
Peplin Research of liability for the performance of its obligations under this Agreement and the
other Debt Documents to which Peplin Research is a party have been duly performed and all consents,
authorizations and approvals required are in full force and effect.

     5.17 Terms Of Peplin Trust. The Trust Deed comprises all the terms relevant to the
relationship of trustee and beneficiary between Peplin Research as trustee and the beneficiaries of
the Peplin Trust, and constitutes legal, valid and binding obligations enforceable in accordance
with its terms and neither the Trust Deed nor any part of it is void, voidable or otherwise
unenforceable.

     5.18 True Copy. The copy of the Trust Deed delivered to the Lenders on or before the date of
this agreement is a true and up to date copy of the Trust Deed and there is no other document
governing the Peplin Trust.

     5.19 Legal Owner. Peplin Research is the sole trustee and legal owner of the Trust Property
(“Trust Property” means all the present and future undertaking, assets and rights of Peplin
Research as trustee of the Peplin Trust including but not limited to all real and personal
property, choses in action and

14

 

goodwill). Peplin Research will be the sole trustee and legal owner
of any property it acquires as Trust Property. No person other than Peplin Research and the
beneficiaries of the Peplin Trust holds or is entitled to hold an interest in the Trust Property
other than under a Permitted Lien, and all the Trust Property is held by Peplin Research;

     5.20 No Conflict. Entering into this Agreement and the other Debt Documents to which Peplin
Research is a Party does not constitute a conflict of interest or duty on the part of Peplin
Research in its capacity as trustee of the Peplin Trust or any officers of Peplin Research or a
breach of the Trust Deed.

     5.21 Indemnity Against Trust Property: All rights of indemnity and any equitable lien or other
encumbrance which Peplin Research in its capacity as trustee of the Peplin Trust, now or in the
future has against or over the Trust Property or against the beneficiaries of the Peplin Trust (i)
have not been and will not be excluded, modified, waived released, lost, diminished or rendered
unenforceable, void or voidable, by any agreement, act or omission of Peplin Research except as a
result of any breach of trust; and (ii) have priority over the rights of the beneficiaries of the
Peplin Trust.

     5.22 No Present Entitlement. No beneficiary under the Peplin Trust is presently entitled to
the distribution of any of the capital of the Trust Property.

     5.23 Register Of Beneficiaries: The register of beneficiaries is correct and up to date and
contains all details required by the Trust Deed.

     5.24 Register Of Trust Property: The register of Trust Property is correct and up to date and
contains all details required by the Trust Deed.

     5.25 Business Of The Peplin Trust. The only business of the Peplin Trust is to own and hold
and own all patents related to Euphorbia Peplus and to licence related intellectual property to
Peplin Ireland Limited;

     5.26 Vesting Date Of Peplin Trust. The Peplin Trust vests on the date 79 years after the date
of the Trust Deed;

     5.27 Possession Of Trust Property. No beneficiary is in possession of or controls, nor has any
right to possess or control, any Trust Property.

     5.28 Control Of Peplin Trust. In the exercise of any power, Peplin Research is not required to
follow or seek the instructions of any beneficiary of the Peplin Trust or any other person.

     5.29 Government Agency Order: No order has been made by any governmental, semi-governmental,
administrative, fiscal or judicial body, department, commission, authority, tribunal, agency or
entity (“Government Agency”) which detrimentally affects any Trust Property or which
appoints a receiver.

     5.30 No Termination Of Peplin Trust: No resolution has been passed or direction been given by
the beneficiaries for the winding up or termination of the Peplin Trust or distribution of the
Trust Property; and

     5.31 No Removal Of Trustee. No resolution has been passed or direction or notice been given
removing the Peplin Research as trustee of the Peplin Trust.

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6. AFFIRMATIVE COVENANTS.

     6.1. Good Standing. Each Loan Party shall maintain its and each of its Subsidiaries’
existence and, for US Loan Parties, good standing and, for other Loan Parties, registration in its
jurisdiction of organization and maintain qualification in each jurisdiction in which the failure
to so qualify could reasonably be expected to have a Material Adverse Effect. Each Loan Party
shall maintain, and shall cause each of its Subsidiaries to maintain, in full force all licenses,
approvals and agreements, the loss of which could reasonably be expected to have a Material Adverse
Effect.

     6.2. Notice to Agent. Loan Parties shall provide Agent with (a) promptly (and in any event
within ten (10) Business Days after the last day of each calendar quarter), an updated Perfection
Certificate noting any changes since it was last updated (including but not limited to any new
applications or registrations that a Loan Party has made or filed in respect of any Intellectual
Property or a change in status of any outstanding application or registration), (b) notice of any
change in the accuracy of any of the representations and warranties provided in Section 5 above,
promptly (but in any event within three (3) Business Days) after the date on which any officer of a
Loan Party becomes aware, or through the exercise of reasonable diligence should have become aware,
of any such change, (c) notice of the occurrence of any Default or Event of Default, promptly (but
in any event within 3 days) after the date on which any officer of a Loan Party obtains knowledge
of the occurrence of any such event, (d) copies of all statements, reports and notices made
available generally by Parent to its securityholders and all documents filed with the Securities
and Exchange Commission (“SEC”), the Australian Securities and Investment Commission
(“ASIC”) or any securities exchange or governmental authority, or the ASX exercising a
similar function, promptly (other than those provided pursuant to Section 6.3 hereof), but in any
event within 3 days of delivering or receiving such information to or from such persons, (e) a
report of any legal actions pending or threatened against a Loan Party or any Subsidiary that could
result in damages or costs to a Loan Party or any Subsidiary of $100,000 or more promptly, but in
any event within three (3) Business Days after the date it becomes aware, or through the exercise
of due diligence should have become aware thereof, (f) notice of all statements, reports and
notices delivered to or by a Loan Party in connection with any Material Agreement and copies of
such statements, reports and notices upon the request of the Agent.

     6.3. Financial Statements. If Parent is an unlisted company (other than on the ASX) or
privately held company (or both), it shall deliver to Agent and Lenders (a) unaudited consolidated
and, if available, consolidating balance sheets, statements of operations and cash flow statements
within 30 days of each month end, in a form reasonably acceptable to Agent and certified by
Parent’s president, chief executive officer or chief financial officer, and (b) its complete annual
audited consolidated and, if available, consolidating financial statements prepared under GAAP and
certified by an independent certified public accountant selected by Parent and satisfactory to
Agent (acting reasonably) within 120 days of the fiscal year end or, if sooner, at such time as
Parent’s Board of Directors approves the certified audit. If Parent is a publicly listed company
(other than on the ASX) or a publicly held company (or both), it shall deliver to Agent and Lenders
quarterly unaudited consolidated and, if available, consolidating balance sheets, statements of
operations and cash flow statements for the first three (3) quarters of each fiscal year and annual
audited consolidated and, if available, consolidating balance sheets, statements of operations and
cash flow statements, in the case of the annual financial statements certified by a recognized firm
of certified public accountants, within 5 days after the statements are required to be provided to
the ASX or SEC (as applicable), and if Agent requests, Parent shall deliver to Agent and Lenders
monthly unaudited consolidated and, if available, consolidating balance sheets, statements of
operations and cash flow statements within 30 days after the end of each month. The Parent may,
following its listing on NASDAQ, satisfy its obligation in the foregoing sentence to provide
quarterly and annual financial statements by delivery to the Agent of a copy of the 10Q and 10K
statements that it files with the SEC for the relevant period. All such statements are to be
prepared using

16

 

GAAP (subject, in the case of unaudited financial statements, to the absence of
footnotes and normal year end audit adjustments and, in the case of the monthly reports, except to
the extent agreed by Agent) and, if Parent is a publicly listed company or a publicly held company
(or both), are to be in compliance with applicable ASX or SEC requirements. All financial
statements delivered pursuant to this Section 6.3 shall be accompanied by a compliance certificate,
signed by the chief financial officer of Parent, in the form attached hereto as Exhibit D.
Parent shall deliver to Agent and Lenders (i) as soon as available and in any event not later than
30 days after the end of each calendar year of Parent, an annual operating plan for Parent, on a
consolidated and, if available, consolidating basis, approved by the Board of Directors of Parent,
for the current annual year, in form and substance reasonably satisfactory to Agent and (ii) such
budgets, sales projections, or other financial information as Agent or any Lender may reasonably
request from time to time generally prepared by Borrower in the ordinary course of business.

     6.4. Insurance. Borrower, at its expense, shall maintain, and shall cause each other Loan
Party to maintain, insurance (including, without limitation, comprehensive general liability and
hazard insurance) with respect to all of its properties and businesses (including, the Collateral),
in such amounts and covering such risks as is carried generally in accordance with sound business
practice by companies in similar businesses similarly situated and in any event with deductible
amounts, insurers and policies that shall be reasonably acceptable to Agent. Borrower shall
deliver to Agent certificates of insurance evidencing such coverage, together with endorsements to
such policies naming Agent as a lender loss payee or additional insured, as appropriate, in form
and substance satisfactory to Agent. Each policy shall provide that coverage may not be canceled
or altered by the insurer except upon 30 days prior written notice to Agent and shall not be
subject to co-insurance. Borrower appoints Agent as its attorney-in-fact to make, settle and
adjust all claims under and decisions with respect to Borrower’s policies of insurance, and to
receive payment of and execute or endorse all documents, checks or drafts in connection with
insurance payments. Agent shall not act as Borrower’s attorney-in-fact unless an Event of Default
has occurred and is continuing. The appointment of Agent as Borrower’s attorney in fact is a power
coupled with an interest and is irrevocable until all of the Obligations are indefeasibly paid in
full. In the event (a) a Default subsists, or (b) the proceeds of insurance exceed $200,000 from
one or more related claims, then all the proceeds of insurance shall be applied, at the option of
Agent, to repair or replace the Collateral or to reduce any of the Obligations.

     6.5. Taxes. Borrower shall, and shall cause each other Subsidiary to, timely file all tax
reports (taking into account extensions) and pay and discharge all taxes (including Australian
Interest Withholding Tax), assessments and governmental charges or levies imposed upon it, or its
income or profits or upon its properties or any part thereof, before the same shall be in default
and before the date on which penalties attach thereto, except to the extent such taxes, assessments
and governmental charges or levies are the subject of a Permitted Contest or are immaterial (having
regard to the agency imposing them, de minimus quantum and consequences of late payment). The
Borrower undertakes to pay outstanding taxes disclosed to the Agent prior to Closing Date, within
30 days after the Closing Date (or such longer period approved by Agent in its absolute
discretion).

     6.6. Agreement with Landlord/Bailee. Each Loan Party shall use its best endeavours to obtain
as soon as possible and maintain such Access Agreement(s) with respect to any real property on
which (a) a Loan Party’s principal place of business, (b) a Loan Party’s books or records or (c)
Collateral with a value in excess of $50,000 in each individual location or with an aggregate value
in excess of $100,000 is located (other than real property owned by such Loan Party) as Agent or
Security Trustee may require, and including any Access Agreements not executed on or before the
Closing Date (pursuant to Section 4.1(j)) and provided however Borrower shall use commercially
reasonable efforts to deliver on or before the date that is 30 days after the Closing Date, a
bailee letter reasonably acceptable to Agent from DPT Laboratories Ltd.

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     6.7. Protection of Intellectual Property. Each Loan Party shall take all necessary actions
to: (a) protect, defend and maintain the validity and enforceability of its Intellectual Property
to the extent material to the conduct of its business now or heretofore conducted by it or proposed
to be conducted by it, (b) promptly as practicable (but in any event within three (3) Business
Days) advise Agent in writing of material infringements of its Intellectual Property and, should
the Intellectual Property be material to the business of the Loan Parties, taken as a whole, shall
promptly take all necessary actions to stop such infringement, misappropriation or dilution ,
including but not limited to, the initiation of a suit for injunctive relief and to recover damages
(c) not allow any Intellectual Property material to such Loan Party’s business to be abandoned,
forfeited or dedicated to the public without Agent’s written consent, and (d) notify Agent
promptly, but in any event within three (3) Business Days, if it knows or has reason to know that
any application or registration relating to any patent, trademark or copyright (now or hereafter
existing) material to its business may become abandoned or dedicated, or if any adverse
determination or development (including the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark Office, the United States
Copyright Office or any court) regarding such Loan Party’s ownership of any Intellectual Property
material to its business, its right to register the same, or to keep and maintain the same. Each
Loan Party shall remain liable under each of its Intellectual Property licenses pursuant to which
it is a licensee (“Licenses”) to observe and perform all of the conditions and obligations
to be observed and performed by it thereunder. None of any Finance Party shall have any obligation
or liability under any such License by reason of or arising out of this Agreement or the Debt
Documents, the granting of a lien, if any, in such License or the receipt by Agent (on behalf of
itself and Lenders) of any payment relating to any such License. None of Agent or any Lender shall
be required or obligated in any manner to perform or fulfill any of the obligations of any Loan
Party under or pursuant to any License, or to make any payment, or to make any inquiry as to the
nature or the sufficiency of any payment received by it or the sufficiency of any performance by
any party under any License, or to present or file any claims, or to take any action to collect or
enforce any performance or the payment of any amounts which may have been assigned to it or which
it may be entitled at any time or times. Notwithstanding anything to the contrary contained herein,
nothing in this Agreement shall prevent any Loan Party from disposing or, discontinuing the use or
maintenance of, failing to pursue, or otherwise allowing to lapse, terminate or to be put into the
public domain any of its
Intellectual Property is such Loan Party demonstrates to the reasonable satisfaction of the
Agent that such part of the Intellectual Property is not necessary for the conduct of its business.

     6.8. Special Collateral Covenants.

     (a) Each Loan Party shall remain in possession of its respective Collateral solely at
the location(s) specified on the Perfection Certificate (other than Collateral not valued in
excess of $50,000 in the aggregate, out for maintenance, repair or in-transit between the
locations specified on the Perfection Certificate); except that any Finance Party, shall
have the right to possess (i) any chattel paper or instrument that constitutes a part of the
Collateral, (ii) any other Collateral in which Finance Party’s security interest may be
perfected only by possession and (iii) any Collateral after the occurrence of an Event of
Default in accordance with this Agreement and the other Debt Documents. As frequently as
Finance Party reasonably determines to be appropriate and at times that do not contravene
the GMP and other environmental regulations that restrict access to certain operational
premises of the Loan Parties during certain phases of operations, Finance Party may inspect
any of the Collateral and make copies of any Loan Party’s books and records during normal
business hours, and in the absence of a Default , after giving Borrower reasonable prior
notice. So long as no Default shall have occurred and be continuing, the Loan Parties shall
not be obligated to reimburse the Finance Parties for more than two (2) such visits or
inspections during each calendar year. If Finance Party asks, each Loan Party will promptly
notify Finance Party in writing of the location of any Collateral.

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     (b) Each Loan Party shall (i) use the Collateral only in its trade or business, (ii)
maintain all of the Collateral necessary for the conduct of its business in good operating
order and repair, normal wear and tear excepted, and (iii) use and maintain the Collateral
only in compliance with manufacturers’ recommendations and all applicable laws.

     (c) Finance Parties do not authorize and each Loan Party agrees it shall not (i) part
with possession of any of the Collateral (except to Finance Party, for maintenance, repair,
in-transit between locations specified on a Perfection Certificate or for a Permitted
Disposition), or (ii) remove any of the Collateral from the continent at which it is on,
unless consented to by Agent.

     (d) Each Loan Party shall pay promptly when due all taxes, license fees, assessments
and public and private charges levied or assessed on any of the Collateral, on its use, or
on this Agreement or any of the other Debt Documents. During the occurrence and
continuation of a Default or an Event of Default, Finance Party may at its option, discharge
taxes, liens, security interests or other encumbrances at any time levied or placed on the
Collateral and may pay for the maintenance, insurance and preservation of the Collateral and
effect compliance with the terms of this Agreement or any of the other Debt Documents. Each
Loan Party agrees to reimburse Finance Party, on demand, all costs and expenses incurred by
Finance Party in connection with such payment or performance and agrees that such
reimbursement obligation shall constitute Obligations.

     (e) Each Loan Party shall, at all times, keep records of the Collateral that are
accurate and complete in all material respects.

     (f) Each Loan Party agrees and acknowledges that any third person who may at any time
possess all or any portion of the Collateral shall be deemed to hold, and shall hold, the
Collateral as the agent of, and as pledge holder for, Security Trustee (on behalf of itself
and Lenders). Security Trustee may at any time give notice to any third person described in
the
preceding sentence that such third person is holding the Collateral as the agent of,
and as pledge holder for, Security Trustee (on behalf of itself and Lenders).

     (g) Peplin Ireland Limited hereby gives notice to Peplin Research Pty Limited that
pursuant to the Irish Debenture Peplin Ireland Limited has assigned to the Security Trustee
all its rights, title and interest in the Peplin Ireland Licence (as defined below) for the
purpose of securing the Obligations (as defined herein). Peplin Research Pty Limited hereby
consents to the creation of the assignments as required by clause 16.8(a) of the Peplin
Ireland Licence.

     (h) The Loan Parties shall ensure that Peplin, Inc., does not and must not itself, own
any Intellectual Property.

     6.9. Further Assurances. Each Loan Party shall, upon the reasonable request of Agent or
Security Trustee, furnish to the Agent or Security Trustee such further information, execute and
deliver to the Agent or Security Trustee such documents and instruments (including, without
limitation, ASIC forms and UCC financing statements) and shall do such other acts and things as
Agent or Security Trustee may at any time reasonably request relating to the perfection or
protection of the security interest created by this Agreement or for the purpose of carrying out
the intent of this Agreement and the other Debt Documents.

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7. NEGATIVE COVENANTS

     7.1. Liens. No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to,
create, incur, assume or permit to exist any lien, security interest, claim or encumbrance or grant
any negative pledges on any Collateral any Intellectual Property or any other asset or undertaking
of a Loan Party or a Subsidiary of it (including, in the case of Peplin Research, a subsidiary of
the Peplin Trust), except Permitted Liens.

     7.2. Indebtedness. No Loan Party shall, and no Loan Party shall permit any of its
Subsidiaries to, directly or indirectly create, incur, assume, permit to exist, guarantee or
otherwise become or remain directly or indirectly liable with respect to, any Indebtedness (as
hereinafter defined), except for (a) the Obligations, (b) Indebtedness existing on the date hereof
and set forth on Schedule C to this Agreement, (c) the incurrence of any Indebtedness by a Loan
Party to any other Loan Party, provided that (i) the Loan Party and any such other Loan Party shall
have executed and delivered to the other, as applicable, a demand note (each, a “Global
Intercompany Note”) to evidence such intercompany loans or advances owing at any time by such
Loan Parties, which Global Intercompany Note shall be in form and substance reasonably satisfactory
to Agent and shall be pledged and delivered to the Finance Parties pursuant to the US Guaranty,
Pledge and Security Agreement and other Debt Documents as additional Collateral for the
Obligations, and (ii) no Default would occur both before and after giving effect to any such
Indebtedness (d) the Breakfast LC, as it may be increased from time to time as required by the
relevant lease agreement provided that its face amount, when aggregated with any other letter of
credit in favour of such a landlord, does not exceed $200,000 (or such other amount approved by the
Agent, acting reasonably), (e) any hedging obligation under a foreign currency swap not exceeding
the principal amount of the Term Loan at any time entered into with a counterparty acceptable to
the Agent (acting reasonably) and provided such obligation is and remains at all times unsecured,
unless the Agent (acting upon the instructions of the Requisite Lenders) otherwise approves in
writing, (f) a guarantee loan by a Loan Party of any permitted Indebtedness of another Loan Party
provided it is evidenced by the Global Intercompany Note, (g) Indebtedness (if any) constituted by
the Allergan Settlement Agreement dated 7 October 2004 between Allergan Sales LLC and Peplin
Operations Pty Ltd (as amended from time to time with the approval of the Agent, acting reasonably)
provided that the aggregate contingent liabilities of the Loan Parties thereunder does not exceed
$4,000,000 at any time, (h) guaranteed credit cards issued in the ordinary course of business to
executives and employess up to the aggregate amount of $500,000, (i) Indebtedness approved in
writing by the Agent (acting upon the instructions of the Requisite Lenders), and (g) capital lease
obligations of such persons provided that their aggregate value does not exceed $750,000 in
aggregate at any time. The term “Indebtedness” shall mean, with respect to any person, at
any date, without duplication, (i) all obligations of such person for borrowed money, (ii) all
obligations of such person evidenced by bonds, debentures, notes or other similar instruments, or
upon which interest payments are customarily made, (iii) all obligations of such person to pay the
deferred purchase price of property or services, but excluding obligations to trade creditors
incurred in the ordinary course of business and not past due by more than 90 days, (iv) all
capital lease obligations of such person, (v) the principal balance outstanding under any synthetic
lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing
product, (vi) all obligations of such person to purchase securities (or other property) which arise
out of or in connection with the issuance or sale of the same or substantially similar securities
(or property), (vii) all contingent or non-contingent obligations of such person to reimburse any
bank or other person in respect of amounts paid under a letter of credit or similar instrument,
(viii) all equity securities of such person subject to repurchase or redemption otherwise than at
the sole option of such person, (ix) all “earnouts” and similar payment obligations of such person,
(x) all indebtedness secured by a lien on any asset of such person, whether or not such
indebtedness is otherwise an obligation of such person, (xi) all obligations of such person under
any foreign exchange contract, currency swap agreement, interest rate swap, cap or collar agreement
or other similar agreement or arrangement designed to alter the risks of that person arising from
fluctuations in currency values or

20

 

interest rates, in each case whether contingent or matured, and (xii) all obligations or
liabilities of others guaranteed by such person.

     7.3. Dispositions. No Loan Party shall, and no Loan Party shall permit any of its
Subsidiaries to, convey, sell, rent, lease, sublease, mortgage, license, transfer or otherwise
dispose of (collectively, “Transfer”) any of the Collateral (including the Trust Property)
or any Intellectual Property, except for the following (collectively, “Permitted
Dispositions”): (a) sales of Inventory in the ordinary course of business, (b) the intercompany
license agreement dated as of 29 June 2007, by and between Peplin Ireland Limited and Peplin
Research Pty Ltd (“Peplin Ireland Licence”) (c) any dispositions by a Loan Party or any of
its Subsidiaries of tangible assets for cash and fair value that are no longer used or useful in
the business of such Loan Party or such Subsidiary so long as (i) no Default exists at the time of
such disposition or would be caused after giving effect thereto and (ii) the fair market value of
all such assets disposed of does not exceed $50,000 since the Closing Date, (d) non-exclusive
licenses for the use of any Loan Party’s Intellectual Property in the ordinary course of business
(including a grant of such licence to another Loan Party), (e) exclusive licenses for the use of
any Loan Party or its Subsidiary’s Intellectual Property in the ordinary course of business, so
long as, with respect to each such exclusive license, (i) no Default exists at the time of such
Transfer, (ii) the license constitutes an arms-length transaction made in connection with a bona
fide corporate collaboration in the ordinary course of business and the terms of which, on their
face, do not provide for a sale or assignment of any Intellectual Property, (iii) Borrower delivers
within 15 days after execution written notice and a brief summary of the terms of the license to
Agent, (iv) Borrower delivers to Agent copies of the final executed licensing documents in
connection with the license promptly (but in any event within fifteen (15) days) upon consummation
of the license, and (v) all royalties, milestone payments or other proceeds arising from the
licensing agreement are paid to a deposit account that is governed by an Account Control Agreement,
and (f) dispositions of equipment in accordance with that certain Development and Clinical Supply
Agreement between Parent and DPT Laboratories, Ltd., dated 23 October 2007.

     7.4. Change in Name, Location or Executive Office; Change in Business; Change in Fiscal Year.
No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, (a) change its name
or its jurisdiction of incorporation or organization, (b) relocate its chief executive office
without 30 days prior written notification to Agent, (c) engage in any business other than or
reasonably related or incidental to the businesses currently engaged in by such Loan Party or
Subsidiary, (d) cease to conduct business substantially in the manner conducted by such Loan Party
or Subsidiary as of the date of this Agreement or (e) change its fiscal year end, except on at
least thirty (30) days prior written notice to Agent.

     7.5. Mergers or Acquisitions. No Loan Party shall merge or consolidate, and no Loan Party
shall permit any of its Subsidiaries (including the Trust Property) to merge or consolidate, with
or into any other person or entity (other than mergers of a Subsidiary (other than Borrower) into
Borrower or other Loan Party in which Borrower or other Loan Party is the surviving entity) or
acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital
stock or property of another person or entity, without the consent of Agent, such consent not to be
unreasonably withheld. A Loan Party is required to notify Agent of all proposed mergers or
consolidations, whether between Loan Parties or otherwise. Agent acknowledges that Borrower has
given notice of the proposed merger of Peplin Operations USA, Inc. with and into the Parent or
alternatively the restructure of Peplin Operations USA, Inc. as a wholly-owned subsidiary of the
Parent, and that the proposed merger or restructure is expected to occur within 180 days of the
Closing Date.

     7.6. Restricted Payments. No Loan Party shall, and no Loan Party shall permit any of its
Subsidiaries to, (a) declare or pay any dividends or make any other distribution or payment on
account of or redeem, retire, defease or purchase any capital stock (other than the payment of
dividends, distributions

21

 

and other payments of a similar nature to Borrower or any other Loan Party from its
Subsidiary), (b) make any payment in respect of management fees or consulting fees (or similar
fees) to any equityholder or other affiliate of Borrower or other Loan Party other than arm’s
length payments to individuals under consultant agreements disclosed prior to Closing Date and any
payment of reasonable legal fees and other customary fees of MPM Bio Ventures IV LLC and its
affiliates and any investor in connection with private placement of the Parent, (c) be a party to
or bound by an agreement that restricts a Loan Party from paying dividends or otherwise
distributing property to Borrower or Parent, (d) make any payments on account of intercompany
Indebtedness permitted under Section 7.2 (except in accordance with the terms of the applicable
Global Intercompany Note then in effect with respect to such intercompany Indebtedness) or (e) pay
any fee or similar amount to Peplin Ireland Limited for entering into the Group Guaranty or other
Debt Document (collectively, the “Restricted Payments”), other than (i) Restricted Payments
to Parent (provided the Parent is a Guarantor) to pay customary directors fees at an arms length
remuneration, and indemnification obligations owing to directors of Parent; (ii) Restricted
Payments to Parent (provided the Parent is a Guarantor) in an amount necessary to permit Parent to
pay reasonable and necessary fees and general administrative costs and expenses required by Parent
to maintain its corporate existence; (iii) Restricted Payments to Parent (provided the Parent is a
Guarantor) in an amount necessary to pay all costs or fees imposed under the Securities Act of
1933, the Securities Exchange Act of 1934, Sarbanes-Oxley, Corporations Act (Cth), ASX listing
rules or any other federal or state securities laws or listing regulations in United States of
America or Australia and, in each case under clauses (i), (ii) and (iii) the use of such Restricted
Payments by Parent to make Restricted Payments for such purposes; (iv) state franchise taxes and
other similar licensing expenses incurred in the ordinary course of business; and (v) Restricted
Payments in the case of a pass through entity to allow any taxes payable by its parent (provided
that its parent is a Loan Party).

     7.7. Investments. No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries
to, directly or indirectly (a) acquire or own, or make any loan, advance or capital contribution
(an “Investment”) in or to any person or entity (other than another Loan Party), (b)
acquire or create any Subsidiary, or (c) engage in any joint venture or partnership with any other
person or entity, other than: (i) Investments existing on the date hereof and set forth on Schedule
C to this Agreement, (ii) Investments in cash and Cash Equivalents (as defined below), (iii) loans
or advances to employees of Borrower or any other Loan Party to finance travel, entertainment and
relocation expenses and other ordinary business purposes in the ordinary course of business as
presently conducted, provided that the aggregate outstanding principal amount of all loans and
advances permitted pursuant to this clause (iii) shall not exceed $25,000 at any time, (iv)
extensions of credit by any Loan Party to any other Loan Party, if such extensions of credit are
evidenced by the Global Intercompany Note; (v) mergers of Loan Parties as permitted hereunder
(collectively, the “Permitted Investments”). The term “Cash Equivalents” means (a)
any bonds, debentures, stock, treasury bills, notes and any other readily-marketable securities
(i) issued by, or directly, unconditionally and fully guaranteed or insured by either of the United
States federal government, the Commonwealth of Australia or any government of any State or
Territory of the Commonwealth of Australia or (ii) issued by any agency of the United States
federal government the obligations of which are fully backed by the full faith and credit of the
United States federal government, (b) deposits, certificates of deposit and any other
readily-marketable direct obligations issued by an entity which has, or guaranteed by an entity
which has a rating of at least “A-1” from S&P or at least “P-1” from Moody’s, (c)
any commercial paper rated at least “A-1” by S&P or “P-1” by Moody’s and issued by
any entity organized under the laws of any state of the United States or any State or Territory of
the Commonwealth of Australia, (d) any U.S. dollar-denominated time deposit, insured certificate of
deposit, overnight bank deposit or bankers’ acceptance issued or accepted by (i) Agent or (ii) any
commercial bank that is (A) organized under the laws of the United States, any state thereof or the
District of Columbia, (B) “adequately capitalized” (as defined in the regulations of its primary
federal banking regulators) and (C) has Tier 1 capital (as defined in such regulations) in excess
of $250,000,000, (e) shares of any United States money market fund that (i) has substantially all
of its assets invested

22

 

continuously in the types of investments referred to in clause (a), (b),
(c) or (d) above with maturities as set forth in the proviso below, (ii) has net assets in
excess of $500,000,000 and (iii) has obtained from either S&P or Moody’s the highest rating
obtainable for money market funds in the United States; provided, however, that the
maturities of all obligations specified in any of clauses (a), (b), (c) and
(d) above shall not exceed 365 days, and (f) any other investment approved by Agent.

     7.8. Transactions with Affiliates. No Loan Party shall, and no Loan Party shall permit any of
its Subsidiaries to, directly or indirectly enter into or permit to exist any transaction with any
Affiliate (as defined below) of a Loan Party or any Subsidiary of a Loan Party except for
transactions that are in the ordinary course of such Loan Party’s or such Subsidiary’s business,
upon fair and reasonable terms that are no more favorable to such Affiliate than would be obtained
in an arm’s length transaction. As used herein, “Affiliate” shall mean, with respect to a
Loan Party or any Subsidiary of a Loan Party, (a) each person that, directly or indirectly, owns or
controls 5% or more of the stock or membership interests having ordinary voting power in the
election of directors or managers of such Loan Party or such Subsidiary, and (b) each person that
controls, is controlled by or is under common control with such Loan Party or such Subsidiary.

     7.9. Compliance. No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries
to, (a) fail to comply with the laws and regulations described in clauses (a) through and including
(d) of Section 5.8 herein, (b) use any portion of the Term Loans to purchase or carry margin stock
(within the meaning of Regulation U of the Federal Reserve Board) or (c) fail to comply in any
material respect with, or violate in any material respect any other law or regulation applicable to
it.

     7.10. Deposit Accounts and Securities Accounts. Other than with respect to deposit accounts
used solely to fund payroll, withholding taxes, or payroll taxes or any deposit accounts which are
zero balance accounts or controlled disbursement accounts, no Loan Party shall directly or
indirectly maintain or establish any deposit account or securities account, unless Agent or
Security Trustee, the applicable Loan Party or Loan Parties and the depository institution or
securities intermediary at which the account is or will be maintained enter into a deposit account
control agreement or securities account control agreement, as the case may be, in form and
substance reasonably satisfactory to Agent or Security Trustee (an “Account Control
Agreement”) (which agreement shall provide that such depository institution or securities
intermediary shall comply with all instructions of Agent or Security Trustee without further
consent of such Loan Party or Loan Parties, as applicable, including, without limitation, an
instruction by Agent or Security Trustee to follow a notice of exclusive control or similar notice
(such notice, a “Notice of Exclusive Control”)), prior to or concurrently with the
establishment of such deposit account or securities account (or in the case of any such deposit
account or securities account maintained as of the date hereof, prior to or concurrently with the
entering into this Agreement). Agent or Security Trustee may give a Notice of Exclusive Control
with respect to any deposit account or securities account at any time at which an Event of Default
has occurred and is continuing. In addition, if the Agent waives the requirements of Section
4.1(n), in respect of any required Account Control Agreement, as a condition precedent to the
provision of the Term Loan on the Closing Date, the Borrower must ensure that such Account Control
Agreement is executed within 30 days after the Closing Date (or such longer period approved by
Agent in its absolute discretion).

     7.11. Amendments to Other Agreements. No Loan Party shall (a) amend, modify or waive any
provision of any Material Agreement (unless the net effect of such amendment, modification or
waiver is not adverse to any Loan Party or Finance Party) or (b) amend or modify its constituent
documents in each case, without the prior written consent of Agent and the Requisite Lenders which
shall not be unreasonably withheld or delayed.

23

 

     7.12 Undertakings Regarding The Peplin Trust. Peplin Research must not, without the prior
written consent of the Agent, (a) resign as trustee of the Peplin Trust or cause or permit any
other person to become an additional trustee of the trust; (b) vest, distribute or advance any
capital of the Peplin Trust to a beneficiary under the Peplin Trust or resettle any of the Trust
Property; (c) unless required by law, vary, add to or delete any term of the Trust Deed; (d)
acquire any Trust Property other than in the name of Peplin Research; (e) permit any of the
beneficiaries of the Peplin Trust or any other person to use, occupy, enjoy or possess any of the
Trust Property or original, duplicate or counterpart certificate or document of title or relinquish
management powers which might entitle any beneficiary to possession; (f) do, or fail to do,
anything in breach of the terms of the Trust Deed; (g) exercise any power to change the vesting
date of the Peplin Trust or allow the early determination of the Peplin Trust; (h) incur any
financial indebtedness as Trustee other than in the ordinary course of the ordinary business of the
Peplin Trust; (i) lend any money being part of the Trust Property to any beneficiary of the Peplin
Trust or to any other person; (j) give any Guarantee as Trustee other than the Group Guaranty; (k)
if a beneficiary of the Peplin Trust is able to transfer units or other interests in the Peplin
Trust, register or permit the registration of a new beneficiary of the Peplin Trust or a transfer
of interests in the Peplin Trust to an existing beneficiary; (l) blend or mix the Trust Property
with any other property; (m) delegate any powers conferred upon it by law or under the Trust Deed;
(n) allow any redemption or cancellation or repurchase of any units in the Peplin Trust; (o) enter
into any partnership, joint venture, joint ownership, common enterprise or profit sharing
arrangement or similar arrangement; (p) do anything, or omit to do anything, where the doing or the
omission to do may have the effect of releasing, waiving, harming or impairing any encumbrance
granted by or created under this Agreement or the Trustee’s Indemnity (“Trustee’s
Indemnity” means the present and future interest of Peplin Research as trustee in respect of
(i) its administration of the Peplin Trust, (ii) its right of indemnity from the Trust Property and
any beneficiary of the Peplin Trust, and (iii) any equitable liens and other encumbrances granted
to it securing any present or future interest of Peplin Research in respect of the Peplin Trust,
the Trust Property or the beneficiaries of the Peplin Trust, and all moneys paid or payable under
or in respect of any such right, title and interest); (q) propose or effect any increase in Peplin
Research’s remuneration as Trustee; (r) do anything which changes or would change the application
of the laws relating to income tax to the Peplin Trust; (s) do anything which detrimentally affects
the Trustee’s Indemnity; (t) create, or apply any capital of the Peplin Trust to, any sub trust of
the Peplin Trust or any other trust (a sub trust includes any trust in which Peplin Research hold
the beneficial interest as trustee of the Peplin Trust); (u) compromise any claim against the
Peplin Trust other than in the ordinary course of the ordinary business of the Peplin Trust; (v)
cause or permit or suffer any other person to do any of the things described in this Section 7.12.

8. DEFAULT AND REMEDIES.

     8.1. Events of Default. Loan Parties shall be in default under this Agreement and each of the
other Debt Documents if (each of the following, an “Event of Default”):

     (a) Borrower shall fail to pay (i) any principal when due, (ii) any interest, fees or
other Obligations (other than as specified in clause (i) within a period of 3 days after the
due date thereof (other than on the Applicable Term Loan Maturity Date)), or (iii) fails to
pay or reimburse Finance Parties for any expense reimbursable hereunder or under any other
Debt Document within ten (10) Business Days following the Finance Party’s demand in
accordance with the terms and conditions of this Agreement or that other Debt Document for
such reimbursement or payment of expenses;

     (b) any Loan Party breaches any of its obligations under Section 2.3(g), Section 6.1
(solely as it relates to maintaining its existence), Section 6.2, Section 6.3, Section 6.4,
or Article 7;

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     (c) any Loan Party breaches any of its other obligations under any of the Debt
Documents and fails to cure such breach within 30 days after the earlier of (i) the date on
which an officer of such Loan Party becomes aware, or through the exercise of reasonable
diligence should have become aware, of such failure and (ii) the date on which notice shall
have been given to Borrower from Finance Party;

     (d) any warranty, representation or statement made or deemed made by or on behalf of
any Loan Party in any of the Debt Documents or otherwise in connection with any of the
Obligations shall be false or misleading in any material respect as of the date made or
deemed made;

     (e) (i) any of the Collateral is subjected to attachment, execution, levy, seizure or
confiscation in any legal proceeding or otherwise, or if any legal or administrative
proceeding is commenced against any Loan Party or any of the Collateral, which in the good
faith judgment of Agent subjects any of the Collateral (other than Collateral not exceeding
$50,000 in value) to a material risk of attachment, execution, levy, seizure or confiscation
and no bond is posted or protective order obtained to negate such risk; or (ii) any
distress, attachment, execution or other process of a Government Agency in an amount
exceeding $50,000 is issued against, levied or enforced upon any Trust Property or any of
the assets of any Loan Party and is not set aside or satisfied within 7 days;

     (f) one or more money judgments, orders or decrees shall be rendered against any Loan
Party or any Subsidiary of a Loan Party that exceeds by more than $100,000 any insurance
coverage applicable thereto (to the extent the relevant insurer has been notified of such
claim and has not denied coverage therefor) and either (i) enforcement proceedings shall
have been entered or filed against a Loan Party by any creditor upon any such judgment,
order or decree or (ii) such judgment, order or decree shall not have been vacated or
discharged for a period of 10 consecutive days and there shall not be in effect (by reason
of a pending appeal or otherwise) any stay of enforcement thereof;

     (g) (i) any Loan Party or any Subsidiary of a Loan Party shall generally not pay its
debts as such debts become due, shall admit in writing its inability to pay its debts
generally, shall make a general assignment for the benefit of creditors, or shall cease
doing business as a going concern, (ii) any proceeding shall be instituted by or against any
Loan Party or any Subsidiary of a Loan Party seeking to adjudicate it a bankrupt or
insolvent or seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief, composition of it or its debts or any similar order, in each case under
any law relating to bankruptcy, insolvency or reorganization or relief of debtors or seeking
the entry of an order for relief or the appointment of a custodian, receiver, trustee, Irish
law examiner, conservator, liquidating agent, liquidator, other similar official or other
official with similar powers, in each case for it or for any substantial part of its
property and, in the case of any such proceedings instituted against (but not by or with the
consent of) such Loan Party or such Subsidiary, either such proceedings shall remain
undismissed or unstayed for a period of 45 days or more or an order granting the relief
sought in such case or proceeding shall be granted by a court of competent jurisdiction,
(iii) an Event of Insolvency (as defined below) occurs or (iii) any Loan Party or any
Subsidiary of a Loan Party shall take any corporate or similar action or any other action to
authorize any action described in clause (i), (ii) or (iii) above.
“Event of Insolvency” means, in respect of a corporation any of the following events
(i) the corporation is dissolved (whether pursuant to Chapter 5A of the Corporations Act
2001 (Cth) (“Corporations Act”) or otherwise), (ii) a Controller
(“Controller” has the meaning as defined in section 9 of the Corporations Act),
liquidator, provisional liquidator, voluntary administrator or administrator is appointed in
respect of the corporation or any of its assets; (iii)

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other than for the purposes of a solvent reconstruction, merger or amalgamation which
has the prior written consent of the Lenders, an application is made to a court, a meeting
is convened or a resolution is passed for the corporation to be wound up or dissolved or for
the appointment of a Controller, liquidator, provisional liquidator, voluntary administrator
or administrator to the corporation or any of its assets and such application is not
withdrawn or dismissed within 10 business days, (iv) except for the purpose of a solvent
reconstruction, merger or amalgamation which has the prior written consent of the Lender,
the corporation (a) resolves to enter into, or enters into, a scheme of arrangement, a deed
of company arrangement or composition with its creditors or an assignment for their benefit,
(b) proposes or is subject to a moratorium of its debts; or (c) takes proceedings or actions
similar to those mentioned in this paragraph as a result of which the corporation’s assets
are, or are proposed to be, submitted to the control of its creditors, (v) the corporation
seeks or obtains protection from its creditors under any statute or any other law; (vi) the
corporation is unable to pay all of its debts as and when they become due and payable, (vii)
any attachment, distress, execution or other process is made or levied against any asset of
the corporation in an amount in excess of $50,000 and is not withdrawn, stayed or dismissed
within 10 business days or Agent is satisfied that it is being contested in good faith by
appropriate proceedings and there are reasonable prospects of success; (viii) the
corporation ceases to carry on all or a substantial part of its business (or threatens to do
so); or (ix) an event occurs in relation to the corporation which is analogous to anything
referred to above or which has a substantially similar effect;

     (h) an event or development occurs which could reasonably be expected to have a
Material Adverse Effect;

     (i) (i) any provision other than an immaterial provision of any Debt Document shall
fail to be valid and binding on, or enforceable against, a Loan Party party thereto or (ii)
any Debt Document purporting to grant a security interest to secure any Obligation shall
fail to create a valid and enforceable security interest on any Collateral purported to be
covered thereby or such security interest shall fail or cease to be a perfected lien with
the priority required in the relevant Debt Document or any Loan Party shall state in writing
that any of the events described in clause (i) or (ii) above shall have
occurred;

     (j) (i) any Loan Party or any Subsidiary of a Loan Party defaults under any Material
Agreement (after any applicable grace period contained therein), (ii) (A) any Loan Party or
any Subsidiary of a Loan Party fails to make (after any applicable grace period) any payment
when due (whether due because of scheduled maturity, required prepayment provisions,
acceleration, demand or otherwise) on any Indebtedness (other than the Obligations) of such
Loan Party or such Subsidiary having an aggregate principal amount (including undrawn
committed or available amounts and including amounts owing to all creditors under any
combined or syndicated credit arrangement) of more than $200,000 (“Material
Indebtedness”), (B) any other event shall occur or condition shall exist under any
contractual obligation relating to any such Material Indebtedness, if the effect of such
event or condition is to accelerate, or to permit the acceleration of (without regard to any
subordination terms with respect thereto), the maturity of such Material Indebtedness or (C)
any such Material Indebtedness shall become or be declared to be due and payable, or be
required to be prepaid, redeemed, defeased or repurchased (other than by a regularly
scheduled required prepayment), prior to the stated maturity thereof, or (iii) Borrower or
any other Loan Party defaults under any obligation for payments due under any lease
agreement in excess of $100,000; or

     (k) (i) other than in connection with a Qualifying IPO (as used herein, “Qualifying
IPO” means an underwritten primary public offering (other than a public offering pursuant to
a

26

 

registration statement on Form S-8 (or any successor form)) of the common capital stock
of the Parent with respect to which the Parent receives net cash proceeds of not less than
$40,000,000 pursuant to an effective registration statement filed with the United States
Securities and Exchange Commission in accordance with the Securities Act of 1933 (as amended
from time to time, and the rules and regulations promulgated thereunder). (a) the
acquisition, directly or indirectly, by any person or group (as such term is used in
Section 13(d)(3) of the Securities Exchange Act of 1934) of more than forty percent (40%) of
the voting power of the voting stock of Parent by way of merger or consolidation or
otherwise, and (b) during any period of twelve consecutive calendar months, individuals who
at the beginning of such period constituted the board of directors of Parent (together with
any new directors whose election by the board of directors of Parent or whose nomination for
election by the stockholders of Parent was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the beginning of such period or
whose election or nomination for election was previously so approved) cease for any reason
other than death or disability to constitute a majority of the directors then in office ,
(ii) Borrower or Parent ceases to own and control, directly or indirectly, all of the
economic and voting rights associated with the outstanding voting capital stock (or other
voting equity interest) of each of its Subsidiaries of the Borrower, or (iii) Parent ceases
to own and control, directly or indirectly, all of the economic and voting rights associated
with the outstanding voting capital stock (or other voting equity interest) of each of its
Subsidiaries.

     (l) any Encumbrance (defined below) is or becomes enforceable against any Trust
Property or other Collateral or any asset of any Loan Party. “Encumbrance” means an
interest or power (i) reserved in or over an interest in any asset including, but not
limited to, any retention of title; or (ii) created or otherwise arising in or over any
interest in any asset under a bill of sale, mortgage, charge, lien, pledge, trust or power;
by way of, or having similar commercial effect to, security for the payment of a debt, any
other monetary obligation or the performance of any other obligation, and includes, but is
not limited to, any agreement to grant or create any of the above.

     (m) Peplin Research ceases to be the sole trustee of the Peplin Trust or the Trust Deed
is amended without the prior written consent of the Agent which consent must not be
unreasonably withheld.

     (n) when any of the following events occurs: (i) when a resolution is passed or a
direction is given by the beneficiaries of the Peplin Trust for the winding-up or
termination of the Peplin Trust, (ii) when all of the beneficiaries of the Peplin Trust give
a direction to Peplin Research as trustee of the Peplin Trust to distribute the assets of
the Peplin Trust, (iii) upon the termination of the Peplin Trust, whether under the Trust
Deed or by expiration of time or otherwise; (iv) when an order is made requiring
distribution of any Trust assets to any person or appointing a receiver in respect of the
Peplin Trust; (v) when Peplin Research as trustee of the Peplin Trust resolves, or any other
person on whose instructions that trustee must act directs the trustee, to distribute any
corpus of the Trust Property which is subject to the floating charge under the Australian
Group Charge or Australian Featherweight Charge.

     8.2. Lender Remedies. Upon the occurrence and continuation of any Event of Default, Agent or
Security Trustee may, and at the written request of the Requisite Lenders shall, terminate the
Commitments and declare any or all of the Obligations to be immediately due and payable, without
demand or notice to any Loan Party and the accelerated Obligations shall bear interest at the
Default Rate pursuant to Section 2.6, provided that, upon the occurrence of any Event of Default
specified in Section 8.1(g) above, the Obligations shall be automatically accelerated. After the
occurrence of an Event of

27

 

Default, Agent or Security Trustee shall have (on behalf of itself and Lenders) all of the
rights and remedies of a secured party under the Corporations Act, UCC, and under any other
applicable law. For the purposes of this Agreement “Requisite Lenders” means Lenders
having an aggregate Pro Rata Share of the Total Commitment or Term Loan of at least 60% provided
that, if an original Lender has not assigned any of its principal outstanding since the Close Date,
the Requisite Lenders must include that Lender.

     8.3. Additional Remedies. In addition to the remedies provided in Section 8.2 above, each Loan
Party hereby grants to Security Trustee, Agent (on behalf of itself and Lenders) and any transferee
of Collateral, for purposes of exercising its remedies as provided herein, upon the occurrence and
continuation of any Event of Default an irrevocable, nonexclusive license (exercisable without
payment of royalty or other compensation to any Loan Party) to use, license or sublicense any
Intellectual Property now owned or hereafter acquired by such Loan Party, and wherever the same may
be located, and including in such license access to all media in which any of the licensed items
may be recorded or stored and to all computer software and programs used for the compilation or
printout thereof.

     8.4. Application of Proceeds. Proceeds from any Transfer of the Collateral or the
Intellectual Property (other than Permitted Dispositions) and all payments made to or proceeds of
Collateral received by Security Trustee during the continuance of an Event of Default shall be
applied as follows: (a) first, to pay all fees, costs, indemnities, reimbursements and expenses
then due to Security Trustee under the Debt Documents in its capacity as Security Trustee under the
Debt Documents, (b) second, to pay all fees, costs, indemnities, reimbursements and expenses then
due to Lenders under the Debt Documents in accordance with their respective Pro Rata Shares, until
paid in full, (c) third, to pay all interest on the Term Loan then due to Lenders in accordance
with their respective Pro Rata Shares, until paid in full (other than interest accrued after the
commencement of any proceeding referred to in Section 8.1(g) if a claim for such interest is not
allowable in such proceeding), (d) fourth, to pay all principal on the Term Loan then due to
Lenders in accordance with their respective Pro Rata Shares, until paid in full (e) fifth, to pay
all other Obligations then due to Lenders in accordance with their respective Pro Rata Shares,
until paid in full (including, without limitation, all interest accrued after the commencement of
any proceeding referred to in Section 8.1(g) whether or not a claim for such interest is allowable
in such proceeding), and (f) sixth, to Borrower or as otherwise required by law. Borrower shall
remain fully liable for any deficiency.

9. THE AGENT.

     9.1. Appointment of Agent.

     (a) Each Lender hereby appoints GECC (together with any successor Agent pursuant to
Section 9.9) as Agent under the Debt Documents and authorizes the Agent to (a)
execute and deliver the Debt Documents and accept delivery thereof on its behalf from Loan
Parties, (b) take such action on its behalf and to exercise all rights, powers and remedies
and perform the duties as are expressly delegated to the Agent under such Debt Documents and
(c) exercise such powers as are reasonably incidental thereto. The provisions of this
Article 9 are solely for the benefit of Finance Parties and none of Loan Parties nor any
other person shall have any rights as a third party beneficiary of any of the provisions
hereof. In performing its functions and duties under this Agreement and the other Debt
Documents, Agent shall act solely as an agent of Lenders and does not assume and shall not
be deemed to have assumed any obligation toward or relationship of agency or trust with or
for any Loan Party or any other person. Agent shall have no duties or responsibilities
except for those expressly set forth in this Agreement and the other Debt Documents. The
duties of Agent shall be mechanical and administrative in nature and Agent shall not have,
or be deemed to have, by reason of this Agreement, any other Debt Document or

28

 

otherwise a fiduciary or trustee relationship in respect of any Lender. Except as
expressly set forth in this Agreement and the other Debt Documents, Agent shall not have any
duty to disclose, and shall not be liable for failure to disclose, any information relating
to Borrower or any other Loan Party that is communicated to or obtained by GECC or any of
its affiliates in any capacity.

     (b) Without limiting the generality of clause (a) above, Agent (through either itself
or the Security Trustee) shall have the sole right and authority (to the exclusion of the
Lenders), and is hereby authorized, to (i) act as the disbursing and collecting agent for
the Lenders with respect to all payments and collections arising in connection with the Debt
Documents (including in any other bankruptcy, insolvency or similar proceeding), and each
person making any payment in connection with any Debt Document to any Lender is hereby
authorized to make such payment to Agent, (ii) file and prove claims and file other
documents necessary or desirable to allow the claims of Agent and Lenders with respect to
any Obligation in any proceeding described in any bankruptcy, insolvency or similar
proceeding (but not to vote, consent or otherwise act on behalf of such Lender), (iii) act
as collateral agent for Agent and each Lender for purposes of the perfection of all liens
created by the Debt Documents and all other purposes stated therein, (iv) manage, supervise
and otherwise deal with the Collateral, (v) take such other action as is necessary or
desirable to maintain the perfection and priority of the liens created or purported to be
created by the Debt Documents, (vi) except as may be otherwise specified in any Debt
Document, exercise all remedies given to Agent and the other Lenders with respect to the
Collateral, whether under the Debt Documents, applicable law or otherwise and (vii) execute
any amendment, consent or waiver under the Debt Documents on behalf of any Lender that has
consented in writing to such amendment, consent or waiver; provided,
however, that Agent hereby appoints, authorizes and directs each Lender to act as
collateral sub-agent for Agent and the Lenders for purposes of the perfection of all liens
with respect to the Collateral, including any deposit account maintained by a Loan Party
with, and cash and cash equivalents held by, such Lender, and may further authorize and
direct the Lenders to take further actions as collateral sub-agents for purposes of
enforcing such liens or otherwise to transfer the Collateral subject thereto to Agent, and
each Lender hereby agrees to take such further actions to the extent, and only to the
extent, so authorized and directed. Agent may, upon any term or condition it specifies,
delegate or exercise any of its rights, powers and remedies under, and delegate or perform
any of its duties or any other action with respect to, any Debt Document by or through any
trustee, co-agent, employee, attorney-in-fact and any other person (including any Lender).
Any such person shall benefit from this Article 9 to the extent provided by Agent.

     (c) If Agent shall request instructions from Requisite Lenders or all affected Lenders
with respect to any act or action (including failure to act) in connection with this
Agreement or any other Debt Document, then Agent shall be entitled to refrain from such act
or taking such action unless and until Agent shall have received instructions from Requisite
Lenders or all affected Lenders, as the case may be, and Agent shall not incur liability to
any person by reason of so refraining. Agent shall be fully justified in failing or
refusing to take any action hereunder or under any other Debt Document (a) if such action
would, in the opinion of Agent, be contrary to law or any Debt Document, (b) if such action
would, in the opinion of Agent, expose Agent to any potential liability under any law,
statute or regulation or (c) if Agent shall not first be indemnified to its satisfaction
against any and all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. Without limiting the foregoing, no Lender shall have
any right of action whatsoever against Agent as a result of Agent acting or refraining from
acting hereunder or under any other Debt Document in accordance with the instructions of
Requisite Lenders or all affected Lenders, as applicable.

29

 

     9.2. Agent’s Reliance, Etc. Neither Agent nor any of its affiliates nor any of their
respective directors, officers, agents, employees or representatives shall be liable for any action
taken or omitted to be taken by it or them hereunder or under any other Debt Documents, or in
connection herewith or therewith, except for damages caused by its or their own gross negligence or
willful misconduct as finally determined by a court of competent jurisdiction. Without limiting
the generality of the foregoing, Agent: (a) may treat the payee of any Note as the holder thereof
until such Note has been assigned in accordance with Section 11.1; (b) may consult with legal
counsel, independent public accountants and other experts, whether or not selected by it, and shall
not be liable for any action taken or omitted to be taken by it in good faith in accordance with
the advice of such counsel, accountants or experts; (c) shall not be responsible or otherwise incur
liability for any action or omission taken in reliance upon the instructions of the Requisite
Lenders, (d) makes no warranty or representation to any Lender and shall not be responsible to any
Lender for any statements, warranties or representations made in or in connection with this
Agreement or the other Debt Documents; (e) shall not have any duty to inspect the Collateral
(including the books and records) or to ascertain or to inquire as to the performance or observance
of any provision of any Debt Document, whether any condition set forth in any Debt Document is
satisfied or waived, as to the financial condition of any Loan Party or as to the existence or
continuation or possible occurrence or continuation of any Default or Event of Default and shall
not be deemed to have notice or knowledge of such occurrence or continuation unless it has received
a notice from Borrower or any Lender describing such Default or Event of Default clearly labeled
“notice of default”; (f) shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, effectiveness, genuineness, sufficiency or value of, or the attachment,
perfection or priority of any lien created or purported to be created under or in connection with,
any Debt Document or any other instrument or document furnished pursuant hereto or thereto; and (g)
shall incur no liability under or in respect of this Agreement or the other Debt Documents by
acting upon any notice, consent, certificate or other instrument or writing (which may be by
telecopy, telegram, cable or telex) believed by it to be genuine and signed or sent or otherwise
authenticated by the proper party or parties.

     9.3. GECC and Affiliates. GECC shall have the same rights and powers under this Agreement and
the other Debt Documents as any other Lender and may exercise the same as though it were not Agent;
and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include GECC in its
individual capacity. GECC and its affiliates may lend money to, invest in, and generally engage in
any kind of business with, Borrower, any other Loan Parties, any of their Affiliates and any person
who may do business with or own securities of Borrower, any other Loan Party or any such Affiliate,
all as if GECC were not Agent and without any duty to account therefor to Lenders. GECC and its
affiliates may accept fees and other consideration from Borrower or other Loan Party for services
in connection with this Agreement or otherwise without having to account for the same to Lenders.
Each Lender acknowledges the potential conflict of interest between GECC as a Lender holding
disproportionate interests in the Term Loans and GECC as Agent, and expressly consents to, and
waives, any claim based upon, such conflict of interest.

     9.4. Lender Credit Decision. Each Lender acknowledges that it has, independently and without
reliance upon Agent or any other Lender and based on the financial statements referred to in
Section 6.3 and such other documents and information as it has deemed appropriate, made its own
credit and financial analysis of each Loan Party and its own decision to enter into this Agreement.
Each Lender also acknowledges that it will, independently and without reliance upon Agent or any
other Lender and based on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under this Agreement.
Each Lender acknowledges the potential conflict of interest of each other Lender as a result of
Lenders holding disproportionate interests in the Term Loans, and expressly consents to, and
waives, any claim based upon, such conflict of interest.

30

 

     9.5. Indemnification. Lenders shall and do hereby indemnify Agent (to the extent not
reimbursed by Loan Parties and without limiting the obligations of Loan Parties hereunder), ratably
according to their respective Pro Rata Shares from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted
against Agent in any way relating to or arising out of this Agreement or any other Debt Document or
any action taken or omitted to be taken by Agent in connection therewith; provided that no
Lender shall be liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting from Agent’s gross
negligence or willful misconduct as finally determined by a court of competent jurisdiction.
Without limiting the foregoing, each Lender agrees to reimburse Agent promptly upon demand for its
Pro Rata Share of any out-of-pocket expenses (including reasonable counsel fees) incurred by Agent
in connection with the preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement and each other Debt Document, to the
extent that Agent is not reimbursed for such expenses by Loan Parties. The provisions of this
Section 9.5 shall survive the termination of this Agreement.

     9.6. Successor Agent. Agent may resign at any time by giving not less than 30 days’ prior
written notice thereof to Lenders and Borrower. Upon any such resignation, the Requisite Lenders
shall have the right to appoint a successor Agent (in consultation with Borrower). If no successor
Agent shall have been so appointed by the Requisite Lenders and shall have accepted such
appointment within 30 days after the resigning Agent’s giving notice of resignation, then the
resigning Agent may, on behalf of Lenders, appoint a successor Agent, which shall be a Lender, if a
Lender is willing to accept such appointment, or otherwise shall be a commercial bank or financial
institution or a subsidiary of a commercial bank or financial institution if such commercial bank
or financial institution is organized under the laws of the United States of America or of any
State thereof and has a combined capital and surplus of at least $300,000,000. If no successor
Agent has been appointed pursuant to the foregoing, within 30 days after the date such notice of
resignation was given by the resigning Agent, such resignation shall become effective and the
Requisite Lenders shall thereafter perform all the duties of Agent hereunder until such time, if
any, as the Requisite Lenders appoint a successor Agent as provided above. Upon the acceptance of
any appointment as Agent hereunder by a successor Agent, such successor Agent shall succeed to and
become vested with all the rights, powers, privileges and duties of the resigning Agent. Upon the
earlier of the acceptance of any appointment as Agent hereunder by a successor Agent or the
effective date of the resigning Agent’s resignation, the resigning Agent shall be discharged from
its duties and obligations under this Agreement and the other Debt Documents, except that any
indemnity rights or other rights in favor of such resigning Agent shall continue. After any
resigning Agent’s resignation hereunder, the provisions of this Section 9 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was acting as Agent under
this Agreement and the other Debt Documents.

     9.7. Setoff and Sharing of Payments. In addition to any rights now or hereafter granted under
applicable law and not by way of limitation of any such rights, upon the occurrence and during the
continuance of any Event of Default and subject to Section 9.8(e), each Lender is hereby authorized
at any time or from time to time upon the direction of Agent, without notice to Borrower or any
other person, any such notice being hereby expressly waived, to offset and to appropriate and to
apply any and all balances held by it at any of its offices for the account of Borrower (regardless
of whether such balances are then due to Borrower) and any other properties or assets at any time
held or owing by that Lender or that holder to or for the credit or for the account of Borrower
against and on account of any of the Obligations that are not paid when due. Any Lender exercising
a right of setoff or otherwise receiving any payment on account of the Obligations in excess of its
Pro Rata Share thereof shall purchase for cash (and the other Lenders or holders shall sell) such
participations in each such other Lender’s or holder’s

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Pro Rata Share of the Obligations as would be necessary to cause such Lender to share the
amount so offset or otherwise received with each other Lender or holder in accordance with their
respective Pro Rata Shares of the Obligations. Borrower agrees, to the fullest extent permitted by
law, that (a) any Lender may exercise its right to offset with respect to amounts in excess of its
Pro Rata Share of the Obligations and may sell participations in such amounts so offset to other
Lenders and holders and (b) any Lender so purchasing a participation in the Term Loans made or
other Obligations held by other Lenders or holders may exercise all rights of offset, bankers’
lien, counterclaim or similar rights with respect to such participation as fully as if such Lender
or holder were a direct holder of the Term Loans and the other Obligations in the amount of such
participation. Notwithstanding the foregoing, if all or any portion of the offset amount or
payment otherwise received is thereafter recovered from the Lender that has exercised the right of
offset, the purchase of participations by that Lender shall be rescinded and the purchase price
restored without interest. The term “Pro Rata Share” means, with respect to any Lender at
any time, the percentage obtained by dividing (x) the Commitment of such Lender then in effect (or,
if such Commitment is terminated, the aggregate outstanding principal amount of the Term Loans
owing to such Lender) by (y) the Total Commitment then in effect (or, if the Total Commitment is
terminated, the outstanding principal amount of the Term Loans owing to all Lenders).

     Any Lender exercising the foregoing right of set off will give notice of same promptly after
such exercise; provided that its failure to do so shall not give rise to any liability or damages,
nor affect in any way the rights and obligations of the parties to, and validity or enforceability
of the Debt Documents.

     9.8. Advances; Payments; Non-Funding Lenders; Information; Actions in Concert.

     (a) Advances; Payments. If Agent receives any payment for the account of
Lenders on or prior to 11:00 a.m. (New York time) on any Business Day, Agent shall pay to
each applicable Lender such Lender’s Pro Rata Share of such payment on such Business Day. If
Agent receives any payment for the account of Lenders after 11:00 a.m. (New York time) on
any Business Day, Agent shall pay to each applicable Lender such Lender’s Pro Rata Share of
such payment on the next Business Day. To the extent that any Lender has failed to fund any
such payments and Term Loans (a “Non-Funding Lender”), Agent shall be entitled to
set off the funding short-fall against that Non-Funding Lender’s Pro Rata Share of all
payments received from Borrower.

     (b) Return of Payments.

(i) If Agent pays an amount to a Lender under this Agreement in the belief or
expectation that a related payment has been or will be received by Agent from a Loan
Party and such related payment is not received by Agent, then Agent will be entitled
to recover such amount (including interest accruing on such amount at the Federal
Funds Rate for the first Business Day and thereafter, at the rate otherwise
applicable to such Obligation) from such Lender on demand without setoff,
counterclaim or deduction of any kind.

(ii) If Agent determines at any time that any amount received by Agent under this
Agreement must be returned to a Loan Party or paid to any other person pursuant to
any insolvency law or otherwise, then, notwithstanding any other term or condition
of this Agreement or any other Debt Document, Agent will not be required to
distribute any portion thereof to any Lender. In addition, each Lender will repay
to Agent on demand any portion of such amount that Agent has distributed to such
Lender, together with interest at such rate, if any, as Agent is required to pay to
a Loan Party or such other person, without setoff, counterclaim or deduction of any
kind.

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     (c) Non-Funding Lenders. The failure of any Non-Funding Lender to make any
Term Loan or any payment required by it hereunder shall not relieve any other Lender (each
such other Lender, an “Other Lender”) of its obligations to make such Term Loan, but
neither any Other Lender nor Agent shall be responsible for the failure of any Non-Funding
Lender to make a Term Loan or make any other payment required hereunder. Notwithstanding
anything set forth herein to the contrary, a Non-Funding Lender shall not have any voting or
consent rights under or with respect to any Debt Document or constitute a “Lender” (or be
included in the calculation of “Requisite Lender” hereunder) for any voting or consent
rights under or with respect to any Debt Document. At Borrower’s request, Agent or a person
reasonably acceptable to Agent shall have the right with Agent’s consent and in Agent’s sole
discretion (but shall have no obligation) to purchase from any Non-Funding Lender, and each
Non-Funding Lender agrees that it shall, at Agent’s request, sell and assign to Agent or
such person, all of the Commitments and all of the outstanding Term Loans of that
Non-Funding Lender for an amount equal to the principal balance of all Term Loans held by
such Non-Funding Lender and all accrued interest and fees with respect thereto through the
date of sale, such purchase and sale to be consummated pursuant to an executed Substitution
Certificate (as defined below).

     (d) Dissemination of Information. Agent shall use reasonable efforts to
provide Lenders with any notice of Default or Event of Default received by Agent from, or
delivered by Agent to Borrower, with notice of any Event of Default of which Agent has
actually become aware and with notice of any action taken by Agent following any Event of
Default; provided that Agent shall not be liable to any Lender for any failure to do
so, except to the extent that such failure is attributable to Agent’s gross negligence or
willful misconduct as finally determined by a court of competent jurisdiction. Lenders
acknowledge that Borrower is required to provide financial statements to Lenders in
accordance with Section 6.3 hereto and agree that Agent shall have no duty to provide the
same to Lenders.

     (e) Actions in Concert. Anything in this Agreement to the contrary
notwithstanding, each Lender hereby agrees with each other Lender that no Lender shall take
any action to protect or enforce its rights arising out of this Agreement, the Notes or any
other Debt Documents (including exercising any rights of setoff) without first obtaining the
prior written consent of Agent and Requisite Lenders, it being the intent of Lenders that
any such action to protect or enforce rights under this Agreement and the Notes shall be
taken in concert and at the direction or with the consent of Agent and Requisite Lenders.

10 INDEMNITIES AND BREAK COSTS

10.1 General Indemnity

     (i) Each Loan Party, jointly and severally, indemnifies each Finance Party against any Loss
(as defined below) which that Finance Party, a Receiver (as defined below) (whether acting as agent
of a Loan Party or of a Finance Party) or an attorney pays, suffers, incurs or is liable for, in
respect of any of the following: (a) the Term Loan not being made for any reason including any
failure by a Loan Party to fulfill any condition precedent contained in Section 4, but excluding
any default by that Finance Party; (b) the occurrence of any Default or Event of Default; (c) a
Finance Party exercising its Powers (as defined below) consequent upon or arising out of the
occurrence of any Default or Event of Default; (d) the non-exercise, attempted exercise, exercise
or delay in the exercise of any Power; (e) any act or omission of a Loan Party or any of its
employees or agents; (f) the occupation, use or ownership of any Collateral by a Security Provider
(defined below) or any of its employees or agents; (g) any workers’ compensation claim by any
employee of a Security Provider; (h) any insurance policy in respect of any Collateral; (i) any
compulsory acquisition or statutory or judicial divestiture of any Collateral; (j) any other thing
in

33

 

respect of a Security or any Collateral; and (k) any payment made by a Loan Party to a Finance
Party under Section 11.7. “Loss” means any claim, action, damage, loss, liability, cost,
charge, expense, outgoing or payment. “Receiver” means receiver or receiver and manager.
“Power” means any right, power, authority, discretion or remedy conferred on a Finance
Party, a Receiver or an attorney by this Agreement or any other Debt Document or any applicable
law. “Security Provider” means a person who has granted a Security. “Security”
means each of the Australian Group Charge, Australian Featherweight Charge, Group Guaranty, US
Guaranty, Pledge and Security Agreement, Irish Debenture.

(ii) The indemnity in Section 10.1(i), includes: (a) the amount determined by a Finance Party as
being incurred by reason of the liquidation or re-employment of deposits or other funds acquired or
contracted for by the Finance Party to fund or maintain its Commitment; and (b) loss of margin.

10.2 Foreign Currency Indemnity.

     If, at any time (i) a Finance Party, Receiver, or an attorney receives or recovers any amount
payable by a Loan Party including: (a) under any judgment or order of any Government Agency, (b)
for any breach of this Agreement or any other Debt Document, (c) on the liquidation or bankruptcy
of any Loan Party or any proof or claim in that liquidation or bankruptcy, or (d) any other thing
into which the obligations of any Loan Party may have become merged; and (ii) the currency in which
the payment is made is not in US Dollars; each Loan Party, jointly and severally, indemnifies each
Finance Party, Receiver, or attorney against any shortfall between the amount payable in US Dollars
and the amount actually or notionally received or recovered by each Finance Party, Receiver, or
attorney after the currency in which the payment is made is converted or translated into US Dollars
under Section 10.3.

10.3 Conversion of Currencies

     In making any currency conversion under Section 10.2, a Finance Party, Receiver, or attorney
may itself or through its bankers (in a manner consistent with their usual practices) purchase one
currency with another, whether or not through an intermediate currency, whether spot or forward, in
the manner and amounts and at the time it thinks fit.

10.4 Continuing indemnities and evidence of loss

     (i) Each indemnity of a Loan Party in this Loan Agreement or any other Debt Document is a
continuing obligation of the Loan Party, despite any settlement of account or the occurrence of any
other thing, and remains in full force and effect until: (a) the Obligations are fully and finally
repaid; and (b) each Security has been finally discharged. (ii) Each indemnity of a Loan Party in
this Loan Agreement or any other Debt Document is an additional, separate and independent
obligation of a Loan Party and no one indemnity limits the general nature of any other indemnity.
(iii) Each indemnity of a Loan Party in this Agreement or any other Debt Document survives the
termination of this Agreement or any other Debt Document. (iv) A certificate given by an officer of
a Finance Party detailing the amount of any Loss covered by any indemnity in this Agreement or any
other Debt Document is sufficient evidence unless the contrary is proved.

11 MISCELLANEOUS.

11.1 Assignment. Subject to the terms of this Section 11.1, any Lender may make an
assignment to a Qualified Assignee (as defined below) of, or sell participations in, at any
time or times, the Debt Documents, its Commitment, Term Loans or any portion thereof or
interest therein (but in the case of the Warrants, subject to the terms thereof), including
any Lender’s rights, title, interests, remedies, powers or duties thereunder. Any
assignment by a Lender shall:

34

 

(i) except in the case of an assignment to a Qualified Assignee, require the consent of each
Lender (which consent shall not be unreasonably withheld, conditioned or delayed), (ii)
require the execution of the substitution certificate, in or substantially in the form
attached as Schedule D (a “Substitution Certificate”) by the assigning Lender and
the assignee Lender, and delivery of the executed Substitution Certificate to the Agent at
least 2 Business Days before the substitution (or such shorter period as the Agent
approves); (iii) be conditioned on such assignee Lender representing to the assigning Lender
and Agent that it is purchasing the applicable Commitment and/or Term Loans to be assigned
to it for its own account, for investment purposes and not with a view to the distribution
thereof; (iv) be in an aggregate amount of not less than $1,000,000, unless such assignment
is made to an existing Lender or an affiliate of an existing Lender or is of the assignor’s
(together with its affiliates’) entire interest of the Term Loan or is made with the prior
written consent of Agent; and (v) include a payment to Agent of an assignment fee of $3,500.
In the case of an assignment by a Lender under this Section 11.1, the assignee shall have,
to the extent of such assignment, the same rights, benefits and obligations as all other
Lenders hereunder. The assigning Lender shall be relieved of its obligations hereunder with
respect to its Commitment and Term Loans, as applicable, or assigned portion thereof from
and after the date of such assignment. Borrower hereby acknowledges and agrees that any
assignment shall give rise to a direct obligation of Borrower to the assignee and that the
assignee shall be considered to be a “Lender”. In the event any Lender assigns or otherwise
transfers all or any part of the Commitments and Obligations, Agent shall so notify Borrower
and Borrower shall, upon the request of Agent, execute new Notes in exchange for the Notes,
if any, being assigned. Agent may amend Schedule A to this Agreement to reflect assignments
made in accordance with this Section. When Agent receives a Substitution Certificate under
this Section 11.1 it is authorized to, and must execute it on behalf of all the parties to
this agreement other than the assigning Lender and the assignee Lender, notify each of the
parties to this agreement of the substitution; and deliver copies of it to the Borrower, the
assigning Lender and the assignee Lender.

     As used herein, “Qualified Assignee” means (a) any Lender and any affiliate of any
Lender and (b) any commercial bank, savings and loan association or savings bank or any other
entity which is an “accredited investor” (as defined in Regulation D under the Securities Act)
which extends credit or buys loans as one of its businesses, including insurance companies, mutual
funds, lease financing companies and commercial finance companies, in each case, which has a rating
of BBB or higher from S&P and a rating of Baa2 or higher from Moody’s at the date that it becomes a
Lender and in each case of clauses (a) and (b), which, through its applicable lending office, is
capable of lending to Borrower without the imposition of any withholding (other than Australian
Interest Withholding Tax) or similar taxes; provided that no person proposed to become a
Lender after the Closing Date and determined by Agent to be acting in the capacity of a vulture
fund or distressed debt purchaser shall be a Qualified Assignee, and no person or Affiliate of such
person proposed to become a Lender after the Closing Date and that holds any subordinated debt or
stock issued by Borrower shall be a Qualified Assignee.

11.2 Notices. All notices, requests or other communications given in connection with this
Agreement shall be in writing, shall be addressed to the parties at their respective addresses set
forth on the signature pages hereto below such parties’ name or in the most recent Substitution
Certificate executed by any Lender, or in the case of any Loan Party to the address of the Parent
(or, solely in the case of service of process or other documents in accordance with Section 11.3
below, the address of the Borrower), unless and until a different address may be specified in a
written notice to the other party delivered in accordance with this Section, and shall be deemed
given: (a) on the date of receipt if delivered by hand, (b) on the date of sender’s receipt of
confirmation of proper transmission if sent by facsimile transmission, and (c) if to be sent from
and received at addresses within the same continent, on the next day on which banks are generally
open for business in that continent after being sent by a nationally-recognized overnight courier
servicing that continent.

35

 

As used in this Agreement, the term “Business Day” shall mean and include any day other
than Saturdays, Sundays, or other days on which commercial banks in New York, New York are required
or authorized to be closed.

     11.3 Process Agent. (i) Each Loan Party irrevocably, (a) nominates as its agent, to receive
service of process or other documents, the Borrower; and (b) agrees that service of process or
documents on that agent or any other person appointed under clause (a) will be sufficient service
on it. The process agent named above irrevocably and unconditionally accepts that appointment. Each
Loan Party will ensure that the process agent remains authorized to accept service on its behalf.
If the process agent ceases to have an office in the place specified, each Loan Party will ensure
that at all times there is another person in that place acceptable to the Agent to receive process
on its behalf. It must promptly notify the Agent in writing of the appointment of that other
person.

11.4 Correction of Debt Documents. Without the prior consent of the Borrower but after telephonic
consultation with the Borrower, Agent may correct patent errors and fill in all blanks in this
Agreement or the Debt Documents consistent with the agreement of the parties.

11.5 Performance. Time is of the essence of this Agreement. This Agreement shall be binding,
upon the parties hereto and their respective successors and assigns, and shall inure to the benefit
of their respective successors and assigns; provided that the Loan Parties may not assign or
transfer their rights or obligations hereunder without the consent of all Lenders.

11.6 Payment of Fees and Expenses. Loan Parties agree, jointly and severally, to pay or reimburse
upon demand for all documented and reasonable fees, costs and expenses incurred by the Finance
Parties in connection with (a) the investigation, preparation, negotiation, execution,
administration of, or any amendment, modification, waiver or termination of, this Agreement or any
other Debt Document, (b) the administration of any transaction contemplated hereby or thereby and
(c) the enforcement, assertion, defense or preservation of any Finance Party’s rights and remedies
under this Agreement or any other Debt Document, in each case of clauses (a) through (c),
including, without limitation, reasonable attorney’s fees and expenses, the allocated cost of
in-house legal counsel, reasonable fees and expenses of consultants, auditors and appraisers and
UCC and other corporate search and filing fees and wire transfer fees. Borrower further agrees
that such fees, costs and expenses shall constitute Obligations. This provision shall survive the
termination of this Agreement. The parties acknowledge and agree that as and from the Closing Date
until the occurrence of a Default that the Lenders entitlement to be reimbursed for legal costs
under this Section 11.6 shall only apply to external counsel engaged on their behalf by Agent.

11.7 Indemnity. Each Loan Party shall and does hereby jointly and severally indemnify and defend
all Finance Parties, and their respective successors and assigns, and their respective directors,
officers, employees, consultants, attorneys, agents and affiliates (each an “Indemnitee”)
from and against all liabilities, losses, damages, expenses, penalties, claims, actions and suits
(including, without limitation, related reasonable attorneys’ fees and the allocated costs of
in-house legal counsel) of any kind whatsoever arising, directly or indirectly, which may be
imposed on, incurred by or asserted against such Indemnitee as a result of or in connection with
this Agreement, the other Debt Documents or any of the transactions contemplated hereby or thereby
(the “Indemnified Liabilities”); provided that, no Loan Party shall have any obligation to
any Indemnitiee with respect to any Indemnified Liabilities to the extent such Indemnified
Liabilities arise from the gross negligence or willful misconduct of such Indemnitee as determined
by a final non-appealable judgment of a court of competent jurisdiction. This provision shall
survive the termination of this Agreement.

11.8 Rights Cumulative. Finance Party’s rights and remedies under this Agreement or otherwise
arising are cumulative and may be exercised singularly or concurrently. Neither the failure nor
any delay

36

 

on the part of any Finance Party to exercise any right, power or privilege under this Agreement
shall operate as a waiver, nor shall any single or partial exercise of any right, power or
privilege preclude any other or further exercise of that or any other right, power or privilege.
NONE OF ANY FINANCE PARTY SHALL BE DEEMED TO HAVE WAIVED ANY OF ITS RESPECTIVE RIGHTS UNDER THIS
AGREEMENT OR UNDER ANY OTHER AGREEMENT, INSTRUMENT OR PAPER SIGNED BY BORROWER UNLESS SUCH WAIVER
IS EXPRESSED IN WRITING AND SIGNED BY SECURITY TRUSTEE, AGENT, REQUISITE LENDERS OR ALL LENDERS, AS
APPLICABLE. A waiver on any one occasion shall not be construed as a bar to or waiver of any right
or remedy on any future occasion.

11.9 Entire Agreement; Amendments, Waivers.

(a) This Agreement and the other Debt Documents constitute the entire agreement between the
parties with respect to the subject matter hereof and thereof and supersede all prior
understandings (whether written, verbal or implied) with respect to such subject matter.
Section headings contained in this Agreement have been included for convenience only, and
shall not affect the construction or interpretation of this Agreement.

(b) Except for actions expressly permitted to be taken by Agent, no amendment, modification,
termination or waiver of any provision of this Agreement or any other Debt Document, or any
consent to any departure by any Loan Party therefrom, shall in any event be effective unless
the same shall be in writing and signed by all Finance Parties. Except as set forth in
clause (c) below, all such amendments, modifications, terminations or waivers requiring the
consent of any Lenders shall require the written consent of Requisite Lenders.

(c) No amendment, modification, termination or waiver of any provision of this Agreement or
any other Debt Document shall, unless in writing and signed by Security Trustee or Agent and
each Lender directly affected thereby: (i) increase or decrease any Commitment of any Lender
or increase or decrease the Total Commitment (which shall be deemed to affect all Lenders),
(ii) reduce the principal of or rate of interest on any Obligation or the amount of any fees
payable hereunder, (iii) postpone the date fixed for or waive any payment of principal of or
interest on any Term Loan, or any fees hereunder, (iv) release all or substantially all of
the Collateral, or consent to a transfer of all or substantially all of the Intellectual
Property, in each case, except as otherwise expressly permitted in the Debt Documents, (v)
subordinate the lien granted in favor of the Agent or Security Trustee securing the
Obligations, (vi) release a Loan Party from, or consent to a Loan Party’s assignment or
delegation of, such Loan Party’s obligations hereunder and under the other Debt Documents or
any Guarantor from its guaranty of the Obligations or (vi) amend, modify, terminate or waive
Section 8.4 or 11.8(b) or (c) or the definition of “Pro Rata Share”.

(d) Notwithstanding any provision in this Section 11.9 to the contrary, no amendment,
modification, termination or waiver affecting or modifying the rights or obligations of
Agent hereunder shall be effective unless signed by Borrower, Agent and Requisite Lenders.

11.10 Binding Effect. This Agreement shall continue in full force and effect until the date
on which all of the Obligations are indefeasibly repaid in full in cash, all of the
Commitments hereunder are terminated, and this Agreement shall have been terminated.(the
“Termination Date”); provided, however, that the expense reimbursement and
indemnity provisions contained in the Debt Documents, including, without limitation,
Sections 2.3(f), 9.5, 11.5 and 11.6 hereof shall survive the Termination Date. The
surrender, upon payment or otherwise, of any Note or any of the other Debt Documents
evidencing any of the Obligations shall not affect the right of Security Trustee or Agent to
retain the Collateral for such other Obligations as may then exist or

37

 

as it may be reasonably contemplated will exist in the future. This Agreement and the grant
of the security interest in the Collateral pursuant to Section 3.1 shall automatically be
reinstated if Finance Party is ever required to return or restore the payment of all or any
portion of the Obligations (all as though such payment had never been made).

11.11 Use of Logo. Each Loan Party authorizes Agent to use its name, logo and/or trademark
without notice to or consent by such Loan Party, in connection with certain promotional
materials relating to the financing transactions contemplated by this Agreement that Agent
may disseminate to the public. The promotional materials may include, but are not limited
to, brochures, video tape, internet website, press releases, advertising in newspaper and/or
other periodicals, lucites, and any other materials relating the fact that Agent has a
financing relationship with Borrower and such materials may be developed, disseminated and
used without Loan Parties’ review. Nothing herein obligates Agent to use a Loan Party’s
name, logo and/or trademark, in any promotional materials of Agent. Loan Parties shall not,
and shall not permit any of its respective Affiliates to, issue any press release or other
public disclosure (other than any document required to be filed with the SEC or any similar
governmental authority) using the name, logo or otherwise referring to General Electric
Capital Corporation, GE Healthcare Financial Services, Inc. or of any of their affiliates,
the Debt Documents or any transaction contemplated herein or therein without at least two
(2) Business Days prior written notice to and the prior written consent of Agent unless, and
only to the extent that, Loan Parties or such Affiliate is required to do so under
applicable law and then, only after consulting (if practicable) with Agent prior thereto,
unless prohibited by applicable law.

11.12 Waiver of Jury Trial. EACH OF LOAN PARTIES AND FINANCE PARTIES UNCONDITIONALLY WAIVE
ANY AND ALL RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS AGREEMENT, ANY OF THE OTHER DEBT DOCUMENTS, ANY OF THE INDEBTEDNESS SECURED HEREBY,
ANY DEALINGS AMONG LOAN PARTIES, AGENT, SECURITY TRUSTEE AND/OR LENDERS RELATING TO THE
SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT
IS BEING ESTABLISHED AMONG LOAN PARTIES, SECURITY TRUSTEE, AGENT AND/OR LENDERS. THE SCOPE
OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED
IN ANY COURT. THIS WAIVER IS IRREVOCABLE. THIS WAIVER MAY NOT BE MODIFIED EITHER ORALLY OR
IN WRITING. THE WAIVER ALSO SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS
OR MODIFICATIONS TO THIS AGREEMENT, ANY OTHER DEBT DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR
AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION. THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

11.13 Governing Law. THIS AGREEMENT, THE OTHER DEBT DOCUMENTS AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW SOUTH WALES (AUSTRALIA)
(WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE COLLATERAL. IF
ANY ACTION ARISING OUT OF THIS AGREEMENT OR ANY OTHER DEBT DOCUMENT IS COMMENCED BY AGENT OR
SECURITY TRUSTEE IN THE STATE COURTS OF THE STATE OF NEW SOUTH WALES (AUSTRALIA) ANY PROCESS
IN ANY SUCH ACTION SHALL BE

38

 

DULY SERVED IF MAILED BY REGISTERED MAIL, POSTAGE PREPAID, TO LOAN PARTIES AT THEIR ADDRESS
DESCRIBED IN SECTION 11.2, OR IF SERVED BY ANY OTHER MEANS PERMITTED BY APPLICABLE LAW.

11.14 Confidentiality. Agent and each Lender agrees, as to itself, to use commercially
reasonable efforts (equivalent to the efforts Agent or such Lender, as the case may be,
applies to maintaining the confidentiality of its own confidential information) to maintain
as confidential all confidential information provided to it by Borrower and designated as
confidential for a period of two (2) years following the Applicable Term Loan Maturity Date,
except that Agent and Lenders may disclose such information (a) to persons employed or
engaged by Agent or a Lender; (b) to any bona fide assignee or participant or potential
assignee or participant that has agreed to comply with the covenant contained in this
Section 11.14 (and any such bona fide assignee or participant or potential assignee or
participant may disclose such information to persons employed or engaged by them as
described in clause (a) above); (c) as required or requested by any governmental
authority or reasonably believed by Agent or any Lender to be compelled by any court decree,
subpoena or legal or administrative order or process; (d) as, on the advice of Agent’s or
such Lender’s counsel, required by law; (e) in connection with the exercise of any right or
remedy under the Debt Documents or in connection with any litigation to which Agent or such
Lender is a party or bound; (f) that ceases to be confidential through no fault of Agent or
such Lender or (g) persons employed by Agent’s strategic marketing partners.

11.15 Counterparts. This Agreement may be executed in any number of counterparts and by
different parties in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute one and the same
agreement. Delivery of an executed signature page of this Agreement by facsimile
transmission or electronic transmission shall be as effective as delivery of a manually
executed counterpart hereof.

[Signature Page Follows]

39

 

EXECUTED as an Agreement

BORROWER:

	 	 	 	 	 	 	 	 	 
	Signed for:	 	 	 	 	 	 
	PEPLIN LIMITED (ACN 090 819 275)	 	 	 	 
	by its attorney:	 	 	 	 
	 	 	 	 	 	 	in the presence of:
	 
	 	 	 	 	 	 	 	 
	Signed:

	 	/s/ David Smith	 	 	 	Signed:	 	/s/ Justine de Lula 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Attorney
	 	 	 	 	 	Witness
	 
	 	 	 	 	 	 	 	 
	Print name:

	 	David Smith 	 	 	 	Print name:	 	Justine de Lula 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PARENT:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed for:	 	 	 	 	 	 
	PEPLIN, INC. (INCLUDING AS GUARANTOR)	 	 	 	 
	by:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature:
	 	/s/ Philip Moody	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	Philip Moody	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:
	 	CFO	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EACH GUARANTOR:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed for:	 	 	 	 	 	 
	PEPLIN OPERATIONS PTY LTD (ACN 093 317 367)	 	 	 	 
	by its attorney:	 	 	 	 	 	 
	 	 	 	 	 	 	in the presence of:
	 
	 	 	 	 	 	 	 	 
	Signed:

	 	/s/ David Smith 	 	 	 	Signed:	 	/s/ Justine de Lula 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Attorney
	 	 	 	 	 	Witness
	 
	Print name:

	 	David Smith 	 	 	 	Print name:	 	Justine de Lula 
	 

	 	 
	 	 	 	 	 	 

1

 

Signed for:

PEPLIN RESEARCH PTY LTD (ACN 081 104 190)

in its personal capacity

by its attorney:

	 	 	 	 	 	 	 	 	 
	Signed:

	 	/s/ David Smith 	 	 
	 	Signed:	 	/s/ Justine de Lula 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Attorney
	 	 	 	 	 	Witness
	 
	 	 	 	 	 	 	 	 
	Print name:

	 	David Smith 	 	 	 	Print name:	 	Justine de Lula 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed for:	 	 	 	 	 	 
	PEPLIN RESEARCH PTY LTD (ACN 081 104 190)	 	 	 	 
	in its capacity as trustee of the Peplin Trust	 	 	 	 
	by its attorney:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed:

	 	/s/ David Smith 	 	 	 	Signed:	 	/s/ Justine de Lula 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Attorney
	 	 	 	 	 	Witness
	 
	 	 	 	 	 	 	 	 
	Print name:

	 	David Smith 	 	 	 	Print name:	 	Justine de Lula 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed for:	 	 	 	 	 	 
	PEPLIN BIOLIPIDS PTY LTD (ACN 105 890 882)	 	 	 	 
	by its attorney:	 	 	 	 	 	 
	 	 	 	 	 	 	in the presence of:
	 
	 	 	 	 	 	 	 	 
	Signed:

	 	/s/ David Smith 	 	 	 	Signed:	 	/s/ Justine de Lula 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Attorney
	 	 	 	 	 	Witness
	 
	 	 	 	 	 	 	 	 
	Print name:

	 	David Smith 	 	 	 	Print name:	 	Justine de Lula 
	 

	 	 
	 	 	 	 	 	 

2

 

PRESENT when the common seal of

PEPLIN IRELAND LIMITED

was affixed hereto

	 	 	 	 	 
	 

	 	/s/ Oonagh Hayes
	 	 
	 	 	 
	 

	 	Director
	 	 
	 
	 	 	 	 
	 

	 	/s/ Andrew Ryan
	 	 
	 	 	 
	 

	 	Director / Company Secretary	 	 
	 
	 	 	 	 
	Signed for:	 	 
	PEPLIN OPERATIONS USA, INC.	 	 
	by:
	 	 	 	 
	 
	 	 	 	 
	Signed:
	 	/s/ Philip Moody	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:
	 	Philip Moody	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	CFO	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Address For Notices For All Loan Parties:	 	 
	 
	 	 	 	 
	c/o PEPLIN, INC.	 	 
	 
	 	 	 	 
	Address:

	 	6475 Christie Avenue	 	 
	 	 	 
	 

	 	Emeryville, CA 94608	 	 
	 	 	 
	 
	 	 	 	 
	Attention: Company Secretary	 	 
	Facsimile: +1(510) 653-9704	 	 
	 
	 	 	 	 
	Address For Notices For All Loan Parties Solely For Purposes
	Of Section 11.3 of this Agreement:	 	 
	 
	 	 	 	 
	c/o PEPLIN LIMITED	 	 
	Level 2, Brisbane Portal, 1 Breakfast Creek Road,	 	 
	Newstead, Queensland, 4006 Australia	 	 
	Attention: Company Secretary	 	 
	Phone: +61 (7) 3250-1218	 	 
	Facsimile: +61 (7) 3250-1299	 	 

3

 

LENDER

Signed for:

OXFORD FINANCE CORPORATION

By:

	 	 	 	 	 
	Signed:

	 	/s/ T.A. Lex 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:
	 	T.A. Lex 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	COO 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Address For Notices For Lender:	 	 
	 
	 	 	 	 
	Oxford Finance Corporation	 	 
	Address: 133 North Fairfax Street	 	 
	Alexandria, VA, 22314	 	 
	 
	 	 	 	 
	Attention: Timothy A. Lex (Chief Operating Officer)
	Phone:_ +1 703-519-6017	 	 
	Facsimile: +1 703-519-6010	 	 

1

 

AGENT:

Signed for:

GENERAL ELECTRIC CAPITAL CORPORATION

(in its capacity as Agent for the Lenders)

	 	 	 	 	 
	Signed:
	 	/s/ Jason Dufour 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Name:
	 	Jason Dufour 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:

	 	Duly Authorized Signatory	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	SECURITY TRUSTEE:	 	 
	 
	 	 	 	 
	Signed for:	 	 
	GENERAL ELECTRIC CAPITAL CORPORATION	 	 
	(in its capacity as Security Trustee of the Peplin Security Trust)	 	 
	 
	Signed:
	 	/s/ Jason Dufour 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:
	 	Jason Dufour 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:

	 	Duly Authorized Signatory	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	LENDER:	 	 
	 
	 	 	 	 
	Signed for:	 	 
	GENERAL ELECTRIC CAPITAL CORPORATION	 	 
	(as Lender)	 	 
	 
	 	 	 	 
	Signed:
	 	/s/ Jason Dufour 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:
	 	Jason Dufour 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:

	 	Duly Authorized Signatory	 	 
	 

	 	 	 	 

2

 

Address For Notices for Agent, Security Trustee and Lender:

General Electric Capital Corporation

c/o GE Healthcare Financial Services, Inc., LSF

83 Wooster Heights Road, Fifth Floor

Danbury, Connecticut 06810

Attention: Senior Vice President of Risk

Phone: +1 (203) 205-5200

Facsimile: +1 (203) 205-2192

With a copy to:

General Electric Capital Corporation

c/o GE Healthcare Financial Services, Inc.

Two Bethesda Metro Center, Suite 600

Bethesda, Maryland 20814

Attention: General Counsel

Phone: +1 (301) 961-1640

Facsimile: +1 (301) 664-9866

3

 

SCHEDULE A

Part 1 –INITIAL GUARANTORS

	 	 	 	 	 
	Name of Guarantor	 	Jurisdiction and Address	 	Australian Registered No.
	Peplin, Inc.

	 	Address: 6475 Christie Avenue 

Emeryville, California, USA 

94608. 

Jurisdiction of
Incorporation:
 Delaware USA
	 	ARBN 126 884 393
	Peplin Operations Pty Ltd

	 	Address: Level 2, 1 Brisbane

Portal, 1 Breakfast Creek
Road,
 Newstead, Queensland,
Australia 
Registered in
Queensland, 
Australia
	 	ACN 093 317 367
	Peplin Research Pty Ltd
(in its capacity as
trustee of the Peplin
Trust, and in its
personal capacity)

	 	Address: Level 2, 1 Brisbane

Portal, 1 Breakfast Creek
Road, 
Newstead, Queensland,
Australia

Registered in Queensland,

Australia
	 	ACN 105 890 882
	Peplin Biolipids Pty Ltd

	 	Address: Level 2, 1 Brisbane

Portal, 1 Breakfast Creek
Road, 
Newstead, Queensland,
Australia

Registered in Queensland,

Australia
	 	ACN 105 890 882
	Peplin Ireland Limited

	 	Registered Office: Universal

House, Shannon, County
Clare, 
Ireland

Jurisdiction: Ireland
	 	n/a
	Peplin Operations USA, Inc

	 	Address:	 	 
	 

	 	6475 Christie Avenue 

Emeryville, California, USA 

94608

Jurisdiction of
Incorporation: 
California	 	 

Part 2 -COMMITMENTS

	 	 	 	 	 	 	 	 	 
	Name of Lender	 	Commitment of such Lender	 	Pro Rata Share
	General Electric Capital
Corporation
	 	$	10,000,000	 	 	 	66.67	%
	Oxford Finance Corporation
	 	$	5,000,000	 	 	 	33.33	%
	 
	 	 	 	 	 	 	 	 
	TOTAL
	 	$	15,000,000	 	 	 	100	%

 

 

SCHEDULE B

SCHEDULED PAYMENTS

Part 1 – Scheduled Payments

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Scheduled	 	Scheduled	 	 	 	 	 	 
	Payment Date	 	Payment	 	Interest	 	Principal	 	Balance
	28/12/07
	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/01/08
	 	$	10,625.00	 	 	$	10,625.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/02/08
	 	$	106,250.00	 	 	$	106,250.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/03/08
	 	$	106,250.00	 	 	$	106,250.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/04/08
	 	$	106,250.00	 	 	$	106,250.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/05/08
	 	$	511,338.91	 	 	$	106,250.00	 	 	$	405,088.91	 	 	$	14,594,911.09	 
	01/06/08
	 	$	511,338.91	 	 	$	103,380.62	 	 	$	407,958.29	 	 	$	14,186,952.80	 
	01/07/08
	 	$	511,338.91	 	 	$	100,490.92	 	 	$	410,847.99	 	 	$	13,776,104.81	 
	01/08/08
	 	$	511,338.91	 	 	$	97,580.74	 	 	$	413,758.17	 	 	$	13,362,346.64	 
	01/09/08
	 	$	511,338.91	 	 	$	94,649.95	 	 	$	416,688.96	 	 	$	12,945,657.68	 
	01/10/08
	 	$	511,338.91	 	 	$	91,698.41	 	 	$	419,640.50	 	 	$	12,526,017.18	 
	01/11/08
	 	$	511,338.91	 	 	$	88,725.96	 	 	$	422,612.95	 	 	$	12,103,404.23	 
	01/12/08
	 	$	511,338.91	 	 	$	85,732.44	 	 	$	425,606.47	 	 	$	11,677,797.76	 
	01/01/09
	 	$	511,338.91	 	 	$	82,717.74	 	 	$	428,621.17	 	 	$	11,249,176.59	 
	01/02/09
	 	$	511,338.91	 	 	$	79,681.66	 	 	$	431,657.25	 	 	$	10,817,519.34	 
	01/03/09
	 	$	511,338.91	 	 	$	76,624.10	 	 	$	434,714.81	 	 	$	10,382,804.53	 
	01/04/09
	 	$	511,338.91	 	 	$	73,544.87	 	 	$	437,794.04	 	 	$	9,945,010.49	 
	01/05/09
	 	$	511,338.91	 	 	$	70,443.82	 	 	$	440,895.09	 	 	$	9,504,115.40	 
	01/06/09
	 	$	511,338.91	 	 	$	67,320.82	 	 	$	444,018.09	 	 	$	9,060,097.31	 
	01/07/09
	 	$	511,338.91	 	 	$	64,175.69	 	 	$	447,163.22	 	 	$	8,612,934.09	 
	01/08/09
	 	$	511,338.91	 	 	$	61,008.28	 	 	$	450,330.63	 	 	$	8,162,603.46	 
	01/09/09
	 	$	511,338.91	 	 	$	57,818.44	 	 	$	453,520.47	 	 	$	7,709,082.99	 
	01/10/09
	 	$	511,338.91	 	 	$	54,606.00	 	 	$	456,732.91	 	 	$	7,252,350.08	 
	01/11/09
	 	$	511,338.91	 	 	$	51,370.82	 	 	$	459,968.09	 	 	$	6,792,381.99	 
	01/12/09
	 	$	511,338.91	 	 	$	48,112.70	 	 	$	463,226.21	 	 	$	6,329,155.78	 
	01/01/10
	 	$	511,338.91	 	 	$	44,831.52	 	 	$	466,507.39	 	 	$	5,862,648.39	 
	01/02/10
	 	$	511,338.91	 	 	$	41,527.09	 	 	$	469,811.82	 	 	$	5,392,836.57	 
	01/03/10
	 	$	511,338.91	 	 	$	38,199.26	 	 	$	473,139.65	 	 	$	4,919,696.92	 
	01/04/10
	 	$	511,338.91	 	 	$	34,847.85	 	 	$	476,491.06	 	 	$	4,443,205.86	 
	01/05/10
	 	$	511,338.91	 	 	$	31,472.71	 	 	$	479,866.20	 	 	$	3,963,339.66	 
	01/06/10
	 	$	511,338.91	 	 	$	28,073.66	 	 	$	483,265.25	 	 	$	3,480,074.41	 
	01/07/10
	 	$	511,338.91	 	 	$	24,650.52	 	 	$	486,688.39	 	 	$	2,993,386.02	 
	01/08/10
	 	$	511,338.91	 	 	$	21,203.16	 	 	$	490,135.75	 	 	$	2,503,250.27	 
	01/09/10
	 	$	511,338.91	 	 	$	17,731.35	 	 	$	493,607.56	 	 	$	2,009,642.71	 
	01/10/10
	 	$	511,338.91	 	 	$	14,234.97	 	 	$	497,103.94	 	 	$	1,512,538.77	 
	01/11/10
	 	$	511,338.91	 	 	$	10,713.82	 	 	$	500,625.09	 	 	$	1,011,913.68	 
	01/12/10
	 	$	511,338.91	 	 	$	7,167.72	 	 	$	504,171.19	 	 	$	507,742.49	 
	01/01/11
	 	$	511,338.99	 	 	$	3,596.50	 	 	$	507,742.49	 	 	$	0.00	 

Part 2 – Adjusted Scheduled Payments

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Scheduled	 	Scheduled	 	 	 	 	 	 
	Payment Date	 	Payment	 	Interest	 	Principal	 	Balance
	28/12/07
	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/01/08
	 	$	10,625.00	 	 	$	10,625.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/02/08
	 	$	106,250.00	 	 	$	106,250.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/03/08
	 	$	106,250.00	 	 	$	106,250.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/04/08
	 	$	106,250.00	 	 	$	106,250.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/05/08
	 	$	106,250.00	 	 	$	106,250.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/06/08
	 	$	106,250.00	 	 	$	106,250.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/07/08
	 	$	106,250.00	 	 	$	106,250.00	 	 	$	0.00	 	 	$	15,000,000.00	 
	01/08/08
	 	$	556,767.23	 	 	$	106,250.00	 	 	$	450,517.23	 	 	$	14,549,482.77	 
	01/09/08
	 	$	556,767.23	 	 	$	103,058.84	 	 	$	453,708.39	 	 	$	14,095,774.38	 
	01/10/08
	 	$	556,767.23	 	 	$	99,845.06	 	 	$	456,922.17	 	 	$	13,638,852.21	 
	01/11/08
	 	$	556,767.23	 	 	$	96,608.54	 	 	$	460,158.69	 	 	$	13,178,693.52	 
	01/12/08
	 	$	556,767.23	 	 	$	93,349.08	 	 	$	463,418.15	 	 	$	12,715,275.37	 
	01/01/09
	 	$	556,767.23	 	 	$	90,066.53	 	 	$	466,700.70	 	 	$	12,248,574.67	 
	01/02/09
	 	$	556,767.23	 	 	$	86,760.74	 	 	$	470,006.49	 	 	$	11,778,568.18	 
	01/03/09
	 	$	556,767.23	 	 	$	83,431.53	 	 	$	473,335.70	 	 	$	11,305,232.48	 
	01/04/09
	 	$	556,767.23	 	 	$	80,078.73	 	 	$	476,688.50	 	 	$	10,828,543.98	 
	01/05/09
	 	$	556,767.23	 	 	$	76,702.18	 	 	$	480,065.05	 	 	$	10,348,478.93	 
	01/06/09
	 	$	556,767.23	 	 	$	73,301.73	 	 	$	483,465.50	 	 	$	9,865,013.43	 
	01/07/09
	 	$	556,767.23	 	 	$	69,877.18	 	 	$	486,890.05	 	 	$	9,378,123.38	 
	01/08/09
	 	$	556,767.23	 	 	$	66,428.37	 	 	$	490,338.86	 	 	$	8,887,784.52	 
	01/09/09
	 	$	556,767.23	 	 	$	62,955.14	 	 	$	493,812.09	 	 	$	8,393,972.43	 
	01/10/09
	 	$	556,767.23	 	 	$	59,457.31	 	 	$	497,309.92	 	 	$	7,896,662.51	 
	01/11/09
	 	$	556,767.23	 	 	$	55,934.69	 	 	$	500,832.54	 	 	$	7,395,829.97	 
	01/12/09
	 	$	556,767.23	 	 	$	52,387.13	 	 	$	504,380.10	 	 	$	6,891,449.87	 
	01/01/10
	 	$	556,767.23	 	 	$	48,814.44	 	 	$	507,952.79	 	 	$	6,383,497.08	 
	01/02/10
	 	$	556,767.23	 	 	$	45,216.43	 	 	$	511,550.80	 	 	$	5,871,946.28	 
	01/03/10
	 	$	556,767.23	 	 	$	41,592.96	 	 	$	515,174.27	 	 	$	5,356,772.01	 
	01/04/10
	 	$	556,767.23	 	 	$	37,943.80	 	 	$	518,823.43	 	 	$	4,837,948.58	 
	01/05/10
	 	$	556,767.23	 	 	$	34,268.80	 	 	$	522,498.43	 	 	$	4,315,450.15	 
	01/06/10
	 	$	556,767.23	 	 	$	30,567.77	 	 	$	526,199.46	 	 	$	3,789,250.69	 
	01/07/10
	 	$	556,767.23	 	 	$	26,840.53	 	 	$	529,926.70	 	 	$	3,259,323.99	 
	01/08/10
	 	$	556,767.23	 	 	$	23,086.88	 	 	$	533,680.35	 	 	$	2,725,643.64	 
	01/09/10
	 	$	556,767.23	 	 	$	19,306.64	 	 	$	537,460.59	 	 	$	2,188,183.05	 
	01/10/10
	 	$	556,767.23	 	 	$	15,499.63	 	 	$	541,267.60	 	 	$	1,646,915.45	 
	01/11/10
	 	$	556,767.23	 	 	$	11,665.65	 	 	$	545,101.58	 	 	$	1,101,813.87	 
	01/12/10
	 	$	556,767.23	 	 	$	7,804.52	 	 	$	548,962.71	 	 	$	552,851.16	 
	01/01/11
	 	$	556,767.19	 	 	$	3,916.03	 	 	$	552,851.16	 	 	$	0.00	 

 

 

SCHEDULE C

DISCLOSURES

Existing Liens

Lien arising in connection with the Abbreviated Form of Agreement entered into as of November 28,
2007 by and between Peplin Operations USA, Inc. and Greene Builders Inc.

Existing Indebtedness

Contingent liabilities under that certain R&D Start Program Grant Agreement between Commonwealth of
Australia acting through the Industry Research and Development Board and Peplin Operations Pty Ltd,
dated September 19, 2003 (the “Grant Agreement”). $3,247,950 was paid to Peplin Operations Pty Ltd
and may be repayable if certain conditions of the Grant Agreement cease to be satisfied.
Obligations under the Grant Agreement expire on 31 August 2009.

Intercompany Indebtedness as of 30 November 2007

	 	 	 	 	 	 	 
	Lender	 	Recipient	 	Amount (A$)
	Peplin Limited

	 	Peplin Operations Pty Ltd
	 	 	52,055,413	 
	 
	 	 	 	 	 	 
	Peplin Limited

	 	Peplin Biolipids Pty Ltd
	 	 	351,933	 
	 
	 	 	 	 	 	 
	Peplin Limited

	 	Peplin Operations USA, Inc.
	 	 	6,075,227	 
	 
	 	 	 	 	 	 
	Peplin Research Pty Ltd (as  trustee for the Peplin Trust)

	 	Peplin Ltd
	 	 	46,976,387	 
	 
	 	 	 	 	 	 
	Peplin Research Pty Ltd (as  trustee for the Peplin Trust)

	 	Peplin Operations Pty Ltd
	 	 	553,887	 
	 
	 	 	 	 	 	 
	Peplin Operations Pty Ltd

	 	Peplin Biolipids Pty Ltd
	 	 	51,214	 

Existing Investments

None.

Material Agreements

 

 

Clinical Services Master Agreement between Peplin Operations Pty Ltd and Omnicare CR, Inc. dated 1
June 2005.

Development and clinical supply agreement between Peplin, Inc. and DPT Laboratories, Ltd., dated 23
October 2007.

Lease between Peplin Operations USA, Inc. and Bay Center Office LLC, dated December 22, 2006.

Pharmaceuticals Partnerships Program Funding Agreement between the Commonwealth of Australia and
Peplin Operations Pty Ltd, dated September 22, 2005.

Market Research Agreement between ProHealth Medical and Peplin Operations USA, Inc. — $640,000 to
be paid in May of 2008.

The following agreements do not provide for a specific dollar amount and require confirmation by
the Borrower of annual payments prior to being included as a “Material Agreement” under the Loan
Agreement:

R&D Start Program Grant Agreement between Commonwealth of Australia acting through the Industry
Research and Development Board and Peplin Operations Pty Ltd, dated September 19, 2003. $3,247,950
was paid to Peplin Operations Pty Ltd and may be repayable if certain conditions of the Grant
Agreement cease to be satisfied. Obligations under the Grant Agreement expire on 31 August 2009.

Termination and Settlement Agreement between Allergan Sales LLC and Peplin Limited, dated October
7, 2004. The maximum payment under the agreement is US$4 million which is contingent on receiving
future revenue in relation to PEP005 Topical.

Grower Supply Agreement by and between Peplin Operations Pty Ltd and J.B., R.J., M.R. & C.L.
McMahon for the supply of Euphorbia Peplus. Agreed delivery quantity for 2008 is approximately
A$300,000.

Development Agreement by and between Peplin Operations Pty Ltd and Boehringer Ingelheim Pharma GmbH
& Co. KG. Total costs for Agreement EUR284,000 of which EUR182,000 is expected in 2008.

Master Service Agreement by and between Peplin Operations Pty Ltd and Charles River Laboratories
Inc. Amounts outstanding under associated protocols total approximately USD285,000.

Contract with Charles River Laboratories Preclinical Services Edinburgh Ltd for toxicology
services. Study is complete and final payment of GBP140,000 is due and payable on completion of
final study report.

 

 

EXHIBIT A

FORM OF PROMISSORY NOTE

THIS SECURITY WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT UNDER SECTION 1272, 1273 AND 1275 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED. YOU MAY CONTACT PHILIP MOODY, THE CHIEF FINANCIAL
OFFICER OF THE BORROWER, AT 6475 CHRISTIE AVENUE EMERYVILLE, CALIFORNIA 94608, 510-653-9700 WHO
WILL PROVIDE YOU WITH ANY REQUIRED INFORMATION REGARDING THE ORIGINAL ISSUE DOCUMENT.

[                    ,      ]

FOR VALUE RECEIVED, [NAME OF BORROWER], a                                          (“Borrower”),
promises to pay to the order of [Lender] or any subsequent holder hereof (each, a
“Lender”), the principal sum of                     and      /100 US Dollars
(USD$                    ) or, if less, the aggregate unpaid principal amount of all Term Loans made
by Lender to or on behalf of Borrower pursuant to the Agreement (as hereinafter defined). All
capitalized terms, unless otherwise defined herein, shall have the respective meanings assigned to
such terms in the Agreement.

This Promissory Note is issued pursuant to that certain Loan Agreement, dated as of,
20     , among Borrower, the guarantors from time to time party thereto, General Electric Capital
Corporation, as agent and lender, [the other lenders signatory thereto], and Lender (as amended,
restated, supplemented or otherwise modified from time to time, the “Agreement”), is one of
the Notes referred to therein, and is entitled to the benefit and security of the Debt Documents
referred to therein, to which Agreement reference is hereby made for a statement of all of the
terms and conditions under which the loans evidenced hereby were made.

The principal amount of the indebtedness evidenced hereby shall be payable in the amounts and on
the dates specified in the Agreement. Interest thereon shall be paid until such principal amount
is paid in full at such interest rates and at such times as are specified in the Agreement. The
terms of the Agreement are hereby incorporated herein by reference.

All payments shall be applied in accordance with the Agreement. The acceptance by Lender of any
payment which is less than payment in full of all amounts due and owing at such time shall not
constitute a waiver of Lender’s right to receive payment in full at such time or at any prior or
subsequent time.

All amounts due hereunder and under the other Debt Documents are payable in the lawful currency of
the United States of America. Borrower hereby expressly authorizes Lender to insert the date in
the blank space on the face hereof (being the date this Promissory Note is actually issued) and to
insert that same date on all related documents pertaining hereto.

This Note is secured as provided in the Agreement and the other Debt Documents. Reference is
hereby made to the Agreement and the other Debt Documents for a description of the properties and
assets in which a security interest has been granted, the nature and extent of the security
interest, the terms and conditions upon which the security interest was granted and the rights of
the holder of the Note in respect thereof.

 

 

Time is of the essence hereof. If Lender does not receive from Borrower payment in full of any
Scheduled Payment or any other sum due under this Note or any other Debt Document within 3 days
after its due date, Borrower agrees to pay the Late Fee in accordance with the Agreement. Such
Late Fee will be immediately due and payable, and is in addition to any other costs, fees and
expenses that Borrower may owe as a result of such late payment.

This Note may be voluntarily prepaid only as permitted under Section 2.4 of the Agreement. After
an Event of Default, this Note shall bear interest at a rate per annum equal to the Default Rate
pursuant to Section 2.6 of the Agreement.

Borrower and all parties now or hereafter liable with respect to this Note, hereby waive
presentment, demand for payment, notice of nonpayment, protest, notice of protest, notice of
dishonor, and all other notices in connection herewith, as well as filing of suit (if permitted by
law) and diligence in collecting this Note or enforcing any of the security hereof, and agree to
pay (if permitted by law) all expenses incurred in collection, including reasonable attorneys’ fees
and expenses, including without limitation, the allocated costs of in-house counsel.

THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW SOUTH
WALES (AUSTRALIA).

No variation or modification of this Note, or any waiver of any of its provisions or conditions,
shall be valid unless such variation or modification is made in accordance with Section 11.8 of the
Agreement. Any such waiver, consent, modification or change shall be effective only in the
specific instance and for the specific purpose given.

IN WITNESS WHEREOF, Borrower has duly executed this Note as of the date first above written.

	 	 	 	 	 	 	 
	 	 	[BORROWER]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT B

SECRETARY’S CERTIFICATE OF AUTHORITY

[DATE]

          Reference is made to the Loan Agreement, dated as of [                          ,      ] (as amended, restated,
supplemented or otherwise modified from time to time, the “Agreement”), among [Borrower
Name], a [                    ] [corporation/limited liability company/limited liability partnership/limited
partnership] (the “Borrower”), the guarantors from time to time party thereto, General
Electric Capital Corporation, a Delaware corporation (“GECC”), as a lender and as agent (in
such capacity, together with its successors and assigns in such capacity, “Agent”), and the
other lenders signatory thereto from time to time (GECC and such other lenders, the
“Lenders”). Capitalized terms used but not defined herein are used with the meanings
assigned to such terms in the Agreement.

I, [                                        ], in my capacity as [                     ] of [
INSERT NAME OF LOAN PARTY] (the
“Company”) do hereby certify on behalf of the Company that as of the date hereof:

(i) I am the duly elected, qualified and acting [Assistant] Secretary of the Company;

(ii) attached hereto as Exhibit A is a true, complete and correct copies of the Company’s
[Certificate/Articles of Incorporation or Articles of Organization/Certificate of Formation] and
the [Bylaws/LLC Agreement/Partnership Agreement], each of which is in full force and effect on and
as of the date hereof;

(iii) attached hereto as Exhibit B is a list of individuals each of which is a duly elected
or appointed, qualified and acting officer of the Company who holds the offices set opposite such
individual’s name, and such individual is authorized to sign the Debt Documents to which the
Company is a party and all other notices, documents, instruments and certificates to be delivered
pursuant thereto, and the signature written opposite the name and title of such officer is such
officer’s genuine signature.

(iv) attached hereto as Exhibit C are true, complete and correct copies of resolutions duly
adopted by the Board of Directors/Members of the Company authorizing the execution, delivery and
performance of the Debt Documents to which the Company is a party, and all such resolutions are in
full force and effect on the date hereof in the form in which adopted without amendment,
modification, rescission or revocation;

(v) the foregoing authority shall remain in full force and effect, and Agent and each Lender shall
be entitled to rely upon same, until written notice of the modification, rescission or revocation
of same, in whole or in part, has been delivered to Agent and each Lender, but no such
modification, rescission or revocation shall, in any event, be effective with respect to any
documents executed or actions taken in reliance upon the foregoing authority before said written
notice is delivered to Agent and each Lender; and

(vi) no Default or Event of Default exists under the Agreement, and all representations and
warranties of the Company in the Debt Documents are true and correct in all respects on and as of
the date hereof, except to the extent such representations and warranties expressly relate to an
earlier date, in which case such representations and warranties were true and correct in all
respects on and as of such earlier date.

 

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, I have hereunto set my hand as of the first date written above

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	[Assistant] Secretary	 	 

     The undersigned does hereby certify on behalf of the Company that he/she is the duly elected
or appointed, qualified and acting [TITLE] of the Company and that [NAME FROM ABOVE] is the duly
elected or appointed, qualified and acting [Assistant] Secretary of the Company, and that the
signature set forth immediately above is his/her genuine signature.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT
B TO SECRETARY’S CERTIFICATE OF AUTHORITY

INCUMBENCY CERTIFICATE

	 	 	 	 	 
	Name	 	Title	 	Signature
	 
	 	 
	 	 
	 	 	 	 	 
	 
	 	 
	 	 
	 	 	 	 	 
	 
	 	 
	 	 
	 	 	 	 	 
	 
	 	 
	 	 

 

 

EXHIBIT C TO SECRETARY’S CERTIFICATE OF AUTHORITY

FORM OF RESOLUTIONS

BOARD RESOLUTIONS

                    , 200       

WHEREAS, [                    ], a                                           (“
Borrower”) has requested that General
Electric Capital Corporation, a Delaware corporation (“GECC”), as agent (in such capacity,
the “Agent”), as security trustee for Lenders (in such capacity, the “Security
Trustee”) and lender, and certain other lenders (GECC and such other lenders, collectively, the
“Lenders”) provide a credit facility in an original principal amount not to exceed
$[                    ] (the “Credit Facility”); and

WHEREAS, the terms of the Credit Facility are set forth in a loan agreement by and among Borrower,
the guarantors from time to time party thereto, Agent, Security Trustee and the Lenders and certain
related agreements, documents and instruments described in detail below; and

[WHEREAS, as a subsidiary of Borrower,                     , the “Company”) will benefit from the making of
the loan(s) to Borrower under the Credit Facility; and]

[WHEREAS, as the parent of Borrower,                     , the “Parent”) will benefit from the making of the
loan(s) to Borrower under the Credit Facility; and]

WHEREAS, the Board of Directors of [Borrower] [Company] [Parent] (the “Directors”) deems it
advisable and in the best interests of [Borrower] [Company] [Parent] to execute, deliver and
perform its obligations under those transaction documents described and referred to below.

NOW, THEREFORE, be it

RESOLVED, that the Credit Facility be, and it hereby is, approved; and further

RESOLVED, that the form of Loan Agreement (the “Loan Agreement”), by and among [Borrower],
[Company,] [Parent] the [other] guarantors from time to time party thereto, Security Trustee, Agent
and the Lenders, as presented to the Directors, be and it hereby is, approved and the [President,
the Chief Executive Officer, Chief Financial Officer, the Vice President or Treasurer] of
[Borrower] [Company] [Parent] (collectively, the “Proper Officers”) be, and each of them
hereby is, authorized and directed on behalf of [Borrower] [Company] [Parent] to execute and
deliver to Agent the Loan Agreement, in substantially the form as presented to the Directors, with
such changes as the Proper Officers may approve, such approval to be conclusively evidenced by
execution and delivery thereof; and further

[RESOLVED, that the form of Promissory Note (the “Note”), as presented to the Directors,
be, and it hereby is, approved and the Proper Officers be, and each of them hereby is, authorized
and directed on behalf of Borrower to execute and deliver to Lender one or more promissory Notes,
in substantially the form as presented to the Directors, with such changes as the Proper Officers
may approve, such approval to be conclusively evidenced by execution and delivery thereof; and
further]

[RESOLVED, that the form(s) of [US Guaranty, Pledge and Security Agreement], [Australian Group
Charge], [Australian Featherweight Charge], [Security Trust Deed] [Irish Debenture] [and] [Account
Control Agreement] [(collectively, the “Security Documents”)] [and the form of the
Warrant,] [Perfection

 

 

Certificate,] [Disbursement Letter,] [Group Guaranty,] [INCLUDE OTHER DOCUMENTS AS APPROPRIATE]
(together with the Security Documents, the “Ancillary Documents”), each as presented to the
Directors, be, and each of them hereby is, approved and the Proper Officers be, and each of them
hereby is, authorized and directed on behalf of Borrower to execute and deliver to Agent each of
the Ancillary Documents, in substantially the form as presented to the Directors, with such changes
as the Proper Officers may approve, such approval to be conclusively evidenced by execution and
delivery thereof; and further]

RESOLVED, that the Proper Officers be, and each of them hereby is, authorized and directed to
execute and deliver any and all other agreements, certificates, security agreements, financing
statements, indemnification agreements, instruments and documents (together with the Loan and
Security Agreement, [and] the Notes [, and the Ancillary Documents], the “Debt Documents”)
and take any and all other further action, in each case, as may be required or which they may deem
appropriate, on behalf of [Borrower] [Company] [Parent], in connection with the Credit Facility and
carrying into effect the foregoing resolutions, transactions and matters contemplated thereby; and
further

RESOLVED, that [Borrower] [Company] [Parent] is hereby authorized to perform its obligations under
the Debt Documents, [including, without limitation, the borrowing of any advances made under the
Credit Facility and] the granting of any security interest in [Borrower’s] [Company’s] [Parent’s]
assets contemplated thereby to secure [Borrower’s] [Company’s] [Parent’s] obligations in connection
therewith; and further

RESOLVED, that in addition to executing any documents approved in the preceding resolutions, the
Secretary or any Assistant Secretary of [Borrower] [Company] [Parent] may attest to such Debt
Documents, the signature thereon or the corporate seal of [Borrower] [Company] [Parent] thereon;
and further

RESOLVED, that any actions taken by the Proper Officers prior to the date of these resolutions in
connection with the transactions contemplated by these resolutions are hereby ratified and
approved; and further

RESOLVED, that these resolutions shall be valid and binding upon [Borrower] [Company] [Parent].

 

 

EXHIBIT C-1

PART 1

FORM OF US LANDLORD CONSENT

LANDLORD’S WAIVER AND AGREEMENT

          WHEREAS,                                        (hereinafter “Landlord”) is the landlord and
                                        (hereinafter “Tenant”) is the tenant in a lease dated
                                         (hereinafter “Lease”) covering a portion or all of the real property located at
                                 

                                                             as more particularly described in Exhibit A hereto
(hereinafter “Property”); and

          WHEREAS, General Electric Capital Corporation for itself and in its capacity as agent for the
lenders (collectively hereinafter “Lender”) has made or will make a certain loan or will sell
subject to and be secured by a security interest in the personal property or equipment described in
Exhibit B hereto (hereinafter “Personal Property”) which is now or about to be located on the
Property.

          NOW, THEREFORE, so long as the aforementioned Lease exists on the Property and the loan
secured by Lender’s security interest in the Personal Property remain outstanding and in
consideration of the mutual covenants and agreements herein contained, Landlord, Tenant, and Lender
hereby covenant and agree as follows:

          1. Landlord agrees (and Lender shall rely on Landlord’s agreement) that: (i) on the date
hereof, the Lease is in full force and effect and Landlord is not aware of any existing defaults
thereunder, and (ii) Landlord shall use its best efforts to provide Lender with written notice of
any default by Tenant under the Lease resulting in a termination of the Lease (“Default
Notice”) and Lender shall have the right, but not the obligation to cure such default within 15
days following Lender’s receipt of such Default Notice.

          2. Except as limited in this waiver and agreement, Landlord waives its interest in the
Personal Property and agrees that the Personal Property shall not become part of the Property
regardless of the manner in which the Personal Property may be attached or affixed to the Property.
This waiver and agreement shall be effective only to the extent of the indebtedness owed to the
Lender. Indefeasible payment in full of the indebtedness to the Lender shall render this waiver
and agreement void and ineffective and not subject to renewal without a written agreement of the
parties hereto.

          3. Landlord agrees it will not prevent Lender or its designee from entering upon the Property
at all reasonable times to inspect or remove the Personal Property or otherwise deal with the
Personal Property, including, without limitation, by way of public auction or private sale
(provided that, if Lender conducts a public auction or private sale of the Personal Property at the
Property, Lender shall use reasonable efforts to notify Landlord first and to hold such auction or
sale in a manner that would not unduly disrupt Landlord’s or any other tenant’s use of the
Property). Landlord shall provide Lender notification immediately upon termination of the Lease or
upon the exercise of its rights to possession of the Property by virtue thereof. Upon such
notification, Lender, at its option, may cause the Personal Property to be removed from the
Property and agrees that any physical damage to the Property actually caused by Lender, its agents,
employees or invitees, during any such removal or inspection (other than ordinary wear and tear)
shall be promptly repaired by Lender. Lender shall indemnify and defend

 

 

Landlord and hold Landlord harmless from any and all physical damage in, or about the Property
that were caused by the negligence or willful misconduct of Lender, its agents, employees or
invitees. Notwithstanding anything to the contrary in this agreement, it is understood by the
parties hereto that Lender shall not be liable for any diminution in the value of the Property
caused by the removal or absence of the Personal Property therefrom. Lender further agrees to pay
Landlord a per diem fee based upon the average monthly rental provided for in the Lease for each
day that Lender is in possession of the Property after termination of the Lease for purposes of
removing the Personal Property; provided, however, Lender shall have no obligation to remove or
dispose of the Personal Property from the Property. No action by Lender pursuant to this agreement
shall be deemed to be an assumption by Lender of any obligation under the Lease and, except as
provided in this Section 3 and Lender shall not have any obligation to Landlord. Within sixty (60)
days after written request and notice to Lender by Landlord, if the Personal Property has not been
removed and Lender has not been prohibited from removing it because of bankruptcy or other legal
proceedings, Landlord may remove the Personal Property.

          4. Landlord agrees that Tenant’s granting of a security interest in the Personal Property in
favor of Lender shall not constitute a default under the Lease nor permit Landlord to terminate the
Lease or re-enter or repossess the Property or otherwise be the basis for the exercise of any
remedy available to Landlord.

          5. In no event shall Lender cause to be recorded any financing statements, Uniform Commercial
Code filings or their equivalents in connection with this Agreement that will adversely affect or
otherwise impair title to fixtures and other real or personal property owned by Landlord located on
the Property.

          6. All requests, notices or service provided for or permitted to be given or made pursuant to
this waiver and agreement shall be deemed to have been properly given or made by depositing the
same in the United States Mail, postage prepaid and registered or certified return receipt
requested and addressed to the addresses set forth below, or to such other addresses as may from
time to time be specified in writing by either party to the other:

	 	 	 
	IF TO LANDLORD	 	IF TO LENDER
	 

	 	General Electric Capital Corporation
c/o GE Healthcare Financial Services, Inc.,
LSF
83 Wooster Heights Road, Fifth Floor
Danbury, Connecticut 06810
	 

	 	Attention: Senior Vice President of Risk
	 

	 	Phone: (203) 205-5200
	 

	 	Facsimile: (203) 205-2192
	 
	 	 
	WITH A COPY TO

	 	WITH A COPY TO:
	 
	 	 
	                                        

711 High Street 

Des Moines, Iowa 502=392-1370

Attn: Commercial Real Estate Equities

	 	General Electric Capital
Corporation 

c/o GE Healthcare Financial Services, Inc. 

Two Bethesda Metro Center, Suite 600

Bethesda, Maryland 20814
	 

	 	Attention: General Counsel
	 

	 	Phone: (301) 961-1640
	 

	 	Facsimile: (301) 664-9866

 

 

          7. This waiver and agreement is binding upon and inures to the benefit of Landlord and Lender
and their respective successors and assigns, and to no other person or entities, and shall become
effective on the date it is fully executed and acknowledged by Landlord, Tenant and Lender and
Landlord has been served with a fully executed and acknowledged copy.

          8. This Agreement and the provisions herein shall be interpreted, construed and enforced in
accordance with the laws of the State in which the Property is located.

          9. This agreement and any amendments, waivers, consents or supplements hereto or in connection
herewith may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument; signature pages may be
detached from multiple separate counterparts and attached to a single counterpart so that all
signature pages are physically attached to the same document. Delivery of an executed signature
page of this agreement or any delivery contemplated hereby by facsimile or electronic transmission
shall be as effective as delivery of a manually executed counterpart thereof.

	 	 	 	 	 	 	 	 	 	 	 
	LENDER	 	 	 	LANDLORD	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	Dated:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	TENANT	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

 

 

EXHIBIT A

LANDLORD PROPERTY

EXHIBIT B

PERSONAL PROPERTY

     Any and all property and interests in property of Tenant whether now owned or hereafter owned,
created, acquired or arising, and regardless of where located, including, without limitation, all
of the following property and interests in property (collectively, the “Personal
Property”):

          (a) all Accounts;

          (b) all Chattel Paper (whether tangible or electronic);

          (c) all Commercial Tort Claims, as more particularly described in the Perfection Certificate
provided by Tenant to Lender;

          (d) all Deposit Accounts;

          (e) all cash and Cash Equivalents

          (f) all Documents;

          (g) all Equipment;

          (h) all Fixtures;

          (i) all Goods;

          (j) all Instruments;

          (k) all Inventory;

          (l) all Letter-of-Credit Rights and letters of credit;

          (m) all General Intangibles, Payment Intangibles and other rights to payment, including,
without limitation, all Rights to Payment by any person including affiliates of Tenant, including
all right, title and interest of Tenant in instruments evidencing any indebtedness owed to Tenant
or other obligations, and any distribution of property made on, in respect of or in exchange for
the foregoing from time to time;

          (n) all Investment Property and Financial Assets, including, without limitation, 100% of the
shares of the outstanding capital stock or other equity interests, of any class, of each Subsidiary
of Tenant and all certificates evidencing the same (collectively, the “Pledged Securities”,
and together with the Pledged Debt, the “Pledged Collateral”), together with, in each case:

     (i) all shares, securities, stock, equity interests, moneys or property
representing a dividend on any of the Pledged Securities, or representing a
distribution or return of capital upon or in respect of the Pledged Securities, or
resulting from a split-up, revision, reclassification or other like change of the
Pledged Securities or otherwise

 

 

received in exchange therefor, and any subscription
warrants, rights or options issued to the holders of, or otherwise in respect of,
the Pledged Securities, and

     (ii) without affecting the obligations of Tenant under any provision
prohibiting such action hereunder, in the event of any consolidation or merger in
which the issuer of any Pledged Security is not the surviving entity, all shares of
each class of the capital stock of the successor corporation (unless such successor
corporation is Tenant itself), or all other stock, as applicable, formed by or
resulting from such consolidation or merger (the Pledged Securities, together with
all other certificates, shares, securities, stock, other equity interests,
properties or moneys as may from time to time be pledged hereunder pursuant to this
clause (ii) and clause (i) above being herein collectively called the
“Securities Collateral”);

          (o) all Contracts and other contract rights (including, without limitation, rights under any
lease, license or other agreements);

          (p) all Securities Entitlements;

          (q) all Software;

          (r) all other tangible and intangible personal property whatsoever of Tenant; and

          (s) all Proceeds, Supporting Obligations, products, insurance claims, offspring, accessions,
rents, profits, income, benefits, additions, attachments, accessories, substitutions and
replacements of, to, arising out of or related to any of the Personal Property and, to the extent
related to any Personal Property, all books, correspondence, credit files, records, invoices and
other documents (including, without limitation, all tapes, cards, computer runs and other documents
and documents in the possession or under the control of Tenant or any computer bureau or service
company from time to time acting for Tenant);

provided, however, subject to the limitations set forth in Section 2.2, the
security interest granted under this Section 2.1 shall not attach to Tenant’s interest in
any Intellectual Property (as defined in Section 2.2).

Unless otherwise specified herein, the following terms have the meanings ascribed to them in the
UCC (as defined below), provided, that if such term shall be defined differently in
multiple divisions or articles of the UCC, the definitions for such terms specified in Article or
Division 9 of the UCC shall control: “Accounts”, “Account Debtor”, “Chattel
Paper”, “Commercial Tort Claims”, “Contracts”, “Deposit Accounts”,
“Documents”, “Equipment”, “Financial Asset” “Fixtures”,
“General Intangibles”, “Goods”, “Instruments”, “Inventory”,
“Investment Property”, “Letter-of-Credit Rights”, “Payment Intangible”,
“Proceeds”, “Securities”, “Securities Account”, “Security
Entitlement”, “Software” and “Supporting Obligations”. As used
herein, “UCC” means the Uniform Commercial Code as from time to time in effect in the State of New
York

Notwithstanding anything in this Exhibit B to the contrary, personal property shall in no event
include those fixtures not owned or acquired by Tenant and that are related solely to the operation
of the buildings located on the Property described on Exhibit A, including, without limitation,
flooring, plumbing and plumbing fixtures, electrical wiring and fixtures and/or HVAC equipment and
duct work.

 

 

PART 2

FORM OF AUSTRALIAN LANDLORD CONSENT

[Landlord]

[Address]

[                    ,          ]

Ladies and Gentlemen:

     General Electric Capital Corporation (“GECC”) in its capacities as “Security
Trustee”, “Agent” and “Lender” (together with its successors and assigns, if
any) and certain other lenders (the “Lenders”) have entered into, or is about to enter
into, a Loan Agreement, dated as of [DATE] (as amended, restated, supplemented or otherwise
modified from time to time, the “Agreement”) with Peplin Limited (“Borrower”) [and
___(“Company”)], amongst others, pursuant to which [Borrower] [Company] has
granted, or will grant, to Security Trustee, on behalf of itself and the Lenders, a security
interest in certain assets of [Borrower] [Company], including, without limitation, all of
[Borrower’s] [Company’s] cash, cash equivalents, accounts, books and records, goods, inventory,
machinery, equipment, furniture and trade fixtures (such as equipment bolted to floors), together
with all addition, substitutions, replacements and improvements to, and proceeds, including,
insurance proceeds, of the foregoing, but excluding building fixtures (such as plumbing, lighting
and HVAC systems (collectively, the “Collateral”). Some or all of the Collateral is, or
will be, located at certain premises known as [___] located at [insert address]
(“Premises”), and [Borrower] [Company] occupies the Premises pursuant to a lease, dated as
of [DATE], between [Borrower] [Company], as tenant, and you, [NAME], as
[owner/landlord/mortgagee/realty manager] (as amended, restated, supplemented or otherwise modified
from time to time, the “Lease”).

     By your signature below, you hereby agree (and we shall rely on your agreement) that: (i) the
Lease is in full force and effect and you are not aware of any existing defaults thereunder, (ii)
the Collateral is, and shall remain, personal property regardless of the method by which it may be,
or become, affixed to the Premises and you have no interest in the Collateral even if that
Collateral is fixed to the Premises; (iii) you agree to provide Security Trustee with written
notice of any default by [Borrower] [Company] under the Lease (specifying the nature of the
relevant default and the amount of compensation claimed by you, if any, for the default, where that
default cannot be recified) (“Default Notice”) and agree not to exercise any power, right,
discretion or remedy you have under the Lease or at law to terminate, rescind or repudiate the
Lease, or remove any of the Collateral from the Premises with respect to that default without
serving the Default Notice on the Security Trustee and giving the Security Trustee the right, but
not the obligation to cure such default within a reasonable period after receipt of such notice,
and in any event at least 30 Business Days to (a) in the case of a default which is capable of
remedy, remedy or rectify the default, or (b) if the default cannot be remedied or rectified and
your damages from the default are reasonably quantifiable, pay the reasonable compensation claimed
by you, (iv) your interest in the Collateral and any proceeds thereof (including, without
limitation, proceeds of any insurance therefor) shall be, and remain, subject and subordinate to
the interests of GECC and you agree not to levy upon any Collateral or to assert any landlord lien,
right of distraint or other claim against the Collateral for any reason; (v) GECC, and its
employees and agents, shall have the right, from time to time, to enter into the Premises for the
purpose of inspecting the Collateral or the Premises; (vi) GECC, and its employees and agents,
shall have the right, upon any default by [Borrower] [Company] under the Agreement, to enter into
the Premises and to remove or otherwise deal with the Collateral, including, without limitation, by
way of public auction or private sale (provided that, if Security Trustee conducts a public auction
or private sale of the Collateral at the Premises, Security Trustee shall use reasonable efforts to
notify Landlord first and to hold such auction or sale in a manner that would not unduly disrupt
Landlord’s or any other tenant’s use of the Premises); (vii) despite any provision in the Lease to
the

 

 

contrary, no default under or in respect of the Lease will occur if (a) GECC its officers or
agents takes possession of the Collateral on the terms of the Lease. Security Trustee agrees to
repair or reimburse you for any physical damage actually caused to the Premises by Security
Trustee, or its employees or agents, during any such removal or inspection (other than ordinary
wear and tear), provided that it is understood by the parties hereto that Security Trustee shall
not be liable for any diminution in value of the Premises caused by the removal or absence of the
Collateral therefrom. You hereby acknowledge that Security Trustee shall have no obligation to
remove or dispose of the Collateral from the Premises and no action by Security Trustee pursuant to
this Consent shall be deemed to be an assumption by Security Trustee of any obligation under the
Lease and, except as provided in the immediately preceding sentence, Security Trustee shall not
have any obligation to you.

     You hereby consent to the creation of the security interest in favour of the Security Trustee
and acknowledge and agree that [Borrower’s] [Company’s] granting of a security interest in the
Collateral in favor of Security Trustee, on behalf of itself and the Lenders, shall not constitute
a default under the Lease nor permit you to terminate the Lease or re-enter or repossess the
Premises or otherwise be the basis for the exercise of any remedy available to you.

     This Consent and the agreements contained herein shall be binding upon, and shall inure to the
benefit of, any successors and assigns of the parties hereto (including any transferees of the
Premises). This Consent shall terminate upon the indefeasible payment of Borrower’s indebtedness
in full in immediately available funds and the satisfaction in full of Borrower’s [and Company’s]
performance of its obligations under the Agreement and the related documents.

     This Consent and any amendments, waivers, consents or supplements hereto or in connection
herewith may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument; signature pages may be
detached from multiple separate counterparts and attached to a single counterpart so that all
signature pages are physically attached to the same document. Delivery of an executed signature
page of this Consent or any delivery contemplated hereby by facsimile or electronic transmission
shall be as effective as delivery of a manually executed counterpart thereof.

 

 

     We appreciate your cooperation in this matter of mutual interest.

	 	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION, as Security Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	General Electric Capital Corporation	 	 
	 	 	c/o GE Healthcare Financial Services, Inc., LSF	 	 
	 	 	83 Wooster Heights Road, Fifth Floor	 	 
	 	 	Danbury, Connecticut 06810	 	 
	 	 	Attention: Senior Vice President of Risk	 	 
	 	 	Phone: (203) 205-5200	 	 
	 	 	Facsimile: (203) 205-2192	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 	 	General Electric Capital Corporation	 	 
	 	 	c/o GE Healthcare Financial Services, Inc.	 	 
	 	 	Two Bethesda Metro Center, Suite 600	 	 
	 	 	Bethesda, Maryland 20814	 	 
	 	 	Attention: General Counsel	 	 
	 	 	Phone: (301) 961-1640	 	 
	 	 	Facsimile: (301) 664-9866	 	 

	 	 	 	 	 	 	 
	AGREED TO AND ACCEPTED BY:
	 
	 	 	 	 	 	 
	[NAME], as [owner/landlord/mortgagee/realty manager]
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 
	Name:
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 
	Title:
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 
	 	 	 	 	 	 
	AGREED TO AND ACCEPTED BY:
	 
	 	 	 	 	 	 
	[NAME OF LOAN PARTY]
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 
	Name:
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 
	Title:
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 
	 
	 	 	 	 	 	 

Interest in the Premises (check applicable box)

r      Owner

r      Mortgagee

r      Landlord

r     Realty Manager

Address:

 

 

EXHIBIT C-2

FORM OF BAILEE CONSENT

[Letterhead of GE Capital]

                      , 200                    

[NAME OF BAILEE]

                                        

                                        

Dear Sirs:

     Re: [Name of the Loan Party] (the “Company”)

     Please accept this letter as notice that we have entered into or may enter into financing
arrangements with the Company under which the Company has granted to us continuing security
interests in substantially all personal property and assets of the Company and the proceeds
thereof, including, without limitation, certain equipment owned by the Company held by you at the
manufacturing facility (the “Premises”) owned by you and located at [                    ](the
“Personal Property”).

     Please acknowledge that as a result of such arrangements, you are holding all of the Personal
Property solely for our benefit and subject only to the terms of this letter and our instructions;
provided, however, that until further written notice from us, you are authorized to use
and/or release any and all of the Personal Property in your possession as directed by the Company
in the ordinary course of business. The foregoing instructions shall continue in effect until we
modify them in writing, which we may unilaterally do without any consent or approval from the
Company. Upon receipt of our instructions, you agree that (a) you will release the Personal
Property only to us or our designee; (b) you will cooperate with us in our efforts to assemble,
sell (whether by public or private sale), take possession of, and remove all of the Personal
Property located at the Premises; (c) you will permit the Personal Property to remain on the
Premises for forty-five (45) days after your receipt of our instructions or at our option, to have
the Personal Property removed from the Premises within a reasonable time, not to exceed forty-five
(45) days after your receipt of our instructions; (d) you will not hinder our actions in enforcing
our liens on the Personal Property; and (e) after receipt of our instructions, you will abide
solely by our instructions with respect to the Personal Property, and not those of the Company.

     You hereby waive and release in our favor: (a) any contractual lien, security interest, charge
or interest and any other lien which you may be entitled to whether by contract, or arising at law
or in equity against any Personal Property; (b) any and all rights granted under any present or
future laws to levy or distrain for rent or any other charges which may be due to you against the
Personal Property; and (c) any and all other claims, liens, rights of offset, deduction,
counterclaim and demands of every kind which you have or may hereafter have against the Personal
Property.

     You agree that (i) you have not and will not commingle the Personal Property with any other
property of a similar kind owned or held by you in any manner such that the Personal Property is
not readily identifiable, (ii) you have not and will not issue any negotiable or non-negotiable
documents or instruments relating to the Personal Property, and (iii) the Personal Property is not
and will not be deemed to be fixtures.

 

 

     Notwithstanding the foregoing, all of your charges of any nature whatsoever shall continue to
be charged to and paid by the Company and we shall not be liable for such charges.

     You hereby authorize us to file at any time such financing statements naming you as the
debtor/bailee, Company as the secured party/bailor, and us as the Company’s assignee, indicating as
the collateral goods of the Company now or hereafter in your custody, control or possession and
proceeds thereof, and including any other information with respect to the Company required under
the Uniform Commercial Code for the sufficiency of such financing statement or for it to be
accepted by the filing office of any applicable jurisdiction (and any amendments or continuations
with respect thereto).

     The arrangement as outlined herein is to continue without modification, until we have given
you written notice to the contrary.

     EACH OF THE PARTIES HERETO HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF THIS LETTER.

     Any notice(s) required or desired to be given hereunder shall be directed to the party to be
notified at the address stated herein.

     The terms and conditions contained herein are to be construed and enforced in accordance with
the laws of the State of New York.

     This terms and conditions contained herein shall inure to the benefit of and be binding upon
the parties hereto and their respective successors and permitted assigns.

 

 

The Company has signed below to indicate its consent to and agreement with the foregoing
arrangements, terms and conditions. By your signature below, you hereby agree to be bound by the
terms and conditions of this letter.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Title: Duly Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	General Electric Capital Corporation	 	 
	 	 	c/o GE Healthcare Financial Services, Inc., LSF	 	 
	 	 	83 Wooster Heights Road, Fifth Floor	 	 
	 	 	Danbury, Connecticut 06810	 	 
	 	 	Attention: Senior Vice President of Risk	 	 
	 	 	Phone: (203) 205-5200	 	 
	 	 	Facsimile: (203) 205-2192	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	General Electric Capital Corporation	 	 
	 	 	c/o GE Healthcare Financial Services, Inc.	 	 
	 	 	Two Bethesda Metro Center, Suite 600	 	 
	 	 	Bethesda, Maryland 20814	 	 
	 	 	Attention: General Counsel	 	 
	 	 	Phone: (301) 961-1640	 	 
	 	 	Facsimile: (301) 664-9866	 	 

	 	 	 	 	 
	Agreed to:	 	 
	 
	 	 	 	 
	[NAME OF LOAN PARTY]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 
	Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	[NAME OF BAILEE]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 
	Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

 

 

EXHIBIT D

COMPLIANCE CERTIFICATE

[DATE]

          Reference
is made to the Loan Agreement, dated as of
[            
             ,
     ] (as amended, restated,
supplemented or otherwise modified from time to time, the “Agreement”), among [Borrower
Name], a [                    ] [corporation/limited liability company/limited liability partnership/limited
partnership] (the “Borrower”), the guarantors from time to time party thereto, General
Electric Capital Corporation, a Delaware corporation (“GECC”), in its capacity as agent (in
such capacity, together with its successors and assigns, in such capacity, the “Agent”) as
security trustee for Lenders (in such capacity, the “Security Trustee”) and lender, and the
other lenders signatory thereto (GECC and such other lenders, the “Lenders”). Capitalized
terms used but not defined herein are used with the meanings assigned to such terms in the
Agreement.

I,
[                                        ],
do hereby certify that:

(i) I am the duly elected, qualified and acting [TITLE] of [Borrower/Parent] [to be confirmed by
GECC];

(ii) attached hereto as Exhibit A are [the monthly financial statements]/[annual audited
financial statements]/[quarterly financial statements] as required under Section 6.3 of the
Agreement and that such financial statements are prepared in accordance with GAAP as required under
Section 6.3 of the Agreement and are consistently applied from one period to the next except as
explained in an accompanying letter or footnotes;

(iii) no Default or Event of Default has occurred under the Agreement which has not been previously
disclosed, in writing, to Lender; and

(iv) all representations and warranties of the Loan Parties stated in the Debt Documents are true
and correct in all material respects on and as of the date hereof, other than those previously
disclosed, in writing, to Lender, except to the extent such representations and warranties
expressly relate to an earlier date, in which case such representations and warranties were true
and correct in all respects on and as of such earlier date.

IN WITNESS WHEREOF, I have hereunto set my hand as of the first date written above

	 	 	 	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT E

	 	 	 	 	 
	EPS Setup Form

	 	Submit Via Fax:
	 	GE Healthcare Financial Services
	 

	 	ATTN: EPS Facilitator
	 	Phone: (262) 798-4494
	 

	 	(262) 798-4530
	 	Fax: (262) 798-4530

			
	1. Sender Information:
	 	Instructions To Enroll In EPS Plan:

	 	 	 	 	 
	Sender Name:

	 	A.
	 	Complete sections 1 - 7
(signature and all other information is required)
	Sender Phone Number:

	 	B.
	 	Include a copy of a voided check, on which is
noted your bank, branch and account number
	 

	 	C.
	 	Please submit via Fax to: (262) 798-4530

2. Authorization Agreement for Pre-Arranged Payment Plan:

	 	(a)	 	                                                             (“Borrower”) authorizes General
Electric Capital Corporation (“Agent”) to initiate debit entries for payment
becoming due pursuant to the terms and conditions set forth in the Loan Agreement, dated as
of [DATE] (as amended, restated, supplemented or otherwise modified from time to time, the
“Agreement”), among Borrower, the guarantors form time to time party thereto, Agent
and the lenders signatory thereto.
	 
	 	(b)	 	Borrower understands that the basic term loan payment and all applicable taxes are
solely its responsibility. If payment is not satisfied due to account closure,
insufficient funds, or cancellation of any required automated payment services, Borrower
agrees to remit payment plus any applicable late charges, as set forth in the Agreement.
	 
	 	(c)	 	It is incumbent upon Borrower to give written notice to Agent of any changes to this
authorization or the below referenced bank account information 10 days prior to payment
date; Borrower may revoke this authorization by giving 10 days written notice to Agent
unless otherwise stipulated in the Agreement.
	 
	 	(d)	 	If a deduction is made in error, Borrower has the right to be paid within five business
days by Agent the amount of the erroneous deduction, provided Agent is notified in writing
of such error.
	 
	 	(e)	 	Cosigner must also sign if the account is a joint account.

 

 

3. Agent Account Number(s): (Invoice Billing ID, 10-digit number formatted: 1234567-001)

	 	 	 	 	 	 	 
	Account:

	 	Account:
	 	Account:
	 	Account:
	Account:

	 	Account:
	 	Account:
	 	Account:

	 	 	 
	4. First Payment Debit Date (mm/dd/yy)
	First Payment:

5. Complete ALL Bank and Borrower Information:

	 	 	 	 	 	 	 
	BANK

	 	Name of Bank or
Financial
Institution:
	 	Bank Account Number:
	 	ABA Routing Number

(9-digit number)
	 
	 	 	 	 	 	 
	INFO

	 	Address of Bank or Financial
	 	City:
	 	State:       Zip Code:
	 

	 	Institution:	 	 	 	 

	 	 	 	 	 	 	 
	 	 	Signatures	 	Company	 	Contact
	 

	 	Signature of Authorized Signer: Date:
	 	Company Name:
	 	Contact Name:
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	                    	 	                    	 	                    
	 
	 	 	 	 	 	 
	BORROWER

	 	Name of Joint Account Holder:
	 	Company Address:
	 	Contact Phone Number:
	 

	 	(Please Print)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	                    	 	                    	 	                    
	 
	 	 	 	 	 	 
	INFO

	 	Signature of Joint Account Holder:
	 	City:
	 	Contact Fax Number:
	 

	 	Date:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 

	 	                    	 	 	 	                    
	 
	 	 	 	 	 	 
	 

	 	Name of Authorized Signer: (Please
	 	State: Zip Code:
	 	 Contact email address:
	 

	 	Print)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 
	 	 
	 

	 	                    	 	 	 	 

6. Would you like to have property taxes paid via EPS on above accounts?

     Check (X):      YES: o      NO: o

7. Would you like to receive a complementary invoice?

     Check (X):      YES:o      NO: o

 

 

SCHEDULE D

SUBSTITUTION CERTIFICATE

THIS AGREEMENT is among [Retiring Lender Name] (the “Retiring Lender”), [Substitute Lender
Name] (the “Substitute Lender”) and [Agent Name] (the “Agent”)

RECITALS

The parties agree in consideration of, among other things, the mutual promises contained in this
agreement.

AGREEMENT

The Retiring Lender, Substitute Lender and Agent agree as follows:

1. DEFINITIONS

     As used in this Agreement, all capitalized terms shall have the definitions provided herein.
Any word or phrase not defined herein shall have the same meaning as in the Loan Agreement.
“Loan Agreement” means the document entitled ‘Loan Agreement’ dated [date] between [Agent
name] (in its capacity as agent for the Lenders (as defined below), together with its successors
and assigns in such capacity, “Agent”), [Security Trustee name] (in its capacity as security
trustee for Lenders (as defined below), together with its successors and assigns in such capacity,
“Security Trustee”), [Lender name] and the other financial institutions who are listed in Part 2 to
Schedule A to that agreement or who thereafter became party to that agreement (collectively, the
“Lenders”, and each individually, a “Lender”), [Borrower name] (as “Borrower”), [Parent name] (as
“Parent”) and the other entities listed in Part 1 of Schedule A to that agreement and the other
entities or persons, if any, who thereafter became parties to that agreement as guarantors (each a
“Guarantor” and collectively, the “Guarantors”, and together with Borrower, each a “Loan Party” and
collectively, “Loan Parties”).

     A reference in this agreement to ‘identical’ rights or obligations is a reference to rights or
obligations substantially identical in character to those rights or obligations rather than
identical as to the person entitled to them or obliged to perform them.

2. CAPACITY

     Agent enters into this agreement for itself and as agent for each of the parties to the Loan
Agreement (other than the Retiring Lender and the Substitute Lender).

3. SUBSTITUTION

     3.1 Effect of substitution. From the [insert date] (the “Substitution Date”), (a) no
party to the Debt Documents has any further obligation to the Retiring Lender in relation to the
Substituted Commitment (as defined below); (b) Retiring Lender is released from and has no further
rights or obligations to a party to the Debt Documents in relation to the Substituted Commitment
and any Debt Document to that extent; (c) Agent grants to Substitute Lender rights which are
identical to the rights

 

 

which Retiring Lender had in respect of the Substituted Commitment and any Debt Document to that
extent; and (d) Substitute Lender assumes obligations towards each of the parties to the Debt
Documents which are identical to the obligations which Retiring Lender was required to perform in
respect of the Substituted Commitment before the acknowledgment set out in clause 3.1(b) above.
“Substituted Commitment” means the rights and obligations under the Loan Agreement of the
Retiring Lender in respect of the Commitments and the Principal Outstanding of the Retiring Lender
and all other related rights and obligations as follows: Commitment $[insert amount], Principal
Outstanding $[insert amount].

     3.2 Substitute Lender. With effect on and from the Substitution Date, (a) Substitute Lender is
taken to be a party to the Debt Documents with Commitments equal to the Substituted Commitment and
Part 2 of Schedule A of the Loan Agreement is amended accordingly; (b) a reference in the Loan
Agreement to ‘Lender’ includes a reference to the Substitute Lender; (c) Substitute Lender is taken
to be a party to the Security Trust Deed; (d) Substitute Lender becomes bound by the Security Trust
Deed and has the same rights as if it were a party to the Security Trust Deed as a ‘Beneficiary’;
and (e) each reference in the Security Trust Deed to a ‘Beneficiary’ is taken to include a
reference to the Substitute Lender.

     3.3 Preservation of accrued rights. Retiring Lender and all other parties to the Loan
Agreement remain entitled to and bound by their respective rights and obligations in respect of the
Substituted Commitment and any of their other rights and obligations under the Debt Documents which
have accrued up to the Substitution Date.

4 ACKNOWLEDGMENTS

     4.1 Copies of Debt Documents. Substitute Lender acknowledges that it has received a copy of
the Debt Documents and all other information which it has requested in connection with the Debt
Documents.

     4.2 Acknowledgment. Substitute Lender acknowledges and agrees as specified in Section 9.3 of
the Loan Agreement, which applies as if references to the Agent included the Retiring Lender and
references to any Debt Document included this agreement.

5 PAYMENTS

     5.1 Payments by Agent. With effect on and from the Substitution Date Agent must make all
payments due under the Loan Agreement in connection with the Substituted Commitment to the
Substitute Lender, without having any further responsibility to Retiring Lender in respect of the
same.

     5.2 As between Lenders. Retiring Lender and Substitute Lender must make directly between
themselves the payments and adjustments which they agree with respect to accrued interest, fees,
costs and other rights or other amounts attributable to the Substituted Commitment which accrue
before the Substitution Date.

6 WARRANTY

     Each of Retiring Lender and Substitute Lender represent and warrant to the other parties that the
requirements of Section 11.1 of the Loan Agreement have been complied with in relation to the
Substituted Commitment.

 

 

7 NOTICES

The details of Substitute Lender for the purpose of Section 11.2 of the Loan Agreement are as
follows:

	 	 	 	 	 
	Address:
	 	 	 	 
	                    
Attention:

	 	 

	 	 
	Phone:

	 	 

	 	 
	Facsimile:

	 	 

	 ]	 
	 

	 	 

	 	 

8 MISCELLANEOUS

Section 11 of the Loan Agreement applies to this agreement as if it were fully set out in this
agreement.

9 ATTORNEYS

Each of the attorneys executing this agreement states that the attorney has no notice of revocation
of that attorney’s power of attorney.

 

 

EXECUTED AS AN AGREEMENT

RETIRING LENDER

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Signed for:	 	 	 	 	 	 
	[Retiring Lender Name]	 	 	 	 	 	 
	By its attorney:	 	 	 	 	 	 
	 	 	 	 	 	 	in the presence of:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Signed:

	 	 	 	 	 	Signed:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Attorney	 	 	 	Witness	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Print name:	 	 	 	Print name:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SUBSTITUTE LENDER	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Signed for:	 	 	 	 	 	 
	[Substitute Lender Name]	 	 	 	 	 	 
	By its attorney:	 	 	 	 	 	 
	 	 	 	 	 	 	in the presence of:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Signed:

	 	 	 	 	 	Signed:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Attorney	 	 	 	Witness	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Print name:	 	 	 	Print name:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	AGENT	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Signed for:	 	 	 	 	 	 
	[Agent Name]	 	 	 	 	 	 
	By its attorney:	 	 	 	 	 	 
	 	 	 	 	 	 	in the presence of:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Signed:

	 	 	 	 	 	Signed:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Attorney	 	 	 	Witness	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Print name:	 	 	 	Print name:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 

 

 

SCHEDULE E

FORM OF WARRANT

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR UNDER THE SECURITIES LAWS OF ANY STATE, AND MAY NOT
BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AND REGISTRATION OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS OR
PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT THE
PROPOSED TRANSACTION DOES NOT VIOLATE THE SECURITIES ACT OF 1933, AND APPLICABLE STATE SECURITIES
LAWS.

     WARRANT TO PURCHASE [                    ] SHARES OF COMMON STOCK

December [28], 2007

THIS CERTIFIES THAT, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, [GE Capital Equity Investments, Inc. / Oxford Finance Corporation], or
permitted assigns (“Holder”) is entitled to subscribe for and purchase from Peplin, Inc., a
Delaware corporation (the “Company”), [                    ] [(                    )] shares (as such number may be
adjusted as provided herein) of fully paid and nonassessable common stock, par value $0.001 per
share (the “Common Stock”), of the Company at the Warrant Price (as hereinafter defined), subject
to the provisions and upon the terms and conditions hereinafter set forth. As used herein, the
term “Warrant Shares” shall mean the shares of Common Stock which Holder may acquire pursuant to
this Warrant.

1. Warrant Price. The “Warrant Price” shall initially be US Dollars ($     ) per share, subject to
adjustment as provided in Section 7 below.

2. Conditions to Exercise. The purchase right represented by this Warrant may be exercised, in
accordance with the terms hereof, at any time, or from time to time, in whole or in part during the
term commencing on the date hereof and ending at 5:00 P.M. Pacific time on the fifth anniversary of
the date of this Warrant (the “Expiration Date”).

	3.	 	Method of Exercise or Conversion; Payment; Issuance of Shares; Issuance of New Warrant.

 

 

(a) Cash Exercise. Subject to Section 2 hereof, the purchase right represented by this
Warrant may be exercised by Holder hereof, in whole or in part, by the surrender of this
Warrant (with a duly executed Notice of Exercise in the form attached hereto) during normal
business hours on any Business Day (as defined below) at the principal office of Company (as
set forth in Section 19 below) and by payment to Company, by cash, certified check, wire
transfer or other immediately available funds, of an amount equal to the then applicable
Warrant Price per share multiplied by the number of Warrant Shares then being purchased. In
the event of any exercise of the rights represented by this Warrant, book-entry shares of
stock so purchased shall be issued in the name of, and registered to, the account of the
Holder hereof, or as such Holder may direct (subject to the terms of transfer contained
herein and upon payment by such Holder hereof of any applicable transfer taxes), on the
records of the Company’s transfer agent for its Common Stock. Such registration shall be
made within 30 days after exercise of this Warrant and at Company’s expense and, unless this
Warrant has been fully exercised or expired, a new Warrant having terms and conditions
substantially identical to this Warrant and representing the portion of the Warrant Shares,
if any, with respect to which this Warrant shall not have been exercised, shall also be
issued to Holder hereof within 30 days after exercise of this Warrant. For purposes of this
Agreement, “Business Day” means any day other than a Saturday, Sunday or a day on which
commercial banking institutions in New York, New York are required by law to be closed.

(b) Conversion. In lieu of exercising this Warrant as specified in Section 3(a), Holder
may from time to time convert this Warrant, in whole or in part, into Warrant Shares by
surrender of this Warrant (with a duly executed Notice of Exercise in the form attached
hereto) at the principal office of Company, in which event Company shall issue to Holder the
number of Warrant Shares computed using the following formula:

X = Y (A B)

A

Where:

X = the number of Warrant Shares to be issued to Holder.

Y = the number of Warrant Shares purchasable under this Warrant or, if only a
portion of this Warrant is being exercised, the portion of this Warrant being
canceled (at the date of such calculation).

A = the Fair Market Value of one share of Company’s Common Stock (at the date of
such calculation).

B = Warrant Price (as adjusted to the date of such calculation).

(c) Fair Market Value. For purposes of this Section 3, Fair Market Value of one share of
Company’s Common Stock shall mean:

(i) The average of the closing bid and asked prices of a share of Common Stock
quoted in the Over The Counter Market Summary, the last reported sale price quoted
on the NASDAQ Stock Market or on any other exchange on which the Common Stock is
listed, whichever is applicable, as published in the Western

 

 

Edition of the Wall
Street Journal for the ten (10) trading days immediately before
the date of determination of Fair Market Value; or, if none of the foregoing are
applicable, the ASX Price. “ASX Price” shall mean twenty (20) multiplied by Y
multiplied by FX, where:

Y= the volume-weighted 10-day trailing average of the closing price (as displayed on
the Australian Securities Exchange’s board) in respect of the Company’s CHESS
Depository Interests (“CDIs”) for the Business Day immediately before the date of
determination; and

FX = the US Dollar/AUD exchange rate published by the Reserve Bank of Australia on
its website (www.rba.gov.au) as at the close of trading (Sydney time) on the
Business Day immediately before the date of determination.

“US Dollars” and “USD” shall mean the currency of the United States of America and
“AUD” shall mean the currency of the Commonwealth of Australia.

(ii) In the event of an exercise in connection with a merger, acquisition or other
consolidation in which Company is not the surviving entity, the per share Fair
Market Value for the Common Stock shall be the value to be received per share of
Common Stock by all holders of the Common Stock in such transaction as determined by
the Board of Directors; or

(iii) In any other instance, the per share Fair Market Value for the Common Stock
shall be as determined in the reasonable good faith judgment of Company’s Board of
Directors.

In the event of 3(c)(ii) or 3(c)(iii), above, the Company shall prepare a
certificate, to be signed by an authorized officer of Company, setting forth in
reasonable detail the basis for and method of determination of the per share Fair
Market Value of the Common Stock. The officer will also certify to Holder that this
per share Fair Market Value will be applicable to all holders of Company’s Common
Stock. Such certification must be made to Holder at least ten (10) Business Days
prior to the proposed effective date of the merger, consolidation, sale, or other
triggering event as defined in 3(c)(ii) or 3(c)(iii).

Notwithstanding anything herein to the contrary, the Company shall not be required
to make any cash payments to the Holder in lieu of issuance of the Warrant Shares.

(d) Automatic Exercise. To the extent this Warrant is not previously exercised, it shall be
deemed to have been automatically converted in accordance with Sections 3(b) and 3(c) hereof
(even if not surrendered) immediately before its expiration, involuntary termination or
cancellation if the then-applicable Fair Market Value of a Warrant Share

 

 

exceeds the Warrant
Price, unless Holder notifies Company in writing to the contrary prior to such automatic
exercise.

	 	(e)	 	Treatment of Warrant Upon Acquisition of Company.

(i) Certain Definitions. For the purpose of this Warrant, “Acquisition” means any
sale, license, or other disposition of all or substantially all of the assets of
Company, or any reorganization, consolidation, or merger of Company, or sale of
outstanding Company securities by holders thereof, where the holders of Company’s
securities before the transaction beneficially own less than 50% of the outstanding
voting securities of the successor or surviving entity after the transaction. For
purposes of this Section 3(e), “Affiliate” shall mean any person or entity that owns
or controls, directly or indirectly, 10% percent or more of the stock of Company,
any person or entity that controls or is controlled by or is under common control
with such persons or entities, and each of such person’s or entity’s officers,
directors, joint venturers or partners, as applicable.

(ii) Cash Acquisition. In the event of an Acquisition in which the sole
consideration is cash, Holder may either (a) exercise its conversion or purchase
right under this Warrant and such exercise will be deemed effective immediately
prior to the consummation of such Acquisition or (b) permit the Warrant to expire
upon the consummation of such Acquisition. Company shall provide Holder with
written notice of any proposed Acquisition together with such reasonable information
as Holder may request in connection with such contemplated Acquisition giving rise
to such notice, which is to be delivered to Holder not less than ten (10) Business
Days prior to the closing of the proposed Acquisition.

(iii) Asset Sale. In the event of an Acquisition (other than an Acquisition
described in 3(e)(ii) above) by a third party that is not an Affiliate of Company (a
“True Asset Sale”), Holder may either (a) exercise its conversion or purchase right
under this Warrant and such exercise will be deemed effective immediately prior to
the consummation of such Acquisition or (b) permit the Warrant to continue until the
Expiration Date if Company continues as a going concern following the closing of any
such True Asset Sale. Company shall provide Holder with written notice of any
proposed asset sale together with such reasonable information as Holder may request
in connection with such asset sale giving rise to such notice, which is to be
delivered to Holder not less than ten (10) Business Days prior to the closing of the
proposed asset sale.

(iv) Assumption of Warrant. Upon the closing of any Acquisition other than those
particularly described in subsections (ii) and (iii) above, the successor entity
shall assume the obligations of this Warrant, and this Warrant shall be exercisable
for the same securities, cash, and property as would be payable for the Warrant
Shares issuable upon exercise of the unexercised portion of this Warrant as if such
Warrant Shares were outstanding on the record date for the Acquisition and

 

 

subsequent closing. The Warrant Price and/or number of Warrant Shares shall be
adjusted accordingly so that Holder is neither advantaged or disadvantaged as a
consequence of the Acquisition.

4. Representations and Warranties of Holder and Company.

(a) Representations and Warranties by Holder. The Holder represents and warrants to Company
with respect to this purchase as follows:

(i) Evaluation. The Holder has substantial experience in evaluating and investing in
private placement transactions of securities of companies similar to Company so that
Holder is capable of evaluating the merits and risks of its investment in Company
and has the capacity to protect its interests.

(ii) Resale. Holder is acquiring this Warrant and the Warrant Shares issuable upon
exercise of this Warrant (collectively the “Securities”) for investment for its own
account and not with a view to, or for resale in connection with, any distribution
thereof. The Holder understands that the Securities have not been registered under
the Securities Act of 1933, as amended, and the rules and regulations thereunder
(the “Act”), by reason of a specific exemption from the registration provisions of
the Act which depends upon, among other things, the bona fide nature of the
investment intent as expressed herein. The Holder agrees and acknowledges that it
will not, directly or indirectly, offer, transfer, or sell the Securities, or
solicit any offers to purchase or acquire the Securities, unless the transfer or
sale is permitted by the terms of the Warrant and such transfer or sale is (i)
pursuant to an effective registration statement under the Act and has been
registered under any applicable state securities or “blue sky” laws, or (ii)
pursuant to an exemption from registration under the Act and applicable state
securities or “blue sky” laws. It being understood that Holder is permitted to
transfer the Securities to an Affiliate in compliance with the provisions of the Act
and applicable state securities or “blue sky” laws.

(iii) Rule 144. The Holder acknowledges that the Securities must be held
indefinitely unless subsequently registered under the Act or an exemption from such
registration is available. The Holder is aware of the provisions of Rule 144
promulgated under the Act.

(iv) Accredited Investor. The Holder is an “accredited investor” as such term is
defined in Rule 501 promulgated under the Act

(v) Opportunity To Discuss. The Holder has had an opportunity to discuss Company’s
business, management and financial affairs with its management and an opportunity to
review Company’s facilities. The Holder understands that such discussions, as well
as the written information issued by Company, were intended to describe the aspects
of Company’s business and prospects which Company

 

 

believes to be material but were
not necessarily a thorough or exhaustive description.

(vi) CDIs. Upon exercise of the Warrant, in whole or in part, and receipt by the
Holder of Warrant Shares, Holder will not convert any Warrant Shares into the
Company’s CDIs prior to the earlier of (i) such Warrant Shares being
registered under the Act (nothing contained in this paragraph shall be deemed to
require the Company to so register the Warrant Shares) or (ii) such Warrant Shares
being freely transferable by Holder pursuant to Rule 144 promulgated under the Act
or otherwise pursuant to the Act.

(b) Representations and Warranties by Company. Company hereby represents and warrants to
Holder that the statements in the following paragraphs of this Section 4(b) are true and
correct as of the date hereof

(i) Corporate Power . Company has all requisite legal and corporate power and
authority to execute, issue and deliver this Warrant, to issue the Warrant Shares
issuable upon exercise or conversion of this Warrant, and to carry out and perform
its obligations under this Warrant.

(ii) Authorization; Enforceability. All corporate action on the part of Company,
its officers, directors and shareholders necessary for the authorization, execution,
delivery and performance of its obligations under this Warrant and for the
authorization, issuance and delivery of this Warrant and the Warrant Shares issuable
upon exercise or conversion of this Warrant has been taken and this Warrant
constitutes the legally binding and valid obligation of Company enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally and
subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law and the time barring of claims and defenses of
set-off or counterclaim.

(iii) Valid Issuance of Warrant and Warrant Shares. This Warrant has been validly
issued and is free of restrictions on transfer other than restrictions on transfer
set forth herein and under applicable state and federal securities laws. The Warrant
Shares issuable upon conversion of this Warrant, when issued, sold and delivered in
accordance with the terms of this Warrant for the consideration expressed herein,
will (a) be duly and validly issued, fully paid and nonassessable, (b) rank pari
passu with the fully paid Common Stock then in issue, (c) be free of restrictions on
transfer other than restrictions on transfer under this Warrant and under applicable
state and federal securities laws and (d) be entitled to receive any dividend or
other distribution which has previously been announced or declared if the date by
which the holder of the Common Stock must be registered to participate in such
dividend or distribution is after the date on which the Exercise Notice is delivered
by the Holder to the Company in accordance with either

 

 

clause 3(a) or 3(b) as
appropriate. Subject to applicable restrictions on transfer, the issuance and
delivery of this Warrant and the Warrant Shares issuable upon exercise or conversion
of this Warrant are not subject to any preemptive or other similar rights or any
liens or encumbrances except as specifically set forth in Company’s Certificate of
Incorporation or this Warrant. The offer, sale and issuance of the Warrant Shares,
as contemplated by this Warrant, are intended to be exempt from the prospectus and
registration requirements of applicable United
States federal and state security laws, and neither Company nor any authorized agent
acting on its behalf has or will take any action hereafter that would cause the loss
of any such exemption.

(iv) No Conflict. The execution, delivery, and performance of this Warrant will not
result in (a) any violation of, be in conflict with, or constitute a default under,
with or without the passage of time or the giving of notice (1) any provision of
Company’s Certificate of Incorporation or by-laws; (2) any material provision of any
judgment, decree, or order to which Company is a party, by which it is bound, or to
which any of its material assets are subject or (3) any material provision of a
statute, rule, governmental regulation or stock exchange listing rule applicable to
Company or its issued securities (including the CDIs related thereto).

(v) Capitalization. The capitalization of Company as set forth in Annex A is
complete and accurate as of the date hereof (after giving effect to the issuance of
this Warrant) and reflects (a) all outstanding capital stock of Company and (b) all
outstanding warrants, options, conversion privileges, preemptive rights or other
rights or agreements to purchase or otherwise acquire or issue any equity securities
or convertible securities of Company. Company has reserved in its books and records
[to be inserted when known – Company to insert] shares of Common Stock for issuance
under this Warrant.

5. Legends.

(a) Legend. Book-entry shares representing the Warrant Shares shall bear the following
legend:

“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE
SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT REGISTRATION UNDER THE SECURITIES ACT
OR STATE SECURITIES LAWS OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.”

The Company need not enter into its stock records a transfer of Warrant Shares unless the
conditions specified in the foregoing legend are satisfied. The Company may also instruct
its transfer agent not to allow the transfer of any of the Warrant Shares unless the
conditions specified in the foregoing legend are satisfied.

 

 

(b) Removal of Legend and Transfer Restrictions. The legend relating to the Act described
in paragraph 5(a) of this Warrant shall be removed and Company shall cause the issuance of
book-entry shares without such legend to Holder if (i) the Securities are registered under
the Act and a prospectus meeting the requirements of Section 10 of the Act is available,
nothing herein contained shall be deemed to require the Company to so register this Warrant
or the Warrant Shares or (ii) Holder provides to Company an opinion of counsel for Holder
knowledgeable in securities laws and reasonably satisfactory to Company, or other evidence
reasonably satisfactory to Company, to the
effect that public sale, transfer or assignment of the Securities may be made without
registration.

6. Condition of Transfer or Exercise of Warrant. It shall be a condition to any transfer or
exercise of this Warrant that at the time of such transfer or exercise, Holder shall provide
Company with a representation in writing that Holder or transferee is acquiring this Warrant and
the shares of Common Stock to be issued upon exercise for investment purposes only and not with a
view to any sale or distribution, or will provide Company with a statement of pertinent facts
covering any proposed distribution. As a further condition to any transfer of this Warrant or any
or all of the shares of Common Stock issuable upon exercise of this Warrant, other than a transfer
registered under the Act, Company may request a legal opinion, in form and substance satisfactory
to Company and its counsel, reciting the pertinent circumstances surrounding the proposed transfer
and stating that such transfer is exempt from the registration and prospectus delivery requirements
of the Act. The Company shall not require Holder to provide an opinion of counsel if the transfer
is to an affiliate of Holder. Each book-entry share evidencing the Warrant Shares issued upon
exercise of this Warrant or upon any transfer of the Warrant Shares (other than a transfer
registered under the Act or any subsequent transfer of shares so registered) shall, at Company’s
option, if the Warrant Shares are not freely saleable under Rule 144(k) under the Act, contain a
legend in form and substance satisfactory to Company and its counsel, restricting the transfer of
the Warrant Shares to sales or other dispositions exempt from the requirements of the Act. As
further condition to each transfer, at the request of Company, Holder shall surrender this Warrant
to Company and the transferee shall receive and accept a Warrant, of like tenor and date, executed
by Company.

7. Adjustment for Certain Events. The number and kind of securities purchasable upon the exercise
of this Warrant and the Warrant Price shall be subject to adjustment from time to time upon the
occurrence of certain events, as follows:

(a) Reclassification or Merger. In case of (i) any reclassification or change of securities
of the class issuable upon exercise of this Warrant (other than a change in par value, or
from par value to no par value, or from no par value to par value, or as a result of a
subdivision or combination), (ii) any merger of Company with or into another corporation
(other than a merger with another corporation in which Company is the acquiring and the
surviving corporation and which does not result in any reclassification or change of
outstanding securities issuable upon exercise of this Warrant), or (iii) any sale of all or
substantially all of the assets of Company, Company, or such successor or purchasing
corporation, as the case may be, shall duly execute and deliver to Holder a

 

 

new Warrant (in
form and substance satisfactory to Holder of this Warrant), or Company shall make
appropriate provision without the issuance of a new Warrant, so that Holder shall have the
right to receive, at a total purchase price not to exceed that payable upon the exercise of
the unexercised portion of this Warrant, and in lieu of the Warrant Shares theretofore
issuable upon exercise or conversion of this Warrant, the kind and amount of shares of
stock, other securities, money and property receivable upon such reclassification, change,
merger or sale by a holder of the number of shares of Common Stock then purchasable under
this Warrant, or in the case of such a merger or sale in which the consideration paid
consists all or in part of assets other than securities of the
successor or purchasing corporation, at the option of Holder, the securities of the
successor or purchasing corporation having a value at the time of the transaction equivalent
to the value of the Warrant Shares purchasable upon exercise of this Warrant at the time of
the transaction. Any new Warrant shall provide for adjustments that shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Section 7. The
provisions of this subparagraph (a) shall similarly apply to successive reclassifications,
changes, mergers and transfers.

(b) Subdivision or Combination of Shares. If Company at any time while this Warrant remains
outstanding and unexpired shall subdivide or combine its outstanding shares of Common Stock,
the Warrant Price shall be proportionately decreased and the number of Warrant Shares
issuable hereunder shall be proportionately increased in the case of a subdivision and the
Warrant Price shall be proportionately increased and the number of Warrant Shares issuable
hereunder shall be proportionately decreased in the case of a combination.

(c) Stock Dividends and Other Distributions. If Company at any time while this Warrant is
outstanding and unexpired shall (i) pay a dividend with respect to Common Stock payable in
Common Stock, then the Warrant Price shall be adjusted, from and after the date of
determination of shareholders entitled to receive such dividend or distribution, to that
price determined by multiplying the Warrant Price in effect immediately prior to such date
of determination by a fraction (A) the numerator of which shall be the total number of
            shares of Common Stock outstanding immediately prior to such dividend or distribution, and
(B) the denominator of which shall be the total number of shares of Common Stock outstanding
immediately after such dividend or distribution; or (ii) make any other distribution with
respect to Common Stock (except any distribution specifically provided for in Sections 7(a)
and 7(b)), then, in each such case, provision shall be made by Company such that Holder
shall receive upon exercise of this Warrant a proportionate share of any such dividend or
distribution as though it were Holder of the Warrant Shares as of the record date fixed for
the determination of the shareholders of Company entitled to receive such dividend or
distribution.

(d) Adjustment of Number of Shares. Upon each adjustment in the Warrant Price, the number
of Warrant Shares purchasable hereunder shall be adjusted, to the nearest whole share, to
the product obtained by multiplying the number of Warrant Shares

 

 

purchasable immediately
prior to such adjustment in the Warrant Price by a fraction, the numerator of which shall be
the Warrant Price immediately prior to such adjustment and the denominator of which shall be
the Warrant Price immediately thereafter.

8. Notice of Adjustments. Whenever any Warrant Price or the kind or number of securities issuable
under this Warrant shall be adjusted pursuant to Section 7 hereof, Company shall prepare a
certificate signed by an officer of Company setting forth, in reasonable detail, the event
requiring the adjustment, the amount of the adjustment, the method by which such adjustment was
calculated, and the Warrant Price and number or kind of shares issuable upon exercise of this
Warrant after giving effect to such adjustment, and shall cause copies of such certificate to
be mailed (by certified or registered mail, return receipt required, postage prepaid) within thirty
(30) days of such adjustment to Holder as set forth in Section 19 hereof.

9. Transferability of Warrant. This Warrant is transferable on the books of Company at its
principal office by the registered Holder hereof upon surrender of this Warrant properly endorsed,
subject to compliance with Section 6 and applicable federal and state securities laws. The Company
shall issue and deliver to the transferee a new Warrant representing the Warrant so transferred.
Upon any partial transfer, Company will issue and deliver to Holder a new Warrant with respect to
the Warrant not so transferred. Holder shall not have any right to transfer any portion of this
Warrant to any direct competitor of Company.

10. Registration Rights. If, prior to the sale of the Warrant Shares by Holder, the Company agrees
to grant registration rights, and other associated rights contained in the applicable registration
rights agreement including, if any, without limitation, with respect to amendments to such rights
and with respect to the granting of other registration rights (collectively, the “Registration
Rights”), to any purchaser or holder of its Common Stock or other class of equity security, other
than a registration relating solely to employee benefit plans, a registration relating to a
corporate reorganization or other Rule 145 transaction, or a registration on any registration form
that does not permit secondary sales, the Company will provide Holder with the option to receive no
less favorable Registration Rights than those granted to such other purchaser or holder. In such an
event, the Company will provide Holder with a substantially final version of the registration
rights agreement evidencing the Registration Rights (the “Registration Rights Agreement”), along
with a blank signature page in the name of Holder. Upon receipt of such documents, Holder, at its
option, will be entitled to become a party to the Registration Rights Agreement by executing and
returning to Company the signature page provided within ten (10) Business Days of its receipt from
the Company in accordance with Section 19. If Holder declines the Company’s first offer of
Registration Rights, the Company will be required to offer Holder, in the manner described above,
the option to receive no less favorable Registration Rights than those granted to any purchaser or
holder of its Common Stock or other class of equity security upon the Company’s next grant of
Registration Rights. It being understood that the Company will not be required to offer Holder
Registration Rights more than two (2) times (and that any amendments and/or restatements of
registration rights agreements to which, pursuant to this Section 10, Holder has become a party,
shall not constitute a new “offer” of new Registration Rights for purposes of this sentence). The
Holder’s rights under this Section will terminate upon

 

 

its delivery of its executed signature page
to the Company (but, for the avoidance of doubt, Holder’s Registration Rights pursuant to the
agreement to which such signature page relates shall become effective (and not terminate) on
delivery of such signature page by Holder) and its acceptance of the Company’s offer of
Registration Rights; provided that, if the Company should take any action to terminate Holder’s
Registration Rights after Holder’s acceptance, the Company’s obligations under this Section will be
revived.

11. Rule 144 Reporting. With a view to making available the benefits of certain rules and
regulations of the Commission that may permit the sale of the restricted securities to the public
without registration, the Company agrees to use its reasonable best efforts to:

(a) Make and keep public information regarding the Company available as those terms are
understood and defined in Rule 144 under the Act, at all times from and after the effective
date of the first registration statement under the Act filed by the Company for an offering
of its securities to the general public;

(b) File with the Commission in a timely manner all reports and other documents required of
the Company under the Act and the Exchange Act of 1934, as amended (“Exchange Act”) at any
time after it has become subject to such reporting requirements; and

(c) So long as Holder owns any restricted securities, furnish to the Holder forthwith upon
written request a written statement by the Company as to its compliance with the reporting
requirements of Rule 144 (at any time from and after ninety (90) days following the
effective date of the first registration statement filed by the Company for an offering of
its securities to the general public), and of the Act and the Exchange Act (at any time
after it has become subject to such reporting requirements), a copy of the most recent
annual or quarterly report of the Company, and such other reports and documents so filed as
Holder may reasonably request in availing itself of any rule or regulation of the Commission
allowing Holder to sell any such securities without registration.

12. No Fractional Shares. No fractional share of Common Stock will be issued in connection with
any exercise or conversion hereunder, and the number of Warrant Shares to be issued upon conversion
shall be rounded up to the nearest whole share.

13. Charges, Taxes and Expenses. Issuance of shares of Common Stock upon the exercise or conversion
of this Warrant shall be made without charge to Holder for any United States or state of the United
States documentary stamp tax or other incidental expense with respect to the issuance of such
shares, all of which taxes and expenses shall be paid by Company, and such shares shall be issued
in the name of Holder.

14. No Shareholder Rights Until Exercise. Except as expressly provided herein, this Warrant does
not entitle Holder to any voting rights or other rights as a shareholder of Company prior to the
exercise hereof.

 

 

15. Registry of Warrant. Company shall maintain a registry showing the name and address of the
registered Holder of this Warrant. This Warrant may be surrendered for exchange or exercise, in
accordance with its terms, at such office or agency of Company, and Company and Holder shall be
entitled to rely in all respects, prior to written notice to the contrary, upon such registry.

16. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and,
in the case of loss, theft, or destruction, of indemnity reasonably satisfactory to it, and, if
mutilated, upon surrender and cancellation of this Warrant, Company will execute and deliver a new
Warrant, having terms and conditions substantially identical to this Warrant, in lieu hereof.

17. Miscellaneous.

(a) Issue Date. The provisions of this Warrant shall be construed and shall be given effect
in all respect as if it had been issued and delivered by Company on the date hereof.

(b) Successors. This Warrant shall be binding upon any successors or assigns of Company.

(c) Headings. The headings used in this Warrant are used for convenience only and are not
to be considered in construing or interpreting this Warrant.

(d) Saturdays, Sundays, Holidays. If the last or appointed day for the taking of any action
or the expiration of any right required or granted herein shall be a Saturday or a Sunday or
shall be a legal holiday in the State of New York, then such action may be taken or such
right may be exercised on the next succeeding day not a legal holiday.

(e) Attorney’s Fees. In the event of any dispute between the parties concerning the terms
and provisions of this Warrant, the party prevailing in such dispute shall be entitled to
collect from the other party all costs incurred in such dispute, including reasonable
attorney’s fees.

(f) Acceptance. Receipt of this Warrant by the Holder shall constitute acceptance of and
agreement to all of the terms and conditions contained herein.

18. No Impairment. Company will not, by amendment of its Certificate of Incorporation or any other
voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such terms and in
the taking of all such action as may be necessary or appropriate in order to protect the rights of
Holder hereof against impairment.

19. Addresses. Any notice required or permitted hereunder shall be in writing and shall be mailed
by overnight courier, registered or certified mail, return receipt requested, and postage prepaid,
or otherwise delivered by hand or by messenger, addressed as set forth below, or at such

 

 

other
address as Company or Holder hereof shall have furnished to the other party in accordance with the
delivery instructions set forth in this Section 19.

	 	 	 
	If to Company:

	 	Peplin, Inc.
	 

	 	6475 Christie Avenue
	 

	 	Emeryville, CA 94608
	 

	 	Attn: Chief Financial Officer
	 
	 	 
	With a copy to:

	 	Latham &Watkins LLP
	 

	 	650 Town Center Drive, 20th Floor
	 

	 	Costa Mesa, CA 92626-1925
	 

	 	Attn: B. Shayne Kennedy
	 
	 	 
	If to Holder:

	 	[Oxford Finance Corporation
	 

	 	133 North Fairfax Street
	 

	 	Alexandria, VA 22314
	 

	 	Attn: Timothy A. Lex, Chief Operating
	 

	 	Officer/
	 

	 	or
	 

	 	/ GE Capital Equity Investments, Inc.
	 

	 	201 Merritt 7, 1st Floor
	 

	 	P.O. Box 5201
	 

	 	Norwalk, Connecticut 06851
	 

	 	Attn: General Counsel
	With copies to:

	 	General Electric Capital Corporation
	 

	 	c/o GE Healthcare Financial Services, Inc.
	 

	 	83 Wooster Heights Road, Fifth Floor
	 

	 	Danbury, Connecticut 06810
	 

	 	Attn: Senior Managing Director and
	 

	 	Senior Vice President of Risk
	 
	 	 
	 

	 	Hogan & Hartson L.L.P.
	 

	 	555 13th Street, NW
	 

	 	Washington, DC 20004
	 

	 	Attn: Deborah Staudinger, Esq.]

If mailed by registered or certified mail, return receipt requested, and postage prepaid,
notice shall be deemed to be given five (5) days after being sent, and if sent by overnight
courier, by hand or by messenger, notice shall be deemed to be given when delivered (if on a
Business Day, and if not, on the next Business Day).

20. Amendments. This Warrant and any term hereof may be changed, waived, discharged or terminated
only by an instrument in writing signed by each of Company and Holder.

 

 

21. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY
OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS WARRANT OR THE WARRANT SHARES.

22. GOVERNING LAW. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. THE PARTIES
HEREBY UNCONDITIONALLY AND IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION AND VENUE OF THE COURTS
OF THE STATE OF CALIFORNIA AND THE UNITED STATES OF AMERICA LOCATED IN THE STATE OF CALIFORNIA FOR
ANY ACTIONS, SUITS OR PROCEEDINGS ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

IN WITNESS WHEREOF, Company has caused this Warrant to be executed by its officer thereunto duly
authorized.

PEPLIN, INC.

	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 

Dated as of                           , 200     .

NOTICE OF EXERCISE

To:

PEPLIN, INC.

	 	 	 
	 

	 	 
	 

	 	 
	 

	 	 

1. The undersigned Warrant holder (“Holder”) elects to acquire shares of the common stock, par
value $0.001 per share (the “Common Stock”), of Peplin, Inc. (the “Company”), pursuant to the terms
of the Stock Purchase Warrant dated December [28], 2007 (the “Warrant”).

2. The Holder exercises its rights under the Warrant as set forth below:
(     ) Holder elects to purchase                     shares of Common Stock as provided in Section
3(a) and tenders payment herewith in cash, certified check, wire transfer or other

 

 

immediately
available funds in the amount of
US$                    as
payment of the purchase price.

(     ) Holder elects to convert the purchase rights into shares of Common Stock as provided
in Section 3(b) of the Warrant.

3. Holder surrenders the Warrant with this Notice of Exercise.
Holder represents that it is acquiring the aforesaid shares of Common Stock for investment and not
with a view to or for resale in connection with distribution and that Holder has no present
intention of distributing or reselling the shares.
Please issue the shares of the Common Stock in the name of Holder or in such other name as is
specified below:

	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Taxpayer I.D.:	 	 	 	 
	 

	 	 	 	 

	 	 

If the Exercise Amount is less than all of the shares of Common Stock purchasable hereunder, please
issue a new Warrant representing the remaining balance of such shares, as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Name:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	—	 	 	 	 	 
	 
	 	Address:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	—	 	 	 	 	 
	 
	 	Taxpayer I.D.	 	 	:	 	 	 	 	 
	 
	 	 	 	 	 	 	—	 	 	 	 	 

[GE EQUITY INVESTMENTS, INC. / OXFORD FINANCE CORPORATION]

By:

	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 

Date:
                          , 200     

ANNEX A

COMPANY CAPITALIZATION

[10,341,484] shares of Common Stock

[17,118,960] listed CDI warrants convertible into [855,948] shares of Common Stock

[935,519] employee stock options convertible into [935,519] shares of Common Stock

A warrant to purchase [     ] shares of Common Stock issued pursuant to this Agreement.exv10w26

 

Exhibit 10.26

 GENERAL ELECTRIC CAPITAL CORPORATION

GUARANTY, PLEDGE AND SECURITY AGREEMENT

among

PEPLIN, INC.,

PEPLIN OPERATIONS USA, INC.

and

Each Other Guarantor

From Time to Time Party Hereto

and

GENERAL ELECTRIC CAPITAL CORPORATION,

as agent for Lenders

Dated as of December 28, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE I GUARANTY	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 1.1
	 	Guaranty
	 	 	1	 
	 

	 	Section 1.2
	 	Limitation of Guaranty
	 	 	2	 
	 

	 	Section 1.3
	 	Contribution
	 	 	2	 
	 

	 	Section 1.4
	 	Authorization; Other Agreements
	 	 	2	 
	 

	 	Section 1.5
	 	Guaranty Absolute and Unconditional
	 	 	3	 
	 

	 	Section 1.6
	 	Subordination of Other Indebtedness
	 	 	5	 
	 

	 	Section 1.7
	 	Reliance
	 	 	5	 
	 

	 	Section 1.8
	 	Continuing Guaranty
	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE
II SECURITY AGREEMENT; PROVISIONS RELATING TO ACCOUNTS COLLATERAL
AND INVENTORY COLLATERAL
	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 2.1
	 	Grant of Security Interest
	 	 	5	 
	 

	 	Section 2.2
	 	Intellectual Property and Rights to Payment
	 	 	8	 
	 

	 	Section 2.3
	 	Security Agreement
	 	 	8	 
	 

	 	Section 2.4
	 	Termination of Security Interest
	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES; COVENANTS	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.1
	 	Representations Warranties and Covenants of Loan Agreement
	 	 	9	 
	 

	 	Section 3.2
	 	Due Organization and Authorization
	 	 	9	 
	 

	 	Section 3.3
	 	Changes to Name, Location, Jurisdiction
	 	 	9	 
	 

	 	Section 3.4
	 	Consents
	 	 	10	 
	 

	 	Section 3.5
	 	No Conflicts
	 	 	10	 
	 

	 	Section 3.6
	 	Indebtedness
	 	 	10	 
	 

	 	Section 3.7
	 	Solvency
	 	 	10	 
	 

	 	Section 3.8
	 	Title; No Other Liens; Locations
	 	 	10	 
	 

	 	Section 3.9
	 	Deposit Accounts
	 	 	10	 
	 

	 	Section 3.10
	 	Investments; Pledged Collateral
	 	 	11	 
	 

	 	Section 3.11
	 	Commercial Tort Claims
	 	 	12	 
	 

	 	Section 3.12
	 	Instruments and Tangible Chattel Paper
	 	 	12	 
	 

	 	Section 3.13
	 	Letter of Credit Rights
	 	 	13	 
	 

	 	Section 3.14
	 	Electronic Chattel Paper
	 	 	13	 
	 

	 	Section 3.15
	 	Accounts Administration
	 	 	13	 
	 

	 	Section 3.16
	 	Creation, Preservation and Perfection of Security Interests
	 	 	13	 
	 

	 	Section 3.17
	 	Post-Closing Obligations	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV REMEDIAL PROVISIONS	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 4.1
	 	UCC and Other Remedies
	 	 	15	 
	 

	 	Section 4.2
	 	Accounts and Payments in Respect of General Intangibles and
Instruments
	 	 	17	 
	 

	 	Section 4.3
	 	Pledged Collateral
	 	 	18	 
	 

	 	Section 4.4
	 	Proceeds to be Turned over to and Held by Agent
	 	 	19	 
	 

	 	Section 4.5
	 	Remedial Provisions.
	 	 	19	 
	 

	 	Section 4.6
	 	Appointment of Agent
	 	 	20	 
	 

	 	Section 4.7
	 	Deficiency
	 	 	21	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	Page	 
	ARTICLE V MISCELLANEOUS	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 5.1
Section 5.2
	 	Reinstatement

Independent Obligations
	 	 	21

21	 
	 

	 	Section 5.3
	 	No Waiver by Course of Conduct
	 	 	21	 
	 

	 	Section 5.4
	 	Amendments in Writing
	 	 	22	 
	 

	 	Section 5.5
	 	Additional Guarantors
	 	 	22	 
	 

	 	Section 5.6
	 	Notices
	 	 	22	 
	 

	 	Section 5.7
	 	Successors and Assigns
	 	 	22	 
	 

	 	Section 5.8
	 	Counterparts
	 	 	22	 
	 

	 	Section 5.9
	 	Interpretation
	 	 	22	 
	 

	 	Section 5.10
	 	Severability
	 	 	22	 
	 

	 	Section 5.11
	 	Payments; Foreign Currency Indemnity
	 	 	22	 
	 

	 	Section 5.12
	 	Governing Law
	 	 	22	 
	 

	 	Section 5.13
	 	Submission to Jurisdiction
	 	 	23	 
	 

	 	Section 5.14
	 	Service of Process
	 	 	23	 
	 

	 	Section 5.15
	 	Non-Exclusive Jurisdiction
	 	 	23	 
	 

	 	Section 5.16
	 	Waiver of Jury Trial
	 	 	23	 
	 

	 	Section 5.17
	 	Conflicts
	 	 	23	 

ii

 

ANNEX

	 	 	 	 	 
	 

	 	Annex 1
	 	Form of Joinder Agreement

-i-

 

          GUARANTY, PLEDGE AND SECURITY AGREEMENT (this “Agreement”), dated as of December 28,
2007, by PEPLIN, INC. (“Peplin”), PEPLIN OPERATIONS USA, INC. (“Peplin Operations”)
and each of the other entities listed on the signature pages hereto or that becomes a party hereto
pursuant to Section 5.5 (collectively, the “Guarantors”), in favor of General
Electric Capital Corporation (“GECC”), in its capacity as agent for Lenders (defined below)
(together with its successors and permitted assigns, the “Agent”).

W I T N E S S E T H:

          WHEREAS, pursuant to that certain Loan Agreement, dated as of December 28, 2007, among Agent,
GECC, in its capacity as security trustee for the Lenders (“Security Trustee”), the
financial institutions who are listed in Part 2 of Schedule A thereto or hereafter become parties
thereto as lenders (collectively, the “Lenders”), Peplin Limited, a corporation registered
in Queensland, Australia (“Borrower”), Peplin and the other entities listed in Part 1 of
Schedule A thereto and the other entities or persons, if any, who hereafter become parties thereto
as guarantors (as amended, restated, supplemented or otherwise modified from time to time, the
“Loan Agreement”; capitalized terms used herein without definition are used as defined in
the Loan Agreement), the Lenders have agreed to make extensions of credit to the Borrower upon the
terms and subject to the conditions set forth therein;

          WHEREAS, the Borrower is a direct wholly-owned subsidiary of Peplin and, as of the Closing
Date, Peplin Operations is a direct wholly-owned subsidiary of the Borrower;

          WHEREAS, Peplin Operations provides management services to the Borrower and certain of its
Affiliates for operations within the United States of America;

          WHEREAS, each Guarantor will derive substantial direct and indirect benefits from the making
of the extensions of credit under the Loan Agreement to the Borrower; and

          WHEREAS, it is a condition precedent to the obligation of the Lenders to make extensions of
credit to the Borrower under the Loan Agreement that the Guarantors shall have executed and
delivered this Agreement to the Agent, for the benefit of itself, the Lenders and the Security
Trustee (collectively, the “Finance Parties”);

          NOW, THEREFORE, in consideration of the premises and to induce the Lenders to make extensions
of credit to the Borrower under the Loan Agreement, each Guarantor hereby agrees with the Agent as
follows:

ARTICLE I

GUARANTY

          Section 1.1 Guaranty. Each Guarantor hereby, jointly and severally,
absolutely, unconditionally and irrevocably guarantees, as primary obligor and not merely as
surety, the full and punctual payment when due, whether at stated maturity or earlier, by reason of
acceleration, mandatory prepayment or otherwise in accordance with any Debt Document, of the Term
Loan and all other Obligations of the Borrower whether existing on the date hereof or hereinafter
incurred or created (the “Guaranteed Obligations”). This guaranty by each Guarantor
hereunder constitutes a guaranty of payment and not of collection.

 

 

          Section 1.2 Limitation of Guaranty. Any term or provision of this Agreement
or any other Debt Document to the contrary notwithstanding, the maximum aggregate amount for which
any Guarantor that is a Subsidiary of the Borrower (any “Subsidiary Guarantor”) shall be
liable hereunder shall not exceed the maximum amount for which such Subsidiary Guarantor can be
liable without rendering this Agreement or any other Debt Document, as it relates to such
Subsidiary Guarantor, subject to avoidance under applicable laws relating to fraudulent conveyance
or fraudulent transfer (including the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act and Section 548 of title 11, United States Code or any applicable provisions of
comparable laws) (collectively, “Fraudulent Transfer Laws”). Any analysis of the
provisions of this Agreement for purposes of Fraudulent Transfer Laws shall take into account the
right of contribution established in Section 1.3 and, for purposes of such analysis, give
effect to any discharge of intercompany debt as a result of any payment made under this Agreement.

          Section 1.3 Contribution. To the extent that any Subsidiary Guarantor shall
be required hereunder to pay any portion of any Guaranteed Obligation exceeding the greater of (a)
the amount of the economic benefit actually received by such Subsidiary Guarantor from the Term
Loans and other Obligations and (b) the amount such Subsidiary Guarantor would otherwise have paid
if such Subsidiary Guarantor had paid the aggregate amount of the Guaranteed Obligations (excluding
the amount thereof repaid by the Borrower) in the same proportion as such Subsidiary Guarantor’s
net worth on the date enforcement is sought hereunder bears to the aggregate net worth of all the
Subsidiary Guarantors on such date, then such Subsidiary Guarantor shall be reimbursed by such
other Subsidiary Guarantors for the amount of such excess, pro rata, based on the respective net
worth of such other Subsidiary Guarantors on such date.

          Section 1.4 Authorization; Other Agreements. The Agent is hereby authorized,
without notice to or demand upon any Guarantor and without discharging or otherwise affecting the
obligations of any Guarantor hereunder and without incurring any liability hereunder, from time to
time, to do each of the following:

          (a) (i) modify, amend, supplement, renew, extend, increase the principal amount of and/or the
rate of interest on, or otherwise change, (ii) accelerate or otherwise change the time, place,
manner or term of payment of, or (iii) waive or otherwise consent to noncompliance with, any
Guaranteed Obligation or any Debt Document;

          (b) apply to the Guaranteed Obligations any sums by whomever paid or however realized to any
Guaranteed Obligation in such order as provided in the Debt Documents;

          (c) refund at any time any payment received by the Agent in respect of any Guaranteed
Obligation;

          (d) (i) sell, exchange, enforce, waive, substitute, liquidate, terminate, release, abandon,
fail to perfect, subordinate, accept, substitute, surrender, exchange, affect, impair or otherwise
alter or release any Collateral (as defined below) for any Guaranteed Obligation or any other
guaranty therefor in any manner, (ii) receive, take, request, accept and hold additional Collateral
to secure any Guaranteed Obligation or additional guarantees in respect of the Guaranteed
Obligations, (iii) add, release or substitute any one or more other Guarantors, or any other
guarantors, makers or endorsers of any Guaranteed Obligation or any part thereof and (iv)

2

 

otherwise deal in any manner with the Borrower, any other Guarantor, and any other guarantor,
maker or endorser of any Guaranteed Obligation or any part thereof;

          (e) settle, release, compromise, collect or otherwise liquidate the Guaranteed Obligations;
and

          (f) exercise any other rights available to it under the Loan Agreement and other Debt
Documents.

          Section 1.5 Guaranty Absolute and Unconditional. Each Guarantor agrees that
its obligations hereunder are irrevocable, absolute, independent and unconditional and shall not be
discharged or otherwise affected by any circumstance other than payment in full of the Guaranteed
Obligations. In furtherance of the foregoing and without limiting the generality thereof, each
Guarantor hereby agrees as follows:

          (a) the Agent may enforce this Agreement upon the occurrence of an Event of Default under the
Loan Agreement notwithstanding any dispute between the Borrower and the Agent and/or any Lender
with respect to the existence of such Event of Default;

          (b) the obligations of each Guarantor hereunder are independent of the Obligations of the
Borrower under the Debt Documents and the obligations of any other guarantor (including any other
Guarantor) of the Obligations of the Borrower under the Debt Documents, and a separate action or
actions may be brought and prosecuted against such Guarantor whether or not any action is brought
against the Borrower or any of such other guarantors and whether or not Guarantor is the alter ego
of any of the Borrower and whether or not the Borrower is joined in any such action or actions;

          (c) payment by any Guarantor of a portion, but not all, of the Guaranteed Obligations shall in
no way limit, affect, modify or abridge any Guarantor’s liability for any portion of the Guaranteed
Obligations which has not been paid, and if the Agent and/or any Lender is awarded a judgment in
any suit brought to enforce any Guarantor’s obligations hereunder, such judgment shall not be
deemed to release such Guarantor from its covenant to pay the portion of the Guaranteed Obligations
that is not the subject of such suit, and such judgment shall not, except to the extent satisfied
by such Guarantor, limit, affect, modify or abridge any other Guarantor’s liability hereunder in
respect of the Guaranteed Obligations; and

          (d) to waive and not to assert any claim, setoff, counterclaim or defense, whether arising in
connection with or in respect of any of the following or otherwise, and hereby agrees that its
obligations under this Agreement shall not be reduced, limited, impaired, discharged or terminated
as a result of, or otherwise affected by, any of the following (which may not be pleaded and
evidence of which may not be introduced in any proceeding with respect to this Agreement, in each
case except as otherwise agreed in writing by the Agent):

     i. the invalidity or unenforceability of any obligation of the Borrower or any
other Guarantor under any Debt Document or any other agreement or instrument
relating thereto (including any amendment, consent or waiver thereto), or any
security for, or other guaranty of the Guaranteed Obligations or any part of them,
or the lack of perfection or continuing perfection

3

 

or failure of priority of any security for the Guaranteed Obligations or any
part of them;

     ii. any rescission, waiver, amendment, modification of, or consent to
departure from, any of the terms or provisions of any Debt Document or any
agreement or instrument executed or delivered in connection therewith;

     iii. the absence of (A) any attempt to collect any Guaranteed Obligation or
any part thereof from the Borrower or any other Guarantor or other action to
enforce any of the same, (B) any action to enforce any Debt Document, any provision
thereof, or any lien thereunder, or (C) any act to assert or enforce any claim,
right, demand, power or remedy whether arising under any Debt Document, at law, in
equity or otherwise;

     iv. the failure by any person to take any steps to perfect and maintain any
lien on, or to preserve any rights with respect to, any Collateral;

     v. any workout, insolvency, bankruptcy proceeding, reorganization,
arrangement, liquidation or dissolution by or against the Borrower, any other
Guarantor or any of the Borrower’s other Subsidiaries or any procedure, agreement,
order, stipulation, election, action or omission thereunder, including any
discharge or disallowance of, or bar or stay against collecting, any Guaranteed
Obligation (or interest thereon) in or as a result of any such proceeding;

     vi. any foreclosure, whether or not through judicial sale, and any other sale
or transfer of Collateral or any election following the occurrence of an Event of
Default by the Agent to proceed separately against any Collateral in accordance
with the Agent’s rights under any applicable law;

     vii. any other defense, setoff, counterclaim or any other circumstance that
might otherwise constitute a legal or equitable discharge of the Borrower, any
other Guarantor or any of the Borrower’s other Subsidiaries, in each case other
than the payment in full of the Guaranteed Obligations; or

     viii. diligence, promptness, presentment, requirements for any demand or
notice hereunder including any of the following: (A) any demand for payment or
performance and protest and notice of protest; (B) any notice of acceptance; (C)
any presentment, demand, protest or further notice or other requirements of any
kind with respect to any Guaranteed Obligation (including any accrued but unpaid
interest thereon) becoming immediately due and payable, (D) any other notice in
respect of the Guaranteed Obligations or any part of them, (E) any defense arising
by reason of any disability or other defense of the Borrower or any other Guarantor
and (F) any defense based on Agent’s errors or omissions in the administration of
the Guaranteed Obligations, except behavior which amounts to gross negligence or
willful misconduct as determined by a final determination by a court of competent
jurisdiction. Each Guarantor further unconditionally and irrevocably agrees not to
(X) enforce or otherwise exercise any right of subrogation or any right of
reimbursement or contribution or similar right against the Borrower or any other
Guarantor by reason of any Debt

4

 

Document or any payment made thereunder or (Y) assert any claim, defense,
setoff or counterclaim it may have against any other Loan Party or set off any of
its obligations to such other Loan Party against obligations of such Loan Party to
such Guarantor.

          Section 1.6 Subordination of Other Indebtedness. Any Indebtedness of the
Borrower or any other Loan Party now or hereafter held by any Guarantor is hereby subordinated in
right of payment to the Guaranteed Obligations, and any such Indebtedness of any such Borrower or
such other Loan Party to such Guarantor collected or received by such Guarantor after an Event of
Default has occurred and is continuing shall be held in trust for Agent on behalf of the Finance
Parties and shall forthwith be paid over to Agent for the benefit of the Finance Parties to be
credited and applied against the Guaranteed Obligations but without affecting, impairing or
limiting in any manner the liability of such Guarantor under any other provision of this Agreement;
provided that prior to the occurrence of an Event of Default, Guarantors may borrow, repay
and reborrow intercompany Indebtedness to the extent such intercompany Indebtedness is permitted
under Section 7.2 of the Loan Agreement.

          Section 1.7 Reliance. Each Guarantor hereby assumes responsibility for
keeping itself informed of the financial condition of the Borrower, each other Guarantor and any
other guarantor, maker or endorser of any Guaranteed Obligation or any part thereof, and of all
other circumstances bearing upon the risk of nonpayment of any Guaranteed Obligation or any part
thereof, that diligent inquiry would reveal, and each Guarantor hereby agrees that the Agent shall
not have any duty to advise any Guarantor of information known to it regarding such condition or
any such circumstances. In the event the Agent, in its sole discretion, undertakes at any time or
from time to time to provide any such information to any Guarantor, the Agent shall be under no
obligation to (a) undertake any investigation not a part of its regular business routine, (b)
disclose any information that the Agent, pursuant to accepted or reasonable commercial finance or
banking practices, wishes to maintain confidential or (c) make any future disclosures of such
information or any other information to any Guarantor.

          Section 1.8 Continuing Guaranty. This guaranty is a continuing guaranty and
shall remain in effect until all of the Guaranteed Obligations shall have been paid in full. Each
Guarantor hereby irrevocably waives any right to revoke this guaranty as to future transactions
giving rise to any Guaranteed Obligations.

ARTICLE II

SECURITY AGREEMENT; PROVISIONS RELATING TO

ACCOUNTS COLLATERAL AND INVENTORY COLLATERAL

          Section 2.1 Grant of Security Interest. As security for the prompt payment
and performance of the Guaranteed Obligations whether at stated maturity, by acceleration or
otherwise, each Guarantor hereby grants, pledges and assigns to Agent, on behalf of the Finance
Parties, a continuing first priority lien (subject only to Permitted Liens) on and security
interest in, upon, and to, all right, title and interest in and to any and all property and
interests in property of each Guarantor whether now owned or hereafter owned, created, acquired or
arising, and regardless of where located, including, without limitation, all of the following
properties and interests in properties (collectively, the “Collateral”):

          (a) all Accounts;

5

 

          (b) all Chattel Paper (whether tangible or electronic);

          (c) all Commercial Tort Claims, as more particularly described in the Perfection Certificate
(as may be amended or supplemented from time to time);

          (d) all Deposit Accounts;

          (e) all cash and Cash Equivalents

          (f) all Documents;

          (g) all Equipment;

          (h) all Fixtures;

          (i) all Goods;

          (j) all Instruments;

          (k) all Inventory;

          (l) all Letter-of-Credit Rights and letters of credit;

          (m) all General Intangibles, Payment Intangibles and other rights to payment, including,
without limitation, all Rights to Payment (as defined in Section 2.2) and all Indebtedness
owing to such Guarantor from another Loan Party (which Indebtedness must be evidenced by way of a
global intra-group note on or before the Closing Date), including all right, title and interest of
such Guarantor in instruments evidencing any Indebtedness owed to such Guarantor or other
obligations, and any distribution of property made on, in respect of or in exchange for the
foregoing from time to time (such Indebtedness collectively, the “Pledged Debt”);

          (n) all Investment Property and Financial Assets, including, without limitation, 100% of the
shares of the outstanding capital stock or other equity interests, of any class, of each Subsidiary
of such Guarantor and all certificates evidencing the same (collectively, the “Pledged
Securities”, and together with the Pledged Debt, the “Pledged Collateral”), together
with, in each case:

     (i) all shares, securities, stock, equity interests, moneys or property
representing a dividend on any of the Pledged Securities, or representing a
distribution or return of capital upon or in respect of the Pledged Securities, or
resulting from a split-up, revision, reclassification or other like change of the
Pledged Securities or otherwise received in exchange therefor, and any subscription
warrants, rights or options issued to the holders of, or otherwise in respect of,
the Pledged Securities, and

     (ii) without affecting the obligations of such Guarantor under any provision
prohibiting such action hereunder, in the event of any consolidation or merger in
which the issuer of any Pledged Security is not the surviving entity, all shares of
each class of the capital stock of the successor corporation (unless such

6

 

successor corporation is such Guarantor itself or the Borrower), or all other
stock, as applicable, formed by or resulting from such consolidation or merger (the
Pledged Securities, together with all other certificates, shares, securities,
Stock, properties or moneys as may from time to time be pledged hereunder pursuant
to this clause (ii) and clause (i) above being herein collectively called the
“Securities Collateral”);

          (o) all Contracts and other contract rights (including, without limitation, rights under any
lease, license or other agreements);

          (p) all cash, royalty fees, other proceeds, accounts and general intangibles that consist of
rights of payment to or on behalf of a Loan Party or proceeds from the sale, licensing or other
disposition of all or any part of, or rights in, the Intellectual Property (as defined in
Section 2.2) by or on behalf of a Loan Party (collectively, “Rights to Payment”);

          (q) all Securities Entitlements;

          (r) all Software;

          (s) all other tangible and intangible personal property whatsoever of such Guarantor; and

          (t) all Proceeds, Supporting Obligations, products, insurance claims, offspring, accessions,
rents, profits, income, benefits, additions, attachments, accessories, substitutions and
replacements of, to, arising out of or related to any of the Collateral and, to the extent related
to any Collateral, all books, correspondence, credit files, records, invoices and other documents
(including, without limitation, all tapes, cards, computer runs and other documents and documents
in the possession or under the control of such Guarantor or any computer bureau or service company
from time to time acting for such Guarantor);

provided, however, this grant is subject to the limitations set forth in
Section 2.2.

          Unless otherwise specified herein, the following terms have the meanings ascribed to them in
the UCC (as defined below), provided, that if such term shall be defined differently in
multiple divisions or articles of the UCC, the definitions for such terms specified in Article or
Division 9 of the UCC shall control: “Accounts”, “Account Debtor”, “Chattel
Paper”, “Commercial Tort Claims”, “Contracts”, “Deposit Accounts”,
“Documents”, “Equipment”, “Financial Asset” “Fixtures”,
“General Intangibles”, “Goods”, “Instruments”, “Inventory”,
“Investment Property”, “Letter-of-Credit Rights”, “Payment Intangible”,
“Proceeds”, “Securities”, “Securities Account”, “Security
Entitlement”, “Software” and “Supporting Obligations”. As used
herein, “UCC” means the Uniform Commercial Code as from time to time in effect in the State of New
York; provided, however, that, in the event that, by reason of mandatory provisions
of any applicable requirement of law, any of the attachment, perfection or priority of the Agent’s
security interest in any Collateral is governed by the Uniform Commercial Code of a jurisdiction
other than the State of New York, “UCC” shall mean the Uniform Commercial Code as in effect in such
other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or
priority and for purposes of the definitions related to or otherwise used in such provisions.

7

 

          Section 2.2 Exceptions to the Grant of Security Interest. Notwithstanding
anything herein to the contrary, in no event shall the Collateral include (a) any intellectual
property arising anywhere in the world owned or licensed by any Loan Party, which shall be defined
as any and all copyright, trademark (and goodwill associated with such trademarks), servicemark
(and goodwill associated with such servicemarks), patent, design right, software, trade secret and
intangible rights of a Loan Party and any applications, registrations, claims, products, awards,
judgments, amendments, renewals, extensions, improvements, continuations, reissues, reexaminations
or divisions and insurance claims related thereto (collectively, “Intellectual Property”)
now owned or licensed or hereafter acquired or licensed, or any claims for damages by way of any
past, present or future infringement of any of the foregoing; provided, however,
that the Collateral shall include all Rights to Payment, or (b) any lease, license, contract,
property rights or agreement to which any Guarantor is a party or any of its rights or interests
thereunder if and for so long as the grant of such security interest shall constitute or result in
(i) the abandonment, invalidation or unenforceability of any right, title or interest of such
Guarantor therein or (ii) a breach or termination pursuant to the terms of, or a default under, any
such lease, license, contract, property rights or agreement (other than to the extent that any such
term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or
any successor provision or provisions) of any relevant jurisdiction or any other applicable law
(including the Bankruptcy Code) or principles of equity); provided, however, that
such security interest shall attach immediately at such time as the condition causing such
abandonment, invalidation or unenforceability shall be remedied and to the extent severable, shall
attach immediately to any portion of such lease, license, contract, property rights or agreement
that does not result in any of the consequences specified in clause (b)(i) or (b)(ii) above.
Notwithstanding the foregoing, to the extent it is necessary under applicable law in any bankruptcy
or insolvency proceeding involving a Loan Party for Agent (on behalf of the Finance Parties) to
have a security interest in the underlying Intellectual Property in order for Agent to have (i) a
security interest in the Rights to Payment and (ii) a security interest in any payments with
respect to Rights to Payment that are received after the commencement of such bankruptcy or
insolvency proceeding, then the Collateral shall automatically, and effective as of the date
hereof, include the Intellectual Property to the extent necessary to permit attachment and
perfection of Agent’s security interest (on behalf of the Finance Parties) in the Rights to Payment
and any payments in respect thereof that are received after the commencement of any bankruptcy or
insolvency proceeding. Agent hereby agrees on behalf of the Finance Parties that, if Agent obtains
a security interest in the Intellectual Property pursuant to the immediately preceding sentence,
Agent will not exercise any remedies (under the UCC or otherwise) with respect to the Intellectual
Property (other than remedies with respect to Rights to Payment or any other proceeds of the
Intellectual Property).

          Section 2.3 Security Agreement. This Agreement shall constitute a security
agreement as that term is used in the Uniform Commercial Code in effect in the jurisdiction(s) in
which each Guarantor is organized and in the jurisdiction(s) in which the Collateral is situated.
Each Finance Party and each Guarantor agrees that the Perfection Certificate (as may be amended or
supplemented from time to time) and all descriptions of Collateral, schedules, amendments and
supplements thereto are and shall at all time remain a part of this Agreement.

          Section 2.4 Termination of Security Interest. Subject to Section 11.10 of the
Loan Agreement, Agent’s lien on the Collateral (on behalf of the Finance Parties) shall continue
until all of the Obligations are indefeasibly repaid in full in cash, all of the Commitments under
the Loan Agreement are terminated, and the Loan Agreement shall have been terminated (the
“Termination Date”). Upon the Termination Date, Agent shall, at Loan Parties’ sole cost
and

8

 

expense and without any recourse, representation or warranty, release its liens in the
Collateral, and all rights remaining therein, if any, shall revert to Loan Parties.

ARTICLE III

REPRESENTATIONS AND WARRANTIES; COVENANTS

          To induce the Agent and the Lenders to enter into the Debt Documents, each Guarantor hereby
represents, warrants and covenants to the Agent and the Lenders, for as long as any Obligation or
Commitment remains outstanding, as follows:

          Section 3.1 Representations Warranties and Covenants of Loan Agreement.

          (a) Each of the representations and warranties as to such Guarantor made by the Borrower or
such Guarantor in Article 5 (Representations and Warranties of Loan Parties) of the Loan
Agreement are true and correct on each date as required by the Loan Agreement.

          (b) Each Guarantor shall comply with all covenants and other provisions applicable to it under
the Loan Agreement.

          Section 3.2 Due Organization and Authorization. Each Guarantor’s
exact legal name (as set forth on the public record of such jurisdiction of organization
that shows such Guarantor to have been organized) is as set forth in the Perfection Certificate (as
may be amended or supplemented from time to time) and each Guarantor is, and will remain, duly
organized, existing and in good standing under the laws of the State of its organization as
specified in the Perfection Certificate (as may be amended or supplemented from time to time), has
its chief executive office at the location specified in the Perfection Certificate (as may be
amended or supplemented from time to time), and is, and will remain, duly qualified and licensed in
every jurisdiction where its ownership or lease of property or the conduct of its business requires
such qualification, except where the failure to be so qualified and licensed could not reasonably
be expected to have a Material Adverse Effect. This Agreement and the other Debt Documents have
been duly authorized, executed and delivered by each Guarantor and constitute legal, valid and
binding agreements enforceable in accordance with their terms subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and
subject to general principles of equity, regardless of whether considered in a proceeding in equity
or at law and the time barring of claims and defenses of set-off or counterclaim. The execution,
delivery and performance by each Guarantor of each Debt Document executed or to be executed by it
is in each case within such Guarantor’s powers. Within five years before the date of this
Agreement, no Guarantor has conducted business under or used any other name (whether corporate,
partnership or assumed) other than as shown on the Perfection Certificate (as may be amended or
supplemented from time to time). Each trade name of each Guarantor represents a division or
trading style of such Guarantor and not a separate person or independent Affiliate.

          Section 3.3 Changes to Name, Location, Jurisdiction. No Guarantor shall,
and no Guarantor shall permit any of its Subsidiaries to, (a) change its name or its state of
organization, (b) relocate its chief executive office without 30 days prior written notification to
Agent, (c) engage in any business other than or reasonably related or incidental to the businesses
currently engaged in by such Guarantor or Subsidiary, (d) cease to conduct business substantially
in the manner conducted by such Guarantor or Subsidiary as of the date of this Agreement or (e)
change its fiscal year end, except on at least 30 days prior written notice to Agent.

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          Section 3.4 Consents. No filing (other than filings of UCC financing
statements in respect of any Debt Document), registration, qualification with, or approval, consent
or withholding of objections from, any governmental authority or instrumentality or any other
entity or person with respect to the entry into, or performance by any Guarantor, of any of the
Debt Documents.

          Section 3.5 No Conflicts . The entry into, and performance by each
Guarantor of, this Agreement and the other Debt Documents will not (a) violate any of the
constituent or organizational documents of such Guarantor, (b) violate any material law, rule,
regulation, order, award or judgment applicable to such Guarantor, or (c) result in any breach of
or constitute a default under, or result in the acceleration of any obligation or creation of any
lien, claim or encumbrance on any of such Guarantor’s property (except for liens in favor of the
Agent or Security Trustee) pursuant to, any indenture, mortgage, deed of trust, bank loan, credit
agreement, or other Material Agreement to which such Guarantor is a party.

          Section 3.6 Indebtedness. Except as described on the Perfection Certificate (as
may be amended or supplemented from time to time) or as permitted under the Debt Documents, no
Guarantor has any Indebtedness, including, without limitation, any outstanding guarantees for the
obligations of, or any outstanding borrowings from, any other person.

          Section 3.7 Solvency. Both before and after giving effect to each Term Loan, the
transactions contemplated in the Loan Agreement, and the payment and accrual of all transaction
costs in connection with the foregoing, each Guarantor is and will be Solvent.

          Section 3.8 Title; No Other Liens; Locations . Each Guarantor is, and will
remain, the sole and lawful owner, and in possession of (other than Collateral out for maintenance,
repair or in-transit between locations specified on the Perfection Certificate (as may be amended
or supplemented from time to time), the value for which at any time shall not be, in the aggregate,
greater than $50,000), the Collateral, and has the sole right and lawful authority to grant the
security interest described herein. The Collateral is, and will remain, free and clear of all
liens, claims and encumbrances of any kind whatsoever, except as permitted by Section 5.7 of the
Loan Agreement. The real estate listed on the Perfection Certificate (as may be amended or
supplemented from time to time) constitutes all of the real property owned, leased or used by such
Guarantor in its business and such Guarantor will not execute any material agreement or contract in
respect to such real estate after the date of this Agreement without giving Agent prompt written
notice thereof. As of the Closing Date, the only places of business of such Guarantor, and the
places where it keeps and intends to keep all Collateral (other than Collateral out for
maintenance, repair or in-transit between locations specified on the Perfection Certificate (as may
be amended or supplemented from time to time), the value for which at any time shall not be, in the
aggregate, greater than $50,000) and records concerning the Collateral, are at the addresses set
forth on the Perfection Certificate (as may be amended or supplemented from time to time). No
Collateral is held by any bailee or warehouseman for which such bailee or warehouseman has issued a
negotiable document (as defined in Section 7-104 of the UCC or any similar section under any
equivalent UCC).

          Section 3.9 Deposit Accounts.

          (a) No Guarantor has any Deposit Accounts, Securities Accounts or other bank or investment
accounts except as described on the Perfection Certificate (as may be amended or supplemented from
time to time).

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          (b) As of the Closing Date, each Guarantor is the sole entitlement holder or account holder,
as applicable, of each of the Securities Accounts and Deposit Accounts set forth on the Perfection
Certificate (as may be amended or supplemented from time to time) under the heading “Investment
Property; Instruments; Accounts”, and such Guarantor has not consented to, and is not otherwise
aware of, any person (other than the Agent) having “control” (as used in this Section 3.9
“control” shall have the meaning provided under Sections 9-104 and 9-106 of the UCC or any similar
sections under any equivalent UCC) over, or any other interest in, any such Securities Account or
Deposit Account or any money deposited therein or any securities or other property credited
thereto.

          (c) Other than with respect to deposit accounts used solely to fund payroll, withholding taxes
or payroll taxes or any deposit accounts which are zero balance accounts or controlled disbursement
accounts, each Guarantor has taken all actions reasonably necessary or desirable to establish the
Agent’s control over any Securities Accounts and Deposit Accounts.

          (d) No Guarantor shall close or terminate any Securities Account or Deposit Account without
the prior consent of the Agent and unless a successor or replacement account is existing or has
been established with the consent of the Agent with respect to which successor or replacement
account a control agreement has been entered into by the appropriate Guarantor, the Agent and
securities intermediary or depository institution at which such successor or replacement account is
to be maintained.

          (e) Prior to or concurrently with the establishment of any new Securities Account or Deposit
Account, such Guarantor shall deliver to the Agent a notice of the existence and nature of such
account, a supplement to the Perfection Certificate (as may be amended or supplemented from time to
time) containing a specific description of such account and an Account Control Agreement entered
into by the appropriate Guarantor, the Agent and the securities intermediary or depository
institution at which such account is to be maintained, which Account Control Agreement shall comply
with the requirements set forth in Section 7.10 of the Loan Agreement.

          Section 3.10 Investments; Pledged Collateral.

          (a) No Guarantor has any outstanding advances to, or owns or holds any equity or long-term
debt investments in, any person, except as described on the Perfection Certificate (as may be
amended or supplemented from time to time) or as expressly permitted under Section 7.7 of the Loan
Agreement.

          (b) All Pledged Securities pledged by such Guarantor hereunder (i) are listed on the
Perfection Certificate (as may be amended or supplemented from time to time) and constitute that
percentage of the issued and outstanding equity of all classes of each issuer thereof as set forth
on the Perfection Certificate (as may be amended or supplemented from time to time), (ii) have been
duly authorized, validly issued and are fully paid and nonassessable (other than Pledged Securities
in limited liability companies and partnerships), and (iii) constitute the legal, valid and binding
obligation of the obligor with respect thereto, enforceable in accordance with their terms. As of
the Closing Date, any certificates evidencing such Pledged Securities have been delivered to the
Agent.

          (c) The Pledged Debt pledged by such Guarantor hereunder (i) is listed on the Perfection
Certificate (as may be amended or supplemented from time to time), (ii) with

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respect to any Loan Party, has been duly authorized and validly issued and delivered, as
applicable, and (iii) with respect to any Loan Party, constitutes the legal, valid and binding
obligation of the obligor with respect thereto, enforceable in accordance with its terms, and is
not in default. As of the Closing Date, any instruments evidencing such Pledged Debt required to
be delivered pursuant to the Loan Documents have been delivered to the Agent.

          (d) Upon the occurrence and during the continuance of an Event of Default, the Agent shall be
entitled to exercise all of the rights of the Guarantor granting the security interest in any
Pledged Collateral, and a transferee or assignee of such Pledged Collateral shall become a holder
of such Pledged Collateral to the same extent as such Guarantor and with respect to the Pledged
Securities, and shall be entitled to participate in the management of the issuer of such Pledged
Securities and, upon the sale or other disposition by the Agent of the entire interest of such
Guarantor, such Guarantor shall, by operation of law, cease to be a holder of such Pledged
Securities. The Agent agrees that it shall endeavor to give written notice to the relevant
Guarantor or Guarantors of its intent to exercise the rights described in this Section
3.10(d) prior to the exercise thereof.

          Section 3.11 Commercial Tort Claims.

          (a) To the best of any Guarantor’s knowledge after due inquiry, the only Commercial Tort
Claims of any Guarantor existing on the date hereof for which the potential recovery reasonably
exceeds $50,000 (regardless of whether the defendant or other material facts can actually be
determined and regardless of whether such Commercial Tort Claim has been asserted, threatened in
writing or whether litigation has been commenced for such claims) are those listed on the
Perfection Certificate (as may be amended or supplemented from time to time).

          (b) Each Guarantor, if it shall acquire any interest in any Commercial Tort Claim in excess of
$50,000 individually (whether from another person or because such Commercial Tort Claim shall have
come into existence) or, when combined with all other Commercial Tort Claims, in the aggregate, in
excess of $100,000, (i) shall, promptly upon such acquisition, deliver to the Agent, in each case
in form and substance reasonably satisfactory to the Agent, a notice of the existence and nature of
such Commercial Tort Claim and a supplement to the Perfection Certificate (as may be amended or
supplemented from time to time) containing a specific description of such Commercial Tort Claim,
(ii) agrees that Section 2.1 shall apply to such Commercial Tort Claim and (iii) shall
execute and deliver to the Agent, in each case in form and substance reasonably satisfactory to the
Agent, any document, and take all other action, deemed by the Agent to be reasonably necessary or
appropriate for the Agent to obtain, on behalf of the Finance Parties, a first priority perfected
security interest in all Commercial Tort Claims.

          Section 3.12 Instruments and Tangible Chattel Paper.

          (a) No amount payable to any Guarantor under or in connection with any account is evidenced by
any instrument or tangible chattel paper that has not been delivered to the Agent, properly
endorsed for transfer, to the extent delivery is required below by Section 3.12(b);

          (b) If any amount payable under or in connection with any Collateral owned by such Guarantor
shall be or become evidenced by an instrument or tangible chattel paper, other than such instrument
delivered in accordance with Section 3.10 and in the possession of the Agent, such
Guarantor shall mark all such instruments and tangible chattel paper with the following legend:
“This writing and the obligations evidenced or secured hereby are subject to

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the security interest of General Electric Capital Corporation, as Agent” and, at the request
of the Agent, shall immediately deliver such instrument or tangible chattel paper to the Agent,
duly indorsed in a manner satisfactory to the Agent.

          Section 3.13 Letter of Credit Rights. If any Guarantor is or becomes the
beneficiary of any letter of credit that is not a supporting obligation of any Collateral, such
Guarantor shall promptly, and in any event within five (5) Business Days after becoming a
beneficiary, notify the Agent thereof and enter into a contractual obligation with the Agent, the
issuer of such letter of credit or any nominated person with respect to the Letter-of-Credit Rights
under such letter of credit, which contractual obligation shall (A) assign such Letter of Credit
Rights to the Agent, (B) be sufficient to grant the Agent control (within the meaning of Section
9-107 of the UCC or any similar section under any equivalent UCC) of such Letter of Credit Rights,
and (C) be in form and substance reasonably satisfactory to the Agent.

          Section 3.14 Electronic Chattel Paper. If any amount under or in connection
with any Collateral owned by such Guarantor shall be or become evidenced by electronic chattel
paper, such Guarantor shall take all steps reasonably necessary to grant the Agent control (within
the meaning of Section 9-105 of the UCC or any similar section under any equivalent UCC) of all
such electronic chattel and all “transferable records” as defined in each of the Uniform Electronic
Transactions Act and the Electronic Signatures in Global and National Commerce Act.

          Section 3.15 Accounts Administration.

          (a) All data and other information relating to Accounts or other intangible Collateral shall
at all times be kept by such Guarantor at its chief executive office listed in the Perfection
Certificate (as may be amended or supplemented from time to time) or at the chief executive office
of any other Loan Party as listed in the Perfection Certificate (as may be amended or supplemented
from time to time) and, except in the ordinary course of business in which case Agent shall be
promptly notified in writing no later than ten (10) Business Days after such move, shall not be
moved from such locations without obtaining the prior written consent of Agent, which consent shall
not be unreasonably withheld.

          (b) Each Guarantor shall keep satisfactory and complete records of its Accounts and all
payments and collections thereon and sales thereof and shall submit to Agent on such periodic basis
as Agent shall reasonably request a sales and collections report for the preceding period, in form
and substance satisfactory to Agent.

          (c) Agent shall have the right at any time to notify Account Debtors that Accounts have been
assigned to Agent.

          (d) No Guarantor has made, or will make, any agreement with any Account Debtor for any
extension of the time for payment of the Account, any compromise or settlement for less than the
full amount thereof, any release of any Account Debtor from liability therefor, or any deduction
therefrom except a discount or allowance for prompt or early payment allowed by such Guarantor in
the ordinary course of its business consistent with its historical practices and, upon the
occurrence and during the continuance of any Default or Event of Default, disclosed to Agent in
writing.

          Section 3.16 Creation, Preservation and Perfection of Security Interests.

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          (a) Subject to Section 5.7 of the Loan Agreement, the security interest granted to Agent
hereby constitutes a valid, first priority security interest in the presently existing Collateral,
and will constitute a valid first priority security interest in Collateral acquired after the date
hereof.

          (b) At the discretion of the Agent, each Guarantor shall furnish all filings, certificates,
documents and instruments reasonably necessary or desirable to perfect Agent’s security interest in
the Collateral, including but not limited to any certificates evidencing the Securities Collateral
and all UCC financing statements. Upon the reasonable request of Agent, each Guarantor shall
furnish to Agent such further information, execute and deliver to Agent such additional documents
and instruments (including, without limitation, additional UCC financing statements) and do such
other acts and things as Agent may at any time reasonably request relating to the perfection or
protection of the security interest created by this Agreement or for the purpose of carrying out
the intent of this Agreement. Without limiting the foregoing, each Guarantor shall cooperate and
do all acts deemed reasonably necessary or advisable by Agent to continue a perfected first
priority security interest in the Collateral, subject only to Permitted Liens, and shall obtain and
furnish to Agent any subordinations, releases, landlord waivers, lessor waivers, mortgage waivers,
or control agreements, and similar documents as may be from time to time reasonably requested by,
and in form and substance satisfactory to, Agent. Each Guarantor authorizes Agent to file
financing statements in all reasonably appropriate jurisdictions and amendments thereto describing
the Collateral as “all assets”, or words of similar import, and containing any other information
required by the applicable UCC to perfect Agent’s security interest granted hereby. Each Guarantor
irrevocably grants to Agent the power to sign such Guarantor’s name and generally to act on behalf
of such Guarantor to execute and file applications for title, transfers of title, financing
statements, notices of lien and other documents pertaining to any or all of the Collateral, and
obtain and promptly deliver to Agent such certificate showing the lien of this Agreement with
respect to the Collateral.

          (c) No Guarantor shall grant “control” (within the meaning of Sections 8-106, 9-104, 9-105,
9-106, 9-107 of the UCC, as applicable, or any similar sections under any equivalent UCC) of any
Collateral to any person other than the Agent.

          (d) No Guarantor shall (i) use or permit any Collateral to be used unlawfully or in violation
of any provision of any Debt Document or any requirement of law in each case in any material
respect or in any way that would adversely affect any policy of insurance covering such Collateral
or (ii) enter into any contractual obligation or undertaking restricting the right or ability of
such Guarantor or the Agent to Transfer any Collateral if such restriction would have a Material
Adverse Effect.

          Section 3.17 Post-Closing Obligations. Within ten (10) days after the date
hereof (or such longer period approved by Agent in its absolute discretion), the Guarantors shall
deliver to the Agent written waivers by all Loan Parties to any restrictions on assignment in any
intercompany leases or other intercompany agreements (other than with respect to any intercompany
licenses or other intercompany agreements related to Intellectual Property), and failure to comply
with this obligation shall constitute an immediate Event of Default.

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ARTICLE IV

REMEDIAL PROVISIONS

          Section 4.1 UCC and Other Remedies.

          (a) UCC Remedies. During the continuance of an Event of Default, the Agent may
exercise, in addition to all other rights and remedies granted to it in this Agreement and in any
other instrument or agreement securing, evidencing or relating to any Guaranteed Obligation, all
rights and remedies of a secured party under the UCC or any other applicable law.

          (b) Disposition of Collateral. Without limiting the generality of the foregoing, the
Agent may, without demand of performance or other demand, presentment, protest, advertisement or
notice of any kind (except as required by applicable law) to or upon any Guarantor or any other
person (all and each of which demands, defenses, advertisements and notices are hereby waived to
the extent permitted by applicable law), during the continuance of any Event of Default (personally
or through its agents or attorneys), (i) enter upon the premises where any Collateral is located,
without any obligation to pay rent, through self-help, without judicial process, without first
obtaining a final judgment in a court of competent jurisdiction or giving any Guarantor or any
other person notice or opportunity for a hearing on the Agent’s claim or action, (ii) collect,
receive, appropriate, remove and realize upon any Collateral or store the Collateral on the
premises, (iii) Transfer or grant an option or options to purchase and deliver all or any part of
any Collateral (and enter into contractual obligations to do any of the foregoing), in one or more
parcels at a public or private sale or sales, at any exchange, broker’s board or office of Agent or
any Lender or elsewhere upon such terms and conditions as it may deem advisable and at such prices
as it may deem best, for cash or on credit or for future delivery without assumption of any credit
risk and (iv) apply the proceeds from any disposition of the Collateral to the Obligations in
accordance with Section 8.4 of the Loan Agreement. Notwithstanding the foregoing, the Agent’s
rights under this paragraph are subject to the applicable limitations under federal law and
regulations. The Agent shall have the right, upon any such public sale or sales and, to the extent
permitted by the UCC and other applicable requirements of law, upon any such private sale, to
purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption
of any Guarantor, which right or equity is hereby waived and released. Each Guarantor agrees that
any notice that Agent is required to give to a Guarantor under the UCC of the time and place of any
public sale or the time after which any private sale or other intended disposition of the
Collateral is to be made shall be deemed to constitute reasonable notice if such notice is given in
accordance with this Agreement at least ten (10) days prior to such action.

          (c) Management of the Collateral. Each Guarantor further agrees, that, during the
continuance of any Event of Default, (i) at the Agent’s request, it shall assemble the Collateral
and make it available to the Agent at places that the Agent shall reasonably select, whether at
such Guarantor’s premises or elsewhere, (ii) without limiting the foregoing, the Agent also has the
right to require that each Guarantor store and keep any Collateral pending further action by the
Agent and, while any such Collateral is so stored or kept, provide such guards and maintenance
services as shall be reasonably necessary to protect the same and to preserve and maintain such
Collateral in good condition, (iii) until the Agent is able to Transfer any Collateral, the Agent
shall have the right to hold or use such Collateral to the extent that it deems appropriate for the
purpose of preserving the Collateral or its value or for any other purpose deemed appropriate by
the Agent, (iv) the Agent may, if it so elects, seek the appointment of a receiver or keeper to
take possession of any Collateral and to enforce any of the Agent’s remedies (for the

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benefit of the Finance Parties), with respect to such appointment without prior notice or
hearing as to such appointment and (v) the Agent may render any or all of the Collateral unusable
at a Loan Party’s premises and may dispose of such Collateral on the premises without liability for
rents or costs. The Agent shall not have any obligation to any Guarantor to maintain or preserve
the rights of any Guarantor as against third parties with respect to any Collateral while such
Collateral is in the possession of the Agent.

          (d) Application of Proceeds. The Agent shall apply the cash proceeds of any action
taken by it pursuant to this Section 4.1 in accordance with the Loan Agreement.

          (e) Direct Obligation. Neither the Agent nor any Lender shall be required to make any
demand upon, or pursue or exhaust any right or remedy against, any Guarantor, any other Loan Party
or any other person with respect to the payment of the Obligations or to pursue or exhaust any
right or remedy with respect to any Collateral therefor or any direct or indirect guaranty thereof.
All of the rights and remedies of the Agent and the Lenders under any Debt Document shall be
cumulative, may be exercised individually or concurrently and not exclusive of any other rights or
remedies provided by any requirement of law. To the extent it may lawfully do so, each Guarantor
absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants not
to assert against the Agent or any Lender, any valuation, stay, appraisement, extension, redemption
or similar laws and any and all rights or defenses it may have as a surety, now or hereafter
existing, arising out of the exercise by them of any rights hereunder.

          (f) Commercially Reasonable. To the extent that applicable requirements of law impose
duties on the Agent to exercise remedies in a commercially reasonable manner, each Guarantor
acknowledges and agrees that it is not commercially unreasonable for the Agent to do any of the
following:

     (i) fail to incur significant costs, expenses or other liabilities reasonably
deemed as such by the Agent to prepare any Collateral for disposition or otherwise
to complete raw material or work in process into finished goods or other finished
products for disposition;

     (ii) fail to obtain permits, or other consents, for access to any Collateral
or for the collection or transfer of any Collateral, or, if not required by other
requirements of law, fail to obtain permits or other consents for the collection or
disposition of any Collateral;

     (iii) fail to exercise remedies against account debtors or other persons
obligated on any Collateral or to remove liens on any Collateral or to remove any
adverse claims against any Collateral;

     (iv) advertise dispositions of any Collateral through publications or media of
general circulation, whether or not such Collateral is of a specialized nature or
to contact other Persons, whether or not in the same business as any Guarantor, for
expressions of interest in acquiring any such Collateral;

     (v) exercise collection remedies against account debtors and other persons
obligated on any Collateral, directly or through the use of collection agencies or
other collection specialists, hire one or more professional auctioneers

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to assist in the disposition of any Collateral, whether or not such Collateral
is of a specialized nature or, to the extent deemed appropriate by the Agent,
obtain the services of other brokers, investment bankers, consultants and other
professionals to assist the Agent in the collection or disposition of any
Collateral, or utilize Internet sites that provide for the auction of assets of the
types included in the Collateral or that have the reasonable capacity of doing so,
or that match buyers and sellers of assets to dispose of any Collateral;

     (vi) dispose of assets in wholesale rather than retail markets;

     (vii) disclaim disposition warranties, such as title, possession or quiet
enjoyment; or

     (viii) purchase insurance or credit enhancements to insure the Agent against
risks of loss, collection or disposition of any Collateral or to provide to the
Agent a guaranteed return from the collection or disposition of any Collateral.

Each Guarantor acknowledges that the purpose of this Section 4.1 is to provide a non-exhaustive list
of actions or omissions that are commercially reasonable when exercising remedies against any
Collateral and that other actions or omissions by the Agent or any Lender shall not be deemed
commercially unreasonable solely on account of not being indicated in this Section 4.1. Without
limitation upon the foregoing, nothing contained in this Section 4.1 shall be construed to grant any
rights to any Guarantor or to impose any duties on the Agent that would not have been granted or
imposed by this Agreement or by applicable requirements of law in the absence of this Section 4.1.

          Section 4.2 Accounts and Payments in Respect of General Intangibles and Instruments.

          (a) In addition to, and not in substitution for, any similar requirement in the Loan
Agreement, at any time during the continuance of an Event of Default (whether or not any such Event
of Default has resulted in acceleration pursuant to Section 8.2 of the Loan Agreement), the Agent
shall have the following rights and remedies:

     i. Any payment of Accounts or payment in respect of General Intangibles, when
collected by any Guarantor, shall be held in trust for the Agent and segregated
from such other funds of such Guarantor and shall be turned over to the Agent, or
to such other bank or person as may be approved by the Agent, within two (2)
Business Days immediately upon receipt in the identical form received.

     ii. Each Guarantor shall deliver to the Agent all original and other documents
evidencing, and relating to, the contractual obligations and transactions that gave
rise to any Account or any payment in respect of General Intangibles, including all
original orders, invoices and shipping receipts.

     iii. Any of the Agent’s officers, employees or agents shall have the right, at
any time or times hereafter, in the name of the Agent or any designee of the Agent,
to verify the validity, amount or any other matter relating to any Accounts by
mail, telephone or otherwise, including, but not limited to,

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verification of each
Guarantor’s compliance with applicable laws. Each
Guarantor shall cooperate fully with Agent in an effort to facilitate and
promptly conclude such verification process. Such verification may include
contacts between Agent and applicable federal, state and local regulatory
authorities having jurisdiction over any Guarantor’s affairs, all of which contacts
each Guarantor hereby irrevocably authorizes.

     iv. The Agent may limit or terminate the authority of a Guarantor to collect
its Accounts or amounts due under General Intangibles or Instruments or any part
thereof and, in its own name or in the name of others, communicate with Account
Debtors to verify with them to the Agent’s satisfaction the existence, amount and
terms of any Account or amounts due under any General Intangible or Instrument.

     v. The Agent shall have the right at any time to (A) notify any Account Debtor
of any Guarantor or any obligor on any Instrument that such Accounts, General
Intangibles and Instruments, as applicable, have been assigned to the Agent and
that payments in respect thereof shall be made directly to Agent (for the benefit
of the Finance Parties) (and once such notice has been given to an Account Debtor,
such Guarantor shall not give any contrary instructions to such Account Debtor
without Agent’s prior written consent) and (B) enforce such Guarantor’s rights
against such Account Debtors and obligors of Accounts, General Intangibles and
Instruments.

          (b) Anything herein to the contrary notwithstanding, each Guarantor shall remain liable under
each Account and each payment in respect of General Intangibles to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, all in accordance with
the terms of any agreement giving rise thereto. Neither the Agent nor any Lender shall have any
obligation or liability under any agreement giving rise to an Account or a payment in respect of a
General Intangible by reason of or arising out of any Debt Document or the receipt by the Agent or
any Lender of any payment relating thereto, nor shall the Agent or any Lender be obligated in any
manner to perform any obligation of any Guarantor under or pursuant to any agreement giving rise to
an Account or a payment in respect of a General Intangible, to make any payment, to make any
inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency
of any performance by any party thereunder, to present or file any claim, to take any action to
enforce any performance or to collect the payment of any amounts that may have been assigned to it
or to which it may be entitled at any time or times.

          Section 4.3 Pledged Collateral.

          (a) Voting Rights. During the continuance of an Event of Default, upon notice by the
Agent to the relevant Guarantor or Guarantors, the Agent or its nominee may exercise (A) any
voting, consent, corporate and other right pertaining to the Pledged Collateral at any meeting of
shareholders, partners or members, as the case may be, of the relevant issuer or issuers of Pledged
Collateral or otherwise and (B) any right of conversion, exchange and subscription and any other
right, privilege or option pertaining to the Pledged Collateral as if it were the absolute owner
thereof (including the right to exchange at its discretion any Pledged Collateral upon the merger,
amalgamation, consolidation, reorganization, recapitalization or other fundamental change in the
corporate or equivalent structure of any issuer of Pledged Stock, the right to deposit and deliver
any Pledged Collateral with any committee, depositary, transfer agent,

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registrar or other
designated agency upon such terms and conditions as the Agent may
determine), all without liability except to account for property actually received by it;
provided, however, that the Agent shall have no duty to any Guarantor to exercise
any such right, privilege or option and shall not be responsible for any failure to do so or delay
in so doing.

          (b) Proxies. During the continuance of an Event of Default, in order to permit the
Agent to exercise the voting and other consensual rights that it may be entitled to exercise
pursuant hereto and to receive all dividends and other distributions that it may be entitled to
receive hereunder, (i) each Guarantor shall promptly execute and deliver (or cause to be executed
and delivered) to the Agent all such proxies, dividend payment orders and other instruments as the
Agent may from time to time reasonably request and (ii) without limiting the effect of
clause (i) above, such Guarantor hereby grants to the Agent an irrevocable proxy to vote
all or any part of the Pledged Collateral and to exercise all other rights, powers, privileges and
remedies to which a holder of the Pledged Collateral would be entitled (including giving or
withholding written consents of shareholders, partners or members, as the case may be, calling
special meetings of shareholders, partners or members, as the case may be, and voting at such
meetings), which proxy shall be effective, automatically and without the necessity of any action
(including any Transfer of any Pledged Collateral on the record books of the issuer thereof) by any
other person (including the issuer of such Pledged Collateral or any officer or agent thereof)
during the continuance of an Event of Default and which proxy shall only terminate upon the payment
in full of the Guaranteed Obligations.

          (c) Authorization of Issuers. Each Guarantor hereby expressly irrevocably authorizes
and instructs, without any further instructions from such Guarantor, each issuer of any Pledged
Collateral pledged hereunder by such Guarantor to (i) comply with any instruction received by it
from the Agent in writing that states that an Event of Default is continuing and is otherwise in
accordance with the terms of this Agreement and each Guarantor agrees that such issuer shall be
fully protected from liabilities to such Guarantor in so complying and (ii) unless otherwise
expressly permitted hereby, pay any dividend or make any other payment with respect to the Pledged
Collateral directly to the Agent.

          Section 4.4 Proceeds to be Turned over to and Held by Agent. Except as
otherwise provided in the Loan Agreement or this Agreement, all proceeds of any Collateral received
by any Guarantor hereunder in cash or Cash Equivalents shall be held by such Guarantor in trust for
the Agent and the Lenders, segregated from other funds of such Guarantor, and shall, promptly upon
receipt by any Guarantor, be turned over to the Agent in the exact form received (with any
necessary endorsement). All such proceeds of Collateral and any other proceeds of any Collateral
received by the Agent in cash or Cash Equivalents shall be held by the Agent as collateral security
for the Guaranteed Obligations and shall not constitute payment thereof until applied as provided
in Section 8.4 of the Loan Agreement.

          Section 4.5 Remedial Provisions.

          (a) Upon the occurrence and during the continuance of an Event of Default, Agent and its
attorneys may exercise in respect of the Pledged Collateral, in addition to other rights and
remedies provided for herein or otherwise available to it, all the rights and remedies of a secured
party under the UCC (whether or not the UCC applies to the affected Pledged Collateral), and Agent
may also, without demand, advertisement or notice of any kind (other than the notice specified
below relating to a public or private sale), sell the Pledged Collateral or any part thereof in one
or more portions at one or more public or private sales or dispositions, at any

19

 

exchange, broker’s
board or at any of Agent’s offices (or those of Agent’s attorneys) or elsewhere,
for cash, on credit, or for future delivery, at such price or prices and upon such other terms
as Agent deems advisable. The Guarantor agrees that, to the extent notice of sale shall be
required by law, a reasonable authenticated notification of disposition shall be given at least ten
(10) days prior to any such sale and such notice shall (i) describe Agent and Guarantor, (ii)
describe the Pledged Collateral that is the subject of the intended disposition, (iii) state the
method of the intended disposition, (iv) state that the Guarantor is entitled to an accounting of
the Obligations, as the case may be, and state the charge, if any, for an accounting, and (v) state
the time and place of any public disposition or the time after which any private sale is to be
made; provided, that no notification need be given to the Guarantor if it has authenticated
after default a statement renouncing or modifying any right to notification of sale or other
intended disposition. At any sale of the Pledged Collateral, if permitted by law, Agent may bid
(which bid may be, in whole or in part, in the form of cancellation of indebtedness) for the
purchase of the Pledged Collateral or any portion thereof free of any right or equity of redemption
in the Guarantor. Agent shall not be obligated to make any sale of Pledged Collateral regardless
of notice of sale having been given. Agent may adjourn any public or private sale from time to
time by announcement at the time and place fixed therefor, and such sale may, without further
notice, be made at the time and place to which it was so adjourned.

          (b) Each Guarantor recognizes that the Agent may be unable to effect a public sale of any
Pledged Collateral by reason of certain prohibitions contained in the Securities Act of 1933 (the
“Securities Act”) or applicable state or foreign securities laws or otherwise or may
determine that a public sale is impracticable, not desirable or not commercially reasonable and,
accordingly, may resort to one or more private sales thereof to a restricted group of purchasers
that shall be obliged to agree, among other things, to acquire such securities for their own
account for investment and not with a view to the distribution or resale thereof. Each Guarantor
acknowledges and agrees that any such private sale may result in prices and other terms less
favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that
any such private sale shall be deemed to have been made in a commercially reasonable manner. The
Agent shall be under no obligation to delay a sale of any Pledged Collateral for the period of time
necessary to permit the issuer thereof to register such securities for public sale under the
Securities Act or under applicable state securities laws even if such issuer would agree to do so.

          (c) Each Guarantor agrees to use its best efforts to do or cause to be done all such other
acts as may be necessary to make such sale or sales of any portion of the Pledged Collateral (other
than public sales under the provisions of the Securities Act and any applicable state or foreign
securities law) valid and binding and in compliance with all applicable requirements of law. Each
Guarantor further agrees that a breach of any covenant contained in this 0 will cause
irreparable injury to the Agent and other Secured Parties, that the Agent and the other Secured
Parties have no adequate remedy at law in respect of such breach and, as a consequence, that each
and every covenant contained in this 0 shall be specifically enforceable against such
Guarantor, and such Guarantor hereby waives and agrees not to assert any defense against an action
for specific performance of such covenants except for a defense that no Event of Default has
occurred under the Loan Agreement.

          Section 4.6 Appointment of Agent. Effective only upon the occurrence and
during the continuance of an Event of Default, each Guarantor hereby irrevocably appoints Agent
(and any of Agent’s designated officers or employees) as such Guarantor’s true and lawful

20

 

attorney
to: (i) endorse such Guarantor’s name on any checks or other forms of payment or
security that may come into Agent’s possession; (ii) settle and adjust disputes and claims
respecting such Guarantor’s Accounts directly with Account Debtors, for amounts and upon terms
which Agent determines to be reasonable; and (iii) do such other and further acts and deeds in the
name of such Guarantor that Agent may deem necessary or desirable to enforce its rights in or to
any of the Collateral (on behalf of the Finance Parties). The appointment of Agent as each
Guarantor’s attorney in fact is a power coupled with an interest and is irrevocable until the
Termination Date.

          Section 4.7 Deficiency. Each Grantor shall remain liable for any deficiency
if the proceeds of any sale or other disposition of any Collateral are insufficient to pay the
Guaranteed Obligations and the fees and disbursements of any attorney employed by the Agent or any
Lender to collect such deficiency.

ARTICLE V

MISCELLANEOUS

          Section 5.1 Reinstatement. Each Guarantor agrees that, if any payment made by
any Loan Party or other person and applied to the Guaranteed Obligations is at any time annulled,
avoided, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise
required to be refunded or repaid, then, if, prior to any of the foregoing, any provision of this
Agreement (including the guaranty of such Guarantor hereunder) shall have been terminated,
cancelled or surrendered, such provision, and any lien or other Collateral securing such
Guarantor’s liability hereunder that may have been released or terminated by virtue of such
termination, cancellation or surrender, shall be reinstated in full force and effect and such prior
termination, cancellation or surrender shall not diminish, release, discharge, impair or otherwise
affect the obligations of any such Guarantor in respect of any lien or other Collateral securing
such obligation or the amount of such payment.

          Section 5.2 Independent Obligations. The obligations of each Guarantor
hereunder are independent of and separate from the Guaranteed Obligations. If any Guaranteed
Obligation is not paid when due, or upon any Event of Default, the Agent may, at its sole election,
proceed directly and at once, without notice, against any Guarantor to collect and recover the full
amount or any portion of any Obligation or Guaranteed Obligation then due, without first proceeding
against any other Guarantor or any other Loan Party and without first joining any other Guarantor
or any other Loan Party in any proceeding.

          Section 5.3 No Waiver by Course of Conduct. The Agent shall not, by any act
(except by a written instrument pursuant to Section 11.9 of the Loan Agreement), delay, indulgence,
omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced
in any Default or Event of Default. No failure to exercise, nor any delay in exercising, on the
part of Agent, any right, power or privilege hereunder shall operate as a waiver thereof. No
single or partial exercise of any right, power or privilege hereunder shall preclude any other or
further exercise thereof or the exercise of any other right, power or privilege. A waiver by Agent
of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right
or remedy that the Agent would otherwise have on any future occasion.

21

 

          Section 5.4 Amendments in Writing. None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in accordance with
Section 11.9 of the Loan Agreement.

          Section 5.5 Additional Guarantors. If, at the option of the Borrower or as
required pursuant to the Loan Agreement, the Borrower shall cause any Subsidiary that is not a
Guarantor to become a Guarantor hereunder, such Subsidiary shall execute and deliver to the Agent a
Joinder Agreement substantially in the form of Annex 1 and shall thereafter for all
purposes be a party hereto and have the same rights, benefits and obligations as a Guarantor party
hereto as of the date hereof.

          Section 5.6 Notices. All notices, requests and demands to or upon the Agent
or any Guarantor hereunder shall be effected in the manner provided for in Section 11.2 of the Loan
Agreement.

          Section 5.7 Successors and Assigns. This Agreement shall be binding upon the
successors and assigns of each Guarantor and shall inure to the benefit of the Agent and its
successors and assigns; provided, however, that no Guarantor may assign, transfer
or delegate any of its rights or obligations under this Agreement without the prior written consent
of the Agent.

          Section 5.8 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement. Signature pages may be detached from multiple separate counterparts and attached to a
single counterpart. Delivery of an executed signature page of this Agreement by facsimile
transmission or by electronic transmission shall be as effective as delivery of a manually executed
counterpart hereof.

          Section 5.9 Interpretation. The meanings given to terms defined herein shall
be equally applicable to both the singular and plural forms of such terms. The terms
“herein,” “hereof” and similar terms refer to this Agreement as a whole and not to
any particular Article, Section or clause in this Agreement. References herein to an Annex,
Article, Section or clause refer to the appropriate Annex to, or Article, Section or clause of this
Agreement. The Recitals hereto are incorporated in and made a part of this Agreement to the same
extent as if set forth in full herein.

          Section 5.10 Severability. Any provision of this Agreement being held
illegal, invalid or unenforceable in any jurisdiction shall not affect any part of such provision
not held illegal, invalid or unenforceable, any other provision of this Agreement or any part of
such provision in any other jurisdiction.

          Section 5.11 Payments; Foreign Currency Indemnity. Any payments made by any
Guarantor under this Agreement shall be made in accordance with the requirements set forth in
Sections 2.3(e), 10.2 and 10.3 of the Loan Agreement.

          Section 5.12 Governing Law. This Agreement and the rights and obligations of
the parties hereto shall be governed by, and construed and interpreted in accordance with, the law
of the State of New York.

22

 

          Section 5.13 Submission to Jurisdiction. Any legal action or proceeding
with respect to this Agreement may be brought in the courts of the State of New York located in the
City of New York, Borough of Manhattan, or of the United States of America for the Southern
District of New York and, by execution and delivery of this Agreement, each Guarantor hereby
accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction
of the aforesaid courts. Each Guarantor hereby irrevocably waives any objection, including any
objection to the laying of venue or based on the grounds of forum non
conveniens, that any of them may now or hereafter have to the bringing of any such action
or proceeding in such jurisdictions.

          Section 5.14 Service of Process. Each Guarantor hereby irrevocably waives
personal service of any and all legal process, summons, notices and other documents and other
service of process of any kind and consents to such service in any suit, action or proceeding
brought in the United States of America with respect to or otherwise arising out of or in
connection with this Agreement by any means permitted by applicable requirements of law, including
by the mailing thereof (by registered or certified mail, postage prepaid) to the address set forth
on the signature pages to the Loan Agreement (and shall be effective when such mailing shall be
effective, as provided in Section 11.2 of the Loan Agreement). Each Guarantor agrees that a final
non-appealable judgment in a court of competent jurisdiction in any such action or proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.

          Section 5.15 Non-Exclusive Jurisdiction. Nothing contained in this
Section 5.15 shall affect the right of any Finance Party to serve process in any other
manner permitted by applicable requirements of law or commence legal proceedings or otherwise
proceed against any Loan Party in any other jurisdiction.

          Section 5.16 Waiver of Jury Trial.  Each party hereto hereby
irrevocably waives trial by jury in any suit, action or proceeding with respect to, or directly or
indirectly arising out of, under or in connection with, any Debt Document or the transactions
contemplated therein or related thereto (whether founded in contract, tort or any other theory).
Each party hereto (A) certifies that no other party and no Related Person of any other party has
represented, expressly or otherwise, that such other party would not, in the event of litigation,
seek to enforce the foregoing waiver and (B) acknowledges that it and the other parties hereto have
been induced to enter into this agreement by the mutual waivers and certifications in this
Section 5.16.

          Section 5.17 Conflicts.  In the event of any conflict between the
terms of this Agreement and that certain Australian Group Charge, dated as of the date hereof, by
Peplin and certain other guarantors under the Loan Agreement, in favor of the Security Trustee (the
“Group Charge”), with respect to any Collateral of Peplin that is the subject of the Group
Charge, the Group Charge shall govern with respect to such Collateral.

[SIGNATURE PAGES FOLLOW]

23

 

          IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly executed and
delivered as of the date first above written.

	 	 	 	 	 
	 	GUARANTORS:

PEPLIN, INC., a Delaware corporation

 	 
	 	By:  	/s/ Philip Moody	 
	 	 	Name:  	Philip Moody	 
	 	 	Title:  	Chief Financial Officer	 
	 
	 	PEPLIN OPERATIONS USA, INC., a 

California corporation

 	 
	 	By:  	/s/ Philip Moody	 
	 	 	Name:  	Philip Moody	 
	 	 	Title:  	Chief Financial Officer	 
	 

ACCEPTED AND AGREED

as of the date first above written:

GENERAL ELECTRIC CAPITAL CORPORATION,

as Agent

	 	 	 	 	 
	By:
	 	/s/ Jason Dufour	 	 
	 

	 	 

Name: Jason Dufour
	 	 
	 

	 	Title:   Duly Authorized Signatory	 	 

 

 

ANNEX 1

TO

GUARANTY,PLEDGE AND SECURITY AGREEMENT

FORM OF JOINDER AGREEMENT

          This
JOINDER AGREEMENT, dated as of
              
      , 20                    , is delivered pursuant to Section 5.5
of the Guaranty, Pledge and Security Agreement, dated as of December 28, 2007, by PEPLIN, INC.,
PEPLIN OPERATIONS USA, INC. and the Affiliates of Borrower from time to time party thereto as
Guarantors in favor of the General Electric Capital Corporation, as Agent (the “Guaranty”).
Capitalized terms used herein without definition are used as defined in the Guaranty.

          By executing and delivering this Joinder Agreement, the undersigned, as provided in
Section 5.5 of the Guaranty, hereby becomes a party to the Guaranty as a Guarantor thereunder with
the same force and effect as if originally named as a Guarantor therein and, without limiting the
generality of the foregoing, expressly assumes all obligations and liabilities of a Guarantor
thereunder and hereby agrees to be bound as a Guarantor for purposes thereof.

          The undersigned hereby represents and warrants that each of the representations and warranties
contained in Article III of the Guaranty applicable to it is true and correct on and as the date
hereof as if made on and as of such date.

          IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed and
delivered as of the date first above written.

	 	 	 	 	 
	 	[ADDITIONAL GUARANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A1-1

 

ACKNOWLEDGED AND AGREED

as of the date first above written:

	 	 	 	 	 
	GENERAL ELECTRIC CAPITAL CORPORATION	 	 
	 

	 	as Agent	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

A1-2

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